Chapter I. Of Value.

cotton and iron, since she can produce x yards of cotton in ten days' labor to fifteen days in Sweden, and y cwts. of iron in twelve days' labor to fifteen days in Sweden. The ship which takes x yards of cotton to Sweden, and there exchanges it, as may be done, for y cwts. of iron, brings back to England that which cost Sweden fifteen days' labor, while the cotton with [pg 381] which the iron was bought cost England only ten days' labor. So that England also got her iron at an advantage over Sweden of one half of ten days' labor; and yet England had an absolute advantage over Sweden in iron of a less amount (i.e., of one fourth of twelve days' labor). It is to be distinctly understood that by difference in comparative cost we mean a difference in the comparative cost of producing two or more articles in the same country, and not the difference of cost of the same