fire added to the industry and capital of those
who availed themselves of this knowledge."

"From this error Smith has drawn this false result, that
the value of all productions represents the recent or
former labour of man, _or in other words, that riches are
nothing else but accumulated labour; from which, by a
second consequence, equally false, labour is the sole
measure of riches, or of the value of productions_."[30]
The inferences with which M. Say concludes are his own,
and not Dr. Smith's; they are correct if no distinction be
made between value and riches: but though Adam Smith, who
defined riches to consist in the abundance of necessaries,
conveniences, and enjoyments of human life, would have
allowed that machines and natural agents might very
greatly add to the riches of a country, he would not have
allowed that they add any thing to value in exchange.

[30] Chap. iv. p. 31.

[31] M. Say, _Catechisme d'Economie Politique_, p. 99.

[32] Adam Smith speaks of Holland, as affording an
instance of the fall of profits from the accumulation of
capital, and from every employment being consequently
overcharged. "The Government there borrow at 2 per cent.,
and private people of good credit, at 3 per cent." But it
should be remembered, that Holland was obliged to import
almost all the corn which she consumed, and by imposing
heavy taxes on the necessaries of the labourer, she
further raised the wages of labour. These facts will
sufficiently account for the low rate of profits and
interest in Holland.

[33] Is the following quite consistent with M. Say's
principle? "The more disposable capitals are abundant in
proportion to the extent of employment for them, the more
will the rate of interest on loans of capital fall."--Vol.
ii. p. 108. If capital to any extent can be employed by a
country, how can it be said to be abundant compared with
the extent of employment for it?

[34] Adam Smith says, that "When the produce of any
particular branch of industry exceeds what the demand of
the country requires, the surplus must be sent abroad, and
exchanged for something for which there is a demand at
home. _Without such exportation a part of the productive
labour of the country must cease, and the value of its
annual produce diminish._ The land and labour of great
Britain produce generally more corn, woollens, and
hardware, than th