is necessary to make the following remarks.

The reason why towns exist, is that _ceteris paribus_ it is convenient,
in order to save cost of carriage, that the production of commodities
should take place as far as practicable in the immediate vicinity of the
consumer. Capital finds its way so easily from town to country and from
country to town, that the amount of capital in the town will be regulated
wholly by the amount which can be employed there more conveniently than
elsewhere. Consequently the capital of a place will be such as is
sufficient

1st. To produce all commodities which from local circumstances can be
produced there at less cost than elsewhere: and if this be the case to
any great extent, it will be an exporting town. When we say _produced_,
we may add, or _stored_.

2nd. To produce and retail the commodities which are consumed by the
inhabitants of the town, and the place of whose production is in other
respects a matter of indifference. To the inhabitants of the town must
be added such dwellers in the adjoining country, as are nearer to that
place than to any other equally well furnished market.

Now, if new unproductive consumers resort to the place, it is clear that
for the latter of these two purposes, more capital will be required than
before. Consequently, if less is not required for the former purpose,
more capital will establish itself at the place.

Until this additional capital has arrived, the producers and dealers
already on the spot will enjoy great advantages. Every particle of their
own capital will be called into the most active employment. What their