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     This double effect of drawing capital from all other trades;

and of raising the rate of profit somewhat higher than it

otherwise would have been in all trades; was not only produced by

this monopoly upon its first establishment; but has continued to

be produced by it ever since。

     First; this monopoly has been continually drawing capital

from all other trades to be employed in that of the colonies。

     Though the wealth of Great Britain has increased very much

since the establishment of the Act of Navigation; it certainly

has not increased in the same proportion as that of the colonies。

But the foreign trade of every country naturally increases in

proportion to its wealth; its surplus produce in proportion to

its whole produce; and Great Britain having engrossed to herself

almost the whole of what may be called the foreign trade of the

colonies; and her capital not having increased in the same

proportion as the extent of that trade; she could not carry it on

without continually withdrawing from other branches of trade some

part of the capital which had before been employed in them as

well as withholding from them a great deal more which would

otherwise have gone to them。 Since the establishment of the Act

of Navigation; accordingly; the colony trade has been continually

increasing; while many other branches of foreign trade;

particularly of that to other parts of Europe; have been

continually decaying。 Our manufactures for foreign sale; instead

of being suited; as before the Act of Navigation; to the

neighbouring market of Europe; or to the more distant one of the

countries which lie round the Mediterranean Sea; have; the

greater part of them; been accommodated to the still more distant

one of the colonies; to the market in which they have the

monopoly rather than to that in which they have many competitors。

The causes of decay in other branches of foreign trade; which; by

Sir Matthew Decker and other writers; have been sought for in the

excess and improper mode of taxation; in the high price of

labour; in the increase of luxury; etc。; may all be found in the

overgrowth of the colony trade。 The mercantile capital of Great

Britain; though very great; yet not being infinite; and though

greatly increased since the Act of Navigation; yet not being

increased in the same proportion as the colony trade; that trade

could not possibly be carried on without withdrawing some part of

that capital from other branches of trade; nor consequently

without some decay of those other branches。

     England; it must be observed; was a great trading country;

her mercantile capital was very great and likely to become still

greater and greater every day; not only before the Act of

Navigation had established the monopoly of the colony trade; but

before that trade was very considerable。 In the Dutch war; during

the government of Cromwell; her navy was superior to that of

Holland; and in that which broke out in the beginning of the

reign of Charles II; it was at last equal; perhaps superior; to

the united navies of France and Holland。 Its superiority;

perhaps; would scarce appear greater in the present times; at

least if the Dutch navy was to bear the same proportion to the

Dutch commerce now which it did then。 But this great naval power

could not; in either of those wars; be owing to the Act of

Navigation。 During the first of them the plan of that act had

been but just formed; and though before the breaking out of the

second it had been fully enacted by legal authority; yet no part

of it could have had time to produce any considerable effect; and

least of all that part which established the exclusive trade to

the colonies。 Both the colonies and their trade were

inconsiderable then in comparison of what they are now。 The

island of Jamaica was an unwholesome desert; little inhabited;

and less cultivated。 New York and New Jersey were in the

possession of the Dutch: the half of St。 Christopher's in that of

the French。 The island of Antigua; the two Carolinas;

Pennsylvania; Georgia; and Nova Scotia were not planted。

Virginia; Maryland; and New England were planted; and though they

were very thriving colonies; yet there was not; perhaps; at that

time; either in Europe or America; a single person who foresaw or

even suspected the rapid progress which they have since made in

wealth; population; and improvement。 The island of Barbadoes; in

short; was the only British colony of any consequence of which

the condition at that time bore any resemblance to what it is at

present。 The trade of the colonies; of which England; even for

some time after the Act of Navigation; enjoyed but a part (for

the Act of Navigation was not very strictly executed till several

years after it was enacted); could not at that time be the cause

of the great trade of England; nor of the great naval power which

was supported by that trade。 The trade which at that time

supported that great naval power was the trade of Europe; and of

the countries which lie round the Mediterranean Sea。 But the

share which Great Britain at present enjoys of that trade could

not support any such great naval power。 Had the growing trade of

the colonies been left free to all nations; whatever share of it

might have fallen to Great Britain; and a very considerable share

would probably have fallen to her; must have been all an addition

to this great trade of which she was before in possession。 In

consequence of the monopoly; the increase of the colony trade has

not so much occasioned an addition to the trade which Great

Britain had before as a total change in its direction。

     Secondly; this monopoly has necessarily contributed to keep

up the rate of profit in all the different branches of British

trade higher than it naturally would have been had all nations

been allowed a free trade to the British colonies。

     The monopoly of the colony trade; as it necessarily drew

towards that trade a greater proportion of the capital of Great

Britain than what would have gone to it of its own accord; so by

the expulsion of all foreign capitals it necessarily reduced the

whole quantity of capital employed in that trade below what it

naturally would have been in the case of a free trade。 But; by

lessening the competition of capitals in that branch of trade; it

necessarily raised the rate of profit in that branch。 By

lessening; too; the competition of British capitals in all other

branches of trade; it necessarily raised the rate of British

profit in all those other branches。 Whatever may have been; at

any particular period; since the establishment of the Act of

Navigation; the state or extent of the mercantile capital of

Great Britain; the monopoly of the colony trade must; during the

continuance of that state; have raised the ordinary rate of

British profit higher than it otherwise would have been both in

that and in all the other branches of British trade。 If; since

the establishment of the Act of Navigation; the ordinary rate of

British profit has fallen considerably; as it certainly has; it

must have fallen still lower; had not the monopoly established by

that act contributed to keep it up。

     But whatever raises in any country the ordinary rate of

profit higher than it otherwise would be; necessarily subjects

that country both to an absolute and to a relative disadvantage

in every branch of trade of which she has not the monopoly。

     It subjects her to an absolute disadvantage; because in such

branches of trade her merchants cannot get this greater profit

without selling dearer than they otherwise would do both the

goods of foreign countries which they import into their own; and

the goods of their own country which they export to foreign

countries。 Their own country must both buy dearer and sell

dearer; must both buy less and sell less; must both enjoy less

and produce less; than she otherwise would do。

     It subjects her to a relative disadvantage; because in such

branches of trade it sets other countries which are not subject

to the same absolute disadvantage either more above her or less

below her than they otherwise would be。 It enables them both to

enjoy more and to produce more in proportion to what she enjoys

and produces。 It renders their superiority greater or their

inferiority less than it otherwise would be。 By raising the price

of her produce above what it otherwise would be; it enables the

merchants of other countries to undersell her in foreign markets;

and thereby to jostle her out of almost all those branches of

trade; of which she has not the monopoly。

     Our merchants frequently complain of the high wages of

British labour as the cause of their manufactures being undersold

in foreign markets; but they are silent about the high profits of

stock。 They complain of the extravagant gain of other people; but

they say nothing of their own。 The high profits of British stock;

however; may contribute towards raising the price of British

manufactures in many cases as much; and in some perhaps more;

than the high wages of British labour。

     It is in this manner that the capital of Great Britain; one

may justly say; has partly been drawn and partly been driven from

the greater part of the different branches of trade of which she

has not the monopoly; from the trade of Europe in particular; and

from that of the countries which lie round the Mediterranean Sea。

     It has partly been drawn from those branches of trade by the

attraction of superior profit in the colony trade in consequence

of the continual increase of that trade; and of the continual

insufficiency of the capital which had carried it on one year to

carry it on the next。

     It has partly been driven from them by the advantage which

the high rate of profit; established in Great Britain; gives to

other countries in all the different branches of trade of which

Great Britain has not the monopoly。

     As the monopoly of the colony trade has drawn from those

other branches a part of the British capital which would

otherwise have been e

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