150 
POLITICAL ECONOMY 
same time, be equalised throughout Lanca 
shire. In enunciating the proposition that 
within each of these areas earnings would be 
equalised, of course I mean to imply, in the 
case of capital, when allowance is made for 
difference between risks, and, in the case of 
labour, when allowance is made for differences 
in respect of the capacity of people and 
the general amenities and difficulties of the 
various occupations pursued. In this fanciful 
picture we have an exact representation of 
the conditions of the problem of international 
values. 
The next question to ask and answer, and 
one to which a convincing response can be 
given in a very short space, is why labour 
and capital are comparatively immobile 
internationally. The answer, as regards 
labour, is because patriotism, differences of 
language and national customs, and attach 
ment to the surroundings, both geographical 
and social, in which people have been born, 
naturally keep them at home, as a rule, 
unless great inducements are offered to them 
to change their country, and even against 
very great inducements. And, as regards 
capital, the answer is that the capitalist 
feels that his property is more secure when 
it is so located that he can watch its use,