The effects, consequently resulting from the exchange between different communities, of very many commodities, are compounded of the results produced by the traffic in articles of utility and of luxury.As it is impossible in almost any case to determine accurately how far any article is or is not a luxury, there is proportional difficulty in ascertaining what are the precise effects resulting from the exchanges actually carried on between any two communities.There is one principle which may, in some instances, help to guide us.Almost all articles of which the consumption is conspicuous, the precise effects resulting from their physical qualities difficult to ascertain, and which, from their novelty, have not yet been subjected to the effects of a free competition, may be presumed to be in a great degree luxuries.In them, we may be sure, vanity has found a material on which she could easily fix, and from which there has been no opportunity of dislodging her.
The relative effects of restriction, and free competition, when opportunities have presented themselves of observing them, enable us, however, with some certainty to determine, how far the commodities subjected to their operation have been luxuries, or real utilities.In regard to articles supplying real wants, the more easy and unconstrained the communication, the more extended the production, the freer the competition, the farther, as we have seen, are the stocks of instruments of the societies exchanging carried towards the more quickly returning orders.Every step in advance in the course is equivalent, subject only to the risk of the communication being interrupted, to a real improvement.With regard to such commodities, any general evil resulting from overproduction is quite impossible.A partial glut, as it is termed, may indeed occur; but this, although a slight partial evil, must be a general good.The commodity produced satisfying real wants, an increased supply of it must diffuse a general and sensible plenty.In regard to such commodities the reasoning of Mr.Say is, I conceive, conclusive.
A general overproduction is an absurdity, for it implies the means of a general consumption, and would, in fact, be a general improvement.It would be as if the materials which nature has given to man were to receive powers in addition to those which they already possess, for satisfying his wants;as if the grain of the fields, the grass of the meadow, the trees of the forest, advanced more rapidly to perfection, as if the ore yielded up its metallic treasures with greater facility, the sun diffused a more genial warmth, and the earth rejoiced in universal and exuberant fertility.The increased provision for wants thus presented, must either be consumed, or applied to the formation of instruments to supply the demands of a more distant futurity.
But though these are the effects of increased facilities in the exchange of commodities in as far as they are real utilities, it is exactly the reverse in so far as they are luxuries.Restriction in the exchange of luxuries may be, and often is felt, as no diminution of enjoyment, but a great saving of labor, and the removal of that restriction may almost immediately oblige all, or many of the communities exchanging, to expend the whole amount of labor they had before saved.If then we find that increased facility of exchange, instead of diffusing plenty, spreads poverty, instead of carrying the stocks of the communities exchanging towards the more quickly returning orders, places them in those of slower return, we may assure ourselves that vanity must have been a very potent agent in giving to the commodities exchanged the estimation in which they were held.
Perhaps the most remarkable example that was ever presented, of general and long continued restrictions being at once and completely removed, is that which occurred in consequence of the general peace succeeding the final defeat of the Emperor Napoleon.A power which modern times cannot parallel, had been long exerted to bind up the commerce of Europe.It had been exerted in vain, for that commerce still moved, though it moved in shackles.The termination of the war undid them at once.The ships of the merchant again securely passed from land to land, and he again, without fear, exposed his wares in every market.Had the commodities thus largely exchanged, been altogether utilities, it is impossible but that a vast improvement must have been universally experienced, an augmentation of the resources of society every where felt.The havock and insecurity of war, and the waste of stock and labor attending it were done away with, and the whole energy and intelligence of the most powerful and intellectual race which possibly the world has as yet seen, were turned to the arts of peace, and the amelioration of the condition of man.Instead, however, of having to mark the progress of abundance, prosperity, and happiness, we are rather railed on to note the prevalence of poverty and distress.
