Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 198-1: The sickle instead of the scythe; careful
threshing by hand, and, where the rate of interest is low,
threshing by machinery instead of the treading out of the
sheaf by oxen. Thus in Paris the scraps from restaurants and
soap factories are made into stearin; and the remnants in
shawl factories in Vienna are sent to Belgium to be used by
cloth manufacturers.]
[Footnote 198-2: Remarked in ancient times of Tyre, which
was situated on a small island, and, therefore, without the
possibility of horizontal extension. (_Strabo_, XVI, 757.)]
[Footnote 198-3: _Humboldt_, N. Espagne II, ch. 5, II, ch.
11.]
[Footnote 198-4: Thus, in England, the safety of railroad
trains is not secured as in Germany by a multitude of
watchmen, etc.; but by solid barriers, by bridges at every
crossing, in other words, by capital.]
SECTION CXCIX.
INFLUENCE OF FOREIGN TRADE.
Foreign trade, that great means of coöperation of labor among different
nations, affords such a remedy in a very special manner. It very
frequently happens that the undertakers of one country, when a certain
factor of production seems too dear at home, borrow it elsewhere. Thus,
for instance, a country with a high rate of wages draws on another for
labor, and one with a high rate of interest on another for
capital.[199-1] We elsewhere consider such a course of things from the
standpoint of the supplying country, which in this way is healed of a
heavy plethora of some single factor of production which disturbs the
harmony of the whole. (§§ 187, 259, ff.). But, at the same time, the
supplied country, considered from a purely economic point of view, reaps
decided advantages therefrom. If, for instance, a Swiss confectioner
returns from Saint Petersburgh to his home, after having made a fortune
in an honest way, no one can say that Russia has grown poorer by the
amount of that fortune. This man made his own capital; if he were to
remain in Russia, its national economy would be richer than before his
immigration thither. Now, it is, at least, no poorer, and has in the
meantime had the advantage of the more skilled labor of the
foreigner.[199-2] And, so, when a capitalist living in Germany purchases
Hungarian land, the national income of Hungary is diminished by the
amount of the annual rent which now goes to Germany; but it receives an
equal amount in the interest on capital, provided the purchase was an
honorable one and the capital given in exchange for the land honestly
invested.[199-3] If Hungary, in general, had a superabundance of land
but a lack of capital, the economic advantage is undoubted.[199-4]
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