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produce of its silver mines has been growing gradually more and

more extensive。

     First�察�the market of Europe has become gradually more and

more extensive。 Since the discovery of America�察�the greater part

of Europe has been much improved。 England�察�Holland�察�France�察�and

Germany�察�even Sweden�察�Denmark�察�and Russia�察�have all advanced

considerably both in agriculture and in manufactures。 Italy seems

not to have gone backwards。 The fall of Italy preceded the

conquest of Peru。 Since that time it seems rather to have

recovered a little。 Spain and Portugal�察�indeed�察�are supposed to

have gone backwards。 Portugal�察�however�察�is but a very small part

of Europe�察�and the declension of Spain is not�察�perhaps�察�so great

as is commonly imagined。 In the beginning of the sixteenth

century�察�Spain was a very poor country�察�even in comparison with

France�察�which has been so much improved since that time。 It was

the well known remark of the Emperor Charles V�察�who had travelled

so frequently through both countries�察�that everything abounded in

France�察�but that everything was wanting in Spain。 The increasing

produce of the agriculture and manufactures of Europe must

necessarily have required a gradual increase in the quantity of

silver coin to circulate it�察�and the increasing number of wealthy

individuals must have required the like increase in the quantity

of their plate and other ornaments of silver。

     Secondly�察�America is itself a new market for the produce of

its own silver mines�察�and as its advances in agriculture��

industry�察�and population are much more rapid than those of the

most thriving countries in Europe�察�its demand must increase much

more rapidly。 The English colonies are altogether a new market��

which�察�partly for coin and partly for plate�察�requires a

continually augmenting supply of silver through a great continent

where there never was any demand before。 The greater part�察�too��

of the Spanish and Portuguese colonies are altogether new

markets。 New Granada�察�the Yucatan�察�Paraguay�察�and the Brazils

were�察�before discovered by the Europeans�察�inhabited by savage

nations who had neither arts nor agriculture。 A considerable

degree of both has now been introduced into all of them。 Even

Mexico and Peru�察�though they cannot be considered as altogether

new markets�察�are certainly much more extensive ones than they

ever were before。 After all the wonderful tales which have been

published concerning the splendid state of those countries in

ancient times�察�whoever reads�察�with any degree of sober judgment��

the history of their first discovery and conquest�察�will evidently

discern that�察�in arts�察�agriculture�察�and commerce�察�their

inhabitants were much more ignorant than the Tartars of the

Ukraine are at present。 Even the Peruvians�察�the more civilised

nation of the two�察�though they made use of gold and silver as

ornaments�察�had no coined money of any kind。 Their whole commerce

was carried on by barter�察�and there was accordingly scarce any

division of labour among them。 Those who cultivated the ground

were obliged to build their own houses�察�to make their own

household furniture�察�their own clothes�察�shoes�察�and instruments of

agriculture。 The few artificers among them are said to have been

all maintained by the sovereign�察�the nobles�察�and the priests�察�and

were probably their servants or slaves。 All the ancient arts of

Mexico and Peru have never furnished one single manufacture to

Europe。 The Spanish armies�察�though they scarce ever exceeded five

hundred men�察�and frequently did not amount to half that number��

found almost everywhere great difficulty in procuring

subsistence。 The famines which they are said to have occasioned

almost wherever they went�察�in countries�察�too�察�which at the same

time are represented as very populous and well cultivated��

sufficiently demonstrate that the story of this populousness and

high cultivation is in a great measure fabulous。 The Spanish

colonies are under a government in many respects less favourable

to agriculture�察�improvement�察�and population than that of the

English colonies。 They seem�察�however�察�to be advancing in all

these much more rapidly than any country in Europe。 In a fertile

soil and happy climate�察�the great abundance and cheapness of

land�察�a circumstance common to all new colonies�察�is�察�it seems�察�so

great an advantage as to compensate many defects in civil

government。 Frezier�察�who visited Peru in 1713�察�represents Lima as

containing between twenty´five and twenty´eight thousand

inhabitants。 Ulloa�察�who resided in the same country between 1740

and 1746�察�represents it as containing more than fifty thousand。

The difference in their accounts of the populousness of several

other principal towns in Chili and Peru is nearly the same�察�and

as there seems to be no reason to doubt of the good information

of either�察�it marks an increase which is scarce inferior to that

of the English colonies。 America�察�therefore�察�is a new market for

the produce of its own silver mines�察�of which the demand must

increase much more rapidly than that of the most thriving country

in Europe。

     Thirdly�察�the East Indies is another market for the produce

of the silver mines of America�察�and a market which�察�from the time

of the first discovery of those mines�察�has been continually

taking off a greater and a greater quantity of silver。 Since that

time�察�the direct trade between America and the East Indies�察�which

is carried on by means of the Acapulco ships�察�has been

continually augmenting�察�and the indirect intercourse by the way

of Europe has been augmenting in a still greater proportion。

During the sixteenth century�察�the Portuguese were the only

European nation who carried on any regular trade to the East

Indies。 In the last years of that century the Dutch begun to

encroach upon this monopoly�察�and in a few years expelled them

from their principal settlements in India。 During the greater

part of the last century those two nations divided the most

considerable part of the East India trade between them�察�the trade

of the Dutch continually augmenting in a still greater proportion

than that of the Portuguese declined。 The English and French

carried on some trade with India in the last century�察�but it has

been greatly augmented in the course of the present。 The East

India trade of the Swedes and Danes began in the course of the

present century。 Even the Muscovites now trade regularly with

China by a sort of caravans which go overland through Siberia and

Tartary to Pekin。 The East India trade of all these nations�察�if

we except that of the French�察�which the last war had well nigh

annihilated�察�had been almost continually augmenting。 The

increasing consumption of East India goods in Europe is�察�it

seems�察�so great as to afford a gradual increase of employment to

them all。 Tea�察�for example�察�was a drug very little used in Europe

before the middle of the last century。 At present the value of

the tea annually imported by the English East India Company�察�for

the use of their own countrymen�察�amounts to more than a million

and a half a year�察�and even this is not enough�察�a great deal more

being constantly smuggled into the country from the ports of

Holland�察�from Gottenburgh in Sweden�察�and from the coast of France

too�察�as long as the French East India Company was in prosperity。

The consumption of the porcelain of China�察�of the spiceries of

the Moluccas�察�of the piece goods of Bengal�察�and of innumerable

other articles�察�has increased very nearly in a like proportion。

The tonnage accordingly of all the European shipping employed in

the East India trade�察�at any one time during the last century��

was not�察�perhaps�察�much greater than that of the English East

India Company before the late reduction of their shipping。

     But in the East Indies�察�particularly in China and Indostan��

the value of the precious metals�察�when the Europeans first began

to trade to those countries�察�was much higher than in Europe�察�and

it still continues to be so。 I

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