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Show 444 · ON TilE IlVLMEDJA'l'E CAUSES [cH. Vll . labour than the production of then1 has cost, it is as evident that the national wealth \Vill proceed very slowly, or perhaps be quite stationary. In the distribution of comrnodities, the circulating n1edium of every country bears a n1ost in1- portant part; and, as I intin1ated before in a note, we are n1uch more likely to obscure our reasonings than to render then1 clearer, by throwing it out of our consideration. It is not easy indeed, w·ithout reference to a circulating 111ediun1, to ascertain \Vl1cther the con1n1odities of a country are so distributed as to give them their proper value. It n1ay be said, perhaps, that if the fu nds for the 1naintenance of labour are at any ti1ne in unusual abundance, it n1ay fairly be presumed that they 'viii be able to conn11and a more than usual quantity of labour. But they certainly \Vill not be able to con1mand n1ore labour, nor even so tnuch, if tbc distribution of thern be defective; and in a country 'vhich has a circulating n1edium, the specific proof of the distribution being defective is, that the vvholc produce does not exchange for so large an amount of circulating n1ediun1 as before, and that consequently the producers have been obliged to sell at a great din1inution of n1oney profits, or a positive n1oney loss. Fron1 the harvest of 1815 to the harvest of 1816, there cannot be a doubt that the funds for the n1aintenance of labour in this country \Vere unusually abundant. Corn vvas particularly plent!fu.l, and no other necessaries \Vere deficient; yet It JS all acknowled<re<.l fact that oTeat nn1nbers were b ' b SEC. VIII.] OF THE PROGRESS OF WEALTH. 445 ' thrown out of employment, partly from the want of power, and partly frotn the \Vant of will to employ the same quantity of labour as before. How is this fact to be accounted for? As I have said before, it V\rould not be easy to account for it 'vithout referring to a circulating medium; because, without such reference, the proof of a defective distribution would be extremely difficult. But the moment we refer to a circulating medium, the theory of the fact 6 bserved becon1es perfectly clear. It is acknowledged that there was a fall in the n1oney value of the raw produce, to the amount of nearly one third. But if the farmer sold his produce for only t\vo thirds of the price at \vhich he had before sold it, it is evident that he would b~ quite unalJle to command the same quantity of labour, and to employ the s·ame quantity of capital on his fann as he did the year before. And vvhen after' varcls a .great fall of tnoney price took place in all manufactured prod nets, occasiqned in a considerable degree by this previous fall of raw· produce, it is as evident that the n1anufacturers \Vould be unable to con1n1and the labour of the sa1ne nun1bcr of worktnen as before. In the n1idst of th,e plenty of necessaries, these t\vo in1 port ant classes of society \vo.uld really have their po\ver of etnploying labour diminished, while all those who possessed fixed incon1es 'vould have their po\ver of en1ploying labour increased, with very little chance of an increase of will to extend their de1nancl in proportion; and the o·eneral result \vould rcsetnble the 0 . effects of that partial distribution of prodnc.ts \Vhtch |