Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
The more highly developed the division of labor is, the more frequent and
necessary do exchanges become. While the hermit engaged in production
thinks only of his own wants, and the mere housekeeper of the wants of his
household, the man who is part of a nation and who plays a part in its
general economy, must bear in mind the MARKET in which goods of one kind
are exchanged against goods of other kinds. The greater, more various and
more changeable the conditions of this market are, the greater are the
intellectual faculties demanded to engage in it successfully, and to the
advantage of everybody concerned in it.(569) Goods intended to be
exchanged are called commodities. By the circulation of commodities is
meant their going over from one owner to another.(570) Among the principal
causes of circulation, we may mention the difference in the nature and
civilization of countries and peoples, the distinction between city and
country, the division of people into classes etc.(571) The rapidity of
circulation depends, on the one hand, on the quantity of commodities, and
on the other, on the degree to which the division of labor has been
carried. In both respects it is, therefore, an important indication of the
wealth of the nation, and of the world.
Different commodities have very different degrees of capacity for
circulation (_Circulationsfähigkeit_), that is, of certainty of finding
purchasers, and of facility of seeking purchasers. The smaller, compared
with its value, the volume and weight of a commodity are; the longer and
more conveniently it can be stored away; the more invariable and
well-known are its value in use and value in exchange: the more readily
does it go from one place to another, the more easily is it transmitted
from one period of time to another and from the possession of one person
into the possession of another. Thus, for instance, the precious metals
circulate more rapidly than industrial products; these in turn more than
raw material,(572) and immovable property circulates least rapidly of all.
An improvement in the means of transportation naturally increases the
capacity of circulation of the entire wealth of a people, and especially
of those commodities which were not before transferable as well as of
those of which the cost of transportation constituted a peculiarly large
component part of the price.(573) The greater the capacity for circulation
of any kind of goods, the greater is the power of control of its owner in
the world of trade. If we compare two men, each of whom possesses a
million of dollars, but one of whom has that million in money and the
other in land, we shall find that the former is able, for present
purposes, such as loaning to the state in case of need, aiding a
conspiracy etc., to command resources much more readily and effectively
than the latter. Under the ordinary circumstances of a nation’s economy,
we find that the owner of money is very seldom in want of bread, fuel or
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