But their customers are sufficiently numerous not only to reestablish the balance, but also to make it lean on their side.
When, therefore, the question is about equalizing the advantages of labor, it would be well to consider whether the natural freedom of exchange is not the best umpire.
This self-levelling faculty of political phenomena is so important, and at the same time so well calculated to cause us to admire the providential wisdom which presides over the equalizing government of society, that I must ask permission a little longer to turn to it the attention of the reader.
The protectionists say, Such a nation has the advantage over us, in being able to procure cheaply, coal, iron, machinery, capital; it is impossible for us to compete with it.
We must examine this proposition under other aspects.

For the present, I stop at the question, whether, when an advantage and a disadvantage are placed in juxtaposition, they do not bear in themselves, the former a descending, the latter an ascending power, which must end by placing them in a just equilibrium?
Let us suppose the countries A and B.A has every advantage over B; you thence conclude that labor will be concentrated upon A, while B must be abandoned.

A, you say, sells much more than it buys; B buys much more than it sells.

I might dispute this, but I will meet you upon your own ground.
In the hypothesis, labor being in great demand in A, soon rises in value; while labor, iron, coal, lands, food, capital, all being little sought after in B, soon fall in price.
Again: A being always selling and B always buying, cash passes from B to A.It is abundant in A, very scarce in B.
But where there is abundance of cash, it follows that in all purchases a large proportion of it will be needed.

Then in A, _real dearness_, which proceeds from a very active demand, is added to _nominal dearness_, the consequence of a superabundance of the precious metals.
Scarcity of money implies that little is necessary for each purchase.
Then in B, a _nominal cheapness_ is combined with _real cheapness_.
Under these circumstances, industry will have the strongest possible motives for deserting A to establish itself in B.
Now, to return to what would be the true course of things.