distant country three different ways： by sending abroad either；
first； some part of its accumulated gold and silver； or；
secondly； some part of the annual produce of its manufactures；
or； last of all； some part of its annual rude produce。
The gold and silver which can properly be considered as
accumulated or stored up in any country may be distinguished into
three parts： first； the circulating money； secondly； the plate of
private families； and； last of all； the money which may have been
collected by many years' parsimony； and laid up in the treasury
of the prince。
It can seldom happen that much can be spared from the
circulating money of the country； because in that there can
seldom be much redundancy。 The value of goods annually bought and
sold in any country requires a certain quantity of money to
circulate and distribute them to their proper consumers； and can
give employment to no more。 The channel of circulation
necessarily draws to itself a sum sufficient to fill it； and
never admits any more。 Something； however； is generally withdrawn
from this channel in the case of foreign war。 By the great number
of people who are maintained abroad； fewer are maintained at
home。 Fewer goods are circulated there； and less money becomes
necessary to circulate them。 An extraordinary quantity of paper
money； of some sort or other； such as exchequer notes； navy
bills； and bank bills in England； is generally issued upon such
occasions； and by supplying the place of circulating gold and
silver； gives an opportunity of sending a greater quantity of it
abroad。 All this； however； could afford but a poor resource for
maintaining a foreign war of great expense and several years
duration。
The melting down the plate of private families has upon
every occasion been found a still more insignificant one。 The
French； in the beginning of the last war； did not derive so much
advantage from this expedient as to compensate the loss of the
fashion。
The accumulated treasures of the prince have； in former
times； afforded a much greater and more lasting resource。 In the
present times； if you except the king of Prussia； to accumulate
treasure seems to be no part of the policy of European princes。
The funds which maintained the foreign wars of the present
century； the most expensive perhaps which history records； seem
to have had little dependency upon the exportation either of the
circulating money； or of the plate of private families； or of the
treasure of the prince。 The last French war cost Great Britain
upwards of ninety millions； including not only the seventy…five
millions of new debt that was contracted； but the additional two
shillings in the pound land…tax； and what was annually borrowed
of the sinking fund。 More than two…thirds of this expense were
laid out in distant countries； in Germany； Portugal； America； in
the ports of the Mediterranean； in the East and West Indies。 The
kings of England had no accumulated treasure。 We never heard of
any extraordinary quantity of plate being melted down。 The
circulating gold and silver of the country had not been supposed
to exceed eighteen millions。 Since the late recoinage of the
gold； however； it is believed to have been a good deal
under…rated。 Let us suppose； therefore； according to the most
exaggerated computation which I remember to have either seen or
heard of； that； gold and silver together； it amounted to thirty
millions。 Had the war been carried on by means of our money； the
whole of it must； even according to this computation； have been
sent out and returned again at least twice in a period of between
six and seven years。 Should this be supposed； it would afford the
most decisive argument to demonstrate how unnecessary it is for
government to watch over the preservation of money； since upon
this supposition the whole money of the country must have gone
from it and returned to it again； two different times in so short
a period； without anybody's knowing anything of the matter。 The
channel of circulation； however； never appeared more empty than
usual during any part of this period。 Few people wanted money who
had wherewithal to pay for it。 The profits of foreign trade；
indeed； were greater than usual during the whole war； but
especially towards the end of it。 This occasioned； what it always
occasions； a general overtrading in all the parts of Great
Britain； and this again occasioned the usual complaint of the
scarcity of money； which always follows overtrading。 Many people
wanted it； who had neither wherewithal to buy it； nor credit to
borrow it； and because the debtors found it difficult to borrow；
the creditors found it difficult to get payment。 Gold and silver；
however； were generally to be had for their value； by those who
had that value to give for them。
The enormous expense of the late war； therefore； must have
been chiefly defrayed； not by the exportation of gold and silver；
but by that of British commodities of some kind or other。 When
the government； or those who acted under them； contracted with a
merchant for a remittance to some foreign country； he would
naturally endeavour to pay his foreign correspondent； upon whom
he had granted a bill； by sending abroad rather commodities than
gold and silver。 If the commodities of Great Britain were not in
demand in that country； he would endeavour to send them to some
other country； in which he could purchase a bill upon that
country。 The transportation of commodities； when properly suited
to the market； is always attended with a considerable profit；
whereas that of gold and silver is scarce ever attended with any。
When those metals are sent abroad in order to purchase foreign
commodities； the merchant's profit arises； not from the purchase；
but from the sale of the returns。 But when they are sent abroad
merely to pay a debt； he gets no returns； and consequently 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 silver。 The great quantity
of British goods exported during the course of the late war；
without bringing back any returns； is accordingly remarked by the
author of The Present State of the Nation。
Besides the three sorts of gold and silver 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 same manner as the national coin circulates in
every particular country； may be considered 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 those circulated between different countries。 Both
are employed in facilitating exchanges； the one between different
individuals of the same； the other between those 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 suppose that a
movement and direction should be impressed upon it； different
from what it usually follows in profound peace； that it should
circulate more about the seat of the war； and be more employed in
purchasing 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 manner； it must have been annually purchased；
either with British commodities； or with something 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 resources which enabled us to carry on
the war。 It is natural indeed to suppose that so great an annual
expense must have been defrayed from a great annual produce。 The
expense of 1761； for example； amounted to more than nineteen
millions。 No accumulation could have supported so great an annual
profusion。 There is no annual produce even of gold and silver
which could have supported it。 The whole gold and silver annually
imported into both Spain and Portugal； according to the best
accounts； does not commonly much exceed six millions sterling；
which； in some years； would scarce have paid four month's expense
of the late war。
The commodities most proper for being transported to distant
countries； in order to purchase there either the pay and
provisions of an army； or some part of the money of the
mercantile republic to be employed in purchasing them； seem to be
the finer and more improved manufactures； such as contain a great
value in a small bulk； and can； therefore； be exported to a great
distance at little expense。 A country whose industry produces a
great annual surplus of such manufactures； which are usually
exported to foreign countries； may carry on for many years a very
expensive foreign war without either exporting any considerable
quantity of gold and silver； or even having any such quantity to
export。 A considerable part of the annual surplus of its
manufactures must； indeed； in this case 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 surplus； however； may
still continue to bring back a return。 The manufacturers； during
the war； will have a double demand upon them； and be called upon；
first； to work up goods to be sent abroad； for paying the bills
drawn upon foreign countries for the pay and provisions of the
army； and； secondly； to work up such as are necessary for
purchasing the common returns that had usually been consumed in
the country。 In the midst of the most destructive foreign war；
therefore； the