the amount which can be employed there more conveniently than
elsewhere. Consequently the capital of a place will be such as is
sufficient

1st. To produce all commodities which from local circumstances can be
produced there at less cost than elsewhere: and if this be the case to
any great extent, it will be an exporting town. When we say _produced_,
we may add, or _stored_.

2nd. To produce and retail the commodities which are consumed by the
inhabitants of the town, and the place of whose production is in other
respects a matter of indifference. To the inhabitants of the town must
be added such dwellers in the adjoining country, as are nearer to that
place than to any other equally well furnished market.

Now, if new unproductive consumers resort to the place, it is clear that
for the latter of these two purposes, more capital will be required than
before. Consequently, if less is not required for the former purpose,
more capital will establish itself at the place.

Until this additional capital has arrived, the producers and dealers
already on the spot will enjoy great advantages. Every particle of their
own capital will be called into the most active employment. What their
capital does not enable them to supply, will be got from others at a
distance, who cannot supply it on such favourable terms; consequently
they will be in the predicament of possessing a partial monopoly
--receiving for every thing a price regulated by a higher cost of
production than they are compelled to pay. They also, being in possession
of the market, will be enabled to make a large portion of the new capital
pass through their hands, and thus to earn wages of superintendance upon
it.

If, indeed, the place from whence the strangers came, previously traded
with that where they have taken up their abode, the effect of their
arrival is, that the exports of the town will diminish, and that it will
be supplied from abroad with something which it previously produced at
home. In this way an amount of capital will be set free equal to that
required, and there will be no increase on the whole. The removal of the
court from London to Birmingham would not necessarily, though it would
probably [6], increase the amount of capital in the latter place. The
afflux of money to Birmingham, and its efflux from London, would render
it cheaper to make some articles in London for Birmingham consumption;
and to make others in London for home consumption, whi