[Footnote 210-2: A very important principle for the understanding of the real effects of the spending of a state loan!] [Footnote 210-3: In this way _Voltaire_, Siècle de Louis XIV., ch. 30, excuses for instance the extravagant (?) buildings at Versailles; and in a very similar way Catharine II. expressed herself in speaking to the Prince de Ligne: Mémoires et Mélanges par le Prince de Ligne, 1827, II, 358. _v. Schröder_ even thinks that the Prince might consume as much and even more than "the entire capital" of the country amounted to; only, he would have him "let it get quickly among the people again." He is also in favor of the utmost splendor in dress, provided the public see to it that nothing was worn in the country which was not made in the country. (Fürstl. Schatz- u. Rentkammer, 47, 172.) Similarly even _Botero_, Della Ragion di Stato VII, 85; VIII, 191; and recently _v. Struensee_, Abhandlungen I, 190. The principle of Polycrates in _Herodotus_ is nearly to the same effect. Compare, per contra, _Ferguson_, Hist. of Civil Society, V, 5.] [Footnote 210-4: With the exception of the profit made by the manufacturers.] [Footnote 210-5: Strikingly ignored by _Sismondi_, N. P., IV, ch. II.] [Footnote 210-6: _Bastiat_, Sophismes économiques, 1847, ch. IV. Everything which, in the long run, either promotes or injures production, "steps over the producer and turns in the end to the gain or loss of the consumer." Only for this principle, inequality and dissensions among men would keep growing perpetually. All that the systems of Saint Simonism and communism contain that is relatively true is thus realized.] SECTION CCXI. NATURE AND KINDS OF CONSUMPTION.--PRODUCTIVE CONSUMPTION. There is no production possible without consumption. The embodiment of a special utility into any substance is a limitation of its general utility. Thus, for instance, when corn is baked into bread, it can no longer be used for the manufacture of brandy or of starch.[211-1] When, therefore, consumption is a condition (outlay) to production it is called productive (reproductive).[211-2] Here, indeed, the form of the consumed goods is destroyed, but the value of the goods lives on in the new product.