DISPOSING  OF  SURPLUS  PRODUCE

145

This  argument  is  not  really  met  by  showing  that  a
colony  does  not  directly  and  consciously  underbid:  it
helps  to  increase  Supply,  and  any  increase  of  Supply
without  a  corresponding  growth  of  Demand  necessarily
brings  down  prices.  It  may  indeed  be  urged  with  some
force  that  the  effect  produced  upon  prices  and  employment ­
  in  these  trades  will  be  more  than  compensated  for
by  the  effect  of  the  increased  demand  represented  by
the  consumption  of  other  outside  goods  purchased  by  the
Colony.  Set  these  two  tendencies  against  one  another,
and  the  result  will  be  a  net  increase  of  consumption,  represented ­
  by  the  improved  standard  of  consumption  of  the
colonists,  which  will  be  reflected  in  a  rise  of  aggregate
employment  for  the  whole  community.  This  argument
is  sound,  but  it  does  not  justify  the  retention  of  a  practice ­
  which  inflicts  upon  certain  special  English  industries
the  injury  of  an  illegitimate  competition.  Most  advocates
of  Colonies  and  other  schemes  of  public  employment
endeavour  to  provide  against  this  danger  by  confining
the  labour  of  colonists  to  the  production  of  commodities
which  are  either  consumed  on  the  colony,  or  which  if
placed  upon  the  outside  markets  only  compete  with  goods
imported  from  foreign  countries.
§  14.  Difficulties  of  Disposing  of  Surplus  Produce.
A  single  colony,  if  it  is  to  make  an  effective  use  of
its  land,  its  labour,  and  its  location,  must  necessarily
specialise  its  productive  work  so  far  as  to  produce  larger
quantities  of  certain  agricultural  and  manufactured  goods
than  its  inhabitants  require  for  their  consumption.  The
difficulty  of  disposing  of  this  surplus  produce  without  inflicting ­
  injury  upon  outside  producers  might  be  minimised,