In countries that are poor, those who have the selling, but not the
manufacturing of goods, are so much greater gainers by selling goods
purchased on credit, of which they can keep a good stock and
assortment, than in selling from a shop or store scantily supplied with
ready money, that there is not almost any question about either price
or quality; there is not scarcely an alternative. In one line, a man can
begin who has scarcely any capital, and do a great deal of business; he
can even afford to sell the articles he purchases on credit with very
little profit, because they procure him ready money; whereas, if he
sells an article upon which he has no credit, he must replace it with
another, by paying money immediately. The consequence is, that
while those who sell to the public are poor, the nation or manufacturer
that gives the longest credit will have the preference; but this is daily
diminishing, for even with the capital of the rich nation itself, the
manufactures of the poor one are encouraged; the manner is as
follows:

A, at New York, purchases goods for one thousand pounds from B, at
London, which he sells without any profit, and, perhaps, at a
considerable loss; because B gives him twelve months credit. But A,
who has, by this means, got hold of money, as if by a loan, will not lay
that out with B, nor let him touch it till the year's end; and, having
made no profit by the sale of B's goods, he must turn to advantage the
money he obtained for them. According to the situation of mat-[end
of page #179] ters in the country, and the nature of A's concerns, he
will make more or less, but what he makes it is not the business to
investigate; it is sufficient to know, that he will lay his ready money
out with those who will sell cheap, in order to get by it; that is to say,
he will lay it out with some person in his own country. {148} Thus,
though the rich nation sells goods on credit at a price which cannot be