it。 But by discouraging improvement； the monopoly necessarily
retards the natural increase of another great original source of
revenue； the rent of land。 By raising the rate of profit； too；
the monopoly necessarily keeps up the market rate of interest
higher than it otherwise would be。 But the price of land in
proportion to the rent which it affords； the number of years
purchase which is commonly paid for it； necessarily falls as the
rate of interest rises； and rises as the rate of interest falls。
The monopoly； therefore； hurts the interest of the landlord two
different ways； by retarding the natural increase； first； of his
rent； and secondly； of the price which he would get for his land
in proportion to the rent which it affords。
The monopoly indeed raises the rate of mercantile profit；
and thereby augments somewhat the gain of our merchants。 But as
it obstructs the natural increase of capital； it tends rather to
diminish than to increase the sum total of the revenue which the
inhabitants of the country derive from the profits of stock； a
small profit upon a great capital generally affording a greater
revenue than a great profit upon a small one。 The monopoly raises
the rate of profit； but it hinders the sum of profit from rising
so high as it otherwise would do。
All the original sources of revenue； the wages of labour；
the rent of land； and the profits of stock； the monopoly renders
much less abundant than they otherwise would be。 To promote the
little interest of one little order of men in one country； it
hurts the interest of all other orders of men in that country；
and of all men in all other countries。
It is solely by raising the ordinary rate of profit that the
monopoly either has proved or could prove advantageous to any one
particular order of men。 But besides all the bad effects to the
country in general； which have already been mentioned as
necessarily resulting from a high rate of profit； there is one
more fatal； perhaps； than all these put together； but which； if
we may judge from experience； is inseparably connected with it。
The high rate of profit seems everywhere to destroy that
parsimony which in other circumstances is natural to the
character of the merchant。 When profits are high that sober
virtue seems to be superfluous and expensive luxury to suit
better the affluence of his situation。 But the owners of the
great mercantile capitals are necessarily the leaders and
conductors of the whole industry of every nation； and their
example has a much greater influence upon the manners of the
whole industrious part of it than that of any other order of men。
If his employer is attentive and parsimonious； the workman is
very likely to be so too； but if the master is dissolute and
disorderly； the servant who shapes his work according to the
pattern which his master prescribes to him will shape his life
too according to the example which he sets him。 Accumulation is
thus prevented in the hands of all those who are naturally the
most disposed to accumulate； and the funds destined for the
maintenance of productive labour receive no augmentation from the
revenue of those who ought naturally to augment them the most。
The capital of the country； instead of increasing； gradually
dwindles away； and the quantity of productive labour maintained
in it grows every day less and less。 Have the exorbitant profits
of the merchants of Cadiz and Lisbon augmented the capital of
Spain and Portugal？ Have they alleviated the poverty； have they
promoted the industry of those two beggarly countries？ Such has
been the tone of mercantile expense in those two trading cities
that those exorbitant profits； far from augmenting the general
capital of the country； seem scarce to have been sufficient to
keep up the capitals upon which they were made。 Foreign capitals
are every day intruding themselves； if I may say so； more and
more into the trade of Cadiz and Lisbon。 It is to expel those
foreign capitals from a trade which their own grows every day
more and more insufficient for carrying on that the Spaniards and
Portuguese endeavour every day to straighten more and more the
galling bands of their absurd monopoly。 Compare the mercantile
manners of Cadiz and Lisbon with those of Amsterdam； and you will
be sensible how differently the conduct and character of
merchants are affected by the high and by the low profits of
stock。 The merchants of London； indeed； have not yet generally
become such magnificent lords as those of Cadiz and Lisbon； but
neither are they in general such attentive and parsimonious
burghers as those of Amsterdam。 They are supposed； however； many
of them； to be a good deal richer than the greater part of the
former； and not quite so rich as many of the latter。 But the rate
of their profit is commonly much lower than that of the former；
and a good deal higher than that of the latter。 Light come； light
go； says the proverb； and the ordinary tone of expense seems
everywhere to be regulated； not so much according to the real
ability of spending； as to the supposed facility of getting money
to spend。
It is thus that the single advantage which the monopoly
procures to a single order of men is in many different ways
hurtful to the general interest of the country。
To found a great empire for the sole purpose of raising up a
people of customers may at first sight appear a project fit only
for a nation of shopkeepers。 It is； however； a project altogether
unfit for a nation of shopkeepers； but extremely fit for a nation
whose government is influenced by shopkeepers。 Such statesmen；
and such statesmen only； are capable of fancying that they will
find some advantage in employing the blood and treasure of their
fellow…citizens to found and maintain such an empire。 Say to a
shopkeeper； 〃Buy me a good estate； and I shall always buy my
clothes at your shop； even though I should pay somewhat dearer
than what I can have them for at other shops〃； and you will not
find him very forward to embrace your proposal。 But should any
other person buy you such an estate； the shopkeeper would be much
obliged to your benefactor if he would enjoin you to buy all your
clothes at his shop。 England purchased for some of her subjects；
who found themselves uneasy at home； a great estate in a distant
country。 The price； indeed； was very small； and instead of thirty
years' purchase； the ordinary price of land in the present times；
it amounted to little more than the expense of the different
equipments which made the first discovery； reconnoitred the
coast； and took a fictitious possession of the country。 The land
was good and of great extent； and the cultivators having plenty
of good ground to work upon； and being for some time at liberty
to sell their produce where they pleased； became in the course of
little more than thirty or forty years （between 1620 and 1660） so
numerous and thriving a people that the shopkeepers and other
traders of England wished to secure to themselves the monopoly of
their custom。 Without pretending； therefore； that they had paid
any part； either of the original purchase…money； or of the
subsequent expense of improvement； they petitioned the Parliament
that the cultivators of America might for the future be confined
to their shop； first； for buying all the goods which they wanted
from Europe； and； secondly； for selling all such parts of their
own produce as those traders might find it convenient to buy。 For
they did not find it convenient to buy every part of it。 Some
parts of it imported into England might have interfered with some
of the trades which they themselves carried on at home。 Those
particular parts of it； therefore； they were willing that the
colonists should sell where they could… the farther off the
better； and upon that account purposed that their market should
be confined to the countries south of Cape Finisterre。 A clause
in the famous Act of Navigation established this truly shopkeeper
proposal into a law。
The maintenance of this monopoly has hitherto been the
principal； or more properly perhaps the sole end and purpose of
the dominion which Great Britain assumes over her colonies。 In
the exclusive trade； it is supposed； consists the great advantage
of provinces； which have never yet afforded either revenue or
military force for the support of the civil government； or the
defence of the mother country。 The monopoly is the principal
badge of their dependency； and it is the sole fruit which has
hitherto been gathered from that dependency。 Whatever expense
Great Britain has hitherto laid out in maintaining this
dependency has really been laid out in order to support this
monopoly。 The expense of the ordinary peace establishment of the
colonies amounted； before the commencement of the present
disturbances； to the pay of twenty regiments of foot； to the
expense of the artillery； stores； and extraordinary provisions
with which it was necessary to supply them； and to the expense of
a very considerable naval force which was constantly kept up； in
order to guard； from the smuggling vessels of other nations； the
immense coast of North America； and that of our West Indian
islands。 The whole expense of this peace establishment was a
charge upon the revenue of Great Britain； and was； at the same
time； the smallest part of what the dominion of the colonies has
cost the mother country。 If we would know the amount of the
whole； we must add to the annual expense of this peace
establishment the interest of the sums which； in consequence of
her considering her colonies as provinces subject to her
dominion； Great Britain has upon different occasions laid out
upon their defence。 We must add to it； in particular； the whole
expense of the late war； and a great part of that of the war
which preceded it。 The late war was altogether a colony quarrel；
and the whole expense of it； in whatever part of the world it may
have been laid out； whether in Germany or the East Indies； ought
justly to be stated to the account of the col