WEALTH OF NATIONS. 251 



Part 1. The Sovereign or the State may be possessed 

 of property, and frequently has been, of various kinds. 

 It may even have labourers, and employ them at a 

 profit; or it may carry on profitable business on its 

 own account and as a source of revenue. In rude 

 States the Prince profits by the herds which belong to 

 him, and support his expenditure and his power. Where 

 slavery is allowed, the Prince may make a profit by 

 the labour of his slaves. Small republics have driven 

 traffic by their own mercantile profit in various ways. 

 Hamburgh used to have the profit of selling wines in 

 a public wine-cellar, and drugs in an apothecary's shop. 

 Banking was always a source of revenue to the smaller 

 Italian republics, and to Venice, Hamburgh, and Am- 

 sterdam. Many Princes have traded like private indi- 

 viduals. The Egyptian Pacha does so at this day ; 

 nor is there anything more unfair than such dignitaries 

 entering into competition with their subjects, over 

 whose dealings they exercise a controul. The post- 

 office has always been to the Government of England 

 and other countries a considerable source of revenue. 

 Some Italian and German States have profited by 

 insurance against fire and sea risk. Many of these 

 small States have gained profit by lending at interest 

 their savings or treasure, and thus dealing like other 

 money-lenders. Most States have driven the gainful 

 and dishonest trade of gambling, by way of lottery. 

 But land has in all instances been held by the State. 

 In former times it formed the bulk of the revenue in 

 all feudal countries, the Sovereign being the greatest 

 feudal lord, and defraying all, or nearly all the expenses 

 of his government by his rents as a landowner, while 

 for his military establishment he had to depend upon 

 the precarious and temporary services of the inferior 

 landowners, the crown vassals. It was when the pro- 

 gress of civilization made such military service incon- 

 venient and even impossible, that regular armies became 

 necessary ; these required a greater expenditure than 



