244 ADAM SMITH. 



where the capitalist and his family reside on their pro- 

 perty or their farms, remains abroad, both stock and 

 profits. The capital invested in colonial agriculture 

 returns its profits almost immediately to support fami- 

 lies residing in the mother country. These profits, 

 moreover, can be subjected to the taxation of the State 

 with a view to support its revenue. 



The benefits of the colonial trade, and even its 

 monopoly, in contributing to the naval resources of the 

 State, have been freely admitted by Dr. Smith, as has 

 already been seen. But one important consideration 

 he has wholly left out of view, or only vaguely hinted 

 at it. When comparing the effects of the colonial trade 

 as monopolized with its effects if left free, he assumes 

 that all nations have their colonial trade unfettered, 

 and omits to remark that any one doing so would not 

 gain at all as he supposes, if the others continued the 

 exclusive system. Akin to this is his overlooking the 

 dilemma in which England, France, and Holland were 

 severally placed by the Spanish and Portuguese mono- 

 polies. In order to share the advantages of the colonial 

 trade they were compelled to have colonies of their own. 

 It is one thing to ask, Whether there be any benefit 

 from this or that given country planting colonies ? and 

 another to ask. Whether the colonial trade is ever 

 otherwise than in some degree beneficial ? Possibly it 

 would be better if two or three nations should plant 

 colonies, especially if they let others profit by their 

 traffic, that these others should have none of their own. 

 But who is so wild as to expect that ever this could 

 happen, that any nation should be at all the expense, 

 trouble, risk of founding and rearing a settlement, and 

 afterwards of governing and protecting it, and then let 

 all other nations benefit equally by its commerce ? 

 Lastly, Dr. Smith has omitted to consider the great 

 advantage which a nation derives from having once 

 had colonial possessions, even after they have thrown 

 off the yoke and ceased to be under the government 



