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Rh carried on without the species of money or bullion, and that it is found by experience that they are carried in greatest abundance (as to a common market) to such places as give free liberty for exporting the same, and the better to keep in and increase the current coins of this kingdom," Here we find apparently a partial recognition of the principle, which was properly the distinguishing principle of the mercantile system, that a trade, though occasioning the export of bullion, might still be profitable, if its imports, by being re-exported, brought back to the kingdom more bullion than had in the first instance been carried out. It was upon this consideration that Mun first, and afterwards Child, endeavoured to establish the profitableness of the trade with India: they did not, and could not, deny that it was only to be carried on by a regular annual exportation of treasure to a considerable amount; but they contended that, although, looked at by itself, it thus showed an unfavourable balance, or, in other words, might be called a losing trade, yet it became in the end greatly the reverse by the much greater amount of treasure which it enabled us every year to draw back from other European countries, which we supplied, after satisfying our own consumption, with eastern commodities. As an answer to the particular objection which it professed to meet, this reasoning was sufficiently conclusive; and the mercantile system, in so far as it opposed the old prejudice against the exportation of gold and silver in any circumstances, was undoubtedly in the right, and was a step in advance. It was even in advance of the law of 1663, which only permitted the exportation of foreign bullion; for the argument urged by Mun and Child implied no limitation of that kind. Mun published his Defence of the East India Trade in 1621; his Treasure by Foreign Trade, his principal work, did not appear till 1664, some years after the author's death, but had probably been written about 1635 or 1640. Child's New Discourse of Trade, the principal object of which was to urge the reduction of the