This，however，thoughithappensseldom，issaidtohappensometimes，andmorefrequentlywithregardtogoldthanwithregardtosilver，onaccountofthehigherwarehouse—rentwhichispaidforthekeepingofthemorepreciousmetal。*ThefollowingarethepricesatwhichtheBankofAmsterdamatpresent（September，1775）receivesbullionandcoinofdifferentkind:—
　　SILVER
　　MexicodollarsGuildersB—22permarkFrenchcrownsGuildersB—22permarkEnglishsilvercoinGuildersB—22permarkMexicodollarsnewcoin2110
　　Ducatoons3
　　Rixdollars28
　　Barsilvercontainingeleven—twelfthsfinesilver21permark，andinthisproportiondownto1/4fine，onwhich5
　　guildersaregiven。
　　Finebars，93permark。
　　GOLD
　　PortugalcoinB—310permarkGuineasB—310permarkLouisd’orsnewB—310permarkDittoold300
　　Newducats4198perducatBaroringotgoldisreceivedinproportiontoitsfinenesscomparedwiththeaboveforeigngoldcoin。Uponfinebarsthebankgives340permark。Ingeneral，however，somethingmoreisgivenuponcoinofaknownfineness，thanupongoldandsilverbars，ofwhichthefinenesscannotbeascertainedbutbyaprocessofmeltingandassaying。
　　Thepersonwhobymakingadepositofbullionobtainsbothabankcreditandreceipt，payshisbillsofexchangeastheybecomeduewithhisbankcredit;andeithersellsorkeepshisreceiptaccordingashejudgesthatthepriceofbullionislikelytoriseortofall。Thereceiptandthebankcreditseldomkeeplongtogether，andthereisnooccasionthattheyshould。
　　Thepersonwhohasareceipt，andwhowantstotakeoutbullion，findsalwaysplentyofbankcredits，orbankmoneytobuyattheordinaryprice;andthepersonwhohasbankmoney，andwantstotakeoutbullion，findsreceiptsalwaysinequalabundance。
　　Theownersofbankcredits，andtheholdersofreceipts，constitutetwodifferentsortsofcreditorsagainstthebank。Theholderofareceiptcannotdrawoutthebullionforwhichitisgranted，withoutreassigningtothebankasumofbankmoneyequaltothepriceatwhichthebullionhadbeenreceived。Ifhehasnobankmoneyofhisown，hemustpurchaseitofthosewhohaveit。Theownerofbankmoneycannotdrawoutbullionwithoutproducingtothebankreceiptsforthequantitywhichhewants。
　　Ifhehasnoneofhisown，hemustbuythemofthosewhohavethem。Theholderofareceipt，whenhepurchasesbankmoney，purchasesthepoweroftakingoutaquantityofbullion，ofwhichthemintpriceisfivepercentabovethebankprice。Theagiooffivepercenttherefore，whichhecommonlypaysforit，ispaidnotforanimaginarybutforarealvalue。Theownerofbankmoney，whenhepurchasesareceipt，purchasesthepoweroftakingoutaquantityofbullionofwhichthemarketpriceiscommonlyfromtwotothreepercentabovethemintprice。Thepricewhichhepaysforit，therefore，ispaidlikewiseforarealvalue。Thepriceofthereceipt，andthepriceofthebankmoney，compoundormakeupbetweenthemthefullvalueorpriceofthebullion。
　　Upondepositsofthecoincurrentinthecountry，thebankgrantsreceiptslikewiseaswellasbankcredits;butthosereceiptsarefrequentlyofnovalue，andwillbringnopriceinthemarket。Uponducatoons，forexample，whichinthecurrencypassforthreeguildersthreestiverseach，thebankgivesacreditofthreeguildersonly，orfivepercentbelowtheircurrentvalue。Itgrantsareceiptlikewiseentitlingthebearertotakeoutthenumberofducatoonsdepositedatanytimewithinsixmonths，uponpayingone—fourthpercentforthekeeping。Thisreceiptwillfrequentlybringnopriceinthemarket。Threeguildersbankmoneygenerallysellinthemarketforthreeguildersthreestivers，thefullvalueoftheducatoons，iftheyweretakenoutofthebank;andbeforetheycanbetakenout，one—fourthpercentmustbepaidforthekeeping，whichwouldbemerelosstotheholderofthereceipt。Iftheagioofthebank，however，shouldatanytimefalltothreepercentsuchreceiptsmightbringsomepriceinthemarket，andmightsellforoneandthree—fourthspercent。Buttheagioofthebankbeingnowgenerallyaboutfivepercentsuchreceiptsarefrequentlyallowedtoexpire，orastheyexpressit，tofalltothebank。
　　Thereceiptswhicharegivenfordepositsofgoldducatsfalltoityetmorefrequently，becauseahigherwarehouse—rent，orone—halfpercentmustbepaidforthekeepingofthembeforetheycanbetakenoutagain。Thefivepercentwhichthebankgains，whendepositseitherofcoinorbullionareallowedtofalltoit，maybeconsideredasthewarehouse—rentfortheperpetualkeepingofsuchdeposits。
　　Thesumofbankmoneyforwhichthereceiptsareexpiredmustbeveryconsiderable。Itmustcomprehendthewholeoriginalcapitalofthebank，which，itisgenerallysupposed，hasbeenallowedtoremaintherefromthetimeitwasfirstdeposited，nobodycaringeithertorenewhisreceiptortotakeouthisdeposit，as，forthereasonsalreadyassigned，neithertheonenortheothercouldbedonewithoutloss。Butwhatevermaybetheamountofthissum，theproportionwhichitbearstothewholemassofbankmoneyissupposedtobeverysmall。TheBankofAmsterdamhasforthesemanyyearspastbeenthegreatwarehouseofEuropeforbullion，forwhichthereceiptsareveryseldomallowedtoexpire，or，astheyexpressit，tofalltothebank。
　　fargreaterpartofthebankmoney，orofthecreditsuponthebooksofthebank，issupposedtohavebeencreated，forthesemanyyearspast，bysuchdepositswhichthedealersinbullionarecontinuallybothmakingandwithdrawing。
　　Nodemandcanbemadeuponthebankbutbymeansofarecipeorreceipt。Thesmallermassofbankmoney，forwhichthereceiptsareexpired，ismixedandconfoundedwiththemuchgreatermassforwhichtheyarestillinforce;sothat，thoughtheremaybeaconsiderablesumofbankmoneyforwhichtherearenoreceipts，thereisnospecificsumorportionofitwhichmaynotatanytimebedemandedbyone。Thebankcannotbedebtortotwopersonsforthesamething;andtheownerofbankmoneywhohasnoreceiptcannotdemandpaymentofthebanktillhebuysone。Inordinaryandquiettimes，hecanfindnodifficultyingettingonetobuyatthemarketprice，whichgenerallycorrespondswiththepriceatwhichhecansellthecoinorbullionitentitieshimtotakeoutofthebank。
　　Itmightbeotherwiseduringapubliccalamity;aninvasion，forexample，suchasthatoftheFrenchin1672。Theownersofbankmoneybeingthenalleagertodrawitoutofthebank，inordertohaveittheirownkeeping，thedemandforreceiptsmightraisetheirpricetoanexorbitantheight。Theholdersofthemmightformexpectations，and，insteadoftwoorthreepercent，demandhalfthebankmoneyforwhichcredithadbeengivenuponthedepositsthatthereceiptshadrespectivelybeengrantedfor。
　　Theenemy，informedoftheconstitutionofthebank，mightevenbuythemup，inordertopreventthecarryingawayofthetreasure。Insuchemergencies，thebank，itissupposed，wouldbreakthroughitsordinaryruleofmakingpaymentonlytotheholdersofreceipts。Theholdersofreceipts，whohadnobankmoney，musthavereceivedwithintwoorthreepercentofthevalueofthedepositforwhichtheirrespectivereceiptshadbeengranted。Thebank，therefore，itissaid，wouldinthiscasemakenoscrupleofpaying，eitherwithmoneyorbullion，thefullvalueofwhattheownersofbankmoneywhocouldgetnoreceiptswerecreditedforinitsbooks;payingatthesametimetwoorthreepercenttosuchholdersofreceiptsashadnobankmoney，thatbeingthewholevaluewhichinthisstateofthingscouldjustlybesupposedduetothem。
　　Eveninordinaryandquiettimesitistheinterestoftheholdersofreceiptstodepresstheagio，inordereithertobuybankmoney（andconsequentlythebullion，whichtheirreceiptswouldthenenablethemtotakeoutofthebank）somuchcheaper，ortoselltheirreceiptstothosewhohavebankmoney，andwhowanttotakeoutbullion，somuchdearer;thepriceofareceiptbeinggenerallyequaltothedifferencebetweenthemarketpriceofbankmoney，andthatofthecoinorbullionforwhichthereceipthadbeengranted。Itistheinterestoftheownersofbankmoney，onthecontrary，toraisetheagio，inordereithertoselltheirbankmoneysomuchdearer，ortobuyareceiptsomuchcheaper。Topreventthestock—jobbingtrickswhichthoseoppositeinterestsmightsometimesoccasion，thebankhasoflateyearscometotheresolutiontosellatalltimesbankmoneyforcurrency，atfivepercentagio，andtobuyitinagainatfourpercentagio。Inconsequenceofthisresolution，theagiocannevereitherriseabovefiveorsinkbelowfourpercent，andtheproportionbetweenthemarketpriceofbankandthatofcurrentmoneyiskeptatalltimesveryneartotheproportionbetweentheirintrinsicvalues。Beforethisresolutionwastaken，themarketpriceofbankmoneyusedsometimestorisesohighasninepercentagio，andsometimestosinksolowaspar，accordingasoppositeinterestshappenedtoinfluencethemarket。
　　TheBankofAmsterdamprofessestolendoutnopartofwhatisdepositedwithit，but，foreveryguilderforwhichitgivescreditinitsbooks，tokeepinitsrepositoriesthevalueofaguildereitherinmoneyorbullion。Thatitkeepsinitsrepositoriesallthemoneyorbullionforwhichtherearereceiptsinforce，forwhichitisatalltimesliabletobecalledupon，andwhich，inreality，iscontinuallygoingfromitandreturningtoitagain，cannotwellbedoubted。Butwhetheritdoessolikewisewithregardtothatpartofitscapital，forwhichthereceiptsarelongagoexpired，forwhichinordinaryandquiettimesitcannotbecalledupon，andwhichinrealityisverylikelytoremainwithitforever，oraslongastheStatesoftheUnitedProvincessubsist，mayperhapsappearmoreuncertain。AtAmsterdam，however，nopointoffaithisbetterestablishedthanthatforeveryguilder，circulatedasbankmoney，thereisacorrespondentguilderingoldorsilvertobefoundinthetreasureofthebank。Thecityisguaranteethatitshouldbeso。Thebankisunderthedirectionofthefourreigningburgomasterswhoarechangedeveryyear。Eachnewsetofburgomastersvisitsthetreasure，comparesitwiththebooks，receivesituponoath，anddeliversitover，withthesameawfulsolemnity，tothesetwhichsucceeds;andinthatsoberandreligiouscountryoathsarenotyetdisregarded。Arotationofthiskindseemsaloneasufficientsecurityagainstanypracticeswhichcannotbeavowed。AmidstalltherevolutionswhichfactionhaseveroccasionedinthegovernmentofAmsterdam，theprevailingpartyhasatnotimeaccusedtheirpredecessorsofinfidelityintheadministrationofthebank。Noaccusationcouldhaveaffectedmoredeeplythereputationandfortuneofthedisgracedparty，andifsuchanaccusationcouldhavebeensupported，wemaybeassuredthatitwouldhavebeenbrought。In1672，whentheFrenchkingwasatUtrecht，theBankofAmsterdampaidsoreadilyasleftnodoubtofthefidelitywithwhichithadobserveditsengagements。Someofthepieceswhichwerethenbroughtfromitsrepositoriesappearedtohavebeenscorchedwiththefirewhichhappenedinthetown—housesoonafterthebankwasestablished。Thosepieces，therefore，musthavelaintherefromthattime。
　　Whatmaybetheamountofthetreasureinthebankisaquestionwhichhaslongemployedspeculationsofthecurious。
　　Nothingbutconjecturecanbeofferedconcerningit。Itisgenerallyreckonedthatthereareabouttwothousandpeoplewhokeepaccountswiththebank，andallowingthemtohave，onewithanother，thevalueoffifteenhundredpoundssterlinglyingupontheirrespectiveaccounts（averylargeallowance），thewholequantityofbankmoney，andconsequentlyoftreasureinthebank，willamounttoaboutthreemillionssterling，or，atelevenguildersthepoundsterling，thirty—threemillionsofguilders—agreatsum，andsufficienttocarryonaveryextensivecirculation，butvastlybelowtheextravagantideaswhichsomepeoplehaveformedofthistreasure。
　　ThecityofAmsterdamderivesaconsiderablerevenuefromthebank。Besideswhatmaybecalledthewarehouse—rentabovementioned，eachperson，uponfirstopeninganaccountwiththebank，paysafeeoftenguilders;andforeverynewaccountthreeguildersthreestivers;foreverytransfertwostivers;andifthetransferisforlessthanthreehundredguilders，sixstivers，inordertodiscouragethemultiplicityofsmalltransactions。Thepersonwhoneglectstobalancehisaccounttwiceintheyearforfeitstwenty—fiveguilders。Thepersonwhoordersatransferformorethanisuponhisaccount，isobligedtopaythreepercentforthesumoverdrawn，andhisorderissetasideintothebargain。Thebankissupposed，too，tomakeaconsiderableprofitbythesaleoftheforeigncoinorbullionwhichsometimesfallstoitbytheexpiringofreceipts，andwhichisalwayskepttillitcanbesoldwithadvantage。Itmakesaprofitlikewisebysellingbankmoneyatfivepercentagio，andbuyingitinatfour。Thesedifferentemolumentsamounttoagooddealmorethanwhatisnecessaryforpayingthesalariesofofficers，anddefrayingtheexpenseofmanagement。Whatispaidforthekeepingofbullionuponreceiptsisalonesupposedtoamounttoaneatannualrevenueofbetweenonehundredandfiftythousandandtwohundredthousandguilders。Publicutility，however，andnotrevenue，wastheoriginalobjectofthisinstitution。Itsobjectwastorelievethemerchantsfromtheinconvenienceofadisadvantageousexchange。Therevenuewhichhasarisenfromitwasunforeseen，andmaybeconsideredasaccidental。Butitisnowtimetoreturnfromthislongdigression，intowhichIhavebeeninsensiblyledinendeavouringtoexplainthereasonswhytheexchangebetweenthecountrieswhichpayinwhatiscalledbankmoney，andthosewhichpayincommoncurrency，shouldgenerallyappeartobeinfavouroftheformerandagainstthelatter。Theformerpayinaspeciesofmoneyofwhichtheintrinsicvalueisalwaysthesame，andexactlyagreeabletothestandardoftheirrespectivemints;thelatterisaspeciesofmoneyofwhichtheintrinsicvalueiscontinuallyvarying，andisalmostalwaysmoreorlessbelowthatstandard。
　　PART2
　　OftheUnreasonablenessofthoseextraordinaryRestraintsuponotherPrinciplesINtheforegoingpartofthischapterIhaveendeavouredtoshow，evenupontheprinciplesofthecommercialsystem，howunnecessaryitistolayextraordinaryrestraintsupontheimportationofgoodsfromthosecountrieswithwhichthebalanceoftradeissupposedtobedisadvantageous。
　　Nothing，however，canbemoreabsurdthanthiswholedoctrineofthebalanceoftrade，uponwhich，notonlytheserestraints，butalmostalltheotherregulationsofcommercearefounded。Whentwoplacestradewithoneanother，thisdoctrinesupposesthat，ifthebalancebeeven，neitherofthemeitherlosesorgains;butifitleansinanydegreetooneside，thatoneofthemlosesandtheothergainsinproportiontoitsdeclensionfromtheexactequilibrium。Bothsuppositionsarefalse。Atradewhichisforcedbymeansofbountiesandmonopoliesmaybeandcommonlyisdisadvantageoustothecountryinwhosefavouritismeanttobeestablished，asIshallendeavourtoshowhereafter。Butthattradewhich，withoutforceorconstraint，isnaturallyandregularlycarriedonbetweenanytwoplacesisalwaysadvantageous，thoughnotalwaysequallyso，toboth。
　　Byadvantageorgain，Iunderstandnottheincreaseofthequantityofgoldandsilver，butthatoftheexchangeablevalueoftheannualproduceofthelandandlabourofthecountry，ortheincreaseoftheannualrevenueofitsinhabitants。
　　Ifthebalancebeeven，andifthetradebetweenthetwoplacesconsistaltogetherintheexchangeoftheirnativecommodities，theywill，uponmostoccasions，notonlybothgain，buttheywillgainequally，orverynearequally;eachwillinthiscaseaffordamarketforapartofthesurplusproduceoftheother;eachwillreplaceacapitalwhichhadbeenemployedinraisingandpreparingforthemarketthispartofthesurplusproduceoftheother，andwhichhadbeendistributedamong，andgivenrevenueandmaintenancetoacertainnumberofitsinhabitants。Somepartoftheinhabitantsofeach，therefore，willindirectlyderivetheirrevenueandmaintenancefromtheother。Asthecommoditiesexchanged，too，aresupposedtobeofequalvalue，sothetwocapitalsemployedinthetradewill，uponmostoccasions，beequal，orverynearlyequal;andbothbeingemployedinraisingthenativecommoditiesofthetwocountries，therevenueandmaintenancewhichtheirdistributionwillaffordtotheinhabitantsofeachwillbeequal，orverynearlyequal。
　　Thisrevenueandmaintenance，thusmutuallyafforded，willbegreaterorsmallerinproportiontotheextentoftheirdealings。
　　Iftheseshouldannuallyamounttoanhundredthousandpounds，forexample，ortoamilliononeachside，eachofthemwouldaffordanannualrevenueintheonecaseofanhundredthousandpounds，intheotherofamillion，totheinhabitantsoftheother。
　　Iftheirtradeshouldbeofsuchanaturethatoneofthemexportedtotheothernothingbutnativecommodities，whilethereturnsofthatotherconsistedaltogetherinforeigngoods;thebalance，inthiscase，wouldstillbesupposedeven，commoditiesbeingpaidforwithcommodities。Theywould，inthiscasetoo，bothgain，buttheywouldnotgainequally;andtheinhabitantsofthecountrywhichexportednothingbutnativecommoditieswouldderivethegreatestrevenuefromthetrade。IfEngland，forexample，shouldimportfromFrancenothingbutthenativecommoditiesofthatcountry，and，nothavingsuchcommoditiesofitsownaswereindemandthere，shouldannuallyrepaythembysendingthitheralargequantityofforeigngoods，tobacco，weshallsuppose，andEastIndiagoods;thistrade，thoughitwouldgivesomerevenuetotheinhabitantsofbothcountries，wouldgivemoretothoseofFrancethantothoseofEngland。ThewholeFrenchcapitalannuallyemployedinitwouldannuallybedistributedamongthepeopleofFrance。ButthatpartoftheEnglishcapitalonlywhichwasemployedinproducingtheEnglishcommoditieswithwhichthoseforeigngoodswerepurchasedwouldbeannuallydistributedamongthepeopleofEngland。ThegreaterpartofitwouldreplacethecapitalswhichhadbeenemployedinVirginia，Indostan，andChina，andwhichhadgivenrevenueandmaintenancetotheofthosedistantcountries。Ifthecapitalswereequal，ornearlyequal，thereforethisemploymentoftheFrenchcapitalwouldaugmentmuchmoretherevenueofthepeopleofFrancethanthatoftheEnglishcapitalwouldtherevenueofthepeopleofEngland。FrancewouldinthiscasecarryonadirectforeigntradeofconsumptionwithEngland;whereasEnglandwouldcarryonaround—abouttradeofthesamekindwithFrance。
　　Thedifferenteffectsofacapitalemployedinthedirectandofoneemployedintheround—aboutforeigntradeofconsumptionhavealreadybeenfullyexplained。
　　Thereisnot，probably，betweenanytwocountriesatradewhichconsistsaltogetherintheexchangeeitherofnativecommoditiesonbothsides，orofnativecommoditiesononesideandofforeigngoodsontheother。Almostallcountriesexchangewithoneanotherpartlynativeandpartlyforeigngoods。Thatcountry，however，inwhosecargoesthereisthegreatestproportionofnative，andtheleastofforeigngoods，willalwaysbetheprincipalgainer。
　　IfitwasnotwithtobaccoandEastIndiagoods，butwithgoldandsilver，thatEnglandpaidforthecommoditiesannuallyimportedfromFrance，thebalance，inthiscase，wouldbesupposeduneven，commoditiesnotbeingpaidforwithcommodities，butwithgoldandsilver。Thetrade，however，would，inthiscase，asintheforegoing，givesomerevenuetotheinhabitantsofbothcountries，butmoretothoseofFrancethantothoseofEngland。ItwouldgivesomerevenuetothoseofEngland。ThecapitalwhichhadbeenemployedinproducingtheEnglishgoodsthatpurchasedthisgoldandsilver，thecapitalwhichhadbeendistributedamong，andgivenrevenueto，certaininhabitantsofEngland，wouldtherebybereplacedandenabledtocontinuethatemployment。ThewholecapitalofEnglandwouldnomorebediminishedbythisexportationofgoldandsilverthanbytheexportationofanequalvalueofanyothergoods。Onthecontrary，itwouldinmostcasesbeaugmented。Nogoodsaresentabroadbutthoseforwhichthedemandissupposedtobegreaterabroadthanathome，andofwhichthereturnsconsequently，itisexpected，willbeofmorevalueathomethanthecommoditiesexported。Ifthetobaccowhich，inEngland，isworthonlyahundredthousandpounds，whensenttoFrancewillpurchasewinewhichis，inEngland，worthahundredandtenthousand，thisexchangewillequallyaugmentthecapitalofEnglandbytenthousandpounds。IfahundredthousandpoundsofEnglishgold，inthesamemanner，purchaseFrenchwinewhich，inEngland，isworthahundredandtenthousand，thisexchangewillequallyaugmentthecapitalofEnglandbytenthousandpounds。Asamerchantwhohasahundredandtenthousandpoundsworthofwineinhiscellarisarichermanthanhewhohasonlyahundredthousandpoundsworthoftobaccoinhiswarehouse，soishelikewisearichermanthanhewhohasonlyahundredthousandpoundsworthofgoldinhiscoffers。Hecanputintomotionagreaterquantityofindustry，andgiverevenue，maintenance，andemploymenttoagreaternumberofpeoplethaneitheroftheothertwo。Butthecapitalofthecountryisequaltothecapitalsofallitsdifferentinhabitants，andthequantityofindustrywhichcanbeannuallymaintainedinitisequaltowhatallthosedifferentcapitalscanmaintain。Boththecapitalofthecountry，therefore，andthequantityofindustrywhichcanbeannuallymaintainedinit，mustgenerallybeaugmentedbythisexchange。
　　Itwould，indeed，bemoreadvantageousforEnglandthatitcouldpurchasethewinesofFrancewithitsownhardwareandbroadcloththanwitheitherthetobaccoofVirginiaorthegoldandsilverofBrazilandPeru。Adirectforeigntradeofconsumptionisalwaysmoreadvantageousthanaroundaboutone。Butaround—aboutforeigntradeofconsumption，whichiscarriedonwithgoldandsilver，doesnotseemtobelessadvantageousthananyotherequallyround—aboutone。Neitherisacountrywhichhasnominesmorelikelytobeexhaustedofgoldandsilverbythisannualexportationofthosemetalsthanonewhichdoesnotgrowtobaccobythelikeannualexportationofthatplant。Asacountrywhichhaswherewithaltobuytobaccowillneverbelonginwantofit，soneitherwillonebelonginwantofgoldandsilverwhichhaswherewithaltopurchasethosemetals。
　　Itisalosingtrade，itissaid，whichaworkmancarriesonwiththealehouse;andthetradewhichamanufacturingnationwouldnaturallycarryonwithawinecountrymaybeconsideredasatradeofthesamenature。Ianswer，thatthetradewiththealehouseisnotnecessarilyalosingtrade。Initsownnatureitisjustasadvantageousasanyother，thoughperhapssomewhatmoreliabletobeabused。Theemploymentofabrewer，andeventhatofaretaileroffermentedliquors，areasnecessarydivisionsoflabourasanyother。Itwillgenerallybemoreadvantageousforaworkmantobuyofthebrewerthequantityhehasoccasionforthantobrewithimself，andifheisapoorworkman，itwillgenerallybemoreadvantageousforhimtobuyitbylittleandlittleoftheretailerthanalargequantityofthebrewer。Hemaynodoubtbuytoomuchofeither，ashemayofanyotherdealersinhisneighbourhood，ofthebutcher，ifheisaglutton，orofthedraper，ifheaffectstobeabeauamonghiscompanions。Itisadvantageoustothegreatbodyofworkmen，notwithstanding，thatallthesetradesshouldbefree，thoughthisfreedommaybeabusedinallofthem，andismorelikelytobeso，perhaps，insomethaninothers。Thoughindividuals，besides，maysometimesruintheirfortunesbyanexcessiveconsumptionoffermentedliquors，thereseemstobenoriskthatanationshoulddoso。Thoughineverycountrytherearemanypeoplewhospenduponsuchliquorsmorethantheycanafford，therearealwaysmanymorewhospendless。Itdeservestoberemarkedtoo，that，ifweconsultexperience，thecheapnessofwineseemstobeacause，notofdrunkenness，butofsobriety。
　　TheinhabitantsofthewinecountriesareingeneralthesoberestpeopleinEurope;witnesstheSpainards，theItalians，andtheinhabitantsofthesouthernprovincesofFrance。Peopleareseldomguiltyofexcessinwhatistheirdailyfare。Nobodyaffectsthecharacterofliberalityandgoodfellowshipbybeingprofuseofaliquorwhichisascheapassmallbeer。Onthecontrary，inthecountrieswhich，eitherfromexcessiveheatorcold，producenograpes，andwherewineconsequentlyisdearandararity，drunkennessisacommonvice，asamongthenorthernnations，andallthosewholivebetweenthetropics，thenegroes，forexample，onthecoastofGuinea。WhenaFrenchregimentcomesfromsomeofthenorthernprovincesofFrance，wherewineissomewhatdear，tobequarteredinthesouthern，whereitisverycheap，thesoldiers，Ihavefrequentlyhearditobservedareatfirstdebauchedbythecheapnessandnoveltyofgoodwine;butafterafewmonths’residence，thegreaterpartofthembecomeassoberastherestoftheinhabitants。Werethedutiesuponforeignwines，andtheexcisesuponmalt，beer，andaletobetakenawayallatonce，itmight，inthesamemanner，occasioninGreatBritainaprettygeneralandtemporarydrunkennessamongthemiddlingandinferiorranksofpeople，whichwouldprobablybesoonfollowedbyapermanentandalmostuniversalsobriety。Atpresentdrunkennessisbynomeanstheviceofpeopleoffashion，orofthosewhocaneasilyaffordthemostexpensiveliquors。A
　　gentlemandrunkwithalehasscarceeverbeenseenamongus。TherestraintsuponthewinetradeinGreatBritain，besides，donotsomuchseemcalculatedtohinderthepeoplefromgoing，ifImaysayso，tothealehouse，asfromgoingwheretheycanbuythebestandcheapestliquor。TheyfavourthewinetradeofPortugal，anddiscouragethatofFrance。ThePortugese，itissaid，indeed，arebettercustomersforourmanufacturesthantheFrench，andshouldthereforebeencouragedinpreferencetothem。Astheygiveustheircustom，itispretended，weshouldgivethemours。
　　Thesneakingartsofunderlingtradesmenarethuserectedintopoliticalmaximsfortheconductofagreatempire:foritisthemostunderlingtradesmenonlywhomakeitaruletoemploychieflytheirowncustomers。Agreattraderpurchaseshisgoodsalwayswheretheyarecheapestandbest，withoutregardtoanylittleinterestofthiskind。
　　Bysuchmaximsasthese，however，nationshavebeentaughtthattheirinterestconsistedinbeggaringalltheirneighbours。
　　Eachnationhasbeenmadetolookwithaninvidiouseyeupontheprosperityofallthenationswithwhichittrades，andtoconsidertheirgainasitsownloss。Commerce，whichoughtnaturallytobe，amongnations，asamongindividuals，abondofunionandfriendship，hasbecomethemostfertilesourceofdiscordandanimosity。Thecapriciousambitionofkingsandministershasnot，duringthepresentandtheprecedingcentury，beenmorefataltothereposeofEuropethantheimpertinentjealousyofmerchantsandmanufacturers。Theviolenceandinjusticeoftherulersofmankindisanancientevil，forwhich，Iamafraid，thenatureofhumanaffairscanscarceadmitofaremedy。Butthemeanrapacity，themonopolizingspiritofmerchantsandmanufacturers，whoneitherare，noroughttobe，therulersofmankind，thoughitcannotperhapsbecorrectedmayveryeasilybepreventedfromdisturbingthetranquillityofanybodybutthemselves。
　　Thatitwasthespiritofmonopolywhichoriginallybothinventedandpropagatedthisdoctrinecannotbedoubted;andtheywhofirsttaughtitwerebynomeanssuchfoolsastheywhobelievedit。Ineverycountryitalwaysisandmustbetheinterestofthegreatbodyofthepeopletobuywhatevertheywantofthosewhosellitcheapest。Thepropositionissoverymanifestthatitseemsridiculoustotakeanypainstoproveit;
　　norcoulditeverhavebeencalledinquestionhadnottheinterestedsophistryofmerchantsandmanufacturersconfoundedthecommonsenseofmankind。Theirinterestis，inthisrespect，directlyoppositetothatofthegreatbodyofthepeople。Asitistheinterestofthefreemenofacorporationtohindertherestoftheinhabitantsfromemployinganyworkmenbutthemselves，soitistheinterestofthemerchantsandmanufacturersofeverycountrytosecuretothemselvesthemonopolyofthehomemarket。HenceinGreatBritain，andinmostotherEuropeancountries，theextraordinarydutiesuponalmostallgoodsimportedbyalienmerchants。Hencethehighdutiesandprohibitionsuponallthoseforeignmanufactureswhichcancomeintocompetitionwithourown。Hence，too，theextraordinaryrestraintsupontheimportationofalmostallsortsofgoodsfromthosecountrieswithwhichthebalanceoftradeissupposedtobedisadvantageous;thatis，fromthoseagainstwhomnationalanimosityhappenstobemostviolentlyinflamed。
　　Thewealthofaneighbouringnation，however，thoughdangerousinwarandpolitics，iscertainlyadvantageousintrade。Inastateofhostilityitmayenableourenemiestomaintainfleetsandarmiessuperiortoourown;butinastateofpeaceandcommerceitmustlikewiseenablethemtoexchangewithustoagreatervalue，andtoaffordabettermarket，eitherfortheimmediateproduceofourownindustry，orforwhateverispurchasedwiththatproduce。Asarichmanislikelytobeabettercustomertotheindustriouspeopleinhisneighbourhoodthanapoor，soislikewisearichnation。Arichman，indeed，whoishimselfamanufacturer，isaverydangerousneighbourtoallthosewhodealinthesameway。Alltherestoftheneighbourhood，however，byfarthegreatestnumber，profitbythegoodmarketwhichhisexpenseaffordsthem。Theyevenprofitbyhisundersellingthepoorerworkmenwhodealinthesamewaywithhim。Themanufacturersofarichnation，inthesamemanner，maynodoubtbeverydangerousrivalstothoseoftheirneighbours。
　　Thisverycompetition，however，isadvantageoustothegreatbodyofthepeople，whoprofitgreatlybesidesbythegoodmarketwhichthegreatexpenseofsuchanationaffordsthemineveryotherway。Privatepeoplewhowanttomakeafortuneneverthinkofretiringtotheremoteandpoorprovincesofthecountry，butresorteithertothecapital，ortosomeofthegreatcommercialtowns。Theyknowthatwherelittlewealthcirculatesthereislittletobegot，butthatwhereagreatdealisinmotion，someshareofitmayfalltothem。Thesamemaximswhichwouldinthismannerdirectthecommonsenseofone，orten，ortwentyindividuals，shouldregulatethejudgmentofone，orten，ortwentymillions，andshouldmakeawholenationregardtherichesofitsneighboursasaprobablecauseandoccasionforitselftoacquireriches。Anationthatwouldenrichitselfbyforeigntradeiscertainlymostlikelytodosowhenitsneighboursareallrich，industrious，andcommercialnations。Agreatnationsurroundedonallsidesbywanderingsavagesandpoorbarbariansmight，nodoubt，acquirerichesbythecultivationofitsownlands，andbyitsowninteriorcommerce，butnotbyforeigntrade。ItseemstohavebeeninthismannerthattheancientEgyptiansandthemodernChineseacquiredtheirgreatwealth。TheancientEgyptians，itissaid，neglectedforeigncommerce，andthemodernChinese，itisknown，bolditintheutmostcontempt，andscarcedeigntoafforditthedecentprotectionofthelaws。
　　Themodernmaximsofforeigncommerce，byaimingattheimpoverishmentofallourneighbours，sofarastheyarecapableofproducingtheirintendedeffect，tendtorenderthatverycommerceinsignificantandcontemptible。
　　ItisinconsequenceofthesemaximsthatthecommercebetweenFranceandEnglandhasinbothcountriesbeensubjectedtosomanydiscouragementsandrestraints。Ifthosetwocountries，however，weretoconsidertheirrealinterest，withouteithermercantilejealousyornationalanimosity，thecommerceofFrancemightbemoreadvantageoustoGreatBritainthanthatofanyothercountry，andforthesamereasonthatofGreatBritaintoFrance。FranceisthenearestneighbourtoGreatBritain。InthetradebetweenthesoutherncoastofEnglandandthenorthernandnorth—westerncoastsofFrance，thereturnsmightbeexpected，inthesamemannerasintheinlandtrade，four，five，orsixtimesintheyear。Thecapital，therefore，employedinthistradecouldineachofthetwocountrieskeepinmotionfour，five，orsixtimesthequantityofindustry，andaffordemploymentandsubsistencetofour，five，orsixtimesthenumberofpeople，whichanequalcapitalcoulddointhegreaterpartoftheotherbranchesofforeigntrade。BetweenthepartsofFranceandGreatBritainmostremotefromoneanother，thereturnsmightbeexpected，atleast，onceintheyear，andeventhistradewouldsofarbeatleastequallyadvantageousasthegreaterpartoftheotherbranchesofourforeignEuropeantrade。Itwouldbe，atleast，threetimesmoreadvantageousthantheboastedtradewithourNorthAmericancolonies，inwhichthereturnswereseldommadeinlessthanthreeyears，frequentlynotinlessthanfourorfiveyears。France，besides，issupposedtocontaintwenty—fourmillionsofinhabitants。OurNorthAmericancolonieswereneversupposedtocontainmorethanthreemillions;andFranceisamuchrichercountrythanNorthAmerica;though，onaccountofthemoreunequaldistributionofriches，thereismuchmorepovertyandbeggaryintheonecountrythanintheother。
　　France，therefore，couldaffordamarketatleasteighttimesmoreextensive，and，onaccountofthesuperiorfrequencyofthereturns，four—and—twentytimesmoreadvantageousthanthatwhichourNorthAmericancolonieseverafforded。ThetradeofGreatBritainwouldbejustasadvantageoustoFrance，and，inproportiontothewealth，population，andproximityoftherespectivecountries，wouldhavethesamesuperiorityoverthatwhichFrancecarriesonwithherowncolonies。Suchistheverygreatdifferencebetweenthattrade，whichthewisdomofbothnationshasthoughtpropertodiscourage，andthatwhichithasfavouredthemost。
　　Buttheverysamecircumstanceswhichwouldhaverenderedanopenandfreecommercebetweenthetwocountriessoadvantageoustoboth，haveoccasionedtheprincipalobstructionstothatcommerce。Beingneighbours，theyarenecessarilyenemies，andthewealthandpowerofeachbecomes，uponthataccount，moreformidabletotheother;andwhatwouldincreasetheadvantageofnationalfriendshipservesonlytoinflametheviolenceofnationalanimosity。Theyarebothrichandindustriousnations;
　　andthemerchantsandmanufacturersofeachdreadthecompetitionoftheskillandactivityofthoseoftheother。Mercantilejealousyisexcited，andbothinflames，andisitselfinflamed，bytheviolenceofnationalanimosity;andthetradersofbothcountrieshaveannounced，withallthepassionateconfidenceofinterestedfalsehood，thecertainruinofeach，inconsequenceofthatunfavourablebalanceoftrade，which，theypretend，wouldbetheinfallibleeffectofanunrestrainedcommercewiththeother。