Those of the first condition may live where they please; those of the second, must live where they can. The residence of the consumers, in many cases, determines that of the suppliers. In proportion, therefore, as those who live where they please choose to live together, in that proportion the others must follow them. And in proportion as the state thinks fit to place the administration of government in one place, in that proportion must the administrators, and every one depending upon them, be gathered together. These I take to be principles which influence the swelling of the bulk of capitals, and smaller cities. When the residence of the consumer does not determine that of him who supplies it, other considerations are allowed to operate. This is the case in what may properly be called manufactures, distinguished from trades, whether they be for home consumption, or foreign exportation. These considerations are, I. Relative to the place and situation of the establishment, which gives a preference to the sides of rivers and rivulets, when machines wrought by water are necessary; to the proximity of forests when fire is employed; to the place which produces the substance of the manufacture; as in mines, collieries, brick-works, &c. II. Relative to the conveniency of transportation, as upon navigable rivers, or by great roads. III. Relative to the cheapness of living, consequently not (frequently) in great cities, except for their own consumption. But it must be observed, that this last consideration can hardly ever be permanent: for the very establishment being the means of raising prices, the advantage must diminish in proportion as the undertaking comes to succeed. The best rule therefore is, to set down such manufactures upon the banks of navigable rivers, where all necessary provisions may be brought from a distance at a small cost. This advantage is permanent, the others are not; and may prove in time hurtful, by a change in these very circumstances which decided as to the choice of the situation. From the establishment of manufactures we see hamlets swell into villages, and villages into towns. Sea-ports owe their establishment to foreign trade. From one or other of these and similar principles, are mankind gathered into hamlets, villages, towns, and cities. ------------------------------------------------------------------------ CHAP. X. _Of the Consequences which result from the Separation of the two principal Classes of a People, the Farmers and the Free Hands, with regard to their Dwelling._ I am next going to examine the consequences resulting to the state, to the citizens, and to the landed interest, from this kind of separation, as I may call it, between the parent earth and her laborious children, which I suppose to take place every where in proportion to the progress of industry, luxury, and the swift circulation of money.