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ships　and　sailors　of　that　country；　that　part　of　the　capital

employed　in　it　which　pays　the　freight　is　distributed　among；　and

puts　into　motion；　a　certain　number　of　productive　labourers　of

that　country。　Almost　all　nations　that　have　had　any　considerable

share　of　the　carrying　trade　have；　in　fact；　carried　it　on　in　this

manner。　The　trade　itself　has　probably　derived　its　name　from　it；

the　people　of　such　countries　being　the　carriers　to　other

countries。　It　does　not；　however；　seem　essential　to　the　nature　of

the　trade　that　it　should　be　so。　A　Dutch　merchant　may；　for

example；　employ　his　capital　in　transacting　the　commerce　of　Poland

and　Portugal；　by　carrying　part　of　the　surplus　produce　of　the　one

to　the　other；　not　in　Dutch；　but　in　British　bottoms。　It　may　be

presumed　that　he　actually　does　so　upon　some　particular　occasions。

It　is　upon　this　account；　however；　that　the　carrying　trade　has

been　supposed　peculiarly　advantageous　to　such　a　country　as　Great

Britain；　of　which　the　defence　and　security　depend　upon　the　number

of　its　sailors　and　shipping。　But　the　same　capital　may　employ　as

many　sailors　and　shipping；　either　in　the　foreign　trade　of

consumption；　or　even　in　the　home　trade；　when　carried　on　by

coasting　vessels；　as　it　could　in　the　carrying　trade。　The　number

of　sailors　and　shipping　which　any　particular　capital　can　employ

does　not　depend　upon　the　nature　of　the　trade；　but　partly　upon　the

bulk　of　the　goods　in　proportion　to　their　value；　and　partly　upon

the　distance　of　the　ports　between　which　they　are　to　be　carried；

chiefly　upon　the　former　of　those　two　circumstances。　The　coal

trade　from　Newcastle　to　London；　for　example；　employs　more

shipping　than　all　the　carrying　trade　of　England；　though　the　ports

are　at　no　great　distance。　To　force；　therefore；　by　extraordinary

encouragements；　a　larger　share　of　the　capital　of　any　country　into

the　carrying　trade　than　what　would　naturally　go　to　it　will　not

always　necessarily　increase　the　shipping　of　that　country。

　　　　　The　capital；　therefore；　employed　in　the　home　trade　of　any

country　will　generally　give　encouragement　and　support　to　a

greater　quantity　of　productive　labour　in　that　country；　and

increase　the　value　of　its　annual　produce　more　than　an　equal

capital　employed　in　the　foreign　trade　of　consumption：　and　the

capital　employed　in　this　latter　trade　has　in　both　these　respects

a　still　greater　advantage　over　an　equal　capital　employed　in　the

carrying　trade。　The　riches；　and　so　far　as　power　depends　upon

riches；　the　power　of　every　country　must　always　be　in　proportion

to　the　value　of　its　annual　produce；　the　fund　from　which　all　taxes

must　ultimately　be　paid。　But　the　great　object　of　the　political

economy　of　every　country　is　to　increase　the　riches　and　power　of

that　country。　It　ought；　therefore；　to　give　no　preference　nor

superior　encouragement　to　the　foreign　trade　of　consumption　above

the　home　trade；　nor　to　the　carrying　trade　above　either　of　the

other　two。　It　ought　neither　to　force　nor　to　allure　into　either　of

those　two　channels　a　greater　share　of　the　capital　of　the　country

than　what　would　naturally　flow　into　them　of　its　own　accord。

　　　　　When　the　produce　of　any　particular　branch　of　industry

exceeds　what　the　demand　of　the　country　requires；　the　surplus　must

be　sent　abroad　and　exchanged　for　something　for　which　there　is　a

demand　at　home。　Without　such　exportation　a　part　of　the　productive

labour　of　the　country　must　cease；　and　the　value　of　its　annual

produce　diminish。　The　land　and　labour　of　Great　Britain　produce

generally　more　corn；　woollens；　and　hardware　than　the　demand　of

the　home　market　requires。　The　surplus　part　of　them；　therefore；

must　be　sent　abroad；　and　exchanged　for　something　for　which　there

is　a　demand　at　home。　It　is　only　by　means　of　such　exportation　that

this　surplus　can　acquire　a　value　sufficient　to　compensate　the

labour　and　expense　of　producing　it。　The　neighbourhood　of　the

sea…coast；　and　the　banks　of　all　navigable　rivers；　are

advantageous　situations　for　industry；　only　because　they

facilitate　the　exportation　and　exchange　of　such　surplus　produce

for　something　else　which　is　more　in　demand　there。

　　　　　When　the　foreign　goods　which　are　thus　purchased　with　the

surplus　produce　of　domestic　industry　exceed　the　demand　of　the

home　market；　the　surplus　part　of　them　must　be　sent　abroad　again

and　exchanged　for　something　more　in　demand　at　home。　About

ninety…six　thousand　hogsheads　of　tobacco　are　annually　purchased

in　Virginia　and　Maryland　with　a　part　of　the　surplus　produce　of

British　industry。　But　the　demand　of　Great　Britain　does　not

require；　perhaps；　more　than　fourteen　thousand。　If　the　remaining

eighty…two　thousand；　therefore；　could　not　be　sent　abroad　and

exchanged　for　something　more　in　demand　at　home；　the　importation

of　them　must　cease　immediately；　and　with　it　the　productive　labour

of　all　those　inhabitants　of　Great　Britain；　who　are　at　present

employed　in　preparing　the　goods　with　which　these　eighty…two

thousand　hogsheads　are　annually　purchased。　Those　goods；　which　are

part　of　the　produce　of　the　land　and　labour　of　Great　Britain；

having　no　market　at　home；　and　being　deprived　of　that　which　they

had　abroad；　must　cease　to　be　produced。　The　most　round…about

foreign　trade　of　consumption；　therefore　may；　upon　some　occasions；

be　as　necessary　for　supporting　the　productive　labour　of　the

country；　and　the　value　of　its　annual　produce；　as　the　most　direct。

　　　　　When　the　capital　stock　of　any　country　is　increased　to　such　a

degree　that　it　cannot　be　all　employed　in　supplying　the

consumption　and　supporting　the　productive　labour　of　that

particular　country；　the　surplus　part　of　it　naturally　disgorges

itself　into　the　carrying　trade；　and　is　employed　in　performing　the

same　offices　to　other　countries。　The　carrying　trade　is　the

natural　effect　and　symptom　of　great　national　wealth；　but　it　does

not　seem　to　be　the　natural　cause　of　it。　Those　statesmen　who　have

been　disposed　to　favour　it　with　particular　encouragements　seem　to

have　mistaken　the　effect　and　symptom　for　the　cause。　Holland；　in

proportion　to　the　extent　of　the　land　and　the　number　of　its

inhabitants；　by　far　the　richest　country　in　Europe；　has；

accordingly；　the　greatest　share　of　the　carrying　trade　of　Europe。

England；　perhaps　the　second　richest　country　of　Europe；　is

likewise　supposed　to　have　a　considerable　share　of　it；　though　what

commonly　passes　for　the　carrying　trade　of　England　will

frequently；　perhaps；　be　found　to　be　no　more　than　a　round…about

foreign　trade　of　consumption。　Such　are；　in　a　great　measure；　the

trades　which　carry　the　goods　of　the　East　and　West　Indies；　and　of

America；　to　different　European　markets。　Those　goods　are　generally

purchased　either　immediately　with　the　produce　of　British

industry；　or　with　something　else　which　had　been　purchased　with

that　produce；　and　the　final　returns　of　those　trades　are　generally

used　or　consumed　in　Great　Britain。　The　trade　which　is　carried　on

in　British　bottoms　between　the　different　ports　of　the

Mediterranean；　and　some　trade　of　the　same　kind　carried　on　by

British　merchants　between　the　different　ports　of　India；　make；

perhaps；　the　principal　branches　of　what　is　properly　the　carrying

trade　of　Great　Britain。

　　　　　The　extent　of　the　home　trade　and　of　the　capital　which　can　be

employed　in　it；　is　necessarily　limited　by　the　value　of　the

surplus　produce　of　all　those　distant　places　within　the　country

which　have　occasion　to　exchange　their　respective　productions　with

another：　that　of　the　foreign　trade　of　consumption；　by　the　value

of　the　surplus　produce　of　the　whole　country　and　of　what　can　be

purchased　with　it：　that　of　the　carrying　trade　by　the　value　of　the

surplus　produce　of　all　the　different　countries　in　the　world。　Its

possible　extent；　therefore；　is　in　a　manner　infinite　in　comparison

of　that　of　the　other　two；　and　is　capable　of　absorbing　the

greatest　capitals。

　　　　　The　consideration　of　his　own　private　profit　is　the　sole

motive　which　determines　the　owner　of　any　capital　to　employ　it

either　in　agriculture；　in　manufactures；　or　in　some　particular

branch　of　the　wholesale　or　retail　trade。　The　different　quantities

of　productive　labour　which　it　may　put　into　motion；　and　the

different　values　which　it　may　add　to　the　annual；　produce　of　the

land　and　labour　of　the　society；　according　as　it　is　employed　in

one　or　other　of　those　different　ways；　never　enter　into　his

thoughts。　In　countries；　therefore；　where　agriculture　is　the　most

profitable　of　all　employments；　and　farming　and　improving　the　most

direct　roads　to　a　splendid　fortune；　the　capitals　of　individuals

will　naturally　be　employed　in　the　manner　most　advantageous　to　the

whole　society。　The　profits　of　agriculture；　however；　seem　to　have

no　superiority　over　those　of　other　employments　in　any　part　of

Europe。　Projectors；　indeed；　in　every　corner　of　it；　have　within

these　few　years　amused　the　public　with　most　magnificent　accounts

of　the　profits　to　be　made　by　the　cultivation　and　improvement　of

land。　Without　entering　into　any　particular　discussion　of　their

calculations；　a　very　simple　observation　may　satisfy　us　that　the

result　of　them　must　be　false。　We　see　every　day　the　most　splendid

fortunes　that　have　been　acqu