100 NOTES ON ECONOMICAL SCIENCE. 



procure at home. Even diiferent parts of the same country afford 

 Tcry different facilities for different kinds of industry, and it would be 

 quite as reasonable for each of them, as for the whole, to resolve to do 

 all things for itself. The principle, if good for anything, would really 

 bring us back to the savage state. When a nation is led by peculiar 

 advantages for that kind of work, to employ itself largely in manufac- 

 turing industry, it must of necessity, send a large part of its produce 

 to other countries in exchange for food and for luxuries not to be pro- 

 cured within its own bounds ; and also, for a common medium of 

 exchange which the holders can use in purchasing from their neigh- 

 bours such objects of desire as are to be obtained from them. In this 

 case there is, of course, a favourable balance of trade. Suppose, on 

 the other hand,- that a nation is chiefly employed in drawing from a 

 fertile soil, the various and abundant fruits of the earth, there will be 

 also in the community many labourers, many artizans and manufac- 

 turers of such things as are advantageously made on the spot — many 

 professional men rendering useful services, and many merchants and 

 tradesmen introducing and distributing those articles which are best 

 obtained from other countries. The farmer consumes his own required 

 share of the produce of the soil, and of what he has over and above 

 this he pays a part for labour and professional services^ and a part for 

 what he desires brought from other countries ; if anything yet remains 

 he puts it in the form most convenient for reserving it as capital. 

 What goes into the hands of the professional man, is partly employed 

 in purchasing services, and goods produced on the spot including a 

 portion of the produce of the land, whilst a part goes to stimulate im- 

 portations of foreign conveniences or luxuries ; a portion also, in many 

 cases being reserved as additional wealth or capital. What passes to 

 the merchant or dealer is partly paid abroad for the commodities he 

 introduces, the portion which forms profit being divided as already 

 explained, between the purchase of produce of the land, of various 

 services, of imported goods, and a portion added to capital, wherever 

 prudence is joined with moderate success. Such a community is in a 

 healthful and flourishing state, increasing from year to year in improve- 

 ments, accumulations and enjoyments, and affording no pretence for 

 any imputation of spending what it has no right to spend ; yet, exam- 

 ine and you must perceive that its exports, consisting of the portion of 

 its produce which is consumed neither by the producers nor by any of 

 the classes employed by them, may be less in amount than the imports 



