hown in the paper which
precedes this) that the remittances to persons who expend their incomes
in foreign countries are, after a slight passage of the precious metals,
defrayed in commodities: and that the result commonly is, an increase of
exports and a diminution of imports, until the latter fall short of the
former by the amount of the remittances.

The arrival, therefore, of the strangers (say from England), while it
creates at Paris a market for commodities equivalent in value to their
funds, displaces in the market other commodities to an equal value. To
the extent of the increase of exports from England into France in the
way of remittance, it introduces additional commodities which, by their
cheapness, displace others formerly produced in that country. To the
extent of the diminution of imports into England from France,
commodities which existed or which were habitually produced in that
country are deprived of a market, or can only find one at a price not
sufficient to defray the cost.

It must, therefore, be a matter of mere accident, if by arriving in a
place, the new unproductive consumer causes any net advantage to its
industry, of the kind which we are now examining. Not to mention that
this, like any other change in the channels of trade, may render useless
a portion of fixed capital, and so far injure the national wealth.

A distinction, however, must here be made.

The place to which the new unproductive consumers have come, may be a
town or village, as well as a country. If a town or village, it may
either be or not be a place having an export trade.

If the place had no previous trade except with the immediate
neighbourhood, there are no exports and imports, by the new arrangement
of which, the remittance can be made. There is no capital, formerly
employed in manufacturing for the foreign market, which is now brought
into less full employment.

Yet the remittance evidently is still made in commodities, but in this
case without displacing any which were produced before. To shew this, it
is necessary to make the following remarks.

The reason why towns exist, is that _ceteris paribus_ it is convenient,
in order to save cost of carriage, that the production of commodities
should take place as far as practicable in the immediate vicinity of the
consumer. Capital finds its way so easily from town to country and from
country to town, that the amount of capital in the town will be regulated
wholly by