ORGANISATION OF INDUSTRY. 493 



duced the equivalent of coin is not in circulation. A certain 

 amount of the product is virtually or actually received by the 

 secondary workers in exchange for services. If the produce 

 dealer, who is also a carrier, purchases ten tons of hay on a 

 farm at £2 per ton, which he sells at £2 \0s. in the market- 

 place, when he has sold eight tons he will get hack the 

 amount of capital he has expended, and the remaining two 

 tons will in part represent his income. When it is sold he 

 receives the equivalent of coin. And, in like mannei", when 

 ten million pounds' worth of wool (being the approximate 

 amount) leaves the stations of New South Wales, if four- 

 fifths of it, being the value of eight millions on the station, 

 fetches ten millions in the London market, the remaining 

 two millions will represent the incomes of the carriers, 

 merchants, wharfingers, shipowners, and seamen who 

 derive incomes from their services in dealing with the wool. 

 I have shown, in the left-hand segment of the lower portion 

 of the circle, marked No. 1 in red, the first exchange as 

 regards the primary workers, the pi'oduce passing from the 

 producers at its primary value, in exchange for currency, 

 into the first hands receiving the product, who derive incomes 

 from dealing with it — the wholesale dealers, merchants, 

 shippers, and warehousemen ; and I have shown in this 

 division the portion of the product leaving the country in the 

 shape of exports. The segment on the right, in the lower 

 portion of the circle marked No. 2, shows the second exchange 

 as regards the producers, and virtually represents the market- 

 place where are located the warehousemen, the retail vendors 

 and purveyors, the second and third hands receiving the pro- 

 duct and imports for which the exports are exchanged. Here 

 each producer pays a higher price for the product he con- 

 sumes than the primary value at which it was originally sold, 

 the difference partly representing the earnings of the 

 numerous classes in the lower portion of the circle. Ii the 

 upper portion of the circle marked No. 3 I have shown 

 currency passing from the producers to the classes at the cir- 

 cumference in exchange for services. The circle shows the 

 exchanges as regards the producers. Place each of the 

 classes in turn at the centre of the circle for the purj)oses of 

 expenditure as regards sections 2 and 3, and the cycle of 

 operations in the distribution of the product will bo complete. 

 It is not generally realised what numerous classes are com- 

 prised in the division of secondary workers who are not 



