CERTAIN DOCTRINES OF POLITICAL ECONOMY. [5] 



countries. A difference so great (if it did not produce a great diminution of our internal 

 trade,) would produce an export of commodities beyond what our formula supposes. The 

 additional export F would not be merely mG, but would, for values of m approaching to 1, 

 be a greater quantity. It would be easy to propose a function of m which should satisfy 

 these conditions ; but we do not need to do so, in order to shew the nature of the mutual 

 dependence of the quantities which enter into our formula. 



78. The quantity m G, the value of the new export, is always less than K, the value of 

 the new import, (for mG + mQ — K ;) therefore if the labour displaced by the import of 

 iTbe all employed in producing mG, it will obtain a smaller return than it did before. 



But this smaller return may be of equal, less or greater value, as commanding commodities 

 in our country, in consequence of the reduction of prices. 



79- Thus, taking the first example above given, (76), let K= 100,000, Q = 60,000 ; and 



5 5 



let m be — . Then m G = — x 1,000,000 = 94,340; therefore the labour which before earned 



53 53 



100,000, (or more, for the import K costs less than the home-produced article did which it 



50 

 replaces) now earns 94,340, or is diminished in the ratio — (at least). But prices (of 



53 



all things, and therefore of articles consumed by the labourers), are diminished in the ratio 



48 



— ; and therefore, on these suppositions, the labourers who pass from the production of K to 



that of mG may be gainers. 



80. But let Q = 100,000, K = 100,000 as before, G = 1,000,000 : then we have 



K 1 1 



m = 



G + Q 10+1 11 



Hence mG = — x 100,000, while K= 100,000; and the payment of the labour which K 



displaces is reduced in the ratio — . But prices are also reduced in the ratio — . Therefore 



on those suppositions, the labour which is displaced by the importation of K may be as well 

 paid as before. 



But this supposition that K, the sum paid for the new import, is as great as the sum paid, 

 before the import of K, to the home-producers of the same article, is evidently erroneous. The 

 occasion of the import of (K) is, that the importers' price is less than the home-producers' 

 price ; and hence, even on the supposition made, the previous home-producer of the commodity 

 (IT), when driven by the import to produce new exportable commodities (F), may be worse 

 paid than before. 



81. If K be smaller than Q, the displaced labour cannot be so well paid as before. 

 Thus let K = 10,000, G = 1,000,000, Q = 60,000 ; then m - — — - = — : 1 - m = — . 



