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Show 590 SUMMARY. PAGE prevailed in a greater degree than at present, we n1ust look elsewhere for the immediate sources of the existing dis-tress . . 496 A country surrounded by an impas able 'vall n1ight experience imilar distre from a udden diminution of demand and consumption, although there ·were no poor land, no taxes, nor any restrictions on trade . . 497 The state of Europe and America since the war is inexplicable upon the principles of those who think that the power of production is the only element of wealth 498 The transition from war to peace, as u ually explained, will not account for so long a period of stagnation as ha taken place since the w·ar : but it may be accounted for, by supposing that the whole consumption compared with the supply has diminished ib. This diminished consumptiom must have operated very differently in different countries. Some it must have relieved, others it has distressed. Those which suffered the least by the war have suffered the most by the peace . 5 00 The distress which has attended the peace is an unfortunate association; but it should be recollected that it has arisen from peculiar circumstances, which in the same degree are not necessarily connected with the termination ofa war . 501 On account of the evils likely to be felt from a sudden diminution of consumption, the policy which has often been recommended of raising ~he supplies for a war within each year may fairly be doubted . . 502 Although it is necessary to save, in order to recover the capi-tal which the country has lost; yet if profits are low and uncertain, saving is not the first step wanted . . 503 What the country wants is an increased national revenue, or an increase of the exchangeable value of the whole pro·· duce. When this has been attained we may save with effect . 505 The question, how this increase of revenue is to be attained, has been attempted to be answered in the latter sections of this chapter . . ib. An increased revenue ls not so easily attained as an increased proportion of capital to revenue . . 506 SUMMARY. !)91 St~~:e~ ~: ~~!t:i~: c:1~:0~1!: .. !~ncdiatc object to be PA E A greater freedom might b . ' we may not retard it 506 d. . . . e giVen to commerce w'tb Iminishing the revenue of tl I out fl. 1 c cu toms The . e ects of opening the trade with F. . penn anent beneficial . . . lance would certainly be But in looking forward ;0 c.} · · f. 1 ·. ·. · · · · · . 508 d tangc o t us kmd we hould t ten . to the caution given by Adanl Smith, ,:hich would a - particularly ap?licable to the silk trade . . . . be r:. "\Vhen the openmg of any trade would . d . . . u09 d · t · · PI o uce temporary Is ress, It Is because it would d' · · 1 f, . c I bl Iminis 1 or a time the e , - c langea e value of the whole produce. but . I . t . ' , In genera the ex enswn of trade increases it ' A ~nowledge of t~e effects of unproduc~iv~ c~ns~m~rs ~n .na~ 51 0 tiona! wealth Will make us proceed w"th , . I more cautwn in our efforts to diminish them Public works, .the making and re.pai~·ing. of. . · 1' · d. · · 511 d / Ioac sJ an a tcn-ency among persons of f.ortune to improve their grounds and keep more ser~ants, are the most dii~ect means withii~ our power of restonng the demand for labour When the national revenue has been increased, anti the ~ro~ ib. fi.tcsr of stock have been raised ' '"'e may then proceec1 W.it 1 1 euect to recover our lost capital by saving It I.s tho ug1 ·l t b y nlany that the revenue of the· co· un·t ry · wo·u ld· 5 I 2 b.e most effectually increased' and the balance of con sump-tw. n . rest?red, by an abundant issue of paper ; but this opiniOn IS founded on a mistaken view of the e.cr t f d . uec so a epreciated cun·ency . . . . . . . . . . . . 513 A great issue of paper now would have a very different effec~ frmn that which it had during the war· It would m· crease t~e glut of commodities, and in a short time aggravate the distresses of the capitalists) by reducing still farther the rate of profits . . . . . . 514 The d~ctrine that ~he ?rogress of w~al~h de~ends ~po~ ~ro~ portwns may be obJected to as renderincr the science of Political Economy more uncertain; but if It be found true T it is a sufficient answer to the obiection . . . . . '. J 515 hough no certain rule can be laid down for growing rich the fastest) yet if we attend to the great laws of demand |