The wealth of England is the sum of the wealth of each individual in
England. An individual may have L10,000 in England, L5000 invested in
Australia. We may reckon his wealth in England either as including or
excluding the L5000, which he could transfer (probably very speedily)
to England in gold if he desired it tangibly. Whichever way we reckon
his wealth and that of other individuals, we shall in like manner in
the sum get the wealth of England: it will be in one case the wealth
in England-in the other case the wealth in England plus the lien
which residents in England have on other countries in the world.

In parallel manner the effective capital of England, which can be
brought into the wages fund, must be the sum of the capital of all
the individuals.

These two self-evident truths are capable of many applications: we
see directly from them that the National Debt, so far as it is held
by residents in England, neither diminishes the national wealth nor
affects the wages fund. We see also directly that any exchange
between an Englishman and a foreigner which gives a profit to the
Englishman gives an equal profit to the English nation.

When a merchant buys 1000 quarters of wheat from America and pays in
gold, he does so to make a profit for himself; but he cannot make a
profit for himself without making an equal profit for the nation. The
exchange of the wheat for gold is profitable to both seller and
buyer; otherwise the bargain would not be struck. A value is added to
the wheat by its being brought from Minnesota (where it is wanted, as
all good things are wanted) to London, where it is much more wanted,
and this increased value is greater than the cost of moving the wheat
from Minnesota to London; this excess is the profit on the exchange