THE WEALTH OF NATIONS.

591

branches of trade. The regulations, however, by which thisderangement is effected in those two different branches oftrade are not altogether the same. Monopoly is the greatengine of both; but it is a different sort of monopoly. Mono-poly of one kind or another, indeed, seems to be the sole en-gine of the mercantile system.

In the trade to America every nation endeavours to en-gross as much as possible the whole market of its own colo-nies, by fairly excluding all other nations from any directtrade to them. During the greater part of the sixteenth cen-tury, the Portuguese endeavoured to manage the trade to theEast Indies in the same manner, by claiming the sole rightof sailing in the Indian seas, on account of the merit of hav-ing first found out the road to them. The Dutch still continueto exclude all other European nations from any direct tradeto their spice islands. Monopolies of this kind are evidentlyestablished against all other European nations, who arcthereby not only excluded from a trade to which it might beconvenient for them to turn some part of their stock, but areobliged to buy the goods which that trade deals in, somewhatdearer than if they could import them themselves directlyfrom the countries which produce them.

But since the fall of the power of Portugal, no European nation has claimed the exclusive right of sailing in the Indianseas, of which the principal ports are now open to the shipsof all European nations. Except in Portugal , however, andwithin these few years in France , the trade to the East Indieshas in every European country been subjected to an exclusivecompany. Monopolies of this kind are properly establishedagainst the very nation which erects them. The greater partot that nation are thereby not only excluded from a trade towhich it might be convenient for them to turn some part oftheir stock, but are obliged to buy the goods which thattrade deals in, somewhat dearer than if it was open and freeto all their countrymen, Since the establishment of the Eng-lish East India Company , for example, the other inhabitantsol England, over and above being excluded from the trade,must have paid in the price of East India goods which theyhave consumed, not only for all the extraordinary profits whichthe company may have made upon those goods in conse-quence of their monopoly, but for all the extraordinary wastewhich the fraud and abuse, inseparable from the managementof the affairs of so great a company, must necessarily have