BY E. M. JOHNSTON, r.L.S. 157 



necessary satisfactions to each consumer where the values of 

 N and P and C are constant, it follows inevitably that the 

 amount of satisfactions to each individual is in direct corre- 

 spondence to the amount of ; increasing with its decrease, 

 and decreasing with its increase. 



The effect upon^Hce, however, is exactly the reverse of this, 

 as a definite amount of satisfactions increase in price in corre- 

 spondence with the increase in obstacles (0), and decrease 

 correspondingly with its increase. 



This law is not invalidated, because in particular cases (1) 

 price is comparatively low when is absolutely great, and 

 conversely (2), price is comparatively low when O is absolutely 

 small ; for in every stich case there must be corresponding 

 dissimilarity in the other elements to explain this effect : i.e.: — 



The effect (1) could only happen in cases where either N 

 or P is abnormally or relatively great, or C is comparatively 

 small ; and similarly the effect (2) could only happen in cases 

 where either N or P is abnormally or relatively small or C 

 is comparatively great. 



The failure to grasp these fundamental considerations is 

 the chief cause of the blunders in all reasonings connected 

 with questions related to the policy of different nations in 

 respect of artificial restrictions, hindrances or facilities in 

 the interchange of foreign products. 



To make this matter more clear it may be advantageous in 

 demonstration to set forth a number of examples for the sake 

 of illustrating the important truths involved in the effects 

 produced where one or all the factors are different in value : — 



(1.) Where soil, climate, or natural utilities are particu- 

 larly advantageous the value of IST is at its best or 

 maximum^N" 



(2.) "Where skill and energy exist and are employed to 

 the best advantage the largest results are attained 

 for P=P° 



(3.) Where the smallest number of obstacles occur 

 between NP and C, the largest amount of satis- 

 factions fall to the share of 0:^0"° 



(4.) The most perfect conditions favourable for effecting 

 the highest amount of satisfactions to each indi- 

 vidual consumer coincide with N" P" — 0° 



Or, 



If we separate P" into labourers (L), and instruments 

 (1) the fruit of former efforts saved from previous consump- 

 tion, and devoted by inventive skill and energy to more or 



