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The National System of Political Economy (21)

Chapter 21

The Manufacturing Power and Commerce

We have hitherto merely spoken of the relations between agriculture and manufactures, because they form the fundamental ingredients of the national production, and because, before obtaining a clear view of their mutual relations, it is impossible to comprehend correctly the actual function and position of commerce. Commerce is also certainly productive (as the school maintains); but it is so in quite a different manner from agriculture and manufactures. These latter actually produce goods, commerce only brings about the exchange of the goods between agriculturists and manufacturers, between producers and consumers. From this it follows that commerce must be regulated according to the interests and wants of agriculture and manufactures, not vice versв.

The National System of Political Economy (20)

Chapter 20

The Manufacturing Power and the Agricultural Interest

If protective duties in favour of home manufactures proved disadvantageous to the consumers of manufactured goods and served only to enrich the manufacturer, this disadvantage would especially be felt by the landed proprietor and the agriculturist, the most numerous and important class of those consumers. But it can be proved that even this class derives far greater advantages from the establishment of manufactures, than the manufacturers themselves do; for by means of these manufactures a demand for greater variety and for larger quantities of agricultural products is created, the value in exchange of these products is raised, the agriculturist is placed in a position to utilise his land and his powers of labour more profitably. Hence emanates an increase of rent, of profits, and wages; and the augmentation of rents and capital is followed by an increase in the selling value of land and in the wages of labour.

The National System of Political Economy (19)

Chapter 19

The Manufacturing Power and the Instrumental Powers (Material Capital) Of the Nation

    The nation derives its productive power from the mental and physical powers of the individuals; from their social, municipal, and political conditions and institutions; from the natural resources placed at its disposal, or from the instruments it possesses as the material products of former mental and bodily exertions (material, agricultural, manufacturing, and commercial capital). In the last two chapters we have dealt with the influence of manufactures on the three first-named sources of the national productive powers; the present and the following chapter are devoted to the demonstration of its influence on the one last named.

The National System of Political Economy (18)

Chapter 18

The Manufacturing Power and the Natural Productive Powers of the Nation.

The more that man and the community perfect themselves, the more are they enabled to make use of the natural powers which are within their reach for the accomplishment of their objects, and the more does the sphere of what is within their reach extend itself.

The National System of Political Economy (17)

Chapter 17

The Manufacturing Power and the Personal, Social, and Political Productive Powers of the Nation

In a country devoted to mere raw agriculture, dullness of mind, awkwardness of body, obstinate adherence to old notions, customs, methods, and processes, want of culture, of prosperity, and of liberty prevail. The spirit of striving for a steady increase in mental and bodily acquirements, of emulation, and of liberty, characterise, on the contrary, a State devoted to manufactures and commerce.

The National System of Political Economy (16)

Chapter 16

Popular and State Financial Administration, Political and National Economy

That which has reference to the raising, the expending, and the administration of the material means of government of a community (the financial economy of the State), must necessarily be distinguished everywhere from those institutions, regulations, laws, and conditions on which the economy of the individual subjects of a State is dependent, and by which it is regulated; i.e. from the economy of the people. The necessity for this distinction is apparent in reference to all political communities, whether these comprise a whole nation or merely fractions of a nation, and whether they are small or large.

The National System of Political Economy (15)

Chapter 15

Nationality and the Economy of the Nation

The system of the school suffers, as we have already shown in the preceding chapters, from three main defects: firstly, from boundless cosmopolitanism, which neither recognises the principle of nationality, nor takes into consideration the satisfaction of its interests; secondly, from a dead materialism, which everywhere regards chiefly the mere exchangeable value of things without taking into consideration the mental and political, the present and the future interests, and the productive powers of the nation; thirdly, from a disorganising particularism and individualism, which, ignoring the nature and character of social labour and the operation of the union of powers in their higher consequences, considers private industry only as it would develop itself under a state of free interchange with society (i.e. with the whole human race) were that race not divided into separate national societies.

The National System of Political Economy (14)

Chapter 14

Private Economy and National Economy

We have proved historically that the unity of the nation forms the fundamental condition of lasting national prosperity; and we have shown that only where the interest of individuals has been subordinated to those of the nation, and where successive generations have striven for one and the same object, the nations have been brought to harmonious development of their productive powers, and how little private industry can prosper without the united efforts both of the individuals who are living at the time, and of successive generations directed to one common object. We have further tried to prove in the last chapter how the law of union of powers exhibits its beneficial operation in the individual manufactory, and how it acts with equal power on the industry of whole nations. In the present chapter we have now to demonstrate how the popular school has concealed its misunderstanding of the national interests and of the effects of national union of powers, by confounding the principles of private economy with those of national economy.

The National System of Political Economy (13)

Chapter 13

The National Division of Commercial Operations and the Confederation of the National Productive Forces

The school is indebted to its renowned founder for the discovery of that natural law which it calls ’division of labour,’ but neither Adam Smith nor any of his successors have thoroughly investigated its essential nature and character, or followed it out to its most important consequences.

The National System of Political Economy (12)

Chapter 12

The Theory of the Powers of Production and the Theory of Values

Adam Smith’s celebrated work is entitled, ’The Nature and Causes of the Wealth of Nations.’ The founder of the prevailing economical school has therein indicated the double point of view from which the economy of nations, like that of private separate individuals, should be regarded.