in this attempt, he must endeavour to contrive improvements in his own machinery, or to acquire information respecting those which have been made in the factories of the richer country. Perhaps after an ineffectual attempt to obtain by letters the information he requires, he sets out to visit in person the factories of his competitors. To a foreigner and rival manufacturer such establishments are not easily accessible, and the more recent the improvements, the less likely he will be to gain access to them. His next step, therefore, will be to obtain the knowledge he is in search of from the workmen employed in using or making the machines. Without drawings, or an examination of the machines themselves, this process will be slow and tedious; and he will be liable, after all, to be deceived by artful and designing workmen, and be exposed to many chances of failure. But suppose he returns to his own country with perfect drawings and instructions, he must then begin to construct his improved machines: and these he cannot execute either so cheaply or so well as his rivals in the richer countries. But after the lapse of some time, we shall suppose the machines thus laboriously improved, to be at last completed, and in working order. 440. Let us now consider what will have occurred to the manufacturer in the rich country. He will, in the first instance, have realized a profit by supplying the home market, at the usual price, with an article which it costs him less to produce; he will then reduce the price both in the home and foreign market, in order to produce a more extended sale. It is in this stage that the manufacturer in the poor country first feels the effect of the competition; and if we suppose only two or three years to elapse between the first application of the new improvement in the rich country, and the commencement of its employment in the poor country, yet will the manufacturer who contrived the improvement (even supposing that during the whole of this time he has made only one step) have realized so large a portion of the outlay which it required, that he can afford to make a much greater reduction in the price of his produce, and thus to render the gains of his rivals quite inferior to his own. 441. It is contended that by admitting the exportation of machinery, foreign manufacturers will be supplied with machines equal to our own. The first answer which presents itself to this argument is supplied by almost the whole of the present volume; That in order to succeed in a manufacture, it is necessary not merely to possess good machinery, but that the domestic economy of the factory should be most carefully regulated. The truth, as well as the importance of this principle, is so well established in the Report of a Committee of the House of Commons 'On the Export of Tools and Machinery', that I shall avail myself of the opinions and evidence there stated, before I offer any observations of my own: