ThereisnocommercialcountryinEuropeofwhichtheapproachingruinhasnotfrequentlybeenforetoldbythepretendeddoctorsofthissystemfromanunfavourablebalanceoftrade。Afteralltheanxiety，however，whichtheyhaveexcitedaboutthis，afterallthevainattemptsofalmostalltradingnationstoturnthatbalanceintheirownfavourandagainsttheirneighbours，itdoesnotappearthatanyonenationinEuropehasbeeninanyrespectimpoverishedbythiscause。Everytownandcountry，onthecontrary，inproportionastheyhaveopenedtheirportstoallnations，insteadofbeingruinedbythisfreetrade，astheprinciplesofthecommercialsystemwouldleadustoexpect，havebeenenrichedbyit。ThoughthereareinEurope，indeed，afewtownswhichinsomerespectsdeservethenameoffreeports，thereisnocountrywhichdoesso。Holland，perhaps，approachesthenearesttothischaracterofanythoughstillveryremotefromit;andHolland，itisacknowledged，notonlyderivesitswholewealth，butagreatpartofitsnecessarysubsistence，fromforeigntrade。
Thereisanotherbalance，indeed，whichhasalreadybeenexplained，verydifferentfromthebalanceoftrade，andwhich，accordingasithappenstobeeitherfavourableorunfavourable，necessarilyoccasionstheprosperityordecayofeverynation。
Thisisthebalanceoftheannualproduceandconsumption。Iftheexchangeablevalueoftheannualproduce，ithasalreadybeenobserved，exceedsthatoftheannualconsumption，thecapitalofthesocietymustannuallyincreaseinproportiontothisexcess。
Thesocietyinthiscaseliveswithinitsrevenue，andwhatisannuallysavedoutofitsrevenueisnaturallyaddedtoitscapital，andemployedsoastoincreasestillfurthertheannualproduce。Iftheexchangeablevalueoftheannualproduce，onthecontrary，failshortoftheannualconsumption，thecapitalofthesocietymustannuallydecayinproportiontothisdeficiency。
Theexpenseofthesocietyinthiscaseexceedsitsrevenue，andnecessarilyencroachesuponitscapital。Itscapital，therefore，mustnecessarilydecay，andtogetherwithittheexchangeablevalueoftheannualproduceofitsindustry。