Page:Indian Journal of Economics Volume 2.djvu/526

 608 D. THOMPSON before to supply the needs of a money economy. An increased supply of secie seemed the only supply of capital for industries. Thus gold and silver came o be considered by far he mos importan form o! wealth. All nations ried to increase heir supply of gold and silver which, lacking mines, hey could only obtain by Foreign zade, tha. is, .by an excess of expors over imports, hus giving a Fvorble Balance of rade o be paid in reasure. Thus Foreig ws ezalted above Home rde om [he belief [ha wha one nai gns, he oher loses. To mainn he favorable balance.of re i was only necess, hey supposed, o iport rw mtls which' have low vuo, and  ezrt nished prodts of high vue. Thus arose he belief in he superiority of merchants and manufacturers  miners or farmers. I herefore bece necessary  stimulate  e utmost manufacturing indsts. But since, as in dia to-day, there was a great lack of techni ' knowledge and o[ individu initiative, sie aid became imperative. Minute regulation of production was underlaken io secure goods relalively eheap,.d yel sufficiently good for export. Bul induslries were so simulaed wih he idea of increasing he paig er of lhe nation, (lhe imporlanee of economic slrenglh being realized almosl as clearly io-day). Privileges were given  companies and imporl duties levied. I[ a nation h colonies, lhey were prohibited om rading wih oher countries, and used as a source of raw ms, eries and public revenue. If no, more emphasis was laid on he developmen of nalural resources and on public finance. Lastly, they desired a dense loo.ulation, both for the army and for an abundant labor supply. This they tried to obtain by inviting immigrants, caring for he poor, and prohibiting he expor of grain.