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three　distinct　merchants；　of　whom　the　second　buys　the　goods

imported　by　the　first；　and　the　third　buys　those　imported　by　the

second；　in　order　to　export　them　again；　each　merchant　indeed　will

in　this　case　receive　the　returns　of　his　own　capital　more　quickly；

but　the　final　returns　of　the　whole　capital　employed　in　the　trade

will　be　just　as　slow　as　ever。　Whether　the　whole　capital　employed

in　such　a　round…about　trade　belong　to　one　merchant　or　to　three

can　make　no　difference　with　regard　to　the　country；　though　it　may

with　regard　to　the　particular　merchants。　Three　times　a　greater

capital　must　in　both　cases　be　employed　in　order　to　exchange　a

certain　value　of　British　manufactures　for　a　certain　quantity　of

flax　and　hemp　than　would　have　been　necessary　had　the　manufactures

and　the　flax　and　hemp　been　directly　exchanged　for　one　another。

The　whole　capital　employed；　therefore；　in　such　a　round…about

foreign　trade　of　consumption　will　generally　give　less

encouragement　and　support　to　the　productive　labour　of　the　country

than　an　equal　capital　employed　in　a　more　direct　trade　of　the　same

kind。

　　　　　Whatever　be　the　foreign　commodity　with　which　the　foreign

goods　for　home　consumption　are　purchased；　it　can　occasion　no

essential　difference　either　in　the　nature　of　the　trade；　or　in　the

encouragement　and　support　which　it　can　give　to　the　productive

labour　of　the　country　from　which　it　is　carried　on。　If　they　are

purchased　with　the　gold　of　Brazil；　for　example；　or　with　the

silver　of　Peru；　this　gold　and　silver；　like　the　tobacco　of

Virginia；　must　have　been　purchased　with　something　that　either　was

the　produce　of　the　industry　of　the　country；　or　that　had　been

purchased　with　something　else　that　was　so。　So　far；　therefore；　as

the　productive　labour　of　the　country　is　concerned；　the　foreign

trade　of　consumption　which　is　carried　on　by　means　of　gold　and

silver　has　all　the　advantages　and　all　the　inconveniences　of　any

other　equally　round…about　foreign　trade　of　consumption；　and　will

replace　just　as　fast　or　just　as　slow　the　capital　which　is

immediately　employed　in　supporting　that　productive　labour。　It

seems　even　to　have　one　advantage　over　any　other　equally

roundabout　foreign　trade。　The　transportation　of　those　metals　from

one　place　to　another；　on　account　of　their　small　bulk　and　great

value；　is　less　expensive　than　that　of　almost　any　other　foreign

goods　of　equal　value。　Their　freight　is　much　less；　and　their

insurance　not　greater；　and　no　goods；　besides；　are　less　liable　to

suffer　by　the　carriage。　An　equal　quantity　of　foreign　goods；

therefore；　may　frequently　be　purchased　with　a　smaller　quantity　of

the　produce　of　domestic　industry；　by　the　intervention　of　gold　and

silver；　than　by　that　of　any　other　foreign　goods。　The　demand　of

the　country　may　frequently；　in　this　manner；　be　supplied　more

completely　and　at　a　smaller　expense　than　in　any　other。　Whether；

by　the　continual　exportation　of　those　metals；　a　trade　of　this

kind　is　likely　to　impoverish　the　country　from　which　it　is　carried

on；　in　any　other　way；　I　shall　have　occasion　to　examine　at　great

length　hereafter。

　　　　　That　part　of　the　capital　of　any　country　which　is　employed　in

the　carrying　trade　is　altogether　withdrawn　from　supporting　the

productive　labour　of　that　particular　country；　to　support　that　of

some　foreign　countries。　Though　it　may　replace　by　every　operation

two　distinct　capitals；　yet　neither　of　them　belongs　to　that

particular　country。　The　capital　of　the　Dutch　merchant；　which

carries　the　corn　of　Poland　to　Portugal；　and　brings　back　the

fruits　and　wines　of　Portugal　to　Poland；　replaces　by　every　such

operation　two　capitals；　neither　of　which　had　been　employed　in

supporting　the　productive　labour　of　Holland；　but　one　of　them　in

supporting　that　of　Poland；　and　the　other　that　of　Portugal。　The

profits　only　return　regularly　to　Holland；　and　constitute　the

whole　addition　which　this　trade　necessarily　makes　to　the　annual

produce　of　the　land　and　labour　of　that　country。　When；　indeed；　the

carrying　trade　of　any　particular　country　is　carried　on　with　the

ships　and　sailors　of　that　country；　that　part　of　the　capital

employed　in　it　which　pays　the　freight　is　distributed　among；　and

puts　into　motion；　a　certain　number　of　productive　labourers　of

that　country。　Almost　all　nations　that　have　had　any　considerable

share　of　the　carrying　trade　have；　in　fact；　carried　it　on　in　this

manner。　The　trade　itself　has　probably　derived　its　name　from　it；

the　people　of　such　countries　being　the　carriers　to　other

countries。　It　does　not；　however；　seem　essential　to　the　nature　of

the　trade　that　it　should　be　so。　A　Dutch　merchant　may；　for

example；　employ　his　capital　in　transacting　the　commerce　of　Poland

and　Portugal；　by　carrying　part　of　the　surplus　produce　of　the　one

to　the　other；　not　in　Dutch；　but　in　British　bottoms。　It　may　be

presumed　that　he　actually　does　so　upon　some　particular　occasions。

It　is　upon　this　account；　however；　that　the　carrying　trade　has

been　supposed　peculiarly　advantageous　to　such　a　country　as　Great

Britain；　of　which　the　defence　and　security　depend　upon　the　number

of　its　sailors　and　shipping。　But　the　same　capital　may　employ　as

many　sailors　and　shipping；　either　in　the　foreign　trade　of

consumption；　or　even　in　the　home　trade；　when　carried　on　by

coasting　vessels；　as　it　could　in　the　carrying　trade。　The　number

of　sailors　and　shipping　which　any　particular　capital　can　employ

does　not　depend　upon　the　nature　of　the　trade；　but　partly　upon　the

bulk　of　the　goods　in　proportion　to　their　value；　and　partly　upon

the　distance　of　the　ports　between　which　they　are　to　be　carried；

chiefly　upon　the　former　of　those　two　circumstances。　The　coal

trade　from　Newcastle　to　London；　for　example；　employs　more

shipping　than　all　the　carrying　trade　of　England；　though　the　ports

are　at　no　great　distance。　To　force；　therefore；　by　extraordinary

encouragements；　a　larger　share　of　the　capital　of　any　country　into

the　carrying　trade　than　what　would　naturally　go　to　it　will　not

always　necessarily　increase　the　shipping　of　that　country。

　　　　　The　capital；　therefore；　employed　in　the　home　trade　of　any

country　will　generally　give　encouragement　and　support　to　a

greater　quantity　of　productive　labour　in　that　country；　and

increase　the　value　of　its　annual　produce　more　than　an　equal

capital　employed　in　the　foreign　trade　of　consumption：　and　the

capital　employed　in　this　latter　trade　has　in　both　these　respects

a　still　greater　advantage　over　an　equal　capital　employed　in　the

carrying　trade。　The　riches；　and　so　far　as　power　depends　upon

riches；　the　power　of　every　country　must　always　be　in　proportion

to　the　value　of　its　annual　produce；　the　fund　from　which　all　taxes

must　ultimately　be　paid。　But　the　great　object　of　the　political

economy　of　every　country　is　to　increase　the　riches　and　power　of

that　country。　It　ought；　therefore；　to　give　no　preference　nor

superior　encouragement　to　the　foreign　trade　of　consumption　above

the　home　trade；　nor　to　the　carrying　trade　above　either　of　the

other　two。　It　ought　neither　to　force　nor　to　allure　into　either　of

those　two　channels　a　greater　share　of　the　capital　of　the　country

than　what　would　naturally　flow　into　them　of　its　own　accord。

　　　　　When　the　produce　of　any　particular　branch　of　industry

exceeds　what　the　demand　of　the　country　requires；　the　surplus　must

be　sent　abroad　and　exchanged　for　something　for　which　there　is　a

demand　at　home。　Without　such　exportation　a　part　of　the　productive

labour　of　the　country　must　cease；　and　the　value　of　its　annual

produce　diminish。　The　land　and　labour　of　Great　Britain　produce

generally　more　corn；　woollens；　and　hardware　than　the　demand　of

the　home　market　requires。　The　surplus　part　of　them；　therefore；

must　be　sent　abroad；　and　exchanged　for　something　for　which　there

is　a　demand　at　home。　It　is　only　by　means　of　such　exportation　that

this　surplus　can　acquire　a　value　sufficient　to　compensate　the

labour　and　expense　of　producing　it。　The　neighbourhood　of　the

sea…coast；　and　the　banks　of　all　navigable　rivers；　are

advantageous　situations　for　industry；　only　because　they

facilitate　the　exportation　and　exchange　of　such　surplus　produce

for　something　else　which　is　more　in　demand　there。

　　　　　When　the　foreign　goods　which　are　thus　purchased　with　the

surplus　produce　of　domestic　industry　exceed　the　demand　of　the

home　market；　the　surplus　part　of　them　must　be　sent　abroad　again

and　exchanged　for　something　more　in　demand　at　home。　About

ninety…six　thousand　hogsheads　of　tobacco　are　annually　purchased

in　Virginia　and　Maryland　with　a　part　of　the　surplus　produce　of

British　industry。　But　the　demand　of　Great　Britain　does　not

require；　perhaps；　more　than　fourteen　thousand。　If　the　remaining

eighty…two　thousand；　therefore；　could　not　be　sent　abroad　and

exchanged　for　something　more　in　demand　at　home；　the　importation

of　them　must　cease　immediately；　and　with　it　the　productive　labour

of　all　those　inhabitants　of　Great　Britain；　who　are　at　present

employed　in　preparing　the　goods　with　which　these　eighty…two

thousand　hogsheads　are　annually　purchased。　Those　goods；　which　are

part　of　the　produce　of　the　land　and　labour　of　Great　Britain；

having　no　market　at　home；　and　being　deprived　of　that　which　they

had　abroad；　must　cease　to　be　produced。　The　most　round…about

foreign　trade　of　consumption；　therefore　may；　upon　some　occasions；

be　as　necessary　for　supporting　the　productive　labour　of　the

country；　and　the　value　of　its　annual　produce；　as　the　most　direct。

　　　　　When　the　capital　stock　of　any　country　is　increased　to　such　a

degree　that　it　cannot　be　all　employed　in　supplying　the

consumption　and　supporting　the　productive　labour　of　that

particular　country；　the　surplus　part　of　it　naturally　disgorges

itself　into　the　carrying　trade；　and　is　employed　in　performing　the

same　offices　to　other　countries。　The　carrying　trade　is　the

natural　effect　and　symptom　of　great　national　wealth；　but　it　does

not　seem　to　be　the　natural　cause　of　it。　Those　statesmen　who　have

been　disposed　to　favour　it　with　particular　encouragements　seem　to

have　mistaken　the　effect　and　symptom　for　the　cause。　Holland；　in

proportion　to　the　extent　of　the　land　and　the　number　of　its

inhabitants；　by　far　the　ric