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hears the report of the explosion; the fragments fall down in other



countries; and if their inhabitants complain of bloody heads; the



intermediate merchants and dealers say; 'The crisis has done it



all!' If we consider how often by such crises the whole



manufacturing power; the system of credit; nay the agriculture; and



generally the whole economical system of the nations who are placed



in free competition with England; are shaken to their foundations;



and that these nations have afterwards notwithstanding richly to



recompense the English manufacturers by higher prices; ought we not



then to become very sceptical as to the propriety; of the



commercial conditions of nations being regulated according to the



mere theory of values and according to cosmopolitical principles?



The prevailing economical school has never deemed it expedient to



elucidate the causes and effects of such commercial crises。



    The great statesmen of all modern nations; almost without



exception; have comprehended the great influence of manufactures



and manufactories on the wealth; civilisation; and power of



nations; and the necessity of protecting them。 Edward III



comprehended this like Elizabeth; Frederick the Great like Joseph



II; Washington like Napoleon。 Without entering into the depths of



the industry theory; their foreseeing minds comprehended the nature



of in its entirety; and appreciated it correctly。 It was reserved



for the school of physiocrats to regard this nature from another



point of view in consequence of a sophistical line of reasoning。



Their castle in the air has disappeared; the more modern economical



school itself has destroyed it; but even the latter has also not



disentangled itself from the original errors; but has merely



advanced somewhat farther from them。 Since it did not recognise the



difference between productive power and mere values of exchange;



and did not investigate the former independently of the latter; but



subordinated it to the theory of values of exchange; it was



impossible for that school to arrive at the perception how greatly



the nature of the agricultural productive power differs from the



nature of the manufacturing productive power。 It does not discern



that through the development of a manufacturing industry in an



agricultural nation a mass of mental and bodily powers; of natural



powers and natural resources; and of instrumental powers too (which



latter the prevailing school terms 'capital'); is brought to bear;



and brought into use; which had not previously been active; and



would never have come into activity but for the formation and



development of an internal manufacturing power; it imagines that by



the establishment of manufacturing industry these forces must be



taken away from agriculture; and transferred to manufacture;



whereas the latter to a great extent is a perfectly new and



additional power; which; very far indeed from increasing at the



expense of the agricultural interest; is often the means of helping



that interest to attain a higher degree of prosperity and



development。







NOTES:











1。 This is true respecting Spain up to the period of her invasion



by Napoleon; but not subsequently。 Our author's conclusions are;



however; scarcely invalidated by that exception。  TR。







2。 Say states in his Economie Politique Pratique; vol。 iii。 p。 242;



'Les lois ne peuvent pas cr閑r des richesses。' Certainly they



cannot do this; but they create productive power; which is more



important than riches; i。e。 than possession of values of exchange。







3。 Wealth of Nations; Book IV。 chap。 ii。







4。 From the great number of passages wherein J。 B。 Say explains



this view; we merely quote the newest  from the sixth volume of



Economie Politique Pratique; p。 307: 'Le talent d'un avocat; d'un



m閐ecin; qui a 閠椤cquis au prix de quelque sacrifice et qui



produit un revenu; est une valeur capitale; non transmissible 唷a



v閞it椋弧ais qui r閟ide n閍nmoins dans un corps visible; celui de



la personne qui le poss鑔e。'







Chapter 13







The National Division of Commercial Operations and the



Confederation of the National Productive Forces







    The school is indebted to its renowned founder for the



discovery of that natural law which it calls 'division of labour;'



but neither Adam Smith nor any of his successors have thoroughly



investigated its essential nature and character; or followed it out



to its most important consequences。



    The expression 'division of labour' is an indefinite one; and



must necessarily produce a false or indefinite idea。



    It is 'division of labour' if one savage on one and the same



day goes hunting or fishing; cuts down wood; repairs his wigwam;



and prepares arrows; nets; and clothes; but it is also 'division of



labour' if (as Adam Smith mentions as an example) ten different



persons share in the different occupations connected with the



manufacture of a pin: the former is an objective; and the latter a



subjective division of labour; the former hinders; the latter



furthers production。 The essential difference between both is; that



in the former instance one person divides his work so as to produce



various objects; while in the latter several persons share in the



production of a single object。



    Both operations; on the other hand; may be called with equal



correctness a union of labour; the savage unites various tasks in



his person; while in the case of the pin manufacture various



persons are united in one work of production in common。



    The essential character of the natural law from which the



popular school explains such important phenomena in social economy;



is evidently not merely a division of labour; but a division of



different commercial operations between several individuals; and at



the same time a confederation or union of various energies;



intelligences; and powers on behalf of a common production。 The



cause of the productiveness of these operations is not merely that



division; but essentially this union。 Adam Smith well perceives



this himself when he states; 'The necessaries of life of the lowest



members of society are a product of joint labour and of the



co…operation of a number of individuals。'(1*) What a pity that he



did not follow out this idea (which he so clearly expresses) of



united labour。



    If we continue to consider the example of the pin manufacture



adduced by Adam Smith in illustration of the advantages of division



of labour; and seek for the causes of the phenomenon that ten



persons united in that manufacture can produce an infinitely larger



number of pins than if every one carried on the entire pin



manufacture separately; we find that the division of commercial



operations without combination of the productive powers towards one



common object could but little further this production。



    In order to create such a result; the different individuals



must co…operate bodily as well as mentally; and work together。 The



one who makes the heads of the pins must be certain of the co



operation of the one who makes the points if he does not want to



run the risk of producing pin heads in vain。 The labour operations



of all must be in the proper proportion to one another; the workmen



must live as near to one another as possible; and their



co…operation must be insured。 Let us suppose e。g。 that every one of



these ten workmen lives in a different country; how often might



their co…operation be interrupted by wars; interruptions of



transport; commercial crises; &c。; how greatly would the cost of



the product be increased; and consequently the advantage of the



division of operation diminished; and would not the separation or



secession of a single person from the union; throw all the others



out of work?



    The popular school; because it has regarded the division of



operation alone as the essence of this natural law; has committed



the error of applying it merely to the separate manufactory or



farm; it has not perceived that the same law extends its action



especially over the whole manufacturing and agricultural power;



over the whole economy of the nation。



    As the pin manufactory only prospers by the confederation of



the productive force of the individuals; so does every kind of



manufacture prosper only by the confederation of its productive



forces with those of all other kinds of manufacture。 For the



success of a machine manufactory; for instance; it is necessary



that the mines and metal works should furnish it with the necessary



materials; and that all the hundred different sorts of



manufactories which require machines; should buy their products



from it。 Without machine manufactories; a nation would in time of



war be exposed to the danger of losing the greater portion of its



manufacturing power。



    In like manner the entire manufacturing industry of a State in



connection with its agricultural interest; and the latter in



connection with the former; will prosper the more the nearer they



are placed to one another; and the less they are interrupted in



their mutual exchanges with one another。 The advantages of their



confederation under one and the same political Power in times of



war; of national differences; of commercial crises; failure of



crops; &c。; are not less perceptible than are the advantages of the



union of the persons belonging to a pin manufactory under one and



the same roof。



    Smith affirms that the division of labour is less applicable to



agriculture than to manufactures。(2*) Smith had in view only the



separate manufactory and the separate farm。 He has; however;



neglected to extend his principle over whole districts and



provinces。 Nowhere has the division of commercial operations and



the confederation of the productive powers greater influence than



where every district and every province is in a position to devote



itself exclusively; or at least chiefly; to those branches of



agricultural production for which they are mostly fitted by nature。



In one district corn and hops chiefly thrive; in another vines and



fruit; in a third timber production and cattle rearing; &c。 If



every district is devoted to all these branches of production; it



is clear that its labour and its land cannot be nearly so



productive as if every separate district w

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