i66

A REVISION OF THE TREATY chap, vi

employment of its labour and its capital. If onecountry is required to transfer to another withoutpayment great quantities of goods, for which thisequilibrium does not allow, the balance is destroyed.Since capital and labour are fixed and organised incertain employments and cannot flow freely intoothers, the disturbance of the balance is destructiveto the utility of the capital and labour thus fixed.The organisation, on which the wealth of the modernworld so largely depends, suffers injury. In course oftime a new organisation and a new equilibrium canbe established. But if the origin of the disturbanceis of temporary duration, the losses from the injurydone to organisation may outweigh the profit ofreceiving goods without paying for them. Moreover,since the losses will be concentrated on the capitaland labour employed in particular industries, theywill provoke an outcry out of proportion to the injuryinflicted on the community as a whole.