by a want of capital in the extent of the business which he can transact. The quantity of goods which he buys and sells is very large, both in their value and in the number of purchases and sales. Entirely occupied with the market, he has a more intimate knowledge of the quality and value of the goods brought to market, and a more extensive acquaintance with buyers and sellers, than any other person can have, and thus saves a great deal of time and labour that would otherwise be wasted in the purchase and disposal of goods; and the merchants, farmers, and manufacturers, who have purchases or sales to effect, greatly rely on his judgment of the market, and of the quality and value of articles.

The wholesale dealer is usually a man of large capital, for which he could not readily find employment in a retail concern. He purchases in large quantities of the producer or importer, and sells again in smaller quantities to the retailers, according to their several demands; frequently giving a longer credit than he himself obtains. He performs the same office to the retailer, as the retailer does to the consumer. It would be very inconvenient to the producer or importer, if he could dispose of his goods only to the retail dealers; and that at a long credit. The producer is engaged at his manufactory or his farm, and in general has no capital to spare with which to give much credit; or if he have, he is able to employ it to greater advantage in his own concerns. The importer is occupied with foreign correspondents, attending to the markets or the shipping, or perhaps is travelling himself. The producers and importers have no warehouse conveniently situated to which the retail dealers may resort, and it would deprive them of valuable time and capital, if they must always keep a stock and assortment of goods on hand, and be in attendance to sell. The intervention of the wholesale dealer relieves them from this necessity; he purchases whenever it may suit them to sell, and in whatever quantities they please. By the intervention of his labour and capital he accommodates alike the parties from whom he purchases, and the parties to whom he sells; saving them both a great waste of time and trouble; setting free the capital of

the producer or importer, which would otherwise be locked up, and rendering it immediately available for further production or importation. Thus he fairly earns the profit that he gains, without trenching on the profits of the others, while he at the same time cheapens the supply to the consumer.

The retailer's labour and capital serve an equally useful part in the supply. Whilst the wholesale dealer establishes himself in some great town to which the retailers are in the habit of resorting; these last disperse themselves everywhere in the towns and villages, in situations convenient to the consumer.

Thus the whole mercantile class, by the division and combination of employments among them, conjoin in the performance of that duty which renders such essential service to the community.

From the fact that mercantile industry employs a smaller number of labourers, in proportion to its capital, than either agriculture or manufactures, we perceive the absurdity of that jealousy of foreigners engaging in this branch of industry which is sometimes observed. If it were not for the aid of the foreign capital employed in conducting the commercial transactions of the country, the capitals of native subjects, now vested in agriculture or manufactures, and which employ a greater number of labourers than commercial industry, must be withdrawn from these employments to carry on the necessary commercial transactions. Foreigners will not embark their capitals in agriculture or manufactures so readily as in commerce, because the capital in the two former becomes necessarily more fixed, and cannot be easily withdrawn in case of their wishing to return to their own country, in the event of war or other political circumstances rendering their situation precarious. In commerce, capital may be readily withdrawn and transported to other countries, in case of insecurity or persecution from the government or individuals. If then a country would discourage foreigners from engaging in its commerce, it must lose the benefit of the employment of their capitals. The absurdity of this jealousy is greater in poor countries, where capital is scarce, though it is here that we find the jealousy existing in its greatest strength.

Mercantile industry is usually distinguished as consisting of three separate branches;-the home trade, the colonial trade, and the foreign trade. In this order, it is proposed further to consider them.

SECTION I.

On the Home Trade.

THE exchange of commodities between individuals of the same community, constitutes the home trade. But it is not every exchange of home commodities that is an act of mercantile industry. There are many such exchanges with which mercantile industry is not concerned. An exchange between the fisherman and the consumer, of the fish caught by the one for the money of the other, is not an act of mercantile industry the intervention of the dealer would be necessary to constitute it such. Again, for the same reason, when the farmer sells directly to the clothier the wool which has been shorn from his flocks, neither is this an act of mercantile industry; it is an act of mercantile industry only when the farmer sells the wool to the wool merchant. After leaving out these instances of direct exchanges, however, that which first strikes us in considering this branch of mercantile industry, is its superior magnitude. Of the commodities produced in any country, the greater part is always consumed at home. The foreign articles imported bear a very small proportion to the produce of domestic industry.

It is through the co-operation of the home trade that the home division of employments becomes established, and all the advantages secured which flow from that division. Abolish the home trade, and the home division of employments will cease, and all its accompanying advantages be lost. So, likewise, it is on the extent and activity of the home trade; the facilities of domestic intercourse; the ease, rapidity, and security, with which the peculiar products of one part of the country can be transported and exchanged for those of another; that the variety and

accuracy of the home divisions of employment must depend; and the consequent degree of superiority in the powers of domestic industry.

Independently of the augmentation in the effective powers of labour consequent on the co-operation of the home trade, this co-operation effects a distribution of commodities better suited to our wants. If the means of suitably distributing the productions of a country were essentially impeded, by the breaking up of roads or canals, restrictions on the transport of goods, the stoppage of communication by post, or other impediments, although we should suppose, contrary to fact, that the quantity of goods possessed by the whole community would remain the same, yet, the articles possessed by each consumer being less completely adapted to his own peculiar wants, they would be less serviceable to him, afford less satisfaction, and the real utility and value of the whole be greatly depreciated. On the other hand, if the distribution of the produce of a country were materially facilitated, the adaptation of that produce to the wants, tastes, and means of purchase of the consumers, would become more complete; the produce would be more serviceable, and afford a still higher gratification in its consumption; the ends of labour would be more completely attained, and the goods acquire a higher value.

It has been said that the internal commerce of a country is more beneficial to it than the external, inasmuch as by each operation of exchange at home a twofold benefit is conferred. "When one person gives his exclusive attention to the cultivation of the soil, while his neighbour and countryman confines his attention to working up its produce, then the mercantile industry by means of which this division of employment can alone be established, at one and the same time augments the productive powers both of domestic agriculture and of domestic manufactures. But when any individual cultivates the soil, and exchanges its produce for wrought goods imported from abroad, then the mercantile industry by which the international divisions of employment are established, at one and the same time augments the productive powers of domestic agriculture and of foreign manufacture. Thus then it is demonstrable, that in

every transaction of the home trade, the whole of the benefit resulting from the consequent division of employment remains in the country; while in each transaction of the foreign trade, a part of this benefit will belong to foreign countries."* But this statement may lead to an extravagant estimate of the value of the home trade, and to underrate the value of the foreign trade. A little reflection will convince us that it is not in the nature of the internal intercourse to confer a greater benefit than the external; and that the advantage or disadvantage of a country exchanging its productions of different kinds one against another at home, rather than with foreign countries, must depend on circumstances altogether independent of the nature of the trade.

As a complete division of employment cannot exist without the intervention of mercantile industry, so the productive powers of industry must be augmented in proportion to the extent of the co-operation of mercantile industry, whereby this division becomes more extended. Now the division and subdivision of labour may be extended in an equal, or even a greater degree, by the foreign than by the home trade. This division and subdivision depend on the number of persons who may be exclusively occupied in the same branch of industry; and this must be regulated by the extent of the market. If the home trade only is to be attended to, our market must be limited by the demands of that trade, and the number and variety of our productions must be adequate to supply the almost infinite variety of articles required in that market. But if the foreign trade be equally attended to, then is the market greater, and is supplied by a greater number of producers; consequently the attention may be more exclusively devoted to the production of a few commodities, instead of a great number, and the remainder of the supply for the home market be left to be made up from abroad. By this arrangement, the foreigner will likewise be enabled to devote himself more exclusively to the production of a few commodities, supplying himself with the remainder from us; and, consequently, to excel in the quality and cheapness of his goods. Thus the enlargement of the market Col. Torrens.