146 Dr. WHEWELL, ON THE MATHEMATICAL EXPOSITION OF 



also be the same in Poland. When this condition has been attained Poland will obtain the 



-q yards of cloth which she requires, by exporting -q bushels of corn, which will purchase 



-q yards in England, though the cloth would have cost q bushels in Poland. Poland saves 



-q bushels of corn : England gains nothing. 



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58. Since England gains nothing by the trade, why does she carry on the trade ? 



Because otherwise the Polish corn would be sold in England at a lower price than p = 1, 

 (a bushel for a yard of cloth). And thus, capital and labour in England would be driven from 

 corn growing to cloth making. When this transfer has begun, it will go on till capital has 



been transferred enough to produce the -q yards of cloth which Poland wants, and then p will 



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a^ain become 1. There is a temporary depression of the price of corn, but the price of cloth 

 is brought down to agree with it by the transfer of producing capital. The depression of the 

 price of corn relative to cloth is only temporary, and has no permanent value which satis- 

 fies the equations of international demand and supply. 



In this case England imports only part of her supply of corn, namely, -q, the remaining 



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— are produced at home. 



59- Upon the principles here laid down, can a country lose by foreign trade ? 



Upon the principles here laid down, a country cannot lose by foreign trade. 



But among the principles here laid down is (44) the principle of transferable capital ; 

 that is, the principle that capital and labour can be transferred, without loss, from the pro- 

 duction of one commodity to another, when the state of trade produces, or threatens, a 

 diminution of profits in any branch of production. 



This can never be exactly the case. In almost all transfer of capital there is loss. But 

 the loss may be temporary: the gain, or saving of further loss is supposed to be enduring; 

 therefore, on the assumption here made, there may still be a general saving in all foreign trade. 



60. But if it be not true that capital and labour are transferable without enduring loss, 

 the results here obtained are vitiated by the failure of that part of the foundation. If when 

 a portion of a home-produced commodity is displaced in the home market by importation from 

 a foreign country, the capital and labour thus set free cannot be employed in producing any 

 other commodity for which there is a demand, the assumptions of our investigation fail. 



If, for instance, the labourers displaced become paupers, and have to be supported by the 

 country in which the displacement occurs, there may be loss to the country arising from the 

 trade. 



61. We have hitherto left out of consideration the cost of carriage of the exported 

 and imported commoditiea: what will be the result of introducing this element into the 

 calculation ? 



