CHAPTERVI
　　OfTreatiesofCommerceWHENanationbindsitselfbytreatyeithertopermittheentryofcertaingoodsfromoneforeigncountrywhichitprohibitsfromallothers，ortoexemptthegoodsofonecountryfromdutiestowhichitsubjectsthoseofallothers，thecountry，oratleastthemerchantsandmanufacturersofthecountry，whosecommerceissofavoured，mustnecessarilyderivegreatadvantagefromthetreaty。Thosemerchantsandmanufacturersenjoyasortofmonopolyinthecountrywhichissoindulgenttothem。Thatcountrybecomesamarketbothmoreextensiveandmoreadvantageousfortheirgoods:moreextensive，becausethegoodsofothernationsbeingeitherexcludedorsubjectedtoheavierduties，ittakesoffagreaterquantityoftheirs:moreadvantageous，becausethemerchantsofthefavouredcountry，enjoyingasortofmonopolythere，willoftenselltheirgoodsforabetterpricethanifexposedtothefreecompetitionofallothernations。
　　Suchtreaties，however，thoughtheymaybeadvantageoustothemerchantsandmanufacturersofthefavoured，arenecessarilydisadvantageoustothoseofthefavouringcountry。Amonopolyisthusgrantedagainstthemtoaforeignnation;andtheymustfrequentlybuytheforeigngoodstheyhaveoccasionfordearerthanifthefreecompetitionofothernationswasadmitted。Thatpartofitsownproducewithwhichsuchanationpurchasesforeigngoodsmustconsequentlybesoldcheaper，becausewhentwothingsareexchangedforoneanother，thecheapnessoftheoneisanecessaryconsequence，orratherthesamethingwiththedearnessoftheother。Theexchangeablevalueofitsannualproduce，therefore，islikelytobediminishedbyeverysuchtreaty。Thisdiminution，however，canscarceamounttoanypositiveloss，butonlytoalesseningofthegainwhichitmightotherwisemake。Thoughitsellsitsgoodscheaperthanitotherwisemightdo，itwillnotprobablysellthemforlessthantheycost;nor，asinthecaseofbounties，forapricewhichwillnotreplacethecapitalemployedinbringingthemtomarket，togetherwiththeordinaryprofitsofstock。Thetradecouldnotgoonlongifitdid。Eventhefavouringcountry，therefore，maystillgainbythetrade，thoughlessthaniftherewasafreecompetition。
　　Sometreatiesofcommerce，however，havebeensupposedadvantageousuponprinciplesverydifferentfromthese;andacommercialcountryhassometimesgrantedamonopolyofthiskindagainstitselftocertaingoodsofaforeignnation，becauseitexpectedthatinthewholecommercebetweenthem，itwouldannuallysellmorethanitwouldbuy，andthatabalanceingoldandsilverwouldbeannuallyreturnedtoit。ItisuponthisprinciplethatthetreatyofcommercebetweenEnglandandPortugal，concludedin1703byMr。Methuen，hasbeensomuchcommended。Thefollowingisaliteraltranslationofthattreaty，whichconsistsofthreearticlesonly。
　　ART。I。
　　HissacredroyalmajestyofPortugalpromises，bothinhisownname，andthatofhissuccessors，toadmit，foreverhereafter，intoPortugal，thewoollencloths，andtherestofthewoollenmanufacturesoftheBritish，aswasaccustomed，tilltheywereprohibitedbythelaw;neverthelessuponthiscondition:
　　ART。II。
　　Thatistosay，thathersacredroyalmajestyofGreatBritainshall，inherownname，andthatofhersuccessors，beobliged，foreverhereafter，toadmitthewinesofthegrowthofPortugalintoBritain;sothatatnotime，whetherthereshallbepeaceorwarbetweenthekingdomsofBritainandFrance，anythingmoreshallbedemandedforthesewinesbythenameofcustomorduty，orbywhatsoeverothertitle，directlyorindirectly，whethertheyshallbeimportedintoGreatBritaininorhogsheads，orothercasks，thanwhatshallbedemandedforthelikequantityormeasureofFrenchwine，deductingorabatingathirdpartofthecustomorduty。Butifatanytimethisdeductionorabatementofcustoms，whichistobemadeasaforesaid，shallinanymannerbeattemptedandprejudiced，itshallbejustandlawfulforhissacredroyalmajestyofPortugal，againtoprohibitthewoollencloths，andtherestoftheBritishwoollenmanufactures。
　　ART。III。
　　Themostexcellentlordstheplenipotentiariespromiseandtakeuponthemselves，thattheirabovenamedmastersshallratifythistreaty;andwithinthespaceoftwomonthstheratificationsshallbeexchanged。
　　BythistreatythecrownofPortugalbecomesboundtoadmittheEnglishwoollensuponthesamefootingasbeforetheprohibition;thatis，nottoraisethedutieswhichhadbeenpaidbeforethattime。Butitdoesnotbecomeboundtoadmitthemuponanybettertermsthanthoseofanyothernation，ofFranceorHollandforexample。ThecrownofGreatBritain，onthecontrary，becomesboundtoadmitthewinesofPortugaluponpayingonlytwo—thirdsofthedutywhichispaidforthoseofFrance，thewinesmostlikelytocomeintocompetitionwiththem。Sofarthistreaty，therefore，isevidentlyadvantageoustoPortugal，anddisadvantageoustoGreatBritain。
　　Ithasbeencelebrated，however，asamasterpieceofthecommercialpolicyofEngland。PortugalreceivesannuallyfromtheBrazilsagreaterquantityofgoldthancanbeemployedinitsdomesticcommerce，whetherintheshapeofcoinorofplate。Thesurplusistoovaluabletobeallowedtolieidleandlockedupincoffers，andasitcanfindnoadvantageousmarketathome，itmust，notwithstandinganyprohibition，besentabroad，andexchangedforsomethingforwhichthereisamoreadvantageousmarketathome。AlargeshareofitcomesannuallytoEngland，inreturneitherforEnglishgoods，orforthoseofotherEuropeannationsthatreceivetheirreturnsthroughEngland。Mr。Barettiwasinformedthattheweeklypacket—boatfromLisbonbrings，oneweekwithanother，morethanfiftythousandpoundsingoldtoEngland。Thesumhadprobablybeenexaggerated。Itwouldamounttomorethantwomillionssixhundredthousandpoundsayear，whichismorethantheBrazilsaresupposedtoafford。
　　OurmerchantsweresomeyearsagooutofhumourwiththecrownofPortugal。Someprivilegeswhichhadbeengrantedthem，notbytreaty，butbythefreegraceofthatcrown，atthesolicitationindeed，itisprobable，andinreturnformuchgreaterfavours，defenceandprotection，fromthecrownofGreatBritainhadbeeneitherinfringedorrevoked。Thepeople，therefore，usuallymostinterestedincelebratingthePortugaltradewerethenratherdisposedtorepresentitaslessadvantageousthanithadcommonlybeenimagined。Thefargreaterpart，almostthewhole，theypretended，ofthisannualimportationofgold，wasnotonaccountofGreatBritain，butofotherEuropeannations;thefruitsandwinesofPortugalannuallyimportedintoGreatBritainnearlycompensatingthevalueoftheBritishgoodssentthither。
　　Letussuppose，however，thatthewholewasonaccountofGreatBritain，andthatitamountedtoastillgreatersumthanMr。Barettiseemstoimagine;thistradewouldnot，uponthataccount，bemoreadvantageousthananyotherinwhich，forthesamevaluesentout，wereceivedanequalvalueofconsumablegoodsinreturn。
　　Itisbutaverysmallpartofthisimportationwhich，itcanbesupposed，isemployedasanannualadditioneithertotheplateortothecoinofthekingdom。Therestmustallbesentabroadandexchangedforconsumablegoodsofsomekindorother。
　　ButifthoseconsumablegoodswerepurchaseddirectlywiththeproduceofEnglishindustry，itwouldbemorefortheadvantageofEnglandthanfirsttopurchasewiththatproducethegoldofPortugal，andafterwardstopurchasewiththatgoldthoseconsumablegoods。Adirectforeigntradeofconsumptionisalwaysmoreadvantageousthanaround—aboutone;andtobringthesamevalueofforeigngoodstothehomemarket，requiresamuchsmallercapitalintheonewaythanintheother。Ifasmallershareofitsindustry，therefore，hadbeenemployedinproducinggoodsfitforthePortugalmarket，andagreaterinproducingthosefitfortheothermarkets，wherethoseconsumablegoodsforwhichthereisademandinGreatBritainaretobehad，itwouldhavebeenmorefortheadvantageofEngland。Toprocureboththegold，whichitwantsforitsownuse，andtheconsumablegoods，would，inthisway，employamuchsmallercapitalthanatpresent。Therewouldbeasparecapital，therefore，tobeemployedforotherpurposes，inexcitinganadditionalquantityofindustry，andinraisingagreaterannualproduce。
　　ThoughBritainwereentirelyexcludedfromthePortugaltrade，itcouldfindverylittledifficultyinprocuringalltheannualsuppliesofgoldwhichitwants，eitherforthepurposesofplate，orofcoin，orofforeigntrade。Gold，likeeveryothercommodity，isalwayssomewhereoranothertobegotforitsvaluebythosewhohavethatvaluetogiveforit。TheannualsurplusofgoldinPortugal，besides，wouldstillbesentabroad，andthoughnotcarriedawaybyGreatBritain，wouldbecarriedawaybysomeothernation，whichwouldbegladtosellitagainforitsprice，inthesamemannerasGreatBritaindoesatpresent。
　　InbuyinggoldofPortugal，indeed，webuyitatthefirsthand;
　　whereas，inbuyingitofanyothernation，exceptSpain，weshouldbuyitatthesecond，andmightpaysomewhatdearer。Thisdifference，however，wouldsurelybetooinsignificanttodeservethepublicattention。
　　Almostallourgold，itissaid，comesfromPortugal。Withothernationsthebalanceoftradeiseitheragainstus，ornotmuchinourfavour。Butweshouldrememberthatthemoregoldweimportfromonecountry，thelesswemustnecessarilyimportfromallothers。Theeffectualdemandforgold，likethatforeveryothercommodity，isineverycountrylimitedtoacertainquantity。Ifnine—tenthsofthisquantityareimportedfromonecountry，thereremainsatenthonlytobeimportedfromallothers。Themoregoldbesidesthatisannuallyimportedfromsomeparticularcountries，overandabovewhatisrequisiteforplateandforcoin，themoremustnecessarilybeexportedtosomeothers;andthemorethatmostinsignificantobjectofmodernpolicy，thebalanceoftrade，appearstobeinourfavourwithsomeparticularcountries，themoreitmustnecessarilyappeartobeagainstuswithmanyothers。
　　Itwasuponthissillynotion，however，thatEnglandcouldnotsubsistwithoutthePortugaltrade，that，towardstheendofthelatewar，FranceandSpain，withoutpretendingeitheroffenceorprovocation，requiredtheKingofPortugaltoexcludeallBritishshipsfromhisports，andforthesecurityofthisexclusion，toreceiveintothemFrenchorSpanishgarrisons。HadthekingofPortugalsubmittedtothoseignominioustermswhichhisbrother—in—lawthekingofSpainproposedtohim，BritainwouldhavebeenfreedfromamuchgreaterinconveniencythanthelossofthePortugaltrade，theburdenofsupportingaveryweakally，sounprovidedofeverythingforhisowndefencethatthewholepowerofEngland，haditbeendirectedtothatsinglepurpose，couldscarceperhapshavedefendedhimforanothercampaign。ThelossofthePortugaltradewould，nodoubt，haveoccasionedaconsiderableembarrassmenttothemerchantsatthattimeengagedinit，whomightnot，perhaps，havefoundout，forayearortwo，anyotherequallyadvantageousmethodofemployingtheircapitals;andinthiswouldprobablyhaveconsistedalltheinconveniencywhichEnglandcouldhavesufferedfromthisnotablepieceofcommercialpolicy。
　　Thegreatannualimportationofgoldandsilverisneitherforthepurposeofplatenorofcoin，butofforeigntrade。A
　　round—aboutforeigntradeofconsumptioncanbecarriedonmoreadvantageouslybymeansofthesemetalsthanofalmostanyothergoods。Astheyaretheuniversalinstrumentsofcommerce，theyaremorereadilyreceivedinreturnforallcommoditiesthananyothergoods;andonaccountoftheirsmallbulkandgreatvalue，itcostslesstotransportthembackwardandforwardfromoneplacetoanotherthanalmostanyothersortofmerchandise，andtheyloselessoftheirvaluebybeingsotransported。Ofallthecommodities，therefore，whichareboughtinoneforeigncountry，fornootherpurposebuttobesoldorexchangedagainforsomeothergoodsinanother，therearenonesoconvenientasgoldandsilver。Infacilitatingallthedifferentround—aboutforeigntradesofconsumptionwhicharecarriedoninGreatBritainconsiststheprincipaladvantageofthePortugaltrade;andthoughitisnotacapitaladvantage，itisnodoubtaconsiderableone。
　　Thatanyannualadditionwhich，itcanreasonablybesupposed，ismadeeithertotheplateortothecoinofthekingdom，couldrequirebutaverysmallannualimportationofgoldandsilver，seemsevidentenough;andthoughwehadnodirecttradewithPortugal，thissmallquantitycouldalways，somewhereoranother，beveryeasilygot。
　　Thoughthegoldsmith’stradebeveryconsiderableinGreatBritain，thefar。greaterpartofthenewplatewhichtheyannuallysellismadefromotheroldplatemelteddown;sothattheadditionannuallymadetothewholeplateofthekingdomcannotbeverygreat，andcouldrequirebutaverysmallannualimportation。
　　Itisthesamecasewiththecoin。Nobodyimagines，I
　　believe，thateventhegreaterpartoftheannualcoinage，amounting，fortenyearstogether，beforethelatereformationofthegoldcoin，toupwardsofeighthundredthousandpoundsayearingold，wasanannualadditiontothemoneybeforecurrentinthekingdom。Inacountrywheretheexpenseofthecoinageisdefrayedbythegovernment，thevalueofthecoin，evenwhenitcontainsitsfullstandardweightofgoldandsilver，canneverbemuchgreaterthanthatofanequalquantityofthosemetalsuncoined;becauseitrequiresonlythetroubleofgoingtothemint，andthedelayperhapsofafewweeks，toprocureforanyquantityofuncoinedgoldandsilveranequalquantityofthosemetalsincoin。But，ineverycountry，thegreaterpartofthecurrentcoinisalmostalwaysmoreorlessworn，orotherwisedegeneratedfromitsstandard。InGreatBritainitwas，beforethelatereformation，agooddealso，thegoldbeingmorethantwopercentandthesilvermorethaneightpercentbelowitsstandardweight。Butifforty—fourguineasandahalf，containingtheirfullstandardweight，apoundweightofgold，couldpurchaseverylittlemorethanapoundweightcouldofuncoinedgold，forty—fourguineasandahalfwantingapartoftheirweightcouldnotpurchaseapoundweight，andsomethingwastobeaddedinordertomakeupthedeficiency。Thecurrentpriceofgoldbullionatmarket，therefore，insteadofbeingthesamewiththemintprice，orL4614s。6d。，wasthenaboutL4714s。andsometimesaboutL48。Whenthegreaterpartofthecoin，however，wasinthisdegeneratecondition，forty—fourguineasandahalf，freshfromthemint，wouldpurchasenomoregoodsinthemarketthananyotherordinaryguineas，becausewhentheycameintothecoffersofthemerchant，beingconfoundedwithothermoney，theycouldnotafterwardsbedistinguishedwithoutmoretroublethanthedifferencewasworth。LikeotherguineastheywereworthnomorethanL4614s。6d。Ifthrownintothemeltingpot，however，theyproduced，withoutanysensibleloss，apoundweightofstandardgold，whichcouldbesoldatanytimeforbetweenL47
　　14s。andL48eitherofgoldorsilver，asfitforallthepurposesofcoinasthatwhichhadbeenmelteddown。Therewasanevidentprofit，therefore，inmeltingdownnewcoinedmoney，anditwasdonesoinstantaneously，thatnoprecautionofgovernmentcouldpreventit。Theoperationsofthemintwere，uponthisaccount，somewhatlikethewebofPenelope;theworkthatwasdoneinthedaywasundoneinthenight。Themintwasemployed，notsomuchinmakingdailyadditionstothecoin，asinreplacingtheverybestpartofitwhichwasdailymelteddown。
　　Weretheprivatepeople，whocarrytheirgoldandsilvertothemint，topaythemselvesforthecoinage，itwouldaddtothevalueofthosemetalsinthesamemannerasthefashiondoestothatofplate。Coinedgoldandsilverwouldbemorevaluablethanuncoined。Theseignorage，ifitwasnotexorbitant，wouldaddtothebullionthewholevalueoftheduty;because，thegovernmenthavingeverywheretheexclusiveprivilegeofcoining，nocoincancometomarketcheaperthantheythinkpropertoaffordit。Ifthedutywasexorbitantindeed，thatis，ifitwasverymuchabovetherealvalueofthelabourandexpenserequisiteforcoinage，falsecoiners，bothathomeandabroad，mightbeencouraged，bythegreatdifferencebetweenthevalueofbullionandthatofcoin，topourinsogreataquantityofcounterfeitmoneyasmightreducethevalueofthegovernmentmoney。InFrance，however，thoughtheseignorageiseightpercent，nosensibleinconveniencyofthiskindisfoundtoarisefromit。
　　Thedangerstowhichafalsecoineriseverywhereexposed，ifhelivesinthecountryofwhichhecounterfeitsthecoin，andtowhichhisagentsorcorrespondentsareexposedifhelivesinaforeigncountry，arebyfartoogreattobeincurredforthesakeofaprofitofsixorsevenpercent。
　　TheseignorageinFranceraisesthevalueofthecoinhigherthaninproportiontothequantityofpuregoldwhichitcontains。ThusbytheedictofJanuary1726，themintpriceoffinegoldoftwenty—fourcaratswasfixedatsevenhundredandfortylivresninesousandonedenierone—eleventh，themarkofeightParisounces。ThegoldcoinofFrance，makinganallowancefortheremedyofthemint，containstwenty—onecaratsandthree—fourthsoffinegold，andtwocaratsonefourthofalloy。
　　Themarkofstandardgold，therefore，isworthnomorethanaboutsixhundredandseventy—onelivrestendeniers。ButinFrancethismarkofstandardgoldiscoinedintothirtyLouisd’orsoftwenty—fourlivreseach，orintosevenhundredandtwentylivres。
　　Thecoinage，therefore，increasesthevalueofamarkofstandardgoldbullion，bythedifferencebetweensixhundredandseventy—onelivrestendeniers，andsevenhundredandtwentylivres;orbyforty—eightlivresnineteensousandtwodeniers。
　　Aseignoragewill，inmanycases，takeawayaltogether，andwill，inallcases，diminishtheprofitofmeltingdownthenewcoin。Thisprofitalwaysarisesfromthedifferencebetweenthequantityofbullionwhichthecommoncurrencyoughttocontain，andthatwhichitactuallydoescontain。Ifthisdifferenceislessthantheseignorage，therewillbelossinsteadofprofit。
　　Ifitisequaltotheseignorage，therewillneitherbeprofitnorloss。Ifitisgreaterthantheseignorage，therewillindeedbesomeprofit，butlessthaniftherewasnoseignorage。If，beforethelatereformationofthegoldcoin，forexample，therehadbeenaseignorageoffivepercentuponthecoinage，therewouldhavebeenalossofthreepercentuponthemeltingdownofthegoldcoin。Iftheseignoragehadbeentwopercenttherewouldhavebeenneitherprofitnorloss。Iftheseignoragehadbeenonepercenttherewouldhavebeenaprofit，butofonepercentonlyinsteadoftwopercent。Wherevermoneyisreceivedbytale，therefore，andnotbyweight，aseignorageisthemosteffectualpreventativeofthemeltingdownofthecoin，and，forthesamereason，ofitsexportation。Itisthebestandheaviestpiecesthatarecommonlyeithermelteddownorexported;becauseitisuponsuchthatthelargestprofitsaremade。
　　Thelawforencouragementofthecoinage，byrenderingitduty—free，wasfirstenactedduringthereignofCharlesIIforalimitedtime;andafterwardscontinued，bydifferentprolongations，till1769，whenitwasrenderedperpetual。TheBankofEngland，inordertoreplenishtheircofferswithmoney，arefrequentlyobligedtocarrybulliontothemint;anditwasmorefortheirinterest，theyprobablyimagined，thatthecoinageshouldbeattheexpenseofthegovernmentthanattheirown。Itwasprobablyoutofcomplaisancetothisgreatcompanythatthegovernmentagreedtorenderthislawperpetual。Shouldthecustomofweighinggold，however，cometobedisused，asitisverylikelytobeonaccountofitsinconveniency;shouldthegoldcoinofEnglandcometobereceivedbytale，asitwasbeforethelaterecoinage，thisgreatcompanymay，perhaps，findthattheyhaveuponthis，asuponsomeotheroccasions，mistakentheirowninterestnotalittle。
　　Beforethelaterecoinage，whenthegoldcurrencyofEnglandwastwopercentbelowitsstandardweight，astherewasnoseignorage，itwastwopercentbelowthevalueofthatquantityofstandardgoldbullionwhichitoughttohavecontained。Whenthisgreatcompany，therefore，boughtgoldbullioninordertohaveitcoined，theywereobligedtopayforittwopercentmorethanitwasworthaftercoinage。Butiftherehadbeenaseignorageoftwopercentuponthecoinage，thecommongoldcurrency，thoughtwopercentbelowitsstandardweight，wouldnotwithstandinghavebeenequalinvaluetothequantityofstandardgoldwhichitoughttohavecontained;thevalueofthefashioncompensatinginthiscasethediminutionoftheweight。
　　Theywouldindeedhavehadtheseignoragetopay，whichbeingtwopercent，theirlossuponthewholetransactionwouldhavebeentwopercentexactlythesame，butnogreaterthanitactuallywas。
　　Iftheseignoragehadbeenfivepercent，andthegoldcurrencyonlytwopercentbelowitsstandardweight，thebankwouldinthiscasehavegainedthreepercentuponthepriceofthebullion;butastheywouldhavehadaseignorageoffivepercenttopayuponthecoinage，theirlossuponthewholetransactionwould，inthesamemanner，havebeenexactlytwopercent。
　　Iftheseignoragehadbeenonlyonepercentandthegoldcurrencytwopercentbelowitsstandardweight，thebankwouldinthiscasehavelostonlyonepercentuponthepriceofthebullion;butastheywouldlikewisehavehadaseignorageofonepercenttopay，theirlossuponthewholetransactionwouldhavebeenexactlytwopercentinthesamemannerasinallothercases。
　　Iftherewasareasonableseignorage，whileatthesametimethecoincontaineditsfullstandardweight，asithasdoneverynearlysincethelastrecoinage，whateverthebankmightlosebytheseignorage，theywouldgainuponthepriceofthebullion;
　　andwhatevertheymightgainuponthepriceofthebullion，theywouldlosebytheseignorage。Theywouldneitherlosenorgain，therefore，uponthewholetransaction，andtheywouldinthis，asinalltheforegoingcases，beexactlyinthesamesituationasiftherewasnoseignorage。
　　Whenthetaxuponacommodityissomoderateasnottoencouragesmuggling，themerchantwhodealsinit，thoughheadvances，doesnotproperlypaythetax，ashegetsitbackinthepriceofthecommodity。Thetaxisfinallypaidbythelastpurchaserorconsumer。Butmoneyisacommoditywithregardtowhicheverymanisamerchant。Nobodybuysitbutinordertosellitagain;andwithregardtoitthereisinordinarycasesnolastpurchaserorconsumer。Whenthetaxuponcoinage，therefore，issomoderateasnottoencouragefalsecoining，thougheverybodyadvancesthetax，nobodyfinallypaysit;
　　becauseeverybodygetsitbackintheadvancedvalueofthecoin。
　　Amoderateseignorage，therefore，wouldnotinanycaseaugmenttheexpenseofthebank，orofanyotherprivatepersonswhocarrytheirbulliontothemintinordertobecoined，andthewantofamoderateseignoragedoesnotinanycasediminishit。Whetherthereisorisnotaseignorage，ifthecurrencycontainsitsfullstandardweight，thecoinagecostsnothingtoanybody，andifitisshortofthatweight，thecoinagemustalwayscostthedifferencebetweenthequantityofbullionwhichoughttobecontainedinit，andthatwhichactuallyiscontainedinit。
　　Thegovernment，therefore，whenitdefraystheexpenseofcoinage，notonlyincurssomesmallexpense，butlosessomesmallrevenuewhichitmightgetbyaproperduty;andneitherthebanknoranyotherprivatepersonsareinthesmallestdegreebenefitedbythisuselesspieceofpublicgenerosity。
　　Thedirectorsofthebank，however，wouldprobablybeunwillingtoagreetotheimpositionofaseignorageupontheauthorityofaspeculationwhichpromisesthemnogain，butonlypretendstoinsurethemfromanyloss。Inthepresentstateofthegoldcoin，andaslongasitcontinuestobereceivedbyweight，theycertainlywouldgainnothingbysuchachange。Butifthecustomofweighingthegoldcoinshouldevergointomisuse，asitisverylikelytodo，andifthegoldcoinshouldeverfallintothesamestateofdegradationinwhichitwasbeforethelaterecoinage，thegain，ormoreproperlythesavingsofthebank，inconsequenceoftheimpositionofaseignorage，wouldprobablybeveryconsiderable。TheBankofEnglandistheonlycompanywhichsendsanyconsiderablequantityofbulliontothemint，andtheburdenoftheannualcoinagefallsentirely，oralmostentirely，uponit。Ifthisannualcoinagehadnothingtodobuttorepairtheunavoidablelossesandnecessarywearandtearofthecoin，itcouldseldomexceedfiftythousandoratmostahundredthousandpounds。Butwhenthecoinisdegradedbelowitsstandardweight，theannualcoinagemust，besidesthis，fillupthelargevacuitieswhichexportationandthemeltingpotarecontinuallymakinginthecurrentcoin。Itwasuponthisaccountthatduringthetenortwelveyearsimmediatelyprecedingthelatereformationofthegoldcoin，theannualcoinageamountedatanaveragetomorethaneighthundredandfiftythousandpounds。Butiftherehadbeenaseignorageoffourorfivepercentuponthegoldcoin，itwouldprobably，eveninthestateinwhichthingsthenwere，haveputaneffectualstoptothebusinessbothofexportationandofthemeltingpot。Thebank，insteadoflosingeveryyearabouttwoandahalfpercentuponthebullionwhichwastobecoinedintomorethaneighthundredandfiftythousandpounds，orincurringanannuallossofmorethantwenty—onethousandtwohundredandfiftypounds，wouldnotprobablyhaveincurredthetenthpartofthatloss。
　　TherevenueallottedbyParliamentfordefrayingtheexpenseofthecoinageisbutfourteenthousandpoundsayear，andtherealexpensewhichitcoststhegovernment，orthefeesoftheofficersofthemint，donotuponordinaryoccasions，Iamassured，exceedthehalfofthatsum。Thesavingofsoverysmallasum，oreventhegainingofanotherwhichcouldnotwellbemuchlarger，areobjectstooinconsiderable，itmaybethought，todeservetheseriousattentionofgovernment。Butthesavingofeighteenortwentythousandpoundsayearincaseofaneventwhichisnotimprobable，whichhasfrequentlyhappenedbefore，andwhichisverylikelytohappenagain，issurelyanobjectwhichwelldeservestheseriousattentionevenofsogreatacompanyastheBankofEngland。
　　Someoftheforegoingreasoningsandobservationsmightperhapshavebeenmoreproperlyplacedinthosechaptersofthefirstbookwhichtreatoftheoriginanduseofmoney，andofthedifferencebetweentherealandthenominalpriceofcommodities。
　　Butasthelawfortheencouragementofcoinagederivesitsoriginfromthosevulgarprejudiceswhichhavebeenintroducedbythemercantilesystem，Ijudgeditmorepropertoreservethemforthischapter。Nothingcouldbemoreagreeabletothespiritofthatsystemthanasortofbountyupontheproductionofmoney，theverythingwhich，itsupposes，constitutesthewealthofeverynation。Itisoneofitsmanyadmirableexpedientsforenrichingthecountry。
　　CHAPTERVII
　　OfColoniesPART1
　　OftheMotivesforestablishingnewColoniesTHEinterestwhichoccasionedthefirstsettlementofthedifferentEuropeancoloniesinAmericaandtheWestIndieswasnotaltogethersoplainanddistinctasthatwhichdirectedtheestablishmentofthoseofancientGreeceandRome。
　　AllthedifferentstatesofancientGreecepossessed，eachofthem，butaverysmallterritory，andwhenthepeopleinanyoneofthemmultipliedbeyondwhatthatterritorycouldeasilymaintain，apartofthemweresentinquestofanewhabitationinsomeremoteanddistantpartoftheworld;thewarlikeneighbourswhosurroundedthemonallsides，renderingitdifficultforanyofthemtoenlargeverymuchitsterritoryathome。ThecoloniesoftheDoriansresortedchieflytoItalyandSicily，which，inthetimesprecedingthefoundationofRome，wereinhabitedbybarbarousanduncivilisednations:thoseoftheIoniansandAeolians，thetwoothergreattribesoftheGreeks，toAsiaMinorandtheislandsoftheAegeanSea，ofwhichtheinhabitantsseematthattimetohavebeenprettymuchinthesamestateasthoseofSicilyandItaly。Themothercity，thoughsheconsideredthecolonyasachild，atalltimesentitledtogreatfavourandassistance，andowinginreturnmuchgratitudeandrespect，yetconsidereditasanemancipatedchildoverwhomshepretendedtoclaimnodirectauthorityorjurisdiction。Thecolonysettleditsownformofgovernment，enacteditsownlaws，electeditsownmagistrates，andmadepeaceorwarwithitsneighboursasanindependentstate，whichhadnooccasiontowaitfortheapprobationorconsentofthemothercity。Nothingcanbemoreplainanddistinctthantheinterestwhichdirectedeverysuchestablishment。
　　Rome，likemostoftheotherancientrepublics，wasoriginallyfoundeduponanAgrarianlawwhichdividedthepublicterritoryinacertainproportionamongthedifferentcitizenswhocomposedthestate。Thecourseofhumanaffairsbymarriage，bysuccession，andbyalienation，necessarilyderangedthisoriginaldivision，andfrequentlythrewthelands，whichhadbeenallottedforthemaintenanceofmanydifferentfamilies，intothepossessionofasingleperson。Toremedythisdisorder，forsuchitwassupposedtobe，alawwasmaderestrictingthequantityoflandwhichanycitizencouldpossesstofivehundredjugera，aboutthreehundredandfiftyEnglishacres。Thislaw，however，thoughwereadofitshavingbeenexecutedupononeortwooccasions，waseitherneglectedorevaded，andtheinequalityoffortuneswentoncontinuallyincreasing。Thegreaterpartofthecitizenshadnoland，andwithoutitthemannersandcustomsofthosetimesrendereditdifficultforafreemantomaintainhisindependency。Inthepresenttime，thoughapoormanhasnolandofhisown，ifhehasalittlestockhemayeitherfarmthelandsofanother，orhemaycarryonsomelittleretailtrade;andifhehasnostock，hemayfindemploymenteitherasacountrylabourerorasanartificer。ButamongtheancientRomansthelandsoftherichwereallcultivatedbyslaves，whowroughtunderanoverseerwhowaslikewiseaslave;sothatapoorfreemanhadlittlechanceofbeingemployedeitherasafarmerorasalabourer。Alltradesandmanufacturestoo，eventheretailtrade，werecarriedonbytheslavesoftherichforthebenefitoftheirmasters，whosewealth，authority，andprotectionmadeitdifficultforapoorfreemantomaintainthecompetitionagainstthem。Thecitizens，therefore，whohadnoland，hadscarceanyothermeansofsubsistencebutthebountiesofthecandidatesattheannualelections。Thetribunes，whentheyhadamindtoanimatethepeopleagainsttherichandthegreat，puttheminmindoftheancientdivisionoflands，andrepresentedthatlawwhichrestrictedthissortofprivatepropertyasthefundamentallawoftherepublic。Thepeoplebecameclamoroustogetland，andtherichandthegreat，wemaybelieve，wereperfectlydeterminednottogivethemanypartoftheirs。Tosatisfytheminsomemeasuretherefore，theyfrequentlyproposedtosendoutanewcolony。ButconqueringRomewas，evenuponsuchoccasions，undernonecessityofturningouthercitizenstoseektheirfortune，ifonemaysayso，throughthewideworld，withoutknowingwheretheyweretosettle。SheassignedthemlandsgenerallyintheconqueredprovincesofItaly，where，beingwithinthedominionsoftherepublic，theycouldneverformanindependentstate;butwereatbestbutasortofcorporation，which，thoughithadthepowerofenactingbye—lawsforitsowngovernment，wasatalltimessubjecttothecorrection，jurisdiction，andlegislativeauthorityofthemothercity。Thesendingoutacolonyofthiskindnotonlygavesomesatisfactiontothepeople，butoftenestablishedasortofgarrison，too，inanewlyconqueredprovince，ofwhichtheobediencemightotherwisehavebeendoubtful。ARomancolonytherefore，whetherweconsiderthenatureoftheestablishmentitselforthemotivesformakingit，wasaltogetherdifferentfromaGreekone。Thewordsaccordingly，whichintheoriginallanguagesdenotethosedifferentestablishments，haveverydifferentmeanings。TheLatinword（Colonia）signifiessimplyaplantation。TheGreekwordapoikia，onthecontrary，signifiesaseparationofdwelling，adeparturefromhome，agoingoutofthehouse。But，thoughtheRomancolonieswereinmanyrespectsdifferentfromtheGreekones，theinterestwhichpromptedtoestablishthemwasequallyplainanddistinct。Bothinstitutionsderivedtheirorigineitherfromirresistiblenecessity，orfromclearandevidentutility。
　　TheestablishmentoftheEuropeancoloniesinAmericaandtheWestIndiesarosefromnonecessity:andthoughtheutilitywhichhasresultedfromthemhasbeenverygreat，itisnotaltogethersoclearandevident。Itwasnotunderstoodattheirfirstestablishment，andwasnotthemotiveeitherofthatestablishmentorofthediscoverieswhichgaveoccasiontoit，andthenature，extent，andlimitsofthatutilityarenot，perhaps，wellunderstoodatthisday。
　　TheVenetians，duringthefourteenthandfifteenthcenturies，carriedonaveryadvantageouscommerceinspiceries，andotherEastIndiagoods，whichtheydistributedamongtheothernationsofEurope。TheypurchasedthemchieflyinEgypt，atthattimeunderthedominionoftheMamelukes，theenemiesoftheTurks，ofwhomtheVenetiansweretheenemies;andthisunionofinterest，assistedbythemoneyofVenice，formedsuchaconnectionasgavetheVenetiansalmostamonopolyofthetrade。
　　ThegreatprofitsoftheVenetianstemptedtheavidityofthePortuguese。Theyhadbeenendeavouring，duringthecourseofthefifteenthcentury，tofindoutbyseaawaytothecountriesfromwhichtheMoorsbroughtthemivoryandgolddustacrossthedesert。TheydiscoveredtheMadeiras，theCanaries，theAzores，theCapedeVerdeIslands，thecoastofGuinea，thatofLoango，Congo，Angola，andBenguela，and，finally，theCapeofGoodHope。
　　TheyhadlongwishedtoshareintheprofitabletrafficoftheVenetians，andthislastdiscoveryopenedtothemaprobableprospectofdoingso。In1497，VascodeGamasailedfromtheportofLisbonwithafleetoffourships，andafteranavigationofelevenmonthsarriveduponthecoastofIndostan，andthuscompletedacourseofdiscoverieswhichhadbeenpursuedwithgreatsteadiness，andwithverylittleinterruption，fornearlyacenturytogether。
　　Someyearsbeforethis，whiletheexpectationsofEuropewereinsuspenseabouttheprojectsofthePortuguese，ofwhichthesuccessappearedyettobedoubtful，aGenoesepilotformedtheyetmoredaringprojectofsailingtotheEastIndiesbytheWest。ThesituationofthosecountrieswasatthattimeveryimperfectlyknowninEurope。ThefewEuropeantravellerswhohadbeentherehadmagnifiedthedistance，perhapsthroughsimplicityandignorance，whatwasreallyverygreatappearingalmostinfinitetothosewhocouldnotmeasureit;or，perhaps，inordertoincreasesomewhatmorethemarvellousoftheirownadventuresinvisitingregionssoimmenselyremotefromEurope。ThelongerthewaywasbytheEast，Columbusveryjustlyconcluded，theshorteritwouldbebytheWest。Heproposed，therefore，totakethatway，asboththeshortestandthesurest，andhehadthegoodfortunetoconvinceIsabellaofCastileoftheprobabilityofhisproject。HesailedfromtheportofPalosinAugust1492，nearlyfiveyearsbeforetheexpeditionofVascodeGamasetoutfromPortugal，and，afteravoyageofbetweentwoandthreemonths，discoveredfirstsomeofthesmallBahamasorLucayanislands，andafterwardsthegreatislandofSt。Domingo。