Til 12 WEALTH OF NATIONS.

349

they are purchased with the gold of Brazil , for example, orwith the silver of Peru , this gold and silver, like the tobaccoof Virginia, must have been purchased with something thateither was the produce of the industry of the country, or thathad been purchased with something else that was so. Sofar, therefore, as the productive labour of the country is con-cerned, the foreign trade of consumption which is carried onby means of gold and silver, has all the advantages and allthe inconveniencies of any other equally round-about foreigntrade of consumption, and will replace just as fast or just asslow the capital which is immediately employed in support-ing that productive labour. It seems even to have one ad-vantage over any other equally round-about foreign trade.The transportation of those metals from one place to another,on account of their small bulk and great value, is less ex-pensive than that of almost any other foreign goods of equalvalue. Their freight is much less, and their insurance notgreater; and no goods, besides, arc less liable to suffer bythe carriage. An equal quantity of foreign goods, therefore,may frequently be purchased with a smaller quantity of theproduce of domestic industry, by the intervention of gold andsilver, than by that of any other foreign goods. The demandof the country may frequently, in this manner, be suppliedmore completely, and at a smaller expense than in any other.Whether, by the continual exportation of those metals, a tradeol this kind is likely to impoverish the country from which itis carried on, in any other way, I shall have occasion to exa-mine at great length hereafter.

I hat part of the capital of any country which is employedin the carrying trade, is altogether withdrawn from support-ing the productive labour of that particular country, to sup-port that of some foreign countries. Though it may replaceby every operation two distinct capitals, yet neither of thembelongs to that particular country. The capital of the Dutchmerchant, which carries the corn of Poland to Portugal , andbrings back the fruits and wines of Portugal to Poland , re-places by every such operation two capitals, neither of whichhad been employed in supporting the productive labour ofHolland ; but one of them in supporting that of Poland , andthe other that of Portugal . The profits only return regularlyto Holland , and constitute the whole addition which thistrade necessarily makes to the annual produce of the landand labour ot that country. When, indeed, the carrying