2.  The natural operation of enlarged capital is another cause of our great commerce.  There is nothing more difficult in the history of mankind—­not the history of their wars and politics, but the history of their character, manners, sentiments, and progress in civilization and wealth—­[as->than] to distinguish and separate those facts which ought to be classed as causes, and those which ought to be classed as effects.  There can be no doubt that trade produces capital; and, in this point of view, capital must be regarded as an effect:  there can be as little doubt, that an increase of capital is favourable to an increase of commerce, and actually produces it; in this point of view, therefore, capital must be regarded as a cause.  As in the physical world action and reaction are equal, so are they, in many respects, and under many circumstances, in the moral and intellectual world; but, whereas in the physical world the action and reaction are not only equal but simultaneous, in the moral and intellectual world the reaction does not take place till after the immediate and particular action from which it springs has ceased.

To apply these remarks to our present subject, it is unnecessary to point out in what manner trade must increase capital; that capital, on the other hand, increases trade, is not, perhaps, at first sight, quite so obvious; but that it must act in this manner will be perceptible, when, we reflect on the advantages which a large capital gives to its possessor.  It enables him to buy cheaper, because he can buy larger quantities, and give ready money; buying cheaper, he can sell cheaper, or give longer credit, or both; and this must ensure an increase of trade.  It enables him immediately to take advantage of any improvement in the mode of manufacturing any article; and to push the sale of any article into countries where it was before unknown.  Such are some of the more important effects on commerce of large capital; and these effects have been most obviously and strikingly shewn in the commercial history of Britain for the last thirty years, and thus give a practical confirmation to the doctrine, that capital, originally the creature of trade, in its turn gives nourishment, rigour, and enlarged growth to it.

3.  Encreased wealth among the various classes of the community, may be viewed In the same light as capital; it flows from increased trade, and it produces a still further increase of trade.  The views, and desires, and habits of mankind, are like their knowledge, they are and must be progressive:  and if accompanied, as they generally are, by increased means, they must give birth to increased industry and skill, and their necessary consequences, increased trade and wealth.