166 
Political Arithmetic . 
and sells It to a Louisiana sugar planter for 1 200 dollars worth of 
sugar, and exchanges that sugar for 1400 dollars worth of cotton 
and woollen manufactured at Rhode Island—— here is a spur giv- 
en, a stimulus to the Industry of our own citizens m Kentucky, in 
Louisiana, and in Rhode Island, -to the amount not of the mer- 
chant’s gain upon his thousand dollars merely, but to the whole a- 
mount of the thousand dollars, all of which circulates, becomes in- 
vested and productive again at home ; and three at least of our citi- 
zens are gainers by each other in the first instance. This is inter- 
nal commerce or the home trade. 
If a merchant of New Orleans, sends 1000 dollars worth of pork 
and whiskey to the Havanna and brings home % 1 000 worth of cigars, 
his capital is employed as much for the encouragement of Spanish 
as of American industry ; such a man is just as valuable to the Spa- 
nish colonies as the American states, excepting so far as he expends 
his gains in the latter country. In the case now put, he is usefully, 
but not so usefully employed to this country, as in the former. 
Suppose an American merchant employed in carrying produce 
of one of the French colonies to Great Britain, for which he re- 
ceives in return cotton goods of Manchester. Such a merchant 
may reside in Philadelphia, and spend part of his gains there, but 
he Is the agent of France and Great Britain ; the capital employed 
to load his vessel stimulates the industry of the French planter 
and the English weaver ; and it is accidental only, if the vessel ; 
itself that earns the freight, be American. The wages paid to the sai- 
lors, are expended abroad, and add to the wealth of other countries. ;,j 
This may be gainful to the merchant- in times when freight is. 
high, but the gain to the country he lives in, consists only in that :tj 
part of his income that he spends there: and even that comes out 
of the pockets of home consumers. For if Mr. America pur- 
chases the coffee of Alons. St. Domingo, and then invests it in the 
sherry of Signor Spain, it is clear that he gives encouragement 
to St. Domingo and Spain : and if the wine of Spain be brought to 
America, lie gains ultimately at the expense of the Americans 
alone. These objections do not apply to a coasting trade, where 
the carriers are employed by the home producers. 
Hence, in the home trade, or internal commerce, the capital 
and the profit are both gain to the nation ; they are both expended 
in stimulating and rewarding home industry ; in promoting perma- 
nent and productive improvements at home. 
In the foreign trade of exchange, the capital employed, is equal- 
ly beneficial to the country where the merchant lives, and the i 
