Byestablishedestablishmentofcoloniesindistantcountries，notonlyparticularprivileges，butamonopolywasfrequentlyprocuredforthegoodsandmerchantsofthecountrywhichestablishedthem。
Thetwosortsofrestraintsuponimportationabove—mentioned，togetherwiththesefourencouragementstoexportation，constitutethesixprincipalmeansbywhichthecommercialsystemproposestoincreasethequantityofgoldandsilverinanycountrybyturningthebalanceoftradeinitsfavour。Ishallconsidereachoftheminaparticularchapter，andwithouttakingmuchfurthernoticeoftheirsupposedtendencytobringmoneyintothecountry，Ishallexaminechieflywhatarelikelytobetheeffectsofeachofthemupontheannualproduceofitsindustry。Accordingastheytendeithertoincreaseordiminishthevalueofthisannualproduce，theymustevidentlytendeithertoincreaseordiminishtherealwealthandrevenueofthecountry。
CHAPTERII
OfRestraintsupontheImportationfromForeignCountriesofsuchGoodsascanbeproducedatHomeBYrestraining，eitherbyhighdutiesorbyabsoluteprohibitions，theimportationofsuchgoodsfromforeigncountriesascanbeproducedathome，themonopolyofthehomemarketismoreorlesssecuredtothedomesticindustryemployedinproducingthem。ThustheprohibitionofimportingeitherlivecattleorsaltprovisionsfromforeigncountriessecurestothegraziersofGreatBritainthemonopolyofthehomemarketforbutcher’smeat。Thehighdutiesupontheimportationofcorn，whichintimesofmoderateplentyamounttoaprohibition，givealikeadvantagetothegrowersofthatcommodity。Theprohibitionoftheimportationofforeignwoollensisequallyfavourabletothewoollenmanufacturers。Thesilkmanufacture，thoughaltogetheremployeduponforeignmaterials，haslatelyobtainedthesameadvantage。Thelinenmanufacturehasnotyetobtainedit，butismakinggreatstridestowardsit。Manyothersortsofmanufacturershave，inthesamemanner，obtainedinGreatBritain，eitheraltogetherorverynearly，amonopolyagainsttheircountrymen。ThevarietyofgoodsofwhichtheimportationintoGreatBritainisprohibited，eitherabsolutely，orundercertaincircumstances，greatlyexceedswhatcaneasilybesuspectedbythosewhoarenotwellacquaintedwiththelawsofthecustoms。
Thatthismonopolyofthehomemarketfrequentlygivesgreatencouragementtothatparticularspeciesofindustrywhichenjoysit，andfrequentlyturnstowardsthatemploymentagreatershareofboththelabourandstockofthesocietythanwouldotherwisehavegonetoit，cannotbedoubted。Butwhetherittendseithertoincreasethegeneralindustryofthesociety，ortogiveitthemostadvantageousdirection，isnot，perhaps，altogethersoevident。
Thegeneralindustryofthesocietynevercanexceedwhatthecapitalofthesocietycanemploy。Asthenumberofworkmenthatcanbekeptinemploymentbyanyparticularpersonmustbearacertainproportiontohiscapital，sothenumberofthosethatcanbecontinuallyemployedbyallthemembersofagreatsocietymustbearacertainproportiontothewholecapitalofthatsociety，andnevercanexceedthatproportion。Noregulationofcommercecanincreasethequantityofindustryinanysocietybeyondwhatitscapitalcanmaintain。Itcanonlydivertapartofitintoadirectionintowhichitmightnototherwisehavegone;anditisbynomeanscertainthatthisartificialdirectionislikelytobemoreadvantageoustothesocietythanthatintowhichitwouldhavegoneofitsownaccord。
Everyindividualiscontinuallyexertinghimselftofindoutthemostadvantageousemploymentforwhatevercapitalhecancommand。Itishisownadvantage，indeed，andnotthatofthesociety，whichhehasinview。Butthestudyofhisownadvantagenaturally，orrathernecessarily，leadshimtopreferthatemploymentwhichismostadvantageoustothesociety。
First，everyindividualendeavourstoemployhiscapitalasnearhomeashecan，andconsequentlyasmuchashecaninthesupportofdomesticindustry;providedalwaysthathecantherebyobtaintheordinary，ornotagreatdeallessthantheordinaryprofitsofstock。
Thus，uponequalornearlyequalprofits，everywholesalemerchantnaturallyprefersthehometradetotheforeigntradeofconsumption，andtheforeigntradeofconsumptiontothecarryingtrade。Inthehometradehiscapitalisneversolongoutofhissightasitfrequentlyisintheforeigntradeofconsumption。Hecanknowbetterthecharacterandsituationofthepersonswhomhetrusts，andifheshouldhappentobedeceived，heknowsbetterthelawsofthecountryfromwhichhemustseekredress。
Inthecarryingtrade，thecapitalofthemerchantis，asitwere，dividedbetweentwoforeigncountries，andnopartofitisevernecessarilybroughthome，orplacedunderhisownimmediateviewandcommand。ThecapitalwhichanAmsterdammerchantemploysincarryingcornfromKonigsbergtoLisbon，andfruitandwinefromLisbontoKonigsberg，mustgenerallybetheonehalfofitatKonigsbergandtheotherhalfatLisbon。NopartofitneedevercometoAmsterdam。ThenaturalresidenceofsuchamerchantshouldeitherbeatKonigsbergorLisbon，anditcanonlybesomeveryparticularcircumstanceswhichcanmakehimprefertheresidenceofAmsterdam。Theuneasiness，however，whichhefeelsatbeingseparatedsofarfromhiscapitalgenerallydetermineshimtobringpartbothoftheKonigsberggoodswhichhedestinesforthemarketofLisbon，andoftheLisbongoodswhichhedestinesforthatofKonigsberg，toAmsterdam:andthoughthisnecessarilysubjectshimtoadoublechargeofloadingandunloading，aswellastothepaymentofsomedutiesandcustoms，yetforthesakeofhavingsomepartofhiscapitalalwaysunderhisownviewandcommand，hewillinglysubmitstothisextraordinarycharge;anditisinthismannerthateverycountrywhichhasanyconsiderableshareofthecarryingtradebecomesalwaystheemporium，orgeneralmarket，forthegoodsofallthedifferentcountrieswhosetradeitcarrieson。Themerchant，inordertosaveasecondloadingandunloading，endeavoursalwaystosellinthehomemarketasmuchofthegoodsofallthosedifferentcountriesashecan，andthus，sofarashecan，toconverthiscarryingtradeintoaforeigntradeofconsumption。A
merchant，inthesamemanner，whoisengagedintheforeigntradeofconsumption，whenhecollectsgoodsforforeignmarkets，willalwaysbeglad，uponequalornearlyequalprofits，tosellasgreatapartofthemathomeashecan。Hesaveshimselftheriskandtroubleofexportation，when，sofarashecan，hethusconvertshisforeigntradeofconsumptionintoahometrade。Homeisinthismannerthecentre，ifImaysayso，roundwhichthecapitalsoftheinhabitantsofeverycountryarecontinuallycirculating，andtowardswhichtheyarealwaystending，thoughbyparticularcausestheymaysometimesbedrivenoffandrepelledfromittowardsmoredistantemployments。Butacapitalemployedinthehometrade，ithasalreadybeenshown，necessarilyputsintomotionagreaterquantityofdomesticindustry，andgivesrevenueandemploymenttoagreaternumberoftheinhabitantsofthecountry，thananequalcapitalemployedintheforeigntradeofconsumption:andoneemployedintheforeigntradeofconsumptionhasthesameadvantageoveranequalcapitalemployedinthecarryingtrade。Uponequal，oronlynearlyequalprofits，therefore，everyindividualnaturallyinclinestoemployhiscapitalinthemannerinwhichitislikelytoaffordthegreatestsupporttodomesticindustry，andtogiverevenueandemploymenttothegreatestnumberofpeopleofhisowncountry。
Secondly，everyindividualwhoemployshiscapitalinthesupportofdomesticindustry，necessarilyendeavourssotodirectthatindustrythatitsproducemaybeofthegreatestpossiblevalue。
Theproduceofindustryiswhatitaddstothesubjectormaterialsuponwhichitisemployed。Inproportionasthevalueofthisproduceisgreatorsmall，sowilllikewisebetheprofitsoftheemployer。Butitisonlyforthesakeofprofitthatanymanemploysacapitalinthesupportofindustry;andhewillalways，therefore，endeavourtoemployitinthesupportofthatindustryofwhichtheproduceislikelytobeofthegreatestvalue，ortoexchangeforthegreatestquantityeitherofmoneyorofothergoods。
Buttheannualrevenueofeverysocietyisalwayspreciselyequaltotheexchangeablevalueofthewholeannualproduceofitsindustry，orratherispreciselythesamethingwiththatexchangeablevalue。Aseveryindividual，therefore，endeavoursasmuchashecanbothtoemployhiscapitalinthesupportofdomesticindustry，andsotodirectthatindustrythatitsproducemaybeofthegreatestvalue;everyindividualnecessarilylabourstorendertheannualrevenueofthesocietyasgreatashecan。Hegenerally，indeed，neitherintendstopromotethepublicinterest，norknowshowmuchheispromotingit。Bypreferringthesupportofdomestictothatofforeignindustry，heintendsonlyhisownsecurity;andbydirectingthatindustryinsuchamannerasitsproducemaybeofthegreatestvalue，heintendsonlyhisowngain，andheisinthis，asinmanyothercases，ledbyaninvisiblehandtopromoteanendwhichwasnopartofhisintention。Norisitalwaystheworseforthesocietythatitwasnopartofit。Bypursuinghisowninteresthefrequentlypromotesthatofthesocietymoreeffectuallythanwhenhereallyintendstopromoteit。Ihaveneverknownmuchgooddonebythosewhoaffectedtotradeforthepublicgood。Itisanaffectation，indeed，notverycommonamongmerchants，andveryfewwordsneedbeemployedindissuadingthemfromit。
Whatisthespeciesofdomesticindustrywhichhiscapitalcanemploy，andofwhichtheproduceislikelytobeofthegreatestvalue，everyindividual，itisevident，can，inhislocalsituation，judgemuchbetterthananystatesmanorlawgivercandoforhim。Thestatesmanwhoshouldattempttodirectprivatepeopleinwhatmannertheyoughttoemploytheircapitalswouldnotonlyloadhimselfwithamostunnecessaryattention，butassumeanauthoritywhichcouldsafelybetrusted，notonlytonosingleperson，buttonocouncilorsenatewhatever，andwhichwouldnowherebesodangerousasinthehandsofamanwhohadfollyandpresumptionenoughtofancyhimselffittoexerciseit。
Togivethemonopolyofthehomemarkettotheproduceofdomesticindustry，inanyparticularartormanufacture，isinsomemeasuretodirectprivatepeopleinwhatmannertheyoughttoemploytheircapitals，andmust，inalmostallcases，beeitherauselessorahurtfulregulation。Iftheproduceofdomesticcanbebroughtthereascheapasthatofforeignindustry，theregulationisevidentlyuseless。Ifitcannot，itmustgenerallybehurtful。Itisthemaximofeveryprudentmasterofafamilynevertoattempttomakeathomewhatitwillcosthimmoretomakethantobuy。Thetailordoesnotattempttomakehisownshoes，butbuysthemoftheshoemaker。Theshoemakerdoesnotattempttomakehisownclothes，butemploysatailor。
Thefarmerattemptstomakeneithertheonenortheother，butemploysthosedifferentartificers。Allofthemfinditfortheirinteresttoemploytheirwholeindustryinawayinwhichtheyhavesomeadvantageovertheirneighbours，andtopurchasewithapartofitsproduce，orwhatisthesamething，withthepriceofapartofit，whateverelsetheyhaveoccasionfor。
Whatisprudenceintheconductofeveryprivatefamilycanscarcebefollyinthatofagreatkingdom。Ifaforeigncountrycansupplyuswithacommoditycheaperthanweourselvescanmakeit，betterbuyitofthemwithsomepartoftheproduceofourownindustryemployedinawayinwhichwehavesomeadvantage。
Thegeneralindustryofthecountry，beingalwaysinproportiontothecapitalwhichemploysit，willnottherebybediminished，nomorethanthatoftheabove—mentionedartificers;butonlylefttofindoutthewayinwhichitcanbeemployedwiththegreatestadvantage。Itiscertainlynotemployedtothegreatestadvantagewhenitisthusdirectedtowardsanobjectwhichitcanbuycheaperthanitcanmake。Thevalueofitsannualproduceiscertainlymoreorlessdiminishedwhenitisthusturnedawayfromproducingcommoditiesevidentlyofmorevaluethanthecommoditywhichitisdirectedtoproduce。Accordingtothesupposition，thatcommoditycouldbepurchasedfromforeigncountriescheaperthanitcanbemadeathome。Itcould，therefore，havebeenpurchasedwithapartonlyofthecommodities，or，whatisthesamething，withapartonlyofthepriceofthecommodities，whichtheindustryemployedbyanequalcapitalwouldhaveproducedathome，haditbeenlefttofollowitsnaturalcourse。Theindustryofthecountry，therefore，isthusturnedawayfromamoretoalessadvantageousemployment，andtheexchangeablevalueofitsannualproduce，insteadofbeingincreased，accordingtotheintentionofthelawgiver，mustnecessarilybediminishedbyeverysuchregulation。
Bymeansofsuchregulations，indeed，aparticularmanufacturemaysometimesbeacquiredsoonerthanitcouldhavebeenotherwise，andafteracertaintimemaybemadeathomeascheaporcheaperthanintheforeigncountry。Butthoughtheindustryofthesocietymaybethuscarriedwithadvantageintoaparticularchannelsoonerthanitcouldhavebeenotherwise，itwillbynomeansfollowthatthesumtotal，eitherofitsindustry，orofitsrevenue，caneverbeaugmentedbyanysuchregulation。Theindustryofthesocietycanaugmentonlyinproportionasitscapitalaugments，anditscapitalcanaugmentonlyinproportiontowhatcanbegraduallysavedoutofitsrevenue。Buttheimmediateeffectofeverysuchregulationistodiminishitsrevenue，andwhatdiminishesitsrevenueiscertainlynotverylikelytoaugmentitscapitalfasterthanitwouldhaveaugmentedofitsownaccordhadbothcapitalandindustrybeenlefttofindouttheirnaturalemployments。
Thoughforwantofsuchregulationsthesocietyshouldneveracquiretheproposedmanufacture，itwouldnot，uponthataccount，necessarilybethepoorerinanyoneperiodofitsduration。Ineveryperiodofitsdurationitswholecapitalandindustrymightstillhavebeenemployed，thoughupondifferentobjects，inthemannerthatwasmostadvantageousatthetime。Ineveryperioditsrevenuemighthavebeenthegreatestwhichitscapitalcouldafford，andbothcapitalandrevenuemighthavebeenaugmentedwiththegreatestpossiblerapidity。
Thenaturaladvantageswhichonecountryhasoveranotherinproducingparticularcommoditiesaresometimessogreatthatitisacknowledgedbyalltheworldtobeinvaintostrugglewiththem。Bymeansofglasses，hotbeds，andhotwalls，verygoodgrapescanberaisedinScotland，andverygoodwinetoocanbemadeofthemataboutthirtytimestheexpenseforwhichatleastequallygoodcanbebroughtfromforeigncountries。WoulditbeareasonablelawtoprohibittheimportationofallforeignwinesmerelytoencouragethemakingofclaretandburgundyinScotland？Butiftherewouldbeamanifestabsurdityinturningtowardsanyemploymentthirtytimesmoreofthecapitalandindustryofthecountrythanwouldbenecessarytopurchasefromforeigncountriesanequalquantityofthecommoditieswanted，theremustbeanabsurdity，thoughnotaltogethersoglaring，yetexactlyofthesamekind，inturningtowardsanysuchemploymentathirtieth，orevenathree—hundredthpartmoreofeither。
Whethertheadvantageswhichonecountryhasoveranotherbenaturaloracquiredisinthisrespectofnoconsequence。Aslongastheonecountryhasthoseadvantages，andtheotherwantsthem，itwillalwaysbemoreadvantageousforthelatterrathertobuyoftheformerthantomake。Itisanacquiredadvantageonly，whichoneartificerhasoverhisneighbour，whoexercisesanothertrade;andyettheybothfinditmoreadvantageoustobuyofoneanotherthantomakewhatdoesnotbelongtotheirparticulartrades。
Merchantsandmanufacturersarethepeoplewhoderivethegreatestadvantagefromthismonopolyofthehomemarket。Theprohibitionoftheimportationofforeigncattle，andofsaltprovisions，togetherwiththehighdutiesuponforeigncorn，whichintimesofmoderateplentyamounttoaprohibition，arenotnearsoadvantageoustothegraziersandfarmersofGreatBritainasotherregulationsofthesamekindaretoitsmerchantsandmanufacturers。Manufactures，thoseofthefinerkindespecially，aremoreeasilytransportedfromonecountrytoanotherthancornorcattle。Itisinthefetchingandcarryingmanufactures，accordingly，thatforeigntradeischieflyemployed。Inmanufactures，averysmalladvantagewillenableforeignerstoundersellourownworkmen，eveninthehomemarket。
Itwillrequireaverygreatonetoenablethemtodosointherudeproduceofthesoil。Ifthefreeimportationofforeignmanufactureswerepermitted，severalofthehomemanufactureswouldprobablysuffer，andsomeofthem，perhaps，gotoruinaltogether，andaconsiderablepartofthestockandindustryatpresentemployedinthemwouldbeforcedtofindoutsomeotheremployment。Butthefreestimportationoftherudeproduceofthesoilcouldhavenosucheffectupontheagricultureofthecountry。
Iftheimportationofforeigncattle，forexample，weremadeeversofree，sofewcouldbeimportedthatthegrazingtradeofGreatBritaincouldbelittleaffectedbyit。Livecattleare，perhaps，theonlycommodityofwhichthetransportationismoreexpensivebyseathanbyland。Bylandtheycarrythemselvestomarket。Bysea，notonlythecattle，buttheirfoodandtheirwatertoo，mustbecarriedatnosmallexpenseandinconveniency。
TheshortseabetweenIrelandandGreatBritain，indeed，renderstheimportationofIrishcattlemoreeasy。Butthoughthefreeimportationofthem，whichwaslatelypermittedonlyforalimitedtime，wererenderedperpetual，itcouldhavenoconsiderableeffectupontheinterestofthegraziersofGreatBritain。ThosepartsofGreatBritainwhichborderupontheIrishSeaareallgrazingcountries。Irishcattlecouldneverbeimportedfortheiruse，butmustbedriventhroughthoseveryextensivecountries，atnosmallexpenseandinconveniency，beforetheycouldarriveattheirpropermarket。Fatcattlecouldnotbedrivensofar。Leancattle，therefore，onlycouldbeimported，andsuchimportationcouldinterfere，notwiththeinterestofthefeedingorfatteningcountries，towhich，byreducingthepriceofleancattle，itwouldratherbeadvantageous，butwiththatofthebreedingcountriesonly。ThesmallnumberofIrishcattleimportedsincetheirimportationwaspermitted，togetherwiththegoodpriceatwhichleancattlestillcontinuetosell，seemtodemonstratethateventhebreedingcountriesofGreatBritainareneverlikelytobemuchaffectedbythefreeimportationofIrishcattle。ThecommonpeopleofIreland，indeed，aresaidtohavesometimesopposedwithviolencetheexportationoftheircattle。Butiftheexportershadfoundanygreatadvantageincontinuingthetrade，theycouldeasily，whenthelawwasontheirside，haveconqueredthismobbishopposition。
Feedingandfatteningcountries，besides，mustalwaysbehighlyimproved，whereasbreedingcountriesaregenerallyuncultivated。Thehighpriceofleancattle，byaugmentingthevalueofuncultivatedland，islikeabountyagainstimprovement。
Toanycountrywhichwashighlyimprovedthroughout，itwouldbemoreadvantageoustoimportitsleancattlethantobreedthem。
TheprovinceofHolland，accordingly，issaidtofollowthismaximatpresent。ThemountainsofScotland，Wales，andNorthumberland，indeed，arecountriesnotcapableofmuchimprovement，andseemdestinedbynaturetobethebreedingcountriesofGreatBritain。Thefreestimportationofforeigncattlecouldhavenoothereffectthantohinderthosebreedingcountriesfromtakingadvantageoftheincreasingpopulationandimprovementoftherestofthekingdom，fromraisingtheirpricetoanexorbitantheight，andfromlayingarealtaxuponallthemoreimprovedandcultivatedpartsofthecountry。
Thefreestimportationofsaltprovisions，inthesamemanner，couldhaveaslittleeffectupontheinterestofthegraziersofGreatBritainasthatoflivecattle。Saltprovisionsarenotonlyaverybulkycommodity，butwhencomparedwithfreshmeat，theyareacommoditybothofworsequality，andastheycostmorelabourandexpense，ofhigherprice。Theycouldnever，therefore，comeintocompetitionwiththefreshmeat，thoughtheymightwiththesaltprovisionsofthecountry。Theymightbeusedforvictuallingshipsfordistantvoyagesandsuchlikeuses，butcouldnevermakeanyconsiderablepartofthefoodofthepeople。
ThesmallquantityofsaltprovisionsimportedfromIrelandsincetheirimportationwasrenderedfreeisanexperimentalproofthatourgraziershavenothingtoapprehendfromit。Itdoesnotappearthatthepriceofbutcher’smeathaseverbeensensiblyaffectedbyit。
EventhefreeimportationofforeigncorncouldverylittleaffecttheinterestofthefarmersofGreatBritain。Cornisamuchmorebulkycommoditythanbutcher’smeat。Apoundofwheatatapennyisasdearasapoundofbutcher’smeatatfourpence。
Thesmallquantityofforeigncornimportedevenintimesofthegreatestscarcitymaysatisfyourfarmersthattheycanhavenothingtofearfromthefreestimportation。Theaveragequantityimported，oneyearwithanother，amountsonly，accordingtotheverywellinformedauthorofthetractsuponthecorntrade，totwenty—threethousandsevenhundredandtwenty—eightquartersofallsortsofgrain，anddoesnotexceedthefivehundredandseventy—firstpartoftheannualconsumption。Butasthebountyuponcornoccasionsagreaterexportationinyearsofplenty，soitmustofconsequenceoccasionagreaterimportationinyearsofscarcitythanintheactualstateoftillagewouldotherwisetakeplace。Bymeansofittheplentyofoneyeardoesnotcompensatethescarcityofanother，andastheaveragequantityexportedisnecessarilyaugmentedbyit，somustlikewise，intheactualstateoftillage，theaveragequantityimported。Iftherewerenobounty，aslesscornwouldbeexported，soitisprobablethat，oneyearwithanother，lesswouldbeimportedthanatpresent。
Thecorn—merchants，thefetchersandcarriersofcornbetweenGreatBritainandforeigncountrieswouldhavemuchlessemployment，andmightsufferconsiderably;butthecountrygentlemenandfarmerscouldsufferverylittle。Itisinthecornmerchantsaccordingly，ratherthaninthecountrygentlemenandfarmers，thatIhaveobservedthegreatestanxietyfortherenewalandcontinuationofthebounty。
Countrygentlemenandfarmersare，totheirgreathonour，ofallpeople，theleastsubjecttothewretchedspiritofmonopoly。
Theundertakerofagreatmanufactoryissometimesalarmedifanotherworkofthesamekindisestablishedwithintwentymilesofhim。TheDutchundertakerofthewoollenmanufactureatAbbevillestipulatedthatnoworkofthesamekindshouldbeestablishedwithinthirtyleaguesofthatcity。Farmersandcountrygentlemen，onthecontrary，aregenerallydisposedrathertopromotethantoobstructthecultivationandimprovementoftheirneighbours’farmsandestates。Theyhavenosecretssuchasthoseofthegreaterpartofmanufacturers，butaregenerallyratherfondofcommunicatingtotheirneighboursandofextendingasfaraspossibleanynewpracticewhichtheyhavefoundtobeadvantageous。PiusQuestus，saysoldCato，stabilissimusque，minimequeinvidiosus;minimequemalecogitantessunt，quiineostudiooccupatisunt。Countrygentlemenandfarmers，dispersedindifferentpartsofthecountry，cannotsoeasilycombineasmerchantsandmanufacturers，who，beingcollectedintotowns，andaccustomedtothatexclusivecorporationspiritwhichprevailsinthem，naturallyendeavourtoobtainagainstalltheircountrymenthesameexclusiveprivilegewhichtheygenerallypossessagainsttheinhabitantsoftheirrespectivetowns。Theyaccordinglyseemtohavebeentheoriginalinventorsofthoserestraintsupontheimportationofforeigngoodswhichsecuretothemthemonopolyofthehomemarket。Itwasprobablyinimitationofthem，andtoputthemselvesuponalevelwiththosewho，theyfound，weredisposedtooppressthem，thatthecountrygentlemenandfarmersofGreatBritaininsofarforgotthegenerositywhichisnaturaltotheirstationastodemandtheexclusiveprivilegeofsupplyingtheircountrymenwithcornandbutcher’smeat。Theydidnotperhapstaketimetoconsiderhowmuchlesstheirinterestcouldbeaffectedbythefreedomoftradethanthatofthepeoplewhoseexampletheyfollowed。
Toprohibitbyaperpetuallawtheimportationofforeigncornandcattleisinrealitytoenactthatthepopulationandindustryofthecountryshallatnotimeexceedwhattherudeproduceofitsownsoilcanmaintain。
Thereseem，however，tobetwocasesinwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustry。
Thefirstis，whensomeparticularsortofindustryisnecessaryforthedefenceofthecountry。ThedefenceofGreatBritain，forexample，dependsverymuchuponthenumberofitssailorsandshipping。TheActofNavigation，therefore，veryproperlyendeavourstogivethesailorsandshippingofGreatBritainthemonopolyofthetradeoftheirowncountryinsomecasesbyabsoluteprohibitionsandinothersbyheavyburdensupontheshippingofforeigncountries。ThefollowingaretheprincipaldispositionsofthisAct。
First，allships，ofwhichtheownersandthree—fourthsofthemarinersarenotBritishsubjects，areprohibited，uponpainofforfeitingshipandcargo，fromtradingtotheBritishsettlementsandplantations，orfrombeingemployedinthecoastingtradeofGreatBritain。
Secondly，agreatvarietyofthemostbulkyarticlesofimportationcanbebroughtintoGreatBritainonly，eitherinsuchshipsasareabovedescribed，orinshipsofthecountrywherethosegoodsarepurchased，andofwhichtheowners，masters，andthree—fourthsofthemarinersareofthatparticularcountry;andwhenimportedeveninshipsofthislatterkind，theyaresubjecttodoublealiens’duty。Ifimportedinshipsofanyothercountry，thepenaltyisforfeitureofshipandgoods。
Whenthisactwasmade，theDutchwere，whattheystillare，thegreatcarriersofEurope，andbythisregulationtheywereentirelyexcludedfrombeingthecarrierstoGreatBritain，orfromimportingtousthegoodsofanyotherEuropeancountry。
Thirdly，agreatvarietyofthemostbulkyarticlesofimportationareprohibitedfrombeingimported，eveninBritishships，fromanycountrybutthatinwhichtheyareproduced，underpainsofforfeitingshipandcargo。Thisregulation，too，wasprobablyintendedagainsttheDutch。Hollandwasthen，asnow，thegreatemporiumforallEuropeangoods，andbythisregulationBritishshipswerehinderedfromloadinginHollandthegoodsofanyotherEuropeancountry。
Fourthly，saltfishofallkinds，whale—fins，whale—bone，oil，andblubber，notcaughtbyandcuredonboardBritishvessels，whenimportedintoGreatBritain，aresubjectedtodoublealiens’duty。TheDutch，astheyaretheytheprincipal，werethentheonlyfishersinEuropethatattemptedtosupplyforeignnationswithfish。Bythisregulation，averyheavyburdenwaslaidupontheirsupplyingGreatBritain。
WhentheActofNavigationwasmade，thoughEnglandandHollandwerenotactuallyatwar，themostviolentanimositysubsistedbetweenthetwonations。IthadbegunduringthegovernmentoftheLongParliament，whichfirstframedthisact，anditbrokeoutsoonafterintheDutchwarsduringthatoftheProtectorandofCharlestheSecond。Itisnotimpossible，therefore，thatsomeoftheregulationsofthisfamousactmayhaveproceededfromnationalanimosity。Theyareaswise，however，asiftheyhadallbeendictatedbythemostdeliberatewisdom。Nationalanimosityatthatparticulartimeaimedattheverysameobjectwhichthemostdeliberatewisdomwouldhaverecommended，thediminutionofthenavalpowerofHolland，theonlynavalpowerwhichcouldendangerthesecurityofEngland。
TheActofNavigationisnotfavourabletoforeigncommerce，ortothegrowthofthatopulencewhichcanarisefromit。Theinterestofanationinitscommercialrelationstoforeignnationsis，likethatofamerchantwithregardtothedifferentpeoplewithwhomhedeals，tobuyascheapandtosellasdearaspossible。Butitwillbemostlikelytobuycheap，whenbythemostperfectfreedomoftradeitencouragesallnationstobringtoitthegoodswhichithasoccasiontopurchase;and，forthesamereason，itwillbemostlikelytoselldear，whenitsmarketsarethusfilledwiththegreatestnumberofbuyers。TheActofNavigation，itistrue，laysnoburdenuponforeignshipsthatcometoexporttheproduceofBritishindustry。Eventheancientaliens’duty，whichusedtobepaiduponallgoodsexportedaswellasimported，has，byseveralsubsequentacts，beentakenofffromthegreaterpartofthearticlesofexportation。Butifforeigners，eitherbyprohibitionsorhighduties，arehinderedfromcomingtosell，theycannotalwaysaffordtocometobuy;becausecomingwithoutacargo，theymustlosethefreightfromtheirowncountrytoGreatBritain。Bydiminishingthenumberofsellers，therefore，wenecessarilydiminishthatofbuyers，andarethuslikelynotonlytobuyforeigngoodsdearer，buttosellourowncheaper，thaniftherewasamoreperfectfreedomoftrade。Asdefence，howeveritisofmuchmoreimportancethanopulence，theActofNavigationis，perhaps，thewisestofallthecommercialregulationsofEngland。
Thesecondcase，inwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustryis，whensometaxisimposedathomeupontheproduceofthelatter。Inthiscase，itseemsreasonablethatanequaltaxshouldbeimposeduponthelikeproduceoftheformer。Thiswouldnotgivethemonopolyofthehomemarkettodomesticindustry，norturntowardsaparticularemploymentagreatershareofthestockandlabourofthecountrythanwhatwouldnaturallygotoit。Itwouldonlyhinderanypartofwhatwouldnaturallygotoitfrombeingturnedawaybythetaxintoalessnaturaldirection，andwouldleavethecompetitionbetweenforeignanddomesticindustry，afterthetax，asnearlyaspossibleuponthesamefootingasbeforeit。InGreatBritain，whenanysuchtaxislaidupontheproduceofdomesticindustry，itisusualatthesametime，inordertostoptheclamorouscomplaintsofourmerchantsandmanufacturersthattheywillbeundersoldathome，tolayamuchheavierdutyupontheimportationofallforeigngoodsofthesamekind。
Thissecondlimitationofthefreedomoftradeaccordingtosomepeopleshould，uponsomeoccasions，beextendedmuchfartherthantothepreciseforeigncommoditieswhichcouldcomeintocompetitionwiththosewhichhadbeentaxedathome。Whenthenecessariesoflifehavebeentaxedanycountry，itbecomesproper，theypretend，totaxnotonlythelikenecessariesoflifeimportedfromothercountries，butallsortsofforeigngoodswhichcancomeintocompetitionwithanythingthatistheproduceofdomesticindustry。Subsistence，theysay，becomesnecessarilydearerinconsequenceofsuchtaxes;andthepriceoflabourmustalwaysrisewiththepriceofthelabourers’
subsistence。Everycommodity，therefore，whichistheproduceofdomesticindustry，thoughnotimmediatelytaxeditself，becomesdearerinconsequenceofsuchtaxes，becausethelabourwhichproducesitbecomesso。Suchtaxes，therefore，arereallyequivalent，theysay，toataxuponeveryparticularcommodityproducedathome。Inordertoputdomesticuponthesamefootingwithforeignindustry，therefore，itbecomesnecessary，theythink，tolaysomedutyuponeveryforeigncommodityequaltothisenhancementofthepriceofthehomecommoditieswithwhichitcancomeintocompetition。
Whethertaxesuponthenecessariesoflife，suchasthoseinGreatBritainuponsoap，salt，leather，candles，etc。，necessarilyraisethepriceoflabour，andconsequentlythatofallothercommodities，IshallconsiderhereafterwhenIcometotreatoftaxes。Supposing，however，inthemeantime，thattheyhavethiseffect，andtheyhaveitundoubtedly，thisgeneralenhancementofthepriceofallcommodities，inconsequenceofthatoflabour，isacasewhichdiffersinthetwofollowingrespectsfromthatofaparticularcommodityofwhichthepricewasenhancedbyaparticulartaximmediatelyimposeduponit。
First，itmightalwaysbeknownwithgreatexactnesshowfarthepriceofsuchacommoditycouldbeenhancedbysuchatax:
buthowfarthegeneralenhancementofthepriceoflabourmightaffectthatofeverydifferentcommodityaboutwhichlabourwasemployedcouldneverbeknownwithanytolerableexactness。Itwouldbeimpossible，therefore，toproportionwithanytolerableexactnessthetaxuponeveryforeigntothisenhancementofthepriceofeveryhomecommodity。
Secondly，taxesuponthenecessariesoflifehavenearlythesameeffectuponthecircumstancesofthepeopleasapoorsoilandabadclimate。Provisionsaretherebyrendereddearerinthesamemannerasifitrequiredextraordinarylabourandexpensetoraisethem。Asinthenaturalscarcityarisingfromsoilandclimateitwouldbeabsurdtodirectthepeopleinwhatmannertheyoughttoemploytheircapitalsandindustry，soisitlikewiseintheartificialscarcityarisingfromsuchtaxes。Tobelefttoaccommodate，aswellastheycould，theirindustrytotheirsituation，andtofindoutthoseemploymentsinwhich，notwithstandingtheirunfavourablecircumstances，theymighthavesomeadvantageeitherinthehomeorintheforeignmarket，iswhatinbothcaseswouldevidentlybemostfortheiradvantage。
Tolayanewtaxuponthem，becausetheyarealreadyoverburdenedwithtaxes，andbecausetheyalreadypaytoodearforthenecessariesoflife，tomakethemlikewisepaytoodearforthegreaterpartofothercommodities，iscertainlyamostabsurdwayofmakingamends。
Suchtaxes，whentheyhavegrownuptoacertainheight，areacurseequaltothebarrennessoftheearthandtheinclemencyoftheheavens;andyetitisintherichestandmostindustriouscountriesthattheyhavebeenmostgenerallyimposed。Noothercountriescouldsupportsogreatadisorder。Asthestrongestbodiesonlycanliveandenjoyhealthunderanunwholesomeregimen，sothenationsonlythatineverysortofindustryhavethegreatestnaturalandacquiredadvantagescansubsistandprosperundersuchtaxes。HollandisthecountryinEuropeinwhichtheyaboundmost，andwhichfrompeculiarcircumstancescontinuestoprosper，notbymeansofthem，ashasbeenmostabsurdlysupposed，butinspiteofthem。
Astherearetwocasesinwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustry，sotherearetwoothersinwhichitmaysometimesbeamatterofdeliberation;intheone，howfaritispropertocontinuethefreeimportationofcertainforeigngoods;andintheother，howfar，orinwhatmanner，itmaybepropertorestorethatfreeimportationafterithasbeenforsometimeinterrupted。