the country。 In the midst of the most destructive foreign war；
therefore； the greater part of manufactures may frequently
flourish greatly； and； on the contrary； they may decline on the
return of the peace。 They may flourish amidst the ruin of their
country； and begin to decay upon the return of its prosperity。
The different state of many different branches of the British
manufactures during the late war； and for some time after the
peace； may serve as an illustration of what has been just now
said。
No foreign war of great expense or duration could
conveniently be carried on by the exportation of the rude produce
of the soil。 The expense of sending such a quantity of it to a
foreign country as might purchase the pay and provisions of an
army would be too great。 Few countries produce much more rude
produce than what is sufficient for the subsistence of their own
inhabitants。 To send abroad any great quantity of it； therefore；
would be to send abroad a part of the necessary subsistence of
the people。 It is otherwise with the exportation of manufactures。
The maintenance of the people employed in them is kept at home；
and only the surplus part of their work is exported。 Mr。 Hume
frequently takes notice of the inability of the ancient kings of
England to carry on； without interruption； any foreign war of
long duration。 The English； in those days； had nothing
wherewithal to purchase the pay and provisions of their armies in
foreign countries； but either the rude produce of the soil； of
which no considerable part could be spared from the home
consumption； or a few manufactures of the coarsest kind； of
which； as well as of the rude produce； the transportation was too
expensive。 This inability did not arise from the want of money；
but of the finer and more improved manufactures。 Buying and
selling was transacted by means of money in England then as well
as now。 The quantity of circulating money must have borne the
same proportion to the number and value of purchases and sales
usually transacted at that time； which it does to those
transacted at present； or rather it must have borne a greater
proportion； because there was then no paper； which now occupies a
great part of the employment of gold and silver。 Among nations to
whom commerce and manufactures are little known； the sovereign；
upon extraordinary occasions； can seldom draw any considerable
aid from his subjects； for reasons which shall be explained
hereafter。 It is in such countries； therefore； that he generally
endeavours to accumulate a treasure； as the only resource against
such emergencies。 Independent of this necessity； he is in such a
situation naturally disposed to the parsimony requisite for
accumulation。 In that simple state； the expense even of a
sovereign is not directed by the vanity which delights in the
gaudy finery of a court； but is employed in bounty to his
tenants； and hospitality to his retainers。 But bounty and
hospitality very seldom lead to extravagance； though vanity
almost always does。 Every Tartar chief； accordingly； has a
treasure。 The treasures of Mazepa； chief of the Cossacs in the
Ukraine； the famous ally of Charles the XII； are said to have
been very great。 The French kings of the Merovingian race all had
treasures。 When they divided their kingdom among their different
children； they divided their treasure too。 The Saxon princes； and
the first kings after the Conquest； seem likewise to have
accumulated treasures。 The first exploit of every new reign was
commonly to seize the treasure of the preceding king； as the most
essential measure for securing the succession。 The sovereigns of
improved and commercial countries are not under the same
necessity of accumulating treasures； because they can generally
draw from their subjects extraordinary aids upon extraordinary
occasions。 They are likewise less disposed to do so。 They
naturally； perhaps necessarily； follow the mode of the times； and
their expense comes to be regulated by the same extravagant
vanity which directs that of all the other great proprietors in
their dominions。 The insignificant pageantry of their court
becomes every day more brilliant； and the expense of it not only
prevents accumulation； but frequently encroaches upon the funds
destined for more necessary expenses。 What Dercyllidas said of
the court of Persia may be applied to that of several European
princes； that he saw there much splendour but little strength；
and many servants but few soldiers。
The importation of gold and silver is not the principal；
much less the sole benefit which a nation derives from its
foreign trade。 Between whatever places foreign trade is carried
on； they all of them derive two distinct benefits from it。 It
carries out that surplus part of the produce of their land and
labour for which there is no demand among them； and brings back
in return for it something else for which there is a demand。 It
gives a value to their superfluities； by exchanging them for
something else； which may satisfy a part of their wants； and
increase their enjoyments。 By means of it the narrowness of the
home market does not hinder the division of labour in any
particular branch of art or manufacture from being carried to the
highest perfection。 By opening a more extensive market for
whatever part of the produce of their labour may exceed the home
consumption； it encourages them to improve its productive powers；
and to augment its annual produce to the utmost； and thereby to
increase the real revenue and wealth of the society。 These great
and important services foreign trade is continually occupied in
performing to all the different countries between which it is
carried on。 They all derive great benefit from it； though that in
which the merchant resides generally derives the greatest； as he
is generally more employed in supplying the wants； and carrying
out the superfluities of his own； than of any other particular
country。 To import the gold and silver which may be wanted into
the countries which have no mines is； no doubt； a part of the
business of foreign commerce。 It is； however； a most
insignificant part of it。 A country which carried on foreign
trade merely upon this account could scarce have occasion to
freight a ship in a century。
It is not by the importation of gold and silver that the
discovery of America has enriched Europe。 By the abundance of the
American mines； those metals have become cheaper。 A service of
plate can now be purchased for about a third part of the corn； or
a third part of the labour； which it would have cost in the
fifteenth century。 With the same annual expense of labour and
commodities； Europe can annually purchase about three times the
quantity of plate which it could have purchased at that time。 But
when a commodity comes to be sold for a third part of what had
been its usual price； not only those who purchased it before can
purchase three times their former quantity； but it is brought
down to the level of a much greater number of purchasers； perhaps
to more than ten； perhaps to more than twenty times the former
number。 So that there may be in Europe at present not only more
than three times； but more than twenty or thirty times the
quantity of plate which would have been in it； even in its
present state of improvement； had the discovery of the American
mines never been made。 So far Europe has； no doubt； gained a real
conveniency； though surely a very trifling one。 The cheapness of
gold and silver renders those metals rather less fit for the
purposes of money than they were before。 In order to make the
same purchases； we must load ourselves with a greater quantity of
them； and carry about a shilling in our pocket where a groat
would have done before。 It is difficult to say which is most
trifling； this inconveniency or the opposite conveniency。 Neither
the one nor the other could have made any very essential change
in the state of Europe。 The discovery of America； however；
certainly made a most essential one。 By opening a new and
inexhaustible market to all the commodities of Europe； it gave
occasion to new divisions of labour and improvements of art；
which in the narrow circle of the ancient commerce； could never
have taken place for want of a market to take off the greater
part of their produce。 The productive powers of labour were
improved； and its produce increased in all the different
countries of Europe； and together with it the real revenue and
wealth of the inhabitants。 The commodities of Europe were almost
all new to America； and many of those of America were new to
Europe。 A new set of exchanges； therefore； began to take place
which had never been thought of before； and which should
naturally have proved as advantageous to the new； as it certainly
did to the old continent。 The savage injustice of the Europeans
rendered an event； which ought to have been beneficial to all；
ruinous and destructive to several of those unfortunate
countries。
The discovery of a passage to the East Indies by the Cape of
Good Hope； which happened much about the same time； opened
perhaps a still more extensive range to foreign commerce than
even that of America； notwithstanding the greater distance。 There
were but two nations in America in any respect superior to
savages； and these were destroyed almost as soon as discovered。
The rest were mere savages。 But the empires of China； Indostan；
Japan； as well as several others in the East Indies； without
having richer mines of gold or silver； were in every other
respect much richer； better cultivated； and more advanced in all
arts and manufactures than either Mexico or Peru； even though we
should credit； what plainly deserves no credit； the exaggerated
accounts of the Spanish writers concerning the ancient state of
those empires。 But rich and civilised nations can always exchange
to a much greater value with one another than with savages and
barbarians。 Europe； however； has hitherto derived much less
advantage from its commerce with the East Indies than