WEALTH OF NATIONS. 231 



were assigned over to its creditors. The bank paper, 

 before bearing a premium of 5 per cent., now fell to 

 16 discount. 



2. Hitherto we have tried the merits of the Mercan- 

 tile System for increasing the precious metals, on the 

 principles of the system itself. But more rational 

 views condemn the attempt altogether. The supposi- 

 tion that two nations can only gain by trade when 

 each imports an equal value of commodities from the 

 other, and that if one imports more, it loses, is per- 

 fectly absurd, and betokens a complete inattention to 

 the nature of trade as well as of money. If both 

 import from each other an equal value of goods, so far 

 from neither gaining, both gain, and nearly in an equal 

 degree. The benefit of England in receiving the wines 

 of France, which it cannot grow, is equal to the benefit 

 of France in receiving from England the coal, which it 

 cannot raise, or the steam-engines, which it cannot 

 make. If there were no balance at all on the year's 

 account, not only all the coal and machinery, but all 

 the marketable goods in England would be the more 

 valuable in amount, because all could be exchanged 

 for wines, and not only all the wines, but all the silks 

 and other goods of France would be more valuable, 

 because they could be exchanged for our coals or our 

 engines. The interest of each nation is to obtain a 

 vent for the produce which it has no occasion for, and 

 a supply of the things which it wants. Its labour and 

 its capital is thus most profitably employed ; its com- 

 forts are provided for, and its wealth is increased. If 

 it can buy cheaper than it can raise or make, it is more 

 profitably employed in importing than in producing, 

 for the very same reason that it is more profitable for 

 the farmer to buy his ploughs and his clothes than to 

 make them. Where it can buy cheapest and sell 

 dearest, there ought it to resort for the very same 

 reason that it is more profitable for a farmer to buy 

 of the workman in the next parish who makes ploughs 



