exported again, either the whole or a part of 
this duty was sometimes given back upon such 
Bounties were given for the encouragement
either of some beginning manufactures, or of 
such sorts of industry of other kinds as were 
supposed to deserve particular favour. 
By advantageous treaties of commerce, particular 
privileges were procured in some foreign 
state for the goods and merchants of the 
country, beyond what were granted to those 
of other countries. 
By the establishment of colonies in distant 
countries, not only particular privileges, but 
a monopoly was frequently procured for the 
goods and merchants of the country which 
established them. 
The two sorts of restraints upon importation 
above mentioned, together with these four 
encouragements to exportation, constitute the 
six principal means by which the commercial 
system proposes to increase the quantity of 
gold and silver in any country, by turning the 
balance of trade in its favour. I shall consider 
each of them in a particular chapter, and, 
without taking much farther notice of their 
supposed tendency to bring money into the 
country, I shall examine chiefly what are 
likely to be the effects of each of them upon 
the annual produce of its industry. According 
as they tend either to increase or diminish 
the value of this annual produce, they 
must evidently tend either to increase or diminish 
the real wealth and revenue of the 
By restraining, either by high duties, or by 
absolute prohibitions, the importation of such 
goods from foreign countries as can be produced 
at home, the monopoly of the home 
market is more or less secured to the domestic 
industry employed in producing them. 
Thus the prohibition of importing either live 
cattle or salt provisions from foreign countries, 
secures to the graziers of Great Britain 
the monopoly of the home market for butcher's 
meat. The high duties upon the importation 
of corn, which, in times of moderate 
plenty, amount to a prohibition, give a like 
advantage to the growers of that commodity
The prohibition of the importation of foreign 
woollens is equally favourable to the woollen 
manufacturers. The silk manufacture, though 
altogether employed upon foreign materials
has lately obtained the same advantage. The 
linen manufacture has not yet obtained it, 
but is making great strides towards it. Many 
other sorts of manufactures have, in the same 
manner obtained in Great Britain, either altogether
or very nearly, a monopoly against 
their countrymen. The variety of goods, of 
which the importation into Great Britain is 
prohibited, either absolutely, or under certain 
circumstances, greatly exceeds what can easily 
be suspected by those who are not well 
acquainted with the laws of the customs
That this monopoly of the home market 
frequently gives great encouragement to that 
particular species of industry which enjoys it, 
and frequently turns towards that employment 
a greater share of both the labour and stock 
of the society than would otherwise have gone 
to it, cannot be doubted. But whether it 
tends either to increase the general industry 
of the society, or to give it the most advantageous 
direction, is not, perhaps, altogether 
so evident
The general industry of the society can 
never exceed what the capital of the society 
can employ. As the number of workmen 
that can be kept in employment by any particular 
person must bear a certain proportion 
to his capital, so the number of those 
that can be continually employed by all 
the members of a great society must bear
certain proportion to the whole capital of the 
society, and never can exceed that proportion
No regulation of commerce can increase the 
quantity of industry in any society beyond 
what its capital can maintain. It can only divert 
a part of it into a direction into which 
it might not otherwise have gone; and it is 
by no means certain that this artificial direction 
is likely to be more advantageous to the 
society, than that into which it would have 
gone of its own accord. 
Every individual is continually exerting 
himself to find out the most advantageous employment 
for whatever capital he can command
It is his own advantage, indeed, and 
not that of the society, which he has in view
But the study of his own advantage naturally
or rather necessarily, leads him to prefer that 
employment which is most advantageous to 
the society
First, every individual endeavours to employ 
his capital as near home as he can, and 
consequently as much as he can in the support 
of domestic industry, provided always 
that he can thereby obtain the ordinary, or not 
a great deal less than the ordinary profits of 
Thus, upon equal, or nearly equal profits
every wholesale merchant naturally prefers the 
home trade to the foreign trade of consumption
and the foreign trade of consumption to 
the carrying trade. In the home trade, his 
capital is never so long out of his sight as it 
frequently is in the foreign trade of consumption
He can know better the character and 
situation of the persons whom he trusts; and