WEALTH OF NATIONS. 155 



the traders urged the governments of different countries to 

 suffer the exportation, by which goods might be obtained, 

 the re-exportation of which would restore with a profit 

 the specie that had been sent to buy these, and thus aug- 

 ment its whole mass. These merchants, however, wholly 

 adopting the fundamental error, and regarding specie as 

 alone constituting wealth, further urged that the direct 

 prohibition to export them could scarce ever be effectual, 

 on account of the small bulk of the metals and their easy 

 smuggling, the evil of evading the law adding to the cost of 

 getting the metal ; but they represented the true policy to 

 consist in so regulating the balance of trade, as to make 

 the exports exceed the imports of goods generally, the 

 difference being of course paid in gold and silver. These 

 arguments prevailed generally, both with speculative men 

 and with practical statesmen ; the home-trade, by far the 

 most important of all in every country, was undervalued ; 

 foreign commerce was regarded as the great source of 

 wealth; and positive restraints were imposed upon im- 

 portation, while direct encouragements were, given to 

 exportation. The restraints were of two kinds, restraints 

 upon foreign goods, which were or could be manufactured 

 at home, and this was a restraint on trade in these par- 

 ticular commodities with all countries indiscriminately 

 and restraints upon almost all goods from countries with 

 which the balance of trade was supposed unfavourable. 

 Encouragement to exportation was given in four ways, by 

 drawbacks of the excise imports, or certain duties im- 

 posed; by actual bounties on exportation or on home 

 manufactures, by treaties of commerce to obtain commer- 

 cial privileges or favours, by planting colonies and mono- 

 polizing their trade. These are the six grand resources 



