222 ' • 



derfell the fniaJl capital ; and will alfo drive it out of the foreign market, 

 by the fuperior excellence of its fabrics. 



It is to be obferved, too, that fuperior capital is the parent of fuperior 

 ikill. A fmall capital will flirink from any lofs. It will be intent only on 

 an immediate return. It will not venture to make experiments. On the 

 contrary, the mannfafturer of large capital will extend his views ; he will 

 not be deterred by prefent loffes, he will make various experiments ; the 

 confequence mud be the greater perfeftion of his manufacture. 



We muft; obferve, alfo, that the larger the capital of the manufacturer, 

 and more extenfive his dealings are, the more moderate will he be, in his 

 demands of profit. But the fmaller the profits with which he contents him- 

 felf, the better will he be enabled to underfell his competitors, in the 

 market ; and he will be able to do this, in fo great a degree, that, if any 

 violent competition fliouid arife, the manufacturer with the larger capital, 

 will not only be able to underfell his rival, in the foreign mart, but will 

 endeavour, and often with fuccefs endeavour, to difpoiTefs him of his own 

 home market ; partly, by giving longer credits ; partly, by underfelling 

 the manufacturers even at their own doors ; to effectuate which, thefe rich 

 manufacturers will fubmit, without hefitation, to temporary loffes, pro- 

 vided, that, by fo doing, they may difcourage and ruin their rivals. 



This has been plainly feen in the pains, which the Engitjh, and Scotch, 

 have taken, to introduce the cottons, the caliicoes, the fuflians, and other 

 cotton fabrics of Manchejier, the muflins, the gauzes, the kentings of 

 Paifley. Even, under the confiderable charges, to which imported muflins 

 and calicoes are liable, the Britijh contrive to underfell the manufafturers 

 of Ireland, in their own market. 



I do not lay it down, as an univerfal pofition ; that the fear of rivailhip, 

 ought, in every cafe, to deter a country from the profecution of a particular 

 manufafture. There may be fome peculiar circumftances of the country, 

 fo favourable, as to counterbalance all the inconveniences of a rivalfhip. 

 The utility of a manufacture may be fo great, the demand for it fo conftant, 

 or the profits accruing from it fo large, that people are encouraged to per- 



fevere 



