Book IV: Chapter 3 - Page 2

The principles
which I have been examining, in the foregoing chapter, took their
origin from private interest and the spirit of monopoly ; those
which I am going te examine in this, from national prejudice and
animosity. They are, accordingly, as might well be expected,
still more unreasonable. They are so, even upon the principles of
the commercial system.

First, Though it were certain that in the case of a free trade
between France and England, for example, the balance would be in
favour of France, it would by no means follow that such a trade
would be disadvantageous to England, or that the general balance
of its whole trade would thereby be turned more against it. If
the wines of France are better and cheaper than those of
Portugal, or its linens than those of Germany, it would be more
advantageous for Great Britain to purchase both the wine and the
foreign linen which it had occasion for of France, than of
Portugal and Germany. Though the value of the annual importations
from France would thereby be greatly augmented, the value of the
whole annual importations would be diminished, in proportion as
the French goods of the same quality were cheaper than those of
the other two countries. This would be the case, even upon the
supposition that the whole French goods imported were to be
consumed in Great Britain.

But, Secondly, A great part of them might be re-exported to other
countries, where, being sold with profit, they might bring back a
return. equal in value, perhaps, to the prime cost of the whole
French goods imported. What has frequently been said of the East
India trade, might possibly be true of the French; that though
the greater part of East India goods were bought with gold and
silver, the re-exportation of a part of them to other countries
brought back more gold and silver to that which carried on the
trade, than the prime cost of the whole amounted to. One of the
most important branches of the Dutch trade at present, consists
in the carriage of French goods to other European countries. Some
part even of the French wine drank in Great Britain, is
clandestinely imported from Holland and Zealand. If there was
either a free trade between France and England, or if French
goods could be imported upon paying only the same duties as those
of other European nations, to be drawn back upon exportation,
England might have some share of a trade which is found so
advantageous to Holland.

Thirdly, and lastly, There is no certain criterion by which we
can determine on which side what is called the balance between
any two countries lies, or which of them exports to the greatest
value. National prejudice and animosity, prompted always by the
private interest of