achinery, capital; it is
impossible for us to compete with it.

We must examine the proposition under other aspects. For the present, I
stop at the question, whether, when an advantage and a disadvantage are
placed in juxtaposition, they do not bear in themselves, the former a
descending, the latter an ascending power, which must end by placing
them in a just equilibrium.

Let us suppose the countries A and B. A has every advantage over B; you
thence conclude that labor will be concentrated upon A, while B must be
abandoned. A, you say, sells much more than it buys; B buys more than it
sells. I might dispute this, but I will meet you upon your own ground.

In the hypothesis, labor, being in great demand in A, soon rises in
value; while labor, iron, coal, lands, food, capital, all being little
sought after in B, soon fall in price.

Again: A being always selling and B always buying, cash passes from B to
A. It is abundant in A--very scarce in B.

But where there is abundance of cash, it follows that in all purchases a
large proportion of it will be needed. Then in A, _real dearness_, which
proceeds from a very active demand, is added to _nominal dearness_, the
consequence of a superabundance of the precious metals.

Scarcity of money implies that little is necessary for each purchase.
Then in B, a _nominal cheapness_ is combined with _real cheapness_.

Under these circumstances, industry will have the strongest possible
motives for deserting A, to establish itself in B.

Now, to return to what would be the true course of things. As the
progress of such events is always gradual, industry from its nature
being opposed to sudden transits, let us suppose that, without waiting
the extreme point, it will have gradually divided itself between A and
B, according to the laws of supply and demand; that is to say, according
to the laws of justice and usefulness.

I do not advance an empty hypothesis when I say, that were it possible
that industry should concentrate itself upon a single point, there must,
from its nature, arise spontaneously, and in its midst, an irresistible
power of decentralization.

We will quote the words of a manufacturer to the Chamber of Commerce at
Manchester (the figures brought into his demonstration are suppressed):

"Formerly we exported goods; this exportation gave way to that of thread
for the manufacture of goods; later, instead of thread, we exported
machinery for the making of thread; t