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diminish　as　much　as　possible　the　importation　of　foreign　goods　for

home　consumption；　and　to　increase　as　much　as　possible　the

exportation　of　the　produce　of　domestic　industry。　Its　two　great

engines　for　enriching　the　country；　therefore；　were　restraints

upon　importation；　and　encouragements　to　exportation。

　　　　　The　restraints　upon　importation　were　of　two　kinds。

　　　　　First；　restraints　upon　the　importation　of　such　foreign　goods

for　home　consumption　as　could　be　produced　at　home；　from　whatever

country　they　were　imported。

　　　　　Secondly；　restraints　upon　the　importation　of　goods　of　almost

all　kinds　from　those　particular　countries　with　which　the　balance

of　trade　was　supposed　to　be　disadvantageous。

　　　　　Those　different　restraints　consisted　sometimes　in　high

duties；　and　sometimes　in　absolute　prohibitions。

　　　　　Exportation　was　encouraged　sometimes　by　drawbacks；　sometimes

by　bounties；　sometimes　by　advantageous　treaties　of　commerce　with

foreign　states；　and　sometimes　by　the　establishment　of　colonies　in

distant　countries。

　　　　　Drawbacks　were　given　upon　two　different　occasions。　When　the

home　manufactures　were　subject　to　any　duty　or　excise；　either　the

whole　or　a　part　of　it　was　frequently　drawn　back　upon　their

exportation；　and　when　foreign　goods　liable　to　a　duty　were

imported　in　order　to　be　exported　again；　either　the　whole　or　a

part　of　this　duty　was　sometimes　given　back　upon　such　exportation。

　　　　　Bounties　were　given　for　the　encouragement　either　of　some

beginning　manufactures；　or　of　such　sorts　of　industry　of　other

kinds　as　supposed　to　deserve　particular　favour。

　　　　　By　advantageous　treaties　of　commerce；　particular　privileges

were　procured　in　some　foreign　state　for　the　goods　and　merchants

of　the　country；　beyond　what　were　granted　to　those　other

countries。

　　　　　By　established　establishment　of　colonies　in　distant

countries；　not　only　particular　privileges；　but　a　monopoly　was

frequently　procured　for　the　goods　and　merchants　of　the　country

which　established　them。

　　　　　The　two　sorts　of　restraints　upon　importation

above…mentioned；　together　with　these　four　encouragements　to

exportation；　constitute　the　six　principal　means　by　which　the

commercial　system　proposes　to　increase　the　quantity　of　gold　and

silver　in　any　country　by　turning　the　balance　of　trade　in　its

favour。　I　shall　consider　each　of　them　in　a　particular　chapter；

and　without　taking　much　further　notice　of　their　supposed　tendency

to　bring　money　into　the　country；　I　shall　examine　chiefly　what　are

likely　to　be　the　effects　of　each　of　them　upon　the　annual　produce

of　its　industry。　According　as　they　tend　either　to　increase　or

diminish　the　value　of　this　annual　produce；　they　must　evidently

tend　either　to　increase　or　diminish　the　real　wealth　and　revenue

of　the　country。



　　　　　　　　　　　　　　　　　　　　　　　　　　　　　CHAPTER　II



Of　Restraints　upon　the　Importation　from　Foreign　Countries　of　such

Goods　as　can　be　produced　at　Home　



　　　　　BY　restraining；　either　by　high　duties　or　by　absolute

prohibitions；　the　importation　of　such　goods　from　foreign

countries　as　can　be　produced　at　home；　the　monopoly　of　the　home

market　is　more　or　less　secured　to　the　domestic　industry　employed

in　producing　them。　Thus　the　prohibition　of　importing　either　live

cattle　or　salt　provisions　from　foreign　countries　secures　to　the

graziers　of　Great　Britain　the　monopoly　of　the　home　market　for

butcher's　meat。　The　high　duties　upon　the　importation　of　corn；

which　in　times　of　moderate　plenty　amount　to　a　prohibition；　give　a

like　advantage　to　the　growers　of　that　commodity。　The　prohibition

of　the　importation　of　foreign　woollens　is　equally　favourable　to

the　woollen　manufacturers。　The　silk　manufacture；　though

altogether　employed　upon　foreign　materials；　has　lately　obtained

the　same　advantage。　The　linen　manufacture　has　not　yet　obtained

it；　but　is　making　great　strides　towards　it。　Many　other　sorts　of

manufacturers　have；　in　the　same　manner；　obtained　in　Great

Britain；　either　altogether　or　very　nearly；　a　monopoly　against

their　countrymen。　The　variety　of　goods　of　which　the　importation

into　Great　Britain　is　prohibited；　either　absolutely；　or　under

certain　circumstances；　greatly　exceeds　what　can　easily　be

suspected　by　those　who　are　not　well　acquainted　with　the　laws　of

the　customs。

　　　　　That　this　monopoly　of　the　home　market　frequently　gives　great

encouragement　to　that　particular　species　of　industry　which　enjoys

it；　and　frequently　turns　towards　that　employment　a　greater　share

of　both　the　labour　and　stock　of　the　society　than　would　otherwise

have　gone　to　it；　cannot　be　doubted。　But　whether　it　tends　either

to　increase　the　general　industry　of　the　society；　or　to　give　it

the　most　advantageous　direction；　is　not；　perhaps；　altogether　so

evident。

　　　　　The　general　industry　of　the　society　never　can　exceed　what

the　capital　of　the　society　can　employ。　As　the　number　of　workmen

that　can　be　kept　in　employment　by　any　particular　person　must　bear

a　certain　proportion　to　his　capital；　so　the　number　of　those　that

can　be　continually　employed　by　all　the　members　of　a　great　society

must　bear　a　certain　proportion　to　the　whole　capital　of　that

society；　and　never　can　exceed　that　proportion。　No　regulation　of

commerce　can　increase　the　quantity　of　industry　in　any　society

beyond　what　its　capital　can　maintain。　It　can　only　divert　a　part

of　it　into　a　direction　into　which　it　might　not　otherwise　have

gone；　and　it　is　by　no　means　certain　that　this　artificial

direction　is　likely　to　be　more　advantageous　to　the　society　than

that　into　which　it　would　have　gone　of　its　own　accord。

　　　　　Every　individual　is　continually　exerting　himself　to　find　out

the　most　advantageous　employment　for　whatever　capital　he　can

command。　It　is　his　own　advantage；　indeed；　and　not　that　of　the

society；　which　he　has　in　view。　But　the　study　of　his　own　advantage

naturally；　or　rather　necessarily；　leads　him　to　prefer　that

employment　which　is　most　advantageous　to　the　society。

　　　　　First；　every　individual　endeavours　to　employ　his　capital　as

near　home　as　he　can；　and　consequently　as　much　as　he　can　in　the

support　of　domestic　industry；　provided　always　that　he　can　thereby

obtain　the　ordinary；　or　not　a　great　deal　less　than　the　ordinary

profits　of　stock。

　　　　　Thus；　upon　equal　or　nearly　equal　profits；　every　wholesale

merchant　naturally　prefers　the　home　trade　to　the　foreign　trade　of

consumption；　and　the　foreign　trade　of　consumption　to　the　carrying

trade。　In　the　home　trade　his　capital　is　never　so　long　out　of　his

sight　as　it　frequently　is　in　the　foreign　trade　of　consumption。　He

can　know　better　the　character　and　situation　of　the　persons　whom

he　trusts；　and　if　he　should　happen　to　be　deceived；　he　knows

better　the　laws　of　the　country　from　which　he　must　seek　redress。

In　the　carrying　trade；　the　capital　of　the　merchant　is；　as　it

were；　divided　between　two　foreign　countries；　and　no　part　of　it　is

ever　necessarily　brought　home；　or　placed　under　his　own　immediate

view　and　command。　The　capital　which　an　Amsterdam　merchant　employs

in　carrying　corn　from　Konigsberg　to　Lisbon；　and　fruit　and　wine

from　Lisbon　to　Konigsberg；　must　generally　be　the　one　half　of　it

at　Konigsberg　and　the　other　half　at　Lisbon。　No　part　of　it　need

ever　come　to　Amsterdam。　The　natural　residence　of　such　a　merchant

should　either　be　at　Konigsberg　or　Lisbon；　and　it　can　only　be　some

very　particular　circumstances　which　can　make　him　prefer　the

residence　of　Amsterdam。　The　uneasiness；　however；　which　he　feels

at　being　separated　so　far　from　his　capital　generally　determines

him　to　bring　part　both　of　the　Konigsberg　goods　which　he　destines

for　the　market　of　Lisbon；　and　of　the　Lisbon　goods　which　he

destines　for　that　of　Konigsberg；　to　Amsterdam：　and　though　this

necessarily　subjects　him　to　a　double　charge　of　loading　and

unloading；　as　well　as　to　the　payment　of　some　duties　and　customs；

yet　for　the　sake　of　having　some　part　of　his　capital　always　under

his　own　view　and　command；　he　willingly　submits　to　this

extraordinary　charge；　and　it　is　in　this　manner　that　every　country

which　has　any　considerable　share　of　the　carrying　trade　becomes

always　the　emporium；　or　general　market；　for　the　goods　of　all　the

different　countries　whose　trade　it　carries　on。　The　merchant；　in

order　to　save　a　second　loading　and　unloading；　endeavours　always

to　sell　in　the　home　market　as　much　of　the　goods　of　all　those

different　countries　as　he　can；　and　thus；　so　far　as　he　can；　to

convert　his　carrying　trade　into　a　foreign　trade　of　consumption。　A

merchant；　in　the　same　manner；　who　is　engaged　in　the　foreign　trade

of　consumption；　when　he　collects　goods　for　foreign　markets；　will

always　be　glad；　upon　equal　or　nearly　equal　profits；　to　sell　as

great　a　part　of　them　at　home　as　he　can。　He　saves　himself　the　risk

and　trouble　of　exportation；　when；　so　far　as　he　can；　he　thus

converts　his　foreign　trade　of　consumption　into　a　home　trade。　Home

is　in　this　manner　the　centre；　if　I　may　say　so；　round　which　the

capitals　of　the　inhabitants　of　every　country　are　continually

circulating；　and　towards　which　they　are　always　tending；　though　by

particular　causes　they　may　sometimes　be　driven　off　and　repelled

from　it　towards　more　distant　employments。