Thus bower and lawn were deckt with Eden's flowers,

And fong and joy imparadifed the bowers.'

Such is Camoëns' beautiful ifland of Venus, fo much celebrated, and fo juftly admired by every reader of genuine tafte. At the end of this book the Tranflator has given a differtation upon it, and compared this part of his Author's work with fimilar paffages in other poets.

In the tenth and laft Lufiad, Gama and his heroes hear the nymphs in the palace of Thetis fing the triumphs of their countrymen in the conqueft of India. After this the goddess prefents to Gama a view of the Eaftern world, from the Cape of Good Hope to the furtheft islands of Japan. She poetically describes every region, and the principal iflands, and concludes, all these are given to the Western world by you. Nothing, certainly, can be nobler than such a confummation!

Mr. Mickle has excelled even himself in his translation of this book-fuch is the mellow harmony, fpirit, and richness of his verfe. In short, we do not hesitate to conclude that this tranflation stand's unrivalled by any but that of the Iliad.

ART. III. Dr. Smith's Inquiry into the Nature and Causes of the Wealth of Nations. Continued from our last.

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Book IV. Of Syftems of Political Oeconomy."

HE objects of political economy are, to provide the people with the means of plentiful fubfiftence, and to fupply the ftate with a revenue fufficient for the public fervices. For the purpose of enriching the people, two different fyftems have been adopted, the one the fyftem of commerce, the other that of agriculture. Let us examine each of these distinctly.

It has long been a popular error, that wealth confifts in money, or gold and filver. This idea formerly gave rife to frequent prohibitions of the exportations of money or bullion. These were opposed by merchants as ineffectual, unneceffary, and injurious to the balance of trade. But fill the opinion that the national wealth confifted in money, was retained; the attention of government was directed to the preservation of a favourable balance of foreign trade, as the true means of increafing the national treafure: and home-trade was not confidered as a fource of wealth, except as it was subfidiary to foreign trade. But there is in reality no neceffity that, in either of thefe ways, the attention of government fhould be employed on the increase of money. The quantity of money, like that of every other commodity, will always be regulated by the effectual demand. Where a greater quantity is imported than exceeds this demand, no vigilance of government can prevent its exportation; when the demand is greater than the prefent fupply, no prohibitions will prevent

its importation. Money is only fcarce where individuals have not wherewithal to purchase it, nor credit to borrow it, which will generally happen where great profits occafion over-trading. But a country which abounds with the produce of land or labour, beyond what is neceffary to fupply the home-confumption, has always the power of commanding an increase of its treasure, by fending its furplus to foreign markets. The greater part of this furplus, however, is always deftined to the purchase of foreign goods: and while a country is able to procure thefe, its trade may be beneficial without any increase of money: its annual produce of land and labour, and its real gains being nearly the fame. Since money is merely a convenient inftrument of circulation, no benefit can be derived from increasing it farther than it is wanted for this purpose. It is not always neceffary to accumulate gold and filver, in order to enable a country to carry on foreign wars. These may be fupported either by fending abroad fome of its gold and filver, or fome of the produce of its manufactures, or fome of its annual rude produce. The late wars in Europe have had little dependence on the exportation of money or bullion, but have been chiefly carried on by the exportation of manufactures: the government contracting with merchants to make the neceffary remittances, who would do it either directly or indirectly by fending over goods, which would bring him a profit. Á country which produces a great furplus of the finer manufactures, may carry on an expenfive foreign war without exporting any confiderable quantity of gold or filver, and may enrich its merchants while it is exhaufting its own ftrength. Rude produce alone would not be adequate to the purpofe; the expence of exportation would be too great. The chief benefit of foreign commerce is, not the importation of gold and filver, but the exchanging of fuperfluous produce of land and labour, for thofe articles of foreign produce which are wanted at home. It is on this account that the American connexions have proved so beneficial to Europe; and those of the Eaft would have been no less fo, had not the natural operations of commerce been obftructed by exclufive companies. The continual exportation of filver, fo much complained of, produces no material effect. The Eaft India trade by opening a market to the commodities of Europe, or which comes nearly to the fame thing, to the gold and filver which is purchased with thefe commodities, tends to increase the annual production of European commodities, and confequently the real wealth and revenue of Europe.-The falfe principles, that wealth confifts in gold and filver, and that thefe could only be commanded by the balance of trade, have rendered it a great object in REV. July 1776. political

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political oeconomy to lay reftraints upon importation, and to give encouragement to exportation.

The reftraints upon importation have been upon fuch foreign goods as could be produced at home-and upon goods of almoft all kinds from thofe countries with which the balance of trade was fuppofed to be disadvantageous.

By the first of thefe reftraints, the monopoly of the homemarket is more or lefs fecured to domeftic induftry. But whether it tends to increase the general induftry, or to give it the best direction, may be quelționed. It cannot increase the industry of the fociety beyond what its capital can employ; it can only give it an artificial direction. Now, without this, every individual will endeavour to employ his capital as near home as he can, and confequently as much as he can in fupport of domestic induftry, provided he can nearly obtain the ordinary profits of stock; and will therefore employ it moft advantageoufly to his country, by directing it into that channel which will give revenue and employment to the greateft number of people of his own country. And every individual who employs his capital in the fupport of domestic induftry, naturally endeavours to direct it in the most profitable manner. Every individual therefore neceffarily labours to render the annual revenue of the fociety as great as he can, without immediately intending it. What fpecies of domeftic induftry will be moft profitable, each individual is the best judge for himself. But the ftatefman by giving the monopoly of domeftic industry in any particular art or manufacture, in fome measure takes upon him to direct in what manner private people ought to employ their capitals: and the regulation will generally be either useless or hurtful. It is for the benefit of the public, as well as individuals, to purchase from others fuch articles as can be bought cheaper than they can be made at home: for that labour which would be employed in making them, may be directed into a channel which will be more advantageous, that is, make a more valuable addition to the annual produce. Whatever aid fuch regulations may give to particular manufactures, they therefore naturally tend to diminish the general revenue. The chief benefit of the monopoly of the home-market is enjoyed by merchants and manufacturers: the prohibition of the importation of foreign cattle and falt provifions, and high duties upon foreign corn are not fo beneficial to the graziers and farmers of Great Britain, as other regulations of the fame kind are to its merchants and manufacturers, on account of the great expence of carrying the more bulky commodities. The free importation of foreign corn could very little affect the intereft of the

farmers

farmers of Great Britain. The average quantity imported annually, amounts only to 23,728 quarters, which is not a five hundredth part of the annual confumption. There are two cafes in which it may be advantageous to lay fome burdens upon foreign, for the encouragement of domeftic induftry. The first is when fome particular fort of induftry is neceflary for the defence of the country: hence the propriety of the navigation act, which gives the failors and fhipping of Great Britain a monopoly. The fecond cafe is, when some tax is imposed at home upon the produce of domeftic industry: here an equal tax upon the like foreign articles is necessary to leave the competition between foreign and domeftic induftry upon the fame footing as before. When a foreign country restrains by high duties or prohibitiors the importation of any of our produce or manufactures, it becomes a matter of deliberation whether the free importation of their goods is to be continued: there feems to be good policy in this kind of retaliation, only when there is a probability that it will procure the repeal of the high duties or prohibitions complained of otherwife we only punish ourselves by making certain goods dearer than before. When particular manufactures, by means of high duties or prohibitions on all foreign goods that come in competition with them, are greatly extended and employ a multitude of hands, it may be queftioned how far, or in what manner, free importation fhould be reftored. This might, however, be done gradually with lefs inconvenience than is commonly fuppofed manufactures exported without a bounty, being fold as cheap abroad, and therefore cheaper at home than foreign goods of the fame kind, would be very little af fected by free importation: and thofe who might be thrown out of employment in any particular manufacture, would easily direct their induftry into fome other channel, at least as eafily as difbanded foldiers turn themselves to different kinds of labour. But the interefts of many individuals fo ftrongly oppose free importation, that it would be extremely hazardous to attempt to introduce it except by very flow degrees, and after a very long warning.

The reftraints which are laid upon the importation of goods of almost all kinds, from countries with which the balance of trade is supposed to be unfavourable, are unreasonable even upon the principles of the commercial fyftem. For, though the balance might, by a free trade, be rendered more unfavourable with refpect to one country, if the goods purchafed from that country were cheaper than could be procured from other countries, the general balance of the whole trade would become more favourable by fuch free importation. Befides, a great part of them might be re-exported, and fold with profit.

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profit. To which must be added, that there is no certain criterion by which the balance of trade between any two countries can be determined. In cuftom-houfe books, entries are defective, and valuation inaccurate. The course of exchange is a rule of judging almoft as uncertain. Exchange is faid to be at par between two countries, when for a fum of money containing a certain number of ounces of pure filver in the coin of one country, a bill is given to receive a sum containing an equal number of ounces of pure filver in the coin of the other: when you pay more you give a premium, when lefs you get a premium, and the exchange is in favour or against your country. The payment of a premium is faid to be a fin that the balance is against a country, because it fuppofed that money or bullion is to be fent over to pay the balance, for the hazard and expence of fending which the premium is charged. But it must be confidered, that we cannot always judge of the value of the current money by the ftandard of their respective mints; that the expence of coinage being defrayed by government in fome countries, and by private perfons in others, may make a difference in the value; and that in fome places foreign bills of exchange are paid in the current coin, in others in bank-money which is always of more value than the currency; from all which circumstances, uncertainty muft arife concerning the real state of exchange.

In fmall ftates, where the currency is usually made up of the coins of feveral countries, in order to remedy the inconvenience which would arife from the uncertainty of the current coin, it has been agreed to pay bills of exchange from the bank in good money of the ftate. The banks of Venice, Genoa, Amfterdam, &c. feem to have been established for this purpose. The money of the Bank being better than the currency, bears an agio, or a difference in value in favour of the bank. This money alfo is more fecure from accidents, and may be paid by a fimple transfer without trouble or risk. The Bank of Amfterdam receives gold and filver bullion at certain prices. It fells at all times bank-money for currency at five per cent.'agio and buys at four. For every gilder circulated as bank-money, the city is guarantee that a correfpondent gilder fhall at all times be found in the treasure of the bank.

From the nature of thefe banks, and other circumftances, the exchange between countries that pay in bank-money, and those which pay in currency, muft generally appear to be in favour of the former. But if the ordinary courfe of exchange gave an accurate idea of the ftate of debt and credit between two countries, this is ufually fo much affected by the connexions of each with other countries, that nothing certain can be deduced from hence: