Ineffectuatingsomeofthemostimportantoftheseestablishments,thedifferentgovernmentsofEuropehadaslittlemeritasinprojectingthem。TheconquestofMexicowastheproject,notofthecouncilofSpain,butofagovernorofCuba;
anditwaseffectuatedbythespiritoftheboldadventurertowhomitwasentrusted,inspiteofeverythingwhichthatgovernor,whosoonrepentedofhavingtrustedsuchaperson,coulddotothwartit。TheconquerorsofChiliandPeru,andofalmostalltheotherSpanishsettlementsuponthecontinentofAmerica,carriedoutwiththemnootherpublicencouragement,butageneralpermissiontomakesettlementsandconquestsinthenameofthekingofSpain。Thoseadventureswereallattheprivateriskandexpenseoftheadventurers。ThegovernmentofSpaincontributedscarceanythingtoanyofthem。ThatofEnglandcontributedaslittletowardseffectuatingtheestablishmentofsomeofitsmostimportantcoloniesinNorthAmerica。
Whenthoseestablishmentswereeffectuated,andhadbecomesoconsiderableastoattracttheattentionofthemothercountry,thefirstregulationswhichshemadewithregardtothemhadalwaysinviewtosecuretoherselfthemonopolyoftheircommerce;toconfinetheirmarket,andtoenlargeherownattheirexpense,and,consequently,rathertodampanddiscouragethantoquickenandforwardthecourseoftheirprosperity。InthedifferentwaysinwhichthismonopolyhasbeenexercisedconsistsoneofthemostessentialdifferencesinthepolicyofthedifferentEuropeannationswithregardtotheircolonies。Thebestofthemall,thatofEngland,isonlysomewhatlessilliberalandoppressivethanthatofanyoftherest。
Inwhatway,therefore,hasthepolicyofEuropecontributedeithertothefirstestablishment,ortothepresentgrandeurofthecoloniesofAmerica?Inoneway,andinonewayonly,ithascontributedagooddeal。MagnavirumMater!Itbredandformedthemenwhowerecapableofachievingsuchgreatactions,andoflayingthefoundationofsogreatanempire;andthereisnootherquarteroftheworldofwhichthepolicyiscapableofforming,orhaseveractuallyandinfactformedsuchmen。ThecoloniesowetothepolicyofEuropetheeducationandgreatviewsoftheiractiveandenterprisingfounders;andsomeofthegreatestandmostimportantofthem,sofarasconcernstheirinternalgovernment,owetoitscarceanythingelse。
PART3
OftheAdvantageswhichEuropehasderivedfromtheDiscoveryofAmerica,andfromthatofaPassagetotheEastIndiesbytheCapeofGoodHopeSUCHaretheadvantageswhichthecoloniesofAmericahavederivedfromthepolicyofEurope。
WhatarethosewhichEuropehasderivedfromthediscoveryandcolonizationofAmerica?
Thoseadvantagesmaybedivided,first,intothegeneraladvantageswhichEurope,consideredasonegreatcountry,hasderivedfromthosegreatevents;and,secondly,intotheparticularadvantageswhicheachcolonizingcountryhasderivedfromthecolonieswhichparticularlybelongtoit,inconsequenceoftheauthorityordominionwhichitexercisesoverthem。
ThegeneraladvantageswhichEurope,consideredasonegreatcountry,hasderivedfromthediscoveryandcolonisationofAmerica,consist,first,intheincreaseofitsenjoyments;and,secondly,intheaugmentationofitsindustry。
ThesurplusproduceofAmerica,importedintoEurope,furnishestheinhabitantsofthisgreatcontinentwithavarietyofcommoditieswhichtheycouldnototherwisehavepossessed;
someforconveniencyanduse,someforpleasure,andsomeforornament,andtherebycontributestoincreasetheirenjoyments。
ThediscoveryandcolonizationofAmerica,itwillreadilybeallowed,havecontributedtoaugmenttheindustry,first,ofallthecountrieswhichtradetoitdirectly,suchasSpain,Portugal,France,andEngland;and,secondly,ofallthosewhich,withouttradingtoitdirectly,send,throughthemediumofothercountries,goodstoitoftheirownproduce;suchasAustrianFlanders,andsomeprovincesofGermany,which,throughthemediumofthecountriesbeforementioned,sendtoitaconsiderablequantityoflinenandothergoods。Allsuchcountrieshaveevidentlygainedamoreextensivemarketfortheirsurplusproduce,andmustconsequentlyhavebeenencouragedtoincreaseitsquantity。
Butthatthosegreateventsshouldlikewisehavecontributedtoencouragetheindustryofcountries,suchasHungaryandPoland,whichmaynever,perhaps,havesentasinglecommodityoftheirownproducetoAmerica,isnot,perhaps,altogethersoevident。Thatthoseeventshavedoneso,however,cannotbedoubted。SomepartoftheproduceofAmericaisconsumedinHungaryandPoland,andthereissomedemandthereforthesugar,chocolate,andtobaccoofthatnewquarteroftheworld。ButthosecommoditiesmustbepurchasedwithsomethingwhichiseithertheproduceoftheindustryofHungaryandPoland,orwithsomethingwhichhadbeenpurchasedwithsomepartofthatproduce。ThosecommoditiesofAmericaarenewvalues,newequivalents,introducedintoHungaryandPolandtobeexchangedthereforthesurplusproduceofthosecountries。Bybeingcarriedthithertheycreateanewandmoreextensivemarketforthatsurplusproduce。Theyraiseitsvalue,andtherebycontributetoencourageitsincrease。ThoughnopartofitmayeverbecarriedtoAmerica,itmaybecarriedtoothercountrieswhichpurchaseitwithapartoftheirshareofthesurplusproduceofAmerica;anditmayfindamarketbymeansofthecirculationofthattradewhichwasoriginallyputintomotionbythesurplusproduceofAmerica。
Thosegreateventsmayevenhavecontributedtoincreasetheenjoyments,andtoaugmenttheindustryofcountrieswhichnotonlyneversentanycommoditiestoAmerica,butneverreceivedanyfromit。EvensuchcountriesmayhavereceivedagreaterabundanceofothercommoditiesfromcountriesofwhichthesurplusproducehadbeenaugmentedbymeansoftheAmericantrade。Thisgreaterabundance,asitmustnecessarilyhaveincreasedtheirenjoyments,soitmustlikewisehaveaugmentedtheirindustry。Agreaternumberofnewequivalentsofsomekindorothermusthavebeenpresentedtothemtobeexchangedforthesurplusproduceofthatindustry。Amoreextensivemarketmusthavebeencreatedforthatsurplusproducesoastoraiseitsvalue,andtherebyencourageitsincrease。ThemassofcommoditiesannuallythrownintothegreatcircleofEuropeancommerce,andbyitsvariousrevolutionsannuallydistributedamongallthedifferentnationscomprehendedwithinit,musthavebeenaugmentedbythewholesurplusproduceofAmerica。Agreatershareofthisgreatermass,therefore,islikelytohavefallentoeachofthosenations,tohaveincreasedtheirenjoyments,andaugmentedtheirindustry。
Theexclusivetradeofthemothercountriestendstodiminish,or,atleast,tokeepdownbelowwhattheywouldotherwiseriseto,boththeenjoymentsandindustryofallthosenationsingeneral,andoftheAmericancoloniesinparticular。
Itisadeadweightupontheactionofoneofthegreatspringswhichputsintomotionagreatpartofthebusinessofmankind。
Byrenderingthecolonyproducedearerinallothercountries,itlessensitsconsumption,andtherebycrampstheindustryofthecolonies,andboththeenjoymentsandtheindustryofallothercountries,whichbothenjoylesswhentheypaymoreforwhattheyenjoy,andproducelesswhentheygetlessforwhattheyproduce。
Byrenderingtheproduceofallothercountriesdearerinthecolonies,itcramps,inthesamemannertheindustryofallothercountries,andboththeenjoymentsandtheindustryofthecolonies。Itisaclogwhich,forthesupposedbenefitofsomeparticularcountries,embarrassesthepleasuresandencumberstheindustryofallothercountries;butofthecoloniesmorethanofanyother。Itnotonlyexcludes,asmuchaspossible,allothercountriesfromoneparticularmarket;butitconfines,asmuchasPossible,thecoloniestooneparticularmarket;andthedifferenceisverygreatbetweenbeingexcludedfromoneparticularmarket,whenallothersareopen,andbeingconfinedtooneparticularmarket,whenallothersareshutup。Thesurplusproduceofthecolonies,however,istheoriginalsourceofallthatincreaseofenjoymentsandindustrywhichEuropederivesfromthediscoveryandcolonizationofAmerica;andtheexclusivetradeofthemothercountriestendstorenderthissourcemuchlessabundantthanitotherwisewouldbe。
Theparticularadvantageswhicheachcolonizingcountryderivesfromthecolonieswhichparticularlybelongtoitareoftwodifferentkinds;first,thosecommonadvantageswhicheveryempirederivesfromtheprovincessubjecttoitsdominion;and,secondly,thosepeculiaradvantageswhicharesupposedtoresultfromprovincesofsoverypeculiaranatureastheEuropeancoloniesofAmerica。
Thecommonadvantageswhicheveryempirederivesfromtheprovincessubjecttoitsdominionconsist,first,inthemilitaryforcewhichtheyfurnishforitsdefence;and,secondly,intherevenuewhichtheyfurnishforthesupportofitscivilgovernment。TheRomancolonesfurnishedoccasionallyboththeoneandtheother。TheGreekcolonies,sometimes,furnishedamilitaryforce,butseldomanyrevenue。Theyseldomacknowledgedthemselvessubjecttothedominionofthemothercity。Theyweregenerallyheralliesinwar,butveryseldomhersubjectsinpeace。
TheEuropeancoloniesofAmericahaveneveryetfurnishedanymilitaryforceforthedefenceofthemothercountry。Theirmilitaryforcehasneveryetbeensufficientfortheirowndefence;andinthedifferentwarsinwhichthemothercountrieshavebeenengaged,thedefenceoftheircolonieshasgenerallyoccasionedaveryconsiderabledistractionofthemilitaryforceofthosecountries。Inthisrespect,therefore,alltheEuropeancolonieshave,withoutexception,beenacauseratherofweaknessthanofstrengthtotheirrespectivemothercountries。
ThecoloniesofSpainandPortugalonlyhavecontributedanyrevenuetowardsthedefenceofthemothercountry,orthesupportofhercivilgovernment。ThetaxeswhichhavebeenlevieduponthoseofotherEuropeannations,uponthoseofEnglandinparticular,haveseldombeenequaltotheexpenselaidoutuponthemintimeofpeace,andneversufficienttodefraythatwhichtheyoccasionedintimeofwar。Suchcolonies,therefore,havebeenasourceofexpenseandnotofrevenuetotheirrespectivemothercountries。
TheadvantagesofsuchcoloniestotheirrespectivemothercountriesconsistaltogetherinthosepeculiaradvantageswhicharesupposedtoresultfromprovincesofsoverypeculiaranatureastheEuropeancoloniesofAmerica;andtheexclusivetrade,itisacknowledged,isthesolesourceofallthosepeculiaradvantages。
Inconsequenceofthisexclusivetrade,allthatpartofthesurplusproduceoftheEnglishcolonies,forexample,whichconsistsinwhatarecalledenumeratedcommodities,canbesenttonoothercountrybutEngland。Othercountriesmustafterwardsbuyitofher。ItmustbecheaperthereforeinEnglandthanitcanbeinanyothercountry,andmustcontributemoretoincreasetheenjoymentsofEnglandthanthoseofanyothercountry。Itmustlikewisecontributemoretoencourageherindustry。ForallthosepartsofherownsurplusproducewhichEnglandexchangesforthoseenumeratedcommodities,shemustgetabetterpricethananyothercountriescangetforthelikepartsoftheirs,whentheyexchangethemforthesamecommodities。ThemanufacturersofEngland,forexample,willpurchaseagreaterquantityofthesugarandtobaccoofherowncoloniesthanthelikemanufacturesofothercountriescanpurchaseofthatsugarandtobacco。Sofar,therefore,asthemanufacturesofEnglandandthoseofothercountriesarebothtobeexchangedforthesugarandtobaccooftheEnglishcolonies,thissuperiorityofpricegivesanencouragementtotheformerbeyondwhatthelattercaninthesecircumstancesenjoy。Theexclusivetradeofthecolonies,therefore,asitdiminishes,oratleastkeepsdownbelowwhattheywouldotherwiseriseto,boththeenjoymentsandtheindustryofthecountrieswhichdonotpossessit;soitgivesanevidentadvantagetothecountrieswhichdopossessitoverthoseothercountries。
Thisadvantage,however,willperhapsbefoundtoberatherwhatmaybecalledarelativethananabsoluteadvantage;andtogiveasuperioritytothecountrywhichenjoysitratherbydepressingtheindustryandproduceofothercountriesthanbyraisingthoseofthatparticularcountryabovewhattheywouldnaturallyrisetointhecaseofafreetrade。
ThetobaccoofMarylandandVirginia,forexample,bymeansofthemonopolywhichEnglandenjoysofit,certainlycomescheapertoEnglandthanitcandotoFrance,towhomEnglandcommonlysellsaconsiderablepartofit。ButhadFrance,andallotherEuropeancountriesbeen,atalltimes,allowedafreetradetoMarylandandVirginia,thetobaccoofthosecoloniesmight,bythistime,havecomecheaperthanitactuallydoes,notonlytoallthoseothercountries,butlikewisetoEngland。Theproduceoftobacco,inconsequenceofamarketsomuchmoreextensivethananywhichithashithertoenjoyed,might,andprobablywould,bythistime,havebeensomuchincreasedastoreducetheprofitsofatobaccoplantationtotheirnaturallevelwiththoseofacornplantation,which,itissupposed,theyarestillsomewhatabove。Thepriceoftobaccomight,andprobablywould,bythistime,havefallensomewhatlowerthanitisatpresent。
AnequalquantityofthecommoditieseitherofEnglandorofthoseothercountriesmighthavepurchasedinMarylandandVirginiaagreaterquantityoftobaccothanitcandoatpresent,andconsequentlyhavebeensoldthereforsomuchabetterprice。
Sofarasthatweed,therefore,can,byitscheapnessandabundance,increasetheenjoymentsoraugmenttheindustryeitherofEnglandorofanyothercountry,itwould,probably,inthecaseofafreetrade,haveproducedboththeseeffectsinsomewhatagreaterdegreethanitcandoatpresent。England,indeed,wouldnotinthiscasehavehadanyadvantageoverothercountries。Shemighthaveboughtthetobaccoofhercoloniessomewhatcheaper,andconsequentlyhavesoldsomeofherowncommoditiessomewhatdearerthansheactuallydoes。Butshecouldneitherhaveboughttheonecheapernorsoldtheotherdearerthananyothercountrymighthavedone。Shemight,perhapshavegainedanabsolute,butshewouldcertainlyhavelostarelativeadvantage。
Inorder,however,toobtainthisrelativeadvantageinthecolonytrade,inordertoexecutetheinvidiousandmalignantprojectofexcludingasmuchaspossibleothernationsfromanyshareinit,England,thereareveryprobablereasonsforbelieving,hasnotonlysacrificedapartoftheabsoluteadvantagewhichshe,aswellaseveryothernation,mighthavederivedfromthattrade,buthassubjectedherselfbothtoanabsoluteandtoarelativedisadvantageinalmosteveryotherbranchoftrade。
When,bytheActofNavigation,Englandassumedtoherselfthemonopolyofthecolonytrade,theforeigncapitalswhichhadbeforebeenemployedinitwerenecessarilywithdrawnfromit。
TheEnglishcapital,whichhadbeforecarriedonbutapartofit,wasnowtocarryonthewhole。ThecapitalwhichhadbeforesuppliedthecolonieswithbutapartofthegoodswhichtheywantedfromEuropewasnowallthatwasemployedtosupplythemwiththewhole。Butitcouldnotsupplythemwiththewhole,andthegoodswithwhichitdidsupplythemwerenecessarilysoldverydear。Thecapitalwhichhadbeforeboughtbutapartofthesurplusproduceofthecolonies,wasnowallthatwasemployedtobuythewhole。Butitcouldnotbuythewholeatanythingneartheoldprice,and,therefore,whateveritdidbuyitnecessarilyboughtverycheap。Butinanemploymentofcapitalinwhichthemerchantsoldverydearandboughtverycheap,theprofitmusthavebeenverygreat,andmuchabovetheordinarylevelofprofitinotherbranchesoftrade。Thissuperiorityofprofitinthecolonytradecouldnotfailtodrawfromotherbranchesoftradeapartofthecapitalwhichhadbeforebeenemployedinthem。Butthisrevulsionofcapital,asitmusthavegraduallyincreasedthecompetitionofcapitalsinthecolonytrade,soitmusthavegraduallydiminishedthatcompetitioninallthoseotherbranchesoftrade;asitmusthavegraduallyloweredtheprofitsoftheone,soitmusthavegraduallyraisedthoseoftheother,tilltheprofitsofallcametoanewlevel,differentfromandsomewhathigherthanthatatwhichtheyhadbeenbefore。
Thisdoubleeffectofdrawingcapitalfromallothertrades,andofraisingtherateofprofitsomewhathigherthanitotherwisewouldhavebeeninalltrades,wasnotonlyproducedbythismonopolyuponitsfirstestablishment,buthascontinuedtobeproducedbyiteversince。
First,thismonopolyhasbeencontinuallydrawingcapitalfromallothertradestobeemployedinthatofthecolonies。
ThoughthewealthofGreatBritainhasincreasedverymuchsincetheestablishmentoftheActofNavigation,itcertainlyhasnotincreasedinthesameproportionasthatofthecolonies。
Buttheforeigntradeofeverycountrynaturallyincreasesinproportiontoitswealth,itssurplusproduceinproportiontoitswholeproduce;andGreatBritainhavingengrossedtoherselfalmostthewholeofwhatmaybecalledtheforeigntradeofthecolonies,andhercapitalnothavingincreasedinthesameproportionastheextentofthattrade,shecouldnotcarryitonwithoutcontinuallywithdrawingfromotherbranchesoftradesomepartofthecapitalwhichhadbeforebeenemployedinthemaswellaswithholdingfromthemagreatdealmorewhichwouldotherwisehavegonetothem。SincetheestablishmentoftheActofNavigation,accordingly,thecolonytradehasbeencontinuallyincreasing,whilemanyotherbranchesofforeigntrade,particularlyofthattootherpartsofEurope,havebeencontinuallydecaying。Ourmanufacturesforforeignsale,insteadofbeingsuited,asbeforetheActofNavigation,totheneighbouringmarketofEurope,ortothemoredistantoneofthecountrieswhichlieroundtheMediterraneanSea,have,thegreaterpartofthem,beenaccommodatedtothestillmoredistantoneofthecolonies,tothemarketinwhichtheyhavethemonopolyratherthantothatinwhichtheyhavemanycompetitors。
Thecausesofdecayinotherbranchesofforeigntrade,which,bySirMatthewDeckerandotherwriters,havebeensoughtforintheexcessandimpropermodeoftaxation,inthehighpriceoflabour,intheincreaseofluxury,etc。,mayallbefoundintheovergrowthofthecolonytrade。ThemercantilecapitalofGreatBritain,thoughverygreat,yetnotbeinginfinite,andthoughgreatlyincreasedsincetheActofNavigation,yetnotbeingincreasedinthesameproportionasthecolonytrade,thattradecouldnotpossiblybecarriedonwithoutwithdrawingsomepartofthatcapitalfromotherbranchesoftrade,norconsequentlywithoutsomedecayofthoseotherbranches。
England,itmustbeobserved,wasagreattradingcountry,hermercantilecapitalwasverygreatandlikelytobecomestillgreaterandgreatereveryday,notonlybeforetheActofNavigationhadestablishedthemonopolyofthecolonytrade,butbeforethattradewasveryconsiderable。IntheDutchwar,duringthegovernmentofCromwell,hernavywassuperiortothatofHolland;andinthatwhichbrokeoutinthebeginningofthereignofCharlesII,itwasatlastequal,perhapssuperior,totheunitednaviesofFranceandHolland。Itssuperiority,perhaps,wouldscarceappeargreaterinthepresenttimes;atleastiftheDutchnavywastobearthesameproportiontotheDutchcommercenowwhichitdidthen。Butthisgreatnavalpowercouldnot,ineitherofthosewars,beowingtotheActofNavigation。Duringthefirstofthemtheplanofthatacthadbeenbutjustformed;andthoughbeforethebreakingoutofthesecondithadbeenfullyenactedbylegalauthority,yetnopartofitcouldhavehadtimetoproduceanyconsiderableeffect,andleastofallthatpartwhichestablishedtheexclusivetradetothecolonies。Boththecoloniesandtheirtradewereinconsiderablethenincomparisonofwhattheyarenow。TheislandofJamaicawasanunwholesomedesert,littleinhabited,andlesscultivated。NewYorkandNewJerseywereinthepossessionoftheDutch:thehalfofSt。Christopher’sinthatoftheFrench。TheislandofAntigua,thetwoCarolinas,Pennsylvania,Georgia,andNovaScotiawerenotplanted。
Virginia,Maryland,andNewEnglandwereplanted;andthoughtheywereverythrivingcolonies,yettherewasnot,perhaps,atthattime,eitherinEuropeorAmerica,asinglepersonwhoforesaworevensuspectedtherapidprogresswhichtheyhavesincemadeinwealth,population,andimprovement。TheislandofBarbadoes,inshort,wastheonlyBritishcolonyofanyconsequenceofwhichtheconditionatthattimeboreanyresemblancetowhatitisatpresent。Thetradeofthecolonies,ofwhichEngland,evenforsometimeaftertheActofNavigation,enjoyedbutapart(fortheActofNavigationwasnotverystrictlyexecutedtillseveralyearsafteritwasenacted),couldnotatthattimebethecauseofthegreattradeofEngland,norofthegreatnavalpowerwhichwassupportedbythattrade。ThetradewhichatthattimesupportedthatgreatnavalpowerwasthetradeofEurope,andofthecountrieswhichlieroundtheMediterraneanSea。ButthesharewhichGreatBritainatpresentenjoysofthattradecouldnotsupportanysuchgreatnavalpower。Hadthegrowingtradeofthecoloniesbeenleftfreetoallnations,whatevershareofitmighthavefallentoGreatBritain,andaveryconsiderablesharewouldprobablyhavefallentoher,musthavebeenallanadditiontothisgreattradeofwhichshewasbeforeinpossession。Inconsequenceofthemonopoly,theincreaseofthecolonytradehasnotsomuchoccasionedanadditiontothetradewhichGreatBritainhadbeforeasatotalchangeinitsdirection。
Secondly,thismonopolyhasnecessarilycontributedtokeepuptherateofprofitinallthedifferentbranchesofBritishtradehigherthanitnaturallywouldhavebeenhadallnationsbeenallowedafreetradetotheBritishcolonies。
Themonopolyofthecolonytrade,asitnecessarilydrewtowardsthattradeagreaterproportionofthecapitalofGreatBritainthanwhatwouldhavegonetoitofitsownaccord;sobytheexpulsionofallforeigncapitalsitnecessarilyreducedthewholequantityofcapitalemployedinthattradebelowwhatitnaturallywouldhavebeeninthecaseofafreetrade。But,bylesseningthecompetitionofcapitalsinthatbranchoftrade,itnecessarilyraisedtherateofprofitinthatbranch。Bylessening,too,thecompetitionofBritishcapitalsinallotherbranchesoftrade,itnecessarilyraisedtherateofBritishprofitinallthoseotherbranches。Whatevermayhavebeen,atanyparticularperiod,sincetheestablishmentoftheActofNavigation,thestateorextentofthemercantilecapitalofGreatBritain,themonopolyofthecolonytrademust,duringthecontinuanceofthatstate,haveraisedtheordinaryrateofBritishprofithigherthanitotherwisewouldhavebeenbothinthatandinalltheotherbranchesofBritishtrade。If,sincetheestablishmentoftheActofNavigation,theordinaryrateofBritishprofithasfallenconsiderably,asitcertainlyhas,itmusthavefallenstilllower,hadnotthemonopolyestablishedbythatactcontributedtokeepitup。
Butwhateverraisesinanycountrytheordinaryrateofprofithigherthanitotherwisewouldbe,necessarilysubjectsthatcountrybothtoanabsoluteandtoarelativedisadvantageineverybranchoftradeofwhichshehasnotthemonopoly。
Itsubjectshertoanabsolutedisadvantage;becauseinsuchbranchesoftradehermerchantscannotgetthisgreaterprofitwithoutsellingdearerthantheyotherwisewoulddoboththegoodsofforeigncountrieswhichtheyimportintotheirown,andthegoodsoftheirowncountrywhichtheyexporttoforeigncountries。Theirowncountrymustbothbuydearerandselldearer;mustbothbuylessandsellless;mustbothenjoylessandproduceless,thansheotherwisewoulddo。
Itsubjectshertoarelativedisadvantage;becauseinsuchbranchesoftradeitsetsothercountrieswhicharenotsubjecttothesameabsolutedisadvantageeithermoreaboveherorlessbelowherthantheyotherwisewouldbe。Itenablesthembothtoenjoymoreandtoproducemoreinproportiontowhatsheenjoysandproduces。Itrenderstheirsuperioritygreaterortheirinferioritylessthanitotherwisewouldbe。Byraisingthepriceofherproduceabovewhatitotherwisewouldbe,itenablesthemerchantsofothercountriestoundersellherinforeignmarkets,andtherebytojostleheroutofalmostallthosebranchesoftrade,ofwhichshehasnotthemonopoly。
OurmerchantsfrequentlycomplainofthehighwagesofBritishlabourasthecauseoftheirmanufacturesbeingundersoldinforeignmarkets,buttheyaresilentaboutthehighprofitsofstock。Theycomplainoftheextravagantgainofotherpeople,buttheysaynothingoftheirown。ThehighprofitsofBritishstock,however,maycontributetowardsraisingthepriceofBritishmanufacturesinmanycasesasmuch,andinsomeperhapsmore,thanthehighwagesofBritishlabour。
ItisinthismannerthatthecapitalofGreatBritain,onemayjustlysay,haspartlybeendrawnandpartlybeendrivenfromthegreaterpartofthedifferentbranchesoftradeofwhichshehasnotthemonopoly;fromthetradeofEuropeinparticular,andfromthatofthecountrieswhichlieroundtheMediterraneanSea。
Ithaspartlybeendrawnfromthosebranchesoftradebytheattractionofsuperiorprofitinthecolonytradeinconsequenceofthecontinualincreaseofthattrade,andofthecontinualinsufficiencyofthecapitalwhichhadcarrieditononeyeartocarryitonthenext。
Ithaspartlybeendrivenfromthembytheadvantagewhichthehighrateofprofit,establishedinGreatBritain,givestoothercountriesinallthedifferentbranchesoftradeofwhichGreatBritainhasnotthemonopoly。
AsthemonopolyofthecolonytradehasdrawnfromthoseotherbranchesapartoftheBritishcapitalwhichwouldotherwisehavebeenemployedinthem,soithasforcedintothemmanyforeigncapitalswhichwouldneverhavegonetothemhadtheynotbeenexpelledfromthecolonytrade。InthoseotherbranchesoftradeithasdiminishedthecompetitionofBritishcapital,andtherebyraisedtherateofBritishprofithigherthanitotherwisewouldhavebeen。Onthecontrary,ithasincreasedthecompetitionofforeigncapitals,andtherebysunktherateofforeignprofitlowerthanitotherwisewouldhavebeen。BothintheonewayandintheotheritmustevidentlyhavesubjectedGreatBritaintoarelativedisadvantageinallthoseotherbranchesoftrade。
Thecolonytrade,however,itmayperhapsbesaid,ismoreadvantageoustoGreatBritainthananyother;andthemonopoly,byforcingintothattradeagreaterproportionofthecapitalofGreatBritainthanwhatwouldotherwisehavegonetoit,hasturnedthatcapitalintoanemploymentmoreadvantageoustothecountrythananyotherwhichitcouldhavefound。
Themostadvantageousemploymentofanycapitaltothecountrytowhichitbelongsisthatwhichmaintainstherethegreatestquantityofproductivelabour,andincreasesthemosttheannualproduceofthelandandlabourofthatcountry。Butthequantityofproductivelabourwhichanycapitalemployedintheforeigntradeofconsumptioncanmaintainisexactlyinproportion,ithasbeenshowninthesecondbook,tothefrequencyofitsreturns。Acapitalofathousandpounds,forexample,employedinaforeigntradeofconsumption,ofwhichthereturnsaremaderegularlyonceintheyear,cankeepinconstantemployment,inthecountrytowhichitbelongs,aquantityofproductivelabourequaltowhatathousandpoundscanmaintainthereforayear。Ifthereturnsaremadetwiceorthriceintheyear,itcankeepinconstantemploymentaquantityofproductivelabourequaltowhattwoorthreethousandpoundscanmaintainthereforayear。Aforeigntradeofconsumptioncarriedonwithaneighbouringcountryis,uponthisaccount,ingeneralmoreadvantageousthanonecarriedonwithadistantcountry;andforthesamereasonadirectforeigntradeofconsumption,asithaslikewisebeenshowninthesecondbook,isingeneralmoreadvantageousthanaround—aboutone。
Butthemonopolyofthecolonytrade,sofarasithasoperatedupontheemploymentofthecapitalofGreatBritain,hasinallcasesforcedsomepartofitfromaforeigntradeofconsumptioncarriedonwithaneighbouring,toonecarriedonwithamoredistantcountry,andinmanycasesfromadirectforeigntradeofconsumptiontoaround—aboutone。
First,themonopolyofthecolonytradehasinallcasesforcedsomepartofthecapitalofGreatBritainfromaforeigntradeofconsumptioncarriedonwithaneighbouringtoonecarriedonwithamoredistantcountry。
Ithas,inallcases,forcedsomepartofthatcapitalfromthetradewithEurope,andwiththecountrieswhichlieroundtheMediterraneanSea,tothatwiththemoredistantregionsofAmericaandtheWestIndies,fromwhichthereturnsarenecessarilylessfrequent,notonlyonaccountofthegreaterdistance,butonaccountofthepeculiarcircumstancesofthosecountries。Newcolonies,ithasalreadybeenobserved,arealwaysunderstocked。Theircapitalisalwaysmuchlessthanwhattheycouldemploywithgreatprofitandadvantageintheimprovementandcultivationoftheirland。Theyhaveaconstantdemand,therefore,formorecapitalthantheyhaveoftheirown;and,inordertosupplythedeficiencyoftheirown,theyendeavourtoborrowasmuchastheycanofthemothercountry,towhomtheyare,therefore,alwaysindebt。Themostcommonwayinwhichthecolonistscontractthisdebtisnotbyborrowinguponbondoftherichpeopleofthemothercountry,thoughtheysometimesdothistoo,butbyrunningasmuchinarreartotheircorrespondents,whosupplythemwithgoodsfromEurope,asthosecorrespondentswillallowthem。Theirannualreturnsfrequentlydonotamounttomorethanathird,andsometimesnottosogreataproportionofwhattheyowe。Thewholecapital,therefore,whichtheircorrespondentsadvancetothemisseldomreturnedtoBritaininlessthanthree,andsometimesnotinlessthanfourorfiveyears。ButaBritishcapitalofathousandpounds,forexample,whichisreturnedtoGreatBritainonlyonceinfiveyears,cankeepinconstantemploymentonlyone—fifthpartoftheBritishindustrywhichitcouldmaintainifthewholewasreturnedonceintheyear;and,insteadofthequantityofindustrywhichathousandpoundscouldmaintainforayear,cankeepinconstantemploymentthequantityonlywhichtwohundredpoundscanmaintainforayear。Theplanter,nodoubt,bythehighpricewhichhepaysforthegoodsfromEurope,bytheinterestuponthebillswhichhegrantsatdistantdates,andbythecommissionupontherenewalofthosewhichhegrantsatneardates,makesup,andprobablymorethanmakesup,allthelosswhichhiscorrespondentcansustainbythisdelay。Butthoughhemaymakeupthelossofhiscorrespondent,hecannotmakeupthatofGreatBritain。Inatradeofwhichthereturnsareverydistant,theprofitofthemerchantmaybeasgreatorgreaterthaninoneinwhichtheyareveryfrequentandnear;buttheadvantageofthecountryinwhichheresides,thequantityofproductivelabourconstantlymaintainedthere,theannualproduceofthelandandlabourmustalwaysbemuchless。ThatthereturnsofthetradetoAmerica,andstillmorethoseofthattotheWestIndiesare,ingeneral,notonlymoredistantbutmoreirregular,andmoreuncertaintoo,thanthoseofthetradetoanypartofEurope,orevenofthecountrieswhichlieroundtheMediterraneanSea,willreadilybeallowed,Iimagine,byeverybodywhohasanyexperienceofthosedifferentbranchesoftrade。
Secondly,themonopolyofthecolonytradehas,inmanycases,forcedsomepartofthecapitalofGreatBritainfromadirectforeigntradeofconsumptionintoaround—aboutone。
AmongtheenumeratedcommoditieswhichcanbesenttonoothermarketbutGreatBritain,thereareseveralofwhichthequantityexceedsverymuchtheconsumptionofGreatBritain,andofwhichapart,therefore,mustbeexportedtoothercountries。
ButthiscannotbedonewithoutforcingsomepartofthecapitalofGreatBritainintoaround—aboutforeigntradeofconsumption。
MarylandandVirginia,forexample,sendannuallytoGreatBritainupwardsofninety—sixthousandhogsheadsoftobacco,andtheconsumptionofGreatBritainissaidnottoexceedfourteenthousand。Upwardsofeighty—twothousandhogsheads,therefore,mustbeexportedtoothercountries,toFrance,toHolland,andtothecountrieswhichlieroundtheBalticandMediterraneanSeas。ButthatpartofthecapitalofGreatBritainwhichbringsthoseeighty—twothousandhogsheadstoGreatBritain,whichre—exportsthemfromthencetothoseothercountries,andwhichbringsbackfromthoseothercountriestoGreatBritaineithergoodsormoneyinreturn,isemployedinaround—aboutforeigntradeofconsumption;andisnecessarilyforcedintothisemploymentinordertodisposeofthisgreatsurplus。
IfwewouldcomputeinhowmanyyearsthewholeofthiscapitalislikelytocomebacktoGreatBritain,wemustaddtothedistanceoftheAmericanreturnsthatofthereturnsfromthoseothercountries。
If,inthedirectforeigntradeofconsumptionwhichwecarryonwithAmerica,thewholecapitalemployedfrequentlydoesnotcomebackinlessthanthreeorfouryears,thewholecapitalemployedinthisround—aboutoneisnotlikelytocomebackinlessthanfourorfive。Iftheonecankeepinconstantemploymentbutathirdorafourthpartofthedomesticindustrywhichcouldbemaintainedbyacapitalreturnedonceintheyear,theothercankeepinconstantemploymentbutafourthorfifthpartofthatindustry。Atsomeoftheout—portsacreditiscommonlygiventothoseforeigncorrespondentstowhomtheyexporttheirtobacco。
AttheportofLondon,indeed,itiscommonlysoldforreadymoney。Theruleis,Weighandpay。AttheportofLondon,therefore,thefinalreturnsofthewholeround—abouttradearemoredistantthanthereturnsfromAmericabythetimeonlywhichthegoodsmaylieunsoldinthewarehouse;where,however,theymaysometimeslielongenough。ButhadnotthecoloniesbeenconfinedtothemarketofGreatBritainforthesaleoftheirtobacco,verylittlemoreofitwouldprobablyhavecometousthanwhatwasnecessaryforthehomeconsumption。ThegoodswhichGreatBritainpurchasesatpresentforherownconsumptionwiththegreatsurplusoftobaccowhichsheexportstoothercountries,shewouldinthiscaseprobablyhavepurchasedwiththeimmediateproduceofherownindustry,orwithsomepartofherownmanufactures。Thatproduce,thosemanufactures,insteadofbeingalmostentirelysuitedtoonegreatmarket,asatpresent,wouldprobablyhavebeenfittedtoagreatnumberofsmallermarkets。Insteadofonegreatround—aboutforeigntradeofconsumption,GreatBritainwouldprobablyhavecarriedonagreatnumberofsmalldirectforeigntradesofthesamekind。Onaccountofthefrequencyofthereturns,apart,andprobablybutasmallpart;