if he should happen to be deceived, he knows 
better the laws of the country from which he 
must seek redress. In the carrying trade, the 
capital of the merchant is, as it were, divided 
between two foreign countries, and no part of 
it is ever necessarily brought home, or placed 
under his own immediate view and command
The capital which an Amsterdam merchant 
employs in carrying corn from Koningsberg 
to Lisbon, and fruit and wine from Lisbon 
to Koningsberg, must generally be the one 
half of it at Koningsberg, and the other half 
at Lisbon. No part of it need ever come to 
Amsterdam. The natural residence of such 
a merchant should either be at Koningsberg 
or Lisbon; and it can only be some very particular 
circumstances which can make him 
prefer the residence of Amsterdam. The uneasiness, 
however, which he feels at being separated 
so far from his capital, generally determines 
him to bring part both of the Koningsberg 
goods which he destines for the 
market of Lisbon, and of the Lisbon goods 
which he destines for that of Koningsberg, to 
Amsterdam; and though this necessarily subjects 
him to a double charge of loading and 
unloading as well as to the payment of some 
duties and customs, yet, for the sake of having 
some part of his capital always under his 
own view and command, he willingly submits 
to this extraordinary charge; and it is in this 
manner that every country which has any considerable 
share of the carrying trade, becomes 
always the emporium, or general market, for 
the goods of all the different countries whose 
trade it carries on. The merchant, in order 
to save a second loading and unloading, endeavours 
always to sell in the home market
as much of the goods of all those different 
countries as he can; and thus, so far as he 
can, to convert his carrying trade into a foreign 
trade of consumption. A merchant, in 
the same manner, who is engaged in the foreign 
trade of consumption, when he collects 
goods for foreign markets, will always be 
glad, upon equal or nearly equal profits, to 
sell as great a part of them at home as he can. 
He saves himself the risk and trouble of exportation, 
when, so far as he can, he thus converts 
his foreign trade of consumption into a 
home trade. Home is in this manner the 
centre, if I may say so, round which the capitals 
of the inhabitants of every country are 
continually circulating, and towards which 
they are always tending, though, by particular 
causes, they may sometimes be driven off and 
repelled from it towards more distant employments
But a capital employed in the home 
trade, it has already been shown, necessarily 
puts into motion a greater quantity of domestic 
industry, and gives revenue and employment 
to a greater number of the inhabitants 
of the country, than an equal capital employed 
in the foreign trade of consumption; and 
one employed in the foreign trade of consumption 
has the same advantage over an equal 
capital employed in the carrying trade. Upon 
equal, or only nearly equal profits, therefore, 
every individual naturally inclines to 
employ his capital in the manner in which it 
is likely to afford the greatest support to domestic 
industry, and to give revenue and employment 
to the greatest number of people of 
his own country
Secondly, every individual who employs his 
capital in the support of domestic industry
necessarily endeavours so to direct that industry
that its produce may be of the greatest 
possible value. 
The produce of industry is what it adds to 
the subject or materials upon which it is employed
In proportion as the value of this 
produce is great or small, so will likewise be 
the profits of the employer. But it is only 
for the sake of profit that any man employs
capital in the support of industry; and he 
will always, therefore, endeavour to employ it 
in the support of that industry of which the 
produce is likely to be of the greatest value, 
or to exchange for the greatest quantity either 
of money or of other goods. 
But the annual revenue of every society is 
always precisely equal to the exchangeable value 
of the whole annual produce of its industry, 
or rather is precisely the same thing 
with that exchangeable value. As every individual
therefore, endeavours as much as he 
can, both to employ his capital in the support 
of domestic industry, and so to direct that industry 
that its produce may be of the greatest 
value; every individual necessarily labours to 
render the annual revenue of the society as 
great as he can. He generally, indeed, neither 
intends to promote the public interest
nor knows how much he is promoting it. By 
preferring the support of domestic to that of 
foreign industry, he intends only his own security; 
and by directing that industry in such 
a manner as its produce may be of the greatest 
value, he intends only his own gain; and 
he is in this, as in many other cases, led by 
an invisible hand to promote an end which 
was no part of his intention. Nor is it always 
the worse for the society that it was no 
part of it. By pursuing his own interest, he 
frequently promotes that of the society more 
effectually than when he really intends to promote 
it. I have never known much good 
done by those who affected to trade for the 
public good. It is an affectation, indeed, not 
very common among merchants, and very few 
words need be employed in dissuading them 
from it. 
What is the species of domestic industry 
which his capital can employ, and of which 
the produce is likely to be of the greatest value, 
every individual, it is evident, can in his 
local situation judge much better than any 
statesman or lawgiver can do for him. The 
statesman, who should attempt to direct private