Political Arithmetic . 
167 
Country to which he trades. His own country reaps the advan- 
tage of whatever he expends there of the income he acquires. 
In the carrying trade, the merchant belongs to foreign coun- 
tries ; his own country is no further benefitted by his industry, 
than the expenditure he makes in it, of part of those gains, which 
the home consumer enables him to acquire. 
3dly, The capital employed in the home trade , circulates twice 
or thrice , while a capital employed in the foreign trade circulates 
hut once. Reflect upon the travels, if I may so call them, of a 
capital employed at home. 1st, It goes from the home merchant 
to the home producer ; the farmer or manufacturer. 2dly, It is 
paid over with profit to the home merchant by the home consumer, 
and the circulation begins 'knew. 
In the foreign trade, the capital goes, 1 st, into the hands of the 
home producer, and thus far stimulates industry at home. 2dly, 
It is intrusted in the form of produce to the captain or supercargo, 
who, 3dly, delivers it to the foreign merchant, who, of course, de~ 
.mands a credit, equivalent to the time necessary for the return of 
his own capital into his hands in his own country. 4thly, The 
foreign merchant, for this purpose, entrusts it to the foreign pur- 
chaser or consumer ; who, after some time, returns it, Sthly, into 
the hands of the foreign merchant ; who again, Sthly, invests it 
with the foreign producer, the farmer or producer of his own 
country. Tthly, The foreign produce thus purchased, is entrust- 
ed, on board the ship ; whence, Sthly, it gets into the hands of 
the home merchant ; who sells it, Sthly, to the consumer; who, 
lOthly, after usual credit, returns it again in the last place to the 
home merchant. 
Adam Smith, Herenschwanfl, and La Riviere, all agreeing 
in 
the general course, vary somewhat in their view of it, from that 
now given. But from every view taken of it, we may fairly con- 
clude, that the same capital puts in force 2 or 3 times the industry 
at home when employed in the home trade, that it does when em- 
ployed in the foreign trade. 
4thly. Comparative importance of the foreign trade and, home 
trade in point of amount. The country of all others most engaged 
in foreign trade, and generally cited as an example of riches and 
prosperity derived from this source, is Great Britain. Let us sec 
what her foreign trade amounts to, compared with her internal com- 
merce. 
The war with France has now continued seven years. It be- 
