194 
INTERNATIONAL TRADE 
commonplace in our general economic analysis that a commodity 
made with much use of machinery is the combined product of two 
sets of laborers — those who make the instruments and those who 
operate them. If all those whose labor is combined for producing 
the final result are paid higher wages than in foreign countries, 
why cannot the foreigners undersell where much machinery is used 
as well as where little is used ? 
The real reason why Americans are more likely to hold their own 
where machinery is much used, and where hand labor plays a 
comparatively small part in the expenses of production, is that 
Americans make and use machinery better. They turn to labor- 
saving devices more quickly, and they use devices that save more 
labor. Sometimes the machinery is lower in price than the same 
machinery when made abroad, because made with labor more 
effective. Sometimes it is the same in price, but is utilized better 
and made to turn out more product per unit of operating force. 
Sometimes, tho dearer in absolute price, it still is cheaper for use 
— cheaper relatively to its effectiveness. The result is the same, 
whatever the details of the differences. The same product costs 
less money in the United States than in countries not so adept 
with the machine process, and the same labor turns out more of the 
product. The question remains one of comparative effectiveness. 
I would not be supposed to lay down the final word on this 
matter — least of all on the causes that lead to differences in 
effectiveness. The Americans, we say, have a greater aptitude in 
applying machinery. But why this national characteristic? To 
use a phrase of Professor Veblen’s, something more than a taxo- 
nomic analysis is called for; we need a genetic explanation. How 
came it about that Americans developed their special traits? The 
same question arises with regard to other peoples, their industrial 
characteristics and their special advantages. The English have 
long been superior to the French in making the cheaper grades of 
woolens; the French have been their equals in some among the 
finer grades, their superiors in others. The French have long had 
an advantage In certain goods of luxurious or artistic character,