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themselves the very same monopoly; and those who belong to us are



merely thereby put on the same footing with them。 It is neither a



privilege to the exclusive advantage of the producers; nor to the



exclusive disadvantage of the consumers; for if the producers at



first obtain higher prices; they run great risks; and have to



contend against those considerable losses and sacrifices which are



always connected with all beginnings in manufacturing industry。 But



the consumers have ample security that these extraordinary profits



shall not reach unreasonable limits; or become perpetual; by means



of the competition at home which follows later on; and which; as a



rule; always lowers prices further than the level at which they had



steadily ranged under the free competition of the foreigner。 If the



agriculturists; who are the most important consumers to the



manufacturers; must also pay higher prices; this disadvantage will



be amply repaid to them by increased demands for agricultural



products; and by increased prices obtained for the latter。



    It is a further sophism; arrived at by confounding the theory



of mere values with that of the powers of production; when the



popular school infers from the doctrine; 'that the wealth of the



nation is merely the aggregate of the wealth of all individuals in



it; and that the private interest of every individual is better



able than all State regulations to incite to production and



accumulation of wealth;' the conclusion that the national industry



would prosper best if only every individual were left undisturbed



in the occupation of accumulating wealth。 That doctrine can be



conceded without the conclusion resulting from it at which the



school desires thus to arrive; for the point in question is not (as



we have shown in a previous chapter) that of immediately increasing



by commercial restrictions the amount of the values of exchange in



the nation; but of increasing the amount of its productive powers。



But that the aggregate of the productive powers of the nation is



not synonymous with the aggregate of the productive powers of all



individuals; each considered separately  that the total amount of



these powers depends chiefly on social and Political conditions;



but especially on the degree in which the nation has rendered



effectual the division of labour and the confederation of the



powers of production within itself  we believe we have



sufficiently demonstrated in the preceding chapters。



    This system everywhere takes into its consideration only



individuals who are in free unrestrained intercourse among



themselves; and who are contented if we leave everyone to pursue



his own private interests according to his own private natural



inclination。 This is evidently not a system of national economy;



but a system of the private economy of the human race; as that



would constitute itself were there no interference on the part of



any Government; were there no wars; no hostile foreign tariff



restrictions。 Nowhere do the advocates of that system care to point



out by what means those nations which are now prosperous have



raised themselves to that stage of power and prosperity which we



see them maintain; and from what causes others have lost that



degree of prosperity and power which they formerly maintained。 We



can only learn from it how in private industry; natural ability;



labour and capital; are combined in order to bring into exchange



valuable products; and in what manner these latter are distributed



among the human race and consumed by it。 But what means are to be



adopted in order to bring the natural powers belonging to any



individual nation into activity and value; to raise a poor and weak



nation to prosperity and power; cannot be gathered from it; because



the school totally ignoring politics; ignores the special



conditions of the nation; and concerns itself merely about the



prosperity of the whole human race。 Wherever international commerce



is in question; the native individual is throughout simply pitted



against the foreign individual; examples from the private dealings



of separate merchants are throughout the only ones adduced  goods



are spoken of in general terms (without considering whether the



question is one of raw products or of manufactured articles)  in



order to prove that it is equally for the benefit of the nation



whether its exports and imports consist of money; of raw materials;



or of manufactured goods; and whether or not they balance one



another。 If we; for example; terrified at the commercial crises



which prevail in the United States of North America like native



epidemics; consult this theory as to the means of averting or



diminishing them; it leaves us utterly without comfort or



instruction; nay; it is indeed impossible for us to investigate



these phenomena scientifically; because; under the penalty of being



taken for muddleheads and ignoramuses; we must not even utter the



term 'balance of trade;' while this term is; notwithstanding; made



use of in all legislative assemblies; in all bureaux of



administration; on every exchange。 For the sake of the welfare of



humanity; the belief is inculcated on us that exports always



balance themselves spontaneously by imports; notwithstanding that



we read in public accounts how the Bank of England comes to the



assistance of the nature of things; notwithstanding that corn laws



exist; which make it somewhat difficult for the agriculturist of



those countries which deal with England to pay with his own produce



for the manufactured goods which he consumes。



    The school recognises no distinction between nations which have



attained a higher degree of economical development; and those which



occupy a lower stage。 Everywhere it seeks to exclude the action of



the power of the State; everywhere; according to it; will the



individual be so much better able to produce; the less the power of



the State concerns itself for him。 In fact; according to this



doctrine savage nations ought to be the most productive and wealthy



of the earth; for nowhere is the individual left more to himself



than in the savage state; nowhere is the action of the power of the



State less perceptible。



    Statistics and history; however; teach; on the contrary; that



the necessity for the intervention of legislative power and



administration is everywhere more apparent; the further the economy



of the nation is developed。 As individual liberty is in general a



good thing so long only as it does not run counter to the interests



of society; so is it reasonable to hold that private industry can



only lay claim to unrestricted action so long as the latter



consists with the well…being of the nation。 But whenever the



enterprise and activity of individuals does not suffice for this



purpose; or in any case where these might become injurious to the



nation; there does private industry rightly require support from



the whole power of the nation; there ought it for the sake of its



own interests to submit to legal restrictions。



    If the school represents the free competition of all producers



as the most effectual means for promoting the prosperity of the



human race; it is quite right from the point of view which it



assumes。 On the hypothesis of a universal union; every restriction



on the honest exchange of goods between various countries seems



unreasonable and injurious。 But so long as other nations



Subordinate the interests of the human race as a whole to their



national interests; it is folly to speak of free competition among



the individuals of various nations。 The arguments of the school in



favour of free competition are thus only applicable to the exchange



between those who belong to one and the same nation。 Every great



nation; therefore; must endeavour to form an aggregate within



itself; which will enter into commercial intercourse with other



similar aggregates so far only as that intercourse is Suitable to



the interests of its own special community。 These interests of the



community are; however; infinitely different from the private



interests of all the separate individuals of the nation; if each



individual is to be regarded as existing for himself alone and not



in the character of a member of the national community; if we



regard (as Smith and Say do) individuals as mere producers and



consumers; not citizens of states or members of nations; for as



such; mere individuals do not concern themselves for the prosperity



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