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Saturday, December 31, 2011

Say on Production

We produce also by buying a product in one place, where it is of a less value, and conveying it to another, where it is of greater value. This is the work of Commercial Industry.
How does commercial industry produce utility, as it neither changes the form nor the substance of a product, which is sold just as it is bought?
It acts like the fisherman, of whom we have just spoken; it takes a product from a place where it cannot be used; from a place, at least, where its uses are less extensive, less precious, to a place where they are more so, or where its production is less easy, less abundant, and dearer. Wood is little used, and consequently of very limited utility in the mountains, where it so far exceeds the wants of the inhabitants, that it is sometimes left to rot; this utility,  however, becomes very considerable when the same wood is transported into a city. Hides are of little value in South America, where they have a great number of wild animals: the same skins have a great value in Europe, where their production is expensive, and their uses much more multiplied. Commercial Industry, in bringing them, augments their value by all the difference between their price in Brazil and their price in Europe.

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