the whole system of these first political economists, the so-called
Mercantilists, had no other aim than to demonstrate that the increase of
wealth depends not, as everybody had until then very naturally believed,
upon increasing productiveness of labour, but upon something else, that
something else being, in the opinion of the Mercantilists, money.
Notwithstanding what may be called the tangible absurdity of this doctrine,
it remained unquestioned for generations; nay, to be candid, most men still
cling to it--a fact which would be inconceivable did not the doctrine offer
a very simple and plausible explanation of the enigmatical phenomenon that
increasing capacity of production does not necessarily bring with it a
corresponding increase of wealth.

But it is equally impossible for the inquiring human mind to remain
permanently blind to the fact that money and wealth are two very different
things, and that therefore some other solution must be looked for of the
problem, the existence of which is not to be denied. The Physiocrats found
this second explanation in the assertion that the soil was the source and
origin of all wealth, whilst human labour, however highly developed it
might be, could add nothing to what was drawn from the soil, because labour
itself consumed what it produced. This may look like the first application
of the subsequently discovered natural law of the conservation of force;
and--notwithstanding its obvious absurdity--it was seriously believed in
because it professed to explain what seemed otherwise inexplicable. Between
the labourer's means of subsistence, the amount of labour employed, and the
product, there is by no means that quantitative relation which is to be
found in the conversion of one physical force into another. Human labour
produces more or less in proportion as it is better or worse applied; for
production does not consist in converting labour into things that have a
value, but in using labour to produce such things out of natural objects. A
child can understand this, yet the acutest thinkers of the eighteenth