Page:The wealth of nations, volume 3.djvu/420

412

of annual produce and consumption explained, ii. 218–219; may be in favor of a nation, when the balance of trade is against it, 219.

Balance of trade, no certain criterion to determine on which side it turns between two countries, ii. 187; the current doctrine of, on which most regulations of trade are founded, absurd, 206; if even, by the exchange of their native commodities, both sides may be gainers, 207; how the balance would stand, if native commodities on one side, were paid with foreign commodities on the other, 207–208; how the balance stands when commodities are purchased with gold and silver, 209; the ruin of countries often predicted from the doctrine of an unfavorable balance of trade, 218.

Banks, great increase of trade in Scotland, since the establishment of them in the principal towns, i. 410; their usual course of business, 412–413; consequences of their issuing too much paper, 416; necessary caution for some time observed by them with regard to giving credit to their customers, 422; limits of the advances they may prudently make to traders, 426; how injured by the practice of drawing and redrawing bills, 431–432; history of the Ayr bank, 435–440; history of the Bank of England, 441–444; the nature and public advantage of banks considered, 444–446; bankers might carry on their business with less paper, 447; effects of the optional clauses in the Scots notes, 451.—Origin of their establishment, ii. 193; bank money explained, 194.

Banks of England, the conduct of, in regard to the coinage, ii. 292.—Joint stock companies, why well adapted to the trade of banking, iii. 131–134; a doubtful question whether the government of Great Britain is equal to the management of the bank to profit, 215.

Bankers, the credit of their notes how established, i. 404; the nature of the banking business explained, 405—412; the multiplication and competition of bankers under proper regulation, of service to public credit, 456.

Baretti, Mr., his account of the quantity of Portugal gold sent weekly to England, ii. 284.

Barons, feudal, their power contracted, by the grant of municipal privileges, ii. 96; their extensive authority, 109; how they lost their authority over their vassals, 113; and the power to disturb their country, 115.

Barter, the exchange of one commodity for another, the propensity to, of extensive operation, and peculiar to man, i. 55; is not sufficient to carry on the mutual intercourse of mankind, 66–67. See Commerce.

Batavia, causes of the prosperity of the Dutch settlement there, ii. 409.

Beaver skins, review of the policy used in the trade for, ii. 439.

Beef, cheaper now in London than in the reign of James I., i. 236; compared with the prices of wheat at the corresponding times, 237.

Benefices, ecclesiastical, the tenure of,