South Carolina, has one hundred pounds of cotton, which we suppose to be the precise product of one man's labor for twenty days. B, in Manchester, England, has one hundred yards of cotton cloth, the precise product of the same amount of labor. This lot of cotton and lot of cloth are precisely equal to each other in their intrinsic value. But A wishes to part with his cotton for the largest quantity of cloth he can get. B also wishes to part with his cloth for the greatest quantity of cotton he can get. An exchange is therefore necessary; but before this can be effected, the cotton must be carried to Manchester, and the cloth to South Carolina. The cotton starts to Manchester. The man that hauls it to Charleston in his wagon takes a little of it out to pay him for his trouble; the merchant who stores it a while before the ship is ready to sail takes a little out for his trouble; the ship-owner who carries it across the water takes a little out for his trouble. Still, before it gets to Manchester it is tolled two or three times more for drayage, storage, commission, and so on; so that when it reaches B's hands there are but seventy-five pounds of it left. The cloth, too, in its transit from Manchester to South Carolina, goes through the same process of tolling; so that when it reaches A there are but seventy-five yards of it. Now, in this case, A and B have each parted with twenty days' labor, and each received but fifteen in return. But now let us suppose that B has removed to the side of A's farm in South Carolina, and has there made his lot of cloth. Is it not clear that he and A can then exchange their cloth and cotton, each getting the whole of what the other parts with?
