XLVI ADMINISTRATIVE REPORT [eth. an.v. 20 



transported to liiiu, because he lives on the g-oods pniduced 

 by other men which must be transported to liim. The ulti- 

 mate correlation is dependent on the equity of transactions. 



Tliere is still another phase of transportation that must be 

 mentioned without stopping to fidly set forth its nature. A 

 man's wants may be sujjplied by transporting supplies to him, 

 or they may be supplied l)y transporting him to them. No 

 inconsiderable part of transportation is emploved in trans- 

 ferring individuals themselves. 



The substances that are employed in transportation are air, 

 water, rocks, plants, and animals. The constructions that are 

 employed in transportation are (1) those which are designed 

 to utilize the air, such as ships that are impelled by sails and 

 pneumatic tubes in which air pressure is utilized; (2) those 

 constructions which are employed to utilize water for trans- 

 portation, such as the steam engine and that machinery by 

 which material is transported from one 2>art of the mill to 

 another by water power; (3) those which are employed to 

 utilize wood, or coal (which is fossilized wood), for transpor- 

 tation; (4) those appliances which are necessary to utilize 

 animal muscles for trans])ortation, such as saddles, common 

 road vehicles, and all of those articles which have become 

 necessary when human beings transport freight; (5) all of the 

 tools and machinery which are employed in the utilization of 

 electricity for transportation. 



Exchanrje or iiierchnudiziin/. The man whose industry is 

 buying and selling goods is the exchanger, and he regards 

 goods or freight as connnodities. Goods or freight thus 

 become commodities to him, but the merchant has to buv his 

 commodities instead of to manufacture them. The industry 

 of merchandizing is therefore distinct from the industry of 

 transportation, as the merchant is distinct from the mech- 

 anician who produces useful powers, or from the constructor 

 who produces useful forms, or from the man who produces 

 useful substances. The elements of merchandizing are buying, 

 storing, e.xclianging, delivering, and gaining. In buying, the 

 merchant nuist consider the wants of the people; in storing, he 

 must consider preservation of the goods; in exchanging, he 



