Part 4 (2/2)

But where there is abundance of cash, it follows that in all purchases a large proportion of it will be needed Then in A, _real dearness_, which proceeds from a very active demand, is added to _nominal dearness_, the consequence of a superabundance of the precious metals

Scarcity of money implies that little is necessary for each purchase

Then in B, a _nominal cheapness_ is combined with _real cheapness_

Under these circuest possibleA, to establish itself in B

Now, to return to ould be the true course of things As the progress of such events is always gradual, industry fro opposed to sudden transits, let us suppose that, without waiting the extreradually divided itself between A and B, according to the laws of supply and de to the laws of justice and usefulness

I do not advance an empty hypothesis when I say, that were it possible that industry should concentrate itself upon a single point, there must, from its nature, arise spontaneously, and in its midst, an irresistible power of decentralization

We will quote the words of a ures brought into his deoods; this exportation gave way to that of thread for the oods; later, instead of thread, we exportedof thread; then capital for the construction of machinery; and lastly, workmen and talent, which are the source of capital All these elements of labor have, one after the other, transferred themselves to other points, where their profits were increased, and where theless difficult to obtain, life is maintained at a less cost There are at present to be seen in Prussia, Austria, Saxony, Switzerland, and Italy, ilish capital, worked by English labor, and directed by English talent”

We may here perceive, that Nature, or rather Providence, with id system of the protectionists can suppose, does not peres, frouments as from an absolute and irremediable fact It has, by means as simple as they are infallible, provided for dispersion, diffusion, ress; all of which, your restrictive laws paralyze as much as is in their power, by their tendency towards the isolation of nations By thisin the conditions of production; they check the self-leveling power of industry, prevent fusion of interests, and fence in each nation within its own peculiar advantages and disadvantages

III To say that by a protective law the conditions of production are equalized, is to disguise an error under false terms It is not true that an import duty equalizes the conditions of production These remain after the imposition of the duty just as they were before The most that the law can do is to equalize the _conditions of sale_ If it should be said that I a upon words, I retort the accusation upon my adversaries It is for them to prove that _production_ and _sale_ are synonyht to accuse the them

Let me be permitted to exemplify my idea

Suppose that several Parisian speculators should deteres They know that the oranges of Portugal can be sold in Paris at ten centimes, whilst on account of the boxes, hot-houses, etc, which are necessary to ward against the severity of our climate, it is impossible to raise thely dees With the help of this duty, say they, the _conditions of production_ will be equalized The legislative body, yielding as usual to this argue

Now I say that the _relative conditions of production_ are in no wise changed The law can take nothing from the heat of the sun in Lisbon, nor fro to us, and artificially upon those of the Seine, must continue to require for their production much more labor on the latter than the former The law can only equalize the _conditions of sale_ It is evident that while the Portuguese sell their oranges at a franc apiece, the ninety centio to pay the tax are taken from the French consumer Now look at the whie, the country loses nothing; for the ninety centimes which the consumer pays to satisfy the tax, enter into the treasury There is ie consumed, there will be about ninety centimes lost; for while the buyer very certainly loses theain the to the hypothesis, he will receive only the price of production I will leave it to the protectionists to draw their conclusion

IV I have laid some stress upon this distinction between the conditions of production and those of sale, which perhaps the prohibitionists may consider as paradoxical, because it leads er paradox This is: If you really wish to equalize the facilities of production, leave trade free

This may surprise the protectionists; but let h curiosity, to the end ofI will now take it up where we left off

If we suppose for the moment, that the common and daily profits of each Frenchman amount to one franc, it will indisputably follow that to produce an orange by _direct_ labor in France, one day's work, or its equivalent, will be requisite; whilst to produce the cost of a Portuguese orange, only one-tenth of this day's labor is required; which means simply this, that the sun does at Lisbon what labor does at Paris

Now is it not evident, that if I can produce an orange, or, what is the sa it, with one-tenth of a day's labor, I auese producer hi the expense of the transportation? It is then certain that freedom of commerce equalizes the conditions of production direct or indirect, as much as it is possible to equalize them; for it leaves but the one inevitable difference, that of transportation

I will add that free trade equalizes also the facilities for attaining enjoyeneral consuotten, and which is nevertheless all important; since consumption is the main object of all our industrial efforts Thanks to freedouese sun, as well as Portugal itself; and the inhabitants of Havre, would have in their reach, as well as those of London, and with the saical point of view conferred upon Newcastle

The protectionists o farther still I say, and I sincerely believe, that if any two countries are placed in unequal circues of production, _that one of the thich is the least favored by nature, will gain ed to turn sos to this work I will do so, however; first, because the question in discussion turns upon this point; and again, because it will givea law of political econohest importance, and which, well understood, seems to me to be destined to lead back to this science all those sects which, in our days, are seeking in the land of chimeras that social harmony which they have been unable to discover in nature I speak of the law of consumption, which the majority of political econolected

Consumption is the _end_, the final cause, of all the phenomena of political economy, and, consequently, in it is found their final solution

No effect, whether favorable or unfavorable, can be arrested peres, which, from his relations to nature and to society, are his, both equally pass gradually from him, with an almost insensible tendency to be absorbed and fused into the coe; the community considered as consumers This is an admirable law, alike in its cause and its effects, and he who shall succeed in ht to say, ”I have not, in otten to pay my tribute to society”

Every circumstance which favors the work of production is of course hailed with joy by the producer, for its _ireater services to the coreater remuneration Every circumstance which injures production, must equally be the source of uneasiness to him; for its _immediate effect_ is to diminish his services, and consequently his remuneration This is a fortunate and necessary law of nature The iood or evil of favorable or unfavorable circumstances must fall upon the producer, in order to influence hiain, when a workman succeeds in his labor, the _iain is necessary, to determine him to devote his attention to it It is also just; because it is just that an effort croith success should bring its oard

But these effects, good and bad, although perards the producer If they had been so, a principle of progressive and consequently infinite _inequality_ would have been introduced aood, and this evil, both therefore pass on, to becoeneral destinies of humanity

How does this come about? I will try to o back to the thirteenth century Men who gave the, received for this service _a re the rapidly copies of the sa The first effect of this is, that the individual is enriched, while many more are impoverished At the first vieonderful as the discovery is, one hesitates in deciding whether it is not more injurious than useful It seems to have introduced into the world, as I said above, an elee profits by this invention, and perfects the invention by the profits, until all other copyists are ruined As for the public,--the consu takes care to lower the price of books only just so much as is necessary to undersell all rivals