76 HOME TRADE AND FOREIGN TRADE 



those cases where the gain in capital brought in 

 is not overbalanced by the transport expenses 

 and loss due to delay, owing to the distance apart 

 of the countries trading. 



In the early days of manufacture this, no doubt, 

 formed an important feature of trade ; and would 

 do so still if manufacturing countries had not 

 gained so much knowledge by experience. Most 

 highly civilised modern nations can now make 

 anything they require for themselves as cheaply 

 as other nations could do it for them, once the 

 raw material is obtained. Even from Great 

 Britain superiority in manufacturing goods has 

 mostly passed away. 



Let it next be supposed that, of the two countries 

 trading together oversea, one has a certain amount 

 of shipping. Then to that extent that country is 

 not compelled to pay out for the transport of her 

 goods. If she has sufficient shipping for the 

 complete transport of her goods, then she pays 

 out nothing for that transport ; she employs her 

 own ships and stores, uses the labour of her own 

 sailors, and keeps for herself the whole of that 

 transport charge. Thus, supposing trade still 

 free on both sides, the country with shipping 

 gains not only the profits of the transaction, but 

 also the transport charge : she is able to find 

 employment for a number of men as sailors. 



This advantage is not inherent in the foreign 

 trade ; it is inherent in the possession of shipping. 

 If sufficiently well-paid employment were found 

 for all her shipping, in the trade between one 

 foreign country and another, a country with 



