were it not often perverted by the bad passions and blind policy of man.

CAROLINE.

And independently of the diversity of soils, climates, and natural productions, I do not suppose that it would be possible for any single country to succeed in all branches of industry, any more than for a single individual to acquire any considerable skill in a great variety of pursuits?

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MRS. B.

Certainly not. The same kind of division of labour which exists among the individuals of a community, is also in some degree observable among different countries: " Nature," Mr. Senior observes, 66 seems to "have intended that mutual dependence should unite "all the inhabitants of the earth into one commercial family. For this purpose she has indefinitely diversi"fied her own products in every climate and in almost 66 every extensive district. For this purpose also she "seems to have varied so extensively the wants and productive powers of the different races of men. The superiority of modern over ancient wealth depends, in a great measure, on the greater use we make of these "varieties." And when particular branches of industry are not formed by local circumstances, it will generally be found the best policy to endeavour to excel a neighbouring nation in those manufactures in which we are nearly on a par, rather than to attempt competition in those in which by long habit and skill they have acquired a decided superiority. Thus will the common stock of productions be most improved, and all countries most benefited. Nothing can be more

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illiberal and short-sighted than a jealousy of the progress of neighbouring countries, either in agriculture or manufactures. Their demand for our commodities, so far from diminishing, will always be found to increase with the means of purchasing them. It is the idleness and poverty, not the wealth and industry, of neighbouring nations that should excite alarm.

CAROLINE.

A tradesman would consider it more for his interest to set up his shop in the neighbourhood of opulent customers than of poor people who could not afford to purchase his goods; and why should not countries consider trade in the same point of view?

MRS. B.

Mirabeau, in his "Monarchie Prussienne, has carried this principle so far, that it has made him doubt whether the trade of France was injured by the revocation of the edict of Nantz, which drove so many skilful manufactures and artificers out of the country.

"Il est en général un principe sûr en commerce: "plus vos acheteurs seront riches, plus vous leur "vendrez ainsi les causes qui enrichissent un peu"ple augmentent toujours l'industrie de ceux qui "ont des affaires à négocier avec lui. Sans doute "c'est une démence frénétique de chasser 200,000 "individus de son pays pour enrichir celui des autres; "mais la nature qui veut conserver son ouvrage ne " cesse de réparer, par des compensations insensibles, "les erreurs des hommes; et les fautes les plus "désastreuses ne sont pas sans remèdes. La grande "vérité que nous offre cet exemple mémorable, c'est

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qu'il est insensé de détruire l'industrie et le commerce "de ses voisins, puisqu'on anéantit en même tems "chez soi-même ces trésors. Si de tels efforts pou"voient jamais produire leur effet, ils dépeupleroient "le monde, et rendroient très-infortunée la nation qui "auroit eu le malheur d'engloutir toute l'industrie, "tout le commerce du globe, et de vendre toujours sans jamais acheter. Heureusement la Providence a tellement disposé les choses que les délires des "souverains ne sauroient arrêter entièrement ses vues "de bonheur notre espèce."

CAROLINE.

The more I learn upon this subject, the more I feel convinced that the interests of nations, as well as those of individuals, so far from being opposed to each other, are in the most perfect unison.

MRS. B.

Liberal and enlarged views will always lead to similar conclusions, and teach us to cherish sentiments of universal benevolence towards each other; hence the superiority of science over mere practical knowledge.

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CONVERSATION XXI.

Subject of FOREIGN TRADE continued.

OF BILLS OF EXCHANGE.-OF THE BALANCE OF TRADE.CAUSE OF THE REAL VARIATION OF THE EXCHANGE.DISPROPORTION OF EXPORTS AND IMPORTS.

CAUSE

OF

THE NOMINAL VARIATION OF THE EXCHANGE.-DEPRECIATION OF THE VALUE OF THE CURRENCY OF THE COUNTRY.

MRS. B.

I

HOPE that you are now quite satisfied of the advan- tages which result from foreign commerce?

CAROLINE.

Perfectly so; but there is one thing which perplexes me. In a general point of view I conceive that trade consists in an exchange of commodities; but I do not understand how this exchange takes place between merchants. The wine-merchant, for instance, who imports wine from Portugal, does not export goods in return for it; his trade is confined to the article of wine.

MRS. B.

There are many general merchants who both export and import various articles of trade. Thus the Spanish merchant, the Turkey merchant, and the West-Indian

merchant, import all the different commodities which we receive from those countries, and generally export English goods in return. It is, however, the countries, rather than the individuals, who exchange their respective productions; for both the goods exported and imported are in all cases bought and sold, and never actually exchanged.

CAROLINE.

But since the merchants of the respective countries do not literally exchange their goods, they must each of them send a sum of money in payment; and these sums of money will be nearly equivalent. If the London merchant has 1000l. to pay for wines at Lisbon, the Lisbon merchant will have nearly the same sum to pay for broad cloth in London. It is to be regretted, therefore, that the goods should not be actually exchanged, or that some mode should not be devised of reciprocally transferring the debts, in order to avoid so much useless expense and trouble.

MRS. B.

Such a mode has been devised, and these purchases and sales are usually made without the intervention of money, by means of written orders, called bills of exchange.

CAROLINE.

Is not then a bill of exchange a species of papermoney like a bank-note?

MRS. B.

Not exactly; instead of being a promissory note, it is an order addressed to the person abroad to whom the merchant sends his goods, directing him to pay the amount of the bill, at a certain date, to some third