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The trade, domestic and foreign

H >> Henry Charles Carey >> The trade, domestic and foreign




The course of events here described is in strict accordance with the
facts observed in every country as it has grown in wealth and
population. The early settlers of all the countries of the world are
seen to have been slaves to their necessities--and often slaves to
their neighbours; whereas, with the increase of numbers and the
increased power of cultivation, they are seen passing from the poorer
soils of the hills to the fertile soils of the river bottoms and the
marshes, with constant increase in the return to labour, and
constantly increasing power to determine for themselves for whom they
will work, and what shall be their reward. This view is, however, in
direct opposition to the theory of the occupation of land taught in
the politico-economical school of which Malthus and Ricardo were the
founders. By them we are assured that the settler commences always on
the low and rich lands, and that, as population increases, men are
required to pass toward the higher and poorer lands--and of course up
the hill--with constantly diminishing return to labour, and thus that,
as population grows, man becomes more and more a slave to his
necessities, and to those who have power to administer to his wants,
involving a necessity for dispersion throughout the world in quest of
the rich lands upon which the early settler is supposed to commence
his operations. It is in reference to this theory that Mr. J. S. Mill
says--

"This general law of agricultural industry is the most important
proposition in political economy. If the law were different, almost
all the phenomena of the production and distribution of wealth would
be other than they are."

In the view thus presented by Mr. Mill there is no exaggeration. The
law of the occupation of the land by man lies at the foundation of all
political economy; and if we desire to know what it is that tends to
the emancipation of the people of the earth from slavery, we must
first satisfy ourselves that the theory of Messrs. Malthus and Ricardo
has not only no foundation in fact, but that the law is directly the
reverse, and tends, therefore, toward the adoption of measures
directly opposed to those that would he needed were that theory true.
The great importance of the question will excuse the occupation of a
few minutes of the reader's attention in placing before him some facts
tending to enable him to satisfy himself in regard to the universality
of the law now offered for his consideration. Let him inquire where he
may, he will find that the early occupant _did not_ commence in the
flats, or on the heavily timbered-land, but that he _did_ commence on
the higher land, where the timber was lighter, and the place for his
house was dry. With increasing ability, he is found draining the
swamps, clearing the heavy timber, turning up the marl, or burning the
lime, and thus acquiring control over more fertile soils, yielding a
constant increase in the return to labour. Let him then trace the
course of early settlement, and he will find that while it has often
followed the course of the streams, it has always avoided the swamps
and river bottoms. The earliest settlements of this country were on
the poorest lands of the Union--those of New England. So was it in New
York, where we find the railroads running through the lower and
richer, and yet uncultivated, lands, while the higher lands right and
left have long been cultivated. So is it now in Pennsylvania,
Virginia, and Ohio. In South Carolina it has been made the subject of
remark, in a recent discourse, that their predecessors did not select
the rich lands, and that millions of acres of the finest meadow-land
in that State still remain untouched. The settler in the prairies
commences on the higher and drier land, leaving the wet prairie and
the _slough_--the richest soil--for his successors. The lands below
the mouth of the Ohio are among the richest in the world; yet they are
unoccupied, and will continue so to be until wealth and population
shall have greatly increased. So is it now with the low and rich lands
of Mexico. So was it in South America, the early cultivation of which
was upon the poor lands of the western slope, Peru and Chili, while
the rich lands of the Amazon and the La Plata remained, as most of
them still remain, a wilderness. In the West Indies, the small dry
islands were early occupied, while Porto Rico and Trinidad, abounding
in rich soils, remained untouched. The early occupants of England were
found on the poorer lands of the centre and south of the kingdom, as
were those of Scotland in the Highlands, or on the little rocky
islands of the Channel. Mona's Isle was celebrated while the rich soil
of the Lothians remained an almost unbroken mass of forest, and the
morasses of Lancashire were the terror of travellers long after
Hampshire had been cleared and cultivated. If the reader desire to
find the birthplace of King Arthur and the earliest seat of English
power, he must look to the vicinity of the royal castle of Tintagel,
in the high and dry Cornwall. Should he desire other evidence of the
character of the soil cultivated at the period when land abounded and
men were few in number, he may find it in the fact that in some parts
of England there is scarcely a hill top that does not bear evidence of
early occupation,[22] and in the further fact that the mounds, or
barrows, are almost uniformly composed of stone, because those
memorials "are found most frequently where stone was more readily
obtained than earth."[23] Caesar found the Gauls occupying the high
lands surrounding the Alps, while the rich Venetia remained a marsh.
The occupation of the Campagna followed long after that of the Samnite
hills, and the earliest settlers of the Peloponnesus cultivated the
high and dry Arcadia, while the cities of the Argive kings of the days
of Homer, Mycenae and Tiryns, are found in eastern Argolis, a country
so poor as to have been abandoned prior to the days of the earliest
authentic history. The occupation of the country around Meroë, and of
the Thebaid, long preceded that of the lower lands surrounding
Memphis, or the still lower and richer ones near Alexandria. The negro
is found in the higher portions of Africa, while the rich lands along
the river courses are uninhabited. The little islands of Australia,
poor and dry, are occupied by a race far surpassing in civilization
those of the neighbouring continent, who have rich soils at command.
The poor Persia is cultivated, while the rich soils of the ancient
Babylonia are only ridden over by straggling hordes of robbers.[24]
Layard had to seek the hills when he desired to find a people at home.
Affghanistan and Cashmere were early occupied, and thence were
supplied the people who moved toward the deltas of the Ganges and the
Indus, much of both of which still remains, after so many thousands of
years, in a state of wilderness. Look where we may, it is the same.
The land obeys the same great and universal law that governs light,
power, and heat. The man who works alone and has poor machinery must
cultivate poor land, and content himself with little light, little
power, and little heat, and those, like his food, obtained in exchange
for much labour; while he who works in combination with his fellow-men
may have good machinery, enabling him to clear and cultivate rich
land, giving him much food, and enabling him to obtain much light,
much heat, and much power, in exchange for little labour. The first is
_a creature of necessity_--a slave--and as such is man universally
regarded by Mr. Ricardo and his followers. The second is _a being of
power_--a freeman--and as such was man regarded by Adam Smith, who
taught that the more men worked in combination with each other, the
greater would be the facility of obtaining food and all other of the
necessaries and comforts of life--and the more widely they were
separated, the less would be the return to labour and capital, and the
smaller the power of production, as common sense teaches every man
must necessarily be the case.

It will now readily be seen how perfectly accurate was Mr. Mill in his
assertion that, "if the law were different, almost all the phenomena
of the production and distribution of wealth would be other than they
are." The doctrine of Malthus and Ricardo tends to make the labourer a
slave to the owner of landed or other capital; but happily it has no
foundation in fact, and therefore the natural laws of the production
and distribution of wealth tend not to slavery, but to freedom.




CHAPTER VI.

HOW WEALTH TENDS TO INCREASE.


The first poor cultivator commences, as we have seen, his operations
on the hillside. Below him are lands upon which have been carried by
force of water the richer portions of those above, as well as the
leaves of trees, and the fallen trees themselves, all of which have
from time immemorial rotted and become incorporated with the earth,
and thus have been produced soils fitted to yield the largest returns
to labour; yet for this reason are they inaccessible. Their character
exhibits itself in the enormous trees with which they are covered, and
in their power of retaining the water necessary to aid the process of
decomposition, but the poor settler wants the power either to clear
them of their timber, or to drain them of the superfluous moisture. He
begins on the hillside, but by degrees he obtains better machinery of
cultivation, and with each step in this direction we find him
descending the hill and obtaining larger return to labour. He has more
food for himself, and he has now the means of feeding a horse or an
ox. Aided by the manure that is thus yielded to him by the better
lands, we see him next retracing his steps, improving the hillside,
and compelling it to yield a return double that which he at first
obtained. With each step down the hill, he obtains still larger reward
for his labour, and at each he returns, with increased power, to the
cultivation of the original poor soil. He has now horses and oxen, and
while by their aid he extracts from the new soils the manure that had
accumulated for ages, he has also carts and wagons to carry it up the
hill; and at each step his reward is increased, while his labours are
lessened. He goes back to the sand and raises the marl, with which he
covers the surface; or he returns to the clay and sinks into the
limestone, by aid of which he doubles its product. He is all the time
making a machine which feeds him while he makes it, and which
increases in its powers the more he takes from it. At first it was
worthless. Having now fed and clothed him for years, it has acquired a
large value, and those who might desire to use it would pay him a
large rent for permission so to do.

The earth is a great machine given to man to be fashioned to his
purpose. The more he works it, the better it feeds him, because each
step is but preparatory to a new one more productive than the
last--requiring less labour and yielding larger return. The labour of
clearing is great, yet the return is small. The earth is covered with
stumps, and filled with roots. With each year the roots decay, and the
ground becomes enriched, while the labour of ploughing is diminished.
At length, the stumps disappear, and the return is doubled, while the
labour is less by one-half than at first. To forward this process the
owner has done nothing but crop the ground, nature having done the
rest. The aid he thus obtains from her yields him as much food as in
the outset was obtained by the labour of felling the trees. This,
however, is not all. The surplus thus yielded has given him means of
improving the poorer lands, by furnishing manure with which to enrich
them, and thus has he trebled his original return without further
labour; for that which he saves in working the new soils suffices to
carry the manure to the older ones. He is obtaining a daily increased
power over the various treasures of the earth.

With every operation connected with the fashioning of the earth, the
result is the same. The first step is, invariably, the most costly
one, and the least productive. The first drain commences near the
stream, where the labour is heaviest. It frees from water but a few
acres. A little higher, the same quantity of labour, profiting by what
has been already done, frees twice the number. Again the number is
doubled; and now the most perfect system of thorough drainage may be
established with less labour than was at first required for one of the
most imperfect kind. To bring the lime into connection with the clay,
upon fifty acres, is lighter labour than was the clearing of a single
one, yet the process doubles the return for each acre of fifty. The
man who needs a little fuel for his own use, expends much labour in
opening the neighbouring vein of coal; but to enlarge this, so as to
double the product, is a work of comparatively small labour. To sink a
shaft to the first vein below the surface, and erect a steam-engine,
are expensive operations; but these once accomplished, every future
step becomes more productive, while less costly. To sink to the next
vein below, and to tunnel to another, are trifles in comparison with
the first, yet each furnishes a return equally large. The first line
of railroad runs by houses and towns occupied by two or three hundred
thousand persons. Half a dozen little branches, costing together far
less labour than the first, bring into connection with it half a
million, or perhaps a million. The trade increases, and a second
track, a third, or a fourth, may be required. The original one
facilitates the passage of the materials and the removal of the
obstructions, and three new ones may now be made with less labour than
was at first required for a single one.

All labour thus expended in fashioning the great machine is but the
prelude to the application of further labour, with still increased
returns. With each such application, wages rise, and hence it is that
portions of the machine, as it exists, invariably exchange, when
brought to market, for far less labour than they have cost. There is
thus a steady decline of the value of capital in labour, and a daily
increase in the power of labour over capital, and with each step in
this direction man becomes more free. The man who cultivated the thin
soils was happy to obtain a hundred bushels for his year's work. With
the progress of himself and his neighbour down the hill into the more
fertile soils, wages have risen, and two hundred bushels are now
required. His farm will yield a thousand bushels; but it requires the
labour of four men, who must have two hundred bushels each, and the
surplus is but two hundred bushels. At twenty years' purchase this
gives a capital of four thousand bushels, or the equivalent of twenty
years' wages; whereas it has cost, in the labour of himself, his sons,
and his assistants, the equivalent of a hundred years of labour, or
perhaps far more. During all this time, however, it has fed and
clothed them all, and the farm has been produced by the insensible
contributions made from year to year, unthought of and unfelt.

It has become worth twenty years' wages, because its owner has for
years taken from it a thousand bushels annually; but when it had lain
for centuries accumulating wealth it was worth nothing. Such is the
case with the earth everywhere. The more that is taken from it the
more there is to be returned, and the greater our power to draw upon
it. When the coal-mines of England were untouched, they were
valueless. Now their value is almost countless; yet the land contains
abundant supplies for thousands of years. Iron ore, a century since,
was a drug, and leases were granted at almost nominal rents. Now, such
leases are deemed equivalent to the possession of large fortunes,
notwithstanding the great quantities that have been removed, although
the amount of ore now known to exist is probably fifty times greater
than it was then.

_The earth is the sole producer._ From her man receives the corn and
the cotton-wool, and all that he can do is to change them in their
form, or in their place. The first he may convert into bread, and the
last into cloth, and both maybe transported to distant places, but
there his power ends. He can make no addition to their quantity. A
part of his labour is applied to the preparation and improvement of
the great machine of production, and this produces changes that are
permanent. The drain, once cut, remains a drain; and the limestone,
once reduced to lime, never again becomes limestone. It passes into
the food of man and animals, and ever after takes its part in the same
round with the clay with which it has been incorporated. The iron
rusts and gradually passes into soil, to take its part with the clay
and the lime. That portion of his labour gives him wages while
preparing the machine for greater future production. That other
portion which he expends on fashioning and exchanging _the products_
of the machine, produces temporary results and gives him wages alone.
Whatever tends to diminish the quantity of labour required for the
production of food tends to enable him to give more to the preparation
of machinery required for the fashioning and exchanging of the
products; and that machinery in its turn tends to augment the quantity
that may be given to increasing the amount of products, and to
preparing the great machine; and thus, while increasing the present
return to labour, preparing for a future further increase.

The first poor cultivator obtains a hundred bushels for his year's
wages. To pound this between two stones requires many days of labour,
and the work is not half done. Had he a mill in the neighbourhood he
would have better flour, and he would have almost the whole of those
days to bestow upon his land. He pulls up his grain. Had he a scythe,
he would have more time for the preparation of the machine of
production. He loses his axe, and it requires days of himself and his
horse on the road, to obtain another. His machine loses the time and
the manure, both of which would have been saved had the axe-maker been
at hand. The real advantage derived from the mill and the scythe, and
from the proximity of the axe-maker, consists simply in the power
which they afford him to devote his labour more and more to the
preparation of the great machine of production, and such is the case
with all the machinery of conversion and exchange. The plough enables
him to do as much in one day as with a spade he could do in five. He
saves four days for drainage. The steam-engine drains as much as,
without it, could be drained by thousands of days of labour. He has
more leisure to marl or lime his land. The more he can extract from
his property the greater is its value, because every thing he takes
is, by the very act of taking it, fashioned to aid further production.
The machine, therefore, improves by use, whereas spades, and ploughs,
and steam-engines, and all other of the instruments used by man, are
but the various forms into which he fashions parts of the great
original machine, to disappear in the act of being used; as much so as
food, though not so rapidly. The earth is the great labour-savings'
bank, and the value to man of all other machines is in the direct
ratio of their tendency to aid him in increasing his deposites in that
only bank whose dividends are perpetually increasing, while its
capital is perpetually doubling. That it may continue for ever so to
do, all that it asks is that it shall receive back the refuse of its
produce, the manure; and that it may do so, the consumer and the
producer must take their places by each other. That done, every change
that is effected becomes permanent, and tends to facilitate other and
greater changes. The whole business of the farmer consists in making
and improving soils, and the earth rewards him for his kindness by
giving him more and more food the more attention he bestows upon her.
All that he receives from her must be regarded as a loan, and when he
fails to pay his debts, she starves him out.

The absolute necessity for returning to the land the manure yielded by
its products is so generally admitted that it would appear scarcely
necessary to do more than state the fact; for every land-owner knows
that when he grants the lease of a farm, one of the conditions he
desires to insert is, that all the hay that is made shall be fed upon
the land, and that manure shall be purchased to supply the waste
resulting from the sale of corn or flax from off the land. In order,
however, that it may be so supplied, it is indispensable that the
place of consumption shall not be far distant from the place of
production, as otherwise the cost of transportation will be greater
than the value of the manure. In a recent work on the agriculture of
Mecklenburgh, it is stated that a quantity of grain that would be
worth close to market fifteen hundred dollars would be worth nothing
at a distance of fifty German, or about two hundred English miles,
from it, as the whole value would be absorbed in the cost of
transporting the grain to market and the manure from market--and that
the manure which close to the town would be worth five dollars to the
farmer, would be worth nothing at a distance of 4-3/4 German, or 19
English miles from it--and that thus the whole question of the value
of land and the wealth of its owner was dependent upon its distance
from the place at which its products could be exchanged. At a greater
distance than 28 German, or 112 English miles, in Mecklenburgh, the
land ceases to yield rent, because it cannot be cultivated without
loss. As we approach the place of exchange the value of land
increases, from the simultaneous action of two causes: First, a
greater variety of commodities can be cultivated, and the advantage
resulting from a rotation of crops is well known. At a distance, the
farmer can raise only those of which the earth yields but little, and
which are valuable in proportion to their little bulk--as, for
instance, wheat or cotton; but near the place of exchange he may raise
potatoes, turnips, cabbages, and hay, of which the bulk is great in
proportion to the value. Second, the cost of returning the manure to
the land increases as the value of the products of land diminishes
with the increase of distance; and from the combination of these two
causes, land in Mecklenburgh that would be worth, if close to the town
or city, an annual rent of 29,808 dollars, would be worth at a
distance of but 4 German, or 16 English, miles, only 7,467 dollars.

We see thus, how great is the tendency to the growth of wealth as men
are enabled more and more to combine their exertions with those of
their fellow-men, consuming on or near the land the products of the
land, and enabling the farmer, not only to repair readily the
exhaustion caused by each successive crop, but also to call to his aid
the services of the chemist in the preparation of artificial manures,
as well as to call into activity the mineral ones by which he is
almost everywhere surrounded. We see, too, how much it must be opposed
to the interests of every community to have its products exported in
their rude state, and thus to have its land exhausted. The same author
from whom the above quotations have been made informs us that when the
manure is not returned to the land the yield must diminish from year
to year, until at length it will not be more than one-fourth of what
it had originally been: and this is in accordance with all
observation.

The natural tendency of the loom and the anvil to seek to take their
place by the side of the plough and harrow, is thus exhibited by ADAM
SMITH:--

"An inland country, naturally fertile and easily cultivated, produces
a great surplus of provisions beyond what is necessary for
maintaining the cultivators; and on account of the expense of land
carriage, and inconveniency of river navigation, it may frequently be
difficult to send this surplus abroad. Abundance, therefore, renders
provisions cheap, and encourages a great number of workmen to settle
in the neighbourhood, who find that their industry can there procure
them more of the necessaries and conveniences of life than in other
places. They work up the materials of manufacture which the land
produces, and exchange their finished work, or, what is the same
thing, the price of it, for more materials and provisions. _They give
a new value to the surplus part of the rude produce, by saving the
expense of carrying it to the waterside, or to some distant market_;
and they furnish the cultivators with something in exchange for it,
that is either useful or agreeable to them, upon easier terms than
they could have obtained it before. _The cultivators get a better
price for their surplus produce, and can purchase cheaper other
conveniences which they have occasion for._ They are thus both
encouraged and enabled to increase this surplus produce by a further
improvement and better cultivation of the land; and _as the fertility
of the land has given birth to the manufacture, so the progress of
the manufacture reacts upon the land, and increases still further its
fertility_. The manufacturers first supply the neighbourhood, and
afterward, as their work improves and refines, more distant markets.
_For though neither the rude produce, nor even the coarse
manufacture, could, without the greatest difficulty, support the
expense of a considerable land carriage, the refined and improved
manufacture easily may._ In a small bulk it frequently contains the
price of a great quantity of the raw produce. A piece of fine cloth,
for example, which weighs, only eighty pounds, contains in it the
price, not only of eighty pounds of wool, but sometimes of several
thousand weight of corn, the maintenance of the different working
people, and of their immediate employers. _The corn which could with
difficulty have been carried abroad in its own shape, is in this
manner virtually exported in that of the complete manufacture, and
may easily be sent to the remotest corners of the world._"

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