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of our home trade—but even were they nearer an equality—the comparative value of a home and foreign trade has been laid down by Dr. Adam Smith in his Wealth of Nations, a work of which Mr. M'Culloch, in his introduction to his edition of the work, says:—"In this work the science is, for the first time, treated in its fullest extent; and the fundamental principles on which the production of wealth depends, established beyond the reach of cavil and dispute." The effect on the capital of a country abandoning any given home trade, and adopting a foreign in its place, is thus stated by Dr. Smith in the 2d book and 5th chapter of that great work:—
"The capital which is employed in purchasing in one part of the country in order to sell in another the produce of the industry of that country, generally replaces, by every such operation, two distinct capitals, that had both been employed in the agriculture or manufactures of the country, and therefore enables them to continue that manufacture. When it sends out, from the residence of the merchant, a certain value of commodities, it generally brings back in return at least an equal value of other commodities. When both are the produce of domestic industry, it necessarily replaces, by every such operation, two distinct capitals, which had both been employed in supporting productive labour, and thereby enables them to continue that support. The capital which sends Scotch manufactures to London, and brings back English corn and manufactures to Edinburgh, necessarily replaces, by every such operation, two British capitals, which had both been employed in the agriculture or manufactures of Great Britain.
"The capital employed in purchasing foreign goods for home consumption, when this purchase is made with the produce of domestic industry, replaces also, by every such operation, two distinct capitals, but one of them only is employed
