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    The essential character of the natural law from which the



popular school explains such important phenomena in social economy;



is evidently not merely a division of labour; but a division of



different commercial operations between several individuals; and at



the same time a confederation or union of various energies;



intelligences; and powers on behalf of a common production。 The



cause of the productiveness of these operations is not merely that



division; but essentially this union。 Adam Smith well perceives



this himself when he states; 'The necessaries of life of the lowest



members of society are a product of joint labour and of the



co…operation of a number of individuals。'(1*) What a pity that he



did not follow out this idea (which he so clearly expresses) of



united labour。



    If we continue to consider the example of the pin manufacture



adduced by Adam Smith in illustration of the advantages of division



of labour; and seek for the causes of the phenomenon that ten



persons united in that manufacture can produce an infinitely larger



number of pins than if every one carried on the entire pin



manufacture separately; we find that the division of commercial



operations without combination of the productive powers towards one



common object could but little further this production。



    In order to create such a result; the different individuals



must co…operate bodily as well as mentally; and work together。 The



one who makes the heads of the pins must be certain of the co



operation of the one who makes the points if he does not want to



run the risk of producing pin heads in vain。 The labour operations



of all must be in the proper proportion to one another; the workmen



must live as near to one another as possible; and their



co…operation must be insured。 Let us suppose e。g。 that every one of



these ten workmen lives in a different country; how often might



their co…operation be interrupted by wars; interruptions of



transport; commercial crises; &c。; how greatly would the cost of



the product be increased; and consequently the advantage of the



division of operation diminished; and would not the separation or



secession of a single person from the union; throw all the others



out of work?



    The popular school; because it has regarded the division of



operation alone as the essence of this natural law; has committed



the error of applying it merely to the separate manufactory or



farm; it has not perceived that the same law extends its action



especially over the whole manufacturing and agricultural power;



over the whole economy of the nation。



    As the pin manufactory only prospers by the confederation of



the productive force of the individuals; so does every kind of



manufacture prosper only by the confederation of its productive



forces with those of all other kinds of manufacture。 For the



success of a machine manufactory; for instance; it is necessary



that the mines and metal works should furnish it with the necessary



materials; and that all the hundred different sorts of



manufactories which require machines; should buy their products



from it。 Without machine manufactories; a nation would in time of



war be exposed to the danger of losing the greater portion of its



manufacturing power。



    In like manner the entire manufacturing industry of a State in



connection with its agricultural interest; and the latter in



connection with the former; will prosper the more the nearer they



are placed to one another; and the less they are interrupted in



their mutual exchanges with one another。 The advantages of their



confederation under one and the same political Power in times of



war; of national differences; of commercial crises; failure of



crops; &c。; are not less perceptible than are the advantages of the



union of the persons belonging to a pin manufactory under one and



the same roof。



    Smith affirms that the division of labour is less applicable to



agriculture than to manufactures。(2*) Smith had in view only the



separate manufactory and the separate farm。 He has; however;



neglected to extend his principle over whole districts and



provinces。 Nowhere has the division of commercial operations and



the confederation of the productive powers greater influence than



where every district and every province is in a position to devote



itself exclusively; or at least chiefly; to those branches of



agricultural production for which they are mostly fitted by nature。



In one district corn and hops chiefly thrive; in another vines and



fruit; in a third timber production and cattle rearing; &c。 If



every district is devoted to all these branches of production; it



is clear that its labour and its land cannot be nearly so



productive as if every separate district were devoted mainly to



those branches of production for which it is specially adapted by



nature; and as if it exchanged the surplus of its own special



products for the surplus produce of those provinces which in the



production of other necessaries of life and raw materials possess



a natural advantage equally peculiar to themselves。 This division



of commercial operations; this confederation of the productive



forces occupied in agriculture; can only take place in a country



which has attained the greatest development of all branches of



manufacturing industry; for in such a country only can a great



demand for the greatest variety of products exist; or the demand



for the surplus of agricultural productions be so certain and



considerable that the producer can feel certain of disposing of any



quantity of his surplus produce during this or at least during next



year at suitable prices; in such a country only can considerable



capital be devoted to speculation in the produce of the country and



holding stocks of it; or great improvements in transport; such as



canals and railway systems; lines of steamers; improved roads; be



carried out profitably; and only by means of thoroughly good means



of transport can every district or province convey the surplus of



its peculiar products to all other provinces; even to the most



distant ones; and procure in return supplies of the peculiar



products of the latter。 Where everybody supplies himself with what



he requires; there is but little opportunity for exchange; and



therefore no need for costly facilities of transport。



    We may notice how the augmentation of the powers of production



in consequence of the separation of occupations and the



co…operation of the powers of individuals begins in the separate



manufactory and extends to the united nation。 The manufactory



prospers so much the more in proportion as the commercial



operations are divided; the more closely the workmen are united;



and the more the co…operation of each person is insured for the



whole。 The productive powers of every separate manufactory are also



increased in proportion as the whole manufacturing power of the



country is developed in all its branches; and the more intimately



it is united with all other branches of industry。 The agricultural



power of production is so much greater the more intimately a



manufacturing power developed in all its branches is united



locally; commercially; and politically with agriculture。 In



proportion as the manufacturing power is thus developed will the



division of the commercial operations and the co…operation of the



productive powers in agriculture also develop themselves and be



raised to the highest stage of perfection。 That nation will



therefore possess most productive power; and will consequently be



the richest; which has cultivated manufacturing industry in all



branches within its territory to the highest perfection; and whose



territory and agricultural production is large enough to supply its



manufacturing population with the largest part of the necessaries



of life and raw materials which they require。



    Let us now consider the opposite side of this argument。 A



nation which possesses merely agriculture; and merely the most



indispensable industries; is in want of the first and most



necessary division of commercial operations among its inhabitants;



and of the most important half of its productive powers; indeed it



is in want of a useful division of commercial operations even in



the separate branches of agriculture itself。 A nation thus



imperfect will not only be merely half as productive as a perfect



nation; but with an equal or even with a much larger territory;



with a

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