_Principles_ Bk. II., chap. iv.). But if we enlarge our definition so
as to include all these "other things" we shall be driven to a
political economy which shall widely transcend Industry as we now
understand the term, and shall comprehend the whole science and art of
life so far as it is concerned with human effort and satisfaction. If
it is convenient and justifiable to retain for certain purposes of
study the restricted connotation of Industry now in vogue, the
confinement of Capital as above to Trade Capital is logically
justified. For a fuller treatment of the question of the use of the
term Capital in forming a terminology descriptive of the parts of
Industry the reader is referred to Chapter VII., and in particular to
Appendix I.

[2] _Logical Method of Political Economy_, p. 81, etc.

CHAPTER II.

THE STRUCTURE OF INDUSTRY BEFORE MACHINERY.

Sec. 1. _Dimensions of International Commerce in early Eighteenth
Century._
Sec. 2. _Natural Barriers to International Trade._
Sec. 3. _Political, Pseudo-economic, and Economic Barriers--
Protective Theory and Practice._
Sec. 4. _Nature of International Trade._
Sec. 5. _Size, Structure, Relations of the several Industries._
Sec. 6. _Slight Extent of Local Specialisation._
Sec. 7. _Nature and Conditions of Specialised Industry._
Sec. 8. _Structure of the Market._
Sec. 9. _Combined Agriculture and Manufacture._
Sec. 10. _Relations between Processes in a Manufacture._
Sec. 11. _Structure of the Domestic Business: Early Stages of
Transition._
Sec. 12. _Beginnings of Concentrated Industry and the Factory._
Sec. 13. _Limitations in Size and Application of Capital--
Merchant Capitalism._

Sec. 1. In order to get some clear understanding of the laws of the
operation of the new industrial forces which prevail under
machine-production it is first essential to know rightly the structure
and functional character of the "industrial organism" upon which they
were destined to act. In order to build up a clear conception of
industry it is possible to take either of two modes of inquiry. Taking
as the primary cell or unit that combination of labour and capital
under a single control for a single industrial purpose which is termed
a Business, we may examine the structure and life of the Business,
then proceed to discover how it stands related to other businesses so
as to form a Market,