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found it difficult to borrow, the creditors found CHA P. it difficult to get payment. Gold and filver, however, were generally to be had for their value, by those who had that value to give for them.

The enormous expence of the late war, therefore, must have been chiefly defrayed, not by the exportation of gold and filver, but by that of British commodities of fome kind or other. When the government, or those who acted under them, contracted with a merchant for a remittance to fome foreign country, he would naturally endeavour to pay his foreign correfpondent, upon whom he had granted a bill, by fending abroad rather commodities than gold and filver. If the commodities of Great Britain were not in demand in that country, he would endeavour to fend them to fome other country, in which he could purchase a bill upon that country. The tranfportation of commodities, when properly fuited to the market, is always attended with a confiderable profit; whereas that of gold and filver is fcarce ever attended with any. When thofe metals are fent abroad in order to purchase foreign commodities, the merchant's profit arifes, not from the purchase, but from the fale of the returns. But when they are fent abroad merely to pay a debt, he gets no returns, and confequently no profit. He naturally, therefore, exerts his invention to find out a way of paying his foreign debts, rather by the exportation of commodities than by that of gold and filver. The great quantity of British goods exported during

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auring the courfe of the late war, without bringing back any returns, is accordingly remarked by the author of "The prefent State of the Nation."

× Befides the three forts of gold and filver above mentioned, there is in all great commercial countries a good deal of bullion alternately imported and exported for the purposes of foreign trade. This bullion, as it circulates among different commercial countries in the fame manner as the national coin circulates in every particular country, may be confidered as the money of the great mercantile republic. The national coin receives its movement and direction from the commodities circulated within the precincts of each particular country: the money of the mercantile republic, from thofe circulated between different countries. Both are employed in facilitating exchanges, the one between different individuals of the fame, the other between thofe of different nations. Part of this money of the great mercantile republic may have been, and probably was, employed in carrying on the late war. In time of a general war, it is natural to fuppofe that a movement and direction fhould be impreffed upon it, different from what it ufually follows in profound peace; that it should circulate more about the feat of war, and be more employed in purchafing there, and in the neighbouring countries, the pay and provisions of the different armies. But whatever part of this money of the mercantile republic, Great Britain may have annually employed in this

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manner, it must have been annually purchased, cHA P. either with British commodities, or with fome. thing else that had been purchased with them; which still brings us back to commodities, to the annual produce of the land and labour of the country, as the ultimate refources which enabled us to carry on the war. It is natural indeed to fuppofe, that fo great an annual expence muft have been defrayed from a great annual produce. The expence of 1761, for example, amounted to more than nineteen millions. No accumulation could have fupported fo great an annual profufion. There is no annual produce even of gold and filver which could have fupported it. The whole gold and filver annually imported into both Spain and Portugal, according to the best accounts, does not commonly much exceed fix millions fterling, which, in fome years, would fcarce have paid four months expence of the late war.

The commodities moft proper for being tranf ported to distant countries, in order to purchase there, either the pay and provifions of an army, or fome part of the money of the mercantile republic to be employed in purchafing them, feem to be the finer and more improved manufactures; fuch as contain a great value in a fmall bulk, and can, therefore, be exported to a great distance at little expence. A country whose induftry produces a great annual furplus of fuch manufactures, which are ufually exported to foreign countries, may carry on for many years a very expenfive foreign war, without either exporting

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BOOK exporting any confiderable quantity of gold and IV. filver, or even having any fuch quantity to export. A confiderable part of the annual furplus of its manufactures muft, indeed, in this cafe be exported, without bringing back any returns to the country, though it does to the merchant; the government purchasing of the merchant his bills upon foreign countries, in order to purchase there the pay and provisions of an army. Some part of this furplus, however, may ftill continue to bring back a return. The manufacturers, during the war, will have a double demand upon them, and be called upon, firft, to work up goods to be fent abroad, for paying the bills drawn upon foreign countries for the pay and provifions of the army; and, fecondly, to work up fuch as are neceffary for purchafing the common returns that had ufually been confumed in the country. In the midst of the most deftructive foreign war, therefore, the greater part of manufactures may frequently flourish greatly; and, on the contrary, they may decline on the return of the peace. They may flourish amidst the ruin of their country, and begin to decay upon the return of its profperity. The different state of many different branches of the British manufactures during the late war, and for fome time after the peace, may serve as an illuf tration of what has been juft now faid.

No foreign war of great expence or duration could conveniently be carried on by the exportation of the rude produce of the foil. The expence of fending fuch a quantity of it to a

foreign

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foreign country as might purchase the pay and c HA P. provifions of an army, would be too great. Few L countries too produce much more rude produce than what is fufficient for the fubfiftence of their own inhabitants. To fend abroad any great quantity of it, therefore, would be to fend abroad a part of the neceffary fubfiftence of the people. It is otherwife with the exportation of manufactures. The maintenance of the people employed in them is kept at home, and only the furplus part of their work is exported. Mr. Hume frequently takes notice of the inability of the ancient kings of England to carry on, with. out interruption, any foreign war of long duration. The English, in thofe days, had nothing wherewithal to purchase the pay and provifions of their armies in foreign countries, but either the rude produce of the foil, of which no confiderable part could be spared from the home confumption, or a few manufactures of the coarfeft kind, of which, as well as of the rude produce, the transportation was too expenfive. This inability did not arise from the want of money, but of the finer and more improved manufactures. Buying and felling was tranfacted by means of money in England then, as well as now. The quantity of circulating money muft have borne the fame proportion to the number and value of purchases and fales ufually tranfacted at that time, which it does to thofe tranfacted at prefent; or rather it must have borne a greater proportion because there was then no paper, which now occupies a great part of the employment of gold and

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