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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 

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