ides. If the fall of cloth did not much increase the demand for it in
Germany, and the rise of linen did not diminish very rapidly the demand
for it in England, much money must pass before the equilibrium is
restored; cloth would fall very much, and linen would rise, until
England, perhaps, had to pay nearly as much for it as when she produced
it for herself. But if, on the contrary, the fall of cloth caused a very
rapid increase of the demand for it in Germany, and the rise of linen in
Germany reduced very rapidly the demand in England from what it was
under the influence of the first cheapness produced by the opening of
the trade; the cloth would very soon suffice to pay for the linen,
little money would pass between the two countries, and England would
derive a large portion of the benefit of the trade. We have thus arrived
at precisely the same conclusion, in supposing the employment of money,
which we found to hold under the supposition of barter.

In what shape the benefit accrues to the two nations from the trade, is
clear enough. Germany, before the commencement of the trade, paid six
shillings per yard for broad-cloth. She now obtains it at a lower price.
This, however, is not the whole of her advantage. As the money prices of
all her other commodities have risen, the money incomes of all her
producers have increased. This is no advantage to them in buying from
each other; because the price of what they buy has risen in the same
ratio with their means of paying for it: but it is an advantage to them
in buying any thing which has not risen; and still more, any thing which
has fallen. They therefore benefit as consumers of cloth, not merely to
the extent to which cloth has fallen, but also to the extent to which
other prices have risen. Suppose that this is one-tenth. The same
proportion of their money incomes as before, will suffice to supply
their other wants, and the remainder, being increased one-tenth in
amount, will enable them to purchase one-tenth more cloth than before,
even though cloth had not fallen. But it has fallen: so that they are
doubly gainers. If they do not choose to increase their consumption of
cloth, this does not prevent them from being gainers. They purchase the
same quantity with less money, and have more to expend upon their other
wants.

In England, on the contrary, general money-prices have fallen. Linen,
however, has fallen more than the rest; having been lowered in price, by
impor