Simplified Wealth of Nations by Adam Smith, Book 4, Chapter 1d: International Trade

International Trade

31 The importation of gold and silver is not the main nor the sole benefit a nation derives from its foreign trade.

The Benefits of the Discovery of the Americas and the East Indies

32 The discovery of America enriched Europe, but not through the importation of gold and silver.
* a coin with a smaller value
33 The discovery of a passage to the East Indies by the Cape of Good Hope happened around the same time.

Wealth and Metal Money

34 I thought it necessary, at the hazard of being tedious, to fully examine this popular notion that wealth consists in gold and silver.

Restraints and Encouragements as the Effect of the Idea that Money is Wealth

35 The great object of political economy became to reduce foreign imports for home consumption and increase the exports of domestic produce. 36 There were two kinds of restraints on importation.
  1. 37 Restraints on the foreign imports for home consumption which could be produced at home.
  2. 38 Restraints on the imports of goods from countries with which the balance of trade was disadvantageous.
39 Those different restraints consisted sometimes in high duties, sometimes in absolute prohibitions. 40 Exportation was encouraged sometimes by: 41 Drawbacks were given on two occasions. 42 Bounties were given for: 43 Particular privileges were given to some foreign countries for their merchants or their goods, through advantageous commercial treaties. 44 Particular privileges and a monopoly was frequently given for the goods and merchants of the country which established colonies in distant countries. 45The commercial system proposes to increase the amount of gold and silver in any country by turning the balance of trade in its favour, through six principal means:
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Next: Chapter 2a: Restraints on Foreign Imports