Page:Manual of Political Economy.djvu/26

Rh Contents. xv to be occupied by scattered Bettlements : the growth of the town population ought always to be encouraged — Mr. Wakefield's theory of colonisation corroborated by the effects of the ^Id discoveries in Australia — There cannot be cooperation between different industrieSi unless the means of communication are good — Division of labour is an instance of the complex cooperation of labour pages 45 — 64 Chapter VI. Production on a Large and on a Small Scale. The advantage of producing on a large scale becomes greater as the use of machinery is extended ^This is exemplified at the present time in the increasing size of our manufactories and warehouses— The extent of the demand must influence the scale of production — The advan- tages and disadvantages of the joint-stock principle — Joint-stock companies are very beneficial to a country — Farming on a large and on a small scale compared — The increased use of machinery in agriculture makes farming on a large scale more advantageous — Why small farming is beneficial in certain special cases, such as dairy fanning 65-73 Chapter VIL On the Laws which determine the Increase of Production. If we suppose the agents of production to be in their most efficient state, then the production of wealth cannot be increased, unless either land, labour, or capital is increased — In the absence of agricultural improvements, more land is not brought into cultivation, unless the value of agricultural produce is increased ; this proposition is the basis of Ricardo*s Theory of Rent — In Political Economy, the fertility or productiveness of land varies inversely with the amount of labour and capital which is required to make its produce available for con- sumption—As the population of the country increases, unless the . additional food required con be obtained by foreign importation or by improved agriculture, less fertile land has to be cultivated, and there- fore agricultural produce has a tendency to become more expensive. would accompany the present increase in her population, has been counteracted, partly by agricultural improvements, but principally by foreign importations of corn, consequent on Free Trade and improved means of transport— A rise in wages usually accompanies an increased demand for labour ; this rise in wapes creates an increased supply of labour by discouraging emigration, and by encouraging mar- riages amongst the poor— Meat and dairy produce must rise in price as the population of a country increases, as long as these com- modities are difficult and expensive to import from a distance... 74— 84 Chapter VIII. On the Increase of Capital. An increase of capital implies increased saving— Two principal motives induce saving : ist, a prudent foresight with regard to the future ; 2nd, a desire to make wealth by an advantageous investment — The Digitized by Google