Wereindustryandfrugalityfoundtoprevailequallyineverypartofthesegreatpoliticalbodies，orwereluxuryandsuperfluousconsumptioneverywherecarriedtothesameheight，trademight，withoutanyhurt，bethrownentirelyopen。Itwouldthenceasetobeanobjectofastatesman’scareandconcern。Ontheotherhand，wereallnationsequallycarefultocheckeverybranchofunprofitablecommerce，ageneralstagnationoftradewouldsoonbebroughtabout。Manufactureswouldnomorebetheobjectoftraffic；everynationwouldsupplyitself，andnothingwouldbeeitherexportedorimported，butnaturalproductions。
Butasindustryandidleness，luxuryandfrugality，areconstantlychangingtheirbalancethroughoutthenationsofEurope，ablemerchantsmakeittheirbusinesstoinformthemselvesofthesefluctuations，andablestatesmenprofitofthediscoveryforthere-establishmentoftheirowncommerce；andwhentheyfindthatthiscannomorebecarriedonwiththemanufacturesorproduceoftheirowncountry，theyengagetheirmerchantstobecomecarriersfortheirneighbours，andbythesemeans，formasitwereathirdandlastentrenchment，which，whiletheycandefendit，willnotsuffertheirforeigntradetobequiteextinguished；because，bythislastexpedient，itmaycontinueforsometimetoincreasetheirnationalstock。Itisinordertocutoffeventhisresource，thatsomenationslaynotonlyimportationsunderrestraint，butalsotheimporters。Letsuchprecautionsbecarriedtoacertainlengthonallhands，andweshallseeanendtothewholesystemofforeigntrade，somuch*-la-mode，thatitappearstobecomemoreandmoretheobjectoftheattentionaswellasoftheimitationofallmodernstatesmen。
Chap。XXV
WhenarichNationfindsherForeignTradereducedtotheArticlesofNaturalProduce，whatisthebestPlantobefollowed？andwhataretheConsequencesofsuchaChangeofCircumstances？
Thereisnownomorequestionofatradingnation；thischaracterislost，themomentthereisastopputtotheexportofthelabourandingenuityofherpeople。
Thefirstobjectsofhercareshouldnowbetoincrease，byeverypossiblemeans，thequantityofhernaturalproduce；tobeasfrugalaspossibleintheconsumptionofit，andtoexportthesurplustothebestadvantage。
Ifshefindtheexportationofsubsistencegoingforward，whilesomeofherpeopleremaininwant，shemayrestassuredthatindustryissufferingfromsomeinternalvice；andthemostprobablecauseofsuchaneffectmaybeanunequalcompetitionbetweenthoseofthelowerclasses，whoworkforaphysicalnecessary。Thismustberemoved，andthestatesmanshouldneverrestuntilhehassetthebalanceofworkanddemandsofarright，astopreventthescaleofworkatleastfrompreponderating；forthisisthedoorbywhichmiserygetsinamongapeople。
Thepreponderationofthescaleofdemandwillnotnowbesohurtful；becausethisalterationofthebalancewillonlyraiseprices，acceleratecirculation，andkeeptheotherbalance，towit，thatofwealthofwhichweshalltreatinthefollowingchapter，inaconstantvibration，withoutdiminutionofthepublicstock。
Anotherobjectofastatesman’scareinthesesupposedcircumstances，istoprohibittheimportationofallwork，andeventhenaturalproduceofanyothercountryconducivetoluxury；foralthoughIhavesaid，thatsuperfluousconsumptioncandolittleharmwhentheinterestsofforeigntradedonotenterintothequestionsoastopreventexportation，byraisingpricesathome；andthoughtheimportationofforeignproduce，inexchangeforlikecommoditiesofnationalgrowth，donohurttoastatewithrespecttoherwealth；yetifsuchimportationbeanarticleofmeresuperfluity，Ithinkastatesmanshouldprudentlyitselfaproofofdiscourageit；becausethesearchaftersuperfluitiesisofaluxuriousturn，andIshouldwishtoseethisturnimprovedsoastopromotenationalpurposesonly，thatis，theaugmentationandsubsistenceofusefulinhabitants。
Letmeillustratethisbyanexample。Foreignwines，Ishallsuppose，become*-la-mode，asapartoftheluxuryofaneleganttable。Astatesmanbyhisexample，maydiscouragethis，byintroducingmanyotherarticlesofexpenseinentertainmentssufficienttocompensateit。Thefurnitureofapartmentsmayberenderedmoremagnificent，ornamentsoftheside-board，decorationofdesserts，newamusementsimmediatelyafterdinner，maybeintroduced，whichwouldhaveanairofrefinementanddelicacy。
Bysuchexampleshemayeasilysubstituteoneexpense，whichmaybecomeanationalimprovement，intheplaceofanother，wheretheluxuryproducesnosucheffect。Andwhenprodigalityandexpensehaveneitherthegoodeffectofgivingbreadtothepoor，norofacceleratingcirculationathomeinfavourofthepublic，Icanseenoreasonwhyastatesmanshouldinteresthimselffortheirsupport；andmuchless，whyaspeculativeperson，whoinvestigatesthemethodsonlyofmakingmankindhappybyrenderingmutualservicestoeachother，shouldstrainasubject，inordertofindargumentspropertomakeeithertheapologyorpanegyricofthevariousschemesofdissipation。
Ineednotadd，asarestrictionuponthisprincipleofdiscouragingtheimportationofforeigncommodities，thatwhensuchabranchoftradebecomesnecessarytobecarriedon，inordertoengageaneighbouringnationreciprocallytoconsumeofhome-superfluities；inthiscase，theluxuryoftheconsumersoftheforeignproducehasanevidenttendencytonationalimprovement。If，forexample，delicatewines，andrawsilk，beimportedasareturnforsaltherringsandrawhides，thesupportofsuchtradeisevidentlythemeansofmakingtherichconsumethesearticlesofhome-production，byconvertingthemintoburgundyandvelvet。
Theseconsiderationsregardtheaugmentationoratleastthepreservationofnationalwealth。Iftheyareattendedto，itishardlypossiblethatanypartofwhatisalreadyacquired，cangoabroad；andinthiscasethewholebalanceoftheexportationofnaturalproducebecomesclearagain。
Therearestillseveralthingstobeobservedwithregardtotheexportationofnaturalproduce。Sucharticlesasareingreatabundance，andarenotproducedinothercountries，aswinesinthesoutherncountriesofEurope，oughtalwaystobeexportedbythenatives，becauseconsiderableprofitsmustbemadeuponsuchatrade；andonsuchoccasions，apeopleoughttobewiseenoughtokeepsuchprofitsforthemselves。
Butifothernationswillnotreceivethem，unlesstheybeimportedbytheirownsubjects，thenthestatesmanmayimposeadutyuponexportation，whichisonewayofsharingtheprofitswiththecarriers。Alltheprecautionnecessary，inimposingthisduty，isnottoraiseitsohighastodiminishthedemand；nortogiveanencouragementtoaneighbouringnation，toenterintocompetitionforsuchabranchoftrade。
Neighbouringstateswhichfurnishthesamearticlesofnaturalproduce，regulate，commonly，thedutiesuponexportation，insuchamannerasnearlytocompensatealldifferenceswhichstrangersmayfind，betweentradingwithoneorwiththeother。
Ortheygrantparticularprivilegestothenationswithwhomtheyfinditmostfortheiradvantagetotrade。
Ifthenaturaladvantagesuponsucharticlesarelessconsiderable，nodutycanbeimposed。Exportationmaythenbeencouragedbygrantingstillgreaterprivilegestostrangersorothers，whomaypromotetheexportationatlittlecosttothestate。
If，inthelastplace，thenaturalproduceofacountrybecommontoothers，whereitisperhapsequallyplentiful，itwillbedifficulttoprocuretheexportationofit；andyetitmayhappen，thattoogreatanabundanceofitathomemayoccasioninconveniences。Inthiscase，thestatesmanmustgiveapremiumorbountyuponexportation，astheonlymethodofgettingridofasuperfluity，whichmaysomuchinfluencethewholemassofthecommodityproduced，astosinkthepriceoftheindustryofthoseemployedinit，belowthestandardoftheirphysicalnecessary。
Bygiving，therefore，thispremium，hewillsupportindustryinthisbranch；hewilltakenothingfromthenationalwealth；andtheexportation，whichtakesplaceinconsequenceofthebounty，willbecleargain。Thisisanuncommonoperationintrade，butithassointimateaconnectionwiththedoctrineoftaxes，andtheproperapplicationofpublicmoney，thatIwillpostponethefartherconsiderationofituntilIcometothesebranchesofmysubject；andtherather，becausethisbookisswellingbeyonditsdueproportion。
Ihavelittleoccasiontospeakofimportationsintoacountrywhichexportsnomanufactures。Therulingprincipleinsuchcases，istosuffernoimportationbutwhattendstoencouragetheexportationofthesurplusofnaturalproduce，andwhich，atthesametime，hasnotendencytorivalanybranchofdomesticindustry。Thusitismuchbetterforanortherncountrytopamperthetasteofherrichinhabitantswithwinesandspices，thantodiscourageagriculturebytheimportationofriceandforeigngrain；supposingthealternativeofferedtoherchoice，andtheoneaswellastheothertobethereturnsforherownsuperfluityexported。
Icomenexttotheconsiderationofherinlandtrade，andconsumptionofherownmanufactures。Herethereisnoquestionofeitheranincreaseordiminutionofherwealth，butmerelyofmakingitcirculateinthebestmannertokeepeverybodyemployed。Severalconsiderationsmusthereinfluenceourstatesman’sconduct，andadueregardmustbehadtoeveryoneofthem。Ishallreducethemtothreedifferentheads，andpasstheminreviewverycursorily，aswehavealreadysufficientlyexplainedtheprinciplesuponwhichtheydepend。
First，Toregulateconsumptionandtheprogressofluxury，inproportiontothehandswhicharefoundtosupplythem。
Secondly，Toregulatethemultiplicationofinhabitantsaccordingtotheextentofthefertilityofthesoil。Thesetwoconsiderationsmustconstantlygohandinhand。
Solong，therefore，asthestatesmanfindshiscountrystillcapableofimprovement，solongmayheencourageademandforwork，andevencountenancenewbranchesofsuperfluousconsumption；sincetheequivalenttobegivenforthemmustofnecessityproveanencouragementtoagriculture。Butwheneverthecountrybecomesthoroughlycultivatedandpeopledtothefullproportionofitsownproduce，acheckmustbeputtomultiplication，thatis，toluxury，otherwisemiseryanddepopulationwillfollow；unlessindeedwesuppose，thatnumbersoughttobesupportedevenattheexpenceofnationalwealth；thefatalconsequencesofwhichwehavealreadypointedout。
Thirdly，Heshouldregulatethedistributionoftheclassesofhispeople，accordingtothepoliticalsituationofthecountry。
Thisisthemostcomplicatedcaseofall。Itwouldbeimprudent，forexample，inaverysmallstatesituatedonthecontinent，todistributeallitsinhabitantsintoproducersandconsumers，aswehavecalledthemonseveraloccasions；thatis，intothosewholiveuponarevenuealreadyacquired，andthosewhoareconstantlyemployedinacquiringonebysupplyingthewantsoftheother。Theremustbeathirdclass；towit，thosewhoaremaintainedandtakencareofattheexpenseofthewholecommunity，inordertoserveasadefence。Thissetofmengivenorealequivalentforwhattheyreceive；thatistosay，nonewhichcancirculateorpassfromhandtohand；butstilltheyareusefullyemployedasmembersofasocietymutuallytiedtogetherbythebandofreciprocaldependence。Herenoviceisimplied；
butatthesametime，thestatesmanmustattendtotheconsequencesofsuchadistributionofclasses。
Thericheranystateis，themoreithastofearfromitsneighbours；consequently，thegreaterproportionoftheinhabitantsmustbemaintainedforitsdefence，attheexpenseoftheindustryoftheotherinhabitants。Thismustdiminishthenumberoffreehandsemployedinmanufactures，andinsupplyingarticlesofconsumption:consequently，itwouldbeimprudenttoencouragetheprogressofluxury，whilepublicsafetycallsforadiminutionofthehandswhichmustsupplyit。Ifinsuchcircumstancesluxurydonotsufferacheck，demandwillriseabovetheproperstandard；livingwillbecomedearerdaily，priceswillrise，andtheywillproveanobstacletotherecoveryofforeigntrade；anobjectofwhichaprudentstatesmanwillneverlosesightforamoment。
Itisfortheseandothersuchconsiderations，thatmanysmallstatesarefoundtofortifytheircapital；tokeepabodyofsoldiersinconstantpay，bearingagreatproportiontothenumberoftheinhabitants；toformarsenalswellstoredwithartillery，andtoinstitutesumptuarylawsandotherregulationspropertocheckluxury。Nothingissowiseineveryrespect！
Theirterritorycannotbeextendednorimproved，norcantheirinhabitantsbeaugmented，butattheexpenceoftheirwealth；forsuchasgaintheirlivelihoodattheexpenceofstrangers，areatpresentoutofthequestion。Weretheirowncitizensthereforepermitted，outoftheabundanceoftheirwealth，togivebreadtoasmanyworkmenastheirextravagancecouldmaintain，thepublicstockwouldbeconstantlydiminishing，inproportiontotheforeignsubsistenceimportedforthesesupernumeraries，andpaidforattheexpenceoftheluxurious；whichwouldbejustsomuchsquanderedoutofthegeneralwealth。
Inotherstateswhichareextended，powerfulbymeansofwealth，andstrongbynatureandsituation，whosesafetyisconnectedwiththegeneralsystemofEuropeanpolitics，whichsecuresthemagainstconquest；suchasSpain，France，GreatBritain，&c。theprogressofluxurydoeslittleharmastheseterritoriesarestillcapableofinfiniteimprovementsprovideditdoesnotdescendtothelowerclassesofthepeople。
Itoughttobetheparticularcareofastatesmantocheckitsprogressthere，otherwisetherewillbesmallhopesofeverrecoveringforeigntrade。Whereas，ifthelowerclassesofapeoplecontinuefrugalandindustrious，fromtheseverycircumstancestrademayopenanew，andberecoveredbydegrees，inproportionasluxurycomestogetfootinginothernations，wherethecommonpeoplearelesslaboriousandfrugal。
Luxury，amongthosewholiveuponarevenuealreadygot，andwho，bytheirrankinthestate，arenotcalculatedforindustry，hasthegoodeffectofaffordingbreadtothosewhosupplythem；
buttherenevercanbeanyadvantageinhavingluxuryintroducedamongthelowerclasses，becauseitisthenameanonlyofrenderingtheirsubsistencemorechargeable，andconsequentlymoreprecarious。
Havingthusbrieflylaidtogethertheprincipalobjectsofastatesman’scare，uponthecessationoftheforeigntradeofhispeople，Ishallfinishmychapter，bypointingoutsomegeneralconsequencesrelativetothespirit，government，andmannersofapeople，whichreasonandexperienceshewtobenaturallyconnectedwithsucharevolution。
Nothingismorecertainthanthatthespiritofanationchangesaccordingtocircumstances。Whileforeigntradeflourishes，themindsofthemoniedpeopleareturnedtowardsgain。Money，insuchhands，isgenerallyemployedtoprocuremore，nottopurchaseinstrumentsofluxury；exceptfortheconsumptionofthoseprodigalstrangerswhoaretherebybecomingdailypoorer。Itisthisdesireofbecomingrich，whichproducesfrugality。Amaniscommonlyfrugalwhileheismakingafortune；
anotherverycommonlybecomesextravagantintheenjoymentofit；
justsowoulditbewithnations，wereawisestatesmannevertointerpose。
When，bythecessationofforeigntrade，themercantilepartofanationfindthemselvescutofffromtheprofitstheyusedtodrawfromstrangers；andontheotherhand，perceivethebarriersofthenationgraduallyshuttingagainsteveryarticleofunprofitablecorrespondence，theybegintowithdrawtheirstocksfromtrade，andseektoplacethemwithinthecountry。Thismoneyisfrequentlylenttolandedmen，hithertolivingwithinbounds，fortwomostsubstantialreasons。First，becausetherewaslittlemoneytobeborrowed，fromthehighrateofinterest，owingtothegreatprofitsonforeigntrade；andbecausethenationalstockwasthenonlyforming。Thesecond，becausethetasteofthetimeswasfrugality。Butwhenoncethemoneyusuallyemployedinbuyinguploadsofworkfortheforeignmarkets，comestofallintothehandsoflandedmen，theybegintoacquireatasteforluxury。Thistasteissoonimprovedandextendedbyaninfinityofarts，whichemploythehandsformerlytakenupinfurnishingthegoodsforexportation。Thusbydegreesweseearich，industrious，frugal，tradingnation，transformedintoarich，ingenious，luxurious，andpolitenation。
Asthestatesmanformerlykepthisattentionfixedonthepreservationofanequalbalancebetweenworkanddemand，andoneverybranchofcommerce，inordertopreventthecarryingoffanypartofthewealthalreadyacquired；hemustnowdirecthisattentiontowardstheeffectsofthedomesticoperationsofhiswealth。Hewasformerlyinterestedinitsaccumulation；hemustnowguardagainsttheconsequencesofitscirculation。
Whilethebulkofanation’srichesisinforeigntrade，theydonotcirculatewithinthecountry；theycirculatewithstrangers，againstwhomthebalanceisconstantlyfound。Inthiscase，therichestmaninastatemayappearamongthepoorestathome。Inforeigncountriesyoumayhearofthewealthofamerchant，whoisyournextdoorneighbourathome，andwho，fromhiswayofliving，youneverknewtobeworthashilling。Thecirculationofmoneyfromhome-consumptionwillthenbeverysmall；consequently，taxesmustbeverylow；consequently，governmentwillbepoor。
Sosoonasallthisloadofmoneywhichformerlywascontinuallygoingbackwardsandforwards，andscarcelypenetratedintothecountry，istakenoutofforeigntrade，andthrownintodomesticcirculation，anewsceneopens。
Everyonenowbeginstoappearrich。Thatwealthwhichformerlymadetheadmirationofforeigners，nowastonishestheproprietorsthemselves。Theuseofmoney，formerly，wastomakemoreofit:theuseofmoneynow，istogiveitinexchangeforthoseorsuchlikecommodities，whichwerethenconsumedbystrangersonly。
Itisthisrevolutioninthespiritofapeople，whichrenderstheconsiderationofthebalanceoftheirwealthanobjectofthegreatestpoliticalconcern:becauseupontheconstantfluctuationofit，amongtheseveralclassesofinhabitants，islaidthefoundationofpublicopulence。
Governmentmustconstantlyberespected，feared，andobeyedbythepeoplegoverned；consequently，itmustbepowerful，anditspowermustbeofanatureanalogoustothatofthesubjects。
Ifyousupposeagreatauthorityvestedinthegrandeesofakingdom，inconsequenceofthenumberanddependenceoftheirvassals，thecrownmusthavestillamorepowerfulvassalageatitscommand:iftheyarepowerfulbyriches，thecrownmustberich。Withoutpreservingthisjustbalance，nogovernmentcansubsist。Allpowerconsistsinmen，orinmoney。
Ifuponthecessationofforeigntradewesupposeavastquantityofwealththrownintodomesticcirculation，thestatesmanmustfollownewmaxims。Hemustpromotethecirculationofitsoastofilluptheblankofforeignconsumption，andpreservealltheindustriouswhohaveenrichedhim。Thequickerthecirculationisfoundtobe，thebetteropportunitywilltheindustrioushaveofbecomingrichspeedily；andtheidleandextravagantwillbecomethemorequicklypoor。Anotherconsequenceequallycertainis，thatthequickerthecirculationbe，thesoonerwillwealthbecomeequallydivided；andthemoreequallyitbedivided，themoreequalitywillbefoundinpower。
Fromtheseprinciplesitwillfollow，thatuponsucharevolutionofnationalcircumstances，apopulargovernmentmayveryprobablytakeplace，ifthestatesmandonottakepropercaretopreventit。
Thismaybeaccomplishedbytheimpositionoftaxes，andthesemaybedifferentlylaidon，accordingtothespiritofthegovernment。
Bytaxesastatesmanisenriched，andbymeansofhiswealth，heisenabledtokeephissubjectsinawe，andtopreservehisdignityandconsideration。
Bythedistributionoftaxes，andmanneroflevyingthem，thepoweristhrownintosuchhandsasthespiritoftheconstitutionrequiresitshouldbefoundin。Aretheyimposedinamonarchy，whereeverymanistaughttotrembleattheKing’sname，thegreatmenwillbemaderichbyhisbounty，andthelowerclasseswillbeloadedandkeptpoor；thattheymay，oneasierterms，beengagedtofillthosearmieswhichthePrinceentertainstosupporthisauthorityathome，andhisinfluenceabroad。
Hereindependentpeoplewillalwaysbelookeduponwithanevileye，andconsideredasrivalstothePrince，whooughttobetheonlyindependentpersoninthestate。
Inlimitedgovernments，wherethesovereignhasnotthesolepoweroftaxation，theywillbelaidonmoreequally，andlessarbitrarily；providedthetheoryofthemingeneralbewellunderstood。Hereeverymanmustknowwhatheistopay，andwhen；
andtheamountofthetaxmustbearaproportion，ononehand，totheexigenciesofthestate；andontheother，tothequantityofcirculationwhichtakesplaceuponthepaymentofit；thatis，amanmustnotbemadetopayallthestatecandemandofhimforayear，uponhismakingatrifling，thoughmostessential，acquisitionofanecessaryarticleofsubsistence。
IthinkIhaveobservedoneremarkabledifferenceinthepointofviewinlevyingtaxesincountries，wherethesetwoformsofgovernmentareestablished。
Underthepuremonarchy，thePrinceseemsjealous，asitwere，ofgrowingwealth，andthereforeimposestaxesuponpeoplewhoaregrowingricher。Underthelimitedgovernmenttheyarecalculatedchieflytoaffectthosewhofromricharegrowingpoorer。
Thusthemonarchimposesataxuponindustry；whereeveryoneisratedinproportiontothegainheissupposedtomakebyhisprofession。Thepoll-taxandtaille，arelikewiseproportionedtothesupposedopulenceofeveryoneliabletothem。These，withothersofthesamenature，arecalculatedasitisallegedtoestablishanequalityintheloadsupportedbythesubjects；bymakingtheindustrious，andmoney-gatherers，contributeinproportiontotheirgains，althoughthecapitalstockfromwhichtheseprofitsarisebeconcealedfromtheeyesofthepublic。
Inlimitedgovernments，impositionsaremoregenerallylaiduponconsumption。Theyencourageindustry，andleavethefullprofitsofittomakeupastockfortheindustriousperson。Whenthestockismade，thatis，whenitceasestogrow，itcommonlybeginstodecrease:thenumberofprudentpeople，wholivepreciselyupontheirincome，isverysmall。Itisthereforeuponthedissipationofwealth，inthehandsofprivatepeople，thatthestateisenriched。Thusthecarreertowardspovertyisonlyalittleabridged:hewhoisinthewayofspendinghisestatewillgetattheendofit，ifhislifebespared；andthereforethereisnoharmdonetohim，andmuchgooddonetothestate，inmakingapartofhiswealthcirculatethroughthepubliccoffers。
Theonlyprecautionnecessarytobetakenintaxingconsumption，is，torendertheimpositionsuniversallyequal，andtopreventtheiraffectingwhatispurelynecessary。orproducinganunequalcompetitionbetweenpeopleofthesamedenomination。
Suchimpositionshavestillaworseeffect，thanthosewhichfallupongrowingwealth:theypreventthepoorfrombeingabletosubsistthemselves。Afellow-feelingexcitescompassionamongthoseofthelowerclasses；theyendeavourtoassisteachother，andbythisoperation，likeapackofcards，setupbychildrenuponatable，thefirstthatisthrowndowntumblesdownanother，untilallarelaidflat；thatis，miseryinvadesthelowerclasses:morethanonehalfofapeople。
FromtheseprincipleswhichIhavebeenobligedtoanticipatewemaygatherthenecessityoftaxes，instateswhereforeigntradebeginstodecay。Withoutthem，thereisnosecurityforgovernmentagainstthepowerofdomesticwealth。Formerly，Princeslivedupontheirdomain，orpatrimonialestate。Whatdomainwouldbesufficient，atpresent，tosupporttheexpenceofgovernment？Andifgovernmentbenotabletoholdthereinsofeveryprincipleofactionwithinthestate，itisnogovernment，butanidol，thatis，anobjectofavoluntaryrespect。Thestatesman，therefore，mustholdthereins；andnotcommitthemanagementofthehorsestothediscretionofthosewhomheisemployedtoconduct。
Anotherconsequenceoftaxes，is，thatthemoreluxuryprevails，themorethestatebecomesrich:ifluxury，therefore，breedslicentiousness，itatthesametimeprovidesacurbagainstitsbadeffects。
Thisaugmentationofwealthproducesadoubleadvantagetothestatesman:for，besidestheincreaseofthepublicrevenue，theprogressofluxurychangingthebalanceofwealthconstantly，byremovingitfromtherichandextravagant，tothepoorandlaborious，rendersthosewhowereformerlyrich，andconsequentlypowerful，dependentuponhimfortheirsupport。Bytheacquisitionofsuchpersons，hegainsadditionalcredit，andsupportshisauthority。Thuswealthandpowercirculateandgohandinhand。
Itmaybeasked，howtheseprinciplescanbereconciledwiththevigourandstrengthcommonlyfoundinthegovernmentofflourishingtradingnations；forinsuchwemustsupposefewtaxes，consequentlyapoorandthereforeaweakgovernment；andarich，consequently，apowerfulpeople？
Ianswer，thatundersuchcircumstances，apeoplearecommonlytakenupwiththeirtrade，andarethereforepeaceable；
andastheirwealthdoesnotappear，beingconstantlyincirculationwithstrangers，theinfluenceofitisnotfeltathome。Whilewealthisemployedinpursuitoffarthergains，itcannotgivepower。consequently，astoallpoliticaleffectsathome，itisasifitdidnotexist；andthereforethereisnooccasionforthestatetobepossessedofawealththeyhavenooccasiontoemploy。Ifsuchanationbeattackedbyherenemies，shebecomeswealthyinaninstant；everyonecontributestowardoffthecommondanger:butif，onthecontrary，hertranquillitybedisturbedathome，therebelliongenerallyprovessuccessful；
whichisaconfirmationoftheprincipleslaiddown。Imightillustratethisfrommanyhistoricalremarks。Ishallsuggestonlytomyreader，toexaminethenatureoftheDutchrevolutions，andtocomparethesuccessofrebellionsinFranceandEngland，duringthelastcentury，withothersofafresherdate。HerethereadermayconsultthelearnedMrHume’sobservationuponthecommencementofthecivilwar。HistoryofGreatBritain，vol。i。p。325。
When，therefore，foreigntradehasceasedforsometime，andluxuryhasfilledupthevoid，aconsiderablepartofnationalwealthbeginstocirculatethroughthepublictreasury。Itisnaturalthenforgreatmentoresorttocourt，inordertopartakeoftheprofitsofgovernment；andforthestatesmantobefondofattachingsuchpeopletohisinterest，inordertobeaconstantcheckupontheturbulentspirit，whichnew-gottenwealthmayexciteinthemindsofonesetofpeople，anddesperatefortunesraiseinthoseofothers。
WhiletherewaslittlecirculationofmoneyinEurope，andfewtaxes，therewassmallprofittobemadeinthefollowingofKings。Theseweremoreformidabletotheirenemiesthanprofitabletotheirfriends。Thegreatmenofthestatelivedupontheirlands，andtheirgrandeurresembledthatofthePrince；itconsistedinthenumberanddependenceoftheirvassals；whogotaslittlebytheirLord，ashedidbytheKing。
Thepoorinthosedayswereplunderedofthelittlemoneytheyhad，bythegreat；nowthegreatarestrippedofthelargestsums，bythenumbersofpoor，whodemandfromthemonallhands，thejustequivalentfortheirindustry。
WhenPrincesfindtheirgreatmenallaboutthem，allasking，andalldependingfordifferentmarksoftheirfavour，theymayperceivethegreatchangeoftheirsituation，producedbyluxury，andaswiftcirculation。Thisrevolutionhasnotbeensudden，ithasbeentheworkofseveralcenturies；andIthinkwemaydistinguishthreedifferentstagesduringthisperiod。
Thefirstduringthegrandeurofthefeudalgovernment:thenthegreatbaronsweretobeconsulted，andengagedtoconcurintheKing’swars，becausetheywerethosewhopaidtheexpence，andsufferedthegreatestloss。Thesearecalledbysomethedaysofliberty；becausethestatesofeverycountryinEuropealmost，weretheninalltheirglory:theyarecalledsowithgreatreason，whenweconsidertheconditionofthegreatonly。
Inthosedaystherewereseldomanytroublesordisturbancesinthestate，seldomanycivilwarsleviedagainsttheKing，butsuchasweresupportedbythegrandees；who，eitherjealousoftheirownjustrights，orambitiousofacquiringothersattheexpenceofthecrown，usedtocompeltheirvassals，orengagethembytheconstitutionalinfluencetheyhadoverthem，todisturbthepublictranquillity。
Thesecondstage，Ithink，maybesaidtohavebegunwiththetimesofindustry，andthespringingupoftrade。SuchPrinces，whosesubjectsbegantoenrichthemselvesattheexpenceofothernations，found，ononeside，themeansoflimitingthepowerofthegreatlords，infavouroftheextensionofpublicliberty。
Thelords，ontheotherside，whentheywantedtodisturbthepublictranquillity，didnot，asformerly，vindicatetheirownprivileges，somuchastheycombinedwiththepeopleandmovedthemtorevolt，onpopularconsiderations。
Thismaybecalledtheperiodofconfusion，outofwhichhasarisencertaindeterminateformsofgovernment；somedrawingnearertothemonarchical，othersnearertothepopularform，accordingasthepowerofPrinceshasbeenmoreorlessabletosupportitself，duringtheshockoftherevolution，andtheoverturnofthebalancebetweenpublicandprivateopulence。
Thethirdandlaststage，ofwhichIshallspeakatpresent，maybefixedattheperiodwhentheproportionofthepublicrevenuebecameadequatetothemassofnationalwealth；whengenerallawsweremadetogovern，andnotthearbitrarypowerofthegreat。Thegrandeesnow，frombeingabridleonroyalauthority，areoftenfounddependentuponitfortheirsupport。
Theextraordinaryfluxofmoneyintothetreasury，enablesPrincestokeepsplendidcourts，whereeverykindofpleasureandamusementistobehad。Thisdrawstogethertherichmenofthestate。Theexampleofthesovereignpromptsthesetoanimitationofhisexpence，thisimitationincreasesconsumption，whichinitsturnaugmentstheKing’sincome，asitdiminishesthatofeveryotherperson。
Whenthegreatmenofakingdomhaveexhaustedtheirestates，inpayingaregularcourttothePrince，theyemploythecredittheyhaveacquiredwithhimduringthetimeoftheirdissipation，toobtainmarksofhisfavour，inordertosupportthemintheirdecline。Bythesetheyareenabledtoliveinasmuchstateasbefore。Theyfindnodifferenceintheirsituation；unlessperhapstheyshouldaccidentallyreflect，thatthefundwhichproducedtheirformeropulence，wasintheirownpossession；
whereasthatoftheirpresentwealthisinthehandsoftheirmaster。
Tocompensatethisdifference，theyaremadetoacquire，bythefavourofthecourt，advantageswhichtheynevercouldhaveenjoyedfromthelargestindependentfortune。
Theluxurioussystemofliving，everywhereintroduced，drawsthewealthytogether，eitherinthecapitalorinothergreatcitiesofthekingdom；whereeveryonecomparestheexpenceandfigurehemakes，withthatofotherswhoareabouthim。ApersonhonouredwiththeKing’sfavour，ofthesamequalitywithanother，acquires，fromthiscircumstance，agreatsuperiority。
Hecommands，Ishallsuppose，intheplace；heisthepersontowhompeoplemustapply，inordertoobtainfavours，perhapsjustice；heisadornedwithatitle，oroutwardmarkofdistinction，whichprocureshimrespectandconsideration；and，whichisstillmore，heisontheroadtoafartherelevation。Itrequiresagreatstockbothofphilosophyandgoodsense，nottobedazzledwiththeseadvantages。Independence，comparedwiththem，isbutanegativehappiness。Tobetrulyhappy，wemusthavepower，andhaveotherpeopletodependonus。
Chap。XXVI
OftheVibrationoftheBalanceofWealthbetweentheSubjectsofamodernStateWehavefrequentlymentionedthisbalance，asanobjectofgreatimportancetoastatesmanwhoisattheheadofaluxuriousnation；whichhavinglostitsforeigntrade，hassubstitutedintheplaceofit，anextensiveinlandcommerce。Thiswillsupplythelossoftheformer，sofar，asequallytoprovideemployment，and，consequently，subsistence，toeveryoneinclinedtobeindustrious；althoughitmustprovequiteineffectualforaugmentingthenationalwealthalreadyacquired。
IshallfirstexplainwhatImeanbythebalanceofwealthvibratingbetweenthemembersofsociety；fromwhichwillbeseenwhyIrankthisalsoamongthepoliticalbalancesofamodernstate。
Ithasbeenobservedinthebeginningofthenineteenthchapter，thatthegreatcharacteristicofwhatwecallliberty，isthecirculationofanadequateequivalentforeverythingtransferredandeveryserviceperformed。
BywealthIunderstandthecirculatingadequateequivalent。
Thedesiresoftherich，andthemeansofgratifyingthem，makethemcallfortheservicesofthepoor:thenecessitiesofthepoor，andtheirdesireofbecomingrich，makethemchearfullyanswerthesummons；theysubmittothehardestlabourandcomplywiththeinclinationsofthewealthy，forthesakeofanequivalentinmoney。
Thispermutationbetweenthetwoclasses，iswhatwecallcirculation；andtheeffectsproducedbyituponthepoliticalsituationoftheparties，attheprecisetimeofthecirculation，andtheconsequences，afteritiscompletelyeffected，explainwhatiscalledthebalanceofwealth。
Torenderourideasmorecorrect，letusconsiderthemoneyononeside，andtheprestations，asthecivilianscallthem，orperformancesofanykind，ontheother，asreciprocalequivalentsforoneother；andthenletusexaminethenatureofthoseprestationswhichtendtoputtheseequivalentsintocirculation；
thatistosay，whatarethethingswhichmoneycanpurchase。
Thesewemaydivide，withthelawyers，intocorporealandincorporeal。Thecorporealmayagainbedividedintoconsumableandinconsumable；andtheincorporealintopersonalservice，andwhatthelawyerscalljura，rightsinortoanythingwhatever。I
cannotfullyexplainmyselfwithoutthehelpofthisdistribution。
Letusnextconsidertheeffectsofthecirculationofmoney，asithasforitsobject，theacquisitionofthefourseveralspeciesherelaiddown。
First，ofinconsumablethings。Secondly，ofthingsconsumable。Thirdly，ofpersonalservice。Fourthly，ofrightsacquiredinortoanythingwhatever。
First，theonlythinginconsumableisthesurfaceoftheearth。Thismustnotbetakeninaphilosophical，andfarlessinachemicalsense。Athingisconsumed，sofarasitconcernsourinquiry，themomentitbecomesuseless，orevenwhenitislost。
Thesurfaceoftheearth，therefore，istheonlythinginconsumable；because，generallyspeaking，itnevercanceasetobeuseful，andnevercanbelost；itmaybechanged，buttheearthmustalwayshaveasurface。Whatissaidofthesurface，maybeunderstoodlikewiseofthatsmallpartofitsbodyaccessibletoman，forsupplyinghimwithwhathefindsusefulthere，astheproduceofmines。
Nexttotheearthitself，nothingislessconsumablethanhermetals，consequentlycoinmayveryproperlybeclassedundertheheadofthingsinconsumable；althoughitmaybelost，andevenwornoutincirculation。
Letusnowconsidertheeffectsofcirculationinthepurchaseofland。A，Ishallsuppose，hasapieceofland，andBhasonethousandpoundsweightofgoldcoin，whichthelawsofsocietyhaveconstitutedtobeanadequatecirculatingequivalentforeverythingvendible。Theyagreetomakeanexchange。Beforetheexchange，thebalanceoftheirwealthisequal；thecoinisworththeland，thelandisworththecoin；
theexchangemakesnoalteration，norhasittheeffectofmakinganyafterwards；thenewlandlordmayapplyhimselftotheimprovementofthesoil，themoneyedmantotheturningofhisthousandweightofgoldcointothebestadvantage；consequently，bythistransaction，novibrationofthebalanceseemstobeaffected。
Ifcoinitselfbetheobjectofsale，theconsequencesaremuchthesame。Ahasaguinea，Bhastwenty-oneshillings，theexchangetheymakeproducesnoalterationintheircircumstances。Thesameholdsgoodinotherspeciesofcirculation，suchasthetransmissionofmoneybyinheritance。
AdiesandleaveshismoneytoB；herethepossessorofthemoneychangesonlyhisname，perhapshisinclinations，andthatisall。Inlikemanner，apersonpayshisdebts，andwithdrawshisbond，orothersecurity；nobalanceisaffectedbythiscirculation，mattersstandbetweenthepartiesjustasbefore。
Thenature，therefore，ofcirculation，whenoneinconsumablecommodityisgivenforanother，is，thatitoperatesnovibrationinthebalanceofwealthbetweentheparties；because，inordertoproducethis，onemustremainricherthanhewasbefore，andtheotherproportionatelypoorer。
Secondly，underthesecondheadofalienation，towit，thatofconsumablecommodities，iscomprehendedeverythingcorporeal，exceptmoney，andland，whichmoneymaypurchase。Heretwothingsdeserveourattention。First，thesimplesubstance，ortheproductionofnature；theother，themodification，ortheworkofman。ThefirstIshallcalltheintrinsicworth，theother，theusefulvalue。Thevalueofthefirstmustalwaysbeestimatedaccordingtoitsusefulnessafterthemodificationithasreceivedisentirelydestroyed，andwhenbythenatureofthethingbothmustbeconsumedtogether，thenthetotalvalueisthesumofboth。Thevalueofthesecondmustbeestimatedaccordingtothelabourithascosttoproduceit。Anexamplewillmakethisplain。
Theintrinsicworthofanysilk，woollen，orlinenmanufacture，islessthantheprimitivevalueemployed，becauseitisrenderedalmostunserviceableforanyotherusebutthatforwhichthemanufactureisintended。Buttheintrinsicsubstanceofaloafofbreadlosesnothingbythemodification，becausethelastcannotbeconsumedwithoutthefirst。Inapieceofsilver-platecuriouslywrought，theintrinsicworthsubsistsentire，andindependentoftheusefulvalue，becauseitlosesnothingbythemodification。Theintrinsicvalue，therefore，isconstantlysomethingrealinitself；thelabouremployedinthemodificationrepresentaportionofaman’stime，whichhavingbeenusefullyemployed，hasgivenaformtosomesubstancewhichhasrenderedituseful，ornamental，or，inshort，fitforman，mediatelyorimmediately。
Letusnowapplythesedistinctionstothedifferentcircumstanceswhichattendconsumption，inordertoperceivetheireffects。
Theconsumptionoftheintrinsicvalueofanycommodity，takesplacethemomentthematteremployedbeginstodiminish，andiscompletedsosoonasitisconsumedtotally。Theconsumptionoftheusefulvalueproceedsinlikemanner，inproportionastheuseitisputtomakesthevalueofitdiminish，ordisappearaltogether。
Letusnexttakeanexample，andexaminetheeffectsofcirculationinthepurchaseofthingsconsumable，astothevibrationofthebalanceofwealth。Ahasapieceofcoin，B
hassomethingwhichhislabourhasproduced；theymakeanexchange。Ahithertohasneithergainedorlost，neitherhasB；butAbeginstomakeuseofwhathehadpurchasedwithhiscoin，andinusingitapartdisappears；thatmomentthebalancebeginstoturnagainsthim。B，ontheotherhand，exchangeshispieceofcoinwithanother，whomweshallcallC，andgetsinreturnapieceofwood；ifBputsthispieceofwoodintothefire，inproportionasthewoodconsumes，thebalanceisreturningtoitslevelbetweenAandB，andischanginginfavourofC。IfB，insteadofburninghiswood，makesabeamofitforsupportinghishouse，thebalancewillturnmoreslowly，becausethewoodisthenlongerinconsuming；butifhemakessomeusefulpieceoffurnitureofonepartofhiswood，hemaywarmhimselfwiththeremainingpartofit，andwiththecoinhegetsforhiswork，maybuyabeamforhishouse，andevenfoodtoeat。IfBstopsatthisperiod，andworksnomore，hewillfindhimselfjustuponalevelwithA，sosoonashisfireisburntout，hisbeamrotten，andhisfoodconsumed；andthewholebalancewillbefoundinfavourofC；providedthatbyhisindustryhehasbeenabletoprocureforhimselfallhisnecessaries，andpreservethepieceofcoinentire。Herethenisthespurtoindustry；towit，theacquisitionofthisbalance，whichgivesarelativesuperiorityevenamongthoseofthelowestclasses，anddeterminestheirrankaswellastheirpolitical-necessary，accordingtotheprincipleslaiddowninthetwenty-firstchapter。
Theessentialcharacteristicofthisvibrationofthebalanceofwealth，isthechangeintherelativeproportionofrichesbetweenindividuals。Butitmustbeobserved，thatunderthissecondspecieswearetoconsiderthechangeofproportionnofartherthanasitisproducedbythecirculationofafreeadequateequivalent，ofsuchanatureastobetransferabletoanotherhandwithoutanydiminution。Theconsumption，therefore，istheonlythingwhichmakesthebalanceturn。Whiletheconsumablecommodityremainsentireinthehandsofthepurchaser，hestillremainspossessorofthevalue，andmay，byinvertingtheoperation，returntothepossessionofthesamespeciesofwealthhehadbefore。
Hereitmaybeasked，ifmoneybeabsolutelynecessaryforproducingavibrationofthisbalancebythemeansofconsumption。Wemayeasilyconceivethegreatestinequalitybetweenthemembersofastate，withoutsupposingtheexistenceofmoney。Wemaysupposethepropertyoflandsunequallydivided，andagreatsurplusofsubsistencefoundinthehandsofoneindividual，whichmaybyhimbegiveninexchangefortheproduceofindustry。Undersuchcircumstancesthenitmaybeasked，ifwithoutmoneytherecanbesuchathingasavibrationinthebalanceofwealth？supposinginthiscasethetermwealthtoimply，ingeneral，themeansofpurchasingwhatevermancanperformorproduce。
Ianswer，thatnodoubtthebalancemaybesusceptibleofsmallvibrations，becauseevenintheexchangeofconsumablecommodities，theconsumptionmaygoonfasterononesidethanontheother；butIthink，unlesstheinconsumablefundofwealthwhichiswhatgivesthesuperiority，andwhichintheexamplealleged，wesupposedtobecoincanbemadetochangehandsaccordingtotheadequateproportionoftheconsumptionmade，wecannotsayproperly，thatavibrationcanbeoperatedinanyconsiderabledegree。
LetussupposeAtobeaproprietorofabitofland，andBanindustriousworkman；inorderthatBmaypurchasethelandofA，itmustbesupposedthatAisveryextravagant，andthatheinclinestoconsumeamuchgreaterproportionofworkthanwhatisequivalenttoallthesurplusproduceofhisland。
NowinordertosupplyAtothevalueofthelanditself，B
mustdistributehisworktomanydifferentpersons，andtakeinexchange，notsuchthingsashehasuseforhimself，butsuchasmaybefoundusefultoA。ButsosoonasAhaspaidtoB
thewholesurplusofhisland，whatfundofcreditwillhefindinordertoengageBtofurnishmore？Hecannotpayhiminland，becausethisfundisnotsusceptibleofcirculation；andeveryexpedientthatcouldbefallenupontokeepaccountsclearbetweenthem，isneithermoreorlessthantheintroductionofmoney，eitherrealorsymbolical。
Byrealmoney，ismeantwhatwecallcoin，oramodificationofthepreciousmetals，whichbygeneralagreementamongmen，andundertheauthorityofastate，carriesalongwithititsownintrinsicvalue。
Bysymbolicalmoney，Iunderstandwhatiscommonlycalledcredit，oranexpedientforkeepingaccountsofdebtandcreditbetweenparties，expressedinthosedenominationsofmoneywhicharerealizedinthecoin。Banknotes，creditinbank，bills，bonds，andmerchants’bookswherecreditisgivenandtakenaresomeofthemanyspeciesofcreditincludedunderthetermsymbolicalmoney。
Intheexamplebeforeus，wemaysupposethatAhavingnomorecirculatingequivalenttogiveBforhiswork，andbeingdesiroustoconsumeofittothevalueofhisland，shallagreetoissuenotesofhand，everyoneofwhichshallcarryinitarighttoanacreofland，toafruittree，totenyardsofthecourseofariver，&c。andthateverysuchparcelofproperty，shallbeesteemedatacertainproportionofwork。Thisagreementmade，hegoesonwithhisconsumption，andpaysregularly，andadequately，thevalueofwhathereceives；andinproportionasconsumptionproceedsonthesideofA，thebalanceofwealthmustturninfavourofB；whereaswhileAkepthisbitofland，andBhisfacultyofworkingupanequivalentforthesurplusofit，thebalancestoodeven:becausethelandononehand，andtheindustryontheother，producedadequateequivalentsforeachother。Theproduceofbothwasconsumable，andwassupposedtobeconsumed；whichoperationbeingover，thelandandtheindustryremainedasbefore，readytoproduceanew。
Herethenistheeffectofcreditorsymbolicalmoney。NowIask，whetherthenotesofhandgivenbyAtoB，donotcontainasrealavalue，asifhehadgivengoldorsilver？andfarther，whetheritappears，thatthecountrywheretheylivebecomesanyricherbythisinvention？doesthisnoteanymorethandeclare，whoistheproprietorofthevaluecontained？
Nothingissoeasyastoinventamoneywhichmaymakelandcirculateaswellashouses，andeveryotherthingwhichisofanaturetopreservethesamevalueduringthetimeofcirculation。
Whateverhasavalue，maychangehandsforanequivalent，andwheneverthisvalueisdetermined，andcannotvary，itmaybemadetocirculate，aswellasapoundofgoldorsilvermadeintocoin，andinthecirculationtoproduceavibrationinthebalanceofwealth。
Thosenations，therefore，whocirculatetheirmetalsonly，confineindustrytotheproportionofthemassofthem。Thosewhocancirculatetheirlands，theirhouses，theirmanufactures，naytheirpersonalservice，eventheirhours，mayproduceanencouragementforindustryfarbeyondwhatcouldbedonebymetalsonly。Andthismaybedone，whentheprogressofindustrydemandsacirculationbeyondthepowerofthemetalstoperform。
Thisanticipationofthesubjectofthefollowingbooks，isherethrowninmerelytoenablemyreadertoformtohimselfanideaoftheextentofthesubjectweareatpresentupon，andtohelphimtojudgetowhatlengthluxury，thatisconsumption，maybecarried。Since，bywhatwehavesaid，itappearsthatthereisnoimpossibilityforapeopletothrowthewholeintrinsicvalueoftheircountryintocirculation。Allmaybecutintopaper，asitwere，orstampeduponcopper，tin，oriron，andmadetopasscurrentasanadequateequivalentfortheproduceofindustry:
andastherearenoboundstobesettoconsumptionandprodigality，itmightbepossible，bysuchaninvention，inthecompassofayear，tocirculateanequivalentinconsumablecommoditiesproducedbyindustry，forthewholepropertyofthemostextendedandmostwealthykingdom。Thatthisisnochimericalsupposition，appearsplainbytheactivityofmanymoderngeniuses，who，inaninconsiderablespaceoftime，findmeanstogetthroughthegreatestfortunes；thatistosay，inourlanguage，theythrowthemintocirculationbythemeansofthesymbolicalmoneyofbonds，mortgages，andaccounts。Butdoesthisspeciesofcirculationincreasetherichesofthestate？
surelynomorethanitwouldincreasetherichesofFranceorEngland，tocarryalltheplateinthetwokingdomstobecoinedatthemint。Theuseofsymbolicalmoneyisnomorethantoenablethosewhohaveeffects，whichbytheirnaturecannotcirculateandwhich，by-the-bye，aretheprincipalcauseofinequality，togive，tothefullextentofalltheirworth，anadequatecirculatingequivalentfortheservicestheydemand。Inotherwords，itisamethodofmeltingdown，asitwere，theverycausesofinequality，andofrenderingfortunesequal。
ThepatronsthereforeofAgrarianlawsandofuniversalequality，insteadofcryingdownluxuryandsuperfluousconsumption，oughtrathertobecontrivingmethodsforrenderingthemmoreuniversal。Iftheyblamewhatiscalledperpetualsubstitutionsofpropertyorentailsmadebyparentsinfavouroftheirposterityasyetunborn，becausetheyareinsomerespectsprejudicialtoindustry；theyshouldnot，Ithink，findfaultwiththischarminglevellerdissipation，thenurseofindustry，andtheonlythingintendedtobepreventedbysuchentails。
Somehavepersuadedthemselves，thatanequalityoffortunewouldbanishluxuryandsuperfluousconsumption。Amongtherest，isM。deMontesquieu，anauthorforwhomIhavethehighestesteem，andwhohas，inthisrespect，beencopiedbymanyothers。
ButIneverfoundhisideasetinaclearlight。Equalityoffortunewouldcertainlychangethenatureofluxury，itwoulddiminishtheconsumptionofsome，andwouldaugmenttheconsumptionofothers；butwithoutmakingpeopleidle，itcouldneverdestroyindustryitself，andwhilethissubsistsinanequaldegree，theremustbethesamequantityofwhatitproducesregularlyconsumed。Fartherthispropositionnevercanbeadvanced，butonthesuppositionthattheluxuriousperson，thatis，theconsumer，mustbericherthanhewhosupplieshim。ThisI
cannotbyanymeansadmittobetrue。Mustthecarterwhodrinksapotofbeerbericherthantheale-houseman？Mustacountry-girl，whobuysabitofribband，bericherthanthehaberdasherwhosellsit？Mustthebeaubericherthanhistaylor？thetravellerthanthebankerwhogiveshimhismoney？
theclientthanthelawyer？thesickthanthephysician？
Howthendoesitappearthatequalitymustpreventluxury，unlesswesupposeeveryoneconfinedtoanabsolutephysical-necessary，andeitherdeprivedofthefacultyofcontriving，orofthepowerofacquiringanythingbeyondit。
ThisprincipleLycurgusalonelaiddownforthebasisofhisrepublic；andyetricheswereknowninSparta，aswellaspoverty。
Absoluteequality，defacto，isanabsurdsupposition，ifappliedtoahumansociety。Mustnotfrugalityamass，andprodigalitydissipate？Theseoppositedispositionsareofthemselvessufficienttodestroy，atonce，thebestregulationsforsupportingequality；and，whencarriedtoacertainlength，mustsubstituteinitsplaceasgreataninequalityasthequantityofcirculationiscapabletoproduce。Whatevercirculatesmaystagnate。WhywastheresogreatanequalityatSparta？becausetherewaslittlecirculation。WhyaretheCapucinsinastateofperfectequality？becauseamongthemthereisnocirculationatall。
Ifthereforesuchvariationsinthebalanceofwealthdependonthedifferenceofgeniusamongmen，whatschemecanbelaiddownforpreservingequality，betterthanthatofanunlimitedindustryequivalenttoanuniversalcirculationofallproperty，wherebydissipationmaycorrecttheeffectsofhoarding，andhoardingagaincorrectthoseofdissipation？Thisisthemosteffectualremedybothagainstpovertyandovergrownriches；
becausetherichandthepooraretherebyperpetuallymadetochangeconditions。Inthesealterationsintheirrespectivesituations，thepartieswhoarechangingbydegrees，mustsurelyintheirprogresstowardsatotalalteration，become，atonetimeorother，uponalevel，thatis，toanequality；asthebucketsinawellmeet，beforetheycanpassoneanother。
Thirdly，Thefirstspeciesofthingsincorporeal，whichmaybepurchasedwithmoney，ispersonalservice；suchasdailylabour，theattendanceofamenialservant，theadviceofaphysician，ofalawyer，theassistanceofskilfulpeopleinordertoacquireknowledge，theserviceofthoseemployedintheadministrationofpublicaffairsathomeandabroad，orforthedefenceofakingdombyseaorland；theresidenceofgreatmenatcourt，whodohonourtoprinces，andmaketheirauthorityrespected；andevenwhenmoneyisgiventoprocureamusement，pleasure，ordissipation，whennodurableandtransferablevalueisgiveninreturn。
Thereisakindofresemblancebetweenthespecieshereenumerated，andwhatwecalledtheusefulvalueinconsumablecommodities。Intheoneandtheother，thereisanequivalentgivenforaman’stimeusefullyemployed；butthedifferencebetweenthemliesinthis:thattheusefulvaluebeingsupported，orhavingforasubstratum，astheschoolmencallit，theintrinsicsubstance，istherebyrenderedpermanentandvendible；
whereashere，forwantofapermanentandtransferablesubstance，thepersonalservices，thoughproducingadvantageswhicharesufficientlyfelt，cannothoweverbetransferredfortheadequatepricetheycost。
Thecirculationproducedbythisthirdspeciesofacquisition，operatesaninstantaneousvibrationofthebalance。
Themomentthepersonalserviceisperformed，itmaybesaidtobeconsumed；andalthoughthepurchaserhasreceivedajustequivalentforthemoneygiven，andinsomecasesmayevenbetherebyputinasituationtoindemnifyhimselfofallhisexpence，byperformingthelikeservicestoothers，yeteverybodymustperceivethatsuchservicescannotproperlybeconsideredasacirculationoftheformer。
Fourthly，Theacquisitionoftheotherspeciesofthingsincorporeal，thatis，rights，produceslittlemorebalance，whenanadequatecirculatingequivalentisgivenforthem，thanthesaleofland；becausearightimpliesnomorethanapowertouse，thatis，toconsume；and，bytheuse，therightisnotdiminished:itisbalancedbytheuseofthemoney；themoneythereforeandtherightbeingbothpermanent，thereisnovibrationinthescales。Ofthisspeciesareallservitudes；thepurchasingofprivilegesorimmunities，eventhelendingofmoneyatinterest，mayherenotimproperlybeclassed。
Hereitwill，perhaps，bealleged，thatanexamplemaybegiven，wherethecreationofsucharight，thoughpurchasedwithanadequatecirculatingequivalent，producesthegreatestvibrationpossibleinthebalanceofwealth。Itiswhenastatecontractsdebts，andwhenthepubliccreditorsacquirearighttogeneralimpositionsonthepeopleforthepaymentoftheirinterest。ThisobjectionrequiresalittleexplanationinordertoberemovedandIhaveproposeditchieflyforthesakeofintroducinganillustrationofmysubject。
Ifitbesaid，thatinthisexampleavibrationinthebalanceofwealthwithinthestateisimplied，thenIsaythatitmusttakeplaceeither，first，betweenthecreditorsandthestate，or，secondly，betweenthestateandthepeople，or，thirdly，betweenthecreditorsandthepeople。But，First，Thecreditorsacquirenobalanceagainstthestatebecausetheyhavegivenoneinconsumablecommodityforanother；
towit，moneyforanannualincome。Themoneyisworththeincome，theincomeisworththemoney。Ifthereforeanychangeinthebalancecomesafterwardstotakeplace，itmustbeinconsequenceofotheroperationsquiteindependentofthistransaction。Butletussuppose，whichisbuttoofrequentlythecase，thatheremoneymustbeconsideredasaconsumablecommodity，becauseitisonlyborrowedinordertobespent。Inthislightdoesnotthecreditorseemtoacquireabalanceinhisfavouragainstthestate，sosoonasthemoneyisactuallyspent？
Ianswerinthenegative:becauseastate，byexpendingthemoneyborrowedremainswithrespecttothecreditorsjustaswealthyasbefore。Itisthepeoplewhopaytheinterest，forwhichthestategivestheminreturnnoadequatetransferableequivalent。
Secondly，Hereitisurged，thatthisbeingthecase，thestatehasacquiredabalanceagainstthepeopleaccordingtotheprinciplesabovelaiddown，whereitwassaid，thatuponoccasions，wheremoneyisgivenforpersonalservice，andwherenothingtransferableisgiveninreturn，thebalanceturnsinstantaneouslyinfavourofhimwhoreceivedthemoney。
TothisIanswer，thatastotheinterestpaidbythepeople，thestatedoesnotreceiveitforherself，butforthecreditors。
Thepersonalservicesarethensupposedtobealreadypaidfor，andthevibrationhastakenplacebeforetheinterestbecomesdue。Thereforethebalancedoesnotturnbetweenthestateandthepeople。
Inthelevyingoftaxeswhicharedestinedtopaytheinterestofmoneyalreadyspent，thepublicgivesnoadequateequivalentononehand；andontheother，itisnotenrichedwithrespecttothepeople，anymorethanitwasimpoverishedwithrespecttothecreditors，byspendingthemoneyborrowed；andsincethereisnoreciprocalchangeinthesituationofthetwoparties，Idonotseehowwecaninferanyvibrationinthebalanceofwealthbetweenthem。Weshallpresentlyseebetweenwhomthebalanceismadetovibrate。
Thirdly，Thebalancebetweenthecreditorsandthepeopleiswhatatfirstsightappearstobeprincipallyaffected；becausethefirstreceiveaconstantretributionfromthelatter，inconsequenceoftheloan。Butneitherisanytruevibrationfoundhere，eitheradequatetotheloan，ortothemoneyspent。First，becausethecreditorsthemselvesarepartofthepeoplewhocontributetowardsallimpositionsonconsumptions，whicharecommonlythemostregular，themostpermanent，themostgenerallyappropriatedforthepaymentoftheinterest。Secondly，becausethemoneyspentbythestate，ifspentathome，returnstootherhandsindeed，butstillreturnstothepeople，ofwhomweareherespeaking。And，thirdly，becausethereisnotransactionatallbetweenthecreditorsandthepeople。
Objection。Bythiswayofreasoningitwouldappear，thattheexhaustingofapeoplebytaxes，makesnovibrationinthebalanceoftheirwealth。
Answer。Ifthepeoplebeexhausted，itmustbebyenrichingstrangers。Thiscaseshouldatpresentbeexcluded，aswehavelaidasidetheconsiderationofforeignrelations。Butallowingthiscircumstancealsotobeimpliedintheobjectionsmade，I
agreethateverypennyofmoneysentoutofacountry，fornorealandpermanentequivalentreceivedinreturn，operatesavibrationinthewealthbetweennationandnation；butnonebetweensubjectandsubject。Tothisitisanswered，thatwhentaxesarehigh，manypeopleareruinedwhileothersareenriched:
thisoperatesavibration。Iallowit；butthenIreply，thatbytheverysuppositionineverysuchcase，themoneymustremainathome；whereasintheformer，itwassupposedtobeexpendedabroad。Nowwearenotatpresentexaminingtheeffectsofdebtsandtaxes，inchangingthebalancebetweenmanandman，butonlybetweenthethreecumulativeinterestsabovespecified，thestate，thepeopleandthecreditors。
Letmenowask，whatistheeffectoftaxesonthevibrationofthebalanceofwealthbetweenindividuals？
Ianswer，thatwhoeverpaysatax，appearstopayforapersonalservice。Hereceivesnocorporealequivalentwhichcanbealienatedbyhimforthesamevalue；andhewhoisemployedbythestate，andispaidwiththeproduceoftaxes，acquiresabalanceinhisfavouragainstthosewhopaythem。Whentheamountoftaxesgoesabroadforforeignservices，therecanbenoalterationuponthebalanceathome，ashasbeensaid；neitheristhereanywhenitremainsathome:thepeople，thatis，thewholenationtakentogether，andthecreditors，areasrichasbefore。
Letthissufficeatpresent，astotheeffectsofdebtsandtaxesuponthebalanceofnationalwealth。
Industryistheonlymethodofmakingwealthcirculate，soastochangeitsbalancebetweentheparties；allkindsofcirculationwhichproducenosuchchange，areforeigntothepresentpurpose。
Amandiesandleaveshiswealthtoanother，nobodylosesbythis，buthewhoisnomore；asecondpayshisdebts，neitherdebtor，orcreditorcanbesaidtochangecircumstancesbytheoperation。Amerchantbuysaquantityofmerchandizeforreadymoney，hetherebylosesnobalanceofhiswealth；itistruehehasgivenmoneyforconsumableeffects；butthebalancedoesnotoperateuntiltheconsumptiontakesplace，andasheisnotsupposedtobuyinordertoconsume，Irankthisbranchofcirculationamongthosewhichdonotinfluencethebalance。
Thuswefindtwodifferentkindsofcirculationinastate；
onewhichmakesthebalanceturn，andonewhichdoesnot。Theseobjectsareofnosmallconsequencetobeattendedtointherightimpositionoftaxes，asshall，initsproperplace，bemorefullyexplained。Atpresentitissufficienttoobserve，thatthepropertimeoflayingOntaxesisatthetimeofcirculation:
becausetheimpositionmaythenbealwaysexactlyproportionedtothesumcirculating；consequently，tothefacultiesofthepersonsseverallyinterested。
Inallexcises，ortaxesuponconsumption，itisthemoneyoftheconsumerwhichistaxed，intheinstantofthepayment；sothatheagainstwhomthebalanceistoturn，hastheadditionalloadtopay。Thisspeciesoftax，imposedatthetimeofcirculation，iswhatproducesthelargestsumstoastate。I
neverheardofaproperexpedientfortaxingthepersoninwhosefavourthebalanceistoturn，thoughfromtheprincipleswhichareafterwardstobelaiddown，wemayperhapsdiscoverone。
Asfortheotherspeciesofcirculation，wherethebalancedoesnotturn，itisnotsomuchthecustomtoimposeveryconsiderabletaxesuponit:therearehoweverseveralexamplestobemetwith，whichpointouthowtheymaybeimposed。Thecasualitiespaiduponthechangeofvassalsoruponthefalloflives，inleasesuponlandsinEngland；theconfirmationoftestamentsinScotland；investituresinGermany；thecenti閙edenier，thelodsetventes，andthecontrolupontheactsofnotariesinFrance；theemolumentsoftheRotainSpain，andinmanyRomanCatholiccountries，areofthisspecies。Uponthesameprinciple，taxesmoreorlessconsiderablemightbelaiduponeverybranchofthiskindofcirculation；forwhichpurpose，itwouldbehighlynecessarytofindoutalltheramificationsofit，byanalysingittothebottom，aswehavehithertorunthroughitverysuperficially。
Chap。XXVII
CirculationandtheBalanceofWealth，objectsworthyoftheattentionofamodernStatesmanHavingexplainedthenatureofcirculation，andofthisbalance，wearenexttopointouttheobjectsofastatesman’sattentionconcerningthem。
I。Heoughttoformtohimselfaclearanddistinctideaofthenature，properties，andeffectsofcirculation；awordfrequentlymadeuseofwithoutmuchmeaning，andinavagueandundeterminatesense。
Thetermcirculationis，perhaps，oneofthemostexpressiveinanylanguage，andisthereforeeasilyunderstood。Itrepresentsthesuccessivetransitionofmoney，ortransferablecommodities，fromhandtohand，andtheirreturn，asitwereinacircle，tothepointfromwhichtheysetout。Thisistheroughideawhicheveryone，whounderstandsthewordatall，mustformitsmeaning。Butastatesman’sperceptionsshouldbemoreaccurateaswellasmorecomplex。
Hemustcombinetheconsequenceswhichresultfromthissuccessivetransition，andattendtotheeffectsproducedbyit。
Hemustnotconsiderthemoneyonly，whichisapermanentvalue，passingfromhandtohand，butweightheconsequencesofthevarietyofconsumptionwhichitdrawsalongwithit，initsprogress。
BeforeaguineacantravelfromLondontoYork，itmaybethemeansofconsumingathousandtimesitsvalue，andasmuchmore，beforeitcanreturntoLondonagain。Everystoptheguineamakesinitscourse，marksawantofdesiretoconsume，inhimwhopossessesit，forthetime。If，therefore，inanycountry，therewerebutoneguineaincirculation，allconsumptionwouldstoporbarterwouldtakeplacethemomentitfellintothehandsofamiser。Thisleadsustothesecondobjectofastatesman’sattention。
II。Heoughtatalltimestomaintainajustproportionbetweentheproduceofindustry，andthequantityofcirculatingequivalent，inthehandsofhissubjects，forthepurchaseofit；
that，byasteadyandjudiciousadministration，hemayhaveitinhispoweratalltimes，eithertocheckprodigalityandhurtfulluxury，ortoextendindustryanddomesticconsumption，accordingasthecircumstancesofhispeopleshallrequiretheoneortheothercorrective，tobeappliedtothenaturalbentandspiritofthetimes。
Forthispurpose，hemustexaminethesituationofhiscountry，relativelytothreeobjects，viz。thepropensityoftherichtoconsume；thedispositionofthepoortobeindustrious；
andtheproportionofcirculatingmoney，withrespecttotheoneandtheother。
Ifthequantityofmoneyincirculationisbelowtheproportionofthetwofirst，industrywillneverbeabletoexertitself；becausetheequivalentinthehandsoftheconsumers，isthenbelowtheproportionoftheirdesirestoconsume，andofthoseoftheindustrioustoproduce。Letmeillustratethisbyafamiliarexampletakenfromapartyatquadrille。
When，ondealingthecards，everyoneputsinafishintothestake，accordingtotheoldEnglishfashion，averyfewfishesaresufficientforthecirculationofthegame:butwhenyouplaytheaces，theconsolationandthemultiplicationofbeastsaccordingtotheFrenchcustom，youmusthaveaboxwithcontracts，fishes，andcounters；soreducingalltothelowestdenomination，everyplayerhasoccasionforabovefivehundredmarks。Itisthereforeplain，thatthenumberofmarksoughttobeinproportiontothecirculationofthegame。Butatplay，asinastate，circumstancesrenderthiscirculationveryirregular。
Fortunemayrunsoequallyamongtheplayers，duringaconsiderabletime，thatnoneofthemmayhaveoccasiontopayawayabovethevalueofahundredcounters，andwhilethisequalitycontinues，therewillnotbefoundthesmallestinterruptioninthecirculation。Butletoneoftheplayershavearunofgoodluck，youwillsoonseethreeoftheboxesemptyandallthecirculatingmarksheapedupbeforethewinner。
Fortuneatquadrille，formsstagnationsofthecirculatingequivalent，asindustryandfrugalityformtheminastate。Atthisperiodofthegame，mustnottheplayersstop，ormusttheynotfalluponawayofdrawingbacktheirmarksintocirculation？
Iftheyborrowbackfromthewinner，thisrepresentsloan。Iftheybuybacktheirmarkswithmoneyfromtheirpurses，itrepresentswhatIcallthrowingsolidpropertyintocirculation。