Thesecondeventwasthebountyupontheexportationofcorngrantedin1688。Thebounty，ithasbeenthoughtbymanypeople，byencouragingtillage，may，inalongcourseofyears，haveoccasionedagreaterabundance，andconsequentlyagreatercheapnessofcorninthehome—marketthanwhatwouldotherwisehavetakenplacethere。Howfarthebountycouldproducethiseffectatanytime，Ishallexaminehereafter;Ishallonlyobserveatpresentthat，between1688and1700，ithadnottimetoproduceanysucheffect。Duringthisshortperioditsonlyeffectmusthavebeen，byencouragingtheexportationofthesurplusproduceofeveryyear，andtherebyhinderingtheabundanceofoneyearfromcompensatingthescarcityofanother，toraisethepriceinthehome—market。ThescarcitywhichprevailedinEnglandfrom1693to1699，bothinclusive，thoughnodoubtprincipallyowingtothebadnessoftheseasons，and，therefore，extendingthroughaconsiderablepartofEurope，musthavebeensomewhatenhancedbythebounty。In1699，accordingly，thefurtherexportationofcornwasprohibitedforninemonths。
Therewasathirdeventwhichoccurredinthecourseofthesameperiod，andwhich，thoughitcouldnotoccasionanyscarcityofcorn，nor，perhaps，anyaugmentationintherealquantityofsilverwhichwasusuallypaidforit，mustnecessarilyhaveoccasionedsomeaugmentationinthenominalsum。Thiseventwasthegreatdebasementofthesilvercoin，byclippingandwearing。
ThisevilhadbeguninthereignofCharlesIIandhadgoneoncontinuallyincreasingtill1695;atwhichtime，aswemaylearnfromMr。Lowndes，thecurrentsilvercoinwas，atanaverage，nearfive—and—twentypercentbelowitsstandardvalue。Butthenominalsumwhichconstitutesthemarketpriceofeverycommodityisnecessarilyregulated，notsomuchbythequantityofsilver，which，accordingtothestandard，oughttobecontainedinit，asbythatwhich，itisfoundbyexperience，actuallyiscontainedinit。Thisnominalsum，therefore，isnecessarilyhigherwhenthecoinismuchdebasedbyclippingandwearingthanwhenneartoitsstandardvalue。
Inthecourseofthepresentcentury，thesilvercoinhasnotatanytimebeenmorebelowitsstandardweightthanitisatpresent。Butthoughverymuchdefaced，itsvaluehasbeenkeptupbythatofthegoldcoinforwhichitisexchanged。Forthoughbeforethelaterecoinage，thegoldcoinwasagooddealdefacedtoo，itwaslesssothanthesilver。In1695，onthecontrary，thevalueofthesilvercoinwasnotkeptupbythegoldcoin;aguineathencommonlyexchangingforthirtyshillingsofthewornandcliptsilver。Beforethelaterecoinageofthegold，thepriceofsilverbullionwasseldomhigherthanfiveshillingsandsevenpenceanounce，whichisbutfivepenceabovethemintprice。
Butin1695，thecommonpriceofsilverbullionwassixshillingsandfivepenceanounce，whichisfifteenpenceabovethemintprice。Evenbeforethelaterecoinageofthegold，therefore，thecoin，goldandsilvertogether，whencomparedwithsilverbullion，wasnotsupposedtobemorethaneightpercentbelowitsstandardvalue。In1695，onthecontrary，ithadbeensupposedtobenearfive—and—twentypercentbelowthatvalue。
Butinthebeginningofthepresentcentury，thatis，immediatelyafterthegreatrecoinageinKingWilliam’stime。thegreaterpartofthecurrentsilvercoinmusthavebeenstillnearertoitsstandardweightthanitisatpresent。Inthecourseofthepresentcentury，too，therehasbeennogreatpubliccalamity，suchasthecivilwar，whichcouldeitherdiscouragetillage，orinterrupttheinteriorcommerceofthecountry。Andthoughthebounty，whichhastakenplacethroughthegreaterpartofthiscentury，mustalwaysraisethepriceofcornsomewhathigherthanitotherwisewouldbeintheactualstateoftillage;yetas，inthecourseofthiscentury，thebountyhashadfulltimetoproduceallthegoodeffectscommonlyimputedtoit，toencouragetillage，andtherebytoincreasethequantityofcorninthehomemarket，itmay，upontheprinciplesofasystemwhichIshallexplainandexaminehereafter，besupposedtohavedonesomethingtolowerthepriceofthatcommoditytheoneway，aswellastoraiseittheother。Itisbymanypeoplesupposedtohavedonemore。Inthesixty—fourfirstyearsofthepresentcenturyaccordinglytheaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarketappears，bytheaccountsofEtonCollege，tohavebeenL2os。61/2d。，whichisabouttenshillingsandsixpence，ormorethanfive—and—twentypercent，cheaperthanithadbeenduringthesixty—fourlastyearsofthelastcentury;andabout9s。6d。cheaperthanithadbeenduringthesixteenyearspreceding1636，whenthediscoveryoftheabundantminesofAmericamaybesupposedtohaveproduceditsfulleffect;andaboutoneshillingcheaperthanithadbeeninthetwenty—sixyearspreceding1620，beforethatdiscoverycanwellbesupposedtohaveproduceditsfulleffect。Accordingtothisaccount，theaveragepriceofmiddlewheat，duringthesesixty—fourfirstyearsofthepresentcentury，comesouttohavebeenaboutthirty—twoshillingsthequarterofeightbushels。
Thevalueofsilver，therefore，seemstohaverisensomewhatinproportiontothatofcornduringthecourseofthepresentcentury，andithadprobablybeguntodosoevensometimebeforetheendofthelast。
In1687，thepriceofthequarterofninebushelsofthebestwheatatWindsormarketwasL15s。2d。thelowestpriceatwhichithadeverbeenfrom1595。
In1688，Mr。GregoryKing，amanfamousforhisknowledgeinmattersofthiskind，estimatedtheaveragepriceofwheatinyearsofmoderateplentytobetothegrower3s。6d。thebushel，oreight—and—twentyshillingsthequarter。Thegrower’spriceI
understandtobethesamewithwhatissometimescalledthecontractprice，orthepriceatwhichafarmercontractsforacertainnumberofyearstodeliveracertainquantityofcorntoadealer。Asacontractofthiskindsavesthefarmertheexpenseandtroubleofmarketing，thecontractpriceisgenerallylowerthanwhatissupposedtobetheaveragemarketprice。Mr。Kinghadjudgedeight—and—twentyshillingsthequartertobeatthattimetheordinarycontractpriceinyearsofmoderateplenty。
Beforethescarcityoccasionedbythelateextraordinarycourseofbadseasons，itwas，Ihavebeenassured，theordinarycontractpriceinallcommonyears。
In1688wasgrantedtheParliamentarybountyupontheexportationofcorn。Thecountrygentlemen，whothencomposedastillgreaterproportionofthelegislaturethantheydoatpresent，hadfeltthatthemoneypriceofcornwasfalling。ThebountywasanexpedienttoraiseitartificiallytothehighpriceatwhichithadfrequentlybeensoldinthetimesofCharlesIandIII。Itwastotakeplace，therefore，tillwheatwassohighasforty—eightshillingsthequarter，thatis，twentyshillings，orfive—seventhsdearerthanMr。Kinghadinthatveryyearestimatedthegrower’spricetobeintimesofmoderateplenty。Ifhiscalculationsdeserveanypartofthereputationwhichtheyhaveobtainedveryuniversally，eight—and—fortyshillingsthequarterwasapricewhich，withoutsomesuchexpedientasthebounty，couldnotatthattimebeexpected，exceptinyearsofextraordinaryscarcity。ButthegovernmentofKingWilliamwasnotthenfullysettled。Itwasinnoconditiontorefuseanythingtothecountrygentlemen，fromwhomitwasatthatverytimesolicitingthefirstestablishmentoftheannualland—tax。
Thevalueofsilver，therefore，inproportiontothatofcorn，hadprobablyrisensomewhatbeforetheendofthelastcentury;anditseemstohavecontinuedtodosoduringthecourseofthegreaterpartofthepresent;thoughthenecessaryoperationofthebountymusthavehinderedthatrisefrombeingsosensibleasitotherwisewouldhavebeenintheactualstateoftillage。
Inplentifulyearsthebounty，byoccasioninganextraordinaryexportation，necessarilyraisesthepriceofcornabovewhatitotherwisewouldbeinthoseyears。Toencouragetillage，bykeepingupthepriceofcorneveninthemostplentifulyears，wastheavowedendoftheinstitution。
Inyearsofgreatscarcity，indeed，thebountyhasgenerallybeensuspended。Itmust，however，havehadsomeeffectevenuponthepricesofmanyofthoseyears。Bytheextraordinaryexportationwhichitoccasionsinyearsofplenty，itmustfrequentlyhindertheplentyofoneyearfromcompensatingthescarcityofanother。
Bothinyearsofplentyandinyearsofscarcity，therefore，thebountyraisesthepriceofcornabovewhatitnaturallywouldbeintheactualstateoftillage。If，duringthesixty—fourfirstyearsofthepresentcentury，therefore，theaveragepricehasbeenlowerthanduringthesixty—fourlastyearsofthelastcentury，itmust，inthesamestateoftillage，havebeenmuchmoreso，haditnotbeenforthisoperationofthebounty。
Butwithoutthebounty，itmaybesaid，thestateoftillagewouldnothavebeenthesame。Whatmayhavebeentheeffectsofthisinstitutionupontheagricultureofthecountry，Ishallendeavourtoexplainhereafter，whenIcometotreatparticularlyofbounties。Ishallonlyobserveatpresentthatthisriseinthevalueofsilver，inproportiontothatofcorn，hasnotbeenpeculiartoEngland。IthasbeenobservedtohavetakenplaceinFrance，duringthesameperiod，andnearlyinthesameproportiontoo，bythreeveryfaithful，diligent，andlaboriouscollectorsofthepricesofcorn，Mr。DupredeSt。Maur，Mr。Messance，andtheauthoroftheEssayonthepoliceofgrain。ButinFrance，till1764，theexportationofgrainwasbylawprohibited;anditissomewhatdifficulttosupposethatnearlythesamediminutionofpricewhichtookplaceinonecountry，notwithstandingthisprohibition，shouldinanotherbeowingtotheextraordinaryencouragementgiventoexportation。
Itwouldbemoreproper，perhaps，toconsiderthisvariationintheaveragemoneypriceofcornastheeffectratherofsomegradualriseintherealvalueofsilverintheEuropeanmarketthanofanyfallintherealaveragevalueofcorn。Corn，ithasalreadybeenobserved，isatdistantperiodsoftimeamoreaccuratemeasureofvaluethaneithersilver，orperhapsanyothercommodity。When，afterthediscoveryoftheabundantminesofAmerica，cornrosetothreeandfourtimesitsformermoneyprice，thischangewasuniversallyascribed，nottoanyriseintherealvalueofcorn，buttoafallintherealvalueofsilver。Ifduringthesixty—fourfirstyearsofthepresentcentury，therefore，theaveragemoneypriceofcornhasfallensomewhatbelowwhatithadbeenduringthegreaterpartofthelastcentury，weshouldinthesamemannerimputethischange，nottoanyfallintherealvalueofcorn，buttosomeriseintherealvalueofsilverintheEuropeanmarket。
Thehighpriceofcornduringthesetenortwelveyearspast，indeed，hasoccasionedasuspicionthattherealvalueofsilverstillcontinuestofallintheEuropeanmarket。Thishighpriceofcorn，however，seemsevidentlytohavebeentheeffectoftheextraordinaryunfavourablenessoftheseasons，andoughtthereforetoberegarded，notasapermanent，butasatransitoryandoccasionalevent。TheseasonsforthesetenortwelveyearspasthavebeenunfavourablethroughthegreaterpartofEurope;
andthedisordersofPolandhaveverymuchincreasedthescarcityinallthosecountrieswhich，indearyears，usedtobesuppliedfromthatmarket。Solongacourseofbadseasons，thoughnotaverycommonevent，isbynomeansasingularone;andwhoeverhasinquiredmuchintothehistoryofthepricesofcorninformertimeswillbeatnolosstorecollectseveralotherexamplesofthesamekind。Tenyearsofextraordinaryscarcity，besides，arenotmorewonderfulthantenyearsofextraordinaryplenty。Thelowpriceofcornfrom1741to1750，bothinclusive，mayverywellbesetinoppositiontoitshighpriceduringtheselasteightortenyears。From1741to1750，theaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarket，itappearsfromtheaccountsofEtonCollege，wasonlyL113s。9
1/2d。，whichisnearly6s。3d。belowtheaveragepriceofthesixty—fourfirstyearsofthepresentcentury。Theaveragepriceofthequarterofeightbushelsofmiddlewheatcomesout，accordingtothisaccount，tohavebeen，duringthesetenyears，only516s。8d。
Between1741and1750，however，thebountymusthavehinderedthepriceofcornfromfallingsolowinthehomemarketasitnaturallywouldhavedone。Duringthesetenyearsthequantityofallsortsofgrainexported，itappearsfromthecustom—housebooks，amountedtonolessthaneightmillionstwenty—ninethousandonehundredandfifty—sixquartersonebushel。ThebountypaidforthisamountedtoL1，514，96217s。4
1/2d。In1749accordingly，Mr。Pelham，atthattimePrimeMinister，observedtotheHouseofCommonsthatforthethreeyearsprecedingaveryextraordinarysumhadbeenpaidasbountyfortheexportationofcorn。Hehadgoodreasontomakethisobservation，andinthefollowingyearhemighthavehadstillbetter。InthatsingleyearthebountypaidamountedtonolessthanL324，17610s。6d。Itisunnecessarytoobservehowmuchthisforcedexportationmusthaveraisedthepriceofcornabovewhatitotherwisewouldhavebeeninthehomemarket。
Attheendoftheaccountsannexedtothischapterthereaderwillfindtheparticularaccountofthosetenyearsseparatedfromtherest。Hewillfindthere，too，theparticularaccountoftheprecedingtenyears，ofwhichtheaverageislikewisebelow，thoughnotsomuchbelow，thegeneralaverageofthesixty—fourfirstyearsofthecentury。Theyear1740，however，wasayearofextraordinaryscarcity。Thesetwentyyearspreceding1750mayverywellbesetinoppositiontothetwentypreceding1770。Astheformerwereagooddealbelowthegeneralaverageofthecentury，notwithstandingtheinterventionofoneortwodearyears;sothelatterhavebeenagooddealaboveit，notwithstandingtheinterventionofoneortwocheapones，of1759，forexample。Iftheformerhavenotbeenasmuchbelowthegeneralaverageasthelatterhavebeenaboveit，weoughtprobablytoimputeittothebounty。Thechangehasevidentlybeentoosuddentobeascribedtoanychangeinthevalueofsilver，whichisalwaysslowandgradual。Thesuddennessoftheeffectcanbeaccountedforonlybyacausewhichcanoperatesuddenly，theaccidentalvariationoftheseasons。
ThemoneypriceoflabourinGreatBritainhas，indeed，risenduringthecourseofthepresentcentury。This，however，seemstobetheeffect，notsomuchofanydiminutioninthevalueofsilverintheEuropeanmarket，asofanincreaseinthedemandforlabourinGreatBritain，arisingfromthegreat，andalmostuniversalprosperityofthecountry。InFrance，acountrynotaltogethersoprosperous，themoneypriceoflabourhas，sincethemiddleofthelastcentury，beenobservedtosinkgraduallywiththeaveragemoneypriceofcorn。Bothinthelastcenturyandinthepresenttheday—wagesofcommonlabouraretheresaidtohavebeenprettyuniformlyaboutthetwentiethpartoftheaveragepriceoftheseptierofwheat，ameasurewhichcontainsalittlemorethanfourWinchesterbushels。InGreatBritaintherealrecompenseoflabour，ithasalreadybeenshown，therealquantitiesofthenecessariesandconvenienciesoflifewhicharegiventothelabourer，hasincreasedconsiderablyduringthecourseofthepresentcentury。Theriseinitsmoneypriceseemstohavebeentheeffect，notofanydiminutionofthevalueofsilverinthegeneralmarketofEurope，butofariseintherealpriceoflabourintheparticularmarketofGreatBritain，owingtothepeculiarlyhappycircumstancesofthecountry。
ForsometimeafterthefirstdiscoveryofAmerica，silverwouldcontinuetosellatitsformer，ornotmuchbelowitsformerprice。Theprofitsofminingwouldforsometimebeverygreat，andmuchabovetheirnaturalrate。ThosewhoimportedthatmetalintoEurope，however，wouldsoonfindthatthewholeannualimportationcouldnotbedisposedofatthishighprice。Silverwouldgraduallyexchangeforasmallerandasmallerquantityofgoods。Itspricewouldsinkgraduallylowerandlowertillitfelltoitsnaturalprice，ortowhatwasjustsufficienttopay，accordingtotheirnaturalrates，thewagesofthelabour，theprofitsofthestock，andtherentoftheland，whichmustbepaidinordertobringitfromtheminetothemarket。InthegreaterpartofthesilverminesofPeru，thetaxoftheKingofSpain，amountingtoatenthofthegrossproduce，eatsup，ithasalreadybeenobserved，thewholerentoftheland。Thistaxwasoriginallyahalf;itsoonafterwardsfelltoathird，thentoafifth，andatlasttoatenth，atwhichrateitstillcontinues。
InthegreaterpartofthesilverminesofPeruthis，itseems，isallthatremainsafterreplacingthestockoftheundertakerofthework，togetherwithitsordinaryprofits;anditseemstobeuniversallyacknowledgedthattheseprofits，whichwereonceveryhigh，arenowaslowastheycanwellbe，consistentlywithcarryingontheirworks。
ThetaxoftheKingofSpainwasreducedtoafifthpartoftheregisteredsilverin1504，one—and—fortyyearsbefore1545，thedateofthediscoveryoftheminesofPotosi。Inthecourseofninetyyears，orbefore1636，thesemines，themostfertileinallAmerica，hadtimesufficienttoproducetheirfulleffect，ortoreducethevalueofsilverintheEuropeanmarketaslowasitcouldwellfall，whileitcontinuedtopaythistaxtotheKingofSpain。Ninetyyearsistimesufficienttoreduceanycommodity，ofwhichthereisnomonopoly，toitsnaturalprice，ortothelowestpriceatwhich，whileitpaysaparticulartax，itcancontinuetobesoldforanyconsiderabletimetogether。
ThepriceofsilverintheEuropeanmarketmightperhapshavefallenstilllower，anditmighthavebecomenecessaryeithertoreducethetaxuponit，notonlytoonetenth，asin1736，buttoonetwentieth，inthesamemannerasthatupongold，ortogiveupworkingthegreaterpartoftheAmericanmineswhicharenowwrought。Thegradualincreaseofthedemandforsilver，orthegradualenlargementofthemarketfortheproduceofthesilverminesofAmerica，isprobablythecausewhichhaspreventedthisfromhappening，andwhichhasnotonlykeptupthevalueofsilverintheEuropeanmarket，buthasperhapsevenraiseditsomewhathigherthanitwasaboutthemiddleofthelastcentury。
SincethefirstdiscoveryofAmerica，themarketfortheproduceofitssilvermineshasbeengrowinggraduallymoreandmoreextensive。
First，themarketofEuropehasbecomegraduallymoreandmoreextensive。SincethediscoveryofAmerica，thegreaterpartofEuropehasbeenmuchimproved。England，Holland，France，andGermany;evenSweden，Denmark，andRussia，havealladvancedconsiderablybothinagricultureandinmanufactures。Italyseemsnottohavegonebackwards。ThefallofItalyprecededtheconquestofPeru。Sincethattimeitseemsrathertohaverecoveredalittle。SpainandPortugal，indeed，aresupposedtohavegonebackwards。Portugal，however，isbutaverysmallpartofEurope，andthedeclensionofSpainisnot，perhaps，sogreatasiscommonlyimagined。Inthebeginningofthesixteenthcentury，Spainwasaverypoorcountry，evenincomparisonwithFrance，whichhasbeensomuchimprovedsincethattime。ItwasthewellknownremarkoftheEmperorCharlesV，whohadtravelledsofrequentlythroughbothcountries，thateverythingaboundedinFrance，butthateverythingwaswantinginSpain。TheincreasingproduceoftheagricultureandmanufacturesofEuropemustnecessarilyhaverequiredagradualincreaseinthequantityofsilvercointocirculateit;andtheincreasingnumberofwealthyindividualsmusthaverequiredthelikeincreaseinthequantityoftheirplateandotherornamentsofsilver。
Secondly，Americaisitselfanewmarketfortheproduceofitsownsilvermines;andasitsadvancesinagriculture，industry，andpopulationaremuchmorerapidthanthoseofthemostthrivingcountriesinEurope，itsdemandmustincreasemuchmorerapidly。TheEnglishcoloniesarealtogetheranewmarket，which，partlyforcoinandpartlyforplate，requiresacontinuallyaugmentingsupplyofsilverthroughagreatcontinentwherethereneverwasanydemandbefore。Thegreaterpart，too，oftheSpanishandPortuguesecoloniesarealtogethernewmarkets。NewGranada，theYucatan，Paraguay，andtheBrazilswere，beforediscoveredbytheEuropeans，inhabitedbysavagenationswhohadneitherartsnoragriculture。Aconsiderabledegreeofbothhasnowbeenintroducedintoallofthem。EvenMexicoandPeru，thoughtheycannotbeconsideredasaltogethernewmarkets，arecertainlymuchmoreextensiveonesthantheyeverwerebefore。Afterallthewonderfultaleswhichhavebeenpublishedconcerningthesplendidstateofthosecountriesinancienttimes，whoeverreads，withanydegreeofsoberjudgment，thehistoryoftheirfirstdiscoveryandconquest，willevidentlydiscernthat，inarts，agriculture，andcommerce，theirinhabitantsweremuchmoreignorantthantheTartarsoftheUkraineareatpresent。EventhePeruvians，themorecivilisednationofthetwo，thoughtheymadeuseofgoldandsilverasornaments，hadnocoinedmoneyofanykind。Theirwholecommercewascarriedonbybarter，andtherewasaccordinglyscarceanydivisionoflabouramongthem。Thosewhocultivatedthegroundwereobligedtobuildtheirownhouses，tomaketheirownhouseholdfurniture，theirownclothes，shoes，andinstrumentsofagriculture。Thefewartificersamongthemaresaidtohavebeenallmaintainedbythesovereign，thenobles，andthepriests，andwereprobablytheirservantsorslaves。AlltheancientartsofMexicoandPeruhaveneverfurnishedonesinglemanufacturetoEurope。TheSpanisharmies，thoughtheyscarceeverexceededfivehundredmen，andfrequentlydidnotamounttohalfthatnumber，foundalmosteverywheregreatdifficultyinprocuringsubsistence。Thefamineswhichtheyaresaidtohaveoccasionedalmostwherevertheywent，incountries，too，whichatthesametimearerepresentedasverypopulousandwellcultivated，sufficientlydemonstratethatthestoryofthispopulousnessandhighcultivationisinagreatmeasurefabulous。TheSpanishcoloniesareunderagovernmentinmanyrespectslessfavourabletoagriculture，improvement，andpopulationthanthatoftheEnglishcolonies。Theyseem，however，tobeadvancinginallthesemuchmorerapidlythananycountryinEurope。Inafertilesoilandhappyclimate，thegreatabundanceandcheapnessofland，acircumstancecommontoallnewcolonies，is，itseems，sogreatanadvantageastocompensatemanydefectsincivilgovernment。Frezier，whovisitedPeruin1713，representsLimaascontainingbetweentwenty—fiveandtwenty—eightthousandinhabitants。Ulloa，whoresidedinthesamecountrybetween1740
and1746，representsitascontainingmorethanfiftythousand。
ThedifferenceintheiraccountsofthepopulousnessofseveralotherprincipaltownsinChiliandPeruisnearlythesame;andasthereseemstobenoreasontodoubtofthegoodinformationofeither，itmarksanincreasewhichisscarceinferiortothatoftheEnglishcolonies。America，therefore，isanewmarketfortheproduceofitsownsilvermines，ofwhichthedemandmustincreasemuchmorerapidlythanthatofthemostthrivingcountryinEurope。
Thirdly，theEastIndiesisanothermarketfortheproduceofthesilverminesofAmerica，andamarketwhich，fromthetimeofthefirstdiscoveryofthosemines，hasbeencontinuallytakingoffagreaterandagreaterquantityofsilver。Sincethattime，thedirecttradebetweenAmericaandtheEastIndies，whichiscarriedonbymeansoftheAcapulcoships，hasbeencontinuallyaugmenting，andtheindirectintercoursebythewayofEuropehasbeenaugmentinginastillgreaterproportion。
Duringthesixteenthcentury，thePortugueseweretheonlyEuropeannationwhocarriedonanyregulartradetotheEastIndies。InthelastyearsofthatcenturytheDutchbeguntoencroachuponthismonopoly，andinafewyearsexpelledthemfromtheirprincipalsettlementsinIndia。DuringthegreaterpartofthelastcenturythosetwonationsdividedthemostconsiderablepartoftheEastIndiatradebetweenthem;thetradeoftheDutchcontinuallyaugmentinginastillgreaterproportionthanthatofthePortuguesedeclined。TheEnglishandFrenchcarriedonsometradewithIndiainthelastcentury，butithasbeengreatlyaugmentedinthecourseofthepresent。TheEastIndiatradeoftheSwedesandDanesbeganinthecourseofthepresentcentury。EventheMuscovitesnowtraderegularlywithChinabyasortofcaravanswhichgooverlandthroughSiberiaandTartarytoPekin。TheEastIndiatradeofallthesenations，ifweexceptthatoftheFrench，whichthelastwarhadwellnighannihilated，hadbeenalmostcontinuallyaugmenting。TheincreasingconsumptionofEastIndiagoodsinEuropeis，itseems，sogreatastoaffordagradualincreaseofemploymenttothemall。Tea，forexample，wasadrugverylittleusedinEuropebeforethemiddleofthelastcentury。AtpresentthevalueoftheteaannuallyimportedbytheEnglishEastIndiaCompany，fortheuseoftheirowncountrymen，amountstomorethanamillionandahalfayear;andeventhisisnotenough;agreatdealmorebeingconstantlysmuggledintothecountryfromtheportsofHolland，fromGottenburghinSweden，andfromthecoastofFrancetoo，aslongastheFrenchEastIndiaCompanywasinprosperity。
TheconsumptionoftheporcelainofChina，ofthespiceriesoftheMoluccas，ofthepiecegoodsofBengal，andofinnumerableotherarticles，hasincreasedverynearlyinalikeproportion。
ThetonnageaccordinglyofalltheEuropeanshippingemployedintheEastIndiatrade，atanyonetimeduringthelastcentury，wasnot，perhaps，muchgreaterthanthatoftheEnglishEastIndiaCompanybeforethelatereductionoftheirshipping。
ButintheEastIndies，particularlyinChinaandIndostan，thevalueofthepreciousmetals，whentheEuropeansfirstbegantotradetothosecountries，wasmuchhigherthaninEurope;anditstillcontinuestobeso。Inricecountries，whichgenerallyyieldtwo，sometimesthreecropsintheyear，eachofthemmoreplentifulthananycommoncropofcorn，theabundanceoffoodmustbemuchgreaterthaninanycorncountryofequalextent。
Suchcountriesareaccordinglymuchmorepopulous。Inthem，too，therich，havingagreatersuperabundanceoffoodtodisposeofbeyondwhattheythemselvescanconsume，havethemeansofpurchasingamuchgreaterquantityofthelabourofotherpeople。
TheretinueofagrandeeinChinaorIndostanaccordinglyis，byallaccounts，muchmorenumerousandsplendidthanthatoftherichestsubjectsinEurope。Thesamesuperabundanceoffood，ofwhichtheyhavethedisposal，enablesthemtogiveagreaterquantityofitforallthosesingularandrareproductionswhichnaturefurnishesbutinverysmallquantities;suchasthepreciousmetalsandthepreciousstones，thegreatobjectsofthecompetitionoftherich。Thoughthemines，therefore，whichsuppliedtheIndianmarkethadbeenasabundantasthosewhichsuppliedtheEuropean，suchcommoditieswouldnaturallyexchangeforagreaterquantityoffoodinIndiathaninEurope。ButthemineswhichsuppliedtheIndianmarketwiththepreciousmetalsseemtohavebeenagooddeallessabundant，andthosewhichsupplieditwiththepreciousstonesagooddealmoreso，thanthemineswhichsuppliedtheEuropean。Thepreciousmetals，therefore，wouldnaturallyexchangeinIndiaforsomewhatagreaterquantityofthepreciousstones，andforamuchgreaterquantityoffoodthaninEurope。Themoneypriceofdiamonds，thegreatestofallsuperfluities，wouldbesomewhatlower，andthatoffood，thefirstofallnecessaries，agreatdeallowerintheonecountrythanintheother。Buttherealpriceoflabour，therealquantityofthenecessariesoflifewhichisgiventothelabourer，ithasalreadybeenobserved，islowerbothinChinaandIndostan，thetwogreatmarketsofIndia，thanitisthroughthegreaterpartofEurope。Thewagesofthelabourerwilltherepurchaseasmallerquantityoffood;andasthemoneypriceoffoodismuchlowerinIndiathaninEurope，themoneypriceoflabouristhereloweruponadoubleaccount;uponaccountbothofthesmallquantityoffoodwhichitwillpurchase，andofthelowpriceofthatfood。Butincountriesofequalartandindustry，themoneypriceofthegreaterpartofmanufactureswillbeinproportiontothemoneypriceoflabour;andinmanufacturingartandindustry，ChinaandIndostan，thoughinferior，seemnottobemuchinferiortoanypartofEurope。Themoneypriceofthegreaterpartofmanufactures，therefore，willnaturallybemuchlowerinthosegreatempiresthanitisanywhereinEurope。
ThroughthegreaterpartofEurope，too，theexpenseofland—carriageincreasesverymuchboththerealandnominalpriceofmostmanufactures。Itcostsmorelabour，andthereforemoremoney，tobringfirstthematerials，andafterwardsthecompletemanufacturetomarket。InChinaandIndostantheextentandvarietyofinlandnavigationsavethegreaterpartofthislabour，andconsequentlyofthismoney，andtherebyreducestilllowerboththerealandthenominalpriceofthegreaterpartoftheirmanufactures。Uponallthoseaccountsthepreciousmetalsaxeacommoditywhichitalwayshasbeen，andstillcontinuestobe，extremelyadvantageoustocarryfromEuropetoIndia。Thereisscarceanycommoditywhichbringsabetterpricethere;orwhich，inproportiontothequantityoflabourandcommoditieswhichitcostsinEurope，willpurchaseorcommandagreaterquantityoflabourandcommoditiesinIndia。Itismoreadvantageous，too，tocarrysilverthitherthangold;becauseinChina，andthegreaterpartoftheothermarketsofIndia，theproportionbetweenfinesilverandfinegoldisbutasten，oratmostastwelve，toone;whereasinEuropeitisasfourteenorfifteentoone。InChina，andthegreaterpartoftheothermarketsofIndia，ten，oratmosttwelve，ouncesofsilverwillpurchaseanounceofgold;inEuropeitrequiresfromfourteentofifteenounces。Inthecargoes，therefore，ofthegreaterpartofEuropeanshipswhichsailtoIndia，silverhasgenerallybeenoneofthemostvaluablearticles。ItisthemostvaluablearticleintheAcapulcoshipswhichsailtoManilla。Thesilverofthenewcontinentseemsinthismannertobeoneoftheprincipalcommoditiesbywhichthecommercebetweenthetwoextremitiesoftheoldoneiscarriedon，anditisbymeansofit，inagreatmeasure，thatthosedistantpartsoftheworldareconnectedwithoneanother。
Inordertosupplysoverywidelyextendedamarket，thequantityofsilverannuallybroughtfromtheminesmustnotonlybesufficienttosupportthatcontinualincreasebothofcoinandofplatewhichisrequiredinallthrivingcountries;buttorepairthatcontinualwasteandconsumptionofsilverwhichtakesplaceinallcountrieswherethatmetalisused。
Thecontinualconsumptionofthepreciousmetalsincoinbywearing，andinplatebothbywearingandcleaning，isverysensible，andincommoditiesofwhichtheuseissoverywidelyextended，wouldalonerequireaverygreatannualsupply。Theconsumptionofthosemetalsinsomeparticularmanufactures，thoughitmaynotperhapsbegreateruponthewholethanthisgradualconsumption，is，however，muchmoresensible，asitismuchmorerapid。InthemanufacturesofBirminghamalonethequantityofgoldandsilverannuallyemployedingildingandplating，andtherebydisqualifiedfromeverafterwardsappearingintheshapeofthosemetals，issaidtoamounttomorethanfiftythousandpoundssterling。WemayfromthenceformsomenotionhowgreatmustbetheannualconsumptioninallthedifferentpartsoftheworldeitherinmanufacturesofthesamekindwiththoseofBirmingham，orinlaces，embroideries，goldandsilverstuffs，thegildingofbooks，furniture，etc。A
considerablequantity，too，mustbeannuallylostintransportingthosemetalsfromoneplacetoanotherbothbyseaandbyland。
InthegreaterpartofthegovernmentsofAsia，besides，thealmostuniversalcustomofconcealingtreasuresinthebowelsoftheearth，ofwhichtheknowledgefrequentlydieswiththepersonwhomakestheconcealment，mustoccasionthelossofastillgreaterquantity。
ThequantityofgoldandsilverimportedatbothCadizandLisbon（includingnotonlywhatcomesunderregister，butwhatmaybesupposedtobesmuggled）amounts，accordingtothebestaccounts，toaboutsixmillionssterlingayear。
AccordingtoMr。MeggenstheannualimportationofthepreciousmetalsintoSpain，atanaverageofsixyears，viz。，from1748to1753，bothinclusive;andintoPortugal，atanaverageofsevenyears，viz。，from1747to1753，bothinclusive，amountedinsilverto1，101，107poundsweight;andingoldto29，940poundsweight。Thesilver，atsixty—twoshillingsthepoundTroy，amountstoL3，413，43110s。sterling。Thegold，atforty—fourguineasandahalfthepoundTroy，amountstoL2，333，44614s。sterling。BothtogetheramounttoL5，746，8784s。
sterling。Theaccountofwhatwasimportedunderregisterheassuresusisexact。Hegivesusthedetailoftheparticularplacesfromwhichthegoldandsilverwerebrought，andoftheparticularquantityofeachmetal，which，accordingtotheregister，eachofthemafforded。Hemakesanallowance，too，forthequantityofeachmetalwhichhesupposesmayhavebeensmuggled。Thegreatexperienceofthisjudiciousmerchantrendershisopinionofconsiderableweight。
Accordingtotheeloquentand，sometimes，well—informedauthorofthePhilosophicalandPoliticalHistoryoftheEstablishmentoftheEuropeansinthetwoIndies，theannualimportationofregisteredgoldandsilverintoSpain，atanaverageofelevenyears，viz。，from1754to1764，bothinclusive，amountedto13，984，1853/4piastresoftenreals。Onaccountofwhatmayhavebeensmuggled，however，thewholeannualimportation，hesupposes，mayhaveamountedtoseventeenmillionsofpiastres，which，at4s。6d。thepiastre，isequaltoL3，825，000sterling。Hegivesthedetail，too，oftheparticularplacesfromwhichthegoldandsilverwerebrought，andoftheparticularquantitiesofeachmetalwhich，accordingtotheregister，eachofthemafforded。Heinformsus，too，thatifweweretojudgeofthequantityofgoldannuallyimportedfromtheBrazilsintoLisbonbytheamountofthetaxpaidtotheKingofPortugal，whichitseemsisone—fifthofthestandardmetal，wemightvalueitateighteenmillionsofcruzadoes，orforty—fivemillionsofFrenchlivres，equaltoabouttwomillionssterling。
Onaccountofwhatmayhavebeensmuggled，however，wemaysafely，hesays，addtothesumaneighthmore，orL250，000
sterling，sothatthewholewillamounttoL2，250，000sterling。
Accordingtothisaccount，therefore，thewholeannualimportationofthepreciousmetalsintobothSpainandPortugalamountstoaboutL6，075，000sterling。
Severalotherverywellauthenticated，thoughmanuscript，accounts，Ihavebeenassured，agreeinmakingthiswholeannualimportationamountatanaveragetoaboutsixmillionssterling;
sometimesalittlemore，sometimesalittleless。
TheannualimportationofthepreciousmetalsintoCadizandLisbon，indeed，isnotequaltothewholeannualproduceoftheminesofAmerica。SomepartissentannuallybytheAcapulcoshipstoManilla;somepartisemployedinthecontrabandtradewhichtheSpanishcoloniescarryonwiththoseofotherEuropeannations;andsomepart，nodoubtremainsinthecountry。TheminesofAmerica，besides，arebynomeanstheonlygoldandsilverminesintheworld。Theyare，however，byfarthemostabundant。Theproduceofalltheothermineswhichareknownisinsignificant，itisacknowledged，incomparisonwiththeirs;andthefargreaterpartoftheirproduce，itislikewiseacknowledged，isannuallyimportedintoCadizandLisbon。ButtheconsumptionofBirminghamalone，attherateoffiftythousandpoundsayear，isequaltothehundred—and—twentiethpartofthisannualimportationattherateofsixmillionsayear。Thewholeannualconsumptionofgoldandsilver，therefore，inallthedifferentcountriesoftheworldwherethosemetalsareused，mayperhapsbenearlyequaltothewholeannualproduce。Theremaindermaybenomorethansufficienttosupplytheincreasingdemandofallthrivingcountries。