in the arts, and in possessing themselves of the conveniences of life, is always much less rapid than that of their more highly favored neighbors. They know but little of what is going on around them, and their desires are but feebly stimulated to improve their condition. The state of such a population is always suddenly and rapidly improved, by any means of easy communication with their neighbors. They are stimulated at once to develope their own resources, and thus to share in the benefits enjoyed by those around them. Thus, the Pastor Oberlin, a truly great and good man, when he wished to improve the condition of the Ban de la Roche, commenced by inducing his people to repair their roads. Hence we see, how important, in this respect, to a nation, are all means of internal communication, and the facilities for the universal circulation of the commonest forms of knowledge.

2. Exchanges will be numerous, in proportion to the productiveness of a country.

We have already seen, that simple desire, in both parties, is not sufficient to effect exchanges. Each party must both possess, and be willing to part with, so large a portion of the product desired by the other party, that the other is willing to make the desired exchange. Every man desires a horse and carriage, and every man who either raises horses or manufactures carriages, is willing to part with them for an equivalent. But until every man have something to offer for a horse and carriage, which will induce the other parties to make the exchange, every one cannot be so accommodated. If A have wheat which he is willing to exchange for rye, but if B either have no rye which he is able to offer in exchange, or have it not in sufficient quantity to remunerate the labor of A, no exchange can take place. But if both have been successful, and each have enough of his own product for his own use, and is also able to offer, on fair terms, a portion in

exchange, they may then exchange with advantage, and, of course, they will do so.

Or, again: If A and B have only so much surplus product as will enable them to make this one exchange with each other, much as they may desire the product of C and D, these last desires must be ungratified; since no further exchange can take place. Or, on the contrary, if A and B have abundance, but C and D have been unfortunate, and have nothing which they can part with, the same result will take place. But let A, B, C and D be all blessed with abundance, and all have surplus products which they are willing to exchange with each other, and in such proportions as will reward each other's industry; and they will all exchange accordingly. Thus, exchanges must always be most numerous, in the most prosperous condition of a country; or, as every one knows, mercantile business is most prosperous, that is, exchanges are most abundant, when manufacturing, agricultural, and all other kinds of industry are most productive.

And we see, moreover, that this principle is of universal application. A good harvest in one country, is a benefit to every other country; because the favored country desires a larger amount of the productions of her neighbors, and has a larger fund wherewith to pay for them. Hence, the exchanges between such a country and every other country, are increased. On the contrary, a famine, or a war, or any other calamity in one country, is a calamity to every other country, because the unfortunate country wants less of the productions of its neighbors; since it has less wherewith to pay for them. Its exchanges, therefore, are of necessity diminished. Hence, that merchant is short-sighted, as well as morally thoughtless, who expects to grow rich by short crops, civil dissensions, calamity, or war, in the country with which he traffics. A wiser and farther-sighted reflection, would teach him that it is very difficult to grow rich by trading with beggars,

.

and that the benefit of one is always the benefit of all. To illustrate all this by a single case, let us ask what would be the amount of exchange effected by the inhabitants of Great Britain, France, and the United States, either among themselves or with each other, if the productiveness of these several countries, were no greater than it was in the time of Julius Cæsar?

3. Exchanges will be numerous in proportion to the moral character of a people.

1. Individual morality is highly favorable to exchange, inasmuch as it lessens the liability to fraud, and, of course, the risk to which exchanges are exposed. No one will, if he can avoid it, trade with a knave. In proportion to the prevalence of knavery, will be the disinclination to exchange.

2. On the general moral character of a people depend the equity of their laws, and, of course, the full enjoyment of the right of property. As has before been remarked, exchanges are not always completed at the instant. One party frequently parts with his property to-day, on condition of receiving the property of his neighbor a month hence. Here is a liability to fraud. Unless the one party have, by means of just and equitable law, the power of enforcing contracts, exchanges will be greatly restricted.

3. On the morality and intelligence of a people, will greatly depend the freedom of its civil constitution; that is, the accuracy with which it limits the power of the society, over the person and property of the individual. When these are improperly understood, or insufficiently guarded, the property of the citizen is liable to suffer from the avarice or the oppression of rulers. To this evil, property, undergoing exchange, is specially liable. Exchange exposes to the view of the public, the possession of the parties, and, of course, enables a tyrant to seize upon them with greater certainty. For this reason, exchanges are frequently, under bad governments,

made in secret; and, for this reason, under such a government, they are always as few as possible, and at great expense to the consumer.

Thus, in general, the frequency of exchanges will be in proportion to the wealth, and to the intellectual and moral character of a people. And since, as the progress of a nation, in these respects, will promote her mercantile prosperity, we may easily see what will depress it. The frequency of exchanges will diminish, as a nation decreases in intelligence and virtue. Of the truth of this remark, all history is filled with illustrations. After what has already been said, it will not be necessary to enlarge upon this topic. These effects, moreover, are principally to be observed, by comparing the condition of a country at long periods; and tracing the effects of measures and events in those directions which are not always obvious to every observer.

While, however, the government and laws of a country remain the same, there frequently occurs a temporary diminution of exchanges, which is denominated a stagnation of business. This deserves to be noticed. As the business of a merchant is to execute exchanges; that is, to perform the labor of exchanging, for those who wish to exchange their products, a stagnation of mercantile business must occur, when there is less of this operation to be performed; that is, the merchant is ready to perform the exchange, but a less number of persons desire it to be performed.

The reason why the merchant feels this more seriously than any other man, is obvious. All his capital is invested in this kind of operation. He buys of one party, that is, invests his capital in one kind of product, and sells to another, that is, receives his product in exchange, and he supports himself by the profit of these two operations. The moment exchanges cease, his means of support are dried up; for he is supported only by making them. He can buy, but he cannot sell. Hence there arises,

as it is called, a stagnation of business; that is, a cessation or diminution of exchanges. The principal causes of this, are the following:

1. It may arise from a diminished desire for a particular product. Thus the decrease of the Catholic religion, during the wars of the French revolution, diminished the desire for fish, which the Catholics eat in Lent, and on fast days. This produced a stagnation of business in the fish trade.

It may arise from change of fashion. Thus, when shoe-strings were substituted for shoe-buckles the demand for shoe-buckles ceased; the manufacturers of shoe-buckles were thrown out of employment; and there was a stagnation of business in this kind of trade.

It may arise from the fact, that one particular product has been supplanted by another. Thus the increasing cheapness of cotton cloth, has materially diminished the demand for linen.

Whenever, from any cause, the desires of men change, then the traffic in the article neglected, must be diminished; since it is very difficult to sell to a man a commodity which he knows he does not want. To this disadvantage, all articles which derive their value from fashion and caprice are exposed; and, on this account, they are always sold at a higher profit, in order to compensate for the additional risk.

2. Stagnation in business may arise from a temporary failure in production. This must, of necessity, produce it; since, as we have already seen, two men cannot exchange, unless they both have something to part with; and the amount and number of every man's exchanges will be in proportion to the amount which he is able to part with, and the amount which others are able to offer him in exchange. Thus, if the crop of sugar should be reduced one half, there would be a stagnation in the sugar business; that is, there would be but half the quantity of sugar to be exchanged, and half the