Treatise on Political Economy

Book may have numerous typos, missing text, images, or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1821. Not illustrated. Excerpt: ... CHAP. XVI. OF THE BENEFITS RESULTING FROM THE BRISK CIRCULATION OF MONEY AND COMMODITIES. It is common to hear people descant upon the benefits of an active circulation ; that is to say, of numerous and rapid sales. It is material to appreciate them correctly. The values'engaged in actual production cannof be realised and employed in production again, until arrived at the last stage of completion, and sold to the consumer. The sooner a product is finished off and sold, the sooner also can the portion of capital vested in it be applied to the business of fresh production. The capital being engaged a shorter time, there is less interest payable to the capitalist; there is a saving in the charges of production; it is, therefore, an advantage, that the successive operations performed in the course of production should be rapidly executed. By way of illustrating the effects of this activity of circulation, let us trace them in the instance of a piece of printed calico.* * The term circulation, as well as many others employed in the science of political economy, is daily made use of at N 4 random, A Lisbon trader imports the cotton from Brazil. It is his interest, that his factors in America be expeditious in making purchases and remitting cargoes, and likewise, that he meet no delay in selling his cotton to a French merchant; because he thereby gets his returns the sooner, and can sooner recommence a new and equally lucrative operation. So far it is Portugal that benefits by the increased activity of circulation ; the subsequent advantage is on the side of France. If the French merchant keep the Brazil cotton but a short time in his warehouse, before he sells it to the cotton spinner, if the spinner after spinning ^11 it immediately to the weaver, if the weaver dispose o...