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native manufacture a mass of foreign capital； mental as well as
material； is attracted into the country。
He falsely maintains that these manufactures have originated in
the natural course of things and of their own accord；
notwithstanding that in every nation the political power interferes
to give to this so…called natural course an artificial direction
for the nation's own special advantage。
He has illustrated his argument； founded on an ambiguous
expression and consequently fundamentally wrong； by a fundamentally
wrong example； in seeking to prove that because it would be foolish
to produce wine in Scotland by artificial methods； therefore it
would be foolish to establish manufactures by artificial methods。
He reduces the process of the formation of capital in the
nation to the operation of a private rentier； whose income is
determined by the value of his material capital； and who can only
increase his income by savings which he again turns into capital。
He does not consider that this theory of savings； which in the
merchant's office is quite correct； if followed by a whole nation
must lead to poverty； barbarism； powerlessness； and decay of
national progress。 Where everyone saves and economises as much as
he possibly can； no motive can exist for production。 Where everyone
merely takes thought for the accumulation of values of exchange；
the mental power required for production vanishes。 A nation
consisting of such insane misers would give up the defence of the
nation from fear of the expenses of war； and would only learn the
truth after all its property had been sacrificed to foreign
extortion； that the wealth of nations is to be attained in a manner
different to that of the private rentier。
The private rentier himself； as the father of a family； must
follow a totally different theory to the shopkeeper theory of the
material values of exchange which is here set up。 He must at least
expend on the education of his heirs as much value of exchange as
will enable them to administer the property which is some day to
fall to their lot。
The building up of the material national capital takes place in
quite another manner than by mere saving as in the case of the
rentier； namely； in the same manner as the building up of the
productive powers； chiefly by means of the reciprocal action
between the mental and material national capital； and between the
agricultural； manufacturing； and commercial capital。
The augmentation of the national material capital is dependent
on the augmentation of the national mental capital； and vice vers狻�
The formation of the material agricultural capital is dependent
on the formation of the material manufacturing capital； and vice
vers狻�
The material commercial capital acts everywhere as an
intermediary； helping and compensating between both。
In the uncivilised state； in the state of the hunter and the
fisher； the powers of nature yield almost everything； capital is
almost nil。 Foreign commerce increases the latter； but also in so
doing （through fire…arms； powder； lead） totally destroys the
productiveness of the former。 The theory of savings cannot profit
the hunter； he must be ruined or become a shepherd。
In the pastoral state the material capital increases quickly；
but only so far as the powers of nature afford spontaneously
nourishment to the cattle。 The increase of population； however；
follows closely upon the increase of flocks and herds and of the
means of subsistence。 On the one hand； the flocks and herds as well
as pastures become divided into smaller shares； on the other hand；
foreign commerce offers inducements to consumption。 It would be in
vain to preach to the pastoral nation the theory of savings； it
must sink into poverty or pass over into the agricultural State。
To the agricultural nation is open an immense； but at the same
time limited； field for enriching itself by utilising the dormant
powers of nature。
The agriculturist for himself alone can save provisions；
improve his fields； increase his cattle； but the increase of the
means of subsistence always follows the increase of population。 The
material capital （namely； cultivated land and cattle）； in
proportion as the former becomes more fertile and the latter
increase； becomes divided among a larger number of persons。
Inasmuch； however； as the surface of the land cannot be increased
by industry； and the land cannot be utilised up to the measure of
its natural capacity； for want of means of transport； which （as we
showed in the preceding chapter） must remain imperfect in such a
state of things owing to lack of intercourse； and as moreover the
merely agricultural nation is mostly in want of those instruments；
intelligence； motives to exertion； and also of that energy and
social development which are imparted to the nation through
manufactures and the commerce which originates from them； the mere
agricultural population soon reaches a point in which the increase
of material agricultural capital can no longer keep pace with the
increase of population； and where consequently individual poverty
increases more and more； notwithstanding that the total capital of
the nation is continually increasing。
In such a condition the most important product of the nation
consists of men； who； as they cannot find sufficient support in
their own country； emigrate to other countries。 It can be but
little consolation to such a country； that the school regards man
as an accumulated capital； for the exportation of men does not
occasion return freights； but； on the contrary； causes the
unproductive export of considerable amounts of material values（in
the shape of implements； utensils； money； &c。）。
It is clear that in such a state of things； where the national
division of labour is not properly developed； neither industry nor
economy can bring about the augmentation of the material capital
（material enrichment of individuals）。
The agricultural country is； of course； rarely quite without
any foreign commerce； and foreign commerce； as far as it extends；
also supplies the place of internal manufactures with regard to the
augmentation of capital； inasmuch as it places the manufacturer of
the foreign country in commercial relation with the agriculturist
of the home country。 This； however； takes place only partially and
very imperfectly； firstly； because this commerce extends merely to
special staple products； and chiefly only to those districts which
are situated on the sea…coast and on navigable rivers； and
secondly； because it is in any case but a very irregular one； and
is liable to be frequently interrupted by wars； fluctuations in
trade and changes in commercial legislation； by specially rich
harvests； and by foreign importations。
The augmentation of the material agricultural capital can only
take place on a large scale； with regularity and continuously； if
a completely developed manufacturing power is established in the
midst of the agriculturists。
By far the greatest portion of the material capital of a nation
is bound to its land and soil。 In every nation the value of landed
property； of dwelling houses in rural districts and in towns； of
workshops； manufactories； waterworks； mines； &c。 amounts to from
two…thirds to nine…tenths of the entire property of the nation。 It
must therefore be accepted as a rule； that all that increases or
decreases the value of the fixed property； increases or decreases
the total of the material capital of the nation。 Now； it is evident
that the capital value of land of equal natural fertility is
incomparably larger in the proximity of a small town than in remote
districts； that this value is incomparably larger still in the
neighbourhood of a large town than in that of a small one； and that
in manufacturing nations these values are beyond all comparison
greater than in mere agricultural nations。 We may observe
（inversely） that the value of the dwelling houses and manufacturing
buildings in towns； and that of building land； rises or falls （as
a rule） in the same ratio in which the commercial intercourse of
the town with the agriculturists is extended or restricted； or in
which the prosperity of these agriculturists progresses or recedes。
From this it is evident that the augmentation of the agricultural
capital is dependent on the augmentation of the manufacturing
capital； and （inversely） the latter on the former。（2*）
This reciprocal action is； however； in the case of the change
from the agricultural state into the manufacturing state much
stronger on the part of manufacture than on the part of
agriculture。 For as the increase of capital which results from the
change from the condition of the mere hunter to the pastoral
condition is chiefly effected by the rapid increase of flocks and
herds； as the increase of capital resulting from the change from
the pastoral condition into the agricultural condition is chiefly
effected by the rapid increase in cultivated land and in surplus
produce； so； in the event of a change from the agricultural
condition into the manufacturing condition； is the augmentation of
the material capital of the nation chiefly effected by those values
and powers which are devoted to the establishment of manufactures；
because thereby a mass
