Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
SECTION CC.
INFLUENCE OF THE BRANCHES OF INCOME ON THE PRICE OF COMMODITIES.
In relation to foreign trade, in the narrowest sense of the term, fears
were formerly very frequently expressed and are sometimes even now,
which in the last analysis are based on the assumption that one country
might be underbid by another in all branches of commodities.[200-1] This
is evidently absurd. Whoever wants to pay for foreign commodities can do
it only in goods of his own. When he pays for them with money, the money
is either the immediate product of his own husbandry (mining
countries!), or the mediate product obtained by the previous surrender
of products of his own. To receive from foreign countries all the
objects which one has need of, would be to receive them as a gift.
It is just as absurd to fear that the three branches of income in the
same country's economy should be all relatively high at the same time,
and competition with foreign countries be thus made more difficult. Rent
and interest especially in this respect have to demean themselves in
ways diametrically opposed to each other.[200-2] When trade is entirely
free, every nation will engage at last in those branches of production
which require chiefly the productive forces which are cheapest in that
country; that is which the relatively low level of the corresponding
branch of income recommends to individual economy and enterprise. The
merely absolute and personal height of the three branches of income has,
as we have said, no direct influence on the price of commodities. In
this respect, all these may be higher in one country than in another.
Thus, for instance, English landowners, capitalists and workmen may be
all at the same time in a better economic condition respectively than
Polish landowners, capitalists and workmen, when the national income of
England stands to its area and population in general, in a much more
favorable ratio than the Polish.[200-3]
[Footnote 200-1: Thus, _Forbonnais_, Eléments du Commerce I,
73. _J. Moser_, Patr. Ph., I, No. 2.]
[Footnote 200-2: For a thorough refutation of the error that
everything is dearer in England than in France, see Journ.
des Econ., Mai, 1854, 295 seq. A distinguished architect
assured me in 1858, that a person in London could build
about as much for £1 as for from 6 to 7 thalers in Berlin;
only the aggregate expense in both countries is made up of
elements very different in their relative proportions.]
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