THE WEALTH OF NATIONS.

93

of new colonies. A new colony must always for some timebe more under-stocked in proportion to the extent of its terri-tory, and. more under-peopled in proportion to tlie extent ofits stock, than the greater part of other countries. They havemore land than they have stock to cultivate. What they have,therefore, iff applied to the cultivation only of what is mostfertile and most favourably situated, the land near the seashore, and along the banks of navigable rivers. Such landtoo is frequently purchased at a price below the value even ofits natural produce. Stock employed in the purchase andimprovement of such lands must yield a very large profit,and consequently afford to pay a very large interest. Its rapidaccumulation in so profitable an employment enables theplanter to increase the number of his hands faster than he canfind them in a new settlement. Those whom he can find,therefore, are very liberally rewarded. As the colony in-creases, the profits of stock gradually diminish. When themost fertile and best situated lands have been all occupied,less profit can be made by the cultivation of what is inferiorboth in soil and situation, and less interest can be affordedfor the stock which is so employed. In the greater part ofour colonies, accordingly, both the legal and the market rateof interest have been considerably reduced during the courseof the present century. As riches, improvement, and popu-lation have increased, interest has declined. The wages oflabour do not sink with the profits of stock. The demand forlabour increases with the increase of stock, whatever be itsprofits; and after these are diminished, stock may not onlycontinue to increase, but. to increase much faster than before.It is with industrious nations, who are advancing in theacquisition of riches, as with industrious individuals. Agreat stock, though with small profits, generally increasesfaster than a small stock with great profits. Money, says theproverb, makes money. When you have got a little it is ofteneasy to get more. The great difficulty is to get that little.The connexionbetween the increase of stock and that of in-dustry, or of the demand for useful labour, has partly beenexplained already, but will be explained more fully hereafterin treating of the accumulation of stock. j

The acquisition of new territory, or of new branches of;trade, may sometimes raise the profits of stock, and with themtho interest of money, even in a country which is fast advan-cffig in the acquisition of riches. The stock of the country