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第65章 Part the Second (23)

Could the government of England destroy the commerce of all other nations, she would most effectually ruin her own.It is possible that a nation may be the carrier for the world, but she cannot be the merchant.She cannot be the seller and buyer of her own merchandise.The ability to buy must reside out of herself; and, therefore, the prosperity of any commercial nation is regulated by the prosperity of the rest.If they are poor she cannot be rich, and her condition, be what it may, is an index of the height of the commercial tide in other nations.That the principles of commerce, and its universal operation may be understood, without understanding the practice, is a position that reason will not deny; and it is on this ground only that I argue the subject.It is one thing in the counting-house, in the world it is another.With respect to its operation it must necessarily be contemplated as a reciprocal thing; that only one-half its powers resides within the nation, and that the whole is as effectually destroyed by the destroying the half that resides without, as if the destruction had been committed on that which is within; for neither can act without the other.When in the last, as well as in former wars, the commerce of England sunk, it was because the quantity was lessened everywhere; and it now rises, because commerce is in a rising state in every nation.If England, at this day, imports and exports more than at any former period, the nations with which she trades must necessarily do the same; her imports are their exports, and vice versa.There can be no such thing as a nation flourishing alone in commerce: she can only participate;and the destruction of it in any part must necessarily affect all.When, therefore, governments are at war, the attack is made upon a common stock of commerce, and the consequence is the same as if each had attacked his own.The present increase of commerce is not to be attributed to ministers, or to any political contrivances, but to its own natural operation in consequence of peace.The regular markets had been destroyed, the channels of trade broken up, the high road of the seas infested with robbers of every nation, and the attention of the world called to other objects.Those interruptions have ceased, and peace has restored the deranged condition of things to their proper order.*[25] It is worth remarking that every nation reckons the balance of trade in its own favour; and therefore something must be irregular in the common ideas upon this subject.The fact, however, is true, according to what is called a balance; and it is from this cause that commerce is universally supported.Every nation feels the advantage, or it would abandon the practice: but the deception lies in the mode of making up the accounts, and in attributing what are called profits to a wrong cause.Mr.Pitt has sometimes amused himself, by showing what he called a balance of trade from the custom-house books.This mode of calculating not only affords no rule that is true, but one that is false.In the first place, Every cargo that departs from the custom-house appears on the books as an export; and, according to the custom-house balance, the losses at sea, and by foreign failures, are all reckoned on the side of profit because they appear as exports.

Secondly, Because the importation by the smuggling trade does not appear on the custom-house books, to arrange against the exports.

No balance, therefore, as applying to superior advantages, can be drawn from these documents; and if we examine the natural operation of commerce, the idea is fallacious; and if true, would soon be injurious.The great support of commerce consists in the balance being a level of benefits among all nations.

Two merchants of different nations trading together, will both become rich, and each makes the balance in his own favour;consequently, they do not get rich of each other; and it is the same with respect to the nations in which they reside.The case must be, that each nation must get rich out of its own means, and increases that riches by something which it procures from another in exchange.

If a merchant in England sends an article of English manufacture abroad which costs him a shilling at home, and imports something which sells for two, he makes a balance of one shilling in his favour; but this is not gained out of the foreign nation or the foreign merchant, for he also does the same by the articles he receives, and neither has the advantage upon the other.The original value of the two articles in their proper countries was but two shillings; but by changing their places, they acquire a new idea of value, equal to double what they had first, and that increased value is equally divided.

There is no otherwise a balance on foreign than on domestic commerce.

The merchants of London and Newcastle trade on the same principles, as if they resided in different nations, and make their balances in the same manner: yet London does not get rich out of Newcastle, any more than Newcastle out of London: but coals, the merchandize of Newcastle, have an additional value at London, and London merchandize has the same at Newcastle.

Though the principle of all commerce is the same, the domestic, in a national view, is the part the most beneficial; because the whole of the advantages, an both sides, rests within the nation; whereas, in foreign commerce, it is only a participation of one-half.

The most unprofitable of all commerce is that connected with foreign dominion.To a few individuals it may be beneficial, merely because it is commerce; but to the nation it is a loss.The expense of maintaining dominion more than absorbs the profits of any trade.It does not increase the general quantity in the world, but operates to lessen it; and as a greater mass would be afloat by relinquishing dominion, the participation without the expense would be more valuable than a greater quantity with it.

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