of　their　goods　would　increase　the　demand　for　them；　and
  consequently　for　the　labour　of　those　who　produced　them。　This
  increase　in　the　demand　for　labour　would　both　increase　the　numbers
  and　improve　the　circumstances　of　the　labouring　poor。　Their
  consumption　would　increase；　and　together　with　it　the　revenue
  arising　from　all　those　articles　of　their　consumption　upon　which
  the　taxes　might　be　allowed　to　remain。
  The　revenue　arising　from　this　system　of　taxation；　however；
  might　not　immediately　increase　in　proportion　to　the　number　of
  people　who　were　subjected　to　it。　Great　indulgence　would　for　some
  time　be　due　to　those　provinces　of　the　empire　which　were　thus
  subjected　to　burdens　to　which　they　had　not　before　been
  accustomed；　and　even　when　the　same　taxes　came　to　be　levied
  everywhere　as　exactly　as　possible；　they　would　not　everywhere
  produce　a　revenue　proportioned　to　the　numbers　of　the　people。　In　a
  poor　country　the　consumption　of　the　principal　commodities　subject
  to　the　duties　of　customs　and　excise　is　very　small；　and　in　a
  thinly　inhabited　country　the　opportunities　of　smuggling　are　very
  great。　The　consumption　of　malt　liquors　among　the　inferior　ranks
  of　people　in　Scotland　is　very　small；　and　the　excise　upon　malt；
  beer；　and　ale　produces　less　there　than　in　England　in　proportion
  to　the　numbers　of　the　people　and　the　rate　of　the　duties；　which
  upon　malt　is　different　on　account　of　a　supposed　difference　of
  quality。　In　these　particular　branches　of　the　excise　there　is　not；
  I　apprehend；　much　more　smuggling　in　the　one　country　than　in　the
  other。　The　duties　upon　the　distillery；　and　the　greater　part　of
  the　duties　of　customs；　in　proportion　to　the　numbers　of　people　in
  the　respective　countries；　produce　less　in　Scotland　than　in
  England；　not　only　on　account　of　the　smaller　consumption　of　the
  taxed　commodities；　but　of　the　much　greater　facility　of　smuggling。
  In　Ireland　the　inferior　ranks　of　people　are　still　poorer　than　in
  Scotland；　and　many　parts　of　the　country　are　almost　as　thinly
  inhabited。　In　Ireland；　therefore；　the　consumption　of　the　taxed
  commodities　might；　in　proportion　to　the　number　of　the　people；　be
  still　less　than　Scotland；　and　the　facility　of　smuggling　nearly
  the　same。　In　America　and　the　West　Indies　the　white　people　even　of
  the　lowest　rank　are　in　much　better　circumstances　than　those　of
  the　same　rank　in　England；　and　their　consumption　of　all　the
  luxuries　in　which　they　usually　indulge　themselves　is　probably
  much　greater。　The　blacks；　indeed；　who　make　the　greater　part　of
  the　inhabitants　both　of　the　southern　colonies　upon　the　continent
  and　of　the　West　India　islands；　as　they　are　in　a　state　of　slavery；
  are；　no　doubt；　in　a　worse　condition　than　the　poorest　people
  either　in　Scotland　or　Ireland。　We　must　not；　however；　upon　that
  account；　imagine　that　they　are　worse　fed；　or　that　their
  consumption　of　articles　which　might　be　subjected　to　moderate
  duties　is　less　than　that　even　of　the　lower　ranks　of　people　in
  England。　In　order　that　they　may　work　well；　it　is　the　interest　of
  their　master　that　they　should　be　fed　well　and　kept　in　good　heart
  in　the　same　manner　as　it　is　his　interest　that　his　working　cattle
  should　be　so。　The　blacks　accordingly　have　almost　everywhere　their
  allowance　of　rum　and　molasses　or　spruce　beer　in　the　same　manner
  as　the　white　servants；　and　this　allowance　would　not　probably　be
  withdrawn　though　those　articles　should　be　subjected　to　moderate
  duties。　The　consumption　of　the　taxed　commodities；　therefore；　in
  proportion　to　the　number　of　inhabitants；　would　probably　be　as
  great　in　America　and　the　West　Indies　as　in　any　part　of　the
  British　empire。　The　opportunities　of　smuggling；　indeed；　would　be
  much　greater；　America；　in　proportion　to　the　extent　of　the
  country；　being　much　more　thinly　inhabited　than　either　Scotland　or
  Ireland。　If　the　revenue；　however；　which　is　at　present　raised　by
  the　different　duties　upon　malt　and　malt　liquors　were　to　be　levied
  by　a　single　duty　upon　malt；　the　opportunity　of　smuggling　in　the
  most　important　branch　of　the　excise　would　be　almost　entirely
  taken　away：　and　if　the　duties　of　customs；　instead　of　being
  imposed　upon　almost　all　the　different　articles　of　importation；
  were　confined　to　a　few　of　the　most　general　use　and　consumption；
  and　if　the　levying　of　those　duties　were　subjected　to　the　excise
  laws；　the　opportunity　of　smuggling；　though　not　so　entirely　taken
  away；　would　be　very　much　diminished。　In　consequence　of　those　two；
  apparently；　very　simple　and　easy　alterations；　the　duties　of
  customs　and　excise　might　probably　produce　a　revenue　as　great　in
  proportion　to　the　consumption　of　the　most　thinly　inhabited
  province　as　they　do　at　present　in　proportion　to　that　of　the　most
  populous。
  The　Americans；　it　has　been　said；　indeed；　have　no　gold　or
  silver　money；　the　interior　commerce　of　the　country　being　carried
  on　by　a　paper　currency；　and　the　gold　and　silver　which
  occasionally　come　among　them　being　all　sent　to　Great　Britain　in
  return　for　the　commodities　which　they　receive　from　us。　But
  without　gold　and　silver；　it　is　added；　there　is　no　possibility　of
  paying　taxes。　We　already　get　all　the　gold　and　silver　which　they
  have。　How　is　it　possible　to　draw　from　them　what　they　have　not？
  The　present　scarcity　of　gold　and　silver　money　in　America　is
  not　the　effect　of　the　poverty　of　that　country；　or　of　the
  inability　of　the　people　there　to　purchase　those　metals。　In　a
  country　where　the　wages　of　labour　are　so　much　higher；　and　the
  price　of　provisions　so　much　lower　than　in　England；　the　greater
  part　of　the　people　must　surely　have　wherewithal　to　purchase　a
  greater　quantity　if　it　were　either　necessary　or　convenient　for
  them　to　do　so。　The　scarcity　of　those　metals；　therefore；　must　be
  the　effect　of　choice；　and　not　of　necessity。
  It　is　for　transacting　either　domestic　or　foreign　business
  that　gold　and　silver　money　is　either　necessary　or　convenient。
  The　domestic　business　of　every　country；　it　has　been　shown　in
  the　second　book　of　this　Inquiry；　may；　at　least　in　peaceable
  times；　be　transacted　by　means　of　a　paper　currency　with　nearly　the
  same　degree　of　conveniency　as　by　gold　and　silver　money。　It　is
  convenient　for　the　Americans；　who　could　always　employ　with　profit
  in　the　improvement　of　their　lands　a　greater　stock　than　they　can
  easily　get；　to　save　as　much　as　possible　the　expense　of　so　costly
  an　instrument　of　commerce　as　gold　and　silver；　and　rather　to
  employ　that　part　of　their　surplus　produce　which　would　be
  necessary　for　purchasing　those　metals　in　purchasing　the
  instruments　of　trade；　the　materials　of　clothing；　several　parts　of
  household　furniture；　and　the　ironwork　necessary　for　building　and
  extending　their　settlements　and　plantations；　in　purchasing；　not
  dead　stock；　but　active　and　productive　stock。　The　colony
  governments　find　it　for　their　interest　to　supply　the　people　with
  such　a　quantity　of　papermoney　as　is　fully　sufficient　and
  generally　more　than　sufficient　for　transacting　their　domestic
  business。　Some　of　those　governments；　that　of　Pennsylvania
  particularly；　derive　a　revenue　from　lending　this　paper…money　to
  their　subjects　at　an　interest　of　so　much　per　cent。　Others；　like
  that　of　Massachusetts　Bay；　advance　upon　extraordinary　emergencies
  a　paper…money　of　this　kind　for　defraying　the　public　expense；　and
  afterwards；　when　it　suits　the　conveniency　of　the　colony；　redeem
  it　at　the　depreciated　value　to　which　it　gradually　falls。　In　1747；
  that　colony　paid；　in　this　manner；　the　greater　part　of　its　public
  debts　with　the　tenth　part　of　the　money　for　which　its　bills　had
  been　granted。　It　suits　the　conveniency　of　the　planters　to　save
  the　expense　of　employing　gold　and　silver　money　in　their　domestic
  transactions；　and　it　suits　the　conveniency　of　the　colony
  governments　to　supply　them　with　a　medium　which；　though　attended
  with　some　very　considerable　disadvantages；　enables　them　to　save
  that　expense。　The　redundancy　of　paper…money　necessarily　banishes
  gold　and　silver　from　the　domestic　transactions　of　the　colonies；
  for　the　same　reason　that　it　has　banished　those　metals　from　the
  greater　part　of　the　domestic　transactions　in　Scotland；　and　in
  both　countries　it　is　not　the　poverty；　but　the　enterprising　and
  projecting　spirit　of　the　people；　their　desire　of　employing　all
  the　stock　which　they　can　get　as　active　and　productive　stock；
  which　has　occasioned　this　redundancy　of　paper…money。　　　In　the
  exterior　commerce　which　the　different　colonies　carry　on　with
  Great　Britain；　gold　and　silver　are　more　or　less　employed　exactly
  in　proportion　as　they　are　more　or　less　necessary。　Where　those
  metals　are　not　necessary　they　seldom　appear。　Where　they　are
  necessary　they　are　generally　found。
  In　the　commerce　between　Great　Britain　and　the　tobacco
  colonies　the　British　goods　are　generally　advanced　to　the
  colonists　at　a　pretty　long　credit；　and　are　afterwards　paid　for　in
  tobacco；　rated　at　a　certain　price。　It　is　more　convenient　for　the
  colonists　to　pay　in　tobacco　than　in　gold　and　silver。　It　would　be
  more　convenient　for　any　merchant　to　pay　for　t