near home as he can； and consequently as much as he can in the
support of domestic industry； provided always that he can thereby
obtain the ordinary； or not a great deal less than the ordinary
profits of stock。
Thus； upon equal or nearly equal profits； every wholesale
merchant naturally prefers the home trade to the foreign trade of
consumption； and the foreign trade of consumption to the carrying
trade。 In the home trade his capital is never so long out of his
sight as it frequently is in the foreign trade of consumption。 He
can know better the character and situation of the persons whom
he trusts； and if he should happen to be deceived； he knows
better the laws of the country from which he must seek redress。
In the carrying trade； the capital of the merchant is； as it
were； divided between two foreign countries； and no part of it is
ever necessarily brought home； or placed under his own immediate
view and command。 The capital which an Amsterdam merchant employs
in carrying corn from Konigsberg to Lisbon； and fruit and wine
from Lisbon to Konigsberg； must generally be the one half of it
at Konigsberg and the other half at Lisbon。 No part of it need
ever come to Amsterdam。 The natural residence of such a merchant
should either be at Konigsberg or Lisbon； and it can only be some
very particular circumstances which can make him prefer the
residence of Amsterdam。 The uneasiness； however； which he feels
at being separated so far from his capital generally determines
him to bring part both of the Konigsberg goods which he destines
for the market of Lisbon； and of the Lisbon goods which he
destines for that of Konigsberg； to Amsterdam： and though this
necessarily subjects him to a double charge of loading and
unloading； as well as to the payment of some duties and customs；
yet for the sake of having some part of his capital always under
his own view and command； he willingly submits to this
extraordinary charge； and it is in this manner that every country
which has any considerable share of the carrying trade becomes
always the emporium； or general market； for the goods of all the
different countries whose trade it carries on。 The merchant； in
order to save a second loading and unloading； endeavours always
to sell in the home market as much of the goods of all those
different countries as he can； and thus； so far as he can； to
convert his carrying trade into a foreign trade of consumption。 A
merchant； in the same manner； who is engaged in the foreign trade
of consumption； when he collects goods for foreign markets； will
always be glad； upon equal or nearly equal profits； to sell as
great a part of them at home as he can。 He saves himself the risk
and trouble of exportation； when； so far as he can； he thus
converts his foreign trade of consumption into a home trade。 Home
is in this manner the centre； if I may say so； round which the
capitals of the inhabitants of every country are continually
circulating； and towards which they are always tending； though by
particular causes they may sometimes be driven off and repelled
from it towards more distant employments。 But a capital employed
in the home trade； it has already been shown； necessarily puts
into motion a greater quantity of domestic industry； and gives
revenue and employment to a greater number of the inhabitants of
the country； than an equal capital employed in the foreign trade
of consumption： and one employed in the foreign trade of
consumption has the same advantage over an equal capital employed
in the carrying trade。 Upon equal； or only nearly equal profits；
therefore； every individual naturally inclines to employ his
capital in the manner in which it is likely to afford the
greatest support to domestic industry； and to give revenue and
employment to the greatest number of people of his own country。
Secondly； every individual who employs his capital in the
support of domestic industry； necessarily endeavours so to direct
that industry that its produce may be of the greatest possible
value。
The produce of industry is what it adds to the subject or
materials upon which it is employed。 In proportion as the value
of this produce is great or small； so will likewise be the
profits of the employer。 But it is only for the sake of profit
that any man employs a capital in the support of industry； and he
will always； therefore； endeavour to employ it in the support of
that industry of which the produce is likely to be of the
greatest value； or to exchange for the greatest quantity either
of money or of other goods。
But the annual revenue of every society is always precisely
equal to the exchangeable value of the whole annual produce of
its industry； or rather is precisely the same thing with that
exchangeable value。 As every individual； therefore； endeavours as
much as he can both to employ his capital in the support of
domestic industry； and so to direct that industry that its
produce may be of the greatest value； every individual
necessarily labours to render the annual revenue of the society
as great as he can。 He generally； indeed； neither intends to
promote the public interest； nor knows how much he is promoting
it。 By preferring the support of domestic to that of foreign
industry； he intends only his own security； and by directing that
industry in such a manner as its produce may be of the greatest
value； he intends only his own gain； and he is in this； as in
many other cases； led by an invisible hand to promote an end
which was no part of his intention。 Nor is it always the worse
for the society that it was no part of it。 By pursuing his own
interest he frequently promotes that of the society more
effectually than when he really intends to promote it。 I have
never known much good done by those who affected to trade for the
public good。 It is an affectation； indeed； not very common among
merchants； and very few words need be employed in dissuading them
from it。
What is the species of domestic industry which his capital
can employ； and of which the produce is likely to be of the
greatest value； every individual； it is evident； can； in his
local situation； judge much better than any statesman or lawgiver
can do for him。 The statesman who should attempt to direct
private people in what manner they ought to employ their capitals
would not only load himself with a most unnecessary attention；
but assume an authority which could safely be trusted； not only
to no single person； but to no council or senate whatever； and
which would nowhere be so dangerous as in the hands of a man who
had folly and presumption enough to fancy himself fit to exercise
it。
To give the monopoly of the home market to the produce of
domestic industry； in any particular art or manufacture； is in
some measure to direct private people in what manner they ought
to employ their capitals； and must； in almost all cases； be
either a useless or a hurtful regulation。 If the produce of
domestic can be brought there as cheap as that of foreign
industry； the regulation is evidently useless。 If it cannot； it
must generally be hurtful。 It is the maxim of every prudent
master of a family never to attempt to make at home what it will
cost him more to make than to buy。 The tailor does not attempt to
make his own shoes； but buys them of the shoemaker。 The shoemaker
does not attempt to make his own clothes； but employs a tailor。
The farmer attempts to make neither the one nor the other； but
employs those different artificers。 All of them find it for their
interest to employ their whole industry in a way in which they
have some advantage over their neighbours； and to purchase with a
part of its produce； or what is the same thing； with the price of
a part of it； whatever else they have occasion for。
What is prudence in the conduct of every private family can
scarce be folly in that of a great kingdom。 If a foreign country
can supply us with a commodity cheaper than we ourselves can make
it； better buy it of them with some part of the produce of our
own industry employed in a way in which we have some advantage。
The general industry of the country； being always in proportion
to the capital which employs it； will not thereby be diminished；
no more than that of the above…mentioned artificers； but only
left to find out the way in which it can be employed with the
greatest advantage。 It is certainly not employed to the greatest
advantage when it is thus directed towards an object which it can
buy cheaper than it can make。 The value of its annual produce is
certainly more or less diminished when it is thus turned away
from producing commodities evidently of more value than the
commodity which it is directed to produce。 According to the
supposition； that commodity could be purchased from foreign
countries cheaper than it can be made at home。 It could；
therefore； have been purchased with a part only of the
commodities； or； what is the same thing； with a part only of the
price of the commodities； which the industry employed by an equal
capital would have produced at home； had it been left to follow
its natural course。 The industry of the country； therefore； is
thus turned away from a more to a less advantageous employment；
and the exchangeable value of its annual produce； instead of
being increased； according to the intention of the lawgiver； must
necessarily be diminished by every such regulation。
By means of such regulations； indeed； a particular
manufacture may sometimes be acquired sooner than it could have
been otherwise； and after a certain time may be made at home as
cheap or cheaper than in the foreign country。 But though the
industry of the society may be thus carried with advantage into a
particular channel sooner than it could have been otherwise； it
will by no means follow that the sum total； either of its
industry； or of its revenue； can ever be augmented by any such
regulation。 The industry of the society can augment only in
proportion as its capital augments； and its capital can augme