sparsely populated part and the subordination of
it in the part that is densely populated. If we assume that capital in
the different types of employment varies as does labor, the descent of
this line toward the right means a decline in the fraction of the
whole force of labor and of the whole fund of capital devoted to
cultivating the soil; while the upward trend of _EF_ means the
enlarging proportion of labor and capital devoted to manufacturing as
we pass from a region of sparse population to regions more and more
crowded. The wavy character of the two dotted lines is designed to
express the fact that local conditions other than mere density of
population favor the one type of occupation rather than the other; and
moreover, nothing in the figure is intended to mean that the increase
in manufacturing and the comparative decrease in tillage from the left
of the diagram to the right are in any exact numerical proportion to
the increase in the density of population. The figure as a whole
rudely represents the fact that an approximation to the static
distribution of population insures an approximation to a static
apportionment of occupations within the described area and indicates
the general nature of that apportionment.

_How Cost of Production and Cost of Acquisition are Equalized._--The
costs of moving goods from place to place--including in these costs
commercial charges and duties imposed by governments--are the cause of
most of the manufacturing that is done in the region represented by
the left side of the diagram, except the production of such articles
for immediate or local consumption as are necessarily made at or near
the places where they are used.[4] Tailoring, blacksmithing,
carpentering, general repairing, etc., would always be done in that
region, but many kinds of staple goods capable of being transported
would, in the absence of duties on imports, be made chiefly in the
region of dense population and cheap labor.

[4] There can be no large area from which manufacturing is
excluded. The rural hamlet has its blacksmith, wheelwright,
and carpenter, its sawmills and gristmills; and manufacturers
of sashes, doors, furniture, and many implements abound where
agriculture is the general industry. Special advantages for
production insure the introduction of other industries, and
the advantages of being near to customers is enough to
maintain many of them. Repairing must, of cour