shoes he can excel him by one-third or 33 per cent.;--will
it not be for the interest of both, that the superior man
should employ himself exclusively in making shoes, and the
inferior man in making hats?

[15] Book V. ch. ii.

[16] M. Say appears to have imbibed the general opinion on
this subject. Speaking of corn, he says, "thence it
results, that its price influences the price of _all_
other commodities. A farmer, a manufacturer, or a
merchant, employs a certain number of workmen, who all
have occasion to consume a certain quantity of corn. If
the price of corn rises, he is obliged to raise, in an
equal proportion, the price of his productions." Vol. i.
p. 255.

[17] M. Say says, that "the tax, added to the price of a
commodity, raises its price. Every increase in the price
of a commodity, necessarily reduces the number of those
who are able to purchase it, or at least the quantity they
will consume of it." This is by no means a necessary
consequence. I do not believe, that if bread were taxed,
the consumption of bread would be diminished, more than if
cloth, wine, or soap, were taxed.

[18] The following remark of the same author appears to me
equally erroneous: "When a high duty is laid on cotton,
the production of all those goods, of which cotton is the
basis, is diminished. If the total value added to cotton
in its various manufactures, in a particular country,
amounted to 100 millions of francs per annum, and the
effect of the tax was, to diminish the consumption one
half, then the tax would deprive that country every year
of 50 millions of francs, in addition to the sum received
by government." Vol. ii. p. 314.

[19] It is observed by M. Say, "that a manufacturer is not
enabled to make the consumer pay the whole tax levied on
his commodity, because its increased price will diminish
its consumption." Should this be the case, should the
consumption be diminished, will not the supply also
speedily be diminished? Why should the manufacturer
continue in the trade if his profits are below the general
level? M. Say appears here also to have forgotten the
doctrine which he elsewhere supports, "that the cost of
production determines the price, below which commodities
cannot fall for any length of time, because production
would then be either suspended or diminished."--Vol. ii.
p. 26.

"The tax in this case falls the