they are in general industrious, sober
and thriving; as in many English, and in 
most Dutch towns. In those towns which are 
principally supported by the constant or occasional 
residence of a court, and in which the 
inferior ranks of people are chiefly maintained 
by the spending of revenue, they are in general 
idle, dissolute, and poor; as at Rome, 
Versailles, Compeigne, and Fontainbleau. If 
you except Rouen and Bourdeaux, there is 
little trade or industry in any of the parliament 
towns of France; and the inferior ranks 
of people, being chiefly maintained by the expense 
of the members of the courts of justice, 
and of those who come to plead before them, 
are in general idle and poor. The great 
trade of Rouen and Bourdeaux seems to be 
altogether the effect of their situation. Rouen 
is necessarily the entrepot of almost all the 
goods which are brought either from foreign 
countries, or from the maritime provinces of 
France, for the consumption of the great city 
of Paris. Bourdeaux is, in the same manner, 
the entrepot of the wines which grow upon 
the banks of the Garronne, and of the rivers 
which run into it, one of the richest wine 
countries in the world, and which seems to 
produce the wine fittest for exportation, or best 
suited to the taste of foreign nations. Such 
advantageous situations necessarily attract
great capital by the great employment which 
they afford it; and the employment of this capital 
is the cause of the industry of those two 
cities. In the other parliament towns of 
France, very little more capital seems to be 
employed than what is necessary for supplying 
their own consumption; that is, little 
more than the smallest capital which can be 
employed in them. The same thing may be 
said of Paris, Madrid, and Vienna. Of those 
three cities, Paris is by far the most industrious
but Paris itself is the principal market of 
all the manufactures established at Paris, and 
its own consumption is the principal object of 
all the trade which it carries on. London, 
Lisbon, and Copenhagen, are, perhaps, the 
only three cities in Europe, which are both 
the constant residence of a court, and can at 
the same time be considered as trading cities
or as cities which trade not only for their own 
consumption, but for that of other cities and 
countries. The situation of all the three is 
extremely advantageous, and naturally fits 
them to be the entrepots of a great part of the 
goods destined for the consumption of distant 
places. In a city where a great revenue is 
spent, to employ with advantage a capital for 
any other purpose than for supplying the consumption 
of that city, is probably more difficult 
than in one in which the inferior ranks of 
people have no other maintenance but what 
they derive from the employment of such a 
capital. The idleness of the greater part of 
the people who are maintained by the expense 
of revenue, corrupts, it is probable, the industry 
of those who ought to be maintained by 
the employment of capital, and renders it less 
advantageous to employ a capital there than in 
other places. There was little trade or industry 
in Edinburgh before the Union. When 
the Scotch parliament was no longer to be assembled 
in it, when it ceased to be the necessary 
residence of the principal nobility and 
gentry of Scotland, it became a city of some 
trade and industry. It still continues, however, 
to be the residence of the principal 
courts of justice in Scotland, of the boards of 
customs and excise, &c. A considerable revenue
therefore, still continues to be spent in 
it. In trade and industry, it is much inferior 
to Glasgow, of which the inhabitants are 
chiefly maintained by the employment of capital
The inhabitants of a large village, it 
has sometimes been observed, after having 
made considerable progress in manufactures
have become idle and poor, in consequence of 
a great lord's having taken up his residence in 
their neighbourhood
The proportion between capital and revenue
therefore, seems everywhere to regulate 
the proportion between industry and idleness
Wherever capital predominates, industry prevails
wherever revenue, idleness. Every increase 
or diminution of capital, therefore, naturally 
tends to increase or diminish the real 
quantity of industry, the number of productive 
hands, and consequently the exchangeable 
value of the annual produce of the land and 
labour of the country, the real wealth and revenue 
of all its inhabitants
Capitals are increased by parsimony, and 
diminished by prodigality and misconduct
Whatever a person saves from his revenue he 
adds to his capital, and either employs it himself 
in maintaining an additional number of 
productive hands, or enables some other person 
to do so, by lending it to him for an interest
that is, for a share of the profits. As the 
capital of an individual can be increased only 
by what he saves from his annual revenue or 
his annual gains, so the capital of a society
which is the same with that of all the individuals 
who compose it, can be increased only 
in the same manner
Parsimony, and not industry, is the immediate 
cause of the increase of capital. Industry
indeed, provides the subject which parsimony 
accumulates; but whatever industry 
might acquire, if parsimony did not save and 
store up, the capital would never be the 
Parsimony, by increasing the fund which is 
destined for the maintenance of productive 
hands, tends to increase the number of those 
hands whose labour adds to the value of the 
subject upon which it is bestowed. It tends, 
therefore, to increase the exchangeable value 
of the annual produce of the land and labour