Itisnotthesameoftermsinanyotherscience，asabundantlyappearsfromthequestionnowbeforeus:coiniscalledarepresentationbecauseitisanequivalent；andbecauseitisarepresentation，itmustbearanexactproportiontothethingrepresented。Andsinceinsomeparticularexamples，thisrepresentationappearstohold；thereforetheruleismadegeneral，althoughcircumstancesmaybedifferent。If，forexample，amerchant，oraprivateperson，hasinhandathousandpoundsworthofgrain，nodoubtthatthethousandthpartofthemerchandizeisworththethousandthpartofthesum；becausebotharedeterminateintheirquantityandquality。buttheparcelsofthiscorn，thoughexactlyproportionedtothepriceofthewhole，donotdrawtheirvaluefromthisproportion，butfromthetotalvalueofthewholemass；whichisdeterminedfromthecomplicatedoperationsofdemandandcompetition，ashasbeensaid，andnotfromthespecieofthecountrywhichcanbearnoproportioneithertothequantityorqualityofthegrain。
　　Theremaybevastquantitiesofcoininacountryoflittleindustry；and，viceversa，coinisconstantlyanequivalent，butneverarepresentationmorethananyotherequivalentwhichmaybecontrived。Werethedoctrineofthissecondpropositiontrue，everycommodityinacountryshouldbesoldlikeaparcelofthegrainintheforegoingexample，bytheruleofthree；asthepropertyofallthelabourandmanufacturesofthecountryistothepartIintendtoalienate，soisallthegoldandsilverinthecountrytothepartIamentitledtoreceive。Thisidealofregulatingpricesmaybeveryphilosophical，butitisnotverymercantile。Inowproceedtothethirdandlastproposition。
　　Increasethecommodities，theybecomecheaper:increasethemoney，theyriseintheirvalue。
　　Thispropositionismuchtoogeneral；thefirstpartofitiscommonlytrue，thelastpartismorecommonlyfalse。
　　Whatcanincreasecommodities，butademandforthem？Ifthedemandbeequaltotheaugmentation，therewillbenoalterationintheprice。
　　Letextraordinaryplentyincreasesubsistence，itwillnaturallyfallintheprice；butitmaybehoardedup，andmadetoriseinspiteoftheplenty；itmaybedemandedfromabroad；
　　thisalsowillmakeitrise。
　　Lettheproductionofsuperfluities，notexportable，beproducedbyworkmenwhosebranchisoverstocked，priceswillundoubtedlyfall。Thesameobservationsaretrueofadiminutioninthequantityofcommodities。Ifthisdiminishbydegrees，fromadiminutionofdemand，thepriceofthemwillnotrise。
　　Ifthequantityofsubsistencefallbelowthenecessaryconsumptionoftheinhabitants，thepriceofitwillundoubtedlyrise。
　　Ifthearticlesofsuperfluitybediminished，priceswillriseinproportiononlytotheeagernesstobuy，thatis，tothecompetition，nottothedeficiency。Ontheotherhand，astocoinormoney。
　　Increasethemoney，nothingcanbeconcludedastoprices，becauseitisnotcertainthatpeoplewillincreasetheirexpencesinproportiontotheirwealth；andalthoughtheyshould，themomenttheiradditionaldemandhastheeffectofproducingasufficientsupply，priceswillreturntotheoldstandard。
　　Butdiminishthequantityofspecieusuallyemployedincirculation，youbothretardthis，andhurttheindustrious；
　　becausewesupposetheformerquantityexactlysufficienttopreservebothinthejustproportiontothedesiresandwantsoftheinhabitants。
　　Thesearebutafewofthenumberlessmodificationsnecessarytobeappliedtothisgeneralrule；andIhopewhatIhavesaidwilljustifytheobservationIhavemadeonthewholedoctrine；
　　towit，thatitismuchmorespeciousthansolid，ineveryoneofitsthreebranches。
　　Letmejustproposeonequestionmoreuponthissubject，andthenIshallconclude。
　　SupposethespecieofEuropetocontinueincreasinginquantityeveryyear，untilitamountstotentimesthepresentquantity，willpricesriseinproportion？
　　Ianswer，thatsuchanaugmentationmighthappen，withoutthesmallestalterationuponprices，orthatitmightoccasionaverygreatone，accordingtocircumstances。Wereindustrytoincreasetotentimeswhatitisatpresent，thatistosay，weretheproduceofittoincreasetotentimesitspresentvalue，accordingtotheactualstandardofprices，thevalueofeverymanufactureandproducemightremainwithoutalteration。Thissuppositionispossible:becausenomancantelltowhatextentdemandmaycarryindustry。If，ontheotherhandthescaleofdemandcouldbesupposedtopreponderate，soastodrawallthewealthintocirculation，withouthavingtheeffectofaugmentingthesupplywhichItaketobeimpossiblethenpriceswouldrisetotentimesthepresentstandard，atleastinmanyarticles。
　　ThissolutionisentirelyconsistentbothwithMrHume’sprincipleandmine；becausenothingissoeasyinanhypothesis，astoestablishproportionsbetweenthings，whichinthemselvesarebeyondallthepowersofcomputation。
　　Chap。XXIX
　　CirculationwithforeignNations，thesamethingastheBalanceofTradeWehaveendeavouredtoshewinaformerchapter，howthecirculationofmoney，giveninexchangeforconsumablecommodities，producesavibrationinthebalanceofdomesticwealth:wearenowtoapplythesameprinciplestothecirculationofforeigntrade；inordertofindout，iftherecanreallybesuchathingasabalanceuponit，whichmayenrichonecountry，andimpoverishanother。
　　Ithasbeensaid，thatwhenmoneyisgivenforaconsumablecommodity，thepersonwhogetsitacquiresabalanceinhisfavour，sosoonashewithwhomhehasexchanged，hasbeguntoconsume。
　　Thatiftwoconsumablecommoditiesareexchanged，thebalancecomestoalevel，whenbothareconsumed。Thatitisthewealthonlywhichisfoundincirculation，whichcanchangeitsbalance；
　　theremaindermustbefoundlockedup，madeintoplate，oremployedinforeigntrade。Andithasbeenobserved，thatthequantityofmoneyfoundincirculation，iseverinproportiontothesaleoftheproduceofindustryandmanufactures；andthatwhenthepreciousmetalsarenotsufficienttocarryonacirculation，proportionabletothedemandsofthosewhohaveanyrealequivalenttogive，symbolicalmoneymaybemadetofillupthevoid，whentheinterestofthestatecomestorequireit。
　　Wehavealsolaiditdownasakindofgeneralrule，thatwhileluxurytendsonlytokeepupdemandtothereasonableproportionofthepowerandinclinationintheindustriouspartofapeopletosupplyit，thenitisadvantageoustoanation；
　　andthatsosoonasitbeginstomakethescaleofhome-demandpreponderate，byformingacompetitionamongthenatives，toconsumewhatstrangersseekfor，thenitishurtful，andhasanevidenttendencytorootoutforeigntrade。Theseprinciplesareallanalogoustooneanother，andshouldberetainedwhileweexaminethequestionbeforeus。
　　Imuststilladd，thatthefluctuationofthebalanceofwealthisconstantlyinclininginfavouroftheindustrious，andagainsttheidleconsumer。Thishoweveradmitsofarestriction，viz。theindustriousmustbesupposedtobefrugal；andtheidle，extravagant。Foriftheindustriousmanconsumethefullproduceofhisownindustry，hewillhavelabouredtoincreasehisconsumptiononly，nothiswealth:andiftheidleperson，byhisfrugality，keepswithintheboundsofhisyearlyincome，hewilltherebyrepaireverydisadvantageincurredbyhissloth，thebalancethenwillstandevenbetweenthem；theindustryinonescale，andthefundalreadyprovidedintheother，willkeepbothpartiesonalevelasbefore。
　　Inorder，therefore，tomakethebalanceofdomesticwealthturninfavourofapoorman，hemustbebothindustriousandfrugal。
　　Nowletusapplytheseprinciplestoawholenation，consideredasanindividualinthegreatsocietyofmankind。Anindustriouspersonwhoconductshisaffairswithprudence，musteitherbeinawayofgrowingricherbyhisindustry，orofspendinghisincomewithoeconomyanddiscretion:soImustsupposeanationwhichiswellgoverned，eithertobegrowingricherbyforeigntrade，oratleastinastateofnotbecomingpoorerbyit。
　　Itisasmuchthedutyofeverystatesmantowatchovertheconductofthosewhoholdtheforeigncorrespondenceofhispeople，asitisthedutyofthemasterofafamilytowatchoverthosehesendstomarket。
　　IfinditistheopinionofthelearnedMrHume，thatthereisnosuchthingasabalanceoftrade，thatmoneyoveralltheworldislikeafluid，whichmusteverbeuponalevel，andthatsosoonasinanynationthislevelisdestroyedbyanyaccident，whilethenationpreservesthenumberofitsinhabitants，anditsindustry，thewealthmustreturntoalevelasbefore。
　　Toprovethis，hesupposesfourfifthsofallthemoneyinGreatBritaintobeannihilatedinonenight，theconsequenceofwhichheimagineswouldbe，thatalllabourandcommoditieswouldsinkintheirprice，andthatforeignmarketswouldthereforebeentirelysuppliedbythisindustriouspeople，whowouldimmediatelybegintodrawbacksuchaproportionofwealth，aswouldsoonputthemagainuponalevelwiththeirneighbours。
　　Thisreasoningisconsistentwiththeprincipleswehaveexamined，andhumblyrejectedintheprecedingchapter。bothstanduponthesamefoundation，andleadtoachainofconsequencestotallydifferentfromtheprincipleslaiddowninthisinquiry。
　　Myintentionisnotsomuchtorefutetheopinionsofothers，asbrieflytopasstheminreview。Generalpropositions，suchasthosewehavebeentreatingof，areonlytrueorfalse，accordingastheyareunderstoodtobeaccompaniedwithcertainrestrictions，applications，andlimitations:Ishallthereforesaynothingastothepropositionitself，butexamineonlyhowfarthesuddenannihilationofagreatproportionofanation’swealth，cannaturallybefollowedbytheconsequencewhichhasbeensupposed。
　　Forthispurpose，letmesuggestanotherconsequencedifferentfromthatoftheauthor，andflowingfromthedoctrinewehaveestablishedwhichpossiblymighthappen，upontheannihilationoffourfifthsofallthemoneyinGreatBritain。I
　　shalltakenonoticeoftheeffectswhichsosuddenarevolutionmightoccasion；thesehavenotbeenattendedtobytheauthor，andthereforeIshallconsiderthemasoutofthequestion。I
　　shallsupposetheeventtohavehappened，pricestohavebeenreduced，andeveryimmediateinconveniencetohavebeenprevented。Myonlyinquiryshallbeconcerningtheunavoidableconsequencesofsucharevolution，astoforeigntrade，astodrawingbackthemoneyannihilated，andastothepreservingthesamenumberofinhabitants，andthesamedegreeofindustryasbefore。IfIcanshew，thattheeventaloneofannihilatingthespecie，andreducingpricesinproportionwhichIshallallowtobetheconsequenceofitwillhavetheeffectofannihilatingbothindustryandtheindustrious，itcannotafterwardsbeinsistedon，thattherevolutioncanhavetheeffectofdrawingbackaproportionalpartofthegeneralwealthofEurope:becausethepreservationoftheindustriousisconsideredastherequisiteforthispurpose。
　　Herethenistheconsequence，which，inmyhumbleopinion，wouldveryprobablyhappenuponsoextraordinaryanemergency；
　　andIflattermyselfthatmyreaderhasalreadyanticipatedmydecision。
　　TheinhabitantsofGreatBritain，who，uponsuchanoccasion，wouldbefoundinpossessionofalltheexportablenecessariesoflife，andofmanyotherkindsofgoodsdemandedinforeignmarkets，insteadofsellingthemtotheirpoorcountrymen，forapriceproportionedtoourauthor’stariff，namelytothediminutionofthespecie，whichhetakestobetherepresentationofthem，wouldexportthemtoFrance，toHolland，ortoanyothercountrywheretheycouldgetthebestprice，andtheinhabitantsofBritainwouldstarve。
　　Ifitbereplied，thattheexportationwouldnotbeallowed。
　　Ianswer，thatsuchaprohibitionwouldbehighlyseasonable；butquitecontrarytotheprincipleoflayingtradeopen，andimpossibletobeeffectual，asthisauthorjustlyobserves，whenhesays，’Canoneimagine，’thatallcommoditiescouldbesoldinFrance，foratenthoftheprice’theywouldyieldontheothersideofthePyren閑s，withoutfinding’theirwaythither，anddrawingfromthatimmensetreasure？’Supposethisphrasetorunthus:Cananyoneimagine，thatprovisionscouldbesoldinBritain，forafourthpartofthepricetheywouldyieldontheothersideofthewater，withoutfindingtheirwaythither，anddrawingfromthatimmensetreasure？Thisisentirelyinconsistentwithourprinciples，andruinsthewholeofMrHume’sformersupposition:becausetheexportationofthemwouldannihilatetheinhabitants。
　　FromthisIconclude，thatanation，thoughindustriousandpopulous，mayreduceitselftopovertyinthemidstofwealthyneighbours，asaprivateperson，thoughrich，mayreducehimselftowant，inthemidstoftheamusementsandluxuryofLondonorofParis。Andthatboththeoneandtheother，byfollowingadifferentconduct，mayamassgreatsumsofwealth，farabovetheproportionofitamongtheirneighbours。
　　Thisisnotamatteroflongdiscussion。Itisnotbytheimportationofforeigncommodities，andbytheexportationofgoldandsilver，thatanationbecomespoor；itisbyconsumingthesecommoditieswhenimported。Themomenttheconsumptionbegins，thebalanceturns；consequently，itisevidentlyagainsttheprincipleswhichwenowexamine，eithertosellathome，ordestroy，confiscatedgoods。Theonlywayofrepairingthedamagedonebysuchfrauds，istoexportthemerchandize，and，bysellingitcheapinothercountries，tohurtthetradeofthecountrywhichfirsthadfurnishedit。Fromthisalsowemayconclude，thatthosenationswhichtradetoIndia，bysendingoutgoldandsilver，forareturninsuperfluitiesofthemostconsumablenature，theconsumptionofwhichtheyprohibitathome，donotineffectspendtheirownspecie，butthatoftheirneighbourswhopurchasethereturnsofitfortheirownconsumption。Consequently，anationmaybecomeimmenselyrichbytheconstantexportationofherspecie，andimportationofallsortsofconsumablecommodities。Butshewoulddowelltobewareofthistrade，whenherinhabitantshavetakenaluxuriousturn，lestsheshouldcometoresemblethedrunkard，whocommencedwine-merchant，inordertomakeexcellentcheerinwinewithallhisfriendswhocametoseehim；orthemilliner，whotookitintoherheadtowearthefinelacessheusedtomakeupforhercustomers。
　　Ifarichnation，whereluxuryiscarriedtothehighestpitch，whereadesireofgainservesasaspurtoindustry，whereallthepoorareatwork，inordertoturnthebalanceofdomesticwealthintheirfavour；ifsuchanation，Isay，befoundtoconsumenotonlythewholeworkoftheinhabitants，butpartofthatofothercountries，itmusthaveabalanceoftradeagainstit，equivalenttotheamountofforeignconsumption；andthismustbepaidforinspecie，orinanannualinterest，tothediminutionoftheformercapital。Letthistradecontinuelongenough，theywillnotonlycomeattheendoftheirmetals，buttheymayrenderthemselvesvirtuallytributarytoothernations，bypayingtothemannuallyapartoftheincomeoftheirlands，astheinterestdueupontheaccumulatedbalancesofmanyyears’
　　unfavourabletrade。
　　Isitnot，therefore，thedutyofastatesmantopreventtheconsumptionofforeignproduce？Iftapestryorotherelegantfurniture，suchasisseeninacertaingreatcapitalinEurope，wereallowedtobeimportedintoaneighbouringnation；whodoubtsbutthisarticlewouldcarrymoneyoutofthatnation？
　　Itmaybeanswered，thatasmucheleganceofanotherkindmaybesentinreturn。True；anditwouldbeveryluckyifthiscouldbethecase；butthenyoumustsupposeanequalityofeleganceinbothcountries；andfarther，youmustsupposeareciprocaltastefortherespectivespeciesofelegance。Nowthetasteofoneofthecountriesmaybecommontoboth；butnotthatoftheother，thoughnothinginferior，perhaps，intheopinionofathirdparty。Andthedifferencemayproceedfromthis；thattheyoungpeopleofonecountrytravelintotheother，wheretheinhabitantsstayathome:acircumstancewhichwouldproveveryprejudicialtothecountryofthetravellers，ifawisestatesmandidnot，byseasonableprohibitionsuponcertainarticlesofforeignconsumption，preventthebadconsequencesofadoptingatasteforwhathissubjectscannotproduce。
　　Thisfurnishesahint，thatitmightnotbeabadmaximinagreatmonarchy，tohavehousesbuiltandfurnishedinthecapitalforeveryforeignminister，wherethegeneraldistributionoftheapartmentsofeachmightbe，asmuchaspossible，analogoustothetasteofthecountryforwhoseministeritiscalculated:butastothefurniture，tohaveitmadeofthemostelegantdomesticmanufactureseasilytransportable，nicelyadaptedalsototheusesandfashionsofeachforeigncountry。Sucharegulationcouldneverfailofbeinghighlyacceptable，asitwouldproveagreatsavingtoforeignministers，andwouldinsensiblygivethematasteforthemanufacturesandluxuryofthecountrytheyresidein。Ontheotherhand，Ishouldbesofarfromexpectingareturnofthiscivility，thatIwouldrecommendthebestowingofasetoffurniture，asagratificationtoeveryministersentabroadbythestate，whoshouldregularlysellitoffintheplaceofhisresidence，upontheexpirationofhiscommission。
　　Suchanexpencewouldnotcostonepennytothenation，andwouldbeameansofcaptivatingunwarystrangers，whomightbetherebymadetopaydearlyforsuchmarksofpolitenessandcivility。I
　　return。
　　Withoutbeingexpertinthecomputationofexportsandimports，orveryaccurateinexaminingthedifferentcoursesofexchangebetweenthedifferentcitiesofEurope，astatesmanmaylayitdownasamaxim，thatwhateverforeigncommodity，ofwhatsoeverkinditbe，isfoundtobeconsumedwithinthenationhegoverns，sofarthebalanceoftradeisagainsther；andthatsofarasanycommodityproducedeitherbythesoil，orlabouroftheinhabitants，isconsumedbyforeigners，sofarthebalanceisforher。
　　Anationmayinsomemeasurebecomparedtoacountrygentleman，wholivesuponhisland。ThisIsupposetobehisall。
　　Fromithedrawsdirectlyhisnourishment，perhapshisclothesarewroughtupinhisfamily。Ifhebesoveryfrugalasnevertogotomarketforanything，allthespareproducewhichhecansellwillbeclearmoneyinhispurse。Ifheindulgenowandtheninabottleofwine，whichhisfarmdoesnotproduce，hemustgotomarketwithhispurseinhishand；andsosoonashisbottleisout，Ithinkheiseffectuallysomuchpoorerthanhewasbefore。Ifhegoon，andincreasehisconsumptionofsuchthingsasheisobligedtobuy，hewillrunoutthemoneyhehadinhispurse，andbereducedtothesimpleproductionofhisfarm。Ifthenthiscountrygentlemanbepoorer，certainlysomebodymustbericher；andasitisnobodyinhisfamilyitmustbesomeofhisneighbours。
　　Justsoanationwhichhasnooccasiontohaverecoursetoforeignmarkets，inordertosupplyherownconsumption，mustcertainlygrowrichinproportiontoherexportation。
　　Theserichesagainwillnotcirculateathome，inproportiontothedomesticconsumptionofnaturalproduceandmanufactures，butinproportiontothealienationofthemformoney:thesurpluswealthwillstagnateinonewayorother，inthehandsofthemoneygatherers，whoarethesmallconsumers。
　　Whilethereisfoundasufficientquantityofmoneyforcarryingonreciprocalalienations；thosemoneygathererswillnotbeabletoemploytheirstagnatedwealthwithinthenation；
　　butsosoonasthisgatheringhashadtheeffectofdiminishingthespecie，belowtheproportionfoundnecessarytocarryonthecirculation，itwillbegintobelentout，andsoitwillreturntocirculateforatime，untilbytheoperationofthesamecausesitwillfallbackagainintoitsformerrepositories。
　　Shoulditbehereobjected，thatupontheaugmentationofanation’sriches，nomoneycanstagnate；becausepricesrisinginproportiontotheaugmentationofriches，alltheadditionalwealthmustbethrownintocirculation；surelybothreasonandexperiencemustpointouttheweaknessofsuchanobjection。
　　Whileafavourablebalance，therefore，ispreserveduponforeigntrade，anationgrowsricherdaily；andstillpricesremainregulatedasbefore，bythecomplicatedoperationsofdemandandcompetition；andwhenonenationisgrowingricher，othersmustbegrowingpoorer:thisisanexampleofafavourablebalanceoftrade。
　　Whenthissuperfluityofrichesisprofitedofbytheluxuriousindividualsonly，insteadofbeingturnedtoprofitbythestateitself，withaviewtosecuretheadvantagestherebyacquired，thenthebalancetakesacontraryturn:thisisthecasewheneverforeignimportationsforconsumptionareeitherpermittedasagratificationtotheluxuriousdesiresofthewealthy。，orbecauseoftheriseinthepriceofgoodsathome，inconsequenceofdomesticcompetition。Ifitbepermittedpurelyinfavourofthefirst，itmarksalevityandwantofattentionunworthyofastatesman；ifonaccountofthesecond，itshowseitheranignoranceoftherealconsequencesofsotemporaryanexpedient，oradisregardforthewelfareofthelowerclassesofthepeople。
　　Everyaugmentationofpricesathome，mustbeanecessaryconsequenceofmanydomesticcircumstances，andmustberemovedbycorrectingthem，ashasbeen，Ithink，madeclear。Butletitbesupposed，thatfromtheaugmentationofwealthalone，manufacturerscannomoreproduceworksocheapasothernations；
　　Ithinkthatbothinhumanityandprudence，apeopleshouldsubmittotheinconvenienceofpayingdearer。Inhumanity，becausebytheintroductionofforeignmanufactures，youstarvethoseverypeople，whobytheirlabourhaveenrichedyou:inprudence，becausebyopeningyourportstosuchimportationyoudeliberatelythrowawaythatsuperiorityofrichesyouhavebeenatsomuchpainstoacquire。
　　Ifreelygrant，thatparticularpeopledonotregulateeithertheirexpenceortheirschemesofgettingmoney，withaviewtopromotethepublicgood。Onewhohasacoattobuy，willbeverygladtofindapieceofforeignmanufactureatacheaprate；amerchantwillwishtosmugglegoodsonwhichthereisahighduty。Butthequestionis，Whetherastatesmanistowinkatsuchabuses？Ithinkitismuchthesamequestion，asifitwereasked，whetherthemasterofafamilyshould，ingoodoeconomy，allowhisservantstoinvitetheirfriendstodrinkinhiscellar，insteadofcarryingthemtoapublichouse。
　　Butsupposeitbesaid，that’bylayingtradeopen，youaresurethatwealthwillnaturallycometoabalance，inallcountries，andthatallfearsofawrongbalanceoftradeareonlytheeffectofagloomyimagination’。SeeHume’sPoliticalDiscourses，Sect。v。
　　Severalanswersmaybemadetothisobjection。Thefirst，thatitisinordertopreventthiskindofbalance，thatanationevergivesitselfdisquiet:forbybalancehere，isunderstoodanequalityofwealth；andrichnationsaretheyonlywhoareanxious，lesttheyshouldbebroughttosuchanequality。
　　Inthequestionherebeforeus，itisthelossofthissuperiorityofwealthwhichisunderstoodbyabalanceturningagainstatradingnation。If，therefore，itbetheinterestofanation，poorinrespectofitsneighbours，tohavetradelaidopen，thatwealthmay，likeafluid，cometoanequilibrium；Iamsureitistheinterestofarichnation，tocutoffthecommunicationsofhurtfultrade，bysuchimpedimentsasrestrictions，duties，andprohibitions，uponimportation；inorderthat，asbydykes，itswealthmaybekeptabovethelevelofthesurroundingelement。
　　Anotheransweris，thatlayingtradeopenwouldnothavetheeffectproposed；becauseitwoulddestroyindustryinsomecountries，atleast，ifnoteverywhere。Amanufacturemustbeverysolidlyestablishedindeed，nottosufferanyprejudice，byapermissiontoimportthelikecommoditiesfromothercountries。
　　Theverynatureofluxuryissuch，thatitfrequentlypromptspeopletoconsume，fromcapriceandnovelty，whatisreallyinferiortohome-production。Itmaybeanswered，thatthisargumentcutstwoways:forifanationfromcapriceconsumeforeigncommodities，whymaynotothernationsfromcapricelikewise，takeoffthosewhichareleftonhand？Thisreasoningmayappeargood，inatheorywhichdoesnottakeineverypoliticalconsideration。Butapoormanufacturerwhocannotfindwork，becausethebranchheworksinissuppliedfromabroad，cannotlivetillthecapriceofforeignersshallmakethemdemandhislabour。IfacertainnumberofinhabitantsbeemployedinanecessarybranchofConsumption，theremustbeacertaindemandpreservedforit；andwhatevercanrenderthisprecarious，willruintheundertaking，andthoseemployedinit。
　　Athirdansweris，thatanynationwhowouldopenitsportstoallmannerofforeignimportation，withoutbeingassuredofareciprocalpermissionfromallitsneighbours，would，Ithink，verysoonberuined；andifthisbetrue，itisaproofthatabalanceoftradeisapossiblesupposition，andthatproperrestrictionsuponimportationmayturntotheadvantageofastate。
　　Inordertopromoteindustry，astatesmanmustact，aswellaspermitandprotect。CouldeverthewoollenmanufacturehavebeenintroducedintoFrance，fromtheconsiderationofthegreatadvantageEnglandhaddrawnfromit，hadnotthekingundertakenthesupportofit，bygrantingmanyprivilegestotheundertakers，andbylayingstrictprohibitionsonallforeigncloths？Isthereanyotherwayofestablishinganewmanufactureanywhere？
　　Laying，therefore，tradequiteopenwouldhavethiseffect；
　　itwoulddestroy，atfirstatleast，alltheluxuriousarts；
　　consequently，itwoulddiminishconsumption；consequently，diminishthequantityofcirculatingcash；consequently，itwouldpromotehoarding；andconsequently，wouldbringonpovertyinallthestatesofEurope。Nothing，Iimagine，butanuniversalmonarchy，governedbythesamelaws，andadministeredaccordingtooneplanwellconcerted，canbecompatiblewithanuniversallyopentrade。Whiletherearedifferentstates，theremustbeseparateinterests；andwhennoonestatesmanisfoundattheheadoftheseinterests，therecanbenosuchthingasacommongood；andwhenthereisnocommongood，everyinterestmustbeconsideredseparately。Butasthisschemeoflayingtradequiteopen，isnotathinglikelytohappen，wemaysaveourselvesthetroubleofinquiringmoreparticularlyintowhatmightbeitsconsequences；itisenoughtoobserve，thattheymust，intheirnature，beexceedinglycomplex，andifwehavementionedsomeofthem，ithasbeentoapplyprinciplesonly，andshewhowconsequencesmayfollowoneanother:toforetelwhatmustfollowisexceedinglydifficult，ifnotimpossible。
　　Indiscoursingofthebalanceoftrade，Ihavehithertoconsidereditsofaronlyasthespecieofacountryisaugmentedbyit。Inthesubsequentbooks，whereweshallhaveoccasiontobringthissubjectoncemoreuponthecarpet，Ishallshewhowabalancemaybeextremelyfavourablewithoutaugmentingthemassofthepreciousmetals；towit，byprovidingsubsistenceforanadditionalnumberofinhabitants；byincreasingthequantityofshipping，whichisanarticleofwealth；byconstitutingallothernationsdebtorstoit；bytheimportationofmanydurablecommodities，whichmaybeconsideredalsoasarticlesofwealth；
　　asawellfurnishedhouse，awellstoredcellar，anamplewardrobe，andafinestableofhorses，arearticleswhichenhancethevalueoftheinheritanceofalandedman。
　　Thenweshallhaveoccasiontoshewhowindustryheightensthepermanentvalueofanation，asagricultureincreasesitsannualproduce。
　　Chap。XXX
　　MiscellaneousQuestionsandObservationsrelativetoTradeandIndustryIntheformerchapters，wehavebeentreatingofthenatureandconsequencesofcirculation，theeffectsofaugmentationsanddiminutionsofspecie，andthedoctrineofMrHumeconcerningthebalanceoftrade。Theperspicuitywithwhichthisauthorwrites，rendershisideaseasytobeconceived；andwhenpeopleunderstandoneanother，mostdisputesaresoonatanend。
　　Inorder，therefore，tothrowalittlemorelightuponthenatureofthebalanceoftradebetweennations，letmeexaminethefollowingquestionswhilewehavethesubjectofthelastchapterfreshinourmemory。
　　Quest。1。Cananyjudgmentbeformedconcerningthestateofthebalanceoftradeofanation，barelyfromthequantityofspeciethatisfoundinit？
　　Ianswerinthenegative。AgreatproportionofallthespecieofEurope，maybefoundinacountryagainstwhichthebalanceoftradehasstoodregularlyformanyyears。Aninconsiderableproportionofitmaybefoundinanother，whichhashaditasregularlyinitsfavourforthesametime。Herefollowstheproofofthisproposition。
　　Thebalanceuponeveryarticleoftrademaybefavourabletoanation，whichsquandersawaymorethanthereturnsofit，uponforeignwars。Thebalanceofeveryarticleoftrademaybeagainstacountry，whichreceivesmorethanallthelossincurred，eitherfromhermines，orfromcountriestributarytoher，orwhowillinglyfurnishsubsidiesuponmanypoliticalconsiderations。
　　Besidesthesevarieties，therearestillothercircumstancestobecombined，relativetothespecieitself。Themoneyfoundinacountry，mayeitherbesaidtobelongabsolutelytothecountry，whenneitherthestateitself，ortheparticularpeopleofit，areindebttoforeigners；oronlysobyvirtueofaloan。
　　Now，whetheritisborrowedornot，thepropertyofitbelongstothecountry；butthedifferenceconsistsinthis，thatwhenitisborrowed，theacquisitionofthemetalsaddsnothingtothenationalpatrimony，thatistosay，thereisnoacquisitionofwealththerebymade；butwhenitisgainedbyindustry，themoneyaddstotherealvalueofthecountry，inconsequenceoftheprincipleslaiddowninthe26thchapter。
　　Maynotanation，then，havingverylittlegoldandsilver，openasubscriptionformillions，atsomuchpercent？Willnotstrangerslendtoher，whenherownsubjectscannot？Mayshenotyearly，bypayingawaytheinterestofthemoneyborrowed，andbyaheavybalanceoftradeagainsther，beconstantlydiminishingherspecie，andyetbynewcontracts，keepup，andevenincreasethemassofthecirculatingvalue，tosuchadegree，astobepossessedofagreaterproportionofspeciethananyofherneighbours？Farther。
　　Isitnotcertain，thatallnationswillendeavourtothrowtheirreadymoney，notnecessaryfortheirowncirculation，intothatcountrywheretheinterestofmoneyishighwithrespecttotheirown，andwhereconsequentlythevalueofpropertyinlandislow；sincetheymayeitherdrawahighinterestfromit，ormaketheacquisitionofsolidproperty？Forbiddingthereforetheacquisitionofsolidpropertytostrangers，is，ineffect，aprohibitionuponthegratuitousimportationofspecie。Iallowtheremaybeexamplesofpeoplewhomakesuchpurchases，withaviewtodrawtherentsofthelandsbought，outofthecountry；
　　butwhateverbetheintentionatthetimeofpurchase，suchhoweveristheeffectofanestablishedfortuneinacountry，that，soonerorlater，itdrawstheproprietortoit；andwhenthisdoesnothappen，asubsequentalienationcommonlytakesplace。
　　Werethepurchase，therefore，oflandspermitteduniversally，andwereitestablished，thatpropertyinland，toacertainvalue，shouldgivearighttonaturalization，Ihavelittledoubtbutlargesumswouldbebroughtintothosecountries，wherelandsarefoundtobethecheapest；andasnoexportablecommodityisgiveninreturn，thespecieofsuchcountieswillmarkthequantityoflandssold，aswellasthatofmerchandizeexported。
　　Forwantofasufficientextensionoftheseandmanyothercombinations，whichitwouldbeeasytocontrive，MrBelloni，inhisDissertationuponCommerce，Chap。1。Sect。5。fallsintoseveralmistakes，whenhejudgesoftheexportationofcommoditiesofaparticularcountry，bythequantitiesofmoneyfoundinit。
　　’Itbeingthecasesayshethattheplentyofcoin，whereveritbefound，pointsouttheplentyofthosegoodsofwhichitisthemeasure:Suchpersons，therefore，havejustlybeencalledrich，andsuchkingdomswealthy，wherethereisfoundagreatquantityofcoin。Ontheotherhandagain，ifweconsiderthestateofakingdom，andofthecoinwhichisinit，supposingalwaystheintrinsicvalueofthecointobepreservedwhichisnothingelsebutthemeasureofthegoodsandofthepricewhichisgivenforthem，wemustnecessarilyconclude，aseveryonemustacknowledge，thatinsuchcountrieswherewefindplentyofcointheremustbeaconsiderabletradeinexportinggoodsfortheuseofstrangers；andonthecontrary，wherevercoinisfoundtobescarcewemayconcludethatagreatimportationofforeigngoodshastakenplaceofthecoin，whichmusthavegoneabroadforthepaymentofthem。’
　　Theseconsequencesarejust，onlysofarasmoneycomesintoacountryorgoesoutofit，asthepriceofmerchandizeexportedorimported。ButhowmuchmoneyhasnotthisauthorhimselfdrawnintoRomefromEngland，fortheexportationofnothingbutthebillsoftravellers？
　　Ontheotherhand，maynotacountry，whichisactuallyinpossessionofgreatquantitiesofgoldandsilver，callinthesemetalsandcirculate，intheirplace，asymbolicalmoney；maynotanationthen，aswellasaprivateperson，employthisspecieinaprofitableforeigntrade，andgaindailybyit？Mayshenot，aftersometime，withdrawherstock，bycallinginherdebts？Andmayshenotalsocallinherpaper，andremainwithanadditionalacquisitionofspecieinherpocket？Consequently，duringthecirculationofthepaper，nojudgmentcanbeformedastothebalanceofhertrade，byexaminingthestateofherspecie；
　　becauseIcansupposethatatthistimeeveryshillingofitmaybeinthehandsofstrangers。Consequently，therichestnationinEuropemaybethepoorestincirculatingspecie。
　　’ThewritingsofMrGeesaysMrHumeinhisPoliticalDiscourseupontheBalanceofTradestruckthenationwithanuniversalpanic，whentheysawitplainlydemonstrated，byadetailofparticulars，thatthebalancewasagainstthemforsoconsiderableasumasmustleavethemwithoutasingleshillinginfiveorsixyears。But，luckily，twentyyearshavesinceelapsed，alongwithanexpensiveforeignwar；andyet’tiscommonlysupposedthatmoneyisstillmoreplentifulamongusthaninanyformerperiod。’IquotefromtheFrenchtranslation。
　　MrGeewasinthewrongtoconclude，thatthebalanceoftradewouldhavetheeffectofcarryingoffthecoin:andMrHumehasbeenmisledbythismistake，toconclude，thatMrGee’scalculationswerefalse。Iknownothingastothematteroffact；
　　norwhetherMrGeewasagoodorabadjudgeofthequestionhetreated；but，fromwhathasbeensaid，Ihopeitappears，thatthestateofthecoininEngland，atthetimeMrHumewrote，wasnoproofoneitherside。
　　Tojudgeofthebalanceoftradeisonething；tojudgeofthewealthofanationastospecieisanother。Englandmaygreatlyincreaseherspeciebyhertrade，andgreatlydiminishitbyherwars:perhapsthismaybethefact。Shemayalso，atcertaintimes，haveabalanceoftradeagainsther；andgreatsumslaidoutinforeignwarsmaybethemeansofmakingitreturninherfavour。Shouldthisnationbegintopayoffherdebtstostrangers，inreadycoin，mightshenotsoondiminish，perhapsexhaust，thespeciesheisnowpossessedof；yetsurelynoneeverbecamepoorerbypayingofftheirdebts。Nothingissoeasyastohavespecie，whenonehassolidpropertytopledgeforit；andnothingcanbeworsejudged，thantopurchasespeciefromstrangers，attheexpenceofpayinganinterestforit，whenonecancontriveacirculatingvalueinpaper-money，representingthesolidvaluewhichmustbepledgedtostrangersfortheloanoftheirmetals。
　　Butstillitmaybeasked，howithappens，thatnotwithstandingthemostunfavourablebalanceoftrade，nonationeverfoundherselfentirelydrainedofherspecie；andsincewehaveproved，thatthespecieofacountrymaybediminishedbyadisadvantageoustrade，whataretheprincipleswhichpreventthetotaldissipationofit？
　　Thisisaverycuriousquestion，andopensadoortoamultitudeofnewideas，whichwillfurnishabundantmatterofspeculation，whenwecometotreatmoredirectlyofcredit。I
　　shallhereexamineitingeneral，forthesakeonlyofapplyingtheprincipleswehavelaiddown。
　　First，Itmaybesaid，thatascommonprudencepreventsaprivatepersonfromspendingtohislastshilling；sothelikeprudencecommonlyengagesapeopletoputastoptotrade，beforeithastimetotallytodrainthem。Althoughmostpeopledrinkwine，thereisnoreasonwhyeverybodyshouldbedrunk。
　　Secondly，Nothingissocomplicatedasthebalanceoftrade，consideredamongmanynations。Thegeneralwealthcirculatesfromonetoanother，asthemoneywhichthefarmergivesthelandlordcirculatesbacktothefarmer。Inthenumberofhandsthroughwhichthemoneypasses，someareoftheclassoftheluxurious，someofthefrugal；thefirstrepresentsthosenationswholosebythebalance，thelatterthosewhogain。Butthemostindustriousnationsofall，andthosewho，consideredabstractedlyfromextraordinaryaccidents，appearinthewaytoswallowupthewealthofalltherest，are，bythemeansofsuchaccidents，madeliabletoterriblerestitutions。Howmanymillions，forexample，hasEnglandrestoredtothecontinent，inconsequenceofherwarsandsubsidies？Shethenlaysafoundationformanymoreyearsoffavourablebalance，andaccordinglyweseeitreturntoher，asthemoneywhichthestatespendswithinthenationreturnsintotheExchequerattheendoftheyear。
　　Thirdly，Itmaybeasked，howithappensthatnonationhaseverspenttoitslastfarthing，asmanyanindividualhasdone？
　　Ianswer，thatIamfarfrombelievingthatthishasneverhappened；nay，Ibelievethereisnothingmorefrequentorfamiliarthanthisverycase，providedtherichesofacountrybeheresupposedtomeannomorethanthespecieabsolutelybelongingtoherself，notborrowedfromothernations。
　　Ihavesaidabove，thattheacquisitionofmoneybyindustryincreasedtherealvalueofacountry，asmuchastheadditionofaportionofterritory；nowwhatshouldhinderapeoplefromspendingtheirreadymoney，andpreservingtheirlandatthesametime？Becauseayounggentleman，whosefatherhaslefthimafineestateinland，andtenthousandpoundsinreadymoney，hasspentthetenthousandpounds，doesitfollow，thatheisnotworthashilling？Uponthisviewofthequestion，itwill，Ibelieve，begranted，thatDrSwift’sideathatallthespecieofIrelandwouldinashorttimebeexported，inconsequenceofanunfavourablebalanceoftrade，isveryfarfrombeingchimerical，andmaybeexactlytrue；althoughatthistimetherebesixtimesmorecoinincirculationthanever；justasapersonwhoisrunningthroughhisfortune，hascommonlymoremoneyinhishandsthanhisfatherusedtohave，whenhewasacquiringit。LetIrelandpayherdebtstoEngland，andthenreckonherspecie。LetEnglandpayherstoalltheworld，andthenweighhergoldandsilver。Supposethatonsumminguptheaccounts，thereisnotfoundoneshillingineithercountry，isthisanyproofoftheirbeingundone？Bynomeans:coinisonearticleofourwealth，butnevercanbethemeasureofit。
　　IknowlittleofthestateofIreland；butifitbetrue，thatpapermoneyisincreasingdailyinthatcountry，itis，I
　　suppose，becausethespecieisdailyexportedtoEngland，asthereturnsofestatesbelongingtopeoplewhoresidethere，andthattheIrish，insteadofbuyingitbackagainfortheirownuseincirculation，augmenttheirpaper，inproportiontotheprogressoftheirindustry；andbuysuchquantitiesonlyofspecieasarenecessaryforpayingthebalanceoftheirtrade。Nowbybuyingspecie，Idonotsuppose，thattheybringanyovertoIreland，inordertosenditbacktoEngland；butthattheysendovergoodstothevalue，whichtheEnglishmerchantspayinspecie，orinEnglishpaper，tothosewhoarecreditorsuponIreland，forthevalueoftheirrents，&c。
　　Supposethen，forafartherillustrationofsomeprinciples，thatallthelandsofIrelandbelongedtoEnglishmenresidingintheirowncountry，andannuallydrawingfromIrelandtheincomebelongingtothem，whatwouldtheconsequencebe？Ianswer，thataslongasthisportionoftheproduceoflands，whichgoesforrent，andwhichwehavesaidtobethefundprovidedforthesubsistenceofthefreehandswhopurchasetheirownnecessaries，canbeboughtandconsumedbytheIrishthemselves，thatis，inotherwords，whileinIrelandthereisademandforthisportionofthefruits，itwillbepaidfor，eitherincoin，tothediminutionoftheirspecie，orinsomethingwhichmaybeconvertedintomoney；thatis，bytheproduceoftheirindustry，andthus，bythemeansoftrade，willcomeintothehandsoftheEnglishproprietors，eitherinspecie，orinanyotherformtheyjudgeproper。
　　Thatsosoonasthedemandforthisportionoffruitscomestofail，forwantofmoney，orindustry，inIreland，topurchaseit，whatremainsonhandwillbesentovertoEnglandinkind；
　　or，bythewayoftrade，bemadetocirculatewithothernationsinbeef，butter，tallow，&c。whowillgivesilverandgoldforit，totheproprietorsoftheIrishlands。Bysuchadiminutionofdemandinthecountry，forthefruitsoftheearth，thedepopulationofIrelandisimplied；becausetheywhoconsumedthemformerly，consumethemnomore；thatistosay，theyaredead，orhaveleftthecountry。
　　Toconclude；agreatpartofthevalueofacountryisitsproduceandmanufactures；butitdoesnotfollowthattheseshouldasnecessarilydrawintoacountryaproportionalsumofthegoldandsilverofEurope，asashoalofsmallfishesdrawswater-fowl，orascharitydrawsthepoor，orasbeautydrawsadmiration。
　　Quest。2。Cannorulebefoundtojudgeofthebalanceoftradefromthestateofspecie，oratleasttoperceivetheeffectsofthisbalanceinaugmentingordiminishingthemassofriches？
　　Coulditbesupposedthatspecienevercirculatedbetweennations，butinthewayoftrade，andinexchangeforexportablecommodities，thefollowingrulesmightbelaiddown。
　　First，Innationswheretheearthproducesneithergoldorsilver，andwherethesemetalsareimportedasthereturnsofindustryonly，thebalanceintheirfavour，fromtheintroductionofspecie，tothisday，wouldbemeasuredbythequantityofitwhichtheypossess。HereMrBelloni’sopinionisjust。
　　Secondly，Theconsumptionmadebyanynationforthesametermofyears，isequaltothewholenaturalproduceandlabouroftheinhabitantsforthattime，minusthequantityofsuchproduceandlabour，asis，orhasbeen，equalinvaluetotheactualnationalspecie。
　　Thirdly，Ontheotherhand，innationswheregoldandsilverareproducedbytheearth，thebalanceoftradeagainstthem，fromthetimethesemetalsbecametheobjectoftradetothisday，maybeestimatedbythequantityofthemwhichhasbeenexported。
　　Fourthly，andfarther；theconsumptionmadebysuchnations，forthesametermofyears，isequaltothewholenaturalproduceandlabouroftheinhabitantsforthattime，plusthequantityofsuchproduceandlabour，asis，orhasbeen，equaltothequantityofthesemetalsexported。
　　Theserulesarebymuchtoogeneraltobelaiddownasprinciples；becausetradeisnotconcernedineveryacquisitionoralienationofspecie；buttheymayserve，inthemeantime，toillustratethedoctrinewehavebeenconsidering，andeveninmanycasesmaybefoundprettyexact。Forexample:
　　Ifitbetrue，thatinanynationofEurope，therebenowjustasmuchsilverandgoldastherewastenyearsago，andifthatnation，duringthisperiod，hassupported，withoutborrowingfromstrangers，anexpensivewarwhichmayhavecostit，I
　　suppose，fivemillionsfairlyexportedincoin，itiscertainthat，duringthisperiod，thehome-consumptionmusthavebeenthevalueoffivemillionslessthanthenaturalproduce，labour，andindustryoftheinhabitants；whichsumoffivemillionsmusthavecomefromabroadincoin，andinreturnforalikevalueoftheproduction，labour，&c。remainingoverandabovetheirownconsumption，andexportedforthisreturninreadyspecie。
　　Inthissupposition，thenationalwealththemetalsstandsasbefore；thebalanceofitonlyischanged。Howthischangeisperformed，andwhatareitsconsequences，maybediscoveredbyanapplicationoftheprinciplesalreadylaiddown。
　　Quest。3。Whatweretheeffectsofrichesbeforetheintroductionoftradeandindustry？
　　Inevercansufficientlyrecommendtomyreaderstocomparecircumstancesintheeconomyoftheancients，withtheseofmodernpolitics；becauseIseeamultitudeofnewdoctrineslaiddown，which，Ithink，neverwouldhavebeenbroached，hadsuchcircumstancesbeenproperlyattendedto。Ihaveendeavouredtoshew，thatthepriceofgoods，butespeciallyofarticlesofthefirstnecessity，havelittleornoconnectionwiththequantitiesofspecieinacountryTheslightestinspectionintothestateofcirculation，indifferentages，willfortifyourreasoning:butthegeneraltasteofdissipation，whichisdailygainingground，makespeoplenowimagine，thatwealthandcirculationaresynonymousterms；whereasnothingismorecontrarybothtoreasonandmatteroffact。Aslightreviewofthismatter，indifferentages，willsetitinaclearerlightthanamoreabstractreasoningcando。
　　Itisaquestionwithme，whethertheminesofPotosiandBrazil，haveproducedmorerichestoSpainandPortugal，withinthesetwohundredyears，thanthetreasuresheapedupinAsia，Greece，andEgypt，afterthedeathofAlexander，furnishedtotheRomans，duringthetwohundredyearswhichfollowedthedefeatofPerseus，andtheconquestofMacedonia。
　　FromthetreasuresmentionedbyallthehistorianswhohavewrittenoftheconquestofthesekingdomsbytheRomans，IdonotthinkIamfarfromtruth，whenIcomparethetreasuresofthefrugalGreekstotheminesofthenewworld。
　　Whateffect，astocirculation，hadtheaccumulationofthesevasttreasures？Notanytoaccelerateit，surely:andnoperson，theleastconversantinantiquity，willpretendthatthecirculatingspecieinthosetimesboreasgreataproportiontotheirtreasures，aswhatisatpresentcirculatingamongusbearstothewealthofthemostoeconomisingPrinceinEurope。Ifanyonedoubtofthisparticular，lethimlistentoAppian，whowillinformhim，thatthesuccessorsofAlexander，thepossessorsoftheseimmenseriches，livedwiththegreatestfrugality。Thesetreasureswerethen，asIhavesaid，arealadditiontothevalueoftheirkingdomsbuthadnotthesmallestinfluenceuponprices。
　　Inthosedaysofsmallcirculation，thepricesofeverythingmusthavebeenvastlylow，notfromthegreatabundanceofthem，butbecauseofthelittledemand；andasaproofofthis，Icitetheexampleofacountry，which，withinthespaceoffiftyyears，possessedinspecie，atonetime，considerablybeyondtheworthoftheland，houses，slaves，merchandize，naturalproduce，moveables，andreadymoney，atanother。TheexampleismentionedbyMrHume；andIamsurprizedtheconsequenceofitdidnotstrikehim。Forifthemoneytheypossessedwasgreatlyabovetheworthofalltheirproperty，moveableandimmoveable，surelyitnevercouldbeconsideredasarepresentationoftheirindustry，whichmadesosmallapartofthewhole。Athenspossessed，beforethePeloponnesianwar，atreasureoftenthousandtalents；andfiftyyearsafterwards，allAthens，intheseveralarticlesabovespecified，didnotamounttothevalueofsixthousand。Hume’sPoliticalDiscoursesupontheBalanceofTrade。
　　Thesetreasureswerespentinthewar，andtheyhadbeenlaidupfornootherpurpose。ThereforeIwasintheright，whenI
　　observedabove，Chap。22。，thatwarinancienttimeshadtheeffectthatindustryhasnow:itwastheonlymeansofmakingwealthcirculate。But，peaceproducingageneralstagnationofcirculation，peoplereturnedtotheancientsimplicityoftheirmanners，andthepricesofsubsistenceremainedontheformerfooting；becausetherewasnoincreaseofappetite，orrisingofdemanduponanynecessaryarticle。Somuchforthestateofwealthduringthedaysoffrugality。
　　TheRomanssubduedallthosekingdomoftheGreeks，anddrewtheirtreasurestoRome。Therepublicwenttodestruction，andasuccessionofthemostprodigalprinceseverknowninhistorysucceededoneanotherforabouttwohundredyears。Thosemonstroustreasureswerethenthrownintocirculation:andImustnowgiveanideaoftheeffectsproducedbysucharevolution。
　　IhavealreadyobservedChap。28。，thatinconsequenceofthegreatprodigalityofthosetimes，thepriceofsuperfluitiesrosetoamonstrousheight；whilethepriceofnecessarieskeptexcessivelylow。Thefactisindisputable；andanyonewhoinclinestosatisfyhimselffather，maylookintothatvaluablecollectionofexamplesofancientluxury，wealth，and，atthesametime，ofsimplicity，foundinDrWallace’sDissertationupontheNumbersofMankindinancientandmodernTimes，p。132。etseq。
　　Buthowisittobeaccountedfor，thatthepriceofsuperfluitiesshouldstandsohigh，whilethepriceofnecessarieswassolow？Thereasonisplain，fromtheprincipleswehavelaiddown。Thecirculationofmoneyhadnoresemblancetothatofmoderntimes:fortunesweremadebycorruption，fraud，concussion，rapine，andpenury；notbytradeandindustry。Senecaamassedinfouryears2，400，000poundssterling。Anaugurwasfoundtobeworth3millionssterling。M。AntonyowedontheidesofMarch，322，916poundssterling，andpaiditbeforethecalendsofApril。Weknowofnosuchcirculation。Everyrevolutionwasviolent:thepowerfulwererapaciousandprodigal，theweakwerepoorandlivedinthegreatestsimplicity:consequently，theobjectsofthedesiresfortherichwereimmenselydear；andthenecessariesforthepoorwereexcessivelycheap。ThisisaconfirmationoftheprincipleswehavelaiddowninChap。28。，thatthepriceofsubsistencemusteverbeinproportiontothefacultiesofthenumerousclassesofthosewhobuy:thatthepriceofeverythingmustbeinproportiontothedemandforit；
　　andthatineverycase，wherethesupplycannaturallybeincreasedinproportiontothedemand，theremustbeadeterminateproportionbetweenthepriceofsucharticlesandthatofsubsistence。NowintheexamplesgivenbyDrWallace，ofthingswhichsoldatmonstrousprices，wefindsuchonlyascouldnotbeincreasedaccordingtodemand:hereistheenumerationofthem。LargeassesbroughtfromSpain，peacocks，finedoves，mullets，lampreys，peaches，largeasparagus，purple，wool，jewels，carpets，vestesByssinae，slavesskilledinthefinerarts，pictures，statues，books，andrewardstothosewhotaughtthesciences。Bycastingaglanceuponthecatalogue，wemayeasilyperceivethattheextraordinarypricemusthaveproceededfromtheimpossibilityofaugmentingthesupplyinproportiontothedemand；notfromtheabundanceofthemoney，whichhadnoeffectinraisingthepriceofnecessaries。Thecheapness，again，ofthesedidnotproceedfromthevastplentyofthem；butbecausethepriceremainedinproportiontothefacultiesofthenumerouspoor；andbecausetheaugmentationofthewealthoftherichnevercouldincreasetheirconsumptionofanynecessaryarticle。HadtheRomanempirebeengovernedwithorderandtranquillity，thistasteofluxury，byprecipitatingmoneyintothehandsofthenumerousclasses，would，intime，havewroughttheeffectsofmultiplyingthenumberoftheindustrious；
　　consequently，ofincreasingthedemandforvendiblesubsistence；
　　consequently，ofraisingthepriceofit。And，ontheotherhand，theintroductionofamoreadequateproportionbetweenservicesandrewardsgivenbythepublic，wouldhavecheckedtheotherbranchofcirculationwhichproducedthosemonstrousfortunes，towit，rapineandcorruption:and，industryreceivingaregularencouragement，everyarticleofextraordinarydemandfordelicatealiments，birds，fishes，fruits，&c。wouldhavebeensuppliedwithsufficientabundance；andconsequently，wouldhavefalleninitsprice。Butwhileeitherdespotismorslaverywerethepatrimonialinheritanceofeveryoneoncomingintotheworld，wearenottoexpecttoseethesameprinciplesoperate，asinageswherethemonarchandthepeasantarebornequallyfreetoenjoytheprovisionmadeforthembytheirforefathers。
　　Quest。7。Inwhatmanner，therefore，mayastatesmanestablishindustry，soasnottodestroysimplicity，noroccasionasuddenrevolutioninthemannersofhispeople，thegreatclassesofwhicharesupposedtolivesecureineaseandhappiness；and，atthesametime，soastoprovidewithnecessarieseveryonewhomaybeinwant？
　　Theobservationswearegoingtomakewillpointouttheanswertothisquestion:theywillstillfartherunfoldthepoliticaleconomyoftheancients，andexplainhowmannersremainedsopurefromviciousluxury，notwithstandingthegreatandsumptuousworkscarriedon，whichstrikeuswithsoloftyanideaoftheirusefulmagnificenceandnoblesimplicity。Theseobservationswillalsoconfirmthejustnessofadistinctionmade，inthefirstchapterofthisbook，betweenlabourandindustry；byshewingthatlabourmayeverbeprocured，evenbyforce，attheexpenceoffurnishingmanwithhisphysical-necessary，fromwhichnosuperfluitycanproceed:
　　whereasindustrycannotbeestablished，butbymeansofanadequateequivalent，proportioned，nottotheabsolutelynecessary，buttothereasonabledesireoftheindustrious；whichequivalentbecomesafterwardsthemeansofdiffusingaluxuriousdispositionamongalltheclassesofapeople。
　　Ifastatesmanfindcertainindividualsinwant，hemusteitherfeedthem，inwhichcasehemayemploythemashethinksfit；orhemustgivethemapieceofland，asthemeansoffeedingthemselves。Ifhegivetheland，hecanrequirenoequivalentforit，becauseapersonwhohasnothingcangivenothingbuthislabour；andifhebeobligedtolabourforhisfood，hecannotpurchasewithlabourtheearthitself，whichproducesit。Ifitbeasked，whetherastatesmandoesbettertogivethefood，ortogivetheland？Ithinkitwillappearveryevident，thatthefirstisthebettercourse，becausehecanthenexactanequivalent；andsinceineitherwaythepersonisfed，theproduceofhislabourisalwayscleargain。Butinordertogivethefood，hemusthaveittogive；inwhichcaseitmusteitherbeasurplus-produceofpubliclands，oracontributionfromthepeople。Inbothwhichcases，isimpliedanindustrycarriedonbeyondthepersonalwantsofthosewholabourtheground。Ifthisfundbeappliedingivingbreadtothosewhomheemployedinimprovingthesoilofthecountryingeneral，itwillhavenoimmediateeffectindestroyingthesimplicityoftheirmanners；itwillextendthefundonlyoftheirsubsistence。Ifheemploystheminmakinghighways，aqueducts，commonsewers，bridges，andthelike；itwillextendthecorrespondencebetweenthedifferentplacesofthecountry，andrenderlivingincitiesmoreeasyandagreeable:andthesechangeshaveanevidenttendencytowardsdestroyingsimplicity。Buthereletitberemarked，thatthesimplicityofindividualsisnothurtbytheindustrycarriedonattheexpenceofthepublic。Thesuperfluousfoodatthestatesman’sdisposal，isgiventopeopleinnecessity，whoareemployedinrelievingthewantsofthepublic，notofprivatepersons。Butif，forexample，inconsequenceoftheroadsmade，anyinhabitantshallinclinetoremovefromplacetoplaceinachariot，insteadofridingonhorseback，orwalking，hemustengagesomebodytomakethemachine:thisisafartherextensiontooccupation，onthesideofthosewholabour。
　　buttheconsequenceoftheemploymentisverydifferent，whenconsideredwithregardtothesimplicityofmanners。Thereasonisplain:theingenuityheremustbepaidfor；andthissuperfluityinthehandsoftheworkmanisafundforhisbecomingluxurious。
　　Industrydestroyssimplicityofmannersinhimwhogivesanequivalentforanarticleofsuperfluity；andtheequivalentgivenfrequentlygivesrisetoasubordinatespeciesofluxuryintheworkman。Whenindustrythereforemeetswithencouragementfromindividuals，whogivenanequivalentinordertosatisfygrowingdesires，itisaproofthattheyarequittingthesimplicityoftheirmanners。Inthiscase，thewantsanddesiresofmankindarethesourcesofindustry，whichwasthesuppositioninthefirstbook；because，infact，theindustryofEuropeisowingtothiscausealone。
　　Buttheindustryofancienttimeswasverydifferent，whenthemultitudeofslavesreadytoexecutewhateverwasdemanded，eitherbythestateorbytheirmasters，fortheequivalentofsimplemaintenanceonly，preventedwealthfromeverfallingintothehandsofindustriousfreemen；andhewhohasnocirculatingequivalenttogiveforsatisfyingadesireforsuperfluity，mustremaininhisformersimplicity。Thelabourthereforeofthosedaysproducingnocirculation，couldnotcorruptthemannersofthepeople；because，remainingconstantlypoor，theynevercouldincreasetheirconsumptionofsuperfluity。
　　Imust，inthisplace，inserttheauthorityofanancientauthor，inorderbothtoillustrateandtoprovethejustnessofthisrepresentationofthepoliticaloeconomyoftheancients。
　　ThereremainsadiscourseofXenophonupontheimprovementoftherevenueofthestateofAthens。Concerningtheauthenticityofthiswork，Ihavenotthesmallestdoubt。Itisachefd’oeuvreofitskind，andfromitmorelightistobehad，inrelationtothesubjectwearehereupon，thanfromanythingI
　　haveeverseen，ancientormodern。
　　FromthisancientmonumentwelearnthesentimentsoftheauthorwithregardtotheproperemploymentofthethreeprincipalclassesoftheAthenianpeople，viz。thecitizens，thestrangers，andtheslaves。Fromtheplanhelaysdownweplainlydiscover，that，inthestateofAthens，morerenownedthananyotherofantiquityfortheartsofluxuryandrefinement，itneverenteredintotheimaginationofanypoliticiantointroduceindustryevenamongthelowestclassesofthecitizens；andXenophon’splanwastoreapallthebenefitsweatpresentenjoyfromit，withoutproducinganychangeuponthespiritoftheAthenianpeople。
　　Thestateatthistimeusedtoimposetaxesupontheirconfederatecities，inordertomaintaintheirowncommonpeople，andXenophon’sintentioninthisdiscoursewastolaydownaplanforimprovingtherevenueofthestateinsuchamannerasoutofittogiveeverycitizenapensionofthreeoboliaday，orthreepencethreefarthingsofourmoney。
　　Ishallnotheregothrougheverybranchofhisplan，norpointouttheresourceshehadfallenupontoformasufficientfundforthispurpose；buthesays，thatincaseofanydeficiencyinthedomesticrevenueofthestate，peoplefromallquarters，Princesandstrangersofnote，inallcountries，wouldbeproudofcontributingtowardsit，forthehonourofbeingrecordedinthepublicmonumentsofAthens，andhavingtheirnamestransmittedtoposterityasbenefactorstothestateintheexecutionofsograndadesign。
　　Inourdays，suchanideawouldappearridiculous；inthedaysofXenophon，itwasperfectlyrational。Atthattimegreatquantitiesofgoldandsilverwerefoundlockedupinthecoffersoftherich:thiswasinagreatmeasureuselesstothem，inthecommoncourseoflife，andwasthemoreeasilypartedwithfromasentimentofvanityorostentation。
　　Inourdays，thelargestincomeiscommonlyfoundtoosmallforthecurrentexpenceoftheproprietor。Fromwhenceithappens，thatpresents，greatexpenceatfuneralsandmarriages，godfathers’gifts，&c。soveryfamiliaramongourselvesinformertimes，aredailygoingoutoffashion。Theseareextraordinaryandunforeseenexpenceswhichourancestorswerefondof；becausetheyBatteredtheirvanity，withoutdiminishingthefundoftheircurrentexpence:butasnowwehavenofullcofferstoflyto，wefindthemexcessivelyburthensome，andendeavourtoretrenchthemassoonaswecan，notfromfrugality，Godknows，butinconsequenceofachangeinourmanners。
　　BesidesprovidingthisdailypensionofthreepencethreefarthingsadayforeverycitizenofAthens，richandpoor，heproposedtobuild，atthepubliccharge，manytradingvessels，agreatmanyinnsandhousesofentertainmentforallstrangersinthesea-ports，toerectshops，warehouses，exchanges，&c。therentsofwhichwouldincreasetherevenue，andaddgreatbeautyandmagnificencetothecity。Inshort，Xenophonrecommendstothestatetoperform，bythehandsoftheirslavesandstrangers，whatafreepeopleinourdaysareconstantlyemployedindoingineverycountryandindustry。WhiletheAtheniancitizenscontinuedtoreceivetheirdailypensions，proportionedtothevalueoftheirpurephysical-necessary，theirbusinessbeingconfinedtotheirserviceinthearmyintimeofwar，theirattendanceinpublicassemblies，andthetheatresintimesofpeace，clothedlikeaparcelofcapucins，they，asbecamefreemen，weretaughttodespiseindustriouslabour，andtogloryintheausterityandsimplicityoftheirmanners。ThepompandmagnificenceofthePersianEmperorswereasubjectofridiculeinGreece，andaproofoftheirbarbarity，andoftheslaveryoftheirsubjects。FromthisplainrepresentationofXenophon’splan，Ihope，thecharacteristicdifferencebetweentheancientandmoderneconomyismanifest；andforsuchreadersastakeaparticulardelightincomparingthesystemsofsimplicityandluxury，Irecommendtheperusalofthismostvaluablediscourse。
　　Toputthismatterpastalldispute，andtoprovethatthesimplicityofthemanners，aswellastheidlenessofthecommonpeopleofAthensinXenophon’stime，proceededfromrefinementnotfromignorance，IshallhereinsertapassagefromPresidentGoguet’sOriginofLaws，Arts，andSciences，withtheauthoritieshecitesinpart3d，book4th，chap。3d。
　　’HesiodandPlutarchhaveobserved，’sayshe，’that，intheagesIamnowspeakingofbeforethereignofCyruscommercewasheldingreathonouramongtheGreeks。Nolabour，saytheseauthors，wasaccountedshameful，noart，notrade，placedanydifferenceamongmen。Thismaxim，soreasonableandsousefultosuchanationastheGreeks，was，nevertheless，altered。WeseebytheworksofXenophon，ofPlato，ofAristotle，andofmanyotherwritersofmerit，that，intheirage，allprofessionswhichwerecalculatedtogainmoney，wereregardedasunworthyofafreeman。Aristotlemaintains，that，inawellorderedstate，theywillnevergivetherightofcitizenstoartisans。Platowouldhaveacitizenpunishedwhoshouldenterintocommerce。Infine，weseethesetwophilosophers，whosesentiments，ontheprinciplesandmaximsofgovernment，areotherwisesoopposite，agreeingtorecommendthatthelandsshouldbecultivatedbyslaves:only。Itisverysurprising，’concludesthePresident，’thatwithsuchprinciples，whichalltheGreeksappeartohaveimbibed，theyshouldeverhavebeensointelligentincommerce，andsopowerfulatsea，astheyareknowntohavebeeninsomeages。’
　　Putting，therefore，allthesecircumstancestogether，andcomparingthemwiththecontrast，whichisfound，astoeveryparticular，inourtimes，Ithinkitisbutdoingjusticetothemoderns，toallow，thattheextensiveluxury，whichdailydiffusesitselfthrougheveryclassofapeople，ismoreowingtotheabolishingofslavery，theequaldistributionofriches，andthecirculationofanadequateequivalentforeveryservice，thantoanygreatercorruptionofourmanners，thanwhatprevailedamongtheancients。
　　Inordertohaveindustrydirectedtowardstheobjectofpublicutility，thepublic，notindividuals，musthavetheequivalenttogive。Mustnottheemploymentbeadaptedtothetasteofhimwhopurchasesit？Now，inancienttimes，mostpublicworkswereperformedeitherbyslaves，oratthepriceofthepurephysical-necessaryoffreemen。Wefindthepriceofapyramid，recordedtousbyHerodotus，inthequantityofturnips，onions，andgarlic，consumedbythebuildersofit。Thosewhomadetheviaappia，Iapprehend，werejustaspoorwhenitwasfinishedasthedayitwasbegun；andthismustalwaysbethecase，whentheworkrequiresnopeculiardexterityintheworkmen。If，ontheotherhand，examplescanbebroughtwhereworkmengainedhighwages，thentheconsequencesmusthavebeenthesameasinourdays。
　　Aslong，therefore，asindustryisnotdirectedtosuchobjectsasrequireaparticularaddress，which，bytheprincipleslaiddowninthetwenty-firstchapter，raisesprofitsabovethephysical-necessary，theindustriousnevercanbecomerich；andiftheybepaidinmoney，thismoneymustreturnintothehandsofthosewhofeedthem:andifnosuperfluitybefoundanywherebutinthehandsofthestate，suchindustrymaybethemeansofconsumingasurplusofsubsistence，butnevercandrawonepennyintocirculation。ThisIapprehendtobeajustapplicationofourprinciples，tothestateofindustryundertheRomanrepublic:anditisthisspeciesofindustrywhichwecalllabour。Wearenotthereforetoascribethetasteforsimplicityinthosedaystothevirtueofthetimes。Amanwhohadriches，andwhospentthem，spentthemnodoubtthen，asatpresent，togratifyhisdesires；andifthesimplicityofthetimesfurnishednoassistancetohisowninvention，indiversifyingthem，theconsequencewas，thatthemoneywasnotspent，butlockedup。I
　　haveheardmanyamansay，hadIsomuchmoneyIshouldnotknowhowtospendit。Thethingiscertainlytrue；forpeopledonotcommonlytakeitintotheirheadtolayitoutforthepublic。
　　Nobody，Ibelieve，willdenythatmoneyisbetteremployedinbuildingahouse，orinproducingsomethingusefulandpermanent，thaninprovidingarticlesofmeretransitorysuperfluity。Butwhatprincipleofpoliticscaninfluencethetasteoftheproprietorsofwealth？Thisbeingthecase，astatesmanisbroughttoadilemma；eithertoallowindustrytorunintoachannellittlebeneficialtothestate，littlepermanentinitsnature，ortodeprivethepooroftheadvantageresultingfromit。MayInotfarthersuggest，thatastatesman，whoisattheheadofapeople，whosetasteisdirectedtowardsatriflingspeciesofexpence，doesverywelltodiminishthefundoftheirprodigality，bycallingin，bythemeansoftaxes，apartofthecirculatingequivalentwhichtheygiveforit？Whenonceheisenrichedbythesecontributions，hecomestobeinthesamesituationwithancientstatesmen，withthisdifference，thattheyhadtheirslavesattheircommand，whomtheyfedandprovidedfor；andthathehasthefree，forthesakeofanequivalentwithwhichtheyfeedandprovideforthemselves。Hethencansetpublicworksonfoot，andbyhisexample，inspireatasteforindustryofamorerationalkind，whichmayadvancethepublicgoodandprocurealastingbenefittothenation。
　　Ihavefrequentlysaid，thattheacquisitionofmoney，bythesaleofindustrytostrangers，orinreturnforconsumablecommodities，wasawayofaugmentingthegeneralworthofanation。NowIsay，thatwhoevercantransformthemostconsumablecommoditiesofacountryintothemostdurableandmostbeneficialworks，makesahighimprovement。Ifthereforemeatanddrink，whichareofallthingsthemostconsumable，canbeturnedintoharbours，highroads，canals，andpublicbuildings，isnottheimprovementinexpressible？Thisisinthepowerofeverystatesmantoaccomplish，whohassubsistenceathisdisposal；andbeyondthepowerofallthosewhohaveitnot。Thereisnoabsoluteoccasionformoneytoimproveacountry。AllthemagnificentbuildingswhichornamentItaly，aremoreproperlytherepresentationofascantysubsistence，thanofthegoldandsilverinthatcountryatthetimetheywereexecuted。Letmenowconcludewithafewmiscellaneousobservationsonwhathasbeensaid。
　　Obser。1。WhenIadmirethemagnificenceandgrandeurofpublicworksinanycountry，suchasstupendouschurches，amphitheatres，roads，dykes，canals；inaword，whenIexamineHolland，thegreatestworkperhapseverdonebyman，Iamneverstruckwiththeexpence。Icomparethemwiththenumbersofmenonlywhohavelivedtoperformthem。WhenIseeanothercountrywellinhabited，wherenosuchworksappear，thecontrastsuggestsabundanceofreflections。
　　Astothefirst，Iconclude，thatwhiletheseworkswerecarryingon，eitherslaveryortaxesmusthavebeenestablished；
　　becauseitseldomhappens，thataprincewill，outofhisownpatrimony，launchoutintosuchexpences，purelytoservethepublic。Publicworksarecarriedonbythepublic；andforthispurpose，eitherthepersonsorpursesofindividuals，mustbeatitscommand。ThefirstIcallslavery；thatisservice:thesecondtaxes；thatispubliccontributionsinmoneyorinnecessaries。