184 ADAM SMITH. 



port 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 Amsterdam. Many Princes 

 have traded like private individuals. 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 con- 

 troul. The post-office has always been to the Govern- 

 ment 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 lot- 

 tery. 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 land- 

 owners, the crown vassals. It was when the progress of 

 civilization made such military service inconvenient and 

 even impossible, that regular armies became necessary; 

 these required a greater expenditure than the crown lands 

 could supply ; and other sources of revenue became ne- 

 cessary. The other expenses of the Government were 



