be produced at home, from whatever country they were imported.

Secondly, Restraints upon the importation of goods of almost all kinds from those particular countries with which the balance of trade was supposed to be disadvantageous.

.

Those different reftraints confifted fometimes in high duties, and sometimes in absolute prohibitions.

Exportation was encouraged fometimes by drawbacks, fometimes by bounties, fometimes by advantageous treaties of commerce with foreign ftates, and sometimes by the establishment of colonies in diftant countries.

Drawbacks were given upon two different occafions. When the home - manufactures were fubject to any duty or excife, either the whole or a part of it was frequently drawn back upon their exportation; and when foreign goods liable to a duty were imported in order to be exported again, either the whole or a part of this duty was fometimes given back upon fuch exportation.

Bounties were given for the encouragement either of some beginning manufactures, or of fuch forts of industry of other kinds as were supposed to deserve particular favor.

By advantageous treaties of commerce, particular privileges were procured in fome foreign ftate for the goods and merchants of the country, beyond what were granted to those of other

countries,

By the establishment of colonies in diftant countries, not only particular privileges, but a monopoly was frequently procured for the goods and merchants of the country which established them.

The two forts of reftraints upon importation above-mentioned, together with these four encouragements to exportation, conftitute the fix principal means by which the commercial fyftem proposes to increase the quantity of gold and filver in any country by turning the balance of trade in its favor. I fhall confider each of them in a particular chapter, and without taking much further notice of their supposed tendency to bring money into the country, I fhall examine chiefly what are likely to be the effects of each of them upon the annual produce of its industry. According as they tend either to increase or diminish the value of this annual produce, they muft evidently tend either to increase or diminish the real wealth and revenue of the country.

CHA P. II.

Of Reftraints upon the Importation from foreign Countries of fuch Goods as can be produced at Home.

BY

Y reftraining, either by high duties, or by abfolute prohibition, the importation of fuch goods from foreign countries as can be produced at home, the monopoly of the home-market is more or less fecured to the domestic industry employed in producing them. Thus the prohibition of importing either live cattle or falt provifions from foreign countries fecures to the graziers of Great Britain the monopoly of the home-market for butcher's meat. The high duties upon the importation of corn, which in times of moderate plenty amount to a prohibition, give a like advantage to the growers of that commodity. The prohibition of the importation of foreign woollens is equally favorable to the woollen manufacturers. The filk manufacture, though altogether employed upon foreign materials, has lately obtained the fame advantage. The linen manufacture has not yet obtained it, but is making great ftrides towards it. Many other forts of manufacturers have, in the fame manner, obtained in Great Britain, either altogether, or very nearly a monopoly against their countrymen. The variety of goods of which the importation into Great Britain is prohibited,

either absolutely, or under certain circumstances, greatly exceeds what can easily be fufpected by those who are not well acquainted with the laws of the customs.

That this monopoly of the home-market frequently gives great encouragement to that particular fpecies of industry which enjoys it, and frequently turns towards that employment a greater fhare of both the labor and flock of the fociety than would otherwife have gone to it, cannot be doubted. But whether it tends either to increase the general industry of the fociety, or to give it the most advantageous direction, is not, perhaps, altogether fo evident.

The general induftry of the fociety never can exceed what the capital of the fociety can employ. As the number of workmen that can be kept in employment by any particular perfon must bear a certain proportion to his capital, so the number of thofe that can be continually employed by all the members of a great fociety, muft bear a certain proportion to the whole capital of that fociety, and never can exceed that proportion. No regulation of commerce can increase the quantity of industry in any fociety beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone; and it is by no means certain that this artificial direction is likely to be more advantageous to the fociety than that into which it would have gone of its own accord.

Every individual is continually exerting himself to find out the most advantageous employment

for whatever capital he can command. It is his own advantage, indeed, and not that of the fociety, which he has in view. But the ftudy of his own advantage naturally, or rather neceffarily leads him to prefer that employment which is most advantageous to the society.

First, every individual endeavours to employ his capital as near home as he can, and confequently as much as he can in the support of domestic industry, provided always that he can thereby obtain the ordinary, or not a great deal less than the ordinary profits of flock.

Thus, upon equal or nearly equal profits, every wholesale merchant naturally prefers the hometrade to the foreign trade of confumption, and the foreign trade of consumption, to the carrying trade. In the home-trade his capital is never fo long out of his fight as it frequently is in the foreign trade of confumption. He can know better the character and fituation of the perfons whom he trufts, and if he should happen to be deceived, he knows better the laws of the country from which he must seek redrefs. In the carrying trade, the capital of the merchant is, as it were, divided between two foreign countries, and no part of it is ever neceffarily brought home, or placed under his own immediate view and command. The capital which an Amsterdam merchant employs in carrying corn from Kœnigfberg to Lifbon, and fruit and wine from Lifbon to Koenigfberg, muft generally be the one-half of it at Koenigsberg and the other half