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the bad ones herself: at most France might retain the manufacture



of a little millinery。 Germany would scarcely have more to supply



this English world with than children's toys; wooden clocks; and



philological writings; and sometimes also an auxiliary corps; who



might sacrifice themselves to pine away in the deserts of Asia or



Africa; for the sake of extending the manufacturing and commercial



supremacy; the literature and language of England。 It would not



require many centuries before people in this English world would



think and speak of the Germans and French in the same tone as we



speak at present of the Asiatic nations。



    True political science; however; regards such a result of



universal free trade as a very unnatural one; it will argue that



had universal free trade been introduced at the time of the



Hanseatic League; the German nationality instead of the English



would have secured an advance in commerce and manufacture over all



other countries。



    It would be most unjust; even on cosmopolitical grounds; now to



resign to the English all the wealth and power of the earth; merely



because by them the political system of commerce was first



established and the cosmopolitical principle for the most part



ignored。 In order to allow freedom of trade to operate naturally;



the less advanced nations must first be raised by artificial



measures to that stage of cultivation to which the English nation



has been artificially elevated。 In order that; through that



cosmopolitical tendency of the powers of production to which we



have alluded; the more distant parts of the world may not be



benefited and enriched before the neighbouring European countries;



those nations which feel themselves to be capable; owing to their



moral; intellectual; social; and political circumstances; of



developing a manufacturing power of their own must adopt the system



of protection as the most effectual means for this purpose。 The



effects of this system for the purpose in view are of two kinds: in



the first place; by gradually excluding foreign manufactured



articles from our markets; a surplus would be occasioned in foreign



nations; of workmen; talents; and capital; which must seek



employment abroad; and secondly by the premium which our system of



protection would offer to the immigration into our country of



workmen; talents; and capital; that excess of productive power



would be induced to find employment with us; instead of emigrating



to distant parts of the world and to colonies。 Political science



refers to history; and inquires whether England has not in former



times drawn from Germany; Italy; Holland; France; Spain; and



Portugal by these means a mass of proDuctive power。 She asks: Why



does the cosmopolitical school; when it pretends to weigh in the



balance the advantages and the disadvantages of the system of



protection; utterly ignore this great and remarkable instance of



the results of that system?







NOTES:







1。 It is alleged that Adam Smith intended to have dedicated his



great work to Quesnay。  TR。 (See Life of Smith; published by T。



and J。 Allman。 1825。)







2。 The Christian religion inculcates perpetual peace。 But until the



promise; 'There shall be one fold and one shepherd;' has been



fulfilled; the principle of the Quakers; however true it be in



itself; can scarcely be acted upon。 There is no better proof for



the Divine origin of the Christian religion than that its doctrines



and promises are in perfect agreement with the demands of both the



material and spiritual well…being of the human race。







3。 This statement was probably accurate up to the period when List



wrote; but a notable exception to it may now be adduced。 The



commercial union of the various German states under the Zollverein



preceded by many years their political union under the Empire; and



powerfully promoted it。  TR。







Chapter 12







The Theory of the Powers of Production and the Theory of Values







    Adam Smith's celebrated work is entitled; 'The Nature and



Causes of the Wealth of Nations。' The founder of the prevailing



economical school has therein indicated the double point of view



from which the economy of nations; like that of private separate



individuals; should be regarded。



    The causes of wealth are something totally different from



wealth itself。 A person may possess wealth; i。e。 exchangeable



value; if; however; he does not possess the power of producing



objects of more value than he consumes; he will become poorer。 A



person may be poor; if he; however; possesses the power of



producing a larger amount of valuable articles than he consumes; he



becomes rich。



    The power of producing wealth is therefore infinitely more



important than wealth itself; it insures not only the possession



and the increase of what has been gained; but also the replacement



of what has been lost。 This is still more the case with entire



nations (who cannot live out of mere rentals) than with private



individuals。 Germany has been devastated in every century by



pestilence; by famine; or by civil or foreign wars; she has;



nevertheless; always retained a great portion of her powers of



production; and has thus quickly re…attained some degree of



prosperity; while rich and mighty but despot… and priest…ridden



Spain; notwithstanding her comparative enjoyment of internal



peace;(1*) has sunk deeper into poverty and misery。 The same sun



still shines on the Spaniards; they still possess the same area of



territory; their mines are still as rich; they are still the same



people as before the discovery of America; and before the



introduction of the Inquisition; but that nation has gradually lost



her powers of production; and has therefore become poor and



miserable。 The War of Independence of the United States of America



cost that nation hundreds of millions; but her powers of production



were immeasurably strengthened by gaining independence; and it was



for this reason that in the course of a few years after the peace



she obtained immeasurably greater riches than she。had ever



possessed before。 If we compare the state of France in the year



1809 with that of the year 1839; what a difference in favour of the



latter! Nevertheless; France has in the interim lost her



sovereignty over a large portion of the European continent; she has



suffered two devastating invasions; and had to pay milliards of



money in war contributions and indemnities。



    It was impossible that so clear an intellect as Adam Smith



possessed could altogether ignore the difference between weal
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