tation from a country where it was cheaper, whereas the others have
fallen only from the consequent efflux of money. Notwithstanding,
therefore, the general fall of money-prices, the English producers will
be exactly as they were in all other respects, while they will gain as
purchasers of linen.

The greater the efflux of money required to restore the equilibrium, the
greater will be the gain of Germany; both by the fall of cloth, and by
the rise of her general prices. The less the efflux of money requisite,
the greater will be the gain of England; because the price of linen will
continue lower, and her general prices will not be reduced so much. It
must not, however, be imagined that high money-prices are a good, and
low money-prices an evil, in themselves. But the higher the general
money-prices in any country, the greater will be that country's means
of purchasing those commodities which, being imported from abroad, are
independent of the causes which keep prices high at home.

3. We have hitherto supposed the carriage to be performed without labour
or expense. If we abandon this supposition, we must correct the
statement of the case in a slight degree. The prices of the two articles
will no longer, when the trade is opened, be the same in both countries,
nor will the articles exchange for one another at the same rate in both.
Ten yards of cloth will purchase in Germany a quantity of linen greater
than in England by a per-centage equal to the entire cost of conveyance
both of the cloth to Germany and of the linen to England. The
money-price of linen will be higher in England than in Germany, by the
cost of carriage of the linen. The money-price of cloth will be higher
in Germany than in England, by the cost of carriage of the cloth.

The expense of the carriage is evidently a deduction _pro tanto_ from
the saving of labour produced by the establishment of the trade. The two
countries together, therefore, have their gains by the trade diminished,
by the amount of the cost of carriage of both commodities. But here the
question arises, which of the two countries bears this deduction, or in
what proportion it is divided between them.

At the first inspection it would appear that each country bears its own
cost of carriage, that is, that each country pays the carriage of the
commodity which it imports. Upon this supposition, each country would
gain whatever share of the joint saving of labour would otherwise fall
to i