ORGANISATION OF INDUSTRY. 601 



of Bastiat the French Economist, which he has called " The 

 Circle of Universal Industry." I have taken from it my idea 

 of the larger circle. The red Unes and figures appearing in 

 the diagram are additions I have made thereto. Bastiat 

 places in the centre a producer A, who, he says, will represent 

 production in general. He is a copyist, and produces four 

 manuscripts which he supplies to consumers at the circum- 

 ference of the circle. The art of printing is invented, and 

 he is able to supply six copies within the time he was 

 previously able to supply four ; but competition reduces the 

 price from 15 to 10, and he receives but 60, as before. 

 "Who has gained by the change?" says Bastiat. "As 

 regards value, no one." " As regards real wealth and 

 positive satisfaction, the countless body of consumers ranged 

 round the circumference. But the consumers are the human 

 race. For observe that A himself, in so far as he is a 

 consumer, gains exactly as others do. By turns A finds 

 himself at the centre and at the circumference of universal 

 industry ; for he is by turn producer and consumer. Thus 

 all profit by the pj'ogress of each, and each profits by the 

 progress of all. This diagram indicates the equality which 

 is involved in all exchange ; but it does not deal with the 

 total incomes or the question under consideration, as to how 

 one-half of the product duplicates. Placing in this circle 

 the figure 30, shown at the centre of the other diagram, 

 one-half (15) passing to the circumference of the circle will 

 be received as the incomes of numerous classes representing 

 similarly to the classes at the centre, capitalists, middle 

 classes, manual workers, and the lowest paid labourers. 

 They will be hundreds of thousands or millions in a country ; 

 and in the general result it may be assumed that they 

 likewise consume one-half of the product received, — passing 

 one-half, say, to the circumference of another circle, in 

 payment for services, — representing the incomes of other 

 large and numerous classes. One-half of the product so 

 received will be dealt with in like manner, and so on, — the 

 total amount of the incomes becoming gradually smaller, 

 until the product is so reduced that it gives off no further 

 incomes : then, if these figures in series of arithmetical 

 progression be added together, the result will be that the 

 16 passing to the circumference of the circle must duplicate. 

 A calculation of this character as regards the incomes may, 

 no doubt, be analysed ; they may be the subject of classifica- 

 tion, and the relation between the different kind of incomes 



