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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 (inver
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