ships and sailors of that country； that part of the capital
employed in it which pays the freight is distributed among； and
puts into motion； a certain number of productive labourers of
that country。 Almost all nations that have had any considerable
share of the carrying trade have； in fact； carried it on in this
manner。 The trade itself has probably derived its name from it；
the people of such countries being the carriers to other
countries。 It does not； however； seem essential to the nature of
the trade that it should be so。 A Dutch merchant may； for
example； employ his capital in transacting the commerce of Poland
and Portugal； by carrying part of the surplus produce of the one
to the other； not in Dutch； but in British bottoms。 It may be
presumed that he actually does so upon some particular occasions。
It is upon this account； however； that the carrying trade has
been supposed peculiarly advantageous to such a country as Great
Britain； of which the defence and security depend upon the number
of its sailors and shipping。 But the same capital may employ as
many sailors and shipping； either in the foreign trade of
consumption； or even in the home trade； when carried on by
coasting vessels； as it could in the carrying trade。 The number
of sailors and shipping which any particular capital can employ
does not depend upon the nature of the trade； but partly upon the
bulk of the goods in proportion to their value； and partly upon
the distance of the ports between which they are to be carried；
chiefly upon the former of those two circumstances。 The coal
trade from Newcastle to London； for example； employs more
shipping than all the carrying trade of England； though the ports
are at no great distance。 To force； therefore； by extraordinary
encouragements； a larger share of the capital of any country into
the carrying trade than what would naturally go to it will not
always necessarily increase the shipping of that country。
The capital； therefore； employed in the home trade of any
country will generally give encouragement and support to a
greater quantity of productive labour in that country； and
increase the value of its annual produce more than an equal
capital employed in the foreign trade of consumption： and the
capital employed in this latter trade has in both these respects
a still greater advantage over an equal capital employed in the
carrying trade。 The riches； and so far as power depends upon
riches； the power of every country must always be in proportion
to the value of its annual produce； the fund from which all taxes
must ultimately be paid。 But the great object of the political
economy of every country is to increase the riches and power of
that country。 It ought； therefore； to give no preference nor
superior encouragement to the foreign trade of consumption above
the home trade； nor to the carrying trade above either of the
other two。 It ought neither to force nor to allure into either of
those two channels a greater share of the capital of the country
than what would naturally flow into them of its own accord。
When the produce of any particular branch of industry
exceeds what the demand of the country requires； the surplus must
be sent abroad and exchanged for something for which there is a
demand at home。 Without such exportation a part of the productive
labour of the country must cease； and the value of its annual
produce diminish。 The land and labour of Great Britain produce
generally more corn； woollens； and hardware than the demand of
the home market requires。 The surplus part of them； therefore；
must be sent abroad； and exchanged for something for which there
is a demand at home。 It is only by means of such exportation that
this surplus can acquire a value sufficient to compensate the
labour and expense of producing it。 The neighbourhood of the
sea…coast； and the banks of all navigable rivers； are
advantageous situations for industry； only because they
facilitate the exportation and exchange of such surplus produce
for something else which is more in demand there。
When the foreign goods which are thus purchased with the
surplus produce of domestic industry exceed the demand of the
home market； the surplus part of them must be sent abroad again
and exchanged for something more in demand at home。 About
ninety…six thousand hogsheads of tobacco are annually purchased
in Virginia and Maryland with a part of the surplus produce of
British industry。 But the demand of Great Britain does not
require； perhaps； more than fourteen thousand。 If the remaining
eighty…two thousand； therefore； could not be sent abroad and
exchanged for something more in demand at home； the importation
of them must cease immediately； and with it the productive labour
of all those inhabitants of Great Britain； who are at present
employed in preparing the goods with which these eighty…two
thousand hogsheads are annually purchased。 Those goods； which are
part of the produce of the land and labour of Great Britain；
having no market at home； and being deprived of that which they
had abroad； must cease to be produced。 The most round…about
foreign trade of consumption； therefore may； upon some occasions；
be as necessary for supporting the productive labour of the
country； and the value of its annual produce； as the most direct。
When the capital stock of any country is increased to such a
degree that it cannot be all employed in supplying the
consumption and supporting the productive labour of that
particular country； the surplus part of it naturally disgorges
itself into the carrying trade； and is employed in performing the
same offices to other countries。 The carrying trade is the
natural effect and symptom of great national wealth； but it does
not seem to be the natural cause of it。 Those statesmen who have
been disposed to favour it with particular encouragements seem to
have mistaken the effect and symptom for the cause。 Holland； in
proportion to the extent of the land and the number of its
inhabitants； by far the richest country in Europe； has；
accordingly； the greatest share of the carrying trade of Europe。
England； perhaps the second richest country of Europe； is
likewise supposed to have a considerable share of it； though what
commonly passes for the carrying trade of England will
frequently； perhaps； be found to be no more than a round…about
foreign trade of consumption。 Such are； in a great measure； the
trades which carry the goods of the East and West Indies； and of
America； to different European markets。 Those goods are generally
purchased either immediately with the produce of British
industry； or with something else which had been purchased with
that produce； and the final returns of those trades are generally
used or consumed in Great Britain。 The trade which is carried on
in British bottoms between the different ports of the
Mediterranean； and some trade of the same kind carried on by
British merchants between the different ports of India； make；
perhaps； the principal branches of what is properly the carrying
trade of Great Britain。
The extent of the home trade and of the capital which can be
employed in it； is necessarily limited by the value of the
surplus produce of all those distant places within the country
which have occasion to exchange their respective productions with
another： that of the foreign trade of consumption； by the value
of the surplus produce of the whole country and of what can be
purchased with it： that of the carrying trade by the value of the
surplus produce of all the different countries in the world。 Its
possible extent； therefore； is in a manner infinite in comparison
of that of the other two； and is capable of absorbing the
greatest capitals。
The consideration of his own private profit is the sole
motive which determines the owner of any capital to employ it
either in agriculture； in manufactures； or in some particular
branch of the wholesale or retail trade。 The different quantities
of productive labour which it may put into motion； and the
different values which it may add to the annual； produce of the
land and labour of the society； according as it is employed in
one or other of those different ways； never enter into his
thoughts。 In countries； therefore； where agriculture is the most
profitable of all employments； and farming and improving the most
direct roads to a splendid fortune； the capitals of individuals
will naturally be employed in the manner most advantageous to the
whole society。 The profits of agriculture； however； seem to have
no superiority over those of other employments in any part of
Europe。 Projectors； indeed； in every corner of it； have within
these few years amused the public with most magnificent accounts
of the profits to be made by the cultivation and improvement of
land。 Without entering into any particular discussion of their
calculations； a very simple observation may satisfy us that the
result of them must be false。 We see every day the most splendid
fortunes that have been acqu