ThecontinualimportationsfromPeruandBrazilexceedtheeffectualdemandofthosecountries，andsinkthepriceofthosemetalstherebelowthatintheneighbouringcountries。If，onthecontrary，inanyparticularcountrytheirquantityfellshortoftheeffectualdemand，soastoraisetheirpriceabovethatoftheneighbouringcountries，thegovernmentwouldhavenooccasiontotakeanypainstoimportthem。Ifitwereeventotakepainstopreventtheirimportation，itwouldnotbeabletoeffectuateit。Thosemetals，whentheSpartanshadgotwherewithaltopurchasethem，brokethroughallthebarrierswhichthelawsofLycurgusopposedtotheirentranceintoLacedemon。AllthesanguinarylawsofthecustomsarenotabletopreventtheimportationoftheteasoftheDutchandGottenburghEastIndiaCompanies，becausesomewhatcheaperthanthoseoftheBritishcompany。Apoundoftea，however，isaboutahundredtimesthebulkofoneofthehighestprices，sixteenshillings，thatiscommonlypaidforitinsilver，andmorethantwothousandtimesthebulkofthesamepriceingold，andconsequentlyjustsomanytimesmoredifficulttosmuggle。
　　Itispartlyowingtotheeasytransportationofgoldandsilverfromtheplaceswheretheyaboundtothosewheretheyarewantedthatthepriceofthosemetalsdoesnotfluctuatecontinuallylikethatofthegreaterpartofothercommodities，whicharehinderedbytheirbulkfromshiftingtheirsituationwhenthemarkethappenstobeeitheroverorunder—stockedwiththem。The。priceofthosemetals，indeed，isnotaltogetherexemptedfromvariation，butthechangestowhichitisliablearegenerallyslow，gradualanduniform。InEurope，forexample，itissupposed，withoutmuchfoundation，perhaps，thatduringthecourseofthepresentandprecedingcenturytheyhavebeenconstantly，butgradually，sinkingintheirvalue，onaccountofthecontinualimportationsfromtheSpanishWestIndies。Buttomakeanysuddenchangeinthepriceofgoldandsilver，soastoraiseorloweratonce，sensiblyandremarkably，themoneypriceofallothercommodities，requiressucharevolutionincommerceasthatoccasionedbythediscoveryofAmerica。
　　If，notwithstandingallthis，goldandsilvershouldatanytimefallshortinacountrywhichhaswherewithaltopurchasethem，therearemoreexpedientsforsupplyingtheirplacethanthatofalmostanyothercommodity。Ifthematerialsofmanufacturearewanted，industrymuststop。Ifprovisionsarewanted，thepeoplemuststarve。Butifmoneyiswanted，barterwillsupplyitsplace，thoughwithagooddealofinconveniency。
　　Buyingandsellinguponcredit，andthedifferentdealerscompensatingtheircreditswithoneanother，onceamonthoronceayear，willsupplyitwithlessinconveniency。Awell—regulatedpapermoneywillsupplyit，notonlywithoutanyinconveniency，but，insomecases，withsomeadvantages。Uponeveryaccount，therefore，theattentionofgovernmentneverwassounnecessarilyemployedaswhendirectedtowatchoverthepreservationorincreaseofthequantityofmoneyinanycountry。
　　Nocomplaint，however，ismorecommonthanthatofascarcityofmoney。Money，likewine，mustalwaysbescarcewiththosewhohaveneitherwherewithaltobuyitnorcredittoborrowit。Thosewhohaveeitherwillseldombeinwanteitherofthemoneyorofthewinewhichtheyhaveoccasionfor。Thiscomplaint，however，ofthescarcityofmoneyisnotalwaysconfinedtoimprovidentspendthrifts。Itissometimesgeneralthroughawholemercantiletownandthecountryinitsneighbourhood。Overtradingisthecommoncauseofit。Sobermen，whoseprojectshavebeendisproportionedtotheircapitals，areaslikelytohaveneitherwherewithaltobuymoneynorcredittoborrowit，asprodigalswhoseexpensehasbeendisproportionedtotheirrevenue。Beforetheirprojectscanbebroughttobear，theirstockisgone，andtheircreditwithit。Theyrunabouteverywheretoborrowmoney，andeverybodytellsthemthattheyhavenonetolend。Evensuchgeneralcomplaintsofthescarcityofmoneydonotalwaysprovethattheusualnumberofgoldandsilverpiecesarenotcirculatinginthecountry，butthatmanypeoplewantthosepieceswhohavenothingtogiveforthem。Whentheprofitsoftradehappentobegreaterthanordinary，overtradingbecomesageneralerrorbothamonggreatandsmalldealers。Theydonotalwayssendmoremoneyabroadthanusual，buttheybuyuponcredit，bothathomeandabroad，anunusualquantityofgoods，whichtheysendtosomedistantmarketinhopesthatthereturnswillcomeinbeforethedemandforpayment。Thedemandcomesbeforethereturns，andtheyhavenothingathandwithwhichtheycaneitherpurchasemoney，orgivesolidsecurityforborrowing。Itisnotanyscarcityofgoldandsilver，butthedifficultywhichsuchpeoplefindinborrowing，andwhichtheircreditorsfindingettingpayment，thatoccasionsthegeneralcomplaintofthescarcityofmoney。
　　Itwouldbetooridiculoustogoaboutseriouslytoprovethatwealthdoesnotconsistinmoney，oringoldandsilver;butinwhatmoneypurchases，andisvaluableonlyforpurchasing。
　　Money，nodoubt，makesalwaysapartofthenationalcapital;butithasalreadybeenshownthatitgenerallymakesbutasmallpart，andalwaysthemostunprofitablepartofit。
　　Itisnotbecausewealthconsistsmoreessentiallyinmoneythaningoodsthatthemerchantfinditgenerallymoreeasytobuygoodswithmoneythantobuymoneywithgoods;butbecausemoneyistheknownandestablishedinstrumentofcommerce，forwhicheverythingisreadilygiveninexchange，butwhichisnotalwayswithequalreadinesstobegotinexchangeforeverything。
　　Thegreaterpartofgoods，besides，aremoreperishablethanmoney，andhemayfrequentlysustainamuchgreaterlossbykeepingthem。Whenhisgoodsareuponhand，too，heismoreliabletosuchdemandsformoneyashemaynotbeabletoanswerthanwhenhehasgottheirpriceinhiscoffers。Overandaboveallthis，hisprofitarisesmoredirectlyfromsellingthanfrombuying，andheisuponalltheseaccountsgenerallymuchmoreanxioustoexchangehisgoodsformoneythanhismoneyforgoods。
　　Butthoughaparticularmerchant，withabundanceofgoodsinhiswarehouse，maysometimesberuinedbynotbeingabletosellthemintime，anationorcountryisnotliabletothesameaccident。
　　Thewholecapitalofamerchantfrequentlyconsistsinperish，ablegoodsdestinedforpurchasingmoney。Butitisbutaverysmallpartoftheannualproduceofthelandandlabourofacountrywhichcaneverbedestinedforpurchasinggoldandsilverfromtheirneighbours。Thefargreaterpartiscirculatedandconsumedamongthemselves;andevenofthesurpluswhichissentabroad，thegreaterpartisgenerallydestinedforthepurchaseofotherforeigngoods。Thoughgoldandsilver，therefore，couldnotbehadinexchangeforthegoodsdestinedtopurchasethem，thenationwouldnotberuined。Itmight，indeed，suffersomelossandinconveniency，andbeforceduponsomeofthoseexpedientswhicharenecessaryforsupplyingtheplaceofmoney。
　　Theannualproduceofitslandandlabour，however，wouldbethesame，orverynearlythesame，asusual，becausethesame，orverynearlythesame，consumablecapitalwouldbeemployedinmaintainingit。Andthoughgoodsdonotalwaysdrawmoneysoreadilyasmoneydrawsgoods，inthelongruntheydrawitmorenecessarilythanevenitdrawsthem。Goodscanservemanyotherpurposesbesidespurchasingmoney，butmoneycanservenootherpurposebesidespurchasinggoods。Money，therefore，necessarilyrunsaftergoods，butgoodsdonotalwaysornecessarilyrunaftermoney。Themanwhobuysdoesnotalwaysmeantosellagain，butfrequentlytouseortoconsume;whereashewhosellsalwaysmeanstobuyagain。Theonemayfrequentlyhavedonethewhole，buttheothercanneverhavedonemorethantheone—halfofhisbusiness。Itisnotforitsownsakethatmendesiremoney，butforthesakeofwhattheycanpurchasewithit。
　　Consumablecommodities，itissaid，aresoondestroyed;
　　whereasgoldandsilverareofamoredurablenature，and，wereitnotforthiscontinualexportation，mightbeaccumulatedforagestogether，totheincredibleaugmentationoftherealwealthofthecountry。Nothing，therefore，itispretended，canbemoredisadvantageoustoanycountrythanthetradewhichconsistsintheexchangeofsuchlastingforsuchperishablecommodities。Wedonot，however，reckonthattradedisadvantageouswhichconsistsintheexchangeofthehardwareofEnglandforthewinesofFrance;andyethardwareisaverydurablecommodity，andwereitnotforthiscontinualexportationmight，too，beaccumulatedforagestogether，totheincredibleaugmentationofthepotsandpansofthecountry。Butitreadilyoccursthatthenumberofsuchutensilsisineverycountrynecessarilylimitedbytheusewhichthereisforthem;thatitwouldbeabsurdtohavemorepotsandpansthanwerenecessaryforcookingthevictualsusuallyconsumedthere;andthatifthequantityofvictualsweretoincrease，thenumberofpotsandpanswouldreadilyincreasealongwithit，apartoftheincreasedquantityofvictualsbeingemployedinpurchasingthem，orinmaintaininganadditionalnumberofworkmenwhosebusinessitwastomakethem。Itshouldasreadilyoccurthatthequantityofgoldandsilverisineverycountrylimitedbytheusewhichthereisforthosemetals;thattheiruseconsistsincirculatingcommoditiesascoin，andinaffordingaspeciesofhouseholdfurnitureasplate;thatthequantityofcoinineverycountryisregulatedbythevalueofthecommoditieswhicharetobecirculatedbyit:increasethatvalue，andimmediatelyapartofitwillbesentabroadtopurchase，whereveritistobehad，theadditionalquantityofcoinrequisiteforcirculatingthem:thatthequantityofplateisregulatedbythenumberandwealthofthoseprivatefamilieswhochoosetoindulgethemselvesinthatsortofmagnificence:
　　increasethenumberandwealthofsuchfamilies，andapartofthisincreasedwealthwillmostprobablybeemployedinpurchasing，whereveritistobefound，anadditionalquantityofplate:thattoattempttoincreasethewealthofanycountry，eitherbyintroducingorbydetaininginitanunnecessaryquantityofgoldandsilver，isasabsurdasitwouldbetoattempttoincreasethegoodcheerofprivatefamiliesbyobligingthemtokeepanunnecessarynumberofkitchenutensils。
　　Astheexpenseofpurchasingthoseunnecessaryutensilswoulddiminishinsteadofincreasingeitherthequantityofgoodnessofthefamilyprovisions，sotheexpenseofpurchasinganunnecessaryquantityofgoldandsilvermust，ineverycountry，asnecessarilydiminishthewealthwhichfeeds，clothes，andlodges，whichmaintainsandemploysthepeople。Goldandsilver，whetherintheshapeofcoinorofplate，areutensils，itmustberemembered，asmuchasthefurnitureofthekitchen。Increasetheuseforthem，increasetheconsumablecommoditieswhicharetobecirculated，managed，andpreparedbymeansofthem，andyouwillinfalliblyincreasethequantity;butifyouattempt，byextraordinarymeans，toincreasethequantity，youwillasinfalliblydiminishtheuseandeventhequantitytoo，whichinthosemetalscanneverbegreaterthanwhattheuserequires。
　　Weretheyevertobeaccumulatedbeyondthisquantity，theirtransportationissoeasy，andthelosswhichattendstheirlyingidleandunemployedsogreat，thatnolawcouldpreventtheirbeingimmediatelysentoutofthecountry。
　　Itisnotalwaysnecessarytoaccumulategoldandsilverinordertoenableacountrytocarryonforeignwars，andtomaintainfleetsandarmiesindistantcountries。Fleetsandarmiesaremaintained，notwithgoldandsilver，butwithconsumablegoods。Thenationwhich，fromtheannualproduceofitsdomesticindustry，fromtheannualrevenuearisingoutofitslands，labour，andconsumablestock，haswherewithaltopurchasethoseconsumablegoodsindistantcountries，canmaintainforeignwarsthere。
　　Anationmaypurchasethepayandprovisionsofanarmyinadistantcountrythreedifferentways:bysendingabroadeither，first，somepartofitsaccumulatedgoldandsilver，or，secondly，somepartoftheannualproduceofitsmanufactures;
　　or，lastofall，somepartofitsannualrudeproduce。
　　Thegoldandsilverwhichcanproperlybeconsideredasaccumulatedorstoredupinanycountrymaybedistinguishedintothreeparts:first，thecirculatingmoney;secondly，theplateofprivatefamilies;and，lastofall，themoneywhichmayhavebeencollectedbymanyyears’parsimony，andlaidupinthetreasuryoftheprince。
　　Itcanseldomhappenthatmuchcanbesparedfromthecirculatingmoneyofthecountry;becauseinthattherecanseldombemuchredundancy。Thevalueofgoodsannuallyboughtandsoldinanycountryrequiresacertainquantityofmoneytocirculateanddistributethemtotheirproperconsumers，andcangiveemploymenttonomore。Thechannelofcirculationnecessarilydrawstoitselfasumsufficienttofillit，andneveradmitsanymore。Something，however，isgenerallywithdrawnfromthischannelinthecaseofforeignwar。Bythegreatnumberofpeoplewhoaremaintainedabroad，feweraremaintainedathome。Fewergoodsarecirculatedthere，andlessmoneybecomesnecessarytocirculatethem。Anextraordinaryquantityofpapermoney，ofsomesortorother，suchasexchequernotes，navybills，andbankbillsinEngland，isgenerallyissueduponsuchoccasions，andbysupplyingtheplaceofcirculatinggoldandsilver，givesanopportunityofsendingagreaterquantityofitabroad。Allthis，however，couldaffordbutapoorresourceformaintainingaforeignwarofgreatexpenseandseveralyearsduration。
　　Themeltingdowntheplateofprivatefamilieshasuponeveryoccasionbeenfoundastillmoreinsignificantone。TheFrench，inthebeginningofthelastwar，didnotderivesomuchadvantagefromthisexpedientastocompensatethelossofthefashion。
　　Theaccumulatedtreasuresoftheprincehave，informertimes，affordedamuchgreaterandmorelastingresource。Inthepresenttimes，ifyouexceptthekingofPrussia，toaccumulatetreasureseemstobenopartofthepolicyofEuropeanprinces。
　　Thefundswhichmaintainedtheforeignwarsofthepresentcentury，themostexpensiveperhapswhichhistoryrecords，seemtohavehadlittledependencyupontheexportationeitherofthecirculatingmoney，oroftheplateofprivatefamilies，orofthetreasureoftheprince。ThelastFrenchwarcostGreatBritainupwardsofninetymillions，includingnotonlytheseventy—fivemillionsofnewdebtthatwascontracted，buttheadditionaltwoshillingsinthepoundland—tax，andwhatwasannuallyborrowedofthesinkingfund。Morethantwo—thirdsofthisexpensewerelaidoutindistantcountries;inGermany，Portugal，America，intheportsoftheMediterranean，intheEastandWestIndies。ThekingsofEnglandhadnoaccumulatedtreasure。Weneverheardofanyextraordinaryquantityofplatebeingmelteddown。Thecirculatinggoldandsilverofthecountryhadnotbeensupposedtoexceedeighteenmillions。Sincethelaterecoinageofthegold，however，itisbelievedtohavebeenagooddealunder—rated。Letussuppose，therefore，accordingtothemostexaggeratedcomputationwhichIremembertohaveeitherseenorheardof，that，goldandsilvertogether，itamountedtothirtymillions。Hadthewarbeencarriedonbymeansofourmoney，thewholeofitmust，evenaccordingtothiscomputation，havebeensentoutandreturnedagainatleasttwiceinaperiodofbetweensixandsevenyears。Shouldthisbesupposed，itwouldaffordthemostdecisiveargumenttodemonstratehowunnecessaryitisforgovernmenttowatchoverthepreservationofmoney，sinceuponthissuppositionthewholemoneyofthecountrymusthavegonefromitandreturnedtoitagain，twodifferenttimesinsoshortaperiod，withoutanybody’sknowinganythingofthematter。Thechannelofcirculation，however，neverappearedmoreemptythanusualduringanypartofthisperiod。Fewpeoplewantedmoneywhohadwherewithaltopayforit。Theprofitsofforeigntrade，indeed，weregreaterthanusualduringthewholewar;butespeciallytowardstheendofit。Thisoccasioned，whatitalwaysoccasions，ageneralovertradinginallthepartsofGreatBritain;andthisagainoccasionedtheusualcomplaintofthescarcityofmoney，whichalwaysfollowsovertrading。Manypeoplewantedit，whohadneitherwherewithaltobuyit，norcredittoborrowit;andbecausethedebtorsfounditdifficulttoborrow，thecreditorsfounditdifficulttogetpayment。Goldandsilver，however，weregenerallytobehadfortheirvalue，bythosewhohadthatvaluetogiveforthem。
　　Theenormousexpenseofthelatewar，therefore，musthavebeenchieflydefrayed，notbytheexportationofgoldandsilver，butbythatofBritishcommoditiesofsomekindorother。Whenthegovernment，orthosewhoactedunderthem，contractedwithamerchantforaremittancetosomeforeigncountry，hewouldnaturallyendeavourtopayhisforeigncorrespondent，uponwhomhehadgrantedabill，bysendingabroadrathercommoditiesthangoldandsilver。IfthecommoditiesofGreatBritainwerenotindemandinthatcountry，hewouldendeavourtosendthemtosomeothercountry，inwhichhecouldpurchaseabilluponthatcountry。Thetransportationofcommodities，whenproperlysuitedtothemarket，isalwaysattendedwithaconsiderableprofit;
　　whereasthatofgoldandsilverisscarceeverattendedwithany。
　　Whenthosemetalsaresentabroadinordertopurchaseforeigncommodities，themerchant’sprofitarises，notfromthepurchase，butfromthesaleofthereturns。Butwhentheyaresentabroadmerelytopayadebt，hegetsnoreturns，andconsequentlynoprofit。Henaturally，therefore，exertshisinventiontofindoutawayofpayinghisforeigndebtsratherbytheexportationofcommoditiesthanbythatofgoldandsilver。ThegreatquantityofBritishgoodsexportedduringthecourseofthelatewar，withoutbringingbackanyreturns，isaccordinglyremarkedbytheauthorofThePresentStateoftheNation。
　　Besidesthethreesortsofgoldandsilverabovementioned，thereisinallgreatcommercialcountriesagooddealofbullionalternatelyimportedandexportedforthepurposesofforeigntrade。Thisbullion，asitcirculatesamongdifferentcommercialcountriesinthesamemannerasthenationalcoincirculatesineveryparticularcountry，maybeconsideredasthemoneyofthegreatmercantilerepublic。Thenationalcoinreceivesitsmovementanddirectionfromthecommoditiescirculatedwithintheprecinctsofeachparticularcountry:themoneyofthemercantilerepublic，fromthosecirculatedbetweendifferentcountries。Bothareemployedinfacilitatingexchanges，theonebetweendifferentindividualsofthesame，theotherbetweenthoseofdifferentnations。Partofthismoneyofthegreatmercantilerepublicmayhavebeen，andprobablywas，employedincarryingonthelatewar。Intimeofageneralwar，itisnaturaltosupposethatamovementanddirectionshouldbeimpresseduponit，differentfromwhatitusuallyfollowsinprofoundpeace;thatitshouldcirculatemoreabouttheseatofthewar，andbemoreemployedinpurchasingthere，andintheneighbouringcountries，thepayandprovisionsofthedifferentarmies。ButwhateverpartofthismoneyofthemercantilerepublicGreatBritainmayhaveannuallyemployedinthismanner，itmusthavebeenannuallypurchased，eitherwithBritishcommodities，orwithsomethingelsethathadbeenpurchasedwiththem;whichstillbringsusbacktocommodities，totheannualproduceofthelandandlabourofthecountry，astheultimateresourceswhichenabledustocarryonthewar。Itisnaturalindeedtosupposethatsogreatanannualexpensemusthavebeendefrayedfromagreatannualproduce。Theexpenseof1761，forexample，amountedtomorethannineteenmillions。Noaccumulationcouldhavesupportedsogreatanannualprofusion。Thereisnoannualproduceevenofgoldandsilverwhichcouldhavesupportedit。ThewholegoldandsilverannuallyimportedintobothSpainandPortugal，accordingtothebestaccounts，doesnotcommonlymuchexceedsixmillionssterling，which，insomeyears，wouldscarcehavepaidfourmonth’sexpenseofthelatewar。
　　Thecommoditiesmostproperforbeingtransportedtodistantcountries，inordertopurchasethereeitherthepayandprovisionsofanarmy，orsomepartofthemoneyofthemercantilerepublictobeemployedinpurchasingthem，seemtobethefinerandmoreimprovedmanufactures;suchascontainagreatvalueinasmallbulk，andcan，therefore，beexportedtoagreatdistanceatlittleexpense。Acountrywhoseindustryproducesagreatannualsurplusofsuchmanufactures，whichareusuallyexportedtoforeigncountries，maycarryonformanyyearsaveryexpensiveforeignwarwithouteitherexportinganyconsiderablequantityofgoldandsilver，orevenhavinganysuchquantitytoexport。Aconsiderablepartoftheannualsurplusofitsmanufacturesmust，indeed，inthiscasebeexportedwithoutbringingbackanyreturnstothecountry，thoughitdoestothemerchant;thegovernmentpurchasingofthemerchanthisbillsuponforeigncountries，inordertopurchasetherethepayandprovisionsofanarmy。Somepartofthissurplus，however，maystillcontinuetobringbackareturn。Themanufacturers，duringthewar，willhaveadoubledemanduponthem，andbecalledupon，first，toworkupgoodstobesentabroad，forpayingthebillsdrawnuponforeigncountriesforthepayandprovisionsofthearmy;and，secondly，toworkupsuchasarenecessaryforpurchasingthecommonreturnsthathadusuallybeenconsumedinthecountry。Inthemidstofthemostdestructiveforeignwar，therefore，thegreaterpartofmanufacturesmayfrequentlyflourishgreatly;and，onthecontrary，theymaydeclineonthereturnofthepeace。Theymayflourishamidsttheruinoftheircountry，andbegintodecayuponthereturnofitsprosperity。
　　ThedifferentstateofmanydifferentbranchesoftheBritishmanufacturesduringthelatewar，andforsometimeafterthepeace，mayserveasanillustrationofwhathasbeenjustnowsaid。
　　Noforeignwarofgreatexpenseordurationcouldconvenientlybecarriedonbytheexportationoftherudeproduceofthesoil。Theexpenseofsendingsuchaquantityofittoaforeigncountryasmightpurchasethepayandprovisionsofanarmywouldbetoogreat。Fewcountriesproducemuchmorerudeproducethanwhatissufficientforthesubsistenceoftheirowninhabitants。Tosendabroadanygreatquantityofit，therefore，wouldbetosendabroadapartofthenecessarysubsistenceofthepeople。Itisotherwisewiththeexportationofmanufactures。
　　Themaintenanceofthepeopleemployedinthemiskeptathome，andonlythesurpluspartoftheirworkisexported。Mr。HumefrequentlytakesnoticeoftheinabilityoftheancientkingsofEnglandtocarryon，withoutinterruption，anyforeignwaroflongduration。TheEnglish，inthosedays，hadnothingwherewithaltopurchasethepayandprovisionsoftheirarmiesinforeigncountries，buteithertherudeproduceofthesoil，ofwhichnoconsiderablepartcouldbesparedfromthehomeconsumption，orafewmanufacturesofthecoarsestkind，ofwhich，aswellasoftherudeproduce，thetransportationwastooexpensive。Thisinabilitydidnotarisefromthewantofmoney，butofthefinerandmoreimprovedmanufactures。BuyingandsellingwastransactedbymeansofmoneyinEnglandthenaswellasnow。Thequantityofcirculatingmoneymusthavebornethesameproportiontothenumberandvalueofpurchasesandsalesusuallytransactedatthattime，whichitdoestothosetransactedatpresent;orratheritmusthaveborneagreaterproportion，becausetherewasthennopaper，whichnowoccupiesagreatpartoftheemploymentofgoldandsilver。Amongnationstowhomcommerceandmanufacturesarelittleknown，thesovereign，uponextraordinaryoccasions，canseldomdrawanyconsiderableaidfromhissubjects，forreasonswhichshallbeexplainedhereafter。Itisinsuchcountries，therefore，thathegenerallyendeavourstoaccumulateatreasure，astheonlyresourceagainstsuchemergencies。Independentofthisnecessity，heisinsuchasituationnaturallydisposedtotheparsimonyrequisiteforaccumulation。Inthatsimplestate，theexpenseevenofasovereignisnotdirectedbythevanitywhichdelightsinthegaudyfineryofacourt，butisemployedinbountytohistenants，andhospitalitytohisretainers。Butbountyandhospitalityveryseldomleadtoextravagance;thoughvanityalmostalwaysdoes。EveryTartarchief，accordingly，hasatreasure。ThetreasuresofMazepa，chiefoftheCossacsintheUkraine，thefamousallyofCharlestheXII，aresaidtohavebeenverygreat。TheFrenchkingsoftheMerovingianraceallhadtreasures。Whentheydividedtheirkingdomamongtheirdifferentchildren，theydividedtheirtreasuretoo。TheSaxonprinces，andthefirstkingsaftertheConquest，seemlikewisetohaveaccumulatedtreasures。Thefirstexploitofeverynewreignwascommonlytoseizethetreasureoftheprecedingking，asthemostessentialmeasureforsecuringthesuccession。Thesovereignsofimprovedandcommercialcountriesarenotunderthesamenecessityofaccumulatingtreasures，becausetheycangenerallydrawfromtheirsubjectsextraordinaryaidsuponextraordinaryoccasions。Theyarelikewiselessdisposedtodoso。Theynaturally，perhapsnecessarily，followthemodeofthetimes，andtheirexpensecomestoberegulatedbythesameextravagantvanitywhichdirectsthatofalltheothergreatproprietorsintheirdominions。Theinsignificantpageantryoftheircourtbecomeseverydaymorebrilliant，andtheexpenseofitnotonlypreventsaccumulation，butfrequentlyencroachesuponthefundsdestinedformorenecessaryexpenses。WhatDercyllidassaidofthecourtofPersiamaybeappliedtothatofseveralEuropeanprinces，thathesawtheremuchsplendourbutlittlestrength，andmanyservantsbutfewsoldiers。
　　Theimportationofgoldandsilverisnottheprincipal，muchlessthesolebenefitwhichanationderivesfromitsforeigntrade。Betweenwhateverplacesforeigntradeiscarriedon，theyallofthemderivetwodistinctbenefitsfromit。Itcarriesoutthatsurpluspartoftheproduceoftheirlandandlabourforwhichthereisnodemandamongthem，andbringsbackinreturnforitsomethingelseforwhichthereisademand。Itgivesavaluetotheirsuperfluities，byexchangingthemforsomethingelse，whichmaysatisfyapartoftheirwants，andincreasetheirenjoyments。Bymeansofitthenarrownessofthehomemarketdoesnothinderthedivisionoflabourinanyparticularbranchofartormanufacturefrombeingcarriedtothehighestperfection。Byopeningamoreextensivemarketforwhateverpartoftheproduceoftheirlabourmayexceedthehomeconsumption，itencouragesthemtoimproveitsproductivepowers，andtoaugmentitsannualproducetotheutmost，andtherebytoincreasetherealrevenueandwealthofthesociety。Thesegreatandimportantservicesforeigntradeiscontinuallyoccupiedinperformingtoallthedifferentcountriesbetweenwhichitiscarriedon。Theyallderivegreatbenefitfromit，thoughthatinwhichthemerchantresidesgenerallyderivesthegreatest，asheisgenerallymoreemployedinsupplyingthewants，andcarryingoutthesuperfluitiesofhisown，thanofanyotherparticularcountry。Toimportthegoldandsilverwhichmaybewantedintothecountrieswhichhavenominesis，nodoubt，apartofthebusinessofforeigncommerce。Itis，however，amostinsignificantpartofit。Acountrywhichcarriedonforeigntrademerelyuponthisaccountcouldscarcehaveoccasiontofreightashipinacentury。
　　ItisnotbytheimportationofgoldandsilverthatthediscoveryofAmericahasenrichedEurope。BytheabundanceoftheAmericanmines，thosemetalshavebecomecheaper。Aserviceofplatecannowbepurchasedforaboutathirdpartofthecorn，orathirdpartofthelabour，whichitwouldhavecostinthefifteenthcentury。Withthesameannualexpenseoflabourandcommodities，Europecanannuallypurchaseaboutthreetimesthequantityofplatewhichitcouldhavepurchasedatthattime。Butwhenacommoditycomestobesoldforathirdpartofwhathadbeenitsusualprice，notonlythosewhopurchaseditbeforecanpurchasethreetimestheirformerquantity，butitisbroughtdowntothelevelofamuchgreaternumberofpurchasers，perhapstomorethanten，perhapstomorethantwentytimestheformernumber。SothattheremaybeinEuropeatpresentnotonlymorethanthreetimes，butmorethantwentyorthirtytimesthequantityofplatewhichwouldhavebeeninit，eveninitspresentstateofimprovement，hadthediscoveryoftheAmericanminesneverbeenmade。SofarEuropehas，nodoubt，gainedarealconveniency，thoughsurelyaverytriflingone。Thecheapnessofgoldandsilverrendersthosemetalsratherlessfitforthepurposesofmoneythantheywerebefore。Inordertomakethesamepurchases，wemustloadourselveswithagreaterquantityofthem，andcarryaboutashillinginourpocketwhereagroatwouldhavedonebefore。Itisdifficulttosaywhichismosttrifling，thisinconveniencyortheoppositeconveniency。NeithertheonenortheothercouldhavemadeanyveryessentialchangeinthestateofEurope。ThediscoveryofAmerica，however，certainlymadeamostessentialone。ByopeninganewandinexhaustiblemarkettoallthecommoditiesofEurope，itgaveoccasiontonewdivisionsoflabourandimprovementsofart，whichinthenarrowcircleoftheancientcommerce，couldneverhavetakenplaceforwantofamarkettotakeoffthegreaterpartoftheirproduce。Theproductivepowersoflabourwereimproved，anditsproduceincreasedinallthedifferentcountriesofEurope，andtogetherwithittherealrevenueandwealthoftheinhabitants。ThecommoditiesofEuropewerealmostallnewtoAmerica，andmanyofthoseofAmericawerenewtoEurope。Anewsetofexchanges，therefore，begantotakeplacewhichhadneverbeenthoughtofbefore，andwhichshouldnaturallyhaveprovedasadvantageoustothenew，asitcertainlydidtotheoldcontinent。ThesavageinjusticeoftheEuropeansrenderedanevent，whichoughttohavebeenbeneficialtoall，ruinousanddestructivetoseveralofthoseunfortunatecountries。
　　ThediscoveryofapassagetotheEastIndiesbytheCapeofGoodHope，whichhappenedmuchaboutthesametime，openedperhapsastillmoreextensiverangetoforeigncommercethaneventhatofAmerica，notwithstandingthegreaterdistance。TherewerebuttwonationsinAmericainanyrespectsuperiortosavages，andtheseweredestroyedalmostassoonasdiscovered。
　　Therestweremeresavages。ButtheempiresofChina，Indostan，Japan，aswellasseveralothersintheEastIndies，withouthavingricherminesofgoldorsilver，wereineveryotherrespectmuchricher，bettercultivated，andmoreadvancedinallartsandmanufacturesthaneitherMexicoorPeru，eventhoughweshouldcredit，whatplainlydeservesnocredit，theexaggeratedaccountsoftheSpanishwritersconcerningtheancientstateofthoseempires。Butrichandcivilisednationscanalwaysexchangetoamuchgreatervaluewithoneanotherthanwithsavagesandbarbarians。Europe，however，hashithertoderivedmuchlessadvantagefromitscommercewiththeEastIndiesthanfromthatwithAmerica。ThePortuguesemonopolizedtheEastIndiatradetothemselvesforaboutacentury，anditwasonlyindirectlyandthroughthemthattheothernationsofEuropecouldeithersendoutorreceiveanygoodsfromthatcountry。WhentheDutch，inthebeginningofthelastcentury，begantoencroachuponthem，theyvestedtheirwholeEastIndiacommerceinanexclusivecompany。TheEnglish，French，Swedes，andDaneshaveallfollowedtheirexample，sothatnogreatnationinEuropehaseveryethadthebenefitofafreecommercetotheEastIndies。NootherreasonneedbeassignedwhyithasneverbeensoadvantageousasthetradetoAmerica，which，betweenalmosteverynationofEuropeanditsowncolonies，isfreetoallitssubjects。TheexclusiveprivilegesofthoseEastIndiacompanies，theirgreatriches，thegreatfavourandprotectionwhichthesehaveprocuredthemfromtheirrespectivegovernments，haveexcitedmuchenvyagainstthem。Thisenvyhasfrequentlyrepresentedtheirtradeasaltogetherpernicious，onaccountofthegreatquantitiesofsilverwhichiteveryyearexportsfromthecountriesfromwhichitiscarriedon。Thepartiesconcernedhaverepliedthattheirtrade，bythiscontinualexportationofsilver，mightindeedtendtoimpoverishEuropeingeneral，butnottheparticularcountryfromwhichitwascarriedon;because，bytheexportationofapartofthereturnstootherEuropeancountries，itannuallybroughthomeamuchgreaterquantityofthatmetalthanitcarriedout。BoththeobjectionandthereplyarefoundedinthepopularnotionwhichIhavebeenjustnowexamining。Itisthereforeunnecessarytosayanythingfurtherabouteither。BytheannualexportationofsilvertotheEastIndies，plateisprobablysomewhatdearerinEuropethanitotherwisemighthavebeen;andcoinedsilverprobablypurchasesalargerquantitybothoflabourandcommodities。Theformerofthesetwoeffectsisaverysmallloss，thelatteraverysmalladvantage;bothtooinsignificanttodeserveanypartofthepublicattention。ThetradetotheEastIndies，byopeningamarkettothecommoditiesofEurope，or，whatcomesnearlytothesamething，tothegoldandsilverwhichispurchasedwiththosecommodities，mustnecessarilytendtoincreasetheannualproductionofEuropeancommodities，andconsequentlytherealwealthandrevenueofEurope。Thatithashithertoincreasedthemsolittleisprobablyowingtotherestraintswhichiteverywherelaboursunder。
　　Ithoughtitnecessary，thoughatthehazardofbeingtedious，toexamineatfulllengththispopularnotionthatwealthconsistsinmoney，oringoldandsilver。Moneyincommonlanguage，asIhavealreadyobserved，frequentlysignifieswealth，andthisambiguityofexpressionhasrenderedthispopularnotionsofamiliartousthateventheywhoareconvincedofitsabsurdityareveryapttoforgettheirownprinciples，andinthecourseoftheirreasoningstotakeitforgrantedasacertainandundeniabletruth。SomeofthebestEnglishwritersuponcommercesetoutwithobservingthatthewealthofacountryconsists，notinitsgoldandsilveronly，butinitslands，houses，andconsumablegoodsofalldifferentkinds。Inthecourseoftheirreasonings，however，thelands，houses，andconsumablegoodsseemtoslipoutoftheirmemory，andthestrainoftheirargumentfrequentlysupposesthatallwealthconsistsingoldandsilver，andthattomultiplythosemetalsisthegreatobjectofnationalindustryandcommerce。
　　Thetwoprinciplesbeingestablished，however，thatwealthconsistedingoldandsilver，andthatthosemetalscouldbebroughtintoacountrywhichhadnominesonlybythebalanceoftrade，orbyexportingtoagreatervaluethanitimported，itnecessarilybecamethegreatobjectofpoliticaleconomytodiminishasmuchaspossibletheimportationofforeigngoodsforhomeconsumption，andtoincreaseasmuchaspossibletheexportationoftheproduceofdomesticindustry。Itstwogreatenginesforenrichingthecountry，therefore，wererestraintsuponimportation，andencouragementstoexportation。
　　Therestraintsuponimportationwereoftwokinds。
　　First，restraintsupontheimportationofsuchforeigngoodsforhomeconsumptionascouldbeproducedathome，fromwhatevercountrytheywereimported。
　　Secondly，restraintsupontheimportationofgoodsofalmostallkindsfromthoseparticularcountrieswithwhichthebalanceoftradewassupposedtobedisadvantageous。
　　Thosedifferentrestraintsconsistedsometimesinhighduties，andsometimesinabsoluteprohibitions。
　　Exportationwasencouragedsometimesbydrawbacks，sometimesbybounties，sometimesbyadvantageoustreatiesofcommercewithforeignstates，andsometimesbytheestablishmentofcoloniesindistantcountries。
　　Drawbacksweregivenupontwodifferentoccasions。Whenthehomemanufacturesweresubjecttoanydutyorexcise，eitherthewholeorapartofitwasfrequentlydrawnbackupontheirexportation;andwhenforeigngoodsliabletoadutywereimportedinordertobeexportedagain，eitherthewholeorapartofthisdutywassometimesgivenbackuponsuchexportation。
　　Bountiesweregivenfortheencouragementeitherofsomebeginningmanufactures，orofsuchsortsofindustryofotherkindsassupposedtodeserveparticularfavour。
　　Byadvantageoustreatiesofcommerce，particularprivilegeswereprocuredinsomeforeignstateforthegoodsandmerchantsofthecountry，beyondwhatweregrantedtothoseothercountries。