other branches a part of the British capital which would
otherwise have been employed in them； so it has forced into them
many foreign capitals which would never have gone to them had
they not been expelled from the colony trade。 In those other
branches of trade it has diminished the competition of British
capital； and thereby raised the rate of British profit higher
than it otherwise would have been。 On the contrary； it has
increased the competition of foreign capitals； and thereby sunk
the rate of foreign profit lower than it otherwise would have
been。 Both in the one way and in the other it must evidently have
subjected Great Britain to a relative disadvantage in all those
other branches of trade。
The colony trade； however； it may perhaps be said； is more
advantageous to Great Britain than any other； and the monopoly；
by forcing into that trade a greater proportion of the capital of
Great Britain than what would otherwise have gone to it； has
turned that capital into an employment more advantageous to the
country than any other which it could have found。
The most advantageous employment of any capital to the
country to which it belongs is that which maintains there the
greatest quantity of productive labour； and increases the most
the annual produce of the land and labour of that country。 But
the quantity of productive labour which any capital employed in
the foreign trade of consumption can maintain is exactly in
proportion； it has been shown in the second book； to the
frequency of its returns。 A capital of a thousand pounds； for
example； employed in a foreign trade of consumption； of which the
returns are made regularly once in the year； can keep in constant
employment； in the country to which it belongs； a quantity of
productive labour equal to what a thousand pounds can maintain
there for a year。 If the returns are made twice or thrice in the
year； it can keep in constant employment a quantity of productive
labour equal to what two or three thousand pounds can maintain
there for a year。 A foreign trade of consumption carried on with
a neighbouring country is； upon this account； in general more
advantageous than one carried on with a distant country； and for
the same reason a direct foreign trade of consumption； as it has
likewise been shown in the second book； is in general more
advantageous than a round…about one。
But the monopoly of the colony trade； so far as it has
operated upon the employment of the capital of Great Britain； has
in all cases forced some part of it from a foreign trade of
consumption carried on with a neighbouring； to one carried on
with a more distant country； and in many cases from a direct
foreign trade of consumption to a round…about one。
First； the monopoly of the colony trade has in all cases
forced some part of the capital of Great Britain from a foreign
trade of consumption carried on with a neighbouring to one
carried on with a more distant country。
It has； in all cases； forced some part of that capital from
the trade with Europe； and with the countries which lie round the
Mediterranean Sea； to that with the more distant regions of
America and the West Indies； from which the returns are
necessarily less frequent； not only on account of the greater
distance； but on account of the peculiar circumstances of those
countries。 New colonies； it has already been observed； are always
understocked。 Their capital is always much less than what they
could employ with great profit and advantage in the improvement
and cultivation of their land。 They have a constant demand；
therefore； for more capital than they have of their own； and； in
order to supply the deficiency of their own； they endeavour to
borrow as much as they can of the mother country； to whom they
are； therefore； always in debt。 The most common way in which the
colonists contract this debt is not by borrowing upon bond of the
rich people of the mother country； though they sometimes do this
too； but by running as much in arrear to their correspondents；
who supply them with goods from Europe； as those correspondents
will allow them。 Their annual returns frequently do not amount to
more than a third； and sometimes not to so great a proportion of
what they owe。 The whole capital； therefore； which their
correspondents advance to them is seldom returned to Britain in
less than three； and sometimes not in less than four or five
years。 But a British capital of a thousand pounds； for example；
which is returned to Great Britain only once in five years； can
keep in constant employment only one…fifth part of the British
industry which it could maintain if the whole was returned once
in the year； and； instead of the quantity of industry which a
thousand pounds could maintain for a year； can keep in constant
employment the quantity only which two hundred pounds can
maintain for a year。 The planter； no doubt； by the high price
which he pays for the goods from Europe； by the interest upon the
bills which he grants at distant dates； and by the commission
upon the renewal of those which he grants at near dates； makes
up； and probably more than makes up； all the loss which his
correspondent can sustain by this delay。 But though he may make
up the loss of his correspondent； he cannot make up that of Great
Britain。 In a trade of which the returns are very distant； the
profit of the merchant may be as great or greater than in one in
which they are very frequent and near； but the advantage of the
country in which he resides； the quantity of productive labour
constantly maintained there； the annual produce of the land and
labour must always be much less。 That the returns of the trade to
America； and still more those of that to the West Indies are； in
general； not only more distant but more irregular； and more
uncertain too； than those of the trade to any part of Europe； or
even of the countries which lie round the Mediterranean Sea； will
readily be allowed； I imagine； by everybody who has any
experience of those different branches of trade。
Secondly； the monopoly of the colony trade has； in many
cases； forced some part of the capital of Great Britain from a
direct foreign trade of consumption into a round…about one。
Among the enumerated commodities which can be sent to no
other market but Great Britain； there are several of which the
quantity exceeds very much the consumption of Great Britain； and
of which a part； therefore； must be exported to other countries。
But this cannot be done without forcing some part of the capital
of Great Britain into a round…about foreign trade of consumption。
Maryland and Virginia； for example； send annually to Great
Britain upwards of ninety…six thousand hogsheads of tobacco； and
the consumption of Great Britain is said not to exceed fourteen
thousand。 Upwards of eighty…two thousand hogsheads； therefore；
must be exported to other countries； to France； to Holland； and
to the countries which lie round the Baltic and Mediterranean
Seas。 But that part of the capital of Great Britain which brings
those eighty…two thousand hogsheads to Great Britain； which
re…exports them from thence to those other countries； and which
brings back from those other countries to Great Britain either
goods or money in return； is employed in a round…about foreign
trade of consumption； and is necessarily forced into this
employment in order to dispose of this great surplus。 If we would
compute in how many years the whole of this capital is likely to
come back to Great Britain； we must add to the distance of the
American returns that of the returns from those other countries。
If； in the direct foreign trade of consumption which we carry on
with America； the whole capital employed frequently does not come
back in less than three or four years； the whole capital employed
in this round…about one is not likely to come back in less than
four or five。 If the one can keep in constant employment but a
third or a fourth part of the domestic industry which could be
maintained by a capital returned once in the year； the other can
keep in constant employment but a fourth or fifth part of that
industry。 At some of the out…ports a credit is commonly given to
those foreign correspondents to whom they export their tobacco。
At the port of London； indeed； it is commonly sold for ready
money。 The rule is； Weigh and pay。 At the port of London；
therefore； the final returns of the whole round…about trade are
more distant than the returns from America by the time only which
the goods may lie unsold in the warehouse； where； however； they
may sometimes lie long enough。 But had not the colonies been
confined to the market of Great Britain for the sale of their
tobacco； very little more of it would probably have come to us
than what was necessary for the home consumption。 The goods which
Great Britain purchases at present for her own consumption with
the great surplus of tobacco which she exports to other
countries； she would in this case probably have purchased with
the immediate produce of her own industry； or with some part of
her own manufactures。 That produce； those manufactures； instead
of being almost entirely suited to one great market； as at
present； would probably have been fitted to a great number of
smaller markets。 Instead of one great round…about foreign trade
of consumption； Great Britain would probably have carried on a
great number of small direct foreign trades of the same kind。 On
account of the frequency of the returns； a part； and probably but
a small part； perhaps not above a third or a fourth of the
capital which at present carries on this great round…about trade
might have been sufficient to carry on all those small direct
ones； might have kept in constant employment an equal quantity of
British industry； and have equally supported the annual produce
of the land and labour of Great Britain。 All the purposes of this
trade being； in this manner； answered by a much smaller capital；
there would have been a large spare capital to apply to