osing the hatter, the hosier,
and the shoemaker, each paid 10_l._ more wages in the manufacture of a
particular quantity of their commodities, and that the price of hats,
stockings, and shoes, rose by a sum sufficient to repay the manufacturer
the 10_l._; their situation would be no better than if no such rise took
place. If the hosier sold his stockings for 110_l._ instead of 100_l._,
his profits would be precisely the same money amount as before; but as
he would obtain in exchange for this equal sum, one tenth less of hats,
shoes, and every other commodity, and as he could with his former amount
of savings employ fewer labourers at the increased wages, and purchase
fewer raw materials at the increased prices, he would be in no better
situation than if his money profits had been really diminished in
amount, and every thing had remained at its former price. Thus then I
have endeavoured to shew, first, that a rise of wages would not raise
the price of commodities, but would invariably lower profits; and
secondly, that if the prices of commodities could be raised, still the
effect on profits would be the same; and that in fact the value of the
medium only in which prices and profits are estimated would be lowered.

CHAPTER VI.

ON FOREIGN TRADE.

No extension of foreign trade will immediately increase the amount of
value in a country, although it will very powerfully contribute to
increase the mass of commodities, and therefore the sum of enjoyments.
As the value of all foreign goods is measured by the quantity of the
produce of our land and labour, which is given in exchange for them, we
should have no greater value, if by the discovery of new markets, we
obtained double the quantity of foreign goods in exchange for a given
quantity of ours. If by the purchase of English goods to the amount of
1000_l._ a merchant can obtain a quantity of foreign goods, which he can
sell in the English market for 1,200_l._, he will obtain 20 per cent.
profit by such an employment of his capital; but neither his gains, nor
the value of the commodities imported, will be increased or diminished
by the greater or smaller quantity of foreign goods obtained. Whether,
for example, he imports twenty-five or fifty pipes of wine, his interest
can be no way affected, if at one time the twenty-five pipes, and at
another the fifty pipes, equally sell for 1,200_l._ In either case his
profit will be limited to 200_l._, or 20 per cent. on his c