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;