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agricultural and manufacturing utensils and implements; and the raw



materials of agricultural and mining production which are necessary



for manufactures。 The extent of this internal inter change is



beyond all comparison greater in a nation in which manufacturing



industry has attained a high stage of development than in a merely



agricultural nation。 At times in the latter the agriculturist lives



chiefly on his own productions。 From want of much demand for



various products and lack of means of transport; he is obliged to



produce for himself all his requirements without regard to what his



land is more specially fitted to produce; from want of means of



exchange he must manufacture himself the greater part of the



manufactured articles which he requires。 Fuel; building materials;



provisions; and mineral products can find only a very limited



market because of the absence of improved means of transport; and



hence cannot serve as articles for a distant trade。



    Owing to the limited market and the limited demand for such



products; no inducement for storing them or for the accumulation of



capital exists。 Hence the capital devoted by mere agricultural



nations to internal commerce is almost nil; hence all articles of



production; which depend especially on good or bad weather; are



subject to extraordinary fluctuation in prices; hence the danger of



scarcity and famine is therefore greater the more any nation



restricts itself to agriculture。



    The internal commerce of a nation mainly arises in consequence



of and in proportion to the activity of its internal manufactures;



of the improved means of transport called forth by them; and of the



increase of population; and attains an importance which is ten to



twenty fold greater than the internal trade of a merely



agricultural nation; and five to ten fold that of the most



flourishing foreign trade。 If anyone will compare the internal



commerce of England with that of Poland or Spain; he will find this



observation confirmed。



    The foreign commerce of agricultural nations of the temperate



zone; so long as it is limited to provisions and raw materials;



cannot attain to importance。



    Firstly; because the exports of the agricultural nation are



directed to a few manufacturing nations; which themselves carry on



agriculture; and which indeed; because of their manufactures and



their extended commerce; carry it on on a much more perfect system



than the mere agricultural nation; that export trade is therefore



neither certain nor uniform。 The trade in mere products is always



a matter of extraordinary speculation; whose benefits fall mostly



to the speculating merchants; but not to the agriculturists or to



the productive power of the agricultural nation。



    Secondly; because the exchange of agricultural products for



foreign manufactured goods is liable to be greatly interrupted by



the commercial restrictions of foreign states and by wars。



    Thirdly; because the export of mere products chiefly benefits



countries which are situated near sea coasts and the banks of



navigable rivers; and does not benefit the inland territory; which



constitutes the greater part of the territory of the agricultural



nation。



    Fourthly and finally; because the foreign manufacturing nation



may find it to its interest to procure its means of subsistence and



raw materials from other countries and newly formed colonies。



    Thus the export of German wool to England is diminished by



importations into England from Australia; the exports of French and



German wines to England by importations from Spain; Portugal;



Sicily; the Spanish and Portuguese islands; and from the Cape; the



exports of Prussian timber by importations from Canada。



    In fact; preparations have already been made to supply England



with cotton chiefly from the East Indies。 If the English succeed in



restoring the old commercial route; if the new State of Texas



becomes strong; if civilisation in Syria and Egypt; in Mexico and



the South American states progresses; the cotton planters of the



United States will also begin to perceive that their own internal



market will afford them the safest; most uniform; and constant



demand。



    In temperate climates; by far the largest part of a nation's



foreign commerce originates in its internal manufactures; and can



only be maintained and augmented by means of its own manufacturing



power。



    Those nations only which produce all kinds of manufactured



goods at the cheapest prices; can have commercial connections with



the people of all climates and of every degree of civilisation; can



supply all requirements; or if they cease; create new ones; can



take in exchange every kind of raw materials and means of



subsistence。 Such nations only can freight ships with a variety of



objects; such as are required by a distant market which has no



internal manufactured goods of its own。 Only when the export



freights themselves suffice to indemnify the voyage; can ships be



loaded with less valuable return freights。



    The most important articles of importation of the nations of



the temperate zone consist in the products of tropical climates; in



sugar; coffee; cotton; tobacco; tea; dye stuffs; cacao; spices; and



generally in those articles which are known under the name of



colonial produce。 By far the greatest part of these products is



paid for with manufactured goods。 In this interchange chiefly



consists the cause of the progress of industry in manufacturing



Countries of the temperate zone; and of the progress of



civilisation and production in the countries of the torrid zone。



This constitutes the division of labour; and combination of the



powers of production to their greatest extent; as these never



existed in ancient times; and as they first originated from the



Dutch and English。



    Before the discovery of the route round the Cape; the East



still far surpassed Europe in manufactures。 Besides the precious



metals and small quantities of cloth; linen; arms; iron goods; and



some fabrics of luxury; European articles were but little used



there。 The transport by land rendered both inward and outward



conveyance expensive。 The export of ordinary agricultural products



and common manufactured goods; even if they had been produced in



excess; in exchange for the silks and cotton stuffs; sugar; and



spices; of the East; could not be hoped for。 Whatever we may;



therefore; read of the importance of Oriental commerce in those



times; must always be understood relatively; it was important only



for that time; but unimportant compared with what it is now。



    The trade in the products of the torrid zone became more



important to Europe through the acquisition of larger quantities of



the precious metals in the interior and from America; and through



the direct intercourse with the East by the route round the Cape。



It could not; however; attain to universal importance as long as



the East produced more manufactured goods than she required。



    This commerce attained its present importance through the



colonisation of Europeans in the East and West Indies; and in North



and South America through the transplantation of the sugar cane; of



the coffee tree; of cotton; rice; indigo; &c。; through the



transportation of negroes as slaves to America and the West Indies;



then through the successful competition of the European with the



East Indian manufacturers; and especially through the extension of



the Dutch and English sovereignty in foreign parts of the world;

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