so disposable with which the greater value
of foreign commodities was before purchased; so that with the increased
demand for corn, shoes, &c. there exists also the means of procuring an
increased supply, and therefore neither prices nor profits can
permanently rise. If more of the produce of the land and labour of
England be employed in the purchase of foreign commodities, less can be
employed in the purchase of other things, and therefore fewer hats,
shoes, &c. will be required. At the same time that capital is liberated
from the production of shoes, hats, &c. more must be employed in
manufacturing those commodities with which foreign commodities are
purchased; and consequently in all cases the demand for foreign and home
commodities together, as far as regards value, is limited by the revenue
and capital of the country. If one increases, the other must diminish.
If the importation of wine, given in exchange for the same quantity of
English commodities be doubled, the people of England can either consume
double the quantity of wine that they did before, or the same quantity
of wine and a greater quantity of English commodities. If my revenue had
been 1000_l._, with which I purchased annually one pipe of wine for
100_l._ and a certain quantity of English commodities for 900_l._; when
wine fell to 50_l._ per pipe, I might lay out the 50_l._ saved, either
in the purchase of an additional pipe of wine, or in the purchase of
more English commodities. If I bought more wine, and every wine-drinker
did the same, the foreign trade would not be in the least disturbed;
the same quantity of English commodities would be exported in exchange
for wine, and we should receive double the quantity, though not double
the value of wine. But if I, and others contented ourselves with the
same quantity of wine as before, fewer English commodities would be
exported, and the wine-drinkers might either consume the commodities
which were before exported, or any others for which they had an
inclination. The capital required for their production would be supplied
by the capital liberated from the foreign trade.

There are two ways in which capital may be accumulated: it may be saved
either in consequence of increased revenue, or of diminished
consumption. If my profits are raised from 1000_l._ to 1200_l._ while my
expenditure continues the same, I accumulate annually 200_l._ more than
I did before. If I save 200_l._ out of my expenditure while my p