The existence of this manufacturing population, and the duty of providing for its wants, have constrained govern ments to alter the aim of their legislation. Formerly, in the real spirit of the mercantile system, they encouraged manufactures, in order to sell much to foreigners, and grow rich at their expense; now, perceiving that a prohi bitive system is every where adopted, or like to be adopted, they cannot any longer count on the custom of strangers, and therefore study to find, in their own kingdom, consu mers for their own workmen; in other words, to hccome isolated and sufficient for themselves. The system of policy at present, more or less strictly followed by all the nations of Europe, destroys all the advantages of commerce; it hinders each nation from profiting by the superiorities due to its climate, to its soil, to its situation, to the peculiar character of its people; it arms man against man, and breaks the tie which was destined to sooth national preju dices, and accelerate the civilization of the world.
According to the natural progress of increasing wealth, when capitals arc yet inconsiderable, it is certainly desira ble to direct them rather to some neighbouring branch of trade, than to one which is very remote; and as the -trade of exportation and importation gives foreigners one half of its profit, and the natives another, a country which has little capital may desire to employ it entirely in the trade of its interior, or for its own use; and the more so, be cause if the market is near the producer, the same capital will be several times renewed in a given period, whilst another capital, destined for a foreign market, will scarce ly accomplish a single renewal. But the capitalist's inte rest will always direct him with certainty, in such to do what suits the country best; because his profit is pro• portioned to the need there is of him, and consequently to the direction in which the public demand carries him.
Besides, nations, on reckoning up their produce and their wants, almost constantly forget that neighbouring foreigners are much more convenient and more advanta geous producers and consumers than distant countrymen. The relation of markets on the two banks of the Rhine is much more important, both for the German and the French merchant, than the relation of markets between the Pala tinate and Brandenburgh is for the former, or between Al sace and Provence for the latter.
The ardour, with which all governments have excited every species of production, by means of their restrictive system, has brought about such a disproportion between la bour and demand, that perhaps it has become necessary for every state to think first, not of the comfort, but of the existence of its subjects, and to maintain those barriers which have been so imprudently erected. Au important part of the population !night, perhaps, be cut off by penu ry, in the course of a few years; and it is reasonable that each state should seek to preserve itself and those depend ing on it from such a calamity. Yet, we cannot, without pain, behold the rivetting of this anti-social system, and the abandonment of that ancient spirit of commerce, which triumphed over barbarism, and taught hostile hordes to know and esteem each other.
Governments, after having attempted to give the nation al producers a monopoly in their own country, have some times endeavoured to procure them a similar advantage in foreign countries, by treaties of commerce. Such pactions, always subordinate to policy, granted to a favoured nation an exemption from some part of the duties required from others, on consideration of some reciprocal advantage. It cannot be doubted that such an exemption was advanta geous to the nation in whose favour it was granted ; but, on the other hand, it was just as disadvantageous to the nation granting it ; and when a treaty of commerce bore a concession of mutual exemption, each state should have discovered, that a monopoly granted to its producers was too dearly purchased by a monopoly granted to foreigners, against its consumers: and the more so, as there existed no kind of relation between the two favoured branches of trade. Some show of reason may be discovered, why the consumers of cloth should be taxed for the advantage of cloth manufacturers; but there is no shadow of reason why the consumers of wine in England should experience a loss, in compensation for an advantage to the sellers of goods in Portugal.
No treaty of commerce can fully satisfy the greediness of merchants desiring a monopoly ; and therefore govern ments invented the fantastic expedient of creating in a co lony a nation expressly to be purchasers from their mer chants. The colonists were prohibited from establishing any manufacture at home, that so they might be more de pendent on the mother country. They were carefully pre vented from following any species of foreign trade; they were subjected to regulations the most vexatious, and con trary to their own interests; not for the mother country's good, but for the good of a small number of merchants. The infinite advantages attached to a new country, where every kind of labour is profitable, because every thing is yet to do, enabled colonies to prosper, although they were continually sacrificed. As their raw produce was fit for a distant trade, they had it in their power to support a most unequal exchange, in which nothing was taken from them that the buyer could procure at home; but their rapid in crease itself bears witness against the system which has founded them ; they have prospered by a system diametri Bally opposite to that followed by the mother country. The exportation of all raw produce, the importation of all wrought produce, have been encouraged in colonies, and have presented to such as believe in the existence, zinc! cal culate the state, of a commercial balance, a result as disad vantageous for themselves, as it was advantageous for the the mother country. Doubtless, their oppression gave the latter all the profits of a monopoly ; yet, in a very circum scribed market ; whilst the free trade of all Europe, with all its colonies, would have been more advantageous for both, by infinitely extending the market of the one, and ac celerating the progress of the other. What justice and policy should have taught, force will obtain, and the colo nial system cannot long continue.