II. that any man employs a capital in the fupport of CHA P. industry; and he will always, therefore, endeavour to employ it in the support of that industry of which the produce is likely to be of the greatest value, or to exchange for the greateft quantity either of money or of other goods. BUT the annual revenue of every fociety is always precisely equal to the exchangeable value of the whole annual produce of its industry, or rather is precisely the fame thing with that exchangeable value. As every individual, therefore, endeavours as much as he can both to employ his capital in the fupport of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual neceffarily labours to render the annual revenue of the fociety as great as he can. He generally, indeed, neither intends to promote the public intereft, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own fecurity; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cafes, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the fociety that it was no part of it. By pursuing his own interest he frequently promotes that of the fociety more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, N 3 BOOK affectation, indeed, not very common among merchants, and very few words need be employed in diffuading them from it. WHAT is the fpecies of domestic industry which his capital can employ, and of which the produce is likely to be of the greateft value, every individual, it is evident, can, in his local fituation, judge much better than any ftatefman or lawgiver can do for him. The ftatefman, who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a moft unneceffary attention, but affume an authority which could fafely be trufted, not only to no fingle perfon, but to no council or senate whatever, and which would no-where be fo dangerous as in the hands of a man who had folly and prefumption enough to fancy himself fit to exercise it. To give the monopoly of the home-market to the produce of domestic industry, in any particular art or manufacture, is in fome measure to direct private people in what manner they ought to employ their capitals, and muft, in almost all cafes, be either a ufelefs or a hurtful regulation. If the produce of domeftic can be brought there as cheap as that of foreign industry, the regulation is evidently useless. If it cannot, it must generally be hurtful. It is the maxim of every prudent master of a family, never to attempt to make at home what it will coft him more to make than to buy. The taylor does not attempt to make his own fhoes, but buys them of the fhoemaker. The fhoemaker does not attempt to make II. make his own clothes, but employs a taylor. CHA P. The farmer attempts to make neither the one nor the other, but employs thofe different artificers. All of them find it for their intereft to employ their whole industry in a way in which they have some advantage over their neighbours, and to purchase with a part of its produce, or what is the fame thing, with the price of a part of it, whatever elfe they have occafion for. WHAT is prudence in the conduct of every private family, can fcarce be folly in that of a great kingdom. If a foreign country can fupplyus with a commodity cheaper than we ourselves can make it, better buy it of them with fome part of the produce of our own industry, employed in a way in which we have fome advantage. The general industry of the country, being always in proportion to the capital which employs it, will not thereby be diminished, no more than that of the above-mentioned artificers; but only left to find out the way in which it can be employed with the greateft advantage. It is certainly not employed to the greatest advantage, when it is thus directed towards an object which it can buy cheaper than it can make. The value of its annual produce is certainly more or lefs diminished, when it is thus turned away from producing commodities evidently of more value than the commodity which it is directed to produce. According to the fuppofition, that commodity could be purchafed from foreign countries. cheaper than it can be made at home. It could, therefore, have been purchased with a BOOK part only of the commodities, or, what is the fame thing, with a part only of the price of the commodities, which the industry employed by an equal capital would have produced at home, had it been left to follow its natural course. The industry of the country, therefore, is thus turned away from a more, to a lefs advantageous employment, and the exchangeable value of its annual produce, inftead of being increased, according to the intention of the lawgiver, must neceffarily be diminished by every fuch regulation. By means of fuch regulations, indeed, a particular manufacture may fometimes be acquired fooner than it could have been otherwise, and after a certain time may be made at home as cheap or cheaper than in the foreign country. But though the industry of the fociety may be thus carried with advantage into a particular channel fooner than it could have been otherwife, it will by no means follow that the fum total, either of its induftry, or of its revenue, can ever be augmented by any fuch regulation. The industry of the fociety can augment only in portion as its capital augments, and its capital can augment only in proportion to what can be gradually faved out of its revenue. But the immediate effect of every fuch regulation is to diminifh its revenue, and what diminishes its revenue is certainly not very likely to augment its capital fafter than it would have augmented of its own accord, had both capital and industry been left to find out their natural employments. pro THOUGH II. THOUGH for want of fuch regulations the fo- CHAP. ciety should never acquire the propofed manufacture, it would not, upon that account, neceffarily be the poorer in any one period of its duration. In every period of its duration its whole capital and industry might ftill have been employed, though upon different objects, in the manner that was most advantageous at the time. In every period its revenue might have been the greatest which its capital could afford, and both capital and revenue might have been augmented with the greatest poffible rapidity. THE natural advantages which one country has over another in producing particular commodities are fometimes fo great, that it is acknowledged by all the world to be in vain to ftruggle with them. By means of glaffes, hotbeds, and hotwalls, very good grapes can be raised in Scotland, and very good wine too can be made of them at about thirty times the expence for which at least equally good can be brought from foreign countries. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland? But if there would be a manifeft abfurdity in turning towards any employment, thirty times more of the capital and industry of the country, than would be neceffary to purchase from foreign countries an equal quantity of the commodities wanted, there must be an abfurdity, though not altogether fo glaring, yet exactly of the fame kind, in turning towards |