In practice, does a single exchange take place, out of a hundred, out
of a thousand, out of ten thousand perhaps, which represents the direct
barter of commodity for commodity? Never since the introduction of money
has any agriculturist said: I want to buy shoes, hats, advice, lessons;
but only from the shoemaker, the hat-maker, the lawyer, the professor,
who will purchase from me corn to an exactly equivalent value. And why
should nations bring each other under a yoke of this kind? Practically
how are such matters transacted?
Let us suppose a people shut out from external relations. A man, we
shall suppose, produces wheat. He sends it to the _home_ market,
and offers it for the highest price he can obtain. He receives in
exchange--what? Coins, which are just so many drafts or orders, varying
very much in amount, by means of which he can draw, in his turn, from
the national stores, when he judges it proper, and subject to due
competition, everything which he may want or desire. Ultimately, and
at the end of the operation, he will have drawn from the mass the
exact equivalent of what he has contributed to it, and, in value, _his
consumption will exactly equal his production_.
If the exchanges of the supposed nation with foreigners are left free,
it is no longer to the _national_, but to the _general_, market that
each sends his contributions, and, in turn, derives his supplies for
consumption. He has no need to care whether what he sends into the
market of the world is purchased by a fellow-countryman or by a
foreigner; whether the drafts or orders he receives come from a
Frenchman or an Englishman; whether the commodities for which he
afterwards exchanges these drafts or orders are produced on this or on
the other side of the Rhine or the Pyrenees. There is always in each
individual case an exact balance between what is contributed and what is
received, between what is poured into and what is drawn out of the great
common reservoir; and if this is true of each individual, it is true of
the nation at large.
The only difference between the two cases is, that in the last each has
to face a more extended market both as regards sales and purchases, and
has consequently more chances of transacting both advantageously.
This objection may perhaps be urged: If everybody enters into a
league not to take from the general mass the commodities of a certain
individual, that individual cannot, in his turn, obtain from the mass
what he is in want of. It is the same of nations.
The reply to this is, that if a nation cannot obtain what it has need
of in the general market, it will no longer contribute anything to
that market. It will work for itself. It will be forced in that case to
submit to what you want to impose on it beforehand--_isolation_.
And this will realize the ideal of the prohibitive _régime_.
Public-domain text, read in full here on John Shaqi.
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