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Show 57 SUl\oll\IARY. PAGE The saving fron1 revenue to add to capital mqy increase pro .. d·uce faster than the demand for it . • 352 It has been thought by so1ne able writers that a glut of conl- 1nodities cannot be general; but this doctrine seen1s to be unfounded . · 353 As a n1atter of fact, it is not true that commodities arc al- 1vays exchanged for commodities. The great mass of commodities is exchanged for labour, anJ may fall in value compared with such labour . . . . . . . ib. A general fall in the value of commodities con1pared with labour, so as to lower profits almost to nothing, is pre-cisely what is n1eant by a general glut . . 354 l\1. Say, Mr. Mill, and l\1r. llicardo appear to have fallen into orne fundamental errors in the vie·w they have taken of this subject 1st. They have considered con1n1oditie in relation only to each other, and not in rela#on to the 'vants of the con-ib. sumers · 3J"' Jr: If con1modities were only to be con1parecl 'vith commodities, their doctrine would be true ; but compared with the \Vants of the consumers, they may fall so as to check both the power and will to accumulate . . . . . . . . . ib. Effectual demand is not merely the offering of one cmnmodtty for another : they may both command no n1orc labour than they have cost, in which case there would be no ef-fectual demand for either of then1 ib. A new comn1odity thrown into the market, which yields high profits, is very different frmn a 1nere increase of quantity, and will certainly increase den1and; because it implies a better adaptation of the produce to the wants of the so-ciety . 356 Mr. Ricardo acknowledges that there may be a temporary glu.t of cornmo~ities -when capital increases faster than labour; but this is allo,ving that capital may be often re-cl und an t . • . . . . . . . . ib. Another error on this subject is, the not considering the influence of so important a principle in human nature as "S indolence, or the love of case . . . . , • . · · 3D It has been supposed that if a body of f~1·mqrs and a body of SUM.MAR • '>il manufacturers produced eaclt luxuries as well as necessaries, PAGE t~er~ n?ver ~ould be any difficulty as to a market fm· them 35 s But this Is talung for granted that luxuries are prcfened t indolence, and that tbe profits of each party are consume~ as revenue-the very points in dispute . . . . . . ib. A preference of indolence to luxuries, in either of the parties, would immediately occasion a want of demand ; and his-tory infonns us, that such a taste for luxuries as will properly stimulate industry is a plant of slow growth . . . 35!} The third, and most important error, consists in supposing that accumulation ensures effectual demand . . . . . ib. Mr. Ricardo considers lO,OOOl. spent or saved, as equally de-mand, though for different objects ib. On this principle it is thought that a general saving in conveniences and luxuries would only lead to the production of a greater quantity of necessaries; but this could not happen without a total change in the rrwtives to accumula-tion . . 360 ~I'he definition of fertile land is land which will support a much greater number of persons than are necessary to cultivate it; and if the lanJlord ·were to save this surplus, that is, employ it in setting more labourers to work on the land, he would impoverish instead of enrich hin1sclf 361 When the cultivators found that they could not realize their surplus, they would cease to employ the san1c quantity of labour on the land ; and such parsin1onious habits, }?y destroying the motive to cultivate well, would render a country, which had been rich and populous, compara-tively poor and unpeopled . ib. In the case of the body of farmers and manufacturers before supposed, all would go on well while they mutually consumed each other's products and luxuries; but if they began to save for the future, a want of demand would be immediately felt . 3 63 If the cultivator were a tenant, the additional care and labour bestowed upon the land would be entirely thrown away ; if he were a landlord, he could not cultivate his land to the greatest advantage with tegard to the future, without , altering his habits or throwing away the surplus . 364 |