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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
of