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influence their rising or falling; &c。 without thereby taking into
account the political circumstances of the nation。 Clearly;
however; these matters appertain as much to private economy as to
the economy of whole nations。 We have merely to consider the
history of Venice; of the Hanseatic League; of Portugal; Holland;
and England; in order to perceive what reciprocal influence
material wealth and political power exercise on each other。
The school also always falls into the strangest inconsistencies
whenever this reciprocal influence forces itself on their
consideration。 Let us here only call to mind the remarkable dictum
of Adam Smith on the English Navigation Laws。(3*)
The popular school; inasmuch as it does not duly consider the
nature of the powers of production; and does not take into account
the conditions of nations in their aggregate; disregards especially
the importance of developing in an equal ratio agriculture;
manufactures and commerce; political power and internal wealth; and
disregards especially the value of a manufacturing power belonging
specially to the nation and fully developed in all its branches。 It
commits the error of placing manufacturing power in the same
category with agricultural power; and of speaking of labour;
natural power; capital; &c。 in general terms without considering
the differences which exist between them。 It does not perceive that
between a State devoted merely to agriculture and a State
possessing both agriculture and manufactures; a much greater
difference exists than between a pastoral State and an agricultural
one。 In a condition of merely agricultural industry; caprice and
slavery; superstition and ignorance; want of means of culture; of
trade; and of transport; poverty and political weakness exist。 In
the merely agricultural State only the least portion of the mental
and bodily powers existing in the nation is awakened and developed;
and only the least part of the powers and resources placed by
nature at its disposal can be made use of; while little or no
capital can be accumulated。
Let us compare Poland with England: both nations at one time
were in the same stage of culture; and now what a difference。
Manufactories and manufactures are the mothers and children of
municipal liberty; of intelligence; of the arts and sciences; of
internal and external commerce; of navigation and improvements in
transport; of civilisation and political power。 They are the chief
means of liberating agriculture from its chains; and of elevating
it to a commercial character and to a degree of art and science; by
which the rents; farming profits; and wages are increased; and
greater value is given to landed property。 The popular school has
attributed this civilising power to foreign trade; but in that it
has confounded the mere exchanger with the originator。 Foreign
manufactures furnish the goods for the foreign trade; which the
latter conveys to us; and which occasion consumption of products
and raw materials which we give in exchange for the goods in lieu
of money payments。
If; however; trade in the manufactures of far distant lands
exercises admittedly so beneficial an influence on our agricultural
industry; how much more beneficial must the influence be of those
manufactures which are bound up with us locally; commercially; and
politically; which not only take from us a small portion; but the
largest portion of their requirements of food and of raw materials;
which are not made dearer to us by great costs of transport; our
trade in which cannot be interrupted by the chance of foreign
manufacturing nations learning to supply their own wants
themselves; or by wars and prohibitory import duties?
We now see into what extraordinary mistakes and contradictions
the popular school has fallen in making material wealth or value of
exchange the sole object of its investigations; and by regarding
mere bodily labour as the sole productive power。
The man who breeds pigs is; according to this school; a
productive member of the community; but he who educates men is a
mere non…productive。 The maker of bagpipes or jews…harps for sale
is a productive; while the great composers and virtuosos are
non…productive simply because that which they play cannot be
brought into the market。 The physician who saves the lives of his
patients does not belong to the productive class; but on the
contrary the chemist's boy does so; although the values of exchange
(viz。 the pills) which he produces may exist only for a few minutes
before they pass into a valueless condition。 A Newton; a Watt; or
a Kepler is not so productive as a donkey; a horse; or a draught…ox
(a class of labourers who have been recently introduced by
M'Culloch into the series of the productive members of human
society)。
We must not believe that J。 B。 Say has remedied this defect in
the doctrine of Adam Smith by his fiction of 'immaterial goods' or
products; he has thu s merely somewhat varnished over the folly of
its results; but not raised it out of its intrinsic absurdity。 The
mental (immaterial) producers are merely productive; according to
his views; because they are remunerated with values of exchange;
and because their attainments have been obtained by sacrificing
values of exchange; and not because they produce productive
powers。(4*) They merely seem to him an accumulated capital。
M'Culloch goes still further; he says that man is as much a product
of labour as the machine which he produces; and it appears to him
that in all economical investigations he must be regarded from this
point of view。 He thinks that Smith comprehended the correctness of
this principle; only he did not deduce the correct conclusion from
it。 Among other things he draws the conclusion that eating and
drinking are productive occupations。 Thomas Cooper values a clever
American lawyer at 3;000 dollars; which is about three times as
much as the value of a strong slave。
The errors and contradictions of the prevailing school to which
we have drawn attention; can be easily corrected from the
standpoint of the theory of the productive powers。 Certainly those
who fatten pigs or prepare pills are productive; but the
instructors of youths and of adults; virtuosos; musicians;
physicians; judges; and administrators; are productive in a much
higher degree。 The former produce values of exchange; and the
latter productive powers; some by enabling the future generation to
become producers; others by furthering the morality and religious
character of the present generation; a third by ennobling and
raising the powers of the human wind; a fourth by preserving the
productive powers of his patients; a fifth by rendering human
rights and justice secure; a sixth by constituting and protecting
public security; a seventh by his art and by the enjoyment which it
occasions fitting men the better to produce values of exchange。 In
the doctrine of mere values; these producers of the productive
powers can of course only be taken into consideration so far as
their services are rewarded by values of exchange; and this manner
of regarding their services may in some instances have its
practical use; as e。g。 in the doctrine of public taxes; inasmuch as
these have to be satisfied by values of exchange。 But whenever our
consideration is given to the nation (as a whole and in its
international relations) it is utterly insufficient; and leads to
a series of narrow…minded and false views。
The prosperity of a nation is not; as Say believes; greater in
the proportion in which it has amassed more wealth (i。e。 values of
exchange); but in the proportion in which it has more developed its
powers of production。 Although laws and public institutions do not
produce immediate values; they nevertheless produce productive
powers; and Say is mistaken if he maintains that nations have been
enabled to become wealthy under all forms of government; and that
by weans of laws no wealth can be created。 The foreign trade of a
nation must not be estimated in the way in which individual
merchants judge it; solely and only according to the theory of
values (i。e。 by regarding merely the gain at any particular moment
of some material advantage); the nation is bound to keep steadily
in view all these conditions on which its present and future
existence; prosperity; and power depend。
The nation must sacrifice and give up a measure of material
property in order to gain culture; skill; and powers of united
production; it must sacrifice some present advantages in order to
insure to itself future ones。 If; therefore; a manufacturing power
developed in all its branches forms a fundamental condition of all
higher advances in civilisation; material prosperity; and political
power in every nation (a fact which; we think; we have proved from
history); if it be true (as we believe we can prove) that in the
present conditions of the world a new unprotected manufacturing
power cannot possibly be raised up under free competition with a
power which has long since grown in strength and is protected on
its own territory; how can anyone possibly undertake to prove by
arguments only based on the mere theory of values; that a nation
ought to buy its goods like individual merchants; at places where
they are to be had the cheapest that