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those　countries　which　allow　us　to　pay　for　them　with　our　own



manufactured　goods。　This　is　especially　the　task　which　the　German



commercial　union　has　to　solve；　if　the　German　nation　is　not　to



remain　far　behind　the　French　and　North　Americans；　nay；　far　behind



even　the　Russians。







NOTES：











1。　Vide　Wealth　of　Nations；　Book　IV。　chap。　ii。　（TR。）







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。



　　　　In　a　confederated　State；　the　financial　economy　of　the　State　is



again　divided　into　the　financial　economy　of　the　separate　states　and



the　financial　economy　of　the　entire　union。



　　　　The　economy　of　the　people　becomes　identical　with　national



economy　where　the　State　or　the　confederated　State　embraces　a　whole



nation　fitted　for　independence　by　the　number　of　its　population；　the



extent　of　its　territory；　by　its　political　institutions；



civilisation；　wealth；　and　power；　and　thus　fitted　for　stability　and



political　influence。　The　economy　of　the　people　and　national　economy



are；　under　these　circumstances；　one　and　the　same。　They　constitute



with　the　financial　economy　of　the　State　the　political　economy　of



the　nation。



　　　　But；　on　the　other　hand；　in　States　whose　population　and



territory　merely　consist　of　the　fraction　of　a　nation　or　of　a



national　territory；　which　neither　by　complete　and　direct　union；　nor



by　means　of　a　federal　union　with　other　fractions；　constitutes　a



whole；　we　can　only　take　into　consideration　an　'economy　of　the



people'　which　is　directly　opposed　to　'private　economy'　or　to



'financial　economy　of　the　State。'



　　　　In　such　an　imperfect　political　condition；　the　objects　and



requirements　of　a　great　nationality　cannot　be　taken　into



consideration；　especially　is　it　impossible　to　regulate　the　economy



of　the　people　with　reference　to　the　development　of　a　nation



complete　in　itself；　and　with　a　view　to　its　independence；



permanence；　and　power。　Here　politics　must　necessarily　remain



excluded　from　economy；　here　can　one　only　take　account　of　the



natural　laws　of　social　economy；　as　these　would　develop　and　shape



themselves　if　no　large　united　nationality　or　national　economy



existed　anywhere。



　　　　It　is　from　this　standpoint　that　that　science　has　been



cultivated　in　Germany　which　was　formerly　called　'State



administration；'　then　'national　economy；'　then　'political　economy；'



then　'popular　administration；'　without　anyone　having　clearly



apprehended　the　fundamental　error　of　these　systems。



　　　　The　true　conception　and　real　character　of　national　economy



could　not　be　recognised　because　no　economically　united　nation　was



in　existence；　and　because　for　the　distinct　and　definite　term



'nation'　men　had　everywhere　substituted　the　general　and　vague　term



'society'；　an　idea　which　is　as　applicable　to　entire　humanity；　or　to



a　small　country；　or　to　a　single　town；　as　to　the　nation。







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　cause　of　this　difference　lies　partly　in　the　different　kind



of　social　habits　and　of　education　which　respectively　characterise



these　two　classes　of　people；　partly　in　the　different　character　of



their　occupation　and　in　the　things　which　are　requisite　for　it。　The



agricultural　population　lives　dispersed　over　the　whole　surface　of



the　country；　and　also；　in　respect　to　mental　and　material



intercourse；　agriculturists　are　widely　separated　from　one　another。



One　agriculturist　does　almost　precisely　what　the　other　does；　the



one　produces；　as　a　rule；　what　the　other　produces。　The　surplus



produce　and　the　requirements　of　all　are　almost　alike；　everybody　is



himself　the　best　consumer　of　his　own　products；　here；　therefore；



little　inducement　exists　for　mental　intercourse　or　material



exchange。　The　agriculturist　has　to　deal　less　with　his　fellow…men



than　with　inanimate　nature。　Accustomed　to　reap　only　after　a　long



lapse　of　time　where　he　has　sown；　and　to　leave　the　success　of　his



exertions　to　the　will　of　a　higher　power；　contentment　with　little；



patience；　resignation；　but　also　negligence　and　mental　laziness；



become　to　him　a　second　nature。　As　his　occupation　keeps　him　apart



from　intercourse　with　his　fellow…men；　so　also　does　the　conduct　of



his　ordinary　business　require　but　little　mental　exertion　and　bodily



skill　on　his　part。　He　learns　it　by　imitation　in　the　narrow　circle



of　the　family　in　which　he　was　born；　and　the　idea　that　it　might　be



conducted　differently　and　better　seldom　occurs　to　him。　From　the



cradle　to　the　grave　he　moves　always　in　the　same　limited　circle　of



men　and　of　circumstances。　Examples　of　special　prosperity　in



consequence　of　extraordinary　mental　and　bodily　exertions　are　seldom



brought　before　his　eyes。　The　possession　of　means　or　a　state　of



poverty　are　transmitted　by　inheritance　in　the　occupation　of　mere



agriculture　from　generation　to　generation；　and　almost　all　that



power　which　originates　in　emulation　lies　dead。



　　　　The　nature　of　manufactures　is　fundamentally　different　from　that



of　agriculture。　Drawn　towards　one　another　by　their　business；



manufacturers　live　only　in　society；　and　consequently　only　in



commercial　intercourse　and　by　means　of　that　intercourse。　The



manufacturer　procures　from　the　market　all　that　he　requires　of　the



necessaries　of　life　and　raw　materials；　and　only　the　smallest　part



of　his　own　products　is　destined　for　his　own　consumption。　If　the



agriculturist　expects　a　blessing　on　his　exertions　chiefly　from



nature；　the　prosperity　and　existence　of　the　manufacturer　mainly



depend　on　his　commercial