Butwhatalltheviolenceofthefeudalinstitutionscouldneverhaveeffected，thesilentandinsensibleoperationofforeigncommerceandmanufacturesgraduallybroughtabout。Thesegraduallyfurnishedthegreatproprietorswithsomethingforwhichtheycouldexchangethewholesurplusproduceoftheirlands，andwhichtheycouldconsumethemselveswithoutsharingiteitherwithtenantsorretainers。Allforourselvesandnothingforotherpeople，seems，ineveryageoftheworld，tohavebeenthevilemaximofthemastersofmankind。Assoon，therefore，astheycouldfindamethodofconsumingthewholevalueoftheirrentsthemselves，theyhadnodispositiontosharethemwithanyotherpersons。Forapairofdiamondbuckles，perhaps，orforsomethingasfrivolousanduseless，theyexchangedthemaintenance，orwhatisthesamething，thepriceofthemaintenanceofathousandmenforayear，andwithitthewholeweightandauthoritywhichitcouldgivethem。Thebuckles，however，weretobealltheirown，andnootherhumancreaturewastohaveanyshareofthem;whereasinthemoreancientmethodofexpensetheymusthavesharedwithatleastathousandpeople。
Withthejudgesthatweretodeterminethepreferencethisdifferencewasperfectlydecisive;andthus，forthegratificationofthemostchildish，themeanest，andthemostsordidofallvanities，theygraduallybarteredtheirwholepowerandauthority。
Inacountrywherethereisnoforeigncommerce，noranyofthefinermanufactures，amanoftenthousandayearcannotwellemployhisrevenueinanyotherwaythaninmaintaining，perhaps，athousandfamilies，whoareallofthemnecessarilyathiscommand。InthepresentstateofEurope，amanoftenthousandayearcanspendhiswholerevenue，andhegenerallydoesso，withoutdirectlymaintainingtwentypeople，orbeingabletocommandmorethantenfootmennotworththecommanding。
Indirectly，perhaps，hemaintainsasgreatorevenagreaternumberofpeoplethanhecouldhavedonebytheancientmethodofexpense。Forthoughthequantityofpreciousproductionsforwhichheexchangeshiswholerevenuebeverysmall，thenumberofworkmenemployedincollectingandpreparingitmustnecessarilyhavebeenverygreat。Itsgreatpricegenerallyarisesfromthewagesoftheirlabour，andtheprofitsofalltheirimmediateemployers。Bypayingthatpriceheindirectlypaysallthosewagesandprofitsandthusindirectlycontributestothemaintenanceofalltheworkmenandtheiremployers。Hegenerallycontributes，however，butaverysmallproportiontothatofeach，toveryfewperhapsatenth，tomanynotahundredth，andtosomenotathousandth，norevenaten—thousandthpartoftheirwholeannualmaintenance。Thoughhecontributes，therefore，tothemaintenanceofthemall，theyareallmoreorlessindependentofhim，becausegenerallytheycanallbemaintainedwithouthim。
Whenthegreatproprietorsoflandspendtheirrentsinmaintainingtheirtenantsandretainers，eachofthemmaintainsentirelyallhisowntenantsandallhisownretainers。Butwhentheyspendtheminmaintainingtradesmenandartificers，theymay，allofthemtakentogether，perhaps，maintainasgreat，or，onaccountofthewastewhichattendsrustichospitality，agreaternumberofpeoplethanbefore。Eachofthem，however，takensingly，contributesoftenbutaverysmallsharetothemaintenanceofanyindividualofthisgreaternumber。Eachtradesmanorartificerderiveshissubsistencefromtheemployment，notofone，butofahundredorathousanddifferentcustomers。Thoughinsomemeasureobligedtothemall，therefore，heisnotabsolutelydependentuponanyoneofthem。
Thepersonalexpenseofthegreatproprietorshavinginthismannergraduallyincreased，itwasimpossiblethatthenumberoftheirretainersshouldnotasgraduallydiminishtilltheywereatlastdismissedaltogether。Thesamecausegraduallyledthemtodismisstheunnecessarypartoftheirtenants。Farmswereenlarged，andtheoccupiersofland，notwithstandingthecomplaintsofdepopulation，reducedtothenumbernecessaryforcultivatingit，accordingtotheimperfectstateofcultivationandimprovementinthosetimes。Bytheremovaloftheunnecessarymouths，andbyexactingfromthefarmerthefullvalueofthefarm，agreatersurplus，orwhatisthesamething，thepriceofagreatersurplus，wasobtainedfortheproprietor，whichthemerchantsandmanufacturerssoonfurnishedhimwithamethodofspendinguponhisownpersoninthesamemannerashehaddonetherest。Thesamecausecontinuingtooperate，hewasdesiroustoraisehisrentsabovewhathislands，intheactualstateoftheirimprovement，couldafford。Histenantscouldagreetothisupononeconditiononly，thattheyshouldbesecuredintheirpossessionforsuchatermofyearsasmightgivethemtimetorecoverwithprofitwhatevertheyshouldlayoutinthefurtherimprovementoftheland。Theexpensivevanityofthelandlordmadehimwillingtoacceptofthiscondition;andhencetheoriginoflongleases。
Evenatenantatwill，whopaysthefullvalueoftheland，isnotaltogetherdependentuponthelandlord。Thepecuniaryadvantageswhichtheyreceivefromoneanotheraremutualandequal，andsuchatenantwillexposeneitherhislifenorhisfortuneintheserviceoftheproprietor。Butifhehasaleaseforalongtermofyears，heisaltogetherindependent;andhislandlordmustnotexpectfromhimthemosttriflingservicebeyondwhatiseitherexpresslystipulatedintheleaseorimposeduponhimbythecommonandknownlawofthecountry。
Thetenantshavinginthismannerbecomeindependent，andtheretainersbeingdismissed，thegreatproprietorswerenolongercapableofinterruptingtheregularexecutionofjusticeorofdisturbingthepeaceofthecountry。Havingsoldtheirbirthright，notlikeEsauforamessofpottageintimeofhungerandnecessity，butinthewantonnessofplenty，fortrinketsandbaubles，fittertobetheplaythingsofchildrenthantheseriouspursuitsofmen，theybecameasinsignificantasanysubstantialburgherortradesmaninacity。Aregulargovernmentwasestablishedinthecountryaswellasinthecity，nobodyhavingsufficientpowertodisturbitsoperationsintheoneanymorethanintheother。
Itdoesnot，perhaps，relatetothepresentsubject，butI
cannothelpremarkingit，thatveryoldfamilies，suchashavepossessedsomeconsiderableestatefromfathertosonformanysuccessivegenerationsareveryrareincommercialcountries。Incountrieswhichhavelittlecommerce，onthecontrary，suchasWalesorthehighlandsofScotland，theyareverycommon。TheArabianhistoriesseemtobeallfullofgenealogies，andthereisahistorywrittenbyaTartarKhan，whichhasbeentranslatedintoseveralEuropeanlanguages，andwhichcontainsscarceanythingelse;aproofthatancientfamiliesareverycommonamongthosenations。Incountrieswherearichmancanspendhisrevenueinnootherwaythanbymaintainingasmanypeopleasitcanmaintain，heisnotapttorunout，andhisbenevolenceitseemsisseldomsoviolentastoattempttomaintainmorethanhecanafford。Butwherehecanspendthegreatestrevenueuponhisownperson，hefrequentlyhasnoboundstohisexpense，becausehefrequentlyhasnoboundstohisvanityortohisaffectionforhisownperson。Incommercialcountries，therefore，riches，inspiteofthemostviolentregulationsoflawtopreventtheirdissipation，veryseldomremainlonginthesamefamily。Amongsimplenations，onthecontrary，theyfrequentlydowithoutanyregulationsoflaw，foramongnationsofshepherds，suchastheTartarsandArabs，theconsumablenatureoftheirpropertynecessarilyrendersallsuchregulationsimpossible。
Arevolutionofthegreatestimportancetothepublichappinesswasinthismannerbroughtaboutbytwodifferentordersofpeoplewhohadnottheleastintentiontoservethepublic。Togratifythemostchildishvanitywasthesolemotiveofthegreatproprietors。Themerchantsandartificers，muchlessridiculous，actedmerelyfromaviewtotheirowninterest，andinpursuitoftheirownpedlarprincipleofturningapennywhereverapennywastobegot。Neitherofthemhadeitherknowledgeorforesightofthatgreatrevolutionwhichthefollyoftheone，andtheindustryoftheother，wasgraduallybringingabout。
ItisthusthatthroughthegreaterpartofEuropethecommerceandmanufacturesofcities，insteadofbeingtheeffect，havebeenthecauseandoccasionoftheimprovementandcultivationofthecountry。
Thisorder，however，beingcontrarytothenaturalcourseofthings，isnecessarilybothslowanduncertain。ComparetheslowprogressofthoseEuropeancountriesofwhichthewealthdependsverymuchupontheircommerceandmanufactureswiththerapidadvancesofourNorthAmericancolonies，ofwhichthewealthisfoundedaltogetherinagriculture。ThroughthegreaterpartofEuropethenumberofinhabitantsisnotsupposedtodoubleinlessthanfivehundredyears。InseveralofourNorthAmericancolonies，itisfoundtodoubleintwentyorfive—and—twentyyears。InEurope，thelawofprimogenitureandperpetuitiesofdifferentkindspreventthedivisionofgreatestates，andtherebyhinderthemultiplicationofsmallproprietors。Asmallproprietor，however，whoknowseverypartofhislittleterritory，whoviewsitwithalltheaffectionwhichproperty，especiallysmallproperty，naturallyinspires，andwhouponthataccounttakespleasurenotonlyincultivatingbutinadorningit，isgenerallyofallimproversthemostindustrious，themostintelligent，andthemostsuccessful。Thesameregulations，besides，keepsomuchlandoutofthemarketthattherearealwaysmorecapitalstobuythanthereislandtosell，sothatwhatissoldalwayssellsatamonopolyprice。Therentneverpaystheinterestofthepurchase—money，andis，besides，burdenedwithrepairsandotheroccasionalchargestowhichtheinterestofmoneyisnotliable。TopurchaselandiseverywhereinEuropeamostunprofitableemploymentofasmallcapital。Forthesakeofthesuperiorsecurity，indeed，amanofmoderatecircumstances，whenheretiresfrombusiness，willsometimeschoosetolayouthislittlecapitalinland。Amanofprofessiontoo，whoserevenueisderivedfrom。anothersource，oftenlovestosecurehissavingsinthesameway。Butayoungman，who，insteadofapplyingtotradeortosomeprofession，shouldemployacapitaloftwoorthreethousandpoundsinthepurchaseandcultivationofasmallpieceofland，mightindeedexpecttoliveveryhappily，andveryindependently，butmustbidadieuforevertoallhopeofeithergreatfortuneorgreatillustration，whichbyadifferentemploymentofhisstockhemighthavehadthesamechanceofacquiringwithotherpeople。Suchapersontoo，thoughhecannotaspireatbeingaproprietor，willoftendisdaintobeafarmer。Thesmallquantityofland，therefore，whichisbroughttomarket，andthehighpriceofwhatisbroughtthither，preventsagreatnumberofcapitalsfrombeingemployedinitscultivationandimprovementwhichwouldotherwisehavetakenthatdirection。InNorthAmerica，onthecontrary，fiftyorsixtypoundsisoftenfoundasufficientstocktobeginaplantationwith。Thepurchaseandimprovementofuncultivatedlandistherethemostprofitableemploymentofthesmallestaswellasofthegreatestcapitals，andthemostdirectroadtoallthefortuneandillustrationwhichcanbeacquiredinthatcountry。Suchland，indeed，isinNorthAmericatobehadalmostfornothing，oratapricemuchbelowthevalueofthenaturalproduce—athingimpossibleinEurope，or，indeed，inanycountrywherealllandshavelongbeenprivateproperty。Iflandedestates，however，weredividedequallyamongallthechildrenuponthedeathofanyproprietorwholeftanumerousfamily，theestatewouldgenerallybesold。Somuchlandwouldcometomarketthatitcouldnolongersellatamonopolyprice。Thefreerentofthelandwouldgonearertopaytheinterestofthepurchase—money，andasmallcapitalmightbeemployedinpurchasinglandasprofitablyasinanyotherway。
England，onaccountofthenaturalfertilityofthesoil，ofthegreatextentofthesea—coastinproportiontothatofthewholecountry，andofthemanynavigableriverswhichrunthroughitandaffordtheconveniencyofwatercarriagetosomeofthemostinlandpartsofit，isperhapsaswellfittedbynatureasanylargecountryinEuropetobetheseatofforeigncommerce，ofmanufacturesfordistantsale，andofalltheimprovementswhichthesecanoccasion。FromthebeginningofthereignofElizabethtoo，theEnglishlegislaturehasbeenpeculiarlyattentivetotheinterestsofcommerceandmanufactures，andinrealitythereisnocountryinEurope，Hollanditselfnotexcepted，ofwhichthelawis，uponthewhole，morefavourabletothissortofindustry。Commerceandmanufactureshaveaccordinglybeencontinuallyadvancingduringallthisperiod。Thecultivationandimprovementofthecountryhas，nodoubt，beengraduallyadvancingtoo;butitseemstohavefollowedslowly，andatadistance，themorerapidprogressofcommerceandmanufactures。ThegreaterpartofthecountrymustprobablyhavebeencultivatedbeforethereignofElizabeth;andaverygreatpartofitstillremainsuncultivated，andthecultivationofthefargreaterpartmuchinferiortowhatitmightbe。ThelawofEngland，however，favoursagriculturenotonlyindirectlybytheprotectionofcommerce，butbyseveraldirectencouragements。
Exceptintimesofscarcity，theexportationofcornisnotonlyfree，butencouragedbyabounty。Intimesofmoderateplenty，theimportationofforeigncornisloadedwithdutiesthatamounttoaprohibition。Theimportationoflivecattle，exceptfromIreland，isprohibitedatalltimes，anditisbutoflatethatitwaspermittedfromthence。Thosewhocultivatetheland，therefore，haveamonopolyagainsttheircountrymenforthetwogreatestandmostimportantarticlesoflandproduce，breadandbutcher’smeat。Theseencouragements，thoughatbottom，perhaps，asIshallendeavourtoshowhereafter，altogetherillusory，sufficientlydemonstrateatleastthegoodintentionofthelegislaturetofavouragriculture。Butwhatisofmuchmoreimportancethanallofthem，theyeomanryofEnglandarerenderedassecure，asindependent，andasrespectableaslawcanmakethem。Nocountry，therefore，inwhichtherightofprimogenituretakesplace，whichpaystithes，andwhereperpetuities，thoughcontrarytothespiritofthelaw，areadmittedinsomecases，cangivemoreencouragementtoagriculturethanEngland。Such，however，notwithstanding，isthestateofitscultivation。Whatwouldithavebeenhadthelawgivennodirectencouragementtoagriculturebesideswhatarisesindirectlyfromtheprogressofcommerce，andhadlefttheyeomanryinthesameconditionasinmostothercountriesofEurope？ItisnowmorethantwohundredyearssincethebeginningofthereignofElizabeth，aperiodaslongasthecourseofhumanprosperityusuallyendures。
FranceseemstohavehadaconsiderableshareofforeigncommercenearacenturybeforeEnglandwasdistinguishedasacommercialcountry。ThemarineofFrancewasconsiderable，accordingtothenotionsofthetimes，beforetheexpeditionofCharlesVIIItoNaples。ThecultivationandimprovementofFrance，however，is，uponthewhole，inferiortothatofEngland。
Thelawofthecountryhasnevergiventhesamedirectencouragementtoagriculture。
TheforeigncommerceofSpainandPortugaltotheotherpartsofEurope，thoughchieflycarriedoninforeignships，isveryconsiderable。Thattotheircoloniesiscarriedonintheirown，andismuchgreater，onaccountofthegreatrichesandextentofthosecolonies。Butithasneverintroducedanyconsiderablemanufacturesfordistantsaleintoeitherofthosecountries，andthegreaterpartofbothstillremainsuncultivated。TheforeigncommerceofPortugalisofolderstandingthanthatofanygreatcountryinEurope，exceptItaly。
ItalyistheonlygreatcountryofEuropewhichseemstohavebeencultivatedandimprovedineverypartbymeansofforeigncommerceandmanufacturesfordistantsale。BeforetheinvasionofCharlesVIII，ItalyaccordingtoGuicciardin，wascultivatednotlessinthemostmountainousandbarrenpartsofthecountrythanintheplainestandmostfertile。Theadvantageoussituationofthecountry，andthegreatnumberofindependentstateswhichatthattimesubsistedinit，probablycontributednotalittletothisgeneralcultivation。Itisnotimpossibletoo，notwithstandingthisgeneralexpressionofoneofthemostjudiciousandreservedofmodernhistorians，thatItalywasnotatthattimebettercultivatedthanEnglandisatpresent。
Thecapital，however，thatisacquiredtoanycountrybycommerceandmanufacturesisallaveryprecariousanduncertainpossessiontillsomepartofithasbeensecuredandrealizedinthecultivationandimprovementofitslands。Amerchant，ithasbeensaidveryproperly，isnotnecessarilythecitizenofanyparticularcountry。Itisinagreatmeasureindifferenttohimfromwhatplacehecarriesonhistrade;andaverytriflingdisgustwillmakehimremovehiscapital，andtogetherwithitalltheindustrywhichitsupports，fromonecountrytoanother。
Nopartofitcanbesaidtobelongtoanyparticularcountry，tillithasbeenspreadasitwereoverthefaceofthatcountry，eitherinbuildingsorinthelastingimprovementoflands。NovestigenowremainsofthegreatwealthsaidtohavebeenpossessedbythegreaterpartoftheHanstownsexceptintheobscurehistoriesofthethirteenthandfourteenthcenturies。ItisevenuncertainwheresomeofthemweresituatedortowhattownsinEuropetheLatinnamesgiventosomeofthembelong。ButthoughthemisfortunesofItalyintheendofthefifteenthandbeginningofthesixteenthcenturiesgreatlydiminishedthecommerceandmanufacturesofthecitiesofLombardyandTuscany，thosecountriesstillcontinuetobeamongthemostpopulousandbestcultivatedinEurope。ThecivilwarsofFlanders，andtheSpanishgovernmentwhichsucceededthem，chasedawaythegreatcommerceofAntwerp，Ghent，andBruges。ButFlandersstillcontinuestobeoneoftherichest，bestcultivated，andmostpopulousprovincesofEurope。Theordinaryrevolutionsofwarandgovernmenteasilydryupthesourcesofthatwealthwhicharisesfromcommerceonly。Thatwhicharisesfromthemoresolidimprovementsofagricultureismuchmoredurableandcannotbedestroyedbutbythosemoreviolentconvulsionsoccasionedbythedepredationsofhostileandbarbarousnationscontinuedforacenturyortwotogether，suchasthosethathappenedforsometimebeforeandafterthefalloftheRomanempireinthewesternprovincesofEurope。
ANINQUIRYINTOTHENATUREANDCAUSESOFTHEWEALTHOFNATIONS
byAdamSmith1776
BOOKFOUR
OFSYSTEMSOFPOLITICALECONOMY
INTRODUCTION
POLITICALeconomy，consideredasabranchofthescienceofastatesmanorlegislator，proposestwodistinctobjects:first，toprovideaplentifulrevenueorsubsistenceforthepeople，ormoreproperlytoenablethemtoprovidesucharevenueorsubsistenceforthemselves;andsecondly，tosupplythestateorcommonwealthwitharevenuesufficientforthepublicservices。
Itproposestoenrichboththepeopleandthesovereign。
Thedifferentprogressofopulenceindifferentagesandnationshasgivenoccasiontotwodifferentsystemsofpoliticaleconomywithregardtoenrichingthepeople。Theonemaybecalledthesystemofcommerce，theotherthatofagriculture。I
shallendeavourtoexplainbothasfullyanddistinctlyasIcan，andshallbeginwiththesystemofcommerce。Itisthemodernsystem，andisbestunderstoodinourowncountryandinourowntimes。
CHAPTERI
OfthePrincipleoftheCommercial，orMercantileSystemTHATwealthconsistsinmoney，orandsilver，isapopularnotionwhichnaturallyarisesfromthedoublefunctionofmoney，astheinstrumentofcommerceandasthemeasureofvalue。Inconsequenceofitsbeingtheinstrumentofcommerce，whenwehavemoneywecanmorereadilyobtainwhateverelsewehaveoccasionforthanbymeansofanyothercommodity。Thegreataffair，wealwaysfind，istogetmoney。Whenthatisobtained，thereisnodifficultyinmakinganysubsequentpurchase。Inconsequenceofitsbeingthemeasureofvalue，weestimatethatofallothercommoditiesbythequantityofmoneywhichtheywillexchangefor。Wesayofarichmanthatheisworthagreatdeal，andofapoormanthatheisworthverylittlemoney。Afrugalman，oramaneagertoberich，issaidtolovemoney;andacareless，agenerous，oraprofuseman，issaidtobeindifferentaboutit。
Togrowrichistogetmoney;andwealthandmoney，inshort，are，incommonlanguage，consideredasineveryrespectsynonymous。
Arichcountry，inthesamemannerasarichman，issupposedtobeacountryaboundinginmoney;andtoheapupgoldandsaverinanycountryissupposedtobethereadiestwaytoenrichit。ForsometimeafterthediscoveryofAmerica，thefirstinquiryoftheSpaniards，whentheyarriveduponanunknowncoast，usedtobe，iftherewasanygoldorsilvertobefoundintheneighbourhood。Bytheinformationwhichtheyreceived，theyjudgedwhetheritwasworthwhiletomakeasettlementthere，orifthecountrywasworththeconquering。PlanoCarpino，amonk，sentambassadorfromtheKingofFrancetooneofthesonsofthefamousGenghisKhan，saysthattheTartarsusedfrequentlytoaskhimiftherewasplentyofsheepandoxeninthekingdomofFrance。TheirinquiryhadthesameobjectwiththatoftheSpaniards。Theywantedtoknowifthecountrywasrichenoughtobeworththeconquering。AmongtheTartars，asamongallothernationsofshepherds，whoaregenerallyignorantoftheuseofmoney，cattlearetheinstrumentsofcommerceandthemeasuresofvalue。Wealth，therefore，accordingtothem，consistedincattle，asaccordingtotheSpaniardsitconsistedingoldandsilver。Ofthetwo，theTartarnotion，perhaps，wasthenearesttothetruth。
Mr。Lockeremarksadistinctionbetweenmoneyandothermovablegoods。Allothermovablegoods，hesays，areofsoconsumableanaturethatthewealthwhichconsistsinthemcannotbemuchdependedon，andanationwhichaboundsinthemoneyearmay，withoutanyexportation，butmerelytheirownwasteandextravagance，beingreatwantofthemthenext。Money，onthecontrary，isasteadyfriend，which，thoughitmaytravelaboutfromhandtohand，yetifitcanbekeptfromgoingoutofthecountry，isnotveryliabletobewastedandconsumed。Goldandsilver，therefore，are，accordingtohim，themostsolidandsubstantialpartofthemovablewealthofanation，andtomultiplythosemetalsought，hethinks，uponthataccount，tobethegreatobjectofitspoliticaleconomy。
Othersadmitthatifanationcouldbeseparatedfromalltheworld，itwouldbeofnoconsequencehowmuch，orhowlittlemoneycirculatedinit。Theconsumablegoodswhichwerecirculatedbymeansofthismoneywouldonlybeexchangedforagreaterorasmallernumberofpieces;buttherealwealthorpovertyofthecountry，theyallow，woulddependaltogetherupontheabundanceorscarcityofthoseconsumablegoods。Butitisotherwise，theythink，withcountrieswhichhaveconnectionswithforeignnations，andwhichareobligedtocarryonforeignwars，andtomaintainfleetsandarmiesindistantcountries。This，theysay，cannotbedonebutbysendingabroadmoneytopaythemwith;andanationcannotsendmuchmoneyabroadunlessithasagooddealathome。Everysuchnation，therefore，mustendeavourintimeofpeacetoaccumulategoldandsilverthat，whenoccasionrequires，itmayhavewherewithaltocarryonforeignwars。
Inconsequenceofthesepopularnotions，allthedifferentnationsofEuropehavestudied，thoughtolittlepurpose，everypossiblemeansofaccumulatinggoldandsilverintheirrespectivecountries。SpainandPortugal，theproprietorsoftheprincipalmineswhichsupplyEuropewiththosemetals，haveeitherprohibitedtheirexportationundertheseverestpenalties，orsubjectedittoaconsiderableduty。ThelikeprohibitionseemsancientlytohavemadeapartofthepolicyofmostotherEuropeannations。Itiseventobefound，whereweshouldleastofallexpecttofindit，insomeoldScotchactsofParliament，whichforbidunderheavypenaltiesthecarryinggoldorsilverforthofthekingdom。ThelikepolicyancientlytookplacebothinFranceandEngland。
Whenthosecountriesbecamecommercial，themerchantsfoundthisprohibition，uponmanyoccasions，extremelyinconvenient。
Theycouldfrequentlybuymoreadvantageouslywithgoldandsilverthanwithanyothercommoditytheforeigngoodswhichtheywanted，eithertoimportintotheirown，ortocarrytosomeotherforeigncountry。Theyremonstrated，therefore，againstthisprohibitionashurtfultotrade。
Theyrepresented，first，thattheexportationofgoldandsilverinordertopurchaseforeigngoods，didnotalwaysdiminishthequantityofthosemetalsinthekingdom。That，onthecontrary，itmightfrequentlyincreasethatquantity;
because，iftheconsumptionofforeigngoodswasnottherebyincreasedinthecountry，thosegoodsmightbere—exportedtoforeigncountries，and，beingtheresoldforalargeprofit，mightbringbackmuchmoretreasurethanwasoriginallysentouttopurchasethem。Mr。Muncomparesthisoperationofforeigntradetotheseed—timeandharvestofagriculture。\"Ifweonlybehold，\"sayshe，\"theactionsofthehusbandmanintheseed—time，whenhecastethawaymuchgoodcornintotheground，weshallaccounthimratheramadmanthanahusbandman。Butwhenweconsiderhislaboursintheharvest，whichistheendofhisendeavours，weshallfindtheworthandplentifulincreaseofhisaction。\"
Theyrepresented，secondly，thatthisprohibitioncouldnothindertheexportationofgoldandsilver，which，onaccountofthesmallnessoftheirbulkinproportiontotheirvalue，couldeasilybesmuggledabroad。Thatthisexportationcouldonlybepreventedbyaproperattentionto，whattheycalled，thebalanceoftrade。Thatwhenthecountryexportedtoagreatervaluethanitimported，abalancebecameduetoitfromforeignnations，whichwasnecessarilypaidtoitingoldandsilver，andtherebyincreasedthequantityofthosemetalsinthekingdom。Butthatwhenitimportedtoagreatervaluethanitexported，acontrarybalancebecameduetoforeignnations，whichwasnecessarilypaidtotheminthesamemanner，andtherebydiminishedthatquantity。
Thatinthiscasetoprohibittheexportationofthosemetalscouldnotpreventit，butonly，bymakingitmoredangerous，renderitmoreexpensive。Thattheexchangewastherebyturnedmoreagainstthecountrywhichowedthebalancethanitotherwisemighthavebeen;themerchantwhopurchasedabillupontheforeigncountrybeingobligedtopaythebankerwhosoldit，notonlyforthenaturalrisk，trouble，andexpenseofsendingthemoneythither，butfortheextraordinaryriskarisingfromtheprohibition。Butthatthemoretheexchangewasagainstanycountry，themorethebalanceoftradebecamenecessarilyagainstit;themoneyofthatcountrybecomingnecessarilyofsomuchlessvalueincomparisonwiththatofthecountrytowhichthebalancewasdue。ThatiftheexchangebetweenEnglandandHolland，forexample，wasfivepercentagainstEngland，itwouldrequireahundredandfiveouncesofsilverinEnglandtopurchaseabillforahundredouncesofsilverinHolland:thatahundredandfiveouncesofsilverinEngland，therefore，wouldbeworthonlyahundredouncesofsilverinHolland，andwouldpurchaseonlyaproportionablequantityofDutchgoods;butthatahundredouncesofsilverinHolland，onthecontrary，wouldbeworthahundredandfiveouncesinEngland，andwouldpurchaseaproportionablequantityofEnglishgoods:thattheEnglishgoodswhichweresoldtoHollandwouldbesoldsomuchcheaper;andtheDutchgoodswhichweresoldtoEnglandsomuchdearerbythedifferenceoftheexchange;thattheonewoulddrawsomuchlessDutchmoneytoEngland，andtheothersomuchmoreEnglishmoneytoHolland，asthisdifferenceamountedto:andthatthebalanceoftrade，therefore，wouldnecessarilybesomuchmoreagainstEngland，andwouldrequireagreaterbalanceofgoldandsilvertobeexportedtoHolland。
Thoseargumentswerepartlysolidandpartlysophistical。
Theyweresolidsofarastheyassertedthattheexportationofgoldandsilverintrademightfrequentlybeadvantageoustothecountry。Theyweresolid，too，inassertingthatnoprohibitioncouldpreventtheirexportationwhenprivatepeoplefoundanyadvantageinexportingthem。Buttheyweresophisticalinsupposingthateithertopreserveortoaugmentthequantityofthosemetalsrequiredmoretheattentionofgovernmentthantopreserveortoaugmentthequantityofanyotherusefulcommodities，whichthefreedomoftrade，withoutanysuchattention，neverfailstosupplyintheproperquantity。Theyweresophisticaltoo，perhaps，inassertingthatthehighpriceofexchangenecessarilyincreasedwhattheycalledtheunfavourablebalanceoftrade，oroccasionedtheexportationofagreaterquantityofgoldandsilver。Thathighprice，indeed，wasextremelydisadvantageoustothemerchantswhohadanymoneytopayinforeigncountries。Theypaidsomuchdearerforthebillswhichtheirbankersgrantedthemuponthosecountries。Butthoughtheriskarisingfromtheprohibitionmightoccasionsomeextraordinaryexpensetothebankers，itwouldnotnecessarilycarryanymoremoneyoutofthecountry。Thisexpensewouldgenerallybealllaidoutinthecountry，insmugglingthemoneyoutofit，andcouldseldomoccasiontheexportationofasinglesixpencebeyondtheprecisesumdrawnfor。Thehighpriceofexchangetoowouldnaturallydisposethemerchantstoendeavourtomaketheirexportsnearlybalancetheirimports，inorderthattheymighthavethishighexchangetopayuponassmallasumaspossible。Thehighpriceofexchange，besides，mustnecessarilyhaveoperatedasatax，inraisingthepriceofforeigngoods，andtherebydiminishingtheirconsumption。Itwouldtend，therefore，nottoincreasebuttodiminishwhattheycalledtheunfavourablebalanceoftrade，andconsequentlytheexportationofgoldandsilver。
Suchastheywere，however，thoseargumentsconvincedthepeopletowhomtheywereaddressed。Theywereaddressedbymerchantstoparliamentsandtothecouncilsofprinces，tonoblesandtocountrygentlemen，bythosewhoweresupposedtounderstandtradetothosewhowereconscioustothemselvesthattheyknewnothingaboutthematter。Thatforeigntradeenrichedthecountry，experiencedemonstratedtothenoblesandcountrygentlemenaswellastothemerchants;buthow，orinwhatmanner，noneofthemwellknew。Themerchantsknewperfectlyinwhatmanneritenrichedthemselves。Itwastheirbusinesstoknowit。Buttoknowinwhatmanneritenrichedthecountrywasnopartoftheirbusiness。Thissubjectnevercameintotheirconsiderationbutwhentheyhadoccasiontoapplytotheircountryforsomechangeinthelawsrelatingtoforeigntrade。Itthenbecamenecessarytosaysomethingaboutthebeneficialeffectsofforeigntrade，andthemannerinwhichthoseeffectswereobstructedbythelawsastheythenstood。Tothejudgeswhoweretodecidethebusinessitappearedamostsatisfactoryaccountofthematter，whentheyweretoldthatforeigntradebroughtmoneyintothecountry，butthatthelawsinquestionhindereditfrombringingsomuchasitotherwisewoulddo。Thoseargumentsthereforeproducedthewished—foreffect。TheprohibitionofexportinggoldandsilverwasinFranceandEnglandconfinedtothecoinofthoserespectivecountries。Theexportationofforeigncoinandofbullionwasmadefree。InHolland，andinsomeotherplaces，thislibertywasextendedeventothecoinofthecountry。Theattentionofgovernmentwasturnedawayfromguardingagainsttheexportationofgoldandsilvertowatchoverthebalanceoftradeastheonlycausewhichcouldoccasionanyaugmentationordiminutionofthosemetals。
Fromonefruitlesscareitwasturnedawaytoanothercaremuchmoreintricate，muchmoreembarrassing，andjustequallyfruitless。ThetitleofMun’sbook，England’sTreasureinForeignTrade，becameafundamentalmaximinthepoliticaleconomy，notofEnglandonly，butofallothercommercialcountries。Theinlandorhometrade，themostimportantofall，thetradeinwhichanequalcapitalaffordsthegreatestrevenue，andcreatesthegreatestemploymenttothepeopleofthecountry，wasconsideredassubsidiaryonlytoforeigntrade。Itneitherbroughtmoneyintothecountry，itwassaid，norcarriedanyoutofit。Thecountry，therefore，couldneverbecomeeitherricherorpoorerbymeansofit，exceptsofarasitsprosperityordecaymightindirectlyinfluencethestateofforeigntrade。
Acountrythathasnominesofitsownmustundoubtedlydrawitsgoldandsilverfromforeigncountriesinthesamemannerasonethathasnovineyardsofitsownmustdrawitswines。Itdoesnotseemnecessary，however，thattheattentionofgovernmentshouldbemoreturnedtowardstheonethantowardstheotherobject。Acountrythathaswherewithaltobuywinewillalwaysgetthewinewhichithasoccasionfor;andacountrythathaswherewithaltobuygoldandsilverwillneverbeinwantofthosemetals。Theyaretobeboughtforacertainpricelikeallothercommodities，andastheyarethepriceofallothercommodities，soallothercommoditiesarethepriceofthosemetals。Wetrustwithperfectsecuritythatthefreedomoftrade，withoutanyattentionofgovernment，willalwayssupplyuswiththewinewhichwehaveoccasionfor:andwemaytrustwithequalsecuritythatitwillalwayssupplyuswithallthegoldandsilverwhichwecanaffordtopurchaseortoemploy，eitherincirculatingourcommodities，orinotheruses。
Thequantityofeverycommoditywhichhumanindustrycaneitherpurchaseorproducenaturallyregulatesitselfineverycountryaccordingtotheeffectualdemand，oraccordingtothedemandofthosewhoarewillingtopaythewholerent，labour，andprofitswhichmustbepaidinordertoprepareandbringittomarket。Butnocommoditiesregulatethemselvesmoreeasilyormoreexactlyaccordingtothiseffectualdemandthangoldandsilver;because，onaccountofthesmallbulkandgreatvalueofthosemetals，nocommoditiescanbemoreeasilytransportedfromoneplacetoanother，fromtheplaceswheretheyarecheaptothosewheretheyaredear，fromtheplaceswheretheyexceedtothosewheretheyfallshortofthiseffectualdemand。IftherewereinEngland，forexample，aneffectualdemandforanadditionalquantityofgold，apacket—boatcouldbringfromLisbon，orfromwhereverelseitwastobehad，fiftytonsofgold，whichcouldbecoinedintomorethanfivemillionsofguineas。Butiftherewereaneffectualdemandforgraintothesamevalue，toimportitwouldrequire，atfiveguineasaton，amillionoftonsofshipping，orathousandshipsofathousandtonseach。ThenavyofEnglandwouldnotbesufficient。
Whenthequantityofgoldandsilverimportedintoanycountryexceedstheeffectualdemand，novigilanceofgovernmentcanpreventtheirexportation。AllthesanguinarylawsofSpainandPortugalarenotabletokeeptheirgoldandsilverathome。