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something　for　which　there　is　a　demand　at　home。　The　inhabitants　of

many　different　parts　of　Great　Britain　have　not　capital　sufficient

to　improve　and　cultivate　all　their　lands。　The　wool　of　the

southern　counties　of　Scotland　is；　a　great　part　of　it；　after　a

long　land　carriage　through　very　bad　roads；　manufactured　in

Yorkshire；　for　want　of　capital　to　manufacture　it　at　home。　There

are　many　little　manufacturing　towns　in　Great　Britain；　of　which

the　inhabitants　have　not　capital　sufficient　to　transport　the

produce　of　their　own　industry　to　those　distant　markets　where

there　is　demand　and　consumption　for　it。　If　there　are　any

merchants　among　them；　they　are　properly　only　the　agents　of

wealthier　merchants　who　reside　in　some　of　the　greater　commercial

cities。

　　　　　When　the　capital　of　any　country　is　not　sufficient　for　all

those　three　purposes；　in　proportion　as　a　greater　share　of　it　is

employed　in　agriculture；　the　greater　will　be　the　quantity　of

productive　labour　which　it　puts　into　motion　within　the　country；

as　will　likewise　be　the　value　which　its　employment　adds　to　the

annual　produce　of　the　land　and　labour　of　the　society。　After

agriculture；　the　capital　employed　in　manufactures　puts　into

motion　the　greatest　quantity　of　productive　labour；　and　adds　the

greatest　value　to　the　annual　produce。　That　which　is　employed　in

the　trade　of　exportation　has　the　least　effect　of　any　of　the

three。

　　　　　The　country；　indeed；　which　has　not　capital　sufficient　for

all　those　three　purposes　has　not　arrived　at　that　degree　of

opulence　for　which　it　seems　naturally　destined。　To　attempt；

however；　prematurely　and　with　an　insufficient　capital　to　do　all

the　three　is　certainly　not　the　shortest　way　for　a　society；　no

more　than　it　would　be　for　an　individual；　to　acquire　a　sufficient

one。　The　capital　of　all　the　individuals　of　a　nation　has　its

limits　in　the　same　manner　as　that　of　a　single　individual；　and　is

capable　of　executing　only　certain　purposes。　The　capital　of　all

the　individuals　of　a　nation　is　increased　in　the　same　manner　as

that　of　a　single　individual　by　their　continually　accumulating　and

adding　to　it　whatever　they　save　out　of　their　revenue。　It　is

likely　to　increase　the　fastest；　therefore；　when　it　is　employed　in

the　way　that　affords　the　greatest　revenue　to　all　the　inhabitants

of　the　country；　as　they　will　thus　be　enabled　to　make　the　greatest

savings。　But　the　revenue　of　all　the　inhabitants　of　the　country　is

necessarily　in　proportion　to　the　value　of　the　annual　produce　of

their　land　and　labour。

　　　　　It　has　been　the　principal　cause　of　the　rapid　progress　of　our

American　colonies　towards　wealth　and　greatness　that　almost　their

whole　capitals　have　hitherto　been　employed　in　agriculture。　They

have　no　manufactures；　those　household　and　courser　manufactures

excepted　which　necessarily　accompany　the　progress　of　agriculture；

and　which　are　the　work　of　the　women　and　children　in　every　private

family。　The　greater　part　both　of　the　exportation　and　coasting

trade　of　America　is　carried　on　by　the　capitals　of　merchants　who

reside　in　Great　Britain。　Even　the　stores　and　warehouses　from

which　goods　are　retailed　in　some　provinces；　particularly　in

Virginia　and　Maryland；　belong　many　of　them　to　merchants　who

reside　in　the　mother　country；　and　afford　one　of　the　few　instances

of　the　retail　trade　of　a　society　being　carried　on　by　the　capitals

of　those　who　are　not　resident　members　of　it。　Were　the　Americans；

either　by　combination　or　by　any　other　sort　of　violence；　to　stop

the　importation　of　European　manufactures；　and；　by　thus　giving　a

monopoly　to　such　of　their　own　countrymen　as　could　manufacture　the

like　goods；　divert　any　considerable　part　of　their　capital　into

this　employment；　they　would　retard　instead　of　accelerating　the

further　increase　in　the　value　of　their　annual　produce；　and　would

obstruct　instead　of　promoting　the　progress　of　their　country

towards　real　wealth　and　greatness。　This　would　be　still　more　the

case　were　they　to　attempt；　in　the　same　manner；　to　monopolize　to

themselves　their　whole　exportation　trade。

　　　　　The　course　of　human　prosperity；　indeed；　seems　scarce　ever　to

have　been　of　so　long　continuance　as　to　enable　any　great　country

to　acquire　capital　sufficient　for　all　those　three　purposes；

unless　perhaps；　we　give　credit　to　the　wonderful　accounts　of　the

wealth　and　cultivation　of　China；　of　those　of　ancient　Egypt；　and

of　the　ancient　state　of　Indostan。　Even　those　three　countries；　the

wealthiest；　according　to　all　accounts；　that　ever　were　in　the

world；　are　chiefly　renowned　for　their　superiority　in　agriculture

and　manufactures。　They　do　not　appear　to　have　been　eminent　for

foreign　trade。　The　ancient　Egyptians　had　a　superstitious

antipathy　to　the　sea；　a　superstition　nearly　of　the　same　kind

prevails　among　the　Indians；　and　the　Chinese　have　never　excelled

in　foreign　commerce。　The　greater　part　of　the　surplus　produce　of

all　those　three　countries　seems　to　have　been　always　exported　by

foreigners；　who　gave　in　exchange　for　it　something　else　for　which

they　found　a　demand　there；　frequently　gold　and　silver。

　　　　　It　is　thus　that　the　same　capital　will　in　any　country　put

into　motion　a　greater　or　smaller　quantity　of　productive　labour；

and　add　a　greater　or　smaller　value　to　the　annual　produce　of　its

land　and　labour；　according　to　the　different　proportions　in　which

it　is　employed　in　agriculture；　manufactures；　and　wholesale　trade。

The　difference；　too；　is　very　great；　according　to　the　different

sorts　of　wholesale　trade　in　which　any　part　of　it　is　employed。

　　　　　All　wholesale　trade；　all　buying　in　order　to　sell　again　by

wholesale；　may　be　reduced　to　three　different　sorts。　The　home

trade；　the　foreign　trade　of　consumption；　and　the　carrying　trade。

The　home　trade　is　employed　in　purchasing　in　one　part　of　the　same

country；　and　selling　in　another；　the　produce　of　the　industry　of

that　country。　It　comprehends　both　the　inland　and　the　coasting

trade。　The　foreign　trade　of　consumption　is　employed　in　purchasing

foreign　goods　for　home　consumption。　The　carrying　trade　is

employed　in　transacting　the　commerce　of　foreign　countries；　or　in

carrying　the　surplus　produce　of　one　to　another。

　　　　　The　capital　which　is　employed　in　purchasing　in　one　part　of

the　country　in　order　to　sell　in　another　the　produce　of　the

industry　of　that　country；　generally　replaces　by　every　such

operation　two　distinct　capitals　that　had　both　been　employed　in

the　agriculture　or　manufactures　of　that　country；　and　thereby

enables　them　to　continue　that　employment。　When　it　sends　out　from

the　residence　of　the　merchant　a　certain　value　of　commodities；　it

generally　brings　back　in　return　at　least　an　equal　value　of　other

commodities。　When　both　are　the　produce　of　domestic　industry；　it

necessarily　replaces　by　every　such　operation　two　distinct

capitals　which　had　both　been　employed　in　supporting　productive

labour；　and　thereby　enables　them　to　continue　that　support。　The

capital　which　sends　Scotch　manufactures　to　London；　and　brings

back　English　corn　and　manufactures　to　Edinburgh；　necessarily

replaces　by　every　such　operation；　two　British　capitals　which　had

both　been　employed　in　the　agriculture　or　manufactures　of　Great

Britain。

　　　　　The　capital　employed　in　purchasing　foreign　goods　for　home

consumption；　when　this　purchase　is　made　with　the　produce　of

domestic　industry；　replaces　too；　by　every　such　operation；　two

distinct　capitals；　but　one　of　them　only　is　employed　in　supporting

domestic　industry。　The　capital　which　sends　British　goods　to

Portugal；　and　brings　back　Portuguese　goods　to　Great　Britain；

replaces　by　every　such　operation　only　one　British　capital。　The

other　is　a　Portuguese　one。　Though　the　returns；　therefore；　of　the

foreign　trade　of　consumption　should　be　as　quick　as　those　of　the

home　trade；　the　capital　employed　in　it　will　give　but　one　half　the

encouragement　to　the　industry　or　productive　labour　of　the

country。

　　　　　But　the　returns　of　the　foreign　trade　of　consumption　are　very

seldom　so　quick　as　those　of　the　home　trade。　The　returns　of　the

home　trade　generally　come　in　before　the　end　of　the　year；　and

sometimes　three　or　four　times　in　the　year。　The　returns　of　the

foreign　trade　of　consumption　seldom　come　in　before　the　end　of　the

year；　and　sometimes　not　till　after　two　or　three　years。　A　capital；

therefore；　employed　in　the　home　trade　will　sometimes　make　twelve

operations；　or　be　sent　out　and　returned　twelve　times；　before　a

capital　employed　in　the　foreign　trade　of　consumption　has　made

one。　If　the　capitals　are　equal；　therefore；　the　one　will　give

four…and…twenty　times　more　encouragement　and　support　to　the

industry　of　the　country　than　the　other。

　　　　　The　foreign　goods　for　home　consumption　may　sometimes　be

purchased；　not　with　the　produce　of　domestic　industry；　but　with

some　other　foreign　goods。　These　last；　however；　must　have　been

purchased　either　immediately　with　the　produce　of　domestic

industry；　or　with　something　else　that　had　been　purchased　with　it；

for；　the　case　of　war　and　conquest　excepted；　foreign　goods　can

ever　be　acquired　but　in　exchange　for　something　that　had　been

produced　at　home；　either　immediately；　or　after　two　or　more

different　exchanges。　The　effects；　therefore；　of　a　capital

employed　in　such　a　roundabout　foreign　trade　of　consumption；　are；

in　every　respect；　the　same　as　those　of　one　employed　in　the　most

direct　trade　of　the　same　kind；　except　that　the　final　returns　are

likely　to　be　still　more　distant；　as　they　must　depend　upon　the

returns　of　two　or　three　distinct　foreign　trades。　If　the　flax　and

hemp　of　Riga　are　purchased　with　the　tobacco　of　Virginia；　which

had　been　purchased　with　British　manufactures；　the　merchant　must

wait　for　the　returns　of　two　distinct　foreign　trades　before　he　can

employ　the　same　capital　in　re…purchasing　a　like　quantity　of

British　manufactures。　If　the　tobacco　of　Virginia　had　been

purchased；　not　with　British　manufactures；　but　with　the　sugar　and

rum　of　Jamaica　which　had　been　purchased　with　those　manufactures；

he　must　wait　for　the　returns　of　three。　If　those　two　or　three

distinct　foreign　trades　should　happen　to　be　carried　on　by　two　or

three　distinct　merchants；　of　whom　the　second　buys　the　goods

imported　by　the　firs