The course of human prosperity, indeed, seems scarce ever to have been of so long continuance as to enable any great country to acquire capital sufficient for all those three purposes;unless perhaps, we give credit to the wonderful accounts of the wealth and cultivation of China, of those of ancient Egypt, and of the ancient state of Indostan.Even those three countries, the wealthiest, according to all accounts, that ever were in the world, are chiefly renowned for their superiority in agriculture and manufactures.They do not appear to have been eminent for foreign trade.The ancient Egyptians had a superstitious antipathy to the sea; a superstition nearly of the same kind prevails among the Indians; and the Chinese have never excelled in foreign commerce.The greater part of the surplus produce of all those three countries seems to have been always exported by foreigners, who gave in exchange for it something else for which they found a demand there, frequently gold and silver.
It is thus that the same capital will in any country put into motion a greater or smaller quantity of productive labour, and add a greater or smaller value to the annual produce of its land and labour, according to the different proportions in which it is employed in agriculture, manufactures, and wholesale trade.
The difference, too, is very great, according to the different sorts of wholesale trade in which any part of it is employed.
All wholesale trade, all buying in order to sell again by wholesale, may be reduced to three different sorts.The home trade, the foreign trade of consumption, and the carrying trade.
The home trade is employed in purchasing in one part of the same country, and selling in another, the produce of the industry of that country.It comprehends both the inland and the coasting trade.The foreign trade of consumption is employed in purchasing foreign goods for home consumption.The carrying trade is employed in transacting the commerce of foreign countries, or in carrying the surplus produce of one to another.
The capital which is employed in purchasing in one part of the country in order to sell in another the produce of the industry of that country, generally replaces by every such operation two distinct capitals that had both been employed in the agriculture or manufactures of that country, and thereby enables them to continue that employment.When it sends out from the residence of the merchant a certain value of commodities, it generally brings back in return at least an equal value of other commodities.When both are the produce of domestic industry, it necessarily replaces by every such operation two distinct capitals which had both been employed in supporting productive labour, and thereby enables them to continue that support.The capital which sends Scotch manufactures to London, and brings back English corn and manufactures to Edinburgh, necessarily replaces by every such operation, two British capitals which had both been employed in the agriculture or manufactures of Great Britain.
The capital employed in purchasing foreign goods for home consumption, when this purchase is made with the produce of domestic industry, replaces too, by every such operation, two distinct capitals; but one of them only is employed in supporting domestic industry.The capital which sends British goods to Portugal, and brings back Portuguese goods to Great Britain, replaces by every such operation only one British capital.The other is a Portuguese one.Though the returns, therefore, of the foreign trade of consumption should be as quick as those of the home trade, the capital employed in it will give but one half the encouragement to the industry or productive labour of the country.
But the returns of the foreign trade of consumption are very seldom so quick as those of the home trade.The returns of the home trade generally come in before the end of the year, and sometimes three or four times in the year.The returns of the foreign trade of consumption seldom come in before the end of the year, and sometimes not till after two or three years.A capital, therefore, employed in the home trade will sometimes make twelve operations, or be sent out and returned twelve times, before a capital employed in the foreign trade of consumption has made one.If the capitals are equal, therefore, the one will give four-and-twenty times more encouragement and support to the industry of the country than the other.