Note A2-5-6 — Chapter III

Rau distinguishes principally whether importation brings articles of luxury or means of acquisition (Erwerbstamm) into the country. (Ansichten der V. W., 163.) Similarly, de Cazcaux, Eléments d'Economie privée et publique (1825), p. 188 ff. Schmitthenner, Zwölf Bücher vom Staate (1839), I, 497. "A favorable balance of trade does not make a people richer because they receive the metals for other values, but because they produce and sell more than they purchase and consume; the result of which naturally is that the difference must consist in values capable of being capitalized." Kaufmann draws a distinction according as the imported goods come into the country in the form of dead or interest-bearing capital. He illustrates his view by the case of a peasant who sells his seed-corn in order to purchase a finer hat with the proceeds. (Untersuchungen, I, 96, 81 seq.)