Unlessacapitalwasemployedintransportingeithertherudeormanufacturedproducefromtheplaceswhereitaboundstothosewhereitiswanted，nomoreofeithercouldbeproducedthanwasnecessaryfortheconsumptionoftheneighbourhood。Thecapitalofthemerchantexchangesthesurplusproduceofoneplaceforthatofanother，andthusencouragestheindustryandincreasestheenjoymentsofboth。
Unlessacapitalwasemployedinbreakinganddividingcertainportionseitheroftherudeormanufacturedproduceintosuchsmallparcelsassuittheoccasionaldemandsofthosewhowantthem，everymanwouldbeobligedtopurchaseagreaterquantityofthegoodshewantedthanhisimmediateoccasionsrequired。Iftherewasnosuchtradeasabutcher，forexample，everymanwouldbeobligedtopurchaseawholeoxorawholesheepatatime。Thiswouldgenerallybeinconvenienttotherich，andmuchmoresotothepoor。Ifapoorworkmanwasobligedtopurchaseamonth’sorsixmonths’provisionsatatime，agreatpartofthestockwhichheemploysasacapitalintheinstrumentsofhistrade，orinthefurnitureofhisshop，andwhichyieldshimarevenue。hewouldbeforcedtoplaceinthatpartofhisstockwhichisreservedforimmediateconsumption，andwhichyieldshimnorevenue。Nothingcanbemoreconvenientforsuchapersonthantobeabletopurchasehissubsistencefromdaytoday，orevenfromhourtohour，ashewantsit。Heistherebyenabledtoemployalmosthiswholestockasacapital。Heisthusenabledtofurnishworktoagreatervalue，andtheprofit，whichhemakesbyitinthisway，muchmorethancompensatestheadditionalpricewhichtheprofitoftheretailerimposesuponthegoods。Theprejudicesofsomepoliticalwritersagainstshopkeepersandtradesmenarealtogetherwithoutfoundation。Sofarisitfrombeingnecessaryeithertotaxthemortorestricttheirnumbersthattheycanneverbemultipliedsoastohurtthepublic，thoughtheymaysoastohurtoneanother。
Thequantityofgrocerygoods，forexample，whichcanbesoldinaparticulartownislimitedbythedemandofthattownanditsneighbourhood。Thecapital，therefore，whichcanbeemployedinthegrocerytradecannotexceedwhatissufficienttopurchasethatquantity。Ifthiscapitalisdividedbetweentwodifferentgrocers，theircompetitionwilltendtomakebothofthemsellcheaperthanifitwereinthehandsofoneonly;andifitweredividedamongtwenty，theircompetitionwouldbejustsomuchthegreater，andthechanceoftheircombiningtogether，inordertoraisetheprice，justsomuchtheless。Theircompetitionmightperhapsruinsomeofthemselves;buttotakecareofthisisthebusinessofthepartiesconcerned，anditmaysafelybetrustedtotheirdiscretion。Itcanneverhurteithertheconsumerortheproducer;onthecontrary，itmusttendtomaketheretailersbothsellcheaperandbuydearerthanifthewholetradewasmonopolizedbyoneortwopersons。Someofthem，perhaps，maysometimesdecoyaweakcustomertobuywhathehasnooccasionfor。Thisevil，however，isoftoolittleimportancetodeservethepublicattention，norwoulditnecessarilybepreventedbyrestrictingtheirnumbers。Itisnotthemultitudeofale—houses，togivethemostsuspiciousexample，thatoccasionsageneraldispositiontodrunkennessamongthecommonpeople;butthatdispositionarisingfromothercausesnecessarilygivesemploymenttoamultitudeofale—houses。
Thepersonswhosecapitalsareemployedinanyofthosefourwaysarethemselvesproductivelabourers。Theirlabour，whenproperlydirected，fixesandrealizesitselfinthesubjectorvendiblecommodityuponwhichitisbestowed，andgenerallyaddstoitspricethevalueatleastoftheirownmaintenanceandconsumption。Theprofitsofthefarmer，ofthemanufacturer，ofthemerchant，andretailer，arealldrawnfromthepriceofthegoodswhichthetwofirstproduce，andthetwolastbuyandsell。
Equalcapitals，however，employedineachofthosefourdifferentways，willimmediatelyputintomotionverydifferentquantitiesofproductivelabour，andaugment，too，inverydifferentproportionsthevalueoftheannualproduceofthelandandlabourofthesocietytowhichtheybelong。
Thecapitaloftheretailerreplaces，togetherwithitsprofits，thatofthemerchantofwhomhepurchasesgoods，andtherebyenableshimtocontinuehisbusiness。Theretailerhimselfistheonlyproductivelabourerwhomitimmediatelyemploys。Inhisprofitsconsiststhewholevaluewhichitsemploymentaddstotheannualproduceofthelandandlabourofthesociety。
Thecapitalofthewholesalemerchantreplaces，togetherwiththeirprofits，thecapitalsofthefarmersandmanufacturersofwhomhepurchasestherudeandmanufacturedproducewhichhedealsin，andtherebyenablesthemtocontinuetheirrespectivetrades。Itisbythisservicechieflythathecontributesindirectlytosupporttheproductivelabourofthesociety，andtoincreasethevalueofitsannualproduce。Hiscapitalemploys，too，thesailorsandcarrierswhotransporthisgoodsfromoneplacetoanother，anditaugmentsthepriceofthosegoodsbythevalue，notonlyofhisprofits，butoftheirwages。Thisisalltheproductivelabourwhichitimmediatelyputsintomotion，andallthevaluewhichitimmediatelyaddstotheannualproduce。
Itsoperationinboththeserespectsisagooddealsuperiortothatofthecapitaloftheretailer。
Partofthecapitalofthemastermanufacturerisemployedasafixedcapitalintheinstrumentsofhistrade，andreplaces，togetherwithitsprofits，thatofsomeotherartificerofwhomhepurchasesthem。Partofhiscirculatingcapitalisemployedinpurchasingmaterials，andreplaces，withtheirprofits，thecapitalsofthefarmersandminersofwhomhepurchasesthem。Butagreatpartofitisalways，eitherannually，orinamuchshorterperiod，distributedamongthedifferentworkmenwhomheemploys。Itaugmentsthevalueofthosematerialsbytheirwages，andbytheirmatters’profitsuponthewholestockofwages，materials，andinstrumentsoftradeemployedinthebusiness。Itputsimmediatelyintomotion，therefore，amuchgreaterquantityofproductivelabour，andaddsamuchgreatervaluetotheannualproduceofthelandandlabourofthesocietythananequalcapitalinthehandsofanywholesalemerchant。
Noequalcapitalputsintomotionagreaterquantityofproductivelabourthanthatofthefarmer。Notonlyhislabouringservants，buthislabouringcattle，areproductivelabourers。Inagriculture，too，naturelaboursalongwithman;andthoughherlabourcostsnoexpense，itsproducehasitsvalue，aswellasthatofthemostexpensiveworkmen。Themostimportantoperationsofagricultureseemintendednotsomuchtoincrease，thoughtheydothattoo，astodirectthefertilityofnaturetowardstheproductionoftheplantsmostprofitabletoman。Afieldovergrownwithbriarsandbramblesmayfrequentlyproduceasgreataquantityofvegetablesasthebestcultivatedvineyardorcornfield。Plantingandtillagefrequentlyregulatemorethantheyanimatetheactivefertilityofnature;andafteralltheirlabour，agreatpartoftheworkalwaysremainstobedonebyher。Thelabourersandlabouringcattle，therefore，employedinagriculture，notonlyoccasion，liketheworkmeninmanufactures，thereproductionofavalueequaltotheirownconsumption，ortothecapitalwhichemploysthem，togetherwithitsowners’
profits;butofamuchgreatervalue。Overandabovethecapitalofthefarmerandallitsprofits，theyregularlyoccasionthereproductionoftherentofthelandlord。Thisrentmaybeconsideredastheproduceofthosepowersofnature，theuseofwhichthelandlordlendstothefarmer。Itisgreaterorsmalleraccordingtothesupposedextentofthosepowers，orinotherwords，accordingtothesupposednaturalorimprovedfertilityoftheland。Itistheworkofnaturewhichremainsafterdeductingorcompensatingeverythingwhichcanberegardedastheworkofman。Itisseldomlessthanafourth，andfrequentlymorethanathirdofthewholeproduce。Noequalquantityofproductivelabouremployedinmanufacturescaneveroccasionsogreatareproduction。Inthemnaturedoesnothing;mandoesall;andthereproductionmustalwaysbeinproportiontothestrengthoftheagentsthatoccasionit。Thecapitalemployedinagriculture，therefore，notonlyputsintomotionagreaterquantityofproductivelabourthananyequalcapitalemployedinmanufactures，butinproportion，too，tothequantityofproductivelabourwhichitemploys，itaddsamuchgreatervaluetotheannualproduceofthelandandlabourofthecountry，totherealwealthandrevenueofitsinhabitants。Ofallthewaysinwhichacapitalcanbeemployed，itisbyfarthemostadvantageoustothesociety。
Thecapitalsemployedintheagricultureandintheretailtradeofanysocietymustalwaysresidewithinthatsociety。
Theiremploymentisconfinedalmosttoaprecisespot，tothefarmandtotheshopoftheretailer。Theymustgenerally，too，thoughtherearesomeexceptionstothis，belongtoresidentmembersofthesociety。
Thecapitalofawholesalemerchant，onthecontrary，seemstohavenofixedornecessaryresidenceanywhere，butmaywanderaboutfromplacetoplace，accordingasitcaneitherbuycheaporselldear。
Thecapitalofthemanufacturermustnodoubtresidewherethemanufactureiscarriedon;butwherethisshallbeisnotalwaysnecessarilydetermined。Itmayfrequentlybeatagreatdistancebothfromtheplacewherethematerialsgrow，andfromthatwherethecompletemanufactureisconsumed。Lyonsisverydistantbothfromtheplaceswhichaffordthematerialsofitsmanufactures，andfromthosewhichconsumethem。ThepeopleoffashioninSicilyareclothedinsilksmadeinothercountries，fromthematerialswhichtheirownproduces。PartofthewoolofSpainismanufacturedinGreatBritain，andsomepartofthatclothisafterwardssentbacktoSpain。
Whetherthemerchantwhosecapitalexportsthesurplusproduceofanysocietybeanativeoraforeignerisofverylittleimportance。Ifheisaforeigner，thenumberoftheirproductivelabourersisnecessarilylessthanifhehadbeenanativebyonemanonly，andthevalueoftheirannualproducebytheprofitsofthatoneman。Thesailorsorcarrierswhomheemploysmaystillbelongindifferentlyeithertohiscountryortotheircountry，ortosomethirdcountry，inthesamemannerasifhehadbeenanative。Thecapitalofaforeignergivesavaluetotheirsurplusproduceequallywiththatofanativebyexchangingitforsomethingforwhichthereisademandathome。
Itaseffectuallyreplacesthecapitalofthepersonwhoproducesthatsurplus，andaseffectuallyenableshimtocontinuehisbusiness;theservicebywhichthecapitalofawholesalemerchantchieflycontributestosupporttheproductivelabour，andtoaugmentthevalueoftheannualproduceofthesocietytowhichhebelongs。
Itisofmoreconsequencethatthecapitalofthemanufacturershouldresidewithinthecountry。Itnecessarilyputsintomotionagreaterquantityofproductivelabour，andaddsagreatervaluetotheannualproduceofthelandandlabourofthesociety。Itmay，however，beveryusefultothecountry，thoughitshouldnotresidewithinit。ThecapitalsoftheBritishmanufacturerswhoworkuptheflaxandhempannuallyimportedfromthecoastsoftheBalticaresurelyveryusefultothecountrieswhichproducethem。Thosematerialsareapartofthesurplusproduceofthosecountrieswhich，unlessitwasannuallyexchangedforsomethingwhichisindemandthere，wouldbeofnovalue，andwouldsoonceasetobeproduced。Themerchantswhoexportitreplacethecapitalsofthepeoplewhoproduceit，andtherebyencouragethemtocontinuetheproduction;andtheBritishmanufacturersreplacethecapitalsofthosemerchants。
Aparticularcountry，inthesamemannerasaparticularperson，mayfrequentlynothavecapitalsufficientbothtoimproveandcultivateallitslands，tomanufactureandpreparetheirwholerudeproduceforimmediateuseandconsumption，andtotransportthesurplusparteitheroftherudeormanufacturedproducetothosedistantmarketswhereitcanbeexchangedforsomethingforwhichthereisademandathome。TheinhabitantsofmanydifferentpartsofGreatBritainhavenotcapitalsufficienttoimproveandcultivatealltheirlands。ThewoolofthesoutherncountiesofScotlandis，agreatpartofit，afteralonglandcarriagethroughverybadroads，manufacturedinYorkshire，forwantofcapitaltomanufactureitathome。TherearemanylittlemanufacturingtownsinGreatBritain，ofwhichtheinhabitantshavenotcapitalsufficienttotransporttheproduceoftheirownindustrytothosedistantmarketswherethereisdemandandconsumptionforit。Ifthereareanymerchantsamongthem，theyareproperlyonlytheagentsofwealthiermerchantswhoresideinsomeofthegreatercommercialcities。
Whenthecapitalofanycountryisnotsufficientforallthosethreepurposes，inproportionasagreatershareofitisemployedinagriculture，thegreaterwillbethequantityofproductivelabourwhichitputsintomotionwithinthecountry;
aswilllikewisebethevaluewhichitsemploymentaddstotheannualproduceofthelandandlabourofthesociety。Afteragriculture，thecapitalemployedinmanufacturesputsintomotionthegreatestquantityofproductivelabour，andaddsthegreatestvaluetotheannualproduce。Thatwhichisemployedinthetradeofexportationhastheleasteffectofanyofthethree。
Thecountry，indeed，whichhasnotcapitalsufficientforallthosethreepurposeshasnotarrivedatthatdegreeofopulenceforwhichitseemsnaturallydestined。Toattempt，however，prematurelyandwithaninsufficientcapitaltodoallthethreeiscertainlynottheshortestwayforasociety，nomorethanitwouldbeforanindividual，toacquireasufficientone。Thecapitalofalltheindividualsofanationhasitslimitsinthesamemannerasthatofasingleindividual，andiscapableofexecutingonlycertainpurposes。Thecapitalofalltheindividualsofanationisincreasedinthesamemannerasthatofasingleindividualbytheircontinuallyaccumulatingandaddingtoitwhatevertheysaveoutoftheirrevenue。Itislikelytoincreasethefastest，therefore，whenitisemployedinthewaythataffordsthegreatestrevenuetoalltheinhabitantsofthecountry，astheywillthusbeenabledtomakethegreatestsavings。Buttherevenueofalltheinhabitantsofthecountryisnecessarilyinproportiontothevalueoftheannualproduceoftheirlandandlabour。
IthasbeentheprincipalcauseoftherapidprogressofourAmericancoloniestowardswealthandgreatnessthatalmosttheirwholecapitalshavehithertobeenemployedinagriculture。Theyhavenomanufactures，thosehouseholdandcoursermanufacturesexceptedwhichnecessarilyaccompanytheprogressofagriculture，andwhicharetheworkofthewomenandchildrenineveryprivatefamily。ThegreaterpartbothoftheexportationandcoastingtradeofAmericaiscarriedonbythecapitalsofmerchantswhoresideinGreatBritain。Eventhestoresandwarehousesfromwhichgoodsareretailedinsomeprovinces，particularlyinVirginiaandMaryland，belongmanyofthemtomerchantswhoresideinthemothercountry，andaffordoneofthefewinstancesoftheretailtradeofasocietybeingcarriedonbythecapitalsofthosewhoarenotresidentmembersofit。WeretheAmericans，eitherbycombinationorbyanyothersortofviolence，tostoptheimportationofEuropeanmanufactures，and，bythusgivingamonopolytosuchoftheirowncountrymenascouldmanufacturethelikegoods，divertanyconsiderablepartoftheircapitalintothisemployment，theywouldretardinsteadofacceleratingthefurtherincreaseinthevalueoftheirannualproduce，andwouldobstructinsteadofpromotingtheprogressoftheircountrytowardsrealwealthandgreatness。Thiswouldbestillmorethecaseweretheytoattempt，inthesamemanner，tomonopolizetothemselvestheirwholeexportationtrade。
Thecourseofhumanprosperity，indeed，seemsscarceevertohavebeenofsolongcontinuanceastoenableanygreatcountrytoacquirecapitalsufficientforallthosethreepurposes;
unlessperhaps，wegivecredittothewonderfulaccountsofthewealthandcultivationofChina，ofthoseofancientEgypt，andoftheancientstateofIndostan。Eventhosethreecountries，thewealthiest，accordingtoallaccounts，thateverwereintheworld，arechieflyrenownedfortheirsuperiorityinagricultureandmanufactures。Theydonotappeartohavebeeneminentforforeigntrade。TheancientEgyptianshadasuperstitiousantipathytothesea;asuperstitionnearlyofthesamekindprevailsamongtheIndians;andtheChinesehaveneverexcelledinforeigncommerce。Thegreaterpartofthesurplusproduceofallthosethreecountriesseemstohavebeenalwaysexportedbyforeigners，whogaveinexchangeforitsomethingelseforwhichtheyfoundademandthere，frequentlygoldandsilver。
Itisthusthatthesamecapitalwillinanycountryputintomotionagreaterorsmallerquantityofproductivelabour，andaddagreaterorsmallervaluetotheannualproduceofitslandandlabour，accordingtothedifferentproportionsinwhichitisemployedinagriculture，manufactures，andwholesaletrade。
Thedifference，too，isverygreat，accordingtothedifferentsortsofwholesaletradeinwhichanypartofitisemployed。
Allwholesaletrade，allbuyinginordertosellagainbywholesale，maybereducedtothreedifferentsorts。Thehometrade，theforeigntradeofconsumption，andthecarryingtrade。
Thehometradeisemployedinpurchasinginonepartofthesamecountry，andsellinginanother，theproduceoftheindustryofthatcountry。Itcomprehendsboththeinlandandthecoastingtrade。Theforeigntradeofconsumptionisemployedinpurchasingforeigngoodsforhomeconsumption。Thecarryingtradeisemployedintransactingthecommerceofforeigncountries，orincarryingthesurplusproduceofonetoanother。
Thecapitalwhichisemployedinpurchasinginonepartofthecountryinordertosellinanothertheproduceoftheindustryofthatcountry，generallyreplacesbyeverysuchoperationtwodistinctcapitalsthathadbothbeenemployedintheagricultureormanufacturesofthatcountry，andtherebyenablesthemtocontinuethatemployment。Whenitsendsoutfromtheresidenceofthemerchantacertainvalueofcommodities，itgenerallybringsbackinreturnatleastanequalvalueofothercommodities。Whenbotharetheproduceofdomesticindustry，itnecessarilyreplacesbyeverysuchoperationtwodistinctcapitalswhichhadbothbeenemployedinsupportingproductivelabour，andtherebyenablesthemtocontinuethatsupport。ThecapitalwhichsendsScotchmanufacturestoLondon，andbringsbackEnglishcornandmanufacturestoEdinburgh，necessarilyreplacesbyeverysuchoperation，twoBritishcapitalswhichhadbothbeenemployedintheagricultureormanufacturesofGreatBritain。
Thecapitalemployedinpurchasingforeigngoodsforhomeconsumption，whenthispurchaseismadewiththeproduceofdomesticindustry，replacestoo，byeverysuchoperation，twodistinctcapitals;butoneofthemonlyisemployedinsupportingdomesticindustry。ThecapitalwhichsendsBritishgoodstoPortugal，andbringsbackPortuguesegoodstoGreatBritain，replacesbyeverysuchoperationonlyoneBritishcapital。TheotherisaPortugueseone。Thoughthereturns，therefore，oftheforeigntradeofconsumptionshouldbeasquickasthoseofthehometrade，thecapitalemployedinitwillgivebutonehalftheencouragementtotheindustryorproductivelabourofthecountry。
Butthereturnsoftheforeigntradeofconsumptionareveryseldomsoquickasthoseofthehometrade。Thereturnsofthehometradegenerallycomeinbeforetheendoftheyear，andsometimesthreeorfourtimesintheyear。Thereturnsoftheforeigntradeofconsumptionseldomcomeinbeforetheendoftheyear，andsometimesnottillaftertwoorthreeyears。Acapital，therefore，employedinthehometradewillsometimesmaketwelveoperations，orbesentoutandreturnedtwelvetimes，beforeacapitalemployedintheforeigntradeofconsumptionhasmadeone。Ifthecapitalsareequal，therefore，theonewillgivefour—and—twentytimesmoreencouragementandsupporttotheindustryofthecountrythantheother。
Theforeigngoodsforhomeconsumptionmaysometimesbepurchased，notwiththeproduceofdomesticindustry，butwithsomeotherforeigngoods。Theselast，however，musthavebeenpurchasedeitherimmediatelywiththeproduceofdomesticindustry，orwithsomethingelsethathadbeenpurchasedwithit;
for，thecaseofwarandconquestexcepted，foreigngoodscaneverbeacquiredbutinexchangeforsomethingthathadbeenproducedathome，eitherimmediately，oraftertwoormoredifferentexchanges。Theeffects，therefore，ofacapitalemployedinsucharoundaboutforeigntradeofconsumption，are，ineveryrespect，thesameasthoseofoneemployedinthemostdirecttradeofthesamekind，exceptthatthefinalreturnsarelikelytobestillmoredistant，astheymustdependuponthereturnsoftwoorthreedistinctforeigntrades。IftheflaxandhempofRigaarepurchasedwiththetobaccoofVirginia，whichhadbeenpurchasedwithBritishmanufactures，themerchantmustwaitforthereturnsoftwodistinctforeigntradesbeforehecanemploythesamecapitalinre—purchasingalikequantityofBritishmanufactures。IfthetobaccoofVirginiahadbeenpurchased，notwithBritishmanufactures，butwiththesugarandrumofJamaicawhichhadbeenpurchasedwiththosemanufactures，hemustwaitforthereturnsofthree。Ifthosetwoorthreedistinctforeigntradesshouldhappentobecarriedonbytwoorthreedistinctmerchants，ofwhomthesecondbuysthegoodsimportedbythefirst，andthethirdbuysthoseimportedbythesecond，inordertoexportthemagain，eachmerchantindeedwillinthiscasereceivethereturnsofhisowncapitalmorequickly;
butthefinalreturnsofthewholecapitalemployedinthetradewillbejustasslowasever。Whetherthewholecapitalemployedinsucharound—abouttradebelongtoonemerchantortothreecanmakenodifferencewithregardtothecountry，thoughitmaywithregardtotheparticularmerchants。ThreetimesagreatercapitalmustinbothcasesbeemployedinordertoexchangeacertainvalueofBritishmanufacturesforacertainquantityofflaxandhempthanwouldhavebeennecessaryhadthemanufacturesandtheflaxandhempbeendirectlyexchangedforoneanother。
Thewholecapitalemployed，therefore，insucharound—aboutforeigntradeofconsumptionwillgenerallygivelessencouragementandsupporttotheproductivelabourofthecountrythananequalcapitalemployedinamoredirecttradeofthesamekind。
Whateverbetheforeigncommoditywithwhichtheforeigngoodsforhomeconsumptionarepurchased，itcanoccasionnoessentialdifferenceeitherinthenatureofthetrade，orintheencouragementandsupportwhichitcangivetotheproductivelabourofthecountryfromwhichitiscarriedon。IftheyarepurchasedwiththegoldofBrazil，forexample，orwiththesilverofPeru，thisgoldandsilver，likethetobaccoofVirginia，musthavebeenpurchasedwithsomethingthateitherwastheproduceoftheindustryofthecountry，orthathadbeenpurchasedwithsomethingelsethatwasso。Sofar，therefore，astheproductivelabourofthecountryisconcerned，theforeigntradeofconsumptionwhichiscarriedonbymeansofgoldandsilverhasalltheadvantagesandalltheinconveniencesofanyotherequallyround—aboutforeigntradeofconsumption，andwillreplacejustasfastorjustasslowthecapitalwhichisimmediatelyemployedinsupportingthatproductivelabour。Itseemseventohaveoneadvantageoveranyotherequallyroundaboutforeigntrade。Thetransportationofthosemetalsfromoneplacetoanother，onaccountoftheirsmallbulkandgreatvalue，islessexpensivethanthatofalmostanyotherforeigngoodsofequalvalue。Theirfreightismuchless，andtheirinsurancenotgreater;andnogoods，besides，arelessliabletosufferbythecarriage。Anequalquantityofforeigngoods，therefore，mayfrequentlybepurchasedwithasmallerquantityoftheproduceofdomesticindustry，bytheinterventionofgoldandsilver，thanbythatofanyotherforeigngoods。Thedemandofthecountrymayfrequently，inthismanner，besuppliedmorecompletelyandatasmallerexpensethaninanyother。Whether，bythecontinualexportationofthosemetals，atradeofthiskindislikelytoimpoverishthecountryfromwhichitiscarriedon，inanyotherway，Ishallhaveoccasiontoexamineatgreatlengthhereafter。
Thatpartofthecapitalofanycountrywhichisemployedinthecarryingtradeisaltogetherwithdrawnfromsupportingtheproductivelabourofthatparticularcountry，tosupportthatofsomeforeigncountries。Thoughitmayreplacebyeveryoperationtwodistinctcapitals，yetneitherofthembelongstothatparticularcountry。ThecapitaloftheDutchmerchant，whichcarriesthecornofPolandtoPortugal，andbringsbackthefruitsandwinesofPortugaltoPoland，replacesbyeverysuchoperationtwocapitals，neitherofwhichhadbeenemployedinsupportingtheproductivelabourofHolland;butoneoftheminsupportingthatofPoland，andtheotherthatofPortugal。TheprofitsonlyreturnregularlytoHolland，andconstitutethewholeadditionwhichthistradenecessarilymakestotheannualproduceofthelandandlabourofthatcountry。When，indeed，thecarryingtradeofanyparticularcountryiscarriedonwiththeshipsandsailorsofthatcountry，thatpartofthecapitalemployedinitwhichpaysthefreightisdistributedamong，andputsintomotion，acertainnumberofproductivelabourersofthatcountry。Almostallnationsthathavehadanyconsiderableshareofthecarryingtradehave，infact，carrieditoninthismanner。Thetradeitselfhasprobablyderiveditsnamefromit，thepeopleofsuchcountriesbeingthecarrierstoothercountries。Itdoesnot，however，seemessentialtothenatureofthetradethatitshouldbeso。ADutchmerchantmay，forexample，employhiscapitalintransactingthecommerceofPolandandPortugal，bycarryingpartofthesurplusproduceoftheonetotheother，notinDutch，butinBritishbottoms。Itmaybepresumedthatheactuallydoessouponsomeparticularoccasions。
Itisuponthisaccount，however，thatthecarryingtradehasbeensupposedpeculiarlyadvantageoustosuchacountryasGreatBritain，ofwhichthedefenceandsecuritydependuponthenumberofitssailorsandshipping。Butthesamecapitalmayemployasmanysailorsandshipping，eitherintheforeigntradeofconsumption，oreveninthehometrade，whencarriedonbycoastingvessels，asitcouldinthecarryingtrade。Thenumberofsailorsandshippingwhichanyparticularcapitalcanemploydoesnotdependuponthenatureofthetrade，butpartlyuponthebulkofthegoodsinproportiontotheirvalue，andpartlyuponthedistanceoftheportsbetweenwhichtheyaretobecarried;
chieflyupontheformerofthosetwocircumstances。ThecoaltradefromNewcastletoLondon，forexample，employsmoreshippingthanallthecarryingtradeofEngland，thoughtheportsareatnogreatdistance。Toforce，therefore，byextraordinaryencouragements，alargershareofthecapitalofanycountryintothecarryingtradethanwhatwouldnaturallygotoitwillnotalwaysnecessarilyincreasetheshippingofthatcountry。
Thecapital，therefore，employedinthehometradeofanycountrywillgenerallygiveencouragementandsupporttoagreaterquantityofproductivelabourinthatcountry，andincreasethevalueofitsannualproducemorethananequalcapitalemployedintheforeigntradeofconsumption:andthecapitalemployedinthislattertradehasinboththeserespectsastillgreateradvantageoveranequalcapitalemployedinthecarryingtrade。Theriches，andsofaraspowerdependsuponriches，thepowerofeverycountrymustalwaysbeinproportiontothevalueofitsannualproduce，thefundfromwhichalltaxesmustultimatelybepaid。Butthegreatobjectofthepoliticaleconomyofeverycountryistoincreasetherichesandpowerofthatcountry。Itought，therefore，togivenopreferencenorsuperiorencouragementtotheforeigntradeofconsumptionabovethehometrade，nortothecarryingtradeaboveeitheroftheothertwo。Itoughtneithertoforcenortoallureintoeitherofthosetwochannelsagreatershareofthecapitalofthecountrythanwhatwouldnaturallyflowintothemofitsownaccord。
Whentheproduceofanyparticularbranchofindustryexceedswhatthedemandofthecountryrequires，thesurplusmustbesentabroadandexchangedforsomethingforwhichthereisademandathome。Withoutsuchexportationapartoftheproductivelabourofthecountrymustcease，andthevalueofitsannualproducediminish。ThelandandlabourofGreatBritainproducegenerallymorecorn，woollens，andhardwarethanthedemandofthehomemarketrequires。Thesurpluspartofthem，therefore，mustbesentabroad，andexchangedforsomethingforwhichthereisademandathome。Itisonlybymeansofsuchexportationthatthissurpluscanacquireavaluesufficienttocompensatethelabourandexpenseofproducingit。Theneighbourhoodofthesea—coast，andthebanksofallnavigablerivers，areadvantageoussituationsforindustry，onlybecausetheyfacilitatetheexportationandexchangeofsuchsurplusproduceforsomethingelsewhichismoreindemandthere。
Whentheforeigngoodswhicharethuspurchasedwiththesurplusproduceofdomesticindustryexceedthedemandofthehomemarket，thesurpluspartofthemmustbesentabroadagainandexchangedforsomethingmoreindemandathome。Aboutninety—sixthousandhogsheadsoftobaccoareannuallypurchasedinVirginiaandMarylandwithapartofthesurplusproduceofBritishindustry。ButthedemandofGreatBritaindoesnotrequire，perhaps，morethanfourteenthousand。Iftheremainingeighty—twothousand，therefore，couldnotbesentabroadandexchangedforsomethingmoreindemandathome，theimportationofthemmustceaseimmediately，andwithittheproductivelabourofallthoseinhabitantsofGreatBritain，whoareatpresentemployedinpreparingthegoodswithwhichtheseeighty—twothousandhogsheadsareannuallypurchased。Thosegoods，whicharepartoftheproduceofthelandandlabourofGreatBritain，havingnomarketathome，andbeingdeprivedofthatwhichtheyhadabroad，mustceasetobeproduced。Themostround—aboutforeigntradeofconsumption，thereforemay，uponsomeoccasions，beasnecessaryforsupportingtheproductivelabourofthecountry，andthevalueofitsannualproduce，asthemostdirect。
Whenthecapitalstockofanycountryisincreasedtosuchadegreethatitcannotbeallemployedinsupplyingtheconsumptionandsupportingtheproductivelabourofthatparticularcountry，thesurpluspartofitnaturallydisgorgesitselfintothecarryingtrade，andisemployedinperformingthesameofficestoothercountries。Thecarryingtradeisthenaturaleffectandsymptomofgreatnationalwealth;butitdoesnotseemtobethenaturalcauseofit。Thosestatesmenwhohavebeendisposedtofavouritwithparticularencouragementsseemtohavemistakentheeffectandsymptomforthecause。Holland，inproportiontotheextentofthelandandthenumberofitsinhabitants，byfartherichestcountryinEurope，has，accordingly，thegreatestshareofthecarryingtradeofEurope。
England，perhapsthesecondrichestcountryofEurope，islikewisesupposedtohaveaconsiderableshareofit;thoughwhatcommonlypassesforthecarryingtradeofEnglandwillfrequently，perhaps，befoundtobenomorethanaround—aboutforeigntradeofconsumption。Suchare，inagreatmeasure，thetradeswhichcarrythegoodsoftheEastandWestIndies，andofAmerica，todifferentEuropeanmarkets。ThosegoodsaregenerallypurchasedeitherimmediatelywiththeproduceofBritishindustry，orwithsomethingelsewhichhadbeenpurchasedwiththatproduce，andthefinalreturnsofthosetradesaregenerallyusedorconsumedinGreatBritain。ThetradewhichiscarriedoninBritishbottomsbetweenthedifferentportsoftheMediterranean，andsometradeofthesamekindcarriedonbyBritishmerchantsbetweenthedifferentportsofIndia，make，perhaps，theprincipalbranchesofwhatisproperlythecarryingtradeofGreatBritain。
Theextentofthehometradeandofthecapitalwhichcanbeemployedinit，isnecessarilylimitedbythevalueofthesurplusproduceofallthosedistantplaceswithinthecountrywhichhaveoccasiontoexchangetheirrespectiveproductionswithanother:thatoftheforeigntradeofconsumption，bythevalueofthesurplusproduceofthewholecountryandofwhatcanbepurchasedwithit:thatofthecarryingtradebythevalueofthesurplusproduceofallthedifferentcountriesintheworld。Itspossibleextent，therefore，isinamannerinfiniteincomparisonofthatoftheothertwo，andiscapableofabsorbingthegreatestcapitals。
Theconsiderationofhisownprivateprofitisthesolemotivewhichdeterminestheownerofanycapitaltoemployiteitherinagriculture，inmanufactures，orinsomeparticularbranchofthewholesaleorretailtrade。Thedifferentquantitiesofproductivelabourwhichitmayputintomotion，andthedifferentvalueswhichitmayaddtotheannual，produceofthelandandlabourofthesociety，accordingasitisemployedinoneorotherofthosedifferentways，neverenterintohisthoughts。Incountries，therefore，whereagricultureisthemostprofitableofallemployments，andfarmingandimprovingthemostdirectroadstoasplendidfortune，thecapitalsofindividualswillnaturallybeemployedinthemannermostadvantageoustothewholesociety。Theprofitsofagriculture，however，seemtohavenosuperiorityoverthoseofotheremploymentsinanypartofEurope。Projectors，indeed，ineverycornerofit，havewithinthesefewyearsamusedthepublicwithmostmagnificentaccountsoftheprofitstobemadebythecultivationandimprovementofland。Withoutenteringintoanyparticulardiscussionoftheircalculations，averysimpleobservationmaysatisfyusthattheresultofthemmustbefalse。Weseeeverydaythemostsplendidfortunesthathavebeenacquiredinthecourseofasinglelifebytradeandmanufacturers，frequentlyfromaverysmallcapital，sometimesfromnocapital。Asingleinstanceofsuchafortuneacquiredbyagricultureinthesametime，andfromsuchacapital，hasnot，perhaps，occurredinEuropeduringthecourseofthepresentcentury。InallthegreatcountriesofEurope，however，muchgoodlandstillremainsuncultivated，andthegreaterpartofwhatiscultivatedisfarfrombeingimprovedtothedegreeofwhichitiscapable。Agriculture，therefore，isalmosteverywherecapableofabsorbingamuchgreatercapitalthanhaseveryetbeenemployedinit。WhatcircumstancesinthepolicyofEuropehavegiventhetradeswhicharecarriedonintownssogreatanadvantageoverthatwhichiscarriedoninthecountrythatprivatepersonsfrequentlyfinditmorefortheiradvantagetoemploytheircapitalsinthemostdistantcarryingtradesofAsiaandAmericathanintheimprovementandcultivationofthemostfertilefieldsintheirownneighbourhood，Ishallendeavourtoexplainatfulllengthinthetwofollowingbooks。
ANINQUIRYINTOTHENATUREANDCAUSESOFTHEWEALTHOFNATIONS
byAdamSmith1776
BOOKTHREE
OFTHEDIFFERENTPROGRESSOFOPULENCEINDIFFERENTNATIONS
OftheNaturalProgressofOpulenceTHEgreatcommerceofeverycivilisedsocietyisthatcarriedonbetweentheinhabitantsofthetownandthoseofthecountry。Itconsistsintheexchangeofrudeformanufacturedproduce，eitherimmediately，orbytheinterventionofmoney，orofsomesortofpaperwhichrepresentsmoney。Thecountrysuppliesthetownwiththemeansofsubsistenceandthematerialsofmanufacture。Thetownrepaysthissupplybysendingbackapartofthemanufacturedproducetotheinhabitantsofthecountry。Thetown，inwhichthereneitherisnorcanbeanyreproductionofsubstances，mayveryproperlybesaidtogainitswholewealthandsubsistencefromthecountry。Wemustnot，however，uponthisaccount，imaginethatthegainofthetownisthelossofthecountry。Thegainsofbotharemutualandreciprocal，andthedivisionoflabourisinthis，asinallothercases，advantageoustoallthedifferentpersonsemployedinthevariousoccupationsintowhichitissubdivided。Theinhabitantsofthecountrypurchaseofthetownagreaterquantityofmanufacturedgoods，withtheproduceofamuchsmallerquantityoftheirownlabour，thantheymusthaveemployedhadtheyattemptedtopreparethemthemselves。Thetownaffordsamarketforthesurplusproduceofthecountry，orwhatisoverandabovethemaintenanceofthecultivators，anditistherethattheinhabitantsofthecountryexchangeitforsomethingelsewhichisindemandamongthem。Thegreaterthenumberandrevenueoftheinhabitantsofthetown，themoreextensiveisthemarketwhichitaffordstothoseofthecountry;