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1  2  3 


1 

2 

3 

4 

5 

6 

C.  BAGE 


AN 


IN     CL    U     I     R      Y 


INTO     THE 


Nature    and    Caufes 


OF    THE 


;^    ''iAU 


WEALTH   OF    NATIONS 


By    A1>AM    SMTTlf.   1.%,.  D*    and   F.  R.  S. 

Jommrly  Profeflbr  of  Moral  PhUofophy  in  the  Univeifitr  of  Glasgow-; 


# 


■ni- 


IN    TWO    VOLUMES. 
V  OL.iL 


'i  -  ■^'S 


9 


LONDON: 

PRINTED  FOR  W.  8TRAHAN  ;    AND  T.  CADELL,  IN  THE  STRANI>, 

MDCCLJULVU 


diJA;i    ) 


/VV-J/^A 


"/• 


Bublijhed  by  the  fame  A  u  T  h  or,, 


THE 


THEORY   OF   MORAL   SENTIMENTS:: 

An  Essay  towEards  an  Analyiis  of  Hie  Principles  by  which 

Men  naturally  judge  concerning  the  Condu(5t  and  Charai5ter,, 

firft  of  theic  Neighbours,  and  afterwards  of  themfelyeSk 


I . 


TO   WHICH   IS   ADDED. 


A  DISSERTATION   on   the,  Origin  of  Lanouags. 
The  Fourth  Edition.    Price  6  s,.  *' 


..i 


.  -iw»  ^#H%*wi*".'"'-i»'^..^r—  --^vm,^. 


f     t  \    .-••n-    V  ■*■ 


1  ,  ,^y    t 


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Sj       "        '*% 


CONTENTS 


0«   TH£ 


FIRST      VOLUME. 


,''«.■ 


Introouctiou  and  Plan  op  the  Work         •        Page  i 

BOOK!. 

'Of  the  Caufes  of  Improvement  in  the  pro- 
duftive  Powers  of  Labour,  and  of  the  Order 
according  to  which  its  Produce  is  naturally  diftri- 
buted  among  the  difierent  Ranks  of  the  People        c 


CHAP.    L 


Of  the  Divifion  of  Labour 


ibid. 


..  r".  ^.^ 


■):'C^v*. 


C  H  A  P.    II. 

Of  the  Principle  which  gives  Occafion  to  the  Divifion  of  Labour     i6 

C  H  A  P.    IM. 

^Jtat  the  Divifion  of  Labour  is  limited  by  the  Extent  of  the  rt. 
Market  -  -  «»  2i 

A  2 


j 


%. 


CONTENTS- 
CHAP.  IV. 

Off  the  Origin  and  VJe  of  Mbney  -i 


Page  27- 


e  H  A  P.    V. 

©/*  the  real  and  nomhial  Price  cf  Commoditiei,   or  of  their 
Price  in  Labour,  and  their  Price  in  Mi^ney.  - 


.  "t 


35. 


C  H.  A  14    VI. 

Of  the  component  Parts  of  the.  Price  of  Commodities-       ^  5^* 


_.  :^i.    >>/ 


•'I 


■'. ' 


6«-. 


76 


108 


CHAP.    VII. 

df  the  natural  and  market  Price  of  Commodities^  g- 

C  H  A  P.     VJIIl 

Of  the  Images  of  Labour  -  ^  ^ 

^    G  H  A  e;    IX.      - 

Of  the  Prof  ts  of  Stock.  -  -  s 

-'.^  ;r;nv/  c  h:a  P..  x;     -  -Vv>.- 

Of  Wsges  and  Proft  in-  the  different  "Bmphyments  tf  Labour 
and  Stock  -  -  -  -  121 

Fa  R  T   1  ft.     Inequalities  in  Usages  and  Profits  ar^Sng  fr^n  the 
Natureof  the.  different  Employments  of  both.  -  122: 

'■■-''.}  * 

Part  2d.     ImquaUties  occafioned  by  the  Policy  of  Europe  147; 


C  H  A  P.    Xf. 


Of  the  Rent  of  Land 


CO  KT  E  KTl 


FART  J  ft.     0/  the  Produce  of  Land  which  always  affords 
Kent  —  .     .    -  M^,         -  Page  1 8a 

-■*   '    '   "  ■    ,Tf    :        a  !t  •  *  -  ■        '  '  - 

Part  2d.     Of  the  Produce  of  Land  which  fometimes  does,  and 
fimetimij.  diet  not,  n^rd  Rent  *■  .  -im      ,;r.  209 

i»  *  .  -  '  ■ 

Part  3d;    Of  the  Variations  in  the  Proportion  between  the' 
reJ^ttSive  Values  of  that  Sort  of   Produce  which  alwojiS'  ,^    . 
affords  Rent,  and  of  that  which fometimes  does,  andfonutimes 
does  not  afford  Rent  —  —  —  aijjfc* 

TS^igreffon.  concerning  the  Variations  in  the  Vabu  (f,  Siher  dur-^ 
ing  the  Courfe  of  the  Four  laft  Centuries,. 


Firft  Period 
Second  Period 
^hird  Period' 


,  -JE 


\ 


^Ai 


22r 
240 
242 


Variations  in  the  PtopprtUiH-  hittween.  the  reJ^iSiive  Values  of 
Gold  and  Silver  —  — '       .  —  264. 

Grounds  ef  the  Sujpicionthat  the  Value  of  Silver  ^iH-continues 
to  decreafe  m^--    ^  -»         «  «»•■         37© 

Different  EffeBs  of  the  Progrefs  of  Improvement  upon  the  real 
Price  of  three  different  Sorts  of  rude  Produce        -        -        2.71 


"  •x/ 


■l«r 

•"■ 

''' 

i7Z 

'■'••Ifr'".- 

.274 
'    286 

Pirjl  Sort 
Second  Sort 
Xhird  Sort; 


Qonclufion  of  the   Dsgrejion  concerning  the  Variations  in  tbt 
Value:  of  Silver            -                         ...  ^.  g^ 

BffeSls  of  the  Progrefs  of  linpjrovement  upon  the  real  Price  of 
ManufaHures                   •••    :              —  —  ^©6 

GMcluJon  of  the  Chapter  m-  j--  qir 


CONTENTS^ 

»  ,, 

B  O  O  K    II. 

of  the   Nature,    Accumulation,   and  Employment 

of  Stock. 


Introduction 


CHAP.    I. 


Of  the  Divijhn  of  Stock 


Page  327 


CHAP.    II. 


Of  Money  confer ed  as  a  particular  Branch  of  the  general  Stock 
of  the  Society,  or  of  the  Expence  of  maintaining  the  National 
'  Capital  —  —  -  341 


.,3«.>.>v.v.<    ^,„^p_     „,_      -.i. 


H    <*V*5H 


Of  the  Aci.u:nflation  of  Capital,  or  of  produSlive  and  unpro* 
duSlive  Labour  —  -  ^  ^©^ 


Of  Stock  lent  at  Interejl 


CHAP.     IV. 


C  H  A  P.    V. 

Of  the  different  Employment  of  CapitaU 


—  ^  .*u    437 


Jh 


\fJ4i\. 


I  i 


MMMMIM 


CONTENTS^ 


BOOK   iir.      ' 

Of  the  diffdrent ^rogrefs  at  Opulence- in  different 

Nations* 


r      =•       Page  459r 


:'   ■  ■      '  i> 
C  H  A  R     I. 
(^T  tbe  natural  Fngrefi  ofi  Opulenci' 

■  ■    ■  * 

CHAP.    II.  - ..-«-- . 

Of  the  Djfcouragement  of  Agriculture  in  the  antient  State  of 
Europe  after  the  Fall  of  tbe  Roman  Empire  -  466^ 

C  H  A  P.    III. 

Of  the  Rife  and Brogrefs  of  Citiet  and  Towns,  after,  tie  Fall  of    tt  . 
tjbe  Roman  Empire  —  —  —  480 


e  H  A  p.  iv: 


How  tie  Commerce  of  tie  Towns  contributed  to  tie  Improvement 

^  tie  Country  —  —  "•         494- 

..       '  '        '••   ■  >        '  '    '. 

,    •  t;  -tY^  »-  •.•,■■."■'  V 


AM 


V/'.  'j;';  \0 


|; 


^\\kmi\v^y  S-^M.'\-  u-a\ 


^  • 


^^•i''4i-0: 


U    H 


COH    TENTS 


,-jf' 


OF   THE 

SECOND      VOLUME.      H^ 


^     BOOK    IV. 


v,f:i   VWl  '  ■"<i^ 


Of  Syflems  of  political  Oeconomy. 

Intioouction  <*  •  -»  —  Faje  i 

*  •"  "*      C  H  A  P.    I. 

Of  tie  Principle  of  the  Commercia/or  Mfrcantiie  Syjiem       -•        % 

C  H  A  P.    IL 

Of  Reftraints  upon  the  Importation  qf  fucb  Goods  from  Foreign 

Countries  as  can  be  produced  at  Home        •-  -  %i 

'  /  '  '„■'-'    ^ '  '-  •  .,    ' ' 

;  C  H  A  P.     III. 

Of  the  extraordinary  Reftraints  upon  the  Importation  of  Goods 
ofalmojl  all  Kinds t  from  tbofe  Countries  with  which  the  Ba" 
lance  is  fuppofed  to  be  difadvantageous  "  "  57 

Digreffion  concerning  Banis  of  Depoftt,  particularly  concerning 
that  of  Amfterdam  -  »  4»  #j 


Of  Drawbacks 


CHAP.    ly. 


87 


«OKTEKT8. 


P«ge  9» 

►        105 
....  .J 


C  H  A  P.    V. 

€/  BcUHtitt  •  ',!f  r.     ',   ^ 

l>%r^in  (oncernuif^  ik  Corn  trade  and  Corn  Laws 

CHAP.    VI. 

Of  Trtatia  of  Commerci .  -^.  U  t-)    •  ■••  13© 

U  H  A  P.     VII. 

QfCotonie^  ^    -  ,-    '^5,  «>..»v\v*  -h   ,<>  .1  '.    14^ 

Part  I.    Of  the  AUtives  for  efiaiiijhinf^  ntpCoionie*^      y     IbicL 

Part  II.    Caufes  of  the  PjoAenty^ofnew^^^^^^  ^y  ■,■  }SJ 

Part  III.    Oftbe  Advantages  nobicb  Europe  bos  derived  from  ' 
tbe  Difcovery  of  America,  andfrotfs,  tbat  if  a,PaJ/fige  to  tbe     ^ 
E4fi  Indies  fy  tbt  CJkpe  if'l^pd  m^  '     -i*^     *'>•."'!  .'ii* 


't* 


« »».  4 .« 


CHAP.     VIII4 

Of  tbe  AgricuUurai  Sy/fems,  or  of  tbofe  S^Jiems  of  political  *^ 
^'.Oeconomy  'ubifb  reprefent  tbe  Produce  of'jband,   as  eitBh^  ^ 
tbe  file  or  tbe  principal  Source  if  tbe  Revenue  and  Wealtb  of 
roerjrCounhj  ^     '^V^V^'    .%  ;•-■;'" 'ajd- 


'W-  mm 

■Cf^t,  \Va"^^  W.\i'71  Vj  ttiiVi»l\'>\.' 


<?<% 


V01.L  a 

.11     .1  A  1!  ') 


C^ tf  T  EK  T& 


,*\.^ 


.^.A> 


.V    /I  :■.:'::  .) 


.Vi\ 


*^  -fi^      -  B  O  OK     V.    "^ 

■     -  ■   ,    .1."-;;'.     >.'/,;   ^v^U -j>^ij^\^.-^V!"A^i  v,v^y\pi.X. 

Of  the  Revenue  of  the  Sovereign  or  Commonwealth 

C7i  »-  •    -    CHAP.     I.  />'«v*^*W»>\*  •^v''¥*'''^»? '^9 

O/*  />^^  Expenees  of  the  Scyereign  or  Commomnealtb        Page  291 

.li   i  .   i     A     i*     »y  , 

l^fVRT  I.    Of  the  Expfttce  of  Dtfence     "    ^  *     '  "iblfi. 


^ATiiT  II.    tf'thr'Empinei^fuJ^ci 

PXRT  III.     Cy  /iJf  Expence  of  puhltc  Works  and  fuhlic  Infii- 
'*'*''"  ■  ,v:-,  A>  vA  •^.  vlL  'lv.;,-.7  ^^•r^\«;^^i\;vv  -^^i  \0  ".Ui   ".  .^5?9 

^RTICLE  m.     Of  n>e  pmiU(  Worpy^^imjtij^ 

h'tatfMg  the  Commerce  <fihe  Society    '        -  -  330 

■<     .  .M"    /I  A  ::  J  .  ,^ 

AliTic*,«  ad,    (Q/*  tie  Mt^en^e  ^  th  inflittttmnt  Jmr  t^.  ^  -^ 

^ifTiCLB  3d.    Q^  /iSf  Expence  $f  the  Jt^itutuaUjf^^tla 
InfiruQion  ofPeopk  of  all  Ages  -  —        "    ^^ 

Part  IV.     Q/*  the  Expence  of  fupporting  the  Dignity  of  tie 
Sovereign  -    ■;  '  :   -r,   '     "m"    '  >;.  ;  ,  .^^        ,   ,  ^©jj, 

•     ,-  %    •  "'-  .  '"-  '  -  i  iK 

.'  Conclufton  (f  the  Chapter  t^,  B  &  4x0 


■'ti  jJ-*'*''!       'Ah 


B 


♦  1  .loV 


CHAP.    II. 
Of  the  Swrces  of  the  general  orj^ubUc  JUvemne  of  the  Society       412 


CONTENTS. 

Part  I.     Of  the  Funds  or  Sources  of  Revenue  nvbicb  may 
peculiarly  belong  to  the  Sovereign  or  Commonwealth  Page  412 


Part  II.    Of  Taxes 


42Z 


Article  ift.     Taxes  upon  Rent  rr       *       .     S*  4^^ 

Taxes  upon  the  Rent  of  Land  •»  —  -'        ibid. 

Taxes  which  are  proportioned,  not  to  the  Rent,  But  to  the  Pro^ 
duce  of  Land  —  —  —  —  438 

Taxes  upon  the  Rent  of  Houfes  —  —  -»      *       442 

Article  2d.     Taxes  upon  Profit,  or  upon  the  Revenue  arifing       1 
from  Stock  -  ■»  k*       ;      «*  452 

Taxes  upon  the  Profit  of  particular  Employments         —  459 

Appendix  to  Articles  ift  and  ad.     Taxes  upon  the  Ca- 
pital  yydue  of  Lands,  Houfis,  and  Stock        — ^        *>  467 


;  *     ,.^ ''-■''  w»f  ♦wi^. 


Article  ^A.    Taxes  upon  the  Wages  tf  Labour 


475 


Article  4th.     Taxes  which,  it  is  intended,  Jbould  faU  indif" 

ferently  upon  every  different  Species  of  Revenue  •  479 

Capitation  Taxes  —  —  —  ibid. 

Taxes  upon  confumable  Commodities  **  §•  482 

CHAP.    III. 
OfpubUc  Debts  2         ,«....  g  *  ^* 


fff 


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in  r:i:>.iT;!A  or  .ajaMKiiA 


XHXVi^^mXSiZ 


il     .^.  A  H  J 


t  :  '» 


i\\i<l  -iVilu'^^^^ 


^1  Jp' 


i  .  i\ 


:ni 


-r   ^    V  '- 


<*  •     •*. 


'-.JJiJi 


'■  !    .'  *  S  * 


A    N 


I      N      (^    U      I     R     Y 


INTO      THE 


v^-v  .   NATURE    AND    CAUSES 


t>   .,.    :>        OF    T  H  E      '^  ^-'^ 


WEALTH     OF     NATIONS. 


INTRODUCTION   AND   PLAN   OF   THE  WORK- 

TH  E  annual  labour  of  every  nation  is  the  fund  which  ori- 
ginally fupplies  it  with  all  the  neceffaries  and  conveniencies 
of  life  which  it  annually  confumes,   and  which  confift 
always,  either  in  the  immediate  produce  of  that  labour,  or  in  what 
is  purchafed  with  that  produce  from  other  nations. 

'/■■  ■  V     ,  ,  fc.-x       f  ^         ■    ^ 

'  "- "      -■■■■.■  •:  i 

>  According  therefore,  as  this  produce,  or  what  is  purchafed 
with  it,  bears  a  greater  or  fmaller  proportion  to  the  number  of  thofe 
who  are  to  confume  it,  the  nation  will  be  better  or  worfe  fupplied 
with  all  the  neceffaries  and  conveniencies  for  which  it  has  occafion. 

^  But  this  proportion  muft  in  every  nation  be  regulated  by  two 

different  circumftances ;  firft,  by  the  fkill,  dexterity  and  judgment 

Vol.  I.  B  ^ith 


■'  '-X'^ 


S  THE  NATURE  AND  CAUSES  OF 

Introduflion.  with  which  labour  is  generally  applied  in  it ;  and,  fecondly,  by  the 
proportion  between  the  number  of  thofe  who  are  employed  in 
uLf  ul  labour,  and  that  of  thofe  who  are  not  fo  employed.  What- 
ever be  the  foil,  climate,  or  extent  of  territory  of  any  particular 
nation,  the  abundance  or  fcantinefs  of  its  annual  fupply  muft» 
in  that  particular  fituation,  depend  upon  thofe  two  circumftaaces. 

The  abundance  or  fcantinefs  of  this  fupply  too  feems  to  de- 
pend more  upon  the  former  of  thofe  two  circumAatices  than  upon 
the  latter.  Among  the  favage  nations  of  hunters  and  fifhers,  every 
individual  who  is  able  to  work,  is  more  or  lefs  employed  in  ufeful 
labour,  and  endeavours  to  provide,  as  well  as  he  can,  the  neceflaries 
and  conveniencies  of  life,  for  himfelf,  and  fuch  of  his  family  or 
tribe  as  are  either  too  old,  or  too  young,  or  too  infirm  to  go  a 
hunting  and  fifhing.  Such  nations,  however,  are  fo  miferably  poor, 
that,  from  mere  want,  they  are  frequently  reduced,  or,  at  lead, 
think  themfelves  reduced,  to  the  neceflity  fometimes  of  direftly  de- 
ftroying,  and  fometimes  of  abandoning  their  infants,  their  old  peo- 
ple, and  thofe  afflidled  with  lingering  dlfeafes,  to  perifli  with 
hunger,  or  to  be  devoured  by  wild  beafts.  Among  civilized  and 
thriving  nations,  on  the  contrary,  though  a  great  number  of  people 
do  not  labour  at  all,  many  of  whom  confume  the  produce  of  ten 
times,  frequently  of  a  hundred  times  more  labour  than  the  greater 
part  of  thofe  who  work  ;  yet  the  produce  of  the  whole  labour  of  the 
fociety  is  fo  great,  that  all  are  often  abundantly  fupplied,  and  a 
workman,  even  of  the  lowed  and  poorefl  order,  if  he  is  frugal  and 
induilrious,  may  enjoy  a  greater  fhare  of  the  neceflaries  and  con- 
veniencies of  life  than  it  is  poilible  for  any  favage  to  acquire. 

The  caufes  of  this  improvement,  in  the  productive  powers  of 
labour,  and  the  order,  according  to  which  its  produce  is  naturally 

diftributed 


.  I, 


-^^ 


THE    WEALTH    OF    NATIONS.  3 

diftrlbuted  among  the  different  ranks  and  conditions  of  men  in  the-^^*^"^"^'""- 
ibciety,  make  tiie  fubje£l  of  the  Firft  Book  of  this  Inquiry. 

Whatever  be  the  adlual  ftate  of  the  (kill,  dexterity,  and  judg- 
ment with  which  labour  is  applied  in  any  nation,  the  abundance 
or  fcantinefs  of  its  annual  fupply,  muft  depend,  during  the  con- 
tinuance of  that  ftate,  upon  the  proportion  between  the  number  of 
thofe  who  are  annually  employed  in  ufeful  labour,  and  that  of  thofe 
who  are  not  fo  employed.  The  number  of  ufeful  and  produdlivc 
labourers,  it  will  hereafter  appear,  is  every  where  in  proportion  to  the 
quantity  of  capital  ftock  which  is  employed  in  fetting  them  to  work,  and 
to  the  particular  way  in  which  it  is  fo  employed.  The  Second  Book, 
therefore,  treats  of  the  nature  of  capital  ftock,  of  the  manner  in 
which  it  is  gradually  accumulated,  and  of  the  different  quantities  of 
labour  which  It  puts  into  motion,  according  to  the  different  ways 
in  which  it  is  employed. 

Nations  tolerably  well  advanced  as  to  fkill,  dexterity,  and  judg- 
ment, in  the  application  of  labour,  have  followed  very  different 
plans  in  the  general  condud  or  direction  of  it ;  and  thofe  plans 
have  not  all  been  equally  favourable  to  the  greatnefs  of  its  produce. 
The  policy  of  fome  nations  has  given  extraordinary  encouragement 
to  the  induftry  of  the  country;  that  of  others  to  the  induftry  of 
towns.  Scarce  any  nation  has  dealt  equally  and  impartially  with 
every  fort  of  induftry.  Since  the  downfal  of  the  Roman  empire, 
the  policy  of  Europe  has  been  more  favourable  to  arts,  manufac- 
tures, and  commerce,  the  induftry  of  towns ;  than  to  agriculture,  the 
induftry  of  the  country.  The  circumftances  which  feem  to  have 
introduced  and  eftabliflied  this  policy  are  explained  in  the  Third  Book. 

Though  thofe  different  plans  were,  perhaps,  firft  introduced  by 
the  private  interefts  and  prejudices  of  particular  orders  of  men,  with- 

B  2  out 


frff 


THE   NATURE    AND    CAUSES    OF 

introduflion.  ©ut  any  regard  to,  or  forefight  of,  their  confequences  upon  the 
general  welfare  of  the  fociety;  yet  they  have  given  occafion  to  very 
different  theories  of  political  oeconomy  ;  of  which  fome  magnify  the 
importance  of  that  induftry  which  is  carried  on  in  towns,  others  of 
that  which  is  carried  on  in  the  country.  Thofe  theories  have  had  a 
confiderable  influence,  not  only  upon  the  opinions  of  men  of  learn- 
ing, but  upon  the  public  conduct  of  princes  and  fovereign  ftates.  I 
have  endeavoured,  in  the  Fourth  Book,  to  explain,  as  fully  and  di(^ 
tindly  as  I  can,  thofe  different  theories,  and  the  principal  effects 
which  they  have  produced  in  different  ages  and  nations. 


In  what  has  confifted  the  revenue  of  the  great  body  of  the 
people,  or  what  is  the  nature  of  thofe  funds  which,  in  different 
ages  and  nations,  have  fupplied  their  annual  confumption,  is  treated 
of  in  thefe  four  firfl:  Books.  The  Fifth  and  laft  Book  treats  of  the 
revenue  of  the  fovereign,  or  commonwealth.  In  this  Book  I  have 
endeavoured  to  Ihow ;  firft,  what  are  the  neceffary  expences  of  the 
fovereign,  or  commonwealth;  which  of  thofe  expences  ought  to 
be  defrayed  by  the  general  contribution  of  the  whole  fociety ;  and 
which  of  tliem,  by  that  of  fome  particular  part  only,  or  of  fome 
particular  members  of  the  fociety  :  fecondly,  what  are  the  different 
methods  in  which  the  whole  fociety  may  be  made  to  contribute 
towards  defraying  the  expences  incumbent  on  the  whole  fociety, 
and  what  are  the  principal  advantages  and  inconveniencles  of  each 
of  thofe  methods  :  and,  thirdly  and  laftly,  what  are  the  reafons  and 
caufes  which  have  induced  almoft  all  modern  governments  to  mort- 
gage fome  part  of  this  revenue,  or  to  contrail  debts,  and  what  have 
been  the  effeds  of  thofe  debts  upon  the  real  wealth,  the  annual 
produce  of  the  land  and  labour  of  the  fociety. 


>  f«  ;•>.— 


BOOK 


--THE    WEALTH    OF    NATIONS. 


■'l?*f>:.  iW-; 


BOOK 


I. 


Of  the  Caufes  of  Improvement  in  the  produdive  Powers  of 
.  Labour,  and  of  the  Order  according  to    which  its  Pro- 
duce is  naturally  diftributed  among  the  different  Ranks 
of  the  People.  . 


;.ti.  „\ 


CHAP. 
I. 


CHAP.    L 

c    -    ;    ^.-M      Of  the  Divlfion  of  Labour.  '        ' 

TH  E  greateft  improvements  ia  the  produ(Sl:ive  powers  of  La-    B  o  o  ic 
hour,  and  the  greater  part  of  the  fkill,  dexterity,  and  judg- 
ment with  which  it  is  any  where  diredled,  or  applied,  fcem  to  have 
been  theeffeda  of  the  divilion  of  labour.  '  > 

The  efFeds  of  the  divifion  of  labour,  in  the  general  bufinefs  of 
fociety,  will  be  more  eafdy  underdood,  by  confidering  in  what 
manner  it  operates  in  fome  particular  manufactures.  It  is  com- 
monly fuppofed  to  be  carried  furtheft  in  fome  very  trifling  ones  J 
not  perhaps  that  it  really  is  carried  further  in  them  than  in  others 
of  more  importance  :  but  in  thofe  trifling  manufadures  which  are 
deflined  to  fupply  the  fmall  wants  of  but  a  fmall  number  of  people, 
the  whole  number  of  workmen  muft  necefliarily  be  fmall  ;  and  thofe 
employed  in  every  different  branch  of  the  work  can  often  be  collected 
into  the  fame  worklioufe,  and  placed  at  once  under  the  view  of  the  fpec- 
tator.  In  thofe  great  manufactures,  on  the  contrary,  which  are 
deftined  to  fupply  the  great  wants  of  the  great  body  of  the  people, 
every  different  branch  of  the  work  employs  fo  great  a  number  of 

workmen*. 


THE    NATURE    AND    CAUSES    OF 


workmen,  that  it  is  impoffible  to  coUcdt  them  all  into  the  fame  work- 
houre.  We  can  feldom  fee  more,  at  one  time,  than  thofe  employed 
in  one  fingle  branch.  Though  in  them,  therefore,  the  work  may 
really  be  divided  into  a  much  greater  number  of  parts,  than  in  thofe 
of  a  more  trifling  nature,  the  divifion  is  not  near  fo  obvious,  and 
has  accordingly  been  much  Icfs  obferved. 


To  take  an  example,  therefore,  from  a  very  trifling  manufac- 
ture ;  but  one  in  which  the  divifion  of  labour  has  been  very  often 
taken  notice  of,  the  trade  of  the  pin -maker  ;  a  workman  not  edu- 
cated to  this  bufinefs  (which  the  divifion  of  labour  has  rendered 
a  di(lin£t  trade),  nor  acquainted  with  the  ufe  of  the  machinery 
employed  in  it  (to  the  invention  of  which  the  fame  divifion  of 
labour  has  probably  given  occafion),  could  fcarce,  perhaps,  with  his 
utmoft  induftry,  make  one  pin  in  a  day,  and  certainly  could  not 
make  twenty.     But  in  the  way  in  which  this  bufinefs  is  now  carried 
on,  not  only  the  whole  work  is  a  peculiar  trade,  but  it  is  divided 
into  a  number  of  branches,  of  which  the  greater  part  are  likewife 
peculiar  trades.     One  man  draws  out  the  wire,  another  firaights  it, 
a  third  cuts  it,  a  fourth  points  it,  a  fifth  grinds  it  at  the  top  for  re- 
ceiving the  head ;  to  make  the  head  requires  two  or  three  diAindt 
operations  ;  to  put  it  on,  is  a  peculiar  bufinefs,  to  whiten  the  pins  is 
another ;  it  is  even  a  trade  by  itfelf  to  put  them  into  the  paper  ; 
and  the  important  bufinefs  of  making  a  pin  is,  in  this  manner,  di- 
vided into  about  eighteen  diftin(St  operations,  which  in  fome  manu- 
factories are  all  performed  by  diftinft  hands,  though  in  others  the  fame 
man  will  fometimes  perform  two  or  three  of  them.     I  have  feen  a 
fmall  manufactory  of  this  kind  where  ten  men  only  were  employed, 
and  where  fome  of  them   confequently  performed   two  or  three 
diftin£t  operations.     But  though  they  were  very  poor,  and  there- 
fore but  indifferently  accommodated  with  the  neceflary  machinery, 
ihey  could,  when  they  exerted  themfelves,  make  among  them  about 

8  twelve 


4 


THE    WEALTH    OF    NATIONS^  * 

twelve  pounds  of  pins  in  a  day.  There  are  in  a  pound  upwards  of  ^  HA  i'. 
four  thoufand  pins  of  a  middling  fize.  Thofe  ten  perfons,  there- 
fore, could  make  among  them  upwards  of  forty- eight  thoufand  pins 
in  a  day.  Each  perfon,  therefore,  making  a  tenth  part  of  forty- 
eight  thoufand  pins,  might  be  confidered  as  making  four  thoufand 
eight  hundred  pins  in  a  day.  But  if  they  had  all  wrought  fcparatcly 
and  independently,  and  without  any  of  them  having  been  educated 
to  this  peculiar  bufinefs,  they  certainly  could  not  each  of  them  have 
made  twenty,  perhaps  not  one  pin  in  a  day;  that  is,  certainly, 
not  the  two  hundred  and  fortieth,  perhapa  not  the  four  thoufand 
eight  hundredth  part  of  what  they  are  at  prcfent  capable  of  per- 
forming, in  confequence  of  a  proper  divifion  and  combination  of 
their  different  operations. 


In  every  other  art  and  manufadure,  the  effects  of  the  divifion 
of  labour  are  funilar  to  what  they  are  in  this  very  trifling  one ; 
though,  in  many  of  them,  the  labour  can  neither  be  fo  much  fub- 
(iivlded,  nor  reduced  to  fo  great  a  fimplicity  of  operation.  The  di- 
vifion of  labour,  however,  fo  far  as  it  can  be  introduced,  occafions, 
in  every  art,  a  proportionable  increafe  of  the  produdive  powers  of 
labour.  The  feparation  of  different  trades  and  employments  from 
one  another,  feema  to  have  taken  place,  in  confequence  of  this 
advantage.  This  feparation  too  is  generally  carried  furtheft  in 
thofe  countries  which  enjoy  the  higheft  degree  of  induftry  and  im- 
provement ;  what  is  the  work  of  one  niin,  in  a  rude  ftate  of  fociety, 
being  generally  that  of  feveral,  in  an  improved  one.  In  every  im- 
proved fociety,  the  farmer  is  generally  nothing  but  a  farmer ;  the 
manufacturer  nothing  but  a  manufacturer.  The  labour  too  which 
is  neceffary  to  produce  any  one  complete  manufacture,  is  almoft 
always  divided  among  a  great  number  of  hands.  How  many 
different  trades  are  employed  iri  each  branch  of  the  linen  and  woollea 
manufactures,  from  the  growers  of  the  flax  and  the  wool,  to  the 

bleachers 


f 


8 


BOOK 
I. 


^Sif. 


K 


THE    NATURE    AND    CAUSES    OF 

bleachers  and  fmoolhers  of  the  linen,  or  to  the  dyers  and  dreflTers  of 
the  cloih  !  The  nature  of  agriculture,  indeed,  does  not  admit  of  fo 
many  fubdivifiona  of  labour,  nor  of  fo  complete  a  fcparation  of  one 
biiliiicrs  from  another,  as  manufactures.  It  is  impoffible  to  feparate 
fo  entirely,  the  bufinefs  of  the  grazier  from  that  of  the  corn-farmer, 
as  the  trade  of  the  carpenter  is  commonly  fcparated  from  that  of  the 
fmith.  The  fpinner  is  almoft  always  a  diAindt  perfon  from  the 
weaver ;  but  the  ploughman,  the  harrower,  the  fower  of  the  feed, 
and  the  reaper  of  the  corn,  are  often  the  fame.  The  occafions  for 
thole  different  forts  of  labour  returning  with  the  different  feafons  of 
the  year,  it  is  impoffible  that  one  man  fhould  be  conftantly  employ- 
ed in  any  one  of  them.  This  impoffibility  of  making  fo  complete 
and  entire  a  fcparation  of  all  the  different  branches  of  labour  em- 
ployed in  agriculture,  is  perhaps  the  reafon  why  the  improve- 
ment of  the  produdtive  powers  of  labour  in  this  art,  docs  not 
always  keep  pace  with  their  improvement  in  manufadlurei.  The 
moft  opulent  nations,  indeed,  generally  excel  all  their  neighbours  in 
agriculture  as  well  as  in  manufactures;  but  they  are  commonly  more 
diftinguilhed  by  their  fuperiority  in  the  latter  than  in  the  former. 
Their  lands  are  in  general  better  cultivated,  and  having  more  la- 
bour and  expence  beftowed  upon  them,  produce  more,  in  propor- 
tion to  the  extent  and  natural  fertility  of  the  ground.  But  the 
fuperiority  of  produce  is  feldom  much  more  than  in  proportion  to 
the  fuperiority  of  labour  and  expence.  In  agriculture,  the  labour 
of  the  rich  country  is  not  always  much  more  productive  than  that 
of  the  poor ;  or,  at  leaft,  it  is  never  fo  much  more  productive,  as  it 
commonly  is  in  manufactures.  The  corn  of  the  rich  country,  there- 
fore, will  not  always,  in  the  fame  degree  of  goodnefs,  come  cheaper 
to  market  than  that  of  the  poor.  1  he  corn  of  Poland,  in  the  fame 
degree  of  goodnefs,  is  as  cheap  as  that  of  France,  notwithftanding 
the  fuperior  opulence  and  improvement  of  the  latter  country.  The 
corn  of  France  is,  in  the  corn  provinces,  fully  as  good,  and  in  moft 

years 


THE    WEALTH    OF    NATIONS. 

years  nearly  about  the  fame  price  with  the  com  of  England, 
though,  ift  opulence  and  improvement,  France  is  perhaps  in- 
ferior to  England.  The  lands  of  England,  however,  are  better 
cultivated  than  thofe  of  France,  and  the  lands  of  France  are  faid 
to  be  much  better  cultivated  than  thofe  of  Poland.  But  though 
the  poor  country,  notwithflanding  the  inferiority  of  its  culti- 
vation, can,  in  fome  meafure,  rival  the  rich  in  the  cheapnefs  and 
goodnefs  of  its  corn,  it  can  pretend  to  no  fuch  competition  in  its 
manufadlures ;  at  lead  if  thofe  manufactures  fuit  the  foil,  climate, 
and  fituation  of  the  rich  country.  The  filks  of  France  are  better 
and  cheaper  than  thofe  of  England,  becaufe  the  filk  manufacture 
does  not  fuit  the  climate  of  England.  JBut  the  hardware  and  the 
coarfe  woollens  of  England  are  beyond  all  comparifon  fuperior  to 
thofe  of  France,  and  much  cheaper  too  in  the  fame  degree  of 
goodnefs.  In  Poland  tliere  are  faid  to  be  fcarce  any  manufactures 
of  any  kind,  a  few  of  thofe  coarfer  houfehold  manufactures  ex- 
cepted, without  which  no  country  can  well  fiibfiflr.  cUii  4rtvi?j,:  ; » 
■:h-m'ii  htm  \7k1mh  yiom  muf  ..>  lU:  i- ::  .!>»t'i. ».'.'.  i  Ct 

i^  This  great  increafe  of  the  quantity  of  work,  which  the  fame 
number  of  people  are  capaUe  of  performing,  in  confequence  of 
the  divifion  of  labour,  is  owing  to  three  different  circumftances  j 
firft,  to  the  increafe  of  dexterity  in  every  paiticular  workman ; 
fecondly,  to  the  faving  of  riie  time  which  is  commonly  loft  in 
pafling  from  one  fpecies  oif.  work  to  another;  and  laftly,  to  the 
invention  of  a  great  number  of  machines  whi^h  facilitate  and 
abridge  labQur,  and  enable  one  man  to  do  the  work  of  many. 

First,  ,the  improvement  of  the  dexterity  of  the  workman  ne- 
cefTarily  increafes  the  ^quantity  of  the  work  he  can  perform,  and 
the  divifion;  of -labour,  by  reducing  every  man's  buiinefs  to  fome 
one  fimple  operation,  and  by.  making  this  operation  the  fole  em- 
ployment of  his  life,  necefiarily  increafes  very  much  the  dexterity 

Vol.  I.  C  of 


CHAP. 
I. 


10 


THE  NATURE  AND  CAUSES  OF 

of  the  worfcmMi.  A  common  imith,  who,  though  aecoftomed  to 
handle  the  hammer,  has  never  been  ufed  to  make  naik,  if  upoa 
fome  particular  ocoafion  he  is  obliged  to  attempt  it,  will  Tcaroe,  I 
am  alTured,  be  able  to  make  i^ve  two  or  tL^e  hundred  nails  in 
a  day,  and  thofe  too  very  bad  ones.  A  fmith  who  has  been  $cc\iCm 
tomed  to  make  nails,  but  whoie  folc  or  principal  bufiners  has  not 
hcen  that  of  a  nailer,  can  (eldom  with  lits  utmiG^  ^ili^^ce  mi^ 
'inore  than  eight  hundred  or  a  riioufand  nails  in  a  day.  I  kawc 
fcen  feveral  boys  under  twenty  years  of  age  who  had  never  .cKa- 
cifed  any  other  trade  but  that  of  making  nails,  and  wk ,  wh;:^! 
they  exerted  themfdves,  could  make,  oach  o{  them,  upw^vct  ojF 
two  thoufand  three  hundred  nails  in  a  day.  'i'hc  >  '  ing  «f  a 
nail,  however,  is  by  no  means  one  of  the  fuBplcft  o^iitions.  Thr: 
iame  perfon  blows  the  bellows,  Airs  or  mends  the  fire  as  tliore  ia 
occftfion,  heats  the  iron,  and  forges  eviery  fart  of  the  nail:  In 
forging  the  head  too  he  is  obliged  to  diange  his  iooli.  The  dtSeront 
operations  into  which  the  making  of  a  pin,  or  of  a  metal  button* 
is  fubdivided,  are  all  of  them  much  more  fimple,  and  the  dex- 
terity of  the  perfon,  of  whoTe  life  it  has  been  the  fole  bufmefs 
to  peiform  thera,  is  uibally  much  ^nater.  The  ra^xdity  with 
«vhichfome  of  the  operations  of  thofe«ianufa6hues  are  performed* 
exceeds  what  the  human  hand  conld,  by  thofe  who  had  never  leea 
"them,  be  fuppofed  capable  of  acquiring.  -— -. 

"Secondly,  the  advantage  which  is  gained  hy  faving  the  time 
commonly  loft  in  paffmg  from  one  fort  of  work  to  another,  is 
much  greater  than  we  ihould  at  6rft  view  be  apt  to  imagine  it. 
It  is  impoilible  to  pafs  very  quickly  irm\>  -^ne  kind  of  MM)rk  to  an- 
other, that  is  carried  on  in  a  difR  <i  ".a-  .  widwitU^ite  differ- 
ent  tools.  A  country  weaver,  who  cdtivofes a Tmalllafrm,  rauft 
lofe  a  good  deal  of  time  in  pafling  from  his  Joom  to'<)he  field,  jand 
from  the  field  to  his  loom.  When  4^e  two  trades  can  be  cav- 
4  -      /ried 


I 


i 


THE    WEALTH     OF    NATIONS. 


II 


.M.y.-ii 


t'lti  on  in  tl»  ftmc  workhoufe,  the  lofs  of  time  i«  no  doubt  much  CHAP. 
IvAk  ^^  is  even  ifl  tliis  cafe,  however,  very  coti&k««hle.  A  man 
commonly  fi>»mt«r8  a  little  in  tnrning  his  haral  from  one  fort  of 
cmi>byment  to  another.  When  he  fivik  bcguis  the  new  work  he 
is  feMom  very  keen  and  hejiity ;  his  mimi,  as  they  fay,  docs  not 
go  to  it,  and  for  fbmc  time  he  rather  trifles  than  applies  to  good 
purpofe.  The  habit  of  £iuntering  snd  of  indolent  ci.  ^«v'is  :ip- 
plication,  which  is  naturally,  or  rather  neceflarily  acqi  red  by 
every  country  workman  who  is  obliged  to  change  pun  wor*^  and 
his  tools  every  half  hour,  and  to  apply  his  hand  in  twenty  Hiit,  fmt 
ways  almoft  everyday  of  his  lifcj  renders  him  almoft  alv^  s  {[nfh- 
ful  and  laty,  and  incapable  of  any  vigorous  appi  cation  m  ,  n 
the  moft  prefllng  occafions.  Independent,  therctore,  of  *i.s  dc  - 
ficiency  in  point  of  dexterity,  this  catife  alone  mufl  always  i^4ii4^ 
confiderably  the  quantity  of  worl.  which  he  is  capable  of  pdiiMn* 
ing.  ^*'  '!• 
...-if.'siti  i^j^'ix-    ' 

Thirdly,  and  laftly,  eveiy  boly  muft  be  fenfible  how  n  ich 
labour  is  facilitated  and  abridged  by  the  application  of  proper  ft^ - 
chineiy.  It  is  unneceflary  to  give  any  example.  I  fl'^all,  thercfc>"c, 
only  obferve  that  the  invention  of  all  thofe  machines  by  wMMfi 
labour  is  fo  much  facilitated  and  abridged,  feems  to  have  bean 
originally  owing  to  the  divifion  of  laoour.  Men  are  much  more 
Kkely  to  difiiover  cafier  and  readier  methods  of  attaining  any  objea: 
when  the  whole  attentibn  of  their  minds  is  direflcd  towards  that 
fingltt  objeft,  than  when  it  is  difllpated  among  a  great  variety  of 
things.  But  in  confequence  of  the  divifion  of  labour,  tlie  whole 
of  every  man's  attention  comes  naturally  to  be  direfled  towards 
fbmc  one  very  fimple  objeft.  It  is  naturally  to  be  expefted,  tJiere- 
foref,  t!hat  fome  onfe  ef  oilier  of  thofe  v/ho  are  cmpisiyed  in  each 
partictd&r  branch  of  labdin^  fhould  fgon  find  out  eafier  and  reridier 
methods  of  perfbrmihg  their  own  particular  work  wherever  tlie 

^  *  nature 


12 


THE  NATURE  AND  CAUSES  OF 


BOOK  nature  of  it  admits  of  fuch  improvement.  A  great  part  of  the 
machines  employed  in  thofe  manufaQures  in  which  labour  is  mod 
fubdivided,  were  originally  the  inventions  of  common  workmen, 
who,  being  each  of  them  employed  in  fome  very  fimple  operation, 
naturally  turned  their  thoughts  towards  finding  out  eafier  and 
readier  methods  of  performing  it.  Whoever  has  been  much 
accuftomed  to  vilit  fuch  manufactures,  muft  frequently  have 
been  fhovvn  very  pretty  machines,  which  were  the  inventions  o£ 
common  workmen  in  order  to  facilitate  and  quicken  their  own 
particular  part  of  the  work.  In  the  firft  fire-engines,  a  boy  was 
conftantly  employed  to  open  and  ftiut  alternately  the  commimi- 
cation  between  the  boiler  and  the  cylinder,  according,  as  thfe  pifton 
either  afcended  or  defcended.  One  of  thofe  boys,  who  loved  to 
play  with  his  companions,  obferved  that,  by  tying  a  firing  from 
the  handle  of  the  valve,  which  opened  this  communication,  to 
another  part  of  the  machine,  the  valve  would  open  and  fhut 
witliout  his  affiftance,  and  leave  him  at  liberty  to  divert  himfelf 
with  his  play-fellows.  One  of  the  gieatefl  improvements  that 
has  been  made  upon  this  machine,  fince  it  was  firfl  invented, 
was  in  this  manner  tlie  difcovery  of  a  boy  who  wanted  to  fave 


his  own  labour.. 


t»Vi-l4 


>     ti\'itii-'  III 


All  the  improvements  in  machinery,  however,  have  by  no 
means  been  the  inventions  of  thofe  who  had  occafion  to  ufe  the 
macliines.  Many  improvements  have  been- made  by  the  ingenuity 
of  the  makers  of  the  machines,  when  to  make  them  became 
the  bufinefs  of  a  peculiar  trade ;  and  fome  by  that  of  thofe.  who 
are  called  philofophers  or  men  of.  fpeculation,.  whofe  trade  it  is, 
not  to  do  any  thing,  but  to  obfeive  every  thing  j  and  who,  upon 
that  account,  are  often  capable  of  combining  together  the  powers 
of  the  mofl  diftant  and  diflimilar  objefts.  In  the  progrefs  of 
fociety,  philofophy  or  fpeculation  becomes,  like  every  other  em* 

'    ^   ,  "'  ployment. 


THE    WEALTH    OF    NATIONS. 


»3 


ployment,  the  principal  or  fole  trade  and  occupation  of  a  particular  C  HA  P; 
clafs  of  citizens.  Like  every  other  employment  too,  it  is  fub- 
divided  into  a  great  number  of  different  branches,  each  of  which 
afFoids  occupation  to  a  peculiar  tribe  or  dafs  of  philofophers ;  and 
this  fubdivifion  of  employment  in  philofophy,  as  well  as  in  every 
other  bufmefa,  improves  dexterity  and  faves  time.  Each  indi- 
vidual becomes  more  expert  in  his  own  peculiar  branch,  more 
work  is  done  upon  the  whole,,  an^  the  quantity,  of  fcicnce  is  con-i- 
fiderably  increafed  by  it^  ■*  \    .     •  ; ,       •.•.;:'.: 


£.*;' 


•,t.r 


.!.  „vl 


Tt  is  the  great  multiplication  of  the  produftions  of  all.  the 
diiFerent  arts,  in  confequence  of  the  divifion  of  labour,  which 
occafions  in.  a  well  governed  fociety  that  univerfal  opulence  which 
extends  itfclf  to  the  loweft  ranks  of.  the  people.  Every  workman . 
has  a  great  quantity  of  his  own  work  to  difpofe  of  beyond  what  he 
himfelf  has  occafion  for;  and  every  other  workman  being  exactly 
in  the  fame  fituation,. he  is. enabled  to  exchange  a  great  quantity 
of  his  own. goods  for  a  great  quantity,  or,  what  comes  to  the  fame 
thing,  for  the  price,  of  a  great  quantity,  of  theirs.  He  fupplies 
them  abundantly  with  what  they,  have  occallon  for,,  and  they 
accommodate  him  as  amply  with  what  he  has  occafion  for,  and  a 
general  plenty  diffufes  itfelf,  through  all  the  different  ranks  of  the 
l9ciety. 


U     »  I  y   <  / 


S!''^    ^ 


V:V^ 


*  Observe  the  accommodation  of  the  moft  commoa  artificer  ox 
day-labourer  in  a  civilized  and  thriving  country,  and  you  will 
perceive  that  the  number  of  people  of  whofe  induflry  a  parti 
though  but  a  fmall  part,  has  been  employed  in  procuring  him  this 
accommodation  exceeds  all  computation.  The  woollen  coat,  for 
example,  which  covers  the  day-labourer,  as  coarfe  and  rough 
as  it  may  appear,  is  the  produce  of  the  joint  labour,  of  a  great 
multitude  of  workmen.  The  fliepherd,  the  foiter  of  the  wool, 
I>.  .;  the 


f# 


THE    NATURE    AND    CAUSES    OP 


;  1 


BOOK  the  wool- comber  at  carder,  the  dyer,  the  fcribbler,  the  fpinner, 
the  weaver,  the  fuller,  the  drefler,  with  many  other?,  muft  all 
join  their  different  arts  in  order  to  complete  even  this  homely 
production.  How  many  merchants  and  carriers,  beftdes,  muft 
have  been  employed  in  tranfporting  the  materials  from  fome  of 
thofe  workmen  to  others  who  often  live  in  a  very  diftant  part 
of  the  cott^nfry !  how  much  commerce  and  navigation  in  particu- 
lar, Iww  many  fliip-builders,  failors,  fail-makers,  rope-makers, 
muft  have  been  employed  in  order  to  bring  together  the  different 
drugs  made  ufe  of  by  the  dyer,  which  often  come  from  the  remoteft 
comers  of  the  world !  What  a  variety  of  labour  too  is  neceflfery 
in  order  to  produce  the  tools  of  the  meaneft  of  thofe  workmen ! 
To  fay  nothing  of  fuch  complicated  machines  as  the  fliip  of  the 
failor,  tlie  mill  of  the  fuller,  or  even  the  loom  of  the  weaver,  let 
us  confider  only  what  a  variety  of  labour  is  requifite  in  order  to 
form  that  vei7  fimple  machine,  the  (hears  with  which  the  (hepherd 
clips  the  wool.  The  mrher,  the  builder  of  the  furnace  for  fmelt- 
ing  the  ore,  the  feller  of  the  timbei',  the  burner  of  the  charcoal 
to  be  made  ufe  of  in  the  fmelting  houfe,  the  brick-maker,  the 
i>fick-layer,  the  workmen  who  attend  the  furnace,  the  mill- 
Wright,  the  forger,  the  fmith,  muft  all  of  them  join  their  differ- 
ent arts  in  order  to  produce  them.  Were  we  to  examine,  in  the 
fame  manner,  all  the  different  parts  of  his  drefs  and  houfehold 
furniture,  the  coarfe  linen  fliirt  which  he  wears  next  his  Ikin, 
the  fhoes  which  cover  his  feet,  the  bed  which  he  lies  on,  and  all 
the  diffcient  paftts  which  compofe  it,  the  kitchen  grate  at  which 
he  pi'cpares  his  vi(5hials,  the  coats  which  he  makes  ufe  of  for  that 
purpofr,  dug  ft'om  the  bowels  of  the  earth,  and  brought  to  him 
perhflps  by  a  tehg  fea  and  a  long  land  carriage,  all  the  other  utenfils 
o£  his  kitchen,  aH  the  furniture  of  his  table,  tlie  knives  and  forks, 
the  earthen  or  pewter  phtes  upon  which  he  ferves  up  and  divides 
his  victuals,  the  different  hands  employed  in  preparing  his  bread 

and 


THE    WEALTH    OF    NATIONS. 


»5 


lets 


and  the  light,    CHAP. 


and  his  beer,  the  glafs  window  which 
and  keeps  out  the  wind  and  the  rain,  with  all  the  knowledge  and 
art  requilite  for  preparing  that  beautiful  and  happy  invention, 
without  which  thetfe  northern  parts  of  the  world  could  fcasce  have 
afforded  a  very  comfortable  habitation,  together  with  the  tools  of 
all  the  different  workmen  employed  in  producing  thofe  different 
conveniencies  j  if  we  examine^  I  fay,  all  thefe  tilings,  and  confider 
w'hat  a  variety  of  labour  is  employed  about  each  of  them,  we  Ihall 
l)e  fenfible  that  without  the  affiftance  and  co-operation  of  many 
dioufands,  the  very  meaneft  perfon  in  a  civilized  country  could  not 
'be  provided,  even  accorcKng'to  what  we  very  falfely  imagine  the  eafy 
and  fimple  manner  in  which  h6  is  commonly  accommodated.  Com- 
pared, indeed,  with  the  more  extravagant  luxury  of  the  great,  his 
accommodation  muft  no  doubt  appear  extremely  fimple  and  eafy  i. 
and  yet  it  may  be  true  peiliaps  that  the  accommodation  -  of  aa 
European  prince  does  not  always  fo  much  exceed  that  of  an  jn- 
duftrious  and  frugal  peaiant,  as  the  acco;mmodation  of  the  latter 
exceeds  that  of  many  an  African  king,  the  abfolute  mafter  of  the 
lives  and  liberties  of  ten  thoufand  naked  fevages.  ;, 


:r->t 


w 


jmtnrr 


i   .'v. 


Ir,  EJj 


,T.-. 


-.r 


•)*  i] 


'){*JV/     'tin: 


th: 


-HI 


•Sr'^ 


ti  :}/ 


■jriJu^i 


!    i  CAi  i 


\IJ,,.,  IJ,  \liiit 


lUnn'Q.''\:..1.. 


.'it     V 


fc  :ji  .-«.  ■j/rJ'; 


't    ;■>': 


..t.Ml 


,1-     nV  -  <1 1 


»1.>. 


'i:\  ,f'l!L 


.iilv 


<.J 


't^/  i: 


.'!{   lo   ii.'f  ;m 


,l,\uU,      i(i>;j 


>  '10 


h 


v-i  -r. 


.n>'Uii: 


16 


THE    NATURE     AND     CAUSES     OF 


..,,..  .     ■    CHAP.     II. 


l,'-^, 


*"-^  ■■■■■■    i  hnu 


•.'j.uifp'. : 
0/  the  Principle  'which  gives  Occajion  to  the  Divifion  of  Labour. 

THIS  divifion  of  labour,  from  which  fo  many  advantages  are 
derived,  is  not  originally  the  efFeft  of  any  human  wifdom, 
which  forefees  and  intends  that  general  opulence  to  which  it  gives 
occafion.  It  is  tlie  neceflary,  though  very  flow  and  gradual  con- 
fequence  of  a  certain  propenfity  in  human  nature  which  has  in 
view  no  fuch  extenfive  utihty;  the  propenfity  to  truck,  barter, 
and  exchangee  one  thing  for  another.  •  j;^.,^ ,,  ^,;  :,,,,,^^,^.^  '^■r:i^i:ir^ 

r  ■'  '•  ■      ■  '  ■  ■    -  •=■•   < .-.  .       ■•  .   ■;    '•■  .    '  ..rs  ■;    r.- 

Whether  this  propenfity  be  one  of  thofe  original  principles 
in  human  nature,  of  which  no  further  account  can  be  given;  or 
whether,  as  feems  more  probable,  it  be  the  neceflTary  confcquence 
of  the  faculties  of  reafon  and  fpeech,  it  belongs  not  to  our  prefent 
fubjeiSl  to  enquire.  It  is  common  to  all  men,  and  to  be  found  in 
no  otl:er  race  of  animals,  which  feem  to  know  neither  this  nor  any 
other  fpecies  of  contradts.  Two  greyhounds  in  running  down  the 
fame  hare,  have  fometimes  the  appearance  of  adling  in  fome  fort 
of  concert.  Each  turns  her  towards  his  companion,  or  endeavours 
to  intercept  her  when  his  companion  turns  her  towards  himfelf. 
This,  however,  is  not  the  efFeft  of  any  contraft,  but  of  the  acci- 
dental concurrence  of  their  paflions  in  the  fame  objedl  at  that 
particular  time.  Nobody  ever  faw  a  dog  make  a  fair  and  deH  berate 
exchange  of  one  bone  for  another  with  another  dog.  Nobody 
ever  faw  one  animal  by  its  gellures  and  natural  cries  fignify  to 
another,  this  is  mine,  that  yours ;  I  am  willing  to  give  this  for 
that.  When  an  animal  wants  to  obtain  fomething  either  of  a 
man  or  of  another  animal,  it  has  no  other  means  of  perfuafion 
but  to  gain  the  favour  of  thofe  whofe  fervice  it  requires.  A  puppy 
fawns  upon  its  dam,  and  a   fpaniel  endeavours  by  a  thoufand 

attra^ions 


THE    WEALTH    OF    NATIONS;' 


17 


L".^. 


«ttra6lion8  to  engage  the  attention  of  its  mailer  who  is  at  dinner,    C  HA  p. 
when  it  wants  to  be  fed  by  hiiti.     Man  fomctiraes  ufcs  the  fame' 
arts  with  his  brethren,  and  when  he  has  no  other  means  of  en- 
gaging ti)im  to  a£t  according  to  his  inclinations,  endeavours  by 
every  fci-vile  and  fawning  attention  to  obtain  their  good  will.     He 
has  not  tim^j  however,  to  do  this  upon  every  occafion.    In  civi- 
lized fociety  he  Hands  at  all  times  in  need  of  th$  co-operation  and 
afTiflance  of  great  multitudes,  while  his  whole  life  is  fcarce  fuf- 
ficient  to  gain  the  friendship  of  a  few  perfons.    In  almoft  every 
other  race  of  animals  each  individual,  when  it  is  grown  up  to 
maturity,  is.inti^fly  independant,  and  in  its  natural  ftate  has  oc- 
cafion for  the  affiftance  of  no  other  living  creature.    But  man  has 
almoil  conftant  occafion  for  the  help  of  his  brethren,  and  it  is  in 
vain  for  him  to  expedl  it  from  their  benevolence  only.    He  will  be 
more  likely  to  prevail,  if  he  can  interefl  their  felf-love  in  his  favour, 
and  fhew  them  that  it  is  for  their  own  advantage  to  do  for  him 
wliat  he  requires  of  them.     Whoever  offers  to  another  a  bargain 
of  any  kind,  propofes  to  do  this.     Give  me  that  which  I  want, 
and  you  fhaJl  have  this  which  you  want,  is  the  meaning  of  every 
fudi  offer  i  and  it  is  in  this  manner  that  we  obtam  from  one  an- 
other the  far  greater,  part  of  thofe  good  offices  which  we  fland 
in  need  of.     It  is  not  from  the  benevolence  of  the  butcher,  the 
brewer,  or  the  baker,  that  we  expeft  our  dinner,  but  from  their 
regard  to  their  own  interefl.     We  addrefs  ourfelves  not  to  their 
humanity  but  to  their  felf-love,  and  never  talk  to  them  o£  our 
own  neceffities  but  of  their  advantages.     Nobody  but  a  beggar 
chufes  to  depend  chiefly  upon  the  benevolence  of  his  fellow  citi- 
ksens.     Even  a  beggar  does  not  depend  upon  it  entirely.     The 
charity  of  well  difpofed  people,    indeed,    fupplies  him  with  the 
whole  fund  of  his  fubfiflence.    But  though  this  principle  ultimately 
provides  him  with  all  the  necefTaries  of  life  which  he  has  occafion 
for,  it  neither  does  nor  can  provide  him  with  them  as  he  has 
Vol.  I.  D  occafion 


1 


i8 


THE  NATURE  AND  CAUSES  OF 

occaficm  for  them.  The  greater  part  of  his  occafional  wants  are 
fupplied  in  the  fame  manner  as  thoTe  <)f  dther  people»  by  treaty* 
by  barter,  and  by  purchafe.  Wiih  the.  money  y^hkh  one  man 
gives  him  he  pnrchafes  food.  The  old  cloaths  winch  another 
beftows  upon  him  he  exchanges  for  other  old  cloaths  which  fuit 
him  better,  or  for  locking,  or  for  food,  6r  for  money,  with  which 
he  can  buy  either  food,  ckxKhs,  or  lodging,  as  he  has  occafion. 

As  it  is  by  treaty,  by  barter,  and  Tjy  liurchafe,  thkt  \^  obtaiii 
from  one  another  the  greater  part  of  thofb  ititiittial  good  oSkei 
which  we  ftand  in  need  of,  fo  it  is  ^his  ikhte  thitkihg  diJ(pofition 
whldh  originally  gives  occaficm  to  thfc  tlivifiori  of  labour.  !In  li 
tribe  of  hunters  or  ihej^erds  a  particular  "pierfon  nudces  bciws  arid 
arrows,  foi'  example,  with  mor6  feadinefs  and  de)cterity  than  any 
other.  He  frequently  exchangts  them  for  cattle  ot  for  venifbn 
toith  his  dompanions  j  and  he  iihds  at  ktft  that  ht  tan  in  this  man'^ 
her  get  more  cattle  and  Veriifbn,  than  if  he  hirrtfeliF  Went  'to  the 
field  to  catch  them.  From  a  regard  tt>  his  bwn  intei<efl»  therefore, 
iihe  midcmg  of  bows  and  ttrrows  grows  to  be  his  duef  bufinef», 
iand  lie  becomes  a  fort  <rf  armourer.  Another  excds  in  making 
the  frames  and  covers  X)f  their  kittle  huts  or  moiveable  houfes.  He 
is  accuftomed  to  4je  of  ttfe  in  this  way  to  his  neighbours,  who 
rewai-d  him  in  the  feme  manner  with  cattle  and  with  venifon,  till 
at  laft  he  finds  it  his  intereft  to  deiiUcate  himielf  intirdy  to  this 
employment,  and  to  beconic  a  fort  of  houfe"  carpenter.  In  the 
fame  manner  a  fliird  becomes  a  fmith  or  a  brazier,  a  fourth  a  tan- 
ner or  dreffer  of  hides  or  fldns,  the  principal  part  of  the  cloathmg 
of  favages.  And  thus  the  certainty  of  being  able  to  exchange  all 
that  furplus  part  of  the  produce  of  his  own  labour,  which  is  over 
and  above  his  own  confumption,  for  fuch  parts  of  the  produce  of 
other  jnens  labour  as  he  may  have  occafion  for,  encourages  every 
man  to  apply  himfelf  to  a  particular  occupation,  and  to  cultivate 

and 


mi 


THE    WEALTH    OF    NATIONS. 


«9 


and,  bring  to  perfefBoti  whatever  talent  or  geniu$  he  may  po&&   C  HA  P. 
for  that  particuiM:  ^ecics  o£  bui^iefs.     ..     ;         ;— 

;:.;    ■■'■       ■  ■    .:        ;  ■ ■^■-    :     ■  •■'        •    '        ":       " 

'  ^HE  dfflerence^F  natural  talients  in  different  m^n  is,  in  realitf, 
much  Icfs  than,  we  are  aware  of  >  and  the  very  different  genitis 
which  spears  to  diftmguilh  niert  of  cfiflfertnt  profeflllons,  wheh 
grown  up  to  rtiatority,'  is  not  upon  many  ^dcdafionsfo  much  thte 
caufe,  as  the  tfkO^  6i  the  diVifian  of  labour.  The  difllerence 
between  the  moft  diffimUar  dharaf^rs,  between  a  phitofbpher  and 
a  common'ftreet  porter,  for  Example,  fe*nis  to  arilbiiotfd'niuch 
from  nature,  as  from  habit,  curtom,  and  education.  When  thw 
came  into  the' wond,  and  fbr  the  firft  fix  or  eight  years  ctf  thea: 
exigence,  they  were  perhaps  very  much  alike,  and  neither  their 
parents  nor  phiy-fcllows  could  perceive  any  remarkable  difference. 
About  that  ag^'  6r  foton  after,  they  come  to  be  employed  in  very 
diffeknt  bccupatidhsv  The  difierenoe  (^  taleiit&  (ionics  then  to 
be  taken  notice  of,  and  w^^9  by  degi^et,  till  at  taft^he  vattity 
of  the  philofbpher  is  willing  to  aoknowle<%e  icarce  any  re&m- 
blance.  But  without  the  difpofttion  to  truck,  barter,  and  ex<- 
change,  every  man  mufl  have  procured  to  himfelf  every  neceflary 
and  conveniency  of  life  which  he  wanted.  All  mufl  have  had  the 
fame  duties  to  perform,  and  the  fame  work  to  do,  and  there  could 
have  been  no  fuch  difference  of  employment  as  could  alone  give 
occafion  to  any  great  difference  of  talents. 

As  it  is  this  difpofition  which  forms  that  difference  of  talents, 
fo  remarkable  among  men  of  different  profefTions,  fo  it  is  this 
fame  difpofition  which  renders  that  difference  uiefal.  Many  tribes 
of  animals  acknowledged  to  be  all  of  the  fame  fpecies,  derive  from 
nature  a  much  more  remarkable  diflinaion  of  genius,  than  what, 
antecedent  to  cuflom  and  education,  appears  to  take  place  among 
men.     By  nature  a  philofopher  is  not  in  genius  and  difpofition 

D  2  half 


20 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K  half  fo  different  from  a  ftreet  porter,  as  a  maftifF  is  from  a  grcyv 
hound,  or  a  greyhound  from  a  ipaniel,  or  this  laft  finoin.  la  ftiepv 
herd's  dog.  Thofe  different  tribes  of  animals,  however,  tho'  all 
of  the  ftme  fpecies,  are  of  fcarce  any  ufe  to  one  another.  The 
ftrength  of  the  mafliff  is  not,  in  the  leaft,  fupported  eitl^er  by 
the  fwiftnefs  of  the  gi'cyhound,  or  by  thefagacity  of  the  fpaniel, 
or  by  the  docility  of  the  fhepherd's,  dog.  The  reflects  of  thofe 
different  geniufes  and  talents,  for  want  of  the'  power  or  difpoiitioa 
to  barter  and  exchange,  cannot  be  brought  into  a  common  flock, 
•and  do  not  in,  the  leaft  contribute  to  the  better  accommodation,  and 
conveniency  of  the  fpecies.  Each,  animal  is  fUll  obliged  to  ^uppoit 
and  defend  itfelf,  feparately  and  iadependantly,,  and  derive^ 
no  fort  of  advantage  from,  that  variety  of  talents  with  which 
nature  has  diflinguifhed  its  fellows.  A'.nong,  men,  on.  the  conr 
trary,  the  molt  diffimilar  geniufes  are  of  ufe  to  ope  another;,  the 
different  produces  of  their  refpeftive  talents,  by.  the  general  difr 
pofition  to  truck,  barter,  and  exchange,  being  brougl^t,  as  it 
were,  into  a  common  flock,  where  every  man  may  purchafc 
whatever  part  of,  the  produce  of  other  men's,  talents,  he  has,  oc}- 


cafion.  for.. 


..i^j  .'.• 


Ji  .  I        '      IJ  XiA        J  I  iJ  1  I   '■■ 


yjiirr;  ItA 


■>fi:i::^' '■li  sh  "v.  ..".[{  io  yytv. 


■»  ( 


...  ',      '      .      .     ,    , 

r.'  !,'.r»f    .  ■'■'•H'ri'S"  -  »  s  .,??>;*,    ''.'.Tf;} 


.•'■^  y^Bl  ''■.   ■;;in.'rv:"'^(^  */"(• 


■■"  ::;'f'>');o 


f 


THE    WEALTH    OF    NATIONSw 


9i 


?>&///  /-5^  Dhijion  of  Labour  is  limited  by  the  Extent  of  the  Market. 

AS  it  is<  the.  power  of  exchanging  that  gives  occafion  to  the  C  HA P, 
dividon  of  labour,  fo  the  extent  of  this  divifion  mufl:  always 
be  limited  by  the  extent  of  that  power,  or,  in  other  words,  by 
the  extent  of  the  market.  When  the  market  is  very  fmall,  no 
perfon  can  have  ainy  encouragement  to  dedicate  himfcilf  entirely  to 
one  employment,,  for  want  of  the  power  to  exchange  all  that  furplus 
part  of  the  pixxluce  of  his  own  labour,  which  is.  over  and  above 
his  own  confumption,  for  fuch  paits  of  the  produce  of  other m^ns 
labour  as  he  has  occafion  fbr^      »v "  i      ^«  Jf-f^v^^- m',      v^    : 

There  are  fome  forts^  of  induftry,  even  of  the  loweft  kind,. 
.  which  can:  be  carried  on  no  where  but  in  a  great  town..  A  poitoiv 
for  example,  can  find  employment  and  fubfiftence  in  no  other 
place.  A  village  is  by  much  too-  narrow  a  fphere  for  him ;  even 
an  ordinary  market  town  is  fcarce  large  enough  to  afford  him 
conflant  occupation.  In  the  lone  houfes  and  very  fmall  vil- 
lages which  are  fcattered  about  in  fb  defart  a  country  as  the 
highlands  of  Scotland,  every  farmer  muft  be  butcher,,  baker  and 
brewer  for  his  own  family.  In  fuch  fituations  we  can  fcarce 
expea  to  find  even  a  fmith,  a  carpenter,  or  a  mafon,  within  lefs 
than  twenty  miles  of  another  pf  the  fame  trade.  The  fcattered 
families  that  live  at  eight  or  ten  miles  diflance  from.the  nearefl  of 
them,  muft  learn  to-  perform  themfelves  a  great  number  of  little 
pieces  of  work,,  for  which,  in.  more  populous  countries,  they 
would  call  in  the  affiftance  of  thofe  workmen.  Countiy  workmen 
are  almofl  eveiy  where  obliged  to  apply  themfelves  to  all  the  differ- 
ent branches  of  induflry  that  have  fo  much  affinity  to  one  another 
:  !•  ^  L  '"  as 


22 


THE    NATURE    AND    CAUSES    OF 


B  O  o  K  as  to  be  employed  about  the  fame  fort  of  materials.  A  country 
carpenter  deals  in  every  foit  of  work  that  is  made  of  wood :  a 
country  fmith  in  every  fort  of  worlc  that  is  made  of  iron.  The 
former  is  not  only  a  carpenter,  but  a  ].oiner»  a  cabtnet*aiaker»  aad 
even  a  carver  in  wood,  as  well  as  a  wheel-wright,  a  plough- 
wright,  a  cart  and  waggon  maker.  The  employntents  of  the  Utter 
are  ftill  mere  variou».  It  is*  impoffible  there  diould'  be  fbch'a 
trade  as  even  that  of  a  nailer  in  the  remote  and  inland  parts  of 
the  highlands  of  Scotland.  Such  a  workman  at  the  rat*  of  a 
thoufand  naik  a  day,  and  three  hundred  working  days  iln  the'  ye«r, 
will  make  three,  hundred  thoufand  nails  in  the  year.  Bat  in  ^h 
a  fituation  it  would  be  impofllible  to  dii^^ofe  <^  ont  fhdufaild,  that 


is,  of  one  day's  work  in  the  yetr^ 


As  by  means  of  water-carriage  a  more  extendve  market  it 
opened  to  every  fort  of  induftry  than  what  land-carriage  atone  can 
afford  i^,  fo  it  is  upon  the  Ara  coaft,  and  along  the  banks  of  navi- 
gable rivers,  that  induftry  of  every  kind  naturally  begins  to  fub- 
dtvide  and  improve  itfelf  j  rrd  it  is  fi-equently  not  till  a  long  time 
after  that  thofe  improvements  extend  thcmfelves  to  the  inland  parts 
of  the  country.  A  broad-wheeled  waggon,  attended  by  two  men 
and  drawn  by  eight  hories,  in  about  fix  weeks  time  carries  and 
brings  back  between  London  and  Edinburgh  near  four  ton  wdght 
of  goods.  In  about  the  fame  time  a  (hip  navigated  by  fix  or  eight 
men,  and  failing  between  the  ports  of  London  and  Leith,  fre- 
quently carries  and  brings  back  two  hundred  ton  weight  of  goot's. 
Six  or  eight  men,  therefore,  by  the  help  of  water-carriage,  can 
carry  and  bring  back  in  the  fame  time  the  fame  quantity  of  goods 
between  London  and  Edinburgh  as  fifty  broad-wheeled  waggons, 
attended  by  a  hundred  men,  and  drawn  by  four  hundred  horfes. 
Upon  two  hundred  tons  of  goods,  therefore,  carried  by  the  cheapefl 
land-carriage  from  London  to  Edinburgh,  there  mufl;  be  charged 

^  ^    •  the 


4 


THE    WEALTH     OF    NaTIO'   S» 


country 
trood:  a 
1.  The 
Ler»  aad 
plough- 
he  Utter 
i  fiKh'a 

parts  of 
'at«  of  a 
the  year. 

in  ^h 
ind,  that 

larket  Is 
itoile  can 
of  navi- 
s  to  fub- 
3ng  time 
ind  parts 
two  men 
rrlcs  and 
>n  wdght 
or  eight 
sith,  fre- 
jf  goo<!s. 
iage,  can 
of  goods 
waggons, 
d  horfes. 
i  cheapefl 
e  charged 
the 


the  maintenance  of  a  hundred  men  for  three  weeks  tnd  bctli  he 
maintenance,  and,  what  h  nearly  equal  to  the  matnt'^ince  the 
wear  and  tear  of  four  hundred  horfes  as  well  as  of  tifty  great 
waggons.  Whereas  upon  the  fame  quantity  of  goods  carried  by 
water,  there  is  to  be  charged  only  the  maintenance  of  fix  or  eight 
men,  and  the  wear  and  tear  of  a  fhip  of  two  hundred  tons  burden, 
together  >  with  the  value  of  the  fuperior  rifle  or  the  difference  of  the 
infurance 'between  land  and  water-carrii^.  Were  there  no  other 
communication  between  thofe  two  places,  therafore,  but  by  land- 
carriage,  as  no  goods  could  be  tranfported  from  the  one  to  the 
other  except  fucfa  whofe  price  was  very  confiderable  in  proportion 
to  their  weight,  they  oould  carry  on,  but  a  fmall  pftrt  of  that 
commerce  vrhich  is  at  prefbnt  carried  on  between  them,  and  con- 
fequently  could  give  but  a  fmall  part  of  that  encouragement  which 
they  at  prefent  mutually  afford  to  each  other's  induAry.  There 
couU  be  little  or  no  commerce  of  any  kind,  between  the  diftant 
parts  of  the  world.: '  Whtt  goods  coukl  bear  the  expieiKe  of  land^ 
carriage  between  London  and  Calcutta  ?  Or  if  there  was  any  >fo 
precious  as  to  be  «ble  to  fupport  this  expence,  with  what  fafety 
could  they  be  tr^nfyot^  thjrough  the  territoi;ics  i  of  £0  many 
barbarous  nations  ?  Thofe  two  cities,  however,  ^t  prefent  carry 
on  together  a  very  confifierabie  commerce,  and,  by  mutually 
affording  a  market^  4;ive  a  jgood  deal  of  encouragement  to  each 
other's  induftry.,.^.  'io^ihU^^:?  ^ni^n^^^nLi:  ...    .  ,  .   ..,.,,  ,,. 

SiwcE  fuch,  therefofc,  are  the  advantages  of  water  canriage, 
it  is  natural  that  the  fJrft  improvements  of  art  and  induftry  fhould 
be  made  where  this  conveniency  opens  the  whde  world  for  a 
market  to  the  produce  of  every  fort  of  labour,  and  that  they 
fhouW  always  be -much  later  in  extendmg  themfelves  into  the  in- 
land parts  of  the  countiy.  The  inland  parts  of  the  country  can 
for  a  long  time  have  no  other  market  for  the  greater  .part  of  their 
•'^""■f-r"'  ■     s  goods. 


CHAP. 
III. 


H 


THE  NATURE  AND  CAUSES  OF 


B  O^O  K  goods,  but  the  country  which  lies  round  alx)ut  them,  and  fcjta* 
Fates  them  from  the  fca  coaft,  and  the  great  navigable  rivei's.  The 
extent  of  their  market,  therefore,  rouft  for  a  long  time  be  in 
proportion  to  the  riches  and  populoufnefs  of  that  country,  and 
confequently  their  improvement  muft  always  be  pofterioi*  to  the 
improvement  of  that  country.  In  our  North  American  colonics 
the  plantations  have  conftantly  followed  either  the  fea  coaft  or 
the  banks  of  the  navigable  rivers,  and  have  fcarce  any  where  ex- 
tended thcmfelves  to  any  confidcrable  diftance  from  both,   wnimun 

The  nations  that,  according  to  the  beft  authenticated  hiflory, 
appear  to  have  been  firft  civilized,  were  thofe  that  dwelt  round 
the  coaft  of  the  Mediterranean  fea.  That  fea,  by  far  the  greateft 
inlet  that  is  kno',vn  in  the  world,  having  no  tides,  nor  confequently 
any  waves  except  fuch  as  are  caufed  by  the  wind  only,  was,  by 
fhe  fmoothnefs  of  its  furfac?,  as  well  as  by  the  multitude  of  its 
iilands,  and  the  proximity  of  its  neighbouring  fhores,  extreamly 
favourable  to  the  infant  navigation  of  the  world  {  when  from  their 
Ignorance  of  the  compafs,  men  were  afraid  to  quit  the  view  of 
the  coaft,  and  from  the  imperfeftion  of  the  art  of  fhip-building, 
to  abandon  themfelves  to  the  boifterous  waves  of  the  ocean.  To 
pafs  beyond  the  pillars  of  Hercules,  that  is,  to  fail  out  of  the 
ftreights  of  Gibraltar,  was,  in  the  antient  world,  long  confidered 
as  a  moft  wonderful  and  dangerous  exploit  of  navigation.  It  was 
late  before  even  the  Phenicians  and  Carthaginians,  the  moft 
flcilful  navigators  and  ftiip-buiiders  of  thofe  old  times,  attempted 
it,  and  they  were  for  a  long  time  the  only  nations  that  did  at- 


tempt It. 


rfii>fh-\ 


•li.V 


lo 


I J  Tbft  i« « 


'>('t 


Of  all  the  countries  on  the  coaft  of  the  Mediterranean  fca, 
Egypt  feems  to  have  been  the  firft  in  which  either  agriculture  or 
manufaftures  were  cultivated  and  improved  to  any  confiderablc 
'  ■'■'-„  degree. 


THE    WEALTH     OF    NATIONS. 


«S 


J  fc'iia- 
.  The 
:  be  ill 
■y,  and 
to  the 
colonics 
loaft  or 
lici-e  cx- 

tUlltUliJ 

,'j;  jii  ia.i 

hiftory,i 
;  round 
greateft 
:qucntly 
was,  by 
io  of  its 
Ktreamly 
om  their 

view  of 
>uilding, 
in.     To 

of  the 
)nridered 
It  was 
He  moft 
tempted 
t  did  at- 

i     Ui 
Kill 

lean  Tea, 

ilture  or 

fiderable 

degree. 


degi'C*.  Upper  Egypt  extends  itfelf  no  where  ^bove  a  few  mites  C  HA  P. 
from  the  Nil«>  and  in  Lower  Egypt  that  great  river  breaks  itfelf 
inta  many  different  canals,  which,  with  the  aflillance  of  a  little 
art,  feetn  to  have  afforded  a  communication  by  water  carriage, 
not  only  between  all  the  great  towns,  but  between  all  the  coii«i 
iiderabfe  villages,  and  even  to  many  farm  houfes  in  the  country  j 
ncuAj  m  the  fame  mamier  as  the  Rhine  and  the  Macfc  do  in 
Holland  at  prefent.  The  extent  and  eafinefs  of  this  inland 
navigation  was  probably  one  of  the  principal  caufes  of  the  early 
improvement  of  Egypt,    ."  '^'i.  -^     i  >•■  n    >  .  r. 

:"  tnt  improvements  in  agrieultore  and  m^ufafhires  ieem  ' 
wife  to  have  been  of  very  great  antiquity  in  the  provinces  of  Bengal 
in  the  Eaft  Indies,  and  in  fome  ctf  the  caHern  provinces  of'  China  j 
though  the  gpeat  extent  of  thin  antiquity  is<  not  authenticated  by  arty 
hiftorks  of  whoOf  authority  wt,  in  this  part  of  the- world,  are  weH 
afiuredk  In  Bengal  the  Ganges  and  feveral  other  great  rivers  break 
themfelve»  into  many  canals  in  the  fame  manner  a*  the  Nile  does 
in  Egypt.  In  the'  cafltern  provinces  of  China'  too  feveraf  great 
rivers  formi  by 'their  diflferent  branches,  a  multitude  of  canals, 
and  by  communicating  with  one  another  afford  an  inland  naviga- 
tion much  more  extenfive  than  that  either  of  the  Nile  or  the 
Ganges,  or  perhaps  than  both  of  them  put  together.  It  is  re- 
markable that  neither  the  antient  Egyptians,  nor  the  Indians,  nor 
the  Chinefc,  encouraged  foreign  commerce,  but  feem  all  to  have 
derived  their  great  opulence  from  this  inland  navigation. 

All  the  inland  parts  of  Africa,  and  all  that  part  of  Afia  which 
lies  any  confiderable  way  north  of  the  Euxine  and  Cafpian  feas, 
the  ancient  Scythia,  the  modern  Tartary  and  Siberia,  feem  in 
all  ages  of  the  world  to  have  been  in  the  fame  barbarous  and 
uncivilized  ftate  in  which  we  find  them  at  prefent.     The  fea  of 

V°^-  '•  B  Tartary 


a6 


THE    NATURE    AND    CAUSES    OF 


BOOK  Tartary  is  the  frozen  ocean  which  admits  of  no  navigation,  and 
though  fome  of  the  greateft  rivers  in  the  world  run  through  that 
country,  they  are  at  too  great  a  diftance  from  one  another  to 
carry  commerce  and  communication  through  the  greater  part  of 
it.  There  are  in  Africa  none  of  thofe  great  inlets  fuch  as  the 
Baltic  and  Adriatic  feas  in  Europe,  the  Mediterranean  and  Eux- 
ine  feas  in  both  Europe  and  Afia,  and  the  gulphs  of  Arabia, 
Perfia,  India,  Bengal  and  Siam,  in  Afia,  to  carry  maritime  com* 
merce  into  the  interior  parts  of  that  great  continent :  and  the 
great  rivers  of  Africa  are  at  too  great  a  diftance  from  one  another 
to  give  occafion  to  any  confiderable  inland  navigation.  The  com- 
merce befides  which  any  nation  can  carry  on  by  means  of  a  river 
which  does  not  break  itfelf  into  any  great  number  of  branches 
or  canals,  and  which  runs  into  another  territory  before  it  reaches 
the  fea,  can  never  be  very  confiderable  j  becaufe  it  is  always  in  the 
power  of  the  nations  who  poiTefs  that  other  territory  to  obftrudl  the 
communication  between  the  upper  countiy  and  the  fea.  The  navi- 
gation of  the  Danube  is  of  very  little  ufe  to  the  different  ftates  of 
Bavaria,  Auftria  and  Hungary,  in  comparifon  of  what  it  would 
be  if  any  one  of  them  poffeiTed  the  whole  of  its  courfe  till  it  falls 
into  the  Black  fea. 


■y'\. 


m 


ion,  and 
ugh  that 
other  to 

part  of 
h  as  the 
nd  Eux- 

Arabia, 

ne  com- 

and  the 

another 
'he  com- 
f  a  river 
branches 
it  reaches 
ys  in  the 
ftruft  the 
rhe  navi- 
-  ftates  of 
it  would 
iU  it  falls 

ii  -'J" 


u  'jiJ 


THE    WEALTH    OF    NATIONS; 


*t 


I'*  '      Of  the  Origin  and  XJfe  of  Money. 


*i- 


■'  ■■■'  ■-  --'il  1:     :;:  -  -f.: 


XT  J  HEN  the  divifion  of  labour  has  been  once  thoroughly  cHAP. 
VV  eftablifhed,  it  is  but  a  very  fmall  part  of  a  man's  wants  ^^' 
which  the  produce  of  his  own  labour  can  fupply.  He  fupplies  the 
far  greater  part  of  them  by  exchanging  that  furplus  part  of  the 
produce  of  his  own  labour,  which  is  over  and  above  his  own  con- 
fumption,  for  fuch  parts  of  the  produce  of  other  men's  labour  as 
he  has  occafion  for.  Eveiy  man  thus  lives  by  exchanging,  or 
becomes  in  fome  meafure  a  merchant,  and  the  fociety  itielf  grows 
to  be  what  is  properly  a  commercial  fociety.      <  <  ^^i     '■'  /Ss  ;  ?  i'  / 

But  when  the  diviAon  of  labour  firft  began  to  take  place,  this 
power  of  exchanging  muft  frequently  have  been  very  much 
clogged  and  embarrafled  in  its  operations.  One  man,  we  fhall 
fuppofe,  has  more  of  a  certain  commodity  than  he  himfelf  has 
occafion  for,  while  another  has  lefs.  The  former  confequently 
would  be  glad  to  difpofe  of,  and  the  latter  to  purchafe,  a  part  of 
this  fuperfluity.  But  if  this  latter  fliould  chance  to  have  nothing 
that  the  former  ftands  in  need  of,  no  exchange  can  be  made 
between  them.  The  butcher  has  more  meat  in  his  fliop  than  he 
hinifelf  can  confume,  and  the  brewer  and  the  baker  would  each  of 
them  be  willing  to  purchafe  a  part  of  it.  But  they  have  nothing  to 
offer  in  exchange,  except  the  different  produdlions  of  their  refpec- 
tive  trades,  and  the  butcher  is  already  provided  with  all  the  bread 
and  beer  which  he  has  immediate  occafion  for.  No  exchange  can, 
in  this  cafe,  be  made  between  them.  He  cannot  be  their  merchant, 
nor  they  his  cuftomersj  and  they  are  all  of  them  thus  mutually  lefs 
ferviceable  to  one  another.     In  order  to  avoid  the  inconveniency 

E  2  of 


:uii,: 


iS 


THE  NATURE  AND  CAUSES  OF 


B  o  O  K  of  fuch  fituations,  every  prudent  man  in  every  period  of  fociety,  after 
the  firfl  eflablifhment  of  the  dlvifion  of  labour,  muft  naturally 
have  endeavoured  to  manage  his  affairs  in  fuch  a  manner,  as  to 
have  at  all  times  by  h]im^  hefides  the  peculiar  produce  of  his  own 
induftry,  a  certain  quantity  of  fome  one  commodity  or  othw,  fuch 
as  he  imagined  f/ew  people  would  be  likdy  ^  re^o^fe  in  exc^afiae 
for  tl^  pcodupe  of  tiieir  'u^\3£tfy,     •>  ,;  ;-  ?•   ,!;inii'Jdi(     Vt 

■  Many  different  comiinoidities,  it  is  probai^le,  were  fuccdfively 
both  thought  of  anyd  employed  for  this  purpoCb.  In  the  rude 
9ge$  of  ijbciety,  cjtftle  are  faid  to  h9ve  been  the  conMnoji  Inftni- 
q}ei>t  of  conun^rce;  and>  thoiugh  they  mud  have  been  a  moft  in- 
conyenieot  one,  yet  in  old  times  we  find  things  were  ficquently 
valued  according  to  the  number  of  cattle  which  had  been  given 
in  exchange  for  them.  The  armour  of  Diomed,  fays  Homer, 
cof):  only  nine  oxen;  but  that  of  Glaucus  coft  a  hundred  o»en. 
$alt  is  faid  to  be  the  common  inftrument  of  commerce  and  ex- 
changes in  AbyfTmia  s  a  fpecies  of  fhells  in  fome  parts  of  the 
(oaft  of  Indi^;  dried  cod  at  Newfoundland;  tobacco  in  Vir- 
ginia ;  fugaf  in  fome  of  our  Wefl  India  colonies ;  hides  or 
dreffed  leather  in  fome  other  countries  j  and  there  is  at  this  day  a 
village  in  Scotland  where  it  is  not  uncommon,  lam  told,  for  a 
workman  to  carry  nails  inflead  of  money  to  the  baker's  fhop  or 
the  akhouie. 


.1,. 


f}  *>  f*^ 


In  all  countries,  however,  men  feem  at  lafl  to  have  been  deter- 
mined by  irrefiftable  reafons  to  give  the  preference,  for  this  em- 
ployment, to  metals  above  every  other  commodity.  Metal* 
can  not  only  be  kept  with  as  little  lofs  as  any  other  commodity, 
fcarce  any  thing  being  lefs  perifhable  than  they  are,  but  they 
can  likewiie,  without  any  lofs,  be  divided  into  any  number  of 
parts,  as  by  fufion  thofe  parts  can  eafily  be  reunited  again;   a 

quality 


'Ism 
1 


'TH]5    WEALTH    OF    NATIONS* 


S9 


ity,  after 
laturally 
;r,  as  to 
his  own 
er,  fuch 
;xc)ia|i^ 

.  .Vf 

M  ibiihv 
cceffively 
the  rude 
I  inlhii- 
moft  ia« 
fcquently 
en  given 

Homer, 
ed  o]($n. 

and  ex** 
;s  of  the 

in  Vir- 

hides  or 
bis  day  a 
>ld,  for  a 
I  ihop  Off 


n^itp 


«n  deter- 
this  em- 
Metals 
mmodity» 
but  they 
umber  of 
again;  a 
quality 


fluality  v^ich  no  ^i»cr  equally  durable  commodities  pofibfs,  and  C  HA  P. 
which  mose  jthan  any  o\htr  quality  renders  them  fit  to  be  the 
iuftrunaenits  'of  commerce  and  circulation.  The  man  who  wanted 
to  buy  £ilt»  for  example,  and  had  nothing  but  cattle  to  ^ve  in 
exchange  for  it,  muft  have  been  obliged  to  buy  felt  to  the  value  of 
a  wl»ole,<?K,  or  a  whole  fhcep  at  a  time.  Ke  could  feldora  buy  lets 
than  f}ii£>.  becaufe  what  he  was  to  give  for  it  could  feMom  be 
divided  without  lo& ;  and  if  he  had  a  mind  to  buy  more,  he  mufl, 
for  the  fame  reasons,  have  been  obliged  to  buy  double  or  triple 
the  quantity,  the  value,  to  wit,  of  two  or  three  oxen,  or  of 
twx)  or  three  flieep.  If,  <hi  the  contrary,  inftead  of  iheep  or 
oxen,  he  had  metals  to  give  in  exchange  for  it,  he  could  eafily 
proportion  the  quantity  of  the  metal  to  the  precifc  quantity  of 
the  commodity  which  he  had  immediate  occafion  for. 

Different  metals  have  been  made  ufe  of  by  different  nations 
for  this  purpofe.  Iron  was  the  common  inftrument  of  com- 
merce among  the  antient  Spartans;  copper  among  the  antient 
Romans;  and  gold  and  fdver  among  all  rich  and  commercial 
nations. 


>ii  Qi 


■:)U: 


Uj 


.  Those  metals  feem  originally  to  have  been  made  ufe  of  for  this 
purpofe  in  mde  bars  without  any  ftamp  or  coinage.  Thus  we 
are  told  by  Phny,  upon  the  authoiity  of  one  Remeus  an  antient 
author,  that,  till  the  time  of  Servius  Tullius,  the  Romans  had 
no  coined  morey,  but  made  ufe  of  unftamped  bars  of  copper  to 
purchafe  whatever  they  had  occafion  for.  Thcfe  rude  bars,  there- 
fore,  performed  at  this  time  the  function  of  money. 

The  ufe  of  metals  in  this  rude  ftate  was  attended  with  two 
very  confiderable  inconveniencies ;  firft,  with  the  trouble  ot 
weighing  them ;  and,  fecondly,  with  the  trouble  of  affaying  them. 


30 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K  In  tiie  precious  metals,  where  a  fmall  difference  in  the  quantity 
makes  a  great  difference  in  the  value,  even  the  bufinefs  of  weigh- 
ing, with  proper  exa^lnefs,  requires  at  leafl  very  accurate  weights 
and  fcales.  The  weighing  of  gold  in  particular  is  an  operation 
of  fome  nicety.  In  the  coarfer  metals,  indeed,  where  a  fmall  error 
would  be  of  little  confequence,  iefs  accuracy  would,  no  doubt, 
be  neceffary.  Yet  we  fhould  find  it  excefTively  troublefome  if  every 
time  a  poor  man  had  occafion  either  to  buy  or  fell  a  farthing's 
worth  of  goods,  he  was  obliged  to  weigh  the  farthing.  The  ope- 
ration of  afTaying  is  ftill  more  difficult,  flill  more  tedious,  and» 
unlefs  a  part  of  the  metal  is  fairly  melted  in  the  crucible,  with 
proper  diffolvents,  any  conclufion  that  can  be  drawn  from  it,  is 
cxtreamly  uncertain.  Before  the  inftitution  of  coined  money, 
however,  unlefs  they  went  through  this  tedious  and  difHcult  ope- 
ration, people  muft  always  have  been  liable  to  the  grofTefl  frauds 
and  impofitions,  and  inflead  of  a  pound  weight  of  pure  filver, 
or  pure  copper,  might  receive,  in  exchange  for  their  goods,  an 
adulterated  compofition  of  the  coarfefl  and  cheapeft  materials, 
which  had,  however,  in  tlieir  outward  appearance,  been  made  to 
refemble  thofe  metals.  To  prevent  fuch  abufes,  to  facilitate  ex- 
changes, and  thereby  to  encourage  all  forts  of  induftiy  and  com- 
merce, it  has  been  found  neceflary,  in  ail  countries  that  have 
made  any  confiderable  advances  towards  improvement,  to  affix 
a  publick  ftamp  upon  certain  quantities  of  fuch  particular  metals, 
as  were  in  thofe  countries  commonly  made  ufe  of  to  purchalc 
goods.  Hence  the  origin  of  coined  money,  and  of  thofe  publick 
offices  called  mints  -,  inflitutions  exaftly  of  the  fame  nature 
with  thofe  of  the  aulnagers  and  ftampmaflers  of  woollen  and 
linen  cloth.  All  of  them  are  equally  meant  to  afcertain,  by  means 
of  a  publick  (lamp,  the  quantity  and  uniform  goodnefs  of  thofe 
different  commodities  when  brought  to  market.  -, 

The 


■•■u:'> 


THE    WEALTH    OF    NATIONS. 


3» 


][uantitf 

weigh- 
weights 
peration 
all  error 
i  doubt, 
iJF  every 
arthing's 
'he  ope- 
us,  and* 
)le,  with 
>m  it,  is 

money, 
:ult  ope- 
;ft  frauds 
re  filver, 
oods,  an 
naterials, 

made  to 
itate  ex- 
md  com- 
lat  have 

to  affix 
r  metals, 

purchafc 
e  publick 
nature 
lien  and 
jy  means 

of  thofe 


The  firft  publick  ftamps  of  this  kind  that  were  affixed  to  the   C  HA  P. 

I  V  • 

current  metals,  feem  in  many  cafes  to  have  been  intended  to 
afcertain,  what  it  was  both  moft  difficult  and  moft  important  to 
afcertain,  the  goodnefs  or  finenefs  of  the  metal,  and  to  have 
refembled  the  fterling  mark  which  is  at  prefent  affixed  to  plate 
and  bars  of  filver,  or  the  Spanifli  mark  which  is  fometimes  affixed 
to  ingots  of  gold,  and  which  being  ftruck  only  upon  one  fide  of 
the  piece,  and  not  covering  the  whole  furface,  afcertains  the  fine- 
nefs, but  not  the  weight  of  the  metal.  Abraham  weighs  to 
Ephron  the  four  hundred  fhekels  of  filver  which  he  had  agreed 
to  pay  for  the  field  of  Machpelah.  They  are  faid  however  to 
be  the  current  money  of  the  merchant,  and  yet  are  received  by 
weight  and  not  by  tale,  in  the  fame  manner  as  ingots  of  gold  and 
bars  of  filver  are  at  prefent.  The  revenues  of  the  antient  Saxon 
kings  of  England  are  faid  to  have  been  paid,  not  in  money  but 
in  kind,  that  is,  in  vi6tuals  and  provifions  of  all  forts.  William 
the  conqueror  introduced  the  cuftom  of  paying  them  in  money. 
This  money,  however,  was,  for  a  long  time,  received  at  the  ex- 
chequer, by  weight  and  not  by  tale. 

The  inconveniency  and  difficulty  of  weighing  thofe  metals  with 
cxaftnefs  gave  occafion  to  the  inftitution  of  coins,  of  which  the 
ftamp,  covering  entirely  both  fide  of  the  piece  and  fometimes 
the  edges  too,  was  fuppofed  to  afcertain  not  only  the  finenefs,  but 
the  weight  of  the  metal.  Such  coins,  therefore,  were  received 
by  tale  as  at  prefent,  without  the  trouble  of  weighing. 

The  denominations  of  thofe  coins  feem  originally  to  have 
exprefled  the  weight  or  quantity  of  metal  contained  in  them.  In 
the  time  of  Servius  Tullius,  who  firft  coined  money  at  Rome, 
the  Roman  As  or  pondo  contained  a  Roman  pound  of  good 
copper.     It  was   divided  in  the  fame  manner  as  our  Troye* 

pound. 


32 


THE    NATURE    AND    CAUSES    GF 


B  O  O  E  pound,  into  twelve  oimces,  each  of  which  contained  a  real  ounce 
of  good  copper.  The  Englifh  pound  fleiiing^  in  the  time  of 
Edward  I.  contained  a  pound,  Towei*  weight,  of  Aberof  aknown 
fineneP?.  The  Tower  pound  feems  to  have  been  fomething  more 
than  the  Roman  pound,  and  fomething  lefs:  than  the  Troyes 
pound.  This  laft  was  not  introduced  into  the  mint  of  Engr 
land  till  the  i8th  of  Henry  VIII.  The  French  livre  contained 
in  the  time  of  Charlemagne  a  pound,  Troycs'  weight,  of  (ilver 
of  a  known  finenels.  Tlie  fair  of  Troyes  in  Champaign  wa« 
at  that  time  frequented  hy  all  the  nations  of  Europe^  and  the 
weights  and  meafures  of  fo  famous  a  market  were  generally  known 
and  efteemed.  The  Scots  money  pound  contained^  from  the 
time  of  Alexander  the  fxrft  to  that  of  Robert  Bruce,  a  pound  of 
filver  of^  the.  &me  wdght  and  finenefs  with  the  Englilh  pouad 
fteding^  E^lifh,  French  and  Seots^  pennies  too,  contained  all 
of  them  originally  a  real  pennyweight  of  filvor,  the  twentieth 
part  of  ai\  ounee*  and  the  two  hundred  and  fortieth  part 
of  a  ppund.  The  (hilling-  too  (eems  originally  ta  have  beea  tlte 
<^enomination  of  a  weight,  ff^^en  whtat  is  at'tneelve  Jkillings.  the 
quarter^  fays  an  antient  ftatute  of  Henry  III.  then  noajlel  bread 
of  a.farihing  Jhall  weigh  eleven  Jbillings  and.  four  pjcnce*  The  pro- 
portion, however,  b^weeu  the  Ihilling  and  either  the  penny  on 
the  one  hand,  or  the  pound  on  the  other*  feems  not  to  have  been 
fo  conftant  and  uniform  as  that  between  the  penny  and  the  pound. 
During,  the  firft  race  of  the  kings  of  France,  the  French  fou 
or  (hilling  appears  upon  different  occafions  to  have  contained 
(ive,  twelve,  twenty,  forty,  and  forty- eight  pennies.  Among  the 
antient  Saxons  a  (hilling  appears  at  one  time  to  have  contained 
only  five  pennies,  and  it  is  not  improbable  that  it  may  have  bvv;n 
as  variable  among  them  as  among  their  neighbours,  the  antient 
Franks,  From  the  time  of  Charlemagne  among  the  French,  and 
from  that  of  William  the  conqueror  among  the  Engli(h,  the 
proportion  between  the  pound,  the  fliilling,  and  the  penny,  feems 
S  to 


i^ 


THE    WEALTH    OF    NATIONS. 


33 


sal  ounce 
timiQ  of 
a  known 
jng  more 
ie  Troyes 
of  Engr 
contained 
of  filveir 
laign  wai 
and  the 
Hy  known 
from  the 
pound  of 
ih  pouad 
itained  all 
twentieth 
fieth    part 
;  beea  tlte 
\illmgs.  the 
ajlel  bread 
The  pio- 
pcnny  on 
have  been 
Jie  pound, 
'rench  fou 
contained 
^mong  the 
contained 
have  W(x\ 
he  andent 
rench,  and 
igllfh,   the 
my,  fcems 
to 


m 

h';. 


-^. 


to  have  been  uniformly  the  fame  as  at  prefent,  though  the  value  C  H^A  P. 
of  each  has  been  very  different.  For  in  every  country  of  the 
world,  I  believe,  the  avarice  and  injuftice  of  princes  and  fovereign 
ftates,  abufing  the  confidence  of  their  fuhjefts,  have  by  degrees 
diminiflied  the  real  quantity  of  metal  which  had  been  originally 
contained  in  their  coins.  The  Rom^n  As,  in  the  latter  ages  of 
the  Republick,  was  reduced  to  the  twenty  fourth  part  of  its 
original  value,  and,  inftead  of  weighing  a  pound,  came  to  weigh 
only  half  an  ounce.  The  Englidi  pound  and  penny  contain 
at  prefent  about  a  third  only ;  the  Scots  pound  and  penny 
about  a  thirty-fixth ;  and  the  French  pound  and  penny  about  a 
fixty-fixth  part  of  their  original  value.  By  means  of  thofe  ope- 
rations the  princes  and  fovereign  ftates  wliich  performed  them 
were  enabled,  in  appearance,  to  pay  their  debts  and  to  fulfil  their 
engagements  with  a  fmaller  quantity  of  filver  than  would  otherwife 
have  been  requifite.  It  was  indeed  in  appearance  only ;  for  their 
creditors  were  really  defrauded  of  a  part  of  what  was  due  to  them. 
All  other  debtors  in  the  ftate  were  allowed  the  fame  privilege,  and 
might  pay  with  the  fame  nominal  fum  of  the  new  and  debafed  coin 
whatever  they  had  borrowed  in  the  old.  Such  operations,  there- 
fore, have  always  proved  favourable  to  the  debtor,  and  i-uinous 
to  the  creditor,  and  have  fometimes  produced  a  greater  and  more 
univerfal  revolution  in  the  fortunes  of  private  perfons,  than  could 
have  been  occafipped,  by  a  very  great  publick  calamity. 

It  is  in  this  manner  that  money  has  become  in  all  civilized 
nations  the  univerfal  inflrument  of  commerce,  by  the  intervention 
of  which  goods  of  all  kind^  are  fought  and  fold,  or  exchanged 
for  one  another,  .aj  ,|  t.ujljjn  -.i  d\  U-^^-:  r  j' -i,-  !,:•;,  i\  . 

What  are  the  rules  which  men  naturally  obferve  in  exchanging 

them  either  for  money  or  for  one  another,  I  (hall  now  proceed 

Vol.  I.  p  xo 


H 


THE  NATURE  AND  CAUSES  OF 


B  o  o  K  to  examine.    Thcfe  ruks  determine  what  m^^  l^^^fr^^d,  tj[je  ^relative 
or  exchangeabk  value  of  goods.. ,  ,,,  ..,.,„,  ,,•  ^: „.,;„, ^  ,,;,  .  ,.,  ^ . 

'  'The' word' vAlue^  ft' is  tb  fei'dbiciMedr R^S  tw6  differeiit  mean^ 
ings,  andfometlmes  cxpreffts  the  uttlity  6f  fome  particular  objedl, 
and  fometimcs  the  power  of  piircliafihg,  other  goods  which  the  pof- 
feflion  of  that  objeft  conveys.  The  one  may  be  called,  "  value  in 
•*  ufeV*^  the  other,  **  value  in  exchange."  The  things  which 
have  the  greateft  value  in  ufe  have  frequently  little  or  no  value 
in  Exchange  i  Juid,  on  the  fcontraiy,^  tliolS'Vhifch  Have  th<i  greateff 
value  in  exchange  have  frequently  little  oi*  no  value  in  '\ife. 
Nothing  is  more  ufeful  than  water :  but  it  will  purchafe  fcarce- 
any  thing ;  fcarce  any  thing  can  be  had  in  exchange  for  it.  A 
diamond;  on  the  contrary,  has  (Itarce  any  valtie  in  ufe;  but  a 
very  great  quantity  of  other  goods  may  frequently  be  had  in  ex- 
change fbr  it.  .^/      ^1  A  f«  0 

Ik  order  to  inyefUgate  the  prlnc^jiples  which  regulate  the  exchange-o 
able  value  of  coi9||»Qdi|ie9,^^.^ih^  eI^)e^volj^-  to  H^^ 

First,  what  is  tiie  real  meaiure  <^f  tfus  exchangeable  vs>lufii. 
•r,  wherein  conHfts  the  real  price  of  all  commodities^      ^  .  ^^| 

Secondly,  what  are  the  diffisrent  £>arts  of  which. this  real  j[y'ice 
isconkwfedormadcup.-''    ^'*  ^'  ^-'^^k  «-''^*'   ^ifi^^uoicdi  xwa 

Avbt  Mly-,'  what  are  the  dififerent  cu'cumfhnces  whicH  /ome- 
times  raife  fbme  or  iall  of  thefe  different  parts  of  price  above,  and* 
fometunes-  fmk  thctn  belbw  thdr  natural' or  ordinary  rate;  or,, 
what  are  the  caufes  which  ibmetimes  hinder  the  market  price; 
that  is,  the  actual  price,  of  commodities,  from  coinciding  ex'* 
a£tly  with  what  may  be  called  their  natural  price.  ^  , 

I  SHALL  endeavour,  to  explain,  as  fully  and  diftin£lly  as  I  can,, 
thofe  three  fubje£ls  in  the  three  following  chapters,  for  which  I 

muft 


V, 


r 

be  relative 

mt  mean- 
lar  obje<5l:, 
h  the  pof- 
"  value  in 
igs  whicK 
no  value 
he  greatcff 
le  in  '  ijfe. 
Iiafe  fcarce' 
for  it.  A 
ife;  but  a 
had  in  ex-- 

I  exchange* 
iblt  vdliifh 


THE     WEALTH    OF    NATIONS. 


$S 


■i   Oil 

isreal^ice 

hicH  fi^me'- 
above,  and' 
rate;  or,, 
rkct  price; 
iciding  ex** 

[y  as  I  can,. 

for  which  I 

muft 


'if 


mult  very  carneftly  entreat  both  the  pitienbe 'arid  akentron  tyf  the  CH  A  P. 
leader  his  patience  in  order  to  exariiine  a  detail  which  may  per- 
haps m  fome  places  appear  unneceiTarily  tedious ;  and  his  attention 
in  order  to  underftand  what  n)ay,  perliaps,  after  the  fuljeft  expli- 
cation which  I  am  capable  of  giving, of  it, . appear . ftill  ^ri.fome 
degree  obfcure.  I  am  always  willing  to  run  fome  hazai'd  of  being 
tedious  in  order  to  be  Aire  that  I  am  peripicuous  <  and  after  taking 
the  utmofl  pains  that  I  can  tp  be  perfpicuous,  fome.  obicurity  may 
ftill  appear  to  risraai^  v»p9»  a  fubjefl;,wlwch„is  in  its  ^wn^^w^uw 
extremely  abftraaed^;  ^I^^^I  ^Hno^p^a  avj^rf  ognr-rf^W' iii-HHrA" 


h^ 


.'->nf  bRri  9(1  )(|jn3t?fm>  yRra  81k)ojj  -lorfto  lo  vtinini/f*  tfiST;^  'nav 

CHAP.    V.  .^jv^^^iiMh 

Of  the  nhtSfiimikr''Prftt^*fCom»n^^        W-bf  fhelr  Price 
in  Labaur,  and  their '  Price  tit'  'Mbn^,    •      -^  •  ^  -  ■    •    - 

EVEkY'mari  is  rich' or  ^oor  according  to ^^' degree  In %hich 
he  can  afford  to  enjoy  the  nicdiaries,  Cbhvfeniericiesi  arid 
amu{bments  of  human  life.  But  after,  the  diviiipn  of  |ab9\U'  has 
once  thoroughly  taken  place,  it  is  but  a  veiy  (raajU  part  pf 
thefe  with  which  a  man's  own  labour  can  fupply  him.  The  far 
greater  part  of  'ttiitti  he '  miift  derive '  from '  the  labour  of  other 
people,  and  he  muft  be  rich  or  poor  accoi-vling  to  tfeip  quantity  of 
that  labour  which  he  can  tdmmdiidi  br  whicH '  he  can  afibrd  to 
purchafb.  Th6  value  of  any  >comnlodityi\' therefore,  to  the  perfon 
who  po(!efles  it  and  wild  iliean^  ttot  to  ufe  pr^coAFumc'it  himfelf, 
but  to  exchinge  it  for  bther  iomriiodifies,:ii  equal  to  the  quamtlty 
of  labour  which  it  enables  him  to  pyrchafe  or  command.  Labour, 
therefore,   is  the  real  meafure  dt  tiie  excHangeaible' Vatiii^  of  all 


commodities. 


F  2 


Thb 


36 


THE    NATURE    AND    CAUSES    OF 

The  real  price  of  every  thing,  what  every  thing  really  cofts  to 
the  man  who  wants  to  acquire  it,  is  the  toil  and  trouble  of  ac- 
quiring it.  What  every  thing  is  really  worth  to  the  man  who 
has  acquired  it,  and  who  wants  to  difpofe  of  it  or  exchange  it  for 
fomething  elfe,  is  the  toil  and  trouble  which  it  can  fave  to  him- 
lelf,  and  which  it  can  impofe  upon  other  people.  What  is  bought 
with  money  or  with  goods  is  purchafed  by  labour  as  much  at 
what  we  acquire  by  the  toil  of  our  own  body.  That  money  or 
thofe  goods  indeed  fave  us  this  toil.  They  contain  the  value  of 
a  certain  quantity  of  labour  which  we  exchange  for  what  it 
fuppofed  at  the  time  to  contain  the  value  of  an  equal  quantity. 
Labour  was  the  firft  price,  the  original  purchafe  money  that  was 
paid  for  all  things.  It  was  not  by  gold  or  by  fdver,  but  by 
labour,  that  all  the  wealth  of  the  world  was  originally  purchafed  ; 
and  its  value,  to  thofe  who  poiTefs  it  and  who  want  to  exchange 
it  for  fome  new  produ6lions,  is  precifely  equal  to  the  quantity  of 
labour  which  it  can  enable  them  to  purchafe  or  command..     JJ'UiM 


k 


•i».»i      tin 


But  though  labour  be  the  real  meafure  of  the  exchangeable 
value  of  all  commodities,  it  is  not  that  by  which  their  value  is 
commonly  eftimated.  It  is  often  difficult  to  afcertain  the  pro- 
portion between  two  different  quantities  of  labour.  The  time  fpent 
in  two  different  forts  of  work  will  not  always  alone  determine  this 
proportion.  The  different  degrees  of  hardfhip  endured,  and  ci 
ingenuity  excrcifed  muft  likewife  be  taken  into  account.  There 
may  be  more  labour  in  an  hour's  hard  work  than  in  two  hours 
eafy  bufineis  j  or  in  an  hour's  application  to  a  trade  which  it  coft 
ten  years  labour  to  learn,  than  in  a  month's  mduftry  at  an  ordinary 
and  obvious  employment.  But  it  is  not  eafy  to  find  any  accurate 
meafure  either  of  hardfliip  or  ingenuity.  In  exchanging  indeed  the 
different  produftions  of  different  forts  of  labour  for  one  another,, 
fome  allowance  is  commonly  made  for  both.  It  is  adjufled,  how- 
»     ;  ever,, 


THE    WEALTH    OF    NATIONS. 


37 


ever,  not  by  any  accurate  meafure,   but   by   the  higgling  and   CH^AP. 
bargaining  of  the  market,  according  to  that  fort  of  rough  equality 
which,  though  not  exa£t,  is  fufficient  for  carrying  on  the  bufinefs 


of  common  life. 


-  ""-i-- 


u; 


.,U',A'    vi;  ...'    ;ii.«. 


*«  W     *#J 


Every  commodity  befides,  is  more  frequently  exchanged  for, 
and  thereby  compared  with,  other  commodities  than  with  labour. 
It  is  more  natural,  therefore,  to  eftimate  its  exchangeable  value  by 
the  quantity  of  fome  other  commodity  than  by  that  of  the  labour 
which  it  can  purchafe.  The  greater  part  of  people  too  underftand 
better  what  is  meant  by  a  quantity  of  a  particular  commodity,  than 
by  a  quantity  of  labour.  The  one  is  a  plain  palpable  object ;  the 
other  an  abftra£l  notion,  which,  though  it  can  be  made  fufficiently 
intelligible,  xs  not  altogether  fo  natural  and  obviou»«j  ,,^,^^     .  .„  , 

But  when  barter  ceafes,  and  money  has  become  the  common 
inftrument  of  commerce,  every  particular  commodity  is  more 
frequently  exchanged  for  money  than  for  any  other  commodity. 
TJie  butcher  feldom  carries  his  beef  or  his  mutton  to  the  baker,  or 
the  brewer,  in  order  to  exchange  them  for  bread  or  for  beer; 
but  he  carries  them  to  the  market,  where  he  exchanges  them  for 
money,  and  afterwards  exchanges  that  money  for  bxead  and  for 
beer.  The  quantity  of  money  which  he  gets  for  them  regulates 
too  the  quantity  of  bread  and  beer  which  he  can  afterwards  pur- 
chafe. It  is  more  natural  and  obvious  to  him,  therefore,  to  efti- 
mate  their  value  by  the  quantity  of  money,  the  commodity  for 
which  he  immediately  exchanges  them,  than  by  that  of  bread  and 
beer,  the  commodities  for  which  he  can  exchange  them  only  by  the 
intervention  of  another  commodity;  and  rather  to  fay  that  his 
butcher's  meat  is  worth  threepence  or  fourpence  a  pound,  than 
that  it  is  worth  three  or  four  pounds  of  bread,  or  three  or  four 
quarts  of  fmall  beer.  Hence  it  comes  to  pafs  that  the  exchange- 
-P    .  '     able 


S8 


THE    NATURTi    AND     CAUSES    OlF 

nble  value  of  every  cbmmbdlty  U  iiiorc  ffcqiiently  c^irtiatcd  by  'the 
quantity  of  money,  than  by  the  quantity  either  6f  Idbour  or  of  any 
other  commodity  which  can  be  had  in  exchange  for  it. 


.».;  'I 


'i.^' 


Gold  and  filver,  however,  like  every  other  commodity^  vary  in 
their  value,  are  fometimes  cheaper  and  fometimes  dearer,  fometimcs 
of  eafier  and  fometimes  of  more  difficult  purchafe.  The  quantity 
o(  labour  which  any  particular  quantity  of  them  can  purchafe  or 
command,  or  the  quantity  of  other  goods  which  it  will  exchange 
for,  depends  always  upon  the  fertility  or  barrenncfs  of  the  mine* 
which  happen  to  be  known  about  the  time  when  fuch  exchangel 
^rc  made.  The  difcovery  of  the  abundant  mines  of  America 
•reduced,  in  the  fixteenth  centuiy,  the  value  of  gold  and  filver  in 
Europe  to  about  a  third  of  what  it  had  been  before.  As  it  toft 
Icfs  labour  to  bring  thofe  metals  from  the  mine  to  the  market,  (6 
when  they  were  brought  there  they  could  purchafe  or  command 
lefs  labcnif )  and  this  revolution  in  their  value,  though  perhaps  the 
greateftt  lii'  by  iu>  means  the  only  one  of  which  hidory  gives  Comt 
Qccdunti  But  as  A'  tDteafiire  of  ijuantity,  fuch  as  the  tnltural  foot, 
fathom,  or  handful,  which  is  continually  vai7ing  in  its  own  quan<<> 
tityi  ciwi  never  be  an  accurate  mcafure  of  the  quantity  of  othef 
things  i  fo  a  commodity  which  is  itfelf  continually  varying  in  its 
own  value,  can  never  be  an  accurate  meafure  of  the  value  of  other 
commodities.  Equal  quantities  of  labour  muft  at  all  times  and  pfeces 
4*  of  equal  value  to  the  labourer.  He  muft  always  lay  down  tht 
fame  portion  of  his  eafe,  his  liberty,  and  his  happinefs.  The  price 
which  he  pays  muft  always  be  the  fame,  whatever  may  be  thequan*> 
tity  of  goods  which  he  receives  in  return  for  it.  Of  thtfe,  ihdeed;  it 
may  fometimes  purchidft  a  greater  and  fometimes  a  fmaller  quantity ; 
but  it  is  their  value  which  varies,  not  that  of  the  hbour  which  pur- 
chafe^ them.  At  all  times  and  places  that  is  dear  which  h  is  difficult 
lo  come  at,  or  ¥rhich  it  cofts  much  labour  to  acquire  j  and  thatcheap 
§  ;  ■'■  which 


i 


THE    WEALTH,   OF,  NATIONS. 


39 


or  of  any 

;).»i;'q  !><ii' 

'i  vary  in 
umetimcs 
s  quantity 
irchafe  or 
exchange 
the  mine* 
exchange) 

America 
i  filver  in 
As  it  coft 
narket,  (6 
command 
:rhaps  the 
pvcs  feme 
tural  fodt, 
wn  qtian* 
J  of  other 
ring  in  its 
e  of  other 
and  places 
down  tht 
The  price 
the  quan<^ 

indeed;  it 

•  quantity  j 

vhich  pur- 

:  is  difficult 

thatcheap 

which 


which  is  to  be  had  cafily,.  or  with  very  little  labour.    Labour  alone  C  in\  l\ 
tlierefore»  nevei*  varying  in  its  own  value,  is  alone  the  ultimate  and 
real  flandard  by  which  the  value  of  all  commpdities  can  at  all  times 
and  places  be  cftimated  and  compared.    It  is  their  real  price ]  money 
is  theii'  nominal  price  only. 


■I  JA'< 


■  )('■ 


DuT  though  equal  quantities  of  labour  are  always  of  equal 
value  to  the  labourer,  yet' ta  thf  perlbn  who  employs  him  they 
appear  fometimes  to  be  of  greater  and  fometimes  of  fmaller 
value.  He  purchafes  them  fometimts  with  a  greater  and  feme- 
timet  with  a  fmaller  quantity  of  goods,  and  to  him  the  price  of 
labour  feems  to  vary  like  that  of  all  other  things.  It  appears  to 
him  dear  in  the  one  cafe,  and  cheap  in  the  other.  In  reality, 
however,  it  is  the  goods  which  are  cheap  in  the  one  cafe,  and 
dear  in  the  other-  .fj,^,,  g^,  f^^-,.ji|  gfcjam  ^lorij  srird  ui  ■iuo''f;>I  >:  ' 
iMtRmrno')  to  'j!i:ri-)?r/f|  hlno'j  vnh  '»i3f(t  trij^noirj  iJiow  v*!f(J  nsi!'', 

In  this  popular  fcnfe,  therefore.  Labour^  like  commodities; 
may  be  faid  to  have  a  real  amd  a  nominal  priee«:  Its  real  price  may 
be  faid  to  confift  in  the  quantity  of  the  neceflari?s  and  conveniencies 
of  life  which  are  given  for  it  j  its^  nominal  price,,  in  the  quantity 
oi  money.  The  labourer  is  rich  or  poor,  is  well  or  ill  rewarded^ 
in  propg^ipii  tq  the.real^  not  to  the  nominal  price,  of  hi».labour. 


The  diftinftion  between  the  real  and  th«  nominal  price  of  com- 
modities  and  labour,  is  not  a  matter  of.  mere  fpeculation,  \i\A  may 
fometimes  be  of  confidcrable  ufe  in  praftice.  The  fame  real  price  is 
always  of  the  fame  value  y  but  on  account  of  the  variations  in  the 
value  of  gold  and  filver, ,  the  fame  nominal  price  is  fometimes  of 
veiy  different  values.  When  a  landed  eftate,  therefoie,  is  fold 
with  a  refci-vation  of  a  perpetual  rent,  if  it  is  intended  that  this 
rent  ftiould  always  be  of  the  fame  value,  it  is  of  importance  to  the 
family  in  whofe  favour  it  is  referved,  that  it  fhould  not  confift  in 

a  particular. 


40 


THE    NATURE    AND    CAUSES    OF 


I. 


B  O^o  K.  a  particular  fum  of  money.  Its  value  would  in  this  cafe  be  liable 
to  variations  of  two  different  kinds ;  firft,  to  thofe  which  arife  from 
the  different  quantities  of  gold  and  filver  which  are  contsuned  at 
different  times  in  coin  of  the  fame  denomination ;  and,  fecondly, 
to  thofe  which  arife  from  the  different  yalues  of  equal  quantities 
of  gold  and  filver  at  different  times. 

Princes  and  fovereign  flates  have  frequently  fancied  that  they 
had  a  temporary  intereft  to  diminifh  the  quantity  of  pure  metal 
cont^ncd  in  their  coins ;  but  they  feldom  have  fancied  that  they 
had  any  to  augment  it.  The  quantity  of  metal  contained  in  the 
coins,  I  believe,  of  all  nations  has,  accordingly,  been  almofl  con- 
tinually diminifhing,  and  hardly  ever  augmenting.  Such  variations 
therefore  tend  almofl  always  to  diminifh  the  value  of  a  money  rent. 


The  difcoveiy  of  the  mines  of  America  diminifhed  the  value 
of  gold  and  filver  in  Europe.  This  diminution,  it  is  commonly 
fuppofed,  though,  I  apprehend,  without  any  certain  proof,  is  ftiU 
going  on  gradually,  and  is  likely  to  continue  to  do  fo  for  a  long 
time.  Upon  this  fuppofition,  therefore,  fuch  variations  are  more 
likely  to  diminifh,  than  to  augment  the  value  of  a  money  rentv 
even  though  it  fhould  be  flipulated  to  be  paid,  not  in  fuch  a 
quantity  of  coined  money  of  fuch  a  denomination,  (in  fo  many 
pounds  ilerling,  for  example)  but  in  fo  many  ounces  either  of 
pure  filver,  or  of  filver  of  a  certain  flandard.  -^ 

r 

The  rents  which  have  been  referved  in  corn  have  preferved  their 
value  much  better  than  thofe  which  have  been  referved  in  money, 
even  where  the  denomination  of  the  coin  has  not  been  altered. 
By  the  1 8th  of  Elizabeth  it  was  enafted.  That  a  third  of  the  rent 
of  all  college  leafes  fhould  be  referved  in  corn,  to  be  paid,  either 
in  kind,  or  according  to  the  current  prices  at  the  neareft  publick 
•  market. 


km 


B 


THE    WEALTH    OF    NATIONS. 


4» 


'# 


tiiarkk.'    The  money  arlfing  from  this  wm  rent,  though  origmally   CH^ap. 

but  a  third  of  the  whole,  is  in  the  prefent  times,  Recording  to 

Doftoi*  Blackftone,  commonly  near  double  of  what  arifes  from 

the   other  tvvo-thirds.     The  old  money  rents  of  colleges  muft; 

according  to  this  account,  have  funk  almoft  to  a  fourth  part  of 

their  antient  value  j  or  are  worth  little  more  than  a  fourth  pait 

of  the  corn  which  they  were  formerly  worth.     But  fince  the  reign 

of  Philip  and  Mary  the  denomination  of  the  Englifh  coin  has 

undergone  little  or  no  alteration,  and  the  fame  number  of  pounds, 

fhillirigs  and  pence,  have  contained  very  nearly  the  fame  quantity 

©f  pure  filver.     This  degradation,  therefore,  in  tlie  value  of  the 

money  rents  of  colleges,  has  arifen  altogether  fix>m  the  degradation 

m  the  value  of  filver.       ./^■_         ^  ,    ;f      .  . 

hiat  i'JiMH  »»  iO'juiL'  :>nj  liuuu  iih'^^i  cViSWyR  tlOmlfl  pat  J  ■,  ' 

When  the  degradation  in  the  value  of  filver  is  combined  with 

the  diminution  of  the  quantity  of  it  contained  in  the  coin  of 

the  fame  denomination,    the  lofs  is  frequently  dill  greater.     In 

Scotland,  where  the  denomination  of  the  coin  has  undergone  much 

greater  alterations  than  it  ever  did  in  England,  and  in  Prance, 

where  it  has  undergone  dill  greater  than  it  ever  did  in  Scotland, 

fome  antient  rents,  originally  of  confiderable  value,  have  in  this 

manner  been  reduced  almoft  to  nothing,  f  ill/iQ^n  'y.  ^ihisuib 


.,,  f. 


nf 


Eqjjal  quantities  of  laboiir  will  at  diftaht  times  be  purchafcd 
more  nearly  with  equal  quantities  of  corn,  the  fubfiftence  of  the 
labourer,  than  with  equal  quantities  of  gold  and  filver,  or  perhaps 
of  any  other  commodity.  Equal  quantities  of  corn,  therefore, 
will,  at  djftant  times,  be  more  nearly  of  the  fame  real  value,  or 
enable  the  pofleflbr  to  purchafe  or  command  more  nearly  the  fame 
quantity  of  the  labour  of  other  people.  They  will  do  this,  I  fay, 
more  nearly  than  equal  quantities  of  almoft  any  other  commodity ; 
for  even  equal  quantities  of  corn  will  not  do  it  exaiSlly.  The  fub- 
fiftence of  the  labourer,  or  the  real  price  of  labour,   as  I  fliall 

Vol.  I.         .      ^  6  endeavour 


42 


THE    NATtJRE    AND    CAUSES    OF 


B  o  O  K  endeavour  to  (how  hereafter,  is  very  different  upon  different  occa- 
fionsj  more  liberal  in  a  fociety  advancing  to  opulence  than  in 
one  that  is  ftanding  (till ;  and  in  one  that  is  ftanding  ftill  than 
in  one  that  is  going  backvrards.  Every  other  commodity,  how- 
ever, will  at  any  particular  time  purchafe  a  greater  or  fmaller 
quantity  of  labour  in  proportion  to  the  quantity  of  fubiiftence 
which  it  can  purchafe  at  that  time.  A  rent  therefore  referved  in 
corn  is  liable  only  to  the  vai'lations  in  the  quantity  of  labour 
which  a  certain  quantity  of  corn  can  purchafe.  But  a  rent  referved 
in  any  other  commodity  is  liable,  not  only  to  the  variations  in 
tlie  quantity  of  labour  which  any  particular  quantity  of  com  can 
purchafe,  but  to  the  variations  in  the  quantity  of  com  which  can 
be  purchafed  by  any  particular  quantity  of  that  commodity,  :nn  n. 


# 


Though  the  real  value  of  a  corn  rent,  it  is  to  be  obferved 
however,  varies  much  lefs  from  centuiy  to  century  than  that  of  i 
money  rent,  it  varies  much  more  from  year  to  year.  The  monc: 
price  of  labour,  as  I  fliall  endeavour  to  (how  hereafter,  does  nor 
fluctuate  from  year  to  year  with  the  money  price  of  com,  but 
feems  to  be  every  where  accommodated,  not  to  the  temporary  or 
occafional,  but  to  the  average  or  ordinary  price  of  that  neceflary  of 
life.  The  average  or  ordinary  price  of  corn  again  is  regulated,  as  I 
fliall  likewife  endeavour  to  fhow  heirafter,  by  the  value  of  fUver,  by 
the  richnefs  or  barrennefs  of  the  mines  which  ilipply  the  market 
with  that  metal,  or  by  the  quantity  of  labour  which  mufl  be  em- 
ployed, and  confequently  of  corn  which  mull  be  Confumed,  in 
order  to  bring  any  particular  quantity  of  it  from  the  mine  to  the 
market.  But  the  value  of  filver,  tiiough  it  fometimes  varies 
greatly  from  century  to  century,  feldom  varies  much  from  year  to 
year,  but  frequently  continues  the  fame  or  very  nearly  the  fame 
for  half  a  century  or  a  century  together.  The  ordinary  or  average 
money  price  of  corn,   therefore,   may,  during  fo  long  a  period, 

..  continue 


THE    WEALTH     OF    NATIONS. 


♦J 


continue  the  fame  or  very  hearty  the  iame  too,  and  along  ivlth  C  HA  P. 
it  the  money  price  of  labour,  provided,  at  leaft,  the  fociety  con- 
tinues, in  other  refpefts,  in  the  fame  or  nearly  in  the  fame  condition. 
In  the  mean  time  the  temporary  and  occafional  price  of  corn, 
may  frequently  be  double,  one  year,  of  what  it  had  been  the 
year  before,  or  flu6h]ate  from  five  dnd  twenty  to  fifty  (hilling* 
the  quarter,  for  example.  But  when  com  is  «t  the  latter  piice, 
not  only  the  nominal,  but  the  real  value  of  a  coin  rent  will  be 
double  of  what  it  i«  when  at  the  former,  or  will  command  double 
the  quantity  either  of  labour  or  of  the  greater  part  of  other 
commodities ;  the  money  price  of  labour,  and  along  with  it  that 
of  moft  other  things,  continuing  the  fame  during  all  thefe  fluc- 


tuations. 


H- 


■n 


ft- 


Labour,  therefore,  it  appears  evidently,  is  the  oi  -  umverfal, 
as  well  as  the  only  accurate  mtafure  of  vAlue,  'dr  the  on  ftandard 
by  which  we  can  compare  the  values  'fif  diferent  co.  nodities 
at  all  times  and  at  all  places.  We  cannot  eftimate,  it  is  allowed, 
tlie  real  value  of  different  commodities  from  century  to  century 
by  the  quantities  of  filvel*  Which  were  given  for  tljem.  We  cartn<*t 
eftimate  it  from  year  tb  year  by  the  quantities  of  com.  By 
the  quantities  of  labour  we  can,  with  the  greateft  accuracy,  efti- 
mate it  both  from  century  to  century  and  from  year  to  year. 
From  cefttuiy  to  centuiy,  corn  is  a  better  meafurc  than  filter, 
becaufe,  fmm  century  to  century,  equal  quantities  of  com  will 
command  the  fame  quimtity  of  labour  xnore  nearly  than  equal 
quantities  of  filver.  From  jtar  to  year,  on  the  contrary,  filver  is 
a  better  meafure  than  com,  becaufe  equal  quantities  of  it  will 
more  nearly  command  the  fame  quantity  of  labour.         .      .    j 


But  though  in  eflaUilhing  peipetual  rents,  or  even  in  letting 
very  long  leafes,  it  may  be  of  ufe  to  diftinguifti  between  real  and 

G  2  nominal 


44 


THE    NATURE     AND    CAUSES     OF 


B  O^O  K    nominal  price ;  it  is  of  none  in  buying  and  felling,  the  more 
common  am)  ordinary  tranfadtions  of  human  life. 

At  the  fame  time  and  place  the  real  and  the  nominal  price  of 
all  commoditiesL-aEe>«x9£iiy  in  >  proportion  tG  one  another.  The 
more  or  lefs  Tmney  you  f  get  [.for 'any  commodity^  in  the  London: 
market*  for  example^  -the  more  or  lefs  labour  it  will  at  that  timet 
and  place  enable  you  to /purchafe)  or  coKinu^d.  At  tt<e  famo 
time  and  plaoa^  tifiere£c>re»s .  monay  r  is  ithe .  txnAi  m^^vfi  of  thd 
real  exchanq^eable  value  of  all  commodities.  It  is  fo,  however,  ati 
the  fame  time  and; place  only^»'i3V3v/on  ^eim  as  jiiovv  s  dxn  v.i 
.'t.  '(.^..ornmj-.  lB{^JJms^f  a  to  esuibv  isai  iiifn-jhib   x';  'iinqciou  u> 

TH)otf«9  at  dSftjOtt  ^pkcis;>  iiher«  is  no  negular,  prapoctiiott) 
betwlQ^n  lh<^^fe}Aband|l!he^nioney  price  of  coiiMbnditaes,  yist  the 
nk|rchah6^M^^catd^good^fi:oni(  the  one  ito  theothdr  has.  noliiin^^ 
to  cohfideifliult^ifNiil'inonry  price,  or:  the  difference  between  thc^ 
quantity- of '^l^NrfW/^lluch  he  biifs  them,  and  that  for  which  he 
is  Ghety  to  ^i^the^i  -^^italf  an  oimosof  filver'at>QantaitJniChina. 
may  60tt^siitdba-gi^t6r,>qiuuitityibath  oflaboilv  ahd,  of  the  aeceft-^ 
^^  andf^^dnVfcnlbnGles  of  lifd^^than  an^obnce  at  London.  A 
commodity,  i^epofbire,^  ivhiich  f^  for.  haif  aa>  ounce  of  fUver  at 
Canton  liiay  the^e  bjS^reMly  deareri,.  of  more  seal,  importance  to 
the  man  who^  poflf^s  it  rhff/t^  tlian  one  which'  fiflis  i  for  an  ouAco 
at  London  to>  '^e  m^n  who  pofieffes  it  at  Loiidolu  if,  a  London 
merchant,  however,  can- bu^  at  Canton  for  hatf  an  ounce  of 
filver,  a  commodity  which-  hdxaniafterwardsiUl.  at  London  foK 
an  ounce,  he  gains  a  hundred  per  cent  by.ihe  bai;gain  ju(l.as  much 
as  if  an  ounce  of  filver  was  at  London  exactly  of  the  fame  valu^^as 
at  Canton.  It  is  of  no  importance  to  him  that:  half  an  ounce  of 
filver  at  Canton  would  have  given  him  the  command  of  more 
laboui'  and  of  a-  greater  quantity  of  the  nece^aries  and  conve- 
itiencies  of  lire  than  an  ounce  can  do  at  London*.    An  ounce  at 

London. 


m 


m 


un 


F,   I 


'1 


THE    WEALTH    OF    NATIONS. 


4S 


'MM 


m 

MB'* 


London  will  always  give  him  the  command  ©f  double  the  quantity   C  HA  P. 
•f  all  thefe  which  half  an  ounce  could  have  done  there,  and  tlus 
isprccifely  what  he  wants. 

As  it  is  the  nominator  money  price  of  goods,  therefore,  which 
finally  determines  the  prudence  or  imprudence  of  ail  purchafes  and 
fales,  and  thereby  regulates  almoft  the  whole  bufinefs  of  ^ramon 
life  in  which  price  is  concerned,  we  cannot  wonder  that  It  iliould 
have  been  io  much  more  attended  to  than  the  real  price. 

Tn  fuch  a  work  as  this,  however,  it  may  fometiines  Be  of  ufe 
to  compare  the  different  real  values  of  a  particular  commodity  at 
different  times  and-  places,  or  the  different  degrees  of  power  over 
the  labour  of  other  peopb  which  it  may,  upon  different  occafionsi 
have  given  to thofe  whopofleffedit.  We  muft  in  this- cafe  com«> 
pare,  not  fb^much.  the  different  quantities  of  iilver  for  which  it 
was  commonly  fold,,  as  the:  different  quantities,  of  labour  which 
thofe  different  quantities  of  filver  could  have  purchafed.  But  th^. 
current  prices,  of  labour  at  diftant  times  and  places- can  fcarce  ever 
be  known  with  any  degree  of  exa£hiefs.  Thofe  of  com,  thocrgh 
they  have  in  few  place:  been  regularly  recorded,  are  in  general 
better  known  and  have  been  more  frequently  taken  notice  of  by 
hiflorians  and- other  writers.  We  muft  generally,  therefore,  con* 
tent  ourfelves  with  them,  not  as  being  always  exadtly  in  the  fame 
proportion  as- the  current  prices  of  labour,  but  as  being^the  nearefl 
approximation  which  can  commonly  be  had  to  that  proportion. 
I  fhall  hereafter  have  occafion  to  make  fevcral  comparifons  of  this 
kiixdi 

I  ■ 

'■  In  the  progrefs  of  indiiftry,  commercial  nations  have  found'  it 
convenient  tq  coin  feveral  different  metals  into  money  i  gold  for 
larger  payments,  filver  for  purchafes  of  moderate  value,  and  copper 

or 


46 


THE    NATURE     AND     CAUSES    OF 

or  Tome  other  cbarfe  tndal,  for  thofe  of  Aill  fmaller  confideration. 
They  have  al^hrays,  however,  coiifniBred  one  of  thofe  metals  as 
more  peculiarly  the  meafure  of  value  thaii  any  of  the  other  two; 
and  tlus  pieference  feems  generally  to  have  been  given  to  the  metal 
which  tliey  happened  firft  to  make  ufe  of  at  the  ihftrument  of 
commerce.  Having  once  beguato  ufe  It  as  their  il.indard,  which  the/ 
mufl  have  done  when  thry  had  no.  other  money,  tliey  have  gene- 
rally coatii^ed  to,  do, ^eveuwliea  the.  necdfity  was  not  the  fame. 

The  Romans  aie  faid  to  have  had  nothing  butcoppci  money 
till  within  £ve  years  before  the  firft  Punic  war,  when  the^  firft 
began  to  coin  fiWeiv  Copper^  theiiefore,  appears  to  have  oon- 
tinucd  always  tine  tOfeafure  <MF  valiie  in  titat  repul^ick.  At  Rome 
all  accounts  af^Kxtr  to  have  been  kept,  and  the  iralue  of  all  tftates 
to  liave  been  computed  either  in  ^w  or  in  Sefief-ni.  The  jtff 
was  always  the  denomination  xrf  a  copper  coin.  The^wofd  S^ 
teriins  £gnifies  two  Afih  and  a  half.  Though  the  S^efHtiTt 
iiiercfore,  was  always  a  filver  coin,  its  value  was  eftimated  in 
coj^per.  At  Rontev  one  who  owed  a  great  deal  of  money,  was 
faid  to  haw  a  great  deal  of  other  people's  copjier*^   i^' '"  ••  ***''<:i  .«, 

Tub  noi-^em  natitos  who  cflrabKnied  themselves  upon  the  ruins 
of  U)e  Roman  cmpiie*  ftiem  ,to  lia*e  had  filver  money  fram  the  firft 
beginrJng  of  their  fettlemcnta,  and  not  to  have  known  either  gold 
or  copper  coins  for  fcvcral  ages  thereafter.  There  tvere  filver  coins 
in  England  in  the  time  of  thre Faxons ;  but  there  was  little  gold 
coined  till  the  time  of  Edward  Jill.  nt>r  any  copper  till  that  of 
James  I.  of  Great  Britain.  In  England,  therefore,  and  for  the 
fame  reafon,  I  believe,  in  all  other  modern  nations  of  Europe, 
all  accounts  are  kept  and  the  value  of  all  goods  and  of  all  eftates 
IS  generally  computed  in  filver:  and  when  we  mean  to  exprefs 
the  amount  of  a  perfon's  fortune,  we  feldom  mention  the  number 

5  '  of 


•■>ii 


1 


m 


deration, 
netalt  as 
liei*  two; 
he  metal 
iment  of 
hich  thtf 
ivc  gent- 
le fame. 

Bi  money 
:he^  firft 
ave  con* 
f\t  Rome 
11  teftates 
The  Ai 

mated  in 
noy,  wa« 


ittle  gold 
1  that  of 
1  for  the 
Europe, 
ill  ellates 
0  exprefs 
;  number 
of 


THE    WEALTH    OF    NATIONS, 
number  pf  pounds  which  y/9  iiippo 


47 

of  guineas,  but  the  number  pf  pounds  which  w9  iuppofe  would   chap. 
be  given  for  it,. 


'llltC   <i£    'iiC.^.:.:    um^Ht-;^   '^'iO  i:''-.j>)QV>i    Uh    ,i 


"-  i 


Im  aU  countries,  I  believe*  a  If^al  tender  of  payment  could 
originally  be  made  in  the  coin  o£  that  metal  only  which  was  pecu-> 
liarly  coufidercd  as  th«  ftandard  ot  meaifure  of  value.  In  England 
gdd  was  not  confidered  its  « IqgpL  tender  for  « long  time  after  it 
was  coined  into  mooey.  The  pr^ortion  between  the  values  of 
gold  and  filver  money  was  not  fixed  by  any  publick  law  or  pro- 
clamation j  bu  was  left  to  be  fettled  l^  the  market.  If  a  debtor 
Q&red  pa^eol;  in  gold,  the  creditor  nw^ht  eitb^r  veje^  C^ch  pay- 
ment ahiogetbflr,  or  accept  of  it  at  fvi^h  a  v^luatiop'  of  tlie  gvid 
as  he  and  his  debfor  could  ag^eupc .).  (i^i^Kii' i.  .dt  at  prefent 
a  legal  tender,  except  ki  the  change  of  the '  iiioH}ar  ftWer  coins. 
In  this  ftate  of  things  the  dtftin6lioa  betnnrsm  the  metal  which  was 
the  ftanii"'''^'  and  that  which  was  not  the  ilandacd,.  wa&  fom^thiii^ 
more  than  *«iominal:diftini£Uon*    im^ ''x^^  oy-gt'.asbu/fil  .-ji^l;  % 

In  procefs  of  tiwie,  and  ac  people  became  gra^ally  more  familiar 
with  the  ufe  of  the  different  m^^ls  ih-  coin,  and.  consequently  better 
acquainted  with  the  proportion  between  their  refpc^tive  values, 
it  has,  in  moft  countries  I  belicVis,  been  fou^rdi  convenient  to  after- 
tain  this  proportion,  and  to  declarfe  by  a  pubKck  law  that  a  guinea, 
for  example,  of  fach  a  weight  and  fincneft,  (hould  exchange  for 
one  and  twenty  (Wllings,  or  be  a  legal  tendei^Yor  a -debt  of  that 
ftim.  In  this  ftate  of  things,  and  during  the  eon^uance  of  any 
one  reg'Ttated  proportion  of  this  kind,  the  diftinftibn  between  the 
metal  which  is  the  ftandard  and  that  wliich  is  not  the  fbndard, 
becomes  little  more  than  a  nominal  diftinaion.         ■  -  -.  ■  - - 

In  confcquence  of  any  change,  however,  in  this  regulated  propor- 
tion, this  diftinftion  becomes,  or  at  Icail  feems  to  become,  fomcthing 

more 


4» 


THE     NATURE     AND    CAUSES    OP 


B  O  O  K  more  than  nominal  again.  If  the  regulated  value  of  a  guinea, 
for  example,  was  either  reduced  to  twenty,  or  raifed  to  two 
and  twenty  (hillings,  all  accounts  being  kept  and  almod  all  obli- 
gations for  debt  being  exprelled  in  filver  money,  the  greater  part 
of  payments  could  in  either  cafe  be  made  witli  the  fame  quantity 
of  filver  money  as  before  j  but  would  require  very  different  quan- 
tities of  gold  moneys  a  greater  in  the  one  cafe,  and  a  fmallerin 
the  other.  Silver  would  appear  to  be  more  invariable  in  its  value 
than  gold.  Silver  would  appear  to  meafure  the  value  of  gold,  and 
gold  would  not  appear  to  meafure  the  value  of  filver.  The  value 
of  gold  would  feem  to  depend  upon  the  quantity  of  filver  which 
it  would  exchange  fori  and  the  value  of  filver  would  not  fecm 
to  depend  upon  the  quantity  of  gold  which  it  would  exchange 
for.  This  diiference  however  would  be  altogether  owing  to  the 
cuftom  of  keeping  accounts  and  of  expiring  the  amount  of  all 
great  and  fixiall.fums  rather  in  filver  than  in  gold  mon^.  One 
of  Mr.  Drummond'c  notes  for  five  and  twenty  or  fifty  guineas 
would,  after  an  alteration  of  this  kind,  be  flill  payable  with  five 
and  twenty  or  fifty  guineas  in  the  fame  manner  as  before.  It 
^wvuld,  after  fuch  an  alteration,  be  payable  with  the  fiune  quan- 
tity of  gold  as  before,  but  with  very  different  quantities  of  filver. 
In  the  payment  of  fuch  a  note,  gold  would  appear  to  be  more 
invariable  in  its  value  than  filver.  Gold  would  appear  to  mea- 
fiire  the  value  of  filver,  and  filver  would  not  appear  to  meafiire 
the  value  of  gold.  If  the  cuftom  of  keeping  accounts,  and  of 
exprefling  promifibry  notes  and  other  obligations  for  money  in 
this  manner,  fhould  ever  become  general,  gold,  and  not  filver, 
would  be  confidered  as  the  metal  which  was  peculiarly  the  ilandard 
or  meafiire  of  value...  ,:^.;. ,}.,,,  !.,.,f,^j,,j,.;^;,j.,^^,j;g.^,^^   ,  7,.,,     ; 

In  reality,  during  the  continuance  of  any  one  regulated  pro- 
portion between  the  refpe^ive  values  of  the  different  metals  in 

coin, 


I 


vr    ^*'| 


'Mil 


H 


THE    WEALTH    OP    NATIONS/ 


49 


coin,  the  value  of  the  moft  precious  mctil  regulates  the  value  C  H^A  P. 

of  the  wh(i>te  com.     Twelve  copper  pence  contain  half  a  pound, 

avoit<(Jii^bis,   of  copper,  of  not  the  heft  quality,  which,  before 

iVis  c6\ticdi  is'  fcldom  worth  fcvenpertte  in  filver.     But  as  by 

the  f^^atlttti  tw^lvcf  ftich  pence  nte  ordered  to  exchange  for  a 

(hiliWg,    they  art  in  the  market  con fidered"  as  worths  fhiHing; 

aiVd  a  Ihilling  can  atjftiy  time  be  had  for  them.     Even  before  the 

late  rcfomlation' of  thc^^goM  coin  of  Great  Britain,  rtiegold,  that 

part' of^it:tet^  l«l(t  "(\Hlch  dt^Ifelted  in  London  aiid  tts  neig!wOur- 

hotidj    Wa.i(  in  ]i;6nenirief8  degraded  belov^  its  itandaitl  weight 

tlian  •Ae^eiitei'  paitof'the  ftlver.    One  and  twenty  worn  and 

defaced   ihilUngs,    howe^r,   were  coniidered  a»  equivalent  to  a 

guinea/'whkh'perhapcr^'  indeed,  was  Worn  and  defaoed  too,  but 

fcl^iA  ib'tumh^fo.    The  late  regulations  have  l>r^ght<  the  gold 

coin  id  rieiir  pd^hap^  to  its'ftandard  weight  as  It  is  pp^ble  to  bring 

th^' current  coin  of  any  nations   and  t^e  orders   ta> receive  no 

gold^  tit  the  l^bfick  Alices  but  by  wei^t,  is  lihely  to  preiefve  it  fa 

a$ldng^'As-^IiM.'ordei^is>  ienforced.     The  filvencdin  (lilt  continlies 

in  the  fitri^ '  wdrn  and  degraded  ftktt  as  belbrt  xhs  reformation  of 

the- gold  coin,     fn  the  market,  however,  otth  and  twchty  ftiilfings 

of  this  degraded  iilvei  coirv  are  flili  confidered  as  wortli  a  giiinea 

of  this  excellent  gold  coin.         ij      -^  •  »     i  >/  u.^mi^.j   „.,  ,  ,. 

,  .  ;.:■     )         '■^^V^h    iih.Al    ^ulftV    -f-    .'U    t>l(Jl5i  (»V.  •  . 

Thb  reformation  of  the  ^Id  coiii/'liai^tvidetttty^raifcd  the  Valiife' 
of  the  filver  coin  which  can  be  exchanged  for  it.  . 

In  the  Englidi  mint  a  poUftd  wdglit  of  gold  is  ttAicd  into' forty* 
four  guineas  Sitd  a  half,  which  at  one  »n!rf  twferity  /hillings  the 
guinea',  is  equal  to  forty-fix  pounds  fourteen  (hiHlhgSand  fixpence. 
An  ounce  of  fuch  gold  coin,  thei^fore,  is  worth  3/.  lys.  io</.4. 
m  fiWer.  In  England  no  duty  or  fcigaor^e  is>  paid  upon  the 
coinage,  and  he  who  carries  a  pound  weight  or  an  ounce  weight  of 

^o^-  '•  H  .ftandard 


49 


THE    NATURE    AND    CAUSES    QF 


■M 


B  OjO  K  ftandard  gold  bullion  to  the  mint,  gets  back  a  pound  weight,  or 
an  ounce  weight  of  gold  in  coin,  without  any  deduftion.  Three 
pounds  feventeen  (hillings  and  ten-pence  halfpenny  an  ounce, 
therefore,  is  faid  to  be  the  mint  price  of  gold  in  England,  or 
the  quantity  of  gold  coin  which  the  mint  gives  in  ^f(^ma  for 

ftandard  gold  bullion.      -  rvMUtti^^vHr  MVmf't  i'       ••        ■ 

J,. I       ,,    ,     ,.,.    - ..    .... II.  .1.  -....>    .._•„.. »»  I., 

BfiFoftE  the  reformation  of  the  gold  coin,  the  price  of  ftandard 

gold  bullion  in  the  market  had  for  many  years  been  upwards  of 
3/.  1 8 J.  fometimes  3/.  19/.  and  very  frequently  4/.  an  ounce; 
that  fum  it  is  probable,  in  the  worn  and  degraded  gold  coin,  feldom 
containing  more  than  an  ounce  of  ftandard  gold.  Since  the  reform- 
ation of  the  gold  coin,  the  market  price  of  ftandard  gold  bullion 
feldom  exceeds  3/.  17/.  yd.  an  ounce.  Before  the  reformation 
of  the  gold  coin  the  market  price  was  always  more  or  lefs  above 
the  mint  price.  Since  that  reformation  the  market  price  has 
been  conftantly  below  the  mint  price.  But  that  market  price 
is  the  fame  whether  it  is  paid  in  gold  or  in  filver  coin.  The  late 
reformation  of  the  gold  coin,  therefore,  has  railed  not  only  the 
value  of  the  gold  coin,  but  likewife  that  of  the  filver  coin  in  pro- 
portion to  gold  bullion,  and  probably  too  in  proportion  to  all  other 
commodities ;  though  the  price  of  the  greater  part  of  other  com- 
modities being  influenced  by  fo  many  other  caufes,  the  rife  in  the 
value  either  of  gold  or  filver  coin  in  proportion  to  them,  may  not 
be  fo  diftinft  and  fenfible. 

In  the  Englifh  mint  a  pound  weight  of  ftandard  filver  bullion 
is  coined  into  fixty-two  (hillings,  containing,  in  the  fame  manner, 
a  pound  weight  of  ftandard  fUver.  Five  (hillings  and  two-pence 
an  ounce,  therefore,  is  faid  to  be  the  mint  price  of  (ilver  in 
England,  or  the  quantity  of  filver  coin  which  the  mint  gives  in 
return  for  ftandard  filver  bullion.  Before  the  reformation  of  the 
gold  coin,  the  market  price  of  ftandard  filver  bullion  was,  upon 
8  different 


»^i>J 


% 


THE    WEALTH    OF    NATIONS. 


*t 


different  occaflons,  five  (hillings  and  four-pciicc,  five  fliillings  and  C  HA  P. 
five-pence,  five  (hillings  and  fixpence,  five  (hillings  and  feven- 
pence,  and  very  often  five  (hillings  and  eight-pence  an  ounce. 
Five  (hillings  and  feven-pence,  however,  feems  to  have  been  the 
moft  common  price.  Since  the  reformation  of  the  gold  coin,  the 
market  price  of  (landard  filver  bullion  has  fallen  occafionalty  to 
five  (hillings  and  three-pence,  five  (hillings  and  four-pence,  and 
five  (hillings  and  five-pence  an  ounce,  which  laft  price  it  has  fcarce 
ever  exceeded.  Though  the  market  price  of  filver  bullion  has 
fallen  confiderably  fince  the  reformation  of  the  gold  coin,  it  han 
not  fallen  fo  low  as  the  mint  price.    ;„,.;,, 

»     .  .  ^  f     e  -I    .  '  .       I      _       rf  .   A      4.  '.        *     .    ■  .--.♦.■..-  .     ■-.     - 

In  the  proportion  between  the  diiferent  metals  in  the  Engli(h 
coin,  as  copper  is  rated  very  much  above  its  real  value,  fo  filver 
is  rated  fomewhat  below  it.  In  the  market  of  Europe,  in  the 
French  coin  and  in  the  Dutch  coin,  an  ounce  of  fine  gold  ex- 
changes for  about  fourteen  ounces  of  fine  filver.  In  the  EnglUh 
coin,  it  exchanges  for  about  fifteen  ounces,  that  is,  for  more  filver 
than  it  is  worth  according  to  the  .  ommon  cftimation  of  Europe. 
But  as  the  price  of  copper  in  bars  is  not,  even  in  England,  raifed 
by  the  high  price  of  copper  in  Engli(h  coin,  fo  the  price  of  filver 
in  bullion  is  not  funk  by  the  low  rate  of  filver  in  Englifii  coin. 
Silver  in  bullion  (till  preferves  its  proper  proportion  to  gold;  foi 
the  fame  reafon  that  copper  in  bars  preferves  its  proper  propoition 
to  filver. 

Upon  the  reformation  of  the  filver  coin  In  the  reign  of  William 
III.  the  price  of  filver  bullion  ftiU  continued  to  be  fomewhat  above 
the  mint  price.  Mr.  Locke  imputed  this  high  price  to  the  per- 
mi(non  of  exporting  filver  bullion,  and  to  the  prohibition  of  ex- 
portmg  filver  coin.  This  permiffion  of  exporting,  he  faid 
rendered  the  demand  for  filver  buUion  greater  than  the  demand 

'  •  «2  (br 


!• 


THE  NATURE  AND  CAUSES  OF 

for  filver  coin.  But  the  number  of  people  who  want  filver  coin 
for  the  common  ufcs  of  buying  and  felling  at  home,  ii  furely 
much  greater  than  that  of  thofc  who  want  filver  bullion  either  for 
the  ufe  of  exportation  or  for  any  other  ufe.  There  fubfifts  at  pre- 
fent  a  like  permiflion  of  exporting  gold  bullion  and  a  like  prohibi- 
tion of  exporting  gold  coin ;  and  yet  the  price  of  gold  bullion 
has  fallen  below  the  mint  price.  But  in  the  Englifh  coin  filver 
was  then,  in  the  fame  manner  as  now,  under-ratod  in  proportion 
to  gold }  and  the  gold  coin  (which  at  that  time  too  was  not  fup- 
pofcd  to  require  any  reformation)  regulated  then,  as  well  as  now, 
the  real  value  of  the  whole  coin.  As  the  reformation  of  the 
filver  coin  did  not  then  reduce  the  price  of  filver  bullion  to  the 
mint  price,  it  is  not  very  probable  that  a  like  reformation  will  do 
fonow.  .  ♦ 


Were  the  filver  coin  brought  back  as  near  to  its  ftandard 
weight  as  the  gold,  a  guinea,  it  is  probable,  would,  according 
to  the  prefent  proportion,  exchange  for  more  filver  in  coin  than 
it  would  purchafe  in  bullion.  The  filver  coin  containing  its 
full  ftandard  weight,  there  would  in  this  cafe  be  a  profit  in 
melting  it  down,  in  order,  firfV,  to  fell  the  bullion  for  gold  coin, 
and  afterwards  to  exchange  this  gold  coin  for  filver  coin  to  be 
melted  down  in  the  fame  manner.  Some  alteration  in  tlie  prefent 
proportion  feems  to  be  the  only  method  of  preventing  this  incon» 
veniency.  .      . 

The  inconveniency  perhaps  would  be  lefs  if  filver  was  rated  in 
the  coin  as  much  above  its  proper  proportion  to  gold  as  it  is  at 
prefent  rated  below  it ;  provided  it  was  at  the  fame  time  enadled 
that  filver  fhould  not  be  a  legal  tender  for  more  than  the  change 
of  a  guinea ;  in  the  fame  manner  as  copper  is  not  a  legal  tender 
for  more  than  the  change  of  a  fliiliing.  No  creditor  could  in 
4  this 


THE    WEALTH    OF    NATIONS. 


w 


this  cafe  be  cheated  in  confequcncc  of  die  high  valuatian  of  filver  C  HA  p. 
in  coin;  as  no  creditor  can  at  prclcnt  be  cheated  in  confequcncc  of 
the  high  valuation  of  copper.  The  bankers  only  would  fuffcr  by 
this  regulation.  When  a  run  comes  upon  them  tliey  fometimea 
endeavour  to  gain  time  by  paying  in  fixpences,  and  they  would  be 
precluded  by  this  regulation  from  this  difcreditable  method  of  evad« 
ing  immediate  payment.  They  would  be  obliged  in  confequenca 
to  keep  at  all  times  in  their  coffers  a  greater  =  .-antity  of  ca(h  than 
at  prefent  j  and  though  this  might  no  doubt  !  e  a  confiderable  in- 
oonveniency  to  them,  it  would  at  the  fame  time  be  a  confiderable 
iccurity  to  their  creditors*. 


i( 


Thres  pounds  feventeen  fltillin^js  and  ten- pence  halfi)enny 
(the  mint  price  of  gold)  certainly  cIjcs  not  ontain,  even  in  our 
prefent  excellent  gold  coin,  more  than  an  o  i.  xc  of  ftandard  gold, . 
and  it  may  be  thought,  therefore,  (hould  not  purchafe  more  ftan- 
dard bullion.  But  gold  in  coin  \i  :,«ore  conveniciii  than  gold  in 
bullion,  and  though,  in  England,  the  coinage  is  free,  yet  the 
gold  which  is  carried  in  bullion  to  the  mint,  can  feldom  be 
returned  in  coin  to  the  owner  till  after  a  delay. of  feveral  weeks. 
In  the  prefent  hurry  of  the  mint,  it  could  not  be  returned  till  after 
a  delay  of  feveral  months.  This  delay  is  equivalent  to  a  fmall 
duty,  and  renders  gold  in  coin  fomewhat  more  valuable  than  an 
equal  quantity  of  gold  in  bullion.  If  in  the  EngliHi  coin  filver 
was  rated  according  to  its  proper  proportion  to  gold,  the  price  of 
filver  bullion  would  pr^^bably  fall  below  the  mint  price  even  without 
any  reformation  of  tl..  'i'ver  coin;  the  value  even  of  the  prefent 
worn  and  defaced  filver  coin  being  regulated  by  the  value  of  the. 
eocccUent  gold  coin  for  which  it  can  be  changed. 

A  SMALL  feignorage  or  duty  upon  the  coinage  of  both  gold  and  ' 
filver  would  probably  incrcafe  ftill  more  the  fui)eriority  of  thofe 

metals 


54 


THE    NATURE    AND    CAUSES    OF 


BOOK  metals  in  com  above  an  equal  quantity  of  either  of  them  in  bul- 
'■  lion.  The  coinage  would  in  this  cafe  increafe  the  value  of  the 
metal  coined  in  proportion  to  the  extent  of  this  fmall  duty;  for  the 
fame  reafon  that  the  fafhion  increafes  the  value  of  plate  in  propor- 
tion to  the  price  of  that  fafhion.  The  fuperiority  of  coin  above 
bullion  would  prevent  the  melting  down  of  the  coin,  and  would 
difcourage  its  exportation.  If  upon  any  publick  exigency  it  ftiould 
become  neceflary  to  export  the  coin,  the  greater  part  of  it  would 
foon  return  again  of  its  own  accord.  Abroad  it  could  fell  only  for 
its  weight  in  bullion.  At  home  it  would  buy  more  than  that 
weight.  There  would  be  a  profit,  therefore,  in  bringing  it  home 
again.  In  France  a  feignorage  of  about  eight  per  cent,  is  im- 
pofed  upon  the  coinage,  and  the  French  coin,  when  exported,  is 
laid  to  return  home  again  of  its  own  accord. 

The  occafional  ilu£luations  in  the  market  price  of  gold  and 
niver  bullion  arife  from  the  fame  caufes  as  the  like  flufVuations  in 
that  of  all  other  commodities.  The  frequent  lofs  of  thofe  metals 
from  various  accidents  by  fea  and  by  land,  the  continual  wade  of 
them  in  gilding  and  plating,  in  lace  and  embroidery,  in  the  tear 
and  wear  of  coin,  and  in  the  tear  and  wear  of  plate;  require,  in 
all  countries  which  poffefs  no  mines  of  their  own,  a  continual 
importation  in  order  to  repair  this  lofs  and  this  wafte.  The  mer- 
chant importers,  like  all  other  merchants,  we  may  believe,  endea- 
vour«  IS  well  as  they  can,  to  fuit  their  occafional  importations  to 
what,  they  judge,  is  likely  to  be  the  immediate  demand.  With 
all  their  attention,  however,  they  fometimes  over-do  the  bufinefs, 
and  fometimes  under-do  it.  When  they  import  more  bullion  than 
is  wanted,  rather  than  incur  the  rifk  and  trouble  of  exporting  it 
again,  they  are  fometimes  willing  to  fell  a  part  of  it  for  fomething 
Ififs  than  the  ordinary  or  average  price.  When,  on  the  other  hand, 
they  import  lefs  than  is  wanted,  they  get  fomething  more  than  this 

price. 


■M 


THE    WEALTH    OF    NATIONS. 


55 


m  in  bul- 
lue  of  the 
Yi  for  the 
n  propor- 
:oin  above 
ind  would 
y  it  (hould 
f  it  would 
:11  only  for 
than  that 
iig  it  home 
:nt.  is  im- 
xportedy  is 


f  gold  and 
ituations  in 
hofe  metals 
il  wafte  of 
in  the  tear 
require,  in 
continual 
The  mer- 
:ve,  endea- 
3itations  to 
nd.     With 
le  bufinefs, 
ullion  than 
xporting  it 
fomcthing 
>ther  hand, 
e  than  this 
price. 


1 


-fcufe 


price.  But  when,  under  all  thofe  occafional  fluftuations,  the  mar-  C  HA  P. 
ket  price  either  of  gold  or  filver  bullion  continues  for  feveral  years 
together  fteadily  and  conftantly,  either  more  or  lefs  above,  or  more 
or  lefs  below  the  mint  price;  we  may  be  affured  that  this  fteady 
and  conftant,  either  fuperiority  or  inferiority  of  price,  is  the  efFe6t 
of  (bmething  in  the  ftate  of  the  coin,  which,  at  that  time,  renders 
a  certain  quantity  of  coin  either  of  more  value  or  of  lefs  value 
than  the  precife  quantity  of  bullion  which  it  ought  to  contain. 
The  conftancy  and  fteadinefs  of  the  effeft,  fuppofes  a  propor- 
tionable conftancy  and  fteadinefs  in  the  caufe. 

The  money  of  any  particular  country  is,  at  any  particular  time 
and  place,  more  or  lefs  an  accurate  meafure  of  value  according  as 
the  current  coin  is  more  or  lefs  exaftly  agreeable  to  its  ftandard,  or 
contains  more  or  lefs  exadlly  the  precife  quantity  of  pure  gold  or 
pure  filver  which  it  ought  to  contahfi.  If  in  England,  for  example, 
forty- four  guineas  and  a  half  contained  exafUy  a  pound  weight 
of  ftandard  gold,  or  eleven  ounces  of  fine  gold  and  one  ounce  of 
alloy,  the  gold  coin  of  England  would  be  as  accurate  a  meafure  of 
the  actual  value  of  goods  at  any  particular  time  and  place  as  the 
nature  of  the  thing  would  admit.  But  if,  by  rubbing  and  wearing, 
forty- four  guineas  and  a  half  generally  contain  lefs  than  a  pound 
weight  of  ftandard  gold ;  the  diminution,  however,  being  greater 
in  feme  pieces  than  in  others;  the  meafure  of  value  comes  to  be 
liable  to  the  fame  fort  of  uncertainty  to  which  all  other  weights 
and  meafures  are  commonly  expofed.  As  it  rarely  happens  that 
thefe  are  exaftly  agreeable  to  their  ftandard,  the  merchant  adjufts 
the  price  of  his  goods,  as  well  as  he  can,  not  to  what  thofe  weights 
and  meafures .  ought  to  be,  but  to  what,  upon  an  average,  he 
finds  by  experience,  they  actually  are.  In  confequence  of  a  like 
drforder  in  the  coin,  the  price  of  goods  comes,  in  the  fame  manner, 
to  be  adjufted,  not  to  the  quantity  of  pure  gold  or  filver  which  the 

com, 


5« 


THE  NATURE  AND  CAUSES  OF 


ti. 


coin  ought  to  contain,  but  to  that  which,  upon  an  atcrage,  it 
is  found  by  experience,  it  a^ually  does  contain.  "  ^"'"  ""v 


r'-' 


By  the  money  price  crfgpods,  it  k  to  beohferved,  1  Uiiderftand 
always  the  quantity  of  pure  gold  or  filver  for  which  they  are  fold, 
without  any  regard  to  the  denomination  of  the  coin.  Six  fhillings 
and  eight-pence,  for  example,  in  the  time  of  Edward  I.  I  confider 
as  the  fame  money  price  with  a  pound  fterling  in  the  prefent  times  j 
becaufe  it  contained  as  nearly  as  we  can  judge  the  fame  quantity  of 

pure  filver. 

*^  ;!  h?«ru,i;u,  i>:i7  itl     .itvjii;  g/UHi>p>6  m  IniKjl  xi  Hum 

jriij  ^       ■.--■■■-.  - -         -  .      .  ..    ^ ■—..-.-> — ^t>^^^— 

■    I'Slc   ilrifilKj   h.'i.  ill  ;ijt;!i|  jivsi-j  'Jiu.i  v'.'jwiou^  iUmi  liiilJi  yinat 


CHAP.    VI. 


<(}  hI 


Of  the  component  Parts  of  the  Price  of  Commodities  f,.,^^  ^^; 

IN  tiiat  early  and  rude  flatc  of  focicty  which  preceeds  both  the 
accumulation  of  flock  and  the  appropriation  of  land,  the  pro* 
portion  between  the  quantities  of  labour  neceflary  for  acquiring 
different  obje6ls  feems  to  be  the  only  circumftance  which  can  afford 
any  rule  for  exchanging  them  for  one  another.  If  among  a  nation 
of  hunters,  for  example,  it  ufually  cofh  twice  the  labour  to  kill  a 
beaver  which  it  does  to  kill  a  deer,  one  beaver  fhould  naturally 
exchange  for  or  be  worth  two  deer.  It  is  natural  that  what  is 
ufually  the  produce  of  two  days  or  two  hours  labour  fhould  be 
worth  double  of  what  is  ufually  the  produce  of  one  day's  or.  one 
hour's  labour.  . 


;iMi 


J'^ii     fi  '«" 


>«  %i  iiftjn  ibTiiSJ 


If  the  one  Ipedes  of  labour  fliould  be  more  feverc  than  the  other; 
fome  allowance  will  naturally  be  made  for  this  fuperior  hardfiiipj 

and 


t'-l 


4 
r 


-.55 


THE    WEALTH    OF    NATIONS. 


h 


itcrage,  it 


-  ■>    .  ,-, 
underlland 

y  are  fold, 

»ix  fhillirigs 

,  I  confider 

;fent  times; 

quantity  of 

ql  'id  mm 


if*f''fi|ijft  ft. 

tds  both  the 
id,  the  pro* 
)r  acquiring 
h  can  afford 
ng  a  nation 
)ur  to  kill  a 
Id  naturally 
:!iat  what  is 
fhould  be 
day's  or  one 

in  the  other; 
or  hardlliip} 
and 


M 


and  the  produce  of  one  hour's  labour  in  the  one  way  may  frequently  ^  ^^  P- 
exchange  lor  that  of  two  hours  labour  in  the  other. 

Or  if  the  one  fpecies  of  labour  requires  an  uncommon  degree 
of  dexterity  and  ingenuity,  the  efteem  which  men  have  for  fuch 
talents,  will  naturally  give  a  value  to  their  produce,  fuperior  to 
what  would  be  due  to  the  time  employed  about  it.  Such  talents 
can  feldom  be  acquired  but  in  confequence  of  long  application, 
and  the  fuperior  value  of  their  produce  may  frequently  be  no  more 
than  a  reafonablc  compenfation  for  the  time  and  labour  which 
muft  be  ^nt  in  acquiring  them.  lu  the  advanced  ftate  of  fociety, 
allowances  of  this  kind,  for  fuperior  hardship  and  fuperior  fkill, 
arc  commonly  made  in  the  wages  of  labour;  and  ibmething  of  the 
fame  kind  muft  probably  have  taken  place  in  its  earlieft  and  rudcft 
period.         .  .        -  -  '    I 

In  this  ftate  of  things  the  quantity  of  labour  comthonly  employed 
in  acquiring  or  producing  any  commodity,  is  the  only  circum- 
ftance  which  can  regulate  the  quantity  of  labour  which  it  ought 
commonly  to  purchafe,  command,  or  exchange  for. 

As  foon  as  ftock  has  accumulated  in  the  hands  of  particular 
perfons,  fome  of  them  will  naturally  employ  it  in  fetting  to  work 
induftrious  people,  whom  they  will  fupply  with  materials  and 
fubfiftence,  in  order  to  make  a  profit  by  the  fale  of  their  work, 
or  by  what  their  labour  adds  to  the  value  of  the  materials.  In  ex- 
changing the  complete  manufaaure  either  for  money,  for  hbour, 
or  for  other  goods,  over  and  above  what  may  be  fufficient  to  pay 
the  price  of  the  materials,  and  the  wages  of  the  workmen,  fome- 
thing  muft  be  given  for  the  profits  of  the  undertaker  of  the  work 
who  hazards  his  ftock  in  this  adventure.  The  value  which  the 
workmen  add  to  the  materials,  therefore,   refolves  itf;lf  in  this 

^^^•'-  .      f  cafe 


THE    NATURE     AND     CAUSES     OF 


BOOK  cafe  into  two  parts,  of  which  the  one  pays  their  wages,  the  other  the 
profits  of  their  employer  upon  the  whole  ftock  of  materials  and 
wages  which  he  advanced.  He  could  have  no  intereft  to  employ 
them,  unlefs  he  expe6led  from  the  fale  of  their  work  fomething 
more  than  what  was  fufficient  to  replace  his  ftock  to  him ;  and  he 
could  have  no  intereft  to  employ  a  great  ftock  rather  than  a  fmall 
u'\lefs  his  profits  were  to  bear  fome  proportion  to  the  extent 


on-i 


of  his  ftock. 


<'S'.'Of'^    ,JlJr,'f;' 


•',j 'brif;  ;ir!')nS 


The  profits  of  ftock,  it  may  perhaps  be  thought,  are  only  a 
different  name  for  the  wages  of  a  particular  fort  of  labour,  the 
labour  of  infpc6tion  and  diredlion.  They  are,  however,  altogether 
different,  are  regulated  by  quite  different  principles,  and  bear  no 
proportion  to  the  quantity,  the  hardfliip,  or  the  ingenuity  of  this 
fuppofed  labour  of  infpeiSlion  and  dire6lion.  They  are  regulated 
altogether  by  the  value  of  the  ftock  em'^'oyed,  and  are  greater  or 
fmaller  in  proportion  to  the  extent  of  this  ftock.  Let  us  fuppofe, 
for  example,  that  in  fome  particular  place,  where  the  common 
annual  profits  of  manufaduring  ftock  are  ten  per  cent,  there  arc 
two  different  raanufatSlures,  in  each  of  which  twenty  workmen  arc 
employed  at  the  rate  of  fifteen  pounds  a  year  each,  or  at  the  ex- 
pence  of  three  hundred  a  year  in  each  manufactory.  Let  us  fup- 
pofe too,  that  the  coarfe  materials  annually  wrought  up  in  the 
one  coft  only  feven  hundred  pounds,  while  the  finer  materials  in 
the  other  coft  feven  thoufand.  The  capital  annually  employed  in  the 
one  will  in  this  cafe  amount  only  to  one  tlioufand  pounds;  whereas 
that  employed  in  the  other  will  amount  to  feven  thoufand  three 
hundred  pounds.  At  the  rate  of  ten  per  cent,  therefore^  the  un- 
dertaker of  the  one  will  exped  an  yearly  profit  of  about  one 
hundred  pound.i  only;  while  that  of  the  other  will  expeft  about 
{even  hundred  and  thirty  pounds.  But  though  their  profits  are  f6 
very  difierent,    their  labour  of  infpedioa  and  direaion  may  be 

I  •'       cither 


THE    WE  A  LT  11    O  i^  ■  1ST  aVI  O  K$/ 


i 
59 


le  other  the 
iterials  and 
t  to  employ 
.  fomething 
m ;  and  he 
han  a  fmali 
3  the  extent 

are  only  a 
labour,  the 
,  altogether 
nd  bear  no 
luity  of  this 
re  regulated 
e  greater  or 
:  us  fuppofe, 
he  commoa 
nt.  there  are 
rorkraen  arc 
or  at  the  ex- 
Let  usfv,,p- 
t  up  in  the 
niaterials  in 
loyed  in  the 
ids;  whereas 
>urand  three 
3re^  the  un- 
f  about  one 
expe6l  about 
[Mofits  are  f6 
ion  may  be 
either 


wV 


.4 


cif  hei^  altogcthel*  or  vciy  nearly  the  fame.  In  many  great  works,  C  FT  A  p. 
almoft  the  whole  labour  of  this  kind  is  frequently  committed  to 
fbme  principal  clerk.  His  wages  properly  exprefs  the  value  of 
this  labour  of  infpe^ion  and  direction.  Though  in  fettling  them 
fome  regard  is  had  commonly,  not  only  to  his  labour  and  (kill, 
but  to  the  truft  which  is  repofed  in  him,  yet  they  never  beai  any 
regular  proportion  to  the  capital  of  which  he  overfees  the  manag;- 
mentj  aud  tlie  owner  of  this  capital,  though  he  is  thus  difcharged 
of  almofl  all  labour,  ftill  expe(5ts  that  his  profits  fhould  bear  a 
regular  proportion  to  it.  In  the  price  of  commodities,  there- 
fore, the  profits  of  flock  are  a  fource  of  valut  altogt  '^er  dlfTerent 
from  the  wages  of  labour,  and  regulated  by  quite  different  prin- 
ciples. 
.-'.flj   lo  vuuftiisnt  •j<!i  K)  ^iiutilJit.i)  '  il.   ffi.'iiir.up -un  01  a.  lii  ■;.;■ 

In  this  ftate  of  things,  therefore,  the  quantity  of  labour  com- 
monly  employed  in  acquiring  or  producing  any  commodity,  is  by 
no  means  the  only  circumftance  which  can  regulate  the  quantity 
which  it  ought  commonly  to  purchafe,  command,  or  exchange  for. 
An  additional  quantity,  it  is  evide^  ^,  mufl:  be  due  for  the  profits 
of  tlie  flock  which  advanced  the  wages  and  funiifhed  the  materials 
of  that  idbour.  •  '•   ^v*.  ,.     .  ..  ;     ;      .    .j-^^  :.  ... 


ta  ('  ■>■•>  io 


•0  J  . 


As  foort  as  the  land  of  any  country  has  all  become  private  pro- 
perty, the  landlords,  like  all  other  men,  love  to  reap  v/here  they 
never  lowed,  and  demand  a  rent  even  for  Its  natural  produce.  The 
wood  of  the  forefl,  the  grafs  of  the  field,  and  all  the  natural  fruits 
of  the  earth,  which,  when  land  was  in  common,  coft  only  the 
trouble  of  gathering  them,  come  to  have  an  additional  price  fixed 
upon  them.  Men  muft  then  pay  for  the  licence  to  gather  them; 
and  in  exchanging  them  either  for  money,  for  labour,  or  for  other 
goods,  over  and  above  what  is  due,  both  for  the  labour  of  ga- 
thering them,  and  for  the  profits  of  the  flock  which,  employs  that 

^  V^  labour. 


)%#^ 


^o 


THE  >  NATURE    AND    CAUSEii    Of 


j.    '!ii 


^  91*^  ^  labour,  ibme  atidwance'  ra^uA  be  made  for  the  price  of  the  licence* 
which  conftitutes  the  firft  rent  of  kiid.  In  the  price,  therefore* 
of  the  g'.eater  pait  of  commodkies  the  rent  of  land  Comes  in 
this  iT'.anner  to  conftkute  a  thii'd  i'ouicq  of  vaUie, 


-•*•*  tm^^     ^T»  «t  1  •»'  < 


In  this  ftate  of  thing?,  neithitthe  calamity  of  I,  i>our  commonly 
employed  in  a<  quiring  oi  prodticivig  any  cohimofJiiv,  nor  the  pro- 
fits of  the  ftock  which  ad v  meed  i'i«  wages  and  furniflied  the  ma- 
terials of  Uiat  labou  r,  are  the  only  circumftances  which  can  regulate 
the  quantity  of  labour  which  it  caght  conrnwiJy  to  purchafe* 
command,  or  exchange  for.  A  third  circuvjvftance  muft  likewife 
be  taken  into  confideration ;  che  rent  of  t :.  land  j  and  the  commo- 
dity mult  commonly  purchafe,  co:t;mand,  or  exchange  for,  aa 
additional  quantity  of  labour,  in  order  to  enable  the  perfon  who 
brings  it  to  market  to  pay  this  rent.  -j.  -awS  io  rj'm  iih  aT 
iv  ^ui  10  i^ij^t^fi  wU  hrtf-  ,  ..iu;:?  vrit  '^o  ?;irlra..l  3flt  ,fi1c1  sr 
.,  The  real  value  of  all  the  <lifFercnt  component  parts  of  price  is 
in  this  manner  meafured  by  the  quantity  of  labour  which  they  can, 
each  of -them,  purchafe  or  command.  Labour  menfures  the  value 
not  only  of  that  part  of  price  which  refolves  itfelf  into  labour,  but 
of  that  which  refolves  itfelf  into  rent,  and  of  that  which  refolves 
itfelf  into  profit.  ^  ^^,,,, 


In  every  fociety  the  price  of  every  commodity  finally  refolves 
itfelf  into  fome  one  or  otlier,  or  all  of  thofe  thr<^  parts;  and  in 
every  improved  fociety,  all  the  tliree  enter  more  oi'  lefs,  as  compo- 
nent parts,  ii)to  the  price  of  the  far  greater  part  of  conunodities. 

In  the  price  of  corn,  for  example,  one  part  pays  the  rent  of  the 

landlord,  another  pays  the  wages  or  maintenance  of  the  labourers 

and  labouring  cattle  employed  in  producing  it,  and  the  third  pays 

the  profit  of  the  farmer.    Thefe  three  parts  fcem  cither  imme- 

5  diately 


■  •  ■','f.! 


rUB' WEALTH    OF    NATIONS. 


«I 


he  licence, 
therefore^ 
comes  in 

commonly 
►r  the  pro- 
id  the  ma- 
an  regulate 
'  purchaie» 
tft  likewife 
le  commoo 
je  for,  aa 
perfon  who 

.file*  S" 
of  price  h 
h  they  can, 
!s  the  value 
abour,  but 
ich  re/blves 


illy  i-efolves 
rts;  and  in 
as  compo- 
nodities. 

rent  of  the 
le  labourers 
:  third  pays 
her  imme- 
diately 


■^'.f 


-■■ti 


diatcly  or  olthnately  to  make  up  the  ^hdic  price  of  com.  A  fourth  *^  ^j^  '• 
part  it  may  perhaps  be  thought,  is  neccfTary  for  replacmg  the  (lock 
of  the  farmer,  or  for  compenfating  the  tear  and  wear  of  his  \a^ 
bouring  cattle,  and  other  inftruments  of  ha{bandry.  But  it  mifft 
be  confidered  that  the  price  of  any  inftrument  of  hufbandry,  fuch 
as  a  labouring  horfe,  is  itfelf  made  up  of  the  fame  three  parts  j  the 
rent  of  the  land  upon  which  he  is  reared,  the  labour  of  tending  and 
rearing  him,  and  the  profits  of  the  farmer  who  advances  both  the 
rent  of  this  land,  and  the  wages  of  this  labour.  Though  the  price 
of  the  corn,  thei"efore,  may  pay  the  price  as  well  as  the  mainte- 
nance of  the  horfe,  the  whole  price  ftill  refolves  itfelf  either  im- 
mediately or  ultimately  into  the  fame  three  parts  of  rent,  labour,, 
And  profit. 

In  the  price  of  flour  or  meal,  we  mull  add  to  the  price  of 
the  corn,  the  profits  of  the  miller,  and  the  wages  of  his  fer- 
varits;  in  the  price  of  bread,  the  profits  of  the  baker,  and  the 
wages  of  his  fervants;  and  in  the  price  of  both,  the  labour  of 
tranfpoiting  the  com  from  the  houfe  of  the  farmer  to  that  of 
the  miller,  and  from  that  of  the  miller  to  that  of  the  baker,  to- 
gether with  the  profits  of  thofe  who  advance  the  wages  of  that 
labow.  ,  ...>., i.j .  ,.- 

Tke  price  of  flax  refolves  itfelf  into  the  fame  three  part's  as  that 
of  corn.  In  the  price  of  linen  we  muft  add  to  this  price  the 
wages  of  the  flax-drefler,  of  the  fpinner,  of  t!ie  weaver,  of  the 
bleacher,  &c.  together  with  the  profits  of  tlieir  refpeftive  em- 
ployers. 

A«  any  particular  commodity  comes  to  be  more  manufaclured,. 
that  part  of  the  price  which  refolves  itfelf  into  wages  and  profit, 
Komes  to  be  greater  in  proportion  to  that  which  refolves  itfelf  into 

rent. 


Ci 


THE  'kATURE     AND     CAUSES     OF 

renF. "  In  the  prdgi-eJs  of  tlic  rrinufa'flart, '  riot  oiily'  the  tiuh^cr 
of  profits  incieafe,  but  every  fublcquent  profit  is  greater  than  the 
foregoing;  bccaufe  the  capital  from  which  it  is  derived  mnft  al- 
ways be  greater.  The  cnpital  which  employs  the  weavers,  for 
examj)!e,  mull:  be  greater  than  that  whicli  employs  the  fpinnersj 
becaufc  it  not  only  jeplaccs  that  capital  with  its  profits,  but  pays, 
bcfidcs,  the  wageb;  of  the  weavers;  and  the  profits  muft  always 
beai-  ibn:e  proportion  to  the  capital. 

In  the  mofl  improved  focieties,  however,  there  are  always  a 
few  commodities  of  which  the  price  refolves  itfelfinto  two  parts 
only,  the  wages  of  labour,  and  the  profits  of  llcck;  and  a  (I'll 
fmallcr  number  in  v;iiich  it  confifts  altogether  in  the  wjges  of 
labour.  In  the  price  of  fca  filh,  for  example,  one  part  pays  the 
labour  of  the  filhermen,  and  the  other  the  profits  of  the  capital 
employed  in  the  filhery.  Rent  very  feldom  makes  any  part  of  it, 
though  it  docs  fomctimes,  as  I  Ihall  fhevv  hereafter.  It  is  other- 
wile,  at  lead:  through  the  greater  part  of  Europe,  in  river  fifiieries. 
A  ialmon  filhery  pays  a  rent,  and  rent,  though  it  cannot  well  be 
called  the  rent  of  land,  makes  a  part  of  the  price  of  a  falmon 
as  well  as  wages  and  profit.  In  fome  i  arts  of  Scotland  a  few  poor 
people  make  a  trade  of  gathering,  along  the  fea  fliore>  thofc  little 
variegated  ftones  commonly  known  by  the  name  of  Scotch  Pebbles. 
The  price  which  is  paid  to  them  by  the  flone-cutter  is  altogether 
the  wages  of  their  labour;  neither  rent  nor  profit  make  any  part 
of  it. 


•i  r 


But  the  whole  price  of  every  commodity  muft  ftill  finally  re- 
folve  itlelf  into  fome  one  or  other  or  all  of  thole  three  parts;  as 
whatever  part  of  it  remains  after  paying  the  rent  of  the  land,  and 
the  price  of  the  whole  labour  employed  in  raifing,  manufadturing, 
and  bringing  it  to  market,  muft  neceflariiy  be  profit  to  fomebody. 

7  As 


■'li 


'^\ 


o 

?              ^1 

le'^uh^er        ^H 

T  than  the         HH 

avers,    for        m^m 

:  fpinnersi         ■»■ 

but  pays,         ^U| 

.iH;  always        1^1 

:\h2^.'l.                   ^9 

always  a         ^9 

two  parts            .'wSi 

and  a  ftill              fffl 

wages   of            '^ 

t  pays  the             ,^ 

the  capital             fM 

part  of  it,                f« 

t  is  other-          ^^^^H 

ir  fiflieries.           '^^ 

3t  well  be                "^ 

a  falmon 

a  few  poor               ,1 

thofe  little              » 

;h  Pebbles.             Ji 

altogether            .M| 

e  any  [art             -^1 

i ,  ■ 

finally  re- 

parts;  as 

land,  and 

ifafluring,             <  \^ 

)mebody.               ^| 

A9           *^ 

T-HE    yr.^ALTH    OF    NATIONS. 


*3 


As  the  price  or  exchangeable  value  of  every  particular  commo-  C  HA  P. 
dity,  taken  feparately,  refolves  itfclf  into  fome  one  or  other  or  all 
of  thofe  three  parts  j  fo  that  of  all  the  commodities  which  compofe 
the  whole  annual  produce  of  the  labour  of  every  country,  taken 
complexly,  rauft  refulve  itfelf  into  the  fame  three  parts,  and  be 
parcelled  out  am  nig  diflcrcnt  inhabitants  of  the  country,  either 
as  the  wages  of  their  labour,  the  profits  of  thtir  flock,  or  the  rent 
of  their  land.  The  whole  of  what  is  annually  cither  colledcd  or 
l)roduced  by  the  labour  of  every  fociety,  or  what  comes  to  the  fame 
thing,  the  whole  price  of  it,  is  in  this  manner  originally  diftributcd 
among  fome  of  its  different  members.  Wages,  profit,  and  lent, 
arc  the  three  original  fources  of  all  revenue  as  well  as  of  all  ex- 
ciiaiigeable  value.  All  otlicr  revenue  is  vdtimately  derived  from 
Ibme  one  or  other  of  theie.       ai  .tun  t-.;   lo  ^i,  i-piji  rti     .iium 


'j^ij  .H.r    iu  >'!n'.ii',    M'l 


;j:i  H- 


V»' 


SMU 


,iU(;n^tfSii  '3L\i    lo    liM'fh  I 


Whoever  derives  his  ixvenue  from  a  fund  which  is  his  ov.-n, 
muft  draw  it  either  from  his  labour,  from  his  ftock,  or  from  his 
land.  The  revenue  derived  from  labour  is  called  wages.  That  de- 
rived from  ftock,  by  tlie  pcrfon  who  manages-  or  employs  it,  is 
called  profit.  I'hat  derived  from  it  by  the  perfon  who  does  not 
employ  it  himfelf,  but  lends  it  to  another,  is  called  the  intereft  or 
the  ufe  of  money.  It  is  the  compcnfation  which  tlie  borrower  pays 
to  the  lender,  for  the  profit  which  he  has  an  opportunity  of  making 
by  the  ufe  of  the  money.  Pai  t  of  that  profit  naturally  belongs  to 
the  borrower,  who  runs  the  rilk  and  takes  the  trouble  of  employing 
it;  and  part  to  the  lender,  who  affords  him  the  opportunity  of 
making  this  profit.  The  intercft  of  money  is  always  a  derivatl\  o 
revenue,  which,  if  it  is  not  paid  from  the  profit  which  is  made  by 
the  ufe  of  the  money,  muft  be  jjaid  from  fome  other-  fource  of 
revenue,  unlefs  perhaps  the  borrower  is  a  fpendthrift,  who  con- 
tracts a  fecond  debt  in  order  to  ])ay  the  intereft  of  the  firft..  The 
revenue  which  proceeds  altogether  from  land,  is  called  rent,  and 

belongs 


i 
m 


\%^ 


%H^f^^^VKU    ANP    CAUSES    OF 

^  li^k^ng-?  t9  the  Um^t:^-  Th«  i'cv^qim  of  the  iarmir  it  tkiiwed 
pgi  tly  fiom  Ilia  labour,  aud  partly  from  his  ftock.  To  ium,.  land 
i^  only  the  inilrkimeut  whid)  (;n4bles  luni  to  earn  tbe  WQgies  oi  this 
labour,  and  to  make  tlie  promts  o£  this  Qtoak,  All  t«xcs»  and  ail 
tlie  revenue  which  is  founded  upon  them,  all  ihlaries,  penfions, 
and  annuities  of  every  kind,  are  ultimately  derived  from  fomc  one 
or  other  of  thofe  three  original  fources  of  revenue,  and  are  paid 
either  immediately  or  mediately  from  the  wages  of  labowr,  tlic 
profits  of  ftock,  or  the  rent  of  land,  .   ^  . 


.  > 


,  When  thofe  three  different  forts  of  revenue  belong^to  diffferent 
perfons,  they  are  readily  diftinguiflied ;  but  when  they  belong  to 
the  fame  they  are  fometimes  confounded  with  one  another,  at  Icaft 
in  common  language.   .,^.      ^^  ,j..   „u,^  ^,(v  Ji^/Ki»*r>  A 

<  A  GENTLEMAN  who  farms  apart  of  his  own  cftatc,  after  paying 
the  expence  of  cultivation,  fliould  gain  both  the  rent  of  the  land- 
lord and  the  pro^tof  the  farmer.  He  is  apt  to  denominate,  how- 
<vtr,  his  whole  gain,  profit,  and  thus  confounds  rent  with  profit, 
at  leaft  in  common  language.  The  greater  part  of  our  North 
American  and  Weft  Indian  planters  are  in  this  fituation.  They 
iarm,  the  greater  part  of  them,  their  own  eflates,  and  accordingly 
we  feldom  hear  of  the  rent  of  a  plantation,  but  frequently  of  its 
profit:*  , 

Common  farmers  feldom  employ  any  overfecr  to  dire<5t  the 
general  opera^ons  of  the  farm.  They  generally  too  work  a  good 
deal  witii  their  own  hands,  as  ploughmen,  harrowcrs,  &c.  What 
remains  of  the  crop  after  paying  the  rent,  therefore,  fliould  not 
only  replace  to  them  their  ftock  employed  in  cultivation,  together 
with  its  ordinary  profits,  but  pay  them  the  wages  which  are  due 
to  them,  both  as  labourers  and  overfeers.  Whatever  remains, 
-  however. 


)F 

r  if  (kfiiwed 

0  him,,  land 
'Qges  oi  this 
txes.  aud  all 
s,  peniioas. 
ra  fomc  onz 
md  are  ptui 
Ubour,  die 

■•.tt  •     ' 

j^  to  diflferent 
;y  belong  to 
thcr,  at  leafl 

<•, «/  r.  Pi 

after  paying 
of  the  land- 
linate,  how- 

with  profit, 
f  our  North 
tion.     They 

1  accordingly 
ucntly  of  its 

o  dlre<5l  the 
work  a  good 
C^c.  What 
:,  fliould  not 
ion,  together 
^hich  are  due 
:vcr  remains, 
however, 


M 


THE    WEALTH    OF    NATIONS.  •; 

Jionwver,  after  paying  thc""raft'^»htf  fcwpirig  iip  the  ftock,  it  called  ^^J^'* 
|)fx>fit.    But  wages  evidently  make  a  part  of  it.    The  farmer,  hy 
faving  thefe  wages,  mud  necefTariiy  gain  them.   Wages,  therefore, 
are  in  this  cafe  confounded  with  profit. 


jt     «i*ii ' 


kf  .   '■•I^..-*'* 


An  independent  manufacturer,  who  has  ftock  enough  both  to 
purchafe  materials  and  to  maintain  himfelf  till  he  can  carry  his 
work  to  market,  (hould  gain  both  the  wages  of  a  journeyman,  wh6 
works  under  a  mafter,  and  the  profit  which  that  mafler  makes  by 
the  fale  of  his  work.  His  whole  gains,  however,  are  commonly 
called  profit,  and  wages  are,  in  this  cafe  too,  confounded  with 
profit.       pit*  ji'»fi'-'  H;-t   ii;sdi?|.^.iiii'f>  (iuji.gr»  j^e  i^*ii  ,<ftc«}r<f^ 

i  T»  ,-  jiijdjfit.'jtio  ii'ji,'*.'  f»j»nt;i- tnoo  of'H/vntJ*  sii'  xsiV.  inttul  m' 

A  GARDENER  who  cultivatcs  his  own  garden  with  his  own 
hands,  unites  in  his  own  perfon  the  three  diflferent  characters,  of 
landlord,  farmer,  and  labourer.  His  produce,  therefore,  fhould 
pay  him  the  rent  of  the  firft,  the  pro^t  of  the  fecond,  and  the 
wages  of  the  third.  The  whole,  however,  is  commonly  confidered 
as  the  earnings  of  his  labour.  Both  rent  and  profit  are,  in  this 
cafe,  confounded  with  wages.' J  ,,o— .■v'-''-  *  • -!  ^  ■'•'  ^y^'-  'iJ 
;,  r.  yjnsiq    nii.bnl  ^hi //  'iili-.ri»-jf  inn  A 

«  •••  ,J»  ■•>  •( 

•    ■   ■    ■       *  t-       i\       f    ■•  -y      ■  *    ••:  '         .        T        ■•    •   -      f  *    -  ;,   ,  T.   *        tt  ■    .    r     *•»        '   .1   *«•.»*      Ml  N       ,        .   <•     .   1       * 

As  In  a  civilized  country  there  are  but  few  commodities  of  which 
the  exchangeable  value  arifes  from  labour  only,  rent  and  profit 
contributing  largely  to  that  of  the  far  greater  part  of  them,  fo  the 
annual  produce  of  its  labour  will  always  be  fufiicient  to  purchafe 
or  command  a  much  greater  quantity  of  labour  than  what  was  em- 
ployed in  raifing,  preparing,  snd  ^ringing  that  produce  to  market. 
If  the  focicty  was  annually  to  c.nploy  all  the  labour  which  it  can 
annually  purchafe,  as  the  quraitky  of  labour  would  incrcaie  greatly 
every  year,  Co  the  produce  of  eveiy  fucceeding  year  would  be  of  vaftly 
greater  value  than  that  of  the  foregoing.  But  there  is  no  country 
ill  which  the  whole  annual  produce  is  employed  in  maintaining  the 

Vol.  I.  %  Induftrious. 


■» 


^ 


THE    NATURE    AM>    CAUSES    OF 


B  O  O  K  induftrioiM.  The  idle  eveiy  irht re  conAime  a  great  part  of  !t  i 
and  according  to  the  different  prof>ortions  in  which  it  is  annually 
divided  between  thole  two  dtflferent  orders  of  people,  its  ordinary 
or  average  value  muft  either  annually  increaife^  or  dinuniHit  or 
continue  the  fame  from  one  year  to  another. 


r'l- 


._^  ,,:,    CHAP.    vn.   .,  ..,,  ,,„,  ,,„; 

Of  the  natural  and  market  Price  of  Commodities »  "    ' '' 

THERE  is  in  every  fociety  or  neighbourhood  an  ordinary  or 
average  rate  both  of  wages  and  profit  in  cveiy  different  em- 
ployment of  labour  and  ftock.  This  rate  is  naturally  regulated, 
as  I  fhall^ow  hereafter,  partly  by  the  general  circumftances  of  the 
fociety,  their  riches  or  poverty,  their  advancing,  ftationary,  or 
declining  condition  i  and  partly  by  the  paiticular  nature  of  each 
employment. 


.itii-i       7      1. 


There  is  likewife  in  every  fociety  or  neighbourhood  an  ordinary 
or  average  rate  of  rent,  which  is  regulated  too,  as  I  fhaH  (how 
hereafter,  paidy  by  the  general  circumftances  of  the  fociety  or 
neighbourhood  in  which  the  land  is  fituated,  and  partly  by  the 
natural  or  improved  fertility  of  the  land. 

These  ordinary  or  average  rates  may  be  catted  the  natural 
rates  of  wages,  profit,  and  rent,  at  the  tin^e  and  place  in  which 
they  commonly  prevail.  ^  ^      , 

Whem  the  price  of  any  commodity  is  neither  mofft  nor  lefs 

than  what  is  fufiicient  to  pay  the  rent  of  the  land,  the  wages  of  the 

7  labour. 


m 


m 


THE    WEALTH    OF    NATION$. 


«)- 


part  of  it  i 
s  annually 
ts  ordinary 
ininifht  or 


ordinary  or 
liferent  em- 
y  regulated, 
uices  of  the 
itionary,  or 
ire  of  each 


an  ordinary 

fhaH  (how 

fociety  or 

rtly  by  the 


the  natural 
ue  in  which 


x'e  nor  lefs 
vages  of  the 
labour. 


1 


A^ 


labour,  and  the  profiti  of  the  ftock  employed  in  raifing,  preparing,   C  H^A  f. 
and  bringing  it  to  market,  according  to  their   natural   ratet , 
the  commodity  ii  then  fold  for  what  may  bo  called  its  natural 


price. 


The  commodity  if  then  fold  precifely  for  what  it  is  worth* 
or  for  what  it  really  cofls  the  perfon  who  brings  it  to  market  j  for 
though  in  common  language  what  is  called  the  prime  coft  of  any 
commodity  does  not  comprehend  the  profit  of  the  perfon  who  is 
tu  fell  it  again,  yet  if  he  fells  it  at  a  price  which  does  not  allow  him 
the  ordinary  rate  of  profit  in  his  neighbourhood,  he  is  evidently 
a  lofer  by  the  trade  {  fince  by  employing  bis  ftpck  in  f&me  other  way 
he  might  have  made  that  profit.  His  profit,  befides,  is  his  revenue, 
the  proper  fund  of  his  lubfiflence.  As,  while  he  is  preparing  and 
bringing  the  goods  to  market,  he  advances  to  his  woi  kihen  their 
wages,  or  their  fubfiftence,  fo  he  advances  to  himfelf,  in  the  fame 
manner,  his  own  fubfiftence,  which  is  generally  fuitabU^'to  tht 
profit  which  he  may  reafonably  expe£l:  from  the  fale  of  his  goods. 
Unlcfs  they  yield  him  this  profit,  therefore,  they  do  not  repay 
him  what  they  may  very  properly  be  faid  to  have  really  coll 
him. 

Though  the  price,  therefore,  which  leaves  him  this  profit,  is 
not  always  the  loweft  at  which  a  dealer  may  fometimes  fell  his 
goods,  it  is  the  loweft  at  which  he  is  likely  to  fell  them  for  any 
confiderable  time;  at  leaft  where  theie  is  perfcft  liberty,  or  where 
he  may  change  his  trade  as  often  as  he  plcafcs. 

Thb  a6lual  price  at  which  any  commodity  Is  commonly  (bid 
is  called  its  market  price.    It  may  cither  be  above,  or  below,  or 


ejcat^Iy  the  fiune  with  its  natural  price. 


K  2 


The 


69f 


THE    NATURE    AND     CAUSES    OP 

The  market  price  of  every  particular  commodity  is  regulated 
by  the  proportion  between  the  quantity  which  is  aftually  brought 
to  market,  and  the  demand  of  thofe  who  are  willing  to  pay  the 
natural  price  of  the  commodity,  or  the  whole  value  of  the  rent, 
labour,  and  profit,  which  mud  be  paid  in  order  to  bring  it  thither. 
Such  people  may  be  called  the  effectual  demanders,  and  their  de- 
mand the  effectual  demand;  fince  it  may  be  fuificient '  >  effectuate 
the  bringing  of  the  commodity  to  market.  It  is  different  from 
the  abfolute  demand.  A  very  poor  man  may  be  faid,  in  fome 
fenfe,  to  have  a  demand  for  a  coach  and  fix  j  he  might  like  to  have  it; 
but  his  demand  is  not  an  effe£lual  demand,  as  the  commodity  can 
never  be  brought  to  market  in  order  to  fatisfy  it» 


When  the  quantity  of  any  commodity  which  is  brought  to. 
market  falls  fhort  of  the  effe£lual  demand,  all  thofe  wlio  are  wil- 
ling to  pay  the  whole  value  of  the  rent,  wages,  and  profit,  whick 
mufl  be  paid  in  order  to  bring  it  thither,  cannot  be  fupplied  with  the 
quantity  which  they  want.  Rather  than  want  it.  altogether,  fome  of 
them  win  be  willing  to  give  more.  A  competition  will  immediately 
begin  among  them,  and  the  market  price  will  rife  more  or  lefs, 
above  the  natural  price,  according  as  the  greatnefs  of  the  deficiency 
increafes  more  or  lefs  the  eagernefs  of  this  competition.  The 
feme  deficiency  will  generally  occafion  a  more  or  lefi  eager  com- 
petition, according  as  the  acquifition  of  the  commodity  happens  ta 
be  of  more  or  lefs  importance  to  the  competitor.  Hence  the  e^* 
erbitant  price  of  the  necefTaries  of  life  during  the.  blockade  of  a-, 
town  or  in  a  famine,  . 


%J& 


When  the  quantity  brought  to  market  exceeds  the  efTedVuar 
demand,  it  cannot  be  all  fold  to  thofe  who  are  willing  to  pay  the- 
whole  value  of  the  rent,  wages  and  profit,  which  muft  be  paid" 
in  order  to  bring  it  thither.     Some  pait  muft  be  fold  to  thofe  who 

ar& 


**■* 


•  • 


THE    WEALTH    OF    NATIONS. 

are  willing  to  pay  kfs,  and  the  low  price  which  they  give  for  *t  ^^^^n 
muft  reduce  the  price  of  the  whole.  The  market  price?  will  fink 
more  or  leis  below  the  natural  price,  according  as  the  greatnefs 
of  theexcefs  increafes  more  or  lefs  the  competition  of  the  fellers^ 
or  according  as  it  happens  to  be  more  or  lefs  important  to  them 
to  get  immediately  rid  of  the  xomn^odity.  The  fame  excefs  in 
the  impoi  tation  of  peiilhable,  will  occaflon  a  much  greater  com- 
petition than  in  that  of  durable  commodities ;  in  the  importation 

of  oranges,  for  example,  than  in  that  of  old  iron.  , . 

**  .rm  filial  >qoc(  yiA-    a      nui»mvl>   >ti>l0£a/>   •■'■:) 

When  the  quantity  brought  to  market  is  juft  fufficient  to  fupply 
the  effeflual  demand  and  no  more,  the  market  price  naturally 
comes  to  be  either  exa^ly,  or  as  nearly  as  can  be  judged  of,  the 
irjne  with  the  natural  price.  The  whole  quantity  upon  hand 
can  be  difpofed  of  for  this  price,  and  cannot  be  difpofed  of  for 
more.  The  competition  of  the  different  dealers  obliges  them 
all  to  accept  of  this  price,  but  does  not  oblige  them^  to  accept 
of  lefs. 


"■ft -T;ojiii  )i  tni;v>  fT!  -'• 


The  quantity  of  every  commodity  brought  to  ijiarket  naturaily 
fuits  itfelf  to  the  efFedual  demand.  It  is  the  intereft  of  all  thoft; 
who  employ  tlieir  land,  labour,  or  ftock,  in  bringing  any  com- 
modity to  market,,  that  the  qiiantity  never  (hoivld  exceed  tJjiei  effecr 
tual  demand;  and  it  is  the  intereft  of  all  other  people  that  it; 
never  ihould  fall  Ihort  of  it. 

If  at  any  time  it  exceeds  the  effe6lual  demandj  fome  of  the 
component  parts  of  its  price  muft  be  paid  below  their  natural 
rate.  If  it  is  rent,  the  intereft  of  the  landlords  will  immediately 
prompt  them  to  withdraw  a.  part  of  their  land;  and  if  it  is 
wages  or  profit,  the  intereft  of  the  labourers  in  the  one.  cafe,,  and 
©f  their  employers  in  the  other,  will  prompt  them  to  withdraw 

a  part: 


f'll 


I 


THE  NATURE  AND  CAUSES  OF 

BOOK  a  part  of  their  labour  or  ftock  frcan  ^h'la  employment.  The 
quantity  brought  to  marki?t  will  foon  be  no  more  than  /^.^^ent 
to  fupply  the  dfieftual  demand.  All  the  diiecenii:  pwt^.  of  ifm 
price  will  rife  to  their  natural  rate,  and  the  whole  price  to  its 
natural  price.  •  ... 

If,  on  the  contrary,  the  quantity  brought  to  market  ihoid4 
at  any  time  fall  (hort  of  the  effe6tual  demand,  fome  of  the  com- 
ponent paits  of  its  price  mud  rife  above  their  natural  rate.  If  it 
is  rent,  the  intereft  of  all  other  landlords  will  naturally  prompt 
them  to  prepare  more  land  for  the  raifmg  of  thi«  commodity  i  if  it 
is  wages  or  profit,  the  intereft  of  all  other  labourers  and  dealers 
will  foon  prompt  them  to  employ  more  labour  and  ftock  in  pre- 
paring and  bringing  it  to  market.  The  quantity  brought  thither 
will  foon  be  fufficient  to  fupply  the  effedual  demand.  All  the 
different  parts  of  its  price  will  foon  fink  to  their  natural  rate, 
and  the  whole  price  to  its  natural  price.     -,    ■■■'■^ 

The  natural  price,  therefore,  is,  as  it  were,  the  central  price, 
to  which  the  prices  of  all  commodities  are  continually  gravitating. 
Different  accidents  may  fometinies  keep  them  fufpended  a  good 
deal  above  it,  and  fomctimes  force  them  down  even  fomcwhat 
below  it.  But  whatever  may  be  the  obftacles  which  hinder  them 
from  fettling  in  this  center  of  repofe  and  continuance,  they  are 
conftantly  tending  towards  it. 

The  whole  quantity  of  induftry  annually  employed  in  order 
to  bring  any  commodity  to  market,  naturally  fuits  itfelf  la  this 
manner  to  the  effeftual  demand.  It  naturally  aims  at  bringing 
always  that  precife  quantity  thitlwr  which  may  be  fufficient  to 
fupply,  and  no  more  than  fupply,  that  demand. 

Jut 


fHfi    WEALtrt    OF    NATIONS. 


7i 


I 


-  BtfT  in  Ibihe  employments  the  fame  quantity  of  induftry  will  ^^j^^* 
ih  diffeiWrt  years  produce  very  different  quantities  of  commbditiesj 
while  in  dthtrs  it  will  produce  always  the  fame,  or  very  ne?^rly 
die  lteii»  The  ferhfe  number  of  labourers  in  hufbandry  wiii, 
in  differttit  years,  produce  very  different  quantities  of  corn,  wine, 
oil,  hops,  &c.  But  the  fame  number  of  fpinners  and  weavers 
will  every  year  product  the  fame  or  very  nearly  the  fame  quantity 
of  linen  and  woollen  cloth.  It  is  only  the  average  procii  re  of 
the  onfc  IJjccies  of  induftry  which  can  be  fuited  in  any  -'f^ei/t  to 
the  effe£lual  demand ;  and  as  its  aftual  produce  is  freque.  aJi 

greater  and  frequently  much  lefs  than  its  average  produce,  the 
quantity  of  the  commodities  brought  to  market  will  fometimes 
exceed  a  good  deal,  and  fometimes  fall  fliort  a  good  deal  of  the 
effeftual  demand.  Even  though  that  demand  therefore  (hould 
continue  always  the  fame,  their  market  price  will  be  liable  to 
great  ftu6tuations,  will  fometimes  fall  a  good  deal  b6low,  and 
fometimes  rife  a  good  deal  above  their  natural  price.  In  the  other 
fpeeies  of  induftry,  the  produce  of  equal  quantities  of  labour 
being  always  the  fame  or  very  nearly  the  fame,  it  can  be  more 
exaaiy  fuited  to  the  effeftual  demand.  While  that  demand  con- 
tinues the  fame,  therefore,  'Lhe  market  price  of  the  commodities 
is  likely  to  do  fo  too,  and  to  be  either  altogether,  or  as  nearly  as 
can  be  judged  of,  the  i  ■  le  with  the  natural  price.  That  the 
price  of  linen  and  woollen  cloth  is  liable  neither  to  fuch  frequent 
nor  to  fuch  great  variations  as  the  price  of  corn,  every  man's  ex- 
perience will  inforn.  him.  The  price  of  the  one  fpeeies  of  com- 
modities varies  only  with  the  variations  in  the  demand  :  That  of 
the  other  varies,  not  only  with  the  variations  in  the  demand,. 
but  with  the  much  greater  and  more  frequent  variations  in  the 
quantity  of  what  is  b?9ug|it  to  market  in  order  to  fupply  tliat 
demand,  .  -      -^      ^ 


TWE 


^a, 


%: 


THE  NATURE  AND  CAUSES  OF 


BOOK  The  occaiional  and  temporary  fludluations  in  the  market  price 
of  any  commodity  fall  chiefly  upon  thofe  parts  of  its  price  which 
refolve  themfelves  into  wages  and  profit.  That  part  which  refolves 
itfelf  into  rent  is  lefs  aifeftcd  by  them.  A  rent  certain  in  money 
is  not  in  the  leaft  aflfeded  by  diem  either  in  its  rate  or  in  its 
value.  A  rent  which  confifts  either  in  a  certain  proportion  or 
in  a  certain  quantity  of  the  rude  produce,  is  no  doubt  affeifled  in 
its  yearly  value  by  all  the  occafional  and  temporary  fluctuations 
in  the  market  price  of  that  rude  produce :  but  it  is  feldom  affedled 
by  them  in  its  yearly  rate.  In  fettling  the  terms  of  the  leafe,  the 
landlord  and  farmer  endeavour,  according  to  their  befl:  judge- 
ment, to  adjufl  that  rate,  not  to  the  temporary  and  occafional, 
but  to  the  average  and  ordinary  price  of  the  produce. 


Such  fluctuations  affe<5t  both  the  value  and  the  rate  either  of 
wages  or  of  profit,  according  as  the  market  happens  to  be  either 
over-ftocked  or  under-ftocked  with  commodities  or  with  labour ; 
with  work  done,  or  with  work  to  be  done.  A  publick  mourning 
raifes  the  price  of  black  cloth  (with  which  the  market  <s  almoft 
always  under-ftocked  upon  fuch  occafions)  and  augments  the 
profits  of  the  merchants  who  poflefs  any  confiderable  quantity  of 
ii.  It  has  no  effedl  upon  the  wages  of  the  weavers.  The  market 
is  under- itocked  with  commodities,  not  with  labour ;  with  work 
done,  not  with  work  to  be  done.  It  raifes  the  wages  of  journey- 
men taylors.  The  market  is  here  under-ftocked  with  labour. 
There  is  an  effeClual  demand  for  labour,  for  more  work  to  be 
done  than  can  be  had.  It  finks  the  price  of  coloured  filks  and 
cloths,  and  thereby  reduces  the  profits  of  the  -nerchants  who  have 
any  confiderable  quantity  of  them  upon  hand.  It  finks  too  the 
wages  of  the  workmen  employed  in  preparing  fuch  commodities, 
for  which  all  demand  is  ftopped  fc;   fix  months,  perhaps  for  a 

twelvemonth. 


p 


twelveiiioftthf^  ""The  Malfkirt  m  Ifeflebvti^dcked  botK i^hCoMhio- 
iitfkrtJJi;*!.^-:*'  f^^i  .:*5a-i-'    -#!i)'';>'itE  «'>Jt*-^f<^J*v»  |^yaft«sixt>  i|viv=<*lr 

^  'fitfT  tliotigh  th^ '  itiarket  prkc^'ot't^i^' pfki^^Iciilair  coWmoSty 
is  in  this  ihantier  cohtfritially  gr^vltftfihg,  "if  one  niay  fay  fo, 
towards  the  natural  price,  yet  fometirties  particular  accidents,  (bme- 
times  natural  caufes,  and  fbmetimes  particular  regulations  of 
police;  may,  in  many  corfiinodities,  keep  up  the  market  price,  for 
a  long  time  together,  a  good  dedl  above  the' natural  price.   \  /j 

When  by  an  incrcafe  in  the  effeftual  demand,  the  market  price 
of  fome  particuhr  commodity  happens  to  rife  a  good  deal  above 
the  natural  price,  thofe  who  employ  their  ftocks  in  fupplying  that 
market  are  generally  careful  to  conceal  this  change.  If  it  was 
commonly  known,  their  great  profit  would  tempt  fo  many  new 
rivals  to  employ  their  ftocks  in  the  fame  way  that,  the  efFe6lual 
demand  being  fully  fupplied,  the  market  price  would  foon  be  re- 
duced to  the  natural  price,  and  perhaps  for  fome  time  even 
below  it.  If  the  market  is  at  a  great  diftance  from  the  refiderce 
of  thofe  who  fupply  it,  they  may  fometimes  be  able  to  keep  the 
fecret  for  feveral  years  together,  and  may  fo  long  enjoy  their  extra- 
ordinary profits  without  any  new  rivals.  Secrets  of  this  kind 
however,  it  muft  be  acknowledged,  can  feldom  be  long  kept; 
and  the  extraordinary  profit  car*  laft  very  little  longer  than  they 
are  kept. 


n 


CHAP. 
VII. 


Secrets  in  manufad:ures  are  capable  of  being  longer  kept 
than  fccrets  in  trade.  A  dyer  who  has  found  the  means  of  pro- 
ducing a  particular  colour  witli  materials  which  coft  onlv  half 
the  price  of  thofe  commonly  made  ufe  of,  may,  with  good  manage- 
ment, enjoy  the  advantage  of  his  difcovery  as  long  as  he  lives, 
and  even  leave  it  as  a  legacy  to  his  p')fterity.     His  extraordinaiy 

Vol.  1.       '  L  gauis 


f^ 


74- 


THE    NATURE    AND    CAUSES    OF 


9  O  O  K  gains  afife  £i:om  tke  high  price  which  is  paid  for  his  private  labour. 

hiff^«t,j  They  properly  confift  in  the  high  wages  of  that  labour.  But  a» 
they  arc  repeated  upon  every  part  of  his  ftock,  and  as  their  whole 
amount  bears*  upon  that  account,  a  regular  prc^ortion  to  it, 
they  are  convmonly  conlidered  as  extraordinary  profits  of  ftock. 

SvCH  enhancements  of  the  market  price  are  evidently  th«  cfie€l» 
of  particular  accidents*  of  which,  however,  the  operatiou  may 
fometimes  laft  for  many  yeais  together. 

Some  natural  produftions  require  fuch  a  fmgularity  of  foil  and 
fituation,  that  all  the  land  n\  a  great  country,  which  is  fit  for  pro- 
ducing them,  may  not  be  fufficient  to  fupply  the  effeftual  demand. 
The  whole  quantity  brought  to  nuirket,  therefore,  may  be  dif- 
pofed  of  to  thofe  who  are  willing  to  give  more  than  what  is  fufficient 
to  pay  the  rent  of  the  land  which  produced  them,  together  with  tlie 
wages  of  the  labour,  and  the  profits  of  the  ftock  which  weie  em- 
ployed in  preparing  and  bringing  them  to  market,,  according  to  their 
natural  rate$.  Such  commodities  may  continue  to  be  fold  at  this 
high  price  for  whole  centuries  together,  and  that  part  of  it  which 
refolves  itfelf  into  the  rent  of  land  is  in  this  cafe  the  part  which 
is  generally  paid  above  its  natural  rate.  The  rent  of  the  land 
which  affords  fuch  fingular  p.nd  efleemed  produ£lions,  like  the 
rent  of  fome  vineyards  in  France  of  a  peculiarly  happy  foil  and 
frtuation,  bear«  no  regular  proportion  to  the  rent  of  other  equ^iUy 
fertile  and  equally  well  cultivated  land  in  its  neighbourhood.  The 
wages  of  the  labour  and  the  profits  of  the  ftock  employed  in 
bringing  fuch  commodities  to  market,  on  the  contrary,  aie  felclom 
ou.  of  their  natural  proportion  to  thole  of  the  other  employments 
of  labour  and  ftock  \i\  their  neighbourhood.  ,.  ., 

Such  enhancements  of  the  market  price  are  evidently  the 
effeft  of  natural  caufes  which  may  hinder  the  effe(5lual  demand 

from 


THE    WEALTH    OF    NATIONS. 


f$ 


from  ever  bsing  fully  fupplieti,  and  which  may  continue,  therefore,   C  HAP. 
to  operate  fiwrever.     \'...,h>i-j.'i  :  *"       ■       *  '  •• 

A  MONOPOLY  granted  either  to  an  individual  or  to  a  trading 
company  has  the  fame  effeft  as  a  fccrct  in  trade  or  manufaftures. 
Tl>e  monopoHfts,  by  keeping  the  market  conftantly  underftocked, 
uy  never  f«rily  fupplying  the  efFe6hial  demand,  fell  their  commo- 
dities much  above  the  natural  pi-ice,  and  raife  thdr  emoluments, 
whether  they  confift  in  wages  or  profit,  gtreatly  abovt  their  nata- 
lal  rate. 


The  price  of  monopoly  is  upon  every  occafion  the  higheft  which 
can  be  got.  The  natural  price,  or  the  price  of  free  cortipetitioin,  on" 
the  contrary,  is-  the  loweft  which  can  be  taken,  not  upon  every 
occafion,  indeed,  but  for  any  confiderable  time  together.  The  one 
is  upon  every  occafion  the  higheft  wliich  can  be  fqueezed  out  of 
the  buyers,  or  which,  it  is  fuppofed,  they  will  confent  to  give : 
The  other  is  the  loweft  which  the  fellers  can  commonly  afford 
to  take,  and  at  the  fame  time  continue  their  bufineis. 


The  cxclufive  privileges  of  corporations,  ftatutes  of  apprcntkc- 
fhip,  and  all  thofc  laws  which  reftrain,  in  particular  emjdoyments, 
the  competition  to  a  fmaller  number  than  might  otherwife  go 
into  them,  h.avc  the  fame  tendency,  though  in  a  lefs  degree.  They 
are  a  fort  of  enlarged  monopolies,  and  may  frequently,  for  ages  to- 
gether and  in  whole  clafles  of  employments,  keep  up  the  market 
price  of  particular  commodities  above  the  natural  price,  and  main- 
tain both  the  wages  of  the  labour  and  the  profits  of  the  ftock 
employed  about  them  (omsw^  ab9v$  their  natural  rate. 

Such  enhancements  of  the  market  price  may  laft  as  long  as^ 
the  regulations  of  police  which  give  occafion  to  them. 


L  2 


The 


THE    NATURE    AND    CAUSES    OF 


The  market  price  of  any  particular  commodity,  though  it  may 
continue  long  above,  can  feldom  continue  long  below  its  natural 
price.  Whatever  part  of  it  was  paid  below  the  natural  rate,  the 
perfons  whofe  intereft  it  affefted  would  immediately  feel  the  lofs, 
and  would  immediately  withdraw  either  fo  much  land,  or  fo  much 
labour,  or  fo  much  ftock;  from  being  employed  about  it,  that  the 
quantity  brought  to  market  would  foon  be  no  more  than  fufficient 
to  fupply  the  efFe6lual  demand.  Its  market  price,  therefore,  would' 
foon  rife  to  the  natural  price.  This  at  leaft  would  be  the  cafe 
where  there  was  peife6l  liberty. 


The  fame  ftatutes  of  apprentlcefhip  and  other  coi-poration  laws 
indeed,  which^  when  a  manufacture  is  in  profperity,  enable  the 
workman  to  raife  his  vjrages  a  good  deal  above  their  natural  rate, 
fometimes  oblige  him,  when  it  decays,  to  let  them  down  a  good 
deal  below  it.  As  h\  the  one  cafe  they  exclude  many  people  from 
his  employment,  fo  in  the  other  they  exclude  him  from  many 
employments.  The  efte6l  of  fuch  regulations,  however,  is  not 
near  fo  durable  in  fmking  the  workman's  wages  below,  as  in  railing 
tliem  above  their  natural  rate.  Their  operation  in  the  one  way 
may  endure  for  many  centuries,  but  in  the  other  it  can  hfl  no 
longer  than  the  lives  of  fome  of  the  workmen  who  were  bred  to 
the  bufinefs  in  the  time  of  its  profperity.  Wlien  they  are  gone,  the 
number  of  thofe  who  are  afterwards  educated  to  the  trade  will  natu- 
rally fuit  itfelf  to  the  effeftual  demand.  The  police  muft  be  as  violent 
as  that  of  Indoftan  or  antient  Egypt  (where  eveiy  man  was  bound 
by  a  principle  of  religion  to  follow  the  occupation  of  his  father, 
and  was  fuppofed  to  commit  the  moft  horrid  facrilege  if  he  changed 
it  for  another)  which  can  in  any  particular  employment,  and  for 
feveral  generations  together,  fink  either  the  wages  of  labour  pr 
the  profits  of  ftock  below  tlieir  natural  rate,.  '  .'   , ' ' 


■41 


■    .SI 


This 


THE    WEALTH    OF    NATIONS. 


77 


This  is  all  that  I  think  neceflary  to  be  obferved  at  prefent  con-    C  H^A  P. 
ccrning    the   deviations^   whether  occafional  or   permanent,    of 
the  market  price  of  commodities  from  the  natural  price.         , 

The  natural  price  itfelf  varies  with  the  natural  rate  of  each  of 
its  component  parts,  of  wages,  profit,  and  rent  i  and  in  every 
fociety  this  rate  varies  according  to  their  circumftances,  accord- 
ing to  their  riches  or  poverty,  their  advancing,  ftationary,  or  de- 
clining condition.  I  fliall,  in  the  four  following  chapters,  endea- 
vour to  explain,  as  fully  and  diftin-^ly  as  I  can,  the  caufes  of  thofe 
different  variations  ► 


First,  I  Ihall  endeavour  to  explain  what  are  the  circumftances 
which  naturally  determine  the  rate  of  wages,  and  in  what  manner 
thofe  circumftances  arc  affeftedby  the  riches  or  poverty,  by  the 
advancing,  ftationary,  or  declining  ftate  of  the  fociety. 

Secondly,  I  fliall  endeavour  to  ftiow  what  are  the  circum* 
ftanccs  which  naturally  determine  the  rate  of  profit,  and  in  what 
manner  too  thofe  circumftances  are  affeded  by  the  like  variations 
in  the  ftate  of  the  fociety..    m,   .r^-jiivitt*     ms.  n    ,.:  ;;,.  .    •    . 

Though  pecuniary  wages  and  profit  are  very  different  In  the 
different  employments  of  labour  and  ftock ;  yet  a  certain  propor- 
tion feems  commonly  to  take  place  between  both  the  pecuniary 
v«ages  in  all  the  different  employments  of  labour,  and  the  pecu- 
niary profits  in  ail  the  different  employments  of  ftock.  This 
proportion,  it  will  appear  hereafter,  depends  partly  upon  the 
nature  of  the  different  employments,  and  partly  upon  the 
different  laws  and  policy  of  the  fociety  in  which  they  are  carried 
on.  But.  though  in  many  refpefts  dependant  upon  the  laws  and 
jolicy»  this  proportion  fcems  to  be  little  affefted  by  the  riches 

ou 


73 


THE     NATURE    AND    CAUSES    QF 

or  poverty  of  that  fociety;  by  its  advancing,  ilaianary,  or  de- 
clining condition ;  but  to  remain  the  fame  oi  very  nearly  the 
fame  in  all  thofe  different  ftates.  I  fliall,  in  the  third  place,  en- 
deavour to  explain  all  the  diff'v.*ut  circumftanccs  which  regulate 
this  proportion. 

In  the  fourth  and  laft  place  I  fliall  endeavour  to  fhow  what  are 
the  circumftanccs  which  regulate  the  rent  of  land,  and  which  either 
rai(e  or  lower  the  real  price  of  all  the  different  fubftanccs  which 
it  produces.  ' 


•  I  :ii 


CHAP.    VIII. 


f-  M'^ 


Of  the  Wages  of  Labour, 

H  E  produce  of  labour  conftitutes  the  natural  reconipence  or 
wages  of  labour. 


Ik  that  original  ftate  of  things,  which  precedes  both  the  appro- 
priation of  land  and  the  accumulation  of  ftock,  the  whole  pro- 
duce of  labour  belongs  to  the  labourer.  He  has  neither  landlord 
nor  mafter  to  Ihare  with  him. 


%u 


Had  this  ftate  continued,  the  wages  of  labour  would  have  aug- 
mented with  all  thofe  improvements  in  its  produ£live  powers,  to 
which  the  divilion  of  labour  gives  occafion.  All  things  would 
gradually  have  become  cheaper.  They  would  have  been  produced 
by  a  fmaller  quantity  of  labour ;  and  as  the  commodities  produced 
by  equal  quantities  of  labour  would  naturally  in  this  ftate  of 
7  things 


IP 

ry,  or  dc- 

:>early  the 
place,  en- 
h  regulate 


^  what  are 
lich  cither 
CCS  which 


iipence  or 


;lli^ 


he  appro- 
hole  pro- 
'  landlord 

1 

^ave  aug- 
owers,  to 
gs  would 
produced 
produced 
i  ftate  of 

1 

4 

things 

] 

TiiB    WEALtH    OF    NATIONS. 

5  e^cchati^  for  one  another,  they  would  ha 
chafed  likewife  with  the  produce  of  a  fmaller  quantity. 


79 
things  be  e^cchatiged  for  one  another,  they  would  have  been  pur-   C  ha  p. 


Bui"  though  all  things  v^ould  have  become  cheaper  in  reality, 
in  appearance  many  things  might  have  become  dearer  than  be- 
fore, or  have  been  exchanged  for  a  greater  quantity  of  other  goods. 
Let  us  fuppofe,  for  examjile,  that  in  the  greater  part  of  employ- 
ments the  produf^lve  powers  of  labour  had  been  improved  to  .  n  • 
fold,  or  that  s  labour  could  produce  ten  times  the  ^^ufiiuiiy 

of  work  wl'  '^ne  originally;  but  that  in  a  parti>..iiar  em- 

ployment the)  improved  only  to  double,  or  that  a  day's 

labour  could  pi  aucc  unly  twice  the  quantity  of  work  which  it  had 
done  before.  In  exchanging  the  produce  of  a  day's  labour  in  the 
greater  pait  of  employments,  for  that  of  a  day's  labour  in  this  par- 
ticular one,  ten  times  the  original  quantity  of  work  in  tliem  would 
purchafe  only  twice  the  original  quantity  in  it.  Any  particular 
qirntity  in  it,  therefore,  a  pound  weight,  for  example,  would 
appear  to  be  five  times  dearer  than  before.  In  reality,  however, 
it  would  be  twice  as  cheap.  Though  it  required  five  times  tlie 
quantity  of  other  goods  to  pui'chafe  it,  it  would  require  only  half 
the  quantity  of  labour  either  to  purchafe  or  to  produce  it.  The 
acquifition,  therefore,  would  be  twice  as  eafy  as  before.  • 

But  this  original  ftate  of  things,  in  which  the  labourer  enjoyed 
the  whole  produce  of  his  own  labour,  could  not  lafl:  beyond"  tiie 
firft  introducftion  of  the  appropriation  of  land  and  the  accumulation 
of  ftuck.  It  was  at  an  end,  thei-efore,  long  before  the  moft  con- 
fiderablc  improvements  were  made  in  the  produ<5tive  powers  of 
labour,  and  it  would  be  to  no  purpofe  to  trace  further  what  miglit 
have  been  its  effeils  upon  the  recompenec  or  wages  of  labour. 

As  foon  as  land  becomes  private  property,  the  landlord  demands- 
a  fhare  of  whatever  produce  the  labourer  can  either  raife,  or  coU 


A«. 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


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4 


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1.0 


1.1 


Ii&|2j8    |25 
m  122   i2.2 


12.0 

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Photographic 

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CQrporallon 


^^    ^\  ^r\\ 


23  WIST  MAIN  STRIIT 

WIBSTIR,N.Y.  145M 

(716)t7a-4S03 


'a 


So 


THE  NATURE  AND  CAUSES  OF 


B  O^O  K   lefl  from  it.    His  rent  makes  the  firft  dedu£lion  from  the  produce 
of  the  labour  wluch  is  employed  upon  land.  ..,  y.,!,. 

It  feldom  happens  that  the  perfon  who  tills  the  giround  has 
wherewithal  to'  maintain  himfelf  till  he  reaps  the  harvcft.  His 
maintenance  is  generally  advanced  to  him  from  the  ftock  of  a 
mafter,  the  farmer  who  employs  him,  and  who  would  have  no 
interell  to  employ  him,  unlefs  he  was  to  fhare  in  the  produce  of 
his  labour,  or  imlefs  his  ftock  was  to  be  replaced  to  him  ynih  a 
profit.  This  profit  makes  a  fecond  dedu£tion  from  the  produce 
of  the  labour  which  is  employed  upon  land. 

The  produce  of  almoft  all  other  labour  is  liable  to  the  like 
dedu6lion  of  profit.  In  all  arts  and  manufaflures  the  greater  part 
of  the  workmen  ftand  in  need  of  a  mafter  to  advance  them  the 
materials  of  their  work,  and  their  wages  and  maintenance  till  it  be 
compleated.  He  (hares  in  the  produce  of  their  labour,  or  in  the 
value  which  it  adds  to  the  materials  upon  which  it  is  beftowedj 
and  in  this  (hare  confifts  his  profit. 

It  fometimes  happens,  indeed,  that  a  (ingle  independant  work- 
ir.an  has  ftock  fufficient  both  to  purchafe  the  materials  of  his  work, 
and  to  maintain  himfelf  till  it  be  compleated.  He  is  both  mafter 
and  workman,  and  enjoys  the  whole  produce  of  his  own  labour, 
or  the  whole  value  which  it  adds  to  tlie  materials  upon  which 
it  is  beftowed.  It  includes  what  are  ufually  two  diftinft  revenues, 
belonging  to  two  diftin£t  perfons,  the  profits  of  ftock,  and  the 
wages  of  labour. 

Such  cafes,  however,  are  not  very  frequent,  and  in  every  part 
of  Europe,  twenty  workmen  ferve  under  a  ibafter  for  one  that  is 
independant;  and  the  wages  of  labdur  are  every  where  undefftood 

to 


THE    WEALTH    OF    NATIONS.  i 

« 

to'i)C,  what  they  ufually  are,  when  the  labourer  is  one  peHan,  and  ^5?in^' 
the  owner  of  t^e  flock  which  employs  him  another.  -f'-  /- 


What  are  the  common  wages  of  labour  depends  every  where 
upon  the  contract  ufually  made  between  thole  two  parties,  whole 
interefts  are  by  no  means  the  fame.  The  workmen  delire  to  get  as 
mud),  the  mafters  to  give  as  little  as  pofiiUe.  T-fae  former  are 
difpofed  to  combine  in  order  to  raife,  the  latter  in  order  to  lower 
the  w^ges  of  la|x»ir. 

It  is  not,  however,  difficult  to  forefee  which  of  the  two  parties 
muft,  upon  all  ordinary  occalions,  have  the  advantage  in  the  dif-> 
pute,  and  force  the  other  into  a  compliance  with  their  terms. 
•The  mafters,  being  fewer  in  number,  cannot  only  combine  more 
■«aAly,  but  the  law  authori&s  their  combinations,  or  at  leaftdoes 
not  prohibit  them,  while  it  prohibits  th(^e  of  the  workmen.  We 
have  no  ads  of  parliament  againft  combuiing  to  lower  the  price  of 
.work;  but  many  againft  combining  to  raile  it.  In  all  fuch  dif- 
putes  the  mafters  can  hold  out  much  longer.  A  landlord,  a  far- 
mer, a  mafter  manufacturer,  or  merchant,  though  they  did  not 
employ  a  fmgle  workman,  could  generally  live  a  year  or  two  upon 
the  ftocks  which  they  have  already  acquired.  Many  workmen 
could  not  fubfift  a  week,  few  could  fubfift  a  month,  and  Icarce 
any  a  year  without  employment.  In  the  long-run  the  workman 
may  be  as  necefl^ry  to  his  mafter  as  his  mafter  is  to  lumj  but  the 
neceftity  is  not  fo  immediate. 

We  rarely  hear,  it  has  been  faid,  of  the  combinations  of  mafters; 
though  frequently  of  thofe  of  workmen.  But  whoever  imagines, 
.upon  this  account,  that  mafters  rarely  combine,  is  as  ignorant  of 
the  world  as  of  the  fubjeil.  Mafters  are  always  and  every  where 
in  a  fort  o|  tacit,  but  conftant  and  uniform  combination,  iwt  to 

Vol.  I,  ^  M  raife 


ti 


THE    NATURE    AND    CAUSES    OF 


BOOK  raife  the  wages  of  labour  above  their  aftual  rate.    To  violate  this 
'■        combination  is  every  where  a  moft  unpopular  a£tion,  and  a  fort 
of  reproach  to  a  mafter  among  his  neighbours  and  equals.    We 
feldom,  indeed,  hear  of  this  combination,  becaufe  it  is  the  ufual, 
and  one  may  fay,  the  natural  ftate  of  thbgs  which  nobody  ever 
hears  of.    Mafters  too  fometimes  enter  into  particular  combina- 
tions to  fink  the  wages  of  labour  even  below  thi»  rate.    Thefc 
are  always  'conducted  with  the  utmoft  filence  and  fecrecy,  till  the 
moment  of  execution,  and  when  the  workmen,  yield,  as  they  fome- 
times do,  without  refiftance,  though  feverely  felt  by  them,  they 
are  never  heard  of  by  other  people.    Such  combinations,  however, 
are  frequentiy  refifted  by  a  contrary  defenfive  combination  of  the 
workmen;  who  fometimes  too,  wdthout  any,, provocation  of  this 
kind,  Cjombi^ie  q(  their  own  accord  to  raUe  .th<e  .|>d(:e,  «f  their  la- 
bour.   Their  ufual  pretences  are,  fometimes,  the.high  price  of  pror 
vifionsj  fometimes  the  great  profit  which  their  mafters  make  by  their 
work.    But  whether  their  combinations  be  offisnfive  or  defenfiw 
they  are  always  abundantly  heav4,  of.     In  order  to  biang  the  i>oint 
toafpeedy  decifion,  they  have  always,  recourfe  to  the  loudeft  cla^- 
'mour,  and  fometimes  to  themofi  ihocking  violence  and  outrage. 
They  are  defperate,  and  a6b  with  the  folly  and  extravagance  of  def- 
perate  men,  whomuft  ftarve  or  frighten  their  mailers  into  an  ini- 
mediate  compliance  with  their  demands,     'l       lalllers  upon  thefe 
occafions  are  juft  as  ckunorous  upon  the  o.uyr  fide,  and  never 
ceafe  to  call  aloud  for  the  affiftance  of  the  civitmagiftrate,  and  the 
rigorous  execution  of  thofe  laws  which  have  been  enadled  with  fo 
much  feverity  againft  the  combinations  of  fervants,  labourers,  and 
journeymen.    The  workmen,  accordingly,  very  feidom  derive  any 
advantage  from  the  violence  of  thofe  tumultuous  combinations, 
which,  partly  from  the  interpofition  of  the  civil  ma^ftrate,  paitly 
from  the  fuperior  fteadinefs  of  the  mafters,   partiy  from  the  ne- 
cefiity  which  the  greater  part  of  the  workmen  are  under  of  fub- 

mitting 


:i,j 


THE    WEALTH    OF    NATiaN^. 

mitting  for  the  fake  of  prefent  fubfiftcnce,  generally  eiiditi  no- 
thing, but  the  punifliment  or  ruin  of  the  ringleaders.  •''  •  '  «^ 
tf/ud  L-m^  .         ■                 •  ■''--  ■'--'■-'-   -        "■  ■'■•■'■4' 

But  'though  in  difptitfcs  With  th^  worlciS^n,  ffiift(er»'  irnufl: 
geilera%^liave  the  advantage,  there  U  however  a  certairt  tate  below 
which  it  ftefms  impoflible  to  reduce,  for  any  confiderable  time, 
the  ordinary  wages  even  of  the  loweft  fpecies  of  labour. 


«i 


CttAP. 
VIII. 


;4' 


A  MA^  muft'i^ways'llve  1)y  his  work,  and  his  wages  mufr  at 
UaA  be  fiifficlent  to  niialntain  him.  Tliey  muft  even  upon  moil 
occafiOns  be  fomewhat  more;  otherwile  it  would  be  Impolflible  to 
bring  up  a  fkfnily;  and  the  race  of  fuch  workmen  ^ould  not  laft 
beyond  the  firfl'gen(iratioh.'  Mr.  Cantllton  (eems,  upon  this  ac- 
count, to  fupptffe  that  the  lo\Veft  fpecies  of  coimmon  labtouriers 
mull  every  where  earn  at  lead  double  their  own  maintenance,  in 
order  t^at  one  with  another  they  may  be  enabled  to  bring  up  two 
children  {  die  labour  <^  tiie  wife,  on  account  of  her  necel&iy  at- 
tendance on  the  children,  being  fuppofed  no  more  than  fufficient 
to  provide  for  heHelf.  But  one-half  the  children  born,  it  is  com- 
puted, die  before  the  age  of  manhood.  The  pooreft  labourers, 
therefore,  according  to  this  account,  muft,  one  with  another,  attempt 
to  rear  at  leaft  four  children,  in  order  that  two  may  have  an  equal 
chance  of  living  to  that  age.  But  the  neceflary  maintenance  of 
four  children,  it  is  fuppofed,  may  be  nearly  equal  to  that  of  one 
man.  The  labour  of  an  able-bodied  flave,  the  iame  author  adds, 
is  computed  to  be  worth  double  his  maintenance;  and  that  of  the 
meaiieft  labourer,  he  thinks,  cannot  be  wortli  lefs  than  that  of 
an  able-bodied  flave.  Thus  far  at  leaft  feems  certain,  that,  in  order 
to  bring  up  a  family,  the  labour  of  the  hufband  and  wife  together 
muft,  even  in  the  loweft  fpecies  of  common  labour,  be  able  to 
earn  fomething  more  than  what  is  pnaciiely  neceflary  for  their  own 
maintenancci    but  in  what  proportion,    whether  in  that  above 

Ma  mentioned. 


H 


THE  NATURE  AND  CAUSES  OF 


BOOK  mentioned,  or  in  anyother»  I  ihall  not  take  upon  me  to  deter- 
"   mine.  v>i^-i?  jpj/  i^uuy 

There  ^re  certain  circumftances,  however,  which  fomctiraea 
give  the  labourers  an  advantage,  and  enable  them,  to  raife  their 
wages  confiderably  above  this  rate  j  evidently , the  loweft  which  i$ 
confillent  with  common  humanity.  

When  in  any  country  ^e  demand  forthofe  who  live  by  wages  ;^ 
labourers,  journeymen,  iervants  of  every  kind,  is  continually  in- 
treafmgi  when  every  year  furniflies  employment  for  a  greater 
number  than  had  been  employed  the  year  before,  the  woikmen 
have  no  occafion  to  combine  in  order  to  raife  their  wages.  The 
fcarcity  of  bands  occafions  a  competition  aniong  mailers,  who  bid 
s^nft  one  another  in  order  to  get  them,  and  thus  voluntaiily 
break. through  the  natural,  combination- of  mafters  not  to  raiie 


wages. 


p'l 


ofji  ic 


Tnr  demand  for  thofe  who  live  by  wages,  it  is  evident,  cannot 
increafe  but  in  proportion  to  the  increafe  of  the  funds  which  are 
deftined  for  the  payment  of  wages.  Thefe  funds  are  of  two  kinds  j. 
firfti  the  I'evcnue  which  is  over  and  above  what  is  neceflary  for  the 
maintenance^  and,  fecondly,  the  flock  which  is  over  and  above 
what  is  neceflary  for  the  employment  of  their  matters. 


.lit 


When  the  landlord;  annuitant,  or  monied  man,  has  a  greater 
revenue  than  what  he  judges  fufRcient  to  maintain  his  own  family, 
he  employs  either  the  whole  or  a  part  of  the  furpliis  in  maintaining 
one  or  more  menial  fervant3.  Increafe  this  furplus,  and  he  will 
naturally  increafe  the  number  of  thofe  fervants. 

When  an  independant  workman,  tath  as  a  weaver  or  flboe- 

vifdker,    has  got  more  fh>ck  than  what  is  fufficient  to  pUrchafe 

7  .  .  .    .  the 


Ilm  fffita^  of  Jii«  o^Nfn  work,,  anf  to  inaintatp.  ^ipj^lff^^  h«  ^^j^,'' 
$j|n jdUp9ftt  r«f  »<:»  ;**  '^^^M'^^y  en^ojrs  ^nc  or.  njwwpe  j<?urn<grfl:i^ 
ii^.tfiift^l^pUii,  in  ^cr  to  make  a  prpfit  by  thdr  wpfV    ir^" 
«fiWfe  thi»  ittrpliMi  jM^  mcreafc  tl|i^jjii|^|[»^^ 

iUbi^^xvklijIhe  nicretTe  of  the  revetkie  aiMi  (loek  of  ev^i^^o^^ 
tilf» ahd^caltnc^p'offibly inciMTe witlMMit it  Th^inet^ftof Mvetitfe 
^hd  ftdek  ii  .the  inftre^ife  of  nationni  #estth.  Tlie  dttiiMflid  for 
thoife^^d  Hve  1^  wtig«St  thertiK>re,  iiataniifljr  increafb  with  tte 
lAcTdi^isi  ftatitthll  Wdfhh,''^iMi''culnBt  i>dnbly  increafeP  wil!^ 

i<  ;.'lT  is  not^the  a^aal  gnatncfr  of  juitianal:  wealth;,  hul  »tf  ^pi|r^ 

timial  incisaie,  which  ocoiiwee  i^;n(e  ia  ihe  w^ge^  cHf  i»tH>u(. 

I»  lis^'Dotk  «coQntingly,t  Ja  .(he^iacheftutpunttieftt  ^ut  ixk  the  mfi^ 

tltdinng  Qit  Ul thoiq.wthwhiuare.. growiagitjmlk  lh»i ibAsft*; J^i^  dthe 

wages  of  labour ,  are  higheft.    £iigknd-»  cerMioly»  in  the  piiiQiiit 

times*  a  much  richer  coimtny  than  any  part  of  North  V^ai9fi<9l< 

The  wages  of  labour,  however,  are  much  higher,  Ml^I^Mth  Aifnericia 

.than  in  .any  part  of  England.    In  (the  p!r(^^^l»f  Njew  lYock, 

common  lafaonrers  ,  earn  three  rihiUing*  ^  aiif)  i^i|NnH)e>.  ^l^ffCQcy, 

<eqmLtotwaihUlings  fterling,  adayi  Ihjpearpentioiravi^tfa^bngs 

and  iixpence  currency,  with  a  pint  q£  rum  w)Qrth<fixpenQe;ilerUng> 

^usd  in^to  Ax  ihillintgs  and  itxpence  fterUng;,J^^carpent(urs 

;4nad  btickl%yc<s^  eight  ihillii^  currency,. .«qu^l,^ tffTUrifl)^^ 

anditxpeace'fteiting;  journeymen  tayliHls,  ^fi.0B^^^i3^^Q^iitiKj» 

equal  to  about  twoihillings  aod  ten-penee  Aerlli^g.  Thefe  pricfss 

are  all  above  the  London  psice;  and  wages  arefaidjtaheas  high 

in  the  other  cofonies  as  in  New  YorH*     The  price  of  pjpvifions  is 

every  jwheis  iff  N«i|th  ^Ajnecica  much  l^wer  than  in  England.    A 

dearth  has  never  hfw.  known  there.    Iii  the  Mioiftieaibns,  they 

Vol.,  I.  M  3  .  have 


w 


THE  NATURE  AND  CAUSES  pF 


DOCK  have  ^ways  had  a  fufficiency  for  themfelves,  though  left  for  expor- 
tation. If  the  money  price  of  labour,  thereforf,  be  higher  than 
it  is  any  where  in  tlie  mother  country,  its  real  prjce,  the  real  QOtOr 
mandof  the  narefTaries  and  conycniepcies  of  life  whi^h  it  CQnvpys 
to  the  labourer,  muft  be  higher  in  a  ftill  greater  proportion. ,  .  ,  .;^^ 

But  though  NOrth  Americk  is  hot  yet  To  rich  as  England,  it  is 

.much  more  thriving,  and  advancing  with  much  gi^eater  rafMdity  to 

the  further  acquifitipn  of  riches.    The  mdft  dccifive  mark  of  the 

profperity  of  any  country  is  the  inicreaie  of  the  number  of  its 

inhabitants.    In  -Great  Britain  and  moft  other  EOi*opean  countries 

they  are  not  fuppofed  to  double  in  left  thaft  five  hundred  yeara. 

In  the  Briti(h  colonies  in  North  America,  it  has  been  found,  that 

they  double  in  twenty  or  five  and  twenty  years.     Nor  in  the 

prefent  times  is  this  increafe  principally  owing  to  the  continual 

importation  of  iiew  mhabitants,  but  to  the  great  middpKeation  of 

the  fpecies.    TtioTe  v^o  live  to  old  age,  it  is  faid,-  frequently  fee 

there  from  fifty  to  a  hundred,  and  fometimes  many  more,  deftend*- 

ants  from  their  own  body.    Labour  is  there  fi>  well  re<^arded  that 

a  numerous  family  <tf  children,  inftead  of  bang  'a  burthen,  is  a 

iburce  of  opulence  and  profperity  to  the  parents.    The  labour  of 

each  child,  before  it  can  leave  thdr  hou&,  is  computed  to  be  worth 

a  hundred  pounds  clear  gain  to  them .    A  young  widow  with  four  at 

five  young  children,  who,  among  the  middling  or  infbrior  ranks  df 

people  in  Europe,  would  have  fo  little  chance  for  a  iecond  hufbond, 

is  there  frequently  courted  as  a  fort  of  fortune;     The  value  df 

>. children  is  the  greateflof  all  encouragements  to  marriage.    We 

cannot,,  therefore,  wondbr  that  the  people  uiNorth-  America  fhoidd 

generally  marry  very  young.     Notwithfianding  the  gieat  increafe 

i  occafioned  by  fuch  early  marriages,  there  is  a  continuah  complaint 

i  of  the  fcarcity  of  hands  in  North  America.    The  demand  for 

/^bourers,  the  funds  deftined  for  maintaining  them,  increafe,.  it 

feems,  ftill  fafhr  than  they  can  find  labourers  to  empldy-. 

'*'•  TirouoH 


..f^ 


THE    WEALTH    OF    NATIONS. 


\ni 


Though  the  wealth  of  a  country  fliould  be  very  great,  yet  ^{^jfi|** 
if  it  has  been  long  ftationary,   we  muft  not  expert  to  find  the 
wages  of  labour  very  high  in  it.    The  funds  deftined  for  the  pay- 
ment of  wages,  the  revenue  and  ftock  of  its  inhabitants,  may  be 
of  the  g|%atefl  extent,  but  if  they  have  continued  for  feveral  cen- 
turies of  the  fame,  or  very  nearly  of  the  fame  extent,  the  number  of 
labourers  employed  every  year  could  eafily  fupply,  and  even-  more 
than  fupply>  ^e  number  wanted  the  following  year.     There  could, 
ffildom  beany  fcarcity  of  hands,  nor  could  the  mafters  be  obligedl 
to  bid  againfk  one  another  in  order  to-  get  thenr.     The  hands,  on- 
the  contrary,  would,  in  this  cafe,  naturally  multiply  beyond  their 
employment.    There  would  be  a  conftant  fcarcity  of  employment^ 
and  the  labourers  would  be  obliged  to  bid  againfl.  one  another  in: 
order  to  get  it.    If  in  fuch  a  country  the  wages  of  labour  had  ever 
been  more  than  fufficient  to  maintain  the  labourer  and  to  enable  him^ 
to  bring  up  a  family,  the  competition  of  the  labourers  and  the 
intereft  of  the  mafters  would  foon  reduce  them  to  this  loweft  rate 
which  is  confiftent  with  common  humanly.     China,  has  been  long; 
one  of  the  richefl,  that  is,  one  of  the  moft  fertile,  beft  cultivated,, 
moft  induftrious  and  mofVpopulous  countries  in  the  world.  It  feems,. 
however,  to  have. been  long  ftationary.     Marco  Polo,  who  vifited  it 
more  than  five  hundred  years  ago,  defcribes  its  cultivation,  induftry 
and  populoufnefs  almoft  in  the  fame  terms  in  which  they  are  de- 
finibed  by  travellers  in  the  prefent  times.     It  had  perhaps  even  long; 
before  his  time  acquired  that  full  complement,  of  liches  which  the 
nature  of  its  laws  and  inftitutions  permits  it  ta  acquire;     The^ 
accounts  of  all  travellers,  inconfiftent  in  many,  other  refpeds,  agree : 
in  the  low  wag?s  of  labour,  and  in  the  difficiJty  which  a  labourer 
finds  in  bringing  up  a  family  in  China.   If  by  diggingthe  ground  ai 
whole  day  he  can  get  what  will  purchafe  a  fmall  quantity  of  rice  in: 
the  evening,  he  is  contented.     The  condition  of  artificers  is,  if 
BofSble,  ftill  worfe.    Inftead  of  waiting  indolently  in  their  work- 

houfes,. 


88 


THE    NATURE    AND    CAUSES    OF 


BOOK  hpules,  for  the  calb  df  their  euftomera,  as  in  Europe,  they  are 
continually  running  about  the  ftrects  with  the  tods  ef  thnr 
refpedtive  trades*  <^ring  their  fervice,  and  as  it  were  ^begging 
employment.  The  poverty  of  the  lower  ranks  of  people  in  China 
far  fui-pafles  that  of  the  moft  beggarly  nations  in  Europe,  th  the 
neighbourhood  of  Canton  many  hundred,  it  is  comm^MiIy  Aid, 
many  thoufand  families  have  no  habitation  on  the  land,  4)ut  live 
conftantly  in  little  fifhing  boats  upon  the  rivers  and  canals.  The 
fubfiftence  which  they  find  there  is  fo  fcanty  that  they  are  eager 
to  fiHi  up  the  naftieft  garbage  thrown  overboard  from  any  European 
ftiip.  Any  carrion,  the  carcafe  of  a  dead  dog  or  cat,  for  example, 
though  half  putrid  and  (linking,  is  as  welcome  to  them  as  the 
moft  wholelbme  food  to  the  people  of  other  countries.  Marriage 
is  encouraged  in  China,  not  by  the  profitableness  of  children,  but 
by  the  liberty  of  deflroying  them.  In  all  great  towns  feveral  are 
every  night  expofed  in  the  ftreet  or  drowned  like  puppies  in  the 
water.  The  performance  of  this  horrid  office  is  even  faid  to  be  the 
avowed  bufinefs  by  which  fbme  people  earn  their  fubfiftence. 

China,  however,  though  it  may  perhaps  ftand  ftill,  does  not 
feem  to  go  backwards.  Its  towns  are  nowhere  deferted  by  their 
inhabitants.  The  lands  which  had  once  been  cultivated  are  no- 
where negleded.  The  fame  or  very  nearly  the  fame  annual  labour 
muft  therefore  continue  to  be  performed,  and  the  funds  deftined 
for  maintaining  it  muft  not,  confequently,  be  fenfibly  diminifhed. 
The  loweft  clafs  of  labourers,  therefore,  notwithftanding  their 
fcanty  fubfiftence,  muft  fome  way  or  another  make  fhift  to  continue 
their  race  fo  far  as  to  keep  up  their  ufual  numbers. 


But  it  Would  be  otherwife  in  a  country  where  the  funds  deftined 
for  the  maintenance  of  labour  were  fenfibly  decaying.  Every  year 
the  demand  for  fervants  and  labourers  would,  in  all  the  different 

clafles 


THE    WEALTH    OF    NATIONS.  •! 

clafTes  of  employments,  be  lefs  than  it  had  bom  the  yearbtfore.  ^^^f[^' 
Many  who  had  been  bred  in  the  fuperior  clafles,  not  being  able  to 
find  employment  in  their  own  bufinefs,  would  be  glad  to  feek  it  in  the 
loweft.  The  loweft  daft  being  not  only  overftofked  with  its  own 
workmen,  but  with  the  overflowings  of  all  the  other  daiTes,  the 
competition  for  employment  would  be  fo  great  in  it,  as  to  reduce 
the  wages  of  labour  to  the  moft  miferable  and  fcanty  fubfiftence  of 
the  labourer.  Many  would  not  be  able  to  find  employment  even 
upon  thefe  hard  terms,  but  would  either  ftarve,  or  be  driven  to 
feek  a  fubfiftence  either  by  begging,  or  by  the  perpetration  perhaps 
of  the  greateft  enormities.  Want,  famine,  and  mortality  would 
immediately  prevail  in  that  clafs,  and  from  thence  extend  themfelves 
to  all  the  fuperior  clafles,  till  the  number  of  inhabitants  in  the 
country  was  reduced  to  what  could  eafily  be  maintained  by  the . 
revenue  and  ftock  which  remained  in  it,  and  which  had  efcaped 
either  the  tyranny  or  calamity  which  had  deftroyed  the  reft.  This 
perhaps  is  nearly  the  prefent  ftate  of  Bengal,  and  of  fome  other  of 
the  Englifh  fettlements  in  the  Eaft  Indies.  In  a  fertile  country 
which  had  before  been  much  depopulated,  where  fubfiftence,  con- 
fcquently,  fhould  not  be  very  difficult,  and  where,  notwithftanding, 
three  or  four  hundred  thoufand  people  die  of  hunger  in  one  year,  we 
may  be  afiured  that  ti\e  funds  deftined  for  the  maintenance  of  the 
labouring  poor  are  faft  decaying.  The  difference,  between  the 
genius  of  the  Britifli  conftitution  which  prote£ts  and  governs 
North  America,  and  that  of  the  mercantile  company  which  oppreflcs 
and  domineers  in  the  £c*.ft  Indies,  cannot  perhaps  be  better  illuf- 
tiated  than  by  the  difierent  ftate  of  thofe  countries. 

The  liberal  reward  of  labour,  therefore,  as  it  is  the  necefliary 
effcft,  fo  it  is  the  natural  fymptom  of  increafing  national  wealth. 
The  fcanty  mamtenance  of  the  labouring  poor,  on  the  other  hand, 
is  the  natural  fymptom  that  things  are  at  a  ftand,  and  their  ftar- 
ving  condition  that  they  arc  going  faft  backwards. 

Vol.  I,  N  In 


9<5 


The  nature  and  causes  of 


I. 


B  o.o  K  In  Great  Britain  thb  wages  of  labour  fcem.  in  ihe  prelenk  tiiMi^ 
to  be  e>^ently  more  than  what  is  preeifely  neoeilarjr  to  enable  the 
labourer  to  bring  up  a  family.  In  order  to  fatisfy  ourfelves  upon 
this  point  it  will  not  be  neceflary  to  enter  into  sihy  ceHious  or 
doubtful  calculation  of  what  may  be  the  loweft  fum  upoi.  vhich 
it  is  poflible  to  do  this.  There  are  many  plain  fymptoms  that  the 
wages  of  labour  are  nowhere  in  this  country  regulated  by  this 
loweft  rate  which  is  confident  with  common  humanity. 

First,  in  almoft  every  pait  of  Great  Britain  there  is  a  dif- 
tin£tion,  even  in  the  loweft  ipecies  of  labour,  between  fummer 
and  winter  wages.  Summer  wages  are  always  hjgheft.  But  on 
account  of  the  extraordinary  expence  of  fewel,  the  maintenance  of 
a  family  is  moft  expenfive  in  winter.  Wages,  therefore,  being 
higheft  when  this  expence  is  lowieft,  it  feems  evident  that  they  are 
not  regulated  by  what  is  necefliuy  for  this  expencci  but  I^y  the  quan- 
tity and  fuppofed  value  of  the  work.  A  labourer,  i^  may  be  faid 
indeed,  ought  to  fave  part  of  his  fiimmer  wag^  ^  order  to  defray 
his  winter  expence ;  and  that  through  the  w)^ole  ye^  they  do  not 
exceed  what  is  neceflary  to  maintain  his  family  thi^ough  the  whole 
year.  A  flave,  however,  or  one  abfolutely  dependent  on  lis  for 
immediate  fubfiftence,  would  not  be  treated  in  this  manner.  His 
daily  fubfiftence  would  be  proportioned  to  his  daily  necefllties. 

Secondly,  the  wages  of  labour  do  not  in  Great  Britain  fluc- 
tuate with  the  price  of  provifions.  Thefe  vary  everywhere  from 
year  to  year,  frequently  from  month  to  month.  But  in  many 
places  the  monisy  price  of  'labour  remains  uniformly  the  fame 
fometimes  for  half  a  century  together.  If  in  thefe  plaices,  there- 
fore, the  labouring  poor  can  maintain  thsir  families  in  dear  years, 
they  muft  be  at  their  eafe  in  times  of  moderate  plenty,  and  ..in 
aflluence  in  thofe  of  extraordinary  cheapnefs.  The  high  price  of 
provifions  during  thefe  ten  yeais  paft  has  not  in  many  parts  of  the 
.  kingdom 


THE    WEALTH    OP    NATIONS. 


9' 


kingdom  been  accompenied  with  any  Tenfible  rife  in  the  money  ^^.A  ^* 
price  of  labour.    It  has,  indeed,  in  ibme  >  owing  probably  more 
to  the  increafe  of  the  demand  for  labour  than  to  that  of  the  price 
of  pronfionti. 

THiRDLVr  as  the  price  of  provifions  varies  more  from  year  to 
year  than  the  wages  of  labour,  fo,  on  the  other  hand,  the  wages 
of  labour  vary  more  from  place  to  place  than  the  price  of  pro- 
vifions. Tlic  prices  of  bread  and  butcher's  meat  are  generally 
the  fame  or  very  nearly  the  (ame  through  the  greater  part  of  the 
united  kingdom.  Thefe  and  moft  other  things  which  are  fold 
by  retail,  the  way  in  which  the  labouring  poor  buy  all  things,  are 
generally  fully  as  cheap  or  cheaper  in  great  towns  than  in  the 
remoter  parts  of  the  country,  for  reafohs  which  I  (hall  have  oc- 
cafion  to  explain  hereafter.  But  the  wages  of  labour  in  a  great 
town  and  its  neighbourhood  are  frequently  a  fourth  or  a  fifth  part, 
twenty  or  five  and  twenty  per  cent  higher  than  at  i  few  miles 
diftance.  Eighteen  pence  a  day  may  be  reckoned  the  common 
price  of  labour  in  London  and  its  neighbourhood.  At  a  few  miles 
diAance  it  falls  to  fourteen  and  fifteen  pence.  Ten-pence  may 
be  reckoned  its  price  in  Edinburgh  and  its  ndghbourhood.  At 
a  few  miles  diiVance  it  falls  to  eight  pence,  the  ufual  price  of  com- 
mon labour  through  the  greater  part  of  tKe  low  country  of  Scot- 
land, where  it  varies  a  good  deal  lefs  than  in  England.  Such  a 
difference  of  prices,  which  it  feems  is  not  always  .fuflicient  to 
tranfport  a  man  from  one  pari(h  to  another,  would  neceffarily  oc- 
cafion  fo  great  a  iranfportation  of  the  moil  bulky  commodities, 
not  only  fiom  one  pari(h  to  another,  but  from  one  end  of  the 
kingdom,  almoft  from  one  end  of  the  world  to  the  other,  as  would 
foon  reduce  them  more  nearly  to  a  level.  After  all  that  has  been 
faid  of  the  levity  and  inconftancy  of  human  nature,  it  appears  evi- 
dently from  experience  that  a  man  is  of  all  forts  of  luggage  the  moft 

N  2  difficult 


M 


9a 


THE.   NiA/TJBJREi   AND    CAUSES    OF 


fi  o^O  K  diffictilt  to  be  tranfpdrtKl.  U  the;  labouring  poori  rtherelQrQ«  can 
maintain -their  families  intbofc  parts  of  the  kingdom  whef«  the  price 
of  labour  is  loweft,  they  muft  be  in  affluence  where  it  is  highelL 

FoitrthlV,  the  variatibns  in  the  price  of  labour  not  only, 
do  not  correfpond  either  in  place  or  time  vnth  thofc  in  the  price 
of  provifions;  but  thejr  are  frequently  quite  c^pofite^    '».oa*;i 

Grain,  the  food  of  the  comihoh  peopte,  Ti dearer  in  Scotland* 

■■.Ml  ■.■■■■/■  i  ■     '   ■"    "  '  -J  ■-.■■-  t  ( 

than  in  England,  whence  Scotland  receives  armbfl  <^vei'y  year  very 
large  fupplies.  But  Engliih  corn  muft  be  fold  dearer  in  Scotland,  the 
country  to  which  it  is  brought,  than  in  England,  the  country  from 
which  it  cofx^s;  jqid  in  propprt)|on  tp  its  ,quaUt^  It  cannot  be  fold; 
dearer  in.  Scotland) ,  t^  th?  Scotch  cop,  tliat^  comes  to  the  fame 
market  in  competition  with  it..  The  quality  of  grain  depends  chiefly 
upon  the  quantity  of  flour  or  meal  which  it  yielc^s  at  tHemill,.  andt 
in  this  refpe^  Eng^(hg}'(^n  if  fo  much  fu^ierior  to  the  Scotch  that,, 
though  often  dearer  in  appearance,,  or  in,p^rppo|tion  to. the  mea-r 
fure  of  its  bulk,  it  is  generally  cheaper  in  reality  or.  in  proportion: 
to  its  quality,  or  even,  to  the  meafure  of  its  weight..  The  pricet 
of  labour^  on  the  contrary,  is  dearer  ia  England  than  in.  Scotland. . 
If  the  labouring,  poor,  therefore,  can  maintain  t;heir  families  in^ 
the  one  part  of  the  united  kingdom,  they  muil.  be  in  affluence 
in  the  other.  Oatmeal  indeed  fupplies  the.  common  people  icii 
Scotland  with  the  greateft.  and. the  beft.part  of  their  food>  which: 
is  in  general  much  inferior  to  that  of  their  neighbours  of  the 
fame  rank  in  England,  This  difference,,  however,  in  the  mode, 
of  their  fubfiftence  is  not  the  caufe,  but  the  effei£t  of  the.  difference 
in  their  wages ;  though,  by  a  ftrange  mifapprehenficn,  I  have  fre-. 
quently  heard  it  reprefented  as  the  caufe.  It  is  not.becaufe  one 
pian  keeps  a  coach  while  his  neighbour  walks  arfoot,  that  the 

.      .  4        *  «»°« 


THE    WEALTH    OF    NATIONS. 


9^ 


oWir  i#'i4ch-»id^'th*  other  poor/ i  tut  bdeaufer  the  x>iie  19  rich  he  ^J^j^j^* 
keeps  ft  ^oach,  and  becaafe  th«  other  is  poor  he  walla  a-^foot. 

DvRiNG  the  courfe  of  the  la(V  century,  taking  one  year  wth 
another,  grain  was  dearer  in  both  parts  of  the  united  kingdom 
than  during  that  of  the  prefent.  This  is  a  matter  of  fa6t  which 
cannot  now  admit  of  any  reafonable^  doubt ;  and  the  proof  of- 
it  is,  if  poffible,  ftill  more  decifnre  with  regard  to  Scotland  than 
with  regard  to  England.  It'  is  in  Scotland  fupported  by  the  evi- 
dence of  the  publick  fiars,  annual  valuations  made  upon  oath, 
according  to  the  a£tual  ftate  of  the  markets,  of  all  the  different 
forts  of  grain  in  every  different  county  of.  Scotland.  If  fuch 
direft^  proof  could  require  any  collateral  evidence  to  confirm  it^ 
I  would  obferve  that  thi^  has  likewife  been  the  cafe  in  France,  and 
probably  in  moft  other  parts  of  Europe;  With  regard  to  France 
there  is  the  cleared;  proof.  But  though  it  is  certain  that  in  both 
parts  of  the  united  kingdom  grain  was  fomewhat  dearer  in  the  laft 
century  than  in  the  prefent,  it  is  equally  certain  that  labour  wasr 
much  cheapen  If  the  labouring' poor,  therefore,  could  bring  up 
their  families  theni  they  muft  be  much  more  at  their  eafe  now. 
In  the  laft  century,  the  moft  ufoal  day*wages  of  common  labou;r 
through  the  greater  part- of  Scotland  were  fixpence  infummer 
and  five-pence  in  winter.  Three  (hillings  a  week,  the  fame  pric& 
very  nearlyi  ftill 'continues  to  be  paid  in  fome  parts  of  the  High* 
lands  and  weftern  Iflands.  Through  the  greater  part  of  the  low 
country  the  moft  ufual  wages  of -common  labour  are  now  eight- 
pence  a  day  j  ten-pence,  fometimes  a  (hilling  about  Edinburgh,  in 
the  counties-  which  border  upon  England,  probably  on  account. 
of'  that  neighbourhood,  and  in  •  a  few  other  places  where  there 
has  lately  been  a  confiderable  rife  in  the  demand  for  labour,  about 
Glafgow,  Carron,  Ayr-(hire,  &c.  In  England  the  improvements 
of.  agriculture,  manufactures  andcommeixe  began  much  earlier 

than. 


94 


THE    NATURE    AND    CAUSES    OF 


I 


B  O  O  K  than  in  Scotland.  The  demand  for  labour,  and  confequently  its  price, 
muftneceflariiy  have  increafed  with  thofe  improvements.  Inthelaft 
century,  accordingly,  as  virell  as  in  the  prefent,  the  wages  of  labour 
were  higher  in  England  than  in  Scotland.  They  have  ri&n  too 
conftderably  fince  that  time,  thoitigh  oh  account  of  the  greater 
variety  of  wages  paid  there  in  different  places,  it  is  more  difficult 
to  afcertain  how  much.  In  1614,  the  pay  of  a  foot  (bldier  was 
the  fame  as  in  the  prefent  times,  eight  pence  a  day.  When  it 
was  firft  eftabliihed  it  would  naturally  be  regulated  by  the  ufual 
wages  of  common  labourers,  the  rank  of  people  from  which  foot 
foldiers  are  commonly  drawn.  Lord  Chief  Juflice  Hales,  who 
wrote  in  the  time  of  Charles  II.  computes  the  nectlTary  expence 
of  a  labourer's  family,  confining  of  &x  peribns*  the  father  and 
mother,  two  children  able  to  do  fomething^  and  two  not  able,  at 
ten  (hillings  a  week,  or  twenty-fix  pounds  a  year.  If  they  can- 
not earn  this  by  their  labour,  they  mufl  make  it  up,  he  fuppofes« 
either  by  begging  or  flealing.  He  appears  to  have  enquired  very 
carefully  into  this  fubje^l.  In  1688,  Mr.  Gregory  King,  whofe 
fkill  in  political  arithmetick  is  fo  much  extblled  by  Doctor  Dave- 
nant,  computed  the  ordinary  income  of  labourers  and  out-fervants 
to  be  fifteen  pounds  a  year  to  a  family,  which  he  fuppofed  to- 
confifl,  one  with  another,  of  three  and  a  half  perfons.  His  cal- 
culation, therefore,  though  different  in  appearance,  correfponds 
very  nearly  at  bottom  with  that  of  judge  Hales.  Both  fuppofe 
the  weekly  expence  of  fuch  families  to  be  about  twenty-pence  a 
head.  Both  the  pecuniary  income  and  expence  of  fuch  families 
have  increafed  confiderably  fince  that  time  through  the  greater 
part  of  the  kingdom;  in  fome  places  more,  and  in  (bme  lefsj 
tliough  perhaps  fcarce  any  where  Co  much  as  fome  exaggerated 
accounts  of  the  prefent  wages  of  labour  haye  lately  reprafented 
them  to  the  publick.  The  price  of  labour,  it  muft  be  obferved, 
cannot  be  afcertained  very  accurately  anywhere,  difl^ent  prices 
•  ^     '  being 


THE    WEALTH    OF    NATIONS. 


95 


being  often  p  at  the  fame  pla(;ejui4  for  the  Tame  fort  of  labour,  ^^  A  P. 
not  only  aco  oing.to  the  different  atnUties  of  the  workmen,  but 
according  to  the  eafinefi  or  hardnefs  of  the  mafters.  Where 
wages  are  not  r^ulated  bylaw,  aU  tha^  we  can  pretend  to  deter- 
mine is  what  are  the  moil  ufuali  and  experience  feems  to  (how 
that  law  can  never  r^gv^lat^  tiffin  prop^ly,  though  it  has  often 
pretended  to  do  fo.  ,  ^jcj  sHi  ,   y..    ..\       ;, 

The  real  recompence  of  la\>our,  the  real  quantity  of  the  ne* 
ceflaries  and  conveniencies  of  life  wluch  it  can  procure  to  th& 
labourer,  has,  during  the  courfe  of  the  prefent  century,  increafed 
perhaps  in  a  ftill  greater  proportion  than  its  nooney  price.  Not 
only  grain  has  become  fomewhat  cheaper,  but  many  other  things 
from  which  the  induftrious  poor  derive  an  agreeable  and  whole- 
ibme  variety'  of  food,  have  become  a  great  deal  cheaper.  Potatoes^, 
for  example,  do  not  at  prefent,  through  the  greater  part  of  the 
kingdom,  cofl  half  the  price  which  they  ufed  to  do  thirty  or 
forty  years  ago.  The  fame  thing  may  be  faid  of  turnips,  carrots,, 
cabbages;  things  which  were  formerly  never  railed  but  by  the 
^de,  but  which  are  now  commonly  ralfed  by  the  plough.  All 
ibrt  of  garden  ftuif  too  has  become  cheaper.  The  greater  part 
of  the  apples  and  even  of  the  onions  confumed  in  Great  Britain, 
were  in  the  laft  century  imported  from  Flanders.  The  great  im- 
provements in  the  coarfer  n^anufaflures  of  both  linen  and  woollen 
ctoth  fumilh  the  labourers  with  cheaper  and  better  cloathingj 
and  thole  in  the  manufa£lures  of  the  coarfer  metals,  with  cheaper 
and  better  inftruments  of  trade,  as  well  as  with  many  agreeable 
and  convenient  pieces  of  houfehold  furniture.  Soap,  fait,  can- 
dles, leather,  and  fermented  liquors  have,  indeed^  become  a  good 
deal  dearer ;  chiefly  from  the  taxes  which  have  been  laid  upon 
them.  The  quantity  of  thefe  however  which  the  labouring 
poor  are  under  any  neceffity  of  confuming,  is  fo  veiy  finall  that 

7  ^  ^^ 


^  THE  NATURE  AND  CAUSES  OF 

^^9^^  the  mcnaie  m  thdu*  pike  does  not  compenfate  the  diminntioii  in 
V--^^-^  tluit  of  To  many  other  things.  The  common  complaint  that 
^ury  extends  itfelf  even  to  the  loweft  ranks  of  the  people,  and 
that  idle  labouring  poor  will  not  now  be  contented  with  the  fame 
fpQ4»  cloathjng  and  lodging  which  falisfied  them  in  former  times, 
may  convmce  us  that  it  is  not  the  money  price  of  labour  only, 
but  its  i:^  re^ompence  which  has  augmented. 

■  Is  this  improvement  in  the  circumftances  of  the  lower  ranks  of 
the  people  to  be  regarded  as  an  advantage  or  as  an  inconveniency 
to  the  ibcw«y  I  The  anfpirer  feems  at  firft  fight  abundantly  plain. 
Servants,  labourers  and  workmen  of  different  kinds,  make  up 
the  far  greater  part  of  every  great  political  fociety.  But  what 
improves  the  circumftances  of  the  greater  part  can  never  be  re- 
garded as  an  inconveniency  to  the  whole.  No  fociety  can  furely 
'be'  llourifhing  aild  happy,  of  which  the  far  greater  part  of  tht 
tnembefs  are  poor  and  miferable.  It  is  but  equity,  befides,  that 
<t^iey^  who  feed,  cloath  and  lodge  the  whole  body  of  the  people, 
ihould  hate  fuch  a  (hare  of  the  produce  of  their  own  labour  as 
to  be  themielves  tolerably  well  fed,  cloathed  and  lodged. 

Poverty,  though  it  no  doubt  difcourages,  docs  not  always 
jprevent  marriage.  It  ieems  even  to  be  favourable  to  generation. 
A  half  ftarved  Highland  woman  frequently  bears  more  than 
twenty  children,  while  a  pampered  fine  lady  is  often  incapable  of 
bearing  any,  and  is  generally  exhaufted  by  two  or  three.  Bar- 
lennefs,  fo  frequent  among  women  of  fafliion,  is  veiy  rare  among 
thofe  of  inferior  ftation.  Luxury  in  the  fair  fex,  while  it  enflames 
perhaps  the  paffion  for  enjoyment,  feems  always  to  weaken  and 
frequently  to  deftroy  altogether  the  powers  of  generation. 


^-.rvjt:. 


But 


THE    WEALTH    OF    NATIONS. 


$7 


.  But  poverty^  thouglr  it  doet  not  prevent  the  generadon,  is  ^^,/}^* 
extreamly  unfavourable  to  the  rearing  of  childfen.  The  tender 
plant  i»  produced,  but>iiv  fo  cold  a  foil  and  fo  f<^ere  a  climate,  fiioM 
witfaen  <and  dies.  It  is  not  uncommon,  I  have  been  frequently 
tokl,  in  the  Highlands^  of  Scotland  for  a  mother  who  has  borne 
twenty.  chUdren  not  to  have  two  aKve.  Several  officers  of  great 
experience  have  alTuredme  that  (b  far  from  recruiting  their  regi- 
ment, they  have  never  been  able  to  fupply  it  with  drums  and  fifes 
from  all  the  foldiers  children,  that  were  bom  in  it.  A  greater 
number  of  fine  children,  however,  is  feldom  feen  anywhere  than 
about  a.  barrack  of  foldiers.  Very  few  of  them^  it  feems,  arrive 
at  the.  age  of  tlurteen  or  fourteen.  In  fome  places  one  half  the 
chil^ien  thorn, die  before  they  are  four  years.  ()f  age j  in  many 
places  before  they  are  feven ;  and  in  almoft,aU  places  before  they 
are  nine  or  ten.  This  great  mortaUty,  however,  will  'wery  whent 
1^  found  chiefly  among  the  children  of  the  common  people,  who 
cannot  afford  to  tend  them  with  the  fame  care  as  thofe  of  better 
flation.  Thpuigb  their  marriages  are  generally  more  fruitful  than 
thofe  of  people  of  fafluon,  a  fmaller  proportion  of  their  children 
arrive  at  maturity.  In  foundling  hofpitals,  and  among  the  children 
brought  up  by  parifh  charities  the  mortality  is  flill  greater  than 
among  thofe  of  the  common  peopljc. 

Every  fpecies. of  animals  naturally  multiplies  in  proportion 
to  the  means  of  their  fubfiftence,  and  no  fpecies  can  evet*  mul- 
tiply beyond  it.  But  in  civilized  fociety  it  is  ortly  among^the 
inferior  ranks  of  people  that  the  fcantlnefs  of  fubfillence  can  fet 
limits  to  the  further  multiplication  of  the  human  fpecies ;  atid  it 
can  do  fo  in  no  other  way  than  by  deflroying  a  great  part  of  the 
children  which  their  fruitful  marriages  produce. 

•     The  liberal  reward  of  labour,  by  enabling  them  to  prowde  better 

for  their  children,  and  confequently  to  bring  up  a  greater  number. 

Vol.  I.  O  naturally 


t 


^« 


THE  NATURE  AND  CAUSES  OF 

iteturafly  tends  tb  widen  and  extend  thoh  Unuti.  It  dc&tves 
to 'be  remarked  t66t  that  it  neceflarily  does  this  as  nearly  as  poT- 
fibte  in  '^e  proportioii  which  thfc  demand  for  labour  reqoires. 
If  'dds  demand  is  continaally  increafing,  the  reward  of  labour 
muA  necefiarily  encourage  in  fuch  a  manner  the  marriage  and 
Xnuldplic^on  of  labourers,  as  mzy  enafble  them  to  fupply  that 
continndly  mtsreafing  demand  by  a  corrtinuaUy  inacafoig  |)opu- 
ladon.  If  it  (fliottld  at  any  time  be  lefs  than  what  was  requilite 
for  this  pucpofe,  the  deficiency  of  hands  would  foon  raife  it ; 
arid  if  it  (Kould  at  any  6me  be  more,  their  cxcefiive  muhaplicadDn 
would  feon  lower  it  to  thb  neceflary  rate.  The  madcet  would 
be  fb  -much  linderftodcod  with  labour  in  the  one  4M§e,  and  lb 
MU€h  ovcrftodcdd  in  the  other,  as  would  ibon  force  'baok  its  price 
to  that  proper  i<ate  which  the  circumfhmces  cf  the  ibciety  requiivd. 
Itfoin  this  manner  that  the  demand  for  men,  like  that  for  any 
other  commodity,  neceflfariiy  xtgulates  the  produdion  of  men; 
quickens  it  when  it  goes  on  too  flowly,  and  flops  it  when  it 
i^vtlntes  too  faft.  It  is  this  demand  which  regulates  and  deter- 
mines the  "ftate  of  propagation  in  all  the  different  countries  of 
the  world,  in  North  America^  in  Europe,  and  in  China  i  which 
renders  it  rapidly  progrelQive  in  the  firft>  flow  and  gradual  in  the 
fecond,  and  altogether  ftationary  in  thie  laft.  . 

.'icYierfi  tear  and  wear  of  a  flave,  it  has  been  faid,  is  at  theexpence 
of  l^s  mafter;  but  that  of  a  free  fervant  is  at  his  own  e^^pence. 
The  tear  and  weai*  of  the  latter,  however,  is,  in  reality,  as  much 
at  the  expence  of  his  mafter  as  that  of  the  former.  The  wages 
paid  to  journeymen  and  fervants  of  every  kind  muft  be  fuch  as 
may  enable  them,  one  with  another,  to  continue  the  race  of  journey- 
men and  fervants,  according  as  the  increafmg,  diminifhing,  or 
'ftationary  demand  of  die  fociety  may  happen  to  require.  But 
though  the  tear  and  wear  6f  a  fi»e  fervant  foe  ct(|ually  at  the  expence 

of 


THE    WEALTH     OF    NATIONS. 


99 


of  his  maft«r,  it  generally  cofts  him  much  left  than.  th«^t  of  a  9^.{!lP', 
flavc.  The  fund  deftii>«d  for  replacing  or  repainng,  if  I  may  f?iy 
fo,  the  tear  and  wear  of  the  flave,  is  commonly  managed  l^  f 
negligent  mafter  or  carelefs  overfeer.  That  deftined  foi:  performj 
ing  the  fame  office  with  regard  to  the  free  man>  is  managed  by  th^ 
fi-ee  man  himfelf.  The  diforders  which  generally  prevail  iiji  th^ 
Gcconomy  of  the  rich,  naturally  introduce  themfelves  into  the 
management  of  the  former :  The  ftridl  frugality  and  parflmonipy^ 
attention  of  the  poor  as  naturally  eftabliih  themfelves  in  tha^ 
of  the  latter.  Under  fuch  different  management,  the  fame  pur- 
pofe  muft  require  very  different  degrees  of  expence  to  execute  it. 
It  appears,  accordingly,  from  the  experience  of  all  ages  and  nsf 
tions,  I  believe,  that  the  work  done  by  freemen  comes  che;ip^ 
in  the  end  than  that  performed  by  (laves.  It  is  found  to  do  ij> 
even  at  Bofton,  New  York,  and  Philadelphia,  wh^re  the  wag^s 
of  common  labour  are  fo  very  high.  .  /u.b.«v.^  i-jrho 

The  liberal  reward  of  labour,  therefore,  as  it  is  the  ef&(9;,9f 
increafmg  wealth,  £b  it  is  the  cauie  of  increafing  population.  ,  7^0 
complain  of  it  is  to  lament  over  the  neceflary  efte£l  and  c^fe^ipf 
the  greateft  publick  prosperity.  .  . ; .  a .,  i 

It  deferves  to  be  remarked,  perhaps,  that  it  is  in  the  progreffive 
ftatej  while  the  iociety  is  advancing  to  the  further  acqw^on, 
rather  than  when  it  has  acquired  its  full  complement  of  riches,  that 
the  condition  of  tiie  labouring  poor,  of  the  great  body  of  the  ptqo- 
pie,  keam  to  be  the  happiell  and  the  mofk  comfortable.  Jt  ia  \kmd 
in  the  ftationuy,  and  nufcrable  in  the  decUnmg  ftate.  The^fip- 
greflive  ibte  is  4a  feality  the  •chearful  and  the  hearty  Q^at^  ^to^ll 
the  diffcorent  prd^s  of  ^  ^m^'    Th<:  i^ationany  is  dnUj  #e 

dcdiiniig*  «i«teocholy.  ,  ■^rrmmmnil 


O   2 


.^t 


The 


xoo 


THE     NATURE    AND    CAUSES    OF 


B  O  o  K  The  liberal  reward  of  labour,  as  it  encourages  the  propagation, 
fo  it  increafes  the  induflry  of  the  common  people.  The  wages  of 
labour  are  the  encouragement  of  ^nduftry,  which,  like  every  other 
human  quality,  improves  in  proportion  to  the  encouragement  it 
receives.  A  plentiful  fubfiftence  increafes  the  bodily  ftrengthof 
the  labourer,  and  the  comfortable  hope  of  bettering  his  condition, 
and  of  ending  his  days  perhaps  in  eafe  and  plenty>  animates  him  to 
exert  that  fli-ength  to  the  utmoft.  Where  wages  are  high,  ac- 
cordingly, we  (hall  always  find  the  workmen  more  a£Vive,  diligent, 
and  expeditious,  than  where  they  are'  low;  in  England,  for  ex.- 
ample,  than  in  Scotland;  in  the  neighbourhood  of  great  townsy 
than  in  remote  country  places.  Some  workmen.  Indeed,  when 
they  can  earn  in  four  days  what  will  maintain  them  through  the 
week,  will  be  idle  the  other  three.  This,  however,  is  by  no 
means  the  cafe  with  the  greater  part.  Workmen,  on  the  contrary, 
when  they  are  liberally  paid  by  the  piece,  are  very  apt  to  over-work 
themfelves,  and  to  ruin  their  health  and  conftitution  in  a  few 
years.  A  carpenter  in  London,  and  in  fome  other  places,  is  not 
fuppofed  to  laft  in  his  utmoft  vigour  above  eight  years.  Some- 
thing of  the  fame  kind  happens  in  many  other  trades,  in  which  the 
workmen  are  paid  by  the  piece;  as  they  generally  are  in  manu- 
factures, and  even  in  country  labour,  wherever  wages  are  higher 
than  ordinary.  Almoft  every  clafs  of  artificers  is  fubjeCl  to  (bme 
peculiar  infirmity  occafioned  by  exceffive  application  to  their  pe- 
culiar fpecies  of  work.  Ramuzxini,  an  eminent  Italian  phyfician, 
has  written  a  particular  book  concerning  fuch  difeafes.  We  do  not 
reckon  our  fbldiers  the  moft  induftrious  fet  of  people  among  us. 
Yet  when  foldiers  have  been  employed  in  (bme  particular  (brts  of 
work,  and  liberally  pdd  by  the  piece,  their  officers  have  frequently 
been  obliged  to  ftipulate  mth  the  undertaker,  that  they  (hould  not 
be  allowed  to  earn  above  a  certsun  fum  every  day,  aecor^g  to  the 
rate  at  which  they  were  paid.  Till  this  (lipulation  was  made, 
4  mutual 


THE    WEALTH    OF    NATIONS, 


«PI 


mutual  emulation  and  the  defire  of  greater  gain,  frequently  prompt- 
ed them  to  over- work  themi'elves,  and  to  hurt  their  health  bj 
excefiive  labour.  Exceflive  application  during  four  days  of  the 
week,  18  frequently  the  real  caufp  of  the  idlenefs  of  ^e  other 
three.  To  much  and  fo  loudly  complained  of.  Great  labour,  either 
of  mind  or  body,  continued  for  feveral  days  together,  is  inmoft 
men  naturally  followed  by  a  great  defire  of  relaxation,,  which,  if 
not  retrained  by.  force  or  by  feme  ftrong  neceflity,  is  almodft  ir- 
refiftable.  It  is  the  call  of  nature,  which  requires  to  be  relieved  by 
fome  indulgence,  fometimes  of  eafe  only,  but  fometinies  tod  of 
diflipation  and  diverfton.  If  it  is  not  complied  with^  the  oonfe* 
quences  are  often  dangerous,  and  fometimes  fatal,,  and  fuch  as 
almoft  always,  fooner  or  later,  bring  on  the  peculiar  infirmity  of 
the  tradie.  If  mailers  would  always  lilten  to  the>  dictates  of  reafon 
and  humanity,  they  have  frequently  occafion  rather  to  moderate, 
than  to  animate  the  application  of  many  of  their  workmen.  It  will 
be  found,  I  believe,  in  every  fort  of  trade,  that  the  man  who  works 
fb  moderately,  as  to  be  able  to  work  conftantly,  not  only  preferves 
his  health  the  longeil,  but>  in  the  courfe  of  the  year,  exec,i,^tes  the 
greateft  quantity  of  work..  .-.lo  ^rjiu. 


vni. 


In  cheap  years,  it  'is  pretended,  workmen  are  generally ,  mor« 
idle,  and  in  dear  ones  more  induftrious  than  ordinary,  >  A  plenr 
tiful  fubfiftenee,  therefore,  it  has  been  concluded,  rdUxes,  and  a 
fcanty  one  quickens  their  induftry.  That  a  little  more  plenty 
than  ordinary  may  render  fome  workmen  idle».  cannot  well  be 
doubted^  but  that  it  (hould  have  this  effect  upon  the  greater  part, 
or  that  men  in  general  (hould  work  better  when,  they  are  ill  fed 
than  when  they  are  well  fed,,  when  they/are  difheartened  than  v^rhen 
they  are  in  good  fpirits,  when  they  are  frequently  fick  than  when 
they  are  generally  in  gpod  health,  feems  not  very  probable.  Years 
of  dearth,  it  is  to  be  obferved,  are  generally  among  the  common 

^,  people 


loi 


tHE    KAfORE    AND    CAUSES    OP 


^  ^P  ^   people  years  of  fickntft  tftd  mortality,  which  cannot  fail  to  diiiii« 
^   niili  the  product  6f  their  indulb  y. 

!m  yedrs  of  plenty ,  fehrants  frequently  leave  their  maA«rs,  and 
truft  their  fubfiftence  to  what  they  can  make  by  their  own  induftry. 
But  the  famecheaphefs  of  provifions,  by  increafing  tlie  fund  which 
is  deftinid  for  the  tnaintenanct  of  fervants,  encourages  maften, 
farmer^  e(peciiilly,  to  employ  a  greater  number.  Farmers  upon 
fuch  occafions  expeA  more  profit  from  their  com  by  maintaining 
a  ftvf  more  labourin|;  fefvants,  than  by  felling  it  at  a  low  price  in 
the!  mai'ket.  The  demand  for  fervants  increafes,  while  the  number 
of  thofe  who  otkt  to  fupply  that  demand  diminifhes.  The  price 
of  labour,  therefore,  frequently  rifes  in  cheap  years. 


\u  yiiLti  of  fcarcity,  the  difficulty  and'uncertainty  of  fubfiftence 
iti^ke  all  fuch  people  eager  to  return  to  fei-vice.  But  the  high  price  of 
provifions,  by  diminifliing  the  funds  deftined  for  the  maintenance 
of  fervants,  difpofes  maflers  rather  to  diminifh  than  to  increafe  the 
number  of  thofb  they  have.  In  dear  years  too,  poor  independant 
workmen  frequently  confume  the  little  flocks  with  which  they  had 
ufed  to  fupply  themfelves  with  the  materials  of  their  work,  and  are 
obliged  to  become  journeymen  for  fubfiftence.  More  people  want 
-employment  than  can  eafily  get  itj  many  are  willing  to  take  it 
u]p6h  Idwer  terms  than  ordinary^  and  the  wages  of  both  fervants 
iM  journeymen  frequently  fink  in  dear  years. 


Mast  EH  s  of  all  foils,  therefore,  frequently  make  better  bar- 
jg^iiis  With  their  fervants  in  ilear  than  in  cheap  years,  and  find 
t1i6ih  mote  Immble  and  dependant  in  the  former  thaninthelattO'. 
They  naturally,  therefore,  commend  ^e  former  as  more  favomvble 
to  induflry.  Landlords  and  farmers,  befides,  two  of  the  larg«ft 
clafTcs  of  mafters,  have  another  reafon  for  being  pleafed  with  dear 
7  y^n. 


THE    WEALTH    OF    NATIONS. 


103 


years.  The  rents  of  the  one  and  the  profits  of  the  other  depend  C  H  A  P. 
very  much  upon  the  price  of  provifions.  Nothing  can  be  more 
abfurd,  however,  than  to  imagine  that  men  in  general  (hould 
work  lefs  when  they  work  for  themfelves,  than  when  they  work, 
for  other  people.  A  poor  independant  workman  will  generally 
be  more  induftrious  than  even  a  joumeym^  who  works  by  the 
piece.  The  one  enjoys  the  whole  produce  of  his  own  induftry ;  tlic 
other  (hares  it  with  bis  naafter.  The  one,  in  l>is  ieparate,  inde- 
pendant jftate,  is  lels  liable  to  the  temptations  of  bad  company, 
which  in  large  manufa£tories  fo  frequently  ruin  the  morals  of  the 
other.  The  fuperiority  of  the  independant  workman  over  thofc 
iervants  who  are  hired  by  the  mooth  or  by  the  year,  and  whofe 
wages  and  nuuntenance  are  the  fame  wliethe^*  they  do  much  or 
do  little,  is  likely  to  be  ftiU  greater.  Cheap  years  tend  to  increafe 
the  propoition  of  independant  workmen  to  journeymen  and  fer- 
vants  of  all  kinds,  and  dear  years  to  diminifh  it. 

A  French  author  of  great  knowledge  and  ingenuity,  Mr. 
Meflanee,  receiver  of  the  taitles  in  the  eledion  of  St.  Etienne, 
endeavours  to  fhow  that  the. poor  do  more  work  in  cheap  than  in 
dear  years,  by  comparing  tlie  quantity  and  value  of  the  goods  made 
upon  thofe  different  occafions  in  three  dtffeient  manufactures;  one 
of  coarfe  woollens  carried  on  at  Elbeuf  j  one  of  linen,  and  another  of 
filk,  both  which  extend  through  the  whole  generality  of  Rouen. 
It  appears  from  his  account,  which  is  copied  fiom  the  regiflers  of 
the  publick  offices,  that  the  quantity  and  value  of  the  goods 
made  in  all  thofe  three  manufadures  has  generally  been  greater 
in  cheap  than  in  dear  years;  and  that  it  has  always  been  greatell 
in  the  dieapeft,  and  leaft  in  the  deareft  years..  All  the  three  feen^ 
to  be  ftationary  manu£a6lures,  or  which,  though  their  produce 
may  vary  fomewhat  from  year  to  year„  are  upon  the  whole  nei- 
ther going  backwards  nor  forwards..  '< 

.i 

Tmt 


\ 


104 


THE    NATURE    AND    CAUSES    OP 


/ 


BOOK 
I. 


Thb  manufa^re  of  linen  in  Scotland,  and  that  of  coarfe  wool* 
lens  in  the  weft  riding  of  York(hire,  are  growing  manufaflurei, 
of  which  the  produce  is  generally,  though  with  fome  variations, 
increafing  hoth  in  quantity  and  value.  Upon  examining,  how- 
ever, the  accounts  which  have  been  publi(hed  of  their  annual  pro- 
duce, I  have  not  been  able  to  obferve  that  its  variations  have  had 
any  fcnflble  conneftion  with  the  deamefs  or  cheapnefs  of  the  fea- 
fons.  In  1740,  a  year  of  great  fcarcity,  both  manufadures,  in- 
deed, appear  to  have  declined  very  confiderably.  But  in  1756, 
another  year  of  great  fcarcity,  the  Scotch  manufadlure  made  more 
than  ordinary  advances.  The  Yorkfhire  manufa£lure,  indeed, 
declined,  and  its  produce  did  not  rife  to  what  itiiad  been  in,  1755 
till  1766,  after  the  repeal  of  the  American  ftamp  a&.  In  that  and 
the  following  year  it  greatly  exceeded  what  it  had  ever  been  before, 
and  it  has  continued  to  do  fo  ever  Ance. 


The  produce  of  all  great  manufaflures  for  diftant  fale  muft  ne* 
celTarily  depend,  not  fo  much  upon  the  deamefs  or  cheapnels  of 
the  iieafons  in  the  countries  where  they  are  carried  on,  as  upon  the 
circumftances  which  affect  the  deniund  in  the  countries  where  they 
are  confumed;  upon  peace  or  war,  upon  the  proiperity  or  de- 
denfion  of  other  rival  manufadtures,  and  upon  the  good  or  bad 
humour  of  tlieir  principal  cuftomers.  A  great  part  of  the  extra- 
ordinary work*  befldes,  which  is  probably  done  in  cheap  years,  never 
enters  the  publick  regifters  of  manufa£lures.  The  men-fervants 
whr^  .eave  their  matters  become  independant  labourers.  The  wo- 
men return  to  their  parents,  and  commonly  fpin  in  order  to  make 
cloaths  for  themfelves  and  their  families.  Even  the  i  'dependant 
workmen  do  not  always  work  foi  publick  fale,  but  nrc  entJoyed 
by  fome  of  their  neighbours  in  manufaftures  for  fen-jly  u^i.  The 
produce  of  their  labour,  therefore,  frequently  makes  no  figure  in 
thofe  pub'ick  regifters  of  which  the  records  are  fometimes  pub- 

Ufhed 


THE    WEALTH    OP    NATIONS. 


105 


liihcd  with  To  much  pariule.  and  from  which  our  merchanti  and  ^(/A''* 
manufa^lurera  would  often  vainly  pretend  to  anounce  the  proiperity 
or  declenfion  of  the  greatc()  'nnpires. 


Though  the  variations  in  the  price  of  Uboui,  not  only  do  not 
always  correfpond  with  thole  in  the  price  of  proviftons,  but  \n 
frequently  quite  oppofite,  we  muft  not,  upon  this  account,  ima* 
ipne  that  the  price  of  provifions  has  no  influence  upon  that  of 
\ai  our.  The  money  price  of  labour  is  neceflarily  r^ulated  by 
\.\v^j  circumftancesi  the  demand  for  labour,  and  the  price  of  the 
neceflaries  and  conveniencies  of  life.  The  demand  foi-  labour, 
according  as  it  happens  to  be  increaflng,  (lationary,  or  declining, 
or  to  require  £.n  increaflng,  ftationary,  or  declining  population, 
determines  the  quantity  of  the  neceflaries  and  convcn'wncies  of  life 
which  mufl:  be  given  to  the  labourer  j  and  the  money  price  of 
labour  is  determined  by  what  is  requifite  for  purchafli  .g  this  quan- 
tity. Though  the  money  price  of  labour,  therefore,  is  fometimcs 
high  rvhere  the  price  of  provifions  is  low,  it  would  be  ftill  higher, 
the  demand  continuing  the  lame,  if  the  price  of  pr&vilions  was 

It  is  becaufe  the  demand  for  labour  increafes  in  years  of  fudden 
and  extraordinary  plenty,  and  diminiflies  in  thofe  of  fudden  and 
extraordinary  fcarcity,  that  th,e  money  price  of  labour  fometimes 
rifes  in  the  one,  and  finks  in  the  other. 


In  a  yoar  of  fudden  and  extraordinary  plenty,  there  are  fun4i 
in  the  hands  of  many  of  the  employers  of  mduftry,  fufliicient  to 
maintain  and  employ  a  greater  number  of  induftriQUs  people  than 
had  been  employed  the  year  before;  and  this  extraordinary  num- 
ber cannot  always  be  had.  Thofe  mafters,  therefore,  whowafit 
more  workman  bid  agaii^  ope  another,  in  order  to  get  them, 

Vol.1.  p  which 


io6 


THE    NATURE    AND     CAUSES    OF 


BOOK  which  fometimes  raifes  both  the  real  and  the  money  price  of  their 
labour.  ' 

The  contrary  of  this  happens  in  a  year  of  fudden  and  extraordinary 
fcarcity.  The  funds  deftined  for  employing  induftry  are  lefs  than 
they  had  been  the  year  before.  A  confidcrable  number  of  people  are 
thrown  out  of  employment,  who  bid  againft  one  another  in  order  to 
get  it,  which  fometimes  lowers  both  the  real  and  the  money  price  of 
labour.  In  1740,  a  year  of  extraordinary  fcarcity,  many  people  were 
willing  to  work  for  bare  fubfiftence.  In  the  fucceeding  yeai"s  of 
plenty,  it  was  more  difficult  to  get  labourers  and  fervants.. 


The  fcarcity  of  a  dear  year,  by  diminifhing  the  demand  for  la- 
bour, tends  to  lower  its  price,  as  the  high  price  of  provifions 
tends  to  raife  it.  The  plenty  of  a  cheap  year,  on  the  contrary,  by 
increafmg  the  demand,  tends  to  raife  the  price  of  labour,  as  the 
cheapnefs  of  provifions  tends  to  lower  it.  In  the  ordinary  variar- 
tions  of  the  price  of  provifions,  thofe  two  oppoiite  caufes  feem  to 
counter-balance  one  another;  which  is  probably  in  part  the  reafon 
why  the  wages  of  labour  are  every  where  fo  much  more  fteady  and 
permanent  than  the  price  of  provifipns, 

f. ,   ,         .  '  '  ■ 

The  increafe  in  the  wages  of  labour  neceilarily  increafes  the 
price  of  many  commodities,  by  increafing  that  part  of  it  which 
refolves  itfelf  into  wages,  and  fo  far  tends  to  diminifh  their  con- 
fumption  both  at  home  and  abroad.  The  fame  caufe,  however* 
which  raifes  the  wages  of  labour,  the  increafe  of  flock,  tends  .to 
increafe  its  produflive  powers,  and  to  make  a  fmaller  quantity  of 
'  labour  produce  a  greater  quantity  of  work.  The  owner  of  the 
flock  which  employs  a  great  number  of  labourers,  neceflarily  en- 
deavours, for  his  own  advantage,  to  make  fuch  a  proper  divifion 
and  diflribution  of  employment,  that  they  may  be  enabled  to  pro- 
duce 


THE    WEALTH    OF    NATIONS. 


<ioy 


duce  the  grriatcft  quantity  of  work  pofUble.  For  the  fame  reafon,  CHAP, 
he  endeavours  to  fupply  them  with  the  beft  machinery  which  either 
he  or  they  can  think  of.  What  takes  place  among  the  labourers 
in  a  particular  workhoufe,  takes  place,  for  the  fame  reafon,  among 
thofe  of  a  great  fociety.  The  greater  their  number,  the  more  they 
naturally  divide  themfelves  into  different  clafles  and  fubdivifions  of 
employment.  More  heads  are  occupied  in  inventing  the  moil 
proper  machinery  for  executing  the  work  of  each,  and  it  is,  there- 
fore, more  likely  to  be  invented.  There  are  many  commodities, 
therefore,  which,  in  confequence  of  thefe  improvements,  >  come 
to  be  produced  by  fo  much  lef&  labour  than  before,  that  the  in- 
creafe  of  its  price  does  not  compenfate  the  diminution  of  its  qiian-i 


.1 


i  Ji(.>j,i  yi 


rT.i«i»>r^       ^-iii*.      '^^ 


■■  iic  hiivfc  .;.;:^ii  ;..;,J1: 


tmhj^  mdi  ^'Mim 


P  2 


|o8  THE    NATURE    AND    CAU«£S    OF 

:  -..■  "i  •' ;''^  ■'^tionrie  :;:■:■(!  r>>Ml  5^f!V*      ^:>   :'  v 

f  CHAR     IX. 

"'■ '.  *"    *iil\     '  ..'V, :   4..'  .' 


iy*/^tf  J^rg^/l  efStocJL 


BOOK  '"l^HE  iHe  and  M  ilk  tbe  'profits:  of  ftodc.  d^tfnd  up^  tlie 
JL     &me  caufts  ^th  the  life  and  &U  in  the  Wiigpes  of  labour*, 
the  incFeafing  or  deolming  ftitterof  die  wealth  of  the  fixdetyj  but 
thofe  caufes  a£Q:£b  the  one  and  the  other  very  differently..      .^u 


The  increafe  of  ftock,  which  raifes  wages,  tendis  to^  lower 
prc^t.  When  the  ftocks-  of  many  rich  merchants  are  turned  inta> 
the  fame  trade,  their  mutual  competition  naturally  tends  to  lower 
its  profit^  and  when  there  is  a  like  increafeof  ftock  in  all  the  dif- 
ferent trades  carried  on  in  the  fame  fbciety,  the  fame  competition, 
muft  produce  the  fame  effect  in  them.  all. 


It  is  not  eafy,  it  has  already  been  observed,  to  afcertain  whaH 
are  the  average  wages  of  labour  even  in  a  particular  place,  and  at 
a  particular  time.  We  can,  even  in-  this  cafe,  feldom  determine: 
more  than  what  are  the  moft  ufiial  wages.  But  even  this  cani 
feldom  be  done  with  regard  to  the  profits  of  (lock.  Profit  is  fa 
very  fluctuating,,  that  the  perfon  who  carries  on  a  paiticular  trade 
cannot  always  tell  you  himfelf  what  is  the  average  of  hia  annual 
profit.  It  is  aflbfted,  not  only  by  every  variation  of  price  in  the; 
commodities  which  he  deals  in,  but  by  the  good  or  bad  fortunftt 
both  of  his  rivals  and  of  his  cuilomera,  and  by  a.thoufand  othec 

accidents 


THE  -WEALTH    OF    NATIONS. 


109 


aeddents  to  wtucb  goods  when  carried  dther  by  fea  or  by  land,  or  ^  ^^^^ 
tven  when  ftored  in  a  warehoufe,  are  liable.  It  varies,  therefore, 
not  only  from  year  to  year,  but  from  day  to  day,  and  almoft  from 
hour  to  hour.  To  afcertain  what  is  the  average  profit  of  all  the 
different  trades  carried  on  in  a  great  kingdom,  mufl  be  much  more 
difficult ;  and  to  judge  of  what  it  may  have  been  formerly,  or  in 
femote  periods  of  time,  with  any  degree  of  precifion,  muft  be  al* 
together  impoffible.  - 

But  though  it  may  be  impofTible  to  determine,  with  any  degree 
of  precifion^  what  are  or  were  the  average  profits  of  flock,  either 
in  the  pre&nt,  or  in  antient  times,  fome  notion  may  be  formed  of 
them  from  the  intereft  of  money.  It  may  be  laid  down,  as  a 
maxim,  that  wherever  a  great  deal  can  be  made  by  the  ufe  of 
money,  a  great  deal  will  commonly  be  given-  for  the  u(e  of  it ; 
and  that  wherever  litdie  can  be  made  by  it,  lefs  will  commonly  be 
given  for  it.  According,  therefore,  as  the  uAial  market  rate  of 
interefl  varies  in  any  eoimtry;  we  may  be  afTured  that  the  ordinary 
profits  of  flock  mufl  vary  with  it,  mufl  fink  as  it  finks,  and  rife 
as  it  rifes.  The  progrefs  of  interefl,  therefore,  may  lead  us  t(0 
&}rm  fome  notion  of  the  progrefs  of  profit. 


By  the  37th  of  Henry  VIII,  all  interefV  above  ten'  per  cent, 
was  declared  unlawful.  More,  it  feems,  had  fometimes  been* 
taken  before  that.  In  the  reign  of  Edward  VI;  religious  zeal  prtf- 
hibited-  dl  interefV.  This  prohibition,  however,  like  all  others  of 
the  fame  kind,  is  faid  to  have  produced  no  efFe£l,  and  probably 
sadiec  increafed  than-  diminifhed  the  evil  of  ufury.  The  flatute  of 
Henry  VIII  was  revived  by  the  i3jth  of  Elizabeth  cap;  8,  and  ten 
fer  cent,  continued  to  be  the  legal  rate  of  interefl  till  the  21  ft  of 
James  L  when,  it  was  reflri£led  to  eigfit  per  cent.    It  was  reduced: 

■  ■  tO' 


no 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  to  fix  per  cent,  foon  after  the  reftoration,  and  by  the  12th'  of 
Queen  Anne,  to  five  per  cent.  All  thefe  different  flatutary  regu- 
lations feem  to  have  been  made  with  great  propriety.  They  feem 
to  have  followed  and  not  to  have  gone  before  the  market  rate  of 
intereft,  or  the  rate  at  which  people  of  good  credit  ufually  borrowed. 
Since  the  time  of  Queen  Anne,  five  per  cent,  feems  to  have  been 
rather  above  than  below  the  market  rate.  Before  the  late  war, 
the  government  borrowed  at  three  per  cent,  j  and  people  of  good 
credit  in  the  capital,  and  in  many  other  parts  of  the  kingdom*  at 
three  and  a  half,  four^  and  four  and  a  half  per  cent. 

Since  the  time  of  Henry  VIII,  the  wealth  and  revenue  of  the 
country  have  been  continually  advancing,  and,  in  the  courfe  of 
their  progrefs,  their  pace  feems  rather  to  have  been  gradually  dece- 
lerated than  retarded.  They  feem,  not  only  to  have  been  going 
on,  but  to  have  been  going  on  fafVer  and  fafler.  The  wages  of 
labour  have  been  continually  increafing  during  the  fame  period, 
and  in  the  greater  part  of  the  different  branches  of  trade  and  manu- 
factures the  profits  of  ftock  have  been  diminifhing.  ^: 

It  generally  requires  a  greater  flock  to  carry  on  any  fort  of 
trade  in  a  great  town  than  in  a  country  Village.  The  great  flocks 
employed  in  every  branch  of  trade,  and  the  number  of  rich  com- 
petitors, generally  reduce  the  rate  of  profit  in  the  former  below 
what  it  is  in  the  latter.  But  the  wages  of  labour  are  generally 
higher  in  a  great  town  than  in  a  country  village.  In  a  thriving 
town  the  people  who  have  great  flocks  to  employ,  frequently  can- 
not get  the  number  of  workmen  they  want,  and  thereifore  bid 
againfl  one  another  in  order  to  get  as  many  as  they  can,  which 
raifes  the  wages  of  labour,  and  lowers  the  profits  of  flock.  In  the, 
remote  parts  of  the  country  there  is  frequently  not  flock  fufficient 
to  employ  all  the  people,  who  therefore  bid  againfl  one  another  in 

order 


THE    WEALTH    OF    NATIONS. 


Ill 


order  to  get  employment,  which  lowers  the  wages  of  labour,  and   ^?J^^* 
jaifes  the  profits  of  ftock» 

In  Scotland,  though  the  legal  rate  of  intereft  is  the  fame  as  in 
England,  the  market  rate  is  rather  higher.  People  of  the  beft 
credit  there  feldom  borrow  under  five  per  cent.  Even  private 
bankers  in  Edinburgh  give  four  per  cent,  upon  their  promiflbry 
notes,  of  which  payment  either  in  whole  or  in  part  may  be  de- 
manded at  pleafure.  Piivate  bankers  in  London  give  no  intereft 
for  the  money  which  is  depofited  with  them.  There  are  few  trades 
which  cannot  be  carried  on  with  a  fmaller  ftock  in  Scotland  than 
in  England.  The  common  rate  of  profit,  therefore,  muft  be 
fomewhat  greater.  The  wages  of  labour,  it  has  already  been 
obferved,  are  lower  in  Scotland  than  in  England.  The  country 
too  is  not  only  much  poorer,  but  the  fteps  by  which  it  advances  to 
a  better  condition,  for  it  is  evidently  advancing,  feem  to  be  much 
flower  and  more  tardy. 


The  legal  rate  of  intereft  in  France  has  not,  during  the  courfe 
of  the  prefent  century,  been  always  regulated  by  the  market  rate. 
In  1720  intereft  was  reduced  from  the  twentieth  to  the  fiftieth 
penny,  or  from  five  to  two  per  cent.  In  1724  it  was  raifed  to  the 
thirtieth  penny,  or  to  34  per  cent.  In  1725  it  was  again  raifed 
to  the  twentieth  penny,  or  to  five  per  cent.  In  j  766,  during  the 
;adminiftration  of  Mr.  Laverdy,  it  was  reduced  to  the  twenty-fifth 
penny,  or  to  four  per  cent.  The  Abbe  Terray  raifed  it  afterwards 
to  the  old  rate  of  five  per  cent.  The  fuppofed  purpofe  of  many  of 
thofe  violent  reduftions  of  intereft  was  to  prepare  the  way  for 
reducing  that  of  the  public  debts  j  a  purpofe  which  has  fometimes 
been  executed.  France  is  perhaps  in  the  prefent  times  not  fo  rich 
a  country  as  England  j  and  though  the  legal  rate  of  intereft  has 

4  '  \     in 


112 


THE  NATURE  AND  CAUSES  OF 

In  France  frequehdfy  Wen  lower  'thtn  ik  £h^larto/  tlie  mail:et 
rate  ha§  generally  been  higher;  for  there,  a^  ^i  ^ot^ier  countries, 
they  have  feveral  very  fife  and  eafy  methods  of  evading  the 
law.  The  profits  pf  trade,  I  have  been  aiTi^-ed  by:  &iti||i  iqtr- 
chants  who  had  traded,  in  bofji, <:ouiitrifiS«  are  higher  it|  fi:aiice 
than  in  England ;  and  it  is  no  dg^ubt  upon  this  account  that  many 
Britiih  fubje£ts  chufe  rather  to  employ  their  capitals  in  a  country 
where  trade  is  in  difgrace,  than  In  one  where  it  is  highly  refpe£ted. 
The  wages  of  labour  are  lower  in  France  than  in  En^^and.  When 
you  go  from  Scotland  to  England,  the  difference  which  you  may 
remark  between  the  drefs  and  countenance  of  tlie  common  people 
in  the  one  country  and  in  the  other,  fufUciently  indicates  the  dif- 
ference in  thdr  condition.  The  contrail  is  flill  greater  when  you 
return  from  France.  France,  though  no  doubt  a  richer  country 
than  Scotland,  feems  not  to  be  going  forward  fo  faft.  It  is  a 
common  and  even  a  popular  opinion  in  the  country  that  it  is  going 
backwards ;  an  opinion  which,  I  apprehend.  Is  ill  founded  even 
with  regard  to  France,  but  which  nobody  can  pofllbly  entertain 
with  regard  to  Scotland,  who  fees  the  country  now  and  who  iaw 
it  twenty  or  thirty  years  ago. 


The  province  of  Holland,  on  the  other  hand,  in  proportion 
to  the  extent  of  its  territory  and  the  number  of  its  people,  is  a 
richer  country  than  England.  The  goveriunent  there  bonx)w  at 
two  per  cent,  and  private  people  of  good  credit  at  three.  The 
wages  of  labour  are  faid  to  be  higher  in  Holland  than  in  England ; 
and  the  Dutch,  it  Is  well  known,  trade  upon  lower  profits  than 
any  people  in  Europe,  The  trade  of  Holland,  it  has  been  pre- 
tended by  fome.  people,  is  decaying,  and  it  may  perhaps  be  true 
that  fome  particular  branches  of  it  are  fo.  But  thefe  fymptoms 
fecm  to  indicate  fufficiently  that  there  is  no  general  decay.  When 
7     '  ."t  'jrfi  ni  ffiinnai   :rf'ioii    ^uh'  ,  profit 


dmfSi  ihbugli'th*  dkiiimitton  ofiprofit  is  thb  ntntM^fbiitoe  k«  ' 

piYX^ty,  ixcf  a  givMer  ftock  being  employ^  in  kthaiif'bcfoiv. 
During  the  late  war  the  Dutch  gain^  the  whole  cairyiAg  trade  of 
I^hmce,  0)f  whidi  they  Aill  retain  a  very  iargie  fhare.  Th^  great 
property  Whitih  they  poiTefs  both  in  the  French  and  Englifh  il^nds; 
abbbt  forty  millions^  it  is  faid,  in  the  lattery  (in  which  I  Aifpef^*^ 
hlnweWr,  there  ts  a  confiderabie  exaggeration),  the  great  fum» 
Which  they  lend  to  private  people  in  countries  where  the  ratbof 
iftttttrlb  H  highei'  ^thanf  in*  thdrown>'  are=  drcu^nftances  which  no 
d6tibt  demonfbtite  the  redundancy  of  their  flock,  or  'that  it  h8» 
iricrcafedbtyond-trtiat they  cart  ertjploywith  toleraUe  profit  in  the 
prbper  bufinefs  of  their  own.  country :  but  they  do  not  demonftrate* 
th^tthat  bufmefs  has  decrieaiH.  As  the  capital  of  a  private  man, 
tll«)i^gh '  «x|tdrcd  by  a  'particaliu>!  trttde;  tnlttf  hicreafe  beyond'  what  i 
he Cflh employ  in  it; ^nd  y^ttbattrade continue  to  increffeutooil 
fo  may  llkewife  tile  capital  qf  a  great  nation.  bvtrj^n  *^,A 

.  J^  ,  our  North  An^eric^n  w4 .  ,We^,  Indi^M  Mpn^. .  ppX  only 
tlji?.wages!^  l*bQUi',  but  tbe,.intei:eft,6f  oipwsy*  »?»4  ?onreqv^nUy, 
tlxe  profits  of  ftock  are  higher,  .lijian  in  England.    |ri  tjie. 4iiferQ0t 
co|ig>nies  b^oth  the  legal  and  the  market  rate  of  interefl  run  iroai  fix 
tQ  jEi^ht  per  cent.    High  wages  of  labour  aqd  lug)h  profits  ^  l^oplt;* 
hfipl^^rr  are.  things,  perhaps,  which  fcarceeyerga(q^e|her,^xc^|: 
»4iiMHfc;pep»li?r  circumftances  of  new  colpnies..    A,  new.  ^plppy,. 
mUft  always  for  fome  time  be  more  und^rftocked  in  pri^rtipn  tQu 
the  extent  of  its  territory,  and  more  underpeopled  in  proportion, 
to  the  extent  of  its  ftock,  than  the  greater  part  of  other  countries.  „ 
They  have  more  land  than  they  have  ftock  to  <:ulti,vate.     What 
they  have,  tlierefore,  is  applied  to  the  cultivation  only  of  whatsis 
moft  fertile  and  moft  favourably  fituated,  the  lands  near  the  lea 
fliore,  and  along  the  banks  of  navigable  rivers.     Such  land  too  is 
frequently  purchafed  at  a  price  below  the  value  even  of  its  natural 
Vol.  L  -      CL  '     produce. 


iH 


THE    J^ATURE    AW©    CAU&E8    OF 


fiich  lafMb  itfuft  yitld  a  very  lu^  profit,  and  eonfci^umtly  a^i 
t»  piy  a  v«i|r  Uuge  iatereft*  Its  fi^  ac<;ttBU)latio«  in  ib  pui^^lp^ 
89  fm^loyncn*  pvM»  ^  ^laiaiter  to  infivcAie  ^  omn^  f)^  t))i!| 
bands  iafter  tl^an  \»  can  fisd  them  in  a  OMir  fettjiieiVMBn^  TM^ 
whom  he  can  find,  tbecefone,  «re  very  U!>ataUy  fewafdii)4f  4#  ^ 
c<dony  increafes,.  the  pjroEts  of  ftock  gradually  ^iixuiu(h>  Wl^ 
the  moft  feitUe  and  he&  fttuated  lands  isave  been  all  «coupted»  1^^ 
^(^t  can  be  made  by  the  cultivation  of  what  i«  ii)|ui«r  botb  t» 
ioU  and  (ituatJon,  apd  leTsiateveft'Canlif  s#>ridfl4^or  t)iqr#ofk,iKfeMd|f 
is  {o  employed.  In  the  greater  part  of  our  co^onle^  .^owiing1y» 
both  the  legal  and  t\it  mariket  sate  of  interqft  hauft  ]^fsa.  cpo^dpf^ 
ably  reduced  during  the  courie  of  the  prelent  century.  As  a£hsif[f 
improvement,  and  population  have  inoreafed,  intereA;  has  Reclined,, 
The  wages  of  labpur  donot  fii^  wj^  ,t^  pi^t^tqil^  ;ilw|K.  ;^!l^. 
demand  for  labour  increases  wi^  thfi  ,iiM:tea£B  qf  Attck  whatever  hp 
its  profits;  and  aftei*  theie  are  diminif)^,  Jftock  B9f^  a»t  po^ 
continue  to  increafe,  but  to  increafe  much  fafter  than  before.  It 
is  with  indttftrious  iiatiims  who  ore  advancitig  in  th*  acqulfiti«fM)f 
riehcft*  as  ^itli  indtiftrioui  iiittividUats.  A  great  IkoA,  ihiHigll 
wii^  4iMtt-pre4ts,  generally  inortafeS'fafler  tSian  a  finall  llock^  wkl^ 
gUBafe  profits.  Money,  ftys  the  proverb,  makes  montj.  When 
you  have  g6t  ^  littk,  'it  is  often  eafy  to  get  more.  The  gl<cal  difi- 
ct4ty  fs  to  ^  Ihot  Kt^.  The  eoiine£tion  hetw^en  the  increiif'if 
iMi  and  fhait  of  indulftpy,  or  of  the  demand  4ot  <M{A  liAsijkaii 
has  jMrtly  Ibeen  exfdaimd  i^eady,  but  will  be  explained  more  wily 
hereafter  in  treating  of  the  accumulation  of  dock. 


,  The  acquifition  of  new  territory,  or  of  new  branches  of  trade, 
may  fometimes  raife  the  profits  of  ftock.  and  with  them  the  in- 
tereft  of  money,  even  in  a  country  which  is  faft  advancing  in  the 

acquifition  of  riches.    The  ftock  of  the  country  not  being  fulRdent 

9(  ..■.^-..•-.H-x-..^  ...;-.;,„  ^^ 


,:.yj;t>.,»-uj| 


J> 


■?.,■- 


rzfi'f 


THE    WEALTH    OF    NATIONS. 


US 


for  the  whole  acccffion  of  bufinefs,  which  fuch  acquifition.  prefcnt  ^  ^^  ^* 
to  the  difFerent  people  among  whom  it  is  divided,  is  applied  to 
thofe  particular  branches  only  which  afford  the  greateft  pro' t. 
Part  of  what  had  before  been  employed  in  other  trades,  is  necefTa- 
rily  withdrawn  from  them,  and  turned  into  fome  of  the  new  and 
more  profitable  ones.  In  all  thofe  old  trades,  therefore,  the  com- 
petition comes  to  be  lefs  than  before.  The  market  comes  to  be 
lefs  fully  fupptied  with  many  different  forts  of  goods.  Their  price 
neceffarily  rifes  more  or  lefs,  and  yields  a  greater  profit  to  thofe 
who  deal  in  them,  who  can,  therefore,  afford  to  borrow  at  a  higher 
intereft.  For  fome  time  after  the  conclufion  of  the  late  war,  not 
only  private  people  of  the  beft  credit,  but  fome  of  the  greateft  com- 
panies in  London,  commonly  borrowed  at  five  per  cent,  who  before 
that  had  not  been  ufed  to  pay  more  than  four,  and  four  and  a 
half  per  cent.  The  great  acceflion  both  of  territory  and  trade,  by 
our  acquifitions  in  North  America  and  the  Weft  Indies,  will  fuf- 
ficiently  account  for  this,  without  fuppofing  any  diminution  in 
the  capital  ftock  of  the  fociety.  So  great  an  acceffion  of  new 
bufinefs  to  be  carried  on  by  the  old  ftock,  muft  neceflarily  have 
diminifhed  the  quantity  employed  in  a  great  number  of  particular 
branches,  in  which  the  competition  being  lefs,  the  profits  muft 
have  been  greater.  I  (hall  hereafter  have  occafion  to  mention 
the  reafons  which  difpofe  me  to  believe  that  the  capital  ftock  of 
Great  Britain  was  not  diminifhed  even  by  the  enormous  expence 
of  tlie  late  war. 


The  diminution  of  the  capital  ftoclt  of  the  fociety,  or  of  the 
funds  deftined  for  the  maintenance  of  induftry,  however,  as  it 
lowers  the  wages  of  labour,  (b  it  raifes  the  profits  of  ftock,  and 
corifequently  the  intereft  of  money.  By  the  wages  of  labour  being 
lowered,  the  owners  of  what  ftock  remains  in  the  fociety  can 
bring  their  goods  cheaper  to  market  than  before,  and  lefs  ftock 

Q^a  >     •>    being 


ii6 


THE    NATURE    ANP     CAUSER    PF 

being  em|)loycd  in  fupplying  tKie  market  t)\an  before,  they  pan 
fell  thctn  dearer.  Their  goods  coft  them  lefs,  an4  they  get  more 
for  them.  Their  profits,  therefore,  being  augmented  at  both  encis, 
can  vveli  afford  a  large  intcreft.  Th^  gre^it  fortunes  (q  fud4(nly  an4 
fo  cafily  acquired  in  Bengal  and  the  other  Britifh  fettlements  in  the 
Eafl;  Indies,  may  fatisfy  us  that  as  the  wages  of  labouj:  arf  very 
low,  fo  the  profits  of  (lock  are  very  high  in  thofe  ruined  countries. 
The  intereft  of  money  is  proportionably  fo.  Jn  fi^n^Bl*  money 
is  frequently  lent  to  the  farmers  at  forty,  fifty,  and  fixty  pier  cent, 
and  the  fucceeding  crop  is  mortgaged  for  the  payment.  As  the 
profits  which  can  afford  fuch  an  intereft  muft  eat  up  almofl:  the 
whole  rent  of  the  landlord,  fo  fuch  enormous  ufury  muft  in  its 
turn  eat  up  the  greater  part  of  thofe  profits.  Bcfoie  the  fall  of 
the  Roman  republick,  a  ufuiy  of  the  fame  kind  feems  to  have 
been  common  in  the  provinces,  under  the  ruinous  adminiftration 
of  their  proconfuls.  The  virtuous  Brutus  lent  money  in  Cyprus 
at  five  and  forty  per  cent,  as  we  learn  from  the  letters  of  Cicero. 

In  a  country  which  had  acquired  that  (ull  cQv.i)4cment  of  riches 
which  the  nature  of  its  ibjl  and  qlimatc  and  its  fituation  with 
refpe6l  to  other  countries  allowed  it  to  acquire;  which  could, 
therefore,  advance  no  further,  and  which  was  not  going  back- 
wards^  both  the  wages  of  labour  and  the  profits  of  ftock  would 
probably  be  very  low.  In  a  country  fully  peopled  in  proportion 
to  what  either  its  territory  could  maintain  or  its  ftock  employ, 
the  competition  for  employment  would  neceflfarily  be  fo  great  as  to 
reduce  the  wages  of  labour  to  what  was  barely  fuificient  to  keep  up 
the  number  of  labourers,  and,  the  country  being  already  fully 
peopled,  that  nuniber  could  never  be  augmented.  In  a  country 
fully  ftocked  in  proportion  to  all  the  hufinefs  it  had  to  tranfaft, 
as  great  a  quantity  of  ftock  would  be  employed  in  every  particular 
branch  as  the  nature  and  extent  of  the  trade  would  admit.  The 
7  ,     ,      i      /  .       competition. 


THE    WEALTH    OF    NATIONS.  ^\ 

competitioii,  therefore;  would  everywhere  be  at  great,  and  con-   ^  ^'  "^  '• 
fequently  the  ordinary  profit  as  low  as  poflible. 

'  But  perhaps  no  country  has  ever  yet  arrived  at  this  degree  of 
opulence.  China  feems  to  have  been  Icmg  (Vationary,  and  had 
probably  long  ago  acquired  that  full  complement  of  riches  which 
is  contiftent  with  the  nature  of  its  laws  and  inftitutions.  But 
this  ctunplement  may  be  much  inferior  to  what,  with  other  laws 
and  inftitutions,  the  nature  of  its  foil,  climate,  and  fituation  might 
admit  of.  A  country  which  negleds  or  defpifes  foreign  commerce, 
and  which  admits  the  veffels  of  foreign  nations  into  one  or  two 
of  its  ports  only,  cannot  tranfa6t  the  fame  quantity  of  bufmefs 
which  it  might  do  with  different  laws  and  inftitutions.  In  a 
country  too,  where,  though,  the  rich  or  the  owners  of  large  capitals 
enjoy  a  good  deal  of  fecurity,  the  poor  or  the  owners  of  fmall 
capitals  enjoy  fcarce  any,  but  are  liable,  under  the  pretence  of 
juftice,  to  be  pillaged  and  plundered  at  any  time  by  the  inferior 
mandarines,  the  quantity  of  ftock  employed  in  all  the  different 
branches  of  bufin'^fs  tranfafted  within  it,  can  never  be  equal  to 
what  the  nature  and  extent  of  that  bufincfs  might  admit.  In  every 
different  branch,  the  opprefllcn  of  the  poor  niuft  eftablifh  the 
monopoly  of  the  rich,  who,  by  engrofling  the  whole  trade  to  them- 
felves,  will  be  able  to  make  very  large  profits.  Twelve  per  cent, 
accordingly  is  (aid  to  be  the  common  intei'eft  of  money  in  China,, 
and  the  ordinary  profits  of  ftock  muft  be  fufficient  to  afford  this^ 
large  intereft.  '^'  '^''^ 


■*■  rf      KfiW-iVM     I  «ir*^  ■■.*<<'«''■  *^  J 


-- 1  ■■  ■%»      h*»  I'M     *'3  --J  ^%^ 


.'/iKO  V^yf.: 


A  DEFECT  in  the  law  may  (bmetimes  raife  the  rate  of  intereft 
confiderably  above  what  the  condition  of  the  country,  as  to 
wealth  or  poverty,  would  require.  When  the  law  does  not  enforce 
the  performance  of  contrafts,  it  puts  all  borrowers  nearly  upon 
the  fame  footing  with  bankrupts  or  people  of  doubtful  credit  in. 

y^:  .      -.  -  better 


ii8 


THE    NATURE     AND    CAUSES     OF 


B  O  O  K  better  regulated  countries.  The  uncertainty  of  recovering  his  money 
makes  the  lender  exa£t  the  fame  ufurious  intereft  which  is  ufually 
required  from  bankrupts.  Among  the  barbarous  nations  who  over- 
run the  weftem  provinces  of  the  Roman  empire,  the  performance 
of  contrafls  was  left  for  many  ages  to  the  faith  of  the  contracting 
.parties.  The  courts  of  juftice  of  their  kings  feldonr  -ntermeddled 
in  it.  The  high  rate  of  intereft  which  took  place  in  thofe 
antient  times  may  perhaps  be  partly  accounted  for  from  this 
caufc. 


When  the  law  prohibits  intereft  altogether,  it  does  not  prevent 
it.  Many  people  muft  borrow,  and  nobody  will  lend  without 
fuch  a  confideration  for  the  ufe  of  their  money  as  is  fuitable,  not 
only  to  what  can  be  made  by  the  ufe  of  it,  but  to  the  difficulty 
and  danger  of  evading  the  law.  The  high  rate  of  intereft  among 
all  Mahometan  nations  is  accounted  for  by  Mr.  Monteiqnieu,  not 
from  their  poverty,  but  p<uily  from  this,  and  pardy  from  the  dif- 
ficulty of  recovering  the  money. 

The  lowefl;  ordinary  rate  of  profit  muft  always  be  fomething 
more  than  what  is  fufficient  to  compenfate  the  occafional  lolTes  to 
which  every  employment  of  (lock  is  expofed.  It  is  this  furplus 
only  which  is  neat  or  clear  profit.  What  is  called  grofs  pro- 
fit comprehends  frequently,  not  only  this  furplus,  but  what  is 
retained  for  compenfating  fuch  extraordinary  lofies.  The  interefl 
which  the  borrower  can  afiford  to  pay  is  in  proportion  to  the  clear 
profit  only. 

The  lowed  ordinary  rate  of  intereft  muft,  in  the  fame  manner, 
\ic  fomething  more  than  fufficient  to  compenfate  the  occafional 
lofies  to  which  lending,  even  with  tolerable  prudence,  is  expofed. 
Were-  it  not  more«  charity  or  friendlhip  could  be  the  only  motives 
for  lending,      ^^  ""'  '*'  ^  "  '  *       "  '  " 


THE    WEALTH     OF    NATIONS. 


"9 


In  a  country  which  had  acquired  its  full  complement  of  riches,  ^  ^' ^  P. 
where  in  every  particular  branch  of  buflnefs  there  was  tiie  greatelt 
quantity  of  (lock  that  could  be.  employed  in  it,  as  the  ordinary 
rate  of  clear  profit  would  be  very  fmall,  fo  the  ufual  market  rate 
of  intered  which  could  be  afforded  out  of  it»  would  be  fo  low 
as  to  render  it  impofTible  for  any  but  the  veiy  wealthieft  people 
to  live  upon  the  interefl  of  their  money.  All  people  of  fmall  or 
middling  fortunes  would  be  obliged  to  fuperintend  themfelve» 
the  employment  of  their  own  flocks.  It  would  be  necefTary  that 
almofl  every  man  fhould  be  a  man  of  bufmefs,  or  engage  in  fome 
Ibrt  of  trade.  The  province  of  Holland  feems  to  be  approach- 
ing near  to  this  flate.  It  is  there  unfafhionable  not  to  be  a  man 
of  bufinefs.  NecefHty  makes  it  ufual  for  almofl  every  man  to  be 
fo,  and  cuftom  every  where  regulates  fafhion.  As  it  is  ridiculous 
not  to  drefs,  fo  is  it,  in  fome  meafure,  not  to  be  employed,  like 
other  people.  As  a  man  of  a  civil  profefTion  feems  aukward  in 
a  camp  or  a  garrifon,  and  is  even  in  fome  danger  of  being  defpifed. 
there,  fo  docs  an  idle  man  among  men  of  bufmefs. 

The  higheft  ordinary  rate  of  profit  may  be  fuch  as,  in  the  price 
of  the  greater  part  of  commodities,  eats  up  the  whole  of  what 
ihould  go  to  the  rent  of  the  land,  and  leaves  only  what  is  fufE-^ 
dent  to  pay  the  labour  of  preparing  and  bringing  them  to  market, 
according  to  the  lowcft  rate  at  which  labour  can  any  where  be 
paid,  the  bare  fubfiftence  of  the  labourer.  The  workman  muft 
always  have  been  fed  in  fome  way  or  other  while  he  was  about  the 
work  J  but  the  landlord  may  not  always  have  been  paid.  The 
profits  of  the  trade  which  the  fervants  of  the  Eaft  India  Com- 
pany carry  on  in  Bengal  may  not  perhaps  be  very  far  from  this 


rate. 


u'-(l   fU  Jt"'.  iVV 


The  proportion  which  the  ufual  market  rate  of  interefl  ought 
to  bear  to  the  ordinary  rate  of  clear  profit,  neccfTarily  varies  as 

.  profit 


I20 


THE     NATURE     AND'    CAUSES    OF 


BOOK  profit  rifes  or  falls.  Rouble  iiitereft  is  in  Great  Britain  reckoned, 
what  the  merchants  call,  a*  good,  moderate,  reafonable  profit  f 
terms  which  1  apprehend  nican  no  more  than  a  common  and 
ufual  profit.  In  a  country  where  the  ordinary  rate  of  clfear  profit 
is  eight  or  ten  per  cent,  it  may  be  reafonable  that  one  half  of  it 
fliould  go  to  intereft  wherever  bafinefs  is  carried  oh  with  borrowed 
money.  The  ftock  is  at  the  rifk  of  the  borrower,  who,  ais  it 
were,  infures  it  to  the -lender;  and  four  or  fire  per  cent,  may 
in  the  greater  part  of  trades,  be  both  a  fufRcicnt  profit  lipon  the 
rilk  of  this  infurance,  and  a  fufficicnt  recompence  for' the  trouble 
of  employing  the  ftock.  But  the  proportion  between  intereft 
and  clear  profit  might  not  be  the  fame  in  countries  where  the 
ordinary  rate  of  profit  was  either  a  gbod  deal  lower,  or  a  good 
deal  higher.  If  it  were  a  good  deal  lower,  one  half  of  it  perhaps 
could  not  be  afibrded  for  intereft;  and  more  might  be  a6forded 
if  it  were  a  good  deal  higher.  -' -  ^ 


,:f: 


In  countries  which  are  faft  advancing  to  riches,  the  low  rate 
of  profit  may,  in  the  price  of  many  commodities,  compenfate 
the  high  wages  of  labour,  and  erial>le  thoib  countries  to  Ml  as 
cheap  as  their  lefs  thriving  neighbours,  itAoti^  whbni  thfe'  wigtfs  of 
labour  may  be  lovver.  '  -'^--i.-it-^^Mv  mfy^arr^^** 


-i  ? 


,.    .  Jit 


n^q   !::r3n 


Jl   !«'  «         «   • 


•■  ':, 


,.3 


i'ni;-* 


r:i 


i 


.  'vrJ-ti 


THE    WEALTH    OF    NATIONS. 


I2X 


.f 'ibs^^-it*:    ' -y. 


.  C  H  A  P.     X. 


Of  t^ages  dnd  P/ofit  \n  the  dtjereiit  Employments  of  Labour  and 

THE  whole  of  the  advantages  and  difadvantages  of  the  dif-  CHAP, 
ferent  employments  of  labour  and  ftock  muft,  in  the  fame 
neighbourhood,  be  either  perfeftly  equal  or  continually  tending 
to  equality.  If  in  the  fame  neighbourhood,  there  was  any 
employment  either  evidently  more  or  lefs  ady^ntagqpus  than  the 
reft,  fo  many  people  would  crowd  into  it  in  the  one  cafe,  and  fo 
many,  woujd  d^f^ft.  it  in  the  other,  that  its  advantages,  yvould  foon 
return  to  the  l^vel  of  (pther  employments.  Tl^is  at  leaft  would 
be  the  cafe  in  a  foci^ty  where  thir^gs  were  left  to  follow  their 
natural  cburfe,  where  there  was  perfeft  liberty,  and  where  every 
man  was  perfe£liy  free  both  to  chufe  what  occupation  Lj  thought 
proper,  and  to  change  it  as  often  as  he  thought  proper.  Every 
man's  intereft  would  prompt  him  to  feek  the  advantageous  and 
to  ftxun  tlie.diiadvantageous  employmenu  ,^^..^^,^^^^^^  ^.^.  „ 

PfictrJj'rARY  wages 'and  profit,  Ihdced,  are  every  where  in  Eu- 
rope extreamly  different  according  to  the  different  employments 
of  labour  and  ftock.  But  this  difference  arifes  partly  from  certain 
circumft:ances  in  the  employments  themfelves,  which,  either  really, 
or  at  leaft  in  the  imaginations  of  men,  make  up  for  a  fmall 
pecuniary  gain  in  fome,  and  counter- balance  a  great  one  in  others  j 
and  partly  from  the  policy  of  Europe,  which  nowhere  leaves 
things  at  perfect  libeity. 


Vol.  I. 


The 


122 


THE  NATURE  AND  CAUSES  OF 


BOOK        The    particular    confideration  of  thofe  eircumftances  and  of 


that  policy  will  divide  this  chapter  into  two  parts. 


Part     I. 


>'  -i'-A  s  •:•»'■'■: 


.!)h     ■'■' 


Inequalities  arijing  from  the  Nature  of  the  Employments  tbemfehes. 

^T*HE  .five  following  are  the  principal  eircumftances  which,  fa 
far  as  I  have  been  able  to  oblerve,  make  up  for  a  fmall 
pecuniary  gain  in  fome  employments,  and  counter-balance  a  great 
one  in  others  :  firft,  the  agreeablenefs  or  difagreeablenefs  of  the 
employments  themfelves ;  fecondly,  the  eafniefs  and  cheapnefs,  or 
the  difficulty  and  expence  of  learning  them  •»  thirdly,  the  conftancy 
or  inconftancy  of  employment  in'  them  \  fourthly,  the  finall  or 
great  truft  which  mult  be  repofcd  in  thofe  who  exercifc  them; 
and,  fifthly,  the  probability  or  improbability  of  fuccefs  in  them.i"* 

First,  The  wages  of  labour  vaiy  with  the  eafe  or  hardfliip, 
the  cleanlinefs  or  dirtinefs,  the  honourablenefs  or  diflionour- 
ablenefs  of  the  employment.  Thus  in  moft  places,  take  the  year 
round,  a  journeyman  taylor  earns  lefs  than  a  journeyman  weaver. 
His  work  is  much  eafier.  A  journeyman  weaver  earns  Icfs  than 
a  journeyman  fmith.  His  work  is  not  always  eafier,  but  it  is  ■ 
much  cleanlier.  A  journeyman  blackfmith,  though  an  artificer, 
feldom  earns  fo  much  in  twelve  hours  as  a  collier,  who  is  only  a 
labourer,  does  in  eighth  His  work  is  not  quite  fo  dirty,  is  lefs 
dangerous,  and  is  carried  on  in  day-light,  and  above  ground. 
Honour  makes  a  great  part  of  the  reward  of  all  honourable  pro- 
feffions.  In  point  of  pecuniary  gain,  all  things  confidered,  they 
are  generally  under-recompenled,  as  I  fhall  endeavour  to  fhow  , 
by  and  by.    Difgrace  has  the  contrary  effed.    The  trade  of  a 

butcher 


N 


•THE    WEALTH    OF    NATIONS. 


123 


butcher  is  a  brutal  and  an  odious  bufinefs  >,  but  it  is  in  moil:  places   CHAP. 
more  profitable  than  the  greater  part  of  common  trades.     The 
moft  deteftable  of  all  employments,  that  of  public  executioner, 
is,  in  proportion  to  the  quantity  pf  v/ork  done,  better  paid  than 
any  common  trade  whatever. 


K  /, 


Ji'.y 


HuNTiNG  and  fifliing,  the  moft  important  employments  of 
mankind  in  the  rude  ftate  of  fociety,  become  in  its  advanced  ftatg 
their  moft  agreeable  amufements,  and  they  purfue  for  pleafure 
what  they  once  followed  from  necefllty.  In  the  advanced  ftate 
of  fociety,  therefore,  they  are  all  very  poor  people  who  follow 
as  a  trade,  what  other  people  purfue  as  a  paftime.  Fifliermen 
have  been  fo  fince  the  time  of  Theocritus.  A  poacher  is  every 
where  a  very  poor  man  in  Great  Britain.  In  cojntries  where  the 
rigour  of  the  law  fuffers  no  poachers,  the  licenfed  hunter  is  not 
in  a  much  better  condition.  The  natural  tafte  for  thofe  employ- 
ments makes  more  people  follow  them  than  can  live  comfortably 
by  them,  and  the  produce  of  their  labour,  in  proportion  to  its 
quantity,  comes  always  too  cheap  to  market  to  afford  any  thing  but 
the  moft  fcanty  fubfiftence  to  the  labourers. 

DisAOREEABLENEss  and  dilgracc  afFe6l  the  profits  of  ftock 
in  the  fame  manner  as  the  wages  of  labour.  The  keeper  of  an 
inn  or  tavern,  who  is  never  maftcr  of  his  own  houfe,  and  who  is 
expofed  to  the  brutality  of  every  drunkard,  exercifes  neither  a  very 
agreerble  nor  a  very  creditable  bufinefs.  But  there  is  fcarce  any 
common  trade  in  which  a  fmall  ftock  yields  fo  great  a  profit. 

Secondly,  The  wages  of  labour  vary  with  the  eafinefs  and 
cheapnefs  or  the  difficulty  and  cxpence  of  learning  the  bufi- 
nefs. 


R  2 


When 


124 

BOOK 
I 


THE  NATURE  AND  CAUSES  OF  ' . 

When  any  expenfive  machine  is  creeled,  the  extraordinary 
work  to  be  performed  by  it,  before  it  is  worn  out,  it  muft  be  ex- 
pedcd,  will  replace  the  capital  laid  out  upon  it,  with  at  leaft  its 
ordinary  profits.  A  man  educated  at  the  expence  of  much  labour 
and  time  to  any  of  thofe  employments  which  require  e;(traordinary 
dexterity  and  Ikill,  may  be  compared  to  one  of  thofe  expenfive 
machines.  The  work  which  he  learns  to  perform,  it  mull  be 
expeflcd,  over  and  above  the  ufual  wages  of  common  labour,  will 
replace  to  him  the  whole  expence  of  his  education,  with  at  leaft  the 
ordinary  jjrofits  of  an  equally  valuable  capital.  It  muft  do  this  too 
in  a  reafonable  time,,  regard  being  had  to  the  very  uncertain  du- 
ration of  human  life,  in  the  fame  manner  as  to  the  more  certain, 
duration  of  the  machine. 


The  difference  between  the  wages  of  fl^illed  labour  and  thole: 
of  common  labour,  is  founded  upon  this  principle. 

The  policy  of  Europe  confiders  the  labour  of  all  meclianicks, 
artificers,  and  manufafturers,  as  (killed  labour;  and  that  of  all; 
country  labourers  as  common  labour.  It  feems  to  fuppofe  that  of 
the  former  to  be  of  a  more  nice  and  delicate  nature  than  that  of 
the  latter.  It  is  fo  perhaps  in  fome  cafes  j  but  in  the  greater  part 
it  is  quite  otherwife,  as  I  fhall  endeavour  to  (hew  by  and  by.  The 
laws  and  cuftoms  of  Europe,  therefore,  in  order  to  qualify  any 
perfon  for  exercifing  the  one  fpecies  of  labour,  impofe  the  necef- 
fity  of  an  apprentice(hip,  though  with  different  degrees  of  rigour 
in  different  places.  They  leave  the  other  free  and  open  to  every 
body.  During  the  continuance  of  the  apprenticefhip,  the  whole 
labour  of  *he  apprentice  belongs  to  his  mafter.  In  the  mean  time 
he  muft.  in  many  cafes,  be  maintained,  by  his  parents  or  relations* 
and  in  almoft  all  cafes  muft  be  cloathed  by  them.  Some  money  too 
is  commonly  given  to  the  mafter  for  teaching  him  bis  trade.  They 
4  who 


THE    WEALTH    OF    NATIONS. 


"5 


who  cannot  give  money,  give  time,  or  become  bound  for  more  C  HA  P. 
tlian  the  ufual  number  of  years  j  a  confiderat'on  v^rhich,  though  it 
is  not  always  advantageous  to  the  mafter,  on  account  of  the  ufual 
idlenefs  of  apprentices,  is  always  difadvantageous  to  the  apprentice. 
Ill  country  labour,  on  the  contrary,  the  labourer,  while  he  is  em- 
ployed about  the  eafier,  learns  the  more  difficult  parts  of  his  bufmefs, 
and  his  own  labour  maintains  him  through  all  the  diiferent  ftages 
of  his  employment.  It  is  reafonable,  therefore,  that  in  Europe 
the  wages  of  mechanicks,  artificers,  and  manufacturers,  fliould  be 
fomewhat  higher  than  thofe  of  common  labourers.  They  are  fo 
accordingly,  and  their  fuperior  gains  make  them  in  moft  places  be 
confidered  as  a  fuperior  rank  of  people.  This  fuperiority,  however, 
is  generally  very  fmallj  the  daily  or  weekly  earnings  of  journeymen 
in  the  more  common  forts  of  manufiiftures,  fuch  as  thofe  of  plain 
linen  and  woollen  cloth,  computed  at  an  average,  are,  in  moft 
places,  very  little  more  than  the  day  wages  of  common  labourers. 
Their  employment,  indeed,  is  more  fteady  and  uniform,  and  the 
fuperiority  of  their  earnings,  taking  the  whole  year  together,  may- 
be fomewhat  greater.  It  feems  evidently,  however,  to  be  no 
greater  than  what  is  fufficient  to  compenfate  the  fuperior  expencff 
of  their  education.  .>  viSi  ,  ;-.   •    .;     ;  4*  - 

Education  in  the  ingenious  arts  and  in  the  liberal  profef- 
fions,  is  ftill  more  tedious  and  expenfive.  The  p.cuniaiy  re- 
compencc,  therefore,  of  painters  and  Iculptors,  of  lawyers  and! 
phyficians,  ought  to  be  much  more  liberal,,  and  it  is  fo  accord- 
ingly. 


r»  The  profits  of  ftock  feem  to  be  very  little  affedled  by  the  cafi- 
nefs  or  difficulty  of  learning  the  trade  in  which  it  is  employed.. 
All  the  different  ways  in  which  ftock  is  commonly  employed  in 
great  towns  feem,    in  reality,    to  be  almoft  equally    eafy  and 

,  equally 


126 


THE  NATURE  AND  CAUSES  OF 


BOOK  equally  difficult  to  learn.  One  branch  cither  of  foreign  or  domef- 
tick  trade,  cannot  well  be  a  mr.ch  more  intricate  bufincfs  than 
another. 

Thirdly,  The  wages  of  labour  in  different  occupations  vary 
with  the  conftancy  orinconftancy  of  employment. 


Employment  is  much  more  conflant  in  fome  trades  than  in 
others.  In  the  gre.iterpart  of  manufactures,  a  journeyman  may 
be  pretty  fure  of  employment  almoft  every  day  in  the  year  that  he 
is  able  to  work.  A  mafon  or  bricklayer,  on  the  contrary,  can 
work  neither  in  hard  froll  nor  in  foul  weather,  and  his  employ- 
ment at  all  other  times  depends  upon  the  occafional  calls  of  his  cu- 
ftomers.  He  is  liable,  in  confequence,  to  be  fiequently  without 
any.  What  he  earns,  therefore,  while  he  is  employed,  muft  not 
only  maintain  him  while  he  is  idle,  but  make  him  fame  compcjnfation 
for  thofe  anxious  and  defponding  moments  which  the  thought  of 
fo  piecarious  a  fiiuation  muft  fometimes  occafion.  Where  the 
computed  earnings  of  the  greater  part  of  manufacturers,  accord-^ 
ingly,  are  nearly  upon  a  level  v.ith  the  day  wages  of  common  la- 
bourers, thofe  of  mafons  and  bricklayers  are  generally  from  one- 
half  more  to  double  thofe  wages.  Where  common  labourers  earn 
four  and  five  fliillings  a  week,  mafons  and  bricklayers  frequently 
earn  feyen  and  eight;  where  the  former  earn  fix,  the  latter  often 
earn  nine  and  ten;  and  where  the  former  earn  nine  and  ten,  as  in 
London,  the  latter  commonly  earn  fifteen  and  eighteen.  No  fpecies 
of  fkilled  labour,  however,  feems  more  eafy  to  learn  than  that  of 
mafons  and  bricklayers.  Chmrmen  in  London,  during  the  fum- 
mer  feafon,  are  faid  fometimes  to  be  employed  as  bricklayers. 
The  high  wages  of  thofe  workmen,  therefore,  are  not  fo  much  the 
recompence  of  their  ikill,  as  the  compenfation  for  the  inconftancy 
of  thdr  employment.  •    - 

•.m«o.l  .!.,■•' 
A  HOUSE 


THE     WEALTH     OF    NATIONS. 

A  HOUSE  carpenter  feenis  to  cxercife  ratlier  a  nicer  and  more 
ingenious  trade  than  a  mafoii.  In  moft  places,  however,  for  it 
is  not  univerfally  fo,  his  diy-wagcs  are  fomewhat  lower.  His 
employment,  though  it  depends  much,  does  not  depend  fo  en- 
tirely upon  the  occafional  calls  of  his  cuftoraersi  and  it  is  not 
liable  to  be  interrupted  by  the  weather. 


127 


Wk.:n  the  trades  which  generally  afford  conflant  employment,, 
happen  in  a  particular  place  not  to  do  fo,  the  wages  of  the  work- 
men always  rife  a  good  deal  above  their  ordinary  proportion  to- 
thofe  of  common  labour.  In  London  almoft  all  journeymen  ar- 
tificers are  liable  to  be  called  upon  and  difmifled  by  their  mafters 
from  day  to  day,  and  from  week  to  week,  in  the  fame  manner  as- 
day-labourers  in  other  places.  The  lovveft  order  of  artificers. 
Journeymen  taylors,  accordingly  eatn  there  half  a  crown  a-day,. 
though  eighteen-pence  may  be  reckoned  the  wjgcs  ot  common; 
labour.  In  fmall  towiis  and  country  villages,  the  wages  of 
journeymen  taylors  frequently  fcarce  equal  thofe  of  common  labour; 
but  in  London  they  are  often  many  weeks  without  employment,, 
particularly  during  the  fummer. 


When  the  Inconftancy  of  employment  is  combined  with  the 
hardfliip,  difagreeablenefs  and  dlrtinefs  of  the  work,  it  fometimes. 
raifes  the  wages  of  the  moft  common  labour  above  thofe  of  the  moft 
ikilful  artificers.  A  collier  working  by  the  piece  is  fuppofed,  at 
Ncwcaftle,  to  earn  commonly  about  double,  and  in  many  parts  of 
Scotland  about  three  times  the  wages  of  common  labour.  His. 
Viigh  wages  arife  altogether  from  the  hardfliip,  difagreeablenefs, 
and  dirtinefs  of  his  work.  His  employment  may,  upon  moft  oc- 
cafions,  be  as  conftant  as  he  pleafes.  The  coal-heavers  in  Lon- 
don exercife  a  trade  which  in  hardfliip,  dirtinefs,  and  difagreeable- 
nefs, almoft  equals  that  of  colliers  5  and  from  the  unavoidable 
7  irregularity. 


JWr 


THE     NATURE     AND    CAUSES     O^ 


irregularity  in  the  arrivals  of  coal  (hips,  the  employment  of ''the 
greater  part  of  them  is  neceffarily  very  inconftant.  If  colliers, 
therefore,  commonly  earn  double  and  triple  the  wages  of  common 
labour,  it  ought  not  to  feem  unreafonable  that  coal-heavers  (hould 
fometimes  earn  four  and  five  times  thofe  wages.  In  the  enquiry 
made  into  their  condition  a  few  years  ago,  it  was  found  that  at 
the  rate  at  which  they  were  then  paid,  they  could  earn  from  fix 
to  ten  {hillings  a-day.  Six  {hillings  are  about  four  times  the  wages 
of  common  labour  in  London,  and  in  every  particular  trader  the 
lowe{l  common  earnings  mayi  always  be  confidered  as  thofe  of  thg, 
far  greater  number.  How  extravagant  foevcr  thofe  camings  njay 
aj)pear,  if  they  were  more  than  fufHcient  to  compenfate  all  the 
difagreeable  circum{lances  of  the  bufincfs,  there  would  foon  be 
fo  great  a  number  of  competitors  as,  in  a  trade  which-  has 
no  exclufive  privilege,  would  quickly  reduce  tliera  to  z  lower 
-I'ate.  .^. 

The  coitftancy  or  inconllancy  of  employment  cainnotw  affeft 
the  ordinary  profits  of  flrock  in  any  particular  trade.  Whet'  jr  the 
ftock  is  or  is  not  conllantly  employed  depends,  not  upon  the  trade. 


but  the  trader. 


i'i*«   ji"j»  „vm   ,<«»*«.«»v»  «»*§  "5»»»*  ias-AM  *  >iiii'Ukilti}iivl  ^  U  it 


FouRTHLy,  The  wages  of  labour  vary  according  1^  tl^^^qj^U 
or^r^at^truft^ which  niuft  be rcpofed  in  the  workmen.,^^:^^  ^  f:\iii3m 

>  ,     '•  ^        '  '  »  .  ■■„.*,•• 

«,■         ■.  .      ..  ■■  .,.    •    •  ».      •  .  ,  -.•     ,  •?('?./? 

.  The  wages  of  goldfmiths  and  jewellers  are  every  where  luperioi" 
to  thofe  of  many  other  workmen,  not  only  of  equal,  but  of  much 
fuperior  ingenuity  j  on  account  of  the  precious  materials  y^t|i^y^if^ 
t^ey.^i|iiitrufted^^jj^^\rf^  ^„v-,    '  ,,^,j,,,j  ^igj  yif^,^' 

-  .;We  truft  our  health  to  the  phyficianj  our  fortime  and  {bmc- 
times  our  life  and  reputation  to  the  lawyer  and' attorney.    Such 

^iia*je^,^.  Z  ,    confidence 


THE    WEALTH    OF    NATIONS. 


t29 


coiAdtnst  could  not  &fely  be  repofed  m  people  of  a  vciy  mean  or  C  HA  P. 
low  condition.  Their  < '  'vard  muft  be  fuch,  therefore,  as  may 
give  them  that  rank  in  the  focicty  which  ib  important  a  truft  re- 
quires. The  long  time  and  the  great  expence  which  muft  be 
laid  out  in  their  education,  when  combined  with  this  cir-* 
cumftance,  neceflarily  enUance  ftill  further  the  price  of  their  la- 
bour. :  • 

Whkn  a  peribn  employs  only  his  own  ftock  in  trade,  there  it 
no  truftj  and  the  credit  which  he  may  get  from  other  people, 
depends,  not  upon  the  nature  of  his  tra^,  but  upon  their  opi- 
nion of  his  fortune,  probity,  and  prudence.  The  different 
rates  of  proifit,  therefore,  in  the  different  branches  of  trade, 
cannot  arife  from  the  difiierent  d^rees  cf  truft  repofed  in  the 
traders. 

FiPTHXY,  The  wages  of  labour  in  different  employments 
vary  according  to  the  probability  or  improbability  of  fuccefs  in 
them. 


The  probability  that  any  particulai*  perfon  fhall  ever  be  qualified 
for  the  eu.ployment  to  which  he  is  educated^  is  very  different  in 
different  occupations.  In  the  greater  part  of  mschanick  trades, 
fuccefs  is  almoft  certain;  but  very  uncertain  in  the  liberal  profef- 
iions.  Put  your  fbn  apprentice  to  a  fhoemaker,  there  i.«  little 
doubt  of  his  learning  to  make  a  pair  of  ihoes:  But  fend  him  to 
ftudy  the  law,  it  is  at  leaft  twenty  to  one  if  ever  he  makes  fuch 
pi-oficiency  as  will  enable  him  to  live  by  the  bufincfs.  In  a  per- 
fedtly  fair  lottery,  thofe  who  draw  the  prizes  ought  to  gain  all 
that  is  loft  by  thofe  who  draw  the  blanks.  In  a  profeffion 
where  twenty  fail  ft>r  one  that  fticcecds,  that  one  ought  to  gain 
all  that  fhould  have  been  gained  by  the  unfuccelsful  twenty.    The 

Vol.  I,  S  counfcllor 


^^9 


T.H'E    NATURE-  AND    CAlPSEff    CTF 


B  <^Q  i^   cQwr^Uor  at.Uw  who,  perhaps,  at  near  forty  y«ars  of  age^i  ibcgins; 
'    tp  make  ipmething  by  his  pjrofdTian,'  ought  to  receive  the  retribu«> 
tlon,  not  only  of  his  own- ib  tedious  and' expenfive  education,  but 
of  that  of  more  tlian  twenty  others  who  are  never  likely  to  make 
any  thing  by  it.     How  extravagant  foever  the  fees  of  cotmfeUors  at 
law  may  fometimes  appear,  thair  real  retribution  is  never  equal 
to  this.     Compute  in  any  particular  place,  what  is  likely  to  be 
annually  gained,  and  what  is  likely  to  be  annually  fpent,  by  all  the 
different  workmen  in  any  common  Uade*  iUch  aa  that  of  (hoemakei's 
or  weavers,  and  you  will  find  that  the  former  fiira  wilLgenerally 
V  exceed  the  latter.    Biut  make  the,  (ams.  computation  with  regard  to 
all  the  counfellorsi  and  iludenta  of  law,  in  ^11  the  different inilB  of 
court,  and  you  will  find  that,  thein.  annual  guns. bearbut  a  very 
fmall  proportion  to  their. annual  expenoe,  event  though  you  rate 
the  former  as  high,  and  the  latter  as  low,  as  can  well  be  done. 
The  lottery  of   the  law,   therefore,    is  very  far  from  being  a 
perfectly  fair  lottery;,   and.  that,   as  well  as  many  other  liberal 
and  honourable  profefrfon8,.j^e,,ifl^,gtattts, of.  pecuniary   gain, 
cyj^^ptly.^yn^^ijceco^^  ^^Vu  i^u.-x  ^avAtu  i.-ui  bit:7/-Ji  jy( 


J 


.  Those  profeffions  keep  their  level,  however,  with  other  occu- 
pations, and,,  notwithftanding  theie  difcouragements,  all  the  moft 
generous  and  liberal  fpirits  are  eager  to  crowd  into  them.  TW6 
different  caufes  contiibute  to  recommend  them.  Firft,  the  defire 
pf  the  repu/tation  which  attends  upon  fuperior  excellence  in  any 
of  them;  and,  fecondly,  the  natural  confidence  which  every  man 
has  more  or  lefs^  not  only  in  his  own  abilities,  but  in  his  own  good 
fortune.!  yUUj,U0wu«i  'Mt-^-   -^  :  -^^'^  W^i^^  'i(^  If:  Vff^'^.S"*"*^^ 


:  To  excel  in.  any  profeflion,  in  which,  but  few  arrive  at  medio* 
crity,  is  the  moft  decifive  mark  of  what  is  called  genius  or  fuperior 
^ents.    The  publick  admiration  which  att^ds  upon  fuch  dif>. 

^(^      0,  .  ^  S.  .V  tinguilhed 


THE    WEALTH    OP    NATIONS. 


»!' 


tinguiflicd  abilities,  makes  always  a  jiart  of  their  reward  j  a  greater  C  HA  P. 
oritnaller  in  proportion  as  it  is  higher  or  lower  in  degree.    It 
makes  a  cohfiderable  part  of  it  in  the  profeflion  of  phyfick ;    a 
fVill  gi'eater  perhaps  in  that  of  law;   in  poetry  and  philofbphy 
it  makes  almoft  the  whole 


irvj   iioHl  >5ian(;£  . 


Hhi 


There  are  fbme  very  agreeable  and  beautiful  talents  of  which 
the  poffeflion  commands  a  certain  fort  of  admiration ;  but  of  which 
the  exei'cife  for  the  lake  of  gain  is  cohfidered,  whether  from  reafon 
or  prejudice,  as  a  fort  of  publick  proftitulion.  The  pecuniary  re- 
'Coitiponce,  therefore,  of  thofe  who  exercife  them  in  this  manner,' 
muft  be  fufficient,  not  only  to  pay.  for  the  time,  labour,  and 
expence  of  aoqairing  the  talents,  but  for  the  difcredit  which  attends 
the  employment  of  them  as  the  means  of  fubfiftence.  The  exor- 
bitant rewards  of  play«'rs,  opera-fingers,  opera-dancers,  &c.  are 
founded  upon  thofe  two  principles ;  the  rarity  and  beauty  of  the 
talents,  and  the  difcredit  of  employing  them  in  this  manner.  It 
ieems  abfurd  at  firft  fight  that  we  (hould  defpife  their  perfons,  and 
yet  reward  their  talents  with  the  moft  profufe  liberality.  While 
we  do  the  one,  however,  we  mufl  of  neceffity  do  the  other. 
Shquld  the  publick  opinion  or  prejudice  ever  alter  with  regard  to 
fuch  occupations,  their  pecuniary  recompence  would  quickly 
4iminifh.  More  people  would  apply  to  them,  and  the  competition 
would  quickly  reduce  the  price  of  their  labour.  Such  talents, 
vthough  far  from  being  common,  are  by  no  means  fo  rare  as  is 
imagined.  Many  people  poiTefs  them  in  great  perfcdHon,  who  dif- 
4ain  to  make  this  ufe  of  them  y  and  many  more  are  capable  of 
acquiring  them,  if  any  thing  could  be  made  honourably  by  them. 

The  over- weening  concdt  whkh  the  greater  part. of  men  have 
of  their  ovyn  abilities,  is  an  antient  evil  remarked  by  the  philofb^ 
phers  and  moralifls  of  all  ages.     Their  abfurd  prefumption  in 

fj-jrlUtfj^n!?  '  S  2  • .      their 


ip 


THE  NATURE  AND  CAUSES  OF 


%  O  O  K  their  own  good  fortune^  hai  been  left  taken  notice  of.  It  it,  How- 
ever, hf  podiblo,  Hitl  more  univerfai.  Then;  is  no  man  living 
who,  when  in  tolehable  health  and  f{Mrits,  has  not  ibme  (hare  of 
it.  The  chance  of  gain  is  by  every  man  more  or  lefs  over-^ valued, 
and  the  chance  of  loft  is  by  mod  men  under-valued,  md  by  fearoe 
any  man,  who  is  in  tolerable  health  and  ipirits,  valued  more  than 
it  is  worth.  ''^'^*  ufimitp:^  ^au  mfix*-^<4i-^ mn  ^f<%fw|i  -if/WF^  it w.rrml 
IM  .ofH    um  ■/vumon,i^%$<\'iLip'>\u,{.i  f^^i\^  ;i}iif\s^^^ni  f^iifAHi'^ti 

That  the  chance  of  gain  is  naturally  overvalued,  we  may 
karn  from  the  univerfai  fucceft  of  lotteries.  The  world  neither 
ever  faw,  nor  ever  will  ftie,^a  per£bftly  fair  bttery  f  or  one  in  which 
the  wbde  gain  compenfated  the  whole  loTs  j  becduft  the  undertaker 
could  make  nothing  by  it.  In  the  ilate  lotteries  the  tickets  ave 
really  not  worth  the  price  virhich  is  paid  by  the  original  fbbftribers, 
and  yet  commonly  fell  in  the  market  for  twenty,  thirty,  and 
Ibmetimes  forty  per  edit,  advance.  The  vaih  hope  of  gaining 
Ibme  of  the  great  prizes  is  the  fbfe  eauie  of  this  demand*  The 
fobereft  people  fcarce  look  upon  it  as  a  fblly  to  pay  a  fmall  fum 
for  the  chance  of  gaihing  tto  or  twenty  thousand  pounds ;  though 
they  know  that  even  that  fmall  fum  is  peHiaps  twenty  or  thirty  p«r 
cent,  more  than  the  cliance  iS'  Worth.  In  a  lottery  in  which  no  pr\tc 
exceeded  twenty  pounds,  though  in  other  refpe^s  it  approached 
much  nearer  to  a  perfectly  fair  one  than  the  common  ftate  lot- 
teries, there  would  not  be  the  iane  demand  for  tickets.  In  order 
to  have  a  better  ehiuice  for  ferae  of  the  gre^  priaes,  ibme  people 
purchafe  ieveral  tickets,  and  others,  fmaU  fbares  in  a  ftiU  greater 
number.  There  is  not,  however,  a  more  certain  propofitic«i  in 
mathematlcks  tlian  that  the  more  tickets  you  adventure  upon,,  the 
more  likely  you  are  to  be  a  lofer.  Adventure  upon  all  the  tickets 
in  the  lottery,  and  you  lofib  for  certain ;  and  the  greater  the  number 
cf  your  tickets  the  nearer  you  approach  to  this  certaiiity. 


Tha* 


THE    WEALTH    OF    NATIONS. 


*33 


*    That  the  chance  of  lofs  is  frequently  undcr/alued,  mid  kanx   CHAP. 
;ivci'  valued  more  than  it  is  worth,  we  may  learn  from  the  vciy 
-moderate  profit  of  infurers.     In  order  to  make  infuraiice.  eithei' 
from  tire  or  fea  rifk,  a  trade  at  all,  the  common  premium  mu(l  be 
fufHcient  to  compcnfate  the  common  loffes^  to  pay  the  expence  oi 
management,  and  to  a6ford  fuch  a  profit  as  might  have  been  drawn 
from  an  equal  capital  employed  in  any  common  trade.    The  pcrfon 
who  pays  no  more  than  this,  evidently  pays  no  more  than  the  real 
.value  of  the  rifk,  or  the  lowed  price  at  which  he  can  reafonably  expert 
to  infure  it.    But  though  many  people  have  made  a  little  money  by 
inCurance,  very  few  have  made  a  great  fortune )  and  from  this  confi- 
deration  alone  it  Teems  evident  enough  that  the  ordinary  balance  of 
ji^roEt  ^ad  lofs  is  not  more  advantageous  in  this  than  in  other  com- 
mon trades  by  which  fo  many  people  make  foitunes*    ^odptAtfn^. 
however,  as  the  premium  of  .'nfurance  commonly,  is,  many  people 
defpifc  the  rifk  too  much  to  care  to  pay  it.     Taking  the  whole 
kingdom  at  an  average,  nineteen  houfes  in  twenty,  or  rather  per-  . 
haps  ninety-nine  in  a  hundred^    are  not  infured  from  fire.     Sea: 
jilk  is  more  alarming  to- the  greater  part  of  people,  and  the  pro- 
portion of  fhips   infured  to  thofe  not   infured  is  much  greater.. 
Many  fail,  however,  at  all  feafons  and  even  in  time  of  war,  with-- 
out  any  infurai  »v,e.     This  may  fometimes,  perhaps,  be  done  without 
any  impriuloicc.     When  a  great  company,  or  even  a  great  mer- 
chant, has  twenty  or  thirty  fhips  at  fea,   they  may,  as  it  were,, 
infure  one  another.     The  premium  faved  upon  them:  all,    may 
more  than  compenfatc  fuch  loffes  as  they  are  likely  to  meet  with  in; 
the  common  courfe,  of  chances.     The  negleft-  of  infurance  upohi 
fhipping,  however,  in  the  fame  manner  as  upon  houfes,  is,    ini 
moft  cafes,   tl^  ef!e£t  of  no  fuch  nice  calculation;    but  of  mere, 
thoughtlefs  ralhnefs  and  prefunHjtuous  contempt  of  the  rifk; 

The  contempt  of  rifk  and  the  prefumptuous  hope  of  fucceis,, 
arc  in  no  period.of  life  more  active  than  at  the  age  at  which  young- 

.        peoples 


m 


THE    NAT;UR£    A^P    CAV6ES    of 


^%9^  ppopje  chuf?  tl^^r  pro^eijions.  .j^ow  litt|p  ^^19  fear  of  inis%t«pjp 
is  then  capable  of  ba}ancu>g  the  hope  of  gopd  luctc,  9ppc;?U's.fti^ 
Wiore  evidently  in  the  readinefs  of  the  common  people  to  enlift  as 
foldiers  or  to  go  to  fea,  thai;i  in  the  eagernefs  of  thofe  .c^f  j^e;^^ 
feft^jpn  tO;en^(^  ^<;>M-vytet. a«?  cj^l^.tlxe  ^bei;9)i,pi;Q^pftjj,,.j  ,,,ij^ 

.  What  a  common  foldier  may  lofe  is  obvious  enough.  Withr> 
out  regarding  the  danger,  however,  young  volunteers  never  enlift 
Co  readily  as  at  the  beginning  of  a  new  war;  and^  though, they 
liave  fcarce  any  chance  of  preferment,  they  figure  to  thenifelues  it 
iheiryoutliful  fancies  a  thoufand  occafions  of  acquiring  honour  and 
^iftindlion  which  never  occur.  Thefe  romantick  ho^es  make  thfc 
whole  price  of  their  blood.  Their  pay  is  left  than  tiiat  of -common 
labourers,  ^nd  in  actual  fervice  their  fatigues  are  mitth  greater.  '^<i 

''^'  The  lottery  of  the  fea  is  not  altogether  fo  difadVantageous  as 
that  of  the  army.  The  fon  of  a  creditable  labourer  or  artificer 
may  frequently  go  to  fea  with  his  father's  confent;  but  if  he  enlil^s 
as  a  foldier,  it  is  always  without  it.  Other  people  fe6  fome  chance 
of  his  making  fomething  by  the  one  trade :  Nobody  but  hittifelf 
fees  any  of  liis  making  any  thing  by  the  other.  The  great 
admiral  is  lefs  the  objeft  of  publick  admiration  than  the  great 
genciol,  and  the  highell  fuccefs  in  the  fea  fervice  promifes  a  lefs 
brilliant  fortune  and  reputation  than  equal  fuccefs  in  the  land. 
The  fame  difference  runs  through  all  the  inferior  degrees  of  prefer- 
ment in  both.  By  the  rules  of  precedency  a  captain  in  the  navy 
ranks  with  a  colonel  in  the  army :  but  he  does  not  rank  v«rith  him 
in  the  common  eftimation.  As  the  great  prizes  in  the  lottery  are 
lefs,  the  fmaller  ones  mud  be  more  numerous.  Common  failors, 
therefore,  more  frequently  get  fome  fortune  and  preferment  than 
common  foldiers ;  and  the  hope  of  thofe  prizes  is  what  principally 
recommends  the  trade.    Though  their  (kill  and  dexterity  are  much 

*  fuperior 


'lit 


r^ 


fifeiffttriiBtonthlbal'fcefieof  hardftiij)aiid  dahger,  yet  for  all  this 
de:Aerity  andikitl,  foi*  all  thofe  hakdlhips  and  dangers,  while  they 
remain  in  the  coriditiori  of  (Common  ftilors,  they  receive  fcarce  any 
other  recOttiJicncB 'but  the  pleafofe  6f  extrcifing  the  one  and  of 
furmounting  the  other.    Tlieir  wages  are  not  greater  than  thofe 
of  common  labourer  at  the  poit  which'  regulates  the  rate-  of  fea- 
mens  wages.    As^  they  are  continually  going  from  poit  to  port-, 
the  monthly  pay  of  thofe  who  fail  from  all  the  different  ports  of 
Creat  ^itaih,  is  more  nearlyrupon  a  level  than  that  of  any  other 
workmen  in  thofe  different  places ;  and  the  rate  of  the  port  to  and 
from  which  the  greateft  number  fail,  that  is  the  port  of  London,. 
Jugulates  that  of  all  the  reft.    At  London  the  wages  of  the  greater 
part  of  the  different  clafles  of  workmen  are  about  double  thofe  of 
the  fame  claffes  at  Edinburgh.     But  the  failors  who  fail  from  the 
port  of  Lpndon.  feldom  earn  above  three  or  four  (hillings  a  month' 
more  than  thofe  who  fail  from  the  port  of  Leitii,  and  the  difference 
is  frequently  not  fo  great.     In  time  of  peace,  and  in  the  merchant 
fervice,   the  London  price  is  from  a  guinea  to  about  feven  and' 
tvvcnty  fhillings  the  calendar  month.      A  common  labourer  ia 
London,  at  the  rate  of  nine  or  ten  fliilUngs  a  week,  may  earn  in 
the,  calendar  month  from  forty  to  five  and  forty  fliilUngs.     The- 
failor,  indeed,  over  and  above  his  pay,  is  fuppUed  with  proviiipns. 
Tlipir  value,  however,  may  not  perhaps  always  exceed  the  diffe*' 
cence  between  his  pay  and  that  of  the  common  labourer ;    and^ 
though'  it  fometimes  fliould,  the  excefs  will  not  be  clear  gain  to- 
the  failor,  becaufe  he  cannot  fliare  it  with  his  wife  and  fanjiily, 
Vfhom  he  muft  maintain  out.  of  his  wages  at  home.      rt?mt^/>ty  i^> 

'"  The  ^^ahgcrs  and  hdr-bread(th  eicapes  of  a  life  of  adventures, 
inftead  of  diflieartening  young  people,  feem  frequently  to  recom- 
mend a  trade  to  them.     A  tender  mother,  among  the  inferior 

ranks; 


13* 


THE  NATURE  AND  CAUSES  OF 

tiaskt  of  peopk,  it  oftm  afraid  to  fend  her  (ba  to  ichool  «t  t  (et«> 
port  town,  left  the  fight  of  the  ftiips  and  the  converiation  and 
adventures  of  the  failors  Should  entice  htm  to  go  to  fea.  The 
dtftant  pffo^€t  of  haza^,  from  mrhich  w«  can  hope  to  extricate 
ourfeWea  fey  cenraeB  and  vtdnfs,  is  notdi&greeable  to  us,  and 
does  noft  raife  the  wages  of  labour  ia  any  trnplaynntot*  U  n 
otherwiie  wit^  thofe  in  which.  courag;e  and  addreft  oin  be  of  no 
avail.  In  trades  which  are  known  to  be  very  unwholefome,  the 
wages  of  iabour  are^  always  remaskably  high.  Unwholefomeneft 
is  a  i|>edes  pf  diiagreeablenefs>  and  its  eifefb  upon  the  wages  of 
labour  are*  to  be  ranked  under  that  general  head. 

tir  all  the  different  employments  of  (lock,  the  ordinary  rate  of 
profit  vdries  more  or  lefs  with  the  certainty  or  uncertainty  of  the 
returns. '  Theie  ^I'e  in  general  tefs  uncertain  in  the  inland  than  in 
the  foragn  trade,  and  in  fome  branches  of  foreign  trade  than  in 
others  ;  in  the  trade  to  North  America,  for  example,  than  in  that 
to  Jamaica.  The  ordinary  rate  of  profit  always  riies  more  or  lefs 
with  the  rift:,  It  does  not,  however,  leem  to  riie  in  proportion 
to  it,  or  fo  as  to  compenfate  it  compleatly.  Bankruptcies  are 
moft  frequent  in  the  molt  hazardous  trades.  The  moft  hazardous 
of  all  trades,  that  of  a  fmuggler,  though  when  the  adventure 
ilicceeds  it  is  likewife  the  moft  profitable,  is  the  infallible  road  to 
bankruptcy.  The  prefumptuous  hope  of  fuccels  (stmn  to  a£l  here 
as  upon  alt  other  occafions,  and  to  entice  fb  many  adventuren  into 
thofe  hazardous  trades,  that  their  competition  reduces  the  profit 
below  whit  li  fufiicient  to  compenfate  the  rifle.  To  compeniate  it 
compleatly,  the  common  returns  ought,  over  and  above  the  ordi- 
nary profits  of  flock,  not  only  to  make  up  for  all  occafional  lodes, 
but  to  afford  a  furplus  profit  to  the  adventuiers  of  the  fame  nature 
with  the  profit  of  infiirers.  But  if  the  common  returns  were  fuf> 
7  ficient 


f  ft  fi^  ^#^fe«AL1«il''Of  ^NXtlONIi'T 


H7 


^aJreeaWeii^cjf  tWe  toittifs,'  ^^Htfrfflt^  fecttrky  with  which 
if'isaftaiW.  '  frt)(j'6iht'of  apt^WerfelV'dtdifa^ealilbttfcft,' Iftc^ 
ii' itttc  oi- 'no  (iiferwiceift 'thrf^f^r  iit«!ei^  part  of  the' aiffeltrtrt 
Smpioynientf  of  Itock ;  but  a  girtfi^t  deal  ift'  thofe  of  labour /' JWd 
tlie  ominary  iprbfit  of  ftock,  though  it  iifes  ^th  tht'r^,  ddes  rtot' 
always  fc«m  to  rife  in  proportion' toat.  It  thouM  folfow  fron\  all 
tl»s,  that^  in  the  fame  focicty  or  neighbourhood,  the  average  and 
owUnswy .  wiles  *j)f -.profit  in  f  I»W  W^rept  empjoyments  of  (lock 
fhouMlNrflionbili^arly  upon  a  ie,vel  |han  the  pecuniary  wages  of 
'.ciifibrfintibrtsioflabpMr.  They  are  fo,  accordingly,  Thp  difr 
i>.::t^jsOr  bctivcea^  the  jear;iings ,of  a  coffumon  labourer  and  thpfe.^ 
aiweUxmpIoyed,  lajvyef  pr  phyfi^ian^,  i§  evident^  njuchl^ea^eri, 
tlisia- tkat^  btttweoi  the  ordinary  profiits.  in  any  two  different 
bmfMhPSiqfttadei  The.  apparent  diirerence«  befides,  i|i  the  profits 
b^diflRHNiAt  trades,  is  generally  a  deception  ariAng  from  our  not 
«hiray»^difttagui(hing  what  ought  to  be  confidered  as  wages,  from 
^ha* <night4o  bc.confi4cfed  as  prpfit.         .^^f^-,  mmk ^«!  f/^ 

^^  "A  #<yirii^ A«i&s  profit  is  b^ome  a  bye-word,  denoting  fometliinj; 
ttfitomiBdnly  «xt}tivdq[;aat^  This  great  appaient  prc^t,  hpwev^r« 
k  fecqoentLy  <iio  «iore  than  the  reafonable  wages  of  labour.  Th^ 
ftUli«i^'«ii  iopofhecary  is  a  ii>uch,  mcer  and  more  d^lio^tc  matter 
tftan  that  of  any  artificer  whatcvw ;  and  the  truft  which  is  iteppfe^l 
in  him  ift  of  much  greater  impoitance.  He  is  the  phyiician  of  th|B 
pool'  in  all  cafes,  and  of  tlie  rich  when  the  diftrefs  or  danger  is 
Vtot  "V^  gt^t«  His  reward,  therefore,  ooight  to  be  fui^ab^e  to 
fiis -fkill  and  his  ti-uft,  and  it  arifcs  generally  from  the  price  at 
^    Vol.  I.  T  '  which 


13* 


THE  NATURE  AND  CAUSES  GF 


B  O^O  K  which  ( he  Ms  his  drugs:  '  F'li  the  whole  drugs  whidv^thc  bcft 
employed  apothecary,  in  a  lai^  market  town, .  will  fell  in  a  year, 
may  not  perhaps  coft  him  above  thirty  or  forty  pounds.'  Though 
he  (hould  fe*''  them,  therefore,  fcM:  <;hree  or  four  hundred j  ioP<at  a 
thoufand  p  cent,  profit,  this  may  frequency  be  no  mosethaa-tbe. 
reafonable  wages  of  his  labour  charged,  in  thq  only  Avay  in'  Which 
he  can  charge  them,  upon  the  price  of  his  drugs.  The  gre£;er 
part  of  the  apparent  profit,  is  reai  wagf  s  diiguiied  m  the  ^b  of 

profit. ,  ni.;i^^-  ?;\^^p3^' ' ^f(if •  '^jl^^  'i j^qpjri^  .1  Wyi  xii^:i5f  3^^  ^l»:; 
%■..■M^. 'dd) ' ijj  .^i^QQ^^ij^T^oi^n::^  ^ni,Ki  Oil  'fiom  iiti  moo  it  ','qii^d^'iA 
In  a  fmall  fea-port  town,  a  little  grocer  wjlll  make  forty  or  Bftf 
per  cent,  upon  a  ftock  of  a  fingle  hundred  pounds,  while  a  aoti' 
iiderable  wholefal^  merchant  in  the  fame  place  will  icarce  make 
eight  or  ten  per  cent,  upon  a  ftock  of  ten  Jiouiknd.  The  trade,  of 
the  grocer  may  be  necelTary  for  thei^onyenien^iy  of  ^  inhabitants* 
and  the  narrownefs  of  the  market  may  not  admit  the  employment 
of  a  larger  capital  in  the  bufinefs.  The  man,  however^  mu(t  not 
only  live  by  his  trade,  but  live  by  it  fuitably  to  the  qualifications 
which  it  requires.  Befides  podefling  ^  HttliQ  capital^  he  mo^rbe 
able  to  read,  write,  and  account,  and  muft  be  a,  toleraMi^  judge 
too  of,  perhaps,  fifty  or  fixty  different  forts  of  gt^ods,  ^dr  piices^ 
qualities,  and  the  markets  whetv  they  are  to  be  had  dbeapeft.  He 
muft  have  all  the  knowledge,  in  (hort,  thatts  neceflary  ibr  a^eat' 
merchant,  which  nothing  binders  him  from  be^mingt,bufc  the 
want  of  a  fufficient  capital.  Thirty  or  forty  pounds  a  year  cannot 
be  confidered  as  too  great  a  recompence  for  the  labour  of  x  pedbn 
fo  accbmplifhed.  Dedufl  this  from  the  (eemingly  great  profits  of 
his  capitaU  and  little  more  will  remaun,  perhaps,  than  the- ordinary 
profits  of  ftock.  The  greater  part  of  the  apparent  profit  is,  in. 
this  caSt  too,  resd  ws^es. 

'     The  difference  between  the  apparent  profit  of  the  retail  and! 
&at  of  the  wholef^le  trade*  is  much,  lefs  m  the  capital  than  in 

■f  finall 


THE    WEALTH    OF    NATIONS. 


«39 


fmall  towns,  and  countiy  villages.  -   Where  ten  thouland  pounds  ^  HA  P. 
can  be  employed  in  the  grociery  trade,  the  wages  of  the  grocer's 
labour  make  but  a  very  trifling  addition  to  the  real  profits  of  fo 
great  a  ftock.     The  appare.it  profits  of  the  wealthy  retailer*  there- 
fore^tare  there  more  nearly  upon  a  level  with  thofeof  the  wholefale 
merchanl..'  It  is  upon  this  account  that,  goods  fold  by  retail  are 
generally  as  cheap  and  frequently  much  cheaper  in  the  ckpital  than 
in  fmaU  towns  and>  country  villages.     Grocery  goods,  for  example, 
are  generally  much  cheaper ;  bread  and  butchcr's-meat  frequently 
as  cheap.     It  cods  no  more  to  bring  grocery  goods  to  the  great 
town  thah  to  the  country  village  j  but  it  oofts  a  great  deal  more 
to  bring  com  and  cattle^   as  the  greater  patt  of  them  muft  be 
brought  from  a  much  greater  diftance.     The  prime  coft  of  grocery 
goods,  th^refore^  being  the  fame  in  both  places,  they  are  cheapeft 
where  thfe  leaft  profit  i&  charged  upon  thorn.     The  prime  coft  of 
bread  and  butcher's- meat  is  greater  in  the  great  town  tlian  in  the 
country  village  J  and  though  the  profit  is  lefs, '  therefore^  they  are 
not  al#ayb  chbaper  there,    but  often  equally  cheap.  '  In  fuch 
artidesi    as   bread  and   butcher's-meat,.  the  fame  qaufe,   which 
ditniniflfi«s  apparent  profit,  increafes  prime  coft     The  extent  of 
the  market,  by  giving  employment  to  f /eater  ftocks,  diminifties 
apparent  prbfit «  but  by  requiring  fupplies  from  a  greater  diftance, 
it  increafes  prime  coft.    This  diminution  of  the  one  and  increafe 
of  the  other  feem,  in  moft  cafes,  neariy  to  counter-balance  one 
another  i  which  is  probably  the  reafon  that,  though  the  prices  of 
com  and  cattle  are  commonly  v'-y  diiierent  in  diffeient  parts  of 
the  !nngdom,  th<^  of  bread  and  butcher'»-fHcat  are  generally  very 
nearly  the  fitme  through  the  greater  part  of  it. 


-ii  inxi 


.icy 


Though  the  profits  of  ftock  both  in  the  wholefale  and  i^etail 
trade  are  generally  lefs  in  the  captal  than  in  fmall  towns  and 
country  villages,  yet  great  fortunes  are  frequently  acquired  from 

T  z  ,       fmaU 


(SfliU^ 


^di  ;;i  ?amti'j/p3nt  'jjci; 


.>Ji> 


t* 


140 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K   foudl  bf filings  an  the  fof  mer»  «nd  (carce  ever  in  the  latter.    In 
rsftaU  towns  and  country  viUages,  on  account  of  the  narrowneik 
of  the  market*  tirade  omnot  always  be  extended  as  ftock  extends. 
In  fuch  pkces,  thereibt'e»  though  the  rate  of  a  particular  perfon's- 
profits  may  b«     ^j^  high,  the  fum  or  amovmfe  of  them  can  neva*  be 
very  great,  nr    .or^equently  that  of  his  annu^i  accunmlation.    In 
great  towns»   ctn  the  contrary,   trade  can  be  extended  as  flock 
increafes,    and   the  cre^    of  a  frugal  and  thriving  man  in* 
creafts  much  fafter  than  Ids  ftodc.     His  trade  as  extended  in  pro^ 
portion  to' tiitt' amount  x)f  bodi,  and  the  iuoi  or  amount  of  his> 
profits  is  in  propordon  to  llhe  extent  of  his  trade,  and  his  annual 
accumuhition  in  proportion  to  the  amount  of  his  profits.     It  feldom. 
happens,    howeve  ,  that-  great  fortunes  are  made  even  in  great 
towns  by  any  one  regular,  eftablifhed»  and  well  known  branch  of 
bufmefs,  but  in  confequence  of  a  long  life  of  indufhy,  frugality, 
and  attention.     Sudden  foituaes,  indeed,  are  ibmetimes  made  ia 
fuch  places  by  what  is  called  the  trade  of  fpecuhtion%.    The  fpe- 
culative  merchant  exeitifes  no  one  regular,    eflablifhed,  or  weli 
known  branch  of  bufmefs.     He  is  a  com  merchant  this  year,  and 
a  wine  merchant  the  next,  and  a  fii^gar,  tobacco*  or  tea.  merchant 
the  yeai'  after.     He  enters  into  every  trade  when  he  forefees  that  jt 
is  likely  to  be  moic  than  comm,only  profitable,  and  he  quits  it 
when  he  forcfees  that  ifis^pvoiits  are  likely  to  xetum  to  the  level  o^ 
other  trades.     His  profits  and  lofies,  therefore,  cmi  bear  no  regu- 
lar profXHtioA  to  tiio&  of  any  one  eftabUflied  and  w:ell  known 
branch  of  iwiihefi.,   A  hdtA  adventurer  may  fonKtimies  acquire  a 
confideraUe  fortune  b^  ttVo  or  three  fuccefsful  ipeculations  j  but  b 
;ufl  as  likely  to  lofe  one  by  two  or  three  uniocce^fid  Ones.     This 
trade  can  be  carried  on  no  where  but  in  great  towns.     It  is  only 
in  places  of  the  moijk  el$e»i^iv6  con^tmetce  and  corref^^deaca  that 
the  in^eUig^nce  requifite  for  it  cai%  be  ha4^ 

The  five  circumflances  above  mentioned,  though  they  occafion 

confiderable  inequalities  in  the  wages  of  labour  and  profits  of  flock, 

J  occafion 


THE    WEALTH    OF    NATIONS. 


HI 


occafion  none  in  the  whole  of  the  advantages  and  diiadvantages,    C  HA  P. 
real  or  imaginary,  of  the  different  employments  of  either.    The 
nature  of  thofe  circumftances  is  fuch,  diat  they  make  up  for  a 
fmall  pecuniary  gain  in  fome,  and  counter-balance  a  great  one  in 
others.  * 

In  order,  however,  that  this  equality  may  take  place  in  the 
whole  of  their  advantages  or  difadvantages,  thi'ee  things  are  re- 
quifite  even  where  there  is  die  moft  perfect  freedom.  Firi^,  the 
emfdoyments  muft  be  well  known  and  long  eftabliihed  in  the  neigh- 
bourhood {  fecondly,  they  muft  be  in  their  ordinary,  or  vliat  may 
be  called  their  natural  ftate;  and,  thirdly,  they  m aft  be  the  Ible 
or  principal  employments  of  thofe  who  occupy  xhisttu.-M  ^e 
i  •  v.uiiyi  yao  vftfi  Vfl  <?ff  *  ;' 

First,  this  eqtiality  can  take  place  only  in  thofe  tmploynients 
which  are  well  known,  a.,  liave  been  long  eilabli(hed  in  the 
neighbourhood,  i::  a-// yj   .....!.; 

Where  all  other  clrcumdances  are  equal,  \yages  are  generally 
higher  in  new  than  in  old  trades.  When  a  projeftor  attempts  to- 
eftablifli  a  new  manufaiture,  he  muft  at  firft  entice  his  work- 
inen  from  other  employments  by  higher  wages  than  they  can  either 
earn  in  their  own  trades,  or  than  the  nature  of  his  work  would 
otherwife  require,  and  a  confiderable  time  muft  pafs  away  before 
be  can  venture  to  reduce  them  to  the  common  level.  Manufac* 
tures  for  which  the  demand  arifes  altogether  from  faftiion  and 
^Micy,  are  continually  changing,  and  feldom  laft  long  enough  to 
be  confidered  as  old  eftablKhed  manufactures.  Thofe,  on  the  con- 
ti'ary,  ior  which  ike  demand  arifes  chiefty  from  ufe  or  neceiTity,  are 
lefs  liable  to  change,  and  the  fame  form  or  fabrick  may  continue 
ki  demand  for  whole  centuries  together.  The  wages  of  labour,, 
therefore,  are  likely  to  be  higher  in  manufactures  of  the  former, 

than 


142 


THE  NATURE  AND  CAUSES  OF  . 


than  inthofeofthe  latter  kind.  Birmingham  deals  chiefly  in  ma- 
nufa6luresof  the  former  kind}  Sheffield  in  th(^e  of  tho  latter;  and 
the  wages  of  labour  in  thoTe  two  different  places,  are  faid  to  be 
fuitable  to  this  difference  in  the  nature  of  their  manufactures. 


fri"  '^"* ' 


The  eft;abu(hment  of  any  new  manufacture,  of  any  new  branch 
of  commerce,  or  of  any  new  practice  in  agriculture,  is  always  a 
fpeculation,  from  which  the  projector  promifes  himfelf  extraordi- 
nary profits.  Thefe  profits  fbmetimes  are  very  great,  and  fomc- 
times,  more  fre<]^uently,  perhaps,  they  are  quite  otherwife;  but 
in  general  they  bear  no  regular  proportion  to  thofe  of  other  old 
trades  in  the  neighbourhood.  If  the  projeCt  fucceedf,  they  are 
commonly  at  firft  very  high.  When  the  trade  or  praftice  becomes 
thoroughly  eflablifhed  and  well  l^tp^^Yfni  tjhe  competition  reduces 
tliem  to  the  level  bf  other  trades.  i     , ,     ' 

Secondly,  this  equality  in  the  whole  of  the  advantages  and  dif- 
advantages  of  the  different  employments  of  labour  and  Aock,  can 
take  place  only  in  the  ordinary,  or  what  m^y.be  (;9)led,,|the  natural 
(l&te  of  thofe  employments.  'tfisup  jn,n  "? 

'  The  demand  for  almoft  eveiy  different  fpecies  of  labour,  is 
fometimes  greater  and  Sometimes  lefs  than  ufual.  In  the  one 
cafe  the  advantages  of  the  employment  rife  above,  in  the  other 
they  fall  below  the  common  level.  The  demand  for  country  labour 
is  greater  at  hay-time  and  harveft,  than  during  the  greater  part  , 
of  the  year;  and  wages  rife  with  the  demand.  In  time  of  war, 
when  forty  or  fifty  thoufand  failors  are  forced  from  the  merchant 
fendce  into  that  of  the  king,  the  demand  for  failors  to  merchant . 
fliips  necelfarily  rifes  with  their  fcarcity,  and  their  wages  upon 
fuch  occafions  commonly  rife  from  a  guinea  and  feven  and  twenty 
(hillings,  to  forty  fhillings  and  three  pounds  a  month.  In  a  de- 
caying 


THE    WEALTH    OF    NATIONS. 


'43 


cayitig  ri^mhSt&ih,  tin^tht  cSntrzky-y  T^      workmenf,  rather  CHAP, 
than    4tiit    their  old  trade^    are  contented   with   fimUer  wages 
than^  Would  othenvife  be  Aiitable  to  the  nature  of  their  employ- 


ment. 


,-iy\-'/**;T 


The  profits  of  (lock  vary  with  the  price  of  the  commodities  in 
which  it  is  employed.  As  the  price  of  any  commodity  riies  above 
the  ordinary  or  average  rate,  the  profits  of  at  leaft  fome  part  of 
the  ftock  that  is  employed  in  bringing  it  to  market,  rife  above 
their  proper  level,  and  as  it  falls  they  fink  beloW  it.  All  com- 
modities are  more  or  lefs  liable  to  variations  of  price,  but  ibme 
are  much  more  fo  than  others.  In  all  commodities  which  are  pro- 
duced by  human  induftry,  the  quantity  of  induftry  annually  em- 
ployed is  neceflarily  regulated  by  the  annual  demand,  in  fuch  a 
manner  that  the  average  annual  produce  may,  as  nearly  as 
pofiible,  be  equal  to  the  average  annual  confumptioii.  In  fome 
employments,  it  has  already  been  obfbrved,  the  fame  quantity  of  iuf* 
duftry  will  always  produce  the  fame,  or  very  nearly  the  fame  quan- 
tity of  commodities.  In  the  linen  or  woollen  manufadtures,  for 
example,  the  fame  number  of  hands  will  annually  work  up  very 
nearly  the  fame  quantity  of  linen  and  woollen  cloth.  The  varia- 
tions in  the  market  price  of  fuch  commodities,  thereu.*'e,  can  arife 
only  f<noim  fome  accidental  variation  in  the  demand.  A  publick 
mourning  faifes  tlie  price  of  black  cloth.  But  as  the  demand  for 
moil  forts  of  plain  linen  and  woollen  cloth  is  pretty  uniform^  fo  is 
likewife  the  price.  But  tfhere  are  other  employments  in  .which  the 
fame  quantity  of  induftry  will  not  always  produce  the  fame  quantity 
of  commodities.  The  fame  quantity  of  induilry^  for  example»  will,  in 
different  years,  produce  very  different  quantities  of  corn,  wine,  hops, 
fugar,  t(^acco,  &c.  The  price  of  fuch  commodities,  therefore,  varies 
not  only  with  the  variations  of  demand,  but  with,  the  much  greater 
and  more  frequent  variations  of  quantity  and  is  confeqpently  ex- 
treamly  fluctuating.    But  the  profit  of  ibme  of  the  dealers  muH 

neceifarily 


mn-' 


Tttfi    ^Ktt)RE    ANIJ    CAir^ES^'t* 


*  '''^  i^idrts  of  '<he' (|)oetihtiV*'  WiOrtitHai^' arc  pt\vit\\>sA^y  ertploytd  ib*wt 
ftreh  d<«hitt6(ttties.  Hf*  ^ti^feaOeurt't^  Buy  thttn  tip  whfctttit  fbie^ 
fees  that  their' pilctt'ii  likely  to  rilb,  and  to  ftll  thtm  wHen  iris 
likely  to  fall,     ■■'i';"'^-^  --i--'     -    '-^^^    ''^  '       •^'-^'   "    -n..  )t 

Thirdly,  Tnw  equality  m  the  whole  of  the  advantages  ana 
disadvantages  of  thcdjnerent  emp^naepts  of  lalpour  and  Itock* 
can  take  place  only  in  fnicn  as  are  the  foiie  pr  princlpaL  cniplo^n^pnts 

When  a  perfon  derives  his  fubnttence  fnnn  one  employment, 
w^hich  does  OGi.  occupy,  the  great  ej-  partof  hia  %tft»^\n  th^^^er- 
vals  of  lus  leifuce  he  is  often  willing  to  ytfprjf  «t.iDptl]^^r,.,% 
ks  wage9.,tiian^  i^fffi^^^pth^m^^^^^^^ 


1  .-Tbejik  ftill  fttbfifts  in  many  parts  , of  ScptUn^  .<^ ,  ietr  q£  profile 
qsd^d  Cotters  or  Cottagers,  though  they  wem,  more  frcguci^t  f^taf 
years  ago  than,  they  are  now.  They  are  a  fort  pf  put-feryai^t^  of 
the  landlords  and  farmers.  The  ufual  reward  which  thf^y  ^receive 
£ronii  tjhdr  uMifters  is  a  bouie,  a. fmall  garden  f<w  pot-berbs»  as 
inucl|,,grai8  «»  will  feed  acow*  and,  perhaps,  an  acxe  or  two  of 
bad  arable  land.  When  their  mafter  has  occalion  for  their^  laho^r, 
heaves  them,  bcfides,  two  pecks  of  oatmeal  a  week,  worth  about 
fixteen-Tpenee  fterling.  Daring  a  great  part  lof  (h»  year  i  be*  has 
UttifiHior  no  occafioB  for  >thctr]abottr^  and  the  cultivmion/iof^  their 
<ywn  litikpoflfcffion  is  not  fafitcient  to  occupy  the  time  wbkh  is 
left  at  liidir  own^i^ofal.  When  fuch  occupiers  were  more  nu- 
i&erousrlhan  they  ariK  M  pi^fenty  they  are  faid  to  have  been  willing 
to  give  thjeir  ipaic  iime  for  a  very  fmall  recompenoe  to  :any)b6dy, 
jand  to  hkvt  wrought  for  lefs  wages  than  other  labourers.     In  an>- 

tient 


THE    WEALTH     OF    NATIONS. 


H5 


tient  timet  they  feem  to  Have  been  common  all  ova'  Europe.  In  C  HA  P. 
countrict.iU  cultivated  and  worfe  inhabited,  the  greater  pait  of 
Landlords  and  farmers  could  not  otherwife  provide  themfelves  with 
the  extraordinary  number  of  hands,  which  country  labour  requires 
at  certain  fcafons.  The  daily  or  weekly  recompence  which  fuch 
hibourers  occafionally  received  from  their  mafters,  was  evidently 
not  the  wholf  price  of  their  labour.  Their  fmall  tenement  made 
a  confiderable  part  of  it.  This  daily  or  weekly  recompence,  how- 
ever, feems  to  have  been  confidered  as  the  whole,  of  it,  by  many 
writers  who  have  colteded  the  prices  of  labour  and  proviftons  in 
antient  times,  and  who  have  taken  plcafure  in  reprefenting  both  as 
wonderfully  low.  r        Jill  ^viMfi-  ••s.n  leriw  b«»; 

Tttt  produce  df  fuch  labour  comes  frequently  cheaper  to  market 
than  would  otherwife  be  fuitable  to  its  nature.  Stockings  in  many 
parts  df  Scotland  are  knit  much  cheaper  than  they  can  any  where  be 
wrought  upon  the  loom.  They  are  the  work  of  ^rvants  and  la- 
bourers, who  derive  the  principal  part  of  their  fubfiftence  from 
fome  other  employment.  More  than  a  thoufand  pair  of  Shetland 
(lockings  are  annually  imported  into  Leith,  of  which  the  price 
is  from  five-pence  to  feven-pence  a  pair.  At  Learwick,  the  finall 
capital  of  the  Shetland  iflands,  ten- pence  a  day,  I  have  been  af- 
fured,  is  a  ct>nnnon  price  of  common  labour.  In  the  fame  iflands 
they  knit  worfted  ftockings  to  the  value  of  a  guinea  A  pair  and 
upwards*  Dtctn:  tmit  jo+ti/^       Uinfiv -ifr"- 

■■*■  -      i^m^ihWr:}:!--'.        M-i^i¥*^'--   -i 

Tut  fpinnihg  of  linen  yam  is  carried  on  in  Scotlahd  nearly  in 
the  fame  way  as  the  knitting  of  ftockings,  by  fervants  who  are 
thiefly  hired  for  other  purpofes.  They  earn  but  a  very  fcanty  fub- 
iiftence,  who  endeavour  to  get  their  whole  livelihood  by  dther  of 
thofe  trades.  In  moft  parts  of  Scotland  ihe  is  a  good  ipinner  who 
ban  earn  twenty-pence  a  week. 


Vol.  I. 


U 


In 


i! 


THE    KATVRfi'   AND    CAUSES    OF 

Im  ophlenf  cowiVrtM'  tfacr  tniflttt  if  gthwrallf  b  exftBnfive^'  thtfe 
any  one  trade  is  fofficien«  ttt  employ  th«  iih«l0  liibour  aiuUftotk  of 
thofe  who  occupy  it.  Inftanct»of  people*  d  living  by  one  employ- 
fnent,  and  at  the  fame  time  deKJving  ibme  little  advantage  fronn 
another,  occur  chiciiy  in  poor  countries.  The  following  inftance,. 
however,  of  foniething  of  theftlne  kiiubiy  to  bfr  fi»und  in  the 
capital  of  a  very  rkh  one.  There  is  no  city  in  Europe*  1  believe^ 
in  which  houfe'-rent  is  deaf  er  than  in  Londoit,  and  yet  I  k^KKw  |i# 
f!apital  in  which  a  furniflied  aparifneht  citi  be  hktd  fb  i^heap. 
Lodging  is  pot  only  much  cheaper  In  London  fhafi  In  l^st^^  St 
i«  fnoch  chdiper  than*  in  Edinboi^  df  the  fanie  degree  of  gbddn^ft^ 
and  what  may  feem  extraordinary*  the  deamefs  of  htoafe>#ent  is  the 
caufe  of  the  cheapneTs  of  lodging.  The  deamefs  of  hduft-rent  in 
LondOHt  anfes,  not  only  from  ttiofe  caufcs  which  render  it  dear 
in  alt  great  capitnk,  the  deameft  o^Iabwip,  tkie  deit^tfeftdf  alltha 
materials  of  building,  whidi  nraft  g(^Mer jifiy^  bi  IpAm^  Awh  tk 
ptat  dlAanee,  and  abeve  tAl  the  dtearnefif  of  'gft)ilrid^i1en4r*  «v«k^ 
lai^lord  ad!i^  the  part  of  ainoiiopoiift,  dnd  fbei|Meh^ty  eJciiAihg: 
a  higltet  itnt  foi-  a  ^gte  acre  oi  baifland  in  a  towny  tkai^  ca»  'ist 
had  for  a  htrndred  of  the  betl  in  the  cotimryj  but  It  allies'  ihoqA 
^m  the  ptfculiar  manifera  and  cii/!;otns  of  the  people,.  v«^ich  obllg^ 
every  maimer  of  a  fkmily  to  hire  a  whole  hourc  from  top  to  bottom. 
A  dwelUng-hpuie  in  England  meana  every  utinaf  that  is  contained 
under  the  iame  roof.  In  France,  Scotland,  and  many  odier  parts 
of  Europe,  it  frequently  means  no  more  than  a  fmgle  ftory.  A 
tradefman  in  London  is  obligipd  to  hire  a  whole  hp^ie.in  ^^  jpart 
of  the  town  where  his  cuftomers  live.  His  (hop  is  upon  the  ground- 
floor,  and  he  and  his  family  flc4^  in  the  gavretjandheende^^vpurs 
to  pay  a  part  of  his  houfe-rent  by  lettiii^  the  two  9|id4^  Apfi^^  \^ 
lodgers.  He  expe£ls  to  maintain  his  family  by  his  trade,  and  not 
by  his  lodgers.  '  Whereas,  at  Paris  ai^,  Edinburgh*  the  people 
who  let  lodgings,  h^ve,  cQmeapi^y  09  P^H^^icsias  cf.4*%fift 
tj/'i  I'i  .-        and 


THE    WEALTH    OF    NATIONS. 


«47 


mA  the  >  price  of  H»  iodging  niioft.  p«y*  not  oily  tht  rent  of  iChe  C  ha  P. 
hottic^  but  the  wbok<W|ieQfl9  9f  .t^««iiu^y»  ,  .     .^  ^  ^^ 

-',")l'j»f:j  .;      »;J  ^(lml  e'ylff,.«)q   u>  fnnr.n^i,      .if  vrffronn  orfvf '»|ort! 

CUfCj^  ait  the  ineQugl^tiei  in  tpe  whole  of  the  aovai^tag^fl  and 
,^^,  (^ziiiWX^%s  of  t||e  4iiiFerent  ei^piloymentf  of  labqur  and  iV.ck, 
lyhM^hJ^^e.^efe^  of  41^  9^  the  three  ieq,uUItes  above  mentioned 
mu,ft,9!9caf)on»  .^ycn^hprcitl^ere  is  the  o'oftpeifeft  liberty.  But 
th^  Policy  of  Europe,  by  not  leaving  things  at  perfe£^  libeity,  oc- 
caGQirii  o^ec  inequalities  of  much  greater  impoptftncc. 


ifll  jk>  o)or/) 


a. ). ' 


.'It  does  this  chiefly  in  the  three  following  ways.  Firft,  '  y  re- 
ftraining  the  coimpetttion  in  fome  employments  to  <  frnai)*^  num- 
ber thaj)  would  otherwife  be  difpofed  to  enter  into  u  <'mi  Secondly, 
by  increafing  it  Ih  others  beyond  what  it  nati  rally  wduld  be; 
^nd,  thii<)iy,  by  obftru6ling  the  free  circulation  of  labour  and 
fVock,  both  from  employment  to  employment  and  iVom  place  to 

f^^'Z  iWiiiufwiU^^  ^;{}  *i»  '.nK>f;      '       ..."  •'rji{u39<|.i>rit.mo'.»1 

'y^^l  t^'^di  Europe  occaflons  a  ve^  mtp^k  inei. 
qiialii^  in  the  whole  of  the  advantages  and  difadvantages  of  the 
diflerent  employments  of  labour  and  ftock,  by  reftralining  ^e 
competition  in  fome  employments  to  a  fmaller  number  than  might 
otherv^ife  be  diipofed  to  enter  into  thc^;. 

The  ejtclUfive  privileges  of  corporations  are  the  principal  meaiits 
it  Qiakes  ufc  of  for  this  purpofe.  .     :  -  .      ' 

''■'    Tint   exdative  privilege  of  an  incorporated  trade  neceflarily 

rieftrains  the  competition,  in  the  town  where  it  is  eftablUhed,  to 

^'  U  2  thofe 


>. : 


#? 


TH©  >iN'ArT^R'D  .  AMD  I  CAUSES   tOF 


Wi«^^  «i  the  town,  ,^»Wqy  a.  9M^«?r.proj?ip4y.,qimU^4»  iak,fOiTunpJ,i|jf;  tj^e 
ne(;effai7  rpquifite  for  9btav;iing,?his  fiecdqw^^iTliie,  l^y^^w»tof 
the  corporatioii  regulate  ^  foffx^tiit^p^  jijljis  nu^b^i;  f^  ,9pfuqitiiqes 
wliich  any  mafter,  is^  ^l9,w^ ,tp ^^ave^, ^^id  4)T^oft^ay?oth(e  A\m3!»l^er 
of  years  which  each  appreii^e  l^.  obUg^^  .t;Q .  fecve. «  TJ^e  lint^nitionf 
of  both  regulations  is  to  re(lraiiii..ifhe,qcinpetition  to,  a  i;nuch,  Di>aH?r 
number  than  mij^t  otharwife  be  4iff)^^4  :<<>  center  into  rfk^.ti'^. 
't^c  'limitation  6(  the  n^W^of  apprentices  jn2ftw»w,j^f4«^^ 
/^'Ibtig  %TTia^^t^  api^ticeltiip  rei!tf kinf  it;,ropr?  ipdirsfifc^,  !b|«t,  48 
cifeftually^  by  mcrejmng  tfie  titpcrio^  of  educ^tioot.  mni^bimns  'm 


t-  •«   rU/ 


Iir  Shefiieldina  maftfsr  cutter  .caiivi|uire.  mor^  than  opp' apprentice 
at  a  time,  by  a  fcye*-law  of  the  corporation.  inNorfollc  arid  Nor- 
voeh'iii^iDaAer/wsavier  cam  )hav«:inore  (than  two  apprentices,  un^er 
plain  .of I  forfoitiii^  ^e  pounds  a>. month  to  the  king.  No  mafter 
hattw  can  have  rhcfre  than  two  appientices  any  where  i^  ^^ngland, 
or:  in  the  EngUih  plantations, :i^xidienp(ain  of  forfeiting  4ve  pounds 
a^mpnJt^i;^  half  to'  the  kii^g*  and; half  toi  him  wh^l  ihaU)  fi|e  in:  g^y 
ceHlut' of  cecoed.  >  Botth  thdTe  r^ulauons^ though  they  have;  l^qn 
confirmed  by  a  pubUck  law  of  the  kingdbm^' 'are*  evidently. 419- 
tated  by  the  fame  corporation  fpirit  which  ena^ed  the  bye>law 
of  Sheffield.'  The  filk  weavers  in  London  had  fearce,  beent  m- 
corperated  a  year  vs^en  they  eiiaifiieid  a  bye-law  itiftraini;ng  aijy 
maAef  from  having  mbre  than  two  appittitice^  at  a  time,  |t  jn^ 
quired  a  particular  aft  of  paciiament  to  refdnd  this  b^e-law^  ^^^^ , 

Seven  years  feem  antiently  to  have  bcen.'all  6ver  Europe,  the 
ufual  term  >eftabli(hed  for-  the  duration  of  apprenticelhips  in.  the 
greater  part  of  incorporated  trades.  All  fuch  incorporations  were 
antiently  called  univerfitiesj  which  indeed,  is  tha  prc^r  Latin 
name  for  any  incorporation  whatever.  The  univerfity  of  fmiths^ 
the  univerfity  of  taylors*  Scc^  ace  expreflions  which  we  commonly 


■ju€- 


nj 


meet 


THE    WEALTH    OF    NATIONS. 


«4f 


i». 


^  ineet  With  in  ^  oU  cbdrtera  of  antieiittowhs.  WheA  thole  par*  C  ^  P, 
tkutar  tncorporatioiu  which  are  aoir  peentiarly  called  umvtrfitios 
were  firH  eftakKflicd,  the  tarn  of  jiean  which  it  was  ncc«0bry  to 
ftudys  in  order  ta  obtain  the  degree  of  mafter  of  arts»  appears 
evideatly  to  liave  been  copied  firaD  the  term  of  apprentieeih^  in 
common  tradet,  of  which  the  incdrpoiations  were  nuich  more 
antient.  As  to  have  wrought  {&rcn  yean,  under  a  mafter  properly 
qualified,  was  neceflfavy  in  order  to  intifle  any  pcrfon  to  become  a 
mailer  and  to  hare  himfctiF  appreotioes  in  a  common  trade;  fa  to 
havt  ftudied  kvtti  years  under  a  maftcr  praperly  <}uatificd»  was  m- 
ceflary  to  entide  him  to  become  a  mafter,  teacher,  pr  doffaw 
(words  antiently  fynonimous)  la  tiie  liberal  arts,  and  to  have 
fchtrfars  or  appreatiees  (words  likewife  Oirigimdly  iynonimotti)  to 
Audy  under  him.      ,  ; -ii. -;«■-. ^»^«    ,iui.u^iii«uuu    ,>j:. 


By  the  5th  of  Elisabeth,  commonly  called  the  Statute  of  Ap« 

^  prenticefliip,  it  was  eoajEted,  that  no  perfon  ihould  for  the  future 

exercife  any   trade,  craft,  or  mii^eiy  at  that  time  exercifed  in 

England,  unlefs  he  had  previQufly  Cerved  to  it  an  apprenticefhip  of 

(even  years  at  leaftj  and  what  before  had  been  the  bye-taw  of 

many  particular  corporations,  became  in  England  the  general  and 

public  law  of  all  trades  carried  on  in  market  towns.     For  though 

the  words  of  the  flatute  are  very  general,  and  feem  plainly  to 

include  the  whole  kingdom,   by  interpretation  its  operation  has 

been   limited  to   market-towns*   it  hawing  been    held  tliat  in 

country  viUnges  «  person   may  ex«rcUe  (everal  diiferent  trades^ 

ijlhoiifih  hff  hM  not  ierved  a  f«ven  ycais  gpprenticelhip  to  each, 

they  being  n«Q«(|avy  (of  tb*  ooQvewency  of  the  inhabitants,  ati4 

xl»  nunber  ttf  people  freqtientiy  not  being  fnl^icnt  to  iu^ljf 

g  Mich  with  A  pwticttlar^ett^f  hand*.    ffs?»it.  ./ 


•33V 


.** '  By  a  iirift  ipterpretatlbn  of  the  wor<fs  top  the  operation  of 
*  this  ftatute  has  been  Emited  to  thofe  trades  which  were  eftaWiflied 


Vol.  I. 


U3 


la 


150 


THE    NATURES  AND  XAUSES    OF 


in  England  bdbre  the  '5th  'of  Elizabeth,  iild  has  niver  beeit 
extended  to  fuch  as  have  been  introduced  fince  that  time.  .  This 
limitation  has  given  occafion  to  ftveral  diftin£tions  which,  com- 
iidered  as  roles  of  poHce/  appear  asfdolifli  ascan  v«ell:be  imagtheii 
It  has  been  adjud^d,  for -example^  that  a  coach-miiker  cto.net* 
ther  himfeif  make  nor  employ  journeymen  to  make  his  coach* 
wheels,  but  muft  buy  them  of  a  mafter  wheei-Wrighti.  this  latter 
trade  having  been  exercifed  in  England  l^fore  the  5th,lof;il£ti'>. 
zabeth.  But  a  wheel-wiight,  though  he  has.hever  feived  lan 
apprenticeflupi  to  «  coach-maker,,  may,  either  himfeif  make  or 
employ  journeymen  to  make  coaches  j  the  trade  of  a  coach- 
maker  not  being  within  the  ftatute,  becauie  nqt  exet'cifed  in 
England  at  the  time  ^  when  it  was  made.  ,  The  manufa£tures  of 
Manchefter>  Birmingham,  and  Wolverhampton,,  are  jmany  of 
them,  upon  this  account,  not  within  the  ftatute;  not  having  been 
fxercifed  in  England  before  the  5th  of  Elizabeth. 

In  France^  the  duration  of  apprenticefliips  is  different  in  dif- 
ferent towns  and  in  different  trades.  In  Paris,,  five  years  is  the 
■term  required  in  a  great  number;  but  before  any  perlbn  can  be 
qualified  to  exercife  the  trade  as  a  mafter,  he  mu0,  in  many  of 
them,  ferve  five  years  more  as  a  journeymari.  During  thjs  latter 
teroir  he  is  called  the  companion  of  his  mafter,  and  the  term  itfelf 
is  called  his  companionfhip. 

''In  Scotland  there  is  no  general  law  which  regulates  univeifally 
the  duration  of  apprenticefiiips.  The  term  is  different  in  different 
corporations.  Where  it  is  long, «  part  of  it  may  generriljr  be  redeemed 
by  paying  a  fmall  fine.  In  moft  towns  too  a  very  fmall  fine  16 
fufficient  to  purchaie  the  freedom  of  any  corporation.  The  wea^ 
vers  of  linen  and  hempen  cloth,  the  principal  m^ufadtu'res  ^ 
the  country,  as  well  as  all  other  artificers  iubfervient  to  th^m, 
wheel- makers,  reel-makers,  &c.  may  exerdie  thpir  trades  in  any 


♦I  .iv 


town 


'the  fWB>ALTi^^Of;5^TA^T40pjf^  ip 

pr^ccH4|»,evpi|  i»  fofne  Yi^fgr  i^^  |ji^4e?,  an4  in  general  iknow 
of  ao  C(Ow>j3rjE,ii|iJf;ifi^9|)^fn  ,1^^  i^Qt^xfif^  Iftws  arc  ib  Htds 

't'BE  pr^^brtjr  w!iic!i  every  mai^  Iia»Tn  his  cmnjjjioimrf  aait  19 
the  bri^hat  Ybundatibn  of  all  other  prppertjry,  i|3  it  is  ^he  ,mp^ 
fecrd  an^  invioljable.  1*he  j>ateimonv^  of  a  jpppr  jman  lic|s  in  tjie: 
fbrei^gtti  and  diexterlty  of  lus  ij^znd^y  ,ai^4  t^  hinder  ^  liiij^  ,^Vot^ 
employing  this  ftrength  and  dexterity  in  wKat  manner  he  thintu» 
proper  without  injury  to  his  neighbour^  is  a^lun  violation;  of  thia 
moK  facred  property.  It  i»  a  manifeft  encroadiiment  upcm  th» 
)uff 'lil^erty  bioth  of  the  workman^  and  of  thofe  who  mi^t ' bfr 
difpofed  to  employ  hin?.  As  it  hinders  the  one  horn  working  at 
what  he  thinks  proper,  fo  it  hinders  the  whcr  from  (employing; 
whom  they  tfufik'pcopen  HTo  judge  whether  l^e  is^  fit  to  be  em« 
ployed,  niat  lurriy  be  trufted  to'  the  difcretioit  of  die^m|d(^er» 
WMJIe  interetH^  it  fa  mikh  concerns.  The  affedted  anxiety  of  the 
law-giver  left  they  fhould  employ  an  improper  perfbn,.  is  evidentljf^ 
as  in^rtinent  as  it  is  oppreffivc  -d  ..n-t  ^vl  ix^jbV 

■      '  .  t.  I     t      -tx         jr\       •\' 

.,■■.■■  ■  llM-,,','         l(> 

Tub  inftitiition:  of  long  a^rentlce0up»  ^m  givs  nq  iecuj^tf 

that  infufficient  workmanihip  (hall  not  frequently  be  exp9{<d^~tQ»- 

pubKck  fale.     When  tliis  is  done  it  is  generally  the  efie(5t  of  frauds, 

andi  not  of  inability ',  and  the  longefl  apprenticeihip  can  give  no 

fcontity  againft^  fcaud.    Quite  diffi;xent  regulataons  tte  neeel£uy 

t!0  prevent  f  this  jabttf^.   iThe  fterling  mark  upon  plate^  and  thft 

ftamps  upon  linen  and  woollen  doth*  give  the  purchaier  much 

greater  fcciicity  tkan  any  ftatute  of  apprenticeflup.    He  generally^ 

tookt  aft  thcfoyt  but  never  thinks  it  worth  while  toencjuire  whetiicie) 

the  woifcmaii  itad ih:ved»  i'eyea  yc»ts  appregticeftiip*  inhx^^uia  Mh 

Thb 


I 


152 


THE  NATURE  AND  CAUSES  OF 


B- o-Q  K  T(RB  inftifeutioti  of  long  tipprcndoolhipi;  bu  no  tembncy  tio  form 
young  people 't6;i]idu(Vry.  >  >  A '  joamcyitiaft'  who>w«rk*  by  the  ]^Uee 
is  likely  to  be  mduftifioui>  becaofe  he'dcrii^et  tf  benefit  ii>dm  every 
exertion  of  his  induftty^  An  apprentii^ki  likely  to  be  idle^  and 
aimoft  always  i»' £>,  beew^k^ku-no  jnunediateinteieft  t^be 
otherwife*  In  the  inferior  employments,  the  iWeefs  of'lahdlu' 
confifl  altogether  in  the  cec^oipence  of  labour.  They  who  .|M:e 
^neft  in  a  condition  to  enjoy  the  fweets  of  it,  are  likely  fooneil:  to 
conceive  a  relifh  for  It,  and  to,  acquire  th^  surly  habit  Of  induftry^j  A 
young  man  naturally  iconceive^  anxavierfion  to  labour,  when; ii»r  a 
long  lime  he  receive^  no  benisfit  from  it^  >.  The  boys  who  are  put 
6nt  a{:(p]|%ntices  from^^ublick  charities  are  generally  boimd  for  JDlore' 
dian  the  ufua^  ni;MnbiBr  of  years,  and  they  generally  turn  <mt  very 
idle  and; worthlels.ijii  atji    vt"   n-t  ui  ivU/.-JCdiaji   !)JiJ0V'   uoiji,;.**' 

.  AppRENTice^HiPs  Were  altogether  unknown  to  the  untieuts. 
The  reciprocal  duties  of  mafter  and  apprentice  make  a  condderable 
article  in  every  modem  code.  The  Roman  law  is  perfectly  filent 
with  regard  to  them.  I  know  no  Greek  or  Latin  ^ird  (I  might 
venture,  I  believe,  to  affert  that  the«  is  hbiie)  wludh  iiicjprefles  the 
idea  we  now  annex  to  the  word  Apprentice,  a  fervant  bound  to 
work  at  a  particular  trade  for  the  benefit  of  i:  mailer,  during  a 
term  of  years,   upon  condition  that  die  maftdr  (hall  teach  him 


'iii.«. 


]|^t  trade. 

(  LoNo  apprenticefhips  are  altogether  unneceflary.  The  arts, 
which  are  much  fuperior  to  common  trades,  fuch  ,~is  thoie  of  making 
flocks;  and  wjUches,  contain  no  fuch  myftery  ar  to  require  a  long 
courie  of  inftru^tion.  The  firft  invention  of  fuch  beautiful  ma., 
cliines,  indeed,  and  even  that  of  fome  of  the  inftruments  employed 
in  making  them,  muft,  no  doubt,  have  been  the  work  of  deep 
thought  and  long  time,  and  may  juftly  be  conlidered  as  among  tne 
*   '  *  :-  '         '--  happieft 


ITHE    MHRALTHr  OP    N!A.moWfiJ 


»53 


fai^  irtvontedr  -and<^ai«  wett?  ^mderiQtoiOd,  to'explain  t9  ftny  ^«mg 
i^iuwty  io  thedompleatdtintanier; 'how  ta  apply  theinfh'uineilte  and 
l^w  ((yconftruft'tHcf  macfaiiMSi'cannot  well  t«quire  more  than  tiiH 
kflonsibf^artfeir  i'^veekri  <perhfe^silioft>^of 'a  few-Jidays  mig^t  b<l 
fufiiiidnil/>  Ititfve  commdn  nwehanick  trades,  thofe  of  a  few  days 
might  certahil^  be  fuffieicilt.  '  Tbe'deyteiity  of  hand,  indeed,  even 
in  c<bmm6ix^rade9;  cannbt  be  aeqvlh'ed  without  much  pra6tice  and 
expefklhdb^  But'ayoong  than '  would  ^pvadifbwiih  muchiinfoi*e 
diligence  and  !atiehtion^'£f  #om  thef:  beginning  he  wrought  as 
a  jofurneynlian,  being|)aid  in>ptv>]p6rtion  to  the  little  work  which  hi 
could  e?(Jeciite,  and  pffying'  in  his  turn  for  the  mateiials  whith  he 
mt^ht  Ibmetimos  fpotl  through  r  ukwardlidfs  and  inexperience.  His 
education  would  generally  in  this  way  be  more  efie£hial,  and 
always  lefs  tedious  and  expenftve.  The  mafter,  indeed,  would  be 
a^j^r,.^  H^  would  Ipfe  aU  the  wages  of  the  apprentice^  which  he 
i^^vy /j^Yfi?,  .fo|:,,,  (even  years  together.  In  the  ;^  cad.  peihapsj, 
the  ,^pp;]Qn^ce,  himfclf  would  be  a  lofer.  In  a  trade  fo  eafily  learnt 
h^y^jpi^ldi^xe  mprp  competitors,  and  his  wages,  «'heti  became 
to<pe,^icqrnp|fi?|lf,  workman,  wpuld  be  much  lefs  than  at  prefent. 
The  fa|i^  increafe  of  coiiipetition  would  reduce  the  profits  of  the 
mafters  as  wiell  as  the  wages  of  the  workmen.  The  trades,  the 
cr^fts»  y^  mjfftcriejt  would  all  be.  lolers.  But  the  public  would 
be  a  gidner,  the  work  of  all  artificers  coming  in  this  way,  much 
cheaper  to  market. 

^'rillris  toprcventthisfeduftionof  piice,  and  confequehtly  of  wa^s 
and  profit^';  by  reftrainin^  that' free  competition  which  would  moft 
certainly  occafion  it,  that  all  coi-porations,  and  the  greater  partof  cor- 
poration-laws, have  been  eftablilhed.'  In  order  to  ereft  a  corporation, 
no  Mother  authority  inintient  times  was  reqUifite  in  many  parts  of 
Europe;  but  tl)^  of  die  townlcorporate  in  which  it  was  eftablilhed. 
VctL.  I.  X  In 


'54 


THE    NATURE    AND    CA0SES' 


OF 


la  England,  indeedi^.  a  charter  from  the  kj^g  waslikewij^neceflary.. 
But  this  prerogative  of  the  crown  Teems  to  have  been  referved 
rather  for  extort!'.! 5  money  from  the  fubjeft,  than  for  th.e  deftuce 
of  the  common  liberty. agaiiill  f\ich  oppreflive  rno;i9polk3.  Upon, 
paying  a  fine  to  the  king,  thu  charter  ^ems  generally  to  have  been 
readily  granted ',  and  when  any  paxtipular  cla^  of  :\rtificer^  or  trai^^rs; 
thought  proper  to  ^t\  as..^  c^ri^ratji^n  v/lthout  a  chari-^r,  fuch 
adulterine  guilds,  as  they  ^wpi^e  called,, ;tyere  not  always  difkianchifed 
upon  that  account,  buf;  ohlig?4  .t<^,  .fing  annuf^ly  to  the  king  for 
pcrmiflion  to  exercife  their  ufvrped  privileges.  The  immecfiate 
infpi£lion  of  all  corporations,  and  Qi; the  bye-laws  which  they  mi^ht 
tlunk  proper  to  enaAiortiieir  own  gpyernpient,  bcJongetl  to  ti.". 
tc^uvn  corporat-  in  vihich  they  vi'erc  eftabliflied;  aiid  whatever  dif— 
eipllne  was  exerci'ed  t-ntr  tiicni,  proceeded  comfnonly,  not  from  the 
king,  but  from  thut  gieater  incorporation,  of  which thofe  fubordinate 
oies  were  only  pai  ts  or  members^. 


v» 


TtaE  government  of    towns  corporate  was  altogether  in  the 
hands  of  traders  and  attificers ;  and  it  was  the  manifeft  intereft  of 
every  particular  clafs  of  them,  to  prev|snt  the  market  from  being 
overflocked,  as  they  commonly  expreis  it,  with  their  own  particular 
:{]:ecies  of  induftryj.  which  !&  in  reality,  to  keep  it  always  under- 
(locked.    Each  cla{s  was  eager  tO'Cftablifh  regulations  proper  for 
this  purpofe,  and^  provided  it  was  allowed  to  do,  fo,  was  willing  to 
confent  that  every  other  clafs  fhoul(^.  do  the  fame.    In  confequence . 
of  fuch  regulations,  indeed,  eacb  clafs  was  obliged  to  buv  the  goo(j» . 
they  h^d  occafion  for  from  every  other  within  the  towi^  fomeWhat. 
de^enthan  they  otherwife  might- have  done.    But  in  recbmpence^ . 
they  were  enabled  to  fell  their  own  jufl  as  much  dearer ;  fp  Ifhat  i^ 
far  it  was  as  bread  as  long,  as  they  fay;  and  in  the  dealings  pjf^ 
different  claifes  within  the  town  with  one  another,  none  of  d>em 
ivere  lofers  by  thefe  regulations.    But  in  their  dealings  with  ths 

jj,^  ■  country 


THE    WEALTH    OF    NATIONS. 


155 


CQunUy  titey  werie  ,sm  greiit  gaifier^Si    and  in  thelib  latter  deal-  CHAP, 
ipgs  conCti^  ^he  ^h»U  tirade   which    fiippprts   and    enriches 


EvJiKV  it;o^,di:aws  its  iMfholefubrtiftenoe,  And  lUl  the  n^terials  of 
its  induftry,  from  the  country.  It  pays  for  thefe  chiefly  in  two 
ways:  fitfk,  by  fQndiuKg  ^|ck  to  the  cosufitry  a  part  of  thofe 
materials  wrought  up  and  manufa^red ;  in  which  cafe  thdr  price 
is  aujgment^  by  the  wages  of  the  Workmen^  and  the  profits  of  their 
mailers  or  immediate  employers :  fecondly,  by  fending  to  it  » 
part  both  of  the  rude  and  manufa6Vured  producb,  either  of  oth^r 
countries,  or  of  diflant  pants  of  the  i&ime  country,  imported  into /thse 
town;  -in  which  cafe  too  the  oiiginal  price  of  thofe  goods  k 
augmented  by  the  wages  of  the  carriers  or  fallors,  and  hy  the  pro- 
^V)  of  the  merchants  who  employ  them.  In  what  is  gained  upon  the 
iirfl  of  thofe  two  branches  of  commerce,  confifls  the  advantage 
which  the  town  makes  by  its  manufaflures  j  in  what  is  gained 
upon  the  fecond,  the  advantage  of  its  inland  and  foreign  trade. 
The  wages  of  the  workmen,  and  the  profits  of  their  different  em-, 
ployers,  m^dce  up  the  whole  of  what  is  gmned  upon  both.  What- 
ever regulations,  therefore,  tend  to  increafe  thofe  wages  and 
profits  beyond  what  they  otherwife  would  be,  tend  to  enable  the 
town  to  purchafe,  with  a  fmaller  quantity  of  its  labour,  the  pro- 
duce of  a  greater  quantity  of  the  labour  of  the  country.  They 
give  the  traders  and  artificers  in  the  town  an  advantage  «ver  the 
landlords,  farmers,  and  labourers  in  the  country,  and  break  down 
that  natural  equsility  which  would  otherwife  take  place  in  the 
commerce  which  is  carried  on  between  them.  The  whole  annual 
produce  of  the  labour  of  the  fbciety  is  annually  divided  between 
'thofe  two  different  fetts  of  people.  By  means  of  thofe  regiiIati<HN 
a  greater  fhare  of  it  is  given  to  the  inhabitants  of  the  town  than 
would  otherwife  fall  to  them;  and  a  lefs  to  thofe  of  the  country. 
*  X  2  The 


' 


c 
It 


15* 


THE  NATURE  AND  CAUSES  OF 

^ 

The  price  which  the  town  really  pays  for  tiie  prdvifions  and 
materials  annually  imported  into  it,  is  the  quantity  of  manufadtures 
and  other  goods  annually  exported  from  it.  The  dearer  the  latter 
are  fold,  the  cheaper  the  former  are  bought.  The  induftry  of  the 
town  becomes  more,  and  that  of  the  country  lefs  advantageous.    . 

That  the  ihduftiy  which  is  earned' on  tn  towns  is,  every  Where 
in  Europe,  more  advantageous  than  that  whkh  is  carried  on  in 
the  country,  without  entering  into  any  very  nice  computa^on^ 
we  may  iatisfy  ourfetves  by  one  verpfiqnpk  and  obvious  obfervation. 
In  every  country  (^  Europe  we  find,  at  lead;,  a  hundred  people  who 
have  acquired  great  fortunes  from  fmall  beginnings  by  trade  and 
manufa^ures,  the  induftry  which  properly  belongs  to  towns,  for 
one  who  has  done  fo  by  that  which  properly  belongs  tp  the  country, 
the  rufing  of  rude;  pro^uice  by  the  icnprovcment  and  cultivation  o^ 
land.  Induftry,  therefore,  mult  be  better  rewarded,  the  wages  of 
labour  and  the  profits  of  flock  mulV  evidenl:ly  be  gieater  in  the  one 
fitualion  than  in  the  other.  But  flock  and  labour  natm'ally  ieek  the 
mofl  advantageous  employment.  They  naturally,  therefore,  rdbit 
as  much  as  they  can  to  the  town»  and  defert  the  counti-y.  <£i«^>W 
^utl  i  .  ,..   •     .     i,  ;, 

Tub  inhabitants  of  a  town,  being  colle^ed  into  one  place,  can 
eafily  combine  together.  The  mofl  infignificant  trades  carried  on  in 
towns  have  accordingly,  in  forae  place  or  other,  been  incprriorated ; 
and  even  where  they  have  never  been  incorporated,  yet  the  corporation 
fpirit,  the  jealoufy  of  ftrangers,  the  averfion  to  take  apprentices, 
or  to  communicate  the  fecret  of  their  trade»  generally  prevail  in 
them,  and  often  teach  them,  by  voluntary  afTociations  and  agree- 
ments, vO  prevent  that  free  competition  whicli  they  cannot  pro- 
hibit by  bye-laws.  The  trades  which  employ  but  a  fmall  number 
of  hands,  run  mofl  eafily  into  fuch  combinations.  Half  a  dozen 
wool-combers  perhaps  are  necefTary  to  keep  a  thoufand  fpinners 

and 


f HE    WEALTH    OF    NATIONS. 


''ff 


arid  ¥itAitfi%t  ^rk.    By  combining  not  to  tsdce  apprentices  they   C  H^A  P. 
can  nbt  '6hty  engprofs  the  employment,  l)ut  reduce '  the  whole  manu- 
fa£hire  Int6  a  fort  of  flavery  to  themfelves,  and  raife  the  price 
of  theii'  labour  much  above  what  is  dUe  to  the  nature  of  their 

work. "  -'^'""'^^f  <?bf  ninuny  .j\j  i<.  ir.dt  Rna  .-aiom  ijtnoy.yj  xx)-.'^'. 


■A'    I'nifciVli 


•itjift. 


The  Inhabitants  of  the'  Country,  diSperf^  in  diftant  ptaces, 
cannot  eafily  eomlnne  together.  They  have  not  only  never  been 
incorporated,  but  the  corporation  fpirit  never  has  prevailed 
ambhg  them.'  No  appreriticefiiip  has  ever  been  thoiight  neceflary 
to  qualify  for  hufbandry,  the  great  trade  of  the  country.  After 
what  are  called  the  fine  arts,  and  the  liberal  proidHons^  however, 

'there  is  perhaps  no  trade  which  requires  fo  great  avarietybf  know- 
ledge and  ex{jejcidi<^e.    The  innumerable  volumes  which  have  been 

'written  upon  it  in  all  languages,  may  iatisfy  ui,  that  among  the 
wifeft  and  mbft  learned  nations,  it  has  never  been  regarded  as  a 
matter  very  eafily  underftood.  And  from  all  thofe  volumes  we 
ihail  in  vain  attempt  to  coUeft  that  knowledge  of  its  various  and 
complicated  operations,  which  is  commonly  pofiefTed  even  by  the 
common  farmer;  how  contemptuoufty  foever  the  very  contemptible 
authors  of  fome  of  them  may  fometimes  affeft  to  fpeak  of  him. 
There  is  fcarce  any  common  mechanick  trade,  on  the  contraiy,  of 
which  all  the  operations  may  not  be  as  compleatly  and  dillinf^Iy 
explained  in  a  jpamphlet  of  a  very  few  pages,  as  it  is  pofliblc  for 
words  illuftrated  by  figures  to  explain  them.  In  the  hiftory  of  the 
arts,  now  publilhtng  by  the  French  academy  of  fciences,  Icveral 
of  them  are  actually  explained  in  this  manner.  The  direftion  of 
operations,  befides,  which  muft  be  varied  with  every  change  of  the 
weather,  as  well  as  with  many  other  accidents,  requires  much  more 
judgement  and  difcretion,  than  that  of  thofe  which  are  always  the 
fame  or  very  nearly  the  fame. 

■  '"  T  NaT 


1$^ 


•THE    NATURE    AND    CAUSES    OF 


BOX^K     -Not  only  the  art  pf  tUc  fwracr,  the  genwal  dlrQiSUonof  the 
operations  of  huibandry,  but  many  inferior  branches  of  .cowntiy 
labour  require  xnudi  more  ikill  and  experience  than  the  ^eater 
part  of  mechanick  trades.    The  m^n  who  works  upon  brafs^  and 
iron,  works  with  inftruments  and  upon  materials  of  which  the 
temper  is  always  the  fame,  or  very  nearly  the  fame.    But  the  man 
ivho  ploughs  the  ground  with  a  team  of  horfes  or  oxen^  works 
with  inflruments  of  which  the  health,  (Irength,  and  temper  are 
Tery  different  upon  diffa'ent   occafions.     The  condition  o]^  the 
materials  which  he  works  upon  too  is  as  variable  as  that  of  the 
inftruments  which  he  works  with,  and  both  require  to  be  managed 
-v^ith  much  judgement  and  difci:etion.    The  common  ploughman, 
though  generally  regarded  as  the  pattern  of  ftupidity  and  ignorance, 
is  fcldom  defective  in  this  judgement  and  difcretion.    ,He  is.  lefs 
accuflomed,  indeed,  to  focial  intercourfe  th^n  the  mechanick  who 
lives  in  a  town.     His  voice  and  language  are  more  uncouth  and 
more  difficult  to  be  wnderftood  by  thofe  who  are  not  ufed  to  them. 
His  undcrftanding,  however,  being  accuftomed  to  confider  a  greater 
variety  of  objefts,  is  generally  much  fuperior  to  that  of  the  other, 
whofe  whole  attention  from  morning  till  niglit  is  commonly  oc- 
cupied in  performing  one  or  two  very  fimple  operations.     How 
much  the  lower  ranks  of  people  in  the  country  arc  really  fuperior 
to  thofe  of  the  town,  is  well  known  to  every  man  whom  either 
bufinefs  or  curiofity  has  led  to  converfe  much  with  both.     In  China 
and  Indoftan  accordingly  both  the  rank  and  the  wages  of  country 
labourers  are  faid  to  be  fuperior  to  thofe  of  the  greater  part  o£ 
artificers  and  manufa6lurers.     They  would  probably  be  fo  every 
where,  if  corporation  laws  and  the  corporation  (pirit  did  not  pre- 
^arent  it. 


The  fuperiority   which  the  induftry  of   the  towns  has  every 
•<where  in  Europe  over  that  of  thw  country,  is  not  altogether  owing 


'ii- 


to 


to  corporations  anci'  corpoMtioW  fews.  It  is  f\ipp6r^^  hf  matiy ' 
oilier  ^gulatibh^.  The  Mgh  dutites  tpon  fb^eigh  tiVsmufadtu^es 
and  uj>oh  all  goo^s  imported  by  alien  merchaTtts,  alt  tend  to  ihe 
fame  pur^oie.  dorporatidri  U^s  enable  the  inhabitants  of  towns 
to  raif^  their  prices,  without  feeing  to  be  under-fbld  by  the  free 
competition  of  their  own  countrymen.  Thofe  other  regulations 
fecure  t^em  equdfly  dgalnft  that  of  fomgne^s«  The  enhancement 
of  priic  dccalibhed  by  both  is  i\^ery  Where  fihalty  p^d  by  the 
lanalords,  farmers*  and  labourers  df  the  cbuntry,  who  have  feldom 
oppbie^  the  ellablifliment  of  futh  monopolies.  They  haive  com- 
monly neitker  iDclinatibh  hot-  fitnef^  to  enter  into  combinations  i  and 
tile  clamour  dhd  Ibphif^ry  of  merchants  and  manuikflurers  eafily 
perfuade  them  that-  th;  piivate  intereft  of  a  part,  and  of  a  fub- 
ordinate  part  of.  the  fociety,  is  the  general  intereft  of  the  whole.  > 

In  Great  Britain  the  fuperiority  of  the  ihduftry  of  the  towns 
over  that  of  the  couutiy,  feeims  to  hive  been  greater  formerly 
than  in  the  prefent  times.  The  wageis  of  country  labour  ap- 
proach nearer  to  thofe  of  manufafturing  labour,  and  the  profits 
of  ftock  employed  in  agriculture  to  thofe  of  trading  and  manu- 
faftuiing  ftock,  than  they  are  faid  to  have  done  in  the  laft  century, 
or  in  the  beginning  of  the  prefent.  This  change  may  be  regarded 
as  the  neceffary,  though  very  late  confequence  of  the  extraordinary 
encouragement  given  to  the  induftry  of  the  towns.  The  ftock  . 
accumulated  in  them  comes  in  time  to  be  fo  great,  that  it  can  no  > 
longer  be  employed  with  the  antient  profit  in  that  fpecies  of  in- 
duftry. which  is  peculiar  to  them.  That  induftry  has  its  limits 
like  every  other;  and  the  increafe  of  ftock,  by  increafing  the  c(Mn-  - 
petition,  neceffarily  reduces  the  profit.  Tl^  lowering  of  profit 
in  the  town  forces  out  ftock  to  the  country,  where,  by  creating  a 
new  demand  for  country  labour,  it  neceffarily  rajfes  its  wages.  It 
then  fpreads  itfcl/,  if  I  may  fay  fo,  over  the  face  of  the  land,  and  by 

being 


159 


BOQj^r  beingr employed  i^  agno^lturc  iiin.iMUt  reftorcd  tQ  tht  tOK^klry, 

at  tlw  expence  of  wl^ch,  in  a  great  meafure,  it  had  ori^pnally 

been  ,accumuUted  in  thie  town.    That  every  where  in  Europe  the 

greateft  improvements  of  the  country  luve  been  owing  to  fuch 

overflowings    of  the  flock  originally  accumulated  in  the  towns, 

I.fhaU  endeavour  to  fhow  hereaftcri  and  at  the  iiune  time. to de- 

monflrate*  ■  that  though  fbme  countries  have  by  this  courfe  attained^ 

to  a  con0derable  degree  of  opulence*  it  is  in  itfelf  neccfCirily.  flow»- 

unicei;tain,  li9l;>le  to  be  diilurbed  and  interrupted  by  innumenble. 

accidentsi  as;4  ^^  ^^T  refpe6l  contrary  to  the  Ofder  of  mature  and. 

of  re^on.     The  int^refls^  prejudicest  laws  and  cufloms  whicl^ 

have  given  occafion  to  it,  I  fhall  endeavour  to  explain  as  fully 

and  diflindly  as  I  (;ai^  in  the  tl^rd  and  fourth  hooks  of  thlK 

enquiry.  .  •- .   , 

,  PEOPI.B  of  thef^me  trade  fjbldom  meet  togethei',  even  for. 
merriment  and  dlverfion,  but  the  converfation  ends  in  a  confpiracy; 
agdinf^  ^he  publick,  or  in  fome  contrivance  to  raife  prices,  Jtiai, 
imppfTible  indc^  to  pre^qit  f^ch  meetings,  by  any  Uvr  whii;h;i 
either  coi^ld  be  executed,  or  would  be  confident  with  liberty  aind  j 
juftice.  But  though  the  law  cannot  hinder  people  of  the  fapiQ 
trade  from  fbmetimes  afTenjibling  together,  it  ought  to.  do  no-,, 
thing  to^f^cgitote^^f^^^^  lei^:^.^B^d5£  ^B' Mjil 

*^?-Sf)%  lie rri  ?ril  k.» -yawt  m  m5^,tooia^^         '    •''^■^y^fMtmlos 

.,_^  ,   ,_       ^      ■  .  -', ':■■■  -,.-.(  '•■  ;       •*»;>-•  iv-Mfi 

*  A  REGULATION  which  obliges  all  thofe  of  the  fame  tr<»dc  in 
a  particular  town  to  enter  their  names  and  places  of  abodcin  a- 
publick  regifler,    facilitates  fuch  afTcmblies.     It  connects  indivirr; 
duals  who  might  never  otherwife  be  known  to  one  another,  and,- 
gives  every    man  of  the  trade  a    diredlion  where  to  find  CVC17 
other  man  of  it,  .™  .   '  ,  ,  •  ■'fff';'^  4-f^ 


,'..ijii'jqmo5''tj/.^ 

A  RBGUI  ATIO^ 


THE    WEALTH    OP    NATIONS. 


161 


A  tt«OLATioM  which  entblct  thofe  of  the  fiune  tnitiotki  CHAP, 
themfeW«i  m  order  to  provide  for  their  poor,  their  ficfc.   their 
wi(k)wi  and  orphini,  by  giving  them  a  common  intereft  to  manage, 
renders  fuch  aflfemblies  neceffiny. 


■  pi  ■) 


fi 


Am  Incorporarionnot  only  renders  (hem  neceflary,  but  makes  the 
aft  of  the  majority  binding  upon  the  whole.  In  a  free  trade  an 
effe6lual  combination  cannot  be  eftablifiied  but  by  the  unanimous 
conftnt  of  every  fingle  member  of  it,  and  it  cannot  laft  longer  than 
every  fmgle  member  of  it  continues  of  the  fame  mind.  The 
majority  of  a  corporation  can  enaCf  a  bye-law  with  proper  penal- 
ties, which  will  limit  the  competition  more  effeftuaUy  and  more 
durably  thati  any  voluntary  combination  whatever.  'Mifh\ 

The  pretence  that  corporations  are  neceflhry  for  the  better 
government  of  the  trade,  is  without  any  foundation.  The  real 
and  eife£tual  difcipline  which'  is  exercrfed  over  a  workman,  is 
not  that  of  his  corporation,  but  that  of  his  cuftomers.  It  is  the 
fear  of  lofing  their  employment  which  reftrains  his  frauds  and 
correfls  his  negligence.  An  exclufive  corporation  necefliarily 
weakens  the  force  of  this  difcipline.  A  particular  fettoof  work- 
men muft  then  be  employed,  let  them  behave  well  or  ill.  It  is 
upon  this  account  that  in  many  large  incorporated  towns  no 
tolerable  workmen  are  to  be  found,  even  In  fome  of  the  mod  necef- 
fery  trades.  If  you  would  have  your  work  tolerably  executed, 
it  muft  be  done  in  the  fuburbs,  where  the  Workmen  having  no 
exclufive  privilege,  have  nothing  but  their  chara£ler  to  depend 
upon,  and  you  muft  then  fmuggle  it  into  the  town  as  well  as 
you  can.  '         m 


*  : 


It  is  in  this  manner  that  the  policy  of  Europe,  by  reftraining 
the  competition  in  fome  employments  to  a  fmaller  number  than 
.   Vol..  I.  Y  \         would 


IHl 


TH»    NATURB    AJ*^D    CAWE5    OP 


BOOK  wo«ld  Qthtmie  bf  5li4)o^  to  oBtMr  into  dwim  ocoafionfta  vikfjfr 
'    important  inequ»lit]r  bifthe  whidB'  of-  ibe  advantages,  andf  difiiik 
vantage  of  the  difforent  empioyaenta  oS  laiBODf  andi  flocks  ati  -j^ 

Secondly,  The  policy  of  Europe,  by  mcveafmg  the  compel 
lition  in  feme  eQipIoymenta  beyond  what  it  naturally  would  be^ 
Qc^ailons  another  inequality  of  an  oppofite  kind  in  tiie  whole  of 
th^  advantages  and  difadvant^fs  of  the  dil^iacent  employments  olS 


laboui;  and  toH«- 


I  i  1     *  1  «  I. !  1 1-      f 


Ai    Ir^      :K>rri 


.  It  has  been:  confidered  ais  of  £>  much  in^tortance  that  a  proper 
qium<ber  Qf.yovmgpeopk:  ihould  be  educated  for  certain  pfofef^ 
fions,  that,,  fomjstitnes  th«  publickK  and  fometiraes  the  pwiy>  of 
private  founders  have  eftabliihed  many  penfions,  fcholarfhip^  ex-- 
hibttians,,  buriaries*  4cc*  f^r  tl^ipuipoie,.  which  dranr  many-iqore 
people  into  thofe.  tradestthan  could  othtrwife  pretend  to  ifoUovgt; 
l^env  III  all  chfMtian  oowitries*  I  believe,  the  edueattoav  of  the 
gieater  part  of  chyr^hmea  is  paid  for  in  thir  manner.  V«cy  fern 
9^  th^  ace  e4u(;at6d  altoge^iev  at  their  owaexpence.  Tiiciong». 
tedions  and  expenfive  education,  thi?refore»  of  thole  who  aie,,wiU 
not  a)w^yj  procure  them,  a  fuitable  j%ward,  the  church  bong 
crowded' with  people  who,  in  order  to  get  employment,  are.wiHin^ 
to  accept  of  a  much  finaUeir  recompenfse  tha^  )ybair4ch  an  eda«- 
cation  would  otherwife  have  entitled  them  toj  and  in  tins  manner 
the  competition  of  the  poor  take^  away  the  reward  of ,  the  rich. 
It  would  be  indecent,  no  doubt,  to  compare  either  a  cuiate  or 
a  chaplain  with  a  journeyman  in  any  common  trade.  The  pay 
of  a  curate  or  chaplain,  however,  may  very  properly  be  conruler«4 
as  of  the  fame  nature  with  the  wages  of  a  journeyman.  They 
are,  all  three,  psud  for  their  work  according  to  the  contrafl  which 
they  may  happen  to  make  with  their  refpe^tive  fuperiors.  Till 
j^jter  the  ipiddle  of  th^  fourteenth  century^  five  merks,  containing 


•M-'* 


about 


^HE    WEALTH    OF    NATIOWS. 


W3 


«lffnit!»imiscli)iU»ttits  1(7^  pounds  of  oar  preibttt  imoti^t  was  in  GflAF, 
£n|;lanfll  the  ufiulpay  'of  a  ciuate  or  ftipendiaryipariih  prieft*  as 
we  find  it  equated  by  ihe  decrees  of  feveral  different  national 
councils.  At  the  fame  period  four^ence  a  day,  containing  the 
^feme  quantity  of-^lvttr  as  a  .fliilMng  of  t}ur  prefent  mcmey,  was 
'decldred  to  be  the  pdy  of  il  thcifter  ^afen,  and  three-pence  a  day, 
equal  to  nine-pence  of  burprefent  money,  that  of  a  journeyman 
mafon.  The  wages  of  both  thefe  labourers,  therefore,  fuppofing 
them  to  have  been  conftantly  employed,  were  much  fuperior  to 
thofe  of  the  curate.  The  wages  of  the  matter  mafon,  fuppofing 
him  to  have  been  without  employment  one-third  of  the  year« 
\irould  have  fully  equalled  them.  By  the  19th  of  Qiieen  Anne, 
c  12,  it  is  declared,  **  That  whereas  for  want  of  fufHcient  main- 
<f;  tenante  «nd  encouragement  to  curates,  ihe  cures  have  in  &veral 
'*  places  been  meanly  fupplied,  the  bifhop  is,  therefore,  empow- 
(«  cred  to  appoint  by  writing  under  his  hand  and  leal  a  fulHcient 
ifi  certain  ftipendor  allowance,  not  exceeding  fifty  and  ndt  lefs  than 
«'  twenty  potmds  a  year.*'  Forty  potmds  a  year  is  reckoned  at 
prefent  very  good  pay  for  a  curate,  and  notwithftanding  this  aft 
of  parliament,  there  are  many  curacies  under  twenty  pounds  a 
year.  There  are  journeymen  ftioe-makers  in  London  who  earn  forty 
pounds  a  year,  and  there  is  fcarce  an  induftrious  workman  of  any 
kmd  in  that  metropolis  who  does  not  earn  more  than  twenty.  This 
laft  fum  indeed  does  not  exceed  what  is  frequently  earned  by  com- 
mon labourers  in  many  country  pariflies.  Whenever  the  law  has 
iattempted  to  regulate  the  wages  of  workmen,  it  has  always  been, 
rather  to  lower  them  than  to  raife  them.  But  the  law  has  upon 
miny  occafions  attempted  ,to  raife  the  wages  of  curates,  and  for 
the  dignity  of  the  church,  to  oblige  the  reftors  of  parifhes  to 
give  them  more  than  the  wretched  maintenance  which  they  them- 
felves  might  be  willing  to  accept  of.  And  in  both  cafes  the  law 
ieems  to  have  been  equally  ineffeftual,  and  has  never  either  been 
d;   :^  Ya  '     f  able 


»  ' 


I 


.<64 


THE    NATURE    AND    CAUSES    OF 


fi  OiClK  able  to  rai&ithe  #agC8ro£  curates^  'or  to  fink  Aioik  of  kboumfS  to 
die  degree  that  was.  I  mtendfd;  becauTe  it  has  never  been  able  to 
^hinder  either  the  one  from  being  willing  to  accept  of  lefs  than  the 
legal  allowance,  on  account  of  the  indigence  of  their  iituation  and 
the multitiide  of  their  competitors;  or  the  other  from  receiving 
more,  on  account  of  the  contrary  competition  of  thoie  who  expected, 
to  derive  either  profit  or  pleafure  from  employing^  them..   . ;    -    - 

The  great  benefices  and  other  ecclefiaftical'  dignities  fdpport 
the  honour  of  the  church,  notwithftanding  the  mean  circum- 
ftances  of  fome  of  its  inferior  members.  The  reljje^-  paid  to  the 
profeflioh  too  makes  fome  compenfation  even  to  them  for  the  mean- 
nels  of  their  pecuniary  recompence.  In  England,  ar>d  in  all  Roman. 
Catholick  countries,  the  lottery  of  the  church  is  in  reality  much 
more  advantageous  than  is  neceflary.  The  example  of  the  churches 
of  Scotland,  of  Geneva,  and  of  feveral  other  proteftant  churches,, 
may  fatisfy  us  that  in  fo  creditable  a  profelfion,  in  which  education 
is  fo  eafily  procured,  the  hopes  of  much  more  moderate  benefices- 
will  draw  a  fufficient  number  of  learned,  decent  and,  refpe«Stable 
men  into  holy  orders.  <*- 

In  profeflions  in  which  there  arc  no  benefices,  fuch  as  law  and; 
phyfick,  if  an  equal  proportion  of  people  were  educated  at  tlie 
publick  expence,  the  competition  would  foon  be  fo  great,  as  to 
fink  very  much  their  pecuniary  reward.  It  might  then  not  be 
worth  any  man's  while  to  alncate  his  fon  to  either  of  thofe  pro- 
feflions at  his  own  expenoe.  Tlicy  would  be  entirely  abandoned 
to  fach  as  had  been  educated  by  thofe  publick  charities,  whofe 
numbers  and  neceffities  would  oblige  them  in  general  to  content 
themfclves  with  a  very  miferable  recompence,  to  the  entire  degra- 
«Ution  of  .fhe  now  refpedabLe  profeflions  of  law  and  phyfick. 

.    '  That 


THE    WEALTH    OF    Kh^TlOHifSi 


i»; 


^TwAiv' iaiprofyaeovis  race  of  men  commonly  dalfecb  mea  of  <3H^ap. 
letters,  are  pretty  much  in  the  iituation  which  lawyers  and  phyfi- 
«aans  probably  would  be  in  upon  the  foregoing  fuppofition^  In 
every  part  of  Europe  the  greater  part  of  them  have  been  educated 
forthechurdi,  but  have  been  hindered  by  different  reafons  from 
entering  into  holy  orders.  They  have  generally,  therefore,  been 
educated  at  the  publick  expence,  and  their  numbers  arc  every  where 
fb  great  as  commonly  to  reduce  the  price  of  their  labour  to  a  very 
paiajiy  recompence.  :_,M^^:i^fiio  hnn  z^non:>d   trrig   3i?T  ^ 

.  Before  the.mvention  of  the  art  of  prmtmg,  the  only  employ>- 
ment  by  which,  a  inan  of  letters  could  make  any  thing  by  his 
talents,  was-  that  of  a  publick  teacher,  or  by  communicating  to 
other  people  the  curious  and  ufeful  knowledge  which  he  hjid 
acquired  himfelf :  And  this  is  ftill  furely  a.  more  honourable,  a 
more  ufeful,  and  in  general  even  a  more  profitable  employment 
than  that  other  of  writing  for  a  bookfeller,  to  which  the  art  (tf 
printing  has  given  occafion.  The  time  and  ftudy,  the  genius, 
knowledge  and  application  requifite  to  qualify  an  eminent  teacher 
of  the  fciences,  are  at  leaft  equal  to  what  is  neceffary  for  the  greateft 
practitioners  in  law  and  phyfick.  But  the  ufual  reward  of  the  emi- 
nent teacher  bears  no  proportion  to  that  of  ihe  lawyer  or  phyfi*. 
cJan  J  becaufe  the  trade  of  the  one  is  crowHed  with  indigent  people, 
who  have  been  brought  up  to  it  at  the  p;:jlick  expence  j  whereas 
thofe  of  the  other  two  are  incumbered  with  very  few  who  have  not 
been  educated  at  their  own.  The  ui'ual  recompence,  however, 
of  publick  and  private  teachers,  {,v.?\[  as  it  may  appeal,  would 
undoubtedly  be  lefs  than  it  is,  if  the  competition  of  thofe  yet  more 
indigent  men  of  letters  who  write  for  bread  was  not  tal.en  out  of 
the  market.  Before  the  invention  of  the  art  of  printing,  a  fcholar 
and  a  beggar  feem  to  have  been  terms  veiy  nearly  fynonymous. 
The  different  governors  of  the  univerfities  before  that  time  appear 
to  have  often  granted  Ugenccs  to  their  fcho»ai"s  to  be^. 
^     W         ^  la- 


W 


.1  'i  I 


\  \: ' 


:Cd6 


THB   -NATURE    AKD    CAWSEt    OT 


fi 0€  IC  Ik  antkrit  times,  before  any  <:harItio  of  thi«  kind  had  bee»  efti* 
1:^^d  for  the  education  of  indigent  people  to  tlw  learned  ,pro|ie(^ 
iions,  the  rewards  of  eminent  teachers  appear  to  have  been  muck 
lAore  conilderable.  liberates*  in  what  i<s  called  his  difcom'fe  agunft 
<the  fophifts,  reproaches  the  teachers  of  his  own  times  with  incon- 
iiftency.  ■*'  They  make  the  moft  magnificent  promifes  to  thdi- 
Scholars,  fays  he,  and  undertake  to  teadi  them  to  be  wife,  to  be 
happy,  and  to  be  jufl,  and  in  return  for  fo  important  a  feivice 
they  ftipulate  the  paultry  reward  of  four  or  five  jnins.  They  who 
Uach  wifdom,  continues  he,  ought  certainly  to  be  wife  themfclves ; 
-biu  if  any  man  was  to  ftll  fuch  a  bargain  for  fuch  a  price,  he  would 
►be  ccnvifted  of  the  moft  evident  folly."  He  certainly  does  ndt 
•nean  hereto  exaggerate  the  reward,  and  we  may  be  affured  that 
it  was  not  Icfs  than  he  reprefents  it.  Four  minae  were  equal  to 
thirteen  pounds -fix  fhillings  and  eight  pence:  five  minse  to  fixteen 
pounds  thirteen  Mllings  and  four  pence.  Something  not  lefs 
than  the  largdt  of  thofc  two  fums,  therefore,  muft  at  that  time 
have  been  ufually  paid  to  the  moft  eminent  teachers  at  Athens. 
Ifocrateis  himlelf  demanded  ten  minse,  or  thirty-three  pounds  fix 
ihillings  and  eight  pence,  from  each  fcholar.  When  he  taught  at 
Athens,  he  is  faid  to  have  had  an  hundred  fcholars.  I  underftand 
this  to  be  the  number  whom  he  taught  at  one  time,  or  who  atterided 
what  we  would  call  one  courfp  of  leftures,  a  number  which  will 
not  appear  extraordinary  from  fo  great  a  city  to  fo  famous  a  teacher, 
who  taught  too  what  was  at  that  time  the  r  a\  fafliionable  of 
all  fciences,  rhetorick.  He  muft  have  made,  therefore,  by  each 
courfe  of  le£lures,  a  thoufand  minae,  or  3333/.  6x.  8 </.  A  thou- 
fand  min»»  accordingly,  is  faid  by  Plutarch  in  another  place,  to 
have  been  his  Didadlron  or  ufual  price  of  teaching.  Many  other 
eminent  teachers  in  thofe  times  appear  to  have  acquired  great  for- 
tunes. Goigias  made  a  prefent  to  the  temple  of  Delphi  of  his  o^vn 
ftatue  in  folid  gold«     We  muft  uot»   I  prefume,  fHppoic  that  it 

'  was 


THE    WEALTH    OF    NATIONS* 


hSy^ 


large  •»  the  life.    His  wfty  of  Imng,  as  wctt  as  that  of  chap. 
jftppias  and  Prota^ras,    two  other  eminent  teacliers  of  thofe 
times,    is  reprefented  by  Plato  as  fplendid  even  to  oftentation* 
Plato  himfelf  is  faid  to  have  lived  with  a  good  deal  of  magnificence. 
Ariftotle,  aft«r  having  been  tutor  to  Alexaader  aad  mod  munifi- 
cently rewarded,  as  it  >&  univeriaJly  agreed,  both  by  him  and  his 
fatlier  Philip,  thought  it  worth  while,  notwithftanding,  to  return 
to  Athens,  in  order,  to  refume  the  teaching  of  his  ichool..   Teachers^ 
of  the  fciences  were  probably  in  thofe  times  lefs  common  than  they 
came  to  be  in  an  age  or  two  afterwards,  when  the  competition 
had  probably  fomewhat  reduced  both  ihe  piicc  of  their  labom-  and 
the  admiration  for  their  perfons.     The  moft  eminent  of  them, 
however,  appear  always  to  have  enjoyed  .a  degree  of  confideration  • 
much  fuperior  to  any  of  the  like  profeflion  in  the  prefent  timeSr- 
The  Athenians  fent  Carneades  the  academick,  and  Diogenes  the 
Aoick,  upon  a  folemn  embafly  to  Rome  -,  and  though  their  city  had ; 
then  declined  from  its  former  grandeur,  it  was  flill  an  independent 
and  confiderable  republick.     Carneades  too  was  a  Babylonian  by 
birth,  and  as  there  never  was  a  people  more  jealous  of  admitting 
foreigners  to  publick  offices  than  the  Athenians*  their  confideration . 
for  him  muft  have  been  very  great* 

I   This  inequality  is  upon  the  whole,  perhaps,  rather  advantageous 
■than  hurtful  to  the  publick. .  It  may  fomdVvhat  degrade  the  profef- 
fion  of  a  publick  teacher  j  but  the  cheapnefs  of  literary  education  is 
forely  an  advantage  which  greatly  over- balances  this  triflmg  incon-- 
veniency.     The  puWick  too  might  derive  ftill  greater  benefit  from  i 
it,  if  the  conftitution  of  thofe  fchools  and  colleges,  in  which  educa-  - 
tion  is  carried  on,  was  more  reafonable  than  it  is  at  prefent  through 
the  greater  part  of  Europe. 


fsfi-S  ni 


I    1  ."}*lf  s  t  111  ;^ 


^   Thirdly,  The  policy  of  Europe,  by  obftru6Hng  th«  free  circw-  • 
UtioB  of  labour  and  (lock  botl|i  in^mj^ypltxyjpmXio  employment 

'?>»  am 


',\- 1 


and 


s68  THE    NATURE    AN,D    CAU$ES    Of 

BOOK  and  from  place  to  (49ce,  oecafions  in  fome  cafi»  a  very,  iin«<>avc4 
nient  inequaUty  in  the /whole  of  the  adya^tag<»  and  dUM 
^j;  i^k  different  c|i!iploymen!t?vif{<|8  "to  rttu^nf\  "$41  'yrjnfhi  iKnhr 

.-;The  ftatuteof  apprenticeihip  obftru^ts  the  free  ciiisuktM»«f 
labour  from  one  employment  to  another,  even  in  the  £ime  place. 
The  exclufive  privileges  of  corporations  obftriift  it  frwn  one  place 
to  another,  even  in  the  fame  employment.  ^ntq  -irtt  noqit 

It  frequently  hapi^ens  t]>at  while  high  wages  are  given  to^he 
workmen  in  one  manufatSture,   thofe  in  another  arc  obliged  to 
4.ontent  themfelves  with  bare  fubfiftence.     The  one  is  in  an  ad- 
vancing flate,  and  has,  therefore,   a  continual  demand  for  new 
hands:   The  other  is  in  ?  declining  ftate,  and  thefuper'>abundianGe 
-^f  hands  is,  contuiually  increafiug.    Thole  two  manuia6tui«s  may 
sometimes  be  in  the  fame  town,  and  fometimes  in  the  fame  neigh- 
bourhood, without  being  able  to  lend  the  leaft  afliftance  to  one 
another.     The  ftatute  of  apprenticeHiip  may  oppofe  it  in  the  <»ie 
cafe,  and  both  that  and  an  exclufive  corporation  in  the  other.     In 
many  diffei'ent  manafadures,  however,  the  operations  are  fo  nmch 
alike,  that  the  workmen  could  eafily  change  trades  with  one  an- 
other^ if  thofe  abfurd  laws  did  not  hinder  them.     The  arts  of 
weaving  plain  linen  and  jxlain  filk,  for  example,  are  almoii;  entirely 
the  Cime.     That  of  weaving  plain  woollen  is  fomewhat  different ; 
]but  the  difference  is  fo  infigniiicant  that  either  a  linen  or  a  filk 
weaver  ni^ht  become  a  tolerable  workman  in  a  very  few  days.    If 
any  cif  thofe  three  capital  manufactures,  therefore,  were  decaying, 
the  workmen  might  fnd  a  refource  in  one  of  the  other  two  whkh 
Mras  in  a  more  profperous  condition  j  ?  d  their  wages  would  neither 
rife  too  high  in  the  thriving,  nor  fink  too  low  in  the  decayiilg  manu- 
fafture.     The  linen  manufadure  indeed  is,    in  England,   by  a 
particular  itatute,  open  to  eveiy  body ;  but  as  it  is  not  much  cul- 
-    .  .     ,  tivated 


m 


dffttetl  through  the  grcatei-  part  of  the  coiktry,  it(!aii  attbrd  iio 
geiMrai  rdburoe  to  the  workmen  of  other  decaying  manufaftures, 
who,  wherever  the  ftatute  of  apprsnticefhip  takes  place,  have  rio 
other  choice  but  either  to  come  upon  the  parifli,  or  to  work  as 
eomMMfk  lltboiirers,  f«r  which,  1>y  theSr  bibit^^  they  ai-e  miich  worfe 
qatlified  than  for  any  fort  of  manufd^ure  that  bears  any  refem- 
blance  to  theii  own.  They  generally*  therefore,  chufe  to  comt 
upon  the  parilh.     '         h*t9rftY^>rqfttd  i5«*8>  ^ift  m  tm'^  .isrfloftK  o'? 

'^1  Whatever  obftrufts  the  free  circulation  of  labour  from  bnc 
employment  to  another,  obftru£ts  that  of  ftock  likewife ;  the  quan- 
tity of  ftock  which  can  be  employed  in  any  branch  of  bufinefs 
depending  very  much  upon  that  of  labour  which  can  be  employed 
in  it.  €orpo!ration  laws,  however,  give  lefs  obftmdtibn  to  thi 
free  circulation  of  ftock  from  one  place  to  another  than  to  that  of 
^abour.  It  is  every  where  much  eafier  for  a  wealthy  merchant  to 
obtain  the  privilege  of  trading  in  a  town  coiporate,  than  for  a 
l^oor  artificer  to  obtain  that  of  working  in  it.  :  ; ;  l  :.:uuai; 
.-:  1  i.ar:  ifH*  fhod  hnu  ,^ljr) 

The  obftruftion  which  corporation  laws  give  to  the  free  circu- 
lation of  labour  is  common,  I  believe,  to  every  part  of  Europe. 
That  whidi  is  given  to  it  by  the  poor  laws,  fo  far  as  I  know,  is 
peculiar  to  England.  It  confifts  m  the  difficulty  which  a  poor  man 
finds  in  obtaining  a  fcttlement,  or  even  in  being  allowed  to  exercile 
his  induftiy  in  any  p:iii(h  but  that  to  which  he  Iselongs.  It  is  the 
labour  oi  artificers  and  manufa6lurers  only  of  which  the  free  cir- 
culation is  ob'ftrudted  by  corporation  laws.  The  difficulty  of 
obtaining  fettlements  obftrufts  even  that  of  common  labour.  It 
may  be  worth  while  to  give  forae  account  of  the  rife,  progrefs,  and 
prefent  ftate  of  this  diforder,  the  greateft  |)€ft!aps  of  any  in  the 
police  of  England.  »« »  » 


;ii,' 


M  ll 


if. 


Vol.  h 


m 


"When 


170 


THE    NATURE    AND    CAUSES     OF 


When  by  the  dslfa'uftion  of  monafteries  the  poor  had  been 
deprived  of  the  charity  of  tliofe  religious  houfes,  after  fome  other 
inefteClual  attempts  foi'  their  relief,  it  was  enadVed  by  the  43d  of 
Elizabeth,  c.  z,  that  every  parifh  ihouid  be  bound  to  provide  for 
its  own  poor;  and  tiiat  overfeers  of  the  poor  fliould  be  annvfally 
appointed,  who,  with  the  churchwardens,  fhould  raife  by  a  paiiib 
rate,  competent  fums, for  this  purpofe.  .  y.   .wt,   . 

By  this  ftatute  the  ncceflity  of  proviling  for  their  own  poor 
was  indifpenfibly  impofed  upon  every  parifli.  Who  were  to.  be 
confidered  as  the  poor  of  each  parifli,  therefore,  became  a  queftiou 
of  fome  importance.  This  queftion,  after  fome  variation,  was  at 
lafl  determined  by  the  13th  and  i4t,h.  of  Charles  II.  when  it  was 
enafted  that  forty  days  undifturbed.  relldence  ihould  gain  any 
perfon  a  fettlement  in  any  parifli  i  but  that  within  that  time  it 
fliould  be  lawful  for  two  juftices  of  the  peace,  upon  complaint 
made  by  the  church-waidens  or.  overfeers  of  the  poor,  to  .r2move 
any  new  inhabitant  to  the  parifli  where. he.  was  kfl:  legally  fettled  j 
vmlels  he  either  rented  a  tenement  of  ten  pounds  a  year,  or  could 
give  fuch  fecurity  for  the  difcharge  of  the  parifh  where  he  was  then, 
living,  as  thofe  juftices  fliould  judge  fufficient. 

Some  frauds,  it  is  faid,  were  committed  in  confequence  of  this 
ftatut«  J  parifli  officers  fometimes  bribing,  their  own  poor  to  go 
clandeftinely  to  another  parifh,  and  by  keeping  themfelves  con- 
cealed for  forty  days  to  gain  a  fettlement  there,  to  the  difcharge  of 
that  to  which  they  properly  belonged.  It  was  cnafted,  therefore, 
by  the  ift  of  James  II.  that  the  forty  days  undifturbed  refidence  of 
any  perfon  necciTary  to  gain  a  fettlement,  fliould  be  accounted  only 
from  the  time  of  his  delivering  notice  in  writing,  of  the  place  of 
his  abode  and  the  number  of  his  family,  to  one  of  the  church* 
wardens  or  overfeers  of  the  parifli  where  he  came  to  dwell. 


iUi4- 


(t* ' 


But 


THE    WEALTH    OF    NATIONS. 


«7« 


toBvT  parilh  officers,!  it  feemsj  were  not  always  more  honeft  with  C  HA  P. 
regard  to  their  own,  than  they  had  been  with  regard  to  other 
parifhes,  and  fometimes  connived  at  fuch  intrufions,  receiving  the 
notice,  and  taking  no  proper  fteps  in  confequence  of  it.  As  every 
perfon  in  a  parifli,  therefore,  was  fuppofed  to  have  an  intereft  to 
prevent  a&  much  as  poflible  their  being  burdened  by  fuch  intruders, 
it  was  further  enabled  by  the  3d  of  William  III,  that  the  forty 
days  refidencc  fhould  be  accounted  only  from  the  publicat'on  of 
fuch  notice  in  writing  on  Sunday  in  the  church  immediately  after 
divine  fcrvice.    .         , .  , 


— ir!+:   riH'-r"' -'•:' 


*n  -jfv 


-^^  1 1*  hfFt/."- 


«( 


<( 


T  <«  After  all,  fays  Doftor  Burn,  this  kind  of  fcttlement,  by 
♦*  continuing  forty  days  after  publication  of  notice  in  writing,  is 
f*  very  feldom  obtained ;  and  the  defign  of  the  a£ts  is  not  fo  much 
for  gaining  of  fettlements,  as  for  the  avoiding  of  them,  by 
perfons  cotping  into  a  parifli  dandeftinely :  for  the  giving  of 
'*  notice  is  only  putting  a  force  upon  the  parifli  to  remove.  But 
*'  if  a  perfon's  fituation  is  fuch,  that  it  is  doubtful  whether  he  is 
**  a^ually  removeable  or  not,  he  fliall  by  giving  of  notice  compel 
•*  the  parifli  either  to  allow  him  a  fcttlement  uncontefted,  by  fuf- 
'•  fering  him  to  continue  forty  days;  or,  by  removing  him,  to  tiy  , 
*'  the  right." 

Tbts  ftatute,  therefore,  rendered  it  almofl:  imprafticable  for  %. 
poor  man  to  gain  a  new  fcttlement  in  the  old  way,  by  forty  days 
inhabitancy.  But  that  it  might  not  appear  to  preclude  altogether 
the  common  people  of  one  parifli  from  ever  efliablifliing  themfelves 
with  fecurity  in  another,  it  appointed  four  other  ways  by  which  a 
fcttlement  might  be  gained  without  any  notice  delivered  or  pub- 
liflied.  The  firft  was,  by  being  taxed  to  parifli  rates  and  paying 
them;  the  fecond,  by  being  elected  into  an  annual  pvirifli  office  and 
ferving  in  it  a  year;  the  third,  by  ferving  an  apprenticefliip  in  the 
^— ,    -,-  2  2  paiifli; 


»••  /> 


J7* 


THE  NATURE  AND  CAUSES  OP 


p*riifli;   the  fourth,  by  being  hired  into  fervice  there  for  a  year, 
and  continuing  in  the  i.   ic  fci-vicc  during  the  whole  of  it.  tjjfflt  vstlj 

■  Nobody  can  gain  a  ftttlcment  by  cither  of  the  two  firft  ways, 
but  by  the  publkk  deed  of  the  whole  parifli,  who  are  t6o  wcH 
aware  of  the  confequences  to  adopt  any  new  comer  who  has  nothing 
but  his  labour  to  fupport  him,  either  by  taxing  him  to  parifh  ratfes, 
or  byelefting  him  iiito  a  parilh  office.  '^- 


■U^^  -4  ■, 


■IL, 


No  married  man  can  well  gain  any  fettlement  in  either  of  the 
two  laft  ways.  .  An  apprentice  is  fcarce  ever  married,  and  it  is 
exprcfly  enafled,  that  no  married  fervant  fhall  gain  any  fettlement 
by  being  hired  for  a  year.  The  principal  efFeft  of  introducing 
fettlement  by  fervice,  has  been  to  put  out  in  a  great  meafure  the 
old  faftiion  of  hiring  for  a  year,  which  before  had  been  fo  cuftomary 
in  England,  that  even  at  this  day,  if  no  particular  term  is  agreed 
upon,  the  law  intends  that  every  fervant  is  hired  for  a  year.  But 
maftcrs  are  not  alwiys  willing  to  give  their  fervants  a  fettlement  by 
hiring  them  in  th\5i  i-naanerj  artd  fervants  are-not  always  willing  to 
be  fo  hired,  beet  aJe  an  every  laft  fettlement  difcharges  all  tlie  fore- 
going, they  migi  t  thereby  lofe  their  original  fettlement  in  the 

places  of  their  nativity,    the  habitation  of  their  parents  and. re- 
1  t'ons      '"'  ''"'  ''"''  ■'^^'"■''    "■-^iMii-i.^^'^  ii,^,i^w.  5;j  ^^tu..  ■    ur^.a 


.tr:' 


iijii 


No  independent  workman,  it  is  evident,  whether  labourer  or, 
artificer,  is  likely  to  gain  any  new  fettlement  either  by  apprentice- 
Ihip  or  by  fervice.  When  fuch  a  p  ;rfon,  therefore,  carried  his  in- 
duftry  to  a  new  parifh,  he  was  liable  to  be  removed,  how  healthy 
and  induftrious  foever,  at  the  caprice  of  any  churchwarden  or 
overfeer,  unlefi  he  either  rented  a  tenement  of  ten  pounds  a  year, . 
a  thing  impoflible  for  one  who  has  nothing  but  his  labour  to  live 
by;  or  could  give  fuch  fecurity  for  the  difcharge  of  the  parifh  as 
4  two 


THE    WBALTH    OF    NATIONS. 


^72 


two  juAic«8  cf  the  peace  fliouM  judge  iuflicient.  Whflt  ftonrtty  CHAP. 
they  (hall  require,  indeed,  is  left  altogether  to  their  difcretion;  but 
they  cannot  well  require  lefs  than  thirty  pounds,  it  having^  been 
enacted*  that  th^  purchafe  even  of  a  freehold  eftate  of  leis  than 
thirty  pottinds  value,  fliallnot  gain  any  perfpn  a  fettlement,  as  not 
beipg  fujficient  for  the  difcharge  of  the  parifli.  But  this  is  a  fe- 
outity  whiqh  fcarce  any  man  who. lives  by  laboux'  can  give;  aud 
TOUch  greatq;  ftciwity  is  frequency  tlfrnaiide.c^ ,   .  ,       .„ 

In  order  to  reftorc  in  fome  ^rcecircjjlation  of  labour 

which  thofe  different  ftatutcs,  h;  .ntircly  taken  away,  the 

ioventipn  of  certificates  was  fallci.  u^on.     By  the  8th  and  9th  of 
WilliainJII*  it  was  eitaftcd,  that  if  any  pcrfon  Ihoold  bring  a  certi- 
ficate from  the  parifli  where  he  was  laft  legally  fettled,  fubfcribed 
by  th^  churchwardens  and  overfcers  of  the  poor,  and  allowed  by 
two  juftices  of  the  peace,  that  every,  other  parifh  fliould  be  obliged 
to  receive  hinJi.tliat  he  fhould  not  be  removable  merely  upon  ac- 
count of  hi?  beji^g  likely  to  become  chargeable,  but  only  upon, 
his  becoming  actually  chajgeable,  and  that  then  the  parifli  which 
granted  the  certificate  fliould  be  obliged  to  pay  the  expence  both . 
of  his  maintenance  and  of  his  removal.    And  in  order  to  give  the 
moft  perfeft  fecurity  to  the  parifh  wherr  fuch  certificated  man 
fliould  come  to  rcfide,  it  was  further  enafted  by  the  fame  ftatute,, 
that  he  fli  uld  gain  no  fettlement  there  by  any  means  whatever,, 
except  either  by  renting  a  tenement  of  ten  pounds  a  year,  or  by 
fcrving  upon  his  own  account  in  an  annual  parifli  office  for  one 
whole  year  J  and  confeqacntly  neither  by  notice,  nor  by  fervice,^ 
nor  by  apprcnticcftiip,  nor  by  paying  parifli  rates..   By  the  12th; 
of  Queen  Anne  too,  fl:at.  i.  c.  18.  it  was  further  enafted,  that, 
neither  the  fervants  nor  apprentices  of  fuch  certificated  man  fliould 
gain  any  (ettloment  in  the  parifli  where  he  refidcd  under  fiich  cer*- 
tificate. 

How 


ftil 

*l  V  TBI 


'fr    .i 


<^. 


,V  ^nO-^ 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


^\^. 


1.0 


1.1 


I^|2j8    |25 
Lw    12.0 


lit 

lU      I 

u 

■yuu 


i 

III 
nnll 


L25  ill  1.4 


1.6 


FhotogFaphic 

Sdeoces 

Corporation 


23  WIST  MAIN  STREIT 

WnSTM.N.Y.  M5M 

(716)872-4303 


■ss 


\ 


iV 


\ 


\ 


4^. 


'<««L 


^.  <i 


\ 


>- 


4f    ' 


^ 


'7* 


THE.  NA.TJURE(  .ANJ>.  CAUSES    OF 


,B^yr  fai;  ^his  iny^ion  i^W)  rflftQi;ed;ithat(fiy:ec  QircaUitiiim  of 
labour  wliich,  the  proceeding  ilatutes  hadifllmoft  entirely  ;itakeii 
away,  we  way  learn  .from  the;  followang  very  judicimns  ob&r^ 
vation  of  Do^orBum.-  «?lt  19  obvious^!  fays  hcv  thftbthersuafe 
**  divers  good  reafons  for  requiring  certificatei  with  perlbtls<  coni4 
"  ing  to  fettle  in  any  place;  namely,  that  perfons  refiding  under 
**  them  can  gain  no  fettlcment,  neither  by  apprenticefhip^  non  by 
**  Ibrvice,  nor  by  giving  notice^  nor  t^  paying  parifh  rate&i  that 
*'  they  can  fettle  neither  apprentices  nor  fervants;  that, if  they 
"  become  chaFgeali)le,  it  is  certainly  known  whither  r-ta^eipove 
**  them,  and  the  parilh  fiiall  be  paid  Ibif  the  reiaoiyfll»  andi  for 
**  their  maintenance  in  the  mean  time f  and  that  if  thefjr.fhUffifck* 
**  and  caimot  be  removed,  the  parifh  which  gav«  tho'certiiicfite 
**  mufl  maintain  them:  None  of  all  wluch  can  be  without  aicer*- 
**  tificate.  Which  reafons  will  hold  proportionably  fonp^riihos 
«*  not  granting  certificates  in  ordinary  c^esj  for  it  is  fariWQfci 
*'  than  an  equal  chance,  but  that  theywill  hkve  the  certificated 
*'  perfons  again,  and  in  a  worfe  cbndition  '*  ThemionUof  ithla 
observation  feems  to  be,  that  eertificsltek  «(ighft' sil^«ys>to'ibe*r«i^ 
quired  by  the  parifh  where  any  pobr  man  eotties  to  refide,  4!nd 
that  they  ought  very  felddm  to  be  granted  by  that  which  he  proi? 
poles  to  leave.  *'  There  is  fomewhat  6f  hardfliip  in  this  matter 
"  of  certificates,"  fays  the.  fame  very  intelligent  author  in  his 
Hiftoryof  the  poor  laws,  •*  by  putting  it  in  the  powef  of  a  pariflt^ 
"  officer,  to  iuiprifon  a  man  as  it  were  for  li#?i  however  inconii' 
'*  venient  it  may  be  for  him  to  continue  at  that  place  where  he 
'*  has  had  the  misfortune  to  acquire  what  is  called  a  lettlemoit,  ot 
**  whatevei'  advantage  he  may  propofe  to  himfelf  by  living  elfeiJ' 
•*  where."  *' 


Though  a  certificate  carries  along  with  it  no  teftimonial  of 
good  behaviouj',  and  certifies  nothing  but  that  the  perlbn  belongs* 


to 


THE    W^EALTH    OF    NATlOPTS. 


'I75 


to  the  p^ik  to^hich'  he  really  does  belong,  it  19  altogetfier  dif-  ^^J^  ^• 
cretlOnai^  in  the  parifli  <rfHcers  either  to  grant  or  to  refufe  it.     A 
mandamus  was  once  moved  for,  fa^s  Do£tor  Bui^n,  to  compel  the 
churchwardens  and  overfeers  to  fign  a  certificate;  but  the  court  of 
King'S'Bench  rejedied  die  motion  as  a  very  ftrange  attempts 

^-Th«  very  unequal  price  of  labour  which  we  frequently  find  in- 
England' in  places  at*  no  gi^eat  diftance  from  one  another,  is  pro« 
bably  towing  to  the  obftru€tion  Which  the  law  of  fettlements  gives 
tKy^rjpoor  man^  who  would^  carry'  his'  indiiftryfh>m  one  parifh  to 
another  without  a  ceitifieate'.  A  fingle  man,  indeed,  who  is  healthy 
andiiiiduftribus,  may  fometimesf  refide  by  fufferance  without  one; 
hut)  a  man  with  a  wife  and  iamily  who  fhould  attempt  to  do  fo, 
would  in  nioft  pariflies  be  fure  of  being  removed,  and  if  the  fingl& 
man  (hould  afterwards  marry,  he  would  generally  be  removed 
lakewifew  The  fcai^ity  of  hands  in  one  parifh,  therefore,  canfnot 
alwaysi  be.  odievediiby  their  fiiper-abundanee  in  another,  as  it  is 
conftantly  in  Scotland,  and,  I  believe,,  in  all  other  countries  where 
there  istno  difilculty  fd.  fettlemeut.  In  fuch  countries,  though 
w^es  may.  fometim^s  rife  a  little  in  the  ndghbourhood  of  a  great 
town,  or  wbprever  eUe  tliece  is  an  extraordinary  demand  for  la« 
bour,  and  fink  gradually- as  the  diftance  from  fueh  places  increafes; 
till  they  fall' back  to  the. common  rate  of  the  country;  yet  we  never 
meet  with  thoie.  fudden  and  unaccountable  differences  in  the  wages 
of  neighbouring. plaqes.  which  we  fometimes  find  in  England,  where 
it  is  often  more  difficult  for  a  poor  man  to  pafs  the  artificial  boun* 
dary  of  a  parifh,  than  an  arm  of  the  fca  or  a  ridge  of  high 
mountains, .  natural  boundaries,  which  fometimes  feparate  very .di- 
ftin£tly  different  rates  of  wag':s  in- other  countries.  ^ 


To. remove  a  man  who  has  committed  no  mifdemeanour  from 
the.parifh  wthere  h&  chufes  to  refide,  is  ane.vident  violation  of  na« 

turali 


Xy6 


THE    NATURE    AND    CAUSES    OF 


fi  p  O  K  tural  liberty  ain4  ju^ice.  yhfi  commpn  >p^lfr«f  |£vgland,  how- 
ever, fo  jtaloHs  pf  tjiar  ,1tbet:Qr^<)>iit  Ukfitlus  ironunan  ipsdplt  o( 
moft  otber  countries  nprer  rJgh^y-  iMPxderftaocU^ ,  wImtwI)  it ocwih 
itfts,  have  no^  ff^r  vfion  tii^^^  i^plt,n^  pg^  thcMi* 

felye?  to  be  ^xpofed  t9  Jft*^  ojjpn^i^fl^  |V\#ff^t  H  mwMjr*  i .  ^ifamfagh 
men,  of  reflexion  top  h^)^  fon^^jt;^9f^  jQjMnjrt^npd-off.jtl^itfewvotif 
fettlements  as  a  pvibUfl,  .^i^?Vjaj|^08i  y^l^.M' ^§« j^viy  ^l^c^nuthe 
object  of  ai]fy  gei|ieral,pop^Cjjj<^<w>V,;  f*»fK..§8ftftlwfi  tffAu^ 
jrcncr^  waprant^,  ^R;  |*wfijfe^j)ra^p!i?^idoMl^fi% 
a  on^  as  wajj  ^  J^Iy  %fP|Cj5j^n;.,^y.  dsaei^irtCfftMOrailK 
There  wfcarc^  j^^o^i^jji^  ^  .^Hg]Lin^,|C|f  fo^|r9MS  «f  ngfyil 
will  y^nturjB  .to  fay,  v^ho.i!^  iHit  In  (fpqiffart c^^  hirlifdifdh 
himf^lf .  moft  Gruffly,  <^prBlJ;  bjr.ilbiB ,411  ,«o»t|ivo(i  flawiof  &tlteM 

•"•f.rr.n  r^:^1■rT^   r  'cilrn'r   ^::f'/'   nirrr^"  r.  ftf^Ht  oMom  avip  o*  tor 

k  sVA^LConduae^ilo^gchapttw^Hh^^c^ 
andently  it  wa?  ufaal tor^e  wag;es,  i^'byf«ii0Fal'l«ws  elitieikiinif 
over  the'  whole  kingdoin,  and  afterwards  by  '^aflicuklt.ordeai'of 
t!hc  jq^des  of  |ieace  m  ,^^  c«v^^,,|i0th^ei«(.prac- 

trces^ave  now  gone  k^if^y  iqto  ^Jifuile, ;  V\  By  ^iDlt'^xjttlcnce'  of 
**  above  four  hondred  fears,  fays  Doi^or  $urrt>  -itfceois  tinieto 
**  lay  afide  all  endeavours  to  bring  under  "  '£t  rsgatations,  whftt 
«*  in  its  own  natune  feems  incapable  of  ute  limitation :  for 
"  if  all  perfons  in  the  fame  kind  pf  work  were  to  receive  equal ; 
•*  wages,  there  would  be  no  emulation,  and  no  room  left  for  in- 
«'  duftrytir  ingttiuity." 


i'y' 


l»ARTicuLAR  afts  of  parliament,  however,  ftill  attempt  fome- » 
times  to  regulate  Vvagcs  in  pafticular  trades  and  m  particular  jilaces. 
Thus  the  8th  of  George  III.  prohibits  under  heavy  penalties  all . 
matter  tailors  in  London,  and  five  miles  round  it,  from  giving, ; 
and  Aeir  workmen  from  accepting,  teore  thtn  tv?o  lhiUiB|;t  .and 


m n  i  W=K A>L  t  tt ■'  O  t'^  W'!a^  o W*/ 


^i^ 


fntftsrt.    ^htoi-thtf  itgulatfort/  tlifi^  in  favour  of  th<^' 

wi9|lRiian»iH9'«tiHiys  jUfU'iihd^^teai;  "hkk isTohletimes ottier*' 
Wife  ^min^fgtfim^P'm  mmf^!''^th^i  die  /siw  whkh  oblig^      ^ 
thcl  mtifttf^  ki  ^ftVertil  diffeltftt  tiier<!^s'  td  pay  tf'^r  wtxrlciiien  in  mdf 
rafp^tad  11^  irt'go6ct^,'  19  "q^lt^  )uilr '^d i'^ulfabler    R  impoles  hc^ 
ytidfllafMupti{M»h^th6  mafte;    Itbtlty^^^^^       thdi^  to  p^ay'tliaf" 
valmtin  niendy^' Wl&cli  H^y  ^cIMd^'  td'^iy,  Mt  di^  not.i^waW 
really;; pay,  itt  goods.    This  litr  is  in  fdvoxit  6f  the  workmen;. 
fcdliKtifath  ofi  G<e«i^*]II^is  ih  ftivohi'  ttf  thr'm^cre';  'AVHen 
mafttrs  ^nbin^  Ibgeifier^  m  bkid^  tor  itdtice  ti^^  Wa^es  of '  ^ei^^ 
workmen,,  they  commonly  enter  into  a  private  bond  or  agreement^ 
not  to  ^ve  more  than  a  certsun  wage  under  a  certain  penalty. 
W9rmili«'«fOrk|iiay  t^.  ciHer  hHb  ii  i^Hb-jitf^cdiMfatii'^ib'dh'  (^f'tfie 
^^kbtd;  «Dt>t«»8ee^ cirtf ^eHiai%i!^'iik^d^'y;c(^h^^ena^^^^ 
thokwt>WDiild'pilirt(h  them  Very  fiwerefy;  *t34^'Ji'd^tirnpartiallvi 
hh^wopia^litei4''«he<ihttfiets"^ii  ttliftii^'^m  i^eM of 

Qeovge^U,  eitf(Urees!  by  la#''^t  vtty'  w^gbfetidA  V^^ 
fometimes  attetn^t  td^Aablifli  %  fiich  combinations.    TTiecora-  . 
plMfttof  th^  n^ol^mcii,  that  it  puts  the  ableft  aiid  moJi  indfu*^ 
ftridus^  upon'  the  fime  footing  With  an  drdinafy  Workman,;  leems; 
pdisftiftlywdl founded;-'  ^"^^  ^*^  ^"''^  -'•""^'  "■*''^  "^  Bauii-Hi  lit  u  - 
-nt  lot  J^^i  icr<A>i  on  hm  ^no'^ihluin^  on  od  bliio*t  jji^'t  <2i3i.w  ** 

Im  antient  times  too  it  was  ufual  to  attempt  to  regulate  the 
profits  of  merchants  and  other  dealers,  by  rating  the  price  both  qF 
pro^t^rii  and  other  goods.  The  afTize  of  breiid  is,,  fo  far  as  I 
kiwSi^^^'^hfe'  'bdljr  relmnant  of  thi^  antiictit  ufag&  Where  there  is 
aii'txdttfiVe  corporation,  it  may  perhaps  be  proper  ^o  regulate  ^e 
price  c&  the  firft  neccffary  of  life.  But  where  theb  is  nbhe,'  tie 
competititt^  Win  regufatc  it  inudi  bctttr -ih^  • 

Yot^  I.  A  a  methodi 


4>t 


THE    HATV Rffi))  AND ;  /C AUS E5  i  W 


.n  A  hi  D 


BO^OK   method  of  fixing  the  aflize  of  bread  eftabliflied  by  the  31ft  of 
George  II.  could  not  be  >  put  in  pra6Hce4n  Scotland,  on  account 
of  a  defeat  in  the  law j  its  execution  depending  upon  the  office  of 
clerk  of  the  market,  which  does  not^xift  there.  This  defe6t  was  not 
remedied  till  the  3d  of  George,  ^11, ,  The  waj^t  of  ai^  f|(Qz^oc-. 
k    cafioned  no  fenfible  incoanveniencyv  andtthe.efi:aibUih9\ent^,9f  ^tf, 
in  the  few  plaoea  where  it  has  yet  taken  pUcCj  hsu  prx)4uoe4  ,s^o 
fenfible  advantage.    In  the  greater  part  of  the  to>ynft  9f  St^tl^^l, 
-however,  there,  is  '^ii!  incxiirpQraition  ^f;  )Hik«i?  w,ho.claLq(ij959^%c 
privilegea,  though  tl>ey  ?ur?  n(?l;  very  fkriaiy  gfiardqd^  .,4,  ^jrOfmut 
iUiv^   i,?»ij'j;sjo4  .ni)'tJKiiwti'<aii3rmJTftrti  Tidfo  f>nfi  3b:rR;)  arfj  ?,/tiR^ 
2i<rTirE  .proportion  between  th?  difierent  ral;^s  b^th.of  jy;^  ^1)4 
profit  in  the  different  employnjents  of  labpm; ,  ^^  i^f¥^i ,  ,(<f?jWP 
«Qt.to.  be  much  flge^ed,  a?  hM,^^iIy,fwf>rP¥^'^«d»,^,^l^p,,f|j^^ 
or  poverty,  the  advancing,  ftati^n^p  ^idfi(;liflg»jg|(|!j^9g<pf  ji^efq^jj^^ 
Siich  revolutions  in  the  publick  welfare,  ilxaagj^t^^y^^i^p^t^g^ff^ 
rates  both  of  wages  and  profit,  mi^  Mi%  end.a^^,th?n>,95i^^lj^^ 
all  differcnlj employments.  -Theprpipprtiop bftj^^f^ thj^pp, tjjf;;?^!;?^ 
4nuft  reodain  the  famci,  and  cjwftpt  ^4^  b(?,  a^fiil>tftfiteft%jj^iy 
ix»6derabl»,tamf,.  by joy.fij^  r^/rf^  ^..^^.^    ,vttlBiodil 

fcnt;    iuoinofj.  eirfi  oci|j   ^?(  -.jhrlwamol    k>    ^(ftoon  ntiri  ?MBm\ 

llylmtfl  uiomoj  oj  lu  .^iom  JEflv/a/not  ^r.q  of  a^ifinabfii;  rn/ri  aajlsrn. 
ai  jlDofl  ^nim'ifi^  ^o  ajitoiq  (iBnihio  arft  rjRrfj  abl  tjulwomol  dJiwr 
biiiohiino?  3d  Hifi  /nm  /ov^wori  .norfioq  ?MT     .hoorhmd dyi^bn  ^dr    , 
lllmmm  3X  If .ilj^feff  .Jpl^ifiafj  adt  .aQ^.bftBrio  jf^?.  UimfM  Jrit-e* 
V  *33iLQd.Jmi.iiofa  3xlj  ioi.hli/cMit  h/ul  iiirfj  inBa/A.  \ 


tHM    'W'UAUTH    OF    NATIONS, 


379 


to  (li>  3ilJ   s((l   fmflildiiii'j   |j£oifl    10  3\i|ie  3flj  jjiuxft  Ho.  hcilJorr-    >l  O  O  fl 
/liWo^DB  iro   ,J)nhlJo:)rf,/(OK'^;P;  -ij^l^d  jon  bhun  .11  gjfjbsx)    v.^^ 

Thf^'j^f,  WfM^fed'^aS  thi^i5rf&'>aa  W'tlie  ufe  of  land;fe   ^?^^* 
Jry*Viitiiart[l^'t!^'%hdft^*vftieh^^t^  cart  afford  to  pay  in  the 

^oriff 'di^Utnfhnees^^  6f  tfheiland.^  It«  adjuftin^  the  terms  of  tlie 
lii^e^.'the  kn<Ua^d  ehdbdVoars  ito  leave  him  lio  greater  (hare  of  the 
l^imbi  iMi ivhkt  h'fiitffibihit  t6  ktiep  up'  the  ftock  irom  which  he 
furnifhes  the  ^cl>  '^i^k'  thie  labour  ftnd  |mrd)iafel)  atid^nmiiv- 
tains  the  cattle  and  other  inftruments  of  hulbandry,  together  with 
^t  bi^harjrpfMts  of  fah^^  ftddk  in  the  neighbourhood.  This  is 
SMntifm  fiih^li(iflriha!re  <«7lth'ivhi<:h  the  tenant  din  content  himfelf 

^6^^  ^•i/i^ifi^&^rt' '6f  the  prod^d>^»or,  iv*»t  i*  tha  faflia.thing, 
i^Mij^iii^'^V^  it^^^^  is  b^i<  and  abim  thtsiaiara,  he-naturally 
^idi^iiii/!'tt^'iM^/tb hi&^lBlf ^yib ^^^^  fcnt iof  Ms  landy i which. is 
«Vl&ntt^  m^'W^m'  ^htf  ttih^iit  ''&n   'ftflW  i'tft'^pay  in'  the 
"k^^uit^  ftwliifeftariiii''  of '  'tht  ^Wttd.  '   Sometitnei,    in«teed,'!  the 
liberality,    more  friequetittj^'^iSi^rignorincei' of    the    landlord,, 
makes  him  accept   of   fbmewhat-  le£i  dian  this   portion;    and 
fometimes  too,  though  more  rarely,-  the  ignorance  of  the  tenant 
makes  him  undertake  to  pay  fomewhat  more,  or  to  content. himfelf 
with  fomewhat  lefs  than  the  ordinary  profits  of  farming  ftock  im 
the  neighbourhood.    This  portion,  however,  may  ftill  be  confidered: 
as  the  natural  rent  of  land,  or  the  rent  for  which  it  is  naturally, 
meant  that  land  fhould  for  the  moft.  part  be.  lett.. 


The  rent  of  land,  it  may  be  thought,  is  frequently  no  more: 
than  a  reafonabk  profit  or  inteieft  for  die  ftocklaidout.by  the  land- 
lord upon  its  improvementi    This,  no  doubt,  may  be  partly  the 
caifi  upon  fome  occafionsj  for  it  can  fcarceever  be  more  than  partly 

Aaa  the. 


ft9o 


m^B' 'NATURE    AND    CAUSES    OF 


tlvtf  t^fe.  The  1«ndk>rd  demands  a  rent  rren  for  unimproved  land, 
and  the  fuppofed  intercft  or  profit  tipcnl  the  expence  of  improvement 
is  generally  an  addition  to  this  original  rent.  Thofe  improvements, 
beffdes,  are  not  always  mdde  by  the  ftock  of  the  landlord,  butfome- 
times  by  that  of  the  tenant.  When  the  leafe  comes  to  be  renewed, 
however,  the  landlord  commonly  demands  the  fame  angmentation 
of  rent,  as  if  they  had  been  all  made  by  his  own* 


Hi  fometimes  demands  rent  for  what  is  altogether  ihcapable  of 
human  improvement.  Kelp  is  a  (pecles  of  Tea-weed,  which^  when 
burnt,  yields  an  alkaline  fait,  ufefiil  for  inaking  glafs;  (bap,  toad 
for  leveral  other  puqxifes.  It  grows  in  feveral  parts  of  Qreat 
Britsun,  particularly  in  Scotiahd,  upon  fucfi  rocks'only  as  ^e  within 
the  high  water  made,  which  are  twice  eyeiy  d^ay  covered' '^^'tke 
fea,  and  of  which  the  produce,  therc£>re.  Was  nev«^1iili^iyieAt!ed 
by  bujaaan  induftry.  The  landlord,  however,  wJiofe  eidate'  is 
bounded  by  akdp  (bore  of  this  kind,  ddnands  a  rent  tot  it  as  much 
is  for  his  com  ficWs.  .     .k.(  ;:..„.  ^ 

.  Tub  fea  in  the  n«ighbo«lHXKi  9^  tba  iflapds  of  Shetlafid  is  .more 
4^n. commonly  abuodaat  iafifh,  ivhich  make  a  great  part  of  the  Tub- 

,.  fiAettce  «f  their  infaaUiimts.  But  in  order  to  profitby  the  produce  of 

,  the^tCTi  thty  muil  hAV«>  a  Mntation  upon  the  neighbouring  land. 
Tbc  cull  df  the  landlord  \s  in  propoition,  not  to  what  the  larmer 

„  can  make  by  the  land,  but  to  ^ndut  he,  can  make  both  by  the  land 
and  ^  water.  It  is  partly,  paid  in  fea  fifli »  and  one  of  the  very 
few  inftances  in  which,  rent  qiakss  a  part  of  the  price  of  that  com- 
modity, is  to  be  found  in  that  country.  ^ 

T»s  r«nt  of  landt  thereford,  eonfiderftd  as  the  pri««  paid  for 
the  ufe  of  tSie  land,  is  naturally  a  monopoly  price,  k  is  not  at  all 
pro^«rdkHiQd  to  ^vhat  the  htudfoM  may  htva  lakl  out  upoit- the 

^»^  improvement 


THE    WEALTH    OF    NATIONS. 


c1t%l 


improvement  of  the  Itnd,  or  t9  what  he  can  afford  to<take»ibut  to  C  H  ArPi. 
what  the  farmer  can  afford  to  give.    ..)  w  .»u»M.rt  !*f.  '-^^iA  ,,fi  huA ' 
.7in'itm\ir'.Giiit  i'  (.<...  r,   ,.;   -.tn',-.^..!- 

SvQH  parts  only  of  the  prpduce  o(  lan4  ipan  cor^moifiy  V 
brought  to  market  of  which  the  onUnary  pr^e,  ia  iufficient  tp  rcjplace 
the  ftock  which  muft  be  employed  in  bringing  them  thither,  together 
with  its  ordinary  profits.  If  the  ordinary  price  is  more  than  this,  the 
furplus  part  of  it  will  naturally  go  to  the  rent  of  the  land.  If  it  is 
not  more,  though  the  commodity  may  be  brought  to  market,  it  can 
affoi-d  no  rent  to  the  landlord.  Whether  the  price  is.  or  is  not 
more,  depends  upon  the  demand.      '        ,   ,,  /, 

,!^..0  tV-  ^•:-.   y-  -.    .         .•'•.':-'    -  •'....     :•! 

.>  Thbub  are  fome  parts  of  the  produce  of  land  for  which  the 

^eoiandmuft  always  be  fuck  as  to  afford  a  greater  pnce^  than  what 

is  Sufficient  to  bring  them  to  market  i  an^  tliere  i^re  dthers  for 

which  it  jsither  may  or  may  not  be  fiich  as  to  afforil  this  greater 

price.    Thp  former  muft  always  afford  a  ren^  to  ^'landlord. 

The  latter  fometimes  may»  and  fbmetimes  mdy  not,  according  to 

diflSerent  circumftances. 

R^i^Tj  it  b  to  b9  obferved»  therefore,  vnters  into  !d)e  compo- 
fition  of  the  price  of  comn^ties  Jn  A  diflbrottt  wi^  ^rmd  wages 
arid  profit.  High  dr  low  wages  arid  profit,  ai^e  the  canfes  bf  high 
or  k>w  price  »  high  ortaiw  rent  is  ^  diSea  t^it.  It Is  beidlriHe^gh 
Qftow  w«g0e  and  prdfit  muit  be  puu^  In  order  to  bring  a'par&Ailar 
commodity  to  market^  tbat  its  price  h  hi|^  or  low.  Btitltis  be- 
ctafe  itsf  rice  Ls  hi^  or  tow  i  a  great  deal  nsore,  or  rery  Htde  mbce, 
or  no  more»  than  what  is  ibffident  to  pay  thofe  -vi^i^  iad 
profit,  that  it  affoiids  a  bi^  rtnt,  or  a  low  rent,  or  no  reat 
at  all.  ^ 

TvB .particular.icanfidfiration,  ,Mk»  pf  Mk  B^i^  of ^  firpduce 
of  Und  which  ahivays  afford  ioxKreol:;  ftcpndJy,  ^^  thoie  >whi<:h 

fometimes 


%u 


THE    NAttRE    Al^b    cXlT^ES    OF 

fom^times  ihajr  kn^'lbmdiihes  may  not  i^hl  itol;  tua,  tUbSlfl 
dt  the  variations  which,  in  the  diflEeitnt  periods  of  impnWdheht; 
naturally  take  place,  in  the  nhitive  value  of  tho^  tWo  (fiffi^renlt  fbrts 
of  rode  pioduce;  ^h^rt  icompared ' boith  Witli  one' kitothlrf-,  ^d '\Wth 
numiiifaAv^ed  ioitimbditit^;' Will"  diir^de'^^is  cha^  'iht()''tK^ 
t^artS      '•JK^P'i'  ^i**  C'l^i  '<■('  -i^^  ,;*i«a^  to  inluwn  vjilsi^  i»  ztuu 

^.  ,    -     ,        -_      .     ,.  ,jjJo  tuo  kjrusJaj'iun  rJ  iium 
O/toe  Produce  of  Land  wotco  always  affords  Renti. 


AS  men,  like  adl  other  animals^  naturally;  multijily  inpnoportion^ 
^  to  the  meamstof  liuir  ihbfiftcsce,'  foadtia  aiimysiiimainjoclbii^ 
aiiidemand^i  Iticad  aiwayafaiiBhafe  or  command  ilgreatalorJwiflllif 
quantity  )io£  l^xniTyrpndiiimeiBodyjcaaiJidwaijFsi  becibtodnivtoiii 
willing  to  do'lanietfaing  in  order tof.obtam  ifiLi  -  Tliciiquantityxlal' 
labour*  Indeed^: which  item  purduTeiiift  notahn9s;e<)iial;tOiwii8t 
it  could  maintuB»>;  if  managed]  liniithe  moft  sepnoriufcab  v^mstuttf 
on  account  oit  thti  hightwa^lvvlikkiaivifemetitiieargiwlai^ 
But  it  can  ^  ollvayik  |aischa&  ibch  1 9i  >  qiilantilTi  of:  ikbouBi  as  Jtti  tait< 
mainddn^  «ibcdvcbi% to difrrateiat whidiftfaatifiNtoflaboiir  ircomit) 
Aionly  maintpned  ffl  thc'neig^bQiU!hood.i-M  \it>A\  iDrl^Irl  v^WAmv'^  -'i 

-jcl  JUj/ii  pioi'iivrlj  ,<,jl(j.wl  toiliiiiufut  ;;nft  )<,  noil.ocjo'Kj  ii)IIwri; 
BoT  Itod,  in  almoft  any  fituatibn^  prod(ieekc>f^inter(qiiit|titif  • 
of  food  ^han  what  is  fufficient  to  maintain  all  the  kibour  neceflSuy 
for  bringing  it  i  to  market,  ia  t^,  moft  liberal  way  in,  wh^i  that 
labour  is.ibver  maintuned.  The  furplus  too  is  always  nioi;e ^laat 
fu^(^qit  4p  repl^  the  ^9<^yrhich  employed  that  la)bipi^^  ^f^fSf^ 

with^ts  pro^,,,  ^?P:q#?«;*t'^ff<?«ff  ^mn-.  fBFf^f^^^^fm- 

l^;j^jjg^jf^,/or  cattW  of  which  the  mitk  and  die  increa^  are 
■      '  '  "  4,  always. 


ni^^;^fll^,pf,^ci^  pwUnary,  prp^t  tot^ 

ifr^j^OT,  or.pwncr  of  .the  herd  or  flocVii-  but  to  afford  Jonpkf  fmal| 
r^t  tp.^e  landlpfd.  The  rei^  mcrcjUes^n  proppirtion  to  the  goodf 
ncfU^ol'.^e  paftuftt.  ThcAiis^e  extent  o^,gi:Qun4  not  only  nmr 
tains  a  greater  number  of  cattle,  but  as  they  are  brought  within 
a  finaller  compafs,  lefs  labour  becomes  requiiite  to  tend  them,  and 
to  collect  their  produce.  The  landlord  gains  both  ways ;  by  the  in- 
creafe  of  the  produce,  and  by  the  diminution  of  the  labour  which 
muft  be  maintained  out  of  it..    ,     ,      ,  .        ,    c.    ,   ,,, 

.Tii^^Rpt  of  land'  varies  with  its  fertility^  whatever  be  its  pip« 
duce,iJkndimthitS'iUuatbii,^  whatcvcnbeitS'fenilh]!.'  Land  in  the 
arigUbknurhoadi^f.  iitown^  gives  lAigreajtcvTeUt  ikaniand  leqiiaUy 
fenik/inlaidiftant  pwt<d£the.eoantiry»  Thin^hitmiiy  ooftcioimoiiB 
labour  toqul^ite  the  one  than  the  other,  it  muft  always  coft  more 
to iibringithr  piodace<<of  thc^idiAiuHi  land>toviiiarktt«  .  lA  greater 
quantiiytotf  labour^ ^erefore^iimulb b4[(  maintained  ont  of  ik:|..and 
the<filst>l>n>iftniprJidiich«ja:«dcawik^botj^.  the  profit  of  the  farmer 
and  the  jentnof  tih»  landlord^  muft  'be  dimhuAned;  -  But  j  in  remoM 
pacts  of  thei«duntrythe<ratc  of  profit*  as<has  already  been  ffaown^ 
is  generally  higher  than  in  the  ndghbourliood  of  a  large  towi|..i  A 
fmaller  proportion  of  this  diminilhed  furplus,  therefore,  muft  be* 
lengifiOjtlorlBiii^ordv'iJt^o-iq  jtotieum  yc^'*  ilojni^.  lu  ^uati  i^nl 

('it.\hoM  hiOi\n\  "diii  lit  itffij/iiBjrr,  ot 'MfmorttiA  ^iif-f{/;^  iifeiirhooiV 

'  itiobi)  roads,  canals,  and  rtavigable  rivers,  by  dimli^rfltlng''the 
eitjpi^hce  of  carriage,  put  tlie  remote  parts  of  the  country  riibre 
ildiriy^upoh  1^  level  With  thofe  in  the  neighbourhood  of  the  toWk 
They  are  upon  that  account  the  greateft  of  all  improvement^.  Tlt^f 
encourage  the  cultivation  of  the  remote,  which  muft  alWdys  bb  the 
moftextenfive  circle  of  the  country.  They  are  advantageous  to 
the  tow!n/ by  breaking  down  the  monopoly  of  the  country  in 'its 

neighbourhoods 


?fj 


W 


ram  Hhiv 


io 


iU 


r^M  >r^AWR^O  AH»    aMWES'  ^Cf 


tiinfa  coiuiti>   Jhpt^  ihiiy  MitmdM«»  Ibmt  rM  «0mmoditMitkii^ 

old  miirket,  .^n^  qgm  mwj  nfw  iwiikoNvtti  'm  pw^ace,^  >  >  IMi»« 
po)>,  mi^A  k )«  iim^^  ifieniif  to  0>^*nfmmamu  vil^di cmi 

univerikl  noiQpciition  ^hieh  foKmfmy'M^i^hmti'w^mU  td 
it  for  the  fake  of  i^6e£coeit.  It  it  not  iMortihtt  fifty ^viri  ago 
thft  ibme  of  the  ooontka  in  the  ne^hbourfcdoA  of  lAtnion^  peci« 
(ipne^  thf  pwlifMnent  ngidiift  tfi0  extenfian  *  mS'  Him  mn^kk  mtH 
it^tp  %  refi^r  fl9u<iUfS4i  Thof^MMKr  eattniieife 'they  ^* 
t(^(Ufly  fr/QO),  t^O/chaiynflrt  of  labo«r,  would  be  -able  t»<eU,their^ 
grail  and  ;C(^  cha^pci  in  the  Loridhm  nfrkirii  thiii>dnalU(ii^ 
and  wojuld  t^iei^)  reduce  thdr  iwts  an4  Hdn^their'  cwlifcraiiMii 
Tyf.i;9^^..hMmWr>lnm<ftU^         t>rt».eMliMiiiii»iM>  twmt 

.   >     .tittuJ  k 

A  CORN  fidd  of  moderate  fertility  pfodoeee  t  much  gnaUt 
quantity  o|f  (pod  foe  muv  than  the  bdi  pd|<^,fft/tya),nimt> 
Tkott|(h  Itt'^yatidoiwiu^ty^aMMh  Mwstl^oaitf  jn^llip  iiiffMii»^ 
which  f«mai*t  after  n^aciag  iIm  iM  ai^l  JMdn«aiiikig,f|l  IM^ 
kbottr,  if  likemfe  jsitMh  greater.  If  a  pound  «f  biiM^er|^,iiifai^, 
therefore,  was  nfycr,  iiippoied  to  be  worth  out  than  a,  po^fad  ,9K 
bread,  thie  grea^  Attplm  W9^1d-  averj  wheer.  be  of  giia^r.  i|ine». 
and  coni^^  n  gpater  ^ond  hptk  for  the.fiii|«  of  ||t|  4i|R^ps 
and  the  tent  pi  ^e  laqdlord., ,  It  ic^oms.  ^  have  dona  lb  uniiffffiilljp 
in  tte  rude  h^ginpinp  c<«^^  ^,^,  «.^  ,,,5^^^    . 

BvT  tike  telMhw  vihUi  «f  r^olb  two  diftriM  iJMiat^ftiMl; 
bread  aa4  b«Miv't^ineM!>  aiarf^y  diftnnt  ill  thpdiliMp^ 
•I  i^gpienkwe.    fai  in  rude  ieginninfir  <lhe  uninpvofeA  wilds 
which  then  occupy  the  far  gkeat«r  pari  of  Um  countrf,  aai  alt 
abaaionad  le  tattle.    There  is  aK>i«  hiilflkcr'tHneat  fha»hnad^ 

7  pad 


THE    WBALTH    OP    NATIONS. 


lii 


tnd  WeMlr(tlMitfart,  b  ilM food  for  which  there  te  thf  greiteft  ^^f  ^' 
cu«yeiiliwir  mm^  which  conftquently  brings  the  g^tateft  price. 
At  Bulnoe  AyiWi  w«  ve  tok  bjr  Ulloa,  four  reab,  one  and 
twm»f  fm\C9  htAtpmnf  ftcrliai,  mtm,  forty  or  fifty  yetn  ago/  th« 
QiJliUfytpwte  of  moi^  ohoftn  irom  ■  heitl  «f  two  or  three  hun- 
dndw '  Hi  %•  AOlkiiig '  of  the  price  of  bi>itd,  probably  becaufe  he 
fownd  Aothing  remarkabla  about  it.  An  ox  there,  he  fays,  cofta 
litda.mora  than  the  hibour  of  catching  him.  But  corn  can  no 
wheve  be  faiM  without  a  great  deal  of  labour^  and  m  a  country 
wbit^  ^.upentlie  river  Hate,  at  that  time  thedireft  road  from 
Europe  to. the  filrer  mines. of  Potofi»  the  money  price  of  labour 
could  nat.  be  vary  cheap.  It  ii  otherwife  when'  cuhifation  is  ex* 
tended  oeer  the  greater  part  of  the  country  i  There  is  then  mor^. 
bnid  liuh  .hmchaa'e'meat.  The  competition  changes  its  dSredkMi, 
and  the  price  of  butcher's-meat  becomes  great  then  the  piice 
of  bread. 


I'll 


iU 


'9f^flie  itttediion  befides  of  cultivation,  the  unimproved  witdi] 
bee^MM)  lAfiJIIicient  t6  fupply  the  demand  for  butchfci^s-meat.  A 
grek  jpartief  the  cnhivated  lands  muft  be  employed  in  rearing  and 
fiJttieM&ng  dMtle,  of  which  the  price,  therefore,  mtift  be  fufficient  to 
pay,'  ifot  oftly  the  labour  ncce(&ry  for  tending  them,  but  the  rent 
wHi^the  lalklWd  and  the  profit  which  the 'farmer  could  have 
drMfHtfit»A(i  Ihch  hind  employed  m  tillage.  The  cattle  bred  upon 
themMll'^tlniCultivated  moors,  when  brought  to  the  fame  market, 
are,  in  proportion  to  their  weight  or  goodnefs.  Ibid  at  the  iame 
price  as  thofe  which  are  reared  upon  the  mod  improved  land.  The 
proprieiert  of  thofe  moors  profit  by  k,  and  raife  the  rent  of  thtir 
iandin^'jjroportion  tothe  price  of  their  eattlev  It  is  not  more  thanr 
a  eentuify  i^ ,  that  in  oismy  parts  of  the  highlands  of  Scotland/ 
butchar's-meat  'Wasas  cheap  or  cheaper  than  even  bread  made  "of 
oatmeaL-  The  mien  opened  the  market  of  Enghind  to  the  high^ 

Vol.  L  B  b  land 


greater  tRanf  at  the  beginning  of  £h6  ceiifdry^  atid  th^  rentsieff  tUtif 
highlaiid  eftates  have  bs6h  trSpred  and  qtiadrti^ed'  kt  the  AttM  tinM. 
In*  almbft  d««vy  part  of  Griat.Brkaiivtt  pdtiifd  6f  th«  bdl  bcttdhef'sw 
mtat  Ui  in  the  prefent  tuiie»»  generMty  worfk  <dora  tiiaii 'two 
pound!^  of  the'  heft^  white  bread  lahi  m  'pltn{i6i(  jeiar»ll>i]i  r«ifRei« 
tim^  Worth  three  dr  fibbrpDuntfii^  ^rt  iv;6r)  -^Ht  /)ff«  sIbi"?  ^jIj  Hir>f» 

'  It  is  thm  that  in  the  progrefil  of  hnprclveiindit'&e  rent  andptoftt 
of  uniitoproved  pafture  eome  tey  tie '  rDgoiatiid  in  fothe  meafiifei  ^■ 
the  rent  and  profit  of  Whati»  impraired^  and  thele  again  iay)  this 
rent  and  profit  of  com.  Com  is  an  annual  crop.  BtitdMr^$i4iieat; 
a  crop  which  niqmres  four  or  five  years  to  grovrv  As  an'  acre'  of 
IfMidi^  ther^fore^>#iH  plifodii^e  ^  wluch  fmattei^  (}tttfittity^<of<ithe!OHld 
fpecks  of  f66d  khatixif^Ht  other,  thie  Inferiority  of  the  q[u«^t!ty  <n«ii( 
be  compenfated  by  the  fuperiority  of  the  price.  If  it  was  ntdvv  thafl 
compenfatedi  more  com  land  would  be  turned  into  pafture ;  atid 
if  it  was  noc  coitfptnfkted;  Ipart'cf  what^  inrae  ih  fM(hii«'wbtiMi4>e 

Y' 1*1116  equality,  hdwev«ei^;  httween  the  renit  and  prdfitof  gnifi'aiid 
thofe  of  tiorti ;  of  the  land  of  whith  ^'  immediate  produce  is  food 
for  <»tt]ei^aiid'6f  that  of  Whith  the  knthediate  prodntti  iifodd  ibr 
meni  nauft^  he>'UiVd^ood  4o  take  place  idnly  thrdigh  the  pdAttt 
part  o#  the  improved  ]arfd«  of  a  great  cottntryl  In  i^Mt' par- 
ticular local  iituations  h  i«  quite  otherwife,  and'  the  rent  and  profit 
of  grafs  are  much  fuperior  to  what  can  be  made  by  coni;'r!"'^"^^  '^'■^ 
■u  rio'rtc'/ij!iJi>  <ni   bi>-:^i:iuo'jiib  av£il  hum  hrtB  .3r»J0>l  i^j  fiotrmJ 

Thus  in  the  neighbourhood  of  a  great  town,  thef  dd^aind  for 
milk  and  for  forage  to  horfes,  frequently  contribute,  along  with  the 
high  price  tifbutthet's-mfcat,  to  raiile  the  Value  o^  grafs  above 
What  may  be  called  its  natural  proportion  to  that  of  com.  '  tThis 

7  U      ^  l^jQ 


^fm  t  ^W#4L  f  Hf  Off!  y  j^,1t^  0|^f  .r  ^^ 

locaLftivaiitagft^rk  U^titidi^Vcaiuiot  l^.comm&iikfitfd  tgh^ia{)^%,  ^kf'/'^ 

a/on  wnRl  t'flj  fii  h3kjinJ>6iip  hnr,  Ix^kjf  !t  o^ao'  fl»?H  '^'■iinf!?  bn^pfd-jiit 
i9'Atnv§hotAii  iciccamfta^ieea  have  fometimes  i  rendered  fqiuQ 
eountiieii  fofopuldaty  tha^ti  tiie  wbolc  lieivitAry»  like  the  lands  in  the 
iioBbbcHidhaodpfmigratttciwa^ihas  ootbefa  fuffiotcat  to  produce 
both  the  grafs  and  the  corn  neceflary  ior  the  fiit^iftence  of  their 
inhabitants.  Their  lands»  therefore,  have  been  principally  em> 
ph!>9K|lLin  the  prodtxflioiDof  grafi,  the  mor^  bulky  commodity,  and 
whiofaifiannotrfaeib  safily^hc^ught  from  a:  great  dift^nce^ .  and  corn« 
the  (pibd  o£  the  gre^  bod^  o£  the  ptople«  has  becDn  chioBy  imported 
fromfor^^n  countries^  Holland  is  at  prefent  in  this  fituation*  and 
a)C9nfidcfabk  patt  of  antient  Italy  feiems  to  have  been  ifo  doling 
thft)pv0<piliiityt<tfith9.RionMnB.<  rTio  leed  MireU,  o)d  Cato  iiud*  as  we 
trienlaMi^i^ififiOi  «r0»tb«iiiriSk  and  moftl>ro6i(able  thing  ia  the 
man£^mei>t  of  aipdv^tfeieftaiet  tiofeod  Ipler9bly  well^the  iecond) 
and  to  feed  ill,  the  third.  To  plough,  he  ranked  only  in  the  fourth 
pM$«i9f  f  r/96tiat^dadv^»Hagei  Tillage;,  (fnije^^ifi  that  p^  of  anticnt 
Italy  which  lay  m  the  a^ghbourhood  of  .Hw»e,  wi>ftti|av(e;!hcca 
very  much  ^ifcovraged  by  ^e  diftr^^tions  of  corn  which  were  fre- 
fPli«lj(^#nwi<^l^  fiWiPftilje,;;  •  ,px  %t  a  v^y  low 

pjiqp^    Tchlfc^rilf^^bifi^i^.ifrofla  t^pcftji^  of 

i«(^^^.,tb^  |ff«^«ffiAlt  ft  A|&t9yl»firtpe,  fbo^ifiAcp^u^eafsck,  tsf 
ikfi^^^vMfk*  TIm  rlftw  pri^  At  whi^rljl^is  cprn :|w|i^  dii^ 
lAidMe  people,  muft  Acceflaclly  ihave  (unk  ithe  price  of  jvi^couiii 
he  hrougl*  to  $he  llpman  innarJs^  frpn*  L^ti^in,  ©r  the  antienjt 
territory  of  Rome,  and  muft  have  difcouraged  its  cultivation^  j^^ 
that  co\?!itry.^^    jj^,  .  (3fOofftTrorjrf;gi9n  srfi  ni  ?Tm  i 

.1*1  m  9Sm  C9«»*.jy  ^op,  ,flf  >yhich  tl^e  |)>riii<pi|)al  prgjlufc  is  corji, 
^  wU^n(^pied|?if|»e  of  gral[s  )y^ll  ^,equ€int;iy  re^^t  hj^er  tlian  any 

B  b  a  corn 


>i- 


tHE  ^  NArtJRR^  AND   CAUSBBf r  ©f 

ttifh  until  ikitsi^l^ghbottrhodt}.  'tt^  {(r'tfonrrfet^tfTfop/tkeimtinto. 
l^Ahtdi^  of  thtHi^tfU  emi^y^t'd  ill  tiTencdithraticm  htfflho MCorhvrAad 
Iti'liighl^t  is;  iii  thb  eafei'  notib  ^dpcrly  paid  froBtthid  yalUeiof 
ifs  ovrn  'prddttce;'^^>fi<Mn"<hat>  o£  the  confc'lands^whidirAcfttouki. 
vated  hy  means  of  it.  It  is  likely  to  fall,  if  ever  the  neighbouring 
Hi^hds'^te' «ompleiatty/ienclclfed|  r.Whe  prdfantMgh  rontoi^ienebfed 
l^nid  in  S^btlsuid  fte)«i^towiiig(  tib  thefdircity  qf  ehdoiUre,)  and  will 
|>i*6bably  liift  nb  longer  «Kanthatiba>cit^i  The  advantage  of  fcm- 
dodirli^'  iisf  peivti^  M  palhirethanlfbrrconntfT  It/fai^ea  the  hbi^t^f 
^iatdirig ' ^t'  'cattk,  ;M4A{HrfecnB bet)tior^4]o«t>whQ^^fly^are <oot?ij«We 
t6'b^diftufbidby'theJFfceB|ter>o»lhttdog<li(Ut.>o od thuhf  .Iwd  >o 
fjHB  iir^r^w  stfufV  ^,h  Tot^^niliirlt  n-.r/yl-vtrto'-v:  .!,iso  hRrf  ^rf  ip.v  iR'^b 
^if^'Bti^'WKere  there  is  no* local  advantage  p£i  thifj  ki»4bithe  t«|it 
^T^a^^dfiV'bf  6oi-^;  'Or'^f^^faridfe  islthe  i^oiiim3>iiir6gf}ta)>lfHfipod 
^P^tHe^j^i^,'  nitfft'Aifturdllf  regulaWj  iiflORl  HhftfUrtdWhi^te^i* 
fit  for  producing  it,  the  rent  and  profili  of  paftiljJl^  ^lorft  toT  h'iilnt 

■■■u 
•'^'Tfai^iife'^f  thftJ  artifiaat  graflHal,  of  tqmit)S,aGfri»f5*j  cabtpges, 
IMtHel^^^«)tpedi0nt^  \(rfaich)faare  bttnr£aHtin)|ip$>ikt<hnwtl(f|)#n 
t%al '^ahtit^  of  limdfeed>  ft' greater  nuknberioffiiattle'tlian  v^hen 
in  natural  grafs,  fhould"  foiiiewhat  reduce,  itinigMt  be  expe^^; 
the  fuperiority  which,  in-  an  improved  country,  the  price  of 
l^tbh^^^^iilte'natuiiUy^  has  ^over^tlpat  ofn  breads  ilt^  itmm  ac. 
'chriRii&/^t(i  hiiVe'd6ii«>foi'aif4'lbdiieiii  tmmi  reafiiti  Icftr  belisraipg 
'iA^, '  kt  Idtft'iii  the  LohddA'mark«l^  tiie  price  of  butdier!s  Imat 
hi  livolxilrtidn  to  the  priic  of  bread  is  a  >  good  deal  lower  in  /the 
'pnkiit  times  than  it  wtts  iti^'the'l}dgiiinixig  iof  <  the  Itift^fccn-. 


'^fery; 


/.ulj   ivjrj    Jill 


.  I  i    M 


■  yx     -yi    ii-r,,:jill  ■'Jill     li..biOi    U.^iti     Vllfcolj; 


f;;^f>    iwo"    r   flM^'tr-  •t:-^»*|ft 


.»3i.  |j^  ^e  appendix  to  the  Life  of  prince  Henry,  Do^r  fikch 
has  given  us  an  account  of  the  prices  of  butdier'd  meat  £»>  com- 
monly paid  1^  that  prince.    It  is  there  £ud,  that  the  four  quarters 


-^TUW-wsrAhwa'  WTTif^tFiQi'l^qh. 


k  3wroxitwoijghmyTftx!ohimdrtd  pounds v^f^^^j fiofl?  j^  fj>Hap  5?Hl^^' 
(pfuodsoiea-fhiUingsiior'thereafaouts  J  thatia,^  thirtyry^efOiUI^}^  .^g^i^e^. 
and  ieighC' pence  per  hundred  pounds  weight.  Prince  He^i^idifd 
diithiei6tiii  of' Nt>veinbcr»^  i6ifl>  in:itheramete«nth,y9ar.<pf  hi^age. 

jjt'tnuo'lfijji'jfi  ^rlt  •'nv'i  1r   ,IIn'l  :->t  yfo>l.'!  Hi  '(       tf  >  ,  S  ,r- f  . -vf ''^-m  ■ 

h^iftmt^lShirdllif  iy&i^;  ihsn  «laKa  {larikinentdry  enquiry  into,  the 

llsauib&'of  'the^bigh  <pride  a£<pfOvi(fiDnS(  at  that.ttme^,  i-Itwas  tlien^ 

amdngjjother  iproofito  the  >fani>e;,{^anpofe,  given  in  eyidenqf  l^y  ^a 

Wir^tU^  vherohatit/^  thatrin  March, )  117I61J1;  he*  h9d;3yi£^aU^(^is 

flA^si^fotym<mt^'(wir'Qrtwmtyi&<96^(h^ii^    th«i  hm^r«d{;]t^ht 

of  beef,  which  he  confideicd  asihKordiBa^yprice^t  >k(htre^i>,  iarthat 

dear  year  he  had  paid  twenty-feven  (hillings  for  the  fame  weight  and 

J  dtertP  f  I  rny»  high  prices  in  1 764,  is,  howeyec»  four  ihilliij^gR ,  and 

'iflf^Lr^d^tt'ttleflpcr  thanithe  otdinarypk-iceipajti^hy  pHn|i;<},I^ei^i;y  i 

ia«ldlHs{th6)beftbeefrronly^  itinuftbeioihliertfied,^  whiqhijs  ^itqjbe 

fillted  for  tho&€KAiltitiv6yage9;',^  brre  imi  arii  ,n  ^a-ysjUnq  tu')  l\^ 

,2^DfIiii«{>  pricepaid  by  prince  Hinry  aaiounts  tpi^  4<</.  per  p^und 
f^ri^ht '  of '  the  wholid  *careaief,  coarfc*  anid  chcaoe^  >plece«  t^ken  toge'> 
ntfier  $:  and  <it  that  rat^  the  choice  pie<lc»^cctvildi  Aot  ,^v^ ;  b^cji^ ,  Md. 
iby  retail  for  Wi  than  44:^,01  5  «^iUM>powod»    ^tf.ri  fmutfin  /r; 


\7  tr  f /-  rt«:> 


-*r  rt> 


vf* 


'^'^f  ]^<tlte  ptirlianieirtary>  eiujpiiry.  01^1,764^1  the >wit9«p0^Jla^  t|»e 

^^fnetf tif  die  choice  pisoes  of  thcifaefttbeef  itotiT^jtathe  gonfymcK^iL 

'*mA  >4^ili  the  poond  $  and  die  coarfetpieces  in  geoecal.  to.be  irom 

-<fiivai  forthings  to  a  4.  ^*  and  2  4.  </. ;   and  this  they .  laid  was .  in 

general  one,  half- penny  dearer  than  the.&me.  foit  of  piecea  .had 

udially  been  fold  in  the  month  of  March..  But  even  this. high 

price  is  ftill  a  good  deal  cheaper  than  what  we  can  well  fup- 

■p«le«:  the  .ordinary  retul  prtcetto  )iave,b(eiitia.tl»e,,jtUne,of  pjince. 


mi^ 


DiTRINO 


Tja^v.y^Ptj^- 


BlOOiX 


the  qmm  oi;XmWm¥^W^^h^:rM       .luynrmauui  iuiiufc 

.1   ,1  '.liu  1    .;;n  ijJiL  qoil   on;  ,a    uui    .  t,  ,o('j  qon  'j/JT       nm'iEf 

Bu,T,m  thp  twelve  ye^rs  prcpp«lipg  1764,  |i^cluding,th^  y^at^ 

,  in  the  tw4v»  M  y^ar^.ofjihe  faft  ^eplyry,  |^^^^^q,^,ij)r.l^ 
appfijirs  to  havie  l^i>,  j|,,goft4.de^,fi^ie?i^rfl  >ftW^,  b«»;?h^ 

dialing  tha*  y?*r^3l,niVj /luqrn  ..einjTHDtmo  ili»i -J  am'  3d  vllfc-iuiBn 

In  all  great  coqntrles  the  greater  part  of  the  cultlvatoi  Ifuids 
ate  .ei99U>y!9<l  iiP'  ip^Mns^  ««hflf .  i994 1  f<«^^  pfi^^/ft^^jf^iif^.' 
The  rent .  and  profit  of  thefe  regulj^jtie  ^.  c^nt  ^n4  fiso^^  # « # 
Qther  cultivated  land.     If  any  particular  produce  afforded  lefs* 

af0|:4«^;/i«|orff»vi9P«i  BJRt  pf  ^  JjV^j)]^  cpt^f^  op  |V»|lWje  «{q^ 
loan  hfijtUCDfidl  til  thil  prp4H0ftTr  aidijjkviiiorn  axfi  bbiv  ot  !^^q 
Oij/'  uiiu  ,op^^  r..., ;/.  ^ui,iD  )»it  y/vi  urjod;;  v  nriRdaJif  nO'iij '3T~- 
r  Those  productions,  indeed,  which  sequire  either  a  greater 
oi%kial  «xpaicB  4»f:  inprovemcBt,  or  ja  greater  mm^MBP^  of 
cultiivition^  in  «idoD  ta  fit  ^]mi>SoK  kham^  vppiar i(pti^9«»l(r 
10  «f&id»  theAn^  a  gveati^  rent,  tba  iotk^fj^  gJi^fim  prt^UMP 
com  or  paftii^ce.  This  Aapenoniy,  however,  wUl  M»m  b(  fM»94 
to  amount  ^  Biore  tJun  4  raflfiw^^  4nte([^  m  SQiji^jf^ofifmM 

In  a  hojp  |;ardcn>  a  ^it  ^garden,  a  kStchen  garden,  both  % 

rent  of  the  landlord,  and  the  profit  of  the  farmer,  are  gqpeniUy 

greater  than  in  a  corn  or  grafs  field.    But  to  bring  the  ground  into 

.   ~  this 


itiimis  d^6  to 't^  laAdlTdfffJ' 'it  R^ux^  loo  k  more  aftehtlVfe  and 
Skilful  management,  ^ence'ii^'^2^  i^rofef'^omes  cRie  itf  tlie 
^mer.  The  crop  tod;  at  leaft  in  tlie  iiop  and  fruit  garden,  is 
miH  jft^6ari6iiSi  'fb'i^^Vtitefb^,  'kfidts  cbmpehrating  all 
oct^dtiai'a^fflii;  Mat'^iS^'M&mis^Mi  tKe  profit  of  mfa- 
rafice.  iThe  circuiftfl^suices  of  gardeners,  generally  mean,  and  always 
moderate,  may  fatisfy  us  tiiat  their  great  ingenuity  is  not  commonly 
Mt^^ccBHiptHf^/'HWii  Aai^tfui 'atl  is  jiftttifcd  Ijy  f6  lAiny 

naturally  be  thdr  beft  cii{lomers»  fupply  ihemfel^^  w^h^tiheir 
moft  precious  jMrodufHons. 

trtcnts  fetms  at'no-  timti^W  Ifef^if  Been  ^fer  ^n  wKafi'^Ss  (Uft 
fieient  ta  compenfate  the  original  expence  of  making  them.  In 
*HtJ  ^ti^t  hdft^iidiy,  aftei^thtf'Whfeirard,  ^  ^*«f  wMfcVed^Mtchttt 
^deh  flithis  t6  li^e  BteA  tl!*prirt%f  ififcfafM'  whlcirv»«rf«<  fli^ 
pofed  to  yield  the  mod  valuable  produiie;  But  Dehiocritus,  wh6 
wrote  upon  hulbandiy  about  two  thoufand  years  ago,  and  who> 
#i^  rligird^  b^y  th*  *itifertts  as  ofttf  of  the  fathers  of  the  art, 
{HdUj^tlfh^  (Sd'  n6t  "fiiSI^  Wifely  Who  eHCt6l^  a  kitchen  gan^n^ 
lff(^''^h^,  A(i  l&id,  -  <«i^Mild^hot  eoiftpehi^te  the  expence  of  a  ^96t«e 
yi^ilj  iand  bHeki  (he  kfifeiiht;;  I  fappo(^;  bricks  baked  in  thefun> 
kdtddefed  with  the  rdln,  ahd  the  wihter  fltormi  and  requii^d 
^tihtial  repairs.  CoIUfhella,  who  reports  this  judgement  of 
Democritus,  does  not  controvert  it,  but  propdTes  a  Vei^f  ftugkl 
method  of  enclofing  with  a  hedge  of  thorns  and  biiars,  which, 
file  fays,  he  had  found  by  experience  to  be  both:  a  lalBng.and  an 
impenetrable  fence;  but  which,  itfeems,  was  not  commonly  known 
ih  the  time  of  Democritus.  Falladius.  adic^ts  tb&  opinion  of 
'  Columella^ 


V'i 


u 


II 


*;?>■« 


192 

f  '}♦ 

BOOK 


THE 


NATURE 


^'?? .  ?W^  J¥ 


r^^^C^t' 


Columella,  which  had  before  been  recommended  by  Vyrro.  ^  la 
the  judgement  of  'ffiofe  aniieht'  imprdvers,  "tlie  produce  of  a 
kitchen  garden  had«  it  leem^/ dmii  UVdejnore  than  fuifiiieht  ^i^ 
pay  the  extraordinary  culture  and  the  expence  of  watering }  foe 
in  countries  fo  near  the  fun«  it  was  tliouehk  proper,  in  Uiole'ttmei 
as  b  the  prefent,  to, have  the  command  oi^  a  Itream  or  vv<^er', 
which  could  be  condiif^^d  to^every  bed  in  the  garden.  Tlirougni 
the  greater  part  of  Europe,  a  Ici^chen  garden  is  not'  at  (preieht 
fuppofed  to  de/erve  a  better  enclofiire  than  that  reccmmehded  i>j 
Columella.  In  Creat  Britain,  a|id  Ibme  other  nonneifn  co^^ 
the  finer  friiits  caniiot  be  ferbugl^t  to'perfeilion  but'l^^^^ 
tance  of  a  wall.  THeir  price,  iKeirefore,  m  fucti  countries  mufi 
befuiEcient  to  pay  the  expence  of  building  and  maintaining  wHat 
they  cannot  be  had  without.  The  fruit- wall  frequdntiy  hirMiills 
the  kitchen  garden,  which  thus  enjoys  the  benefit  of  ik  iliHdli^^ 
which  its  own  produce  could  fddom  pay  for.  '    -'*'     * 


THAt  the  vineyard,  when  i«-opcrly  planted  and  brcHiglif  IfiS^ 
perfection,  was  the  moft  vidoaUe  part  of  diie  finrn^,'feenii%'lbK^ 
been  an  undoid^ed  maxim  in  litt  antient  agria^on^  «s  iti^  iti* 
the  modem  through  all  the  wine  countries.  But  whetlver  it  was 
advantageous  to  plant  a  new  vineyard,  was  a  matter  of  diipute 
among  the  antlent  Italian  hufbandmen,  as  we  learn  from  Colu- 
mella. He  decides,  like  a  true  Ibver  of  all  curioui  etiltivitidn, 
in  favour  of  the  vineyard,  and  endeavours  to  fhow,  by  a  etMiiw 
parifon  of  the  profit  and  expence,  that  it  was  a  moft  advantagebus 
improvement.  Such  comparifons,  however,  between  the  {H-ofit 
and  expenqe  of  new  projects,  are  commonly  veiy  fallsKiousi  and' 
in  nothing  more  fo  than  in  agriculture.  Had  the  gain  af^ually 
made  by  fuch.  plantations  been  commonly  as  great  as  he  imagined 
it  might  have  been,  there  could  have  been  no  difpute  about  it. 
The  fame  point  is  frequently  at  this  day  a  matter  of  controversy 


,'1 


Tick   WKALTB    OF    KAtlOI^l 

ijp.-  ^  ,|WJ)wi^«»..   T^wiitfHtf.«i-iigiki4ttt^  the, 

l^tjn^v^  pr6m0tpr8  pf  ib)^  cu(tiv2|^,  ieem  generally-  dUfjpoSiA 
to  decide  with  ColumeiU  in  favour  of  j:h^  vineyard.    In  France 


of 


l^,ct^^WMl'': 


ei^  the  olil'  v}ne¥ardi:  tb  pttVent 
li^  |ft^  to  hijVt^  their  c^ii^c^^  aHd 


tt^iMucatt  aceinfoomler9  in  thpfewlvonduf^  have  the  experience, 
tMt  tUw ^eciesoif^ elevation  ^;pi  preftfnt  i^  thatcoantrj  more 
pv^taile  than  aft^  ot^:  I^  feeim  ^  the  fame  time,  howi^, 
'tiltti  ibb  mAcatt  anotBtir  opiiion,  thkt  tliit  ftperior  profK  dl^ 
lail  no  l^gfr  than  the  lawi  which  at  prefent  reftraini  the  free, 
cultivation  of  die  me.  tn  1.73 1*  they  ob^ined  ,an  order  of 
cp^a|icit'PBOi^l^|^i^  both  tn^  pltntm^  or  nepr*  yineyardt*  and  the 
reiKwal  6f  tho^  oSd '  oi^  of'  wtikk  the  cultxvatioii-  J^  been  in-' 

thr  nng,  to  be  granteiji  only  iiY  confequence  of  a^  mf^^rmatioil 
from  the  intendant  of*  the  prdvihce,  certifying  that  he  had  exa- 
fi^e^,.)^  Jaf^,  ajQ^  ^t  ,k  w^f  ii|cap»blc  pf  any  other  cu^itqre. 
T]I^P^^5fe^|^Je;^  jt^^pB^  ^as  tlieipjyrcity  qf,  cprji  ai^pafture,  ai»4 

%  i»Bffr#bi»4j!»9».PC  WAWri  SiB*  hadthis  fuper-abimdancfi  been 
rei^t  ^  wpi)]d»  yvUhout  any  or4er  of  council^  have  e&^hially 
p^Vi^^d  the  ^|apta;io»  pf  Qcy^  yineyards,  by  reducing  the  profits  of 
ti^t^c^  o^/f^^^va^ioa  bcjlow  tlieir  natu«;!yiipropgct;ii9>ii  tp  thgi^  of 
coi^ti||¥Mi|aftW^  V^jilM^cgju-d,  to.  the  fsif^^  (am:]tj,o(  com 
oc^t^niijd  by  the  multiplication  of  vineyards,  corn  is  np>  where 
in  f<5imce  more  caiiefuUy  ct^tivated  tlian  in  the  wine  provinces, 
wh^f^  thif^  lan4  is  fit  for  pro^ueinj^  it  i  as  iri  Buip,indy,r  Guienne, 
-aodrth^  yi^pytK*  L^guieilcH?*  The  nuoierpus  hands-employed  ia 
the  outer  fplKies  oii  cultivation  neai^rily  encourage  the  other*  by 
afibrdiog  aready  market  f<)r  its  pi'oducei  To  diminiikjthe  number 
of  .tho£e  who  are  cajpableof  payin^for  it,  is  furely  a^mofl  ui^u-omifing 
expedient  for  encouraging;  the  cultivation  o£  corn*  It  is  like  the 
Vol.  U  C  c  .  policy 


1 1 


M ; 


'4 

*iMB| 

i   ,'i. 

'i!al! 

v4 

Jijj 

■ 

;',f  jn 

.11' 

TiAi 

\ 

■11 

■"!' 

•' 'Jl 

Vm 

'•fL|| 

%iaM\ 

iM 

imM 

>w£i^i'i 

11 

ii 

w 


B 


^?' 


T^E )  ijfi/VYWim.  mvi  CAUSED  i  of 

ppliqr  nirbjch  wom]4)  pmoiotf  Jgiicalttire  by  idtftotmgihgjmaiiiiii^ 

The  rent  and  profit  of  thole  productions*  therefore,  whicb 
sequira  either  a  greater  otiginid'eij^nc^  of  iurp^dvemerit  in  ^bMer 
to  fit  the  land  for  theih,  or  a:  greattr  annual  expence  ofctilti. 
vation,  though  often  much  fuperior  to  thoib  of  com  and  paft^re, 
yet  when  ,they  da  no  more  than  tompenlate  fiich  extraordinary, 
expence,  are  in  realjsy>  itgulated-  by  the  rent  and  profit  of  thbfe 
common  frop3..3i)ilriO'>  &  riau6)'iriJ  23mij|>rno)  ixiu  .JmiOil^  ihiiru- » 
Jjiyyouj  3i,3^hi  z^t\i)»  ihuWo  iibncv^  olorfvf  vriT     .upnlvQuj  sjjul 

It  (bmetimes  happens,  indeed/  that  ihe  quantity  of  land 
which  can.  be  fitted  for  Ibme' particular  produce,  &  too  finail  to 
fupply  the  «flSs£tuat  demand;  The  whok  prodiice  c^'bfe^W; 
poife(^  of  to  tfaofe-who  are  willing  to  give  foitiewhat  Yilbre'^aii 
what  la  ifuflkient  to  pay  the  whcAe  rent,  wages,  and  profit  ne^*^ 
ceilaty  for  raifing  and.  bringing  it  to  market,  according  to  their 
natural  bto^,!  or  accoiding  to  th^' rates  at  ^duch'  they  are  ptid 
hi  the  grcarei-  'pttrt  cf  ott«^  t^kit^W  lahd;  Th^  A^l^i^rt 
of  the  prke  which:  remaihb  aflSer  deHfaylhgl  Vhe  wh^te  ei^hce  bf 
knprbtement  «id  ctiMvation  may  ccimmonlyi,  in  thid  ca^,  if^d^ 
in'  diis  cafe  oniy.^  bear  no  regular  proportion  tb  the  like  furplni. 
in  com  tor:  paftiire, 'biit  may  exceed 'it.  in)  sdmoA  any  degrees  sind- 
the  greater  |ort  of  thi^  excdk  naturally  £^  to  the  rent  of  thdj 
landlords  -jllsort  y'l  lonofU.'-^-iO  tifol  'arb  30fih^Tq  c   jldsuif.v  61  nl 

-  Tits  ofaal  and"  natnrat  proportion,  f&r  exampte,  l^tweeh  tfir\ 
Mxt  ind  pr<^t  of  wine  and  thofe  of  com  and  paftorie,  muft  be^ 
trtidtrftbod^ti^e  place  only  widi  regard  to  diofe  vineyai'ds  whitH 
produce  nodiing  but  good  common  wine,  fuchas  can  be  raifed 
almoft  any  where  upon  any  light,,  gravelly,  or  Tandy  foil,  andf 
fKlucli'  has  hbthii^ib^ommend  it  but  its  ftrehgth  and  whofelomr 


THEHWBALTBA  Ol^  Wi^lOl^fel 


'«f 


nefiK  11  Ip  is  ?with  ftidi^r^neyiirdH;  oftly  tlui'th^  conthioii  Wiid  df  the  C  R  A>i 
country  can  be  brought  into  competition  i  for  with  thole  6f  a  r' 

peculiar  quality  it  is  evident  that  it  cannot. 

ci.;>aiw  ,3M)iirji|f  .fiioiiix/hoifi  -JloiK  io  Jxton^  Lfifi  Jnri  3kT  •., 
vjiJcPTri^i*^^  I^Wj^afl^fi^^  l^y  ,th<?  dPcr^^fio  ¥  ft>U$  than  any 
of^Cir  fruit  t^,  |^r9«i3(^,fon^^  it  derives  a  fl«ypui:  which  no  culture 
Of  ^{^^gciijnep^  can  equals  \t  is  fupppftd.  uppii  any  other.  This 
Bif^y;9|i^^^r|Bfl,of  i^agii^ary,  is  ipmetim^  peculiar  to  therprpduce  of 
^iJSff  j^nt^afds  i  fonfietime?  it  extends  through  the  greater  part  of 
a  fmall  di(lri£t,  and  fometimes  through  a  confiderahie  part  of  ii 
large  province.  The  whole  quantity  of  fuch  wines  that  is  brought 
t(^  jparjket  fj^^^jQiiocit  pf  the  effectual  dems^ndr  or  tha  demand  of 
^^fealf^:)?^?"^.^  wiling  t9  pay  the  whole,  rent*  prpfit*  and 
M(j^e^  n^j^ary/piipirep^ng  ap4  bringing  them  thither,  /nccorcjing 
|9.j^e.Qi;^^]:y  ra|fe>  or,  accprding  to  the  rate  at,  which  they  aie 
pafdi^),fi^i1^iq[)pii,  vineyards.  Tl)9  whole  qpantity*  therefore,  can 
be.((^fp9r»jL,9^^o,thofe  yify}  .are  wiJ[tii^  tP  pay.nwcwhich  iiecef- 
f^Uy  xj^Qf^^htk  pi^ce  a,bovetbatof  cpmmicH^  wine.  The i  difference 
isij;reatft;  of,le{^>accoi:)jing  as  the  faAiionablenefs  and  fcarcity  of  the 
^n^  r^^cr  th<P  competitipn  of  the  buyers  more  or  lefs  eager. 
\^hatev^r  it^be,  the  greater  part  of  it  goes  to  the  rent  of  the  land- 
l9fi4>i 'i^PT.  thpugh  fuch  vineyai^  are  in  general  more  carefully 
cukivatsd  than  moft  others,  the  high  price  of  the  wine  feems  to 
bd«  not  fo  much  the  eflS(£|,  as  the  caule  of  this  careful  cultivation: 
In  fo  valuable  a  produce  the  lofs  occafioned  by  negligence  is  (b 
great  as  to  force  even  the  mod  carelcfs  to  attention.  A  fmall  part 
of  this  high  price,  therefore,  is  iufficieiit  to  pay  the  wages  of  the 
extn^ofdinary  labour  beftowed  upon  their  cultivation,  and  tlifi 
profits  oX^hfi  extraordinary  ^pjfc,  w^eygh  put? ^ that,  j^fepurjix^ 
0)^9^^'     ..  ^  ■^'■'j'jto:)  Lau^  jytu.  ...  .td:on  asuLotq, 

%nR'%  ,    .  .•  .  ^^  -!;;fl  Yfir;  noay -^lar'w.vns  jkfak 

THE  fugar  colonics  poUeffed  by  the  European  nations  in  the 

Weft  inclies,  'may  be  compared  to  thofe  precious  vineyards.     Their 

'  ■'  '  C  c  2  whole 


I  'i,*' 


^ 


rm  'VtVP^M'^>A}m  waJunsL  ler 


c}|n^4tf^i«lf0f  iPth^lb'WbO'fire  viUing  mguw  xtwre'«iMui  mte 
If  fufficiciit  to  pay  die  wbole  nfctit^  pDofit^^  ondwagpea  tMoeffiuy  iCor 
preparing  and  liringing  U  to  market,  according  to  die  rate  at  wUnli 
they  are 'cofnnUNiIy  paid 'by 'any  other  produce,    in  Cochin»»eh)na 
die 'fined  white  ibgartommoflly  fells  for  three  piaftrds  the  quintaT, 
about  thirteen  AiHlin^s  and  fixjpeilce  of  our  mpney,  as  we  are  tcrfd' 
by  Mr.  Poivre,  a  very  careful  obfinnrcr  of  the  agricuhure  oftit|(at 
country.    What  is  there  called  the  quintal  weighs  from  a  hundred 
and  fifty  to  two  hundred  Paris  pcAindt,  or  a  hundred  and  ftveilty- 
five  Paris  poidnds  at  a  medium,  wluch  reduces  the  price,  df'  iht: 
hundred  weight  Engliflv  to  about  og^  (hilling  fterhnga.'not^it! 
fourth  part  of  what  il  commonly  paid^  dtc  birowte  or  taxMkas^dzi 
ib^rs  iwport«d  fiM»notr  eolonie^  and  not  a  fixth  parttictf  M|at 
»  paid  ibr  the  liaeft  #hite  fii^r.    Thd  greater  ji^rv  of  tHe  iculd- 
vated  limds in  'CDi:h1n>^hini arc  ^mpkydd  'met  producing. torn  titidl 
rite,  the  ibod  of  the  great  bddy  of  the  peoj^    Thf^  rs^eftive 
prices  of  corn/  rke,  andl^^iir;,  i^  tfittc  pmbaUy  iii' thi  hatDnOii 
pibportion,  dr  in  ihiaiVhid^ Wu^aI^  takes  place  i^ltht  <dlflbj«ntt 
crops  of  the  gie&ttt  part  of  duMvatied  HM,  aJhd%hieh  re^liij^Ots 
the  landlord  ahd  farmer,..  a|  ne^ty  ds  caii !  ba  ^M^fi^, .  molMllg 
to  what  is  tifually  the  original  eXpenctf  b^  iiiiph>t«MW«  aM  thb: 
annual  eipence  of  cultiVatioit.    Butln  odf  fUgar  ^fcniey.'df»>pri«6 
of  fugaf  biears  nd  fuch  pn^pertioa  td  ihatf  <^  thcf  pMddtt  6^  avri«b. 
dr  com  field  either  in  Htnt>pe  or  ih  Amenta^    I^i*idomtiKohiyAkl: 
that  a  fng^ar  planter  et[^i that  the  rum  and.the  molaflb  ihould'. 
defray  the  Whole  expence  of :  his  cultivation,  and- that  hls.fi^r. 
ihoiild  be  all  clKat'  prbfit- '  If  this  be  true,,  for  I  pretehd  lidt  tos 
sdlirjtti  it;  it  is  as  If  k  c6rh  farmer  expected  to  defray  the  iex^ce 
of  his  cultivation  with  the.diaff.and  the  ftraw,  and  that  the  gijuiii 
Ihduld  be  all  dear  pfdfxt.    We  fee  frequently  fociet^es  of  merchants  j 
in  Ldnclbn  stnd  ddief  tkding  towns, .  purchafe  waftie .  l^tidt .  in  <ta? . 


iJr\i'    :.n',>Li-"'   -Jli'    '^KU     Oi 


1:31^:::.. 


:  rj«i 


(bgar 


Itm  »  ^ W« JbL  T  M  ^  O  t  V  »  A  T  t  Olftl.r 


19^ 


uaA  'tltiHiwatcttMlini retoms»^  froitt  tbe  ddioftivt  adkntniftfttHHi  df 
jiilUN  in  riiafe  coantrieb«  Nobedy  wiH  altenhpt  <  t6  bnprore  an^ 
mMvais^ii  the  'fame  itianaer  the  ikioft  fti^le  lands  of  Sctllandt 
Bnlind^  et  the  corn  provinlces  of  North  America  j  though  from 
tfMT  flMre  exa£t  admiffiiftration  of  jv^iit  in  thdb  countnesi  more. 
l%tfllff  rttumi  might. bo  cxpodiedi    iwbuij  yi^ri;  .^rns/i  .it/  vd 

V  f  N^ '  Virglnki  litid  Maryland  the  ealt^^dh  of  tobaiceo  i^'  ptt^ 
ftnred*  >aa  more  profitable,  to  that  of  com.  Tobacco  might 
be' onkWated  with  adventafc  through  tAie  greater  part  of  Eu^ 
npof  Jfeut  ill'  tImoA  every  put  of  Europe  it  haa  become  a  prinf 
oi^  ifubjf^  .ofitaxationw -and  to<eoUe£t  a  tail  fiom  eveiy  dif<> 
ibnnthfitk  in  the  ooKintry  where  this  plant  might  happen  toi  b^ 
eultivaictf»v^'^^<H>M^  "^'^  <^i^^^'*  ^  ha»'been  fuppof(;d,  than  to 
iev9»«MiU{y>ii  its  inporta^n*  atrthe  cui^xn^u^.  ;itie,  oiltiva^ 
JlioniOf  tobaqco  has  upoa  thi3  account. hqcnmqft  ah^ifj^dly  prphir 
bited  through  the  greater  part  <^  Europept  which  necefTarily  gives  a 
ft»%i9f,nii^»o^]^  to  t)»  (ountries  vi^re  it  is  allowed  i  and  as  Virr 
fusa,  4Uid  MbiryUindpiDdace  thegneateft  quantity  of  it»  they  ihare 
jftfgriyi  thcmgtk  «rith»  fome  coinpetitOrs«.in  the  advantage  of  th^ 
nK>iH^y»'T)^ci4tWat|bon  of  tobacco,  however,  feems  not  to 
l)e,f(^advallta|g!M^s  9*  that  of  fugiir.  I  have  never  evea.  heard  of 
MiyU^bacci^' plantation  that  was  improved  and.  cultivated,  by  the 
^lapi^  of  merchants  who  reiidpiin  Great  Britain,  and  our  tobacco  > 
cojionies  fend  us  home  no  fuch  wealthy  planters  <  as  we  fee  fre— 
quently.arnve  from  our  fugar  iflands.  Though  from  the  preference 
g^ven  in  tjaofe  colonies  to  the  cultivation  of  tobacco  above  that  of 
qorn*  it  would  appear  that  the  effeAualt  demand  of  Europe,  fo^ 
tojbaf^o  is  not  compleatly  fuppUed,  it  probably  is  more  nearly  fo 
Jthan  th?«5 Jar  fv^ar :  And  ijhough  the  jgrrfent  price, of  t9^9^^ 
probably  more  than  fufficient  to  pay  tlie  whole  rent,  wages,  and ; 
^^  •  piofit- 


^ ' 


not  be  To  much  more  ti  the  prefent  price  of  Aigar.  ^.rvu..<pbacr^ 
planters,  accordingly,  have  (hewn  the  fame  fear  of  the  fuper-abun- 
4ance  of  tob^cf o,  vyblcb  t^e,  p^oprjt;tQr«.Qf  the  oM  vineymfdtrin 
France  |iave  oC  the  (uper-aj?iji^^ance  of  vvin^    9y  «^  of  a0expb^ 
th^  have  reftrai^e(|  i(s.<;uUiyation  tq  fix  thouiim4  pUnts,  ,f^ppoiei 
to  yield  a  thoufand  ^ei^l^t  of  .tobacco*  for  ev^  negcQ  bctvf^mi 
fixtcen  and  iix^  yfafs  9f  ^e;,  ,  S«ch  tWfgrp,  over  «n4  «^^  ^? 
quantity  of  ^ob^cco, ,  f  fi^,  fpi^n?g(^,  tl>^  reckfMir  fo^r  9f;m  of  Indian 
cofn,    To  preT«f«t  .^he,  n^arkct  {[<fi^  being  oxer(^qc)(ed  ^po,  '  1'  y^ 
liaye  rumetimeSji  in  plentiful  year3,  we  .are  told  by  Dr.'P^u^;(4iij}, 
(I  rur|)e£l  he  has  been  ill  infornned)   burnt  a  .c9r^lA,jq^<Matt4ty 
of,toj^s^co  for,  every  jie|?x>^,  in  tl^e  Cuvw  manne*,  as  the,,Uutf;ji, 
ar^  Jiud  to  .<^o  .of  fpice^f  ,^  U  fuch  ylolent  mejthoda  are  neceiljiry.;^^ 
keep  up  the  prefejit  p^ice  of  tobacco,  the  fuperior,  advantagt:  of  litf; 
culture  oyer  that  of  corn,  if  it  ftill  ha?  any,  ,j«ill  nqtiprojjaUy.bc, 

It  is  in  this  manner  that  the  rent  of  the  cultivated  land,  of 
which  the  produce  is  human  food,  regulates  this  rent  of  the  greater 
part  of  other  cultivated  land.  No  particular  produce  .can  long 
afford  lefsi  because  the  land  wou^d ,  immediatdy  be  tMriied  tQi 
another  ufe:  And  if  any  particular  produce  commonly 'efibrda^ 
more,  it  is  becaufc  the  quantity  of  land  which  can  be  fitted  for  it  is 
too  fmall  to  fupply  the  effefhial  demand.  jori)  nl 


I'  :r ' 


:inii  whic^  Lvi¥' 


.  Ih  J^urope  corn  is'tue  principal  produce  of" 
immediately  for. human  food!.  Except  m  particular  fitiiations/' 
therefore,  the  rent  of  com  land  regulates  in  Europe  that  6f  all' 
o^i^  <;vi]itjyj|ted  land,  firitain  need  envy  neither  the  vuieyar^s  bT 
rn>T:^e,  noi  tfHe ooliye  phintations  of  Italy.  Exapt  in  partkt^^* 
...i^V'.^io  ;  fituations. 


.JH. 


tH  .  vIjv 


jd      1. 1 

'''II^^HiW<^^%'^^<^^<>^^  fkvourttc  yegetatile  ibod  (4 
tfli'^ltf^Madl'^  <tt^Wh  fbm  a  j^t^nft  e^  Which  die  nioH  com 
ite'lAHd/Wllft'thle'iaVne  dr'n^ly  the  Tame  cultuiv,  j>rodt>ccd  \ 
itiM  ^^drtiar  ijukndty'  tha'h^-A^^  mbft  tfnrtile  does" of  com,    the 
t^  df  thfe  lilMbird;  6r^1^i  fu^lUs  quantity  of  f6od  wliich  wouJd 
itMiAd  iti  MM;  ifter  ■pikyin^  the  labocrr  and  replacing  the  ftock  o 
tIi«^i«Mi-tojg;ethfd'#ith'itr  ordinary  profit*,  woiitd  n^ceiTaUy  be 
miircfe^ffeiitet*.    Whatever  wai'tht  rate  at  Which  labour  was  com- 
lAditiy  tuaihtamed  in  that  country,  this  greater  furplus  could  alwayi 
ihdAyiii  ii^  grnt^"^an1liijr^  of  it,   and  con%uently  enalble  the 
UMdldi^  t6  pikchldb  b^  cbnihlanH-flgitater  ^lianttty  of  It.    The 
itol  ^lid'oF'hiy  reMt,  Ui  rk\  power  anid  authority/  his  coihmand 
e^t1^'ii^cdTdi^  aiid  cofivenitehties  of  life  with  which  the  labour^ 
cf  ether  people  could  fupply  him,,   would  neceflaiily  be  roucit 
greater; 


A  l,.t../<<(rr.  -^ii^  t,.  )a.-«      -'t  lift; ill  «!>r;:-r.rn  arHt"" 


^'*A  'iftc^'fiifld  t^]^6(f^(fr sFteh  gi^Wif'qU^tily  o^robd^than  the 
rtWft'  ffehilc  tbhfi  field.  tWo  crops  in  the  year  frpm  thirty  t^ 
ftj^y'^flieti  e^t'kt6  Md  to  be  the  ordinary  produce  of  aik; 
aiito.'^^'Thbugh  Its  cultivation,  therefore,  requires  more  labour, 
a  nluoh  grebttr  fatplil^  remams  after  maintaining  all  that  labour!! 
In  thofe  rice  countries,  therefore,  where,  rice  is  the.  common  ancL. 
favourite  vegetable  food  of  the  people,  and  where  the  cultivators^ 
ai^  c|ki^fty  maintained  with  it«.  a  greater  fliare  of  this  greater - 
flirp^us  (hould  belong  to  the  landlord,  than  in  com  counitriea;  fjii 
Carolina,  where  the  planters;,  as  in  other  Britifli  colonies,  are  gene*' 
rally. f^th  farmers  and  landlords,  and  where  rent  oonftqoently  ish 
•oiifound«4.witl^er<>fit,  thctultivaticm of  4cel» foohd  tahe-ttiori^ 
iitoiiawiil  profitable: 


1^1 


\^ 


#»0P 


THB   iNATUR^  A,^©    CAUSE'S    W 


of  Europe,  rice  is  not  there  the  common  and  favqwiti^yi^t«blf 
ifood  of  the  pec^le. 


.jn'-  '.jt. 


A,  oppp.  4c9  fisl4  i$>  «^lH>g.  at a|l  MwA.  anHiM^  one  Mba  a 
^g  qavepcd  wiA  wa,tw.  I*  »*  «»&*  eitl^w  for  conn*  pr  pafVurti 
^H*  vineyiM^  or*  i^doo^^  for  any-  <*^k  yeg^t^lo  pro<hM;»  tljot  is 
ycry  ufcMtpiQc^:  Andt th^l^Pi^ which  ;af«  f^t  for  thof^t  purpoibfk 
'  r|^«  n,pt  fit  fpc  ric9«  Even  in  thsri^ccou^tiies,  therefpfe^  the^ rent 
^  ri<;e,  lan4s^  cannpt  rej^t^,  t)i^  rpnt  of;  the  ptl^  cuIMvaM.  land 
yfhki^  icai^  n^ver  l^  tur^^qd  ta  t^at  p«!od^<?c,    ^,'  v,     . ,^,i;,.||  ibun 

T^^  fopd,  prPtdujCfd,!^  a  iieldof  pptatQ««  isrnot  inffrior  in  qiMn^ 
t^^y  to  tl;i^  p^pdniwd  .by„  a  fiieJd  of  rific^  and,  mnph!  fnpsrior  to  what 
i?i  p^uccd  by,  a,  6^  of,  wheat.  TwcItc  thpn^nd.  weight  of 
pptatP<;9fi'oinan,aa*c.of  land  is  npt-  a.  ^eatpc  produce  than  twp 
thouiand  weight  of  whicat.  Thf  food  or  foUd  nourishment,  in-< 
deed,  which  can  be  drawn  from  each  of  thofe  two  plants,  is  not 
altogether  in  proportion  to  their  weight,  on  account  of  the  watery 
f^iture^of  pPts^pcs,  Allowin^a  however^  hajf  the  weight .  of  this 
^pottp  go  to  water,  a  very  large  allowance,  fuch  an  acre  of  pota^ 
tpesL  will  ftill  produce  fix  thouiand  weight  of  foUd  nQuriOuneat^ 
three,  times  the  quantity  produced  by  the  a<;re  of  wheat.  An  acre 
<>fpQts^tpcs.  is.  cultivated  with  le(s  expence  than  an  acre  pf  wheat ; 
the  irallpw  which  generally  preceeds  the  fowing  of  wh^at,  mora 
than  cpmpcnfating  the  hoeing  and,  other  extraordinary  c«ltvu38 
which  is  always  given  to  potatoes.  Should  this  root  ^vcf  become 
in,  any  part  of  Europe,  like, ripe  in  fome  ric$  cotintries^  tlie  cojnniQO 
and  favourite  vqgetj^)!?  food,  of  the  p?ople^,  fp  as,  tp  occupy  thq 
fam?  proportion  of  the  lands  in  tillage  which  wheat  andvothcr^  form 
of  graii>  for.hunxan  food4o  at.|prel5;nt,  i\\Q  fatne  qi^f«ijit^jQ|^,ciiU^ 

'  ■   •  '  '  '       .   '  vated 


iiiaOi 


a. 


.j1;h  p.^  ,^  M  L;T  *k  QjBt  ;H^.W  Ojf ^1^ 


apf 


and  ijie  labourers -(^cipg^  g;?ne^;«d|y  ^d^  yrith  potatoes,  a  .greater 
fviypius  would  rep[\am  ajftei;'  repl«iging  all  the  ftock  and  main- 
talhinjg  all  the-  labour  employed  in  cultivation.  A  greater  (hare 
of  this  furplus  too  would  belong  to  the  landlord.  Population 
wou^d  incrcaf^,  ^^  r|j|J«,.p^4ji^.  jaj^icli  h^ 


alt 


Vt'^T*- 


The  land  which  is  fit.for  potateesi  is  fit  for  almoft  every  mother 
uieful,  y{egetable«  If  they .  occupied  the  fame  prc^ortioh  of  culti« 
vated  {and  whjch  corn  docs  at  prjcfent,  they  would  regulate*  in  the 
fame  manner,  the  rent  of  the  greater  part  of  other  cultivated 
land.  «1k  ^ 

-,,}»■  fome  parts  of  Lancaftiire  it  is  pretended,  I  hav6  been  told, 
thatrtoead  of  oatmcisll  is^ia  ildartier  f^>d  for*  tlibooritig  ptoplethan 
whwtdn^ffcrrad.^  and'  If  havel  fr«<itf*ntly*  hbai'd 'th^^ fiiiie-  ddftrin© 
hq!4  ^icScotlamk-    laiH,  however,  ibbewhittdotibtful' of  ttid  tfiitl^ 
of  it.     The  common  people  in  Scotland;  who' ar^  fed  With  daP-' 
mealf  arein  ^neral  neither  fo  flrong  nor  fo  handfome  as  the  fame 
rmk  of  poople  in.  Bhgland,   who  ^ue  fed  with  Wh^teh- bi'edd. 
They  ndther  work  ib  well  nor  look  (b  well;  and  as  therb  iS'  not^ 
tlip:(dme difference  between  the  people  of  fafhion  in  the  two  coini-^ 
tciesk  ffXpei'ience  would  feeth  to  fliow,  that  the  food  of  the  com^^ 
mQQ  people  in  Scotland  is  not  fo  fuitable  to  the  hximan  tiohftitution!^ 
as  that  of  their  neighbours  of  the  famt  rank  4n  Englandl     Bat^ 
it  Icenu  to  be  otherwife  with  potatoes.    The  dltfn-ftieh,  portei^^,'^ 
andocoalheavtrs  in  London/and  thofe  unfoituniite  women  •whd'^ 
live  byiproftitution,  tk*  ftrongeft  men  and  the  Woft  btiutiftijl  #6-- 
men  perhaps  in  the  ^ritifh  dominions,  are  faid  to  be,  the  gfeatcT' 
p^  of  them^  iinm  the  loweft  rank  <tf  peoplfe  -ih'  Ifdartdj  who ' 
are:  genecallyfiBd  with  this  root.     No  food  cah  affiwd  a  mdiie  dfr- ' 
VpL.  I.  D  d  r  cifive 


m 


i 


w^ 


r^t  NAT^Rf  ANO  e^mE$  or 


fi^*^  tjo  the  l^^  pf  ,^e  ^n^^n  apnftiturioii. 

It  is  diflicuU  to  preferve  potatoes  through  the  year,  and  impof- 
fible  to  ftore  them  like  corn,  ^r  two  or  three  years  together. 
The  fear  of  not  hnng  able  to  (ell  them  before  they  rot,  <ibftourages 
their  cultivation  >  and  is,  perhaps,  the  chief  obftade  to  thdr  ever 
becoming  in  any  great  country,  like  bread,,  the  principal  vegetable^ 
food  of  all  the  difierent  r|in|cy  of  tjhe  people.. 


T  A%  T    It, 

€>f  the  Produce  of  Land  which  fometimes  does,  and' fometimei.  d6et> 
J  not,  afford  Rent, 

TjUNIAN  f^  ieems  x.o\»  ^e  only  produ^  of  I^tnd  wincht 
always  afu)  ^eceflarily  affords  fome  rent  tp  the  landlord. 
Other  forts  ^f  pcojducp  fcpfOimes  n)ay  s^ld  fqi^etimes  may  nqt,  «c- 
cording.tp  (ti^rent  prcunfil^ai^fxsk 

ARTCft  food*  clcAthing  and  kxiging  an  thttwo.gceat  wants  of^ 
mankind.  » 


Lamd  in  its  original  rude  flate  can  afford  tJiemateriab  of  doath*- 
iQg  and  lodj^g  to  a  much  greater  numb^  of  people  than  it  cant 
feed.  In  its  imprPVed  ^tc  it.  can  fometimes  feed  a  greater  num-- 
bcr  of  people  tiian  it  can  fupp^y  with  thoib  materials,  at  leaft. 
ip  ^e  way  in  wlu^h  they  require  them*  and  are  willing  to  pay. 
for  thein.  Iq  the  one  ftate,  therefore,  there  is  always  a  fuper-- 
abundance  of  diofe  materials,  which  are  frequently  upon  that; 
ac^ovint  of  little  or  no  value.  In  the  other  there  is  often  a  icarci^,  > 
vthipfa^  i^efliuiljr  augipents  their  value.    In  the  one  ftate  a  great 


THE    WBALtH     Of    ^ATION^S. 


v>i 


part  of  them  i^  thrown  away  as  uleltfe,  and  the  price  of  whaf  is  uTed  C  HA  F. 
is  confidered  as  equsd  only  to  the  labour  and  expence  of  fitting  it  for 
ufe,  and  can,  therefore,  afford  no  rent  to  the  landlord.  In  the 
other  they  are  all  made  ufe  of,  and  there  is  frequently  a  demand 
for  more  than  can  be  had.  Somebody  is  always  willing  to  give 
mofe  for  every  part  of  them  than  what  is  fufficient  to  pay  the 
expence  of  bringing  them  to  market.  Their  price,  therefore,  can 
always  afford  fome  rent  to  the  landlord. 


The  ikins  of  the  larger  animals  were  the  original  materials  of 
cloathing.  Among  nations  of  hunters  and  fhepherds,  therefor^, 
whoft  food  confifts  chiefly  in  the  flefhof  thofe  animals,  every  man 
by  providing  himUHf  with  food,  pro>^des  himfelf  with  the  mate- 
rials ^more  cloathing  than  he  can  wear.  If  there  Was  no  foreign 
commerce,  the  greater  part  of  them  would  be  thrown  away  as 
things  of  no  value.  This  was  probably  the  cafe  among  the  hunting 
nations  of  North  America,  before  their  country  v«ras  difcovered 
by  the  Europeans*  with  whom  they  now  exchange  their  furplus 
paltry,  for  blankets,  fire-arms,  and  brandy,  which  gives  it  fome 
value.  In  the  prefent  commercial  ftate  of  the  known  world,  the 
moft  barbarous  nations,  I  believe,  among  whom  land  property  is 
eftablifhed,  have  fome  foreign  commerce  of  this  kind,  and  find 
among  their  wealthier  neighbours  fuch  a  demand  for  all  the  ma- 
terials of  cloathing,  which  their  land  produces,  and  which  can 
neither  be  wrought  up  nor  confumed  at  home,  as  raifes  their  price 
above  what  it  cofls  to  fend  them  thither.  It  afibrds,  therefore, 
ibme  rent  to  the  landlord.  When  the  greater  part  of  the  highland 
oattle  were  confumed  on  their  own  hills,  the  exportation  of  their 
hides  made  the  moft  confideraUe  article  of  the  commerce  of  that 
country,  and  what  they  were  exchanged  for  afforded  fome  addition 
to  the  rent  of  the  highland  eftates.  The  wool  of  England,  which 
in  old  times  could  neither  be  c<mfiimed  nor  vmrought  up  at  hbrne, 
'..'.'  D  d  2  found 


»  '8 


^H 


THE    NATURE    AND    CAUSES     OP 


BOO  K  found  a  market  in  the  then  wealthier  and  more  induftnous  country 
of  Flanders,  and  its  price  afforded  fomething  to  the  rent  of  the  land 
which  produced  it.  In  countries  not  better  cultivated  than  Eng* 
land  was  then,  or  than  the  highlands  of  Scotland  are  now,  and 
which  had  no  foreign  commerce,  the  materials  of  cloathing  would 
evidently  be  fo  fuper-abundant,  that  a  great  part  of  them  would 
be  thrown  away  as  ufeleCs,  and  no  part  could  afford  any  rent  to 
thie  landlord. 


iai  ix&t  mttx-it: 


m 


The  materials  of  lodging  cannot  always  be  tranfported;  to 
f«  great  a  diflance  as  thofe  of  cloathing,  and  do  not  fo  readily 
become  an  objeft  of  foreign  commerce.  -  When  they  arc  fu^ 
per-abundant  in  the  country  which  produces  them,  it  fre-* 
quently  happens,  even  in  the  prefent  commercial  ftate  of  the 
world,  that  they  are  of  no  value  to  the  landlord.  A  good  flone 
quarry  in  the  neighbourhood' of  London  would  aflbrd  a  confider-^ 
able  rent.  In,  many  parts  of  Scotland  and  Wales  it  affords  none; 
Barren  timber  for  building  is  of  great  value  in. a  populous  and  well* 
cultivated  country,,  and  the  land  wliicli  produces  it,  affords  a  con- 
fiderable  rent.  But  in  many  parts  of  North  Americai  the  land- 
lord would  be  much  obliged  to  any  body,  who  would  carry  away 
the  greater  part  of  his  large  trees.  In  fomc  parts  of  the.  highlands 
uC  Scotland  the  hark  is  the  only  part  of  the  wood  whichj  for  want 
of  roads  and  water-carriage,  can  be  fent  to  market  The-  timber 
is  left  to  rot  upon  the  ground.  When  the  materials. of  lodging 
are  fo-  fuper-abundant,  the  part  made  ufe  of  i&  worth  only  the, 
labour  and  expence  of  fitting;  it  for  that:ufe.  It  affords,  no  rent 
to  the  landlord,  who  generally  grants  the  ufe  of  it  to  whoevei) 
takes  the  trouble  of  a(king  it.  The  demand  of  wealthier  nations, 
however,  fometimes  enables  him  to  get  a<rent  for  it.  Tlie  paving 
of  the  ffreets  of  London  has  enabled  the  owners  of  fome  barren 
locks  on  the  coaff  of  Scotland  to  draw  a  rent  from  what  never  af- 
7  -  forded 


•4»^» 


THE    WEALTH    OF    NATIONS; 


2»$ 


fbrded  any  before.    The  woods  of  Norway  and  of  the  coafts  of  ^H^P. 
the  Balticky  find  a  market  in  many  parts  of  Great  Britain  which 
they  could  not  find  at  home,  and  thereby  afford  fome  rent  to  thdr 
proprietors. 

Countries  are  populous,  not"  in  proportion  to  the  number 
of  people  whom  their  produce  can  cloath  and  lodge,  but  in  pro- 
portion to  that  of  thofe  whom  it  can  feed.  When  food  is  pro- 
vided, it  is  eafy  to  find  the  neceflaiy  cloathing  and  lodging;  But 
though  thefe  are  at  hand,  it  may  often  be  difficult  to  find  food* 
In  fome-  parts  even  of  the  Britifti-  dominions  what  is  called  A 
Houfe,  may  be  built  by  one  day's  labour  of  one  man.  The  fimpleft 
fpeciesof  doathing,  the- (kins  of  animals,  requires  fomewhat  more 
labour  to  drefs  and  prepare  them  for  ufe.  They  do  not,  however^ 
require  a  great  ded.  Among  favage  and'  barbarous  nations,  a 
hundredth- or  little  more  than  a  hundredth  par^  of  the  labour  of 
the  whole  year,  will  be  fufiicient  to  provide  thehi  with  fuch  cloath- 
ing and' lodging  as  fetisfy  the  greater  part  of  the  people.  All  the 
other  ninety-nine  parts  are  frequently  no  more  than  enough  tQ' 
provide  them  with  food;         ^i^f«'  »s  BiMmwd  -.:)m 

But  when  by  the  improveme??t  and' cultivation  of  land  the  la» 
hour  of  one  family  can  provide  food  for  two,  the  labour  of  half  the 
fociety  becomes  fufiicient  to  provide,  food  for  the  whole.  The 
other  half;  therefore,  or  at  Icaft  tfie  gjeatqr  part  of  them,  can  be 
emplbyed  in  providhig  other  things;  or  in  fatisfyihg  the  other  wants 
and  fancies  of  mankind.  Cloathing  and  lodging,  houfehold  fur- 
niture, and  v4iat  is  called  Equipage,  are  the  principal  objects  of/ 
the  greater  part  of  thofe  wants  and  fancies.  The  rich  man  con- 
fiimes  no  more  food  than  his  poor  neighbour.  In  quality  it  may 
be  very  different,  and  to  fele«^  apd  prepare  it  may  require  more 
labour  and.  art;  but  in  quantity  it  is. very  nearly  the  fame.    But- 

compare  : 


H'J 


4^ 


THE  NATURE  AN©  CAUSES  OP 


Jf  O  o  K   compare  \kt  'fpaeiotts  *pal«ee  ftnd  gtfeat  ivafdr^be  of  ikie  (me«  inth 

die  hovel  and  the  few  r^s  of  the  other,  Und  you  will  bis  fthftblc 

that  the  ■iKfl»renct  between  their  cloathing,  lodging,  and  hottic'* 

'hold  furniture,  is  almoft  as  great  in  quantity  as  it  is  in  quality. 

The  defire  of  food  is  limited  in  eveiy  man  by  the  narrow  capacity 

of  the  human  ftoraach;  but  the  delu'e  of  the  conveniencies  and 

ornaments -df  building,  drefs,  equipage,  and  houfehold  furniture, 

feems  to  hanre  no  limit  or  <:ertain  boundary.     Thoie,   therefore! 

who  have  the  command  of  more  food  than  they  themfelve*  can 

•confiime,  are  always  willing  to  exdiange  the  furplus,  or,  what 

is  the  farrie  thing,  the  price  of  it,  for  gratifications  of  this  other 

J(ind.     What  is  over  and  above  Satisfying  the  Unuted  defire,   is 

;given  for  the  amufement  of  thofe  defires  which  cannot  be  iatisfied, 

but  feem  to  be  altogether  endleis.     The  poor,  in  order  to  obtain 

food,  exert  themfeves  to  gratify  thofe  fancies  of  the  rkh,  and  to 

obtain  it  more  certainly^  they  vie  with  one  another  ki  the  ^heap- 

nefs  and  perfedion  of  their  work.    The  number  of  workmen  in- 

•creaTes  with^  the  increafing  quantity  of  food,  or  with  the  growing 

improvement  and  cultivation  of  the  lands  j  and  as  the  nature  of 

their  bufinefs  admits  of  the  utmofl  fubdivifioni  of  labour,  the 

•quantity  of  mateiials  which  they  can  work  up,  increafes  in  a  much 

greater  proportion  than  their  numbers.     Hence  arifes  a  demand 

for  every  fort  of  material  which  human  invention  can  employ, 

«ither  ufefully  or  ornamentally  in  building,   drefs,  equipage,  or 

houfehold  furniture;     for  the  foflSls  and  minerals  contained  in 

t1ie  bowels  of  the  earth  j  the  precious  metals,  and  the  precious, 

Aones. 


'M* 


Food  is  in  this  mtmnier,  hot  only  die  original  foiufceof  rent» 
but  evttry  dther  part  of  the  produce  of  land  which  alfterwards 
afilMtd&rentk  derives  that  part  of  its  value  from  the  improvement  of 
<lie  powers  of  labour  in  producing  food  by  means  of  the  miprove- 
meat  and  cultivation  of  land. 

Thosx 


THE    WEALTH    OF    NATIONS* 


207 


Tnocs  other  ptrts  of  the  produce  of  land,  however,  which  C HA  P, 
afterwards  afibrd  rent,  do  not  af{brd  it  always.  Even  in  improved 
and  cultivated  countries,  the  demand  for  them  b  not  always  fueh 
as  to  aflbrd  a  greater  price  than  what  is  fufficient  to  pay  the  la« 
hour,  and  replace,  together  with  its  ordinary  profits,  the  ftock 
which  muft  be  employed  in  bringing  them  to  market.  Whether, 
itia  or  is  not  fuch„depends  upon  different  circumftances. . 

Whkthbr  a  coal-mine,  for  example,  can  afford  any  rent>. 
depends  partly^  upon  its  fertility,  and  partly  upon  its  fltuation.. 

•         •  '■  •  .■  ■••     1° 

A  MiNE:of  any.  kind  may  be  faid  to  be  either  fertile  Or  barreni^ 
according:  as  the  quantity  of  mineraL  which  can  be  brought  froni  it 
Ity  a  certain :  quantity  of  labour,  is  greater,  or  le&  than  what  can 
bebrought  by.  an  >oqu^  quantity  from  the  greater  part  of  other 
n|inc8.of.the.£imc  kind. 

Some  coal-mines  advantageoufTy  fituated^'  cannot'  be  wrbughtt 
an  account  of  their  barrennefs.  The  produce  does  not  pay  the. 
expencr.    They  can  afford  neither  profit  nor  rent. 

There  are  iomc  of- which  the  produce  is  barety  fufficient  ta- 
gay  the  labour,  and  replace,  together  with  its  onfinary  profits,  the: 
ftock  employed  in  working  them;  They  affiird  fome  profit  to  the- 
undert^er  of;  the  work,  but'  no  rent-  to  the  landlord..  They  can  > 
be  wrought  advantageoufly  by  nobody  but  the  landlord,  who  being , 
himjfelf  undertaker  of  the  work,  gets  the  ordinary;  piT>fit'of  the.- 
capital  which  he  employs  in  it.  Many  coal-amines  in  Scotland  are  .^ 
wrought  in  this  manner,  and  caff  be  wrought- in  no  other..  The^ 
landlord  will  allow  no  body  elfe  to  work.tliem  without  payings  ibmCw 
rent, ,  and  no  body  can  afford  to  pay  any. . 

Others 


if  J 


■IP 


I 


9o8 


THE 


^^1^^^ 


Other  coal-minei  in  the  fame  country  fqiEclently  f|;rti|e,  c;^- 
ndt  be  wrought  on  account  of  theip  fituation^  A  quantity  of  ii)i|i^ei^^|^ 
fufficicnt  to  defray  the  expence  of  working,  could  ,be  brpyght^; 
from  the  mine  by  the;  ordinary,  q^  evei^  Ie|§  than  .(he  picdii^sg^,  ^ 
quantity  of  labour :  ,  But  in  f^n  i^iland  coui^try,  t^u^^y  ^f^^b.ite^ji  r 
and  without  either  good  roads, or  water-carpage,  thifj  qiu^^^ty 
could  not  be  fold.  .     ,.,  ;  v;^j^^,H '>HiM>Jv1«'>«i*w  nr>litn^^^^ 

iv^:ii>f  •»    i«««t^u  VttHviti  nit  nm^fytii'mUlimii  fiiviJwh- liUilftHfil  ail' 
Co^Ls  {ire  a  lefs  agi;eeabl^i  k^ff^  (hgn  wppd :  they;  arc,  faid/  tioo  to 

be  lefs^wholefome.  The, expence  of  ipoals,  thercfo)^e«  at  the  i^ace^ 
where  they  ^^re  confumed,  muft  generally  be  fomewhat  lefs  than 
that  of  wood.    j^(^,j^^0.^  T^^q,  ^j  L|«„  j»i*.i,iii    « r3;fc<Aj.i;  <'*»»  9M«*  fi-'" 

Thk,  pricfi  of  wood  again  varies  with  the  ftate  of  agriooltUlVi' 
nearly  in. the  fame  m^nnsr^  and  exactly  for  the  fame  reafori,  as'the' 
price  of  cattle.     In  its  rude  begiimings,  the  greater  part  tsf  erery 
country  is  covered  with  wood,  which  is  then  a  mere  incumbrance  of 
no  value  to  th^^andlord,  who  would  gladly- giv|&.|t  to  any  body  lor 
the  cutting.     As  agriculture  advances,  t;he  woods  are  partly  cltared 
by  the  progrefs  of  tillage, , and  partly  go  to  decay  in  confequence/  c^ 
the  increafed  number  of  cattle.     Thefe,  though  they  do  not  increafe  * 
ip  the  fame  proportion  as  corn,  which  13  ^1  together  the  acquifition  : 
of  human  ^dufliry,  yet  multiply  under  thccaic  and  prote^ton  oft 
men ;  who  flore  up  in  the  feafon  of  plenty  what  may  maintain; 
them  in  that  of  fcarcity.  wl^p  through  the  whole  year  fumifh  thqni; 
with  a  greater  quantity  of  food  than  uncultivated  nature  provide^? 
for  t^em^  and  who  by  deflroying  and  extirpa,ting  their  enemic^s, 
fecure  them  in  the  free  enjoyment  of  all  tl^t  fhp  provi^s.,  ^^u^j; 
roerous  herds  of  cattle,  when  allowed  to  wander  through  the,wpp4s«/ 
thoiigh  they  do  not  deflroy  t|ie  old  trees,  hinder  any  (young  on€8[i 
from  coming  up,  fo  that  in  the  courfe  of  a  century  or  two  the. 
whole  foref^  goes  tp  ruin.     The  fcarcity  of  wood  then  raifcs  its 

price. 


■'■i.^* 
7^-^- 


THE    WEALTH    OF    NATIONS. 


209 


price.  It  affords  a  good  rent,  and  the  landlord  fometimes  finds  ^Sj^^' 
that  he  can  fcarce  employ  his  befl  lands  more  advantageoufly  than 
in  growing  barren  timber,  of  which  the  greatnefs  of  the  profit 
often  compenfates  the  latenefs  of  the  returns.  This  feems  in 
the  prefcnt  times  to  be  nearly  the  ftate  of  things  in  fcveral  partu 
of  Great  Biitain,  where  the  profit  of  planting  is  found  to  be 
equal  to  that  of  either  corn  or  pafture.  The  advantage  which 
the  landlord  derives  from  planting,  can  no  where  exceed,  at  lead 
for  any  confiderable  time,  the  rent  which  thefe  could  afibrd  him; 
and  in  an  inland  country  which  is  highly  cultivated,  it  will  fre- 
quently not  fall  much  Ihoit  of  this  rent.  Upon  the  fea-coafi:  of  a 
well  improved  country,  indeed,  if  it  can  conveniently  get  coals 
for  fewel,  it  may  fometimes  be  cheaper  to  bring  barren  timber  for 
building  from  lefs  cultivated  foreign  countries,  than  to  raife  it  at 
home.  In  the  new  town  of  Edinburgh,  built  within  thefe  few 
yeai-s,  there  is  not,  perhaps,  a  fingle  ftick  of  Scotch  timber. 


Whatever  may  be  the  price  of  wood,  if  that  of  coals  is  fuch 
that  the  expence  of  a  coal-fire  is  nearly  equal  to  that  of  a  wood  one, 
we  may  be  afiured,  that  at  that  place,  and  in  thefe  circumftances, 
the  price  of  coals  is  ai  high  aa  it  can  be.  It  feems  to  be  fo  in  fome 
of  the  inland  part»  of  England,  particularly  in  Oxfordfhire,  where 
it  is  ufual,  even  in  the  fires  of  the  common  people,  to  mix  coals 
and  wood  together,  and  where  the  difference  in  the  expence  of  thofe 
two  ibrts  of  fewel  cannot,  therefore,  be  very  great.  ,^^tiHimr- 

-  Coals,  in  the  coal  countries,  are  every  where  much  below  this 
higheft  price.  If  they  were  not,  they  could  not  bear  the  expence 
of  adiftant  carriage,  either  by  land  or  by  water.  A  fmall  quantity 
only  could  be  fold,  and  the  coal  matters  and  coal  proprietors  find 
it  more  for  their  intereft  to  fell  a  great  quantity  at  a  price  fome- 
what  above  the  loweft,  than  a  fmall  quantity  at  the  higheft.  The 
.t:.,VoL.  I.  E  e  mofl: 


210 


THE    NATURE,  A?^P.  PAUSES    pp 


BOOK  moft  fertile  coal-mine  too,  regulates  the  price  of  coals  at  all  the 
'  '  other  mines  in  its  neighbourhood.  Both  the  proprietor  and  the 
undertaker  of  the  work  find,  tlie  one  that  he  can  get  a  greater 
rent»  the  other  that  he  can  get  a  greater  profit,  by  fomewhat  un- 
derfelling  all  their  neighbours.  Their  neighbours  are  fopn  obliged 
to  fell  at  the  fame  price,  though  they  cannot  fo  we)lafibrd  it,  and 
tiiough  it  always  diminifhes,  and  fometime^  takes  away  altogether 
both  their  rent  and  their  profit.  Some  works  are  abandoned  al- 
together; others  can  afford  no  rent,  and  can  \k  wrought  only  by  the 
propnetor..^^, .^j,^,^  jj^^tj.  %>  Soviif  r>jrf T     .mffl  bmtiarj'ioittt  m 

The  lowefl  price  at  which  coals  can  be  fold  for  "^ny  confiderable 
time,  is  like  that  of  all  other  commodities,  die  price  which  is 
barely  fuffident  to  replace,  together  with  its  ordiaary  profits,,  the 
ftock  which  muft  be  employed  in  bringing  them* ta  market.  At  a. 
coal-mint  ibr  winch,  the  landlord  can  get.  no  rent,  but  whidi  he- 
mufl  either  work  himfelf  or  let  it  alone  altogether,  tiie  price  p£ 
coalsimuft^necally  be  neariy  about  tliis  price.,  iahm.  km  «^(^ra 
fKxn   'id)   JR  ,«lBl9rrr   ?Aim)ym  ^i\t  )  ^  >i;'ti  aroni  Uiil    bnt  .,iliBo> 

Rent,  even  where  coals  a^ord  one.  Hat  generally  a  fmallir 
fhare  in  thdr  price  than  in  that  of  moft  other  parts  of  die  rude  pro« 
duce  of  land.    The  rent  of  an  efbte  above  ground,  commonly.' 
amounts  to  what  is  fuppofed  to  be  a  third  of  the  groft  producei; 
and  it  is  generally  a  rent  certain  and  independent  of  the  i>ceafionid 
variations  in  the  crop.    In  coal-mines  a  fifth  of  the  grofs-  produce 
is  a  very  great  rent;  a  tenth  the  common  rent,  and  it  is  feldom  a 
rent  certain,   but  depends  upon  the  occafion^  variations  in  the  ^ 
produce.    Thefe  are  fo  great j  that  in  a  country  where  thir^  yeara 
purchafe  is  confidered  as  a  moderate  price  for  the  property,  of  a 
landed  eftate,  ten  years  purchafe  is  regarded  as  a  good  price  for. 
that  of  a  coal-mine.  ........ 


m 


YhE    WEALT^^H    01^    NATIONS. 

''••fte  ^h^H^'^•^c6il^}Mi^^'^^  frequentty 

arinW(}h  lipon  its  ntua*tion  as  upon  its  fertility.  That  of  a  metallick 
mine  depends  more  upon  its  fertility,  and  lefs  upon  its  fituation. 
The  C6arfe/ahd  (HU  more  the  precious  metals,  when  feparated  from 
the»6t^,  are  To  valuable  that  they  can  generally  bear  the  expence  ot 
aVfery  \btig'  land,  and  of  the  nioft'  didant  fea-carriage.  Their 
m^^ket  is  not  confined  to  the  countries  in  the  neighbourhood  of 
the  minii,  but  eiitehdsto  the  whole  world.  The  copper  of  Japan 
makes  an  article  in  the  commerce  of  Europe  j  the  iron  of  Spain 
in  that  of  Chili  and  Peru.  The  filver  of  Peru  finds  its  way,  not 
only  to  Europe,  but  from  Europe  to  China.      ■.■,,'  ^ 


J,;  J 


Thb. price ^f  coals  in  Weftmoreland  or  Shropftiire  can  have  little 
ef!e£lon>  their  price  at  Newcaftle;  and  their  price  in  theX.ionnois 
can  have  none  at  all.  The  productions  of  fuch  diftant  coal-mines 
can  never  be  brought  into  competition  with  one  another.  But 
the  produ^ons  of  the  moft  diftant  metallick  mines  frequently 
may,  and  in  fa£t  commonly  are.  The  priccj,  therefore,,  of  the 
coarfe,  and  ftill  more  that  of  the  precious  metals,  at  the  mod 
fertile  mines  in  the  world,  mufl:  neceiTarily  more  or  leis  afFe£t  their 
price  at  every  other  in  it.  The  price  of  copper  in  Japan  muft 
have  fome  influence  upon  its  price  at  the  copper  mines  in  Europe. 
The  price  of  Alver  in  Peru,  or  the  quantity  either  of  labour  or  of 
other  goods  vrhich  it  will  purchaie  there,  mult  have  feme  influence 
on  its  price,  not  only  at  the  filver  mines  of  Europe,  but  at  thofe 
of  China.  •  After  the  difcoveiy  of  the  mines  of  Peru,  the  filver 
mines  of  Europe  were,  the  greater  part  of  them,  abandoned. 
The  value  of  filver  was  fo  much  reduced  that  their  produce  could 
no  longer  pay  the  expence  of  working  them,  or  replace,  with  a 
profit,  the  fopd,  cloaths,  lodging,  and  other  necelTaries  which 
were  confumed  in  that  operation.  This  was  the  cafe  too  with  the 
mines  of  Cuba  and  St.  Domingo,  and  even  with  the  antient  mines 
of  Peru,  after  the  difcovery  of  thofe  of  Potofi. 

E  e  2  The 


2X1 


h  .■ 


[1, ' 


i 


H7( 
'I 


iJX 


THE  NATURE  AND  CAUSES  OF 


B  P  O  K  The  price  of  every  metal  at  every  mine,  therefore,  bong  regulat- 
ed in  fome  meafure  by  its  price  at  the  mod  fertile  mine  in  the  world 
that  is  a£^ua]ly  wrougiu»  it  can  at  the  greater  part  of  mines  do 
very  little  more  than  pay  the  expence  of  working,  and  can  feldom 
afford  a  very  high  rent  to  the  landlord.  Rent,  accordingly, 
feems  at  the  greater  part  of  mines  to  have  jut  a  fmall  (hare  in  the 
price  of  the  coorfc,  and  a  flill  fmaller  i|i  that  of  the  precious 
metals.    Labour  and  profit  make  up  the  greater  part  of  both.  ffffiM- 

A  sixtH  part  of  the  grofs  produce  may  be  reckoned  the  average 
rent  of  the  tin  mines  of  Comwal,  the  moft  fertile  that  are  known 
in  the  world,-  as  we  are  told  by  the  Reverend  Mr.  fiorlace, 
vice-warden  of  the  ftannaries.  Some,  he  fays,  afford  more,  and 
fome  do  not  afford  fo  niuch.  A  fixth  pait  of  the  grofs  pro- 
duce is  the  rent  too  of  feveral  very  fei^ile  lead  mines  in  Scot- 
Jand.     ^  ■   ■  '■  ■       '  ^    '''  '"    '\      ', '  '   '  "'■  m' 

In  the  filver  mines  of  Peru,  we  are  told  by  Frezier  and  Ulloa, 
the  proprietor  frequently  exa£^s  no  other  acknowledgement  from 
the  undertaker  of  the  mine,  but  that  he  will  grind  the  ore  at 
hid  mill,  paying  him  the  ordinary  multure  or  price  of  grinding. 
The  tax  of  the  king  of  Spain,  indeed,  amounts  to  one-fifth  of 
the  ftandard  filver,  which  may  be  confidered  as  the  real  rent  of 
the  greater  part  of  the  filver  mines  of  Peru,  the  richefl  which 
are  known  in  the  world.  If  there  was  no  tax,  this  fifth  would 
naturally  belong  to  the  landlord,  and  many  mines  might  be 
wrought  which  cannot  be  wrought  at  prefent,  becaufe  they  can-  ' 
not  afford  this  tax.  The  tax  of  the  duke  of  Comwal  upon 
tin  is  fuppofed  to  amount  to  more  than  five  per  cent,  or  one 
twentieth  part  of  the  value ;  and  whatever  may  be  his  proportion  r 
it  would  naturally  too  be'ci.g  to  the  proprietor  of  the  mine,  if  tin 
was  duty  free.    But  if  you  add  one-twentieth  to  one  fixth,  you 

wiU 


# 


THE    WEALTH     OP    NATIONS. 


«13 


wIM'  find  that  the  whole  avcraf*c  rwit  of  the  tin  mines  of  Corn-  ^'L^^* 
waU  is  to  the  whole  average  rent  ot  the  filver  mines  of  Peru, 
as  thirteen  to  twelve.  The  high  tax  upon  filver  too,  gives  much 
greater  temptation  to  fmuggUng  than  the  low  tax  upon  tin»  and 
fmuggling  mud;  be  much  eafier  in  the  precious  than  in  the  bulky 
commodity.  The  tax  of  the  king  of  Spain  accordingly  is  faid 
to  be  very  ill  paid*  and  that  of  the  duke  of  Comwal  very  well. 
Rent,  therefore,  it  is  probable,  makes  a  greater  part  of  the  price  " 
of  tin  at  the  moft  fertile  tin  mines,  than  it  does  of  filver  at  the 
moit  fertile  f)lvcr  mines  in  the  world.  After  replacing  tlie  (lock 
employed  la  working  thoie  different  mines,  together  with  its 
ordinary  profits,  the  re^ld^e  which  remains  to  the  proprietor 
is  greater  it  feeras  in  the  coaife  than  in  the  precious  metal,  ;,„,^.jj.; 

o 

.i>K        r;.-  I    .      \.  ■'  ,'•■'■ 

NfiiTHER  ajie  the  profits  of  the  undertakers  of  filver  mlne» 
commonly  very  great  in  Peru.  The  fame  moil  refpe£lable  apd 
well  informed  authors  acquaint  us  that  when  any  perfon  under- 
takes tp  work  a  new  mine  in  Peru,  he  is  univerfally  looked  upon 
as  a  man  deflined  to  bankruptcy  and  ruin,  and  is,  upon  tliat  ac- 
count fhunned  and  avoided  by  every  body.  Mining,^ ^^t;  feems,  is 
confidered  there  in  the  fame  light  as  here,  as  a  lottery  in  whicli 
the  prizes  do  not  compenfate  the  blanks,  though  the  greatnefs  m 
of  feme  tempts  many  adventurers  to  throw  away  their  fortunes^ 
in  fuch  unprofperous  proie6is.  . .     ^    .    ^^ 

As  the  fovereign,  however,  derives  a  confiderable  part  of  his 
revenue  from  the  produce  of  (ilver  mines,  the  law  \n  Peru  gives 
every  poffible  encouragement  to  the  difcovery  and  working  of 
new  ones.  Whoever  difcovers  a  new  mine,  is  ehtitled  to  mcafure 
off  two  hundred  and  forty-fix  feet  in  length,  according  to  what 
ht  fUppofes  to  be  the  direftion  of  the  vein,  and  half  as  much  in 
breadth.  He  becomes  proprietor  of  thrs  portion  of  the  mine, 
'■•%'. -'^'.-V;  ■■■■■--^      and"' 


•*..,« 


*^ 


m 


•m* 


H 

'¥:■ 


«- 


a^4t 


* 


THE    NATURE    AND    CAlXgES    OF 


^% 


3.0.0'K  and  can  work  it  ilvidiout  payitig  any  acknowledgement'  ttf  the- 
landlord.  The  interefl  of  the  duke  of  Cornwal  has  given  oc^ 
cafion  to  a  regulation  nearly  ofi  the  fame  kind  in^  that  antient- 
vdutchy.  In  wafte  and  uninclofed  lands  any  perlbn  who  dif;> 
covers  a  tin  mine,  may  mark  out  its  limits  to  a  certsan  extent, 
ivhich  is  called  bounding  a  mine.  The  bounder  becomes  the  reai 
proprietor  of  the  mine,  and  may  either  work  it  himfelf,  or  give  it. 
in  leafe  to  another,  without  the  confent  of  the  owner  of  the*  land, 
to  whom,  however,  a  very  fmall  acknowledgement  muft*  be  paid 
upon  workii^  it.  In  both  regulations  the  facred  rights  of  pri> 
vate  property  are  faciifieed  ta  the  fuppoied  interefts  of  publkk 
jrevenue.  io« -pu.;  r.'yi.isv  i^.^  ...joc/*;  'i-i-a    ig   i.uii.-up   v2  nai  :;.f. 


V3iKt 


■*«»• 


# 


^ 


<-* 


Thi  fame  encouragement  is  given  in  Peru  to  the  difcovdy  tfW<f 
itvorking  of  new  gold  mines;  and  in  g^  the  king's  ta)(  amounts 
only  to  a  twentieth  part  of  the  ftandard  metal.  It  was  once  A 
fifth,  as  in  filver,  but  it  was  found  the  work  could  hot  bear  it. 
If  it  is  rare,  however,  fay  the  fame  authors,  Frezier  and  Ulloa, 
to  find  a  perfon  who  has  made  his  fortune  by  a  filver,  it  is  ftill 
much  rarer)^  find  one  who  has  done  fo  by  a  gold  mme.  This 
twentieth  f»rt  feems  to  be  the  whole  rent  which  is  paid  by  the '' 
greater  part  of  the  gold  mines  in  Chili  and  Peru.  Gold  too 
is  much  more  liable  to  be  fmuggled  than  even  filver;  not  only 
on  account  of  the  fuperior  value  of  the  metal  in  proportion  to 
its  bulk,  but  on  account  of  the  peculiar  way  in  which  nature 
produces  it.  Silver  is  very  Seldom  found  virgin,  but,  like  moft 
other  metals,  is  generally  mineralized  with  fome  other  body,  from 
which  it  is  impoflible  to  feparate  it  in  fuch  quantities  as  will  pay 
for  the  ejopence,  but  by  a  very  laborious  and  tedious  operation, 
which' cannot  well  be  carried  on  but  in  workhoufes  ere6led  for 
the  pm^ofe,  and  thereforov^expofed  to  the  infpeflion  of  the  king's, 
•officers.  Gold«  on  the  contrary,  is  almoft  always  fband  virgin.  It  is 
-:ut  '  ji  *  ibmetimcs^ 


V 


t 


THE    WEALTH    OP    NATIONSC: 


fbmetlmes  ibund  in  pieces  of  fome  bulk;  and  even  when  mixed 
in  fmall  and  almoft  infenfible  particles  with  fand,  earth,  and  other 
coEtraneous  bodies,  it  can  be  feparated  from  them  by  a  very  (hort 
and  iim{de  operation,  which  can  be  carried  on  in  any  private 
houie  by  any  body  who  is  pofTeAed  of  a  fmall  quantity  of  mer- 
cury. If  the  king's  tax,  therefore,  is  but  ill  paid  upon  filver, 
it  is  likely  to  be  much  woHe  paid  upon  gold;  and  rent  muft 
make  a  much  iinaller  part  of  the  price  of  gold,  than  even  of  that 
of.iUvw*  nu^,\tihiOfii:ie  Jiiif! it  iijiasq  a -i3£»vawtitt  .ijpGriw.pl 

ymq  ici^glc^u  batofii  'Jtii  mmi^unvt  .ihctt*  nl     'n  0i:A-H^^  a^ifiv 
The  loweff  price  at  which  the  precious  metals  can  be  fold,  or 
the  fmallefl:  quantity  of  other  goods  for  which  they  can  be  ex-  *^ 
changed  during  any  confiderable  time,  is  regulated  by  the  fame- 
prMicij^es  which  fix  the  lowefl  ordinary  price  of  all  other  goods. 
Thf  ftock  which  muft  commonly  be  employed,  the  food,  cloaths^/ 
and  lodging,  which,  mufl  commonly  be,  confumed  in  bringing 
^lem  from  the  imine  to  the  market^  determine  it.     It  mufV  at  leaft: 
^XufficienC  to,  replace  that  Aock,  with  the  ordinary  proiite..      ^  ii^ 

Their  highefl  price,  however,  feemsnot  to  be  neceflarily  deter*^ 
mined  by  any  thing  but  the  adtual  fcarcity  or  plenty  of  thofe  metals  < 
themfelves.  It  is  not  determined  by  that  of  any  other  commo'^'r 
dity,  in  the  (suno  manner  as  the  price  of  coals  is  by  that  oF>  ifMR»d^|i 
beyond  wl^lch  no  fcarcity  can  ever  raife  itt.  Increafe  tke  fcarciVf' 
of  gdd  to  a  certain  degree,  and  the  fmallefl  bit  of  it  may  becomffj' 
more  precious  than  a  diamond^  and  exjcbange  for  a  greater  quantity^ 
of  other  goods.  •»:  •%••*-}  # /^UrtsnoL 'i'5ffio. 

The  demand  for  tHofe  metaldarifes  partly  from  tlmr  utility,'  and > 
partly  from  their  beauty.  If  you  except  iron^-.  they  are  more  ufefiili 
than,  perhaps,  any  other  metals  As  they  are  lefb  liable  to  rufV 
an4  impurity,  they  can  m<N'e  eafily  be  kept  deaii;  aiid  the  uten-^ 

4  filS' 


21 S 

CHAP. 
XI. 


<i 


*■ 


tr 


VJ 


«' 


?#•  ^' 


# 


.# 


»l. 


1*111 

Ijt 


n 


*• 


:^ 


;A 


2l6 


THE  NATURE  AND  CAUSES  OP 


#1  ♦ 


'■^. 


«< 


# 


%: 


3  O  O  K  fils  either  of  the  table  or  the  kitchen  are  often  upon  that  account 
more  agreeable  when  made  of  them.  A  filver  boiler  is  more 
cleanly  than  a  lead,  copper,  or  tin  one;  and  the  fame  quality 
would  render  a  gold  boiler  ftill  better  than  a  filver  one.  Their 
principal  merit,  however,  arifes  from  their  beauty,  which  renders 
them  peculiarly  fit  for  the  ornaments  of  drcfs  and  furniture.  No 
paint  or  dye  can  give  fo  fplendid  a  colour  as  gilding.  The  merit 
of  their  beauty  is  greatly  enhanced  by  their  fcarcity.  With  the 
greater  part  of  rich  people,  the  chief  enjoyment  of  riches  con- 
fifts  in  the  parade  of  riches,  which  in  their  eyes  is  never  fo  com- 
pleat  as  when  they  appear  to  poiTefs  thofe  decifive  marks  of 
opulence  which  nobody  can  pofTcfs  but  therafelves.  In  their  eyes 
the  merit  of  an  obje£t  which  is  in  any  degree  either  ufeful  or 
beautiful,  is  greatly  enhanced  by  its  fcarcity,  or  by  the  great 
labour  which  it  requires  to  colle6t  any  confiderable  quantity  of 
it,  a  labour  which  no  body  can  afford  to  pay  but  themfelves.  Such 
objeds  they  are  willing  to  purchafe  at  a  higher  price  than  things 
much  more  beautiful  and  ufeful,  but  more  common.  Theie  qua> 
lities  of  utility;  beauty,  and  fcarcity,  are  the  original  foundation 
of  the  high  price  of  thofe  metals,  or  of  die  great  quantity  of 
other  goods  for  which  they  can  every  where  be  exchanged.  Tliis 
value  was  antecedent  to  and  independant  of  their  being  employed 
as  coin,  and  was  the  quality  which  fitted  them  for  that  employ- 
ment. T)]At  employment,  however,  by  occafioning  a  new  de- 
mand, and  by  dim.inifliing  the  quantity  which  could  be  empbyed 
in  any  other  way,  may  haye  afterwards  contributed  to  keep  up 
or  increase  their  valuy. 


m 


^rfc 


^0- 


1.*     •* 


The  demand  for  the  precious  ftones  ariles  altogether  from  their 

beauty.     They  ai'e  of  no  uie,  but  as  ornaments;  and  the  merit 

of  their  beauty  is  greatly  enhanced  by  their  fcarcity,  or  by  the 

difficulty  and  expcnce  of  getting  them  from  the  mine.     Wages 

7  and 


andprofit  ^QcojwUpgljf  roakp,  upin^ppqfpipft.pccafions,  aJndQit  the 
wbple  of  their  high  price.    Rpnt  co^^es  ii>  but  fqr  a  very  finall  (hare  i 
fii^quQntly  Ipr  no  fhare ;  and  the  qioftfertilp  mines  only  affovd  any 
coirfiderable  rent.    When  T;^vf|n^ier>  aJc^cUer,  vifited  the  dia^ 
mond  mines  of  Golconda  and  yiin^po^r,  he  was  informed  tliat  the 
fbvereign  of  the  country,  for  whofe  benefit  they  were  wrought, 
had  ordered  all  of  them.to.be  fli4t,up  except  thofe  which  yielded 
the  largeft  and  fineft  ftones.    The  othersj*  it  feems,  were  to  the 
pifoprifitor  not  worth  the  working,     pUfo jq  tba  lo  ri/;fj  uifcyi^ 
•  ;mo3  Olt'tpyj/i-w  atjva  iadi  tn  /biriv/  ,i;3ri'>itJo  3l>fiiijq  :i»ilj  j^i  ..flu 
,1-  Al  the  price  both  of  the  precious  metals  and  of  the  precious 
ftones  is  regulated  all  over  the  world  by  their  price  at  the  moft 
fertile  mine  in  it,  thei*ent  which  a  » ^ne  of  either  can  afford  to  its 
proprietor  b  in  proportion,  not  to  its  abfolnte,  but  to  what  m^y  be 
called:  its  relative  f^istility,  or  to  its  fuperiorijy  over  other  mines  of 
the  fame  kind.    If  new  mines  were  difcovered  as  much  fuperior  to 
^thoife  of  PotoQ  as  they  were  fuperior  to  thofe  of  Europe,  the  value 
jDf  fjlver; , might  bp  fo  much  degraded  as  to  render  even  the  mines  of 
jPotofi  not  worth  the  working.     Before  the  difcovery  of  the  Spanilh 
"^Weft  Indies,  the  moft  fertile  mines  in  Europe  may  have  afforded 
,39  great  a  rent  to  their  proprietor  as  the  richefl  mines  in  Peru  do 
f^t  prefent. ,    Though  the  quantity  of  filver  was  much  leis,    it 
jnight  have  es^changed  for  an  equal  quantity  of  other  goods,  and 

the  proprietor's  (hare  might  have  enabled  him  to  purchafe  or  com- 
Jmand  an  equal  quantity  either  of  labour  or  of  commodities.  The 
vyaluc  both  of  the  produce  and  of  the  rent,  the  real  revenue  which 

they  afforded  both  to  the  publick  and  to  t^e  proprietor,  might 

have  been  the  fame. 


CHAP. 
-XI. 


Thk  moft  abundant  mines  either  of  the  precious  metals  or  of  the 
precious  ftones  could  add  little  to  the  wealth  pf  the  world.  A  pro- 
duce of  which  the  value  is  principally  derived  from  its  fcarcity,  is 

Vol.  I.  Ff  ^      neceflarily 


II  If 


ill 

:.  1    in 

1    r 


m 


itiB 


THE    ifJAttJRE    AND    CAUSES    OF 


neceffaiily  degraded  by  its  abundance.  A  fervice  of  plate,  and  the 
other  fiivolous  ornaments  of  drefs  and  furniture,  could  be  purchafed 
for  a  fmailer  quantity  of  labour,  or  for  a  fmaller  quantity  of  com- 
modities ;  and  in  this  would  confift  the  fole  advantage  which  the 
world  could  derive  from  that  abundance. 

It  is  otherwife  in  eftates  above  ground.  The  value  both  of 
their  produce  and  of  their  rent  is  in  proportion  to  their  abfolute, 
and  not  to  their  relative  fertility.  The  land  which  produces  a 
certain  quantity  of  food,  cloaths  and  lodging,  can  always  feed, 
cloath  and  lodge  a  certain  number  of  people;  and  whatever  may  be 
the  proportion  of  the  landlornl,  it  will  always  give  him  a  propor- 
tionable command  of  the  labour  of  thofe  people,  and  of  the  com- 
modities with  which  that  labour  can  fupply  him.  The:  value  of 
the  moft  bafren  lands  is  not  diminifhed  by  the  neighbourhood  of 
the  moft  fertile.  On  the  contraiy,  it  is  generally  increafed  by  it. 
The  great  number  of  people  maintained  by  the  fertile  lands  afford 
a  market  to  many  parts  of  the  produce  of  the  barren,  which  they 
could  never  have  found  among  thofe  whom  their  own  produce 
could  maintain. 


7i 


Whatever  increafes  the  fertility  of  !and  in  producing  food, 
jncreafes  not  only  the  value  of  the  lands  upon  which  the  improve- 
ment is  beftowed,  but  contributes  likewife  to  increafe  that  of  many 
other  lands,  by  creating  a  new  demand  for  their  produce.  That 
abundance  of  food,  of  which,  in  confequence  of  the  improvement 
of  land,  many  people  have  the  dilpofal  beyond  what  they  them- 
felves  can  confume,  is  the  great  caufe  of  the  demand  both  for  the 
precious  metals  and  the  precious  ftones,  as  well  as  for  every  other 
convenlency  and  ornament  of  drefs,  lodging,  houfhold  furniture, 
aind  equipage.  Food  not  only  conftitotcs  the  principal  part  of  the 
riches  of  the  world,  but  it  is  the  abundance  of  food  which  gives 

.      .  the 


THE    WEALTH    OF    NATIONS. 


219 


the  principal  part  of  their  value  to  many  other  forts  of  riches.    ^  yA  ^* 
T-he  pool*  inhabitajnts  of  Cuba  and  St.  Domingo,  when  they  were  \yyrsi 
iirft  difcovered  by  the  Spaniards,  ufed  to  wear  little  bits  of  gold  a$ 
ornaments  in  their  hair  and  other  pwts  of  their  drefs.      They 
feemed  to  value  them  as  we  would  do  any  little  pebbles  of  fome- 
what  more  than  ordinaiy  beauty,  and  to  confider  them  as  jud  worth 
the  picking  up,  but  not  worth  the  refufmg  to  any  body  who  alked 
them.     They  gave  them  to  thsir  new  guefts  at  the  firft  requeft, 
without  ieeming  to  think  that  they  had  made  them  any  very  valu- 
able prefent.     They  were  aflonifhed  to  obfcrve  the  rajge  of  the 
Spaniards  to  obtain  them ;    and  had  no  notion  that  there  could 
any  where  be  a  country  in  which  many  people  had  the  difpofal  of 
fo  great  a  fuperiluity  of  food,  fo  fcanty  always  among  themfelves, 
that  for  a  very  fmall  quantity  of  thofe  glittering  baubles  they  would 
willingly  give  as  much  as  might  maintain  a  whole  family  for  many 
years.    Could  they  have  been  made  to  underftand  this,  the  paflion 
of  the  Spaniards  would  not  have  furprifed  them. 


Part     III. 

Of  the  Variations  in  the  Proportion  between  the  rej^e^ive  Values  of 
that  Sort  of  Produce  which  always  affords  Rent t  and  of  that  which 
fometimes  does  and fometimes  dots  not  afford  Rent.  ';  , 

'TpH  E  increafing  abundance  of  food,  in  confequQTiHce  of  in- 
Gceafing  improvement  and  cultivation,  muft  necelTarily  increafe 
the  demand  for  every  part  of  the  produce  of  land  which  is  not 
food,  and  whkh  can  be  af^Ued  either  to  ufe  or  to  ornament.  In 
the  wliole  progrefe  of  imporovement,  it  might  therefore  be  expelled, 
there  Ihould  be  only  one  variation  in  the  comparative  values  of 
thofe  two  different  foets  of  produce.  The  value  of  tliat  iiprt  which 
fometimes  does  and  ibmatimes  docjs  not  afford  rent,  fliouWcon- 
flantly.rife  in  prqpornon^to  th^t  which  always  aflfords  fome  rent. 

F  f  2  As 


220 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  As  art  and  induftry  advance,  the  materials  of  cloathing  and  lodg- 
ing, the  ufcful  foflils  and  minerals  of  the  earth,  the  precious  metals 
and  the  precious  ftones  fhould  gradually  come  to  be  more  and 
more  in  demand,  fhould  gradually  exchange  for  a  greater  and  a 
greater  quantity  of  food,  or  in  other  words,  fhould  gradually  be- 
come dearer  and  dearer.  This  accordingly  has  been  the  cafe  with 
molt  of  thefe  things  upon  moil  occafions,  and  would  have  been 
the  cafe  with  all  of  them  upon  all  occafions,  if  particular  accidents 
had  not  upon  fome  occafions  increafed  the  fupply  of  fome  of  them 
in  a  flill  greater  proportion  than  the  demand. 


-v/ 


?vn 


The  value  of  a  free-flone  quarry,  for  example,  will  necefTarily 

increafe  with  the  increafing  improvement  and  population  of  the 

country  round  about  it ;  efpecially  if  it  fhould  be  the  only  one  in 

the  neighbourhood.    But  the  value  of  a  filver  mine,  even  though 

there  fliould  not  be  another  within  a  thoufand  miles  of  it,  will  not 

necefTarily  increafe  with  the  improvement  of  the  country  in  which 

it  is  fituated.    The  market  for  the  produce  of  a  free-ftone  quarry 

can  feldom  txtend  more  than  a  few  miles  round  about  it,  and  the 

demand  mufl  generally  be  in  proportion  to  the  improvement  and 

population  of  that  fmall  diflricl.     But  the  market  for  the  produce 

of  a  filver  mine  may  extend  over  the  whole  known  world.     Unlets 

the  world  in  general,  therefore,  be  advancing  in  improvement  and 

population,  the  demand  for  filver  might  not  be  at  sdl  increafed  by 

the  improvement  even  of  a  large  country  in  the  neighbourhood  of 

the  mine.     Even  though  the  world  in  general  were  improving, 

yet,  if  in  the  courfe  of  its  improvement,  new  mines  fhould  be  dif- 

covered,  much  more  fertile  than  any  which  had  been  known  before, 

though  the  demand  for  filver  would  neceffarily  increafe,  yet  the 

fupply  might  increafe  in  fo  much  a  greater  proportion,  that  the 

real  price  of  that  metal  might  gradually  fall ;  that  is,  any  given 

quantity,  a  pound  weight  of  it,   for  example,   might  gradually 

V  4  purchafe 


THE     WEALTH     OF    NATIONS. 


Z2l 


purchafe  or  coiuTr.and  a  fmaller  and  a  fraaller  quantity  of  labour,    C  HA  P. 
or  exchange  far  a  fmaller  and  a  fmaller  quantity  of  corn,  the  prin^ 
cipal  part  of  the  fubfiilence  of  the  labourer. 

The  great  market  for  filver  is  the  commercial  and  civilized  part 
of  the  world. 

If  by  the  general  progrefs  of  improvement  the  demand  of  this 
market  Ihould  increafe,  while  at  the  fame  time  the  fupply  did  not 
increafe  in  the  fame  proportion,  the  value  of  filver  would  gradually 
rife  in  proportion  to  that  of  corn.  Any  given  quantity  of  filver 
would  exchange  for  a  greater  and  a  greater  quantity  of  corn;  or, 
in  other  words,  the  average  money  price  of  corn  would  gradually 
become  cheaper  and  cheaper.. 


1 


I'L... 

ml 


Ik,  on  the  contrary,  the  fupply  by  fome  accident  fhould  inc  eafe 
for  many  years  together  in  a  greater  proportion  than  the  demand, 
that  metal  would  gradually  become  cheaper  and  cheaper;  or,  in 
other  words,  the  average  money  price  of  corn  would,  in  fpite  of. 
all  improvements,  gradually  become  dearer  and  dearer. 


l-'flii 

m 


Bur  if,  on  the  other  hand,  the  fupply  of  that  metal  fhould  in- 
creafe nearly  in  tlie  fame  proportion  as  the  demand,    it.  would v 
continue  to  purchafe  or  exchange  for  nearly  the  fame  quantity  of. 
corn,  and  the  average  money  price  of  corn  would,  in  fpite.  of  all; 
improvements,,  continue  very  nearly  the  fame,. 


These  three  fbem  to  exhauft  all  the  poflible  combinations  of 
events  which  can  happen  in  the  progrefs  of  improvement;  and 
during  the  courie  of  the  four  centuries  preceeding  the  prefent,  if 
we  may  judge  by  what  has  happened  both  in  France  and  Great 
j^ritain,  eachof thofe, three  different. coipbinations  feems  to  have. 

taken ; 


Tlin    NATURE    AND    CAUSES    OF 


BOOK   taken  place  in  the  European  market,  and  nearly  in  the  fame  order 
w^-y^--^    too  in  which  I  have  here  fet  them  down. 


Digrejjhn  concerning  the  Varlattom  in  the  Value  of  Silver  during  the 
Courfe  of  the  Four  lajl  Centuries. 


>  U 


First     Period. 


tN  1350,  and  for  fome  time  before,  the  average  price  of  the 
quartei'  of  wheat  in  England  feems  not  to  have  been  eftimated 
lower  than  four  ounces  of  filver  Tower-weight,  equal  to  about 
twenty  (hillings  of  our  prefent  money.  From  this  price  it  feems  to 
have  fallen  gradually  to  two  ounces  of  filver,  equal  to  about  ten 
ihillings  of  our  prefent  money,  the  price  at  which  we  find  it  efti- 
mated in  the  beginning  of  the  fixteenth  century,  and  at  which  it 
feems  to  have  continued  to  be  eftimated  till  about  1570. 


In  1350,  being  the  25th  of  Edward  III,  was  '•nafbd  what  is 

called.  The  ftatute  of  labourers.     In  the  preamble  it  complains 

much  of  the  infolence  of  fervants,  who  endeavoured  to  raife  their 

wages  upon  their  mafters.     It  therefore  ordains,  that  all  fervants 

and  labourers  (hould  for  the  future  be  contented  with  the  fame 

wages  and  liveries  (liveries  in  thofe  times  Signified,  not  only  cloaths, 

'but  provifions)  which  they  had  been  accuftomed  to  receive  in  the 

20th  year  of  the  king,  and  the  four  preceeding  years  j  that  upon 

this  account  their  livery  wheat  fhould  no  where  be  eftimated  higher 

-  than  ten-pence  a  bufhel,  and  that  it  fhould  always  be  in  the  option 

of  the  m^fter  to  deliver  them  either  the  wheat  or  the  money. 

'  Ten-pence  a  bufhel,  therefore,  had  in  the  2jth  of  Edward  III, 

'tteen  reckoned  a  very  moderate  price  of  wheat,  fince  it  required  a 

'  iparticular  ftatute  to  oblige  fervants  to  accept  of  it  in  exchange  for 

/  y  their 


\1 


THE    WEALTH     OF    NATIONS.      . 

their  ufual  livery  of  provifions ;  and  it  had  been  reckoned  a  rea- 
fonable  price  fn  years  before  that,  or  in  the  i6th  year  of  the  king, 
the  term  to  which  the  ftatute  refers.  But  in  the  i6th  year  of 
Edward  III,  ten-pence  contained  about  half  an  ounce  of  filver 
Tower-weight,  and  was  nearly  equal  to  half  ^  crown  of  our  prefent 
money.  Four  ounces  of  filver.  Tower-weight,  therefore,  equal 
to  fix  (hillings  and  eight-pence  of  the  money  of  thofe  times,  and 
to  near  twenty  fliillings  of  that  of  the  prefent,  muft  have  been 
reckoned  a  moderate  price  for  the  quarter  of  eight  buflicls. 


223 

CHAP. 
XI. 


This  ftatute  is  furely  a  better  evidence  of  what  was  reckoned  in 
thofe  times  a  moderate  price  of  grain,  than  the  prices  of  fome  par- 
ticular years,  which  have  generally  been  recorded  by  hiftorians 
and  other  writers  on  account  of  their  extraordinary  dearnefs  or 
cheapnefs,  and  from  which,  therefore,  it  is  difficult  to  form  any 
judgement  concerning  what  may  have  been  the  ordinary  price. 
There  are,  befidcs,  other  reafons  for  believing  that  in  the  begin- 
ning of  the  fourteenth  century,  and  for  fome  time  before,,  the  com- 
mon price  of  wheat  was  not  lefs  than  four  ounces  of  filver  the 
quarter,  and  that  of  other  grain  in  proportion. 


In  1300,  Ralph  de  Born,  prior  of  St.  Auguftine's  Canterbury, 
gave  a  feaft  upon  his  inftallation  day,  of  which  William  Thorn 
has  preferved,  not  only  the  bill  of  fare,  but  the  prices  of  many 
particulars.  In  that  feaft  were  confumed,  ift,  fifty-three  quarters 
of  wheat,  which  coft  nineteen  pounds,  or  feven  fliillings  and  two- 
pence a  quarter,  equal  to  about  one  and  twenty  fliillings  and  fix- 
pence  of  our  prefent  money:  adly.  Fifty- eight  quarters  of  malt, 
which  coft  feventeen  pounds  ten  fliillings,  or  fix  fliillings  a  quarter, 
equal  to  about  eighteen  fliillings  of  our  prefent  money:  3dly, 
Twenty  quarters  of  oats,  which  coft  four  pounds,  or  four  fliillings 
a  quaiter,  equal  to  about  twelve  ihillings  of  our  prefent  money. 


224 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K    The  prices  of  malt  and  oota  fccm  here  to  be  higher  than  their  ordi- 
nary proportion  to  the  price  of  wheat. 

toT^^s"*  prices  are  not  recorded  on  account  of  their  extraordinary 
<learners  or  cheapnefs,  but  are  mentioned  accidentally  as  the  prices 
4i£tually  paid  for  large  quantities  of  grain  confumed  at  a  feaft  which 
•was  famous  for  its  magnificence. 


Im  126a,  being  the  51ft  of  Henry  III,  was  revived  an  ancient 
■ftatute  called.  The  yijjize  of  Bread  and  Ale »  which,  the  king  fays 
lin  the  preamble,  had  been  made  in  the  times  of  his  progenitors  fome- 
time  kings  of  England.  It  is  probably,  therefore,  as  old  at  leafl: 
as  the  time  of  his  grandfather  Henry  II,  and  may  have  been  as 
old  as  the  Conqueft.  It  regulates  the  price  of  bread  according  as 
,tlie  prices  of  whe^t  may  happen  to  be,  from  one  (hilling  to  twenty 
(hillings  the  quarter  of  the  money  of  thofe  times.  But  ftatutes  of 
.this  kind  are  generally  prefumed  to  provide  with  equal  care  for  all 
.deviations  from  the  middle  price,  for  thofe  below  it  as  well  as  for 
thofe  above  it.  Ten  (liillings,  therefore,  containing  fix  ounces  of 
filver  Tower-weight,  and  equal  to  about  thirty  (hillings  of  our 
J)refent  money,  muft  upon  this  fuppofition  have  been  reckoned  the 
middle  price  of  the  quarter  of  wheat  when  this  ftatute  was  firft 
enacted,  and  muft  have  continued  to  be  fo  in  the  51ft  of  Henry 
III.  We  cannot  therefore  be  very  far  wrong  in  fuppofing  that  the 
middle  price  was  not  lefs  than  one-third  of  the  higheft  price  at 
which  this  ftatute  regulates  the  price  of  breaid,  or  than  fix  (hillings 
and  eight-pence  of  the  money  of  thofe  times,  containing  four 
.ijuuces  of  filver  Tower- weight. 


■From  thefe  different  fadVs,   therefore,   we  feem  to  have  fome 

r.reafoii  to  conclude,  that  about  thi.-  middle  of  the  fourteenth  century, 

and  for  a  confiderablc  time  before,  the  average  or  ordinary  price 

«;»».T  of 


THE    WEALTH    OF    NATIONS. 


9a5 


of  the  quarter  of  wheat  was  not  fuppoied  to  be  Ufs  than  four  ounces    C  HA  P. 
of  filver  Towcr-wcight. 


From  about  the  middle  of  the  fourteenth  to  the  beginning  of 
the  fixtcenth  century,  what  was  reckoned  thereafonableand  mode- 
rate, that  is  the  ordinary  or  average  price  of  wheat,  ieems  to  have 
funk  gradually  to  about  one-half  of  this  price ;  To  as  at  laft  to  have 
fallen  to  about  two  ounces  of  filvcr  Tower-weight,  equal  to  about 
ten  (hillings  of  our  prefent  money.  It  continued  to  be  eftimated  at 
xWs  price  till  about  1570, 


In  the  houihold  book  of  Henry,  the  fifth  Earl  of  Northum- 
berland, drawn  up  in  151 2,  there  are  two  different  eftimations  of 
wheat.  In  one  of  them  it  is  computed  at  fix  ihillings  and  eight- 
pence  the  quarter }  in  the  other  at  ftve  ftiillings  and  eight-pence 
only.  In  151a,  fix  ihillings  and  eight-pence  contained  cmlytwo 
ouiKes  of  filver  Tower-weight,  and  were  equal  to  about  ten  fhil- 
lings  of  our  prefent  money. 

From  the  a 5th  of  Edward  III,  to  the  beginning  of  the  reign  of 
Elizabeth,  during  the  fpace  of  mqre  than  two  hundred  years,  fix 
fiiilUngs  and  eight-pence,  it  appears  from  feveral  different  (latut;eSj, 
had  continued  to  be  confidered  as  what  is  called  the  moderate  an4 
reafonable^  that  is  the  ordinary  or  average  price  of  wheat.  The 
quantity  of  filver,  ho;wcver,  contained  in  that  nonun^l  fum  was, 
during  the  couri^  qf  th^s  period^  continually  dim^,i(h.ing,  in  conr 
fequence  of  fome  alterations  whiiph  were  made  in  the  coin.  But 
the  increafe  of  the  value  of  filver  had,  it  feems,  fo  far  compenfated 
the  dinu^nution  of  the  quantity  of  it  cpntained  in  the  fame  i\omina! 
fum,  that  tl?e  legiflatui-^  iii  not  t|wnk  it  WQrth  whil?  tQ  atjlewd  tq 
this  circwwftance. 


Vol..  I. 


Og 


Thus 


126 


THE    KATIJRE    and    CAUSES    OF 


BOOK  Thus  in  T436  it  was  ena£>ed,  that  wheat  might  be  exported 
without  a  licence  when  the  price  was  fo  low  as  fix  (hillings  and 
eight-pence:  And  in  1463  it  was  enabled,  that  no  wheat  Hiould 
be  imported  if  the  price  was  not  above  fix  (hillings  and  eight-pence 
the  quarter.  The  legiflature  had  imagined,  that  when  the  price 
was  fo  low,  there  could  be  no  inconveniency  in  exportation,  but 
that  when  it  rofe  higher,  it  became  prudent  to  allow  of  impor- 
tation. Six  (hillings  and  eight-pence,  therefore,  containing  about 
the  fame  quantity  of  filver  as  thirteen  (liillings  and  four-pence  of 
our  prefent  money,  (one-third  part  lefs  than  the  fame  nominal  fum 
contained  in  the  time  of  Edward  III.),  had  in  thofe  times  been  con- 
fidered  as  what  is  called  the  moderate  and  reafonable  price  of 
wheat. 


:1.!    II, 


'  In  1554,  by  the  ift  and  2d  of  Philip  and  Mary  j  and  in  1558, 
by  the  ift  of  Elizabeth,  the  exportation  of  wheat  was  in  the  fame 
manner  prohibited,  whenever  the  price  of  the  quarter  (hould  exceed 
fix  (hillings  and  eight-pence,  which  did  not  then  contain  two  penny 
worth  more  filver  than  the  fame  nominal  fum  does  at  prefent.  But 
it  had  foon  been  found  that  to  reftrain  the  exportation  of  wheat 
till  the  price  was  (b  very  low,  was,  in  reality,  to  prohibit  it  altoge- 
ther. In  1 562,  therefore,  by  the  5th  of  Elizabeth,  the  exportation 
of  wheat  was  allowed  from  certain  ports  whenever  the  price  of  the 
quarter  (hould  not  exceed  ten  (hillings,  containing  nearly  the  fame 
quantity  of  filver  as  the  like  nominal  fum  does  at  prefent.  This 
price  had  at  this  time,  therefore,  been  confidered  as  what  is  called 
the  moderate  and  reafonable  price  of  wheat.  It  agrees  nearly  with 
the  eftimation  of  the  Northumberland  book  in  1512. 


""^  ^HAT  in  France  the  average  price  of  grain  was,  in  the  fame 
inanner,  much  lower  in  the  end  of  the  fifteenth  and  beginning  of 
the  fixteenth  century,  than  in  the  two  centuries  preceeding,  has 


THE     WEALTH    OF    NATIONS. 


127 


been  obfcrvcd  both  by  Mr.  Dupridc  St.  Maur,  and  by  the  elegant   C  HA  P. 
author  of  the  EiTay  on  the  police  of  grain.     Its  price,  during  the 
fame  period,  had  probably  funk  in  the  fame  manner  through  tlie 
greater  part  of  Europe.  ^  ja  ^q^  »'8'^  ODiiq  •jrt>  u  mttc-mtu  »d 

This  rife  in  the  value  of  filver  in  proportion  to  that  of  com, 
may  either  have  been  owing  altogether  to  the  incrcafe  of  the  demand 
for  that  metal,  in  confequence  of  increafmg  improvement  and  cuU 
tivation,  the  fupply  in  the  mean  time  continuing  the  fame  as 
before :  Or,  the  demand  continuing  the  fame  as  before,  it  may 
have  been  owing  altogether  to  the  gradual  diminution  of  the  fupply ; 
the  greater  part  of  the  mines  which  were  then  known  in  the  world, 
being  much  cxhaufted,  and  confequently  the  expence  of  working 
them  much  increafed :  Or  it  m?y  have  been  owing  partly  to  the 
one  and  partly  to  the  other  of  thofe  two  circumftances.  In  the  end 
of  the  fifteenth  and  beginning  of  the  fixteenth  centuries,  the  greater 
part  of  Europe  was  approaching  towards  a  more  fettled  form  of  go- 
vernment than  it  had  enjoyed  for  feveral  ages  before.  The  increafe  of 
fecurity  would  naturally  increafe  induftry  and  improvement ;  and  the 
demand  for  the  precious  metals,  as  well  as  for  every  other  luxury 
and  ornament,  would  naturally  increafe  with  the  hicreafe  of  riches. 
A  greater  annual  produce  would  require  a  greater  quantity  of  coin 
to  circulate  it  j  and  a  greater  number  of  rich  people  would  reqjuire  a 
greater  quantity  of  plate  and  other  ornaments  of  filver.  It  is  natural 
to  fuppofe  too,  that  the  greater  part  of  the  mines  which  then  fup- 
I)lied  the  European  market  with  filver,  might  be  a  good  deal  ex- 
haufted,  and  h.ivc  become  more  expenfive  in  the  working.     They 

had  been  wrought  many  of  them  from  the  time  of  the  Romans. 

"  art* 


; 


^': 


.,1 


It  has  been  the  opinion,  however,  of  the  greater  part  of  thoie 
who  have  written  upon  the  prices  of  commodities  in  antieut 
times,  that,   from  the  Conqueft,  perhaps  from  the  invaiion.pf 

G  g  2  Julius 


ti9 


TM£    NATURE    AND    CAUSES    OF 


B  o  O  It  Julius  C«for  till  tile  difcoveiy  of  the  min«8  of  America,  the  value 
of  filver  was  cotttkiually  <iitnini(hi«g.  tliis  opinion  they  fcem  td 
have  been  led  into,  |>art1y  by  the  obfervntiims  which  they  had  occafion 
to  make  upon  the  prices  both  of  corn  and  <rf  fettle  otiwr  parts  of 
the  rude  produce  of  land ;  and  partly  by  the  popular  notion,  that 
as  the  quantity  of  filver  naturally  increafes  In  6very  country 
with  the  increafe  of  wealth.  To  its  vsdue  diminiflies  m  its  quantity 
increafes. 

In  their  observations  upon  the  prices  of  corn*  three  different  cir- 
cumftances  feem  frequently  to  have  tnifled  them. 

Fi^sT,  Itt  antient  times  almoft  lall  rtmts  wei'e  paid  In  kitTd; 
in  a  certain  quantify  of  corn,  cattle,  poultry,  &c.  It  fottietimes 
happened,  however,  that  the  landlord  would  ftipulate  with  the 
tenant,  that  he  ftiould  be  at  liberty  to  demand  either  the  annual 
payment  in  kind,  or  a  certain  fum  of  money  inftead  of  it.  Tlie 
price  at  wliich  the  payment  in  kind  was  in  tliis  manner  exchanged 
for  a  certain  fum  of  money,  is  in  Scotland  called  the  convedioii 
price.  As  the  option  is  always  in  the  landlord  to  take  either  the 
ftibftance  or  tiie  price,  it  is  necefTary  for  the  fafcty  of  the  tenant, 
thait  the  converfion  price  fhould  rather  be  below  than  above  the 
average  market  price.  In  many  places,  accordingly,  it  is  not  much 
above  Ofte-half  of  this  price.  Through  the  greater  part  of  Scotland 
tliis  cuftoiti  Hill  continues  with  regard  to  poultry,  and  in  fome 
places  Mth  regard  to  cattle.  It  might  probably  have  continued 
to  take  place  too  with  regard  to  corn,  had  not  the  inftitution 
of  the  publick  fiars  put  an  end  to  it.  Thefe  are  annual  valu- 
ations, according  to  the  judgement  of  an  ajfllze,  of  the  average 
price  of  all  the  different  forts  of  grain,  and  of  all  the  dif- 
Ifereht  qtialkies  of  each,  according  to  the  a£tual  market  price 
in  every  different  county.  This  inflitutioti  rendered  it  ibfficiently 
fafe  for  the  tenant,  and^uch  tMtt  convenient  for  the  landloitl. 


THE    WEALTH    OF  i  NtA/T/IO.M$. 


t29 


to  convert,  as  they  call  it,  the  corn  rent  at  the  price  of  the  fiaw  of  C  ll  A  P. 
each  year,  rather  than  at  any  ceitain  iiHed  price;  But  the  writers 
who  have  coUe£ted  the  prioea  of  com  iii  antient  times,  feesn  fre- 
quently to  have  miftaken  what  is  caUei  in  Scotland  the  converfion 
price  for  tlie  adual  market  price.  jRleetwood  acknowledges  upon 
one  occafion  that  he  had  made  this  miftake.  As  he  wrote  his  book, 
however,  for  a  particular  purpofe,  he  does  not  think  proper 
to  make  this  acknowledgement  till  after  tranferibing  this  converfion 
price  fifteen  times.  The  price  is  eight  (hillings  tlie  quarter  of 
wheat.  This  fum  in  1423,  the  year  at  which  he  begins  with  it, 
contained  the  fame  quantity  of  filvcr  as  fl:xteen  Hiillings  of  our  pie- 
fent  money.  But  in  1 562,  the  year  at  which  he  en4S; with  it,  it  con- 
tained no  more  tlign  the  fame  nominal  fiim,4o^s  at  prefeji^j^.j  j.  ^j 

:r:oll)ftr.f  -^Ht   tKflJ    /nviwori    ,,ten'j<|qKr( 

Secondly,  They  have  be^a  mlfled  by  die  flovenly  manner  in 

which  fome  antient  flatutes  of  aflize  had  been  fpmetimes  tranfcribed 

by  lazy  copiers;  and  fometlmes  perhaps,  adujJlycompofed  by  tfa^ 


iegiilature. 


Ysnom  ^o  mu'i  riisJix)  n  jot 


Th«  antient  ftatutcs  of  afllae  feem  to  have  begun  always  with  de- 
termining what  ought  to  be  thepripe  of  bread  and  al^wj^eqtiiepiice  0f 
wheat  and  barley  were  at  the  loweft,  asid  tohaveproceededgradually 
to  determine  what  it  ought  to  be  accoidii^  as  the  prices  qif  thpfc 
two  foits  of  grain  ihouki  gradually  rife  above  this  lowed:  prkc. 
But  the  tranlcribers  of  thofe  ftatutes  feem  frequently  to  have  though, 
it  fufficient  to  copy  the  regulation  as  far  as  the  three  or  four  firfl: 
and  lowed  prices;  favii^  in  this  manner  their  own  bl^pui;,  and 
judging,  I  fuppofe,  that  this  was  enough  to  (how  what  ,pro|>(wt)Gin 
oughttobeobfervedinaUhigheiprices.,^^^^^.^^;,        ,    hj.  ^^  5>,„tj 

Thub  in  the  aifize  of  bread  and  ale,  of  ihe  5itt>ol' 'Henry  IN, 
the  price  of  bread  wat  fegjolaicd  accovding  to  tiic4i^rBttt  prkei  of 
7  wheat. 


i 


23^ 


THE  NATURE  AND  CAUSES  OF 


BOOK  wheat,  from  one  fliilling  to  twenty  {hillings  the  quarter,  of  the 
money  of  thofe  timts.  But  in  the  manufcripts  from  which  all  the 
■different  editions  of  the  ftatutes,  preceeding  that  of  Mr.  Ruffhead, 
fwere  printed,  the  copiers  had  never  tranfcribed  this  regulation  be- 
yond the  price  of  twelve  (hillings.  Several  writers,  therefore,  being 
.mifled  by  this  faulty  tranfcription,  very  natuially  concluded  that  the 
middle  price,  or  fix  ihillings  the  quarter,  equal  to  about  eighteen 
-fliillings  of  our  prefent  money,  was  the  ordinary  or  average  price  of 
wheat  at  that  time. 


In  the  ftatute  of  Tumbrel  and  Pillory,  ena6led  nearly  about  the 
.fame  time,  the  price  of  ale  is  regulated  according  to  every  fixpence 
rife  in  the  price  of  barley,  from  two  fliillings  to  four  fliillings  the 
quarter.  That  four  fliiUings,  however,  was  not  confidered  as  the 
-higheft  price  to  which  barley,  might  frequently  rife  in  thofe  times, 
and  that  thefe  prices  were  only  given  as  an  example  of  the  proportion 
■which  ought  to  be  obferved  in  all  other  prices,  whether  higher  or 
lower,  we  may  infer  from  the  lafl:  words  of  the  ftatute;  •*  et  fic 
*•  deinceps  crefcetur  vel  diminuetur  per  fex  denarios."  The  cx- 
-preiTion  is  very  flovenly,  but  the  meaning  is  plain  enough; 
*♦  That  the  price  of  ale  is  in  this  manner  to  be  increafed  or  di- 
'*  miniflied  according  to  every  flxpence  rife  or  fall  in  the  price  of 
'*•  barley."  In  the  compofition  of  this  ftatute  the  legiflature  itfelf 
Teems  to  have  been  as  negligent  as  the  copiers  were  in  the  tranfcription 
of  the  other. 


#11 


In  an  antient  manufcript  of  the  Regiam  Majeftatem,  an  old 
Scotch  law  book,  there  is  a  ftatute  of  afllze,  in  which  the  price  of 
bread  is  regulated  according  to  all  the  different  prices  of  wheat,  from 
ten-pence  to  three  (hillings  the  Scotch  boll,  equal  to  about  half  an 
£ngli(h  quarter.  Three  (hillings  Scotch,  at  the  time  when  this 
\  aflize  is  fuppofed  to  have  been  enaded,  were  equal  to  about  nine 

(hillings 


THE    WEALTH    OF    KATIONS/' 

ftiilliftgs  fterling  of  our  prefent  mo^iey.     Mr.  Rudiman  fecms  to 
conclude  from  this,  that  three  (hillings  was  the  higheft  price  to 
which  wheat  ever  rofc  in  thofe  times,  and  that  ten-pence,  a  fliilling„ 
or  at  moft  two  (hillings,   were  the  ordinary  prices.     Upon  con- 
fulting  the  manufcript,  however,  it  appears  evidently,  that  all  thefe. 
prices  are  only  fet  down  as  examples  of  the  proportion  which  ought 
to  be  obferved  between  the  refpeftive  prices  of  wheat  and  bread* 
The  laft  words  of  the  ftatute  are,  "  reliqua  jiidicabis  fecundum. 
"  praefcripta  habendo  refpedtum  ad  pretium  bladi."     •*  You  (hall . 
**  judge  of  the  remaining  cafes  according  to  what  is  above  written,- , 
V  having  a  refpeft  to  the  price  of  corn." 

Thirdly,  They  feem  to  have  been  miflcd  too  by  the  very  low 
price  at  which  wheat  was  fometimes  fold  in  very  antient  ti    es;; 
and  to  have  imagined,   that  as  its  lowed  price  was  then  n    ch 
lower  than  in  later  times,  its  ordinary  price  muft  likewife  h..  e 
been  much  lower.     They  might  have  found,  however,  that  in  thole 
antient  times,  its  higheft  price  was  fully  as  much  above,  as  its 
loweft  price  was  below  any  thing  that  had  ever  been  known  in  later 
times.     Thus  in  1 270,  Fleetwood  gives  us  two  prices  of  the  quarter 
of  wheat.     The  one  is  four  pounds  fixteen  (hillings  of  the  money 
of  thofe  times^  equal  to  fourteen  pounds  eight  (hillings  of  that  of  the 
prefent ;    the  other  is  fix  pounds  eight  fliillingSj  equal  to  nineteen 
pounds  four  (hillings  of  our  prefent  money.  No  price  can  be  found  . 
in  the  end  of  the  fifteenth,  or  beginning  of  the  (ixteenth  century, . 
which  approaches  to  the  extravagance  of  thefe.-    The  price  of  com, , 
though  at  all  times  liable  to  variations,  varies  moft  in  thofe  tur-  - 
bulent  and  difordcrly  focieties,  in  which  the  interrupion  of  all 
commerce  and  communication  hinders  the  plenty  of  one  part  of  the 
country  from  relieving  the  fcarcity  of  another.     In  the  diforderly 
(tate  of  England  under  the  PlantagenetSr  who  governed  it  from 
about  the  middle  of  the  twelfth,  till  towards  the  end  of  the  fifteenth 

century. 


231 

CHAP. 
XI. 


im 


m 


232 


THi    NATTJRS:    Ai^D    CAUSES    OP 

eetttmy,  bhe  aiftria:  might  be  in  plcttty,  while  attoih^r  ^t  ilio  grtat 
diftance,  by  having  its  crop  delboyed  either  by  Cookt  accideHt  of  the 
ieafons»  or  by  the  intiuriloii  of  fome  neighbouring  t>aran»  might  be 
f  filing  all  the  horrors  of  a  famine^  and  yet  if  tlie  lands  of  fotat 
iioflile  lord  were  interposed  between  thems  the  one  mi^  not  be 
able  to  give  the  leaft  afliftance  to  the  other.  Under  the  vigorous  ad- 
miniilratioin  of  the  Tudors,  who  governed  England  during  the  latter 
part  of  the  fifteenth,  and  through  the  whole  of  the  fiy^^eenth  century, 
no  baron  was  po  .^rful  enough  to  dare  to  diftnrb  the  pubUdc 
fe^urity. 


The  reader  will  find  at  the  end  of  this  chapter  all  tlie  prices  of 
wheat  which  have  been  colle£led  by  Fleetwood  from'  1202  t&  (597, 
both  inclufive,  reduced  to  the  money  of  the  prdent  times,  ^nd 
digefted  according  to  the  order  of  time,  into  fevcn  divifions  of 
twelve  years  each.  At  the  end  of  each  divifion  too,  he  wilt  find 
the  average  price  of  the  twelve  yearc  of  which  it  confifts.  Jn  that 
long  period  of  time,  Fleetwood  has  been  able  to  collefV  the  pifi^ 
of  no  more  than  eighty  yearSj  fo  t3iat  fi^ir  yeai^s  are  wdn^g  to 
make  out  the  laft  tw«Wc  yeaips.  I  have  tidded,  thet^ore,  from  the 
accounts  of  Eton  college,  the  prkes  of  159S,  1599,  1600,  and 
l6oi.  It  is  the  only  addition  which  I  have  made.  The  ree^f 
will  fee  that  from  tlie  beginning  of  the  thirteenth  till  after  the 
middle  of  the  fixteenth  contury,  th?  average  price  of  each  twelve 
yeai's  grows  gr^dui^ly  lower  and  lower  j  and  that  towards  the 
fad  of  the  fixteenth  centuiy  it  begins  to  riif  again.  The  prices;, 
indeed,  which  Fleetwood  h^  beoi  able  to  collet,  feem  to  have 
been  thofe  chiefly  which  wei«  remarkable  for  extraoidinary  dear- 
aefs  or  cheapnefs ;  and  I  do  not  pretend  that  any  very  certain  con- 
clufion  can  be  drawn  from  them.  So  £stf»  however,  as  they  prove 
any  thing  at  all,  they  confirm  the  accaiimt  w^h  I  have  been  en- 
deavouring to  give.  Fleetwood  himieif,  however,  items,  with 
xncfl  other  writers,  to  have  believed,  that  during  nil  this  period  the 

value 


I 


THE    WEALTH    OF    NATIONS. 


*33 


value  of  iilver,  in  confequence  of  its  increaling  abundance,  wa$  ^^^^• 
continually  diminifliing.  The  prices  of  com  which  he  himfelf  has 
coUeded,  certMnly  do  not  agree  with  this  opinion.  They  agree 
perfe£lly  with  that  of  Mr.  Dupr^  de  St.  Maur,  and  with  that 
which  I  have  been  endeavouruig  to  explain.  Bifhop  Fleetwood 
^nd  Mr.  Dupr^  de  St.  Maur  aie^  the  two  authors  who  fee"^ 
to  have  collefled,  with  the  greateft  diligence  and  fidelity,  'r\if. 
prices  of  things  in  antient  times.  It  is  fomewhat  curious  that, 
though  their  opinions  are  fo  veiy  different,  their  fa6ls,  fo  far 
as  they  relate  to  the  price  of  corn  at  leaft,  Hiould  coincide  fi>  very 
exactly. 

It  is  not,  however,  fo  much  from  the  low  price  of  com,  as  from 
that  of  fome  other  parts  of  the  rude  produce  of  land,  that  the  mofl 
judicious  writers  have  inferred  the  great  value  of  filver  in  thofe  very 
antient  times.  Corn,  it  has  been  faid,  being  a  fort  of  manufadlure, 
was,  in  thofe  rude  ages,  much  dearer  in  proportion  than  the  greater 
part  of  other  commodities  i  it  is  meant,  I  fuppofe,  than  the  greater 
part  of  unmanufactured  commodities,  fuch  as  cattle,  poultry,  game 
of  all  kinds,  &c.  That  in  th r^fe  tiniCS  of  poverty  and  barbarifm 
thefe  were  proportionably  much  cheaper  than  corn,  is  undoubtedly 
true.  But  this  cheapnefs  was  not  the  effeCl  of  the  high  value  of 
filver,  but  of  the  low  value  of  thofe  commodities.  It  was  not  that 
filver  would  in  fuch  times  purchafe  or  reprefent  a  greater  quantity  of 
labour,  but  that  fuch  commodities  would  purchafe  or  reprefent  a 
much  fmaller  quantity  than  in  times  of  more  opulence  and  im- 
provement. Silver  muft  certainly  be  cheaper  in  Spariifh  America 
than  in  Europe ;  in  the  country  where  it  is  produced,  tV«an  in  the 
countiy  to  which  it  is  brought,  at  the  expence  of  a  long  carriage 
both  by  land  and  by  fea,  of  a  freight  and  an  infurance.  One  and 
twenty  pence  halfpenny  fterling,  however,  we  are  told  by  UUoa, 
was,  not  many  years  ago,  at  Buenos  Ayres,  the  price  of  an  ox 

Vol.  I.  *       H  h        .  chofen 


■>'' 
,'■> 


i 


I 


II 


i;  us 


'lip  I 


I 


nil 


234 


TH-E    NATtJRB    AMD    QAV^ES    OF 


£ Q&R  ehofen  fltiiA  i  ^&A  df  fitfee 'or  fottt  liflhdwd.  ^iMSHtti  1hl)tkig» 
ftci'ling,  Wc  We  ttoia  Ijy  Mr.  Byr'bh,  Wds  tht  priiJe  6f  a  jiitta  horfe 
Jn  the  cajntal  «f  GWli.  Jn  a  dtfUMry  >fiaturally  "ftrtHe,  Imt  of 
♦rhichthc  fer  greater  part  is  altogiSther  Wtictilti\^ated,  caitlo;  jxmU 
try  game  of  all  kinds,  dec.  as  they  can  he  bcqiAfed  with  a 
ve;  rir.li  <jaantityof  labour,  fo  AeyViH  piirchafe-br  cdihmtad 
bat  a  vei^  rfnjlll  qdantity.  The  low  itioney  price  fot  which  i!hey 
may  "be  fold,  is  no  prodf  that  the  real  valoe  of  ^Iver  is 
fhci%  vei'y  high,  but  that  the  'real  •v^Ioe  of  tkofexamiiibdidcB  4i 


very  low. 


:*io'\'>iar?;  .t'Jt;fif>  j/tarjCih  ^ikxriiJ  11b  a\ 


Labour,  it  muft  always  be  remembered,  and  not  any  particular 
commc  jity  or'iett  of  conimodities,  is  theital  nieafitfe  of  the  Tdlue 
both  of  fUver  and  df  !all  other  commodities^  .HJUiixin* 


Y.«!- 


•But  ih  cbUntiics  almoft  wafte,  or  but  thinly  Inhabited,  cattlfe, 
poultry,  game  Of  allTdnds,  '&c.  as  they  are  the  fjpontaneotis  pro*- 
du^ions  Of  nature,  fo  flie  frequeritly  produces  thiem  In  ihiich  greater 
quanthies  than  the  coriraraptidn  of  the  inhabitants  retJUirei. 
In  flich  ia  ftate  of  things  the  fnpply  comlmonly  exceccl*  the  demand. 
In  different  ftates  of  fociety,  in  different  ftages  of  improvement, 
therefore,  fucli  cdmmodities  willreprc/ent,  or  be  equivalent  to,  very 
dift^isent  tjuarif ities  6f  Idbour.  r    t 

In  eVeify  ftkte  d?  fociety,  in  every  ftage  of  improvement,  "corn  is 
the  prOduftion  of  human  induftry.  But  the  average  produce  of 
every  fort  of  induftry  is  always  (Uited,  more  or  lefs  exaftly,  to 
the  average  confumption  J  the  average  fupply  to  the  average  demand. 
In  every  differCntftage  of  improvement  bcfides,  the  raifirlg  of  equal 
quantities  of  corn  in  the  fame  Toil  and  climate,  will,  at  an  average, 
require  nearly  equal  quantities  of  labour;  or  what  comes  to  the 
fame  thing,  the  price  of  nearly  equal  quantities;  tlie  continual  in- 

creafe 


TH^    WBAhfH   0|?    N^TiiaiylS. 


23s 


)Ci€Aft  of  tj^,  proUu^iv^.  pQWti'8  of  tabptv  ifl,  an  i^p^pi^pyjyijg,  {^aj^  of  C  ^A  F. 

u)cii|?(l$ng  prV:e  9f  cajH;^.  the  pri|)fip^  ioftfurn^ts,  of  a^rifral^Uir^. 

-quantities  of  coin  will,  in  every  ftate  of  fociety,  in  every  ftage  cf 
toi{>rpv«mBi})t,  vapK  nearly  cepr^i^l:,  go;  i^  e<]J|?lv4]^nt  to«  equal 
quantUies  of  labour,  l^hf^  eq^al  (|uaf)jtitie^  of  afjjc  otb^  p^t  pf  tjbp 
cud^  p^'od^cc  9f  land.  Cotin),  accorijia^l)^,  i^  li^  already  l^eei^  q1^- 
fetv^df  is,  jixi  !dlxkt  ^ii^snX  ft^ges  <4mp^^  4n4  unpcQvenpiepl;,.  a 
ufiore  accucate  oieadue  of  value  thaiji  any  othei'  commodity  or  |et;t 
of  coomoodttij^s.  Iiji  ail  thoiie  different  i^Agec^  thei'efore,  we  ca^ 
judge  better  of  the  real  value  of  filver,  by  comparing  it  w  cqrn, 
than  by  comparing  it  with  any  other  commodity,  or  fett  of  com- 
inodities.      {jaimi^^M  •msi'nitcmmo'.i  larfao  uis  b  hite  lavin  In  rftiyi 

^  CoR.Vt  be^.e^.  i  xvlicktevq*  elfe  is  .^he  cospmpn  and  ^vq^rite 
ifegstablp  food,  of  the  people,  copftitn^teji,  ifi  eyieiy  civihze4  cp^^lt^y, 
tj(^  P^iii^ci^l  part  ^of  th«  lUbijftence  qf  ^e  laj^owrei;.  Incqn^- 
i^ueu<;e  of tj^exteilfionof  agricv^ltLire,  the  land,  of  eyejy  countj^y 
produces  a  much  greater  quantity  of  vegetable  than  of  ^ipim^  foo^, 
and  the  labourer  every  where  lives  chiefly  upon  tlie  wholefome 
food  that  i^  qheappft  and  nfioit  abv»m^nt,  ^u^cherVfl^e^t.  e;^ept 
in  the  moft  tVivin^  counties,  or  w^ieyip  Is^k^^f  i?,i:^\Qft  pj^^ 
rewarded,  ^lMces  but  an  ianguific^nt  pj^JCt  of  his  ful^jQi^eixce : 
poultry  wakes  a  ftill  fej^ler  p^  of  it,  apd  gawp  po  p^  of  it. 
Ii\  France,  and  everi,  in  $cQtl^d,  wher^  laibQ^i'  is  foqi^wl^t 
better  rewarded  thau  in  FriWC"?,  tjie  labipiwiiig  pp9r  fej^om  est 
butcher's  -  njeat,  except  i^pon  holidays;,  ^d  pth^r  jej^tri^<jf<\i- 
naiy  occafion?.  The  wo^y  pJlic,*  of  l^bftur,  thfii^oi'e,  de- 
pends much  more  upon  the  average  money  price  of  com,  the 
fubfiftence  of  the  khwr?!",  t|wa  l^op  that  cif  l^vt^hjer's-R^p^t,  or 
of  any  otfegy  jiart  pf  the  n^ejufo^wce  of  J^|j<4.    Thft  ve^  v^9  of 

H  ha  '  gold 


M  ■ 


":     i' 

w 
m 


i 


m 


■i'i 


23^ 


THE    NATtTRl    AND    CAUSES    OF 


B O OK  gold  and Alyer,  therefoi'e, theireal  quantityof  labour  which «tfacy fcan 
purchafe  or  aommand,  depends  much  more  upon  the  quantity  of 
com  which  they  can  purchafe  or  command,  than  upon  that  of 
butcl^er's  moat,  pr  any  <rther  part  of  the  rude  produce  of  land.  Ui 

p  Such  flight  obfcrvations,  however,  upon  the  prices  either  of  com  or 
of  other  commodities,  would  not  probably  have  mifled  fo  many 
intelligent  authors,  had  thy  not  been  agreeable  to  the  popular 
notion,  that  as  the  quantity  of  filver  naturally  increafes  in  every 
country  with  the  increafe  of  wealth,  fo  its  value  diminiflies  as 
its  quantity  increafes.  This  notion,  however,  feems  to  be  altogether 
groundlefs. 

"to  VTJVcolit' if,tn->l)')'!j:    :ft'     r-.^'  -nrv, 

r:?)  Tut. quantity  of  the  precious  metals  may  increafe  in  any  country 
from  two  difiierent  caufes  :  dther,  firft,  from  the  increafed  abun- 
dance of  the  mines  which  fupply  it ;  or,  fecoiidly,  from  the  increafed 
wealth  of  the  people,  from  the  increafed  produce  of  their  annual 
labour.  The  firft  of  thefe  caufes  is  no  doubt  neceirarlly  cdnnefted 
with  the  diminuti(xi  of  the  value  of  the  precious  metals  j  but  the 


fecond  is  not. 


'i:i\ 


.i.,h 


i* 


i')h,- 


"  When  more  abundant  mines  are  difcovered,  a  greater  quantity 
of  the  precious  metals  is  brought  to  market,  and  the  quantity  of 
the  neceflahes  and  conveniencies  of  life  for  which  they  muft  be 
exchanged  being  the  fame  as  before,  equal  quantities  of  the  metals 
muft  be  exchanged  for  fmaller  quantities  of  commodities.  So  far, 
therefore,  as  the  increafe  of  the  quantity  of  the  precious  metals  in, 
any  country  arifes  from  the  ihcreaied  abundance  of.  the  mine$, 
it  is  neceflarily  connected  with  fomediminution  of  their,  value,. 


!-  Whem>  on  the  contrary^  the  wealth  of  any  country  ihcreafcis,, 
when  the  annual  produce  of  its  labour  becomes  gradually  greater 

-  4(  ^^^^ 


THE    WBALTM'  OF'  NATIONS. 


^37 


and  greater!  a  greater  quantity  of  coin  becomes  neceflkry  in  order  Chap. 

to  circulate  a  greater  quantity  of  commodities;   and  the  people, 

as  they  can  afford  it,  as  they  have  more  commodities  to  give  for  it, 

will  naturally  purchafe  a  greater  and  a  greater  quantity  of  plate. 

The  quantity  of  their  coin  will  increafe  from  neceffityj  the  quantity 

of  their  plate  from  vanity  and  oftentation,  or  from  the  fame  reafon 

tiiat  the  quantity  of  fme  ftatues,  piflures,   and  of  every  other 

luxury,  and  curiofity,  is  likely  to  encreafe  among  them.     But  as 

ftatuaries  and' painters  are  not  likely  to  bc>  worfe  rewarded  in  times 

of  wealth  and  prolperity,  than  in  times  of  poverty  and'  depreffioni, 

fo  gold  and  filver  are  not  Ukcly  to  be  worfe  paid  fori;  ii^'  ^niino^g;^h 

The  price  of  gold  and  filver,  when  the  accidental  difcovery  of 
more  abundant  mines  does  not  keep  it  down,  as  it  naturally  riies 
with  the- wealth  of  every  country,  fo,  whatever  be  the  ftate  of 
the  mines,  it  is'at'  all  timesi  naturally,  higher  in  a  rich  than  in  a 
poor '  country^  Gold,  and  iilver«  like  all  other  commodities,  na-r 
turally  feek  the  market  where  the  beft  price  is  given  for  them,  and . 
the  heft  price  is  commonly  given  for  every  thing  in  the  country 
which  can  beft  afford  it.  Labour,  it  mud  be  remembered,  is 
the  ultimate  price  which  is  paid  for  everr'  thing,  and  in  countries 
where  labour  is  equally  well  rewarded,  the  money  price  of  labour 
will  be  in  proportion  to  that  of  the  fubliftence  of  the  labourer. 
But  gold.and  filver  will  naturally  exchange  for  a  greater  quantity  of 
fubfiftence  in  a  rich  than  in  a  poor  country,  in  a  country  which . 
abounds  with  fubfiftence,  than  in  one  which  is  but  indifferently  fup- 
plied  with  it.  If  the  two  countries  are  at  a  great  diftance,  the  dif- 
ference may  be  very  great;  becaufe  though  the  metals  naturally 
Hy  from  the  worfe  to  the  better  market,  yet  it  may  be  difficult  to 
tranfport  them  in  fuch  quantities  as  to  bring  their  price  nearly  to 
a  level  in  both.  If-  the  countries  are  near,  the  diH^erence  will  be 
lmaUer,.and  may  fometimes  be  fcarce  perceptible;  becaufe  in  this 

cafe. 


S5t 


THE   natIjr^   Af^fe   cA6sE^ 


OF 


BOOK  cafe  the  tranljportation  will  be  ea^.  thhui  is  a  much  licher  coun« 
try  than  any  part  of  Europe,  and  the  diiierence  between  the  price  of 
fubfifteiKe  in  China  and  in  Europe  is  very  great.  Rice  in  China 
is  much  cheaper  than  whcnt  is  any  where  in  Buropo.  England 
\&  a  much  rkhei'  countiy  than  Scotland  j  but  the  difference  between 
the  money  pritc  of  corn  in  thofe  two  countries  is  much  imaMor, 
and  is  but  juft  perceptible.  In  proportion  to  the  quantity  oi- 
meafure,  Scotch  com  getserally  appears  to  be  a  good  deal  cheaper 
than  Elngliih;  but  in  proportion  to  its  quality*  it  is  certainly  fome- 
what  deara*.  Scotland  receives  almoft  every  year  very  large  fup- 
plies  from  Englatid,  and  every  commodtty  muft  coounonly  be 
fomewhat  dearer  in  the  country  to  which  it  is  brought  than  in 
that  from  which  it  comes.  EngliCh  cdrni,  tfadrefore,  moft  be  dearer 
in  Scotland  than  in  EnglamU  «nd  yet  in  propcotion  t6itsli|ua]ity, 
or  to  the  quantity  and  goodkiei's  of  the  floor  br  meal  whkh  can 
be  made  from  it,  it  cannot  commonly  be  Ibid  higher  diere  tb*a 
the  Scotch  com  wlitdn  comes  to  market  in  competition  whh  it. 

/JThe  di^eifi^ce  between  the  monjcy  price  of  labour  in  Cliina  and 
in  Europe,  is  niU  greater  than  that  between  the  money  price  of 
fubfiftence;  becaufe  the  real  recompencQ,  of  labour  is  higher  in 
Europe  than  in  China,  the  greater  part  of  Europe  being  in  an 
improving  ftate,  while  Cluua  feems  ^o  be  flandipg  ftill.  The  mo- 
ney price  of  labour  is  lower  in  Scotland  than  in  England,  becauib 
the  real  recompence  of  labour  is  much  lower;  Scotland,  though 
advancing  to  greater  wealth,  advancing  much  more  flowly  than 
England.  The  proportion  between  the  real  recompence  of  labour 
in  difierent  countries,  it  muft  be  remembered,  is  naturally  r^u- 
lated,  not  by  their  actual  wealth  or  poverty,  but  by  their  advanc- 
ing, ^aj^o|^^,  oj:  4j5(;Uning.  condition. 

Go  L  Id  and  fit  W,  asithey  are  naturally  of  the  greateift  value  among 

the  richeft,  fo  f  hey  are  naturally  of  leafl:  value  among  the  pooreft 

7  nations. 


\' 


THE    WEALTH    OF    NATIONS. 


239 


nations^    Amrni^  i^%%  ^  99^^^^!^  ^^  ^ati^QS*  t|»ey  are  of  c  h^ap. 
fcai'ce  wy  value. ..^ unf.-vf'fflf'Kf'^ff •'Imp  i-ij^nW^f  '6  t:,^ v^tj*^  .-r*^ 

In  jreat  towm  <iorn  is  always  diQacer  than  in  remote  parts  of 
the  country.  T4iiB»  howeyfu^.,  is  the  eSt£\,  not  of  the  real  cbeap- 
nefs  of  filver,  but  of  the  real  dearnofs  of  com.  .It  does. not  cod 
lefs  labour  to  bring  filver  to  the  great  town  than  to  the  remote 
parts  flf  the  country  i  but  k  cofts  a  great  deal  more  to  bring 

In  ((bme  very  rich  and  isommercial  couittries,  Aich  as  Hol- 
land and  the  tevritory  of  Genoa,  corn  is  dear  for  the  fame. ceaibn 
that  it  is  ilear  in  great  towns.  They  do  not  pcoduae  i  enough  to 
maintain  itheu' inhabitants.  They  ajcerichimtho  induAry<and  fl&ill  pf 
their  artificers  and  maaufafburcrs^  in  every iort  of  mochinaiy  which 
can  facilitate  and  <abridge  labour)  in'fbq)ping,  and  in>aU  the  other 
inftruments  and  means  of  ioarriage  and  commerce-:  bnt  they  are 
poor  in  corn,  which,  as  hmuft -be  brought  ito  them  from  diftant 
countries,  muft,  by  an  addition  to  its  price,  pay  for  the  carriage 
from  thofe  countries.  It  does  not  coft  Icfs  labour  to  bring  filver  to 
Amfterdam  than  to  Dantzick;  but  it  cofts  a  great  deal  more  to 
bring  corn.  The  real  coft  of  filver  muft  be  nearly  the  fame  in 
both  places  J  but  that  of  corn  muft  be  very  different.  Diminifli 
the  real  opulence  either  of  Holland  or  of  the  territory  of  .Genoa, 
while  the  number  of  their  inhabitants  remains  the  fame  j  diminifli 
their  poWer  of  fupplying  themfelves  from  diftant  countries;  and 
the  price  of  com,  inftead  of  finking  with  that  diminution  in  the 
quantity  of  their  filver,  which. muft. neceflfarily  accompany  this  de- 
clenfion  either  as  its  cauie  or  as  its  efSe^,  will  rife  to  the  price  of 
a  famine.  When  we  are  in  want  of  ineeeflfaries  weimuft  part  with 
all  fuperfluities,  of  which  the  value,  as  itriies  in  times  of  opulence 
r  and  profperity,.  ib.  it .  £nks  in  4ira^?. of  poverty  and  diftceis.    it  is 

otherwife 


il 


140 


THE    iylATURE    AND    CAUSES    dF 


B  O^O  K  otherwifc 


with  neceflaries.  Their  real  price,  the  quantity  of 
labour  which  they  can  purchafe  or  command,  rifes  in  times  of 
poveity  and  diftrefs,  and  finks  in  times  of  opulence  and  prof, 
perity,  which  are  always  times  of  great  abundance;  for  they 
could  not  otherwife  be  times  of  opulence  and  profperity.  Corn 
is  a  neceflary,  filver  is  only  a  fuperfluity. 

A' 

i  Whatever,  therefore,  may  have  been  the  increafe  in  the  quan- 
tity of  the  precious  metals,  which,  during  the  period  between  the 
middle  of  the  fourteenth  and  that  of  the  iixteenth  century, 
arofe  from  the  increafe  of  wealth  and  improvement,  it  could  have 
no  tendency  to  diminilh  their  value  either  in  Great  Britain,  or 
in  any  other  part  of  Europe.  If  thofe  who  have  colle6led  the 
prices  of  things  in  ancient  times,  therefore,  had,  during  this  pe- 
riod, no  reafon  to  infer  the  diminution  of  the  value  of  filver,  from 
any  obfervations  which  they  had  made  upon  the  prices  either  of 
com  or  of  other  commodities,  they  had  ftill  lefs  reafon  to  infer  it 
from  any  fuppofed  increafe  of  wealth  and  improvement*  4 


n\ 


fSi 


>.• 


Second    Period. 


4 


•OUT  how  various  fbevcr  may  have  been  the  opinions  of  the 

learned  concerning  the  progrefs  of  the  value  of  filver  during 

this  firft  period,    they  are  unanimous  concerning  it  during  the 
"fccond. 

From  about  1570  to  about  1646,  during  a  period  of  about  fe- 
venty  years,  the  variation  in  the  proportion  between  the  value  of 
filver  and  that  of  corn,  held  a  quite  oppofite  courfe.  Silver  funk 
in  its  real  value,  or  would  exchange  for  a  fmaller  quantity  of  la- 
<bour  than  before  i  and  corn  rofe  in  its  nomhial  price,  and  inftead 
>  '  of 


THE     WHALTII    OF    NATIONS. 


^4« 


of  being  commonly  ioUl  Tw*  about  two  ounces  of  filver  the  quarter,    C  fi  A  P. 
or  about  ten  (hillings  of  our  prefent  money,  came  to  be  fold  for 
fix  and  eight  ounces  of  filver  the  quarter,  or  about  thirty  and  forty 
{hillings  of  our  prdent  money. 

The  difcovery  of  the  abundant  mines  of  America,  feems  to  have 
been  t!ie  fole  caufe  of  this  diminution  in  the  value  f  filver  in  pro- 
portion to  that  of  corn.  It  is  accounted  for  acc.^  dingly  in  the 
fame  manner  by  every  body;  and  there  never  has  been  any  difpute 
either  about  the  fa£t,  or  about  tl  ?  caufc  of  it.  The  greater  part  of 
Europe  was,  during  this  period,  advancing  in  induftry  and  im- 
provement, and  the  demand  for  filver  miift  confequently  have  been 
increafmg.  Dut  the  increafe  of  die  fu^:ply  had,  it  feems,  fo  far 
exceeded  that  of  the  demand,  that  the  value  nf  v  lat  metal  funk 
confiderably.  The  difcovery  of  the  mines  ot  America,  it  is  to 
be  obferved,  docs  not  feem  to  have  hid  my  very  fentiUe  effeft 
upon  the  prices  of  things  in  England  till  after  1570;  though 
even  the  mines  of  Potofi  had  been  diicovered  more  than  thirty 
years  before. 


X 


From  1595  to  1620,  both  inclufive,  the  average  price  of  the 
quarter  of  nine  bufliels  of  the  befl:  wheat  at  Windfor  market,  ap- 
pears, from  the  accounts  of  Eton  College,  to  have  been  2I.  is. 
6d.  ■^.  From  which  fum,  negledting  the  fraflion,  and  deducting 
a  ninth,  or  4  s.  7  d.  4,  tb«>  price  of  the  quarter  of  eight  buihcls 
comes  out  to  have  been  :  V  ;i6s.  10  d.  4..  And  from  this  fum, 
neglecting  likewife  the  fra£^\on,  and  deducting  a  ninth,  or  4s.  id..^, 
for  the  difference  between  the  price  of  the  beft  wheat,  and  that  of 
the  middle  wheat,  ttie  price  of  the  middle  wheat  comes  out  to 
have  been  about  1 1.  128.  8  d.  |,  or  about  fix  ounces  and  one- 
third  of  an  ounce  of  fUvcr.  T 

.......  I"     '.>'«'i 


Vol.  I. 


I  i 


From 


HI 


24^ 


THE  NATURE  AND  CAUSES  OF 

From  1621  to  1636,  both  inclufive,  the  average  price  of  the 
fame  nieafure  of  the  beft  wheat  at  the  fame  market,  appears,  from 
the  fame  accounts,  to  have  been  2I.  10  s.;  from  which  making 
the  like  deductions  as  in  the  foregoing  cafe,  the  average  price  of 
the  quarter  of  eight  bufliels  of  middle  wheat  comes  out  to  have 
been  1 1.  19  s.  6  d.  or  about  feven  ounces  and  two*- thirds  of  an 
ounce  of  filver. 


\>  V. 


T  H  I  R  D    Period. 


"DETWEEN  1630  and  1640,  or  about  1636,  the  efFefl  of  the 
difcovery  of  the  mines  of  America  in  reducing  the  value  of  filver,. 
appears  to  have  been  compleatcd,  and  the  value  of  that  metal  feems 
never  to  have  funk  lower  in  proportion  to  that  of  corn  than  it 
was  about  that  time.  It  feems  to  have  rifen  fomewhat  in  the 
courfe  of  the  prefent  century,  and  it  had  probably  begun  to  do  foj 
even  fome  time  before  the  end  of  the  li^ft*. 

From  1637  ta  1700,  both  inclufive,  being  the  fixty-four  laflT 
years  of  the  laft  century,  the  average  price  of  the  quarter  of  nine, 
hufhels  of  the  beft  wheat  at  Windfor  market,  appears,  from  the 
iame  accounts,  to  have  been  2I.  iis.  od.4;  which  is  only  i  s.  od.  ^ 
dearer  than  it  had  been  during  the  fixteen  years  before.    But  in 
tiie  courfe  of  tr^efe  fixty-four  years  there  happened  twa  evmts 
which  muft  have  produced  a  much  oreater  fearcity  of  com  than: 
what  the  courfe  of  the  feafons  would  otherwife  have  occafi^iedji. 
and  wbich,  therefore/  without  fuppofing  any  further  redudionv 
in  the  value  of  filver,  will  much  more  thaa  account  fisr  diis  very 
fmall  enhancement  of  price. 

The  firft  of  thefe  events  was  the  civil  war,  wbidi*  by  di(cburag<* 
log  tillii^e  and  interrupting  commerce,  muft  have  raifed  the  price. 


THE    WEALTH    OF    NATIONS. 


«43 


of  com  mudi  above  what  the  courfe  of  the  feafons  would  otherwife  ^  ^  ^* 
have  occalioned.  It  muft  have  had  this  effeft  more  or  lefs  at  all  ^■■>^** 
t&e  difTenent  maiicets  in  the  kingdom,  but  particularly  at  thofe  in 
-the  neighbourhood  of  London,  which  require  to  be  fupplied  from 
the  greateft  diftancc.  In  1648,  accordingly,  the  price  of  the 
bc^  wheat  at  Windfor  market,  appears,  from  the  fame  accounts, 
to  have  been  4I.  58.  and  in  1^49  to  have  been  4 1,  the  quarter  of 
nine  bufliels.  The  excefs  of  thofe  two  years  above  2I.  los.  (the 
average  price  of  the  fixteen  years  preceding  1^37)  is  3  1.  5  s.;  which 
divided  among  the  fixty-four  laft  years  of  the  laft  century,  will 
alone  very  nearly  account  for  that  fmall  enhancement  of  price 
which  feems  to  have  taken  place  in  them.  Thefe,  howv^er,  though 
the  higheft,  are  by  no  means  the  only  high  prices  which  feem  to 
have  been  occafioned  by  the  civil  wars. 


The  fecond  event  was  the  bounty  upon  the  exportation  of  com 
granted  in  1688.  The  bounty,  it  has  been  thought  by  many 
peojjle,  by  encouraging  tillage,  may,  in  a  long  courfe  of  years, 
have  occafioned  a  greater  abundance,  and  confequently  a  greater 
cheapnefs  of  corn  in  the  home-market  than  what  would  otherwife 
have  taken  place  there.  But  between  1688  and  1700,  it  had  no 
time  to  produce  this  effedt.  During  this  fhort  period  its  only  ef- 
fect muft  have  been,  by  encouraging,  the  exportation  of  the  furplus 
produce  of  every  year,  and  thereby  hindeiing  the  abundance  of 
one  year  from  compenfating  the  fcarcity  of  another,  to  raife  the 
price  in  the  home-market.  The  fcarcity  which  prevailed  in  Eng- 
land from  1693  to  1699,  both  inclufive,  though  no  doubt  prin- 
cipally owing  to  the  badnefs  of  the  feaibns,  and,  therefore,  extend-* 
ing  through  a  confiderable  part  of  Europe,  muft  have  been  fome* 
what  enhanced  by  the  bounty.  In  1699,  accordingly,  the  further 
exportation  of  corn  was  prohibited  for  nine  months. 


I  i  z 


Thkrr 


244 


THE     NATURE     AND    CAUSES     OF 


There  was  a  third  event  which  occurred  in  the  courTeof  the 
fame  period,  and  which,  though  it  could  not  occalion  any  fcarcity 
of  corn,  nor,  perhaps,  any  augmentation  in  the  real  quantity  of 
filver  which  was  ufually  paid  for  it,  muft  necefTarily  have  occa-i* 
fioned  fonie  augmentation  in  the  nominal  fum.  This  event  was 
the  great  degradation  of  the  filver  coin,  by  clipping  and  wearing. 
This  evil  had  begun  in  the  reign  of  Charles  II.  and  had  gone  on 
continually  increafing  till  1695 ;  at  which  time,  as  vfc  may  learn 
from  Mr.  Lowndes,  the  current  filver  coin  was  at  an  average,  near 
five  and  twenty  per  cent,  below  its  ftandard  value.  But  the  nomi- 
nal fum  which  conftitutes  the  market  price  of  every  commodity  is 
necefiarily  regulated,  not  fo  much  by  the  quantity  of  filver,  which, 
according  to  the  ftandard,  ought  to  be  contained  in  it,  as  by  that 
which,  it  is  found  by  experience,  actually  is  contained  in  it.  .  This 
nominal  fum,  therefore,  is  necelfarily  higher  when  the  coin  is 
much  degraded  by  clipping  and  wearing,  than  when  neai-  to  its 
ftandard  value. 


. ;  j.',v , 


^: 


In  the  courie  of  the  prefent  century,  the  filver  coin  has  hot  at 
any  time  been  more  below  its  ftandard  weight  than  it  is  at  prefent. 
But  though  very  much  defaced,  its  value  has  been  kept  up  by  that 
of  the  gold  coin  lor  which  it  is  exchanged.  For  though  before  the 
late  re- coinage,  the  gold  coin  was  a  good  deal  defaced  too,  it  was 
lefs  fo  than  the  filver.  In  1695,  on  the  contraiy,  the  value  of 
the  filver  coin  was  not  kept  up  by  the  gold  coin;  a  guinea  then 
commonly  exchanging  for  thirty  (hillings  of  the  worn  and  dipt 
filver.  Before  the  late  re-coinage  of  the  gold,  the  price  of  filver 
bullion  was  feldom  higher  than  five  fliillings  and  feven-pence  an 
ounce,  which  is  but  five-pence  above  the  mint  price.  But  in  1695, 
the  common  price  of  filver  bullion  was  fix  fhillings  and  five-pence 
an  ounce,  which  is  fifteen-pence  above  the  mint  price.  Even  be- 
fore the  late  re-coinage  of  the  gold,  therefore,  the  coin,  gold  and 
K,.  '  filver 


THE    WEALTH    OF    NATIONS* 


a+5 


filvcr  together,  when  compared  with  filver  bullion,  was  not  fup-  C  HA  p. 
pofed  to  be  more  than  eight  per  cent,  below  its  ftaiidard  value. 
In  1695,    on  the  contrary,  -it  had  been  fuppofed  to  be  near 
five  and  twenty  per  cent,  below  that  value.     But  in    the  be- 
ginning of  the   prefent'  century,    that  is  immediately  after  the 
great  re-coinage  in  King  W^Uam's  time,  the  greater  part  of  the 
current  filver  coin  mu(b  have  been   ftili  nearer  to  its  ftandard 
weight   than    it   is    at  prefent.      In  the  courle  of  the  prefent 
century  too  there  has  been  no  great  publick  calamity,  fuch  as 
the  civil  war,  which  could  either  difcourage  tillage  or  interrupt 
the  interior  commerce  of  the  country.     And  though  the  bounty, 
which  has  taken  place  through  the  greater  part  of  this  century, 
muft    always    raife   the   price  of  com  fbmewhat  higher  than  it 
otherwife  would  be  in  the  actual  ftate  of  tillage;  yet,  as  in 
the   courfe  of  this   century    the    bounty   has  had  full  time  to 
produce  all  the  good  effefls  commonly  imputed  to  it,  to  en- 
courage tillage,  and  thereby  to  increafe  the  quantity  of  corn  in 
the  home  market,  it  may  be  fuppofed  to  have  done  fomething  to 
lower  the  price  of  that  commodity  the  one  way,  as  well  as  to 
raife  it  the  other.     It  is  by  many  people  fuppoled  to  ha,ve  done 
more;    a  notion  which  I  (hall  examine  hereafter.     In  the  fixty- 
four  fiift  years  of  the  prefent  century  accordingly,    the  average 
price  of  the  quarter  of  nine  bufliels  of  the  beft  wheat  at  Windfor 
market,  appears,  by  the  accounts  of  Eton  College,  to  have  been 
2I.  OS.  6d.  44*   which  is   about  ten  (hillings  and  fixpence,    or 
more  than  five  and  twenty  per  cent,   cheaper  tlian  it  had  been 
during  the  fixty-four  lad  years  of  the  lad  century ;   and  about 
nine  (hillings  and  fix-pence  cheaper  than  it  had  been  during  the  fix- 
teen  years  preceeding  1 636,  when  the  difcovery  of  the  abundant  mines 
of  America  may  be  fuppofed  tc  have  produced  its  full  efie<Sti  and 
about  one  (hilling  cheaper  than  it  had  been  in  the  twenty-fix 
years  proceeding  1620,  before  that  difcovery  can  well  be  fuppofed 
to  have  produced  its  full  ef[e&.    According  to  this  account,  the 
"  average 


24^ 


THE    IN  AT  U  RE    AND    CAUSES    OF 


BO^OK  awrage  price  of  middle  wheat,  during  thcfe  iixty-four  Arft  yeari 

■  of  the  prabnt  coitury,  comes  out  to  have  been  about  thirty-two 

ihillings  the  quarter  of  eight  bulhels.  , 

The  value  df  filver,  therefore,  ieems  to  have  rifen  fomewhat 
In  proportio  1  to  that  of  corn  during  the  courfe  <^  the  prafent 
century,  artd  it  had  probably  begun  to  do  fb  even  fome  time 
before  the  end  of  the  laft. 

In  1687,  the  price  of  the  quarter  of  nine  bufliels  of  the  befl 
wheat  at  Windfor  market  was  il.  i^s.  2d.  the  loweft  price  at 
which  it  had  ever  been  from  1595. 

In  16BS,  Mr.  Gregofy  Ring,  a  man  famous  for  his  know-.- 
ledge  in  matters  of  this  kind,  eftimated  the  average  price  of 
wheat  in  years  of  moderate  plenty  to  be  to  the  grower  3s.  6d. 
the  buftiel,  or  eight  and  twenty  Hiillings  the  quarter.  The  glow- 
er's price  I  underftand  to  be  the  fame  with  what  is  fbmetinies  called 
the  contract  price,  or  the  price  at  which  a  fanner  contracts  for 
a  certain  number  o^f  years  to  ddiver  a  certain  quantity  of  coin  to 
a  dealer.  As  a  contraft  of  this  kind  faves  the  farmer  the  ex- 
pence  and  trouble  of  marketing,  the  contract  price  is  generally 
lower  than  what  is  fuppofed  to  be  the  average  market  price. 
Mr.  King  had  judged  eight  and  twenty  fhillings  the  quarter  to 
be  at  that  time  the  ordinary  contra£t  price  in  years  of  moderate 
plenty.  Before  the  fcarcity  occasioned  by  the  late  extraordinaiy 
courfe  of  bad  feafbns,  it  was  the  ordinary  contract  price  in  all 
common  years. 


In  1688  was  granted  the  parliamentary  bounty  upon  the  ex- 
portation of  corn.  The  country  gentlemen,  who  then  compofed  a 
jQill  greater  proportion  of  the  legiilature  than  they  do  at  prefent, 

had 


THE    WEALTH    OF    NATIONS. 


247 


had  felt  that  the  money  price  of  Cora  was  falling.     The  bounty    C  HA  P. 
wa»  af%  expedient  to  raife  it  artificially  to  the  high  price  at  which 
it  had  frequently  been  fold  in  the  times  of  Charles  I.  and  II.     It 
was  to  take  place,  therefore,  till  wheat  was  fo  high  as  forty-eight: 
fhilKngs  the  quarter;   that  is   twenty  (hillings,   or  |ths  dearer 
than  Mr.  King  had  in  that  very  year  eftimatcd  the  grower's  price 
to  be  in  times  of  moderate  plenty.     If  his  calculations  deferve  any; 
part  of  the  reputation  which  they  have  obtained  very  univerfajly^ 
eight  and  forty  fhilhngs  the  quarter  was  a  price  which,  without; 
fome  fuch  expedient  as  the  bounty,   could  not  at  that  time  be* 
expcfted,    except   in    years  of   extraordinary   fcarcity.     uut  the 
government  of  king  William  vas  not  then  fully  fettled.     It  wa» 
in  no.  condition  to  refufe  any  thing  to  the  country  gentlemen,, 
from  whom  it  was  at  that  very  time  foliciting  the  firA  eftablifli*- 
ment  of  the  annualland-tax*. 


'im 


A 


The  value  of  filver,  therefore,  in  proportion  to  that  of  corn^. 
had  probaUy  riien  fome  what  before  die  end  of  the  laft  century  $^ 
iotd  it  feems  to  have  continued  to  do  Ic  during  the  courfe  of  ther 
greater  part  of  the  prefent;  though  the  necefiary  operation  ofi 
the  bounty  muft  have  hindered  that  rife  from  being  fo  fenfible. 
js  it  otherwife  would  have  been  in  the  a6lual  ftate  of  tillage. 

In  plentiful  years  the  bounty,  by  occafioning  an  extraordinary/ 
exportation,   neceffarily  raifes  the  price   of  corn  above  what  it: 
otherwife  would  be  in  thofe  years.     To  encourage  tillage,  by  keep* 
ing  up  the  price  of  com  even  in  the  mod  plentiful  years, ,  was  the.: 
avowed  end  of  the  inftitution. 

l»  years  of  great  icarelty,  indeed,  the  boimty  has  generally' 
be«i  fufptnded.  It  muft,  however,  kwe  had  fome  effedt  event 
upon  the  prices  oi  many  of  thofe  years.    By  the  extraordmai^ 

-:  exportation} 


m 

.■}  a. 

Jli 


^j^.'Js'^"   ■.„  ""^W^^L 


THE  NATURE  AND  CAUSES  OF 

exj^artatlon  which  it  occaHons  in  years  of  plenty,   it  muA:  frC'  ' 
quently  hinder  the  plenty  of   one  year  from  compenfating  the 
fcarcity  of  ancther.  . 

'"''fioTi'  in  years  of  plenty  and  in  years  oi"  feat  city,  therefor  \  the 
bounty  raifes  the  price  of  corn  above  what  it  nacuriiiy  woiuA  be 
in  the  adual  ftjte  of  tillage.  If  dnring  t'le  fixty-four  iirft  years 
of  the  prefent  century,  tliercfore,  the  average  price  has  been 
lower  than  during  the  fixty-four  laft  years  of  the  laft  cpntuiy,  it 
muft,  in  the  fame  fhte  of  tiliage,  have  been  much  more  fo,  had 
it  not  been  for  this  operation  of  the  be  unty.     m*     'i*?!*?-   ,w?«4^*:^  ^ 

But  without  the  bounty,  if  may  be  faid,  the  ftate  of  tillage 
would  jwt  l;ave  been  the  fame.  What  may  have  been  the  eflfefts 
of  rhi;  iiiflitution  upon  the  agriculture  of  the  country,  J  (hall 
endeavour  to  explain  hereafter,  when  I  come  to  treat  particularly 
of  bounties.  I  fhall  only  obferve  at  j[>refen,t,  that  this  rife  in  the 
value  of  filv^r,  in  proportion  to  that  of  corn»  has  not  been 
peculiar  to  England.  It  has  been  obferved  to  haye  taken  pl^ce 
in  France  during  the  fame  period,  and  ^learly  in  the  iame  pro- 
portion to3,  by  thr«e  very  faithful,  diligent,  and  laborious  col- 
leftors  of  the  prices  of  corn,  Mr.  Dupre  de  St.  Maur,  Mr, 
MefTance,  and  the  author  of  the  EfTay  on  the  police  of  grain. 
But  in  France,  till  1764,  the  exportation  of  grain  was  by  law 
prohibited ;  and  it  is  fomewhat  difficult  to  fuppofe  that  nearly  the 
fame  diminution  of  price  which  took  place  in  one  country,  not- 
withflanding  this  prohibition,  fliould  in  another  be  owing  to  the 
extraordinary  encouragement  given  to  exportation. . 


It  would  be  more  proper  perhaps  to  confider  this  variation 
jii  the  average  m<;>ney  price  pf  corn  as  the  effedt  rather  of  ibme 
gradual  rife  in  the  real  value  of  filver  in  the  European  market, 
7  than 


"-♦a,- 


THE    WEALTH    OF    NATIONS. 


849 


than  of  any  fall  in  the  real  average  value  of  com.  Com,  it  has  ^  HA  P. 
already  been  ob&rved,  is  at  dift^nt  periods  of  time  a  more  accurate 
meafure  of  value  than  cither  fiiver  or  perhaps  any  other,  commo- 
dity. When  after  the  difcovery  of  the  abundant  mines  of  America, 
torn  rok  to  three  and  four  times  its  former  money  price,  .this 
change  was  unlverfally  afcribed«  not  to  any  rife  in  the  real  value 
f>f  corn,  but  to  a  fall  in  the  real  value  of  filver.  If  during  the 
fixty-four  firit  years  of  the  prefent  century,  therefore,  the  average 
money  price  of  corn  has  fallen  fomewhat  below  what  it  had  been 
during  the  greater  part  of  the  lall  century,  we  ihould  in  the  fame 
manner  impute  this  change,  not  to  any  fall  in  the  real  value  of  com, 
but  to  fome  rife  in  the  real  value  of  filver  in  the  European  market. 


■  Tme'  high  price  of  corn  during  thcfe  ten  or  twelve  years  paft, 
indeed,  has  occafioned  a  fufpicion  that  the  real  value  of  filver  ftill 
continues  to  fall  in  the  European  market.  This  high  price  of 
com,  however,  Teems  evidently  to  have  been  the  effect  of  the  extra- 
ordinary unfavourableiiefs  of  the  feaibns,  and  ought  therefore  to  be 
regarded,  not  as  a  permanent,  but  as  a  tranfitory  and  occafional 
event.  The  feafons  for  thefc  ten  or  twelve  years  part  have  been 
unfavourable  through  the  greater  part  of  Europe;  and  the  dil- 
orders  of  Poland  have  very  much  increafed  the  fcarcity  in  all  thofe 
countries,  which  in  dear  years  ufed  to  be  fupplied  from  that 
market.  So  long  a  courfe  of  bad  feafons,  though  not  a  very 
common  event,  is  by  no  means  a  Angular  one ;  and  whoever  has 
enquired  much  into  the  hiftory  of  the  prices  of  corn  in  former 
times,  will  be  at  no  lofs  to  recdlefl  fcveral  other  examples  of  the 
fame  kind.  Ten  years  of  extraordinary  fcarcity,  befides,  are  not 
m<»e  woBdcrfiil  than  ten  years  of  extraordinary  plenty.  The  low 
price  of  com  from  1741  to  1750,  both  inchiiivc,  may  viery  well 
be  fet  in  oppbfition  to  its  high  price  during  thefe  lafi:  eight  <^  ten 
years.  Frbm  1741  to  1750,  the  av^'age  price  of  the  quarter  of 
Vol.  I,  K  k  nine 


I 


m.^ 


I*! 

il 


the;  isa.t*^rj5  a^p  causes  qp 

^ine,bufbcU  of  thp  beft  iiyhwt  M,Win(|ifor  wark|et.  it.^pR^^if^^/rpn^ 
the  account?  of  Eton  College,  wa^  only  ^  I  13^.  .9  4  d. ,  vyhicli  is 
nearly  6s,  3d.  below, thp average  price  of  th^  fixty-fpur.firft  y^ars 
of  the  prefent  century.  The  av?r?fge  pfjice  of  the  qw^r^er  of  (c\gf^t 
bufhels  of  middlq  w^f||t„  cpn^wf  0,ut.  according  to  th,if^^^9jjn|;| 
to  have  b§ei^,  dwinj;  ^. tei^je^8.,on^y  fU^  ,rij  ,^ 

Between  1741  and  1759^  however^  the  bounty  muft  bavq 
hindered  the  price  o^  corn  from  Wng,  fp  \Qff  in  t^e  horn?  flaaj;l9C)t 
as  it  naturally  wpuld  have  done.  During  thf;fe  ten  year's  th|9 
quantity  of  all  forts  of  grain  exported,  it  appears  from  the  (;u^7 
tom-houfe  books,  amounted  to  no  lefs  than  eight  millions  twenty- 
nine  thoufand  one  hundred  and  fifty-fix  quaiters  one  bufliel. 
XhSpbffunl^  paid  fof  ^his  an^ounted  to  1,514,9^21.  i^s.j|.!^dp 
In.  1749  accordingly*  Mr.  I^clliam,  a^  that  time  fjrimc  jnihiifter^ 
obfei ved  to  thp  Hpufe  of  Con^mons,  that  for  the  tfiree  years  i>rc- 
ceeding  a  very  extraordinary  fum  had  be|en  paid  as  bounty  /°f,*^ 
exportation  of  corn.  He  had  goofl  reafon  to  m^ke  this  obfer- 
vation,  and  |n  ,^c  following  year,  he  might  have  had  ftilil)cti:er/ 
In  that  fingie  year  the  bounty  paid  amounted  to  no  lefs  t^aii 
324^1761.  10  s.  6d.  It  is  unneceffary  to  obfervehow  much  this 
forced  exportation  muft  have  raifed  the  price  of  com  above  what 
it  otherwife  would  have  been  in  the  home  market,  ^'/f  »'"^>J k^  iytb 
•;/c:)(it   k)    t!H.^  iiTji'inS'f'l  jdi  JUodE  ''{Inrn.  nut  vUaiqijaad  avail'. 

At  the  end  of  the  accounts  annexed  to  this  chapter  the  leader^ 
^U  find  the  particular  account  of  thofe  ten  years  leparated  from 
the  reft.  He  will  find  ther^  too  the  particular  account  of  th^ 
proceeding  ten  years,  of  which  the  average  is  likewife  below;  thof 
not  fb  much  below,  the  general  average  of  the  fixty-four  firii 
years  of  the  century.  The  year  1740,  however,  was  t  year  of 
extraordinary  fcarcity.  Thefe  twenty  years  preceeding  1750*  may 
very  well  be  fet  in  oppofition  to  the  twenty  preceeding  1770.    As. 

A  -jk  ,  the 


THE    WEALTH    Ot    JN'ATIONS;  ^s* 

century,  notwithflandin^  ':hb  intervention  of  one  or  two  dear  yea«i 
fo  the  latter  have  been  a  good  Aea\  above  it,  notmthftanding  the 
iiitfcrvention  6^  one  or  t^6  dMidp' dikk»  of  1759,  (ot  example. 
If  the  forffiir  Hate  not  bleen  as  rrftifeh  bifd^  the  general  average, 
as  the  latter  have  been  above  k,  Wd  ought  pmixAAj  to  impute 
it  to  the  bounty.  The  change  has  evidently  been  too  fudden  to 
be  afcribedto  any  change  in  the  v^lne  of  filver,  which  is  always 
A6V  '^d  gradu^.  The  fbddeuileii'  of  the  ef{bA  cati  be  accouhted 
f^  diily  by  a  cauli  whieh'can  operatd  fuddenly,  the  aaid^nttt! 
Vitriation  of  the  ibfons.  ."3^'oq>^3  n^^'J^  io  mot  Ik  ix)  yjunjiup 
.•y;'frjwj  isdoilliiu  Jtlgi^  nhfii  f:bj  en  o3  baJaiiO*'n^,,'.i;loofi  '^iiod-moi 

'The  money  price  of  labour  in  Great  Britain  has,  irideed,  rifen 
diirifig  tlic  courfe  of  the  prei?nt  century.  This,  hovVever,  fitmi'  ti) 
be  the  effect,  inU  to  much  of  any  diiiiihutlon  iti  the  vdiie  *bf  filvef 
in  the  European  market,  as  of  ah  increafe  in  the  dismand  fot 
labour'in  (jrr«it  Britain,  ari'nngfrom  the  great,  and!  almoft  uhiverfkl 
proilpefity  of  the  country,  tn  France,  a  coiinti^  Aot^  altOgfethSr 
fp  profperous,  the  money  price  of  labour  has,  lince  the  iniddle 
of,  the  laft  century,  been  obferved  to  fink  gradually  with  the 
average  mwey  price  of  corn.  Both  in  the  laft  century  a^d  in 
the  prefent,  the  day-wagej(  of  commpn  labour  are  there  fai^  to 
have  been  pretty  uniformly  about  the  twentieth  part  of  die  ave- 
rage price  of  the  feptier  of  wheat,  a  meafure  which  contains  a 
little  more  than  four  Winchefter  bufhels.  In  Great  Britain  the 
r^^  reco^pence  of  labour,  it  has  already  been  (howii,  the  r^aJl 
<li;^tity  of  the  necelTaries  and  conveniencies  of  lifp  wb^h  iasc^ 
given  t;o  the  labourer,  has  increafed  cojiriderably  during  the  coude 
of  the  prefent  century.  The  rife  in  its  money  price  j  feems  to 
have  been  the  effe6t«  not  of  any  diminution  of  the  value  of* 
fiWer  m^  the  genecal  market  of  Europe^  but  oi  a  rife  in  the  J^ea* 

»iii-y  •     -     ,-:  K  k  2 


sSHkV  J' 


price 


k 


25a 


THE    NATURE    AND    CAUSES    OF 


B  00  K  pirict  of  labour  in  the  paitleular  market  of  Oicat  BHlaitii  biving 
to  the  pecultaily  happy  cu'cumAftnees  of  the  country. 

For  fome  time  after  the  firft  diftovery  of  America,  filv^r  ^n^ijuM 
continue  to  fell  at  it»  former,  or  not  much  below  its  former  price. 
The  profits  of  mining  would  for  fome  time  be  very  great,  and  miKh 
above  their  natural  rate.  Thofe  who  imported  that  metal  into 
Europe^  however,  Would  ibon  find  that  the  whole  annual  importation 
could  not  be  difpoibd  <^  at  this  high  price.  Silver'  would  gra- 
dually exchange  for  a  fmaller  and  a  fmaller  quantity  of  goods. 
Its  price  would  fmk  gradually  lower  and  lower  till  It  fd^l  to  its 
natural  price;  or  to  what  was  juft  fufficient  to  pay,  according 
to  their  natural  rates,  the  wages  of  the  labour,  the  profits  of  the 
O|ock,  and  the  rent  of  the  land,  which  muft  be  paid  in  order 
to  bring  it  from  the  mine  to  the  market.  In  the  greater  part 
of  the  fiiver  mines  of  Peru,  the  tax  of  the  king  of  Spain,  amount- 
ing to  a  fifth  of  the  grofs  produce,  eats  up,  it  has  already  been 
obferved,  the  whole  rent  of  the  land.  This  tax  was  originally  a 
half;  it  (oon  afterwards  fell  to  a  third,  and  then  to  a  fiftli,  at 
which  rate  it  ftill  continues.  In  the  gicater  part  of  the  iilver 
mines  of  Peru  this,  it  fecms,  is  all  that  remains  after  replacing 
the  ftock  of  the  undertaker  of  the  work,  together  with  its  ordinary 
profits  >  and  it  feems  to  be  univerfally  acknowledged  that  thefb 
profits,  which  were  once  very  high,  are  now  as  low  as  they  can 
well  be,  confidently  with  carrying  on  the  wo£ks« 


The  tax  of  the  king  of  Spain  was  reduced  to  ft  fifth  part  of 
the  regiftered  filver  in  1504,  one  and  thirty  years  before  1535, 
the  date  of  the  difcovery  of  the  mines  of  Potofi.  In  the  courfe 
of  a  century,  or  before  1(^36,  thefe  mines,  the  moft  fertile  in  all 
'America,  had  time  Sufficient  to  produce  their  full  effeft^  or  to 
reduce  th&  value  of  filver  in  the  European  market  as  low  as  it 

could 


TF 


WBALTH    OF    NATIONS. 


*5 


could  inreU  falU  while  it  cootinued  to  pay  this  tax  to  tho  kinc;  ^  ^.^'^t . 
of  Spain.    A  hundred  years  is  time  fufficient  to  roduoe  any  com- 
modity, of  which  there  is  no  monopoly,  to  its  natural  pnce,  or 
to  the  lowoft  price  at  which,  whale  it  pays  a  particular  tax,  it  can 

The  price  of  iUver  in  the  European  market  might  perhaps  have 
fallen  itiU  lower,,  and  it  might  have  become  nece(2ary  either  to 
lower  the  tax  upon  it«  in  the  iame  manner  as  that  upon  gold, 
or  to  give  up  working  the  greater  pait  of  the  American  mines 
which  are  now  wrought.  The  gradual  increafe  of  the  demand 
for  filver,  or  the  gradual  enlargement  of  the  market  for  the  pro- 
duce of  the  i<lver  mines  of  America,  is  probably  the  caufe  which 
has  prevented  this  from  happening,  and  wluch  has,  not  only 
kept  up  the  value  of  filver  in  the  European  market,  but  has  per- 
haps even  raifed  it  fomewhat  higher  than  it  was  about  the  middle 
of  the  laft  century. 


o'^^ 


.r. ..    .  .r.     i.-.r,.;)cf;j 


Since  the  firft  difcovery  of  America,  the  market  for  the  p^o-^ 
duce  of  its  filver  nunes  has  been  growing  gradually  more  and 
more  extenfive. 


.  u  r-t  i<)Kf  ( <  i 


}\-f^f)   O'l'- 


First,  The  market  of  Europe  has  become  gradually  more  and 
more  extenfive.  Since  the  difcovery  of  America,  the  greater  part 
of  Europe  has  been  much  improved.  England,  Holland,  France, 
and  Germany ;  even  Sweden,  Denmark,  and  Ruflla,  have  all  ad- 
vanced confiderably  both  in  agriculture  nd  in  manufactures.  Italy 
feems  not  to  have  gone  backwaix^ii,  Ihe  fall  of  Italy  preceeded 
the  conqueft  of  Peru.  Since  that  time  it  feems  rather  to  hav& 
recovered  a  little.  Spsun  and  Portugal,  indeed,  are  fuppofed  to 
have  gone  backwards.  Poitugal,  however,  is  but  a  very  iinaU 
part  of  Europe,  and  th&  dedenfion  of  Spain  is  not,  perhaps,  ib 

great 


'm. 


^'?-.y> 


.if  ,  ^ 


\ 


ft.  ( 


af4 


THE    NAtURfi    A^^b    th  >SEi    OF 


flO^OK  greatf  arii  c6mmoniy  Itnagtiicd.  ^  IWtiitf  tie^nltig of  th^  fikiecmth 
«entuiy,  Spain  w*^  a  very  poor  cotintt^,  even  in  comparifon  with 
France,  which  has  been  fo  much  impi^oved '  fince  that  time.  It 
was  the  well  known  remark  of  thi  Emperor  Chafes  V,  who  had 
travelled  fo  fi-eqnently  through  both  cMntkies,  that  every  thing 
abounded  in  France,  but  that  everything  was  wanting  in  Spain. 
The  increafmg  produce  of  the  agriculture  and  manufa£hires  of 
Eurape  muft  neceirarily  have  required  a  gradual  increafe  in  the 
quantity  of  fihrei*  coin  to  ciiv:ulate  it }  and  tht  intrealing  nurtiber 
of  wealthy  individualtmuft  hav«  required  the  Kkt  incitalb  ui  tfte 
quantity  of  their  plate  and  other  ornaments  of  filVcr.t^'  ^^^^  rnaonii 


.O], 


^kcdNbLv,  America  is  itielf  a  new  market  for  the^rqduce^ of, 
it^  oWii'filver  rhtnes;  and  as  its  advances  in  agriculture;,  induftry^ 
anS  population^   are  much  more  rapid  than  th9^  of  ipe  mod 
thriving  countries  in  Europe,    its  demand  muft  increafe  much 
more  rapidly.    The  Engtiih  colonies  are  altogether  a  heMy'jnarlcet.^ 
which,  partly  for  cbin'and  partly  for  plate,  requires  a  cohti^uailv 
atigm^ntihg  iujiply  of  filver  through  a  greai  cohtinent  where  u^ 
never  was  any  demand  betore.    The  greater  part  too'of  the  Spaniih 
and  Pottuguefe  colonies  are  altogether  new  markets,     mw  Qra- , 
nada,  the  Yucatan,  Paraguay,  and  the  Brazils  were,,  l>efore  dif(^Q- , 
vered  by  the  Europeans,  inhabited  by  favage  nations^  wjio  had'i 
'  neither  arts  nor  agriculture.     A  contiderabfe  degree  of  both.nas 
now  been  introduced  into  all  of  them.    Even  Mexico  and  Peru, 
though  they  cannot  be  confidered  as  altogether  new  markets,  ^j^e.^ 
certainly  much  more  extenfive  ones  than  they  ever  were^  before^  * 
After  all  the  wonderful  tales  which  have  been  put)lifhed  concern- 
ing  the  fplendid'ftate  of  thbfe  countries  in  antient  times,  whoever 
reads    with  any  degree  of  fober  judgement,  the  hiflory  of  their  firfl, 
difcovery  arfd  cbnqufeft,  will  evidently  difcem  that,  in  arts,'  agn- 
cukiure  aoid  (i6mmerc6>  tlieir  inhabitants  were  much  more  ignorant 

^  than 


nolhri 


,THE,,  WIS^L.T^f^^   Or^f.'jfATJlOfyjSt. 


w 


yiji))i^«  the  more  civilized  natictn  of  the  t>y<Q,  though  they  made  ufc 
of  gold  and  ijlver  a^  ornaments*  had  no  coined  money  of  any  k'md; 
^'h^ir  who)^  C9)7nmercewa«  carried  oii.by  barter,  and  there  was 
^i^coicdingly  icarce  gny  divifion  lof  labour  among  them.  Thofv 
who  eultivated  the  ground  were  obliged  to  build  their  own  houfes, 
to  make  thur  own  hou(hold  furniturei  thrir  own  cloaths,  flioes* 
9ff4  ioftruments  of  agriculture.  TIm  few  artificer!  among  them 
i^re^^lflto  have  been  all  maintained  by  tlie  fovereign,  the  noUes>, 
ajjK)  t^e  priefhj  and  were  probably  their  iervants  or  Haves.  AU  the 
ancient  arts  of  Mexico  and  Peru  have  never  furnifhed  one  fmglo 
manufacture  to  Europe.  The  Spanifh  armies,  though  they  fcarce 
ever  exceeded  five  hundred  men,  and  frequently  d'^d  not  amount  to. 
half  that  humber^  found  almoft  every  where  great  diii^culty  i^ 
piyxiiiring  fubfiftence.  The  famines  which  they  are  faid  to  hayc^ 
occadoned  almoft  wherever  they  went,  in  countries  too  which  at  the 
fame  time  are  reprcfented  as  very  populfpus- an^  well  cultivated^ 
fu^ciently  demonftrate  that  the  (lory  of  this  populoi^fn^fs  and  high, 
cuttlyatior^  is  in  a  great  meafure  fabulous.  The  Sp^fii(h  colonies}: 
are  under  a  government  in  many  refpefts  lefs  favourable  to  agricul- 
tui^e,  improvement,  and  population,  than  that  of  the  Englidit 
colonies.  They  feem»  however,  to  be  advancing  in  all  thefe  muchL 
moi'e  rapioly  thdn  any  country  in  Europe.  la  a  fertile  foil  and 
ha|)py<iliifnate,.tlbe  great  abundance  and  cheiaprieiTs  of  land,  a  cir--. 
cuiiiftance  common  to  all  new  colonies,  is.  It  feems,  fo  great  an. 
advantage  as  to  compenfate  many  defers  in  civil  government.. 
Freiier,  who  vifited  Peru  in  17 13*  reprefents  Lima  as  rontainingj^^ 
between  twenty-five  and  twenty-eight  thoufand  inhabitants.  UUo^^} 
who  refided  in  the  fame  country  between  1740  and  1.746,.  repre*-, 
fents  it  as  contuning  more  than  fifty  thoufand.  The  difference  in, 
their  accounts  of  the  populoufnefs  of  feveral  other  principal  towns; 
in  Chili  and  Peru  is  nearly  the  fame^  and  as  there  ^eems  to  be  nou 

4J,  -,  reafoiv 


i 


> 


:^ 


■t 


t 


2  $6 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  reafon  to  doubt  of  the  good  information  of  either,  it  marks  aii 
increafe  which  is  fcarce  inferior  to  that  of  the  Englilh  colonies. 
America,  therefoi-e,  is  a  new  market  for  the  produce  of  its  own 
filver  niines,  of  which  the  demand  muO;  increafe  much  more  rapidly 
than  that  of  the  moft  thriving  country  in  Euix^e;    ■; 

Thirdlv,  The  Eaft-Indies  is  another  market  for  the  pro 'ace 
of  the  filver  mines  of  America,  and  a  market  which,  from  the 
timfe  of  the  firft  difcovcry  of  thofe  mines,  has  been  continuially 
tJiking  off  a  greater  and  a  greater  quantity  of  (liver.  Since  that 
time,  the  direft  trade  between  America  and  the  Eaft-Indies,  which 
is  carried  on  by  means  of  the  Acapulco  Hiips.  has  been  continually 
augmenting,  and  the  indirect  intercourfe  by  the  way  of  Europe 
has  been  augmenting  in  a  ftill  greater  proportion.  During  the 
fixteenth  century,  the  Portuguefe  were  the  only  European  nation 
who  carried  on  any  regular  trade  to  the  Eaft-Indies.  In  the  laft 
years  of  that  century  the  Dutch  began  to  encroach  upon  this 
monopoly,  and  in  a  few  years  expelled  them  from  their  principal 
fcttlements  in  India.  During  the  greater  part  of  the  laft  century 
thofe  two  nations  divided  the  moft  confiderablc  part  of  the  Eaft- 
India  trade  between  them;  the  trade  of  the  Dutch  continually 
augmenting  in  a  ftill  greater  proportion  than  that  of  the  Portuguefe 
declined.  The  Englifli  and  French  carried  on  fome  trade  with 
India  in  the  laft  century,  but  it  has  been  greatly  augmented  in  the 
courfe  of  the  prefent.  The  Eaft-India  trade  of  the  Swedes  and 
Danes  began  in  the  courfe  of  the  prefent  century.  Even  the  Muf- 
covites  now  trade  regularly  with  China  by  a  fort  of  caravans  which 
go  over  land  through  Siberia  and  Taitary  to  Pekin.  TIic  E«ft- 
India  trade  of  all  thefe  nations,  if  we  except  that  of  the  French, 
which  the  laft  war  had  well  nigh  annihilated,  has  been  almoft  con- 
tmually  augmenting.  The  increafing  confumption  of  Eaft-India 
gcods  in  Europe  is,  it  feems,  fo  great  as  to  afford  a  gradual  in- 
t?^    '   -i .        '  f'  ^i    '  ,/  crcafe 


THE    WEACTH    OF    NATIONS. 


257 


creafc  of  eraploymeht  to  them  all.  Tea,  for  example,  was  a  drug  ^  HA  P. 
very  little  ufed  in  Europe  before  the  middle  of  the  laft  century.  At 
preient  the  value,  of  the  tea  annually  imported  by  the  Englifh 
Eaft-India  Company^  for  the  ufe  of  their  own  countrymen, 
amounts  to  more  liian  t  million  and  a-  half  a  year ;  and  even  this 
is  not  enough ;  a  great  deal  more  being  conftantiy  fmuggled  into 
the  country  from  the  ports  of  Holland,  from  Gottenburg  in 
Sweden,  and  from  the  coafl  of  France  too  as  -long  as  the  French 
Eafl- India  Company  was  in  profperity.  The  confumption  of  the 
porcelain  of  China,  of  the  fpiceries  of  the  Moluccas,  of  the  piece 
.goods  of  Bengal,  and  of  innumerable  other  articles,  has  tncreaied 
very  nearly  in  a  like  proportion.  The  tunnage  accordingly  of  all 
the  European  (hipping  employed  hi  the  Eaft-India  trade  at  any 
one  time  during  the  laft  century,  was  not,  perhaps,  much  greater 
than  that  of  the  Englilh  Eaft-India  Company  before  the  late  reduc- 
tion of  their  (hipping.  {■ 

But  in  the  Eafl:  Indies,  particularly  in  China  and  Indoftan, 
the  value  of  the  precious  metals,  when  the  Europeans  firft  began 
to  trade  to  thofe  countries,  was  much  higher  than  in  Europe  j  and 
it  (tin  continues  to  be  fo.  In  rice  countries,  which  generally  yield 
two,  fometimes  xhree  crops  in  the  year,  each  of  them  more  plen- 
tiful than  any  common  crop  of  corn,  the  abundance  of  food  muft: 
"be  much  greater  than  in  any  corn  country  of  equal  extent.  Such 
countries  are  accordingly  much  more  populous.  In  them  too  the 
tich,  having  a  greater  fuper-abundance  of  food  to  difpofe  of  beyond 
what  they  themfclves  can  confume,  have  the  means  of  purchafing  a 
much  greater  quantity  of  the  labour  of  other  people.  The  retinue 
of  a  grandee  in  China  or  Indoftan  accordingly  is,  by  all  accounts, 
much  more  numerous  and  fplendid  than  that  of  the  richeft  fubje£l!« 
in  Europe.  The  fame  fuper-abundance  of  food,  df  which  they 
have  the  difpofal,  enables  them  to  give  a  greater  quantity  of  it 
for-  all  tho(e  fingular  and  rare  produ^ions  which  nature  farnifhes 
■ni^  Vol.  I.  L  1  but 


lAii 


«c8 


THE    NAT^RR.  A|fD    QA>U^ES,  OF 


ppo^   but  ii>,vei7  (mall  qiwrxtit^Sji  fuch  a^rthc  prewpusimetal;^,4i}d  thSj 

precidus  ftones,  the  great  obje6ls  o^  the  competition  of  the  rich. 

Though  the  mines,  therefore,  whfch  fupplied  the  Indian  market 

had  been  as  abui;idant  ^9  thoie  which  fupplied  the  European,  fuch 

commodities  woid^  naturally  e^chartge  for  a  greater  quantity  of 

food  m  India  than  in  Europe.     But  the  mines  which  fuppUed  the 

Indian  market  with  the  precious  metals  feem  to  have  be?n  a  good 

deal  lefs  abundant,  and  thoie  which  fupplied  it  witli  the  precious 

Aones  a  good  deal  more  fo,  than  the  mines  which  fupplied  tlie 

European.    The  precious  metals  therefore  would  naturally  exchange 

for  fomewhat  a  greater  quantity  of  the  precious  ftoncs,  and  for  a 

much  greater  quantity  of  food  in  India  than  in  Europe.     The 

money  price  of  diamonds,  the  greateftof  all  fuperfluities,  would  be 

fdmewhat  lower,  and  that  of  food,  the  firft  of  all  necefTaries,  a 

great  deal  lower  in  the  one  country  than  in  the  other.    But  the 

real  price  of  labour,  the  real  quantity  of  the  necefiai'ies  of  life  which 

is  given  to  the  labourer,  it  has  already  been  obferved,  is  lower  both 

in  China  and  Indoftan,  the  twa  gteat  markets  of  India,  than  it  is 

through  the  ^eater  part  of  Europe.    The  wages  of  the  labourer 

wffl  there  puTchafe  a  fmaller  qiiimtiity  of  food  ;  and  as  the  money 

price  of  food  is  much  lower  iti  India  than  in  Europe,  the  money 

prict  of   labour  is  there  lower  upon  a  double  account;    upon 

a(^count  both  of  the  fmall  quantity  of  food  which  it  will  purchaie, . 

and  of  the  low  price  of  that  food.     But  in  countries  of  equal  art. 

and  induAry,  the  money  price  of  the  greater  part  of  manufactures 

will  be  in  proportion  to  the  money  price  of  labour ;  and  in  matiu- 

fa£luring  art  and  induftry,  China  and  Indoftan,  tho'  inferior,  feem 

not  to  be  much  inferior  to  any  part  of  Europe.    The  money  price 

of  the  greater  part  of  manufadlures,  therefore,  will  naturally  be 

much  lower  in  thofe  great  empires  than  it  is  any  where  in  Europe. 

Through  the  greater  part  of  Europe  too  the  expence  of  land-cafw 

page  in^reafes  ver)'  much  both  the  real  and  nonunai  price  oi  moil 

.-    .  manu» 


THE  wEALTTiio^  Nations. 


i$9 


tnaniifaAares.   If  eoftimot'e  labour,  and  therefore  more  money,  io'  C^'ll'AP.' 

bring  firft  the  materials,  ancl  afterwards  the  compleat  mahufa^ure 
to  market.    In  China  and  Indoftan  the  extent  and  variety  of  inland 
ria^J^atlons  fave  'the  greater  part  of  this  labour,  and  confequently  of* 
tfes  moiiey,'  an^*^  thereby  reiduce  ftiU  lower  both  the  read  and  the., 
nbminiii  iiyrice  of  the  greater  part  of  their  manufa£lures.     Upon 
att  thefe  accounts,  the  precioiiis  metals  area  commodity  which  it 
always  has  been,  and  ftill  continues  to  be,  extremely  advantagfo  \ 
to  carry  frona  Europe  to  Wia.     There  is  fcarce  any  corr.n    HJy., 
which  brings  a  better  price  there  i  or  which,  in  proportion  ♦  >  UiS, 
qu^i^tity  of  labour  and  commodities  which  it  cofts  in  Europe,  will 
fHirchafe  or  command  a  greater  (quantity  of  labour  and  commodities, 
in  India. ,  It  is  more  advantageous  too  to  carry  filver  thither  thain^j 
gp)(d  i  becaufe  \fi  China,  and  the  greater  part  of  the  other  n^rkef^,, 
of  India,  the  proportion  between  fine  fHver  and  fine  gold  is  but  as^ 
ten  to  one  J  whereas  in  Europe  it  is  as  fourteen  or  fifteen  to  one. 
In  China,  and  the  greater  part  of  the  other  markets  of  India,  ten 
ounces  of  (ilver  will  purchafe  an  ounce  of  gold :    in  Europe  it^^ 
reqjuires  from  fourteen  to  fifteen  ounces.     In  the  cargoes,  there-., 
fore,  of  the  greater  part  of  European  fhips  which  fail  to  India, 
filvcr  has  generally  been  one  of  the  moft  valuable  articles.     It  is 
the  moil  valuable  article  in   ;i)«  Acapulco   fhips  which  fail  t0|^ 
Manilla.    The  filver  ot'  the  new  continent  feems  in  this  manner  to 
be  the  principal  commodity  by  which  the  commerce  between  the 
two  extremities  of  the  old  one  is  carried  on,  and  it  is  by  means  of 
it  chiefly  that  thofe  diftani  parts  of  the  world  are  conne£led  with 
one  another. 


•t» 


In  order  to  fupply  fo  /ery  widely  extended  a  market,  the  quan-  'j 
tky  of  fifver  armoaHy  brought  firom  the  mines  muft  not  only  be 
fufficient  to  fupport  that  conti  aal  increafe  both  of  coin  and  of 
plate  which  is  required  in  all  thriving  countries  i  but  to  repair  that 

L  1  2  continual 


if.y 


m 


■H\ 


;  ■  t 


if! 


a6o 


THE    NATURE    AND    CAUSES    OP 


BOOK  continual  waftc  and  confamption  of  filver  which  takes  place  in  att 
countries  where  that  metal  is  ufed^ 


The  continual  confMmption  of  the  precious  metals  in  coin  by- 
wearing,  and  in  plate  both  by  wearing  and  cleaning,  is  very  fen- 
fiblej  and  in  commodities  of  which  the  ufe  is  fo  very  widely 
extended,  would  atone  require  a  very  great  annual  fupply.  The 
confumption  of  thofe  metals  in  fome  particular  manufa6lures, 
though  it  may  not  perhaps  be  greater  upon  the  whole  than  this 
gradual  confumption,  is,  however,  much  more  fenfible,  as  it  is 
much  more  rapid.  In  the  manufaftures  of  Birmingham  alone, 
the  quantity  of  gold  and  filver  annually  employed  in  gilding  and 
plating,  and  thereby  difqualificd  from  ever  afterwards  appearing  in 
the  ihape  of  thofe  metals,  is  faid  to  amount  to  more  than  fifty 
thoufand  pounds  fterling.  We  may  from  thence  form  ftrnie  notion 
how  great  muft  be  the  annual  confumption  in  all  the  different 
parts  of  the  world,  either  in  manufaftures  of  the  fame  kind  with 
thofe  of  Birmingham,  or  in  laces,  embrcnderies,  gold  and  fil>:i 
ftuffs,  the  gilding  of  books>  furniture,  &c.  A  confiderable  quan- 
tity too  muft  be  annually  loft  in  tianfporting  thofe. metals  from 
one  place  to  another  both  by  fea  and  by  land.  In  the  greater  part 
of  the  governments  of'Afia,  befides,  the  almoft  univerfal  cuftom 
of  concealing  trcafures  in  the  bo-  ;ls  of  the  earth,  of  which  the 
knowledge  frequently  dies  with  the  perfon  who  makes  the  conceal*- 
mcnt,  muft  oocafion  the  lofs  of  a  ftill  greater  quantity. 


-*t 


The  quantity  of  gold  and  filver  imported  at  boih  Cadiz  and 
Lifbon  (including,  not  only  what  comes  under  regifter,  but  what 
may  be  fuppcfed  to  be  fmug^ed)  amounts,  according  to  the  beft 
accounts,  to  about  fix  millions  fterling  a  yea*. 


l,f..;..Uiil     / 


4,   1  J: 


According 


THE    WEALTH    OF    NATIONS. 


z^% 


i,  Accor'dino  to'  Mti  Meggehs  the  annual  importation,  of  the  C«AP.'? 
precious  metals  Into  Spain,  at  aa  average  of  fix  years  j  viz.  from 
1748  to  1753.  both  iriciufive;  and  into  Portugal,  at  an  average  of 
feven  years  ii  viz.i  from  174.7  to  ij52»  ^^^  inclufivej  amounted 
in  filver  to  1,101,107  pounds  weiglit;  and  in  gold  to  49.940 
pounds  weiglit.  The  filyer,  at  lixty-two  (hillings  the  pound  Troy, 
amounts  to  3,413,431!.  xos.  Iterling.  The  gold,  at  forty-four 
guineas  and  a  half  the  pound  Troy,  amounts  to  2,333,446!.  14s.. 
fterling.  Bath  together  amount  to  5,746,878!.  4s.  fterling.  The 
account  of  what  was  imj-rrted  under  re^fter,  he  affures  us  is  exadt. 
He  gives  us  the  detail  of  the  particular  places  from  which  the  gold 
and  filver  were  brought,  and  o£  the  particular  quantity  of  each 
metaf,  which,  according  to  the  regifter,  each  of  them  afforded.. 
He  makes  an  allowance  too  for  the  quantity  of  each  metal  which 
he  fuppofes  may  have  been  fmuggled.  The  great  experience  of  tliis 
judicious  merchant  renders  his  opinion  of  confiderable  weight. 

'.i.,  .  .   .  ....      ..^{i 

,i  According  to  the  eloquent  and  fometiraes  well  infcvnied 
author  of  the  philofophical  and  political  hiftory  of  the  eftabUfii- 
ment  of  the  Europeans  in  the  two  Indies,  the  annual  importation 
of  regiftered  gold  and  fxlver  into  Spain,  at  an  average  of  eleven 
ye?rs ;  viz.  from  1754  to  1764,  both  inclufive>  amounted  to 
13,984,1 85  4  piaflxes  of  ten  reals.  On  account  of  vvliat  may  have 
been  fmuggled,  however,  the  whole  annual  importation,  he  fup- 
pofes, may  have  amounted  to  fevcnteen  millii/ns  of  piaftres ;,  which 
at  4s.  6d.  tlie  piailre,  is  Cvjual  to  3,825,000!.  fterling.  Regives 
the  detail  too  of  the  particular  places  from  whicli  the  gold  and-, 
filver  were  brought,  and  of  the  particular  quantities  of  eacli  metal, 
which,  according  to  the  regifter,  each  of  them  afforded.  He  in- 
forms us  too,  that  if  we  were  to  judge  of  the  quantity  of  gold 
annually  imported  from  the  Brazils  into  Lifbon  by  the  amount  of 
the  tax  paid  to  the  king  of  Portugal,  which  it  feems  is  one-fifth , 


fH 


2&tf 


THE    NATURE    AND    CAUSES    OF 


BOOK  of  the  ftandavd  metftU  we  might  tiku  if  at  dghfeen  miMonft  of 
cruzadoes,  or  forty  ^ve  miUions  of  frenck  livres,  ecjual  to  about' 
two  mittiona  fterling.  On  account  of  what  may  have  beeir 
fmuggled>  however,  we  may  fefely,  he  fays,  add  to  thia  fum  an 
-eighth  mcM'e,  c^  250,000!.  fterling,  fi>  that  the  whole  wiH  amount 
to  2,a50va>ooL  fterlin^.  According  to  this  aecoiuit,  therefok-e. 
the  whde  annual  importation  of  the  precious  metals  into  both 
Spain  and  Portugal,  amounts  to  about  6»o75,oool.  f(erling^ 

Several  other  very  weH  authenticated  accounts,  I  have  been 
aflured,  agree  in  making  this  whole  annual  importation  amount  at 
an  average  to  about  fix  millions  fterling ;  fbmetimes  a  little  more,' 
fometimes  a  little  lefs. 


..J 


I'f. 


The  annual  importation  of  the  precious  metals  into  Cadiz  and 
X*ifbon,  indeed,  is  not  equal  to  the  whole  annual  produce  of  the 
mines  of  America.  Some  part  is  fent  annually  by  the  Acapulco 
ihipa  to  JVf  aoilla ;  feme  part  is  employed' in  the  contniband  tt^e 
wlnshttttSponiih  colonies  cany  on  with  tho&  of  other  European 
nations;,  and  fome  part^  no  doidit,  remains  in  the  country.  The 
manes  of  America,  beiides,  are  by  no  means  the  only  gold  and 
fdyermiixs  in  the  world.  They  are,  however,  hj  far  the  moft 
abundant.  The  prodiKe  of  kdi  the  other  ttiknm  #hich  ar6  known, ' 
is-  infigpifican*,  4ti  is-  adtnowliedged,  in  comparifbn  with  theirs ; 
and  the  far  greater  part  of  their  produce,  it  is  Kkewife  acknow-' 
ledged,  is  annually  imported  into  Cadiz  and  Lilbon.  But  the 
coniumption  of  Birmingham  «done,  at  the  rate  of  fifty-  thoufand 
poundft^a  year,  is  equal^  to  #fe  himdred  and  twentieth  part  of  dris 
annual  importation  at  the  i«ite  of  fix  m^Sons^  a  year.  The  whole 
xumoal  eonHimptaon  of  gold  and  filver  therefore  inr  jdl  the  different 
countries  of  the  world  where  iSaiok  metals  are  ufedj  may  perhaps  be* 
nearly  c^sd  to  the  whole  annual  produce.    The  remaaoder  may^ 


':»•< 


be 


^^HE    WEALTH    OF    NATIONS. 

bip  no  xc^m  thanXuificUntto  r«pply>  Ihe  increafing  demand  of  all 
trying  countries.  It  may  oven  have  fallen  fo  far  fliort  of  this 
demand  a^  fcuEQewhat  to  {aife  the  price  of  thofe  metals  in  the 
Gprppean,  n^rlc^tt,,,,,   .:>,,,.    ,,-,  .j- ^^y■.  .,  .n-. 


063 


CHAP. 
XI. 


•»'i  /w      ortf!  I'l*'.    ,'  •  C\: 


A.i.h 


.'Trs  quantity  of  brafs  and  iron  annually  brought  from  the 
nune  to  ^e  market  is  out  of  all  proportion  greater  than  that  of 
gold  and  filver.    We  do  not,  however,  upon  this  account,  imagine 
that  thofe  coarfe  metals  are  likely  to  mukiply  beyond  the  demand,, 
or  to  become  gradually  cheaper  and  cheaper.     Why  ftiouid  we 
imagine  that  the  precious  metals  are  Ukely  to  do  for  The  coarfe 
metals  indeed,  though  harder,  are  put  to  much  harder  ufesj  and. 
as  they  are  of  lefs  value,  lefs  care  is  employed  in  their  prefervation. 
The  precious  metals,  however,  are  not  neceflarily  immortal  any 
more  than  they,  but  are  liable  too  to  be  loft,  wafted  and  confumedc 
in  a  great  variety  of  ways.  >    itra^.i      .^■ 

Th£  price  of  all  metali,  though  liable  to  How' ttncf  gi^adtml 
variations,,  vai'ies  Ids  from  yea;'  to  year  than  that  of  almofl  any 
other  part  oi  the  rude  produce  of  land  j   and  the  price  of  the : 
precious  metals  is  even  lefs  liable  to  fudden  variations  than  that  of 
the  coarfe  ones.    The  durablenefs  of  metals  is  the  foundation  of 
this  extraordinary  fteadinefs  of  price.    The  corn  which  was  brought 
to  market  laft  year,  will  be  all  or  almoft  all  confumed  long  before - 
the  end  of  this  year.     But  feme  part  of  the  iron  which  was  brought . 
from  ihe  mine  two  or  tliree  hundred  years  ago,  may  be  flill  in ; 
ufe,  and  perhaps  fome  part  of  the  gold  which  was  brought  from 
it  two  or  three  thoufand  years  ago.     The  different  mafles  of  com  1 
wbidi  in  difFeient  years  muft  fup^'y  the  confiimption of  the  world, , 
will  idways  be  nearly  in  jM-oportion  (o  the  rdpe£Uve  product  of  > 
thole  ditferen^  years.     But  the  proportion  between  the  different 
mati&s  of  icon  which  may  be  in  ufe  in  two  different  year?,  vv^ill  te* 

4-  y«rjf 


m 


s64 


THE 'KATURE    AND    CAUSES    OF 


BOOK  very  little  affedtcd  by  any  accidental  difference  in  the  produce  of 
the  iron  mines  of  thofc  two  years  j  and  the  proportion  between  the 
mafles  of  gold  will  be  ftill  lefs  affected  by  any  fuch  difference  in  the 
produce  of  the  gold  mines.  Though  the  produce  of  the  greater 
part  of  metallick  mines,  therefore,  varies,  perhaps,  ftill  more  from 
year  to  year  than  that  of  the  greater  part  of  corn  fields,  thofe  vari- 
ations have  not  the  fame  effect  upon  the  price  of  the  one  fpecies 
of  commodities,  as  upon  that  of  the  other. 


•  '!•    'V 


t^._.!\ 


.  ?-.  •••v^  • 


11 


o. 


-"r^js  Variations  in  the  Proportion  between  the  refpcSiive  Values  of 
|;  ^^  •  Gold  and  Silver.  n 

T>  E  F  O  R  E  the  difcovery  of  the  mines  of  America,  the  value  of 
fine  gold  to  fine  fiiver  was  regulated  in  the  different  mints  of 
Europe,  between  the  proportions  of  one  to  ten  and  one  to  twelve  i 
that  is,  an  ounce  of  fine  gold  was  fuppofed  to  be  worth  from  ten  to 
twelve  ounces  of  fine  fiiver.  About  the  middle  of  the  laft  century 
it  came  to  be  regulated,  between  the  proportions  of  one  to  fourteen 
and  one  to  fifteen;  that  is,  an  ounce  of  fine  gold  came  to  be  fup- 
pofed worth  between  fourteen  and  fifteen  ounces  of  fine  fiiver. 
Gold  rofe  in  its  nominal  value,  or  in  the  quantity  of  fiiver  which 
was  given  for  it.  Both  metals  funk  in  their  real  value,  or  in  the 
quantity  of  labour  which  they  could  purchafe ;  but  iHistr  funk  more 
than  gold.  Though  both  the  gold  and  fiiver  mines  of  America 
exceeded  in  fertility  all  thofe  which  had  ever  been  known  before, 
the  fertility  of  the  fiiver  mines  had,  it  feems,  been  proportionably 
ftill  greater  than  that  of  the  gold  ones.  j- 


The  great  quantities  of  fiiver  carried  annually  from  Europe  to 

India,  have,  in  fome  of  the  Englifh  fettlements,  gradually  reduced 

the  value  of  that  metal  in  proportion  to  gold.     In  the  mint  of 

7  Calcutta, 


THE     WEALTH    OF    NATIONS. 


265 


Calcutta,  an  ounce  of  fine  gold  is  fuppofed  to  be  worth  fifteen  C  HA  P. 
ounces  of  fine  filver,  in  the  fame  manner  as  in  Europe.  It  is  in  the 
mint  perhaps  rated  too  high  for  the  value  which  it  bears  in  the 
market  of  Bengal.  In  China,  the  proportion  of  gold  to  filver 
ftili  continues  as  one  to  ten.  In  Japan  it  is  faid  to  be  as  one  to 
eight. 

The  proportion  between  the  quantities  of  gold  and  filver 
annually  imported  into  Europe,  according  to  Mr.  Meggens's  account, 
is  as  one  to  twenty-two  nearly ;  that  is,  for  one  ounce  of  gold  there 
are  imported  a  little  more  than  twenty-two  ounces  of  filver.  The 
great  quantity  of  filver  fent  annually  to  the  Eafi:  Indies,  reduces,  he 
fuppofes,  the  quantities  of  thofe  metals  which  remain  in  Europe 
to  the  proportion  of  one  to  fourteen  or  fifteen,  the  proportion  of 
their  values.  The  proportion  between  their  values,  he  feems  to 
think,  muft  ncceflarily  be  the  fame  as  that  between  their  quantities, 
and  would  therefore  be  as  one  to  twenty-two,  were  it  not  for  this 
greater  exportation  of  filver. 

But  the  ordinary  proportion  between  the  refpeflive  values  of  two 
commodities  is  not  necefTarily  the  fame  as  that  between  the  quan- 
tities of  them  which  are  commonly  in  the  market.  The  price  of  an 
ox,  reckoned  at  ten  guineas,  is  about  threefcore  times  the  price  of  a 
lamb,  reckoned  at  3  s.  6  d.  It  would  be  abfurd,  however,  to  infer 
from  thence,  that  there  arc  commonly  in  the  market  threefcore 
Iambs  for  one  ox  :  and  it  would  be  juft  as  abfurd  to  infer,  becaufe 
an  ounce  of  gold  will  commonly  purchafe  from  fourteen  to 
fifteen  ounces  of  filver,  that  there  are  commonly  in  the  market 
only  fourteen  or  fifteen  ounces  of  filver  for  one  ounce  of  gold. 

i 
The  quantity  of  filver  commonly  in  the  market,  it  is  probable, 

is  much  greater  in  proportion  to  that  of  gold,  than  the  value  of  a 

Vol.  I.  Mm,  certain 


THE  NATURE  AND  CAUSES  OP 

certain     uantity  of  gold  is  to  that  of  an  equal  quant uy  of  filver. 
The  whole  quantity  of  a  cheap  commock}'  brought  to  market, 
is  commonly,  not  only  greater,  but  c  gi  cater  value,  than  the 
whole  quantity  of  a  dear  one.    The  whole  quantity  of  bread 
annually  brought  to  market,  is  not  only  greater,   but  of  greater 
value   than  the  whole  quantity  of  butcher's-meat ;    the  whole 
quantity  of  butcher's-meat,  than  the  whole  quantity  of  poultry ; 
and  the  whole   quantity  of  poultiy,    than   the  whole  quantity 
of  wild  fowl.    There  are  fo  many  more  purchafers  for  the  cheap 
than  for  the  dear  commodity,  that,  not  only  a  greater  quantity  of 
it,  but  a  greatc  value  can  commonly  be  difpofed  of.     The  whole 
quantity,  therefore,  of  the  cheap  commodity  muft  commonly  be 
greater  in  proportion  to  the  whole  quantity  of  the  dear  one,  than  the 
value  of  a  certain  quantity  of  the  dear  one,  is  to  the  value  of  an  equal 
quantity  of  the  cheap  one.When  we  compare  theprecious  metals  with, 
one  another,  filver  is  a  cheap,  and  gold  a  dear  commodity.     We 
ought  naturally  to  expe£t,  therefore,  that  there  fhould  always  be 
in  the  market,  not  only  a  greater  quantity,  but  a  greater  value  of. 
iilvcr  'han  of  gold.     Let  any  man,  who  has  a  little  of  both,  com> 
pare  lus  own  filver  with  his  gold  plate,  and  he  will  probably  find,. 
that,  not  only  the  quantity,  but  the  value  of  the  former  greatly 
exceeds  that  of  the  latter.     Many  people,   befides,  have  a  good 
deal  of  filver  who  have  no  gold  plate,  which,  even  with  thofe  who 
have  it, .  is  generally  confined  to  watch  cafes,  fnufF-boxes,  and  fuch 
like  trinkets,  of  which  the  whole  amount  is  feldom  of  great  value.  In 
the  Britifii  coin,  indeed,  the  value  of  the  gold  preponderates  greatly, . 
but  it  is  not  fo  ir  that  of  all  countries.     In  the  coin  of  fome  coun^- 
tries  the  value  of  the  two  metals  is  nearly  equal.     In  the  Scotch . 
coin,  before  the  union  with  England,  the  gold  preponderated  very 
little,  though  it  did  fomewhat,  as  it  appears  by  the.  accounts  of 
the  mint.    In  the  coin  of  many  countries  the  filver  preponderates. 
In  France,  the  largeft  funis  are  commonly  paid  in  that  metal, 
-  .-..  .-T       :         ■      -  and 


THE    WEALTH    OF    NATIOJfS, 


t^7 


and  it  is  there  difficult  to  get  more  gold  than  what  it  is  necedary  to  C  HA  P. 
carry  about  in  your  pocket.  The  fuperior  value,  however,  of  the 
Alver  plate  above  that  of  the  gold,  which  takes  place  in  all 
countries,  will  much  more  than  compenfate  the  preponderancy  of 
the  gold  coin  above  the  ftlver,  which  takes  place  only  in  fome 
countries. 

Though,  in  one  ''-nfe  of  the  word,  filver  always  has  hee^i, 
and  probably  ?H'  '11  be,  much  cheaper  than  gold;  r^ii  m 

another  fenfe,   ^  perhaps,   in  the  prefent  ftate  ot  the 

European  market;  j  be  fomewhat  cheaper  than  filver.     A 

commodity  may  be  laid  to  be  dear  or  cheap,  not  only  according  to 
the  abfolute  grcatnefs  or  fmallncfs  of  its  ufual  price,  but  according 
as  that  price  is  more  or  lefs  above  the  loweft  for  which  it  is  poiTil^Ie 
to  bring  it  to  market  for  any  conftderable  time  together.  This 
loweft  price  is  that  which  barely  replaces,  with  a  moderate  profit, 
the  ftejk  which  muft  be  employed  in  bringing  the  commodity 
thither.  It  is  the  price  which  affords  nothing  to  the  landlord, 
of  which  rent  makes  not  any  component  part,  but  which  refolves 
itfelf  altogether  into  wages  and  profit.  But,  in  the  prefent  ftate 
of  the  European  market,  gold  is  certainly  fomewhat  nearer  to  this 
loweft  price  than  filver.  The  tax  of  the  king  of  Spain  upon  gold 
is  only  one-twentieth  part  of  the  ftandard  metal,  or  five  per  cent. ; 
whereas  his  tax  upon  filver  amounts  to  one- fifth  part  of  it,  or  to 
twenty  percent.  In  tliefe  taxes  too,  it  has  already  been  obferved, 
confifts  the  whole  rent  of  the  greater  part  of  the  gold  and  filver 
mines  of  Spaniih  America ;  and  that  upon  gold  is  ftill  worfe  paid 
than  that  upon  filver.  The  profits  of  the  undertakers  of  gold  mines 
too,  as  they  more  rarely  make  a  fortune,  muft,  in  general,  be  ftill  more 
-moderate  than  thofe  of  the  undertakers  of  filver  mines.  The  price 
of  Spanifh  gold,  therefore,  as  it  affords  both  lefs  rent  and  lefs  profit, 
muft,  in  the  European  market,  be  fomewhat  nearer  to  the  loweft 

M  m  2  .    price 


I 


« 


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^^^. 


^-  \^  ^> 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


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11.25 


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Hi  128 

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Hiotographic 

Sciences 

Corporation 


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^5^   ^\.  Wt^ 


23  WIST  MAIN  STMIT 

WIBSTIR.N.Y.  M5S0 

(716)I72-4S03 


'^ 


26^ 


THE    NATURE     AND     CAUSES     OF 


BOOK  price  for  which  it  is  poflible  to  bring  it  thither,  than  the  price  of 
Spanifh  filver.  Ihe  tax  of  the  king  of  Portugal,  indeed,  upon 
the  gold  of  the  Brazils,  is  the  fame  with  that  of  the  king  of  Spain 
upon  the  filver  of  Mexico  and  Peru  j  or  one-fifth  part  of  the 
ftandard  metal.  It  muft  ftill  be  true,  however,  that  the  whole  mafs 
of  American  gold  comes  to  the  European  market,  at  a  price  nearer 
to  the  lowefl  for  which  it  is  poflible  to  bring  it  thither,  than  the 
whole  mafs  of  American  filver.  When  all  expences  are  computed, 
it  would  feem,  the  whole  quantity  of  the  one  metal  cannot 
be  difpofcd  of  fo  advantageoufly  as  the  whole  quantity  of  the 
other. 

The  price  of  diamonds  and  other  precious  ftones  may,  perhaps, 
be  ftill  nearer  to  the  loweft  price  at  which  it  is  poflible  to  bring  them, 
to  market,  than  even  the  price  of  goW. 

Were  the  king  of  Spain  to  give  up  his  tax  upon  filver,  the 
price  of  that  metal  might  not,  upon  that  account,  fink  immediately 
in  the  European  market.  As  long  as  the  quantity  brought  thither 
continued  the  fame  as  before,  it  would  fiill  continue  to  fell  at  the 
fame  price.  The  firftand  immediate  eflfed):  of  this  change,  would  be 
to  increafe  the  profits  of  mining,  the  undertaker  of  the  mine  now 
gaining  all  that  he  had  been  ufed  to  pay  to  the  king.  Thefe  great 
profits  would  foon  tempt  a  greater  number  of  people  to  undertake 
the  working  of  new  mines.  Many  mines  would  be  wrought  which 
cannot  be  wrought  at  prefent,  becaufe  they  cannot  afford  to  pay 
tliis  tax,  and  the  quantity  of  filver  brought  to  market  would,  in 
a  few  years,  be  fo  much  augmented,  probably,  as  to  fink  its  price 
about  one-fifth  below  its  prefent  ftandard.  This  diminuticm  in  the 
value  of  filver  would  again  reduce  the  profits  of  mining  nearly  to 
their  prefent  rate» 


It 


THE    WEALTH    OF    NATIONS. 


269 


It  is  not  indeed  very  probable,  that  any  part  of  a  tax  which  .^jl^?* 
affords  fo  important  a  revenue,  and  which  is  impofe^  too  upon 
one  of  the  moft  proper  fubjefts  of  taxation,  will  ever  be  given  up 
as  long  as  it  is  poflible  to  pay  it.  The  impoflibility  of  paying  it, 
however,  may  in  time  make  it  neceflary  to  dimmifh  it,  in  the 
fame  manner  as  it  made  it  neceflary  to  diminifli  the  tax  upon  gold. 
That  the  filver  mines  of  Spanilh  America,  like  all  other  mines^ 
become  gradually  more  expenfive  in  the  working,  on  account  of 
the  greater  depths  at  which  it  is  neceflary  to  carry  on  the  works,, 
and  of  the  greater  expence  of  drawing  out  the  water  and  of  fupplying 
them  with  frefh  air  at  thofe  depths,  is  acknowledged  by  every  body 
who  has  enquired  into  the  ftate  of  thofe  mines. 

These  caufes,  which  are  equivalent  to  a  growing  Icarcity  of 
filver,  (for  a  commodity  may  be  faid  to  grow  fcarcer  when  it 
becomes  more  difficult  and  expenfive  to  coiled):  a  certain  quantity 
of  it),  muft,  in  time,  produce  one  or  other  of  the  three  following 
events.  The  increafe  of  the  expence  muft  either,  firft,  be  com- 
penfated  altogether  by  a  proportionable  increafe  in  the  price  of 
the  metal ;  or,  fecondly,  it  muft  be  compenfated  altogether  by  a. 
proportionable  diminution  of  the  tax  upon  filver ;  or,  thirdly,  it 
muft  be  compenfated  partly  by  the  one,  and  partly  by  the  other  of 
thofe  two  expedients.  This  third  event  is  very  poffible.  As  gold 
rofe  in  its  price  in  proportion  to  filver,  notwithftanding  a  great 
diminution  of  the  tax  upon  gold  -,  fo  filver  might  rife  in  its  price 
in  proportion  to  labour  and  commodities,  notwithftanding  an  equal; 
diminution  of  the  tax  upon  filver.. 


That  the  firft  of  thefe  three  events  has  ah-eady  begun  to  take 
place,,  or  that  filver  has,  during  the  courfe  of  the  prefent  century,, 
begun  to  rife  fomewhat  in  its  value  in  the  European- market,  the 
fa£ts  and  arguments  which  have  been  alledged  above  difpofe  me  tO' 

believ€» 


2^0 


iTHfi    KAtURE    ANl!)    CAtJS^ES    OF 

tfeUeve.  The  ifife,  indeed,  hais  hitherto  been  fo  Very  fmall,  that, 
after  idl  that  has  been  fud,  it  inay,  perhaps,  appear  to  many  people 
uncertain,  not  only  Ivhether  this  ievent  bias  a6):ual}y  taken  place, 
but  whether  the  cbhtrtiry  may  not  haife  taken  place,  or  whether  the 
valtie  of  filver  may  not  dill  cohtinue  to  fall  in  the  European 
market. 


Grounds  of  the  Bujpicion  that  the  Value  of  Silver  Jlill  continues 

to  decreafe. 


'Tp  H  E  increafe  of  the  wealth  of  Europe,  and  the  popular  notion 
that,  as  the  quantity  of  the  precious  metals  naturally  increafes 
with  the  increafe  6i  wealth,  fo  their  value  diminifhes  as  their  quan- 
tity increafes,  may,  befides,'  difpole  many  people  to  believe  that 
their  value  ftill  continues  to  fall  in  the  European  market ;  and  the 
flill  gradually  increafing  price  of  many  parts  of  the  rude  produce  of 
land  may,  perhaps,  confirm  them  ftill  further  in  this  opinion. 

^HAT  the  increafe  of  the  quantity  of  the  precious  metals  in  any 
country,  which  arifes  from  the  increafe  of  wealth,  has  no  tendency 
to  diminifh  their  value,  I  have  endeavoured  to  fhow  already.  Gold 
and  filver  naturally  refbrt  to  a  rich  count?  r  the  fame  reafbn  that 
all  forts  of  luxuries  and  curiofities  refort  t.  .  i  not  becaufe  they  are 
cheaper  there  than  in  poorer  countrjes,  but  becau&  they  are  dearer, 
or  becaufe  a  better  price  is  given  for  them.  It  is  the  fuperiority  of 
price  which  attracts  them,  and  as  foon  as  that  fuperiority  ceafes,  they 
.neceffarily  ceafe  to  go  thither. 

If  you  except  corn  and  fuch   other  vegetables  as  are  raifed' 
altogetlier  by  human  induflry,  that  all  other  forts  of  rude  produce, 
cattle,  poultry,  game  of  aiU  kinds,  the  ufeful  fofTils  and  minerals  of 

#  the 


THE    WEALTH    Of    NATIONS. 


n^ 


the  earth,  &c.  naturally  grow  dearer  as  the  fociety  advances  in  CHAP, 
wealth  and  improvement,  I  have  endeavoured  to  (how  already.  ^^" 
Though  fuch  commodities,  therefore,  come  to  exchange  for  a  greater 
quantity  of  filver  than  before,  it  will  not  from  thence  follow  that 
filver  has  become  really  cheaper,  or  will  purchafe  lefs  labour  than 
before,  but  that  iuch  commodities  have  become  really  dearer,  or 
will  purchafe  more  labour  than  before.  It  is  rot  their  nominal 
price  only,  but  their  real  price  which  rifes  in  the  orogrefs  of 
improvement.  The  rife  of  their  nominal  price  is  the  eilcft,  not  of 
any  degradation  of  the  value  of  filver,  but  of  the  rife  in  their 
real  price.  ?     ,  )  ^  ,    ,      :  -.   . 


J^jfferent  EJ['(&s  of  the  Progrefs  of  Improvement  vpoK  three  different: 

Sorts  of  ri{(ie  Procbii;e. 
• 
npHESE  different  foils  of  rude  produce  may  be  divided  into 

three  claffes.  The  tiiii:  compichends  thofe  which  it  is  fcarce 
in  the  power  of  human  induiii  y  vo  multiply  at  all.  The  fecond, 
thofe  which  it  can  multiply  in  j/'oportion  to  the  demand.  The 
third,  thofe  in  which  the  efficacy  of  induftry  is  either  limited  or 
uncert^n.  In  the  progrefs  of  wealth  and  improvement,  the  real 
price  of  the  Qrft  may  rife  to  any  degree  of  extravagance,  and  feems  not 
to  be  limited  by  any  certain  boundary.  That  of  the  fecond,  though 
it  may  rife  greatly,  has,  however,  a  certain  boundary  beyond  which  it 
cannot  well  pafs  for  any  confiderable  time  together.  That  of  the  third, 
though  its  natural  tendency  is  to  rife  in  the  progrefs  of  improve- 
ment, yet  in  the  fame  degree  of  improvement  it  may  fometimes 
happen  even  to  fall,  fometimes  to  continue  the  fame,  and  fome- 
times to  rife  more  or  lefs,  according  as  different  accidents  render 
the  efforts  of  human  induftry,  in  multiplying  this  fort  of  rude 
produce,  more  or  lefs  fuccefsful. .  > 


m 


ft 


f.;l 


.f 


ft". 
1  ' 


,  h 


Firji 


Tj±  THE    NATURE    AND    CAUSES    OF 

BOOK    ^i:  ^  ' 

I.  v;-. 

Vtrji  Sort. 

The  firft  fort  of  rude  produce  of  which  the  price  rifes  in  the 
progrefs  of  improvement,  is  that  which  it  is  fcarcc  in  the  power  of 
human  induftry  to  multiply  at  all.  It  confifts  in  thofc  things 
which  nature  produces  only  in  certain  quantities,  and  which  being 
of  a  very  peri(hable  nature,  it  is  impoflible  to  accumulate  together 
the  produce  of  many  different  feafons.  Such  are  the  greater  part 
of  rare  and  Angular  birds  and  fiflies,  many  different  forts  of  game, 
almoft  all  wild-fowl,  all  birds  of  paffage  in  particular,  as  well  as 
many  other  things.  When  wealth,  and  the  luxury  which  accom- 
panies it,  increafe,  the  demand  for  thefe  is  likely  to  increafe  with 
them,  and  no  effort  of  human  induftry  may  be  able  to  increafe  the 
fupply  much  beyond  what  it  was  before  this  increafe  of  the  demand. 
The  quantity  of  fuch  commodities,  therefore,  remaining  the  fame, 
or  nearly  the  fame,  while  the  competition  to  purchafe  them  is  con- 
tinually increafing,  their  price  may  rife  to  any  degree  of  extrava- 
gance, and  feems  not  to  be  limited  by  any  certain  boundaiy.  If 
woodcocks  fliould  become  fo  fafhionable  as  to  fell  for  twenty  guineas 
a- piece,  no  effort  of  human  induftry  could  increafe  the  number  of 
thofe  brought  to  market,  much  beyond  what  it  is  at  prefent. 
The  high  price  paid  by  the  Romans,  in  the  time  of  tlieir  greateft 
grandeur,  for  rare  birds  and  fiflics,  may  in  this  manner  eafily  be 
accounted  for.  Thefe  prices  were  not  the  effeds  of  the  low  value 
offilver  in  thofe  times,  but  of  the  high  value  of  fuch  rarities  and 
curiofities  as  human  induftry  could  not  multiply  at  pleafure.  The 
real  value  of  filver  was  higher  at  Rome,  for  fome  time  before  and 
after  the  fall  of  the  republic,  than  it  is  through  the  greater  part 
of  Europe  at  prefent.  Three  feftertii,  equal  to  about  ftxpence 
llerling,  was  the  price  which  the  republic  paid  for  the  modius 
or  peck  of  the  tithe  wheat  of  Sicily.  This  price,  however, 
•V*i?      ••  :     -  was 


THE    WEALTH    OF    NATIONS. 


ft71 


was  probably  below  the  average  market  price,  the  obligation  to  C  HA  p. 
deliver  their  wheat  at  this  rate  being  confidered  as  a  tax  upon  the 
Sicilian  farmers.  When  the  Romans,  therefore,  had  occafion  to 
order  more  com  than  the  tithe  of  wheat  amounted  to,  they  were 
bound  by  cajxtulation  to  pay  for  the  furplus  at  the  rate  of  four 
feftertii,  or  eight-pence  fterling  the  peck;  and  this  had  probably 
been  reckoned  the  moderate  and  realbnable,  that  is,  the  ordinary 
or  average  contra£t  price  of  thoie  times ;  it  is  equal  to  about  one  and 
twenty  (hillings  the  quarter.  Eight  and  twenty  {hillings  the  quarter 
was,  before  the  late  years  of  fcarcity,  the  ordinary  contract  price 
of  Englifli  wheat,  which  in  quality  is  inferior  to  the  Sicilian,  and 
generally  fells  for  a  lower  price  in  the  Ew'opean  market.  The 
value  of  filver,  therefore,  in  thofe  antlent  times,  muft  have  been 
to  its  value  in  the  prefent,  as  three  to  four  inverfely,  that  is,  three 
ounces  of  filver  would  then  have  purchafed  the  fame  quantity  of 
labour  and  commodities  whidi  four  ounces  vrill  do  at  prefent. 
When  we  read  in  Pliny,  therefore,  that  Seius  bought  a  white 
nightingale,  as  a  prefent  for  the  empi'cfs  Agrippina,  at  the  price  of 
fix  thoufand  feftertii,  equal  to  about  fifty  pounds  of  our  prefent 
money  j  and  that  Afinius  Celer  purchafed  a  furmullet  at  the  price 
of  eight  thoufand  feftertii,  equal  to  about  fixty-fix  pounds  thirteen 
ihillings  and  four-pence  of  our  prefent  money,  the  extravagance 
of  thofe  prices,  how  much  foever  it  may  furprife  us,  is  apt,  not- 
withftanding,  to  appear  to  us  about  one-third  lefs  than  it  really 
was.  Their  real  price,  the  quantity  of  labour  and  fubfiftence  which 
was  given  away  for  them,  was  about  one-third  more  than  their 
.nominal  price  is  apt  to  exprcfs  to  us  in  the  prefent  times.  Seius 
gave  for  the  nightingale  the  command  of  a  quantity  of  labour  and 
fubfiftence,  equal  to  what  661.  13  s.  4d.  would  purchafe  in  the 
■  prefent  times  ;  and  Afinius  Celer  gave  for  the  furmullet  the  com- 
mand (rfa  quantity  equal  to  what  881.  17  s.  9  ^d.  would  purchafe. 
What  occafioned  the  extravagance  of  thofe  high  prices  was,  not  fo 
Vol.  J.  N  u    '  much 


m 


m 


THE  NATURE  AND  CAUSES  OF 


B  0  0 IC  much  tlie  abund^ince  of  filver,  as  the  abundance  of  labour  and 
fubfidence,  of  which  ttiofe  Romans  had  the  difpofal,  beyond  what 
was  neceflary  for  theiif  own  ufe.  The  quantity  of  filver,  of  which 
they  had  the  difpofal,  was  a  good  deal  lefs  than  what  the  command 
of  tlie  fame  quantity  bf  labour  and  fuhfiftence  would  have  procured 
to  them  in  the  prefent  times.'     ' 


t  .- 


'  tr 


Hi  I    l'.i.\l. 


.jii;,'i.;iUiOiiirf 


Second  Sort. 


'  The  fecond  fort  of  rude  produce  of  which  the  price  rifes  in  the 
progrefs  of  in^}rovement,  is  that  which  human  induiliy  can  muU 
tiply  in  proportion  to  the  demand.  It  confifts  in  thofe  ufefiil 
plants  and  animals*  which,,  in  uncultivated  countries,  nature  pro- 
duces vrith  fuch  profufe  abundance,  that  they  are  of  little  or  no 
value,  and  wbi«h»  as  cultivation  advances,  ai'e  therefore  forced  to 
give  place  to.  fomc  more  profitable  produce.  During  a  long  period 
in  the  progrefs  of  improvement,  the  quantity  of  thcic  is  continually 
diniiuilhing,  while  at  the  fame  time  the  demand  for  them  is  continu- 
ally ii^cceafing.  Their  real  value,  therefore,  the  real  quantity  of  la.- 
bour  which  they  will  purchafe  or  command,  gradually  rifcs,  till  at  lafl: 
4t  gets  fb  high  as  to  render  them  as  profitable  a  produce  as  any 
thing  elfe  wJiich  human  induftry  can  raife  upon  the  moft  fertile. 
,  and  befl  cultivated  land.  When  it  has  got  fo  high  it  cannot  well 
go  higher.  If  it  did,  more  land  and  more  induflry  would  foon  be 
employed  to  increafe  their  quantity. 

When  the  price  of  cattle,  for  example,  rifes  fo  high  that  it  is 
as  profitable  to  cultivate  land  in  order  to  raife  food  for  them,  as  in 
order  to  raife  food  for  man,  it  cannot  well  go  higher.  If  it  did,  more 
corn  land  would  foon  be  turned  into  paflure.  The  extenfion  of 
tillage,  by  diminiftiing  the  quantity  of  wild  pafture,  diminifhes  tlie 
'quantity  of  butcher's- meat  which  the  country  naturally  produces 
without  labour  or  cultivation,  and  by  increafing  the  number  of 

thofe 


THE    WEALTH    OF    NATIQJf|9v 

thofe    who    have   either   corn,    or,     what  coqjes   to  the  fame 
thing,  the  price  of  corn,  to  give  in  ^xghtnge  for  it,  increafes  the 
demand.     The  price  of  butcher's  -  meat,    t^refpre,    and  confe- 
qiiently  of  cattle,  muft  gradually  rife  till  it  igi;ts  fo  high  that  it 
becomes  as  profitable  to  employ  the  moft  fertile  and  beft  cultivated 
lands  in  raifmg  food  for  them  as  in  raifing  corn.     But  it  mud 
always  be  late  in  the  progrefs  of  improvement  before  tillage  can 
be  fo  far  extended  as  to  raife  the  price  of  cattle  to  this  height;  and 
till  it  has  got  to  this  height,  if  the  country  is  advancing  at  all,  their 
price  muft  be  continually  fifing.    There  are,  perhaps,  fome  parts  oS 
Europe  in  which  the  price  of  cattle  has  not  yet  go^  to  thisi  height. 
It  had  not  got  to  this  height  in  any  part  of  Scotland ,  before  the 
union.     Had  the  Scotch  cattle  been  always  confined  to  the  market 
of  Scotland*  in  a  country  in  which  the  quantity  of  land»  which 
can  be  applied  to  no  other  purpofe  but  tiie  feeding  of  cattle,  is  fb 
great  in  proportion  to  what  can  be  applied  to  other  purpoicq,  it  is 
fcarce  pofiible,  perhaps,  that  their  price  could  ever  have,  rifen  fo 
high  as  to  render  it  profitable  to  cultivate  land  for  the  fake  of  feed- 
ing them.     In  England,  the  price  of  cattle,  it  has  already  been 
obferved,  feems,    in  the  neighbourhood  of  London,   to  have  got 
to  this  height  about  the  beginning  of  the  laft  century;  but  it  was 
much  later  probably  before  it  got  to  it  through  the  greater  part  of 
the  remoter  counties;  in  fome  of  which,  perhaps,  it  may  fcarce 
yet  have  got  to  it.     Of  all  the  different  fuljftances,  however,  which 
compofe  this  fecond  fort  of  rude  produc?.  cattle  is,  perhaps,  that 
of  which  the  price,  in  the  progrefs  of  improvement,  rifps  firft  to 
this  height.  ,        , . 


CHAR. 

XI. 


m 


i 


Till  the  price  of  cattle,  indeed,  has  got  to  this  height,  it  feems 
fv-arce  poffible  that  the  greater  part,  even  of  thofe  lands  which  are 
capable  of  the  higheft  cultivation,  can  be  completely  cultivated. 
In  all  farms  too  diftant  from  any  town  to  carry  manure  frp^n  it, 

N  n  3  '     .  that 


a';6 


THE  NATURE  AND  CAUSES  OP 


BOOK  that  is,  in  the  far  greater  part  of  thofc  of  every  extcnfrvecounti-y, 
the  quantity  of  well-cultivated  land  muH:  be  in  proportion  to  the 
quantity  of  manure  which  the  farm  it(elf  piKxIuces ;  and  this  again 
mud  be  in  proportion  to  the  ftock  of  cattle  whicli  are  maintained 
upon  it.  The  land  is  manured  either  by  paduring  the  cattie  upon 
it,  or  by  feeding  them  in  the  ftable,  and  from  thence  carrying  out 
their  dung  to  it»  But  unlefs  the  piice  of  the  cattle  be  fuificient  to 
pay  both  the  rent  and  profit  of  cultivated  land,  the  farmei'  cannot 
affoid  to  pafture  them  upon  it|  and  he  can  fVill  IdCs  afFord  to  feed 
them  in  the  ftabk.  It  is  with  ^e  pixjduce  of  improved  and 
cultivated  land  only,  that  catde  can  be  fed  m  the  ftable j  be> 
caufe  to  colle£t  the  fcanty  and  Scattered  produce  of  waifte  and  un- 
improved lands  would  require  too  much  labour  and  be  too  ex- 
penfive.  If  the  price  of  the  cattle,  there^M'e,  is  not  fufficient  to- 
pay  for  the  produce  of  improved  and  culttvated  land,  when  they 
are  allowed  to  pafhire  it,  that  price  will  be  iSiH  kfs  fufficient  to. 
pay  for  that  produce  when  it  muft  be  coHe6berd  with  a  good  deal 
of  additional  labour,  and  brought  into  the  ftable  to  them.  In  thefe 
circumftances,  therefore,  no  more  cattle  can,  with  profit,  be  fed  in< 
the  ftable  than  what  are  neceflary  for  tillage.  But  thefe  can  never 
afford  manure  enough  for  keeping  cohftantly  in  good  condition, 
an  the  lands  which  they  are  capable  of  cultivating.  What  they 
afford  being  infufHcient  for  the  whole  farm,  will  naturally  be  re- 
fervedforthe  lands  to  which  it  can  be  moft  advantageoufly  or 
conveniently  applied;  the  moft  fertile,  or  thofe,  perhaps,  in  the 
neighbourfiood  of  the  farm-yard.  Thefe,  therefore,  will  be  kept 
conftantly  in  good  condition  and  fit  for  tillage.  The  reft  will, 
the  greater  part  of  them,  be  allowed  to  lie  wafte,  producing 
fcarce  any  thing  hot  fume  miferable  pafture,  juft  fufikient  to  keep 
alive  a  few  ftraggling,  half-ftarved' cattle;  thefarm^  though  much 
underftocked  in  prc^rtion  to  what  would  be  neceflkry  for  its  com- 
plete cultivation,  being  very  frequently  overftotked  in  proportion  to 

i  its 


THE    WEALTH    OF    NATIONS^ 


%77 


ks  a^ual  produce.  A  portion  of  this  wnftc  land,  however,  after  ^  'Lf  ^ 
having  been  paftured  in  this  wretdied  manner  for  fix  or  feven  years 
together,  may  be  ploughed  up,  when  it  will  yield,  perhaps,  a 
poor  crop  or  two  of  bad  oats,  or  of  fome  other  coarfe  grain;  and 
then,  being  entirely  cxhauded,  it  muft  be  reded  and  paftured  again 
as  before,  and  another  portion  ploughed  up  to  be  in  the  fame 
manner  exhaufted  and  reeled  again  in  its  turn.  Such  accordingly 
was  the  general  fyftem  of  management  all  over  the  low  country  of 
Scotland  before  the  union.  The  lands  which  were  kept  con- 
ftantly  well  mamired  and  in  good  condition,  fddum  exceeded  a 
tiiird  or  a  fourth  part  of  the  whole  farm,  and  fometimes  did  not 
amount  to  a  fifth  or  a  fixth  part  of  it.  The  reft  were  never  ma-» 
nurcd,  but  a  certain  portion  of  thorn  was  ia  its  torn,  notwlth^ 
ftanding,  regularly  cultivated  and  exhaufted.  Under .  this  fyilem 
of  management,  it  is  evident,  even  that  part  of  the  lands  of  ScoO 
land  which  is  capable  of  good  cultivation,  could  produce  but  little 
in  comparifon  of  what  it  may  be  capable  of  producing.  But  how^ 
difadvantageous  foever  this  fyilem  may  appear,  yet  befcne  the  union 
the  low  price  of  cattle  Teems  to  have  rendered  it  almoft  unavoid-* 
able.  If,  notwithftanding  a  great  rife  in  their  piice,  it  ftill  con-^ 
tinues  to  prevail  through  a  confiderable  pait  of  the  country,  it  is 
owing  in  many  places,  no  doubt,  to  ignorance  and  attachment  to 
old  cuftoms,  but  in.  mofl  places  to  the  unavoidable  obftruftions 
which  the  natural  courfe  of  things  oppofes  to  the  immediate  or 
fpeedy  eftablifiiment  of  a  better  fyftem :  firft,  to  the  poverty  of 
the  tenants,  to  their  not  having  yet  had  time  to  acquire  a  (lock  of 
cattle  fuifictent  to  cultivate  their  lands  more  completely,  tiie  fame 
rife  of  price  which  would  render  it  advantageous  for  them  to  main<k 
tain  a  greater  ftock,  rendering  it  more  difficult  for  them  to  ac- 
quire it;  and,  fecondly,  to  their  not  having  yet  had  time  to  put 
-didr  lands  in  condition  to  mountain  this  greater  ftock  properly^ 
fuppofing  they  were  capable  of  acquiring  it.    The  iqucreafe  of 

ftock 


i 

if 
If 


ajS 


THE     NATURE     AND     CAUSES    OF 


B  O  O  K  ftock  and  the  improvement  of  land  arc  two  events  which  muft  go 
hand  in  hand,  and  of  which  the  one  can  no  where  much  out-run 
-the  other.  Without  fome  increafc  of  (lock,  there  can  be  fcarcc  any 
improvement  of  land,  but  there  can  be  no  confiderable  increafc 
of  ftock  but  in  confcquence  of  a  confidcrab'  improvement  of 
land;  bccaufc  otherwiie  the  land  could  not  mi^miain  it.  Thefc 
natural  obftru£lions  to  the  eftablifliment  of  a  better  fydem,  can- 
not  be  removed  but  by  a  long  courfe  of  frugality  and  induHry  ;  and 
half  a  century  or  a  century  more,  perhaps,  muft  pafs  away  before 
the  old  fyftem,  which  is  wearing  out  gradually,  can  be  completely 
abolifhed  through  all  the  different  parts  of  the  country.  Of  all 
commercial  advantages,  however,  which  Scotland  has  derived  from 
the  union  with  England,  this  rife  in  the  price  of  cattle  is,  per- 
haps, the  greateft.  It  has  not  only  raifed  the  value  of  all  highland 
^ftates,  but  it  has,  perhaps,  been  the  principal  caufe  of  the  im- 
provement of  the  low  country. 

In  all  new  colonies  the  great  quantity  of  wafte  land,  which 
can  for  many  years  be  applied  to  no  other  purpofe  but  the  feed- 
ing of  cattle,  foon  renders  them  extremely  abundant,  and  in 
every  thing  great  cheapncfs  is  the  necelTaiy  confequence  of  great 
abundance.  J  hough  all  the  cattle  of  the  European  colonies  in 
America  were  originally  carried  from  Europe,  they  foon  multi- 
plied fo  much  there,  and  became  of  fo  little  value,  that  even 
horfes  were  allowed  to  run  wild  in  the  woods  without  any  owner 
thinking  it  worth  while  to  claim  them.  It  muft  be  a  long  time 
after  the  6rft  eftabliftiment  of  fuch  colonies  before  it  can  become 
profitable  to  feed  cattle  upon  the  produce  of  cultivated  land. 
The  fame  caufes,  therefore,  the  want  of  manure,  and  the  dif- 
proportion  between  the  ftock  employed  in  cultivation,  and  the 
land  which  it  is  deftined  to  cultivate,  are  likely  to  introduce  there 
•a  fyftem  of  liulbaiuiry  not  unlike  that  which  ftill  continues  to 
7  take 


r\« 


THE    WEALTH    OF    NATIONS. 


279 


take  place  in  fo  many  parts  of  Scotland.  Mr.  Kalm,  the  Swedifh  C  HAP. 
traveller,  when  he  gives  an  acuv^unt  of  the  hufbandry  of  fome 
of  the  Englifh  colonies  in  North  America,  as  he  found  it  in  1 749, 
obferves,  accordingly,  that  he  can  with  difficulty  difcover  there 
the  character  of  the  Englifh  nation,  fo  well  (killed  in  all  the 
different  branches  of  agriculture.  They  make  fcarce  any  manure 
for  their  corn  fields,  he  fays  j  but  when  one  piece  of  ground  has 
been  exhaufled  by  continual  cropping,  they  clear  and  cultivate 
another  piece  of  frefli  landj  and  when  that  is  exhaufted,  proceed 
to  a  third.  Their  cattle  are  allowed  to  wander  through  the  woods 
and  other  uncultivated  grounds,  where  they  are  half  flarvedj 
having  long  ago  extirpated  almoft:  all  the  annual  grafles  by  cropping 
them  too  early  in  the  fpring,  before  they  had  time  to  form  their 
flowers,  or  to  (bed  their  feeds.  The  annual  grades  were,  it 
feems,  the  beft  natural  grades  in  that  part  of  North  America  j 
and  when  the  Europeans  firft  fettled  there,  they  ufed  to  grow- 
very  thick,  and  to  rife  three  or  four  feet  high.  A  piece  of 
ground  which,  when  he  wrote,  could  not  maintain  one  cow, 
would  in  former  times,  he  was  aflured,  have  maintained  four, 
each  of  which  would  have  given  four  times  the  quantity  of  milk, 
which  that  one  was  capable  of  giving.  The  poornefs  of  the 
pafture  had,  in  his  opinion,  occafioned  the  degradation  of  theii: 
cattle,  which  degenerated  feiifibly  from  one  generation  to  another. . 
They  were  probably  not  unlike  that  ihm ted  breed  which  was 
common  all  over  Scotland  thirty  or  forty  years  ago,  and  which  is 
now  fo  much  mended  through  the  grej^tcr  part  of  the  low  country,. 
not  fo  mu(  h  by  a  change  of  the  breed,  though  that  expedient  has 
been  employed  in  fome  places,  as  by  a  more  plentiful  method  of. 
feeding  tiiem. 


:.«.; 


;  ^ ! 


Though  it  is  late,  therefore,  in  the  progrcfs  of  improvement 
before  cattle  can  bring  fach  a  p^rice  as  to  render  it  pioiitable  t» 

cultivate: 


sSo 


THE    NATURE    AND    CAUSES    OF 


BOOK  cultivate  land  for  the  fake  of  feeding  them ;  yet  of  all  the  dif . 
ferent  parts  wbkh  oompofe  idiis  fecond  fort  of  rude  produce,  tkej 
are  perhaps  the  firft  which  bring  this  price ;  beeaufe  till  they  bring 
it,  it  feems  impoffible  that  improvetnent  can  be  brought  near 
even  to  that  degree  of  perfeflion  to  which  it  has  arriwd  in  many 
parts  of  Europe. 

■  As  cattle  are  among  the  firft,  fo  perhaps  venifon  is  among  the 
laft  parts  of  this  fort  of  rude  produce  which  bring  this  price. 
The  price  of  venifon  in  Great  Britain,  how  extravagant  foever 
It  may  appear,  is  not  near  lufHcient  to  compenfate  the  expence 
of  a  deer  park,  as  is  well  known  to  all  thoiib  who  have  had  any 
•experience  in  the  feeding  of  deer.  If  it  was  otherwile,  the  feed- 
ing of  deer  would  foon  become  an  article  of  common  farming; 
in  the  fame  manner  as  the  feeding  of  thofe  fmall  birds  called 
Turdi  was  among  the  antient  RcHnans.  Varro  and  Columella 
afTure  us  that  it  was  a  moft  profitable  article.  The  fattening  of 
Ortolans,  birds  of  padage  which  arrive  lean  in  the  country,  is 
fald  to  be  fo  in  fome  parts  of  France.  If  venifon  continues  in 
fadiion,  and  the  wealth  and  luxury  of  Great  Britain  increaie  as 
they  have  done  for  fome  time  paft,  its  price  may  very  probably 
rife  flill  higher  than  it  is  at  prefent. 

Between  that  period  in  die  progrefs  of  improvement  which 
t)rings  to  its  height  the  price  of  fo  neceflary  an  article  as  cattle, 
and  that  which  brings  to  it  the  price  of  fuch  a  fuperfluity  as 
venifon,  there  is  a  very  long  interval,  in  the  courlc  of  which  many 
other  forts  of  rude  produce  gradually  arrive  eft  their  higheft 
price,  fome  fooner  and  fome  later,  according  to  different  circum- 
flanccs. 

■  t     Thus  in  every  farm  the  offals  of  the  bam  and  (tables  will 
maintain  a  certain  number  of  poultry.     Tliefe,  as  they  ai'e  fed 

with 


THE     WEALTH     OF    NATIONS. 

with  what  would  otherwiie  be  loft,  are  a  meer  fave-all;  and  as 
they  coft  the  farmer  fcarce  any  thing,  fo  he  can  aiTord  to  fell 
them  for  very  little.  Almoil  all  that  he  gets  is  pure  gain,  and 
thdr  price  can  fcarce  be  (b  low  as  to  difcourage  him  from  feed* 
ing  this  number.  But  in  countries  ill  cultivated,  and,  therefore, 
but  thinly  inhabited,  the  poultry,  which  are  thus  raifed  without 
expence,  are  often  fully  fufHcisnt  to  fupply  the  whole  demand. 
In  this  Aate  of  things,  therefore,  they  are  often  as. cheap  as 
butcher's-meat,  or  any  other  ibrt  of  animal  food.  But  the  whole 
quantity  of  poultiy,  which  the  farm  in  this  manner  produces 
without  expence,  muft  alwiays  be  much  fmaller  than  the  whole 
quantity  of  butcher's  meat  which  is  reared  upon  itj  and  in  times 
of  wealth  and  luxury  what  is  rare,  with  only  nearly  equal  merit, 
is  always  preferred  to  what  is  common.  As  wealth  and  luxury 
increafe,  therefore,  in  confequence  of  improvement  and  culti- 
vation, the  price  of  poultry  gradually  rifes  above  that  of  butcher's 
meat,  till  at  lad  it  gets  {o  high  that  it  becomes  profitable  to  cul- 
tivate land  for  the  fake  of  feeding  them.  When  it  has  got  to 
this  height,  it  cannot  well  go  higher.  If  it  did,  more  land  would 
ibon  be  turned  to  this  purpofe.  In  ieveral  provinces  of  France, 
the  feeding  of  poultry  is  confidered  as  a  very  important  article 
in  rural  Gcconomy,  and  Aifficiently  profitable  to  encourage  the 
farmer  to  raUe  a  confiderable  quantity  of  Indian  com  and  buck 
wheat  for  this  purpofe.  A  middling  farmer  will  there  fomedmes 
have  four  hundred  fowls  in  his  yard.  The  feeding  of  poultry 
feems  Icarce  yet  to  be  generally  confidered  as  a  matter  of  fo  mucli 
importance  in  England.  They  are  certainly,  however,  dearer 
in  England  than  in  France,  as  England  receives  confiderable  fup- 
plies  from  France.  In  the  progrefs  of  improvement,  the  period 
at  which  every  particular  fort  of  animal  food  is  deareft,  muft  na- 
tural/ be  that  which  immediately  prececds  the  general  praftice 
of  cultivating  land  for  the  fake  of  raifing  it.  For  fome  time 
Vol.  I.  O  o  *  .  ^         before 


a8i 
CHAP. 

XI. 


H 


1: 


.82 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  before  this  practice  becomes  general,  the  fcarcity  muft  neceflarily* 
raife  the  price.  •  After  it  has  become  general,  new  methods  of 
fceciing  are  commonly  fallen  upon,  which  enable  the  fai'mer  to 
raife  upon  the  fame  quantity  of  ground  a  much  greatei*  quantity 
of  that  paiticalar  fort  of  animal  food.  The  plenty  not  only, 
obliges  him  to  fell  cheaper,  but  in  confequence  of  thefe  improve* 
ments  he  can  afford  to  ieU  cheaper;  for  if  he  could  not  afford 
it,  the  plenty  would  not  be  of  long  continuance.  It  has  been 
probably  in  this  manner  that  the  introdudtion  of  clover,  turnips, 
carrots,  cabbages,  6cc.  has<  contributed  to  (ink  the  common  pricQ 
of  butcher's-meat  in  the  London  market  fomewhat  below  what  ik. 
was  about  the. beginning  of  the  laft.  century. 


'vrsiji 


The  hog,  that  finds  his  food'among  ordure,  and  greedily  devours 
many  things  rejefted  by  every  other  ufeful  animal,  is,  like  poultry,, 
originally  kept  as  a  fave-all.     As  long  as  the  number  of  fuch  ani- 
mals, which  can  thus  be  reared  at  little  or  no  expence,  is  fully, 
fufficient  to  fupply  the  demand,  this  fort,  of  butcher'srmeat  comes, 
to  market  at  a  much  lower  price  than  any  other.     But  when  < 
the  demand  rifes  beyond  what  this  quantity  can. fupply,   wheni 
it  becomes  neceffary.  to  raife  food  on  purpofe  for  feeding  andi 
flattening  hogs,  in  the  fame  manner  as  for  feeding  and  faitten- 
ing  other  cattle,  the  price  neceffarily  iifes,,and  becomes  pi'opor- 
tionably  either,  higher  or  lower  than  that  of  other.  butcher's-meat«, 
according  as  the  nature  of   the  country,   and  the  ftate  of  its. 
agriculture^  happen  to  render  the  feeding  of  hogs  more  or  lefs 
expenfive  than  that  of  other  cattle.     In  France,   according  t6i 
Mr.    Bufibn,    the  price  of  pork   is   neariy  equal  to  that  of. 
beef.    In  moft  parts  of  Great  Britain  it  is  at  prefent  fomevvhat 
higher. 


r.**  ((«4«4k      i-ifJii^k  i^ 


■'■-  'J' 


Tkj^ 


THE    WEALTH    OF    NATIONS^ 


2S3 


r.E  great  rife  in  the  price  both  of  hogs  and  poultry  has  in  ^  v^^' 
Great  Britain  been  frequently  imputed  to  the  diminution  of  the 
number  of  ccltagers  and  other  fmall  occupiers  of  land ;  an  event 
which  has  in  every  part  of  Europe  been  the  immediate  fore-runner 
of  improvement  and  better  cultivation,  but  which  at  the  fame 
time  may  have  contributed  to  raife  the  price  of  thofe  aiticles,  both 
(bmewhat  iboner  and  fi>mewhat  fafter  than  it  would  otherwife  have 
rifen.  As  the  pooreft  family  can  often  maintain  a  cat  or  a  dog, 
without  any  expence,  fb  the  pooreft  occupiers  of  land  can  commonly 
maintain  a  few  poultry,  or  a  fow  and  a  few  pigs,  at  very  little.  The 
little  ofials  of  their  own  table,  their  whey,  (klmmed  milk,  and 
butter-milk,  fupply  thofe  animals  with  a  part  of  their  food,  and  they 
find  the  reft  in  the  neighbouring  fields  without  doing  any  fenfible 
damage  to  any  body.  By  diminiihing  the  number  of  thofe  fmall 
occupiers,  therefore,  the  quantity  of  this  fort  of  provifions  which 
is  thus  produced  at  little  or  no  expence,  muft  certainly  have  been 
a  good  deal  diminifhed,  and  their  price  muft  confequently  have 
been  raifed  both  fooner  and  fafter  than  it  would  otherwife  have 
rifen.  Sooner  or  later,  however,  in  the  progrefs  of  improvement, 
it  muft  at  any  rate  have  rifen  to  the  utmoft  height  to  which  it  ^s 
capable  of  rifing  5  or  to  the  price  which  pays  the  labour  and 
expence  of  cultivating  the  land  which  furniflies  them  with  food 
as  well  as  thefe  are  paid  upon  the  greater  part  of  otlier  cultivated 
land. 


■iM.I.;..u 


n: 


4n  The  bufmefs  of  the  dairy,  like  the  feeding  of  hogs  and  poultry, 
is  Originally  carried  on  as  a  fave-all.  The  cattle  neceffarily  kept 
upon  the  farm,  produce  more  milk  than  either  the  rearing  pf  thejr 
own  young,  or  the  confumption  of  tlie  farmer's  family  requires; 
and  diey  produce  moft  at  one  particular  feafon.  But  of  all  the 
productions  of  land,  milk  is  perhaps  the  moft  perifhable.  In 
the  warm  feafon,  when  it  is  moft  abundant,  it  will  fcarce  keep 

O  o  2  four 


»  1 1 


■I  ! 


iM 


5^4 


THE  NATURE  AND  CAUSES  O? 


B  O  o  K  four  and  twenty  hours.  The  fanner,  by  making  it  into  frcfh 
*u — ^-^-^  butter,  (lores  a  fmall  part  of  it  for  a  weelt.^  by  making  it  into 
fait  butter,  for  a  year :  and  by  malung  it  into  chcefe,  he  ftores 
a  much  greater  part  of  it  for  ieveral  years.  Part  of  ali  thefe  fs 
referred  for  the  ufe  of  his  own  family.  The  reft  goea  to  market, 
in  order  to  find  the  beft  price  which  is  to  be  had,  and  which  can 
(carce  be  fo  low  as  to  dilcourage  him  from  fending  thither  what^ 
ever  is  over  and  above  the  ufe  of  his  own  family.  If  it  is  very 
low,  indeed,  he  will  be  likely  to  manage  lus  dairy  in  a  very  flovenly 
and  dirty  manner,  and  will  fcarce  perhaps  think  it  worth  while 
to  have  a  particular  room  or  building  on  purpofe  for  it,  but 
will  fuffer  the  bufinefs  to  be  carried  on  amidft  the  fmoke,  filth, 
and  naftinefs  of  his  own  kitchen;  as  was  the  cafe  of  almoft 
All  the  farmers  daii'ies  in  Scotland  thirty  or  forty  years  ago,  and 
as  is  the  cafe  of  muiy  of  them  flill.  The  fame  cau&a  which 
gradually  raife  the  price  of  butcher's-meat,  the  increafe  of  the 
demand,  and,  in  confequenee  of  the  improvement  of  the  country, 
the  diminution  of  the  quantity  which  can  be  fed  at  little  or  no 
expence,  raife,  in  the  fame  manner,  that  of  the  produce  of  the 
dairy,  of  which  the  price  naturally  connects  with  that  of  butcherls- 
'  meat,  or  with  the  expence  of  feecUng  cattle.  The  increafe  of 
price  pays  for  more  labour,  care,  anud  cleanlinefs.  The  dury  be«* 
comes  more  worthy  of  the  farmer's  attention,  and  the  quality  of  its 
produce  gradually  improves.  The  price  at  laft  gets  fi>  high  that  it 
becomes  worth  while  to  employ  fbme  of  the  moft  fertile  and  beft 
cultivated  lands  in  feeding  cattle  merely  for  the  purpofe  of  the  dairy ; 
and  when  it  has  got  to  this  height,  it  cannot  well  go  higher.  If  it 
did,  more  land  would  fomtbr turned  to  this  purpofe.  It  feems  to 
have  got  to  this  height  through  the  greater  part  of  England, 
where  much  good  land  is  commonly  employed  in  this  manner. 
If  you  except  the  neighbourhood  of  a  few  confiderable  towns, 
it  feems  not  yet  to  have  got  to  tlus  height  any  where  in  Scotland, 

where 


THE    WEALTH    OF    NATIONS. 


285 


vrhere  common  farmers  feldom  employ  much  good  land  in  railing  C  HA  P. 
food  for  cattle  merely  for  the  purpoie  of  the  dairy.  The  price 
of  the  produce,  though  it  has  rifen  very  confiderably  within 
thefe  few  years,  is^  probably  ftill  too  low  to  admit  of  it.  The 
inferiority  of  the  quality,  indeed,  compared  with  that  of  the 
produce  of  Engliih  dairies,  is  fully  equal  to  that  of  the  price. 
But  this  inferiority  of  quality  is,  perhaps,  rather  the  effect  of  this 
lownefs  of  price  than  the  cauie  <^  it.  Though  the  quality  was 
much  better,  the  greater  part  of  what  is  brought  to  market 
could  not,  I  apprehend,  in  the  prefent  circumftances  of  the 
country,  be  difpofed  of  at  a  much  better  price)  and  the  prefent 
price,  it  is  probable,  would  not  pay  the  expence  of  the  land 
and  labour  neceflfary  for  producing  a  much  better  quality.  Through 
the  greater  part  of  England,  notwithftanding  tiie  fuperiority  of 
price,  the  dairy  is  not  reckoned  a  more  profitable  tmplc^ment 
of  land  than  the  raifing  of  corn,  or  the  fattening  of  cattle,  the 
two  great  objects  of  agriculture.  Through  the  greater  part  of 
Scotland,  therefore,  it  cannot  yet  be  equally  profitable. 

The  lands  of  no  country,  it  is  evident,  can  ever  be  compleatly 
cultivated  and  improved,  rill  once  the  price  of  every  produce,  which 
human  induftry  is  obliged  to  nuie  upon  them,  has  got  ib  high  a» 
to  pay  for  the  expence  of  com|deat  improvement  and  culdvarion. 
In  order  to  do  this,  the  price  of  each  particular  produce  muft  be 
fufficient,  firft,  to  pay  the  rent  of  good  com  land,  as  it  is  that 
which  regulates  the  rent  of  the  greater  part  of  other  cultivated 
land}  and,  fecondly,  to  pay  the  labour  and  expence  (^ the  farmer 
as  well  as  they  are  commonly  paid  upon  good  com  land;  or,  in 
other  words,  to  replace  with  the  ordinary  profits  the  ftock  which 
he  employs  about  it.  This  rife  in  the  price  of  each  particular 
produce,  muft  evidently  be  previous  to  the  improventent  and  culti- 
vation of  the  land  which  is  deftined  for  ruling  it.    Gain  is  the 

end 


;  i 


•m 


aB6 


THE   :NA.TUFIE>  ATJD^  CAUSES    OP 


aoOK  £nd  of  all  improvement,  and  nothing  could  deferve  that  name  of 
.which  lofs  was  to  be  the  necefiary  xonfequence.  But  io(s  muft  be 
the  neceilary  confequence  of  improlviiig  land  for  the  (ake  of  a  pro- 
duce of  <wluch  the  price  could  nevdr  bring  back  the  expence.  If 
4he  compleat  improvement  and  cultivation  of  the  country  be,  as 
it  moft  certsunly  is,  the  greateft  of  all  publick  advantages,  this  rife 
dh  the  price  of  all  thofe  di^erei^t  forts  of  rude  pitxluce,  inftead  of 
.being  confidered  as  a  publick  calamity,  ought  to  be  regarded  as 
ihe  neceliary  fore-runner  and  attendant  of  the  greateft  of  all  publick 


;advantages. 


^M  Si    <iifl3riri^^« 


.■:!.!;m<|  »:u  uns  (y^mi  "jurj-i  thum  n  p  1;)  Hli><4U<i»  ^l  xXUhukij 

^  This  rife  t6o  in  the  nominal  or  money  price  of  all  thofe  different 
'jbrts  of  rude  produce  has  been  the  effect,  not  of  any  degradation 
in  the  value  of  filver,  but  of  a  rife  in  their  real  price.  They  have 
■become  worth,  not  only  a  greater  quantity  of  Alver,  but  a  gi'eater 
-quantity  of  labour  and  fubfiftence  than  before.  As  it  cods  a 
<greater  quantity  of  labour  and  fubfiftence  to  bring  them  to  market, 
fo  when  they  are  brought  thither,  they  reprefent  or  are  equivalent 
to  a  greater  quantity. 

i5:Kw,o:>s?^iqrt^3%)3-  7;^^  ^^^^:?t  .h5^it|mi  inr  f^ii«imtu> 

,  The  third  and  laft  fort  of  rude  produce,  of  which  the  price 
jiaturally  rifes  in  the  progrefs  of  improvement,  is  that  in  which  the 
efficacy  of  human  induftry,  in  augmenting  the  quantity,  is  either 
limited  or  uncertain.  Though  the  real  price  of  this  fort  of  riide 
produce,  therefore,  naturally  tends  to  rife  in  the  progrefs  of  im- 
|n*ovement,  yet,  according  as  different  accidents  happen  to  render 
the  efforts  of  human  induftry  more  or  lefs  fuccefsful  in  augment- 
ing the  quantity,  it  may  happen  fometimes  even  to  fall,  fometimes 
to  continue  the  £ime  in  very  different  periods  of  improvement,  and 
ibmetimes  to  rife  more  or  lefs  in  the  fame  period.     :xx.-  lu  >^^ij^' 


*f4»J 


There 


THE    WEALTH    OF    NATIONS^ 


287 


There  are  fome  forts  of  rude  produce  which  nature  has  ren-  ^^A^* 
dered  a  kind  of  appenclages  to  other  foits ;  (6  that  the  quantity-  of 
the  one  which  any  country  can  afford,  is  neceflfarily  limited  by  that 
of  the  other.  The  quantity  of  wool  or  of  raw  hides,  for  example, 
which  any  country  can  afford,  is  neceflarily  limited  by  the  number 
of  great  and .  fmall  cattle  that  are  kept  in  it.  The  flate  of  its 
improvement  and  the  nature  of  its.  agriculture,,  again  neceflarily 
determine  this  number*,  "   ,-  '',/     ;         1   ', 


'*?•. 


The  fame  caufes,  which  in  the  progrels  of  improvement,  gra-*^ 
dually  r^e  the  price  of  butcher's^meat,  fhould  have  the  fame 
efie€t)  it  may  be  thought,  upon  the  prices  of  wool  and  raw  tudcs> 
and  raife  them  too  nearly  in  the  fame  proportion.  It  probably 
would  be  fo,  if  iii  the  rude  be^nnings  of  improvement  the  market 
fbr  the  latter  commodities  was  confined  within  as  narrow  bounds  as 
that  for  the  former.  But  the  extent,  of  their  refpedive. markets  i»> 
commonly  extreamly  different;,    jjtj  D;n:';  "  ,r;,r  /t-.v 


at    iiiiii    iwjjr- Bii4  i 


'■i'<>t-. 


The  market  for  butcher's-meat  is  alinoft  every  where  confined' 
to  the  country  which  produces  it.  Ireland,  and  feme  part  of ' 
Britifh  America  indeed,  carry  on  a  confiderable  trad^  in  fah  pro^ 
vifibns;  but  they  are,  I  believe,  tKe  only  countries  in  the  com- 
mercial world  which  do  (6,  or  which  export  to  other  countries  anj. 
eonliderable  part  of  their  butcher's-meat.         , ,     >„....       '        -^ 

The  market  for  wool  and  raw  hides,  on  the  contrary,  is  in: 
the  rude  beginnings  of  improvement  very  feldom  confined  to  the- 
country.  which  produces  thenu  They  can  eafUy  be  tranfported  tO' 
diftant  countries,  wool  without  any  preparation, ,  and  raw  hide»' 
with  very  little;  and  as  they  are  the  materials  of  many  manufac* 
tures,  the  induftry  of  other  countries  may  occafion  a  demand  for 

A.  '       thiem*. 


Ill 


«88 


THE    NATURE    AND    CAUSES    OF 


B  OjO  K  thein,  though  that  of  the  country  which  produces  them  might 
not  occafion  Any, 


Iir  countries  iU  cultivated,  and  therefore  but  thinly  tnhabited, 
the  price  of  Ihe  wool  and  the  hide  bears  always  a  much  greater 
proportion  to  that  of  the  whole  beaft,  than  in  countries  where, 
ifnprovement  and  population  being  further  advanced,  there  is  more 
demand  for  butcher's-meat.  Mr.  Hume  obferves,  that  in  the 
Saxon  times,  the  fleece  was  eftimated  at  two-fifths  of  the  value 
of  the  whole  flieep,  and  that  this  was  much  above  the  proportion 
of  its  preient  eftimation.  In  fome  provinces  of  Spain,  I  have 
|>een  aflured,  the  flieep  b  frequently  killed  merely  for  the  (ake  of 
the  fleece  and  the  tallow.  The  carcafe  is  often  left  lo  rot  upon 
the  ground,  or  tp  be  devoured  by  beafts  and  birds  of  prey.  If 
thu  fometimes  happens  even  in  Spaiii,  it  happens  almoft  conftantly 
in  Chili,  at  Buenos  Ayres,  and  in  many  other  parts  of  Spanifh 
America,  where  the  homed  cattle  are  almoft  conftantly  killed 
merely  for  the  fake  of  the  hide  and  the  tallow.  This  too  ufed  to 
happen  ahnoft  conftantly  in  Hifpaniola,  while  it  was  infefted  by 
the  Buccaneers,  and  before  the  fettlement,  improvement  and  popu- 
loufiiefs  of  the  French  plantations  (which  now  extend  round  the 
coaft  of  almoft  the  whole  weftern  half  of  the  ifland)  had  given 
ibme  value  to  the  cattle  of  the  Spaniards,  who  ftill  continue  to 
poiTefs,  not  only  the  eaftem  part  of  the  coaft,  but  the  whole  inland 
and  mountainous  part  of  the  country. 


'■>•■•'■ 


Though  in  the  progrefs  of  improvement  and  population,  the 
price  of  the  whole  beaft  neceflarily  rifes,  yet  the  price  of  the  carcafe 
is  likely  to,  be  niuch  more  aftefled  by  this  rife  than  that  of  the 
wool  and  the  hide.  The  market  for  the,  carcafe,  being  in  the  rude 
ft^ate  of  fociety  confined  always  to  the  country  which  produces  it, 
muft  neceflarily  be  extended  in  proportion  to  the  improvement 
f  *~  V  and 


THE    WEALTH    OP    NATIONS. 

and  population  of  that  country.  But  the  market  for  the  wool  and 
the  hides  even  of  a  barbarous  country  often  extending  to  the  whole 
commercial  world,  it  can  very  feldom  be  enlarged  in  the  fame 
proportion.  The  ftate  of  the  whole  commercial  world  can  (eldom 
be  much  aife£ted  by  the  improvement  of  any  particular  country  { 
and  the  market  for  fuch  commodities  may  remain  the  fame  or  very 
nearly  the  Came,  after  fuch  improvements,  as  before.  It  fliould 
however  in  the  natural  courfe  of  things  rather  upon  the  whole  be 
fomewhat  extended  in  coniequence  of  them.  If  the  manufafhiret^ 
elpecially,  of  which  thofe  commodities  are  the  materials,  (hould 
ever  come  to  flouiifli  in  the  country,  the  market,  though  it  might 
not  be  much  enlarged,  would  at  leaft  be  brought  much  nearer  to 
the  place  of  growth  than  before  j  and  the  price  of  thofe  materials 
might  at  leaft  be  increafed  by  what  had  ufually  been  the  expence 
of  tranfporting  them  to  diftant  countries.  Though  it  might  not 
rife  therefore  in  the  fame  proportion  as  that  of  butcher's-meat.  it 
ought  naturally  to  rife  fomewhat,  and  it  ought  certainly  not  to 
fall. 

In  England,  however,  notwlthftanding  the  flourKhing  ftate  of 
its  woollen  manufacture,  the  price  of  Englilh  wool  has  fallen  very 
confiderably  fince  the  time  of  Edward  III.  There  are  many 
authentick  records  which  demonftrate  that  during  the  reign  of  that 
prince  (towards  the  middle  of  the  fourteenth  century,  or  about 
1339)  ^^^^  ^^'  reckoned  the  moderate  and  reafonable  price  of  the 
tod  or  twenty-eight  pounds  of  Englilh  wool  was  not  lefs  than  ten 
(hillings  of  the  money  of  thofe  times  *,  containing,  at  the  rate  of 
twenty-pence  the  ounce,  fix  ounces  of  filver  Tower-weight,  equal 
to  about  thirty  fliillings  of  our  prefent  money.  In  the  prefent 
times,  one  and  twenty  (hillings  the  tod  may  be  reckoned  a  good 

Vol.  I.  P  p  price 

*  Sec  Smith's  Memoirs  of  WooU 


809 


CHAP. 
XI. 


2^6 


rriE    NATURE    AND     CAUSES    0# 


BOOIi:  price  for  very  good  Englifli  wooU  The  money-price  of  woo!, 
therefore,  ii*i  the  time  of  Edward  III,  was  to  its  money-prict  id  the 
prefent  timte  m  ten  to  k^en.  The  fuperiority  of  its  rciJ  price  was 
(till  groator.  At  the  rate  of  itx  fhiiiings  and  e^ht^pence  the  quar-i. 
ter,  ten  {hilliiig:s  was  in  thofe  ancient  times  the  price  of  twelve 
bnfliels  of  whbat.  At  tiie  rate  of  twenty-eight  (hillings  the  quarter, 
mt  and  twenty  (hiUingB  is  in  the  prefent  tinws  the  price  df  fix 
Ijuflicb  only.  The  proportion  between  tlic  real  prices  of  ancient 
And  modern  times,  thei-cfcM'ft,  is  as  twelve  to  ilx,  or  as  two  to  one. 
In  thofe  ancient  thnes  a  tod  of  wool  would  have  purchafed  twice 
th«  quantity  oiffubliftence  >A^hich  it  will  pOTchafe  at  prefent  $  and 
«6nleqttentty  tMvite  the  quantity  of  labour,  if  the  real  recompence 
4>f  labour  htA  b«en  the  fame  in  both  periods. 


■  This  degradation  both  in  the  real  and  nominal  value  of  wool 
could  never  have  happened  in  confequence  of  the  natural  courfe  of 
tilings.  It  has  accordingly  been  the  cfFeft  of  violence  and  artifice : 
Firft,  of  the  abfolute  prohibition  of  exporting  wool  from  Eng- 
land i  Secondly,  of  the  permilTion  of  importing  it  from  all  othe^* 
countries  duty  free  j  Thirdly,  of  the  prohibition  of  exporting  it 
from  Ireland  to  any  other  country  but  England.  In  confequence 
of  thcfe  regulations, ,  the  market  for  Englifh  wool,  inftead  of 
"being  fomewhat  extended  in  confequence  of  the  improvement  of 
England,  has  been  confined  to  the  home  market,  where  the  wool 
of  all  other  countries  is  allowed  to  come  into  competition  with 
it,  and  where  that  of  Ireland  is  forced  into  competition  with  it. 
As  the  woollen  tnanufadures  too  of  Ireland  are  fully  as  much  dis- 
couraged as  is  confiftent  witli  juftice  and  fair  dealing,  the  Irifli 
can  work  up  but  a  fmall  part  of  their  own  wool  at  home,  and 
are,  therefore,  obliged  to  fend  a  greater  proportion  of  it  to  Great 
Britain,  the  only  market  they  are  allowed. 

*  I    HAVE 


THE    WEALTH    OF    NATIONS. 


#91 


I  HAVE  not  been  able  to  find  any  fucli  authentick  records  con- 
cerning tlie  |)rice  of  raw  hides  in  ancient  times.  Wool  was  com« 
monly  paid  as  a  fubfidy  to  the  king,  and  its  valuatiui\  in  that  fubfidy 
afcertains,  at  leaft  in  Tome  degree,  what  was  its  ordinary  price. 
But  this  Teems  not  to  have  been  the  cafe  with  raw  hides.  Fleet- 
wood, however,  from  an  account  in  1425,  between  the  prigr  of 
Burcefler  Oxford  and  one  of  his  canons,  gives  us  their  price,  at 
leafl:  as  it  was  dated,  upon  that  paiticular  occafion  :  vi;.  five  oy 
hides  at  twelve  (hillings  1  five  cow  hides  at  feven  fliillings  and 
three-pence  j  thirty-fix  (lieeps  (kins  of  two  yeavs  pid  at  nine  (hil- 
lings} fixteen  calves  (kins  at  two  fliillings.  h\  1435,  twelve  (hil- 
lings contained  about  the  fame  quantity  of  filver  as  four  and  twenty 
fliillings  of  our  prefait  money.  An  ox  hide,  tberpfpre,  was  in 
this  account  valued  at  the  fame  quantity  q{  fUver  as  4s.  -^th? 
of  our  prefent  money.  Its  nominal  price  was  a  good  deal  lower 
than  at  prefent.  But  at  the  rate  of  fix  (hillings  and  eight- pence 
the  quarter,  twelve  fliillings  would  in  tfeofe  tjmes  bsve  purchsfe^ 
fourteen  bu(hels  and  four-fifths  of  a  buftiel  pf  wheat,  wliidj,  pt 
three  and  fix-pence  the  bulhel,  would  in  the  prefent  times  cofl: 
5 IS.  4d.  An  ox  hide,  tiierefqre,  would  in  thofe  timps  Ji^vp 
purchafed  as  much  corn  as  ten  lluUings  and  three-pence  wo\ild 
purchafe  at  prefent.  It;B  real  value  was  ^qu^l  to  ten  fliillings 
and  three-pence  of  our  prefent  money.  In  thofe  ancient  tiiT^es, 
when  the  cattle  were  hajf  ftarved  during  the  greater  p^rt  g(  tke 
winter,  we  cannot  fqpjiofj  that  they  were  qf  a  very  l^vge  f^zie.  /^\\ 
ox  liide  which  ^^•ci^hs  foyr  (loi^c  of  fixteen  poui>ds  av.erdupQis,  is 
not  in  the  preilnj  times  r^korued  a.  bad  one ;  apd  in  thpfe  iancie«t 
times  would  probah'y  have  been  reckoned  a  very  §;oo4  one.  But 
at  half  a  crown  the  (tone,  which  at  this  moment  (Febri^a^y,  1773) 
I  underftand  to  be  the  co^imon  price,  fugl)  fi  hide  would  at  prp&Dt 
cofl:  only  ten  fliillings.  Thoy^h  its  nominj^l  price,  tlief-jefpre,  js 
higher  in  ihfi  j)fej(si)jt  tlj^n  \t  was  in  ^hj^fe  ^n^ieflt  timps,  its  real 

P  p  2  price. 


CHAP. 

XI. 


if 


I 


BOflK 


Ttft'^NU'T^R^^^AND    CAflfSES    OF 

price,  the  real  ^ttthrtty  of  fobfiftcnte  which  it  wiU  purthdb  or 
command,  is  rather  fomcwhat  lower.  The  price  of  cow  hides  at 
ftated  in  the  above  account,  is  nearly  in  the  common  proportion  to 
that  of  ox  hidesi  That  of  (heep  fltins  is  a  good  deal  above  itj 
They  had  probably  been  fold  with  the  wool.  That  of  calves  Ikint j 
on  the  contrary,  is  greatly  below  it.  In  countries  where  the 
price  of  cattle  is  very  low,  the  calves,  which  are  not  intended  to  be 
reared  in  order  to  keep  up  the  ftock,  are  generally  killed  very 
young  J  as  was  the  cafe  in  Scotland  twenty  or  thirty  years  ago* 
It  ftvts  the  milk,  which  their  price  would  not  pay  for.  Their  (kins, 
therefore,  are  commonly  good  for  little. 

iThE   pHcii  of  raw  hides    is  a  good  deal  lower   at  prefcht 
than  it  was  a  few  years  ago  >  owing  probably  to  the  taking  off 
the  duty  upon  Teal  Ikins,  and  to  the  allowing,  for  a  limited  time, 
the  importation  of  raw  hides  from  Ireland  and  from  the  plantations 
duty  free,  which  was  done  in  1769.     Take  the  whole  of  the 
prefent  century  at  an  average,  their  real  price  has  probably, been 
fomewhat  higher  than  it  was  in  thofe .  ancient  times.    The  nature 
of  th^  commodity  renders  it  not  quite  Co  proper  for  being  tran- 
Iported  to  diftant  markets  as  wool.    It  fuffers  more  by  keeping. 
A  falted  hide  is  reckoned  inferior  to  a  frelh  one,  and  fells  for  a 
lower  price.    This  circumftance  muQ;  neceffarily  have  fome  ten- 
dency to  fink  the  price  of  raw  hides  produced  in  a  country  which 
does  not  manufacture  them,  but  is  obliged  to  export  them ;  and 
comparatively  to  raife  that  of.  thofe  produced  in  a  countsy  which 
does  ii\anufa£lure  them*    It.muft  have  fome  tendency  to  fink  their 
price  in  a  barbarous,  and  to,  raife  it  in  Uii  ini^>rcved  and  manu- 
fa6luring  country.    It  muft  have  had  fc.v ,  *-..;v„y  therbiure  to. 
fink  it  in  ancient,  and  to  raife  it  in  modern  times.    Our  tanners  . 
befides  have  not  been  quite  (o  fuccefsful  as  our  clothiers  in  con- 
vincing the  wifilom  of  the  nation  that  the  fafiety  of  the  common- 
wealth , 


THE    W/aAL«H    OF    NATIONS. 


991 


wealth  depends  upon  thcfprofpechy  of  their  partiqular  manufafUkm.  <^HA?, 
They  have  acconl  ngly  becw  m**«h  ki'a  favoured.  The  cx|^it»tMn 
of  raw  hides  has,  indeed,  baen  pijUibitod,  and  declared  a  nui- 
fanee;  but  tluu*  impoitati  u  from  foreign  countries  has  been 
iiibjeded  to  a  duty;  mul  though  this  dury  has  been  t»ken  off  from 
Ihofec^  Ireland  and  thu  plantations  (Tor  ihc  limited  time  of  fiva 
years  only)  yet  Ireland  has  not  been  confined  to  the  market  oS 
Gieat  Britain  for  the  fale  of  its  furplu^  hides,  o;  of  thofc  which  arc 
not  manufa£lured  at  home.  The  hides  of  co«nraon  cattle  hav« 
but  within  thefe  few  years  been  put. among  the  enumerated  common 
dities  which  the  plantations  can  fend  nowhere  but  to  the  mother 
country;  neither  has  the  commerce  of  Ireland  been  in  this  <  afo 
opprelTcd  hitlierto  ia  ordpr  to  fupport  the  oaanufaftures  of.  deal 

,i»mc*  l)')tiM''T   ,    ..  ■■     ■..'     ^'^      •'■   '•  'd  f  f'  '"    ...  ■        '  * 

"WHATEVER  regulations  tend  to  <ink  the  price  either  of  wool 
or  of  raw  hides  below  what-  it  naturally  would  be,  muft,  in  an 
thiproved  and  cultivated  country,  have  fome  tendency  to  rai/e  thi 
price  of  batcher's  meat.  The  price  both  of  the  great  and  fmall 
cattle,  which  are  fed  on  improved  and  cultivated  land,  mull  be 
ioffident  to  pay  the  rent  which  the  landlord,  an^^  the  profit  which 
tiie  farmer  has  reafbn  to  expeA  from  improved  and  cultivated . 
lahd.  If  it  is  not,  they  will  foon  ceafe  to  feed  Jiem.  Whatever 
part  of  this  price,  therefore,  is  not  paid  by  the  wool  and  the  hide, 
muft  be  paid  by  the  carcafe.  The  lefs  there  is  paid  for  the  one, 
the  more  muft  be  paid  for  the  other.  In  what  manner  this  price 
is  to  be  divided  upon  .the  different  parts  of  the  beaft,  is  indifferent 
to  the  landlords  and  farmers,  provided  it  is  all  paid  to  them.  In 
an  improved  and  cultivated  country,  therefore,  their  intereft  as 
landlords  and  farmers  cannot  be  much  affected  by  fuch' regula- 
tions, though  their  intereft  as  confumers  may,  by  the  rife  in  the 
price  of  provifions.  It  would  be  quite  otlierwife,  however,  in  an 
4,  unimproved; 


i 


n 


i()i 


THfi     ^TAttiRfi    AKD    CAUSES    OF 


BOOK  unimproved  and  uncultivated  country,  where  the  greater  part  of 
the  lands  could  be  applied  to  no  other  purpofe  but  the  feeding  of 
cattle,  and  where  the  wool  and  the  hide  made  the  principal  part  of 
the  value  of  thofe  cattle.  Their  intereft  as  landlords  and  farmers 
would  in  this  cafe  be  very  deeply  afFeftcd  by  fuch  regulations,  and 
their  intereft  as  confumers  very  little.  The  fall  in  the  price  of  the 
wool  and  the  hide,  would  not  in  this  cafe  raifc  the  price  of  the 
carcafe ;  becaufe  the  greater  part  of  the  lands  of  the  country  being 
applicable  to  no  other  purpofe  but  the  feeding  of  cattle,  the  fame 
number  would  ftiP  continue  to  be  fed.  The  fame  quantity  of 
butcher's-meat  would  ftill  come  to  market.  The  demand  for  it 
would  be  no  greater  than  before.  Its  price,  therefore,  would  be 
the  fame  as  before.  The  whole  price  of  cattle  would  fall,  and 
along  with  it  both  the  rent  and  the  profit  of  all  thofe  lands  of  which 
cattle  was  the  principal  produce,  that  is,  of  the  greater  part  of  the 
lands  of  the  country.  The  perpetual  prohibition  of  the  exportation 
of  wool  which  is  commonly,  but  very  falfely,  afcribec'  i.:  Edward 
III,  would,  in  the  then  circumftances  of  the  country,  have  been 
the  mod  deftruftive  regulation  which  could  well  have  been  thought 
of.  It  would  not  only  have  reduced  the  aftual  value  of  the  greater 
part  of  the  lands  of  the  kingdom,  but  by  reducing  the  price  of  the 
moft  important  fpecies  of  fmall  cattle,  it  would  have  retarded  very 
much  its  fubfequent  improvement.  ,  ,^  ,       ,,, 


\i  j> 


The  wool  of  Scotland  fell  very  conitderaWy  in  its  price  in  con- 
fcquence  of  the  union  with  England,  by  which  it  was  excluded  from 
the  great  market  of  Europe,  and  confined  to  the  narrow  one  &i 
Great  Britain.  The  value  of  the  greater  part  of  the  lands  in  tiie 
fouthern  counties  of  Scotland,  which  are  chiefly  a  flieep  country, 
would  have  been  very  deeply  affe6ted  by  this  event,  had  not  the 
rife  in  the  price  of  butcher's-meat  fully  compenfated  the  fall  in  the 
price  of  wool.  . .  ,  ,    ,. 

-      7  ,.  As 


THE    WEALTH     OF    NATIONS. 


«95 


A*  the  efficacy  of  human  induftry,  in  incrcafing  the  quantity  C HA P, 
either  of  woo!  or  of  raw  hides,  is  limited,  kt  far  as  it  depends  upon 
the  produce  of  the  country  where  it  is  exerted  j  fo  it  is  uncertain  fo 
far  as  it  d^ends  upon  the  produce  of  other  countries.  It  fo  far 
depends,  not  fo  much  upon  the  quantity  which  .they  produce,  as 
upon  that  which  they  do  not  manufadlure  i  and  upon  the  reftraints 
which  they  may  or  may  not  think  pwoper  to  impofe  upon  the  ex- 
portation of  this  fort  of  rude  produce.  Thefe  circumftances,  as 
they  are  altogether  independent  of  domeftick  induftry,  fo  they 
neceffarily  render  the  efficacy  of  its  efforts  more  or  lefs  uncertain. 
In  multiplying  this  fort  of  rude  produce,  therefore,  the  efficacy  of 
human  induftry  is  not  only  limited,  but  uncertain. 

i-i  -J'-      ... 

In  multiplying  another  very  important  fort  of  nkle  produce, 
the  quantity  of  filh  that  is  brought  to  market,  it  is  likewife  both 
limited  and  uncertain.  It  is  fimitcd  by  the  local  fituation  of  the 
country,  by  tlie  proximity  or  <liftance  of  its  different  provinces 
from  the  fea,  by  the  number  of  its  lakes  and  rivers,  and  by  what 
may  be  called  the  fertility  or  barrennefs  of  thofe  feas,  lakes  and 
aivers,  as  to  this  fort  of  rude  produce.  As  population  increafes,  as 
the  annual  produce  of  the  land  and  labour  of  the  country  grows 
greater  and  grcc^ter,  there  come  to  be  more  buyere  of  fifti,  and 
thofe  buyers  too  have  a  greater  quantity  and  variety  of  other  goods, 
or,  what  is  the  fame  thing,  the  price  of  a  greater  quantity  and 
variety  of  other  goods,  to  buy  with.  But  it  will  generally  be  im- 
poffibk  to  fupply  tlKe  great  and  extended  market  without  employing  a 
quantity  of  labour  greater  than  in  proportion  to  what  had  been  re- 
quilite  for  fupplying  the  narrow  and  confined  one.  A  market  which, 
from  requiring  only  one  thoufand,  comes  to  require  annually  ten 
thoufand  tun  of  filh,  can  feldom  be  fupplied  without  employing 
more  than  ten  times  the  quantity  of  labour  wliich  had  before  been 
fufficient  to  fupply  it.     The  fifli  muft  generally  be  .fought  for  at  a 

greater 


*.: 


H 


9^ 


THE    NA'ftJRV  AND    CAUSES    dl? 


^Jt^r.^' 


^  0<0  K  greater  (tiftance,  larger  veflrls  muft  be  employed,  and  more  ex- 
{>enfive  maddnery  of  every  kind  made  ufe  of.  The  real  price 
of  this  commoifity,  therefore,  naturally  rifes  in  the  progrefs  of 
improvement.  It  has  accordingly  done  fo,  I  believe,  more  or  Ida 
id  every  country. 

Though  the  fuccefs  of  a  particular  day's  fidiing  may  be  a  very 
tincertain  matter,  yet,  the  local  (ituation  of  the  country  being 
fuppofed,  the  general  efficacy  of  induftry  in  bringing  a  certain 
quantity  of  fi(h  to  market,  taking  the  courfe  of  a  yeai',  or  of 
feveral  years  together,  it  may  perhaps  be  thought,  is  certain 
enough ;  and  it,  no  doubt,  is  fo.  As  it  depends  more,  however. 
Upon  the  local  fituation  of  the  country,  than  upon  the  ftate  of 
its  wealth  and  induftry ;  as  upon  this  account  it  may  in  different 
countries  be  the  fame  in  very  different  periods  of  improvement, 
and  very  different  in  the  fame  period;  its  connexion  with  the  ftate 
of  improvement  is  uncertain,  and  it  is  of  this  fort  of  uncertainty 
that  I  am  here  fpeaking.  ,  . u  m.  .:ti 


In  increafingthe  quantity  of  the  different  minerals  and  metals 
which  are  drawn  from  the  bowels  of  the  earth,  that  of  the  more 
precious  ones  particularly,  the  efficacy  of  human  induftry  feems 
not  to  be  limited,  but  to  be  altogether  uncertain. 

■  The  quantity  of  the  pivcious  metals  which  is  to  be  found  in 
any  country  is  not  limited  by  any  thing  in  its  local  fituation,  fuch 
AS  the  fertility  or  barrennefs  of  its  own  mines.  Thofe  metals 
frequently  abound  in  countries  which  poflefs  no  mines.  Their 
quantity  in  every  particular  country  feems  to  depend  upon  two  dif- 
ferent circumftancesj  firft,  upon  its  power  of  purchafing,  upon  the 
ftate  of  its  induftry,  upon  the  annual  produce  of  its  land  and  la- 
bour, in  confequence  of  which  it  can  afford  to  employ  a  greater 

or 


.t^ 


THE    WEALTH    OF    NATIONS. 

or  a  fmaller  quantity  of  labour  and  fubfiftence  in  brin^g  or 
ptnrchafing  fuch  fuperfluities  as  gold  and  filver*  dther  from  its  owi^ 
mines  or  from  thoTe  of  other  countries^  and,  fecondly,  upon  the 
|e^'4ityi^.r  w  barrennefs  of  the  mines  which  may  happen  at  any 
putieular  time  to  fupply  the  commercial  world  with  thofsmetids. 
The  quantity  of  thofe  metals  in  the  countries  mofl:  remote  from 
the  mines,  mufl:  be  more  or  lefs  affedled  by  this  fertility  or  barren- 
nefs, on  account  of  the  eafy  and  cheap  tr^fportation  of  thofe 
metals,^  of  their  fmall  bulk  and  great  value.  Their,  quantity  in 
China  and  Indoftan  muft  have  been  more  or  lefs  affei^led  by  the 
abundance  of  the  mines  of  America.  ^^-jij^j^i  >  -^ 

.^  So  far  as  their  quantity  in  any  particular  country  depends  upon 
ike  ibuner  of  thofe  two  circumftances  (the  power  of  purchafing) 
thdr  real  price,  fike  that  of  all  other  luxuries  and  fuperfluities,  is 
likely  to  rife  with  the  wealth  and  improvement  of  the  country,  and 
to  fall  with  its  poverty  and  depreflion.  Countries  which  have  a 
great  quantity  of  labour  and  fubfiftence  to  (pare,  can  afford  to 
purchafe  any  particular  quantity  of  thofe  metals  at  the  expence  of 
a  greater  quantity  of  labour  and  fubfiftence,  than  countries  which 
have  left  to  (pare.  ^s?. 

^M,l.;  H.',  ^  -  '  ;;-':'f...f;i.  ii;;.:-   .         -    ,      .   .:^-^^.uav'- 

T  So  far  as  their  quantity  in  any  particular  country  depends  upon 
the  latter  of  thofe  two  circumftances  (the  fertility  or  barrennefs  of 
the  mines  which  happen  to  fupply  the  commercial  world)  their 
real  price,  the  real  quantity  of  labour  and  fubfiftence  which  they 
will  purchafe  or  exchange  for,  will,  no  doubt,  fink  more  or  lefs 
ill  proportion  to  the  feitility,  and  rife  in  proportion  to  the  barreri^ 
ncfs  of  thofe  mines.  v*    * 


«97 


'J 


"^  The  fertility  or  barrennefs  of  the  mines,  however,  which  may 

happen  at  any  particular  time  to  fupply  the  commercial  world, 

Vol.  I.  Q^q  i« 


Tl4^?^  ^ATf^K^W  A^t>'eMmtS  'XSfp 


BOOK  is  a  d«(imftdncc  wMch/it  Is  evk»6nt,  may  have  no ibn^f^ytmi- 
ne&'ion  with  the  ftate  of  induftry  in  a  particular,  countiy.  Itktm^ 
even  to  have  no  very  neccffaiy  conneftion  v(rith  that  of  the  world 
in  general.  As  arts  and  commerce,  indeed,  graduaUy  fpraad 
themfclves  over  a  greater  and  a  greater  part  of  the  earth,  the  fdarch 
for  new  mines,  being  extended  over  a  wider  furface,  may  have 
fomewhat  a  better  chance  for  being  fuccefsful,  than  when  confined 
within  narrower  bounds.  The  difcovery  of  new  mines,  however, 
as  the  old  ones  come  to  be  gri^ually  exhaufted,  is  a  matter  of  the 
greateft  uncertainty,  and  fuch  as  no  human  fkiil  or  induftry  can 
enfure.  All  indications,  it  is  acknowledged,  are  doubtful,  and. 
the  a£lual  difcovery  and  fuccefsful  working  of  a  new  mine  can 
alone  afcertain  the  reality  of  its  value,  or  even  of  itsexiftence.  In 
this  fearch  there  f^m  to  be  no  certain  limits  either  to  the  poilible 
fuccefs,  or  to  the  poflible  dilappointment  of  human  induftry.  In  the 
courfe  of  a  century  or  two,  it  is  poffible  that  new  mines  may  be 
difcovered  more  fertile  than  any  that  have  ever  yet  been  known; 
and  it  is  juft  equally  poflible  that  the  moft  fertile  mine  then  known, 
may  be  more  barren  than  any  that  was  wrought  before  the  dif- 
covery of  the  mines  of  America.  Whether  the  one  or  the  other 
of  thofe  two  events  may  happen  to  take  place,  is  of  very  little  im- 
portance to  the  real  wealth  and  profpeiity  of  the  world,  to  the 
real  value  pf  the  annual  produce  of  the  land  and  labour, of  9)an- 
kind.  Itfr  nominal  value,  the  quantity  of  goki  and  filver  by  .which 
this  annual  produce  could  be  expref&d  or  reprefented,  would,  no. 
doubt,  be  very  different ;  but  its  real  value,  the  real  quantity  of 
labour  which  it  could  purchafe  or  command,  would  he  prfcife^y 
the  fame.  A  ftiilling  might  in  the  one  cafe  reprefent  no  more  la- 
bour than  a  penny  does  at  prefent;  and  a  penny  in  the  other  might 
reprefent  as  much  as  a  ftiilling  does  now.  But  in  the  one  cafe 
he  who  had  a  ftiilling  in  his  pocket,  would  be  no  richer  than  he 
who  has  a  penny  at  prefent;  and  in  the  other  he  who  had  a  penny 

would 


ITHB'  WJBALarMA  OTr,  NlA\T10N8r 


*99 


would  'hfriiuft  as  rich  as  he  whoihais  a  (hilling  now.    The-fthe^eik  OH  A  P. 
and  abundance  of  gold  and  filver  plate«  would  be  the  fole  advantage 
which  the  world  could  derWe  from  the  one  event,  and  the  dear- 
mfiifind  feaority  of  thofe  trifling  fuperfiuities  the  only  inconvenif^cy 
itOQuld  ftiffer  from  the  other.     ,;ai:e  r  bffi?  i^lssw^  p.  d  w  ?ov)'i>iri)(U 


.■>■>!  rti    w'^f      '• 


CoBclufion  of  the  Dtgrejion  concermng  the  Vartattons  tn  the  Value 

a  K     .    .  of  Stiver, 

3n>io  ••.'t)-MBrtV'fc-'t»f,i)'?-TiOjKiix:»  v^HRubiJi-u  od  01  ami:')  83n<>  bk»  ariJf 


flF, 


IThe  greater  part  of  the  writers  who  have  coUefted  the  money 
prices  of  things  in  antient  times,  feem  to  have  confidered  the 
low  money  price  of  corn,  and  of  goods  in  general,  or,  in  other 
vifj^rds,  the  high  value  of  gold  and  filver,  as  a  proof,  not  only  of 
tl)^  icp'city  of  thofe  metals,  but  of  the  poverty  and  barbarifm  of 
the  country  at  the  time  when  it  took  place.  This  notion  is  con- 
ne6ted  with  the  fyflem  of  political  oeconomy  which  reprefents  na- 
tional wealth  as  confifting  in  the  abundance,  and  national  poverty 
in  the  ifcarcity  of  gold  and  filver;  a  fyftem  which  I  (hall  endeavour 
to  explain  and  examine  at  great  length  in  the  fourth  book  of  this 
enquiry..  I  fhall  only  obferve  at  prefent,  that  the  high  value  of  the 
precious  metals  can  be  no  proof  of  the  poveity  or  barbarifm  of 
any  particular  country  at  the  time  when  it  took  place.  It  is  a 
pi'oof  only  of  tlie  barrennefs  of  the  uilnes  which  happened  at  that 
time  to  fupply  the  commercial  world.  A  poor  country,  as  it 
cannot  afford  to  buy  more,  fo  it  can  as  little  afford  to  pay  dearer 
for  gold  and  filver  than  a  rich  one  j  and  the  value  of  thofe  metals, 
therefore,  is  not  likely  to  be  liigher  in  tlie  former  than  in  the 
latter.  In  China,  a  country  much  richer  than  any  part  of  Eu- 
rope, the  value  of  the  precious  metals  is  much  liiglicr  than  in  any 
part  of  Europe.  As  the  wealth  of  Europe,  indeed,  has  increafed 
greatly  fince  the  difcovery  of  the  mines  of  America,  fb  the  value 
^  .-V  •-  ;*.  '"-■■■'-       CLq  2"  '-       .  ^  .  .. .  of 


il 


:M 


i) 


m 


J«e 


'rir^tfTAttJiasP  Anmi4catzrsEa.Hap 


#^^  t^  of  gd!d' ftn^^fil^  H«a<-^radi!ially  dimNiiaibdLT'Thui^  4&naniitk>ir  o^ 
tlieirvatue^  howtv^r,  has  not  been  owing  to  the.  iia«reaieio£ilibe 
«<ea)- weakh i  of  '£iiro])c;  «f  the  annual)  pk'odueeiof i  dls  ilanak  andJat* 
4«^',  4)ut  to  Jtl^  tecidentaft  (^(covei^  of  morr  d>cwidaiit  minnpthan 
m^y  that  were  known  before.     The  increafe  of  thequantitijr  dfjgold 
and  filver  in  Europe,  and  the  increafe  of  its  manufaflures  and  agri- 
culture»  are  two  events  which^  though  they  have  happened  nearly 
about  the  fame  time,  yet  have  arUen  from  very  dijSerent  caufes, 
and  have  icarce  any  natural  connection  with  one  ano^ier.    The 
one.has  arifen  from  a  mere  accident,  in  wliich.  neither  prudence 
nor  policy  either  had  or  could  have  any  fhare ;    The  other  from 
the  fall  of  the  feudal  fyAem,  and  from  the  eftablilhment  of  a 
government  which  afforded  to  induftry,  the  only  encouragement 
which  it  requires,  fome  tolerablie  fecunty  that  it  fhall  enjoy  the 
fruits  of  its  own  labour.     Poland,  where  the  feudal  iyftem  ftill 
continues  to  take  place,  is  at  tiiis  day  as  beggarly  a  country  as  it 
.was  before  the  difcovery  of  America..    The  mcmey  price  of  coin, 
however,  has  rifen;,  the  real  vahie  of  the  precious  metals  h^s  fjillbn 
Ui  Poliand,  in  the  fame  manner  as  in  other  parts  of  Europe.    Their 
'quantity,  therefore,  muft  have  increafed  there  as  in  other  plac^;,. 
ai\d  nearly  in  the  fame  proportion  to  the  annual  produce  of  its 
iund  ^nd .  liabour.     This  increafe  of  the  quantity  of  thofe  metals, 
howeve!f,jh^s  not,  it  feems»  increafed  that  annual  produce,., has 
neither  improvea  the  manufa<6tures  and  agriculture  of  the  coyptry, 
hbr  mended  the  circumftances  of  its  inhabitants.     Spain  and  Por- 
tugal, tlie  countries  which  poflefs  the  mines,  are,  after  Poland; 
perHaJ)s,  tJ^e  two  moft  beggarly  countries  in  Europe.  ,  X^c  value 
of*  the  precious  metals,    however,    mull  be  lower  in  Spain  and 
'Portugal  than  iri  any  Other  part  of  Europe^  as  they  come  from 
thofe  countries  to  all  other  parts  of  Europe,  loaded,  not  only  with 
a  freight  and  an  infurance,  but  with  the  expence  of  fmuggling, 
their  exportation  being^ either  prohibited^  or  fubjefted  to  a  duty.  In 

■   *  proportion 


'TDnmmE^urxi/^.  obi  W'ATricwfiSr 

^opoiAiairitiititliffrinnUalfj^rodudc  vof  ;:th«  land  itiuiklaMj(r>!)t^nr« 
fouie;' than  quantity  mufti  bagrfftter  mihxify  counkriea  than  in  my 
ethdrnpait'Cif  Europe:  iThofei  countries.  Jboweyer*  Qve  poorer  than 
dicijgitatar  part  «f£un2ipe»)  Though;  the-feudai  fyftem  has  been 
ftb0liflled^in  Spain  and  Portugal^  it  has  nbt.been:  fucceeded  by  a 
much  better.- •"'■'''E^i^^'i"'-'!'  >■»!  >(»  'ilm-.>n)'  ■;(b  ho?,   .:.qoti.r,-.!  'u'  tvn'fii  ;    ■ 

s^^^Ar  the  low  value  of  gold  artd  filver,  therefore,  \s  no  proof  of  the 
Wealth  ^HH^ouHihing  ftate  of  the  countiy  wherd  it  takes  place  j 
fo  itehher  W  thtSr  high  value,  or  the  low  money  price  either  of 
gcidds  in  general  or  of  corn  in  particular,  any  proof  of  its  poverty 
^d  barbarlfih. 


''.i.r'H>J  tV/:t•//• 


^^•J, 


*X^ 


•V:.K'. 


y,a 


'.\^i.;  -,. 


3<»l 


'5/! 


P. 


BuT''i?hbitgh  ihe  low  money  price  either  oi^ gobits  In  geherar,  or 
^i>t  com  ih  particular,  be  no  proof  of  the  poverty  or  barbarifm  of 
ihe  times,  the  low  money  price  of  fome  particular  forts  of  goods, 
'iii'ch  ais  cattle,  poultry,  game  6t  all  kinds,  in  '  proportion  to  that 
"^  corii, '  is  U  moft  decifive  one.    tt  cFearly  demonftrates,  firft,  their 
gi'eat  abundance  in  proportion  to  that  of  corn,  and  corife<^uentIy 
the  gireit  exteht  of  the  land  which  they  occupied  in  proportion  to 
what  was  occupied  by  com;  and,  Secondly,  the  low  value  of  this 
fkiid'in  proportion  to  that  of  corn  hind,  and  coniequehtiy  the  iin- 
'  btiltiVsli^  and  unimproved  ftate  of  the  far  greater  part  of  ^e  lands 
of  tlie  country.    It  clearly  demonftrates  that  the  flock  and  popu- 
lation of  the  country  did  not  bear  the  fame  proportion  to  the  ex- 
tent of  its  territory,  which  they  commonly  do  in  civilized  countries, 
and  that  fociety  was  at  that  time,  and  in  that  country,  biit  m  its 
infancy.     From  the  high  or  low  money  price  duier  jb^,goods  in 
general,  or  of  corn  in  particular,  we  can  infer  only  that  the  mines 
which  at  that  time  happened  to  fupply  the  commercial  world  with 
gold  and  filver,  were  fertile  or  barren,  not  that  the  country  was 
rich  or  poor.    But  from  the  high  or  low  money  price  of  fome 

fbrti 


1 


i 


WA 


|i 


n 


^ 


THE    NATURE    AN©    CAtTSES  'OV 


V  cr  O  K  fbits  df  gooil»  ill'  fO-opoHidn  to  that  06  otihttv,  \9e  esrr  infbr  with  a 
degvecof  prdbaHility  thAtdlpproachcft  dmoft  tocMtaifity^  thar  it 
WM  rich  or  poor,  that  the  greater  part  of  its  landtw«r&  improve 
orunitnprdwd,  and  that  it  vrM^  either  in  «  more  or  lq&  barbarous 
ilate,  or  in  a  more  or  Icfs  civilized  one.   1  iWEBinro^'  :»d  o*>:ilitjairirtlh 


Any  rife  in  the  money  price  of  goods  which  proceeded  altogether 
from  the  degradaition  of  the  rakie  of  filver,  would  afie£l  all  ibrts 
of  goods  equally*  and  raiife  their  price  nmverfaUyf  a  thircU  or  a 
/ourth,  or  a  fifth  part  higher,  according  as  filv«r  happened  to 
lofe  a  tliird,  or  a  fouith,  or  a  fifth  part  of  its  fpraiec  viduc.  But 
the  rife  in  the  price  of  provifions,  which  has  been  the  fub)ei6t  of 
fo  much  reafoning  and  converfatlon,  does  not  Sifk&.  all  forts  of 
provifions  equally.  Taking  the  course  of  the  preiient  century  at 
an  average,  the  price  of  corn,  it  is  acknowledged,  even  by  thofe 
who  account  for  this  rife  by  the  degradation  of  the  value  of  (ilver, 
has  rifen  much  le^  than  that  of  foiHe  other  forts  of  provifioof . 
The  rife  in  the  price  pf  thofe  other  fprts  of  provifions,  therefore, 
cannot  be  owing  altogether  to  the  degradation  of  the  value  of 
filver.  Some  other  caufes  muft  be  taken  into  the  account,  and 
thofe  which  have  been  above  alligned,  will,  perhaps,  without 
having  recourfe  to  the  fuppo.fed  degradation  of  the  value  qf  filver, 
fufikiently  e;cplain  this  rife  in  thoie  parlxular  fort^  of  provifions 
of  which  thp  price  has  aftually  rifen  in  proportioa  to  that  of 

As  to  the  price  of  corn  itfelf,  it  has,  during  the  fixty-four  firft 
years  of  the  prefent  century,  and  before  the  late  extraordinary  coaife 
.of  bad  fea£b|is,  been,  fomewhat  lower  than  it  was  during  the  fixty- 
four  hft  yegfr^  of  the  preceding  century.  This  faft  is  attefted, 
jiot  only  by  the  accounts  of  Windfor  market,  but  by  the  publick 
liars  of  all- the  different  counties  of  Scotland,  and  by  tlie  accounts 

of 


THE    WEALTH    OP    KAT/ION«. 


S03 


•f  ifivieptl^  difTcrmt  marlMtf  in-  France,  which  '  tvc  been  coUeded   C  R  A  F. 
with- great  diligcnoc  and  fiddky  by  Mr.  Meliafice  aod  by  Mr. 
Dupr^deSt.  Maur.    The  evidence  is  more  compleat  thaii' could 
well  <  have  been  expcftcd  in  a  matter  which  is  naturally  fo  very 
difficult  to  be  afcertained.      ■  fo  lirtV?P?^'iiJ'~*>#%>  9l»rfv  r.  ni  lo Ai««6>i> 

'  9  Ab  to  the  high  price  of  corn  during  thefe  laft  ten  or  twelve  years, 
it  can  be  fuificiently  accounted  for  from  the  badnefs  of  the  feafons, 
without  fuppofing  any  degradation  in  the  value  of  lllver.'  '-:.'w>o*;  fc 

^'The  opinion,  therefore,  that  filver  is  continually  finking  in 
Its  value,  fecms  not  to  be  founded  upon  any  good  obfervations, 
either  upon  the  prices  of  corn,  or  upon  thofe  of  other  provi- 
fions. 


ht' 


M1;.ii 


»«?  A'  If  iin^T  "<o-  b*>F'u('>^v  <r.ifjwv».'t{i 


THEwi^ie  qiiantity  of  fiMr,  it*  may,  pierKaps,  be  f^d,  wiflm 
the  prefent  times,  even  according  to  the  account  which  has  been 
here  given,  purchafe  a  muqh  fmaller  quantity  of  feveral  forts  of 
provinons  than  it  would  have  done  during  fome  part  of  the  laft 
century;  and  to  afcertain  whether  this  change  be  owing  to  a  riie 
in  the  value  of  thofe  goods,  or  to  a  fall  in  the  value  of  filver,  is  only 
to  el^abli(h  a  vain  and  ufelefs  diftin£tion,  which  can  be  of  no  fort 
of  fervici'td  the  man  who  has  only  a  certain  quantity  of  filVerto^ 
go  to  market  with,  or  a  certain  fixed  revenue  in  moriey.  I  cei*- 
tainly  do  not  pretend  that  the  knowledge  of  this  diftin^on  will 
enable  him  to  buy  cheaper.  It  may  not,  however,  upon  that 
account,  be  altogether  ufekfs.  iv>  iJi.vj  mi  yi  en, 


;jj. 


It  may  be  of  fome  ufe  to  the  puMitk  by  affording  Sin:  eafy  ptoof 
of  the  profperous  condition  of  the  country.  If  the  rife  in  the  price 
of  fome  forts  of  provifions  be  owing  altogether  to  a  fall  in  the 
value  of  filver,  it  is  owing  to  a  circumftance  from  which  nothing 

4,  can: 


VH 


THE  NATURE  AN©  CAUSES  OF 


B  O'O  K  can  be  infierred  but  the  fcrtUtty  of  the  American  mutta.  The 
real  wealth  of  the  country,  the  annual  produce  of  its  land  and 
labour,  may,  notwithftanding  thitf  circumftance,  be  eidiergni. 
dually  declining,  as  in  Portugal  and  Poland;  or  gradually  advancing, 
as  in  mofl:  other  parts  of  Europe.  But  if  this  rif^  in  the  price 
of  fome  forts  of  provifions  be  owing  to  a  rife  in  the  real  value 
of  the  land  which  produces  them,  to  its  increafed  fertility,  or, 
in  confequence  of  more  extended  improvement  and  good  culti- 
vation, to  its  having  been  rendered  fit  for  producing  com,  it  is 
owing  to  a  circumftance  which  indicates  in  the  cleareft  manner 
the  prosperous  and  advancing  ftate  of  the  country.  The  land 
conftitutes  by  far  the  grcateft,  the  moft  important,  and  the  moft 
durable  part  of  the  wealth  of  every  extenfive  country.  It  may 
furely  be  of  fome  ufe,  or,  at  lead,  it  may  give  fome  fatisia^on  to  the 
publick,  to  have  fo  decifive  a  proof  of  the  increating  value  of  by 
£ar  the  greateft,  the  moft  important,  and  the  moft  durable  part 
©fits  wealth.  ....^.fi^. ..»..;  u 

It  may  too  be  of  fome  ufe  to  the  pubHck  in  r^ladng  the 
pecuniary  reward  of  fome  of  its  inferior  fervants.  |f  this  rife 
in  the  price  of  fome  forts  of  provifions  be  owing  to  a  fall 
in  the  value  of  filver,  their  pecuniary  reward,  provide^  It  was 
not  too  large  before^  ought  certainly  to  be  augmenteu  in  propor- 
tion to  tlie  extent  of  this  fall.  If  it  is  not  au^eixtecj,  theif  real 
roco^npence  will  evidently  be  fo  much  diminiftied.  But  if  this 
rife  of  price  is  owing  to  the  increafed  value,  in  confequei^ce  of 
the  improved  fertility  of  the  land  which  produces  fuch  prpvifiops, 
it  becomes  a  much  nicer  matter  to  judge  either  in  what  proportion 
any  pecuniaiy  reward  ought  to  be  augmented,  or  whether  it  ought 
to  be  augmented  at  all.  The  extenfion  of  improvement  and 
cultivation,  as  it  neceiTarily  raifes  more  or  lefs,  in  proportion  to  the 
price  of  corn,  that  of  every  fort  of  animal  food,  fo  it  as  necefla- 

lily 


THE    WEALTH 


OF    NATIONS. 


f'ily  lowcr«  that  o^  I  believe,  vmy  (brt  of  y^^getable  food.  It  la  ^ 
^  pr^oof  aiumal  foodi  becaufe  a  grea( puct  of  the  l«uid  whidi 
pl^MCiqi ,}(,  beiog  rendered  fit  for  producing  corn,  mu|^  ^ocd 
tp  (he  jaodlocd  and  fanner  the  rent  and  profit  of  cori>  l^d.  It 
J^cn  tjtic  iHFice  of  v<|;etable  fpod>  becaufe  by  increafing  the 
fertility  of  the  land,  it  increafep  its  abundance.  The  improve- 
ments of  agriculture  too  introduce  many  forts  of  vegetable 
food,  which»  requiring  lefs  land  and  not  more  labour  than  corn, 
«orae  much  chesq^r  to  market.  Such  are  potatoes  and  maize,  or 
what  is  ealled  Indian  corn,  the  two  mod  important  improvements 
which  the  agriculture  of  Europe,  perhaps  which  Europe  itfelf 
has  received  from  the  great  extenfion  of  its  commerce  and  navi- 
gation. Maay  (orts  of  vegetable  food  befides,  which  in  the 
rude  ftaie  of  agriculture  are  confined  to  the  kitchen  garden,  and 
raifed  only  by  the  ipade,  come  in  its  improved  ftatc  to  be  intro- 
duced into  common  fields,  and  to  be  railed  by  the  plough :  fuch 
«s  jtumips,  carrots,  cabbages,  &;c.  If  in  the  progrefs  of  im- 
nroveiBipnt,  therefore,  the  real  price  of  one  fpecies  of  food  ne- 
cejOTaiiiy  rUes,  that  of  another  as  neceflarily  falls,  and  it  becomes 
f  matter  of  more  nicety  to  judge  how  far  the  rife  in  the  one  may 
l>e  comp^fated  by  the  fall  in  the  other.  When  the  real  price 
of  butcher's  meat  has  once  got  to  its  height,  Twhich,  with  regard 
to  evfry  fort,  except  perhaps  that  of  hogs  fiem,  {t  fciems  to  Kave 
done  through  a  great  part  of  England,  more  than  a  century  ago) 
any  rife  which  can  afterwards  happen  in  that  of  any  other  Ibrt 
of  animal  food,  cannot  much  afFe£t  the  circumftances  of  the 
infieribr  ranks  of  peojde.  The  circumftances  of  the  poor  through 
a  great  part  of  England  cannot  furely  be  To  much  diftrefled  by 
any  rife  in  the  price  of  poultry,  fifti,  wild- fowl,  or  vcnifbn,  as  they 
muft  be  relieved  by  the  fall  in  that  of  potatoes.    '^'■'^^^   ^   '^^ 

In  the  preient  feafon  of  fcarcity  the  high  price  of  com  no 

doubt  diftrefles  the  poor.    But  in  times  of  moderate  plenty,  when 

Vol.  I,  R  r  corn 


m 


CHA  «% 


<  . 

w 


l\ 


3©* 


THE  NATURE  AWD  CAUSES  OF 


B  O^O  K  c6m  Is  at  its  ordinary  or  average  price,  the  natural  rife  in  the  pric« 
of  any  other  fort  of  rude  produce  cannot  much  a£Ec£t  thenn 
They  fuffer  more,  perhaps,  by  the  artificial  rife  which  has  been^ 
occafioned  by  taxes  in  the  price  of  ibme  roanufa£kur»d  com'* 
modities  y   as   of  fait,    foap,   leadier,  candles,  malt,  beer  and- 


ale,  &c. 


V 


•■>r^  '••• 


3r 


EJ'eiij  of  the  Progrtfs  of  Improvemtnt  up9H  ,tkt  f/ifl  ^^ffff  \sf. 

ManufaSturttu    ...  zdi  iYjui^f '\c  2:>-ju  f.'.t  : 

TT  is  the  natural  efFeft^  of  improvement,  however,  to  diminifh 
gradually  th«  real  price  of  almoft  all  mamifafhires.  'That  ofr 
the  manufȣhiring>woricmanfhip  diminilhes  perhaps  m  all  of  them 
without  exception.  In  confequtnce  of  better  machinery,  of 
greater  dexterity,  and  of  a  more  proper  divlfion  and  diftribution 
of  work,  ail  cf  which  are  the  natural  effects  of  iraprovenftnt, 
a  hiuch  finallet'  quantity  of  labour  becbities  requifite  fdy  0!»ecuting. 
any  particular  jpiece  of  work ;.  and  though  in  confequcnce  of  the 
fiourifliihg  drcumftances  of  the  ibciety,  the  real  prica  Of  Ibbour 
(hbtil^  ril^  vety  confiderably^  yet  the  great  diminution  of  the 
q'^antity  will  generally  itfiich  more  than  compenfate  the  grsateft 
rife  Which'cah  happen  in  the  price.  '     '  ""'■ '^    .  uiu;^  jo 

■■'-■-    '■■■■■■  '    -J'y  vwnii'/  T>tssig  R   lb 

There  are,  indeed,  a  few  manufacturer,  in  Whufh  the  n^iefj^icy 
rife  in  the  real  price  of  the  rude  materials  will  more  than  com- 
p8fil2rtij  all  the  advantages  which  improvement  can  intrbdnce  itito 
the  execution  of  the  work.  In  carpenters  and  joiners  work,  and 
in  the  coarfer  fort  of  cabinet  work,  the  neceflary  rife  In  the  real 
price  of  barren  timber,  in  confequence  of  the  improviement  of 
land^  will  more  than  compen(kte  all  the  adviuitages  which  can 


THE:   WEALTH    OP/NATIONa' 


30f 


be  derived  from  the  beft  madiinery»  t\ue  greateft  dexterity*  tnd   CHAP, 
themoft proper diviflon and  diftribution of  wot k.i'i}  t./fim  xm>    '. 

Bof  4n  all  eafce  in  which  the  real  price  of  the  rude  materialt 
either  does  not  rife  at  all,  or  does  itot  rife  very  much,  that  of 
the  manufaftured  commodity  finks  very  confiderably.  ;^ 


,'M 


This  diminution  of  price  has,   in  the  courfe  of  the  prefent 
aiid  preceeding  century^   been  moft  remarkable  in  thofc  martiJr 
failures  of  which  the  materials  are  the  coarfcr  metils.    A  better 
movement  of  a  watch,  than  about  the  middle  of  the  laft  century 
could  have  been  bought  for  twenty  pounds,   may  now  perhaps  r 
be  hadi  Tor  twenty  flulUngs.    la  the  work  of  cutlers  and  lock- 
fmilhs,  in  all  the  toys  which  are  made  pf  (he  cgarler  metals, 
and  in  all  thofe  goods  which  are  commonly  known  by  the  name 
of  Birmingham  and  Sheffield  ware,  there  has  been,  during  the 
fame  period,   a  very  great  redu^ion  of  piice,  though  not  alto- 
gether fi>  great  m  in  watch  work.    It  has, .  however, ,  been  (ytf^ 
ficient  to  aftonilh  the  workmen  of  every  other  part  of  Ejurope,. 
who  in  many  cafes  acknowledge  tliat  they  can  pi:oduce  no  work> 
of  equal  goodnefs  for  double,  or  even  for  triple  the  price.     Thftre) 
are  perhaps  no  manufa^ures  in  which,-the  divifipix  of^  Ijaboyr  9m, 
be  carried  further,  or  in  which  the  machinery  eri^p)oye|d,^4i'^^ 
of  a  greater  variety  of  improvements,   than  thdfe  of  which  the 

maieriaU  *r«  *^9  ^^o*"^^"*  "*^'*'s.  .    ,,,.,,    .„^.,, 

,      ,  ,    .         > 

(.11 '      .»,a      I     -■  -■  ■  .■;     I  "•'  3f''    /r     •'''■  ,• 

Ifi  tjt^^^glotbing  maiiufafture  there  has,  di^r^g,jihe,faiftp  1S^9^^^ 
been  no  fuch  fenfible  reduction  of  price.  The.prjce  of  fuperfinq 
dothf.I  have  been  affured,  on  the  contrary,  has,  within  thefe 
ifiveanid  twenty  or  thirty  years,  rit'en  fomewHat  in  proportion  to 
its  quality  i  owing,  it  was  faid,  to  a  confiderable  hie  In  the  price 
of  the  material,  which  confifls  ^together  of  ^^llh'wQbl.  That 
'      .  R  r  2  of 


I 


{'':' 

m 


t 


)'■ 


nil 


^m 


s«*. 


THE'    N^/VTITRE    AMD    OAXTfiES:  OF 


BOOK^  of^  the  Y<M'k(hiR  clothe  v?hkh  U  fett<fo  altogether  of  BnglUli  woplv 
is  faid  indeed*  dunng  tht  coar^  of  tiie  ^rafiint  centmyu  to  hav« 
fallen  a  good  deal  in  proportion  ta  its  ijpality.  Quality,  however^ 
19  fo  vtry  di^tajble  a  matter*  that  i  loclk<  upon  ail  informatbn^s 
of  this  kind  as  "fomewfeatunceitain*  In  the  clothing  manu^ 
failure,  the  divifion  of  faitfcur  is  nearly  the  iame  now,  as  it  was. 
a  century  ago,  and  the  n)achina7  employed  is  not  very  different;. 
Tfa«reinayi>  hQw^r»ha*thmfii^m^  fiitaj^  improvfiDacntfi  in  JK>th». 
>yluGh  may  have  occafionied  (ome  redu^aajMi  pf  priee.  ^  ^^^  ittun'- 


The  redu^on,  however,  w^U  appear  much  more  fenfible  and: 
undeniable,  if  we  compare  the  price  of  this  mamifa£tuFe  in  the 
prefent  times  with  what  it  was  ia  a  much  remoter  period,  towards 
the  end  of  the  fifteenth'  century,  when  the  la'bour  was  probably 
'much  left  fiibdivided,  and  tiie  machinery  employed  much  more, 
impeifed  than  it  is  at  prefent. 


r.- 


l^fl'Mj 


Im  1487,  being  the  4th  of  Henry  Vllth,  it  was  enabled,  that 
'*  whofbever  (hall  fell  by  retail  a  broad  yard  of  the  fineft  fcarlet 
*'  grained,  or  of  other  grained  cloth  of  the  finelt  making,  above 
**  fifteen  {hillings,  (hall  forfeit  forty  (hillings  for  every  yard  Co 
.**  fold.",  sixteen  ihilKnga,  therefore,  containing  about  the  ^ame 
quantity  of  ftlver  as  four  and  twenty  fhillings  of  our  prefent 
money,  was,  at  that  time,  reckoned  not  an  imreafonable  pricie 
for  a  yard  of  the  fineft  cloth ;  and  as  this  is  a  draiptuary  law,, 
fuch  cloth,  it  is  probable,  had  ufually  been  fold  fomewhat  dearer. 
A  guinea  may  be  rcfikbned  the  higheft  piice  in  the  pfdent  times. 
Even  tjaougii  the  quality  of  the  cloths,  therefore,  ^ould  be  Tup- 
pofed  equal,  and  that  of  the  prefent  times  is  moft  probably  much 
fuperior,  yet,  even  upon  this  fuppofition,  the  money  price  of 
the  fineft  doth  appears  to  have  been  confiderably  reduced  fince 
the  end  of  the  fifteenth  centur/.     But  Its  real  price  Has  been 

much 


1*HE  "W»A^L1»H^^  Ort  NAfTIOWfi? 


3f09 


much"  fi^'oreredticed.  ,^ix  fhlffings  and  eight-pence  was  then;  CHAP; 
and  lon^  afterwards,  reckoned  the  average  price  df  a  qtnoter 
of-yhieni,  dixtfeen  fKHUngs,  thtrefMe,  was  the  price  of  two- 
qiSirtiirt*  And  more  than  tfcree'  bulhds^  of  i«*eat.  Valuing 
atjaarter  of  wheat  in  the  prefent  timeir  at  eight  and  twenty 
(hillings,  the  real  price  of  »  yard  of  fine  cloth  muft,  in  thofe 
times,  have  been  equal  to  at  leaft  tfiree  pounds  fix  Ihillings 
arid  fijipcrice  of  bur  pitfiiot  liioney.  The'  man  whd  bought 
it  muft  have  pa^ed'  With  dit  comhiandbf -a  quantity  of  labdiir 
and  fubfiftence  equal  to  what  that  fum  would  purchafe  in  th& 
prefent  timcs^:";  , ..  •    '  '-'  ^■'■'■^'''•-•^■-    .:i:^:,\.;yr:  -r.ix 

iMough  (^onfiderable,  has  not  been  (b  great  asiri  that  bf  the  fine. 

In  1463,  being  the  34  of  Edward  I Vth,  it  was  enaftcd,  that 
**  no  ^fefvant  in  hufbandry,  nor  common  labouier,  nor  fervant 
♦''to  any  artificer  inhabiting  out  of  a  city  or  burgh,  (hall  ufe 
•♦  0|r  wear  in  thdr  doathing  any  cloth  above  two  fhilHngs  the 
"^l)road  yard."  In  the  3d  of  Edward  the  IVth,  two  fhillings 
contained  very  nearly  the  fame  quantity  of  filver  as  iPour  of  our 
prefent  niorit^i  But  t^ie  Yorklhire  doth  which  is  now  fotd  at 
four  fhillings  the  yard,  is  probably  much  fuperidr  to  ariy' that 
W4S  tbpn  made  for  the  wearing  of  the  very  pooreft  order  of  com- 
mon fervants.  Even  the  money  price  of  their doathing,  therefore,. 
may*  t^  propprtion  to  the  quality,  be  fomewhat  cheaper'  in  the 
prefei^t  ^a^^  was  ii^  th<^e  antient  times.  The  real  price  is  certainly 
a,  good  .deal  cheaper.  Ten  pence  was  then  reckoned  what  is 
called  the  moderate  and  reafonable  price  of  a  bufliel  of-  wheat. 
Two  rlhiUing-s,  therefore,  was  the  pi  ice  of  two  bufliJds  and'  rtear 
two  pecks  of  wheat,  which  in  the  prefent  times,  at  three  (hillings 
and    fixpence   the  bufliel,.    would  ^be   worth  eight  fhillings  and 

nine- 


li"?! 


II 


3^0 


THE  NATURE  ANO  CAUSES  OP 

nine-pence.  For  a  yard  of  this  doth  the  poor  fervant  muft  have 
parted  with  the  power  of  purchasing  a  quantity  of  fubfiftpncd 
equal  to  what  eight -fliillings,. and  nine-pence  would  purdiafc  in 
the  prefent  tamqs.  This  is  a  fumptuary  law  too,  rtftraining" 
the  luxury  and  extravagance  of  the  poor.  Thdr  doatlung,  thcr«4. 
fore,  had  commonly  been  much  more  expenfivc.  .  ; ,  .  f  »  ^^"i 
,        •    ..     4    .;.>*      ■•  .  ■'•w-^-  ■'■''.    -^"'"■'♦■ft; 

-The  fam^'brtWr'^  pebble  it^,  by  the  fame  law;  'proMbited 
ftdih  wearing  hofe,  of  Which  the  price  (hould  exceed  fourteen- 
penee  the  pair,  equal  to  about  eight  and  twenty  pence  of  our 
prefent  money.  But  fourteen-pence  was  in  thoie  times  the  price 
of  a  buftiel  and  near  two  pecks  of  wheat  j  which  in  the  prefent 
times,  at  three  and  fixpence  the  bufhel,  would  C6ft  live  (hillings 
and  three-pence.  We  fliould  in  the  prefent  times  confider  this 
as  a  very  high  price  for  a  pair  of  ftockings  to  a  iervant  of  the 
pporeft  and  loweft  order.  He  muft,  however,  in  thofe  times 
liave  paid  what  was  really  equivalent  to  this  piice  for  theiti.    "^ 

In  the  time  of  Edward  iVtIi,  the  art  of  knittifig  ftockings 
was  probably  not  known  in  aiiy  part  of  Europe.  Their  hofe 
were  made  of  common  cloth,  which  may  have  been  one  ot  the 
caufcs  of  their  dearnefs.  The  firft  perfon  that  wore  ftockings 
in  EJngland '  >h  feid  to  have  1ie*n  Queen  Elizabeth',  fe^e  recJIived 
them  as  a  prefent  from  the  Spanifti  amb^ador.:' 


t  \^   .w'***^ 


^^ifS^H^tf '*Ki^^i#  ar^  iii|'iy  ^'it^ mi^uS^uS'l^ 
ihicHihidry' employed  wa^  much  mpre  imperfe6lln  thojf ,anti|i[^nt^^ 
tilari '  it  is  ih  the  pi^eifenV  ti^es.  It  has  fince  received  ij^re^  very, 
capital  impr6V6nientsi'bcfi(ies,  probably,  many  fmall^r  pnc^  .of. 
which  it  Way  be  difficult  to  afcertain  either  the  number  ftr  the 
imp6itait<i(i.  '  The  'tl|ree  capital  improvements  arej,  ,firft^  Tlj^ie, 
exchange  6f  thd  i-ock'iild  fpiniUefoi-  the  jpinmiig  wheei«  which. 


^ H E    W#A L T H    OF    N A/Ti O NiS. 


Sit^ 


V!fUli!i^e  fame  quantity  of  labour,  will  perform  more  than  double   CJIAP.; 
tlk^quamtity  of  work.    Secondly,  the  ufeof  feveral  very  ingenious 
madimte  which  facilitate  and  abridge  in  a  ftill  greater  proportion 
t^fixUviuduig  of  the  worfted  and  woollen    yam»  or  the  propei" 
arsanl^en^ei^  of  the  Warp  and  woof  before  they  are  put  into  the 
loom  i  an  operation  whidi,  previous  to  the  invention  of  thofe 
machines,  muft  have  been  extreamly  tedious  and  troublefome. 
T|1mi;#J#  The  employment  of  the  fulling-mill  fof  thickening  the 
cl9jth^  ij^e^dof  treading  it  in  wat;er.    Neither  wind  nor  w^ter; 
mijils  (^f  auy  Hiud  were  known  in  England  fo  early  as  the  begin-, 
ning  of  the. ^xteenth,  century,  nor,   fo.  far  as  I  know,   in  any 
other' , part  of  Europe  north  of  the  Alps,    They  had.  be^  intro^ 

Thb  confideration  of  thefe  circumftances  may,  perhaps^  in 
fome  meafure  explain  to  us  why  the  real  price  both  of  the  coarfe 
and  of'  the£ne  mamifa6ture»  was  fb  much  lugher  in  thofe  aiitient^ 
than  it  is  in  the  prefent  times.  It  coft  a  greater  quantity  of  labour 
to  bring  the  goods  to  market.  When  they  were  brought  thither, 
therefore,  they  muft  have  purchaibd  or  exchanged  for  the  price 
of  a  greater  quantity,    ^^^^^..^^^  .,,y.^i,^,,onrrnv.,.o  .,..xn  ..... 

rt^tco0f^  m^uiS|i£hire  probably- was,  in  thofe  antient  times, 
carried  on  in  England,  in  the  (ame  manner  as  it  always  has 
been  in  coimtries  where  arts  and  manufactures  are  in  their 
infancy.  It  was  probably <  a  houfliold  manufadurej.  in  which 
every  diflferent  part  of  the  work  was  occafiqni^ly  pefforn^  jb^y 
ali'tJie'difFerent  members  of  almoft  every  private  family j  but  lb 
ais'tb  b<^  ilheir  work  only  when  they  had  uothirig  elfe  to  do,  and 
tibt  to  be  the  principal  bufmefs  from  which,  any  pf  them,  derived 
the' ^featei?  part  of  ^heir  fubfiitence.  The  work  whiph  is  per- 
f6rmed  in 'this 'manner,  it  has  already  been  obferved,  comes  always 
/  M!  s  4  mucn 


It  !■- 


'  :'M 


3»* 


THE  NATURE  AND  CAUSES  OF 


/:•»*• 


.V>(4.J 


^-      m 


,tf      !*•. 


.f^"-"  ;jV';.  -*•/-■-»■ 


B  <yo  K  J)J^^Qll  cheaper  to  market  thtn  that  which  is  the  prio^cipaf  or  foje 
fond  of  the  workman's  fubfiftence.  The  fine  manufg^iire, 
or  the  other  han4>  was  not  in  thofe  time$  carried  on  in  England, 
hut  in  the  rich  ^nd  commercial  country  of  Flanders  i  9nd  it  was 
prpbably  conducted  then,  in  the  fame  manner  ^s  now*  by  people 
Tjho  derived  the  whde.  or  the  principal  part  of  their  ifvibflflence 
from  it.  It  was  befides  a  foreign  manufa^ure,  and  mu(^  have 
paid  iome  duty,  the  antient  cuftom  of  tunnage  and  pounda^^e  at 
leaft,  to  the  Jdng.  This  duty,  indeed,  would  not  probably  be 
very  great.  It  wai;  nctf  then  the  policy  of  Europe  to  reftrain»  by 
high  duties,  the  importation  of  fordgn  manufa£tares,  but  rather 
to  encourage  it,  in  order  that  merchants  mijj^t  he  enabled  to 
fupply,  at  as  eafy  a  rate  as  poflible,  the  great  men  with  the  con- 
veniencies  and  luxuries  which  they  wanted,  and  which  the  induftry 

of  their  own  country  could  not  afford  them.    ,„jr    ,;.ii  ..^^  ^^-^: 

' "  %■  . 

Thb  confidcmtioa  of  thefe  circumftftnees  oftay,  pediapSa  in 
fome  meafure  explain  to  ui  why,  in  thoTe  antient  timf^a^  t^e  re^l 
{xrice  of  the  coarie  manufaSbure  vm^m  19  prc^pfortioii  to  ^mt  <^ 
the  fine,  fi»  much  lower  than  in  die  prefent  ^mcA.  ...a. 


Conclusion   of  the  Chapter. 


■'«i 


5    i.'i 


T  SHALL  conclude  this  Tery  lohg  di^kpti^  mtk  obftrving 
that  every  improvement  in  the  circumftances  of  i^e  (bciety 
tends  ^ther  direfUy  or  indire&Iy  to  raife  the  real  rent  of  land, 
to  increafe  the  real  wealth  of  the  lan^ord,  his  power  of  pur* 
chafing  the  labour,  or  the  produce  of  the  labour  of  odier  peo^e. 

The  extenfion  of  improvement  and  cultivation  tends  to  raife 
it  diredly.  The  landlord's  Ihare  of  the  produce  neceflarily  in- 
cfta&s  with  the  increa^  of  thjB  produce 


'■MP.::z\n  ';;J^^ 


TilAT 


THE    WEALTH    OF    NATIONS. 


3»3 


-  TsAT  rife  in  the  real  price  of  thofe  psits  of  the  rude  pro- 
duce of  land»  which  is  firft  the  ?fre£b  of  extended  improvement 
and  cultivation,  and  afterwards  the  cau(fc  <^  their  being  ftill 
further  extended,  the  rife  in  the  price  of  cattle,  for  example* 
tends  too  to  ratfe  the  rent  of  land  dire£lly,  and  in  a  ftiU  greater 
proportion.  The  real  value  of  the  landlord's  ihare,  his  real  com- 
mand of  the  labour  of  other  people,  not  only  rifes  with  the  rieal 
value  of  the  produce,  but  the  propordon  of  his  (hare  to  the  whole 
produce  riles  with  it.  That  produce,  after  the  rife. in  its  real  price, 
requires  no  more  labour  to  colle£t  it  than  before.  A  finaller  pro- 
portion of  it  will,  therefore,  be  fuffident  to  replace,  with  the 
.ordinary  profit,  the  ftock  which  employs  that  labour.  A  greater 
proportion  of  it  muft»  confequently,  belong  to  the  landlord. 

All  tho(e^nnprovements  in  the  productive  powers  of  labour, 
which  tend  dire£tly  to  reduce  the  real  price  of  manufactures,  tend 
indirectly  to  raiie  the  real  rent  of  land.  The  landlord  exchanges 
diat  p^Ut  of  his  rude  produce,  which  is  over  and  above  his  own 
confumption,  or  what  comes  to  the  fame  thing,  the  price  of  that 
part  of  it,  for  manufactured  produce.  Whatever  reduces  the  real 
price  of  the  latter,  raifes  that  of  the  former.  An  equal  quantity  of 
the  former  becomes  thereby  equivalent  to  a  greater  quantity  of  the 
latter ;  and  the  landlord  is  enatded  to  purchafe  a  greater  quantity 
of  th6  conveniencies,  ornaments,  or  lux  iries,  which  he  has 
occafionfor.  .  ,. ,,  .  , 

J.    .  •  ^  _    _  ,^.        ..-  ._  ^^.        ..   ■ 

:,  Every  increafe  in  the  real  wealdi  of  tfie  fociety,  every  increafe 
in  the  quantity  of  ufeful  labour  employed  within  it,  t^nds  indireCtly 
to  raife  the  real  rent  of  land.  A  certain  proportion  of  this  labour 
naturally  goes  to  the  land.  A  greater  number  of  men  and  cattle 
are  employed  in  its  cultivation,  the  produce  increafes  with  the 
increafe  of  the  ftock  which  is  thus  employed  in  raifing  it,  and  the 
rent  increafes  with  the  produce. 
,    Vol.  h  S  f  *^  The 


CHAP. 


"kt 


.  ■■■?- 


THIB^INA'njR®'^  A!ND    CAUSES    OF 

'"  THEcttftttiary'tircwtrlftanceSj  the  negledliof  cultivation  and  im- 
proirement,  the  fell  in  tlie  real  price  of  any  part  of  the  rude  produce 
of  land,  the  rife  in  the  real  price  of  raanufaftures  from  the  decay 
of  manufafluring  ait  and  induftry,  the  declenfion  of  the  real  wealth 
of  thefociety,  all  tend,  on  the  other  hand,  to  lower  the  real  rent  of 
land,  to  reduce  the  real  wealth  of  the  landlord,  to  diminiHi  his 
power  of  purchaflng  either  the  labour,  or  the  produce  of  the  laboui: 
of  other  people^       -  ->  i  ^-   i  ■^.^-  -  ^  ,  ;    •  . ,  -      i-  u^..  * 

The  whole  annual  produce  of  the  land  and  labour  of  every 
country,  or  what  comes  to  the  fame  thing,  the  whole  price  of  that 
annual  produce,  naturally  divides  itfelf,  it  has.  already  been  obferved^ 
into  three  parts ;  the  rent  of  land,  the  wages  of  labour,  and  the 
profits  of  ftock  i  and  conflitutes  a  revenue  to  three  different  orders 
of  people ;  to  thofe  who  live  by  rent,  to  thofe  who  live  by  wages,, 
and  to  thofe  who  live  by  profit.  Thefe  are  the  three  great  original 
and  conftituent  orders  of  every  civilized  fociety,  from  whole  revenue 
that  of  evei7  other  order  is  ultimately  derived.  '^'  '*^'^*  •*''"* 


***i-     -tw 


The  ihtereft  ^f  the  firft  of  thofe  three  great  orders,  it  appears 
from  what  has  been  juft  now  faid,  is  ftrifHy  and  inffeparably  con- 
ne6ted  with  thejgeneral  intereft  of  the  fociety.  Whatever  either  pro- 
motes or  obftrufts  the  one,  neceflarily  promotes  orobftrufh  the  other. 
When  the  publick  deliberates  concerning  any  regulation  of  commerce 
or  police,  the  proprietors  of  land  never  can  mifiead  it,  with  a  view  to 
promote  the  intereft  of  their  own  particular  order;  at  leaft,  if  they  have 
any  tolerable  knowledge  of  th^t  intereft .  They  are,  indeed,  too  often 
defedive  in  this  tolerable  knowledge.  They  are  the  only  one  of  the  three 
orders  whofe  revenue  cofts  them  neither  labour  nor  care,,  but  comes 
to  them,  as  it  were,  of  its  own  accord,  and  independent  of  any  plan 
or  proje6l  of  theij-  own.  That  indolence  which  is  the  naturaj 
cffeft  of  the  eafe  and  fecurity  of  their  fituation,  renders  them,  too 
7  of^n. 


THE     WEALTH     OF    NATIONS. 


3»5 


often,  not  only  ignorant,  but  incapable  of  that  application  of  mind   C  HA  P. 
which  is  neceffary  in  order  to  forefee  and  underlland  the  confe- 
qucnces  of  any  publick  regulation.!:  lo  r*  ■  r?3b-jb  :»>>■  rr  -•'  iuij  i?;  :. 

i  The  interefl  of  the  fecond  order,  that  of  thofc  who  live  by 
wages,  is  as  ftridtly  connected  with  the  interefl  of  the  fociety  as  that 
of  the  firft.  The  wages  of  the  labourer,  it  has  already  been  (hewn, 
are  never  fo  high  as  when  the  demand  for  labour  is  continually 
rifing,  or  when  the  quantity  employed  is  every  year  increafing 
confiderably.  When  this  real  wealth  of  the  fociety  becomes 
ftationary,  his  wages  are  foon  reduced  to  what  is  barely  enough  to 
enable  him  to  bring  up  a  family,  or  to  continue  the  race  of 
labourers.  When  the  fociety  declines,  they  fall  even  below  this.  The 
order  of  proprietors  may,  perhaps,  gain  more  by  the  profperity 
of  the  fociety,  than  that  of  labourers :  but  there  is  no  order  that 
fuffers  fo  cruelly  from  its  decline.  But  though  the  intereft  of  the 
labourer  is  (Iri^ly  connected  with  that  of  the  fociety,  he  is  incapa- 
ble either  of  comprehending  that  intereft,  or  of  underftanding  its 
conne£lion  with  his  own.  His  condition  leaves  him  no  time  to 
receive  the  neceif^ry  information,  and  his  education  and  habits  are 
commonly  fuch  as  to  render  him  unfit  to  judge  even  though  he 
was  fully  informed.  In  the  publick  deliberations,  therefore,  his 
voice  is  little  heard  and  le(s  regarded,  except  upon  fome  paiticular 
occafions,  when  his  clamour  is  animated,  fet  on,  and  fup- 
ported  by  hb  employers,  not  for  his,  but  their  own  particular 


purpofes. 


r  H 


W»**».r    'wr^w 


His  employers  conftitute  the  third  order,  that  of  thofe  who  live 
by  profit.  It  is  the  ftock  that  is  employed  for  the  fake  of  profit, 
which  puts  into  motiQn  the  greater  part  of  the  ufeful  labour  of 
every  fociety.  The  plans  and  proje£ts  of  the  employers  of  flock 
regulate  anddire^all  the  moft  important  operatipnf  of  labour,  and 

S  f  2  profit 


v^ 


rWEOmi'SMKEOAWT  JCNSmES^T^f 


raceof  profiMtbes<]iotv  liktiircitt  anil < wflgM;  rifdwhh  the fr'dtpefity'; 
and  fall  with  the  declenfion  of  the  focutf*  On  tiie  irontrafy,  it  is 
naturally  low  in  rich,  and  high  in  poor  countries,  and  it  ifr  always 
higheft  in  the  countries  which  are  going  faiVeft  to  ruin.  The  ihterdt ' 
of  this  third  order»  therefore,  has  not  the  fame  c<>nne£tion  widi  the 
general  intereft  of  the  fociety  as  that  of  the  other  two.  Merdtants 
and  mafter  manufaflurers  are,  in  this  order,  the  two  clafles  of 
people  who  commonly  employ  the  largeft  capitals,  and  who  by 
their  wealth  draw  to  themfdves  the  greateft  ihare  of  the  publick 
confideration.  As  during  their  whole  Kves  they  are  enfj;aged  in 
plans  and  projefVs,  they  have  frequently  more  acutentfs  of  under- 
ftanding  than  the  greater  pait  of  country  gentlemen.  As  thdr 
thoughts,  however,  are  commonly  exercifed  ^ather  about  theintereft 
of  their  own  particular  branch  of  bufine(s,  than  about  that  of  the 
ibciety,  th^r  ju(%ement,  even  when  ^ven  with  the  g't«Meft  dandour» 
(which  it  has  not  been  upon  every  occ^fion),  is  much  more  ti>  be 
depended  upon  with  regard  to  the  former  of  thofttwo  objeds,  thais 
with  reganl  to  the  ktter.  Their  fiipttierity  over  tfui  country  ^entl^ 
man  is,  not  fo  much  in  thdr  knowledgie  <tf  the  publ' .  k  ilit(snift,  as 
in  their  having  abetcerkaowtbdgeof  their  own  int«reft  thaji  hekisdf 
his.  It  is  by  this  ftiperior  knowledge  of  their  own  intitfreft  thitt  thi^ 
have  frequently  impofed  upon  his  gener^fity*  dti^  perfinided  lum  p> 
give  up  both  his  ovm  intereft  and  thstt  oi  the  pubUdi,  from  a  V4H^ 
fimpk  but  horteft  conviftiouk  that  their  intei^eft,  and^nothb,  was^ 
intereft  of  the  publick.  The  intereft  of  the  dealers,  however>4n  iMy 
particular  branch  of  trade  or  itianufadtures^  is  always  in'  (bme 
irefpeAs  difTerent  from,  and  even  oppofite  to  that  of  the  fMblick. 
To  widen  the  market  and  to  narrow  the  coirtpetition,  u  alvMiys  the 
iniereft  o(  the  dealers.  To  widen  the  maiitet  nhay  fte^jgosiitly  be 
agreeable  enough  to  the  intereft  of  the  pulUick;  but  te  nti^dvV  ^e 
competition  muft  always  be  againft  it«  and  can  icrveeiily  t<yAiabIe 

the 


rUE^^mBf^JLTM^OBnlS1L!tIom$s 


S>7 


bvr;^:l0vy(>>^c  their  own  bene&»  an  afaftlr(SriaK:iipon!thq  idkxiS 
their  ffittow  dw"  ns.  The  propof^l  of  any  ne«y  law^  or  regulation 
of  commerce  which  comes  from  this  order,  ought  always  to  be 
liftened  to  with  great  precaution,  and  ought  never  to  be  adopted  till 
after  having  been  long  and  carefully  examined,  not  only  with  the 
nK^  fcrUpulous,  but  with  the  moft  fufpicious  attention.  It  comes 
fnmi  an  order  of  men,  whole  intereft  is  never  exactly  the  fame 
with  that  of  the  publick,  who  have  generally  an  mtereft  to  deceive 
aiid  even  to  opprefe  the  publick,  and  who  accordingly  have,  upon 
many  occafions,  both  deemed  and  opprelled  it. 


Ytart 

XII. 

Price  df  the  QuArter  6f 
Wheat  caehYea& 

Avenge  of  the  dif- 
ferent Prices  of  the 
famie  Year. 

The  averafc  1 
each  Year  in 
oftheprefent 

Price  of 
Money 
Time*. 

C 

X.        J. 

£'      *' 

i^. 

iC-      '• 

d. 

1S02 

— 

1*    — 

—     ^— 

— 

I      16 

— . 

{     - 

13      — 

7 

iu.     — 

-ii 

..;.'    ... 

— ? 

iao5 

1     - 

»3      4 

} 

—     13 

5 

2      — 

t 

I     — 

IS    — 

J 

^•m         «.' 

•— 

—     — 

— 

12*3 

1*    — 

M.         — 

t— 

1       16 

— 

-"37 

— 

3      4 

—         i— 

•*- 

—      16 

— 

"43 

— ^ 

2    — 

—         -^ 

*-*    • 

—      6 

"-" 

1*44 

.— 

t    — 

' 

M*         ^.i^ 

MOfc 

—      6 

■■" 

1*46 

'i^ 

16    — 

• 

Mb      ■  — . 

«WBfc 

s      8 

— 

tM7 

•^^ 

13      4 

MHk        a_^ 

dUB 

■2-    — 

•~" 

^m 

1 

4    ^ 

*—        — 

»& 

3    12 

■■" 

c    * 

■.1^    •«* 

\ 

««b        •_;. 

■Mi 

•H.          -Mi 

■"■ 

1*58 

]  - 

'1    ^ 

\ 

-"         17 

ttMs 

»            *« 

— ' 

I  — 

16    -* 

J 

■K        ^~ 

^^j^          ' 

'^iM         -mm 

M^ 

w® 

it 

16    ^ 
g    — 

8        « 

1 

,,i.»« 

f 

16    ]6 

'— , 

1286. 

b;; 

\ 

■  (      r  1 

4 

"7  1 

— 

Jh^. 


iM 


t''i'' 


<  i<  J  •> 


l^AJi> 


Total, 


3f 


Average  Price, 


m 


k 
M 


19 


3«8 


THE  NATURE  AND  CAUSES  OF 


BOOK 

Yenrs    1 
XII. 

'rice  of  the  Qnartcr  of 
Wlieat  cacliYcar. 

Average   of   the  dif- 
ferent  Prices  of  the 
fame  Year. 

Tlic  average  Price  of 
each  Year  in  Money 
ofthc  prefent  Times. 

/■' 

£'      s.      d. 

C'     S'      <i- 

£'    s.     d. 

{■ 

1287 

—      —     — 

—    10    — 

1  f 

*     A'^  . 

f     -    -       8     1 

—      — —     — 

-^    —    _ 

•• 

1 

— •       I       4 

"""      ■""     ""~ 

«H^              VBMM              ^^M 

12S8 

—  I       6 

—  I       8 

-      3    -T 

-      9    -i  . 

—      3      4 
.—      94. 

—   —   — 

—    —    — 

—  12    —    ' 

—  6    — 

—  2    — 

"~"      ~~      "~" 

-■     ■        ^^        ^"^ 

1289 

—  10    IJ^ 

I     10       4» 

—     10      8 

—    — .    — . 

—    —    _- 

I     —    — 

—    —    — 

—    — 

1.290 

—     16    — 

—    —    — 

2       8    — 

1294 

—    16    — 

—    —    __ 

2       8    — 

1302 

—T      4    ^-^ 

—    —    — . 

—      12      — 

f^o9 

—      7      2 

—     —     — 

II       6 

^zn 

4            M^iM           a^^ 

z  z  z 

J  z  z 

1316 

1    I  10  ~   . 

I       12      .^ 

I     10      6 

4     "       ^\ 

I        .2      —     > — 

—    —    — 

—     —     **■; 

r      2      4    —    1 

—    —    — 

» 

^^ 

—      14      — 

—    —    — 

^_          ...           •» 

X317 

1         2      13     — 

X     19      6 

5     18      6 

4     —     — ^ 

— p    —    — 

.     —          — —          m—. 

»  .. 

I    —      6      8 

—    _—".—. 

_          _          • 

X336 

.-     .        .-              2           !■ 

1     —    —    — 

—      6    — 

1.338 

—      3      4      '     —    —    — 

—     lo     ' 

'—.    -rr    —     *                                Total, 

23     4    u; 

* 

Average  Price 

•      I     18      8 

'.,■■■-■.  '■■ 

1                            *                    K    «^                         »f 

.5-    •          V              t(. 

* 

,                  * 

■    f 

'■  t    >          ..■:(':h'1  ■•; 

2(ri9r^ 

/ 

Mfl4lw.'>t  •%»  •  »••(» 


THE    WEALTW    OV    NAriON'Sl 


Years 
XII. 


"339 

1349 

J3?9 
1 36 1 

'363 

1369 

1379 
1387 

1390 

1 401 
1407 
1416 


Price  of  the  Qiarter 

of 

Wheat  each 

Vear. 

£. 

9 

d. 

I 

2 
6 
2 

8 

(          I 
i          1 

M 

"~" 

J 

4 
4 

— 

1^ 

2 
»3 

4 

"» 

H 

— 

• 

16 

— 

, 

Id 

_ 

C       ~~* 

4 

4l 

i 

3 

4 

— 

16 

— 

Average  of  the  dif- 
ferent Prices  of  the 
fame  Year. 


Th»  average  Price  of 
each  Year  in  Money 
of  the  prcfent  Times. 


X.'. 


s. 


d. 


iC. 


I 

2 


7 

5 

2 

4 
»5 


9 

4 


:\ 


—     H 


—       3     10 

Total, 
Average  Price, 


»7 

8 

12 


'5 


1423 
1425 
1434 
H3i 

1439 
1440 

1444 


—  8 

—  4 
I  6 

—  5 


8 
.4 


1  - 


1 44.5 

1447 
'44.8. 
1449         — 


6 

4 

4 

4 

4 
8 

6 

5 
8 


i 


Ji  1 

6 


£,'    •'•    <'• 


>       3      4 
—      42 


>c. 


2 

2 


vvn. 


s. 

16 

8 

'3 
>o 

6 

8 

8 

9 
16 

'3 
10 

16 


Total, 
Average  Price, 


J  2 15 


d. 

2 
a 
8 


4 
8 


4 
II 


5       94- 


d. 


4 
8 


4  ,: 


3W 

CHAP. 
XI. 


w^  r 


320 


THE    NATURE    AND    CAUSES    OF 


Yrari 

XII. 

Price  of  the  Quarter 
Wheal  eacKYear. 

of 

Avcraia  of  the  dif- 
ferent Pricea  of  the 
lame  Year. 

£. 

/.    J, 

£'     /.     J, 

1453 

— 

5      4 

—    —     — 

H5S 

— 

I      a 

— "     —     "— 

"457 

— 

7      8 

—     —     — 

1459 

•BM 

1  z 

^■>           ■>M            ^o 

1460 

— 

— .    —    — 

'463 

{  z 

2      — 

I      8 

1 

—        I      10 

1464 

— 

6      8 

_     —.     — 

14B6 

I 

4    — 

—     —     — 

1491 

— 

14      8 

—     —     — . 

H94 

— 

4    — 

—     — .     — . 

«49S 

— 

3      4 

—     —     — 

■497 

1 

—    — 

—     —     — 

The  average  Price  of 
each  Year  in  Money 
of  the  prcfcnt  Timci. 

£•       '.      d. 

—    10      8 


Total, 
Average  Price, 


a 

«5 

10 

t6 

3 

to 
»7 

2 

6 
5 


4 
4 


8 


I 

11 

— 

8 

9 

— 

— 

«4 

I 

1499 

»S04 
1521 

I5J» 
»5S3 

«S54 

»5S5 

1556 

»557 

1558 

"559 

1360 


{ 


~ll 

—  8  — 

—  g  — 

—  8  — 
^  8  — 

—  8  — 

—  4  — 

=  J  = 

1  'I  ^' 

—  8  — 

—  8  — 


iC- 

/. 

J. 

£■ 

'6 

d. 

— 

— 

— 

— 

— 

— 

— 

— 

— 

8 

6 

— 

— 

— 

I 

10 

— . 

^- 

— 

— 

— 

3 

— 

— 

— 

— 

— 

8 

— 

— 

— 

— ■ 

— 

8 

— 

— 

— 

— 

— 

8 

— 

— 

— 

— 

— 

8 

— 

— 

— 

— 

— 

— 

— 

— 

IS 

7 

— 

IS 

7 

mmm 

_ 

_ 

». 

8 

«_ 

— 

— 

— 

— 

8 

— 

— 

— 

— 

— 

8 

—■ 

Average 


Total, 
Price, 


—    10 


THE    WEALTH/  OF    NATIONS. 


Year* 

XII. 


1561 
1562 

»574 
1587 
'594 

»S95 
1596 

1597 

1598 

»599 
1600 

1601 


Price  of*  the  Quarter  of 
Wheat  each  Year. 


1: 


2 
I 

3 

2 

2 

4 
5 
4 
2 
I 
I 
I 


J. 


z  ] 


J. 
8 
8 

16 

4 

4 
16 

»3 


Avenge  of  tne  dif- 
ferent Prices  of  the 
fame  Year. 


£• 


t. 


d. 


±z  \ 

16  8 
19  2 

17  8 
14  ]o 


412     — 


•f 


Total, 


Average  Price, 


TIm  average  Price  of 
each  Year  in  Money 
of  the  prefcnt  Times. 

-  8    -^  , 

—  .8    --  • 

a    —    — . 


2 
I 
I 
I 


28 


4    — 
16    — 


3 
2 

2  2  ~" 


4  12  — 


12 

16 
19 

»7 
H 


4 


8 

z 

8 

10 


94- 


v»'.  ./•» 


yii      ' 


I      r 

'5, 


,-f   i 


C  H  A  P4 
Xt. 


;■ 


^1 


Vol.  I. 


Tt 


ifi 


OS 


»-3 


P«IN!» 


i! 


322 


THE    NATURE    AND    CAUSES     OP 


I.- 


;.*;». 


'Ul.if 


Prices  of  the  Quarter  of  nine  Bujhels  of  tbe  heft  or  bigheft  priced 
Wheat  at  Windjor  Market,  on  Lady-day  and  Michaelmas^  from 
j^gS  to  1764,  both  inchtfive-t  the  Price  of  each  Tear  being  tbe 
medium  between  tbe  bigheft  Prices  of  tbofe  Two  Market  Days, 


£'   X,  d. 


,s      r,^,, 

^y 

.  • 

•  ■  f  - 

ifeai's. 

\ 

<• 

c 

s. 

d. 

Years. 

1595* 

_ 

..— 

2 

0 

0 

1621, 

1596, 



— 

2 

8 

0 

1622, 

i597» 



— 

3 

9 

6 

1623, 

1598, 



— 

2 

16 

8 

1 624, 

i599» 



— 

I 

»9 

2 

1625, 

1600, 



— 

I 

^7 

8 

1626, 

1601, 



— 

I 

H 

10 

1627, 

1602, 



— 

I 

9 

4 

1628; 

1603, 



— 

I 

15 

4 

1629, 

1604, 

— 

— 

I 

10 

8 

1630, 

1605, 

— 

— 

I 

15 

JO 

1631, 

1606, 



— 

I 

13 

0 

1632, 

1607, 



— 

I 

16 

8 

1633' 

1608, 



— 

2 

16 

8 

1634, 

1609, 

— 

— 

2 

10 

0 

^hs* 

16 10, 

— 

— 

I 

15 

10 

1636, 

1611, 



— 

I 

18 

8 

1612, 



— 

2 

2 

4 

1613, 



— 

2 

8 

8 

• 

1614, 



— 

2 

I 

8^ 

1615, 



— 

I 

18 

8 

1616, 

— 

— 

2 

0 

4 

1617, 



— 

2 

8 

8 

1618, 



— 

2 

6 

8 

1619, 

— ■ 

— 

I 

»5 

4 

l620» 

' 

26] 

I 

10 

4 

54 

0 

6i 

2 

I 

6A 

I 

2 
2 
2 

2 
2 
I 
I 

2 
2 

3 

2 
2 

2 
2 
2 


16)40 


10 
18 

za 
8 

la 

9 
16 

8 

2 

15 

8 

13 

18 

16 
16 
16 


2  10 


4 

8 

o 
o 
o 

4 
o 

o 

o 

8 

o 

4 
o 

o 

o 

8 


THE    WEALTH 

OF    NATIONS. 

32 

*;              Wheat  per  quarter.  | 

Whea 

t  per  quarter. 

CFTAP 

Years. 

£• 

J.    </. 

Yeais.       >              £, 

X. 

^. 

XI. 

1637* 

-»           

2 

13     0 

Brought  over,  79 

14 

10 

1638. 

-—           «~ 

2 

17    4 

1671,     —        —2 

2 

0 

>639» 

-^           _ 

2 

4  10 

1672,     —        —    2 

I 

0 

1640, 

^^          

8 

4    8 

1673,     —        —    2 

6 

8 

1641, 

— .           

S 

8    0 

1674,     —        —    3 

8 

8 

1642/ 

Wanting   in  the  O 

0    0 

,675,     —        —    3 

4 

8 

1643. 
1644, 

account.      The  q 
year   1646  fup- 
plied  by  bifhop  O 

0    0 
0    0 

1676,  —        —     I 

1677.  —        —    2 

18 
2 

0 
0 

16450 

Fleetwood. 

0 

0    0 

1678,     —        —    2 

19 

0 

1646, 

—          — 

2 

8    0 

1679,     —        —    3 

0 

0 

1647, 

—          — 

3 

13     8 

1680,     —        —    2 

5 

0 

]64ii. 

— .          — 

4 

5    0 

i68t,     —        —    2 

6 

8 

1649, 

-r-          — 

4 

0    0 

1682,     —        —    2 

4 

0 

1650, 

-,.          — 

3 

16    8 

1683,     —        —    2 

0 

0 

1651, 

"T"             ■"■ 

3 

13    4 

1684,     —        —    2 

4 

o- 

1652, 

—              — 

2 

9     6 

1685,     —        —    2 

6 

8 

J653, 

— ..             

I 

IS    6 

1686,     —        —     I 

H 

0 

1654, 

—             

1 

6     0 

1687,     -^        —     1 

5 

2 

1655. 

"T     •    " — 

I 

13    4 

1688,     —        —    2 

6 

0 

1656, 

—         ■ — 

2 

1     0 

i6«9,     —        —     I 

10 

0 

i657» 

-^         — 

2 

6     8 

1690,      -*-        —     I 

14 

B 

1658, 

— ^         *— 

«4' 

S    0 

1691,     -^        —     I 

H 

0 

1659. 

— <F                     — 

3 

6    0 

1 692,     -~        —     2 

6 

8 

x6^o. 

-P.           .         . 

2 

16    6 

1693,     --        —    3 

7 

8 

1661. 

T    "   ■ — 

3 

10    » 

1694,     —        ~    3 

4 

0 

1662* 

-^       -— 

3 

H    0 

1695,     —        —    2 

'3 

0 

1663* 

-¥•    ■    — 

2 

17    0 

1696,     —        —    3 

II 

0 

1664* 

—p.       — 

2 

0    6 

1697,     —        —    3 

0 

0 

1665, 

—       — 

2 

9    4 

1698.     —        —    3 

8 

4 

1666, 

i""^ 

f 

16    t> 

1699,     ^    -—    3 

4 

0 

1667, 
1668, 

** 

f 

Ir6         0 

4    4 

170©,     -^        —    2 

0 

0 

—  ■.  — 

2 

•:*    '^    '    '60)153 

i 

8 

,1670, 

.  ."^'       — 

2 

I     8 

i  1    »"    j(  .w^  .  1 1  ■     0 

•  w 

^N  ' 

"Carryover, 

'Tri 

14  10 

11       I.        t^<s     «  *  ■'  1            2 

ff  I 

O-r- 

79 

Tt  z 


24                        THE 

NATURE    A.ND     CAUSES  :!< 

BOOK 

Wheat  per  quirtcr.  | 

Wlieat  pel  quarter. 

u-4^       Vors.  -^ 

£.   s.   d. 

Years. 

^.   J.   d. 

1701,    — 

— 

I  17    8 

Brought  over. 

69     8'  8'^  J 

1702,    — 

— 

•19         6      ; 

1734,    ., 

T-i8.io^' 

J703,    — 

•  — 

I       16,0 

•735.    —     — 

•jt-  3<('0'.it 

J  704,    — 

— 

266 

,736,    —    — 

^     ot  4  I 

1705,    — 

— 

I      10         0 

«737»    —    — 

I   18     Or 

1706,    — 



160 

1738,    -     - 

1   15     61 

1707,    — 

— - 

I     8     6 

1739.    —     — 

1   i9     6  i 

1708,    — 

— 

216 

1740,    —     — 

2  16    8  - 

1709,    — 

— 

3  18     6 

1741,    —     — 

26    81 

1710,    — 

— 

3  18     0 

1742,    —     — 

I  14    0  t 

1711,    — 

— 

2  14    0 

»743.    —    — 

1    4  10  1 

1712,    — 

— 

264 

1744,    —     — 

1    4  10  i 

J7i3»    — 

— 

2  II     0 

174^,    —     — 

I     7    61 

1 714,    — 

— 

2  10    4 

1746,    —     — 

I   19     0  X 

^7^5*    — 

— 

230 

1747*    —     — 

I  14  10  ^ 

1716,    — 

— 

280 

1748,    —     — 

I  17    0  " 

1717,    — 

-^ 

258 

i749»    —     — 

I    17     O' 

i7»8.    — 

— 

I   18  10 

1750, 

I  12    6u 

1719,    — 

— 

I   15,   0 

1751,    —     — 

1  18    &n 

1720,    — 

-^ 

1   17    0 

1752,    —     — 

3    I  10  ^< 

1721.    — 

— 

1   17    6 

1753.    —     — 

2     4    S'r 

1722,    — 

— — 

I   16    0 

1754.    —     — 

1  14    8 

1723,    — 

— 

1  14    8 

'755.    —     — 

I     13     10  ^i 

1724,    — 

•— 

I  17    0 

1756,    —     — 

2     5    3f 

i72S»    -" 

—— 

286 

^757*    —     — 

3      0.    0>5 

1726,    — 

— 

260 

1758.    -     - 

2    10      0>t 

1727,    — 

— 

220 

1759.    —     — 

1    19    10    I 

1728,    — 

— 

2  14    6 

1760,    —     — 

I  16    6 

1729,    — 

— 

2    6  10 

1761,    —     — 

I  10    3 

i73o»    — 

— 

I  16    6 

1762,    —     — 

I  19    0 

i73i»    — 

— 

I  12  10 

,763,    —     — 

2-  0    9V- 

1732.    — 

^ 

I     6    8 

,764,    —     — 

269 

1733.    — 

over. 

I     8    4 

64) 

120  13     6 

69    8    8 

y         *9 

Carry 

2    0    644 

►,   -  .  i- 


THE    WEALTH 

OF    NATIONS. 

<                Wheat  per  quarter.  | 

wheat  per  quarter. 

Years. 

jC-     ^' 

^. 

Years. 

' 

£• 

s.    d. 

^72^* 

—       —      I    12 

10 

1741. 

— 

— 

2 

6    8 

1732* 

—       —      I      6 

8 

1742, 

— 

— 

14    0 

'733» 

—     —     I     8 

4 

1743. 

— 

— 

4  10 

1734. 

—     —     I  18 

10 

1744. 

— 

■— 

4  10 

'73|» 

—       —      B      3 

0 

i745» 

— 

— 

7    6 

1736, 

—       —      2      0 

4 

1746, 

— 

— 

19    0 

i737» 

—       ■—      I    18 

0 

1747. 

— 

— 

14  10 

1738. 

z  z\'A 

6 

1748, 

— 

— 

17    0 

1739. 

6. 

>749. 

— ' 

— 

17    0 

1740, 

—    —    2  10 

8 

i7So» 

• 

10] 

12      6 

: 

10)18    12 

8 

il6 
I 

18      2 

„        '  ■  ■  ^ 

'        X  17 

3t 

13    9t 

325 


ill 


IN'^ 


•■« 


BOOK 


•     r 


y- 


II. 


;   **   »^»    ....** 


Of  the  Nature,   Accumulatioii,    and  Employment 

of  Stock. 


.  *,        I      -•-.!«. 


INTRODUCTION. 

IN  that  rode  ftate  of  fociety  in  which  there  is  no  divifion  of 
labour,  in  which  exchanges  are  feldom  made,  and  in  which 
every  man  provides  every  thing  for  himfelf,  it  is  not  neceffary  that 
any  ftock  ihould  be  accumulated  or  ftored  up  beforehand  in  order 
to  carry  on  the  bufmefs  of  the  fociety.  Every  man  endeavours  to 
fupply  by  his  own  induftry  his  own  occafional  wants  as  they  occur. 
When  he  is  hungry,  he  goes  to  the  forcft  to  hunt :  when  his  coat 
is  worn  out,  he  cloaths  himfclf  with  the  (kin  of  the  fiift  large 
animal  he  kills  :  and  when  his  hut  begins  to  go  to  ruin,  he 
repairs  it,  as  well  as  he  can,  with  the  trees  and  the  turf  that  are 
neareft  it. 


11 


But  when  the  divilion  of  labour  has  once  been  thoroughly  in- 
troduced, the  produce  of  "  man's  own  labour  can  fupply  but  a 
very  fmall  pait  of  his  occafional  wants.  The  fai  greater  part 
of  them  are  fupplied  by  the  produce  of  other  mens  labour,  which 
he  purchafes  with  the  produce,  or,  what  is  the  fame  thing,  with 
the  price  of  the  produce  of  his  own.  But  this  purchafe  cannot  be 
made  till  fuch  time  as  the  produce  of  his  own  labour  has  not  only 
been  compleatcd,  but  fold.     A  ftock  of  goods  of  different  kinds, 

therefore, 


32« 


THE    NATURE    AND    CAUSES    OF 


BOOK  therefore,  muft  be  ftored  up  fotnewhere  fufficient  to  maintain  him> 
^^'  and  to  fupply  him  with  the  materials  and  tools  of  his  work  till 
fuch  time,  at  leaft,  as  both  thefe  events  can  be  brought  about. 
A  weaver  cannot  apply  hinifelf  entirely  to  his  peculiar  bufmels^ 
unlefs  there  is  beforehand  ftored  up  fomewhere,  cither  in  his  own 
pofTf  m  or  in  that  of  fome  other  perfon,  a  ftock  fufficient  to 
mail  air.  nim,  and  to  fupply  him  with  the  materials  and  tools  of 
his  work,  till  he  has  not  only  compleated,  but  fold  his  web. 
This  accumulation  muft,  evidently,  be  previous  to  his  applying  his 
induftry  for  fo  long  a  time  to  (ach  a  peculiar  bufmefs. 


As  the  accumulation  of  ftock  muft,  in  the  nature  of  things,  be 
previous  to  the  divifion  of  labour,  fo  labour  can  be  more  and  more 
Cub  lividcd  only  in  proportion  as  ftock  is  previoufly  more  and  more, 
accumulated.  The  quantity  of  mateiials  which  the  fame  ni.mber 
of  people  can  work  up,  increafes  in  a  great  proportion  as  labour 
comes  to  be  more  and  more  fubdivided ;  and  as  the  operations  of 
each  workman  are  gradually  reduced  to  a  greater  degree  of  fimpli- 
city,  a  variety  of  new  machines  come  to  be  invented  for  facilitating 
and  abridging  thofe  operations.  As  the  divifion  of  labour  advances, 
therefore,  in  order  to  give  conftant  employment  to  an  equal  num- 
ber of  workmen,,  an  equal  ftock  of  provifions,  and  a  greater  ftock 
of  materials  and  tools  than  what  would  have  been  necedary  in  a 
ruder  ftate  of  things,  muft  be  accumulated  beforehand.  But  the 
number  of  workmen-  in.  every  bianch  of  bufinefs  generally  increafes 
with  the  divifion  of  labour  in  that  branch,  or  rather  it  is  the 
increafe  of  their  number  which  enables  them  to  clafs  and  fubdivide 
themfelve.s  in  this  manner.. 


As  the  accumulation  of  ftock  is  previoufly  necefTary  for  carrying 

on  this  great  improvement  in  the  produftivc  powers  of  labour^ 

fo  that  accumulation  naturally  leads  to  this  improvement.     The 

7'  ,     perfon 


THE    WEALTH    OF    NATIONS. 


3*? 


I 


perfon  who  employs  his  ftock  in  maintaining  labour,  neceflarily  Tntioduaion. 
wiflies  to  employ  it  in  fuch  a  manner  as  to  produce  as  great  a 
quantity  of  work  as  poffible.  He  endeavours,  therefore,  both  to 
make  among  his  workmen  the  moft  proper  diftribution  of  employ- 
ment, and  to  furnifh  them  with  the  beft  machines  which  he  can 
either  invent  or  aflford  to  purchaie.  His  abilities  in  both  thefe 
refpefts  are  generally  in  proportion  to  the  extent  of  his  ftock,  or 
to  the  number  of  people  whom  it  can  employ.  The  quantity  of 
induftry,  therefore,  not  only  increafes  in  every  country  with  the 
increafe  of  the  ftock  which  employs  it,  but,  in  confequence  of 
that  increafe,  the  fame  quantity  of  induftry  produces  a  much  greater 
quantity  of  work. 

Such  are  in  general  the  tfk6is  of  the  increafe  of  ftock  upon 
induftry  and  its  produflive  powers. 

In  the  following  k  I  have  endeavoured  to  explain  the  nature 
of  ftock,  the  efFeds  of  its  accumulation  into  capitals  of  different 
kinds,  and  the  efFefts  of  the  different  employments  of  thofe  capi- 
tals. This  book  is  divided  into  five  chapters.  In  the  firft  chapter, 
I  have  endeavoured  to  fhow  what  are  the  different  parts  or  branches 
into  which  the  ftock,  cither  of  an  individual,  or  of  a  great  fociety, 
naturally  divides  itfelf.  In  the  fecond,  I  have  endeavoured  to 
explain  the  nature  and  operation  of  money  confidered  as  a  particu- 
lar branch  (^  the  general  ftock  of  the  fociety.  The  ftock  which 
is  accumulated  into  a  capital,  may  eithet  be  employed  by  the  perfon 
to  whom  it  belongs,  or  it  may  be  lent  to  fome  other  perfon.  In 
the  third  and  fourth  chapters,  I  have  endeavoured  to  examine  the 
manner  in  which  it  operates  in  both  thefe  fituations.  The  fifth 
and  laft  chapter  treats  of  the  different  efFe6ls  which  the  different 
employments  of  capital  immediately  produce  upon  the  quantity 
both  of  national  induftry,  and  of  the  annual  produce  of  land  and 
labour. 


Vox.  I. 


U  u 


m 


m 


i 


PI 

i 


;3<^ 


THE    NATURE    AND    CAUSES    OF 


CHAP.      I. 


'  Of  the  Divijion  of  Stock. 

WHEN  the  (lock  which  a  man  poffeffes  is  no  more  than 
fufficient  to  maintain  him  for  a  few  days  or  a  few  weeks, 
he  feldom  thinks  of  deriving  any  revenue  from  it.  He  confumes  it 
as  fparingly  as  he  can,  and  endeavours  by  his  labour  to  acquire 
fomething  which  may  fupply  its  place  before  it  be  confumed  alto- 
gether. His  revenue  is,  in  this  cafe,  derived  from  his  labour 
only.  This  is  the  ftate  of  the  greater  part  of  the  labouring  poor 
in  all  countries.  . 


.    But  when  he   pofTefTes  flock   fufficient  to  maintain    him  for 
months  or  years,  he  naturally  endeavours  to  derive  a  revenue  from 
the  greater  part  of  it  j  referving  only  fo  much  for  his  immediate 
confumption  as  may  maintain  him  till  this  revenue  begins  to  come 
in.     His  whole  ftock,  therefore,  is  didinguilhed  into  two  parts. 
That  part  which,  he  ejipedls,  is  to  afford  him  this  revenue  is  called 
his  capital.     The  other  is  that  which  fupplies  his  immediate  con- 
fumption }  and  whicii  confifts  either,  firft,  in  that  portion  of  his 
whole  ftock  which  was  originally  referved  for  this  purpofe;   or, 
fecondly,  in  his  revenue,  from  whatever  fource  derived,,  as  it  gra- 
dually comes  in  ;  or,  thirdly,  in  fuch  things  as  had  been  purchafed 
by  either  of  thefe  in  former  years,  and  which  are  not  yet  entirely 
confumed ;  fuch  as  a  ftock  of  cloaths,  houlhold  furniture,  and  the 
like.     In  one,  or  other,  or  all  of  thefe  three  articles,  confifts  the 
ftock  which  men  commonly  refcrve  for  their  own  immediate  con- 
fumption. 

7 

There 


THE     WEALTH     OF    NATIONS. 

E  are  two  different  ways  in  which  a  capital  n: 
ployed  fo  as  to  yield  a  revenue  or  profit  to  its  employer.  ;> 


33» 
There  are  two  different  ways  in  which  a  capital  may  be  em-    CHAP. 


First,  it  may  be  employed  in  raifing,  manufa£luring,  or  pur- 
chafing  goods,  and  felling  them  again  with  a  profit.  The  capital 
employed  in  this  manner  yields  no  revenue  or  profit  to  its  employer, 
while  it  either  remains  in  his  pofleflion  or  continues  in  the  fame 
(hape.  The  goods  of  the  merchant  yield  him  no  revenue  or  profit 
till  he  fells  them  for  money,  and  the  money  yields  him  as  little  till 
it  is  again  exchanged  for  goods.  His  capital  is  continually  going 
from  him  in  one  (hape,  and  returning  to  him  in  another,  and  it  is 
only  by  means  of  fuch  circulation  or  fucceflive  exchanges  that  it 
can  yield  him  any  profit.  Such  capitals,  therefore,  may  very 
properly  be  called  circulating  capitals. 

Secondly,  it  may  be  employed  in  the  improvement  of  land, 
in  the  purchafe  of  ufeful  machines  and  inflruments  of  trade,  or 
in  fuch-like  things  as  yield  a  revenue  or  profit  without  changing 
mafters  or  circulating  any  further.  Such  capitals,  therefore,  may 
very  properly  be  called  fixed  capitals.  , 

Different  occupations  require  very  difte/^nt  proportions  be- 
tween the  fixed  and  circulating  capitals  employed  in  them. 

The  capital  of  a  merchant,  for  example,  is  altogether  a  circu- 
lating capital.  He  has  occafion  for  no  machines  or  inftruments 
of  trade,  unlefs  his  fliop  or  warehoufe  be  confidered  as  fuch. 

Some  part  of  the  capital  of  every  mailer  artificer  or  manufac- 
turer muft  be  fixed  in  the  inftruments  of  his  trade.  This  part, 
however,  is  very  fmall  in  fomc,  a^'d  veiy  great  in  others.     A  niafter 

U  u  2  taylor 


33* 


THE    NATURE    AND    CAUSES    OF 


BOOK  taylor  requires  no  other  infti'umcnts  of  trade  but  a  parcel  of  needles. 
Thofc  of  tlie  matter  flioemaker  are  a  little,  though  but  a  very 
little,  more  expenfive.  Thofe  of  the  weaver  rife  a  good  deal  above 
thofe  of  the  flioemaker.  The  far  greater  part  of  the  capital  of 
all  fuch  matter  artificers,  however,  is  circulated  either  in  the  wagea 
c  their  workmen,  or  in  the  price  of  their  tnatenals,  and  repaid  with 
a  profit  by  the  price  of  the  work,  .  ,,  ^  ^  . 

In  other  works  a  much  greater  fixed  capital  is  inquired.  In  a 
great  iron-work,  for  example,  the  furnace  for  melting  the  ore, 
the  forge,  the  flitt-mill,  are  inttruments  of  trade  which  cannot  be 
erefled  without  a  veiy  gieat  expence.  In  coal-works  and  mines 
bf  every  kind,  the  machinery  neceffary  both  for  drawing  out  the 
water  and  for  other  purpofes,  is  frequently  ttill  more  expenfive. 


That  part  of  the  capital  of  the  farmer  which  is  employed  in 
the  inttruments  of  agriculture  is  a  fixed  ;  that  which  is  employed 
in  the  wages  and  maintenance  of  his  labouring  fervants,  is  a  circu- 
lating capital.     He  makes  a  profit  of  the  one  by  keeping  it  in  his 
own  poneffion,  and  of  the  other  by  parting  with  it.     The  price  or 
value  of  his  labouring  cattle  is  a  fixed  capital  in  the  fame  manner 
as  that  of  the  inftrumenis  of  hufl)andry  :    Their  maintenance  is  a 
circulating  capital  in  the  fame  manner  as  that  of  the  labouring 
fervants.     The  farmer  makes  his  profit  by  keeping  the  labouring 
cattle,  and  by  parting  with  their  maintenance.     Both  the  price  and 
the  maintenance  of  the  cattle  which  are  bouglit  in  and  fattened, 
not  for  labour,  but  for  fale,  are  a  circulating  capital.     The  farmer 
makes  his  profit  by  parting  with  them.     A  flock  of  ftieep  or  a  herd 
of  cattle  tiiat,  in  a  breeding  country,   is  bought  in,  neither  for 
labour  nor  for  fale,  but  in  order  to  make  a  profit  by  their  wool, 
by  their  milk,  and  by  their  increafe,  is  a  fixed  capital.     The  profit 
is  made  by  keeping  them.      Their  maintenance  is  a  circulating 

capital. 


THE    WEALTH    OF    NATIONS. 


331 


capital.     The  profit  is  made  by  parting  with  it  j  and  it  comes   C  HA  P. 

back  with  both  its  own  profit,  and  the  profit  upon  the  whole  price 

of  the  cattle,  in  the  price  of  the  wool,  the  milk,  and  the  increafe. 

The  whole  value  of  the  feed  too  is  properly  a  fixed  capital.     Tho* 

it  goes  backwards  and  forwards  between  the  ground  and  the  granary. 

it  never  changes  mafters,  and  therefore  does  not  properly  circulate. 

The  farmer  makes  his  profit,  not  by  its  fale,  but  by  its  increafe. 


The  general  ftock  of  any  country  or  fociety  is  the  fame  with 
that  of  all  its  inhabitants  or  members,  and  therefore  naturally 
divides  itfelf  into  the  fame  three  portions,  each  of  which  has  a  dif- 
tin6l  funftion  or  office. 

The  Firft,  is  that  portion  which  is  referved  for  Immediate  con- 
fumption,  and  of  which  the  chaiaderiftick  is,  that  it  affords  no 
revenue  or  profit.  It  confiflf  in  the  ftock  of  food,  cloaths,  houf- 
hold  furniture,  &c.  which  hive  been  purchafed  by  their  proper 
confumers,  but  which  are  not  yet  entirely  confumed.  The  whole 
ftock  of  mere  clvvcUing  houfes  too  fubfifting  at  any  one  time  in  the 
country,  make  a  part  of  this  firft  portion.  The  ftock  that  is  laid 
out  in  a  houfe,  if  it  is  to  be  the  dwelling  houfe  of  the  propiictor, 
ceafes  from  that  moment  to  lave  in  the  fun£lion  of  a  capital,  or  to 
afford  any  revenue  to  its  owner.  A  dwelling  houfe,  as  fuch,  con- 
tributes nothing  to  the  revenue  of  its  inhabitant ;  and  though  it 
is,  no  doubt,  extremely  ufcful  to  him,  it  is  as  his  cloaths  and 
houflio'd  furniture  nre  ufct'ul  to  him,  which,  however,  make  a 
part  of  his  cxpencc,  and  not  of  his  revenue.  If  it  is  to  be  lect  to 
a  tenant  for  rent,  as  the  houfe  itfelf  can  produce  nothing,  the 
tenajit  miift  always  pay  the  rent  out  of  fome  other  revenue  which 
he  derives  cither  from  labour,  or  ftock,  or  land.  Though  a  houfe, 
therefore,  may  yield  a  revenue  to  its  proprietor,  and  thereby  ferve- 
ki  the  funftion  of  a  capital  to  him,  it  cannot  yield  any  to  the 

i^jmv  y  .  publick,. 


m 


334 


THE    NATURE     AND    CAUSES    OF 


J*  ^P  K  pvtblick,  nor  fervc  in  the  fundlion  of  a  capital  to  it,  and  the  revenue 
of  the  whol«  body  of  the  peoi>le  can  never  be  in  the  fmallefl  degree 
incrcafed  by  Lt.  Cloaths,  and  houHiold  furniture,  in  the  fame 
manner,  fometimcs  yield  a  revenue,  and  thereby  fcive  in  the  func- 
tion of  a  capital  to  particular  perfona.  In  countries  where  maf- 
querndes  are  common,  it  is  a  trade  to  lett  out  mafquerade  drefles 
for  a  night.  Upholftercrs  frequently  lett  furniture  by  the  month 
or  by  the  year.  Undertakers  Ictt  the  furniture  of  funerals  by  the 
day  and  by  the  week.  Many  people  lett  furniftied  houfcs,  and  get 
a  rent,  not  only  for  the  ufe  of  the  houfe,  but  for  that  of  the  fur- 
niture. The  revenue,  however,  which  is  derived  from  fuch  tilings, 
nnift  always  be  ultimately  drawn  from  fome  other  lource  of  reve- 
nue. Of  all  parts  of  the  ftock,  either  of  an  individual,  or  of  a 
focicty,  refcrved  for  immediate  confumptlon,  what  is  laid  out  in 
lioufcs  is  moft  flovvly  confumed.  A  ftock  of  cloaths  may  lad 
feveral  years :  a  ftock  of  furniture  half  a  century  or  a  century : 
but  a  ftock  of  houfcs,  well  built  and  propcily  taken  care  of,  may 
laft  many  centuries.  Though  the  period  of  their  total  confump- 
tion,  however,  is  more  diftant,  they  are  ftill  as  really  a  ftock  rc- 
ferved  for  iiimicdiatc  confumptlon  as  either  cloaths,  or  houftiold 
furniture. 


•irf 


Thf,  Second  of  the  three  portions  into  which  the  general  ftock 
of  the  focicty  divides  itfelf,  is  the  fixed  capital;  of  which  the  cha- 
rafteriftick  is,  that  it  aftbrdsa  revenue  or  profit  without  circulating 
or   changing  matters.      It  confifts  chiefly   of  the  four  following 


articles : 


MK' 


First,  of  all  ufeful  machines  and  inftruments  of  trade  which 
facilitate  and  abridge  labour  : 


Secondly,    of  all   thofe   profitable  buildings   which   are  the 
means  of  procuring  a  revenue,  not  only  to  their  proprietor  who 

letts 


THE    WEALTH    OF    NATIONS. 


335 


ktts  them  for  a  rent,  but  io  the  pcrfon  who  poflcflcs  them  and  C  HA  P. 
pays  that  rent  for  them  j  fuch  as  Hiops,  warehoufes,  workhoufes, 
farmhoufes,  with  all  their  necefTary  buildings,  ftables,  granaries, 
ice,  Thcfe  are  very  different  from  mere  dwelling  houfcs.  They 
are  a  fort  of  inftruments  of  trade,  and  may  be  confidercd  in  the 
fame  light : 

Thirdly,  of  the  improvements  of  land,  of  v. hat  has  been 
profitably  laid  out  in  clearing,  draining,  enclofmg,  manuring,  and 
reducing  it  into  the  condition  m  -ft  proper  for  tillage  and  culture. 
An  improved  farm  may  very  juftly  be  regarded  in  the  fame  light 
as  thofo  ufeful  machines  which  facilitate  an  1  abridge  labour,  and 
by  means  of  which,  an  cqifel  circulating  capital  ca  ,  afford  a  much 
greater  revenue  to  its  employer.  An  improved  Jurm  is  equally 
advantageous  and  more  durable  than  anv  of  tliofo  machines,  fre- 
quently requiring  no  other  repairs  than  t.ie  Moft  profitabl*.  applica- 
tion of  the  farmer's  capital  employed  in  cultivating  it : 

.        .  ...  .  M    ,,'"■         - 

Fourthly,  of  the  acquired  and  ufeful  abilities  of  sill  the  inha- 
bitants or  members  of  the  lucicty.  The  acquifition  of  fuch  talents, 
by  the  maintenance  of  the  acquirer  duiiug-  his  education,  ftudy,  or 
apprenticelhip,  always  cofts  a  real  expence,  which  is  a  capital 
fixed  and  realized,  as  it  were,  in  his  perfon.  Thofe  talents,  as 
they  make  a  part  of  his  fortune,  fo  do  they  likewife  of  that  of  the 
focicty  to  which  he  belongs.  The  improved  dexterity  of  a  work.- 
man  may  be  confidercd  in  the  lame  light  as  a  machine  or  indrui- 
ment  of  trade  which  facilitates  and  abridges  labour,  and  which, 
though  it  cofts  a  certuui  expence,  repays  that  expence  with  a 
profit. 


:i  ,i'«fVf,. 


.•'■ 


-'■1 


The  Third  and  laft  of  the  three  portions  into  which  the  general 
ftock  of  the  fociety  naturally  divides, itfelf,  is  the  circulating  capital; 


m 


336 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K  of  which  the  chara6teriftick  is,  that  it  affords  a  revenue  only  by 
circulating  or  changing  mafters.  It  is  compofed  likewife  of  four 
parts: 

First,  of  the  money  by  means  of  which  all  the  other  three  are 
circulated  and  diflributed  to  their  proper  ufers  and  confumers  : 

SecondlV,  of  the  ftock  of  provilions  which  are  in  the  pof- 
feffion  of  the  butcher,  the  grazier,  the  farmer,  the  corn-merchant, 
the  brewer,  &c,  and  from  the  fale  of  which  they  expeft  to  derive 
a  profit:  .        »    •        * 


]:.' 


Vi  I 


Thirdly,  of  the  materials,  whether  altogether  rude,  or  more 
or  lefs  manufactured,  of  cloaths,  furniture,  and  building,  which 
are  not  yet  made  up  into  any  of  thofe  three  fhapes,  but  which 
remain  in  the  hands  of  the  growers,  the  manufacturers,  the  mercers 
and  drapers,  the  timber-merchants,  the  carpenters  and  joiners,  the 
brickmakers,  &c. 


Fourthly,  and  laftly,  of  the  work  which  is  made  up  and 
^ompleated,  but  which  is  ftill  in  the  hands  of  the  merchant  or 
manufacturer,  and  not  yet  difpofed  of  or  diitributed  to  the  proper 
ufers  and  confumrrsj  fuch  as  the  finirtied  work  which  we  fre- 
quently find  ready  made  in  the  (hops  of  the  fmith,  the  caWnet- 
maker,  the  goldfmith,  the  jeweller,  the  china- meichant,  &c.  The 
circulating  capital  confifts,  in  this  manner,  of  the  provifions,  ma- 
terials, and  finished  work  of  all  kinds  that  are  in  the  hands  of  their 
refpeCtive  dealers,  and  of  the  money  that  is  neceflary  for  circulating 
and  diftributing  them  to  thofe  who  are  finally  to  ufe  or  to  confumc 
them. 

Of 


THE    WEALTH    OF    NATIONS. 


337 


Of  theffe  four  parts  three,  provifions,  materials,  and  finlflicd   CHAP, 
work,  are,  either  annually,  or  in  a  longer  or  Ihorter  period,  regu- 
larly withdrawn  from  it,  and  placed  either  in  the  fixed  capital  or 
in  the  (lock  rcferved  for  immediate  confumption. 


Every  fixed  capital  is  both  originally  derived  from,  and  requires 
to  be  continually  fupported  by  a  circulating  capital.  All  ufeful 
machines  and  inftruments  of  trade  are  originally  derived  from  a 
circulating  capital,  which  furnifhes  the  materials  of  which  they  are 
made,  and  the  maintenance  of  the  workmen  who  make  them. 
They  require  too  a  capital  of  the  fame  kind  to  keep  them  in  con- 
ftant  repair. 

No  fixed  capital  can  yield  any  revenue  but  by  means  of  a  circu- 
lating capital.  The  moft  ufeful  machines  and  inftruments  of  trade 
will  produce  nothing  without  the  circulating  capital  which  affords 
the  materials  they  are  employed  upon,  and  the  maintenance  of  the 
workmen  who  employ  them.  Land,  however  improved,  will 
yield  no  revenue  without  a  circulating  capital,  which  maintains  tlie 
labourers  who  cultivate  and  colleft  its  produce. 


To  maintain  and  augment  the  (lock  which  may  be  referved  for 
immediate  confumption,  is  the  fole  end  and  purpofe  both  of  the 
fixed  and  circulating  capitals.  It  is  this  ftock  which  feeds,  cloaths, 
and  lodges  the  people.  Their  riches  or  poverty  depends  upon  the 
abundant  or  fparing  fupplies  which  thofe  two  capitals  can  afford  to 
the  ftock  referved  for  immediate  confumption. 


So  great  a  part  of  the  circulating  capital  being  continually  with- 
drawn from  it  in  order  to  be  placed  in  the  other  two  branches  of 
the  general  ftock  of  the  fociety,  it  muft  in  its  turn  require  continual 

-Vol.  I,  X  X  fupplies. 


338 


THE    NATURE    AND    CAUSES     OF 


B  O  O  K  fupplies,  without  which  it  would  foon  ceafe  to  exift.  Thele  fup- 
plies  are  principally  drawn  from  three  fources,  the  produce  of  land, 
of  mines,  and  of  fiflieriea.  Thefe  afford  continual  fupplies  of  pro- 
vifions  and  materials,  of  which  part  is  afterwards  wrought  up  into 
finiflied  work,  and  by  which  are  replaced  the  provifions,  mate- 
rials, and  finifhed  work  continually  withdrawn  from  the  circulating 
capital.  From  mines  too  is  drawn  what  is  neceflary  for  maintain- 
ing and  augmenting  that  part  of  it  which  confifts  in  money.  For 
though,  in  the  ordinary  courfe  of  bufmefs,  this  part  is  not,  like 
the  other  three,  neceflarily  withdiawn  from  it,  in  order  to  be  placed 
in  the  other  two  branches  of  the  general  (lock  of  the  fociety,  it 
muft,  however,  like  all  other  things,  be  wafted  and  worn  out  at 
laft,  and  fometimes  too  be  either  loft  or  fent  abroad,  and  muft, 
therefore,  require  continual,  though,  no  doubt,  much  fmaller 
fupplies. 


Land,  mines,  and  fiftieries,  require  all  both  a  fixed  and  a  cir- 
culating capital  to  cultivate  them  j  and  their  produce  replaces  with 
a  profit,  not  only  thofe  capitals,  but  all  the  others  in  the  fociety. 
Thus  the  farmer  annually  replaces  to  the  manufa6lurer  the  provi- 
fions which  he  had  confumed  and  the  materials  which  he  had 
wrought  up  the  year  before  -,  and  the  manufacturer  replaces  to  the 
farmer  the  finiftied  work  which  he  had  wafted  and  worn  out  in  the 
fame  time.  This  is  the  real  exchange  that  is  annually  made  between 
thofe  two  orders  of  people,  though  it  feldom  happens  that  the  rude 
produce  of  the  one  and  the  manufaftured  produce  of  the  other, 
are  direiSlly  bartered  for  one  another ;  becaufe  it  feldom  happens 
that  the  farmer  fells  his  corn  and  his  cattle,  his  flax  and  his  wool, 
to  the  very  lame  perfon  of  whom  he  chufes  to  purchafe  the  cloaths, 
furniture,  and  inftruments  of  trade  which  he  wants.  He  fells, 
therefore,  his  rude  produce  for  money,  with  which  he  can  purchafe^ 
wherever  it  is  to  be  had,  the  manufactured  produce  he  has  occafion 

for. 


THE    WEALTH     CF    NATIONS. 


339 


for.    Land  even  replaces,  in  part  at  leaft,  the  capitals  with  which   C  HA  P. 
fiflieries  and  mines  are  cultivated.     It  is  the  produce  of  land 
which  draws  the  fifti  from  the  waters;    and  it  is  the  produce 
of  the  furface  of  the  earth  which  extracts  the  minerals  from  its 
bowels.    '  ,.  ,'  ;        :      '-        '   , 


The  produce  of  land,  mines,  and  fiflieries,  when  their  natural 
fertility  is  equal,  is  in  proportion  to  the  extent  and  proper  appli- 
cation of  the  capitals  employed  about  them.  When  the  capitals 
are  equal  and  equally  well  applied,  it  is  in  jnoportion  to  their 
natural  fertility.     :    ■  )     »  i  -  v  ■, 


,.i-WtC" 


'\i-i':.. 


In  all  countries  where  there  is  tolerable  fecurity,  every  man  of 
common  undcrftanding  will  endeavour  to  employ  whatever  flock  he 
can  command  in  procuring  either  prefent  enjoyment  or  future  profit. 
If  it  is  employed  in  procuring  prefent  enjoyment,  it  is  a  ftock  refcrved 
for  immediate  confumption.  If  it  is  employed  in  procuring  future 
profit,  it  muft  procure  this  profit  either  by  flaying  with  him,  or  by 
going  from  him.  In  the  one  cafe  it  is  a  fixed,  in  the  other  it  is  a 
circulating  capital.  A  man  mufl  be  perfedlly  crazy  who,  where  there 
is  tolerable  fecurity,  does  not  employ  all  the  flock  which  he  com- 
mands, whether  it  be  his  own  or  borrowed  of  other  people,  in 
fome  one  or  other  of  thofe  three  ways. 


:  i 


In  thofe  unfortunate  countries,  indeed,  where  men  are  continually 
afraid  of  the  violence  of  their  fuperiors,  they  frequently  bury  and 
conceal  a  great  part  of  their  flock,  in  order  to  have  it  always  at  hand 
to  carry  with  thern  to  fome  place  of  fafety  in  cafe  of  their  being 
threatened  with  any  of  thofe  difaflers  to  which  they  confider  them- 
felvqs  as  at  all  times  expofed.  This  is  faid  to  be  a  common  praclice 
in  Turky,  in  Indoflan,  and,  I  believe,  in  mofl  other  governments 

X  X  2  of 


340 

BOOK 
II. 


THE    NATURE    AND    CAUSES    OP 

of  Afia.  It  feems  to  have  been  a  common  praftice  among  our  anceC. 
tors  during  the  violence  of  the  feudal  government.  Treafure-trove 
was  inthoie  times  confideredas  no  contemptible  part  of  the  revenue 
of  the  greateft  fovereigns  in  Europe.  It  confided  in  fuch  treafur^  a» 
was  found  conceal*  d  in  the  earth,  and  to  which  no  particul;  r  perfon 
could  prove  any  right.  This  was  regarded  in  thofe  times  as  fo  im- 
portant an  objevii,  tl.at  it  was  always  confidered  as  belonging  to  the 
fovereign,  and  neither  to  the  frnder  nor  to  th*;  proprietor  of  the  land, 
unlefs  the  right  to  it  had  been  convey  ~d  to  the  latter  by  an  exprefs 
claufe  in  his  charter.  It  was  put  upon  the  fame  footing  with  gold 
and  niver  mines,  which,  without  a  ipecial  claufe  in  the  charter,  were 
never  fuppofed  to  be  comprehended  in  the  general  grant  of  the  lands, 
though  mines  of  lead,  copper,  tin,  and  coal  were,  as  things  of 
fmaller  confequence. 


i  :.  i, 


(. 


*  '    ^  .. 

.'  r;  v.;    .      ' 


M.'v 


f 


ViU'.-i' 


^v\<-i-y^  *■:•  ,:^vr    .b. 


J'.  ''■    ' 


THE    WEALTH    OF    NATIONS. 


ui 


C  H  A  P.     IL 

Of  Money  conjidered  as  a  particular  Branch  of  the  general  Stock 

.  of  the  Society t  or   of  the  Expence  of  maintaining  the  National 

Capital,  j 

IT  has  been  ftieWn  in  the  firft  book,  that  the  price  of  the  greater 
part  of  commodities  refolves  itfelf  into  three  part**,  of  w^ich 
one  pays  the  wages  of  the  labour,  another  the  profits  of  the  ftock, 
and  a  third  the  rent  of  the  land  which  had  been  employed  in  pro- 
ducing and  bringing  them  to  market :  that  there  are,  indeed,  fome 
commodities  of  which  the  price  is  made  up  of  two  of  thofe  parts 
only,  the  wages  of  labour,  and  the  profits  of  ftock :  and  a  very 
few  in  which  it  confifts  altogether  in  one,  the  wages  of  labour : 
but  that  the  price  of  every  commodity  neceffarily  refolves  itfelf  into 
fome  one  or  other  or  all  of  thefe  three  parts ;  every  part  of  it  which 
goes  neither  to  rent  nor  to  wages,  being  neceffarily  profit  to  fome- 
body.    v*,.,,t,:. .     :  ■•,■,  ...      ',  ■  ,;  •■.]■ 

Si  NCR  this  is  the  cafe,  it  has  been  obferved,  with  regard  to  eveiy 
particular  commodity,  taken  feparately;  it  muft  be  fo  with  re- 
gard to  all  the  commodities  which  compofe  the  whole  annual 
produce  of  the  land  and  labour  of  every  country,  taken  coinplexly. 
The  whole  price  or  exchangeable  value  of  that  annual  produce, 
muft  refolve  itfelf  into  the  fame  three  parts,  and  be  parcelled  out 
among  the  different  inhabitants  of  the  country,  either  as  the 
wages  of  their  labour,  the  profits  of  their  ftock,  or  the  rent  of 
their  land. 


CH 


But 


Lm  •      ,'.A  (.^  •* 


I'4f       • 

BOOK 

II. 


THE     NATURE    AND    CAUSES     OF 

But  though  the  whole  value  of  the  annual  produce  of  the  land 
and  labour  of  every  country,  is  thus  divided  among  and  conftitutes 
a  revenue  to  its  different  inhabitants,  yet  as  in  the  rent  of  a  pri- 
vate eft:ite  we  diftin,?jUifli  between  the  grofs  rent  and  tlie  neat  rent, 
fo  may  we  likewile  in  the  revenue  of  all  the  inhabitants  of  a  great 
country. 

The  grofs  rent  of  a  private  eftite  cotnpiehenJs  whatever  is  paid 
by  the  farmer:  the  neat  rent,  what  remains  free  to  the  landlord, 
after  dedu6ling  the  exponce  of  i  umagcment,  of  repairs,  and  all 
other  neceflary  charges;  or  what,  without  hurting  hi?  tlla  .;,  h-; 
can  afford  to  place  in  his  fiock  refervcd  for  immediate  confuniption, 
or  to  (|)cnd  upon  his  table,  equipage,  tlie  ornaments  t  'lis  houfe 
and  furniture,  his  private  enjoyments  and  amufen;cnts.  His  real 
wealth  h  in  proportion,  not  to  his  grofs,  but  to  his  neat  rent. 

The  ;^fofs  revenue  of  all  the  inhabitants  of  a  great  country, 
comprehends  the  whole  annual  produce  of  their  land  and  labour : 
the  neat  revenue,  what  remains  free  to  them  after  dedu(51ing  the 
expence  of  maintaining;  firft,  their  fixed;  and,  fecondly,  their 
cii  culating  capital ;  or  what,  without  encroacl  ling  upon  their  ca- 
pital, they  can  place  in  their  flock  referved  for  immediate  con- 
fumption,  or  fpend  upon  their  fubfiftence,  ronveniencies  and 
amufements.  Their  real  wealth  too  is  in  proportion,  not  to  their 
grofs,  but  to  their  neat  revenue. 


<i> 


The  whole  expence  of  maintaining  the  fixed  capital,  mufl  evi- 
dently be  excluded  from  the  neat  revenue  of  the  fociety.  Neither 
the  materials  neceffaiy  for  fupporting  their  uieful  machines  and 
inlVmments  of  trade,  their  profitable  buildings,  &c.  nor  the  pro- 
duce of  the  labour  necefTary  for  fafhioniiig  thofe  materials  into  the 
proper  form,  can  ever  make  any  part  of  it.  The  price  of 
that  labour  may,  indeed,  make  a  part  of  it ;  as  the  workmen  fo 

employed 


.♦ 


THE    WEALTH    OF    NATIONS. 


343 


employed  may  place  the  whole  value  of  their  wages  in  their  ftock  C  HA  P. 
referved  for  immediate  confumption.  But  in  other  forts  of 
labour,  both  the  price  and  the  produce  go  to  this  ftock,  the  price 
to  that  of  the  workmen,  the  produce  to  that  of  other  people, 
whofe  fubfiftence,  conveniencies,  and  amufements,  are  augmented 
by  the  labour  of  thofs  workmen. 


The  intention  of  the  fixed  capital  is  to  increafe  the  produftive 
powers  of  labour,  or  to  enable  the  fame  number  of  labourers  to 
perform  a  much  greater  quantity  of  work.  In  a  farm  where  all 
the  neceffary  buildings,  fences,  drains,  communications,  &c.  are 
in  the  moft  perfeft  good  order,  the  fame  number  of  labourers  and 
labouring  cattle  will  raifc  a  much  greater  produce,  than  in  one 
of  equal  extent  and  equally  good  ground,  but  not  furnifhed  with 
equal  conveniencies.  In  manufaftures  the  fame  number  of  hands 
allifted  with  the  beft  machinery,  will  work  up  a  much  greater 
quantity  of  goods  than  with  more  imperfeft  inftruments  of  trade. 
The  expence  which  is  properly  laid  out  upon  a  fixed  capital  of 
any  kind,  is  always  repaid  with  great  profit,  and  increafes  the  an- 
nual produce  by  a  much. greater  value  than  that  of  the  fupport 
which  fuch  impiovemcnts  require.  This  fupport,  however,  ftill 
requires  a  certain  portion  of  that  produce.  A  certain  quantity  of 
materials,  and  the  labour  of  a  certain  number  of  workmen,  both 
of  which  might  have  been  immediately  employed  to  augment  the 
food,  cloathing,  and  lodging,  the  fubfillence  and  conveniencies  of 
the  fociety,  are  thus  diverted  to  another  employment,  highly  ad- 
vantageous indeed,  but  ftill  different  from  this  one.  It  is  upon 
this  account  that  all  fuch  improvements  in  mechanicks,  as  enable 
the  fame  number  of  workmen  to  perform  an  equal  quantity  of 
work,  with  cheaper  and  ftmpler  machinery  than  had  been  ufual 
before,  are  always  regarded  as  advantageous  to  every  fociety.  A 
certain  quantity  of  materials^  and  the  labour  of  a  certain  number 
7  «f' 


i 


344 


THE    NATURE    AND    CAUSES    OF 


BOOK  of  workmen,  which  had  before  been  employed  in  fupporting  a 
more  complex  and  expcnfive  machinery,  can  afterwards  be  ap- 
plied to  augment  the  quantity  of  work  which  that  or  any  other 
macliinery  is  ufeful  only  for  performing.  The  undertaker  of  feme 
great  manufaftory  who  employs  a  thoufand  a-ycar  in  the  main- 
tenance  of  his  machinery,  if  he  can  reduce  this  expence  to  five 
hundred,  will  naturally  employ  the  other  five  hundred  in  pur- 
chafing  an  additional  quantity  of  materials  to  be  wrought  up  by 
an  additional  number  of  workmen.  Tiie  quantity  of  that  work, 
therefore,  which  his  machinery  was  ufeful  only  for  performing, 
will  naturally  be  augmented,  and  with  it  all  the  advantage  and 
conveniency  which  the  fociety  can  derive  from  that  work. 

The  expence  of  maintaining  the  fixed  capital  in  a  great  country, 
may  very  properly  be  compared  to  that  of  repairs  in  a  private  eftate. 
The  expence  of  repairs  may  frequently  be  neceflary  for  fupporting 
the  produce  of  the  cflate,  and  confequently  both  the  grofs  and  the 
neat  rent  of  the  landlord.  When  by  a  more  proper  direftion, 
however,  it  can  be  diminiihed  without  occafioning  any  diminution 
of  produce,  the  grofs  rent  remains  at  leaft  the  fame  as  before,  and 
the  neat  rent  is  neceflaiily  augmented. 


But  though  the  whole  expence  of  maintaining  the  fixed  capital 
is  thus  neceflarily  excluded  from  the  neat  revenue  of  the  fociety, 
it  is  not  the  fame  cafe  with  that  of  maintaining  the  circulating  ca- 
pital. Of  the  four  parts  of  which  this  latter  capital  is  compofed, 
money,  provifions,  materials,  and  finifhed  work,  the  three  lafl, 
it  has  already  been  obferved,  are  regularly  withdrawn  from  it,  and 
placed  either  in  the  fixed  capital  of  the  fociety,  or  in  their  ftock 
referved  for  immediate  confumption.  Whatever  portion  of  thofe 
confumable  goods  is  not  employed  in  maintaining  the  former, 
goes  all  to  the  latter,  and  makes  a  part  of  the  neat  revenue  of  the 
'  fociety. 


\' 


THE    WEALTH    OF    NATIONS. 


345 


Ibciety.     The  maintenance  of  thofe  three  parts  of  the  circulating   CHAP, 
capital,   therefore,   withdraws  no  portion  of  the  annual  produce 
from  the  neat  revenue  of  the  fociety,  befides  what  is  neceflary  for 
maintaining  the  fixed  capital. 

The  circulating  cn;>ltal  of  a  fociety  is  in  this  refpefl  different 
from  that  of  an  individual.  That  of  an  individual  is  totally  ex- 
cluded from  making  any  part  of  his  neat  revenue,  which  mufl  con- 
fift  altogether  in  his  profits.  But  though  the  circulating  capital 
of  every  individual,  makes  a  part  of  that  of  the  fociety  to  which- 
he  belongs,  it  is  not  upon  that  account  totally  excluded  from 
making  a  part  likewife  of  their  neat  revenue.  Though  the  whole 
goods  in  a  merchant's  fhop  mult  by  no  means  be  placed  in  his 
own  flock  referved  for  immediate  confumption,  they  may  in  that 
of  other  people,  who  from  a  revenue  derived  from  other  funds, 
may  regularly  replace  their  value  to  him  together  with  its  profits, 
without  occafioning  any  diminution  either  of  his  capital  or  of. 
tlieir's.. 

MoNEV,  therefore,  is  the  only  part  of  the  circulating  capital 
of  a  fociety  of  which  the  maintenance  can  occafion  any  diminution 
in  their  neat  revenue. . 


The  fixed  capital,  and  that  part  of  the  circulating  capital  which 
confifts  in  money,  fo  far  as  they  affedl  the  revenue  of  the  fociety, 
bear  a  very  great  refemblance  to  one  another; 

First,  as  thofe  machines-  and  inflruments  of  trade,  &c.  re- 
quire a  certain  expence  fiifl  to  erc6l  them  and  afterwards  to  fuppoit 
them,  both  which  expences,  though  they  nrake  a  pait  of  the  groCs,. 
are  dedu<5lions  from  the  neat  revenue  of  the  fociety  j  fo  the  ftock 
of  money,  which  circulates  in  any  country  muft  require  a  certain  ■ 

Vol.  I,  Y  y  expence,. 


•46 


THE     NATURE    AND    CAUSES    OF 


BOOK  expence,  firft  to  colled  it,  and  afterwards  to  fupport  it,  both  which 
expences,  though  tliey  make  a  |)art  ok'  the  grofs,  are,  in  the  fame 
manner,  deductions  from  the  neat  revenue  of  the  fociety.  A  cer- 
tain quantity  of  very  valuable  materials,  gold  and  fUver,  and  of 
very  curious  labour,  inftead  of  augmenting  the  ftock  referved  for 
immediate  confumption,  the  fubfiftcnce,  conveniencies,  and  amufe- 
ments  of  individuals,  is  employed  in  fupporting  that  great  but 
«xpenfive  inftrumcnt  of  commerce,  by  means  of  which  every  indi- 
vidual in  the  fociety  has  his  fubfiflence,  conveniencies,  and  amufc- 
ments,  regularly  diftributcd  to  him  in  their  proper  propoitions. 

Secondly,  as  the  machines  and  inftruments  of  trade,  5cc.  which 
compofe  the  fixed  capital  either  of  an  individual  or  of  a  fociety, 
make  no  part  either  of  the  grofs  or  of  tlie  neat  revenue  of  citlierj 
{o  money,  by  means  of  which  the  whole  revenue  of  the  fociety  is 
regularly  diilributed  among  all  its  different  members,  makes  itfelf 
no  part  of  that  revenue.  The  great  wheel  of  circulation  is  alto- 
gether different  from  the  goods  which  arc  circulated  by  means 
of  it.  The  revenue  of  the  fociety  confifls  altogether  in  thofe  goods, 
and  not  in  the  wheel  which  circulates  them.  In  computing  either 
the  grofs  or  the  neat  revenue  of  any  fociety,  we  mufV  always,  from 
their  whole  annual  circulation  of  money  and  goods,  dedudt  the 
whole  value  of  the  money,  of  which  not  a  fmgle  farthing  can  ever 
make  any  part  of  either. 


It  is  the  ambiguity  of  language  only  which  can  make  this  pro- 
pofition  appear  either  doubtful  or  paradoxical.  When  properly 
explained  and  underflood,  it  is  almofl:  felf-evident. 

When  we  talk  of  any  particular  fum  of  money,  we  ibmetimes 
mean  nothing  but  the  metal  pieces  of  which  it  is  compofcd;  and 
fometimes  we  include  in  our  meaning  fome  obicure  reference  to 

the 


THE 


EALTH     OF    NATIONS. 


347 


the  goods  which  can  be  had  in  exchange  for  it,  or  to  the  power  of  C  HA  P. 
purchafing  which  the  pofTeffion  of  it  conveys.  Thus  when  we  fay, 
that  the  circulating  money  of  England  has  been  computed  at 
eighteen  millions,  we  mean  only  to  exprefs  the  amount  of  the 
metal  pieces*  which  fome  writers  have  computed  or  rather  have 
fiippofcd  to  circulate  in  that  country.  But  when  we  fay  that  a 
man  is  worth  fifty  or  a  hundred  pounds  a-year,  we  mean  com- 
monly to  exprefs  not  only  the  amount  of  the  metal  pieces  which 
arc  annually  pa"d  to  him,  but  the  value  of  the  goods  which  he  can 
annually  purohafe  or  confume.  We  mean  commonly  to  afcertain 
what  is  or  ought  to  bu  his  way  of  living,  or  the  quantity  and 
quality  of  the  necefTaiies  and  conveniencics  of  life  in  which  he 
can  with  propriety  indulge  himfelf. 

When,  by  any  particular  fum  of  money,  we  mean  not  only  to 
cxprck)  the  j mount  of  the  metal  pieces  of  which  it  is  compofed, 
but  to  include  in  its  iigiiification  fome  obfcure  reference  to  the 
goods  which  can  be  had  in  exchange  for  them,  the  wealth  or  re- 
venue which  it  in  this  caie  denotes,  is  equal  only  to  one  of  the  two 
values  which  are  thus  intimated  fomewhat  ambiguoufly  by  the 
fame  word,  and  to  the  latter  more  properly  than  to  the  former,, 
to  the  money's-worth  more  properly  than  to  the  money. 

Thus  if  a  guinea  be  the  weekly  pcnfion  of  a  particular  perfon,, 
he  can  in  the  courfe  of  the  week  puichafe  with  it  a  certain  quantity 
©f  fubfiftence,  convenicncies,  and  amufements.  In  proportion  as 
this  quantity  is  great  or  frnall,  fo  are  hi?  real  riches,  his  real  weekly 
revenue.  His  weekly  revenue  is  certainly  not  equal  both  to  the 
guinea,  and  to  what  can  be  purchaftd  v-tU  it,  but  only  to  one 
or  other  of  thofe  two  equal  values ;  and  to  the  latter  more  pro- 
perly than  to  the  former,  to  the  guinea's- worth  rather  than  to  the 
guinea.  •    i    -r.      .    »    '    ,     , 

'D'  -       ■  Y  y  3^         ■ 


l"" 


I'l-  . 


'% 


I 


348 


BOOK 

II. 


THE    NATURE    AND 


CAUb:.s 


■  r .v 


c 


Ik  tlic  pcnfion  of  fucli  a  pcrfon  was  jiaul  to  him,  not  *ii  goIJ, 
but  in  a  weekly  bill  for  a  guinea,  his  revenue  fuicly  would  not  I'u 
properly  cunfid:  in  the  piece  of  paper,  as  in  wliat  he  could  get  for 
it.  A  guinea  may  be  conlidcrcd  as  a  bill  for  a  certain  quantity 
of  neceflaiies  and  convcnicnd>;s  upon  all  the  tiadcfmen  in  the 
neighbourhood.  The  revenue  of  the  peifon  to  whom  it  is  paid, 
docs  not  fo  properly  conlill  in  the  piece  of  gold,  as  in  what  he  can 
get  for  it,  or  in  what  he  can  exchange  it  for.  If  it  could  be  ex- 
changed for  nothing,  it  woul.!,  like  a  bill  upon  a  bankrupt,  be  of 
X\Q  more  value  than  the  moil  ulclefi  piece  of  paper. 


Though  the  weekly,  or  yearly  revenue  of  all  the  different  in- 
habitants of  any  country,  in  the  fame  manner,  may  be,  and  in 
.reality  frequently  is  paid  to  them  in  money,  their  real  riches,  how- 
ever, the  real  weekly  or  yearly  revenue  of  all  of  them  taktn  to- 
gether, muft  always  be  great  or  fmall  in  proportion  to  the  quan- 
tity of  confumable  goods  which  they  can  all  of  them  purchafc  with 
this  money.  The  whole  revenue  of  all  of  them  taken  together  is 
evidently  not  equal  to  both  the  money  and  the  confumable  goods ; 
but  only  to  one  or  other  of  thofc  two  values,  and  to  the  latter 
more  properly  than  to  the  former. 

Though  wc  frequently,  therefore,  exprefs  a  perfon's  revenue 
by  the  metal  pieces  which  are  annually  paid  to  him,  it  is  becaufc 
the  amount  of  thofe  pieces  regulates  the  extent  of  his  power  of 
purchafing,  or  the  value  of  the  goods  which  he  can  annually  af- 
ford to  confume.  Wc  ftill  confider  his  revenue  as  confilHng  in 
this  power  of  purchafing  or  confuming,  and  not  in  the  pieces 
which  convey  k. 


But  if  this  is  fufRciently  evident  even  with  regard  to  an  indivi- 
dual, it  is  ftill  more  fo  with  regard  to  a  fociety.     The  amoimt  of 

.  the 


THE    WEALTH    OF    NATIONS. 


S49 


the  metal  pieces  wlilch  arc  annually  paid  to  an  individual,  is  often  C  H  Ai>. 
•precifcly  ctpial  to  his  revenue,  and  is  upon  that  account  the  Ihoiteft 
and  beft  exprcfTion  of  its  value.  Hut  the  amount  of  the  metal 
j)iccc8  which  circulate  in  a  focicty,  can  never  be  equal  to  the  re- 
venue of  all  its  members.  As  the  fame  guinea  which  pays  the 
weekly  pcnfion  of  one  man  to-day,  may  pay  that  of  ;inothcr  to- 
morrow, and  that  of  a  third  the  day  thereafter,  the  amount  of  the 
metal  pieces  which  annually  circulate  in  any  country,  muft  always 
•be  of  much  Icfs  value  than  the  whole  money  penfions  annually  paid 
•with  them.  But  the  power  of  purchafing,  the  goods  which  can 
fucccfTively  be  bought  with  the  whole  of  thofe  money  penfions  as 
they  are  fucceflTively  paid,  muft  always  be  precifcly  of  the  fame 
•value  with  thofe  penfions;  as  muft  likewifc  be  the  revenue  of  the 
different  nerfons  to  whom  they  are  paid.  That  revenue,  there- 
fore, car^ict  confift  in  thofe  metal  pieces,  of  which  the  amount  is 
•fo  much  inferior  to  its  value,  but  in  the  power  of  puichafing,  in 
the  goods  which  can  fuccefllvely  be  bought  with  them  as  they  cir- 
'culate  from  hand  to  hand. 


:li! 


Money,  therefore,  the  great  wheel  of  circulation,  the  great 
inftrument  of  commerce,  like  all  other  inftruments  of  trade, 
though  it  makes  a  part  and  a  very  valuable  part  of  the  capital, 
makes  no  part  of  the  revenue  of  the  fociety  to  which  it  belongs; 
and  though  the  metal  pieces  of  which  it  is  compofed,  in  the  courfe 
of  their  annual  circulation,  diftribute  to  every  man  the  revenue 
-which  properly  belongs  to  him,  they  make  themfelves  no  part  of 
that  revenue.  ■         '    •     •• 


Thirdly,  and  laftly,  the  machines  and  inftruments  of  trade, 
&c.  which  compofe  the  fixed  capital,  bear  this  further  rcfcmblance 
to  that  part  of  the  circulating  capital  which  confifts  in  money; 
that  as  every  faving  in  the  expence  of  ereding  and  fupporting  thofe 

machines. 


35° 

BOOK 
11. 


THE     NATURE     AND     CAUSES    OF 

machines,  which  does  not  diminifh  the  produ£Hve  powers  of  labour, 
is  an  improvement  of  the  neat  revenue  of  the  fociety ;  fo  every  faving 
in  the  expence  of  colle^ing  and  fupporting  that  part  of  the  cir- 
culating capital  which  coniifts  in  money,  is  an  improvemmt  o£ 
exactly  the  fame  kind. 

It  is  fufficiently  obvious,  and  it  has  partly  too  been,  explained' 
already,  in  what  manner  every  faving  in  the  expence  of  iUpportir  <■ 
the  fixed  capital  is  an  improvement  of  the  neat  revenue  of  the 
fociety.  The  whole  capital  of  the  undertaker  of  every  work  is  nccef- 
farily  divided  between  his  fixed  and  his  circulating  capital.  While  his 
whole  capital  remains  the  fame,  the  fmaller  the  one  part,  the  greater 
muft  necefTarily  be  the  other.  It  k  the  circulating  coital  which 
furnifhes  the  materials  and  wages  of  labour,  oad  puts  induftry  into 
motion.  Every  faving,  therefore,  in  the  expence  of  maintaining 
the  fixed  capital,  which  does  not  diminifli  the  productive  powers 
of  labour,  muft  increafe  the  fund  wlhich  puts  tnduftry  into  motion, 
and  confequently  the  annual  produce  of  land  and  labour,  the  real 
revenue  of  every  fociety. 

The  fubftitution  of  paper  in  the  room  of  gold  end  filver  money, 
replaces  a  very  expenfive  inftrument  of  commerce  with  one  much 
lefs  coftly,  and  fomedn>e8  equally  convenient.  Circidation  comes 
to  be  carried  on  by  a  new  wheel,  which  it  cofts  lefs  both  to  ere£t 
and  to  maintain  than  the  old  one.  But  in  ^at  manner  this  opera- 
tion is  performed,  and  in  what  manner  it  tends  to  increafe 
either  the  grofs  or  the  neat  revenue  of  the  fociety,  is  not 
altogether  fo  obvious,  and  may  therefore  require  fome  further 
explication.     -  ,         ,,;         ^    ., 

There  are  feveral  different  forts  of  paper  money ;  but  the  circu- 
lating notes  of  banks  and  bankers  are  the  fpecies  which  is  beft 
known,  and  which  feems  beft  adapted  for  this  purpofe. 

35  When 


THE    WEALTH    OF    NATIONS, 


35' 


When  the  people  of  any  paiticular  country  have  fuch  con- 
fidence in  the  fortune,  probity,  and  prudence  of  a  particular 
baxiker,  as  to  beljeve  that  he  is  always  ready  to  pay  upon  demand 
fuch  of  his  promifTary  notes  as  are  Ukely  to  be  at  any  time  prefented 
to  him ;  thofe  notes  come  to  have  the  fame  currency  as  gold  and 
filver  money,  from  the  confidence  that  fuch  money  can  at  any  time 
be  had  for  tijyem. 


A  PARTICULAR    banker  lends  among  his  cuilomers  his  own 
promifTary  notes,  to  the  extent,  we  ihall  fuppofe,  of  a  hundred 
thoufand  pounds.    As  thofe  notes  ferve  all  the  purpo&s  of  money, 
fan  debtors  pay  him  the  iame  intereft  as  if  he  Kad  lent  them  fo  much 
money.     This  intereft  is  the  fource  of  his  gain.    Though  (bme  of 
thofe  notes  are  continually  coming  back  upon  him  foi'  payment, 
part  of  them  continue  to  circulate  i'or  months  and  years  together. 
Though  he  has  generally  in  circulation,  therefore,  notes  to  the 
extent  of  a  hundred  thouiand  pounds,  twenty  thouland  pounds  in 
:gokl  and  £lver  may,  frequently,  be  a  fufficient  provifion  f(x-  an- 
swering occaiional  demands.     By  this  operation,  therefore,  twenty 
thoufand  pounds  in  gold  and  filver  perform  all  the  funftions  which 
a  hundred    thoufand    could    otherwile   have    performed.      The 
(ame  exchanges  m'^y  be  made,  the  fame  quantity  of  confumable 
goods  nuiy  be  circidated  and  diftributed  to  their  proper  confumers, 
by  means  of  his  promifTary  notes,  to  the  value  of  a  hundred  thou- 
fand pounds,  as  by  an  equal  value  of  gold  and  filver  money.  Eighty 
thoufand  pounds  of  gold  and  filver,  therefore,  can,  in  this  manner* 
be  fpared  from  the  circulation  of  the  country }  and  if  different 
operations  of  the  fame  kind,   fhould,  at  the  fame  time,  be  carried 
on  by  many  different  banks  and  bankers,  the  whole  circulation  may 
thus  be  condu6led  with  a  fifth  part  only  of  the  gold  and  filver  which 
would  otherwifc  have  been  requifite. 


.\y\. 


Let 


3Sa 


THE    NATURE    AND    CAUSES    Or 


BOOK 
II. 


Let  us  fuppofe,  for  example,  that  the  whole  circulating  moneys 
of  fome  particular  country  amounted,  at  a  particular  time,  to  one 
million  fterling,  that  fum  being  then  fufficient  for  circulating  the 
whole  annual  produce  of  their  land  and  labour.  Let  us  fuppofe 
too,  that  fome  time  thereafter,  different  banks  and  bankers  iffued. 
promiflary  notes,  payable  to  the  bearer,  to  the  extent  of  one 
million,  rcferving  in  their  different  coffers  two  hundred-  thoufand. 
pounds  for  anfwering  occafional  demands.  There  would  remain,, 
therefore,  in  circulation,  eight  hundred  thoufand  pounds  in  gold; 
and  filver,  and  a  million  of  bank  notes,  or,  eighteen  hundred 
thoufand  pounds  of  paper  and  money  togetlicr.  But  the  annual 
produce  of  the  land  and  labour  of  the  country  had  before  required: 
only  one  million  to  circulate  and  diflribute  it  to  its  proper 
eonfumers,  and  that  annual  produce  cannot  be  immediately  aug- 
mented by  thofe  operations  of  banking.  One  million,  therefore, , 
will  be  fufiicient  to  circulate  it  after  them.  The  goods  to  be  bought 
and  fold  being  precifely  the  fame  as  before,  the  fame  quantity  of 
money  will  be  fufficient  for  buying  and  felling  them.  The 
channel  of  circulation,  if  I  may  be  allowed  fuch  an  expreflion,  will 
remain  precifely  the  fame  as  before.  One  million  we  have  fuppofed 
fufficient  to  fill  that  channel.  Whatever,  therefore,  is  poured 
into  it  beyond  this  fum,  cannot  run  in  it,  but  muft  overflow..  One 
million  eight  humhed  thoufand  pounds  arc  poured  into  it.  Eight 
hundred  thoufand  pounds,  therefore,  mufl  overflow,  that  funi 
being  over  and  above  what  can  be  empjoyed  in  the  circulation  of  the 
country.  But  though  this  fum  cannot  be  employed  at  home,  it  is 
too  valuable  to  be  allovt'ed  to  lie  idle.  It  will,  therefore,  be  fcnt 
abroad,  in  order  to  feck  that  jirofitable  employment  which  it 
cannot  find  at  home.  But  the  paper  cannot  go  abroad  ;  becaufe  at 
a  di  (lance  from  the  banks  wliich  iffue  it,  and  from  the  country  in 
which  payment  of  it  can  be  exacted  by  law,  it  will  not  be 
received  in  common  payments.    Go^d  and  iilvcr,  therefore,  to  the. 

amount 


THE    WEALTH    OF    NATIONS. 


35S 


5  mount  of  eight  hundred  thoufand  pounds  will  be  fent  abroad,  and   C  HA  P. 
the  channel  of  home  circulation  will  remain  filled  with  a  million 
of  paper,  inflead  of  the  million  of  thofe  metals  which  filled  it 
before,    „.  ,.       ,  , 


mi 


But  though  fo  great  a  quantity  of  gold  and  filver  is  thus  fent 
abroad,  we  muft  not  i  nagine  that  it  is  fent  abroad  for  nothing,  or 
that  its  proprietors  make  a  prefect  of  it  to  foreign  nations.  They 
will  exchange  it  for  foreign  goods  of  fome  kind  or  another,  in  ^rder 
to  iui)ply  the  confumption  either  of  fome  other  foreign  count'}  > 
ot  their  own. 

If  thev  employ  it  in  purchafing  goods  in  one  foreign  country 
in  order  to  fupply  the  confumption  of  another,  or  in  what  is  called 
the  carrying  trade,  whatever  profit  they  make  will  be  an  addition  to 
the  neat  revenue  of  their  own  country.  It  is  like  a  new  fund,  created 
for  carrying  on  a  new  trade ;  domeftick  bufinefs  being  now  tranf- 
aded  by  paper,  and  the  gold  and  filver  being  converted  into  a  fund 
for  this  new  trade.  • 

I 

If  they  employ  it  in  purchafing  foreign  goods  for  home  con- 
fumption, they  may  either,  firil,  purchafe  fuch  good;  as  are  likely 
tobeconfumed  by  idle  people  who  '  voduce  nothing,  fuch  as  foreign 
wines,  foreign  filks,  &c.;  or,  Secondly,  they  may  purchafe  an 
additional  ftock  of  materials,  tools,  and  provifions,  in  order  to 
maintain  and  employ  an  adrlitional  nuiiiber  of  induftrious  people, 
who  re-produce,  with  a  pioiit,  the  value  of  their  annual  con- 
flimption.  v^j    .  .     ■  -  :    .;  .i^  ■   , 

So  far  as  it  is  employed  in  the  firft-  way,  it  promotes  prodigality, 
increales  expencc  and  confumption  without  inrrcafing  produdlion, 
or  eftabii.'hing  any  permanent  fu  id  for  fupporting  that  expencc, 
and  is  in  every  refpeft  hurtful  to  the  fbclety. 

Vol.  I.  2;  z  So 


^  11 

I  -1'! 


'*  ,H 


ii; 


-1*  • 


^^^4 


THE  NATURE  AND  CAUSES  OF 


BOOK  So  far  as  it  is  employed  in  the  fecond  Way,  it  prcjtfrtbtfes  induftry ; 
and  though  it  increafes  the  confamption  of  the  fociety,  it  provides 
a  permanent  fund  for  fupporting  that  confumplion,  the  people  wh6 
confume,  re-producing,  with  a  profit,  the  whole  value  of  theiV 
annual  confumption.  The  grofs  revenue  of  the  fociety,  the  annual 
produce  of  their  land  and  labour,  is  increafed  by  the  whole  value 
which  the  labour  of  thofe  woikmen  adds  to  the  rtiaterials  upon  whicli 
they  are  employed  j  and  their  neat  revenue  by  what  remains  of 
this  value,  after  dedu6ling  what  is  neceflary  fot  fupporting  the 
tools  and  inftruments  of  their  trade. 


That  the  greater  part  of  the  gold  and  filver  which,  being  forced 
abroad  by  thofe  operations  of  banking,  is  employed  in  purchafmg 
foreign  goods  for  home  confumption,  is  and  muft  be  employed 
in  purchafing  thofe  of  this  fecond  kind,  feems,  not  only  probable, 
but  almoft  unavoidable.     Though  fome  particular  men  may  fome- 
times  increafe  their  expence  very  confiderably  though  their  revenue 
does  not  increafe  at  all,  we  may  be  afTured  that  no  clafs  or  ordt* 
of  men  ever  does  fo  j  becaufe,  though  the  principles  of  common 
prudence  do  not  always  govern  the  condudt  of  every  individual, 
they  always  influence  that  of  the  majority  of  every  clafs  or  order. 
But  the  revenue  of  idle  people,    confidered  as  a  clafs  or  order, 
cannot,  in  the  frnalleft  degree,  bf   .icreafed  by  thofe  operations  of 
banking.     Their  expence  in  general,  therefore,  cannot  be  much 
increafed  by  them,  though  that  of  a  few  individuals  among  them 
axiay,  and  in  reality  fometimes  is.     The  demand  of  idle  people, 
therefore,   for  foreign  goods,  being  the  fame,  or  verv  nearly  the 
fame,  as  before,  a  very  fmall  part  of  the  money,  which  being  forced 
abroad  by  thofe  operations  of  banking,  is  employed  in  purchafing 
foreign  goods  for  home  confumption,  is  likely  ro  be  employed  in 
purchafing  thofe  for  their  ufe.     The  greater  part  of  it  will  naturally 

be 


THE    WEALTH    OP    NATIONS. 


35^ 


be  deftined  for  the  employment  of  induftry,  and  not  for  the  main-    C  H' A  P. 
tenance  of  idieaefs,  u- 

When  we  compute  the  quantity  of  induftry  which  the  cir- 
culating cap'tal  of  any  fociety  can  employ,  we  muft  always  have 
regard  to  thofe  parts  of  it  only,  which  confift  in  provifions,  mate- 
rials, and  finifhed  work :  the  other,  v/hich  confifts  in  money,  and 
which  ferves  only  to  circulate  thofe  three,  muft  always  be  deduced. 
In  order  to  put  induftry  into  motion,  three  things  are  requifite ; 
materials  to  work  upon,  ools  to  work  with,  and  the  wages  or 
recompence  for  the  fake  of  which  the  work  is  done.  Money  is 
neither  a  material  to  work  upon,  nor  a  tool  to  work  with ;  and 
though  the  wages  of  the  workman  are  commonly  paid  to  him  in 
money,  his  real  revenue,  like  that  of  all  other  men,  confifts,  not  in 
the  money,  but  in  the  money's  worth ;  not  in  the  metal  pieces,  but 
in  what  can  be  got  for  them. 

The  quantity  of  induftry  which  any  capital  can  employ,  muft, 
evidently,  be  equal  to  the  number  of  workmen  whom  it  can  fupply 
with  materials,  tools,  and  a  maintenance  fuitable  to  the  nature  of 
the  work.  Money  may  be  requifite  for  purchafmg  the  mate- 
rials and  tools  of  the  work,  as  well  as  the  maintenance  of  the 
workmen.  But  the  quantity  of  induftry  which  the;  vvliole  capital 
can  employ,  is  certainly  not  equal  both  to  the  money  which  pur- 
chafes,  and  to  the  materials,  tools,  and  maintenance,  which  are 
purchafed  witli  it ;  but  only  to  one  or  other  of  thofe  two  values, 
and  to  the  latter  more  propcily  than  to  ihe  former. 


m 


\i' 


»; 


When  paper  is  fubftituled  in  the  room  of  gold  and  filver  money^ 
the  quantity  of  the  materials,  tools,  and  maintenance,  which  the 
whole  circulating  capital  can  fupply,  may  be  increafed  by  the  whole 
value  of  gold  and  filver  which  ufed  to  be  employed  in  purchafmg 

r  ,  Z  z  2  them. 


t 


JS« 


BOOK 
II. 


THE  NATURE  AND  CAUSES  OF 

them.  The  whole  value  of  the  great  wheel  of  circulation  and 
diflribution^  is  added  to  the  goods  which  are  circulated  and 
diftributed  by  means  of  it.  The  operation,  in  fome  meafure,  re- 
fembles  that  of  the  undertaker  of  fome  great  work,  who,  in  confe- 
quence  of  fome  improvement  in  mechanicks,  takes  down  his  old 
machinery,  and  adds  the  difference  between  its  price  and  that  of 
the  new  to  his  circulating  capital,  to  the  fimd  from  which  he  fur- 
nifhes  materials  and  wages  to  his  workmen,  .  ' 


What  is  the  proportion  wliich  the  circulating  money  of  any 
country  bears  to  the  whole  value  of  the  annual  produce  circulated 
by  means  of  it,  it  is,  perhaps,  impoflible  to  determine.  It  has 
been  computed  by  different  authors  at  a  fiftli,  at  a  tenth,  at  a 
twentieth,  and  at  a  thirtieth  part  of  that  value.  But  how  fmall 
foever  the  proportion  which  tjie  circulating  money  may  bear 
to  the  whole  value  of  the  annual  produce,  as  but  a  part,  and  fre- 
quently but  a  fmall  part,  of  that  produce,  is  ever  deftined  for  the 
maintenance  of  induflry,  it  muft  always  bear  a  veiy  confiderable 
proportion  to  that  part.  When,  therefore,  by  the  fubftitution  of 
paper,  the  gold  and  filver  necelTary  for  circulation  is  reduced  to, 
perhaps,  a  fifth  part  of  the  former  quantity,  if  the  value  of  only 
the  greater  part  of  the  otlier  four-fifths  be  added  to  the  funds  which 
are  deftined  for  the  maintenance  of  induftry,  it  muft  make  a  very 
confiderable  addition  to  the  quantity  of  that  indulhy,  and,  con- 
fequently,  to  the  value  of  the  annual  produce  of  land  and. 
labour. 


An  operation  of  this  kmd  has,  within  thefe  five  and  twenty  or 
thiity  years,  been  performed  ui  Scotland,  by  the  ere6lion  of  new 
banking  companies  in  almoft  every  confiderable  town,  and  even  in 
fome  couiftiy  villages.  The  effeds  of  it  have  been  prccifcly  thofe 
above  defcdbed.     The  bufmefs  of  the  country  is  almoft  entirely 

,  .  carried 


THE    WEALTH    OF    NATIONS. 


357 


carried!  on  by  means  c^  tiie  paper  of  thoie  different  banking  CHAP, 
companies,  vrith  which  putchaies  and  payments  of  all-  kinds 
are  commonly  made.  Silver  very  feldom  appears,  except  in  the 
change  of  a  twenty  fhiTlings  bank  note,  and  gold  ftill  feldomer. 
But  thotigh  the  condu^  of  all  thofe  different  companies  has  not 
been  unexceptionable,  and  has  accordingly  required  an  a£t  of 
pariiament  to  regulate  it;  Ae  country,  notwithftanding,  has 
evidently  derived  great  benefit  from  their  trade,  I  have  heard  it 
aflbited,  that  the  trade  of  the  city  of  Glafgow  doubled  in  about 
fifteen  years  after  the  firft  ere<^ion  of  the  banks  there ;  and  that  the 
trade  of  Scotland  has  more  than  (quadrupled  fmce  the  ilrit  eredlion 
of  the  two  publick  banks  at  Edinburgh,  of  which  the  one,  called 
The  Bank  of  ScoUand,  was  eftabli(hed  by  a6t  of  parliament  in 
1695,  the  other,  called  The  Royal  Bank,  by  royal  charter  in. 
17&7.  Wihether  the  >trade,  either  of  Scotland  in  general,  or  of 
the  city  of  Glafgow  in  particular;  has  really  increafed  in  fb  great 
a  proportion,  during  fo  fliort  a  period,  I  do  not  pretend  to 
know.  If  either  of  them  has  increafed  in  this  proportion,  it  Teems 
to  be  an  eflfefl  too  great  to  be  accounted  for  by  the  fole  operation 
of  thiscaiife.  That  the  trade  and  induftry  of  Scotland,  however» 
kave  increafisd  very  confiderafbly  during  this  period,  and  that 
the  banks  have  contributod  a  good  deal  to  this  increase,  cannot 
be  doubted. 

The  value  of  the  iSver  money  which  circulated  in.  Scotlamji 
l^efore  the  umon,  in  1707,  and  which  immediately  after  it  waj. 
brought  into  the  bank  of  Scotland  in  order  to  be  re-cqirwl,, 
amounted  to  411,1171.  los.  pd.  fterling.  No  account  Ijas  been 
gpt  of  the  gold  coin  j  but  it  app^rs  from  the  antieot  accounts  qf 
tl>e  aunt  of  Scotland,,  that  the  vaiue  of  the  gold  annually  coined- 
fome'^hat  exceeded  that  of  the  filver  *.  There  were  a  good  many, 
people  too  upon  this  occafion,  who,  from  a  diffidence  of  re»^ 
*  See  Rudlman's  Preface  to  Anderfon's  Diplomata,  &c.    Scotiz. 

Vol.  I.  *   Z  3  payment^. 


ii  I 


!         I 


I      i 


'«! 


\m 


^■t/:/. 


Bi¥*K  ptygifnt.  M  »(0«, bring  thfjr  filver  intotlie  h^nk  of  $oollao^i  1914, 
there  wm,    bcfidev^   fome  £ngli(h  coin,   which  vfu   not  C9M«i4^ 
in.    The  whole  value  of  the  gold  and  filver^  therefoL'e,   whidjk 
circulated  in  Scotland  before  the  union,  cannot  be  eftimated  aci 
lef»  than  a  million  fterling.     It  fisems  tq  have  coqyl^t  ited  alofftft-; 
the  whole  ciiculation  of  that  country;  for  though,  tl^e  circulation, 
of  the  bank  of  Scotland,   which  had .  then  no  rivi4»   W^  cpn« 
Itderable,  it  feems  to  have  made  but  a  very  fmall  part   of  the, 
whole.    In  the  prefent  times  th«  whole  ciiculation  of .  Scotland 
cannot  be  eftimated  at  lefs  than  two  millions,  of  which  thaft'part 
which  confifts  in  gold  and  filver,  mott  probably,  does  not  amount 
to  half  a  million.     But  though  t!ie  ciiciilating  gold  and  fllvor,  of 
Scotland  have  fuffered  fo  great  a  diminution  during  thifi.periQdiq 
it$  real  riches  and  profperity  do  not  appear  to  li^ve  fufferedtMuiyr.  < 
Its  agriculttire,  manufadhires,  tnC^  tr^e,  i  ,on  the .  contrary,'-  the 
annual  produce  of  its  land  and  labour,  c  {have   evideotly   beeQij 
augmented.      t   <•  >   I    .^iniTiKi.  s;  it^ail -D't 'iitrffj-);;!;^   .«r-/f*);fei  "^bju*'. 


lr^-;r';if  ?r:-  fj'MlJ  to  t'p.'h-:- ii 


^ffV 


^It  is  chiefiy  ^  difcounting  bills  of  exchange,  tKat  is, '  fey  Sd- 
v^iCin^  mdney  upon  them  before  they  are  due,  that  the  gt(sitir 
p^irt  bi  banks  and  bankers  iflfue  'theii*  promiiTory  notes.  They' 
deduct  aTways,  upon  whatever  fum  they  advance,  th6  legil 
infereft  till  the  bill  (hall  become  due.  The  payment  of '<h^'' 
bill,' when  it  becomes  due,  replaces  to  the  bank  the  value  of 
wliai'^ad"  been  advaiiced,  together  with  a  clear'  prbifif  bf^thd' 
ini^ereft.  *f he  tanker  who  advances  to  the  merc^haht  whoife 
bill  he  difcbunts,  not  gold  and  filver,  but  his  own  promiflbry 
notes,  has  the  advantage  of  being  able  to  difcount  to  a  greater 
atnount,  by'tlife^lio'le  value  df  his  prbtttlflbry  notes^  \ivhich  he 
finds  ty  expdriieiice,ar)i'cbmittbnly  in  circulation.  Me  is  thereby 
enabled  to 'make  his  cleai*  gain  of  intereft  on  fo  mtich  a 
larger  film'    '''"''  "  ^'''^"    ''''*^    ,!.— .^^jo  ai...j  x.uuu  a.i::  _;„^.:^ 


'^ 


.Jia 


T^E    WEALTH    OF    NATIONS. 


35^ 


The  commerce  of  Scotland,  which  at  prefent  is  not  very  great,  CHAP, 
"was  ftill  more  inconfiderable  when  the  two   firft  banking  com- 
panies were  eftabliflied ;  and  thofe  jcompanies  would  have  had  but 
little  trade,  had  they  confined  their  bufmefs  to  the  dlfcounting  of 
bills  of  exchange.     They  invented,  therefore,  another  method  of 
ifluing  their  promilfary  notes ;  by  granting,  what  they  called,  cafh 
Accounts,  that  is,  by  giving  credit  to  the  extent  of  a  certain  fum, , 
(two  or  three  thoufand  pounds,  for  example),  to  any  individual 
who  could  procure  two  pciiijns  of  undoubted  credit  and  good  landed: 
eftatc  to  become  furety  for  him,  that  whatever  money  fhould  be 
Advanced  to  him,  within  the  fiim  for  which  the  credit  had  been 
given,    (hould  be  repnid   upon  demand,  together  with  the  legal 
ihtereft.     Credits  of  this  kind  are,  I  believe,  commonly  granted  by 
banks  and  bankers  In  all  different  parts  of  the  world.    But  the 
eafy  terms  upon  which  the   Scotch  banking  companies  accept  of 
re-payment  are,  fo  far  as  I  know,  peculiar  to  them,  and  have, 
perhaps,  been  the  principal  caufe,  both  of  the  great  trade  of  thofe 
companies,   and  of  the  benefit   which  the   country  has  received: 
from  it. 


Whoever  has  a  credit  of  this  kind  with  one  of  thofe  companies, 
and  borrows  a  thoufand  pounds  upon  it,  for  example,  may  repay 
this  fum  piece-meal,  by  twenty  and  thirty  pounds  at  a  time,  the 
company  difcounting  a  proportionable  part  of  the  intereft  of  the 
great  fum  from  the  day  on  which  each  of  thofe  fmall  fums  is  paid 
in,  till  the  whole  be  in  this  manner  repaid.  All  merchants,  there- 
fore, and  almofl:  all  men  of  bufinefs,  find  it  convenient  to  keep 
fach  cafli  accounts  with  them,  and  are  thereby  interefled  to  pro- 
mote the  trade  of  thofe  companies,  by  readily  receiving  their  notes 
in  all  payments,  and  by  encouraging  all  thofe  with  whom  they 
1-tave  any  influence  to  do  the  fame.  The  banks,  when  their  cuflomers 
apply  to  thtm  for  money,  generally  advance  it  to  them  in  their  own; 

promiflary 


I  '■' 


t  ■ 


'  'Pi 


S^o 


THE  NATURE  AND  CAUSES  OF 


BOOK  promiffary  notes.  Thefe  the  merchants  pay  away  to  the  manu- 
fa6lureis  foi  goods,  the  manufafturers  to  the  farmers  for  mate- 
rials and  provifions,  the  farmers  to  their  1;  ii'.ik  rds  for  rent,  tlie 
landlords  repay  them  to  the  merchants  for  ihe  conveniencies  and 
luxuries  with  which  they  fupply  them,  and  the  merchants  again 
'.eturn  them  to  the  banks  in  order  to  balance  their  caih  accounts, 
or  to  replace  what  they  may  have  borrowed  of  them ;  and  thus 
alniolt  the  whole  money  bufinefs  of  the  country  is  tranfaded 
by  means  of  them.     Hence,  the  great  trade  of  thofe  companies. 


By  means  of  thofe  cafh  accounts  every  merchant  can,  without 
imprudence,  carry  ou  a  greater  trade  than  he  otherwife  could  do. 
If  there  are  two  merchants,  one  in  London,  and  the  other  in 
Eiliiibuigh,  who  employ  equal  flocks  in  the  fame  branch  of  trade, 
the  tdinburgh  merchant  can,  without  imprudence,  carry  on  a 
greater  trade,  and  give  employment  to  a  greater  number  of  people 
th  m  the  London  merchant.  The  London  merchant  muft  alvv;iys 
keep  by  him  a  confiderable  fum  of  money,  either  in  his  own 
coiiers,  vi  in  thofe  of  his  banker,  who  gives  him  no  intereft  for 
it,  in  n'i\:V  to  anfwcr  the  demands  continually  coming  upon 
him  for  payment  of  the  goods  which  he  purchafes  upon  credit.  Let 
the  oidiiviry  amount  of  this  fum  be  fuppofed  five  hundred  pounds. 
The  value  of  the  goods  in  his  warehoufe  muft  always  be  lefs  by 
five  hundred  pounds  than  it  would  have  been,  had  he  not  been 
obliged  to  keep  fuch  a  fum  unemployed.  Let  us  fuppofe  that 
he  generally  dilpofes  of  his  whole  ftock  upon  hand,  or  of 
goods  to  the  value  of  his  whole  ftock  upon  hand,  once  in  the 
year.  By  being  obliged  to  keep  fo  great  a  fum  unemployed,  he 
muft  fell  in  a  year  five  hundred  pounds  worth  lefs  goods  than  he 
might  otherv^ife  have  done.  His  annual  profits  muft  be  lefs  by 
ah  that  he  could  have  made  by  the  fale  of  five  hundred  pounds 
worth  more  goods ;  and  the  number  of  people  employed  in  pre- 
paring his  goods  for  the  market,   muft  be  lefs  by  all  thofe  that 

five 


THE    WEALTH    OF    NATIONS. 


3^1 


five  hundred  pounds  thote  ftock  could  haV6  employed.  The  CHAP, 
merchant  in  Edinburgh,  oa  the  other  hand,  keeps  no  money 
unemployed  for  anfwering  fuch  occafional  demands.  When  they 
a6Vually  come  upon  him,  he  fatisfies  them  from  his  cafh  account 
with  the  baqk,  and  gradually  replaces  the  Turn  borrowed  with  the 
money  or  paper  which  comes  in  from  the  occafional  fales  of  his 
goods.  With  the  fame  ftock,  therefore,  he  can,  without  imprudence, 
have  at  all  times  in  h'  tirehoufe  a  larger  quantity  of  goods 
than  the  London  mi  nd  can  thereby  both  make  a  greatCi* 

profit  liimfelf,  and  gi  employment  to  a  greater  number 

of  induftrious  people  ,  ■  j)are  thofe  goods  for  the  market. 

Hence  the  great  benefit  which  the  country  has  derived  from  this 
trade.  '■       " 

The  facility  of  difcounting  bills  of  exchange,  it  may  be  thought 
indeed,  gives  the  Englifli  merchants  a  conveniency  equivalent 
to  the  cafh  .iccounts  of  the  Scotch  merchants.  But  the  Scotch 
merchants,  it  muft  be  remembered,  can  difcount  their  bills  of  ex- 
change as  eafily  as  the  Englifh  merchants ;  and  have,  befides,  the 
additional  conveniency  of  their  cafh  accounts. 


i 


The  whole  paper  money  of  every  kind  which  can  eafily  circu- 
late in  any  country  never  can  exceed  the  value  of  the  gold  and 
filvei,  of  which  it  fupplies  the  place,  or  which  (the  commerce 
being  fuppofed  the  Tame)  would  circulate  there,  if  there  was  no 
paper  money.  If  twenty  fhilling  notes,  for  example,  are  the 
loweft  paper  money  current  in  Scotland,  the  whole  of  that  cur- 
rency which  can  eafily  circulate  there  cannot  exceed  the  fum 
of  gold  and  filver,  which  would  be  neceflary  for  tranfading 
the  annual  exchanges  of  twenty  (hillings  value  and  upwards 
ufually  tranfafted  within  that  country.  Should  the  circulating 
papei"  at  any  time  exceed  that  fiim,  as  the  excefs  could  neither 

Vol.  I.  3  A  be 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


1.0 


I.I 


S.    115 


US 

US  Uii   122 
1^   tiS.    12.0 


11-25  IH  1.4 


I 

m 

|l.6 


Hiotogra[Jiic 

Sciences 

Corporalion 


23  WBT  MAIN  STRUT 

WIBSTIR,N.Y.  14SM 

(71«)  172-4303 


v 


V 


4 


'^ 


3«a 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  be  fent  abroad  nor  be  employed  in  the  circulation  of  the  country,  it 
muft  immediately  return  upon  the  banks  to  be  exchanged  for 
gold  and  filver.  Many  people  would  immediately  perceive  that 
they  had  more  of  this  paper  than  was  neceflary  for  tranfafting 
their  bufinefs  at  home,  and  as  they  could  hot  fend  it  abroad^ 
they  would  immediately  demand  payment  of  it  from  the  banks» 
When  this  fuperfluous  paper  was  converted  into  gold  and  filver^ 
they  could  eafily  find  a  ufe  for  it  by  fending  it  abroad  j  but  they 
could  find  none  while  it  remained  in  the  fhape  of  paper.  There 
would  immediately,  therefore,  be  a  run  upon  the  banks  to  the 
whole  extent  of  this  fuperfluous  paper,  and,  if  they  fliowed  any 
<Uificulty  or  backwardnefs  in  payment,  to  a  much  greater  extent; 
the  alarm,  wluch  this  would  occafibn,  necelTarily  increafing  the. 


run. 


Over  and  above  the  eypences  which  are  common  to  every 
branch  of  trade;  fuch  as  the  expence.  of  houfe-rent,  the  wages 
of  fervants,  clerks,  accountants,  5cc. ;  the  expences  peculiar  to  a 
bank  confift  chiefly  in  two  articles :.  Firfl,  in.,  the  expence  of  keep^ 
ihg  at  all  tiraes  in  its  coffers,  for  anfWering  the  occafional  demands 
of  the  holders  of  its  notes,  a  large  fum  of  money,  of  which  it 
lofes  the  interefl :  And,  fecondly,  in  the  expence  of  replenilhing 
thofe  coffers  as  fall  as  they  are  emptied  by  anfwering  fuch  occa-* 
iional  demands. 


A  BANKING  company,  which  iflTues  more,  paper  than  can  be 
employed  in  the  circulation  of  the  country,  and  of  which  the 
excefs  is  continually  returning  upon  them  for.  payment,  ought  to 
increafe  the  quantity,  of  gold  and  filver,  which  they  keep  at  all 
times  in  their  coffers,  not  only  in ,  proportion  to  this  exceffive 
increafe  of  their  circulation,,  but  in  a  much  greater  proportion;, 
theic  notes  returning  upon  them  much  fafter  than  in  proportion 

4  to 


3L' 


THE    WEALTH    OF    NATIONSC 


i^ 


to  the  excefs  of  their  quantity.     Such   a   company; 
ought  to  increafe  the  firft  article  of  their  expence,  not  only  in 
proportion  to  this  forced  increafe  of  their  bufinefi,  but  in  a  much 
greater  proportion. 


therefore,  CHAP. 

XXfl 


;j;. 


The  coffers  of  fuch  a  company  too,  though  they  ought  to 
be  filled  much  fuller,  yet  muft  empty  themfelves  much  fafter  than 
if  their  bufinefs  was  confined  within  more  reafonable  bounds,  and 
muft  require,  not  only  a  more  violent,  but  a  more  conftant  and 
uninterrupted  exertion  of  expence  in  order  to  replenifh  them. 
The  coin  too,  which  is  thus  continually  drawn  in  fuch  large 
quantities  from  their  coffers,  cannot  be  employed  in  the  circuU- 
tion  of  the  country.  It  comes  in  place  of  a  paper  which  is  over 
and  above  what  can  be  employed  in  that  circulation,  and  is  there^ 
fore,  over  and  above  what  can.  be  employed  in  it  too.  But  as 
that  coin  will  not  be  allowed  to  lie  idle,  it  muft,  in  one  fhape 
or  another,  be  ient  abroad,  in  order  to  find  that  profitable  employ, 
ment  which  it  cannot  find  at  home ;  and  this  continual  exportation 
of  gold  and  filver,  by  enhancing  the  difficulty,  muft  neceflarily 
enhance  ftill  further  the  expence  of  the  bank,  in  finding  new 
gold  and  filver  in  order  to  replenifh  thofe  coffers,  which  empty 
themfelves  fo  very  rapidly.  Such  a  company,  therefore,  muft, 
in  proportion  to  this  forced  increafe  of  their  bufinefs,  increafe 
the  fecond  article  of  their  expence  ftill  more  than  the  firft.  iiri !  n>l 


cu 


■:€r:;i 


Let  us  fuppofe  that  all  the  paper  of  a  particular  bank,  which  the 
chrculation  of  the  country  can  eafily  abforb  and  employ,  amounts 
exaftly  to  forty  thoufand  pounds ;  and  that  for  anfwering  occafional 
demands,  this  bank  is  obliged  to  keep  at  all  times  in  its  cof&rs  ten 
thoufand  pounds  in  gold  and  filver.  Should  this  bank  attempt 
to  circulate  for^>four  thoufand  pounds,  the  four  thoufand  pounds 
which  are  over  and  above  what  the  circulation  can  eafily  abforb 
,  3  A  2  and 


^«4         THB  NATURE  AND  CAUSES  OF 

B  <^Q  K  9nd  employ,  «4U  rf(um  iipon  it  alinoft  as  faft  as  they  iu«  iifued; 
'  1^  For  anfwering  Qc<;ftfipi|(kl  ^eoAaiMlfu  ^oifforc^  this  hukk  ought  to 
Iceep  at  ali  tioies  u;^  its  cofiff s.  not  tkntn  thiOO&nd  pounds  onIy» 
but  fourteen  thoufand  pounds.  It  will  thus  gain  nothing  by 
the  intereft  of  the  four  thoufand  pounds  exceffive  circulation; 
ai>d  it  will  Ipfe  the  whole  expence  of  continoaUy  coUcfUng,  four 
thojifand  pounds  in  ^old  and  filver  wluch  wiU  be  coniinually;. 
going  put  p£  its  CQ^s  as  faft  as  they  are  brought  into  them. 


Had  every  particular  banking  company  a^wagrst  undorftood  and 
attende4  to  its  <>vku  particular  intereft,  tihe  circulation  never 
could  have  been  overltocked  with  paper  money.  But  every  par- 
ticular banking  company  has  not  always  underftood  or  attended 
to  its  own  particular  inteieft,  and  the  cirealation  has  frequently 
beea  overf^ked  with  papev  iponaey. 

By  ifliiing  tx>o  great  a  quandty  of  piqper,  of  which  the  excels 
was  continually  returning,  in  order  to  be  exchanged  for  gold  and 
filver,  the  bank  of  England  was  for  many  years-together  obliged  to 
coin  gold  to  the  extent  of  between  eight  hundred  thoufand  pounds 
and  a.  million  a  year ;  <x&i  an  average,  about  eight  hundred  and  fifty 
thou&nd  pounds.  For  this  great  coinage,  the  bank  (i*  nfe- 
quence  of  the  worn  and  degraded  flate  into  which  the  g  .  coin 
had  fallen- a  few  years  ago)  was  frequently  obliged  to  purchafe  gold 
bullion  at  the  high  price  of  four  pounds  an  ounce,  which  it 
fbon  afW  iffiied  in  coin  at  ^1.  17  s.  iod.4  ari  ounce,  lofing  in 
this  manner  between  two  and  a  half  and  three  per  cent,  upon 
the  coinage  of  fo  very  large  a  fum.  Though  the  bank  there- 
fore paid  no  feignorage,  thpugb  the  governi&ent  was  properly 
at  the  Gxpence  of  the  coinage,  this  Uberatity  of  government 
did  not  prevent  altogether  the  expence  of  the  bank. 


Th« 


THE    WEALTH    OF    NATIONS. 


3^5 


The  Scotch  banks,  in  confequence  6f  an  excefs  of  the'  fame  CHAP. 
kifidi  Wire  all  ohliged  to  employ  conftantly  agents  at  London 
to  eolkfl  money  for  them>  M  an  exp^nce  which  was  feldom  below 
one  and  a  half  or  two  per  cent.  This  moncfy  Was  fent  down 
by  the  waggon,  and  infured  by  the  carriers  at  an  additional  expence 
of  three  quarters  per  cent,  or  fifteen  fhillings  on  the  hundred 
jpemndtk  ThoTe  agents  were  not  always  able  to  repleniih  the 
coffers  of  their  employers  fo  faft  as  they  were  emptied.  In  this 
cafe  the  refource  of  the  banks  was,  to  draw  upon  their  correfpon- 
dents  in  London  bills  of  exchange  to  the  extent  of  the  fum  which 
th^  wanted.  When  thofe  cori^rpondents  afterwards  drew  upon 
theffl  for  the  payment  of  this  fum,  together  with  the  intcreft,. 
and  ft  (^ommiffion,  fome  of  thole  banks,,  from  the  diftrefs  into- 
whidi  their  excefiive  circulation  had  thrown  them^  had  fometimes 
no  other  means  of  fatisfying  this  draught  but  by  drawing  a 
feeond  fttt  of  bills  either  upon  the  fame,  or  upon  fome  other 
^(M-refpondents  in  London;  and  the  fame  fum,  or  rather  bills  for 
the  fame  fum,  would  in  this  manner  make  fometimes  more  than 
two  or  three  journies;  the  debtor,  bank,  paying  always  the  in- 
tereft  and  eommiflion  upon  the  whole  accumulated  fum.  Even-: 
thofe  Scotch  banks  which  never  diftinguifhed  themfelves  by  their 
extream  imprudence,  were  fometimes  obliged  to  employ  this  ruinous 
refource. 

The  gold  coin  which  was  paid'  out  either  by  the  bank  of 
England,  or  by  the  Scotch  banks,  in  exchange  for  that  part  of 
their  paper  which  was  over  and  above  what  could  be  employed 
hi  the  circulation  of  the  country,  being  likewife  over  and  above - 
what  could  be  employed  in  that  circulation,  was  fometimes  fent 
abroad  in  the  fhape  of  coin,  fometimes  melted  down  and  fent 
abroad  in  the  fhape  of  bullion,  and  fometimes  melted  down  and. 
fold  to  the  bank  of  England  at  the  high  price  of  four  pounds 

7  ^^ 


3^6 


BOOK 
IL 


THE    NATURE    AND    CAUSES    OF 

an  ounce.     It  was  the  neweft,  the  heavieA-,  and  the  beft  pieces 
only  which  were  carefully  picked  out  of  the  whole  coin,  and  either 
fent  abroad  or  melted  down.    At  home*  and  while  they  remained 
in  the  Ihape  of  coin,  thofe  heavy  pieces  were  of  no  more  value 
than  the  light :  But  they  were  of  more  value  abroad,  or  when  melted 
down  into.bullion,  at  home.  The  bank  of  England,  notwithftanding 
their  great  annual  coinage,   found  to  their  aftonilhment,    that 
there  was  every  year  the  fame  fcarcity  of  coin  as  there  had  been 
.the  year  before;   and  that  notwithftanding    tlie   great   quantity 
•  of  good   and  new  coin  which   was  every  year  iffued  from  the 
bank,  the  ftate  of  the  coin,  inftead  of  growing  better  and  better, 
became   every    year  worfe  and  worfe.     Every    year  they  found 
themfelves  under  the  neceflity  of  coining  nearly  the  fame  quantity 
of  gold  as  they  had  coined  the  year  before,  and  from  the  con- 
tinual rife  in  the  price  of  gold  bullion,   in  confequence  of  the 
continual  wearing  and  clipping  of  the  coin,  the  expence  of  this 
great  annual  coinage  became  every  year  greater  and  greater.     The 
bank  of  England,    it  is  to  be  obferved,   by  fupplying  its  own 
coffers  with  coin,  is  indireftly  obliged  to  fupply  the  whole  kingdom, 
into  which  coin  is  continually  flowing  from  thofe  coffers  in  a 
great    variety  of  ways.      Whatever  coin    therefore    was  wanted 
to  fupport  this  exceflive  circulation  both  of  Scotch  and  Englifli  paper 
money,  whatever  vacuities  this  exceflive  circulation  occafioned  in 
the  neceflary  coin  of  the  kingdom,   the  bank  of  England  was 
obliged  to  fupply  them.     The  Scotch  banks, -no  doubt,  paid  all 
of  them  very  dearly  for  their  own  imprudence  and  inattention. 
But  the  bank  of  England  paid  very  dearly,  not  only  for  its  own 
imprudence,  but  for  the  much  greater  imprudence  of  almoft  all 
the  Scotch  banks. 

The    over  trading  of  fome  bold  projedlors  in  both  parts  of 
the  united  kingdom,  was  the  original  caufe  of  this  exceflive  cir- 
culation of  paper  money, 
*  .  What 


'*.  ^ 


iM*t»'i 


tH,f^  WEALTH    OF    N4t:ipif% 


UH 


3«7 


.  WWA?  A  bank  can  mth  |>ropriety  advance  to  a  mcrchanl  or  CHAP, 
wtil^^rtalKr  of  fny  kind,  is  not,  dther  the  whole  caj^tal  wA  '  '  ' 
jmkk  he  t^da*  or  even  any  conliderable  part  of  that  capitals 
Itit  jH^at  part,  of  it  only,  which  he  would  otherwife  be  obliged 
to  keep  by  him  unemployed,  and  in  ready  money  for  apfwering 
occaiional  demands.  If  the  paper  money  which  the  bank  advances 
ijfcyer  exceeds  thia  value,  it  can  never  exceed  the  value  of  the 
|cjfd  an^  filvef,  which  would  neceflarily  circulate  in:  the  country 
Uf  ^ere  w^  ho  paper  money ;  it  can  never  exceed  the  quan- 
tity whi^h  the  circulactio^  of  the  country  can  eafily  abforb  and 


^  When  i  blink' J^fcbiints  toll  ftiefchant  a  real*  till  of  exchange 
orawti  by  a  real  creditor  upon  a  real  debtor,  and  which,  as  fcon 
Hf  it  becomes  due,  is  really  paid  by  that  debtor;  it  only  advances- 
to  hiffl  a  part  of  the  value  which  he  would  otherwife  be  obliged 
\f>  kd^  by  him  unemployed,  and  in  ready  money  for  anfwer* 
1^  <occi^ioillil  demands.  The  payment  of  the  bill,  when  it 
becofiies  due,  replaces  to  the  bank  the  value  of  what  it  had' 
^advanced,  together  with  the  intereft.  The  coffers  of  the  bank,  fo- 
titf  at  its  dealings  are  confined  ta  fuch  cuftomers,  refemble  a 
water  pond,  from  which,  though  a  ftream  is  continually  running; 
;oMr,  yet  another  is  continually  running  in,  fully  equal  to  that 
which  runs  out;  fb  that,  without  any  further  care  or  attention, 
the  pond  keeps  always  equally,  or  very  near  eqpally  full.  Little  oir 
no  expence  can  ever  be  necefTary  for  replenifhing  the  coffers  of 
fuch  a  bank.. 

'■"  A  MERCHANT^  ^thout  over-tradiug,  may  fVequently  have 
occalion  for  a  fum  of  ready  money,  even  when  he  has  no  bills  to 
difcount.'  When  a  bank,  befiiiles  difcounting  his  bills,  advances, 
him  likewifeupon  fuch  occaiions,  fuch  (Urns  upon  his  calh account,, 
and  accepts  of  a.  piece-meal  repayment  as  the  money  comes  ia^ 
Vol.  L.  3.  a  4,  fronij 


fibtkBiUddtaidtiliA  miafhii  pxiSi,  ^&p6n'^CKtt^t^tm^Wfil^ 
MOai^f;  ^ottiiMktties  of  SIcdtliihdt  ii  tfifp^fei  hith  iftti^'fhMi 
il\«  n<eM!tty  of  kee))iag'M]r  j»H^^  Ids  ftbdb  fff  Ml^rtUietttM^ 
khd 4h  tcady  ttibtn^  'fbr  tomerin^  occi^bhal  dbteiMi. '  Wh«ll 
luch  demands  nAtHilly  ciMn6  Upon  him,  he  can  arflM:  %ettk  j|U^ 
^dently  fWna  his  <:afli  account.    The  bank,,  hontioy^rt  in  d|pal> 
ing  with  fUch  tuftomdrs,  ought  to  obferye^MrjA^j^tj^^ail^nt^^^ 
whethfi"  ih  the  corttfc  of  Ibme  fli^  peri!^  i()^  j^^  fykM%L, 
or  ei|^t  mondif,  forexample)  die  iutil  otf  ihc  teJMytUetlt^  i'<^l^^^ 
it  cOmMonljK  tveeiveS  from  them,  si,  or  b  not,  ft|!ly  <iqaM.  to 
that  of  the  advances  which  it  qommonly  m^lui^,  t;o  thqnn,, ..  Iff, 
ivithin  the  courfe  of  fuch   ihort  periods,   the  Turn  of  th^   re- 
|)iaymenfs  from  certain  cuftomers  is,  upon  rood  occafions,  tuUy 
equal  "td  (hdt  df  th6  advaiides,  "it  nvay  lafely  continue  to  deal 
nM  {iith  CUftdhiefS.    Though  the  ftitam  which  is  in  fhii  cafe 
XOhtiiitialty  rutmutg  6Ut  frofti  its  cofiert  may  be  very  laige,:th(»t 
t^fiidi  Is  (ibnttnaally  rmmii«g  intb  theni  muH:  bd  at  lasif^cqdaliy 
Ittfgtft  lb  that  vdlhoiit  any  fUKhtr  ca^5  dr  attention  thdlb  coilers 
ttlK  im^ly  td  b6  ahtrays  eqtially  or  very  near  equally  fulti  and  fcalce 
^vd'td^rc^nt  any  birtradrdinary  expenc^  to  repldiith  tHem.   if, 
Wtie'  e^tKifrf/thiifnni  6f  the  r^yments  from  certain  otlier 
tftSR^ffien'ya/^^mmbhty  very  '^iieh  Ihdrt  of  the  advances  ivhich 
It'  rN^es^'to  th^,  it  cWinbt  with  any  ^ety  contmue   tb  deal 
With  fuch  cti^oWers,   at  ieift  if  they  continue  to  deal  with  it 
isi  ISas  manher.    The  ftreaim  which  is  in  this  cde  contimiaUy 
i'nnnin^'btlt'fr()k''itl  odISsrs  is  lieceilarily  much  iaigdi«  thkhthat 
Whi^h  is  coM^klTy  rdhtring  in;  fo  that,  unlefs  they  are  reple- 
ntflted  by  fooie  great  Mid  continual  efiibit  of  expencc^   thofe 
cofiefsttiuft  fbOB  be  eftbau(tol  akogetfadt* 

Tmis  l^ttiking  «^^  #e6etit^lf/ «et6^dUij^y>r'%«^  for 

dients 


THE    WEALTH    OF    NATIONS. 

Oients  from  all  their  cttftomers,  and  did  not  care  to  deal  with 
any  perfbn»  whatever  might  be  his  fortune  or  credit,  who  did 
not  mike,  what  they  called,  frequent  and  regular  operations 
with  them.  By  this  attention,  befides  faving  almoft  entirely 
the  extraordinary  expence  of  replcnifliing  their  coffers,  they  gained 
two  other  very  confiderable  advantages. 

FfRsT,  by  this  attention  they  were  enaUed  to  make  fome 
tolerable  judgement  <x>nceming  the  thriving  or  declining  cir- 
cumftances  of  their  debtors,  without  being  obliged  to  look  out 
for  any  other  evidence  befides  what  their  ovm  books  afforded 
themi  men  being  for  the  mofl:  part  either  regular  or  irregular 
in  their  repayments,  according  as  their  circuRvftances  are  either 
thriving  or  declining.  A  private  man  who  lends  out  his  money 
to  perhaps  half  a  dozen  or  a  doaen  of  debtors,  may,  either  by 
himfelf  or  his  agents,  obierve  and  enqmre  both  conftantly  and 
carefully  into  die  conduct  and  fitoation  of  each  of  them.  But 
a  banking  company,  which  lends  money  to  perhaps  five  hundred 
different  people,  and  of  which  the  attention  is  continually  occu* 
pied  by  obje£ts  of  a  very  different  kind,  can  have  no  regular 
information  concerning  the  condufi:  and  circumftances  of  the 
greater  part  of  its  debtors  beyond  what  its  own  books  afford 
it.  In  requiring  frequent  and  regular  re^paymdms  from  all 
their  cuftomers,  the  banking  companies  of  Scotland  i^id  probdbly 
this  advantage  in  view. 

Secon»lt,  by  this  attention  they  ffecured  thcmfelves  from 
the  poflibility  of  iflfuing  more  paper  money  than  what  the  cir- 
culation of  the  country  couM  eafily  abforb  and  employ.  When 
they  obferved  that  within  moderate  periods  of  time  the  re-pay- 
ntents  of  a  particular  cuflomer  were  upon  moft  occafiofts  fully 
equal  to  the  advances  which  Ihey  had  made  to  him,  they  might 

Vol.  I.  3  B  b« 


3*9 


370 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K  be  aflurcd  that  the  paper  money  which  they  had  advanced  to  him, 

had  not  at  any  time  exceeded  the  quantity  of  gold  and   filver 

which  he  would  otherwife  have  been  obliged  to  keep   by  him 

for  anfwering  occaflonal  demands ;  and  that  confequently  the  paper 

money  which  they  had  circulated  by  his  means  had  not  at  any 

time  exceeded  the  quantity  of  gold  and  filver  which  would  have 

circulated  in  the  country,  had  there  been  no  paper  money.    The 

frequency,    regularity   and   amount   of  his  re-payments  would 

fufHciently  demonftrate  that  the  amount  of  their  advances  had 

at  no  time  exceeded  that  pait   of  his  capital  which  he  would 

otherwife  have  been  obliged  to  keep  by   him  unemployed,  and 

in    ready   money   for   anfwering    occafional   demands;   that  is, 

for  the  purpofe  of  keeping  the  reft  of  his  capital  in  conftant 

employment.     It  is  this  part  of  his  capital  only  which,  vnthin 

moderate  periods  of  time,  is  continually  returning  to  every  dealer 

in  the  fliape  of  money,  whether  paper  or  coin,  and  continually 

going  from  him  in  the  fame  (hape.    If  the  advances  of  die  bank 

had  commonly  exceeded  this  part  of  hi»  capital,  the  ordinary 

amount  of  his  re-payments  could  not,  within  moderate  periods 

of  time,    have   equalled  the   ordinary  amount  of  its  advances^ 

The  ftream  which,  by  means  of  his  dealings,   was  continually 

running  into  the  coffers  of  the  bank,  could  not  have  been  equal ' 

to  the  ftream  which,   by  means  of  the  fame  dealing?/  wa»con<« 

tinually  running  out.    The  advances  of  the  bank  paper,  by  exceed-^ 

ing  the  quantity  of  gold  and  filver  which^  had  there*  been  no 

fuch  advances,  he  would  have  been  obliged  to  keep  by  him  for 

anfwering  occafional  demands,  might  foon  come  to  exceed  the  whole 

quantity  of  gold  and  filver  which  (the  commerce  being  fuppofed  the 

fame)  would  have  circulated  in  the.cov  atiy  had  there  been  no  paper 

money  i   and  confequently.  to  exceed  <the  quantity  which  the  cir^^ 

culation  of  the  country  could  eafily  abforb  and  employ;  and  the 

cxcefs  of  this  paper  money  would  immediately  have  returned  upon 

the. 


II. 


THE    WEALTH    OF    NATIONS.  |j| 

the  bank  in  order  to  be  exchanged  for  gold  and  filver.    This  fccond  C  H^a  P. 
•dvantage,  though  equally  real,  was  not  perhaps  fo  well  uncle  flood 
by  all  the  dUTerent  banking  companies  of  Scotland  as  the  firfl. 

i 

When,  partly  by  the  conveniency  of  difcounting  bills,  and 
partly  by  that  of  ca(h  accounts,  the  creditable  traders  of  any 
country  can  be  difpenfed  from  the  necefllty  of  keeping  any  part 
of  their  ftock  by  them,  unemployed  and  in  ready  money,  for 
anfwering  occafional  demands,  they  can  reafonably  expeA  no 
further  afliftance  from  banks  and  bankers,  who,  when  they  have 
gone  thus  far,  cannot,  confidently  with  their  own  intereft  and 
fafety,  go  farther.  A  bank  cannot,  confidently  with  its  own 
intered,  advance  to  a  trader  the  whole  or  even  the  greater  part 
of  the  circulating  capital  with  which  he  trades  i  becaufe,  though 
that  capital  b  continually  returning  to  him  in  the  diape  of  money, 
and  going  from  him  in  the  fame  diape,  yet  the  whole  of  the  re- 
turns is  too  didant  from  the  whole  of  the  out-goings,  and  the 
fum  of  his  repayments  could  not  equal  the  fum  of  its  advances 
within  fuch  moderate  periods  of  time  as  fuit  the  conveniency  of 
a  bank.  Still  lefs  could  a  bank  afford  to  advance  him  any  con- 
fiderable  part  of  his  fixed  capital ;  of  the  capital  which  the  un- 
deitaker  of  an  iron  forge,  for  example,  employs  in  ere^ing  his 
forge  and  fmelting-houfe,  his  work-houfes  and  warehoufes,  the 
dwelling  houfes  of  his  workmen,  &c.  j  of  the  capital  which  the 
undertaker  of  a  mine  employs  in  finking  his  fhafts,  in  ereding 
engines  for  drawing  out  the  water,  in  making  roads  and  waggon- 
ways,&;c. ;  of  the  capital  which  the  perfon  who  undertakes  toimprove 
land  employs  in  clearing,  draining,  enclofing,  manuring  and 
ploughing  wade  and  uncultivated  fields,  in  building  farm-houfes 
with  all  their  necefTary  appendages  of  dables,  granaries,  &;c. 
The  returns .  of  the  fixed  capital  are  in  almod  all  cafes  much 
flower  than  thofe  of  the  circulating  capital  j  and  fuch  expences, 

3  B  2  even 


M' 


# 


! 


m 


THE  NATURE  AND  CAUSES  OP 


■; .  *."' 


9  o  o  K  even  when  laid  out  with  the  grMtcA  prudcaee  ind  judgenent» 
very  feldom  return  to  tlic  undertaker  ttU  aAer  a  period  of  many 
years,  a  period  by  far  too  diftant.  to  fuit  the  conveniency  of  a 
bank.  Traders  and  other  undertakers  may,  no  doubt,  with 
great  propriety,  carry  on  a  very  confiderable  part  of  their  projeP « 
with  borrowed  money.  In  juftice  to  their  creditors,  however,  thei 
own  capital  ought,  in  this  cafe-,  to  be  (iifficient  to  enfure,  if  I 
may  iay  fo,  the  capital  of  thofe  creditors;  or  to  render  it  ex- 
treamly  improbable  that  thofe  creditors  (hould  incur  any  lofs,  even 
though  the  fuccefs  of  the  project  (hould  ^1  very  much  fliort  of 
^e  expedtation  of  the  projectors.  Even  with  tlua  precaution 
too,  the  money  which  is  borrowed,  and  wluch  it  is  meant  (hould 
not  be  repaid  till  after  a  period  of  feveral  years,  ought  not  to 
be  borrowed  of  a  bonk,  but  ought  to  be  borrowed  upon  bond 
or  mortgage,  of  fuch  private  people  as  propofe  to  live  upon  the 
intereft  of  their  money,  without  taking  the  trouble  themfelves 
to  employ  the  capital;  and  who  are  upon  that  account  willing 
to  lend  that  capital  to  fuch  people  of  good  credit  as  are  Hkely  t<y 
keep  it  for  ieveral  years.  A  bank,  indeed,  which  lends  its  mcmey 
without  the  expence  of  ftampt  paper,  or  of  attornies  fees  (oc 
drawing  bonds  and  mortgages,  and  which  accepts  of  repayment 
upon  the  eafy  terras  of  the  banking  companies  of  Scotland  > 
would,  no  doubt,  be  a  very  convenient  creditor  to  fuch  traders 
and  undertakers.  But  fuch  traders  and  undertakers  would,  furely* 
be  moft  inconvenient  debtors  to  fuch  a  bank. 


It  is  now  more  than  five  and  twenty  years  ftnce  the  paper 
money  iflued  by  tlie  different  banking  companies  of  Scotland 
was  fully  equal,  or  rather  waA  fomewhat  more  than  fuUy  equal 
to  what  the  circulation  of  the  country  could  eafily  abfoil)  and 
employ.  Thofe  companies,  therefore,  had  (o  long  ago  given, 
all  the  afliftance  to  the  traders  and  other  undertakers  of  Scotland. 

which 


Yhb  wealth  or  nations/ 


m 


Whkh  it  is  pofnble  for  iMnks  and  bankers,  conftftently  with  CHAP, 
their  own  intereft,  to  give.  They  had  even  done  fomewhat 
more.  They  had  over-traded  a  little,  and  had  br>i?ght  upon  them- 
felves  that  lofs,  or  at  leaft  that  diminution  of  profit,  which  in 
this  particular  bufinefs  never  fails  to  attend  the  fmalleft  degree 
•f  ovor-tmding.  Thofii  traders  and  other  undertakers,  having  got 
f^  much  flinftance  from  banks  and  bankers,  wished  to  get  ftill 
more.  The  banks,  they  f«m  to  have  thought,  could  extend 
their  credits  to  whatever  fum  miglit  be  wanted,  without  incurring 
any  other  expence  belides  that  of  a  few  reams  of  paper.  They 
complained  of  the  contracted  views  and  daftardly  fpirit  of  thd 
directors  of  thofe  banks,  which  did  not,  they  faid,  extend  thelf 
credits  in  proportion  to  the  extenfion  of  the  trade  of  the  coun- 
try; meaning,  no  doubt,  by  the  extenfion  of  that  trade,  the 
extenfion  of  their  own  projects  beyond  what  they  could  carry 
on,  either  with  their  own  capital,  or  with  what  they  had  credit 
to  borrow  of  private  people  in  the  udtal  way  of  bond  or  mort« 
gage.  The  banks,  they  feem  to  have  thought,  were  in  honour 
bound  to  fupply  the  deficiency,  and  to  provide  them  with  all 
the  capital  which  they  wanted  to  trade  with.  The  banks,  how- 
enrer,  were  of  a  different  opinion,  and  upon  their  rcfufing  to* 
«(tend  their  credits,  ibme  of  tlicfe  traders  had  reooanfe  to  an 
rapedient  which,  for  a  time,  ferved  their  purpoie,  though  at  » 
much  greater  expence,  yet  as  effectually  as  the  utmoft  extenfiorv 
of  bank  credits  could  have  done.  This  expedient  wa«  no  other 
than  the  well-known  fliift  of  di-awing  and  re-drawing }  the  fliifc 
to  which  unfortunate  tradcors  have  rometimes  recourfc  when  the^ 
are  up<Mi  the  brink  of  b<ankruptcy.  The  praCfcice  of  raifing 
money  in  this  manner  hsd  been  long  known  in  England,  and 
during  the  courfc  of  the  late  war,  when  the  high  profits  of 
trade  afforded  a  great  temptation  to  over-trading,  is  faid  to  have 
been  -carried  on  to  a  very  great  extent.    Proto  Enj^and  it  was" 

7  brought 


3H 


THE  NATURE  AND  CAUSES  OF 


BOOK  In-ought  into  Scotland,  where,  in  proportion  to  the  very  limited 
commerce,  -and  to  the  very  moderate  capital  of  the  country,  it 
was  foon  carried  on  to  a  much  greater  extent  than  it  ever  had 
been  in  England. 

.  The  pra£tice  of  drav\dng  and  re-dramng  b  fo  well  known 
to  all  men  of  bufinefs,  that  it  may  perhaps  be  thought  unneceflary 
to  give  any  account  of  it.  But  as  this  book  may  come  into 
the  hands  of  many  people,  who  are  not  men  of  bufinefs,  and 
as  the  effects  of  this  practice  upon  the  banking  trade  are  not 
perhaps  generally  underftood  even  by  men  of  bufinefs  them- 
felves,  I  fliall  endeavour  to  explain  it  as  diftintStly  as  I  can. 


The  cuftoms  of  merchants,  which  were  eftablifhed  when  the 
barbarous  laws  of  Europe  did  not  enforce  the  performance  of 
their  contra^s,  and  which  during  the  courfe  of  the  two  laft  centuries 
have  been  adopted  into  the  laws  of  all  European  nations,  have 
given  fuch  extraordinary  privileges  to  bills  of  exchange,  that 
money  is  more  readily  advanced  upon  them,  than  upon  any  other 
ipecies  of  obligation ;  efpecially  when  they  are  made  payable  within 
(o  (hort  a  period  as  two  or  three  months  after  their  date.  If  when 
the  bill  becomes  due,  the  acceptor  does  not  pay  it  as  foon  as  it 
is  prefented,  he  becomes  from  that  moment  a  bankrupt.  The 
bill  is  protefted,  and  returns  upon  the  drawer,  who,  if  he  does  not 
immediately  pay  it,  becomes  likewife  a  bankrupt.  If  before  it 
can^e  to  the  perfon  who  prefents  it  to  the  acceptor  for  pay- 
ment, it  had  paflTed  through  the  hands  of  feveral  other  peribns, 
who  had  fucceflively  advanced  to  one  another  the  contents  of  it 
other  in  money  or  goods,  and  who,  to  exprefs  that  each  of  them 
had  in  hb  turn  received  thofe  contents,  had  all  of  them  in  their 
order  endorfed,  that  is,  written  their  names  upon  the  back  of 
the  bill  J  each  endorfer  becomes  in  his  turn  liable  to  the  owner 

of 


THE    WEALTH    OF    NATIONS. 


375 


of  the  bill  for  thofe  contents,  and  if  he  fails  to  pay  he  becomes  C  HA  P. 
too  from  that  moment  a  bankrupt.  Though  the  drawer,  ac- 
ceptor,  and  endorfers  of  the  bill  (hould,  all  of  them,  be  perfons 
of  doubtful  credit;  yet  (till  the  fhortnefs  of  the  date  gives  fome 
iecurity  to  the  owner  of  the  bill.  Though  all  of  them  may  be 
very  likely  to  become  bankrupts  j  it  is  a  chance  if  they  all  become 
(6  in  fo  (hort  a  time.  The  houfe  is  crazy,  fays  a  weary  traveller 
to  himfelf,  and  will  not  ftand  very  long ;  but  it  is  a  chance  i£ 
it  falls  to-night,  and  I  will  venture,  therefore,  to  deep  in  it 
to-night.  jr; , 

The  trader  A  in  Edinburgh,  we  (hall  fuppofe,  draws  a  bill  upon 
B  in  London,  payable  two  months  after  date.     In  reality  B  in 
London  owes  nothing  to  A  in  Edinburgh }  but  he  agrees  to  accept 
of  A's  bill,  upon  condition  that  before  the  term  of  payment  lie 
fliall  redraw  upon  A  in  Edinburgh,  for  the  fame  fum,   together 
with  the  intereft  and  a  commiflion,  another  bill,  payable  likewife  . 
two  months  after  date.     B  accordingly,  before  the  expiration  of 
the  Aril  two  months,  re-draws  this  bill  upon  A  in  Edinburgh ; 
who    again,  before  the    expiration  of  the  fecond  two   mo:.thsi 
draws  a  fecond  bill  upon   B  in  London,  payable  likewife  two  - 
months  after  date ;    and  before  the  expiration  of  the  third  two 
months,,  B   in   London   re-draws    upon  A  in  Edinburgh  an* 
other  bill,  payable  alfo  two  months  after  date.    This  practice 
has  fometimes  gone  on,  not  only  for  feveral  months,  but  for 
feveral  years   together,  the  bill  always    returning  upon  A   in 
Edinburgh,  with    the   accumulated  intereft  and  commiflion    of 
all   the  former   bills.      The  intereft   was  five  per  cent,  in  the 
year,  and  the  commiflion  was  never  lefs  than  one  half  per  cent*  ■ 
on  each  draught.     This  commiffion  being  repeated  more  than 
fix  times  in  the  year,  whatever  money  A  might  raife  by .  this  .ex**^ 
pedient  muft  neceflarily  have  coft 'him  fomething  more  than  eight 


5* 


37^ 


THE    NATURE    AKP    CA^E^I^ 


BOOK  p«r  cone,  in  -^  yef(iv)a94  tQmtimss  n.^rBtt  4)eal maref^it^ 
either  th«  |>ric«  of  the  iCommiiTtoia  happfufdoto  nSs,  w.ffrh^ 
he  md9  obliged  £0  pay  cQiii{)ojiin<l  imtcipeil  i^xm  the  interest  m^ 
commiffion   of  £arin«r  )mH9.     This  ^6^  ,^1$,  ;^aflB4  fy^rig 


moni^  by  diteulatiMt. 


»  4  •     J  —11;..'  -.4 


In  a  a&vritty  where  the  (Mxtinftry  profits  A>{  Hock  In  the 
greater  part  of  mercantiU  projoAs  are  Aippoiid  to  sun  ^weevi 
ftx  and  ten  per  cent.j  it  muft  have  be«n  a  veiy  formate  l|)o^ 
culation  of  which  the  returns  could  not  only  repay  the  enoTr 
mous  expence  at  which  the  money  was  thus  borrowed  for  car- 
rying it  on;  but  a0bni»  belides,  a  gciod  furpLus  profit  to  the  {no. 
)e£lor.  Many  vaft  and  exteniivc  pro)e£h,  however,  were  under- 
taken, and  for  feveral  ye^s  carried  on  w^hout  aoy  ^her  fm)4  ^ 
fupport  them  befides  what  was  jaifcd  at  this  enormous  «x|>siice. 
The  proje^ors,  no  doubt,  had  in  thor  .golden  dfvains  t^c  aooft 
diftinfl  vifion  of  this  great  faofit.  Upon  thehr  twAking,  however* 
either  at  the  end  of  their  projeAs,  or  when  they  were  jno.jp^i^^r 
able  to  carry  them  on,  they  veryieldom,  I  believe,  had  tbc  good 
fortune  to  find  it.  i;  hwc  bfo^ 

\ •  ••      '     ^   '  .     ••      •      -.^mH  o-trJHf' 

T^B  bills  wMch  A  in  Edinburgh  drew  upon  B  in  L^dd^^  he 
regularly  diibounted  two  months  befori^  tiky  were  -due  with  jome 
bank  or  banker  in  Edinburghj  \infd  the  bills  which  B  in  London 
re-drew  upon  A  in  Edinburgh,  he  as  regularfy  difcounted  either 
with  the  bank  of  England,  or  with  ibme  other  bankers  in  Lon- 
don. Whatever  was  advanced  upon  fuch  circulating  bills  was,, in 
Edinburgh,  advanced  in  the  paper  of  the  Scotch  banks,  and  in 
London,  when  they  wei%  difcounted  at  the  bank  of  England,  in 
the  paper  of  that  bank.  Though  the  bills  upon  which  this  paper 
had  been  advanced,  were  all  of  them  repaid  in  their  turn  as  foon 
tis  they  became  due;  yet  the  nAViQ  which  hod  been  really  ad* 
■^^^  ,  .^^''  '  '  vanccd 


# 


THE    WEALTH    OF    NATIONS. 


377 


vanced  upon  th«  it  bill,  was  never  really  returned  to  the  banks  C  HA  p. 
which  advanced  ki,  becaufe  before  each  bill  became  due,  another 
hill  was  always  drawn  to  fomewhat  a  greater  amount  than  the  bill 
which  was  foon  to  be  pdd;  and  the  difcounting  of  this  other  bill 
was  ellentially  necei&ry  towards  the  payment  of  that  which  was 
'ibon  to  be  due.  This  payment,  therefore,  was  altogether  fictiti- 
ous. The  ftream,  which  by  means  of  thofe  circulating  bills  of 
exchange,  had  once  been  made  to.run  out  from  the. coffers  of  the 
banks,  was  never  replaced  l^y  ar>y  ftream  which  really  run  into 
them. 

The  paper  which  was  iflfued  upon  thofe  circulating  bills  Qf 
(exchange,    amounted,  upon  many  occalions,  to  the  whole  fund 
deflined  for  carrying  on  fome  vaft)  and  exteniive.projedl, of  agri- 
culture, commerce,  or  manilfa£lures;   «nd  not  merely  to  that 
(part  of  it  which,  had  there  been  no !  paper  money,  the  pr^je£tqr 
)  woi^^ave  been  obliged  to  keep  by  *  him , '.  unemployed  and;  in  ready 
'inonty,  foranfwering  occafional  demands.    The  greater  .part  of 
<t!us  paper  was,  confequently,  over. and  , above ^ the '^ue  of  the 
•goM'-and  filver  which  would  have  ciradated.in  the  country,  had 
there  been  no '  papen  money.     It  was ,  over  and  above,  therefore, 
'what  the  cir^^l^^on  of  the  countryxould  cafdy  dbferb  and. em- 
*]^kify,^and,  upon  (that<:> account,   immediaitely  f  returned  upon  .the 
banks  in  oikler  to  be  exdiangod^fbr  gold  and  filver, -which  they 
•were  to  find  as  they  coukl.     It  'was  .a    coital    which  ilhofe 
^pi^jjcftors  had  very  artfully  Contrived  to  At&vr  from  thofe  banks, 
not  only  without'  their 'knowledge  *  or-  deliberate  ooafent,'  but  ffor 
<fomettme,  perhaps,  without !theiit:having  the  mafl:.diAaxit  fufpicion 
'^hiafihey  had  reaMy  advanced  it. 

When  two  people,  who.  are  continually  drawing  arid  re-drawjrig 

upon  one  another,  difcount  their  Kills  ialways  with  'thd  fame  banker. 

Vol.  I.  3  C  he 


n 


'37« 


THE    NATURE    AND    CAUSES    ©f^ 


B  op  K  he  muft  immediately  difeover  whjlt  theyiarfr  aboiiti>  and  ico  cka% 

that  they  are  trading,  not  with  any  capital  of  fihdr  owAj  but  with 
the  capital  which  he  advances  to  them.  But  this  difcovery  is  notaA-- 
together  fo  eafy  when  they  difcount  their  bills  fomeitimeBi  with  lone 
banker,  and  fometimes  with  another,  and  when  the  fame  two  pen* 
fons  do  not  conftantly  draw  and  re>draw  upon  one  another,;  but 
occaiionally  run  the  round  of  a  great  circle  of  projeflors,  who  find 
it  for  their  intereft  to  aflift  one  another  in  this  method  of  i^ifing 
money,  and  to  render  it,  upon  that  account,  as  di^ult  sva  pof- 
fible  to  diftinguifh  between  a  real  and  a  fictitious  bill  of  exchange; 
between  a  bill  drawn  by  a  real  creditor  upon  a  real  debtor,  and  a 
bill  for  which  there  was  properly  no  real  creditor  but, tliej^k 
which  difcounted  it ;  nor  any  real  debtor  but  the  proje(5lor  who 
made  ufe  of  the  money.  When  a  banker  had  eve^  m^e  ihis 
difcovery,  he  might  fometimes  make  it  too  late,  and  might,^d 
that  he  had  already  difcounted  the  bills  of  thofe  projectors  jtp.i^ 
great  an  extent,  that  by  refufing  to  difcount  any  more,  bf^w^uM 
neceflarily  make  them  all  bankrupts,  and  thus,  by  ruining  tj^pm, 
might  perhaps  ruin^himielf.  For  his.  own  intereft-  and  ,fafet^, 
therefore,  he  might  find  it  nece(&ry,  in  this  very  perilpus  fituat^n, 
to  go  on  for  fome  time,  endeavouring,  however,  to  withdraw 
gradually,  and  upon  that  account  making  every  day  greater,  and 
greater  difficulties  about  difcounting,  in  order  to  force,  tl^ofe  |)jroj|^- 
tors  by  degrees  to  have  recourfe,  ather  to  other  bankers,  or  to 
other  methods  of  raifing  money  j  (b  as  that  he  himfelf  might,  as 
foon  as  poflible,  get  out  of  the  cirde.  The  difficulties^  accordingly, 
which  the  bank  of  En^and,  which  the  principal  bankers  in 
London,  and  which  even  the  more  prudent  Scotch  banl^s  l>egan, 
after  a  certain  time,  and  when  all  of  them  had. already  gpnp  too 
far,  to  make  about  difcounting,  not  only  alarmed,  but  enraged 
in  the  hig^eft  degree  thofe  projectors..  Their  own  diflref^j,.  of 
which  this  prudent  and  neceilary  referveof  the  banks,  was,  ho 

doubt. 


TWE  ft  Wi: A  L  inV  aO  R  ijN  a  T  10  N  6w 


37* 


doubty  the  immediate' occafKMif  tbey  calkd  the  diArefs  of  the  coun-  c  H  A  p. 
.tiy^''  dMd  this  diftre&  of  the  country*  they  faid,  was  altogether 
o#ing[ita  the^horancei.  :t>ufiUMumity<  and  bad  condudl  of  the 
banldj  whidi  did  not  give  a, iufficiratly  liberal  aid  to  the  fpirited 
undertakings!  of  thofe'  who  exerted  themfelves  in  order  to  beautify, 
improve,  and  enrich  the  country.  It  was  the,  duty  of  the  banks* 
tiwy  ieeined  to  think,  to  lend  for  as  long  a  time*  and  to  as  great 
an  (extent  as  dieynught  wiih  to  borrow.  The  banks,  however, 
tiyrefufiftg  ifi  this  manner  to  give  more  ci'edit  to  thofe  to  whom 
they  had  steady  given  a  great  deal  too  much,  took  the  only  method 
by  whichit  was  now  poffible  to  fave  either  their  own  credit,  or  the 
piiblickcre^t  of  the  country.  .  i  h  *M  i<^...-;,f-  , 
ori/v  iOJj:, (....;    .;  :  .    ,    JKy*   v(U<  'ion  ;  u  imauailih  ii„u\  y 

'"^iN'te'nfld(iroif'M^m\)iir  ^Hfci^ftreisi'i'  tfe^^  'baiik  Was  efta- 
'^iifli^d  in  Scotland  for  the  exprefs  purpofe  of  relieving  the  diftrefs 
iif  thd  cduntry.    The  delign  Wds  generous;   but  the  execution 
*^a^  iili|)rud6ht,  and  th6  nature  and  caufes  of  the  diftrefs  which  it 
•iiiiefitirto  relieve,  were  nbt,  perhaps,  well  underftood.    This  bank 
*^ii  m6tt  liberal  than  any  other  had  ever  been,  both  in  granting 
'ca(h  accounts,  and  in  dilcounting  bills  of  ej^ehange.     With  regard 
"ib  the  latter,  it  feems  to  have  made  fcarce'any  diftindtion  between 
%al  and  circulating  bills,  but  to  have  difcounted  all  equally.    It 
"w4stilc'aVbv^^^'  principlebf  this  bank  to  advance.,  upon  any  rea- 
sonable fec^iirity,  the  whole  capital  which  was  to  be  employed  in 
'improvements  of  which  the  returns  are  the  moft  flow  and  diftant, 
'  fucli  as  the  improvements  of  land.    To  promote  fuch  improvements 
-was  even  faid  to  be  the  chief  of  the  publick  fpirited  purpofes  for 
'  which  if  was  inflitiited.    By  its  liberality  in  granting  cafli  accounts, 
■  and  in  difcounting  bills  of  exchange,  it,  no  doubt,   iflued  great 
'  quantities  of  its  bank-notes.     But  thofe  bank-notes  being*  the 
greater  part  of  them,  over  and  above  what  the  circulation  of  the 
country  could  eafily  abforb  and  employ,   returned  upon  it,  in 

3  C  2  order 


1 


m 


^id  TJFIE    NAtURE    ANb    fcAWSES'  OP 

B^6^K  oWer  to  be  iicfchanged  for  gold  and  filver,  ai  Itift  at  they  Mrene 
C3$G>  irtlied.  Its  Ccffers  ^efe  nerer  wcM  fiHed.  The  Icapital  which  had 
httti  fabfcfibcfd  to  this  bank  at  two  difftrtnt  fiibfbriptlons,  amovinted 
to  orie  hotidt'ed  and  fixty  thonfand  pounds,  ©f  which  eighty  per 
cent,  only  was  paid  np.  This  fam  ought  to  have  been  paid  in 
at  feveral  difftrcnt  inftalfments.  A  great  part  of  the  ppoprietorti 
when  they  paid  in  their  firft  inftallment,  opened  a  cafh  account 
Witti  the  bank  i  and  the  direftors,  thinking  themfdvc*  obliged  to 
treat  their  own  proprietors  with  the  fame  liberality  with  whkh  they 
treated  all  bther  men,  allowed  many  of  them  to  borrow  upon  this 
.  ca(h  accotint  wh^  they  paid  in  wpon  all  their  (tibfequent  infbll- 
ments.  Such  payments,  therefore,  only  put  into  one  eoffibr,  wkafhad 
the  moment  before  been  taken  out  of  another.  But  had  the  coffers  of 
this  bank  been  filled  e^^r  fo  Well,  its  exceflive 'cireolatioit  ibuft' 
have  emptied  them  fafter  iJnn  tkey«ould  hafve  been  replenifhied 
by  any  c^her  exipedient  but  the  ruinoue  one  of  drawing- upon.  Loiv» 
don,  and  when  the  bill  -bocaiae  due,  payii^  it,  together  wit)i 
intereft  and  commiffion,  by  anolhn^  draught  upon  the  iaooe  place. 
Its  coffers  httmg  been  fiUed  fbvery  iU»  it  is  faid  to  h9w  been 
driven  to  this  jrefoorce  within  a  very  few  months  ^fter  it  began  to 
•do  -baiinefs.  The  eftates  of  the  proprietors  of  this  bank  wei% 
'Wordi  ^eral  milHons,  and  by  their  fubfcuiption  'to  the  original 
-bend  or  c<»itra6):  of  the  bank,  were  really  pledged  for  anfweriog 
rail  its  engagements.  By  means  of  the  great  credit  which  fb  great 
a  pledge  ^neceffinily  gave  it,  it  was,  notwithftanding  its  too  liberal 
conduA,  enabled  to  carry  on  bufmefe  for  more  than  two  years. 
When  tt  was  ol^ed  'to  fl^,  it  had  in  the  circulation  about 
two 'hundred  thoufclnd' pounds  in  bank-notes.  In  order  to  fqp. 
'-port  ifaedrcuIati(Hi  of  thofenotes,  which  were  continually  retufh- 
ing  upon  (it  as  hft  as^tliey  were  iiTued,  it  had  been  conftantly 
in  the  pinCfciee  >of  /drawing  bills  of  exchange  upon  London,  of 
>%irhkh'thie  number  aixl  vsdue  were  continually  incfeafii>g,  ain^, 
'  ■  -  4  when 


THE-  WEALTH    OF    NATIONS. 


38* 


lilien  It  (tQf>t,  ampunted  to  upwards  of  fix  hundred  thoufand  C^jA^r 
{KMinda*  Thi9  bank,  therefore,  had,  in  little  more  than  ,t|>e 
CQurie  of  two  years,  advaqped  to  diiScrent  people  upwards  o^ 
faght  l^uodred  thoufand  poinds  at  iive  per  cent.  Upon  tlie  twq 
liundred  thoufand  pounds  >yhich  it  circulated  in  bank-notes,  this 
five  per  cent,  might,  perhaps,  be  confidered  as  clear  gain,  withou|: 
Any  (^er  deduction  befides  the  expence  of  management.  But 
iiippQ  ifp^mr^d^  of  fix  hundred  thoufand  pounds,  for  which  it  was 
fc^tixmalliy  drawing  bijls  of  exchange  upon  London,  it  was  paying, 
in  the  way  of  intereft  and  commiHlon,  upwards  of  eight  per 
Gent,  and  was  confequently  lofing  more  than  three  per  cent,  upon 
^j;B^n.|^ee-^vu:t|iso^^4Ut3  dealings. 


k» 


{|<,7^H.  operations  of  this  hank  feem  to  have  produced  eSe£ls  quit9^ 
oppofite  to  thofe  which  were  intended  by  the  particular  perfons 
who  planned  and  directed  it.  They  feem  to  have  intended  to  fap- 
^oit  t];ie  fpirited  undertakings,  for  as  fueh  they  confidered  them^, 
jnrhiqh  yreue  at  that  tin\e  carrying  on  in  different  parts  of  the  coun« 
.try)  and  at  tlie  iame  t^e,  by  drawing  the  whole  banking  bufinefs 
^o  tliemfelves,  to  fupplant  all  the  other  Scotch  banks;  particularly 
jtlitofe  e/Ubliihed  at  Edinburgh,  whofe  backwardnefs  in  difcounting 
.]M^9.of  exchange  had, given  fome  ofifence.  Tliis  bank,  no  doubt, 
^ve  iwe  ten^poraiy  relief  to  thofe  projectors,  and  enabled  them 
Jig  carry  on  thqir  proje£i;s  for  about  two  years  longer  than  they 
^j^pvjjd  pt^erwife  hf^ve  dpne.  But  it  thereby  only  enabled  them  to 
_g,et  fo  mpch  deeper  into  det>t,  fo  that  when  ruui  came,  it  fell  fo 
,n^<jh  ^]>e  heavier  both  upQn  them  ^nd  upon  ^heu-  creditors.  The 
,pperatiQn8  of  .this  bankt  therefore,  inftead  of  relieving,  in  reality 
'^g^vated  in  the  long-rnn  tlie  di|trefs  \yhich  thofe  projectors  ha^ 
.biTPPght  both  upon  th?n»felyes^  upon  their  country.  It  wpv^l^  have 
.been  much  better  for  thcinfelves,  their  cre4itprs  ,an4  their  country, 
.h^d  the^  greater  part  pf  theni,t>cen  obliged  tp  ilpp  two  years  fponer 
i^'i'  than 


' 


fhis  bank  afforded  to  ttiofe  proje£lors,  proved  a  real  arid  perihaneht 
XiMcf  to  the  other  Scotch  banks.  All  the  dealers  in  cii-culatinibJfls 
of  exchange,  which  thofe  other  banks  had  become  fo  l)adtwar^'iii 
dilcounting,  had  recourfe  to  this  new  bank,  where  they  were  it-. 
ceived  with  open  arms.  Thofe  other  banks,  therefore,  were 
enabled  to  get  very  eaflly  out  of  that  fatal  circle,  from  which  they 
coald  not  otherwife  have  difengaged  themfelves  without  in^irring 
a  confiderable  lofs,   and  perhaps   too  even  fome  degree  o^'dij- 

■m.ii.,;/ ./ J&rfj.ol  _sij5.u6qai03  yd v  •.  •."       - '    •>  ibib  gfli 

It*  the  long-run,  therefore,  the  operations  of  this  bank  increaled. 
the  real  diftrefs  of  the  country  which  it  meant  to  relieve;  an^ 
effectually  relieved  from  a  very  great  diftrefs  thofe  rivals  whbniit 
meant  to  fupplant,-    ,       '       '  \'.,     ' 

At  the  firft  fetting  out  of  this  bank,  it  was  the  opinion  of  fi>me 

people,  that  how  fafl  foever  its  cofiers  might  be  emptkd*  :it  fugbt 

eafily  replenifh  them  by  raifing  money  upon  the  fecnrities  of '  thole 

to  whorti  it  had  advanced  its  paper.    Experience,  I  believe,  ibon 

-convinced  them  that  this  method  of  raifing  money  was  by  much 

too  flow  to  aiifwer  their  purpofe;  and  that  coffers  which  ori^natty 

Mtrt  fo  infilled,  and  which  emptied  themfelves  fo  very  faft*  could 

<bereplenifhed  by  no  other  expedient  but  the  ruinous  one  of  drawing 

-Hlls  upon  London,  and  when  they  became  due,  paying  them  by 

othardr^ghts  upon  the  fame  place  with  accumulated  intereft  iand 

jCommifllon.     But  though  they  had  been  able  by  this  method  vto 

raife  money  as  faft  as  they  wanted  it;   yet  inftead  of  making  a 

^profit,  they  muft  have  fuffered  a  lofs  by  every  fuch  operation  j  ib 

fthat  in  the  long-run  they  muft  have  ruined  themfelves  as  a  mer- 

/Mcantile  company,  though,  perhaps,  not  fo  foon  as  by  the  more 

^xpeniwe  pra^ice  of  dray^ng  suid  re-drawing.    They  could  flill 

•-7'^y  ■  have 


.^.H!?^^E4L.qrH.  o^  N^^^iq^^, 


sh 


have  made  potl^lng  by  the  intereft,  of  tjie  p^per,  whifh,  being  py?r  C  HA  P. 
,sind  above  what  the  circulation  of  the  country  could  abfprb  aiMJl 
omplpyn  returned  upon  them,  in  order  to  be  exchanged  for  gold 
^nd  j^lver,  as  faft  as  they  iflued  itj  and  for  the  payment  of  whi^h 
they  were  themfelves  continually  obliged  to  borrow  money, ,  Op 
the  contrary*  the  whole  expence  of  this  borrowing,  of  employing 
agents  to  look  out  for  people  who  had  money  to  lend,  of  nego** 
dating  with  thofe  people,  and  of  drawing  the  proper  bond  or  afllgn- 
ipf ntf,  mud  have  fallen  upon  them,  and  have  been  fo  much  clear 
lofs  upon  the  balance  of  their  accounts.  The  proje£l  of  replenifh- 
ing  their  coffers  in  this  manner  may  be  compared  to  that  of  a  man 
w]io  had.  a  water-pond  from  which  a  ftream  was  continually 
running  out,  and  into  which  no  ftream  was  continually  running, 
hxii  who  propofed  to  keep  it  always  equally  full  by  employing  a 
number  of  people  to  go  continually  with  buckets  to  a  well  at  fome. 
miles  diftance  in  order  to  bring  water  to  replenilh  itJ''''  "",^"  "*''■'; 

^mSjir  thou^i  this  operation  had  proved,  not  only  pra£licabl6, 
ioi^t  profitaUis  to  the  bank  as  a  mercantile  company;    yet  the 
country  could  have  derived' no  benefit  from  it;  but,  on  the  con- 
trary, muft  have  fuffered  a  very  confiderable  lofs  by  it;     This  ope- 
ration could  not  augment  in  the  fmalleft  degree  the  quantity  of 
titen^' to  iae.  lent.    It  could  only  have  ereded  this  bank  into 
l^u^tVioi  general-  loan   office  for  the  whole  country.    Thofe 
.who  wanted  to  borrow,  muft  have  applied  to  this  bank^  inftiead'Of 
•applying  to  the  private  perlbns  who  had  lent  it  thdr  money.     Bnt 
imbtok  which  lends   money,  perhaps,    to  five  hundred  different 
people;  the  greater  part  of  whom  its  directors  can  know  very  little 
d>out^  is  not  likely  to  be  mote  judicions  in  the  choice  of  its 
(debtors,  than  a  piivate  perfon  who  knds  out  his  mohey  among 
a  few  people  whom  he  knows,   and  in  whofe  fober  and  friijgal 
condu6l  he  thinks  he  has  good  reafon  to  confident    The  debtors 
of  fuch  a  /batik,  aa  that:  whofe  conduct:  I  have  been  jgivinfg  fonte 

account. 


2h 


THE    NATUR'e    ANb    CAUSES 


oV 


B 


OOK  account  olf,  were  likely,  tHe  grektcr  pirt'bf  IfikiA.'to  Ife  dilwfe- 
rical  proje^ors,  the  drawers  and  re-drawers  of  circulktiAg  bihs 
of  exchange,  who  would  erhploy  the  money  in  extrav»|;aEnt  under- 
takings, which*  with  all  the  afltftance  that  could  be  givAt  t^ettit 
they  would  probably  never  he  able  to  cohiplete,  ianU  Which,  if 
they  Hiould  be  compleat^^  would  Heifer  repay  the  exp^ce  Whieh 
they  had  really  coft,  would  never  'af!brd  a  fund  capable' df  'rnHn- 
taining  a  quantity  of  labour  equal  to  that  which  had  b6en  em- 
ployed about  them.  The  fober  and  frugal  debtors  6f  ptiv^te 
perlbns,  on  the  contrary,  would  be  more  likely  *to  eriipWy  the 
money  borrowed  in  fober  undertakings  which  were  proportioned 
to  their  capitals,  at^d  whi^h,  though  they  might  have  lefs  6f 
the  grand  atid  the  marvellous,  woiild  h^ve  more  6f  fhe  fbUd 
and  the  profitable,  which  wduld  repay  with  a  liaJrge^itofitvf hat- 
ever  had  been  laid  out  updn'thehl,  ahd  whi^h  V^obfd  thus  dffbrd 
a  fund  capable  of  mainiftinirtg'a^fnuch^gf^^er  '^ififcHVy^'^f  lib^ 
th^t>  that  which  had  been  employed  about  them.  The  fuccsfs 
.pf  this  operation,  therefore,  without  enicreafing  m  the  fmalleft 
degree  the  capital  of  the  country,  would  only  have  trilhslej'red  a 
great  part  of  it  frpm  prudent  and  profitable,  to  imprudent  and 
unpro^table  un4ertakings. 

'■  'That  tfie'JncIuftry^  of  Scotla'Ad  kngdifHed  for  'wirtt  6f  ttidWey 
to  employ  it,  was  the  opinion  of  the  famous  Mr.  hitw.  By  isftjl- 
blirtiiiig  a  bihk  of  a  pirticWlar  kind.  Which,    he  fcertls  to  have 

'  iniagined,  '  Alight  iflue  pkper  to '  the  aWo^t  6f  the  '^Whdle  value 
of  airthe  lands  iii  the  country,  he  prbpttfed  to  reAiedy  tJris  want  of 

'  money.  The'  parliartjehf  of  Scotland,  whea'  he  firft  prbpofed  his 
prc^eft,  did  riot  think  pybper  to  addptit.  It  v^as  aftervfai*ds 
adopted,  with  forae  variati6ns,  by  thcdake  of  Oricahs, -at^-fliat 

'  time  r^ht  df  Ffknte.    The  idea  of  the  poffibility  of*  mnltiplying 

'paper  riicJriey  td'klhidft'afn^fextfefit,  was  the  reklfdttridatibrf^bf  what 
IS  called  the  Mldifiippi  fchenie,  the  liioff  ejftiavagWit'projiea^bbfh 

...i-'  -.   r    .  of 


THE    WEALTH    OF    NATiaNS. 


of  banking  snd  ftiock- jobbing  that,  perhaps,  the  workl  ever  faw.  CHAP. 
The  different  operations  of  this  fcheme  are  explained  fo  fUlIy,  fo 
clearly,  and  with  (6  much  order  and  diftin^tnefs,  by  Mr.  Du 
yerney,  in  his  Examination  of  the  Political  Reflections  upon 
^Commerce  and  Finances  of  Mr.  Du  Tot,  that  I  (hall  not  give 
any  account  of  them.  The  principles  upon  which  it  was  founded 
are  explained  by  Mr.  Law  himfclf,  in  a  difcourfe  concerning  money 
and  trade,  which  he  publiihed  in  Scotland  when  he  firft  propofed 
iiis  project.  The  fplendid,  but  vilionary  ideas  which  are  fet  forth 
in  that  and  fome  other  works  upon  the  fame  principles,  {till  con- 
tinue to  make  an  imprefHon  upon  many  people,  and  have,  perhaps* 
in  part,  contributed  lo  that  excefs  of  banking,  which  has  of  late 
1  been  complained  of  both  in  Scotland  and  in  other  places. 

^,    Thu  bank  of  England  is  the  greateft  bank  of  circulation  in 

t3w:ope.    It  was  incorporatecl,  in  purfuance  of  an  a£t  of  parlia- 

iinent,  by  a  chaiter  under  the  great  feal,  dated  the  27th  July,  1694. 

^,1t  at  that  time  advanced  to  government  the  fum  of  one  million  two 

fi^VP^dred  thoufand  pounds,  for  an  annuity  of  one  hundred  thou- 

eiand  pounds;  or  for  96,000 1.  a  year  intereft,  at  the  rate  of  eight 

t  per  cent.«  and  4000 1.  a  year  for  the  £xpence  of  management.     The 

credit  of  tbe  new  government,  eftablilhed  by  the  revolution,  we 

may  believe,  muft  have  been  very  Jow,  when  it  was  obliged  to 

\  "borrow  at  fo  high  an  intereft.  I 

tU  1697  the  bank  was  allowed  to  enlarge  its  capital  ftock  by  an 

cngraftment  of  1,001,1711.  los.     Its  whole  capital  ftock,  there- 

^'JTore,  amounted  at  this  time  to  2,201,171 1.  los.     This  engraft- 

^Vient  is  faid  to  have  been  for  the  fupport  of  publick  credit.    I n  1 69 6 

jtallies  had  been  at  forty,  and  fifty,  and  fixty  per  cent,  difcount, 

and  bank  notes  at  twenty  per  cent.*.    During  the  great  recoinage  of 

the  filver,  which  was  going  on  at  this  time,  the  bank  had  thought 

proper  to  difcontinue  the  payment  of  its  not^s,  which  neceffarily 

voccafioned  their  difcredit.  ,   ,(,  ^..^  .-.^/-;|.^ 


■  ai 


.><, 


*  James  Poftlethwaite's  Hiftory  of  the  Publick  Rcv*miey*p^  s^Jt; 


) 


Vox.  L 


D 


IM 


3«6 


TIW3    WAfltiJRE    AtHfl)    CAtJSES  TPJF 


B  O  O  K  Im  .purTuAncc  of  the  ych  Aime^  e*  nrii.  the  bank  -sdMMcod  ^mI. 
paid  into  the  cxchequei',  the  iUm  of  ^oo»oool.i  auiumg  m 
all  the  Aim  of  1,600,000 1.  which  it  had  advanced  up^n  kt 
original  annuity  of  961O00I.  intercft  and  4000I*  for  rcxpanee  <«f 
nuinagement.  In  1708,  therofore>  the  credit  of  goveranmt  was  aa 
good  as  that  of  private  perfons,  iince  it  could  borrow  at  ftx  |)er 
cent,  intereft,  the  common  legal  and  market  rate  of  thofe  times.  In 
purfuance  of  the  fame  a6l,  the  bank  cancelled  exchequer  bills  to 
the  amount  of  1,775,0271.  17  s.  10  |d.  at  fix  per  cent,  intereft, 
and  was  at  the  fame  time  albwed  to  take  in  ilibicriptions  for 
doubling  its  capital.  In  1708,  therefore,  the  capital  of  the  bank 
tunounted  to  4,402,3431.1  and  it  had  advanced  to  governmenk 
the  fum  of  3,375,0271.  178.  xo|d. 

Br  a  call  of  fifteen  per  cent,  in  1709,  there  was  paid  in  W 
made  (lock  656,204 1.  i  s.  9  d. ;  and  by  another  of  ten  per  'c^ht; 
,in  1710,  501,4481.  12  a.  I  id.  In  confequence  of  thofe  two 
calls,  therefore,  the  bank  capital  amounted  to  5,559,995.1.  14.S.  8d.. 

*  In  purfuaiice  of  the  Sth  George  I.  c.  Ttxi.  1^  batik  purchdred' 
of  the  South  Sea  Company,  flock  to  the  amount  of  4,060,000 1,  u 
and  in  1722,  in  confequence  of  the  fubfcriptions  which  it  had: 
taken  in  for  enabling  it  to  make  this  purchafe,  its  capital  flbck  was; 
increafed  by  3,400,000!.  At  diis  time,,  therefore,  the  bank  hadl 
advanced  to  the  publick  9,375,027!.  17  s.  lo^d.  j  and  its  cajiital'. 
flock  amounted  only  to  8,959,995!.  148.  8d.  It  was  upon  this 
occafiori  diat  the  fum  which  the  bank  had  advanced  to  the  publick,. 
and  for  which  it  received  intereft,l>eganfirfl  to  exceed  its  capital  flock, 
or  the  jfumifor  livhich  it  paid  a  dividend  to  the  propiietoi^  of  Lmlc: 
flock  J  or,  in  other  words,  that  the  bank  began  to  hav  f\n  \n.ni' 
vided  capital,  over  and  above  its  divided  one.  It  has  continued  to> 
have  an  uriolrldcd  capital  of  the  fame  kind  ever  fmce.  In  1746- 
the  bank  had,  upon  different  occafions,  advanced  to  the  pub-i^ 
■*!'■■••      /•.    •  •;  lick.' 


THE    WEALTH    OF    NATIONS. 


3«7 


^  tut96i9oQt\.  and  its  divuied  oflpital  hadbeen  raUbd  by  different  C  ha  P( 
eallg  miAi  Aibftriptions  to  io,79«»ooo1-  The  (Vate  of  thofe  two 
fsmsi  hm  continued  to  be  the  lamt  evei  fitace.  In  puiToance  of  the 
4lh  ai  Oeorgt  III.  e.  25.  tHe  bank  ..^1  eed  to  pay  to  government  for 
Iks  renewal  of  its  charter,  1 10,000 1.  without  interel^  or  i*epaytneiYt. 
Thif  ftiin,  therefore,  dnd  not  increafc  either  of  thofe  two  c«ther  Anns. 

The  dividend  of  the  bank  hat  varied  according  t'>  the  vai'iafions 
in  tt".*.  sate  of  the  intereft  which  it  has,  at  different  times,  received 
fou  tic  money  it  had  advanced  to  the  publick,  as  well  an  Sfecordkng 
to  other  circomftances.  This  rate  of  intereft  has  gradually 
been  reduced  from  eight  to  three  per  cent.  For  fom«  years 
paft  the  bank  dividend  has  been  at  five  and  a  half  pa*  ceat. 

The  Aability  of  the  bank  of  England  is  equal  to  that  of  the 
Britifh  government.  All  that  it  has  advanced  to  the  pi  ^lick  mufl: 
he  loft  before  its  creditors  can  fuftain  any  lofs.  No  other 
banking  company  in  England  can  be  eilabliihed  by  a£l  of  parlia- 
ment, or  can  coniift  of  more  than  fix  members.  It  a£ls,  lot  only 
&s  an  ordinary  bank,  but  as  a  great  engine  of  ftate.  It  receives  and 
pays  the  greater  part  of  the  annuities  which  are  due  to  the  creditors 
of  the  publick,  it  circulates  exchequer  bills,  and  it  advances  to 
government  the  annual  amount  of  the  land  and  malt  taxes,  which 
4ire  frequently  not  paid  up  till  fome  years  thereafter.  In  thoiedif*. 
ferent  operations,  its  duty  to  the  publick  may  fometimes  have 
obliged  it,  without  any  fault  of  its  directors,  to  overftock  the  cir- 
culation with  paper  money.  It  likewife  difcounts  merchants  bills» 
and  has,  upon  feveral  different  occations,  fupported  the  credit  of  the 
principal  houfes,  not  only  of  England,  but  of  Hamburgh  and 
HoHand.  Upon  one  occafion  it  is  faid  to  have  advanced  for  this  purt^ 
pofct  in  one  week,  about  1,600,000 1.  j  a  great  part  of  it  in  bullion. 
I  do  not,  however,  pretend  to  warrant  either  the  greatnefs  of  die 
(urn,  or  the  ihortnefs  of  the  time.  Upon  other  occafions,  this  grejet 
^company  has  been  reduced  to  the  neceflfity  of  paying  in  iixpences. 

3  D  a  It 


i 


3^8 


BOOK 
II. 


Joli^  llj iinot!  %y  «iugtnet^l5rig'th«'44^lf«l«o^HkP^c«^*fl^  fey 
rendering  a  greater  pii^t  of  thaticapitid  a€live'^hi<J^pW)du^i^ 
than  would  otherwife  be  fo,  that'  the  n«^  jildicious-operjftiorii 
of  banking  can  increafe  the  induftry  of  the  countly.  Thit'iwitt 
of  his  capital  which  a  dealer  is  Obliged  to  keep  by  hnfh 'tttibni- 
ploycd,  and  in  ready  money  for  anfwering  occafional  derharids 
is  fo  much  dead  flock,  which,  fo  long  as  it  remains  in  this  fitu- 
ation,  prcJuces  nothing  either  to  him  or  to  his  country.  The 
judicious  operations  of  banking,  enable  him  to  convert  this  dead 
flock  into  aftive  and  produdlive  ftockj  into  materials  to  work 
upon,  into  tools  to  work  with,  and  into  provifions  and  fub- 
fiftence  to  work  for ;  into  ftock  which  produces  fomething  both 
to  him  and  to  his  country.  The  gold  and  filver  mont^y  Wliich. 
circulates  in  any  country,  and  by  means  of  which,  the  produce 
of  its  land  and  labour  is  annually  circulated  and  diftiibufed  to 
the  proper  confumers,  is,  in  the  fame  manner  as  the  ready  money 
of  the  dealer,  all  dead  ftock.  It  is  a  very  valuable  part  of  the 
capital  of  the  country,  which  produces  nothing  to  the  country. 
The  judicious  operations  of  banking,  by  fubftituting  paper  in  the 
room  of  a  great  part  of  tW^  gold  iand  filver,  enables  the  Country 
to  convert  a  great  part  of  this  dead  ftock  into  aftive  and  produc- 
tive ftock ;  into  ftock  which  produces  fomething  to  the  country. 
The  gold  and  filver  money  which  circulates  in  dny  country 
may  vay  properly  be  compared  to  a  highway,  which.  While  it 
circulates  and  carries  to  market  all  the  grafs  and  corn  of  the 
country,  produces  itfelf  not  a  fingle  pile  of  either.  The  judi- 
cious opers^tioi>s  of  banking  by  providing,  if  I  may  be  allowed 
to  violent  a  metaphor,  a  fort  of  >vaggon-way  through  t^e  air; 
"enable  the  country  to  convert,  as  it  were,  a  great  part  of  its 
highways  into  good  paftures  and  corn  fields,  and  thereby  to  in- 
creafe very  confiderably  the  annual  produce  of  its  land  and  labour. 
*rhe  commerce  and  induftry  of  the  country,  however,  it  muft  be 
acknowledged,  though  they  may  be  fomcwhat  augmented,  caimot 

be 


H'^H^ ^yfgn^ him,  Q\m  tt at^i cmi% 


3% 


vpoiit  ttl^jDfWfJalian  wing^ ;  ,pf;  paper  money,,  as,  wljien  they  tyfav^ 
abQVi^^Hpon  the  foUd  ground  of , gold  andjlver.  Over  ap4  ahpM« 
th^^^j;jdfnts  tp  wt^ich^Uiey^ar^  qcpofed  irojpi  (be,  unikUfubefs  of 
the  ipQndiiiiSbors^of  ^is  paper  mp^ey,  they  are  liaise  to  rqveral,other^« 
from  which  no  prudence  or  fjkill  of  thofe  condudtora  can  g^a|:4 

*.  An  ijmiiccefsful  war,  for  example,  in  which  the  enemy  got 
pofleflion  of  the  capital,  and  confequently  of  that  treafure  which 
fupported  the  credit  of  the  paper  money,  would  occafion  a  much 
greater  confufion  in  a  country  where  the  whole  circulation  waj 
canned  oiji,  by  paper^  tjian  in  one  where  the  greater  part  of  it  was 
car,!fi^<jl^,ot)ij,^y  gpld.  and  fily;?r..,  The  vffualmfl^rument  of  commerce 
having ^Ipft  its  value,  no  exchanges  could  be  made  but  either  by 
i^^t^  o|:,  ,vippn  credit.  All  tax,es  haying  been  ufually  paid  in  paper 
xpfiYi^Y,  the  prince  would  not  have  wherewithal  either  to  pay  his 
troppi^^i  or  to  fumiih  his  magazines ;  and  the  ftate  of  the  cpuhtry 
jiypu)4  be  imich  more  irretiievable  than  if  the  greater  part  of  its 
iircolation  had  condfted  in  gold  and  fllver.  A  prince,  anxious  to 
mainta'm  his  dominions  at  all  times  in  the  ftate  in  which  he  can 
TOplt  eafily  defend  them,  ought,  upon  this  account,  to  guard,  not 
pilly.againil  that  exceflive  multiplication  of  paper  money  whioh 
i^uins  the  very  banks  which  ilTue  it;  but  even  againft  that  multi-r 
plication  of  it,  which  enables  them  to  fill  the  greater  part  of  the 
circulation  of  the  country  with  it,  ,jo^Ia.v,<i  «/iJ(i»Jv. 

■  The  cii^culatipn  of  every  country  may  be  confidered  a^  di^nlded 
into  two  different  bpanches ;  the  circulation  of  the  dealers  with' one 
another,  and  the  circulation  between  the  dealers  and  the  confumers* 
Though  the  fame  pieces  of  money,  whether  paper  or  metal,  may 
be  employed  fometimes  in  the  one  circulation  and  fometimes  in  the 
other,  yet  as  both  are  conftantly  going  on  at  the  fame  time,  each 

•     requires 


\m 


3^ 


THE    NATURE    AKt)    CAUSES    OF 


tfo  O  IC  requires  a  certain  ftock  of  money  of  one  kiiid  or  another^'  tOf  oarrfr 
^  '  it  on.  The  value  of  the  goods  eircolated  btfttvem  the  ififferem: 
ilealers^,  never  can  exceed  the  value  of  tht>fo  circttia(tedf  bbttveen  the 
dfealeri  and  the  confumerar  whatever  is  bought  by  tfe  efealewi 
being  ultimately  deftined  to  be  fold  to  the  conAnnera.  T*«  cU:©** 
ktion  between  the  dealers,  as  it  is  carried  on  by  wholefale,  requires 
generally  a  pretty  large  fum  for  every  particular  tranfa£tion.  That 
between  the  dealers  and  the  confumers,  on  the  contrary*  as  it  is 
gene^ly  carrlttl  on  by  retail,  freqAiently  requires  b>it  very  fn(iaU 
ones,  a  ihilling,  or  even  a  halfpenny,  being  often  fufficient.  But 
final!  hitis  circulate  nluch  fafter  than  large  ones.  A  Shilling  changes 
mdfters  more  frequently  than  a  guinea,  and  a  halfpomy  mote 
^equentty  than  a  (hilling.  Though  the  annual  purehaf^  of  aH 
tht  conlumers,  therefore,  are  at  leaft  equal  in  value  to  thofe  of  afl, 
thediesders,  they  can  generally  be  franfa^ed  with  a  much  ibiaKer 
q;iianttty  (^  money ;  the  fame  pieces,  by  a  more  rapid  cii$\iltnicm» 
ferving  as  the  inflirument  of  many  more  purcha(b3  of  the  one  kind 
than  of  the  other.  ,         ,,   ,,.        ,,, riM-^naDw  ri 

S      ,    .  i  ..     .:.(  ...J.  "i.,   * ..... 

Paper  money  may  be  fo  regulated,  as  either  to  confine  it(elf 
very  much  to  the  drcuiation  between  the  difiorent'  dealers,  pr  to 
extend  itfelf  likewife  to  a  great  part  of  that  between  the  dealers 
and  the  confumers.  Where  no  bank  notes  are  circulated  under  ten 
pounds  valuei,  as  in  London,  paper  money  confines  itfblf  Very  much 
to  the  circulation  between  t  Ae  dealers.  When  a  ten  pound  bank 
note  comes  into  the  hands  of  a  confumer*  he  is  generally  obliged  to 
change  it  at  the  firft  fliop  where  he  has  occafion  to  purchafe  five 
Ihillings  worth  of  goods,  fo  that  it  often  retumsr  ln«o  the  hatids  of 
«  dealer,  before  the  confumer  has  fpent  the  fortieth  part  of  the 
jfnoney.  Where  bank  notes  are  iflfued  for  fo  fmatl  dims  asr  twenty 
ihillings,  as  in  Scotland^  paper  money  extends  if  felf  to  a  eonfiderable 
{MTt  of  the  circulation  between  dealers  and  cor^umers.  Before  the 
mSt  of  parliament,  which  put  a  fVop  t&  the  circulafion  of  ten  and 
i'  4  r  five 


T  H  E  ^WB  ALTM    O  P'^  N  Jit  t  O  N^  J 


3^« 


^veiihiUing)  dotes,  it  filled  i  iM  grd^r  ^  dF  liha^  du^tltliitibh;  C  HA  p. 
ia  tthisxiinfeixcics  of  Nortii  America>  ipaper  was  commonly  iillied 
for  foihaall  a  fum  ^s  a  {hilling,  and  filled  alm6ft  the  whole  of 
that  ciDsuktdoi^^    fa  fome  paper  currencies  of  Yorkfhire,  it  was 
«fi«ed  evejpi  for  ^  fiz^l  11  A;im  as  a  fixpence. 

Where  theiifiiing  of  bank  notes  for  fuch  very  fmall  Aims  is 
allowed  and  commonly  praflifed,  many  mean  people  are  both 
«neMed  and  encouraged  to  become  bankers.  A  perfon  whofe  pro- 
miflbry  note  for  five  pounds,  or  even  for  twenty  (hillings,  would 
be  rejefted  by  every  body,  will  get  it  to  be  received  without  fcruple- 
•whnft  it  is  iffued  for  fo  fmall  a  fum  as  a  fixpence.  But  the  frequent 
itankrapCeies  to  whieh  fuch  beggarly  bankers  muft  be  liable,  may^ 
cccafion  a  vety  confideratde  inconveniency,  and  fometimes  even  a 
very^  greitfr^wtamity  to  many  poor  people  who  had  received  their 
notes in^pi^mtnt.   ^*^''^«  ''  ^'  -^-— 'i '^-^'  ''^'  '  v-  ■'■■'- Y-  '     '••" 

It  were  better,  perhaps,^  that  no  bank  notes  were  iflued  in  any 
I>art  of  the  kingdom  for  a  finaller  fum  than  five  pounds.  Paper 
money  would  then,  probacy,  confine  itfelf,  in  every  part  of  the- 
kingdom,  to  the  circulation  between  the  different  dealers,  as  mucb 
as  it  does  at  prefent  in  London,  where  no  bank  notes  are  inTueeb 
under  ten  pounds  value  ;  five  pounds  being,  in  moft  pasts  of  the 
kingdom,  a  fum  which,  though  it  will  purchafe^  peidiaps,  little- 
more  than  half  the  quantity  of  goods,  is  as  much  confidered,  and 
is  as  feldom  (pent  dit  at  once,  as  ten  pounds  ^e  amidft  the  profule: 
cxpence  of  London*  ,  ^    ,  .^  ..  u-.j    .,,1  .;^-- 

Where  paper  money,  it  is  to  be  obferved,  is  pretty  much  con- 
fined to  the  circulation  between  dealers  and  dealers,  as  at  Londonr 
there  is  always  plenty  of  gold  and  filver.  Where  it  extends  itfelf  t» 
a  confiderable  part  of  the  circulation  between  dealers  and  confumers^ 


:^l 


392 


THE     NATURE     AND     CAUSES     OF 


B  op  K  as  in  Scotland,  and  ftill  more  in  North  America,  it  baniflies  gold 
and  filver  almoft  entirely  fix>m  the  country ;  almoft  all  the  ordinary 
tranfa^llons  of  its  interior  commerce  being  thus  carried  on  by 
paper.  The  Aippreilion  of  ten  and  five  fhilling  bank  notes,  fome* 
what  relieved  the  fcarcity  of  gold  and  filver  in  Scotland }  and  the 
fupprefllon  of  twenty  ftiilling  notes,  would  probably  relieve  it  ftill 
more.  Thofe  metals  are  faid  to  liave  become  more  abundant  in 
America,  fince  the  fuppreffion  of  fome  of  their  paper  currencies. 
They  are  faid,  likewife,  to  have  been  more  abundant  before  the 
inftltutjon  of  thofe  currencies. 


Though  paper  money  fhould  be  pretty  much  confined  to  the 
■circulation  between  dealers  and  dealers,  yet  banks  and  bankers 
might  ftill  be  able  to  give  nearly  the  fame  afiiftance  to  the  induftry 
iuid  commerce  of  the  country,  as  they  had  done  when  paper  money 
filled  almoft  the  whole  circulation.  The  ready  money  which  a  dealer 
is  obliged  to  keep  by  him,  for  anfwering  occafional  demands,  is 
deftined  altogether  for  the  circulation  between  himfelf  and  other 
dealers,  of  whom  he  buys  goods.  He  has  no  occafion  to  keep 
any  by  him  for  the  circulation  between  himfelf  and  the  confumers, 
who  are  his  cuftomers,  and  who  bring  ready  money  to  him,  inftead 
of  taking  any  from  him.  Though  no  paper  money,  therefore,  was 
allowed  to  be  ifiued,  but  for  fuch  fums  as  would  confine  it  pretty 
much  to  the  circulation  between  dealers  and  dealers ;  yet  partly  by 
.difcounting  real  bills  of  exchange,  and  partly  by  lending  upon 
cafti  accounts,  banks  and  bankers  might  ftill  be  able  to  relieve 
the  greater  part  of  thofe  dealers  from'  the  neceifity  of  keeping  any 
confiderable  part  of  their  ftock  by  them,  unemployed  and  in  ready 
money,  for  anfwering  occafional  demands.  They  might  ftill  be 
able  to  give  the  utmoft  affiftance  which  banks  and  bankers  can, 
with  propriety,  give  to  traders  of  every  kind. 


jn- 


«»» 


To 


to 

w 
pr< 


THE    WEALTH    OF    NATIONS. 


393 


l> To,,  ffiftr^'ui.  private  peqple^^it  may  b?  faid,  from  receiving  in  CMAP. 
payi^jat  theprpnuQary  notes  of  a  banker,  for  any  fum  whether 
^(-ej^  or  AQall,  when  they  themfelves  are  willing  to  receive  them  j  Or, 
tf>  ^eftrain  a  bs^nkq-  from  iflliing  fach  notes,  when  all  his  neighbours 
af^  willing  tQ  accept  of  theiti,  is  a  manifeft  violation  of  that  natural 
;ii^.erty  which  it  is  the  proper  buiinefs  of  law,  not  to  infringe,  but  to 
iupport.  Such  rjzgulations  may,  no  doubt,  hi  confiderod  as  in 
fQme  refpe£t  a  violation  of  natural  liberty.  But  thofe  exertions  of 
l^e  natural  liberty  of  a  few  individuals,  which  might  ehdangf^*  die 
fecurity  of  tji$  vfhole  fociety,  are,  and  ought  to  be,  reftrained  by 
the  laws  of  all  governments;  of  the  moft  free,  as  weU^a^  of  the 
moH  defpotical.  The  obligation  of  building  party  walls,  ia  order 
to  prevent  the  communication  of  fire,  is  a  violation  of  natural 
Jji^t^«  e)ca£lly  of  th^  feme  kind  with  the  !regulation$  bf  thelsanking 
'tradg  which  k«;  here  prppoI^dJ''^  ^'  '''^«  ^'"'^  ''-^  ^'^^^  3^<  »^li  i^^f^t 

t-  A  PAPER  money  confiding  in  bank  notes,  ilTued  by  people  of 
■  «mdou|)tedcr^d^t,  payable  upon  demand  without  any  condition,  and 
{u^\U.&.  44iyays  readily,  paid  as  foon  as  preiented,  is,  in  every 
.fefpeft*  e<)ual,iaTalu^  to  gold  and  filver  money;  fince  gdld  and 
.  filver  ruoncy  ran  at  any  time  bo  had  for  it.  Whatever  is  either 
bought,  or  f9ld  iox  fuch  paper,  mud  necefiarily  be  bought  or  fold 
as  cheapasit  could  h^vebeen  for  gold  and  filver.._    \  '  % '.' 

*  The  increafe  of  paper  money,  it  has  been  faid,  by  aiigmehtihg 
the  quantity,  and  conlequeatly  diminifliing  the  value  of  the  y^hole 

.  current y«  i^celTarily  augments  the  money  pri(fe  of,  commodities. 
But  as  the  quantity  of  gold  and  filver,  which  is  taken  from  the 
currency,  is  always  equal  to  the  quantity  of  paper  vyhieh  b  added 

,  to  it,  paper  mfjneydojes  not  necefliarily  increafe  the  quantity  of  tlie 
whole  currency.  From  the  beginning  of  the  laft  century  to  the 
prefent  times^  provifionjSi  never  were  cheaper  in  Scotland  than  in 

,     Vol.  I.  3  E  17591 


\i 


\ 


J94 


*rHE    NATURE    AND    CAUSES    OF 


B  op  K  i7j;9,  though,  from  tht  circulation  of  ten  and  five  fliilling  bank 
notes,  there  was  then  more  paper  money  in  the  country  than  at 
prefent.  The  proportion  between  the  price  of  provifions  in  Scot- 
land and  that  in  England,  is  the  fame  now  as  before  the  great 
multiplication  of  banking -companies  in  Scotland.  Com  is,  upon: 
moft  occafionf ,  fully  as  cheap  in  England  as  in  France;  though 
there  is  a  great  deal  of  paper  money  in  England,  and  fcarce  any  in 
France.  In  1751  and  in  1752,  when  Mr.  Hume  publiihed  his 
Political  difcourfes,  and  foon  atur  the  great  multiplication  of 
paper  money  in  Scotland,  there  was  a  very  fenfible  rife  in  the  price 
of  provifions,  owing,  probably,  to  the  badnefs  of  the  fea(<ms,  and , 
not  to  the  multiplication  uf  paper  money. 

It  would  be  otherwise,  indeed,  with  a  paper  money  confiding; 
in  promifTary  notes,  of  which  the  immediate  payment  depended, 
in  any  rcfpeft,  either  upon  the  good  will  of  thofe  who  iflued  them  j 
or  upon  a  condition  which  the  holder  of  the  notes  might  not  always 
have  it  in  his  power  to  fulfil ;  or  of  which  the  payment  was  net 
exigible  till  after  a  certun  number  of  years,  and  which  in  the  mean- 
time bore  no  intereft.    Such  a  paper  money^  would,  no  doubt,  fall; 
more  or  le(s  below  the  value  of  gold  and  filver,  according  as  the 
difiiculty  or  uncertainty  of  obtaining    immediate;  payment  was 
fuppofed  to  be  greater  or  lefs;  or  accorcfing  to  the  greater  or.  lefs: 
diftance  of  .time  at  which  payment  was  exigible.. . 


Some  years  ago  the  different •  b^nkirtg  companies  of  Scotland! 
were  in  the  praftice  of  inferting  into  their  bank  notes,  what  they 
called  an  Optional  Claufe^  by  which  they  promifed  payment  to  the 
bearer,  either  as-  foon  as  the  note  fllouM  be  prefehted^  or,  in  the. 
option^of  th&dire6lors,  fi}^  months  after  fuehprefentment>  together 
with  the  legal  iiitereft  for  the  faid  fix  months.     The  direftors  of. 
^me  of  thofe  banks  fometimes  took  advantage  of  tliis  optional ; 
'44  "       •  cteufe, , 


THE    WEALTH    OF    NATIONS. 


395 


claufe,  and  fometimes  threatened  thofe  who  demanded  gold  and  C HA P, 
lilver  in  exchange  for  a  confiderable  number  of  their  notes>  that 
^ey  would  take  advantage  of  it,  unlefs  fuch  demanders  would 
content  themfelves  with  a  part  of  what  they  demanded.     The 
promiflfary  notes  of  thofe  banking  companies  conflituted  at  that 
time  the  far  greater  part  of  the  currency  of  Scotland,  which  this 
uncertainty  of  payment   neceflfarily  degraded  below  the  value  of 
gold  and  filver  money.     During  the  continuance  of  this  abufe, 
(which  prevjuled  chiefly  in  lySz,  1763,  and  1764),  while  the  ex- 
change between  London  and  Carlifle  was  at  par,  that  between 
London  and  Dumfries  would  fometimes  be  four  per  cent,  againfl: 
Dumfries,   though  this  town   is  not   thirty  miles  diftant  from 
Carlide.     But  at  Carlifle,  bills  were  paid  in  gold  and  fllver ;  whereas 
at  Dumfries  they  were  paid  in  Scotch  bank  notes,  and  the  uncer- 
tunty  of  getting  thofe  bank  notes  exchanged  for  gold  and  filver 
coin  had  thus  degraded  them  four  per  cent,  below  the  value  of  that 
coin.    The  fame  a£t  of  parliament  which  fupprefled  ten  and  five 
ihilling  bank  notes,  fupprefled  likewife  this  optional  claufe,  and 
thereby  reftored  the  exchange  between  England  and  Scotland  to  its 
natural  rate,  or  to  what  the  courfe  of  trade  and  remittances  might 
happen  to  make  it. 


In  the  paper  currencies  of  Yorkfliiire,  the  payment  of  (6  fmall  a 
fum  as  a  flxpence  fometimes  depended  upon  the  condition  that  the 
holder  of  the  note  fliould  bring  the  change  of  a  guinea  to  the  perfon 
who  ifllied  it ;  a  condition,  which  the  holders  of  fuch  notes  might 
frequently  find  it  very  difficult  to  fulfil,  and  which  mufl:  have  degraded 
this  currency  below  the  value  of  gold  and  filver  money.  An  a6t  of 
parliament,  accordingly,  declared  all  fuch  claufes  unlawful,  and 
fupprefled,  in  the  fame  manner  as  in  Scotland,  all  promiflTary  notes, 
payable  to  the  bearer,  under  twenty  ftiillings  value.  '  ' 

,  ,  3  E  2  •  The 


39^ 


BOOK 
II. 


THE  NATURE  AND  CAUSES  OF 

The  paper  curi%nci€S  of  North  America  confined,  not  in  bank 
notes  payable  to  the  bearer  on  demand,  bot  in  a  government  paper, 
of  which  the  payment  was  not  exigible  till  feveral  years  after  it  was 
ifliied :  And  thouf^  the  colony  governments  paid  no  intereft  to  the 
holders  of  this  paper,  they  declared  it  to  be,  and  in  fa£t  rendered 
it,  a  legal  tender  of  payment  for  the  full  value  for  which  it  was 
ifliied.  Bat  allowing  the  cdony  fecority  to  be  perfefVly  good,  a 
hundred  poimds  payable  fifteen  years  hence,  for  example,  in  a 
country  where  intereft  is  at  fix  per  cent.,  is  worth  Ktde  more  than 
forty  pomidfi  ready  money.  To  oblige  a  creditor,  therefore,  to  accept 
of  this  as  full  pigment  for  a  debt  of  a  hundred  pounds  a^ually  paid 
down  in  ready  money,  was  an  aA  of  fuch  violent  injuftice,  as  has 
fcarce^  perhaps>  been  attempted  by  the  government  of  any' other 
country  which  pretended  to  be  free.  It  bears  the  evident  marks  of 
having  originally  been,  what  the  honeft  and  downright  Dodtcr 
DouglaTs  aflures  us  it  was,  a  Icheme  of  ftaudulent  debtors  to  cheat 
their  creditors.  The  gjovemraent  of  Penfylvania,  indeed,  pretended* 
upon  their  firft  emiflion  of  paper  mon^  in  1722,  td  render  their 
paper  of  equal  value  with  gold  and  filver,  by  enadii^  penalties 
againft  all  thole  who  made  any  difference  in  the  price  of  their  goods 
when  they  fold  them  for  a  colony  paper,  and  when  they  fold  them  for 
gold  and  filver;  a  regulation  equally  tyrannical,  but  much  lefs 
efie^ual  than  that  which  it  was  meant  to  fupport.  A  pofitive  law 
ntay  render  a  fhilUng  a  legal  tender  for  a  guinea  ',  becaufe  it  may 
dire£l  the  courts  of  juftice  to  difcharge  the  debtor  who  has  made 
that  tender.  But  no  pofitive  law  can  oblige  a  perfon  who  fells  goods, 
and  who  is  at  liberty  to  fell  or  not  to  fell,  as  he  pleafes,  to  accept 
of  a  fhilling  as  equivalent  to  a  guinea  in  the  price  of  them.  Not- 
withftanding  any  regulation  of  this  kind>  it  appeared  by  the  courfe 
of  exchange  with  Great  Britain,  that  a  hundred  pounds  flerling 
was  occafionally  confidered  as  equivalent,  in  fome  of  the  colonics^ 
to  a  hundred  and  thirty  pounds,  and  in  others  to  fo  great  a  fum  as 

eleven 


THE    WEALTH    OF    NATIONS.* 

eleven  hundred  pounds  currency;  this  difference  in  tb  value 
flrifing  from  the  difference  in  the  quantity  of  paper  emitted 
in. the  different  colonies,  and  in  the  difliance  and  probability 
of  the  term  of  its  final  difS:harge  and  redemption. 


397 


No  law,  therefore,  could  be  more  equitable  than  the  a£t  of  par- 
liament, id  unjuftly  complained  of  in  the  colonies,  which  declared 
that  no  paper  currency  to  be  emitted  there  in  time  coming,  (hould 
be  a  legal  tender  of  payment.  >.;    > 


«.•  { 


Pbnsylvania  was  always  more  moderate  in  its  emidions  of 
paper  money  than  any  other  of  our  colonies.  Its  paper  currency 
accordingly  is  faid  never  to  have  funk  below  the  value  of  the  gold  and 
filver  which  was  current  in  the  colony  before  the  firft  emifllon  of  its 
paper  money.  Before  that  emiflion,  the  colony  had  raifed  the  de- 
nomination of  its  coin,  and  had,  by  a6t  (^  affembly,  ordered  five 
{hillings  fterling  to  pafs  in  the  colony  for  fix  and  three- 
pence, and  afterwards  for  fix  and  eight-pence.  A  pound  colony 
currency,  therefore,  even  when  th^  currency  was  gold  and 
filver,  was  more  than  thirty  per  cent,  below  the  value  of  a  pound 
fterling;  and  when  that  currency  was  tuined  into  paper,  it  was 
feidom  much  more  than  thirty  per  cent,  below  that  value.  The 
pretence  for  raifmg  the  denomination  of  the  coin,  was  to  prevent 
the  exportation  of  gold  and  filver,  by  making  equal  quantities  of  thofe 
metals  pafs  for  greater  fums  in  the  colony  than  they  did  in  the  mother 
country.  It  was  found,  however,  that  the  price  of  all  goods  fron* 
the  mother  country  rofe  exactly  in  proportion  as  they  raifed  the 
denomination  of  their  coin,  fo  that  their  gold  and  filver  were  exported 
as  faft  as  ever. 

The  paper  of  each  colony  being  received  in  the  payment  of  the 
provincial  taxes,  for  the  full  value  for  wliich  it  had  been  iffued, 

■      f       ■  ■       ■      ■  i» 


:l 


398 


THE    NATURE    AND    CAUSES     OP 


BOOIC  it  neceflTarily  derived  from  this  ufe  fome  additional  value,  over  and 
above  what  it  would  have  had,  from  the  real  or  fuppofed  diftance 
of  the  term  of  its  final  difcharge  and  redemption.  This  additional 
value  was  greater  or  lefs,  according  as  the  quantity  of  paper  ifllied 
-was  more  or  lefs  above  what  could  be  employed  in  the  payment  of 
the  taxes  of  the  particular  colony  which  iifued  it.  It  was  in  all  the 
colonies  very  much  above  what  could  be  employed  in  this  manner.  ^ 

A  PRINCE,  who  (hould  ena6l  that  a  certain  proportion  of  his 
taxes  ihould  be  paid  in  a  paper  money  of  a  certain  kind,  might 
thereby  give  a  certain  value  to  this  paper  money ;  even  though  the 
term  of  its  final  difcharge  and  redemption  (hould  depend  altogether 
upon  the  will  of  the  prince.  If  the  bank  which  iffued  this  paper  was 
careful  to  keep  the  quantity  of  it  always  fomewhat  below  what  could 
eafily  be  employed  in  this  manner,  the  demand  for  it  might  be  fuch  as 
to  make  it  even  bear  a  premium,  or  fell  for  fomewhat  more  in  the 
market  than  the  quantity  of  gold  or  filver  currency  for  which  it  was 
iflTued.  Some  people  account  in  this  manner  for  what  is  called  the 
Agio  of  the  bank  of  Amfterdam,  or  for  the  fuperior^t/  of  bank 
money  over  current  money ;  though  this  bank  money,  as  they 
pretend,  cannot  be  taken  out  of  the  bank  at  the  will  of  the  owner. 
The  greater  part  of  foreign  bills  of  exchange  muft  be  paid  in  bank 
money,  that  is,  by  a  transfer  in  the  books  of  the  bank ;  and  the 
direflors  of  the  bank,  they  alledge,  are  careful  to  keep  the  whole 
quantity  of  bank  money  always  below  what  this  u(e  occafions  a 
demand  for.  It  is  upon  this  account,  they  fay,  that  bank  money, 
fells  for  a  premium,  or  bears  an  agio  of  four  or  five  per  cent, 
above  the  fame  nominal  fum  of  the  gold  and  filver  currency  of  the 
country.  This  account  of  the  bank  of  Amfterdam,  however,  I 
jhave  reafon  to  believe,  is  altogether  chimerical. 


-Vrim'-Tti  C    ^,.^ 


■*}  I  "tLJ^'  s  . 


A  PAPKR 


THE    WEALTH    OF    NATIONS.  g| 

*    A  PAPER  currency  which  falls  below  the  value  of  gold  and   CIIAP 
filver  coin,  does  not  thereby  fink   the  vaUus  of  gold  and  filver, 
or  occafion  equal  quantities  of  tlioie   ir\rfa\s    to  exchange  for 
a  fmaller  quantity  of  goods  of  any  other  kind.    The  propor- 
tion between  the  value  of  gold   and   filver  and  that  of  goods 
of  any  other  kind,   depends  in  all  cafes,    not  upon  the  nature 
or  quantity  of  any  particular  paper  money,  which  may  be  current 
in  any  particular  country,  but  upon  the  rlchncfs  or  poverty  of 
the  mines,    which  happen  at  any  particular  time  to  fupply  the 
great  market  of  the  commercial   world   with  thofc  metals.     It 
depends  upon  the   propoition   between    the    quantity  of  labour 
which   is    necefiary  in    order,  to    bring  a   certain    quantity  of 
gold    and   filver  to    market,    and  that    which    is<  neceflary  in; 
order  to  bring  thither  a  certun  quantity  of  any  other  fort  of^ 
goods. 

If  bankers  are  reftraihed   from  iiTiiing  any  circulating  bank: 
notes,    or  notes  payable  to  the  bearer,   for  lefs  than  a  certain: 
fum;    and  if  they  arc  fubje£ted  to   the  obligation  of  an  im- 
mediate   and  unconditional  payment    of    fuch    bank    notes    as 
foon  as  prefented,    their  trade  may,  with  fafety  to  the  publick, 
be    rendered    in    all'  other   refpeds    perf«£lly  free.     The   late- 
multiplication    of    banking   companies    in    both    parts  of  the: 
united  kingdom,   an  event  by   which   many  people  have  been? 
much  farmed,    inftead   of   diminifhing,    increafes  the'  fecurity-' 
of  the  publick.     It  obliges    alt   of'  them   to  be  more  circum- 
fpeft  in  th«r  condufl:,    and,   by  not  extending  their  currency- 
beyond  its  due    proportion  to   their  cafh,    to  guard  themfelves 
againftr  thofe  malicious  runs,    which  the  rivallhip  of  fo  many 
competitors  is  always  ready  to    bring   upon- them.     Itreftrains: 
the  circulation  of   each    particular  company  within  a  narrower 
circle,  and  reduces  their  circulating  notes  to  a  fmaller  number. . 

By; 


400 
BOOK 


THE    NATURE    AND    CAUSES    OP 

By  dividing  the  whole  circulation  into  a  grieater  number  of 
parts,  the  failure  of  any  one  company*  an  accident  which,  in 
the  courfe  of  things,  muft  fometimes  happen,  becomes  of  leis 
confequence  to  the  publick.  This  frw  competition  too  obliges 
all  bankers  to  be  more  liberal  in  their  dealings  with  tlieir 
cuftomers^  left  their  rivals  fhould  carry  them  away.  In 
general,  if  any  branch  of  trade,  or  any  divifion  of  h.  iur,  be 
advantageous  tp  the  publick,  the  freer  and  more  general  t\\e 
competition,  it  will  always  be  the  more  fo. 


•.      -a.,      .:»;  CHAP.        III. 

Of  the  Accumulation  of  Capitalt  or  of  produSiive  and  unpro" 

duSiive  Labour, 

THERE  is  one  foit  of  labour  which  adds  to  the  value  of  the 
fub}e£t  upon  which  »t  is  beftowed :  There  is  an*  -ther  which 
has  no  fuch  effe6l.  The  former,  as  it  produces  a  value,  may  be 
called  prod^divei  the  latter  unprodu£live  *  labour.  Thus  the 
labour  of  a  manufadurer  adds  generally  to  the  value  of  the  materials 
which  he  works  upon,  that  of  his  own  maintenance,  and  of  his 
xnafler's  profit.  1  he  labour  of  a  menial  fervant,  on  the  contrary, 
adds  to  tlie  value  of  nothing.  Though  the  manufacturer  has  his 
.  wages  advanced  to  him  by  his  mailer,  he,  in  reality,  coAs  him  no 
expence,  the  value  of  thofe  wages  bei|^  generally  reftored,  together 
with  a  profit,  in  the  improved  value  of  the  fubje6l  upon  which  his 
labour  is  beftowed.  But  the  maintenance  of  a  menial  fervant  never 
is  reftored.  A  man  grows  rich  by  employing  a  multitude  of  ma> 
nufa6turer^ :  He  grows  poor,  by  maintaining  a  multitude  of 
menial  fervants.    The  labour  of  the  latter,  however,  has  its  value, 

*  Some  French  authors  of  great  learning  and  ingenuity  have  mSbA  thofe  words  in  a 
different  fenfe.  In  the  lad  chapter  of  the  fourth  boolc,  I  (hall  endeavour  to  fliow  that 
their  fenfe  is  an  hnproper  one. 

\.  -  and 


THE     WEALTH    OF    NATIONS. 

and  deferves  its  reward  as  well  as  that  of  the  former.  But  the  labour  of 
the  manufadlurer  fixes  and  realizes  itfclf  in  fomc  paiticular  fubjc^l  or 
vendible  commodity,  which  lads  for  fome  time  at  leail  after 
that  labour  is  pail.  It  is,  as  it  were,  a  certain  quantity  of  labour 
flocked  and  (loied  up  to  be  employed,  if  neceflary,  upon  fome  other 
occafioni  That  fubjeiSl,  or  what  is  the  fame  thing,  the  price  of 
that  fubjefl,  can  afterwards,  if  neceffary,  put  into  motion  a  quan- 
tity of  labour  equal  to  that  which  had  originally  produced  it.  The 
labour  of  the  menial  fervant,  on  the  contrary,  does  not  fix  or 
realize  itfelf  in  any  particular  fubje£l  or  vendible  commodity.  His 
fervices  generally  perifh  in  the  very  inflant  of  their  performance, 
and  feldom  leave  any  trace  or  value  behind  them,  for  which  an 
equal  quantity  of  fervice  could  afterwards  be  procured. 

The  labour  of  fome  of  the  mod  rcfpedlable  orders  in  the  fcciety 
is,  like  that  of  menial  fervants,  unproductive  of  any  value,  and  does 
not  fix  or  realize  itfelf  in  any  permanent  fubjeft,  or  vendible 
commodity,  which  endures  after  that  labour  is  pall,  and  for 
which  an  equal  quantity  of  labour  could  afterwards  be  procured. 
The  fovereign,  for  example,  with  all  the  officers  both  of  juflice 
and  war  who  ferve  under  him,  the  whole  army  and  navy,  are 
unproduftive  labourers.  They  are  the  fervants  of  the  publick, 
and  are  maintained  by  a  part  of  the  annual  produce  of  the  induflry 
of  other  people.  Their  fervice,  how  honourable,  how  ufeful,  or 
how  ncceflary  foever,  produces  nothing  for  which  an  equal  quantity 
of  fervice  can  afterwards  be  procured.  The  protection,  fecurity, 
.ind  defence  of  the  commonwealth,  the  efFefl  of  their  labour  this 
year,  will  not  purchafe  its  protection,  fecurity,  and  defence,  for 
the  year  to  come.  In  the  fame  clafs  mull  be  ranked,  fome 
both  of  the  gravefl  and  moft  important,  and  fome  of  the  mofl 
frivolous  profeflions :  churchmen,  lawyers,  phyficians,  men 
of   letters  of    all    kinds  j    players,    buffoons,  muficians,   opera- 

VoL.  I.  3  F  fingers* 


401 

CHAP, 

III. 


M 


m 


!|i 
III 


i 


'I 

I 


402 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  fingers,  opera- dancers,  &c.  The  labour  of  the  meaneft  of  thefe 
|u<-v-«  has  a  certain  value,  regulated  by  the  very  fame  principles  which 
regulate  that  of  every  other  fort  of  labour;  and  that  of  the  nobleft 
and  mod  ufeful,  produces  nothing  which  could  afterwards  pur- 
chafe  or  procure  an  equal  quantity  of  labour.  Like  the  decla- 
mation of  the  a^or,  the  harangue  of  the  orator,  or  the  tune  of 
the  mufician,  the  work  of  all  of  them  perifhes  in  the  veiy  inftant 
of  its  production. 


Both  productive  and  unproductive  labourers,  and  thofe  who 
do  not  labour  at  all,  are  all  equally  maintained  by  the  annual  pro* 
duce  of  the  land  and  labour  of  the  country.  This  produce,  how 
great  fbever,  can  never  be  infinite,  but  muft  have  certain  limits. 
According,  therefore,  as  a  fmaller  or  greater  proportion  of  it  is  in 
any  one  year  employed  in  maintaining  unproductive  hands,  the 
more  in  the  one  cafe  and  the  lefs  in  the  other  will  remain  for  the 
productive,  and  the  next  year's  produce  will  be  greater  or  fmaller 
accordingly  J  the  whole  annual  produce,  if  we  except  the  fponta- 
neous  productions  of  the  earth,  being  the  efFeCt  of  productive  la- 
bour. 


•iUiiii-i' 


't'libuGH  thfe  whole  annual  produce  of  the  land  and  labour  of 
every  country,  is,  no  doubt,  ultimately  deitined  for  fupplying  the 
confumption  of  its  inhabitants,  and  for  procuring  a  revenue  to  them  j 
yet  when  it  firft  comes  either  from  the  ground,  or  from  the  hands 
6f  the  productive  labourers,  it  naturally  divides  itfelf  into  two 
parts.  One  of  them,  and  frequently  the  largeft,  is,  in  the  firft 
place,  deftined  for  replacing  a  capital,  or  for  renewing  the  pro- 
vifions,  materials,  and  finifhed  work,  which  had  been  withdrawn 
from  a  capital;  the  other  for  conftituting  a  revenue  either  to  the 
owner  of  this  capital,  as  the  profit  of  his  ftock ;  or  to  fonie  other 
perfon,  as  the  rent  of  his  land.    Thus,  c^  the  produce  of  land, 

one 


THE    WEALTH    OF    NATIONS. 


403 


one  part  replaces  the  capital  of  the  farmer;  the  other  pays  his  CHAP, 
profit  and  tlie  rent  of  the  landlord;  and  thus  conftitutes  a  revenue 
both  to  the  owner  of  this  capital,  as  the  profits  of  his  flock  j  and 
to  fome  other  perfon,  as  the  rent  of  his  land.  Of  the  produce  of 
a  great  manufefture,  in  the  fame  manner,  one  part,  and  that 
always  the  largeft,  replaces  the  capital  of  the  undertaker  of  the 
work;  the  other  pays  his  profit,  and  thus  conftitutes  a  revenue  to 
the  owner  of  this  capital. 

That  part  of  the  annual  produce  of  the  land  and  labour  of  any 
country  which  replaces  a  capital,  never  is  immediately  employed 
to  maintain  any  but  produiftive  hands.  It  pays  the  wages  of  pro- 
ductive labour  only.  That  which  is  immediately  deftined  for  con- 
ftituting  a  revenue  either  as  profit  or  as  rent,  may  maintain  in- 
differently either  produ6tive  or  unproductive  hands. 


JiTC^    v 


>SV".»  J;i(ri 


Whatever  part  of  his  ftock  a  man  employs  as  a  capital,  he 
always  expefts  is  to  be  replaced  to  him  with  a  profit.  He  employs 
it,  therefore,  in  maintaining  produftive  hands  o»ly;  and  after 
having  ferved  in  the  funClion  of  a  capital  to  him,  it  conftitutes 
a  revenue  to  them.  Whenever  he  employs  any  part  of  it  in  main- 
taining unproductive  hands  of  any  kind,  that  part  is,  from  that 
moment,  withdrawn  from  his  capital,  and  placed  in  his  ftock  re- 
ferved  for  immediate  confumption. 


Unproductive  labourers,  and  thofe  who  do  not  labour  at  all, 
are  all  maintained  by  revenue;  elthei*,  firft,  by  that  part  of  the 
annual  produce  which.is  originally  deftined  for  conftituting  a  re- 
venue to  fome  particular  pcrfons,  either  as  the  rent  of  land  or  as 
the  profits  of  ftock;  or,  fecondly,  by  that  part  which,  thoiigli 
originally  deftined  for  replacing  a  capital  and  for  maintaining  pro- 
ductive labouicrs  only,  yet  when  it  comes  into  their  hands,  \vhat- 

2  F  2  ever 


404 


THE    NATURE    AND    dKVSES    OF 


BOOK  ever  part  of  it  is  over  and  above  their  neccffary  fubfiftence,  may 
be  employed  in  maintaining  indifferently  either  produdlive  or  un- 
produdive  hands.  Thus,  not  only  the  great  landlord  or  the  rich 
merchant,  but  even  the  common  workman,  if  his  wages  are  con- 
fiderable,  may  maintain  a  menial  fervantj  or  he  may  fometimes 
go  to  a  play  or  a  puppet-ftiow,  and  fo  contribute  his  fhare  towards 
maintaining  one  fet  of  unproduflive  labourers;  or  he  may  pay 
fome  taxes,  and  thus  help  to  maintain  another  fet,  more  honour- 
able and  ufeful,  liideed,  but  equally  unproductive.  No  part  of 
the  annual  produce,  however,  which  had  been  originally  dcftined 
to  replace  a  capital,  is  ever  dire£ted  towards  maintdning  unpro- 
ductive hands,  till  after  it  has  put  into  motion  its  full  comple- 
ment of  productive  labour,  or  all  that  it  could  put  into  motion 
in  the  way  in  which  it  was  employed.  The  workman  muft  have 
earned  his  wages  by  work  done,  before  he  can  employ  any  part  of 
them  in  this  manner.  That  part  too  is  generally  but  a  fmall  one. 
It  is  his  (pare  revenue  only,  of  which  productive  labourers-  have 
feldom  a  great  deal.  They  generally  have  fome,  however;  and 
in  the  payment  of  taxes  the  greatnefs.of  their  number  may  com- 
penfate,  in  fome  meafure,  the.  fhiallnefs  of  their  contribution. 
The  rent  of  land  and  the  profits  of  flock  are  every  where,  there- 
fore, the  principal  fources  from  which  improduCtive.  hands  derive 
their  fubfiftence.  Xhefe  are  the  two  forts  of  revenue  of  which  the 
owners  have  generally  mod  to  (pare.  They  might  both  maintain 
indifferently  either  productive  or  unproductive  hands.  They  feem, . 
however,  to  have  fome  predilection  for  the  latter.  The  expence  of; 
a  great  lord  feeds  generally  more  idle  than  induftrious  people. 
The  rich  merchant,  though  with  his  capital  he  maintains  indu-. 
firious  people  only,  yet. by  his  expence,  that  is,  by  the  employ- 
ment of  his  revenue,  he  feeds  commonly  the  very  fame  fort  as  the 
great  lord. 


1/ 


ThR; 


THE    WEALTH    OF    NATIONS; 


4<>5 


The  proportion-,  therefore,  between  the  produftive  and  unpro-  9  ^  A  P. 
du6live  hands,  depends  very  much  in  every  country  upon  the  pro- 
portion between  that  part  of  the  annual  produce,  which,  as  foon 
as  it  comes  either  from  the  ground  or  from  the  hands  of  the  pro- 
du6live  labourers,  is  deftined  for  replacing  a  capital,  and  that  which 
is  deftined  for  conftituting  a  revenue,  either  as  rent,  or  as  profit. 
This  proportion  is  very  different  in  rich  from  what  it  is  in  poor 
countries,  -,,-•.,....    :-■■■:    :—  -■■--■-  •-•/i -j// .•  ^ 


iCm- 


Thus,  at  prelent,  in  the  opulent  countries  of  Europe,  a  very  large, 
flequently  the  largeft  portion  of  the  produce  of  the  land,  is  deftined  for 
replacing  the  capital  of  the  rich  and  indepcndant  farmer;  the  other 
for  paying  his  profits,  and  the  rent  of  the  landlord.  But  antiently, 
during  the  prevalency  of  the  feudal  government,  a  very  fmall  portion 
of  the  produce  was  fuificient  to  replace  the  capital  employed  in  cul- 
tivation. It  confifted  commonly  in  a  few  wretched  cattle,  main- 
tained altogether  by  the  fpontaneous  produce  of  uncultivated  land, 
and  which  might,  therefore,  be  confidered  as  a  part  of  that  fponta- 
neous produce.  It  generally  too  belonged  to  the  landlord,  and  was 
by  him  advanced  to  the  occupiers  of  the  land.  All  the  reft  of  the 
produce  properly  belonged  to  him  too,  either  as  rent  for  his  land> 
or  as  profit  upon  this  paultry  capital.  The  occupiers  of  land  were 
generally  bondmen,  whofe  perfons  and  effefts  were  equally  his  pro- 
perty. Thofe  who  were  not  bondmen  were  tenants  at  will, ,  and 
tliough  the  rent  which  they  paid  was  often  nominally  little  more 
than  a  quit- rent,  it  really  amounted  to  the  whole  produce  of  the 
land.  Their  lord  could  at  all  times  command  their  labour  in  ■ 
peace,  and  their  fervice  in  war.  Though  they  lived  at  a  diftance 
from  his  houfe,  they  were  equally  dependant  upon  him  as  his  re^ 
tainers  who  lived  in  it.  But  the  whole  produce  of  the  land  un- 
doubtedly belongs  to  him,  who  can  difpofe  of  the  labour  and  fer- 
vice of  all  thofe  whom  it  maintains.   In  the  prefent  ftate  of  Europe, 

the 


4o6 


THE     NATURE     AND     CAUSES    OF 


B  O  o  K  the  fliare  of  the  landlord  feldom  exceeds  a  third,  fometimes  not  a 
fourth  part  of  the  whole  produce  of  the  land.  The  rent  of  land, 
however,  in  all  the  improved  parts  of  the  country,  has  been  tripled 
and  quadrupled  fmce  thofe  antient  times;  and  this  third  or  fourth 
part  of  the  annual  produce  is,  it  feems,  three  or  four  times  greater 
than  the  whole  had  been  before.  In  the  progrefs  of  improvement, 
lent,  though  it  increafes  in  proportion  to  the  extent,  diminiflies  in 
proportion  to  the  produce  of  the  land. 

In  the  opulent  countries  of  Europe,  great  capitals  are  at  prefent 
•employed  in  trade  and  manufa6lures.  In  the  ancient  ftate,  the 
little  trade  that  was  (lirring,  and  the  few  homely  and  coarfe 
manufadures  that  were  carried  on,  required  but  very  fmall  ca- 
pitals. Thefe,  however,  muft  have  yielded  very  large  profits.  The 
rate  of  intercft  was  no  where  lefs  than  ten  per  cent,  and  their 
profits  muft  have  been  fufficient  to  afford  this  great  intereft.  At 
.prefent  the  rate  of  intereft,  in  the  improved  parts  of  Europe,  is 
no  where  higher  than  fix  per  cent,  and  in  fome  of  the  moft  im- 
proved it  is  fo  low  as  four,  three,  and  two  jwr  cent.  Though 
that  part  of  the  revenue  of  the  inhabitants  which  is  derived  from  the 
profits  of  ftock  is  always  much  greater  in  rich  than  in  poor  coun- 
4ri<»,  it  is  bec^ufe  the  ftock  is  much  greater:  in  proportion  to  the 
ilock  the  profits  are  generally  much  lefs. 


That  part  of  the  annual  produce,  therefore,  which,  as  foon 
Qs  it  comes  either  from  the  ground  or  from  the  hands  of  the  pro- 
^u6live  labourer,  is  deftined  for  replacing  a  capital,  is  not  only 
much  greater  in  rich  than  in  poor  countries,  but  bears  a  much 
^reat^r  proportion  to  that  which  is  immediately  deftined  for  con- 
•ftituting  a  revenue  either  as  rent  or  as  profit.  The  funds  deftined 
for  the  maintenance  of  productive  labour,  are  not  only  much 
igreater  in  me  former  than  in  the  latter,  but  bear  a  much  greater 
■    Z  -  proportion 


the 


THE    WEALTH    OF    NATIONS, 


407 


proportion  to  thofe  which,  though  they  may  be  employed  to  main-   CHAP, 
tain  either  produ6live  or  unprodu^ive  hands,    have  generally  a 
predile6tion  for  the  latter.  - 

The  proportion  between  thofe  different  funds  neceffarily  deter- 
mines in  every  country  the  general  character  of  tlie  inhabitants  as 
to  induftry  or  idlenefs.     We  are  more  induftrious  than  our  fore- 
fathers; becaufe  in  the  prefent  times  the  funds  deftined  for  the 
maintenance  of   induftry,    are  much  greater  in   proportion   to 
thofe  which    are  likely  to   be  employed  in  the  maintenance  of 
idlenefs,  than  they  were  two  oi'  three  centuries  ago.     Our  an- 
ceftors  were  idle  for  want  of  a  fufficient  encouragement  to  'in- 
duftiy.     It  is  better,  fays  the  proverb,  to  play  for  nothing,  than  to 
work  for  nothing.   In  mercantile  and  manufa«5lurlng  towns,  where 
the  inferior  ranks  of  people  are  chiefly  maintained  by  the  employ- 
ment of  capital,  they  are  in  general  induftrious,  fober,  and  thriv- 
ing; as   in  many  Englifh,  and  in  moft  Dutch  towns.     In  thofe 
towns  which  are  principally  fupported  by  the  conftant  oroccafional 
refidence  of  a  court,  and  in  which  the  inferior  ranks  of  people  are 
chiefly  maintained  by  the  fj^jending  of  revenue,  they  are  in  general 
idle,    diffolute,   and  poor;    as  at   Rome,  Verfailles,    Compiegne, 
and  Fontainbleau.     If  you  except  Rouen  and  Bourdeaux,  there  is 
little  trade  or  induftry  in  any  of  the  parliament  towns  of  France; 
and  the  inft  rior  ranks  of  people  being  chiefly  maintained  by  the 
expence  of  the  members  of  tlie  courts  of  juftice,  and  of  thofe  who 
come  to  plead  before  them,  are  in  general  idle  and  poor.,    The 
great  trade  of  Rouen  and  Bourdeaux  feems  to  be  altogether  the 
eScCt  of  their  fituation.     Rouen  is  neceffarily  the  entrepot  of  al- 
moft  all  the  goods  which  are  brought  either  from  foreign  coun- 
tries, or  from  the  maritime  provinces  of  France,  for  the  confump- 
tion  of  the  great  city  of  Paris.     Bourdeaux  is  in  the  fame  manner 
the  entrep6t  of  the  wines  which  grow  upon  the  banks  of  the  Ga- 
ronne,  and  of  the  rivers  which  run  into  it,  one  of  the  richeft  wine 

countries 


4q£. 


THE  NATURE  AND  CAUSES  OF 


BOOK  countries  in  the  world,  and  which  feems  to  produce  the  wine 
fitteft  for  exportation,  or  bcft  (uited  to  the  tafte  of  foreign  nations. 
Such  advantageous  fituations  r  jceflarily  attradl  a  great  capital  by 
the  great  employment  which  they  afford  it;  and  the  employment 
of  this  capital  is  the  caufe  of  the  induftry  of  thofe  two  cities.  In 
the  other  parliament  towns  of  France,  very  little  more  capital  feems 
to  be  employed  than  what  is  neceflary  for  fupplying  their  own 
confumption;  that  is,  little  more  than  the  fmalK-ft  capital  which  can 
be  employed  in  them.  The  fame  thing  may  be  faid  of  Paris, 
Madrid,  and  Vienna.  Of  thofe  three  cities,  Paris  is  by  far  the 
moft  induftriousi  but  Paris  itfelf  is  the  principal  market  of  all  the 
manufaftures  eftabliftied  at  Paris,  and  its  own  confumption  is  the 
principal  objefl  of  all  the  trade  which  it  carries  on.  Londoh, 
Lifbon,  and  Copenhagen,  are,  perhaps,  the  only  three  cities  in 
Europe,  which  are  both  the  conftant  relidence  of  a  court,  and  can 
at  the  fame  time  be,confidered  as  trading  cities,  or  as  cities  which 
trade  not  only  for  their  own  confumption,  but  for  that  of  other 
cities  and  countries.  The  iituation  of  all  the  three  is  extremely 
advantageous,  and  naturally  fits  them  to  be  the  entrepots  of  a  great 
part  of  the  goods  deflined  for  the  confumption  of  diflant  places. 
In  a  city  where  a  great  revenue  is  fpent,  to  employ  with  advantage 
a  capital  for  any  other  purpofe  than  for  fupplying  the  confumption 
of  that  city,  is  probably  more  difficult  than  in  one  in  which  tiie 
inferior  ranks  of  people  have  no  other  maintenance  but  what  they 
derive  from  the  employment  of  fuch  a  capital.  The  idlenefs  of  the 
greater  pait  of  the  people  who  are  maintained  by  the  cxpence  of 
revenue,  corrupts,  it  is  probable,  the  induflry  of  thofe  who  ought 
to  be  maintained  by  the  employment  of  capital,  and  renders  it  lefs 
advantageous  to  employ  a  capital  there  than  in  other  places. 
There  was  little  trade  or  induftry  in  Edinburgh  before  the  union. 
When  the  Scotch  parliament  was  no  longer  to  be  afTembled  in  it, 
«vhen  it  ceafed  to  be  the  neceffary  refidence  of  the  principal  nobility 
.4  and 


\^ 


'  * 


THE    WEALTH    OF    NATIONS. 


409 


and  gentry  of  Scotland,  it  became  a  city  of  feme  trade  and  induftry.  C  HA  P. 
It  ftill  continues,  however,  to  be  tho  refidence  of  the  principal 
courts  of  juftice  in  Scotland,  of  the  boards  of  cuftoms  and  excife. 
Sec.  A  conliderable  revenue,  therefore,  flill  continues  to  be  fpent 
in  it.  In  trade  and  induftry  it  is  much  inferior  to  Glafgow,  of 
which  the  inhabitants  are  chiefly  maintained  by  the  employment  of 
capital.  The  inhabitants  of  a  large  village,  it  has  fometimes  been 
obferved,  after  having  made  confiderable  progrefs  in  manufaftures, 
have  become  'die  and  poor,  in  confequence  of  a  great  lord's  having 
taken  up  his  refidence  in  their  neighbourhood. 


.^> 


The  proportion  between  capital  and  revenue,  therefore,  feems 
every  where  to  regulate  the  proportion  between  induftry  and 
idlenefs.  Wherever  capital  predominates,  induftry  prevails :  Where- 
ever  revenue,  idlenefs.  Every  increafe  or  diminution  of  capital, 
therefore,  naturally  tends  to  increafe  or  diminidi  the  real  quantity  of 
induftry,  the  number  of  produdlive  hands,  and  confequently  the 
exchangeable  value  of  the  annual  produce  of  the  land  and  labour 
of  the  country,  the  real  wealth  and  revenue  of  all  its  inhabi- 
tants. ^'  .. .   ',  ,^   , 

.    Capitals  a-e  increrfed  by  parfimony,  and  diminiflied  by  pro- 
digality and  mifconduft,  rvr  f«i  i2<i' 

Whatever  a  perfon  faves  from  his  revenue  he  adds  to  his 
capitaU  and  either  employs  it  himfelf  in  maintaining  an  additional 
number  of  productive  hands,  or  enables  fome  other  perfon  to  do  fo, 
by  iond'iig  it  to  him  for  an  intereft,  that  is,  for  a  ftiare  of  the 
profits,  ds  the  capital  of  an  individual  can  be  increafed  only 
by  what  he  faves  from  his  annual  revenue  or  his  annual  gains, 
fo  the  capital  of  a  fociety,  which  is  the  fame  with  that  of  all  the 

Vol.  I.  -J  G       ,  individuals 


I   i 


4t* 


THE  NATURE  AND  CAUSES  OF 


B  0  0  K   individuals  who  compofe  it,  can  be  mcreafed  only  in  the  fame 
manner.   ''     *  .-..'_ 

Parsimony  and  not  induftry  is  the  immediate  caufe  of  the 
increafe  of  capital.  Induftry,  indeed,  provides  the  fubjeft  which 
parfimony  accumulates.  But  whatever  induftry  might  acquire, 
if  parfimpny  did  not  fave  and  ftore  up,  the  capital  would  never 
be  the  greater. 

Parsimony,  by  increafing  the  fund  which  is  deftined  for  the^ 
maintenance  of  productive  hands,  tends  to  increafe  the  number 
of  thofe  hands  whofe  labour  adds  to  the  value  of  the  fubjeCl 
upon  which  it  is  beftowed.  It  tends  therefore  to  increafe  the 
exchangeable  value  of  the  annual  produce  of  the  land  and  labour 
of  the  country.  It  puts  into  motion  an  additional  quantity  of 
induftry,  which  gives  an  additional  value  to  the  annual  produce. 


What  is  annually  faved  is  as  regularly  confumed  as  what  is 
annually  fpent,  and  nearly  in  the  fame  time  too ;  but  it  is  con- 
fumed  by  a  different  fett  of  people.  That  portion  of  his  re- 
venue which  a  rich  man  annually  fpends,  is  in  moft  cafes  con- 
fumed  by  idle  guefts,  and  menial  fervants,  who  leave  nothing 
behind  them  in  return  for  their  confumption.  That  portion 
which  he  annually  faves,  as  for  the  fake  of  the  profit  it  is  im- 
mediately employed  as  a  capital,  is  confumed  in  the  fame  manner, 
and  nearly  in  the  fame  time  too,  but  by  a  different  fett  of  people, 
by  labourers,  manufacturers,  and  artificers,  who  rc-prcduce  with 
a  profit  the  value  of  their  annual  confumption.  His  revenue, 
we  fhall  fuppofe,  is  paid  him  in  money.  Had  he  fpent  the 
whole,  the  food,  cloathing,  and  lodging  which  the  whole  could 
have  purchafed,  would  have  been  diftiibuted  among  tlie  former 
fett  of  peo])le.     By  faving  a  part  of  it,   as  that  part  is  for  the 

7    ^  fake 


THE     WEALTH    OF    NATIONS. 


411 


fake  of  the  profit  immediately  employed  as  a  capital  either  by  ^'9,A^* 
himfelf  or  by  fome  other  perfon,  the  food,  cloathing,  and  lodging, 
which  may  be  purchafed  with ''   are  neceflarily  referved  for  the  latter. 
The  confumption  is  the  fame,  but  the  confumers  are  different. 

'-  ■  '".  •    '.r'^wnrH?' 

.  By  what  a  frugal  man  annually  faves,  he  not  only  affords 
maintenance  to  an  additional  number  of  produ£\ive  hands,  for 
that  or  the  enfuing  year,  but,  like  the  founder  of  a  publick 
workhoufe,  he  cftabltflies  as  it  were  a  perpetual  fund  for  the 
maintenance  of  an  equal  number  in  all  times  to  come.  The 
perpetual  allotment  and  deftination  of  this  fund,  indeed,  is  not 
always  guarded  by  any  pofitivc  law,  by  any  truft-right  or  deed  of 
mortmain.  It  is  always  guarded,  however,  by  a  very  powerful 
principle,  the  plain  and  evident  intereft  of  every  individual  to  whom 
any  (hare  of  it  fhall  ever  belong.  No  part  of  it  can  ever  after- 
wards be  employed  to  maintain  any  but  produdive  hands,  without 
an  evident  lofs  to  the  perfon  who  thus  perverts  it  from  its  proper 
deftination.  -    - '      ' '    "',' "    '   ' 


The  prodigal  peiverts  it  in  this  manner.  By  not  confinipg 
his  expence  within  his  income,  he  encroaches  upon  his .  capital. 
Like  him  who  perverts  the  revenues  of  fome  pious  foundation 
to  profane  pu.pofes,  he  pays  the  wages  of  idlenefs  with  tho^ 
funds  which  the  frugality  of  his  forefathers  had,  as  it  were,  con- 
fecrated  to  the  maintenance  of  induftry.  By  diminiftiing  the 
funds  deftined  for  the  employment  of  productive  labour,  he 
neceffarily  diminiHies,  fo  far  as  depends  upon  him,  the  quantity 
of  that  labour  which  adds  a  value  to  the  fubjeCt  u|)on  which  It 
is  bellowed,  and,  confequenlly,  the  value  of  the  annual  produce 
of  the  land  and  labour  of  the  whole  country,  the  real  wealtli 
and  revenue  of  its  inhabitants.  If  the  prodigality  of  forne  was 
not  compsnfated  by  the  frugality  of  others,  the  condu^  of  ev^ry 

3  G  2  prodigal, 


4ii 


THE     NATURE     AND    CAUSES     OF 


B op K   prodigal,   by  feeding  the  idle  with  the  brea?[  of  the  induftrious, 
tends  not  only  to  beggar  himfelf,  but  to  in^poverilh  his  country. 

Though  the  ex  pence  of  the  prodigal  fliould  be  altogether  in 
home-made  and  no  part  of  it  in  foreign  commodities,  its  efFeft 
upon  the  produftive  funds  of  the  fociety  would  ftill  be  the  fame. 
Every  year  there  would  ftill  be  a  certain  quantity  of  food  and 
cloathing,  which  ought  to  have  maintained  produdlive,  employed 
in  maintaining  unproduftive  hands.  Every  year,  therefore,  there 
would  ftill  be  fome  diminution  in  what  would  otherwife  have 
been  the  value  of  the  annual  produce  of  the  land  and  labour  of 
the  country. 

This  expence,  it  may  be  faid  indeed,  not  being  in  foreign 
goods,  and  not  occafionitig  any  exportation  of  gold  and  filver, 
the  fame  qi:antity  of  money  would  remain  in  the  country  as 
before.  But  if  the  quantity  of  food  and  cloathing,  which  were 
thus  confumed  by  unprodudive,  had  been  diftributed  among 
produftive  hands,  they  would  have  reproduced,  together  with  a 
profit,  the  full  ^alue  of  their  confumption.  The  fame  quantity  of 
money  would  in  this  cafe  equally  have  remained  in  the  countiy, 
and  there  would  befides  have  been  a  reproduction  of  an  equal 
value  of  confumable  goods.  There  would  have  been  two  values 
inftead  of  one. 

The  fame  quantity  of  money  befides  cannot  long  remain  in 
any  country,  in  which  the  value  of  the  annual  produce  diminiflies. 
The  fole  ufe  of  money  is  to  circulate  confumable  goods.  By 
means  of  it,  provifions,  materials,  and  finifhed  work,  are  bought 
and  fold,  and  diftributed  to  their  proper  confumers.  The  quantity 
of  money,  therefore,  which  can  be  annually  employed  in  any 
country  muft  be  determined  by  the  value  of  the  confumable  goods 
annually  circulated  within  it.    Thefe  muft  confift  either  in  the 

■■■'  ^  f  immediate 


^  .f  > -:^  i.\i 


THE    WEALTH     OF    NATIONS. 


4»3 


immediate  produce  of  the  land  and  labour  of  the  country  itfelf,  C  HA  l»; 
or  in  fomething  which  had  been  purchafed  with  fome  part  of  that 
produce.  Their  value,  therefore,  muft  diminifli  as  the  value  of 
that  produce  diminifhes,  and  along  with  it  the  quantity  of  money 
which  can  be  employed  in  circulating  them.  But  the  money 
which  by  this  annual  diminution  of  produce  is  annually  thrown 
out  of  domeftick  circulation  will  not  be  allowed  to  lie  idle.  The 
intereft  of  whoever  poflefles  it,  requires  that  it  fhould  be  employed. 
But  having  no  employment  at  home,  it  will,  in  fpite  of  all  laws 
and  prohibitions,  be  fent  abroad,  and  employed  in  purchafing 
confumable  goods  which  may  be  of  fome  ufe  at  home.  Its  annual 
exportation  will  in  this  manner  continue  for  feme  time  to  add 
fomething  to  the  annual  confumption  of  the  country  beyond  the 
value  of  its  own  annual  produce.  What  in  the  days  of  its  prof- 
perity  had  been  faved  from  that  annual  produce,  and  employed 
in  purchafing  gold  and  filver,  ;vill  contribute  for  fome  little  time 
to  fupport  its, confumption  in  adverfity.  The  exportation  of  gold 
and  filvci  is,  in  this  cafe,  not  the  caufe,  but  the  effect  of  its  declen- 
fion,  and  may  even  for  fome  little  time  alleviate  the  mifery  of  that 
declenfion. 


The  quantity  of  money,  on  the  contrary,  muft  in  every 
country  naturally  increafe  as  the  value  of  the  annual  produce 
incrcafes.  The  value  of  the  confumable  goods  annually  circulated 
w'.thin  the  fociety  being  greater,  will  require  a  greater  quantity 
of  money  to  circulate  them.  A  part  of  the  increafed  produce, 
therefore,  will  naturally  be  ernployed  in  purchafing,  wherever  it 
js  to  be  had,  the  additional  quantity  of  gold  and  filver  neceflary 
for  circulating  the  reft.  The  increafe  of  thofe  metals  will  in  this 
cafe  be  the  efte£t,  not  the  caufe,  of  the  publick  profperity.  Gold 
and  filver  are  purchafed  every  where  in  the  fame  manner.  The 
food,  cloathing,   and  lodging,  the  revenue  and  maintenance  of 

aU 


4H 


THE  NATURE  AND  CAUSES  OF 


BOOK  all  thofc  whofc  labour  or  ftock  is  employed  in  bringing  them  from 
the  mine  to  the  market,  is  the  price  paid  for  them  in  Peru  as 
well  as  in  England.  The  country  which  has  this  price  to  pay, 
will  never  be  long  without  the  quantity  of  thofe  metals  which  it 
has  occafion  for;  and  no  country  will  ever  long  retain  a  quantity 
which  it  has  no  occafion  for. 

Whatever,  therefore,  we  may  imagine  the  real  wealth  and 
revenue  of  a  country  to  confift  in,  whether  in  the  value  of  the 
annual  produce  of  its  land  and  labour,  as  plain  reafon  feems  to 
dictate ;  or  in  the  quantity  of  the  precious  metals  which  circulate 
within  it,  as  vulgar  prejudices  fuppoie;  in  eitlicr  view  of  the 
matter,  every  prodigal  appears  to  be  a  publick  enemy,  and  every 
frugal  man  a  publick  benefa£\or. 

The  effedts  of  mifcondu£l  are  often  the  ftme  as  thofc  of  pro-i 
digality.  Every  injudicious  and  unfuccefsful  projcdfc  in  agricul- 
ture, mines,  filheries,  trade,  or  n»anufa£tures,  tends  in  the  fame 
manner  to  diminifli  the  funds  defined  for  the  maintenance  of 
productive  labour.  In  every  fuch  project,  though  the  capital  is 
confumed  by  produ6live  hands  only,  yet,  as  by  the  injudicious 
manner  in  which  they  are  employed,  they  do  not  reproduce  the 
full  value  of  their  confumpdon,  there  muft  always  be  fome  dimi- 
nution in  what  wguld  othei'wife  have  been  the  produdive  funds  of 
thefociety.  «•:'* 

It  can  feldom  happen,  indeed,  that  the  circumftances  of  a 
great  nation  can  be  much  affedcd  either  by  the  prodigality  or 
mifconduil  of  individuals ;  the  profufion  or  impiTidcnce  of  fome 
being  always  more  than  compenfated  by  the  frugality  and  good 
conduct  of  odiers. 


With 


THE    WEALTH    OF    NATIONS. 


4'5 


With  regard  to  profufnn,  the  principle,  which  prompts  to  ^Pji^*** 
expence,  is  the  paflion  for  prefent  enjoyment  i  which,  though  fome- 
times  violent  and  very  difficult  to  be  retrained,  is  in  general  only 
momentary  and  occafional.  But  the  principle  which  prompts  to 
Ave,  is  the  deftre  of  bettering  our  condition,  a  dcfire  which, 
though  generally  calm  and  diipaflionate,  comes  with  us  from  the 
womb,  and  never  leaves  us  till  we  go  into  the  grave.  In  the 
whole  interval  which  feparates  thofe  two  moments,  there  is  fcarce 
perhaps  a  Angle  inftant  in  which  any  man  is  To  perfe6tly  and 
compleatly  (atisfied  with  his  fituation,  as  to  be  without  any 
wiih  of  alteration  or  improvement  of  any  kind.  An  augmen- 
tation of  fortune  is  the  means  by  which  the  greater  part  of  men 
propole  and  wifh  to  better  their  condition.  It  is  the  means  the 
mofl  vulgar  and  the  moll  obvious  f  and  the  moil  liJcely  way  of 
augmenting  their  fortune,  is  to  fave  and  accumulate  fomc  part  of 
what  they  acquire,  either  regularly  and  annually,  or  upon  fome 
extraordinary  occafions.  Though  the  principle  of  expence,  there- 
fore, prevails  in  almoft  all  men  upon  fome  occafions,  and  in 
fome  men  upon  almuft  all  occafions,  yet  in  the  greater  part  of 
men,  taking  the  whole  courfe  of  their  life  at  an  average,  the 
principle  of  frugality  feems  not  only  to  predominate,,  but  to  pre- 
dominate vci*y  greatly. 


With  regard  to  mifconduft,  the  number  of  prudent  and  fuc- 
cefsful  undertakings  is  every  where  much  greater  than  that  of 
injudicious  and  unfucccfsful  ones.  After  all  our  complaints  of 
the  frequency  of  bankruptcies,  the  unhappy  men  who  fall  into 
this  misfortune  make  but  a  very  fmall  part  of  the  whole  number 
engaged  in  trade,  ami  all  other  forts  ot  bufinefsj  not  much  more 
perhaps  than  one  m  a  thoufnd.  Bankrintcy  is  perhaps  the 
greateft  and  moil  humiliating  calamity  which  can  befal  an  innocent 
man.    The  gfeatcr  part  ©f  men,  theiefoie,  are  fufficiently  care- 

'    h  V  vv  •  fill 


^ 


4i6 


BOOK 
II. 


THE    NATURE    AND    CAUSES    OF 

fill  to  avoid  it.    Some,  indeed,  do  not  avoid  it ;  as  fome  do  not 
avoid  the  gallows,  . 


Great  nations  are  never  impoveriflied  by  private,  though  they 
fometimes  are  by  publick  prodigality  and  mifconduft.  The  whole, 
or  almoft  the  whole  publick  revenue,  is  in  moft  countries  employed 
in  maintaining  unprodu£tive  hands.  Such  are  the  people  who 
•compofe  a  numerous  and  fplendid  court,  a  great  ecclefiaftical  eftab- 
lifhment,  great  fleets  and  armies,  who  in  time  of  peace  produce 
nothing,  and  in  time  of  war  acquire  nothing  which  can  compenfate 
the  expence  of  maintaining  them,  even  while  the  war  lails.  Such 
people,  as  they  themfclves  produce  nothing,  are  all  m^untained 
by  the  produce  of  other  men's  labour.  When  multiplied,  there- 
fore, to  an  unneceflary  number,  they  may  in  a  particular  year 
confume  fo  great  a  (hare  of  this  produce,  as  not  to  leave  a  fuf- 
ficiency  for  maintaining  the  productive  labourers,  who  fhould  re- 
produce  it  next  year.  The  next  year's  produce,  therefore,  will 
be  lefs  than  that  of  the  foregoing,  and  if  the  fame  diforder  fhould 
continue,  that  of  the  third  year  will  be  ftill  lefs  than  that  of 
the  fecond.  Thofe  unproductive  hands,  who  fhould  be  main- 
tained by  a  part  only  of  the  fpare  revenue  of  the  people,  may 
confume  fo  great  a  fhare  of  their  whole  revenue,  and  thereby 
oblige  fo  great  a  number  to  encroach  upon  their  capitals,  upon 
the  func.  deftined  for  the  maintenance  of  productive  labour,  that 
all  the  frugality  and  good  conduCl  of  individuals  may  not  be  able 
to  compenfate  the  wafte  and  degradation  of  produce  occafioned  by 
this  violent  and  forced  encroachment.  -^ 

•1  '  .  ,.  -? 

This  frugality  and  good  conduft,  however,  is  upon  mofl  oc- 
cafions,  it  appears  from  experience,  fufHcient  to  compenfate,  not 
only  the  private  prodigality  and  mifconduCt  of  individuals,  but 
the  publick  extravagance  of  government.    The  uniform,  conftant. 


THE    WEALTH    OF    NATIONS. 


V7 


and  uninterrupted  efFoit  of  eveiy  man  to  better  his  condition,  CHAP, 
the  principle  from  which  publick  and  national,  as  well  as  private 
opulence  is  originally  derived,  is  frequently  powerful  enough  to 
maintain  the  natural  progrefs  of  things  towards  improvement,  in 
{giix  both  of  the  extravagance  of  government,  and  of  the  greateil 
trvort  of  fldnuniftration.  Like  the  unknown  principle  of  animal 
life.  It  frequently  reftcves  health  and  vigour  to  the  conftitutioiY,  in 
fpte,  not  only  of  the  difeafe,  but  of  the  al^urd  preferipdonfr  of 
the  do£Voc. 

"  The  annual  produce  of  the  land  and  labour  of  any  nation  can 
be  increafed-nn  its  value  by  no  other  mean^,  but  by  incrcaiing  either 
the  number  of  its  produftive  labourers,  or  the  produftive  powers 
of  thofe  labourers  who  had  before  been  employed.  The  number 
of  its  productive  labourers,  it  is  evident,  can  never  be  much 
increafed,  but  in  confequence  of  an  ina-eafe  of  capital,  or  of  the 
funds  deftined  for  m£untaining  them.  The  productive  poivers  of 
the  fame  number  of  labourers  cannot  be  increafed,  but  in  con- 
fequence  either  of  fome  addition  and  improvement  to  thofe  machines 
and  inftruments  which  facilitate  and  abridge  labour ;  or  of  a  more 
proper  divifiori  and  diftribution  of  employment.  In  either  cafe 
an  additional  capital'  is  alfnoft  always  r^qtiired^  It  is  by  means 
of  an  additional  capital  only  that  the  undertaker  of  any  woVk  can 
either  provide  his  workmen  witfi  better  machinery,  or  maktf  a  ntore 
proper  diftribution  of  employment  among  them.  When  the  work 
to  be  done  con(ifts  of  a  nunber  of  parts,,  to  keep  every  man  con- 
ftantly  employed  in  one  way,,  requires  a  much  greater  capital  than 
where  every  man  is  occafionally  employed  in  every  different  part 
of  the  work.  When  we  compare,  therefore,  the  ftatfe  of- a'  nation 
at  two  different  periods,  and  find,  that  the  annual  produce  of  its 
land  and  labour  is  evidently  greater  at  the  latter  than  at  the  former, 
that  its  lands  are  better  cultivated,  its  manufactures  more  nume- 
VoL.  L  3  H  -  rous 


11 


i| 


4I& 


THE    NATURE    AND     CAUSES     OF' 


B  op  K  rous  and  more  flourilhing,  and  its  trade  more  extenfive,  we  may 
be  affured  that  its  capital  muft  have  increafed  during  the  inteival 
between  tliofe  two  periods,  and  that  more  muft  have  been  added  to 
it  by  the  gpod  condu£l  of  fome,  than  had  been  taken  from  it  either 
by  the  private  mifcondu£t  of  others,  or  by  the  publick  extravagance 
of  government.  But  we  fhall  find  this  to  have  been  the  cafe  of 
almoft  all  nations,  in  all  tolerably  quiet  and  peaceable  timesy  even 
of  thofe  who  have  not  enjoyed  the  moft  prudent  and.  parfimonious 
governments.  To  form  a  right  judgement  of  Lt,  indeed,  we  muft 
compaie  the  ftate  of  the  country  at  periods  fomewhat  diftant  from 
one  another.  The  progrefs  is  frequently  fo  gradual,  that,  at  near 
periods,  the  improvement  is  not  only  not  fenfible,  but  from  the 
decleniion  either  of  certain  branches  of  induftry,  or  of  ceitain 
diftri£ls  of  the  country,  things  which  fometimes  happen  though  the 
country  in  general  is  in  great  profperity,  there  frequently 
arifes  a  fufpicion,  that  the  riches  and  induftry  of  the  whole 
are  decaying.^ 


The  annual  produce  of  the  land  and  labour  of  England,  foe 
example,  is  certainly  much  greater  than  it  was,  a  little  more  than 
a  century  ago,  at  the  reftoration  of  Charles  II.  Though  at 
prefent,  few  people,  I  believe,  doubt  of  this,  yet  during  this 
period,  five  years  have  feldom  palled  away  in  which  Ibme  book 
or  pamphlet  has  not  been  publiihed,  written  too  with  fuch  abilities 
as  lo  gain  fome  authority  with  the  publick,  and  pretending  to 
demonftrate  that  the  wealth  of  the  nation  was  faft  declining,  that 
the  country  was  depopulated,  agriculture  negle£led,  manufa£l;ures 
decaying,  and  trade  undone.  Nor  have  theie  publications  been 
all  party  pamphlets,,  the  wretched  offspring  of  falfhood  and  venality. 
Many  of  them  have  been  written  by  very  candid  and  very  intelligent 
people;  who  wrote  nothing  but  what  they  believed,  and  for  no 
other  reafon  but  becaufe  they  believed  it.^ 

The 


THE    WEALTH    OF    NATIONS. 


41^ 


The  annual  produce  of  the  land  and  labour  of  England  again,  C  HA  P. 
was  certainly  much  greater  at  the  reftoration,  than  we  can  fuppofe 
it  to  have  been  about  an  hundred  years  before,  at  the  accefTion  cf 
Elizabeth.  At  this  period  too,  we  have  all  realbn  to  believe,  the 
country  was  much  more  advanced  in  improvement,  than  it  had  been, 
about  a  century  before,  towards  the  clofe  of  the  dilTenlions  between 
the  houfes  of  York  and  Lancafter.  Even  then  it  was,  probably, 
in  a  better  condition  than  it  had  been  at  the  Norman  conqueft,  and 
at  the  Norman  conqueft,  than  during  the  confuHon  of  the  Saxon- 
Heptarchy.  Even  at  this  early  period,  it  was  certainly  a  more 
improved  country  than  at  the  invafion  of  Julius  Caefar,  when  its 
inhabitants  were  nearly  in.  the  fame  ftate  with  the  favages  in 
North  America.  ..  .t»/j  .ji-:i..-;.i  >>i.j.hj  ,  .3.; 

In  each  of  thofe  periods,  however,  there  was  not  only  much  private 
anH!  mib]ick  profufion,  many  expenfive  and  unnecefTary  wars,  great 
pei  :i  of  the  annual  produce  from  maintaining  productive  to 
mai  riU.ii  unproductive  hands ;  but  fometimes,  in  the  confufion 
of  cwil  difcord,  fuch  abfolute  wafte  and  deftrudtion  of  ftock,  as 
might  be  fuppofed,  not  only  to  retard,  as  it  certainly  did,  the 
natural  accumulation  of  riches,  but  to  have  left  the  country,  at  the 
,  end  of  the  period,  poorer  than  at  the  beginning.  Thus,  in  the 
happieft  and  moft  fortunate  period  of  them  all,  that  which  has 
pafled  fmce  the  reftoration,  how  many  diforders  and  misfortunes 
have  occurred,  which,  could  they  have  been  forefeen,  not  only  the 
impoverilhment,  but  the  total  ruin  of  the  country  would  have  been 
expeded  from  them  ?  The  fire  and  the  plague  of  London,  the  two 
Dutch  wars,  the  diforders  of  the  revolution,  the  war  in  Ireland, 
tlie  four  expenfive  French  wars  of  1688.  1701,  1742,  and  1756, 
together  with  the  two  rebellions  of  171 5  and  1745.  In  the  courfe  of 
the  four  French  wars,  the  nation  has  contracted  more  than  a 
hundred  and  forty  five  millions  of  debtj  over  and  above  all  tiie 

3  n  2  other 


4*0 

BOOK 
II. 


THE    NATURE    AND    CAUSES    OF 

other  extraordinary  annual  expencc  ^hi(^  tAwy  oocafionerl,  fe  that 
the  whok  cannot  be  eomputed  at  k(s  than  two  hundred  milKons. 
So  great  a  iKare  of  (^  annual  produce  of  the  land  and  laboinr 
of  the  country,  laas,  fince  the  revolution,   been  employed  upon 
different  occaAoilis^  in  maintaining  an  extraordinary  number  of  un- 
produ^ive  handi      But  had  not  thoie  wars  ^ven  this  particular 
dire^ion  to  (6  large  a  capital,  the  greater  part  of  it  would  naturally 
have  been  employed  in  maintaining  productive  hands,  whole  labour 
would  have  r^laced,    with  a  profit,  the  inliole  value  of  their 
canfumpttoQ.    The  value  of  the  annual  produce  t£  the  land  and 
labour  of  the  country,   would  have  been  ccmfiderably  increafcd 
by  it  ^very  year,  and  every  year's  increafe  would  have  augmented 
ftill  more  that  of  the  next  year.     More  houfes  would  hare  been 
built,  more  lands  would  have  been  improved,  and  thofe  which  had 
been  improved  before  would  have  been  better  cultivated,   more 
xianufaftures  would  have  been  eftablifhed,  and  thoie  which  had 
been  eilabliihed  before  would  have  been  more  extended ;  and  to 
what  height  die  real  wealth  and  revenue  of  the  country  might,  by 
tiiis  time,  have  been  raifed,  it  is  not  perhaps  very  eafy  e/en  to 
imagine. 


BvT  though  the  profufion  of  government  muft,  undoubtedly, 
have  retarded  the  natural  progrefs  of  England  towards  wealth  and 
^provement,  it  has  not  been  able  to  ftop  it.  The  annual  produce 
of  its  land  and  labour  is,  undoubtedly,  much  greater  at  prefent 
than  it  was  either  at  the  reftoration  or  at  the  revolution.  The 
capital,  therefore,  annually  employed  in  cultivating  this  land,  and 
in  maintaining  tlus  labour,  mufl  likewife  be  much  greater.  In  the 
midft  of  all  the  exa£tions  of  government,  this  capital  has  been 
filently  and  gradually  accumulated  by  the  private  frugality  and 
good  conduct  of  individuals,  by  their  univcrfal,  continual,  and 
uninterrupted  effort  to  better  their  own  condition.  It  is  this  effort, 
.V     '  7  protedled 


\: 


THE    WEALTH    OF    NATIONS. 


4*t 


protc£ted  by  law  and  allowed  by  liberty  to  exeii  itfelf  in  the  ^^rf-  ^* 
manner  that  is  m<^  advantageous^  which  has  midntained  the 
progrefs  of  England  towards  opulence  and  improvement  in  almoft 
all  former  times,  and  which,  it  is  to  be  hoped,  will  do  fo  in  alt 
future  times.  England,  howfver,  as  it  has  never  been  blefled  with 
a  very  parfimonious  government,  fo  parfimony  has  at  no  time  been 
the  chara^nftical  virtue  of  its  inhalntants.  It  is  the  highefl  im- 
pertinence and  pr^umption,  therefore,  in  kings  and  minifters,  to 
pretend  to  watch  over  the  oeconomy  of  private  people,  and  to 
reftr^n  their  expence  either  by  fumptuary  laws,  or  by  prohibiting 
the  importation  of  fordgn  luxuries.  They  are  themfelves  always, 
and  without  any  exception,  the  greateft  fpendthrifts  in  the  fociety. 
Let  them  look  well  after  their  own  expence,  an^  they  may  fafely 
truft  private  people  with  theirs.  If  their  own  extrav^ance  does  not 
ruin  the  ftate,  that  <^  their  fubje£ls  never  will. 

As  frugality  increases,  and  prodigality  diminlflies  the  publick 
capital,  fo  theconduA  of  thofe,  whofe  expence  jufl  equals  their 
revenue,  without  either  accumulating  or  encroaching,  neither 
increafes  nor  diminifhes  it.  Some  modes  of  expence,  however* 
feem  to  contribute  more  to  the  growth  of  publick  opulence 
than  others. 


The  revenue  of  an  individual  may  be  /pent,  either  in  things 
which  are  confumed  immediately,  and  in  which  one  day's  expence 
can  neither  alleviate  nor  fuj^rt  that  of  another  j  or  it  may  be 
fpent  in  things  mwe  durable,  which  ^an  therefore  be  accumulated, 
and  in  which  every  day's  expence  may,  as  he  chufes,  either  alleviate, 
or  fupport  and  heighten  the  effeft  of  that  of  the  following  day. 
A  man  of  fortune,  for  example,  may  either  fpend  his  revenue 
in  a  profufe  and  fumptuous  table,  and  in  maintaining  a  great  number 
of  menial  fervants,  and  a  multitude  of  dogs  and  horfes ;  or  con- 


tcntinj; 


422 


THE  NATURE  AND  CAUSES  OF 


B  O  O  K  tenting  himielf  with  a  frugal  table  and  few  attendants,  he  may  lay 
out  the  greater  part  of  it  in  adorning  his  houfe  or  his  country  villa, 
in  ufeful  or  ornamental  buildings,  in  ufeful  or  ornamental  furniture, 
m  ccMefling  books,  flatues,  pictures;  or  in  things  more  frivolous, 
jewels,  baubles,  ingenious  trinkets  of  different  kinds;  or,  what 
is  moil  trifling  of  all,  in  amafling  a  great  wardrobe  of  fine  clothes, 
like  the  favourite  ;  1  minifler  of  a  great  prince  who  died  a  few 
years  ago.  Were  '  j  r..en  of  equal  fortune  to  fpend  their  revenue, 
the  one  chiefly  in  the  one  way,  the  other  in  the  other,  the  magni- 
ficence of  the  perfon  whofe  expence  had  been  chiefly  in  durable 
commodities,  would  be  continually  increafing,  every  day's  expence 
contributing  fomething  to  fupport  and  heighten  the  effedt  of  that 
of  the  following  day :  That  of  the  other,  on  the  contrary,  would 
be  no  greater  at  the  end  of  the  period  than  at  the  beginning.  The 
foiinertoo  would,  at  tl..;  end  of  the  period,  be  the  richer  man  of 
the  two.  He  would  have  a  flock  of  goods  of  fome  kind  or  other, 
which,  though  it  might  not  be  worth  all  that  it  cofl,  would  always 
be  worth  fomething.  No  trace  or  veftige  of  the  expence  of  the 
latter  would  remain,  and  the  efFe£ls  of  ten  or  twenty  years  pro- 
fufion  would  be  as  compleatly  annihilated  as  if  they  had  never 
cxifled. 


As  the  one  mode  of  expence  is  more  favourable  than  the  other 
to  the  opulence  of  an  individual,  fo  is  it  likewife  to  that  of  a  nation^ 
The  houfes,  the  furniture,  the  cloathing  of  the  rich,  in  a  little 
time,  become  ufeful  to  the  inferior  and  middling  ranks  of  people. 
They  are  able  to  purchafe  tliem  when  their  fuperiors  grow  weary  of 
them,  and  the  general  accommodation  of  the  whole  people  is  thus 
gradually  improved,  when  this  mode  of  expence  becomes  univerfal , 
among  men  of  fortune.  In  countries  which  have  long  been  rich, 
you  will  frequently  find  the  inferior  ranks  of  people  in  pofleflion 
both  of  houfes  and  furniture  perfe6lly  good  and  entire,    but  of 

which 


THE    WEALTH    OF    NATIONS. 

which  neither  the  one  could  have  been  buih,  nor  the  other  have 
been  made  for  their  ufe.  What  was  formerly  a  feat  of  the  family 
of  Seymour,  is  now  an  inn  upon  the  Bath  road.  The  marriage 
bed  of  James  the  Ift  of  Great  Britain,  which  his  Queen  brought* 
with  her  from  Denmark,  as  a  prefent  fit  for  a  fovereign  to  make 
to  a  fovereign,  was,  a  few  years  ago,  the  ornament  of  an  alehoufe 
at  Dunfermline.  In  fome  ancient  cities,  which  either  have  been  long 
ftationary,  or  have  gone  fomevvhat  to  decay,  you  will  fometimes 
fcarce  find  a  fingle  houfe  which  could  have  been  built  for  its  prefent 
inhabitants.  If  you  go  into  thofe  houfes  too,  you  will  frequently  find 
many  excellent,  though  antiquated  pieces  of  furniture,  which  are  ftill 
very  fit  for  ufe,  and  which  could  as  little  have  been  made  for  them. 
Noblv-  palaces,  magnificent  villas,  great  collections  of  books,  .0:atues, 
pictures,  and  other  curiofities,  are  frequently  both  an  ornament 
and  an  honour,  not  only  to  the  neighbourhood,  but  to  the  whole 
country  to  which  they  belong.  Verfailles  is  an  ornament  and  an 
honour  to  France,  Stowe  ana  "ilton  to  England.  Italy  ftill 
continues  to  command  fome  fort  of  veneration  by  the  number  of 
monuments  of  this  kind  which  it  poffefies,  though  the  wealth  winch 
produced  them  has  decayed,  and  the  genius  which  planned  them 
feems  to  be  extinguifhed,  perhaps  from  not  having  the  fame 
employment.  '   '^ 

The  expence  too,  which  is  laid  out  in  durable  commodities^ 
is  favourable,  not  only  to  accumulation,  but  to  frugality.  If  a 
perfon  fhould  at  any  time  exceed  in  it,  he  can  eafily  reform 
without  expofing  himfelf  to  the  cenfure  of  the  publick.  To  reduce 
very  much  the  number  of  h»j  fervants,  to  reform  his  table  from 
great  profufion  to  great  frugality,  to  lay  down  his  equipage  after  he 
has  once  fet  it  up,  are  changes  which  cannot  efcape  the  obfervation 
of  his  neighbours,  and  which  are  fuppofed  to  imply  fome  ac- 
knowledgement of  preceding  bad  conduct.    Few,  therefore,  of  thofe 

♦       ,  who 


423 

CHAP. 

Hi. 


!M 


424 


THE    IfA-niR^B^  AKlt)'  feAt^SES>'<JF 


BOOK  who  have  onctf' hdn  fc^'  UnfoAuttatt  'Ks  to  leuntk  but  too 
far  into  this  fort  of  expence^  have  afterwards  the  courage 
to  reformi  till  ruin  and  bankruptcy  oblige  them.  Bat  if  a  perfon 
has,  at  any  time,  been  at  too  great  an.expence  in  building; 
m  rarniture,  in  books  or  pi^ui-est  no  impru^ttce' cail  be  ini> 
ferred  from  his  chan^ng  his  condu^.  TheTe  are  things' in  wlwch 
further  expence  is  frequently  rendered  unneceiTary  ^y  former 
expencei  and  when  a  perfon  ftops  fhort^  he  appears  to  do 
fo,  not  becaufe  he  Iws  exceeded  his  iWtuiw,  but  becauie  he  has 
fatisficd  his  fancy.  vftwts    u  > '-^fix?;  J«  jt<jj,:j»flt» 

^  The  expence,  befides,  that  is  bud  out  in  durable  torn** 
tnodities,  gives  maintenance,  commonly,  to  a  greatei'  nohlber 
6f  people,  than  that  which  is  employed  in  the  moft  profofe 
hofpitality.  Of  two  or  three  hunditid  weig;h«  of  fitxiyifiQity^' »<rhi<di 
may  fometuskes  be  ierved  up  at  a  great  feftival,  one-half,  peiii^s, 
is  thrown  to  the  dunghill,  and  there  is  always  a  great  deal  wafted 
andabufed.  But  if  the  expence  of  this  entertainment  had  been 
employed  in  fetting  to  work,  maibns,  carpenters^  upholfterers, 
mechanicks,  a  quantity  of  provifioos,  of  equal  valuer  would 
have  been  diftributed  among  a  (till  greater  number  of  people, 
who  would  have  bought '  them  in  penny-worths  and  poond 
weights,  and  not  have  loft  or  thrown  away  a  fingle  ounce 
of  them.  In  the  one  way,  befides,  this  expence  maiutains  pro- 
du^ive,  in  the  other  unproductive  hands.  In  the  oiie  way, 
therefore.  It  increafies^  in  the  other.  It  does  not  increafe,.  the 
exchangeable  value  of  the  annual  produce  of  the  land  and  labour 
of  the  country. 


1  vrovhi>  not,,  however,  by  alt  this'  be  underftoed  to  mean, 
that  the  oixe  %ecie8  of  expence  alvrays  bet^ens  a  mere  liberal 
or  generous  i|Mrit  than  tlie  other.    When  a  man  o£  fortune 

i^  ipends 


THE    WEALTH    OF    NATIONS. 


4*5 


ipends  his  revenue  chiefly  in  hofpitality,  he  ihares  the  greater  ^'i.^^* 
part  of  it  with  his  friends  and  companions;  but  ..when  he 
employs  it  in  purchafing  fuch  durable  commodities,  he  often 
ipends  the  whole  up<Hi  his  own  perfon,  and  gives  nothing 
to  any  body  without  an  equivalent.  The  latter  fpecies  of  ex- 
pence,  therefore,  efpecially  when  diredted  towards  frivolous 
obf0£b,  the  Kttle  ornaments  of  drefs  and  furniture,  jewels, 
tiinkcts,  gewgaws,  fitqutntly  indicates,  not  only  a  trifling,  but 
«  bafe  and  itlfiih  difpofition.  All  that  I  mean  is,  that  the 
one  fort  of  expenee,  as  it  always  occafions  fome  accumu- 
lation of  valuable  commodities,  as  it  is  m6re  favourable  to 
piivate  frugality,  and,  copfequently,  to  the  increafe  oi  the 
puldick  capita],  and  as  it  maintains  productive,  rather  than 
iciiqprodu£Hve  hands,  conduces  more  ^taai  tiie  other  to  th» 
gcowtlL  of  publick  opulence. 


r% 


Trtk.  I. 


3  I 


0: 


Y,HE    NATyRJE    A^P    CAUSES    OF 


M-:^R>. 


^JX>  ■  d  »^i'-^rtl  '^O'  ribffi 


3iJf/*, 


CHAP.    IV. 


^■rilif^  !<ii?*pof^^     q/*  5/0^  ^«r  at  Intereft. 


BOOK 
II. 


E  ftock  which  is  lent  at  intereft  is  always  confi4^|:cd .  as, 
capital  by  the  lender.  He  experts  that  m  due  time 
it  is  to  be  reftored  to  him,  and  that  in  the  mean  time  the  bor- 
rower is  to  pay  him  a  certain  annual  rent  for  the  ufe  of  it.  The 
borrower  may  ufe  it  either  as  a  capital,  or  as  a  ftock  referved  for 
immediate  confumption.  If  he  ufes  it  as  a  capital,  he  employs  it 
in  the  maintenance  of  produ6tive  labourers,  who  reproduce  th(^ 
value  widi  a  profit.  H^  can,  in  this  cafe,  both  reftore  the  capital 
and  pay  the  intereft  without  alienating  or  encroaching  upon  any  .p. 
other  fource  of  revenue.  If  he  ufes  it  as  a  ftock  referved  for  im- 
mediate confumption,  he  a£ts  the  part  of  a  prodigal,  and  diflipates 
in  the  maintenance  of  the  idle,  what  was  deftined  for  the  fupport 
of  the  induftrious.  He  can,  in  this  cafe,  neither  reftore  the  capital 
nor  pay  the  intereft,  without  either  alienating  or  encroaching  upon 
fome  other  fource  of  revenue,  fuch  as  the  property  or  the  rent 
of  land. 

The  ftock  which  is  lent  at  intereft,  is,  no  doubt,  occafionally  em- 
ployed in  both  thefe  ways,  but  in  the  former  much  more  frequently 
than  in  the  latter.  The  man  who  borrows  in  order  to  fpend  will 
fbon  beruined,  and  he  who  lends  to  him  will  generally  have  occafion 
to  repent  of  his  folly.  To  borrow  or  to  lend  for  fuch  a  purpofe, 
therefore,  is  in  all  ca(es,  where  grofs  ufury  is  out  of  the  queftion, 
contrary  tci  the  intereft  of  both  parties;  and  though  it  no 
doubt  happdis  fometimes  that  people  do  both  the  one  and*^ 
the  other;  yet,  from  the  regard  that  all  men  have  for  their  own 
intereft,  we  may  be  afTured,  that  it  cannot  happen  fo  very  fre- 
quently as  we  are  fometimes  apt  to  imagine.     Afk  any  rich  man  ^ 

.  .  -■■■''  :  :"'• ■'■■■■'#'     of   ' 


A 


THE    WCALtir    OP    NATIO^Js^ 


42f 


of  common  prudence,  to  which  of  the  two  forts  of  people  he  has  C  HA  P. 
lent  the  greater  part  of  his  ftock,  to  thofe  wh  ,  he  thinks,  will 
employ  it  profitably,  or  to  thofe  who  will  fpend  it  idly,  and  he  will 
laugh  at  you  for  propofing  the  queftion.  Even  among  borrowers, 
therefore,  not  the  people  in  the  world  moft  famous  for  frugality, 
the  number  of  the  frugal  and  induftrious  furpafles  confiderably  tbat: 
of  the  prodigal  and  idle. 


The  only  people  to  whom  flock  is  commonly  lent,  without  their* 
being  expe£led  to  make  any  very  profitable  u(e  of  it,  are  country 
gentlemen  who  borrow  upon  mortgage.  Even  they  fcarce  ever- 
borrow  merely  to  fpend.  What  they  borrow,  one  may  fay,  is' 
commonly  fpcnt  before  they  borrow  it.  They  have  generally  con- 
fumed  (^  great  a  quantity  of  goods,  advanced  to  them  upon  credit' 
by  fhopkeepers  and  tradefmen,  that  they  find  it  neceflary  to  borrow 
at  intcreft  in  order  to  pay  the  debt.  The  capital  borrowed  replaces  the- 
capitals  of  thofe  fhopkeepers  and  tradefinen,  which  the  country  gen- 
tlemen could  not  have  replaced  from  the  rents  of  their  eftates.  It- 
id  not  properly  borrowed  in  order  to  be  fpent,  but  in  order  to- 
replace  a  capital  which  had  been  fpent  before.. 

* 

Almost  all  loans  at   interefl"  are  made  in  money,  either  oF 
paper,  or  of  gold  and  filver.    But  what  the  borrower  really  wants,., 
and  what  the  lender  really  fnpplies  him  with,  is,  not  the  money, . 
But  the  money's  worth,  or  the  goods  which  it  can  purchafe. 
If  he  wants  it  as  a  flock  for  immediate  confumption,  it  is  thofe 
goods  only  which  he  can  place  in  that  flock.    If  he  wants  it  as  ■ 
a  capital  for  employing  induflry,  it  is  from  thofe  goods  only  that 
the  induflribus  can  be  fumifhed   with  the  tools,  materials,  and' 
maintenance,  neeelTary  for  carrying  on  their  work.    By  means  of 
the  loan,  the  lender,  as  it  were,  afllgns  to  the  borrower  his  right 
to  a  certain  portion  of  the  annual  produce  of  the  land  and  labour.- 
of  the  country,  to  be  employed  as  the  borrower  pleafes. 

1  I  2.  The. 


•hi. 


m 


m' 


4a8 


;th?  nature  and  causes  of 


BQpK 


]p 


Tifif  ({Uftfitity  of  ftock,  theMfmto,  or,  as  k  it  coainionly  ex« 
prefled*  of  money  wluch  can  be  tent  at  intereft  in  any  country, 
it  not  regulated  by  the  value  of  the  money,  whether  paper  or 
coin,  whkh  ierves  as  the  inftrument  of  the  cliffiMtnt  loana 
niade  ii\  that  country,  but  by  the  value  of  that  part  of  tbo 
annual  produce  which*  as  foon  as  it  comes  elthce  ieom  the* 
ground,  or  from  the  hands  of  the  produ£live  labourers,  is  defined 
not  only  for  replacing  a  capital,  but  fuch  a  capital  as  the  owner 
does  not  care  to  be  at  the  trouble  of  employing  himifelf.  As  fuch 
capitals  are  commonly  lent  out  and  p^ud  back  in  money,  they 
conllitute  what  is  called  the  monied  intereft.  It  is  dilUnft,  not 
only  from  the  landed,  but  from  the  trading  and  manufacturing 
interefls,  as  in  thefe  laft  the  owners  themfelves  employ  their  own 
capitals.  Even  in  the  monied  intereft,  however,  the  money,  is, 
as  it  were,  but  the  deed  of  afttgnment,  which  conveys  Irom  «iic» 
hand  to  another  thofe  capitals  which  the  owners  do  not  cace  to 
employ  themfelves.  Thole  capitals  may  be  greater  in  «lmoft  any 
proportion,  than  the  amount  of  the  money  which  ferves  as  the 
inftrument  of  their  conveyance;  the  fame  pieces  of  money  fuc* 
cefTively  ferving  for  many  different  loans,  as  well  as  foi-  many 
different  purchafes.  A,  for  example,  lends  to  W  a  thoufand 
pounds,  with  which  W  immediately  purchafes  of  B  a  thoufand 
pounds  worth  of  goods.  B  having  no  occafion  for  the  money 
himfelf,  lends  the  identical  pieces  to  X,  with  which  X  immediately 
purchafes  of  C  another  thoufand  pounds  worth  of  goods.  C  in  the 
fame  manner,  and  for  the  iame  reafon,  lends  them  to  Y,  who 
again  purchafes  goods  with  them  of  D.  In  this  manner  the  fame 
pieces,  either  of  coin,  or  of  paper,  may,  in  the  courfe  of  a  few 
days,  ferve  as  the  inftrument  of  three  different  loans,  and  of  three  ~ 
different  purchafes,  cfch  of  which  is,  in  value,  equal  to  the  whole 
amount  of  thofe  pieces.  What  the  three  monied  men  A,  B,  and 
C,  aflign  to  the  three  borrowers,  W,  X,  Y,  is  the  power  of 
making  thofe  purchafes.   In  this  power  oonfift  both  the  value  and 


2  n  i 


the 


4 


THE    WEALTH    OF    NATIONS. 


4af 


IV. 


tKe  uTe  qf  Hm  Iqani.  The  ftock  knt  by  the  three  monied  muit  is  GHJ^  IV 
equal  to  the  value  of  the  goods  which  can  be  purchased  with  it« 
and  is  three  times  greater  than  that  of  the  money  with  which  the 
purchaies  are  made.  Thofe  loans,  however*  may  be  all  perfe£ily 
well  fccured,  the  goods  purchaTed  by  (be  dii&reat  debtors  hoing 
fo  employed*  at.  ur  di«9  time,  to  bring  biK:I^  with  a  pro&t,  an 
equal  val\M  ather  of  coin  or  of  paper.  And  as  the  fame  lueces  'r 
mcufiey  <;an  tlius  Ifuve  a9  the  inllrument  of  different  luaas  tv 
threet  or,  for  the  fame  reafon,  to  thirty  times  their  v^tlue, 
fo  they  may  Ukewife  f^feflively  f^rve  a^  tb'    in^rument  of  re- 


payment,   i         f 

;j  u  tt/7;>fituatin  i'lf/ 


•/'3hu  hiiif'^im  'h  _     *tA'fi  i  j'<fi^Y^^r•^ 

'  A  CAPITAL  lent  at  intereft  may,  in  this  manner,  be  confider  ^d 
as  an  alignment  Irom  the  lendei'  to  the  borrower  of  a  cr;!-aui 
conTiderable  portion  of  the  annual  produce }  upon  copdr'^'on  that  the 
borrower  in  return  (hall,  during  the  continuance  of  the  1(  •an,  annually 
aflign  to  the  lender  a  finalkr  pordon,  called  the  intereft  j  and  at  tlie 
end  of  it  a  portion  equally  confiderable  with  that  which  had 
originaU'  been  affigned  to  him,  called  the  repayment.  Though 
money,  either  coin  or  paper,  ferves  generally  as  the  deed  of 
aflignment  both  to  the  fmaller,  and  to  the  more  confiderable 
portion,    it  is  itlelf   altogether  different  from  what  is  affigned 


ir.'rrn'f 


■■'h 


vrn, 


In  proportion  as  that  (hare  of  the  amiurJ  produce  which,  as 
foon  as  it  comes  either  from  the  ground,  oi  tVom  the  hands  of  the 
productive  kbourers,  is  deftined  for  replacing  a  capital,  increa^s 
in  any  country,  what  is  called  ttic  monied  intereft  naturally 
increafes  with  it.  The  increafe  cf  thofe  particular  capitals  froin 
which  the  ownetis  wi(h  to  derive  a  rc;vem|e,  without  being  at 
the  trouble  oS  employing  t^ojoi  thcmidves,  naturally  accompanies 
Ihe  general  increAife  filf  (Capitals  i   or  in  other  words,   as  ilock 


t*. 


430 


THE    NATURE    AUDt    OAUeES    Of 


B  o  o  K  increafes,  the  quantity  <ff.4^  tp Jjnj!  l^t  at iwt!?<eft.giowi.  gra^iiaUy 


# 


M 


greater  and  gre^t^r. 


^' 


-vy 


V* 


9rtl  d2^'',''Trt*  ^^^■> 


I'iV.r.'fr) 


;     •■-     UF'f  aril 


As  the  quantity  of  ftock  to  be  lent  at  intereft  increafes,  the  in*< 
tereft,  or  the  price  which  muft  be  psdd  for  the  ufe  of  that  ftock^ 
necellarily  diminiflies,  not  only  from  thofe  general  caufes  whidi> 
make  the  market  price  of  things  commonly  diminish  as  their  quan- 
tity increafes,  but  from  other  caufes  which  are  peculiar  to  this 
particular  cafe.    As  capitals  increafe  in  any  country,   the  profits 
which  can  be  made  by  employing  them  neceflarily  dimini(h.    It 
becomes  gradually  more  and  more  difficult  to  find  within  the  coun- 
try a  profitable  method  of  employing  any  new  capital.     There: 
aiifes  inconfequence  a  competition  between  different  capitals,  the 
owner  of  one  endeavouring  to  get  pofieifion  of  that  employment 
which  is  occupied  by  another.    But  upon  moft  occafiohs  he  can' 
hope  to  juftle  that  other  out  of  this  employment,  by  no  other, 
means  but  by  dealing  upon  more  reafonable  terms.    He  muft  ||ot 
only  fell  what  he  deals  in  fomewhat  cheaper,  but  in  order  to  get  it. 
to  fellj  he  muft  fometimes  too  buy  it  dearer.    The  demand  for  pi;o- 
duftive  labour,  by  the  increafe  of  the  funds,  which  are  de^edt 
for  maintsuning  it,  grows  every  day  greater  and  greater.    Labourer9> 
eafily  find  employment,  but  the  owners  of  capitals  find  it  difficulty 
to  get  labourers  to  employ.     Their  competition  raifes  the  wag^ 
of  labour,  and  finks  the  profits  of  ftock.  ,  But  when  the  profits^, 
which  can  be  madq  by  the  ufe  of  a  capital  are  in  thiis  manner.  4i7^v, 
minilhed  as:  it  were  at  both  ends,  the.  price  which  can  be  paid  foi^ . 
theufeof  itt  that  is  the  rate  of  intereft,  mud;  necei&rUy  bjs  (U-*- 
miniOied, with.  them,.      ,;,j  y^^,,  ^M^.j^dW     .imi  :m^^  ^hnuoq  mA 

Mk.  Locke,  Mr.  Law,  and  Mr.  Montclquiou,  as  well  as  mvxp\ 
other  writers,,  feem  to  have  imagined  that  the  increafe  of  tho 
quantity  of  gold  and  fUveri^in^confequence  of  the.  difcovety'o^ 

4v  ..   .    ^       ^^ 


THE    WEALtii    O^    NATIONS. 


43» 


the  «|«ni(h' Weft  Irtdte^'M*^^  c hap. 

the  rate  of  intereft  through  the  greater  part  of  Europe.  '  Thofe 
metals,  they  fay,  having  become  of  lefs  value  themfelves,  the  ufe 
of<  any  particular  pdrtibn  of  theih  fteceflarily  became  of  lefs  Value 
to6j(eihd  cdnfequently  the  prite  which  could  be  paid  for  it.  't'his 
notioi^,  which  ^t  firfl:  fight  feems  fo  plaufible,  has  been  fo  fully 
expofed  by  Mr.  Hume^  that  it  is,  perhaps,  unneceflary  to  fay  any 
thihg  more  about  it.  The  following  very  fhort  and  plain  argu- 
ment, however,  may  ferve  to  explain  more  diftinftly  the  fallacy 
which  feems  to  have  miOedthofe gentlemen.       ''>^*^  ^^  "^^  "^'"" 

BEFORE  the  difcovery  of  the  Spanifh  Weft  Indies,  ten  percent. 
feeAis  to  hatve  been  the  common  rate  of  intereft  through  the  greater 
part  of  Europe.    It  has  fince  that  time  in  different  countries  funk 
td  lix,  five,  four,  and  three  per  cent.     Let  us  fuppofe  that  in  every  ^ 
particular  country  the  value  of  filver  has  funk  precifely  in  the  fame 
pro^rtfon  as  the  rate  of  intereft  j  and  that  in  thofe  countries,  for 
exattiple,  where  intereft  has  been  reduced  from  ten  to  five  per 
certt.  the  fame  quantity  of  filver  can  now  purchafe  juft  half  the, 
qudiittty  of'  goods  which  it  could  have  purchafed  before.     This 
fuppbfition  wilt  not,  I  believe,  be  foUnd  any  where  agreeable  to 
the  truth,  buf  it%  the  moft  favourable  to  the  opinion  which  we 
are  gloing  to  examine;  and  even  upon  this  fUppofition  it  is  utterly 
impoflible  that  the  lowei'ing  of  the  value  of  filver  could  have  the 
fmalleft  tendency  to  lower  the  rate  of   intereft.     If  a  hundred^ 
pdunds  are  in  thofe  countries  now  of  no  more  value  than  fifty, ^ 
pounds  were  then,  ten  pounds  muft  now  be  of  no  more  value  than 
five  pounds  were  then.    Whatever  were  the  caufes  which  lowered 
the  value  of  the  capital,  the  fame  muft  necefTarily  have  lowered 
that  of  the  intereft,  and  exaftly  in  the  fame  proportion.    The  pro- 
portion between  the  value  of  the  capital  and  ihdX  of  the  intereft, ' 
muft  have  remained  the  fame,  though  the  rate  had  never  been' 

.**"  altered. 


na 


■4« 


43* 
BO  O  K 


THE  NATURE  AND  CAUSES  OF   " 

altei<«d.  By  akeiring  the  rate,  cm  the  cotitrarjr,  'the  proportion 
between  t\v>&  two  values  is  neceflarily  altered.  If  a  hundred 
pounds  now  are  worth  no  more  than  fifty  were  then,  five  pounds 
now  can  be  worth  no  more  than  two  .pounds  ten  (hillings  were 
then.  By  f«dacing  the  rate  of  intereft,  therefore,  from  ten  to 
fire  per  cent. 'we  give  for  the  ufe  of  a  capital,  which  is  fiippofed  to 
be  equal  to -one-half  of  its  former  value,  an  intereft  which  is  equi^ 
to  one-fourth  only  of  the  value  of  the  former  intereft. 


Any  increafe  in  the  quantity  of  filver,  while  that  of  the  com- 
modities circulated  by  means  of  it  remained  the  fame,  could  have 
no  other  effc6t  tlian  to  diminilh  the  value  oi  that  metsd*  The  no- 
minal value  of  all  forts  of  goods  would  be  greater,  but  their  real 
value  would  be  precifely  the  fame  as  before.  They  would  be  ex- 
changed for  a  greater  number  of  pieces  <^  filicert  but  the  quantity 
of  labour  which  they  Could  command,  the  number  of  pec^  whom 
they  could  maintain  and  employ,  would  be  precifely  die  fame. 
The  cafMtal  of  the  country  would  be  the  &me,  though  a  greater 
number  of  pieces  might  be  requifite  for  c(mveying  any  equal 
fknlion  of  it  from  one  hand  to  another.  The  deeds  of  afligmnent» 
like- the  conveyances  of  a  verbofe  attorney,  would  foe  more  cum-* 
berfbme,  but  the  thing  afhgned  would  be  priciftly  the  fame  as 
before,  and  could  produce  only  the  fame  efiiefls.  The  funds  for 
maintjuning  productive  labour  bang  the  fame,  the  demand  for  it 
would  be  the  fame*  Its  price  or  wages,  therefore,  thoi^h  no*  ■ 
minally  greater,  would  realty  be  the  fame.  Thef  would  be  paid 
in  a  greater  number  of  pieces  of  filver  j  but  they  would  purdiaie 
only  the  £ime  quantity  of  goods.  The  profits  of  flock  would  bft 
the  fame  both  nominally  and  really.  The  wages  of  labour  are 
commonly  computed  by  the  quantity  of  filver  which  is  paid  to  the 
lahourer.  When  that  is  increa&d,  therefore,  his  wages  appear 
tabe  increa&d,  thoqgh  they  may  fometimes  be  no  greater  than  ^ 

'^  ,  before.    . 


■:.k 


T H E ^  W E  A L T H    OF    NjAT I O N S* 

b«|S9i]««.  Qut  the  fvpfits  <^  ftock  aro  not  computed  by  the  num- 
ber of  pieces,  of  fUver  with  which  they  are  paid,  but  by  the  pro- 
pottion  which  thof^  piec^ft  b«ar  to  the  whole  capital  employed. 
Thus  v(i  a  particular  country  five  fhillings  a  week  are  faid  to  be 
the  common  wages, of  labour,  and  ten  pei'  cent,  the  common 
.profits  of  ftock.  But  the  whole  capital  of  the  country  being  the 
fame  as  before,  the  competition  between  the  different  capitals  of 
individuals  into  which  it  was  divided  would  likewife  be  the  fame. 
They  would  all  trade  with  the  fame  advantages  and  difad vantages. 
The  common  proportion  between  capital  and  profit,  therefore, 
would  be  the  fame,  and  confequently  the  common  intereft  of  mo- 
ney; what  can  commonly  be  given  for  the  ufe  of  money  being 
neceflarily  regulated  by  what  can  commonly  be  made  by  the  ufe 

;  Any  increafe,  in  the  quantity  of  commodities  annually  circulated 
within  the  country,  while  that  of  the  money .  which  circulated 
thein, remained  the  fame,  would,  on  the  contrary,  produce  many 
qflyfit  important  eiFe6ls,  beiides  that  of  raifing  the  value  of  the 
money*  The  capital  of  the  country,  though  it  might  nominally 
be  the  iamc,  would  really  be  augmented.  It  nught  continue  to  be 
CXf^fied  by  tho  fivne  quantity  of  money,  but  it  would  cominaiDd  a 
greater  quantity  of  labour.  The  quantity  of  productive  labour 
whicli,  it  could  maintain  and  emj^oy  would  be  increafed,  and  con-> 
^^u^ntly  the  demand  for  that  labour.  Its  wages  would  naturally 
>^iiJb  with  the  demand,  and  yet  might  appear  to  fink.  They  might 
be  p(ud  wijtli  a  fmatkr  quantity  of  money,  but  that  fmallcr  quantity 
>Biighl  purchafe  a  gfeater  quantity  of  goods  than  a  greater  had 
^ne, before.  The  profits  of  ftock  would  be diminifhtd  both  really 
.«»d  irv  appearance.  The  whole  capital  of  the  country  being  aug- 
,mented»  the  competition  between  the  different  capitals  of  which 
It  was  coropoftd^  woukf  naturaHy  be  augmented  aloTig  wlth^  it. 
Vol.  I.  3  K        •    .  The 


43i 

QHAP. 
IV. 


'11 


in 


434 

BOOK 
II. 


THE    NATURE    AND    CAUSES    OF 

The  owners  of  thoie  particular  capitals  would  be  obliged  to  content 
themfelves  with  a  fmaller  propoition  of  the  produce  of  that  labour 
which  their  refpe6tive  capitals  employed.  The  intereft  of  money^. 
keeping  pace  always  with  the  profits  of  ftock,  might,  in  this  man< 
ner,  be  greatly  diminiihed,  t!  jugh  the  value  of  money,  or  the 
quantity  of  goods  which  any  particular  fum  could  purchafe,  was 
greatly  augmented. 

In  fome  countries  the  intereil  of  money  has  been  prohibited  by 
law.  But  as  fomething  can  every  where  be  made  by  the  ufe  of 
money,  (bmething  ought  every  where  tobtt  paid  for  the  ufe  of  it; 
This  regulation,  inflead  of  preventing^  has  been  found  from  expe- 
rience to  increafe  the  evil  of  ufury;  the  debtor  being  obliged  ta, 
pay,  not  only  for  the  ufe  of  the  money,,  but  for  the  rilk  which^hi*^ 
creditor  runs  by  accepting  a  compenfation  for  that  ufe.  He  is- 
obliged,  if  on**  may  fay  fo,  to  infuce  hJs  creditor  from  the 
penalties  of  ufury* 

In  coimtries  where  ihtereft  is  permitted;  the  law,  in  order  to 
prevent  the  extortion  of  ufury,  generally  fixes  the  higheft  rate 
which  can  be  taken  without  incurring  a  penalty.  This,  rate  ought, 
always  to  be  fbmewhat  above  the  lowed  market  {H-ice^  or- the  price 
which  is  commonly  paid  for  the  ufe  ofrmoney^^  by  thofe  who  can*, 
give  the  moft  undoubted .  feeurity.  If  this  legal  rate  (houki  be  fixed 
below  the  loweft  market.  rate»  theeffcftsiof  this. fixation  muftbc 
nearly  the  fame  as  thofe  (^,  a- total  prohibition  of  interefl;.  Thee 
creditor  will  not  lend  his  money , foe  lefs  than  the  ufe  of  it  is  worth* . 
and  the  debtor  muft  pay  him  for  the  ri(k  which-  he  runs  by'  ac-^ 
cqpting  the  full  value  of  that  ufe.  If  it  is  £xed  precisely  at  th& 
loweft  market  price,  it  ruins  with  honed:  people,  who  relpe£l  the. 
laws  of  thdr  country,  the  credit  of  alL  thoie  who  cannot  give  the 
veiybeft  feeurity,  and  obliges  them  to.  have  recourfe  to  exorbitant 
,        .  .    ufurers, . 


THE    WEALTH    OF    NATIONS. 


431 


In  a  country,  fuch  as  Great  Britain,  where  money  is   C  HA  P. 

J  V  • 


lifurers. 

lent  to  government  at  three  per  cent,  and  to  private  people  upon 
good  fecurity  at  four  and  four  and  a  half;  the  prefent  legal  rate, 
five  per  cent,  is,  perhaps,  as  proper  as  any. 

The  legal  rate,  it  is  to  be  obferved,  though  it  ought  to  be  ibme- 
vrhat  above,  ought  not  to  be  much  above  the  lowefl;  market  rate. 
If  the  legal  rate  of  intereft  in  Great  Britain,  for  example,  was 
fixed  fo  high  as  eight  or  ten  per  cent,  the  greater  part  of  the  money 
which  was  to  be  lent,  would  be  lent  to  prodigals  and  proje«5tor8, 
who  alone  would  be  willing  to  give  this  high  intereft.  Sober 
people,  who  will  give  for  the  ufe  of  money  nc  more  than  a  part 
of  what  they  are  likely  to  make  by  the  ufe  of  it,  would  not  venture 
into  the  competition.  A  great  part  of  the  capital  of  the  country 
would  thus  be  kept  out  of  the  hands  which  were  moft  likely  to  make 
a  profitable  and  advantageous  ufe  of  it,  and  thrown  into  thofe 
which  were  moft  likely  to  wafte  and  deftroy  it.  Where  the  legal 
rate  of  intereft,  on  the  contrary,  is  fixed  but  a  very  little  above  the 
loweft  market  rate,  fober  people  are  univerfally  preferred,  as  bor- 
rowers, to  prodigals  and  projectors.  The  perfon  who  lends 
money  gets  nearly  as  riuch  intereft  from  the  former  as  he  dares  to 
take  from,  the  latter,  and  his  money  is  much  fafer  in  the  hands  of 
the  cue  fett  of  people  than  in  thofe  of  the  other.  A  great  part  of 
the  capital  of  the  country  is  thus  thrown  into  the  hands  in  which 
it  is  moft  likely  to  be  employed  with  advantage. 


No  law  can  reduce  the  common  rate  of  intereft  below  the 
loweft  ordinary  market  rate  at  the  time  when  that  law  is  made.  Not- 
withftanding  the  edid  of  1766,  by  which  the  French  king  attempted 
to  reduce  the  rate  of  intereft  from  five  to  four  per  cent,  money 
continued  to  be  lent  in  France  at  five  per  cent.;  the  law  being 
evaded  in  (everal  difierent  ways. 

3  K  2  The 


«v. 


436 


BOOS 
II. 


THE  NATURE  AND  CAUSES  OF 

« 

Thb  ordinary  market  price  of  land,  it  is  to  be  obferved,  depends 
every  where  upon  the  ordinary  market  rate  of  intereft.  The  pcr- 
fon  who  has  a  capital  from  wliich  he  wifhes  to  derive  a  revenue, 
without  taking  the  trouble  to  employ  it  himfelf,  deliberates  whct^^er 
he  ftiould  buy  land  with  it,,  or  lend  it  out  at  intereft.  The  fupencr 
fecurity  of  land,  together  with  .fome  other  advantages  w!ut.h  ul- 
inoft  every  where  attend  upon  this  fpeciesof  property,  will  ger.crally 
difpofe  him  to  content  himfelf  with  a  fmalkr  revenue  from  land, 
than  wbat  he  might  have  by  lending  out  hiat  money  at  intereft. 
Thefe  advantages  are  fufficient  to  compenfate  a  ceitniii  differ- 
ence oi  revenuei  but  they  will  compenfate  a  ceiiain  difference 
only  J  and  if  the  icnt  of  land  (houM  fall  (hoit  of  the  intereft  of 
money  by  a  gre.v.-T  dJIFerjince,  Miobody  would  buy  land,  which 
would  foon  reduce  'its  oidjnaiy  price.  On  the  contrary,  if  the 
advantages  fhould  n'.urh  more  than  compenfate  the  difference, 
every  body  would  buy  land,  which  again  would  foon  raife  its  ordi- 
nary price.  When  intereft  was  at  ten  per  cent,  land  was  com- 
monly fold  for  ten  and  twelve  years  purchale.  As  intereft  funk 
to  fix,  five,  and  four  per  cent,  the  price  of  land  rofe  to  rwenty, 
five  and  twenty,  and  thirty  years  purchale.  The  market  rate  of 
intereft  is  higher  in  France  than  in  England  i  and  the  common 
prici'  of  land  is  lower.  In  England  it  commonly  fells  at  thirty  1  in 
France  at  twenty  years  purchafe. 


\(, 


-)••'■■ 


^t  g 


TH^    WEALTH    OF    NATIONS. 


437 


i-        »  ,'.!'. 


CHAP.    V. 


0/  the  different  Employment  of  Capitals, 


T 


HOUGH  gH  capitals  are  dcftined  for  the  maintenance  of  CHAP, 
produftive  labour  only,  yet  the  quantity  of  that  labour. 


which  equal  capitals  arc  capable  of  putting  into  motion,  varies 
extreamly  according  to  the  diverfity  of  their  employment;  as  does 
likewife  the  value  which  that  employment  adds  to  the  annual  pro- 
duce of  the  land  and  labour  of  the  country. 

A  CAPITAL  may  be  employed  in  four  different  ways :  either, 
firft,  in  procuring  the  rude  produce  annually  required  for  the  ufe 
and  confumption  of  the  focietyj  or,  fecondly,  in  manufafturmg 
and  preparing  that  rude  produce  for  immediate  ufe  and  confump- 
tion j  or,  thirdly,  in  tranfporting  either  the  rude  or  manufaftured 
produce  from  the  places  where  they  abound  to  thofe  where  they 
are  wanted;  or,  laftly,  in  dividing  particular  portions  of  either 
into  fuch  fmall  parcels  as  fuit  the  occafional  demands  of  thofe  wha 
want  them.  In  the  firfl  way  are  employed  the  capitals  of  all  thofe 
who  undertake  the  improvement  or  cultivation  of  lands,  mines, 
or  fifheriesj  in  the  fecond,  thofe  of  all  mafler  manufafturers  > 
in  the  third,  thofe  of  all  vvliolefale  merchants;  and  in  the 
fourth,  thofe  of  all  retailers.  It  is  difficult  to  conceive  that  a 
capital  fhould  be  employed  in  any  way  which  may  not  be  clafled 

under  fome  one  or  other  of  thofe  four. 

• 

Each  of  thofe  four  methods  of  employing  a  capital  is  efTentially 
necelTary  cither  to  the  exiflence  or  extenfion  of  the  other  three* 
or  to  the  general  conveniency  of  the  fociety. 

n  Unless 


43^ 


BOOK 
II. 


THE  NATUR"E  AND  CAUSES  OT 

Unless  a  capital  was  employed  in  furniihing  rude  produce  to  a 
certain  degree  of  abundance,  neither  mai  /a£lures  nor  trade  of 
any  kind  could  eidft. 

"Unless  a  capital  was  employed  in  manufafturing  that  part  of 
the  rude  produce  which  requires  a  good  deal  of  preparation  before 
it  can  be  fit  for  ufe  and  confumption,  it  cither  would  never  be 
produced,  becaufe  there  could  be  no  demand  for  it  i  or  if  it  was 
produced  fpontaneoufly,  it  would  be  of  no  value  in  exchangei  and 
could  add  nothing  to  the  wealth  of  the  fociety. 


;<■*. 


Unless  a  capital  was  employed  in  tranfporting  either  the  rude; 
or  manufa£lured  produce  from  the  places  where  it  abounds  to 
thofe  where  it  is  wanted,  no  more  of  either  could  be  produced 
than  was  necefTary  for  the  confumptipn  of  the  neighbourhood. 
The  ''ipital  of  the  merchant  exchanges  the  furplus  produce  of 
one  ace  for  that  of  another,  and  thus  encourages  the  induftry 
and  increalbs  the  enjoyments  of  both. 


Unless  a  capital  was  employed  in  brealdng  and  dividing  certsun 
portions  either  of  the  rude  or  manufa£lured  produce,  into  fuch. 
fmall  parcels  as  fuit  the  occafional  demands  of  thofe  who  want 
them,  every  man  would  be  obliged  to  purchafe  a  greater  quantity 
of  the  goods  he  wanted,  than  his  immediate  occalions  required. 
If  there  was  no  fuch  trade  as  a  butcher,  for  example,  every  man 
would  be  obliged  to  purchafe  a  whole  ox  or  a  whole  fheep  at  a 
time.  This  would  generally  be  inconvenient  to  the  rich,  and  much 
more  fo  to  the  poor.  If  a  poor  workman  was  obligr-l  tQ  purchafe  a 
month's  or  fix  months  provificxis  at  a  time,  a  great  part  of  the  flock 
which  he  employs  as  a  capital,  in  the  inftruments  of  his  trade,  or  in 
the  furniture  of  his  fhop,  and  which  yields  him  a  revenue,  he  would 
be  forced  to  place  in  that  part  of  his  flock  which  is  referved  for 

'"  *  "4  immediate 


THE    WEALTH    OF    NATIONS. 


439 


immediate    confumption,    and  which   yields   him   no   revenue. 
Nothing  can  be  more  convenient  for  Tuch  a  pei'fon  than  to  be  able 
to  purchafe  his  fubfiftence  from  day  to  day,  or  even  from  hour  to 
hour  as  he  wants  it.     He  is  thereby  enabled  to  employ  almofl 
his  whole  ftock  as  a  capital.     He  is  thus  enabled  to  furnifh  work 
to  a  greater  value,  and  the  profit  wlach  he  makes  by  it  in  tins  way 
much  more  than  compenfates  the  additional  price  which  tha  profU 
of  the  retailer  impofes  upon  the  goods.    The  prejudices  of  ibme 
{K>Utical  writers  i^^inft  fhopkeepers  and  tradefmen,  are  altogether 
without  foundation.    So  far  is  it  from  being  neceflary  either  to 
tax  them  or  to  reftrifl  their  numbers,   that  they  can  never  be 
multiplied  fo ;  as  to  hurt  the  publick,  though  they  may  fo  as  to 
hurt. one  another.    The  quantity  of  grocery  goods,  for  example, 
which  can  be  fold  in  a  particular  town,  is  limited  by  the  demand 
of  that  town  and  ndghbourhood.    The  capital,  therefore,  which 
can  be  employed  in  the  grocery  trade  cannot  exceed  what  is  fuf- 
ficient    lO    purchafe    that    quantity.     If.  this  capital  is  divided 
between  two  different  grocers,  their  competition  will  tend  ta  make 
both  of  them  fell  cheaper,  tlian  if  it  were  in  the  hands  of  one  only; 
and  if  it.  were  divided  among  twenty,  their  competition  would  be 
juft  fo  much  the  greater,  and  the  chance  of  thdr  combining  to* 
^ther,   in  order  to  raife  the  price;,  juft  fb  much  the  lefs.    Their 
competition,  might  perhaps  ruin  ibme  of  themielves  j  but  to  take 
care  of  this  is  the  bu(inef&  of  the  parties  concerned,  and  it  may 
ifdfely  be  trufted  to  their  dilcretion.     It  can  never  hurt  dther  the 
confumer,  or  the  producer;  on  the  contrary,  it  muft  tend  to  make 
the  retailers  both  fell  cheaper  and  buy  dearer,  than  if  the  whole 
trade  was  monopolized  .by  one  or  two  perlbns.     Some  of  them, 
perhaps,  may  (bmetimes  decoy  a  weak  cqftomer  to  buy  what  he 
has  no  occafion  for.    This  evil,  however,  is  of  too  little  impor- 
tance to  defenre  the  publick  attention,  nor  would  it  neceffarily  be 
prevented  by  reftri£ting  their  numbers.    It  is  not  the  multitude 

*  of. 


''IF 


440 


THE    NATURE    AND    CAUSES    OF 


B  O  O  K^  of  alp-houfcf,  to  give  the  moft  fulpicious  example,  that  occaflons 
a  general  dirpofition  to  drunkennefs  among  the  common  people ; 
but  that  difpodtion  aiifing  from  other  caufes  necefiarily  givei  em» 
ployment  to  a  multitude  of  ale-houfes. 

The  perfons  whofe  capitals  are  employed  in  any  of  thofe  four 
ways  are  themfelves  produftlve  labourers.  Their  labour,  when 
properly  directed,  fixes  and  realizes  itfelf  in  the  fubjcft  or  vendible 
commodity  upon  which  it  is  beftowcil,  and  generally  adds  to  its 
price  the  value  at  leaft  of  their  own  maintenance  andconfumption. 
The  profits  of  the  farmer,  of  the  manufacturer,  of  the  merchant, 
and  i-etailer,  are  all  drawn  from  the  price  of  the  goods  which  the 
two  firft  produce,  and  the  two  laft  buy  and  fi'll.  Equal  capitals 
however,  employed  in  each  of  thofe  four  different  ways,  will  put 
into  motion  very  different  quantities  of  productive  labour,  and  aug- 
ment too  in  very  different  proportions  the  value  of  the  annual 
produce  of  the  land  and  labour  of  the  fociety  to  which  they 
belong. 

The  capital  of  the  retailer  replaces,  together  with  its  profits, 
that  of  the  merchant  of  whom  he  purchafes  goods,  and  thereby  en- 
ables liim  to  continue  his  bufincfs.  The  retailer  himfelf  is  the  only 
produftive  labourer  whom  it  employs.  In  his  profits,  confifts  the 
whole  value  which  its  employment  adds  to  the  annual  produce  of 
the  land  and  labour  of  the  fociety. 


The  capital  of  the  wholefale  merchant  replaces,  together  with 
their  profits,  the  capitals  of  the  farmers  and  manufai^urers  of  whom 
he  purchafes  the  rude  and  manufadured  produce  which  he  deals 
in,  and  thereby  enables  them  to  continue  their  re(pe£live  trades. 
It  is  by  this  fervice  chiefly  that  he  contributes  indiredtly  to  fupport 
the  productive  labour  of  the  fociety,  and  to  increafe  the  value  of 

.     V,  ■■■  Its 


THE    WEALTH    OF    NATIONS. 

Its  annual  produce.  His  capital  employs  too  the  Tailors  and 
earners  who  tranfport  his  goods  from  one  place  to  another, 
and  it  augments  the  price  of  thofe  goods  by  the  value,  not  only 
of  his  profits,  but  of  their  wages.  This  is  all  the  produ£live 
labour  which  it  immediately  puts  into  motion,  and  all  the  value 
which  it  immediately  adds  to  the  annual  produce.  Its  operation 
in  both  thefe  refpe£ls  is  a  good  deal  fuperior  to  that  of  the  capital 
of  the  retailer. 


441 


Part  of  the  capital  of  the  njafter  manufacturer  is  employed  as  a 
fixed  capital  in  the  inftruments  of  his  trade,  and  replaces,  together 
with  its  profits,  that  of  fome  other  artificer  of  whom  he  purchafes 
diem.  Part  of  his  circula  ting  capital  is  employed  in  purchafmg 
materials,  and  replaces,  with  their  profits,,  the  capitals  of  the  farmers 
and  miners  of  whom  he  purchafes  them.  But  a  great  part  of  it  is 
always,  either  annually,,  or  in  a  much  fhorter  period,  diftributed 
among  the  different  woricmen  whom  he  employs.  It  augments 
the  value  of  thofe  materials  by  their  wages,  and  by  their  mailers 
profits  upon  the  whole  flock  of  wages,  materials,  and  inftruments 
of  trade  employed  in  the  bufinefs.  It  puts  into  motion,  there-* 
fore,  a  much  greater  quantity  of  productive  labour,  and  adds  a 
much  greater  value  to  the  annual  produce  of  the  land  and  labour 
of  the  fociety,  than  an  equal  capital  in  the  handsi  of  any  wholes 
fale  merchant. 

No  equal  capital  puts  into  motion  a  greater  quantity  of  jproduClive ; 
labour  than  that  of  the  fanner.  Not  only  his  labouring  fervants, 
but  his  labouring  cattle,  are  productive  labburer&.  In  agriculture, 
too  nature  labours  along  with  man ;  and  though  H^a  labour  cofls  no 
expence,  its  produce  has  its  value,  as  well  as  that  of  the  mofl  expen- 
five  workmen.  The  mofl  important  operations  of  agriculture  feem 
intended,  not  fo  much  to  increafe,  though  they  do  that  too,  as  to 

Vol.  I.  3  L.  direClt 


THE    NAtURfe    AND    CAlJSES    t>P 

aired  the  fct^iiity  of  liAttire  towftfds  tlie  proda^lOh  of  the  (^lahfi 
moft  profitable  to  man.  A  field  overgrown  with  briars  and  bramblei 
may  frequently  produce  as  great  a  quantity  of  vegetables  as  the 
bell  cultivated  vineyard  Or  corn  field.  t*lanting  and  tillage  fre« 
quently  rcguhte  more  thin  they  animate  the  aftive  fertility  of 
hature ;  and  after  all  their  labour,  a  great  part:  of  the  work  always 
remairis  to  be  dbne  by  her.  The  labouvcrt  and  labouring  cattle, 
therefore,  employed  in  agriculture,  not  only  occaAon,  like  the 
workmen  in  manufadtures,  the  reproduction  of  a  value  equal  to 
their  own  confuthption,  or  to  the  capital  which  employs  them, 
together  with  its  owners  profits  j  but  of  a  rtiuch  greater  value.  Over 
and  above  thie  capital  of  the  farmer  ai^  all  its  profits,  they  negu*- 
larly  occafion  the  reproduaion  of  the  i«nt  Of  the  landlord.  This 
rent  may  be  confidercd  as  the  produce  of  thofe  powen  of  nature, 
the  ufe  of  which  the  landloitl  lertds  to  the  former.  It  Is  g^reater 
or  fhialler  according  to  the  fuppoftd  eittttit  of  thofe  powers,  or, 
in  other  words,  according  to  the  fuppofed  natural  or  improved 
fertility  of  the  land.  It  is  the  work  of  nature  which  i*emaifis  after 
deducting  or  comptnfating  -every  thing  which  can  be  rognrded  a« 
the  Work  of  mart.  It  is  leldom  lefs  than  a  fourth,  and  ffequenfty 
tnore  than  a  third  of  the  whole  produce.  No  equal  quantity  of 
produdlive  labour  employed  in  manufactures  can  ever  occafion  fo 
great  a  reproduction.  In  them  nature  does  nothing ;  man  does 
all;  and  the  reproduction  muft  always  be  in  proportion  to  the 
flrength  of  the  agents  that  occafion  it.  The  cajjital  employed  in 
agricultuiie,  therefore,  not  Ohly  puts  into  motion  a  greater  quantity 
of  productive  labour  than  any  equal  capital  employed  ia  manu* 
*  aiftures,  but  in  proportion  too  to  the  quantity  of  productive  labour 
which  it  employs,  it  adds  a  much  greater  value  to  the  annual  pro- 
duce of  the  land  and  labour  of  the  country,  to  the  redl  wealth 
and  revenue  of  its  inhabitants.  Of  all  tke  w«ys  in  Which  a 
7  capital 


THE    WEAtTH    OF    NATI0N5I* 


443 


fapiUl  ca»  U  wnplpyedi  it  is  by  far  the  mo(^  ^dvam^geous  to  the  c  h^a  p. 
fcp«ty, 

Thv  Cipit%ls  ontployc^  in  th9  agriculture  ind  in  the  retail  trade 
«f  finy  fo«Mity«  muA  tlwdys  reftda  within  that  ibcicty.  Their  em- 
j^loyment  i*  confined  almoft  to  a  precife  fpot,  to  the  farm,  and 
tP  Ihe  fliop  pf  th«  reftaikr.  They  muft  generally  too,  though 
Iber*  afQ  Smm  nx^^nftms  to  thi9»  belong  to  refidenit  nvembers  9^ 
^A)icicfcy»  t 

I.  ■  ■  ■       .         .. 

The  capital  of  a  wholefale  merchant,  on  the  contrary,  (eems 
to  have  no  fixed  or  necelTary  refidence  any-where,  but  may  wander 
flbout  from  place  to  fiicp,  according  as  it  can  mtlicr  buy  dieap  or 
IbUdcar.. 


■  >e   !  i'.9   ,*! 


«  The  ci^ital  of  the  manufa6^urer  muff  no  doubt  refide  where 
the  manufiifture  is  carried  on }  but  where  this  Ihall  be,  is  not  always 
■eceflartly  determined.  It  may  frequently  be  at  a  great  diftance 
both  from  the  place  where  the  materials  grow,  and  from  that 
where  the  compleat  manufacture  is  confumed.  Lyons  is  very  dif- 
*ant  both  from  the  places  which  afford  die  materials  of  its  manu- 
4k&ures,  and  from  thofe  which  confume  them.  The  people  of 
fafhion  in  Sicily  aie  cloathed  in  filks  made  in  other  countries,  from, 
the  materials  which  their  own  produces.  Part  of  the  wool  of  Spain 
is  manufafhired  in  Great  Britain,  and  fome  part  of  that  cloth  ia^ 

afterwards  fent  back  to  Spain. 

-ft 

Whether  the  merchant  whofe  capital  exports  the  furplus  pro^- 
4luce  of  any  fociety  be  a  native  or  a  foreigner,  is  of  very  little  im- 
povtance.  If  he  is  a  foreigr\er,  the  number  of  theif  produflive 
labourers  >is  neceifapily  lefs  than  if  he  had  been  a  native  by  one 
•map  only;  and  lite  yalue  of  their  annual .  produce,  by  the  pro- 
^  V  3  L  2  fits^ 


it 


|l!i 


ii't 
'ill 


444 

BOOK 
II. 


THE    NATURE    AND    CAUSES    OF 

fits  of  that  one  man.  The  (ailors  or  carriers  whom  he  employs 
may  ftill  belong  indifFercntly  either  to  his  country,  or  to  their 
coimtry,  or  to  fome  third  country,  in  the  fame  manner  as  if  he  had 
been  a  native.  The  capital  of  a  foreigner  gives  a  value  to  their 
-furplus  produce  equally  virith  that  of  a  native,  by  exchanging  it  for 
fomething  for  which  there  is  a  demand  at  home.  It  as  effeftually 
j-eplaces  the  capital  of  the  perfon  who  produces  that  furplus,  and  as 
i  ef&dually  enables  him  to  continue  his  bufinefs  j  the  fervice  by  which 
the  capital  of  a  wholefale  merchant  chiefly  contributes  to  fupport 
the  productive  labour,  and  to  augment  the  value  of  the  annual 
produce  of  the  fociety  to  which  he  belongs. 

fjL,  It  is  of  more  confequence  that  the  capital  of  the  manufai'^..ur^ 
fhould  refide  within  the  country.  It  neceflarily  puts  into  motion 
a  greater  quantity  of  productive  labour,  and  adds  a  greater  value  to 

.  the  annual  produce  of  the  land  and  labour  of  the  fociety.  It  may, 
however,  be  very  ufeful  to  the  country,  though  it  fhould  not  relids 
within  it.  The  capitals  of  the  Britifh  manufacturers  who  work 
up  the  flax  and  hemp  annually  imported  from  the  coafts  of  the 
Baltick,  are  furely  very  ufeful  to  the  countries  which  produce  them. 
Thofe  materials  are  a  part  of  the  furplus  produce  of  thofe  countries 
which,  unlefs  it  was  annually  exchanged  for  fomething  which  i$ 
in  demand  there,  would  be  of  no  value,  and  would  foon  ceafe  to 
be  produced.  '  The  merchants  who  export  it,  replace  the  capitals  of 
the  people  who  produce  it,  and  thereby  encourage  them  to  continue 
the  production ;  and  the  Britifh  manufacturers  replace  the  capitals 
of  thofe  merchants. 


.•(i-<" 


A  PARTICULAR  couutry,  in  the  fame  manner  as  a  particular 
perfon,  may  frequently  not  have  capital  fufKcient  both  to  improve 
and  cultivate  all  its  lands,  to  manufacture  and  prepare  their  whole 
rude  produce  for  immediate  ufe  and  confumption,  and  to  tranfport 

mi  4.  t^c 


THE    WEALTH    OF    NATIONS. 

the  furplus  part  either  of  the  rude  or  manufa6lured  produce  to 
thofe  diftant  markets  where  it  can  be  exchanged  for  fomething  fo<^ 
'which  there  is  a  demand  at  home.  The  inhabitants  of  many 
different  parts  of  Great  Britain  have  not  capital  fufficient  to  im- 
prove and  cultivate  all  their  lands.  The  wool  of  the  fouthern 
counties  of  Scotland  is,  a  great  part  of  it,  after  a  long  land  car- 
riage through  very  bad  roads,  manufa£lured  in  Yorkfhire,  for  want 
of  a  capital  to  manufa6lure  it  at  home.  There  are  many  little 
manufacturing  towns  in  Great  Britain,  of  which  the  inhabitants 
have  not  capital  fufficient  to  tranfport  the  produce  of  their  own 
induflry  to  thofe  diflant  markets  where  there  is  demand  and  con- 
fumption  for  it.  If  there  are  any  merchants  among  them,  they 
are  properly  only  the  agents  of  wealthier  merchants  who  refide 
in  fome  of  the  greater  commercial  cities.  f . 


445 


When  the  capital  of  any  counti7  is  not  fufficient  for  all  thofe 
thre£  purpofes,  in  proportion  as  a  greater  (hare  of  it  is  employed  in 
agriculture,  the  greater  will  be  the  quantity  of  produftive  labour  which 
it  puts  into  motion  within  the  country  i  as  will  Ukewife  be  the  value 
which  its  employment  adds  to  the  annual  produce  of  the  land  and 
labour  of  the  fociety.  After  agriculture,  the  capital  employed  in 
manufactures  put  into  motion  the  greatelt  quantity  of  productive 
■labour,  and  addG  the  greateft  value  to  the  annual  produce.  That 
which  is  employed  in  the  trade  of  exportation,  has  the  lead  efTed 
of  any  of  the  three. 


iu 


{/■]-// 


"  The  country,  indeed,  which  has  not  capital  fufficient  for  all 
thofe  three  purpofes,  has  not  arrived  at  that  degree  of  opulence 
for  which  it  fcems  naturally  deftined.  To  attempt,  however,  pre- 
maturely and  with  an  infufficient  capital,  to  do  all  the  three,  is 
certainly  not  the  fhorteft  way  for  a  fociety,  no  more  than  it  would 
be  for  an  individual,  to  acquire  a  fufficient  one.    The  capital  of 


i| 


.  $ 


aaB 

•IT** 


THE    NATURE    AND    CAUSES    OF 


B  o  o  ic  all  the  indi\idaals  of  a  nation,  has  its  limits  in  the  fiwe  manner  as 
that  of  a  iingle  individual,  and  is  capable  of  executing  only  cer^- 
tain  purpo&s.  The  capital  of  all  the  individuals  of  a  station  is 
iiKreafed  in  the  fame  manner  as  that  of  a  iingle  ii94ividuaU  by  thdir 
continually  accumulating  and  adding  to  it  whatever  they  fave  out 
of  their  r-eveaue.  It  is  likely  to  increafe  the  fail:e(V,  therefore* 
wb«n  it  is  employed  in  the  way  that  affords  the  greateft  revenue 
to  all  the  inhabitants  of  the  country,  as  they  will  thvis  he  enabled 
to  make  Che  greateft  favings.  But  tlie  revenue  of  all  the  inhabi- 
tants of  the  country  is  neceflkrily  in  proportion  to  the  value  of  the 
annual  produce  of  th^r  land  and  labour.  :\irx\\\ 

It  has  Ixsen  the  principal  caule  of  die  rapid  progreis  of  our 
American  colonies  towards  wealth  and  greatneis,  that  almoA  their 
whole  capitals  have  hitherto  been  employed  in  agriculture.  They 
have  no  manu£a6tures,  thofe  houfhold  and  coarfer  manufadures 
cxcqited  w^h  nocdfarily  accompany  the  progrefs  o^  agiriculture, 
and  which  ai>e  the  work  of  the  women  and  children  in  ^every  pri- 
vate family.  The  greater  part  both  of  the  exportation  andcoafting 
trade  of  America,  is  carried  on  by  the  capitals  oi  merchants  who 
refide  in  Great  Britain.  Even  the  ftojes  and  warehovUes  from 
which  goods  are  retailed  in  fome  pixwinces,  particularly  in  Vir- 
ginia and  Maryland,  belong  many  of  them  to  merchants  who  rcfide 
in  the  mother  country,  and  afford  one  of  the  few  inftances  of  the 
retail  trade  of  a  /ociety  being  carried  on  by  the  capitals  of  thofe 
who  are  not  refident  members  of  it.  Were  the  Americans,  either 
'by  combination  or  by  any  other  fort  of  violence,  to  flop  the  im- 
portation of  European  manufa<^tures,  and,  by  thus  giving  a  mo» 
nopoly  to  fiich  of  their  own  countrymen  as  could  mauufat^ure  the 
like  goods,  divert  any  confiderable  part  of  their  cajutal  into  this 
employment,  they  would  retard  inflead  of  accelerating  the  fuiither 
increafe  in  the  value  of  their  annual  produce,  and  would  (jbflrudt 
.  inflead 


It 


THE    WEALTH    OF    NATIONS. 


447 


in(l«ftd  of  pitowioting  th«  progiiefs  of  their  country  towards  real  C  ha  p. 
wealth  and  greatnefs.    This  would  be  ftill  more  the  cafe^  were  they 
to  attempt,  in  the  fame  manner,  to  monopolize  to  themfelves  th«r 
whole  ejiportafion  trade. 

Thb  courie  of  human  {uofperity,  indeed,  feems  icarce  ever  to 
have  been  of  fo  long  continuance  as  to  enable  any  great  country 
to  acquire  capital  fufficient  for  all  thofe  three  purpofes;  unlefs, 
perhaps,  we  give  credit  to  the  wonderful  accounts  of  the  wealth 
and  cultivation  of  China,  of  thofe  of  antient  Egypt,  and  of  the 
antient  ftate  of  Indoflan.  Even  thofe  three  countries,  the  w«althieft, 
according  to  all  accounts>  that  ever  were  in  the  world,  are  chiefly 
renowned  for  their  fuperiority  in  agriculture  and  maaufadures. 
They  do  not  appear  to  have  been  eminent  for  foreign  trade.  The 
antient  Egyptians  had  a  fuperftitious  antipathy  to  the  fea ;  a  fuper> 
ilition  nearly  of  the  fame  kind  preva'tls  among  the  Indians ;  and  the 
Chinefe  have  never  excelled  in  foreign  commerce.  The  greater  part 
of  the  furplus  produce  of  all  thofe  three  countiies  feems  to  have 
been  always  exported  by  foreigners,  who  gave  in  exchange  for  it 
fomethir^  elfe  for  wli^ch  they  fouud  a  demand  there,  frequently 
gold  andfilver.  i  '    .• 


i4»tr.r  -   \i4*  it--. 


(  **l-%*i  -tiv. 


It  is  thus  that  the  fame  capital  will  vy  ny  country  put  into 
motion  a  greater  or  fmaller  quantity  of  produ6live  labour,  and 
add  a  greater  or  fmaller  value  to  the  annual  produce  of  its  land  and 
labour,  according  to  the  different  proportions  in  which  it  is  em- 
ployed in  agriculture,  manufaiSturcs,  and  wholefale  trade.  The 
difference  too  is  very  great,  according  to  the  difterent  forts  of  whole- 
fale trade  in  which  any  part  of  it  is  employed. 


Alt.  wholefule  trade,  all  buying  in  order  ^o  fell  again  by  wholo- 
fale,  may  be  reduced  to  three  different  forts.  The  hor^e  trade,  the 
foreign  trade  pf  confuraption,  and  the  carrying  trade.     The  liome 

trade 


448 
BOOK 


THE    NATURE    A,]^p  ,  CAUSES    JOi^ 

trade  is  employed  in  purchafing  in  one  part  pf  the  fame  country, 
and  felling  in  another,  the  produce  of  the  induftry  of  that  country. 
Jt  comprehends  both  the  inland  and  the  coafting  trade.  The  foreign 
trade  of  confumption  is  employed  in  purchafing  foreign  goods  for 
home  confumption.  The  carrying  trade  is  employed  in  tranf- 
afting  the  commerce  of  foreign  countries,  or  in  carrying  the  fur- 
plus  produce  of  one  to  another. 

The  capital  which  is  employed  in  purchafing  in  one  part  of 
the  country  in  order  to  fell  in  another  the  produce  of  the  induftry 
of  taat  country,  generally  replaces  by  every  fuch  operation  two 
dif  "mft  capitals  that  had  both  been  employed  in  the  agriculture  or 
manufaftures  of  that  country,  and  thereby  enables  them  to  con- 
tinue that  employment.  When  it  fends  out  from  the  refidence  of 
the  merchant  a  certain  value  of  commodities,  it  generally  brings 
bv^ck  in  return  at  leaft  an  equal  value  of  other  commodities.  When 
both  are  the  produce  of  domeftick  induftry,  it  neceflarily  replaces 
by  every  fuch  operation  two  diftin^l  capitals,  which  had  both  beert 
employed  in  fupporting  productive  labour,  and  thereby  enables 
them  to  continue  that  fupport.  The  capital  which  fends  Scotch 
inanufa£hires  to  London,  and  brings  back  Englilh  corn  and 
manufactures  to  Edinburgh,  neceffarily  replaces,  by  every  fuch 
operation,  two  Britifh  capitals  which  had  both  been  employed  in. 
the  agriculture  or  manufactures  of  Great  Britain. .  ,| 

The  capital*  employed  in  purchafing  foreign  goods  f<ir  home- 
confumption,  when  this  purchafe  is  made  with  the  produce  of 
domeftick  induftry,  replaces  too,  by  every  fuch  operation,  two 
diftinCt  capitals :  but  one  of  them  only  is  employed  in  fupporting 
domeftick  induftrj'.  The  capital  which  fends  Britifli  goods  to. 
Portugal,  and  brings  back  Portuguefe  goods  to  Great  Britain,  r^. . 
places  by  every  fuch  operation  only  one  Britifti  capital.    The  other 


.•fi6« 


H  p 


THE    WEALTH    OF    NATIONS* 


44$ 


U  a  Portoguefc  one.     Though  the  returns,  therefore,  of  the   CHAP. 
fonkffi  trade  c^  conlamption  ihould  be  as  quick  as  thofe  of  the 
home-trade,  the  capital  employed  in  it  vfJAl  give  but  one-half  the 
encouragement  to  the  induftry  or  productive  labour  of  the  country. 

BwT  Ae  returns  of  the  foreign  trade  of  confumption  are  very 
ieldom  fo  quick  as  thofe  of  the  home-trade.  The  returns  of  the 
home-t>  ade  generally  come  in  before  the  end  of  the  year,  and 
ibmetimes  three  or  four  times  in  the  year.  The  returns  of  the 
foreign  trade  of  confumption  feldom  co.ie  in  before  the  end  of  the 
ye^',  and  ibmetimes  not  till  after  tvtro  or  three  years.  A  capital, 
therefore,  employed  in  the  home-trade  will  fometimes  make  twelve 
operations,  or  be  fent  out  and  returned  twelve  times,  before  a  capi- 
tal employed  in  the  foreign  trade  of  confumption  has  made  one. 
If  the  capitals  are  equal,  therefore,  the  one  will  give  four  and 
twenty  times  more  encouragement  and  fupport  to  the  indiudry 
of  the  country  than  the  other.  ..  .  v- .  ti 

The  foreign  goods  for  home-confumption  may  fometimes  be 
purchafed,  not  with  the  produce  of  domeflick  induftry,  but  with 
fome  other  foreign  goods.  Thefe  laft,  however,  muft  have  been 
purchafed  either  immediately  with  the  produce  of  domeftick 
induftry,  or  with  fomething  elfe  that  had  been  purchafed  with  it ; 
for  the  cafe  of  war  and  conqueft  excepted,  foreign  j^oods  can  never 
be  acquired,  but  in  exchange  for  fomething  that  had  been  produced 
at  home,  either  immediately,  or  after  two  or  more  different  ex- 
changes. The  effedls,  therefore,  of  a  capital  employed  in  fuch 
a  round  about  foreign  trade  of  confumption,  are,  in  every  reipeft, 
the  fame  as  thofe  of  one  employed  in  the  moft  direft  trade  of  the 
fame  kind,  except  that  the  final  returns  are  likely  to  be  ftill  more 
diftant,  as  they  muft  depend  upon  the  returns  of  two  or  three 
diftinft  foreign  trades.  If  the  flax  and  hemp  of  Riga  are  pur- 
chafed with  the  tobacco  of  Virginia,  which  had  been  purchafed 

Vol.  I.  3  M  •  with 


MHflt0i, 


^% 


BOOK 
II. 


THE  ,  ^fv^TJLJR^  ,  AWD.I  CAUSES  r0F 

>ylth  Brltiib  inanufa^ur^s^r  the  metth^ntmnuft  wait  forlhevett^n^ 
of  two  dUtin£l  foreign  trades  li>elbre  he  can  employ  the  fame  ca^i 
pital  u>  re-rpvurchafinga  like  quantity  of   firitifli  mant]fa«?uresU 
If  the  tobacco  of  Virginia  had  been  purchafed;  not  with  Britilh 
manufa£tures,  but  with  the  fugar  and  rum  of  Jamaica  wluch  had 
been  purchafed  with  thofe  manufa£tures>  he  muft  wait  for  the 
returns  of  three.    If  thofe  two  or  three  diftin^t  foreign  trades 
fhould  happen  to  be  carried  on  by  two  or  three  diftinA  mertihantsy 
of  whom  the  fecond  buys  the  goods  imported  by  the  firft>  and  ihtf 
third  buys  thofe  imported  by  the  fecond,  in  order  to  export' dieAt 
again,   each  merchant  indeed  will  in  this  cafe  receive  the  retumst' 
of  h;$  own  capital  more  quickly;  but  the  final  returns  cftbt  whol^ 
capital  employed  in  the  trade  will  be  juft  as  flow  as  ev^r.'  "  Whs- 
tiier  the  whole  capital  employed  in  fuch  a  round    about  trad^ 
belrnr^  to  one  merchant  or  to  three,  can  make  no  difference  Witlt^ 
regard  to  the  country,  though  it  may  with  regard  to  the  particti-i^ 
lar  merchants.    Three  times  a  greater  capital  muft  in  both  caies- 
be  employed,  in  order  to  exchange  a  certain  value  of  Bnti(h<  ma- 
nufactures for  a  certain  qutahtity  of  flax  and  hemp,   than  woUld 
have  been  necefTary,  had  the  manufactures  and  the  ftit  3tnd  hetti^ 
been  direftly  exchanged  for  one  another.     The  whole  calpital  eihi' 
ployed,  therefore,  in  fuch  a  round  about  foreign  trade  Gf  corfi^ 
fumption,  will  generally  give  lefs  encouragement  andfupjpbrt  td'thfr 
produftiVe  labour  of  the  country,  than  an  eqnal  capital  Employed! 
in  a  more  direft  trade  of  the  fame  kind* 


liX 


"  WiiATEyxR  be  the  foreign  commodity  with  which  the  foreign  ; 
goods  fov  home-confumpti  '1  are  purchafed,  it  can  occa(ion,,iiiq;( 
eflential  difference  either  in  the  nature  of  t'  ;;  trade,  or  in  tlie  en-»:' 
couragement  and  fupport  which  it  can  give  to  the  produ(5tive  labour 
of  t^e  country  from  which  it  is  carried  on.  If  they  are  pur- ' 
chafed  with  the  gold  of  Brazil,   for  example,  or  v/ith  the  lilver 


(rfrpeoii,' ithiB  gold  arid  filvcrjilitectht  tob&ccd  of  Vhgmia,'  rti^ft 
have 'been  pUrchdfed  with  fomething  that  either  was  the  product 
of  thi'  rinduftry  of  the  country,  or  that  had  been  purchafM 
with'i^fometfaing  elfe  that  was  fo.  So  far,  therefore,  as  the 
I}it)du6)[ive  laboor  of  the  cowntry  is  concerned,  the  foreign 
trade  of  confutttption  which  is  ie^rried  on  by  means  of  gold  and 
fUver,  has  aM  the  advantages  and  all  the  inconveniencies  of 
anyother  equally  round  about  foreign  trade  of  confumption, 
and  will  rei>lace  juft  as  faft  or  juft  as  flow  the  capital  which  is 
imm^iately  employed  in  fupporting  that  produftive  labour.  It 
feems  even  to  have  one  advantage  over  any  other  equally  round 
about  foreign  trade.  The  tranfportation  of  thofe  metals  from 
ono*  place  to  another,  on*  account  of  their  fmall  bulk  and  great 
vMu^i  19  lefs  expendve  than  that  of  almoft  any  other  foreign  goods 
o|;equal  value.  Their  freight  is  much  lefs,  and  their  infurance 
not  ^'eater.  An  equal  quantity  of  foreign  goods,  therefore,  may 
freiquently  be  purchafed  with  a  fnialler  quantity  of  the  produce 
of  (donleftick  induftry,  by  the  intervention  of  gold  and  filver,  than 
by?  that  of  any  other  foreign  goods.  The  demand  of  the  country 
may  frequently,  in  this  manner,  be  fuppHed  more  compieatly  and 
at  a  fmaller  expence  than  in  any  other.  Whether,  by  the  con- 
tinual exportation  of  thofe  metals,  a  trade  of  this  kind  is  likely 
to  impoverifli  the  country  from  which  it  is  carried  on,  in  any 
other  way,  I  fliall  have  occafion  to  examine  at  great  length  here-» 
after. 


4st 


That  part  of  the  capital  of  any  country  which  is  employed  in 
the  caiTying  trade,  is  altogether  withdrawn  from  fupporting  the 
productive  labour  of  that  particular  country,  to  fupport  that  of 
fome  foreign  countries.  Though  it  may  repliwc  ^/y  every  operation 
two  diftrn(^  capitals',  yet  neither  of  them  belong  tu  ihat  particular 
country.  The  capital  of  t!ie  Dutch  merchant,  which  carries  the 
com  of  Poland  to  Portugal,  and  brings  back  the  fruits  and  wines 

3  M  2  of 


45^ 


Tm  oNiTW^i  r)Al!r©    <JAUJ»«9^^  lOf 


»c^^  neither  of  which  h^4  h^n.  cmgloyei  in  fuppprting.  the  produaiv* 
labpu^-  of  HoUandf,  bu|,o(ii»e  of  them, i»  fuppprting  that  of  PoUncU; 
and  the  other  that  of  Portugal,    The  profits  only  return  regularly* 
to  Holland,  an4,  conft^tute  the  whole  addition  which  this  tiedtt 
necefl'arily  makes  to  the  annual  produce  of  the  land  and  labour  of 
that  country.     When,  indeed,  thecarrying  trade  pfapy  particular 
country  is  carried  on  with  the  Ihips  and  l^ilors  of  that  cpuntry,  tha^ 
part  of  the  capital  employed  in  it  which  paj  s  the  freigl^,  is  di-r 
ftributed  apiong,  and  puts  into  motion  a  certain  number  of  prorr 
du£tiye  labourers  of  th^t  country.    AhnoA  all  nations  that  have^ 
had  any  confiderable  fliare  of  the  carrying  t;;ad?^  have,  i|i  faflv. 
carried  it  on  in  this  manner.    The  trade  icfeilf  has  prpbably  de- 
rived its  name  from  it,  the  people  of  fuch  countries  bejoig  ^hl?^ 
carriers  to  other  countries.    It  does  not,  however,  feem  e<Ien|iaJL. 
to  the  nature  of  the  trade  that  it  ihpuld  be  ib.    4  Diftch  merchantv 
may,  for  example,  eipplpy  his  capital  in  trania^Ung,  the  CQnui)er<::f»; 
of  Poland  and  Portugal,  by  cari7ing  part  of  the  furplus  prodMcilr 
of  the  one  to  the  other»  not  in  Dutch^  bijt  in  Briti^  botttpm^., 
It  may  be  prefumed*  that  he  a£hia|ly  does  fo  upon  fome  pairticuJacA 
occsfions.     It  is  upon  this  account,  however,  that  the  canyiogi 
trade  has  been  fuppofed  peculiarly  advantageous  to  fuch  a  country-, 
as  Great  Britain,  of  which  the  defence  and  iecurity  depend  upon;; 
the  number  of  its  failprs  and  (hipping.    But  the  fame  oy^tal.may/ 
employ  as  many  failors  and  (hipping,   either  in  the  foreign  trade; 
of  confumption,  or  even  in  the  home-trade,  when-carried. on  by. 
codling  veifelS',  as  it  could  in  the  carrying  trade.    The  number,- 
of  failor»  and  (hipping  v\rhich  any  particular  capital  can  employ^^^ 
does  not  depend  upon  the  nature  c^  the  trade,  but  partly  upoh\ 
the  bulk  of  the  goods  in  proportion  to  their  value>  and  partly/ 
upon  the  diftance  of  the  ports  between  which  they  are  to  be  car.> 
ri^;  chiefly  upon  the  former  of  tho(e  two  circumft^ices.    Tlie 
coal-trade  frojXLNewcaftle'ioXfOndon,  for  example,  empk^s  mor^'^ 

*  ^  n  (hipping 


*?*■' 


illlpping  thtti) «H  the^oaivyin;^  trdcb'  of  finglaiWl/  thougH  «Hi  p<^  ^ti,A. ^} 
are  at  no  great  diftanee.    To  force;  th«(<efore,  by  ^xtraor^ii^  c     ' 
«ncouragemsnt9»  a  larga*  fiMtftctf  tAte  capkal  of  any  couhtry  into' 
the  carrying  trade,  than  what  would  naturally  go  to  it,  will  not 
always  neceflarily  increafe  the  fhipping  of  that  country.  >  :»''J*>^»  "^ 
io  mo<li-A  btii'  btial  siit  lo  y:-;DOtq  xi^^ann  ^n^  .q>  umf^nt  ?(li!iwii3->3f» 

^'The  capital,  therefore^  eniplbyed'in  the  home-tradeof  any  country 
will  generally  give  encouragement  and  Aipport  to  a  greater  quantity 
of  productive  labour  in  that  country,  and  increafe  the  value  of  itr 
annual  produce  more  than  an  equal  capital  employed  in  the  foreign 
tradie  of  confumption :  and  the  capital  employed  in  this  latter  trade 
has  in  both  theft  refpedts  a  ftill  greater  advantage  over  an  equal 
capital  employed  in  the  carrying  trade.  The  riches,  and,  fofaras 
power  depends  upon  riches,  the  power  of  every  country,  muft  al- 
ways be  in  proportion  to  the  value  of  its  annual  produce,  the  fund 
from  wWch  all  taxes  muft  ultimately  be  paid.  But  the  great  objeft 
of  the  political  ceconomy  of  every  country,  is  to  encreafe  the 
riches  and  power  of  that  country.  It  ought,  therefore,  to  give  no 
preference  nor  fuperior  encouragement  to  the  foreign  trade  of 
cbttfiimption  above  the  home- trade,  nor  to  the  carrying  trade 
s^ve  dther  of  the  other  two.  It  ought  ndther  to  force  nor  to 
allQlre  into  dther  of  thole  two  channels,  a  greater  (hare  of  the  ca* 
pital  of  the  country  than  what  would  naturally  flow  into  them  of. 

Each  of  thofe  different  branches  of  trade,  however,  is ;  not 
oiiTy  advantageous,  but  neceflary  and    unavoidable,,  when  the 
oourft  of  things  without  any  conftraint  or  violence  naturally  in«>^ 
tr^xluces. it. . '  ^  ;...., oii{ ^  m  --W)^  Sf't  lo  ,}iiu.il  .axis 

When  th;i  produce  of  any  particular  branch  of  induftry  exceedSN 
what  the.  dtmand  of  the  country  reqmres,  the  furplus  muft  be 


4^ 
BOOK 


X^^OW^X^^^    AND    CAUSES    OT 


•\ 


fcnt  abrqad,  ,9nd  CKcl^nged  for  fomething  lot  vrhidt  there  ifc^ii 
clenfund  at ,  hotpe.     Without  fuclj  exportation,  a  part  of  the  pro«t 
duifbive  labour  of  the  countiy  muft  ccafc,  and  the  value  of  its  ?,v  n«iaL. 
produce  diminifli.     The  land  and  labour  of  Great  Britain  ■  io«!uce 
generally  more  corn,  woollens,  and  hard  ware,  than  the  demand 
of  the  home-market  requires.     The  furplus  part  of  them,  there-, 
fore,  muft  be  fent  abioad,  and  exchai^ged  for  fomethi^g for  which r 
there  is  a  demand  at  home.     It  is.pnly  by  means  of  fuch  ex*,t 
portation,    that   this    furplus   can    acquire   a  value  fufficient  to,^ 
compenfate  the  labour  and  expence  of  prod^cing  it.    The  neigh- ,j 
bourhood  of  the  fea-coal\,  and  the  banks  of  all  navigable  rivers,, 
are  advantageous  fituatlons  for  induflry,  only  becaufe  they  facilitate  ^ 
the  exportation  and  exchange  of  luch  furplus  produce  for  fomc-  • 
thing  elfe  which  is  more  in  demand  there.        ^      > ..  ^   .  ♦44 

When  the  foreign  goods  which  are  thus  purchafcd  with  the  (^i'-!b 
plus  produce  of  domeftick  induftry  exceed  the  demand  of  thehome-^y 
market,  the  furplus  part   of  them  muft  be  fcnt  abroad  again,,,^ 
and  exchanged  for  foruclhlng  more  in  demand  at  home.     Abou,t,ji 
ninety-fix  tboufand  hrgHjeads  of  tobacco  are  annually  purchaftd^^ 
in  Virginia  and  M  ayJarid,  with  a  pait  of  the  furplus  produc<lrt-t 
of  Britifh  induftry.     But  the  demand  of  Great  Britain  does  not, ^ 
require,  perhaps,  more  than  fourteen  thoufand.     If  the  remainingg 
eighty-two  thoufand,  therefore,  could  not  be  fent  abroad  and  ex-, „ 
changed  for  fomething  more  in  demand  at  home,  the  importation  ^. 
of  them  muft  ceafc  immediately,  and  with  it  the  produdtive  labour  .,j 
of  all  thofe  inhabitants  of  Great  Britain,  who  are  at  prelent  eni- j|^ 
ployed  in  preparing  the  goods  with  which  thefe  ciglity-rtwo  thou^^^i 
fand  hoglheads  are  annually  purchafcd.     Thofe  goods,  which  are^,, 
part  of  the  produce  of  the  land  and  labour  of  Great  Britain,  having  .f, 
no  market  at  home,  and  being  deprived  of  that  which  they  had  ^ 
abroad,  muft  ceafe  to  be  produced.    The  moft  round  about  foreig^^g, 
7  trade 


THE    WEALTH' OJ'N  ATI  OPrd. 


4T5^ 


trade  of  confumption,  thfeitfow]  ln?tyv  Uji&n  ibme  occafimM,  be  C  H  /v  P. 
as  nocdTary  for  iupporting  ilte  piodu^ive  labour  of  the  country, 
atid  the  value  of  its  annual  produce,  as  the  moft  direfl.  .:  i .';:.' ^^-r 
v,.'-;,    .,.    ,,  •-.  .  ...  ,   Ao.^nr^i^ 

WhiTM  the'eapital  ftock  dT a^jf  country Tsfrt'creared  to  fuch^a 
degree,  that  it  cannot  be  all  employed  in  fupplying  the  confump-.; 
tion,  and  fupporting  the  productive  labour  of  that  particular  coun-, 
try,  the  furplus  part  of  it  naturally  difrorges  itfelf  into  the  carrying' 
ti-ade,    and  is  employed  in  perfon  ♦^he  fame  offices  toother^ 

countries.    The  carrying  trade  'n.  1  eflftft  and  fymptom' ^ 

of  ";reat  national  wealth:  but  it  d'  into  be  the  natural 

caufe  of  it.     Thofe  ftatefmen  who  iiave  been  difpofed  to  favour 
it  with   particular  encouragements,   fcem   to  have  miftaken  the 
effedl  and  fymptom  for  the  caufe.     Holland,    in  proportion  ta 
the  extent  of  the  land  and  the  number  of  its  inhabitants,  by  far 
the  richeft  country  in  Europe,  has,  accordingly,  the  greateft  fhare 
of  the  carrying   track  o*^  Europe.     England,  pt;rhaps  the  fecond 
richeft  country  of  Europe,  is  likewife  fuppofed  to  have  a  con- 
fidei'able  Ihare  of  it;  though  what  commonly  pafles  for  the  carrying, 
trade  of  England,  will  frequently,    perhaps,  be  found  to  be  nO'  ' 
more  than  a  round  about  foreign  trade  of  confumption.     Such-; 
are,  in  a  great  meafure,  the  trades  which  cai  ij  the  goods  of  the- 
Eaft  and  Weft  Indies,  and  of  America,    to  different  European  '. 
markets.     The  ;  goods  are  generally  purchafed  either  immediately  . 
with  the  produce  of  Biitifli  induftry,  or  with  fomething  elfe  which  • 
had  been  purchafed  with  that  produce,  and  the  final  returns  of  » 
thofe  ti'ades  are  generally  ufed  or  confumcd  in  Great  Britain.     The 
trade  which  is  carried  on  in  Britifli  bottoms  between  the  different  'j 
ports  of  the  Mediterranean,  and  fome  trade  of  the  fame  kind  car- ' ' 
ried  on  by  Biitifli  merchants  between  the  different  ports  of  India, 
make,  perhaps,    the  principal  branches  of  what  is  properly  the 
carrying  trade  of  Great  Britain,.        ml;-  %  '  .;  xh  j^l    w.     ;  t -s  «; 

^''^:-     .-  "■       The. 


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23  WIST  MAIN  STRUT 

WIBSTR.N.Y.  14580 

(716)872-4503 


41^ 


THE  NATURE  AND  CAUSES  OF 


8 OO K  The  extent  of  the  home-tnde  and  of  the  capital  which  cfii  be 
employed  in  it,  ia  neceffiuily  limhed  by  the  value  of  the  fbiplUi 
produce  of  all  thois  dlftant  placet  within  the  ctmnlry  which  hkw 
occafion  to  exchange  their  refpe£live  produ6tions  with  one  another. 
That  of  the  foreign  trade  of  confuraption,  by  the  value  of  the  fiir- 
plus  produce  of  the  whole  country  and  of  what  can  be  purchafed 
with  it.  That  of  the  carrying  trade,  by  the  value  of  the  Airpluft 
produce  of  all  the  different  countries  in  the  world.  Itt  poflible 
extent,  therefore,  is  in  a  manner  infinite  in  compacifdn  of  that 
of  the  other  two,  and  is  capable  of  abforUng  the  greateft 
pitals. 


The  confideration  of  his  own  private  profit,  is  tSie  ibie  mocivt 
which  determines  the  owner  of  any  ca]ntal  to  employ  it  ddier  in 
agriculture,  in  manu^B^lures,  or  in  Tome  particular  branch  of  dart 
wholefale  or  retail  trade.    The  different  quantities  of  prodiiAivd 
labour  which  it  may  put  into  motion,  and  the  difieicnt  values  which 
it  may  add  to  the  annual  produce- of  the  land  and  laibottr  of  die 
fociety,  according  as  it  is  en^>loyed  in  one  or  other  of  thofe  <Uf- 
ferent  ways,  never  enter  into  his  thoughts.    In  countries,  there- 
fore, where  agriculture  is  the  moil:  profitable  of  all  employments^, 
and  farming  and  improving  the  mofl  6iredi  roads  to  a  ^kndid 
fortune,  the  capitals  of  individuals  will  naturally  be  employed  in 
the  manner  moft  advantageous  to  the  whole  fociety.    The  profits 
of  agriculture,  however,  (eem  to  have  ho  fuperiority  over  thofe  of 
other  employments  in  any  part  of  Europe.     Projectors,  indeed,  i 
in  every  corner  of  it,  have  within  thefefew  years  amufed  the  pub-  : 
lick  with  moil  magnificent  accounts  of  the  profits  to  be  made  hf  \ 
the  culrivation  and  improvement  of  land.    Without  entering  into  j 
iiny  particular  difcuffion  of  their  calculations,  a  very  fimple  ob- 
/ervation  may  fatisfy  us  that  the  refult  of  them  muft  be  faUe.    We 
iee  every  day  the  moit  fplendid  fortunes  that  have  been  acquired 

4  in 


fe 


THE    WEALTIf    O*^   IIATIONS.  4^7 

Mn  tbe  tovkk  of  a  fingle  life  by  trade  afld  tttantiifa^tta,  frequently   c'ra"^. 
tiram  a  very  faiall  capital,  fometimes  from  n6  capital.    A  fingle 
inftaikoeof  fuch  a  fortune  acquired  by  agriculture  in  the  fame 
unhs^'  and  ftom  fudi  a  capital,  has  not,    perhaps,  occurred  in 
Biirope  during  the  courfe  of  the  prefeht  century^    In  all  the  great 
countries  of  Europe,  however,  much  good  land  ftill  remains  un- 
cultivated,   and  the  greater  part  of  what  is  cultivated  is  far  from 
being  improved  to  the  d^ree  of  which  it  is  capable.    Agriculture, 
therefor^   is  almoft  every  where  capable  of  ablbrbing  a  much 
greater  capital  than  has  ever  yet  been  employed  in  it.    What  cir« 
cumflances  in  the  policy  of  Europe  have  given  the  trades  which 
are  carried  on  in  townu  fo  great  an  advantage  over  that  which  is 
.^^ied  onin  the  country*  that  private  perfons  frequently  find 
^if.  jx^ice  foi:  their  advantage  to  employ  r  their  capitals  in  the  moft 
.<fifttnt  carrying  trades  of  Afia  and  America,  than  in  the  improve- 
.  meat  and  cultivation  of  the  moft  fertile  fields  in  their  own  neigh- 
.bourhood,  I  ihall  endeavour  to  expl^un  at  full  length  'm  the  two 
ibllowing  books,  -  aj  i«a»iwi^  ^«>^*4iU^  # 

-*  'J  '■  ,;>  ?v  ..i'?  '■•','  'i  Jtf»  i^t^^ijjii  ^x^^fjfi^, 

•  ;l^)  ■•        ■• '■■■■■•'■    iWt 


Vol.  I, 


'u*A*;»i^i   >^^4iw  jtiV;  <^h  \  'v^«  left 


*••*"»•••»* 


III  1 

•     ■     ■  "i  pWi         •  .j    (  ,  ■■     ■     * 


'#V*^*/i 


f,E''^- 


.  o   i  n  rt  *i/i ' 


{    459    ) 


^I'iThA     tili'V 


BOOK      III.        ?!"' 


'^  WLbi    iv  »>*'<»»<«'•'     .J'«v'*i  V  •■*  J  . 


Of  the  different  Progr*efs  df  dpulieftce  in  different 

Nations.  ,j    :.:-..:mh 


G    H    A    P. 


I. 


h.:i". 


Of  the  natural  Progrefs  of  Opulence, 

THE  great  commerce  of  every  civilized  fociety,  is  that  carried  CHAP, 
on  between  the  inhabitants  of  the  town  and  thofe  of  the  ,_,./-./ 
country.  It  conflfts  in  the  exchange  ctf  rude  for  nianufaftured  pro- 
duce, either  immediately,  or  by  the  intervention  <5f  money,  or  of 
fome  fort  of  paper  which  reprefents  money.  The  country  fupplies 
the  town  with  the  means  of  fubfiftence,  and  the  materials  of  ma- 
nufafture.  The  town  repays  this  fupply  by  fending  back  a  part 
of  the  manufaftured  produce  to  the  inhabitants  of  the  country. 
The  town,  in  which  there  neither  is  nor  can  be  any  reproduftion 
of  fubftances,  may  very  properly  be  faid  to  gain  its  whole  wealth 
and  fubfiftence  from  the  country.  We  muft  not,  however,  upon 
this  account,  imagine  that  the  gain  of  the  town  is  the  lofs  of  the 
country.  The  gains  of  both  are  mutual  and  reciprocal,  and  the  ' 
divifion  of  labour  is  in  this,  as  in  all  other  cafes,  advantageous  to 
4ill  the  different  perfbns  employed  in  the  various  occupations  into 
^hich  it  is  fubdivided.  Tiie  inhabitants  of  the  country  purchafe  of 
fhe  town  a  greater  quantity  of  manufadured  goods,  with  the  pro- 
<luce  of  a  much  fmaller  quantity  of  their  own  labour,  than  they 
muft  have  employed  had  they  attempted  to  [M^epare  them  themfclvcs. 
The  town  affords  a  market  for  the  furplus  produce  of  the  country, 

3  N  2  •'■  *  or 


460 


THE    NATURE    AND    CAUSES     OF 


B  O  p  K  or  what  is  over  and  above  the  maintenance  of  the  cultivators,  and 
it  is  there  that  the  inhabitants  of  the  country  exchange  it  for  fome- 
thing  elfe  which  is  in  demand  among  them.  The  greater  the  num- 
ber and  revenue  of  the  inhabitants  of  the  town,  the  more  extenfive 
is  the  market  which  it  affords  to  thofe  of  the  country ;  and  the  more 
extenfive  that  market,  it  is  always  the  more  advantageous  to  a  great 
numbei'.  The  com  which  grows  within  a  mile  of  the  town,  fells 
there  for  the  fame  price  with  that  which  comes  from  twenty  miles 
diflance.  But  the  price  of  the  latter  muft  generally,  not  only  pay 
the  expence  of  raifing  and  bringing  it  to  market,  but  afford  too 
the  ordinary  profits  of  agriculture  to  1^  farmer.  The  proprietors 
and  cultivators  of  the  country,  therefore,  which  lies  in  the 
neighbourhood  of  the  town,  over  and  above  the  ordinary  profits 
of  agriculture,  gain,  in  the  price  of  what  they  fell,  the  whole  valu« 
of  the  carriage  of  the  like  produce  that  is  brought  from  more  diflant 
parts,  and  they  fave,  befides,  the  whole  value  of  this  carriage  in 
the  price  of  what  they  buy.  Compare  the  cultivation  of  the  lands 
in  the  neighbourhood  of  any  confiderable  town,,  with  that  of  thofe 
which  lie  at  fome  diflance  from  it,  and  you.  will  cafily  fatisf}c 
yourfelf  how  much  the  country  is  benefited  by  the  commerce  of  the 
town.  Among  all  the  abfurd  fpeculations  that  have  been  pro* 
pagated  concerning  the  balance  of  trade,  it  has  never  heen.pretended 
that  either  the  country  lofes  by  its  commerce  with  the  town,.. or, 
the  town  by  that  with  the  country  whicK  maintains  it. 


As  fubfiftence  is,  in  the  nature,  of  things,  prior  to  conveniency,- 
and  luxury,  fo  tlie  induftry  which  procures  the  former,  muft. 
necelTarily  be  prior  to  that  which  minifters  to  the  latter.  The 
cultivation  and  improvement  of  the  country,  therefore,  which 
affords  fubfiftence,  mufi,  necefiarily,  be  prior  to  the  increafe  of 
the  town,  which  furniihes  only  the  means  of  conveniency  and  luxury.. 
It  is  the  furplus  produce  of  the  country  only,  or  what  is  over  and . 

above 


THE    WEALTH    OF    NATIONS. 

above  the  maintenance  of  the  cultivators,  that  conftitutes  the  fubfift- 
ence  of  the  town,  which  can  therefore  increafe  only  with  the  increafe 
of  this  furplus  produce.  The  town,  indeed,  may  not  always  derive 
its  whole  fubfiftence  from  the  country  in  its  neighbourhood,  or  even 
from  the  territory  to  which  it  belongs,  but  from  very  diftant  coun- 
tries; and  this,  though  it  forms  no  exception  from  the  general 
rule,  has  occaftoned  confiderable  variations  in  the  progrefs  of 
opulence  in  different  ages  and  nations.  ,  •  ,>. 


461 


That  order  of  things  which  neceflity  impofes  in  general,  thougtv 
not  in  every  particular  country,  is,  in  every  particular  country, 
promoted  by  the  natural  inclinations  of  man.  If  human  inftitu- 
tions  had  never  thwarted  thufe  natural  inclinations,  the  towns 
could  no  where  have  incrcafed  beyond  what  the  improvement  and 
cultivation  of  the  territory  in  which  they  were  fituated  could  fup- 
poi'ti  till  fuch  time,  at  leaft,  as  the  whole  of  that  territory  was 
completely  cultivated  and  improved.  Upon  equal,  or  nearly  equal 
profits,  moft  men  will  chufe  to  employ  their  capitals  rather  in  the 
improvement  and  cultivation  of  land,  than  either  in  manufactures 
or  in  foreign  trade.  The  man  who  employs  his  capital  in  land,, 
has  it  more  under  his  view  and  command,  and  his  foitune  is  much 
lefs  liable  to  accidents  than  that  of  the  trader,  who  is  obliged  fre- 
quently to  commit  it,  not  only  to  the  winds  and  the  waves,  but 
to  tlie  more  uncertain  elements  of  human  folly  and  injuftice,  by- 
giving  great  credits  in  diilant  countries  to  men,  with  whofe  cha- 
rafter  and  fituatioa  he  can  feldom  be.  thoroughly  acquainted. 
The  capital  of  the  landlord,  on  the  eontraiy,  which  is  fixed  in  the 
improvement  of  his  land.  Teems  to  be  as  well  fecured  as  the  nature 
€>f  human  affairs  can  admit  of.  The  beauty  of  the  country  be  (ides, 
the  pleafures  of  a  country  life,  the  tranquillity  of  mind  which  it 
promifes,  and  wherever  the  injuftice  of  human  laws  does  not 
difturb  it,  the  independency  which  it.  really  affords,   have  charms 

t  that 


462 


THE    NATURE    AND    CAUSES    OF 


BOOK  that  more  or  lefs  attract  every  body  j  and  as  to  cultivate  the  ground  ; 
^"*       was  the  original  deftination  of   man,   fo  in  every  ftage  of  his 
exigence  he  feems  to   retain   a   predile£lion  for   this   primitive 
jemployment. 

Without  the  afliftance  of  fome  artificers,  indeed,  the  cul- 
tivation of  land  cannot  be  carried  on,  but  with  great  incon- 
venicncy  and  continual  interruption.  Smiths,  carpenters,  wheel-. 
Wrights,  and  plough-wrights,  mafons,  and  bricklayers,  tanners, 
ihoemakers,  and  taylors,  are  people,  whole  fervice  the  farmer 
has  frequent  occafion  for.  Such  artificers  too  ftand,  occafionally, 
in  need  of  the  afliftance  of  one  another  j  and  as  their  refidence  is 
not,  like  that  of  the  farmer,  neceflarily  tied  down  to  a  precife 
fpot,  they  naturally  fettle  in  the  neighbourhood  of  one  another, 
and  thus  form  a  fmall  town  or  village.  The  butcher,  the  brewer, 
and  the  baker,  foon  join  them,  together  with  many  other  artificers 
and  retailers,  neceflary  or  ufeful  for  fupplyiiig  \:heir  occafional 
wants,  and  who  contribute  ftill  further  to  augment  the  town. 
The  inhabitants  of  the  town  and  thofe  of  the  country  are, 
mutually,  the  fervants  of  one  another.  The  town  is  a  continual. 
fair  or  market,  to  which  the  inhabitants  of  the  country  refort 
in  order  to  exchange  their  rude  for  manufa6lured  produce.  It 
15  this  commerce  wliich  fupplles  the  inhabitants  of  the  town  both 
with  the  materials  of  their  woric,  and  the  means  of  their  ftibfiftence. 
The  quantity  of  the  finifhed  work  which  they  fell  to  the  in- 
habitants of  the  country,  neceflarily  regulates  the  quantity  of  tht 
materials  and  provifions  which  they  buy.  Neither  their  employ- 
ment nor  fubfiftence,  therefore,  can  augment,  l^ut  in  proportion  to 
the  augmentation  of  the  demand  from  the  countiy  for  finiflied 
V  ork  J  and  this  ^demand  can  augment  only  in  proportion  to  the 
extenfion  of  improvement  and  cultivation.  Had  human  inftitu-. 
tions,  therefore^  never  difturbed  the  natural  courfe  of  things,  the 
7  progreflive 


/' 


THE    WEALTH    OF    NATIONS* 


4^3 


progreifive  wealth  and  increafe  of  the  towns  would,  in  every  CHAP, 
political  fociety,  be  confequential*  and  in  proportion  to  the  im«  '  — — * 
provcment  and  cultivation  of  the  territory  or  country. 

In  our  North  American  colonies,  where  uncultivated  land 
i«  ftill  to  be  had  upon  eafy  terms,  no  manufaflures  for  difVant  fale 
have  ever  yet  been  e(labli(hed  in  any  of  their  towns.  W<hen  an 
artificer  has  acquired  a  little  more  flock  than  is  neceffaiy  for 
carrying-on  his  own  bufinefs  in  fupplying  the  neighbouring  country, 
he  does  not,  in  North  America,  attempt  to  eftabli(h  with  it  a 
manufa£lure  for  more  diftant  fale,  but  employs  it  in  the  purchaie 
and  improvement  of  uncultivated  land.  From  artificer  he  be- 
oomcs  planter,  and  neither  the  large  wages  nor  the  eafy  fubfiflence 
which  that  country  affords  to  artificers,  can  bribe  him  rather  to  work 
for  other  people  than  for  himfelf.  He  feels  that  an  artificer  is  the 
fervantof  his  cuflomers,  ft'om  whom  he  derives  bis  fubfiflence  j  but 
that  a  planter  who  cultivates  his  own  land,  and  derives  his  neceffary. 
fubfiflence  from  the  labour  of  his  own  family,  is  really  a  mafler,. 
and  indepeiklent  of  all  the  world.  > . , 


In  countries,  on  the  contrary,  where  there  is  dther  no  un». 
euhivated  land,  or  none  that  can  be  had  upon  eafy  terms,  every 
artificer  who  has  acquired  more  fhxk  than  he  can  employ  in  the 
occafional  }obs  of  the  neighbci^chood,  endeavours  to  prepare 
work  for  more  diflant  fale.  The  fmith  erefts  fomc  fort  of 
iron,  the  vreaver  fome  fort  <^  linen  or  woollen  manufaftory. 
Thofe  different  manufaf^ures  come,  in  procef^  of  time,  to  be 
gradually  fiibdivided,  and  thereby  improved  and  refined  in  a: 
great  variety  of  ways,  which  may  eafily  be  conceived,  and  which- 
it  is  therefore  umwceffiiry  to  explain  any  further. 

..    ■    j,:ii:iiii 


«t 


464. 


THE  NATURE  AND  CAUSES  OF 


2  9,9  ^  ^N  feeling  for  employment  to  a  capital,  manufaftures  arc,  upon 
equal  or  nearly  equal  profits,  naturally  preferred  to  foreign 
commerce,  for  the  fame  reafon  that  agriculture  it  naturally 
preferred  to  manufa6lures.  As  the  capital  of  the  landlord 
or  farmer  is  more  fecure  than  that  of  the  manufacturer,  fo 
the  capital  of  the  manufacturer,  being  at  all  times  more  within 
his  view  and  command,  is  more  fecure  than  that  of  the  foreign 
merchant.  In  every  period,  indeed,  of  every  fociety,  the  furplus 
part  both  of  the  rude  and  manufactured  produce,  or  that  for  which 
there  is  no  demand  at  home,  muft  be  lent  abroad  in  order  to 
be  exchanged  for  fbmething  for  which  there  is  fome  demand 
at  home.  But  whether  the  capital,  which  carries  this  furplus 
produce  abroad,  be  a  foreign  or  a  domeltick  one,  is  of  very 
little  importance.  If  the  fociety  has  not  acquired  fuffictent  capital 
both  to  cultivate  all  its  lands,  and  to  manufacture  in  the  com- 
pleateft  manner  the  whole  of  their  rude  produce,  there  is  even 
a  confiderable  advantage  that  it  (hould  be  exported  by  a  foreign 
capital,  in  order  that  the  whole  ftock  of  the  fociety  may  be 
employed  in  more  ufeful  purpofes.  The  wealth  of  ancient  Egypt, 
that  of  China  and  Indoftan,  fufficiently  demonftrate  that  a 
nation  may  attain  a  very  high  degree  of  opulence,  though 
the  greater  part  of  its  exportation  trade  be  carried  on  by 
foreigners.  The  progrefs  of  our  North  American  and  Wed: 
Indian  colonies  would  have  been  much  lefs  rapid,  had  no  capital 
but  what  belonged  to  themfelves  been  employed  in  exporting  their 
furplus  produce. 


According  to  the  natural  courfe  of  things,  therefore,   the 
greater  part  of  the  capital    of  every  growing   fociety   is,    firft, 
directed  to  agriculture,    afterwards   to    manufactures,    and  laft 
of  all  to  foreign  pommerce.     This  order  of  things  is   {o  very., 
natural,  that    in  every  (bciety  that  had   any  territory,   it  has 


i 


THE    WEALTH    OP    NAtlONS. 


4h 


always,  I  believe,  been  in  fome  degree  obfervec^    Some  of  their  CHAP, 
lands  mufl  have  been   cultivated  before  any  confiderable  towns 
could  be  eftabliihed,   and  fome  fort  of  coarfe  indudry  of  the 
manufacturing  kind  muft  have  been  carried  on  in  thofe  towns, 
before  they  could  well  think  of  employing  themfelves  in  foreign 


commerce. 


But  though  this  natural  order  of  things  muft  have  taken  place 
in  fome  degree  in  every  fuch  fociety,  it  has,  in  all  the  modern 
ftates  of  Europe,  been,  in  many  refpedls,  intirely  inverted. 
The  foreign  commerce  of  fome  of  their  cities  has  introduced  all 
their  finer  manufactures,  or  fuch  as  were  0t  for  diftant  falei 
and  manufactures  and  fordgn  commerce  together,  have  given 
birth  to  the  principal  improvements  of  agriculture.  The  manners 
and  cultoms  which  the  nature  of  their  original  government  in- 
troduced, and  which  remained  after  that  government  was  greatly 
altered,  neceflarily  forced  them  into  this  unnatural  and  retro- 
grade  order. 


•  '■•  ■!    i; 


Vol.  I. 


30 


466 


THE    NATURE    AND    CAUSES    OP 


•  •!     II      ^  '*,  I 


f      ,      f 


CHAP.     n. 


BOOK 

III. 


0/  tbt  Difcouragtment  of  Agriculture  in  the  antient  State  of  Europe 
after  the  Fall  of  tU  Roman  EtrPire. 

m 

WHEN  the  German  and  Scythian  nations  over- ran  the 
wedern  provinces  of  the  Roman  empire,  the  confufions 
which  followed  fo  great  a  revolution  laded  for  feveral  centuries. 
The  rapine  and  violence  which  the  barbarians  exercifed  againft 
the  antient  inhabitants*    interrupted  the  commerce  between  the 
towns  and  the  country.    The  towns  were  deferted,  and  the  country 
was  left  uncultivated,  and  the  weftern  provinces  of  Europe,  which 
had  enjoyed  a  confiderable  degree  of  opulence  under  the  Roman 
empire,    funk   into  the  lowed  ftate   of  poverty  and    barbarifm. 
During  the  continuance  of  thofe  confufions,  the  chiefs  and  princi- 
pal leaders  of  thofe  nations,  acquired  or  ufurped  to  themfelves  the 
greater  part  of  the  lands  of  thofe  countries.    A  great  part  of 
them  was  uncultivated }  but  no  part  of  them,  whether  cultivated 
or  uncultivated,  was  left  without  a  proprietor.     All  of  them  were 
engroITed,  and  the  greater  part  by  a  few  great  proprietors. 


This  original  engrofllng  of  uncultivated  lands,  though  a  great, 
might  have  been  but  a  tranfitoiy  evil.  They  might  foon  have 
been  divided  again,  and  broke  into  fmall  parcels  either  by  fuc- 
ceflion  or  by  alienation.  The  law  of  primogeniture  hindered  them 
from  being  divided  by  fucceffion  :  the  introdudlion  of  entails  pre- 
vented their  being  broke  into  fmall  parcels  by  alienation. 


/IS**' 


When  land,  like  moveables,  is  confidered  as  the  mjcans  only 
of  fubfiftence  and  enjoyment,  the  natural  law  of  fucceilion  divides 


\. 


THE    WEALTH    OF    NATIONS. 


4^7 


it,  like  them,  among  all  the  children  of  the  family  j  of  all  of  CHAP, 
whom  the  fubfiftence  and  enjoyment  may  be  fuppofed  equally  dear 
to  the  father.  This  natur.^.!  law  of  fuccefllon  accordingly  took  place 
among  the  Romans,  who  made  no  more  difl:in6t:on  between  elder 
and  younger,  between  male  and  female,  in  the  inheritance  of 
lands,  than  we  do  in  the  diftribution  of  moveables.  But  when  land 
was  confldercd  as  the  means,  not  of  fubfidence  merely,  but  of 
power  and  prote£lion,  it  was  thought  better  that  it  fliould  dcfcend 
undivided  to  one.  In  thofe  diforderly  times,  every  great  landlord 
was  a  fort  of  petty  prince.  His  tenants  were  his  fubjefts.  He 
was  their  judge,  and  in  fome  refpefls  their  legiilator  in  peace,  and 
their  leader  in  war.  He  made  war  according  to  his  own  difcrction, 
frequently  againft  his  neighbours,  and  fometimes  againft  his  fovc- 
reign.  The  fecurity  of  a  landed  eflate,  therefore,  the  protection 
which  its  owner  could  afford  to  thofe  who  dwelt  on  it,  depended 
upon  its  greatnefs.  To  divide  it  was  to  ruin  it,  and  to  expofe  every 
part  of  it  to  be  oppreffed  and  fwallowed  up  by  the  incurfions  of 
its  neighbours.  The  law  of  primogeniture,  therefore,  came  to 
take  place,  not  immediately,  indeed,  but  in  procefs  of  time,  in 
the  fuccefllon  of  landed  eftates,  for  the  fame  reafon  that  it  has 
generally  taken  place  in  that  of  monarchies,  though  not  always  at 
their  firft  inftitution.  That  the  power,  and  confequently  the  fecu- 
rity of  the  monarchy,  may  not  be  weakened  by  divifion,  it  muft 
dcfcend  entire  to  one  of  the  children.  To  which  of  them  fo  im- 
portant a  preference  fliall  be  given,  muft  be  determined  by  fome 
general  rule,  .founded  not  upon  the  doubtful  diftin6tions  of  per- 
fonal  merit,  but  upon  fome  plain  and  evident  difference  which  can 
admit  of  no  difpute.  Among  the  children  of  the  fame  family, 
there  can  be  no  indifputable  difference  but  that  of  fcx,  and  that 
of  age.  The  male  fex  is  univerfally  preferred  to  the  female ;  and 
ivJicn  all  other  things  are  equal,  the  elder  every  where  takes  place 

3  O  2  of 


468 


THE    NATURE    ^ND    CAUSES    OF 


B  O  O  K   of  the  younger.    Hence  the  origin  of  the  right  of  primogeniture. 


and  of  what  is  called  lineal  fucceflion. 


Laws  frequently  continue  in  force  long  after  the  circumftances, 
which  firft  gave  occafion  to  them,  and  which  could  alone  render 
them  reafonabk,  are  no  more.  In  the  prefent  ftate  of  Europe* 
the  proprietor  of  a  fingle  acre  of  land  is  as  perfe6tly  fecure  of  his 
poifeflion  as  the  proprietor  of  a  hundred  thouiand.  The  right  of 
primogeniture,  however,  ftill  continues  to  be  refpe£ted,  and  as 
of  all  inftitutions  it  is  the  fitteft  to  fupport  the  pride  of  family 
diftin£tions,  it  is  ftill  likely  to  endure  for  many  centuries.  In 
every  other  refpe£);,  nothing  can  be  more  contrary  to  the  real  in- 
tereft  of  a  numerous  family,  than  a  right  which,  in  order  to  enrich 
one,  beggars  all  the  reft  of  the  children^ 

Entails  are  the  natural  confequences  of  the  law  of  primo-> 
geniture.  They  were  introduced  to  preferve  a  certain  lineal  fuc- 
ceilion,  of  wluch  the  law  of  primogeniture  firft  gave  the  idea, 
and  to  hinder  any  part  of  the  original  eftate  from  being  carried  out 
of  the  propofed  line  either  by  gift,  or  devife,  or  alienation;  either 
by  the  folly,  or  by  the  misfortune  of  any  of  its  fucceflive  owners. 
They  were  altogether  unknown  to  the  Romans.  Neither  their 
fubftitutions  nor  fideicommifles  bear  any  refemblance  to  entails,, 
though  feme  French  lawyers  have  thought  proper  to  drefs  the 
modern  inftitution  in  the  language  and  form  of  thofe  antient 
ones. 


When  great  landed  eftates  were  a  fort  of  principarities^  entailJs 
might  not  beunreafonable.  Like  what  are  called  the  fundamental 
laws  of  fome  monarchies,  they  might  frequently  hinder  the  fecurity 
of  thoufands  from  being  endangered  by  the  caprice  or  extravagance 
of  one  man.  But  in  the  prefent  ftate  of  Europe,  when  fmall  as 
f  well 


THE    WEALTH    OF    NATIONS* 


469 


well  as  great  eftates  derive  their  fecurity  from  the  laws  of  their  CHAP, 
country,  nothing  can  be  more  compleatly  abfurd.  They  are 
founded  upon  the  moft  abfurd  of  all  fuppofitions,  the  fuppofition 
that  every  fucceilive  generation  of  men  have  not  an  equal  right 
to  the  earth,  and  to  all  that  it  polTelTes ;  but  fhat  the  property  of 
the  prefent  generation  ihould  be  reftrained  and  regulated  according 
to  the  fancy  of  thofe  who  died  perhaps  five  hundred  years  ago. 
Entails,  however,  are  ftiU  relpefted  through  the  greater  part  of 
Europe,  in  thofe  countries  particularly  in  which  noble  birth  is 
a  neceffary  qualification  for  the  enjoyment  either  of  civil  or  military 
honours.  Entails  are  tliought  neceffary  for  maintaining  this  ex- 
clufive  privilege  of  the  nobility  to  the  great  offices  and  honours 
of  their  countiy;  and  that  order  having  ufurped  one  unjufl:  ad- 
vantage over  the  reft  of  their  fellow  citizens,  left  their  poverty 
Ihould  render  it  ridiculous,  it  is  thought  reafonable  that  they  fliould 
have  another.  The  common  law  of  England,  indeed,  is  faid  to 
abhor  perpetuities,  and  they  are  accordingly  more  reftrided  there 
than  in  any  other  European  monarchy ;  though  even  England  is 
not  altogether  without  them.  In  Scotland  more  than  one-fifth,, 
perhaps  more  than  one-third  part  of  the  whole  lands  of  the  country,, 
are  at  prelent  under  ftrift  entail.  j.  ,     ,  ;   i 

Great  trafts  of  uncultivated  land  were,  in  this  manner,  not 
only  engrofled  by  particular  families,  but  the  poflibility  of  their 
being  divided  again  was  as  much  as  poffible  precluded  forever. 
It  feldom  happens,  however,  that  a  great  proprietor  is  a  great 
improver.  In  the  diforderly  times  which  gave  birth  to  thofe  bar- 
barous inftitutions,  the  great  proprietor  was  fufficiently  employed 
in  defending  his  own  territories,  or  in  extending  his  jurifdiction 
and  authority  over  thofe  of  his  neighbours.  He  had  no  leifure  to 
v.ttend  to  the  cultivation  and  improvement  of  land.  When  tlie^ 
eftablilhment  of  law  and  order  affoided  him  this  leifure,  he  often 
wanted  the  inclination,  and  almoft  always  the  requifite  abilities.    If 

.     .  the^ 


i:„ft,i*4     ,.V?- 


vM" 


470 


THE  NATURE  AND  CAUSES  OP 


COOK  the  expence  of  his  houfe  and  perfon  either  equalled  or  exceeded 
his  revenue,  as  it  did  very  frequently,  he  had  no  ftock  to 
employ  in  this  manner.  If  he  was  an  ceconomift,  he  generally 
found  it  more  profitable  to  employ  his  annual  favings  in  new 
purchafes,  than  in  the  improvement  of  his  old  eftate.  To  im- 
prove land  with  profit,  like  all  other  commercial  projefls,  re- 
quires an  exa6l  attention  to  fmall  favings  and  fmall  gains,  of  which 
a  man  born  to  a  great  fortune,  even  though  naturally  frugal,  is 
very  feldom  capable.  The  fituation  of  fuch  a  perfon  naturally 
difpofes  him  to  attend  rather  to  ornament  which  pleafes  his  fancy, 
than  to  profit  for  which  he  has  fo  little  occafion.  The  elegance  of 
his  drefs,  of  his  equipage,  of  his  houfe,  and  houfhold  furniture* 
arc  objedts  which  from  his  infancy  he  has  been  accuftomed  to  have 
fome  anxiety  about.  The  turn  of  mind  which  this  habit  natu- 
rally forms,  follows  him  when  he  comes  to  think  of  the  improve- 
ment of  land.  He  embellifhes  perhaps  four  or  five  hundred  acres 
in  the  neighbourhood  of  his  houfe,  at  ten  times  the  expence  which 
the  land  is  worth  after  all  his  improvements;  and  finds  that  if 
he  was  to  improve  his  whole  eftate  in  the  fame  manner,  and  he 
has  little  tafte  for  any  other^  he  would  be  a  bankrupt  before  he 
had  finiflied  the  tenth  part  of  it.  There  ftill  remain  in  both  parts 
of  the  united  kingdom  fome  great  eftates  which  have  continued 
without  interruption  in  the  hands  of  the  fame  family  fince  the 
times  of  feudal  anarchy.  Compare  the  prefent  condition  of  thofe 
eftates  with  the  pofleflions  of  the  fmall  proprietors  in  their  neigh- 
bourhood, and  you  will  require  no  other  argument  to  convince 
you  how  unfavourable  fuch  extenfive  property  is  to  improve- 
ment. 

If  little  improvement  was  to  be  expelled  from  fuch  great  pro- 
prietors, ftill  lefs  was  to  be  hoped  for  from  thofe  who  occupied 
the  land  under  them.  In  the  antient  ftate  of  Europe,  the  occupiers 
of  land  were  all  tenants  at  will.     They  were  all  or  almoft  all  flaves;' 

'■•-      *  ,   }^   .  but 


THE    WEALTH    OF    NATIONS^ 


4r« 


Init  thdr  flav€iy  wras  of  a  milder  kind  than  that  known  among;  CHAP, 
the  antient  Greeks  and  Romans,  or  even  in  our  Weft  Indian  colo- 
nies. They  were  fuppofed  to  belong  more  diredly  to  the  land 
than  to  their  mafter.  They  could,  therefore,  be  fold  with  it, 
but  not  feparately.  They  could  marry,  provided  it  was  with  the 
confent  of  their  mafter;  and  he  could  not  afterwards  diftblve  the 
marriage  by  (elling  the  man  and  wife  to  different  perfons.  If  he 
maimed  or  murdered  any  of  them,  he  was  liable  to  fome  penalty, 
though  generally  but  to  a  fmall  one.  They  were  not,  howevert 
capable  of  acquiring  property.  Whatever  they  acquired  was  ac- 
jquired  to  their  mafter,  and  he  could  take  it  from  them  at  pleafure. 
Whatever  cultivation  and  improvement  could  be  carried  on  by  means 
«f  fuch  flaves,  was  properly  carried  on  by  their  mafter.  It  was 
at  his  expence.  The  feed,  the  cattle,  and  the  inftruments  of 
hufbandry  were  all  his.  It  was  for  his  benefit.  Such  (laves  could 
acquire  nothing  but  their  daily  maintenance.  It  was  properly  the 
|)roprietor  himifelf,  therefore,  that,  in  this  cafe,  occupied  his  own 
lands,  and  cultivated  them  by  his  own  bondmen.  Thii  fpecies  of 
(lavery  ftill  fubfifts  in  Ruftia,  Poland,  Hungary,  Bohemia,  Mo« 
ravia,  and  other  parts  of  Germany.  It  is  only  in  the  weftern  and 
fouih-wcftern  provinces  of  Europe,  that  it  has  gradually  been 
aboliftied  altogether. 

But  if  great  improvements  are  feldom  to  be  expefked  from 
great  proprietors,  they  are  leaft  of  all  to  be  expefled  when  they 
employ  flaves  for  their  woikmen.  The  experience  of  all  ages  and 
nations,  1  believe,  demonftrates  that  the  work  done  by  flaves, 
though  it  appears  to  coft  only  their  maintenance,  is  in  the  end  the 
deareft  of  any.  A  perfon  who  can  acquire  no  property,  can  have 
no  other  intereft  but  to  eat  as  much,  and  to  labour  as  little  as  pof- 
fiblc.  Whatever  work  he  does  beyond  what  is  fufficient  to  pur- 
chafe  his  own  maintenance,  can  be  fqueezed  out  of  him  by  vio- 
lence only,  and  not  by  any  intereft  of  his  own.    In  antient  Italy, 

Vol.  I.  3  O  Iti  ^ow 


47* 


THE    NATURE    AND    CAUSES    OF 


BOOK  bow  much  the  cultivation  of  com  degenerated,  how  unprofitable 
'^ '  it  became  to  the  mailer  when  it  fell  under  the  management  of 
flaves,  is  remarked  by  both  Pliny  and  Columella.  In  the  time 
of  Aiiftotle  it  had  not  been  much  better  in  anttent  Greece.  Speak- 
ing  of  the  ideal  republic  defcribed  in  the  laws  of  Plato,  to  main- 
tain five  thousand  idle  men  (the  number  of  warriors  fuppofed 
neceflary  for  its  defence)  together  with  thrir  women  and  fervants* 
vrould  require,  he  fays,  a  territory  of  boundlefs  extent  and  fertility, 
like  the  plains  of  Babylon.  '"^  ♦•    '  '^  •'  v^    "^^t  t-g  -^-^ 

The  pride  of  man  makes  him  love  to  domineer,  and  nothing 
mortifies  him  (b  much  as  to  be  obliged  to  condescend  to  p^fiiade  hia 
inferiors.  Wherever  the  law  allows,  it,  and  the  nature  of  the  work 
can  afford  it,  tlierefco-e,  he  will  generally  prefer  the  fervice  of  (lavea 
to  that  of  irecmen.  The  planting  of  fugar  and  tobacco  can  afford 
the  cKpcnce  of  flare-cultivation.  The  raifii^  of  com.  it  ieems. 
in  the  prefent  times,  cannot.  In  the  Engliih  coionies;,  of  whkJi 
the  piioctpal  produce  i&  oom»  the  far  grater  part  of  the  work  ia 
done  by  freemen.  The  late  refi>lution  of  the  quakers  in  PmfyU 
vania  to  let  at  liberty  all  their  negro*  (laves,  may  fatisfy  us  that 
their  number  canjiot  he  very  great.  Had  they  made  any  confiderablQ 
part  of  their  property,  fuch  a  refolution  could  never  have  beeia 
agreed  to.  In  our  fugar  colonies,  on  the  contrary,  the  whole  work 
is  done  by  flaves,  and  in  oar  tobacco  colonies  a  very  great  part  of 
it.  The  profits  of  a  fugar-piantation  in  any  of  our  Weft  Indian 
colonies  are  genecally  much  greater  than  tboie  of  any  other  cul- 
tivation that  is  knowA  either  in  Europe  or  America :  And  the  profits 
of  a  tobaoco  piantatia««  though  inferior  to  thoie  of  fugar,  are 
iiipeiior  to  thole  «f  «Qra»  tt  hai  already  beoa  obftrved.  Both  caa 
aiord  the  espence  of  flavc-ctiltivxticBv  but  iiigar  can  afford  it  Aiil 
better  than  tabBfico.  The  number  of  negroes  accordingly  is  much 
greater,  in  praportioB  to  that  of  whkes,  in  our  fug»r  than  in  cor 
tohapc9  colonies. 


THE    WEALTH    OF    NATIONS. 


473 


^  To  the  flave  cwltivators  of  antient  times,  gradually  fucceeded  C  HA  P. 
a  fpecies  of  fanners  known  at  prefent  in  France  by  the  name  of 
J^etayers.  They  are  called  in  Latin  Coloni  PartiariL  They  have 
been  fo  long  in  cUfufe  in  England  that  at  prefent  I  know  no  Englifh 
name  for  them.  The  proprietor  fumifhed  them  with  the  feed* 
4:attle,  and  inftruments  of  hufbandry,  the  whole  dock,  in  fliort, 
neceflfary  for  cultivating  the  farm.  The  produce  was  divided 
equally  between  the  proprietor  and  the  farmer,  after  fetting  afide 
what  was  judged  neceflary  for  keeping  up  the  flock,  which  was  re- 
ftored  to  the  proprietor  when  the  farmer  either  quitted  or  was 
turned  out  of  the  farm.  ,     .       , 


i 


Land  occupied  by  fuch  tenants  is  properly  cultivated  at  the 
^xpence  of  the  proprietor,  as  much  as  liiat  occupied  by  flaves. 
There  is,  however,  one  very  eflential  difference  between  them. 
Such  tenants,  being  freemen,  are  capable  of  acquiring  property, 
and  hslving  a  certain  proportion  of  the  produce  of  the  land,  they 
have  a  plam  intereft  that  the  whole  produce  fhould  be  as  great  as 
poflible,  in  order  that  their  own  proportion  may  be  fb.  A  flave, 
on  the  contrary,  who  can  acquire  nothing  but  his  maintenance, 
confults  his  own  eafe  by  making  the  land  produce  as  little  as  pof- 
fible,  over  and  above  that  maintenance.  It  is  probable  that  it  was 
partly  upon  account  of  this  advantage,  and  partly  upon  account 
of  the  encroachments  which  the  fovereign,  always  jealous  of  the 
great  lords,  gradually  encouraged  their  villains  to  make  upon  their 
authority,  and  which  feem  at  kft  to  have  been  fuch  as  rendered 
this  fpecies  of  fervitude  altogether  inconvenient,  that  tenure  in 
villanage  gradually  wore  out  through  the  greater  part  of  Europe. 
The  time  and  maruier,  however,  in  which  fo  important  a  revo- 
lution was  brought  about,  is  one  of  the  mofl  obfcure  points  in 
modern  hifVory.  The  church  of  Rome  claims  great  merit  in  it; 
and  it  is  certain  that  fo  early  as  the  twelfth  century,  Alexander  III. 

Vol.  L  3  P  publiilied 


V 


9 


'4^4 


THE  NATURE  AND  CAUSES  OP 


BOOK  publifhed  a  bull  for  the  general  emancipation  of  flaves.  Itfeems, 
howevei*,  to  have  been  rather  a  pious  e5chdrtation,  than  a  law  to 
which  exa£l  obedience  was  required  from  the  faithful.  Slavery 
continued  to  take  place  almoft  univetfally  foir  feverd  centuries  after'> 
wards,  till  it  was  gradually  abolifhed  by  the  joint  opersltion  of  the 
two  interefts  above  mentioned,  that  of  the  proprietor  on  the  onfc 
hand,  and  that  of  the  fovereign  on  the  other.  A  villain  enfran^k 
chifed,  tmd  at  the  fame  time  allowed  to  continue  in  pofteflion  of 
the  land,  having  no  ftock  of  his  own,  could  cultivate  it  only  by 
means  of  what  the  landlord  advanced  to  him,  and  muft,  therefore, 
have  been  what  the  French  call  a  Metayer. 


It  cbuld  never,  however,  be  the  intereft  even  of  this  laft  fpecies 
of  cuMviators  to  lay  out  in  the  further  improvement  of  the  landv 
any  p^t  of  the  little  ftock  which  they  might  fave  frohi  their  own 
fhare  of  the  produce,  becaufe  the  lord,  who  laid  out  nothing,  was 
to  get  one*hatf  of  whatever  it  produced.  The  tithe,  which  is  but 
a  tenth  of  the  produce,  is  found  to  be  a  very  great  hinderance  to 
improvement.  A  tax,  therefore,  which  amounted  to  one  half, 
muft  have  been  an  effeAual  bar  to  it.  It  might  be  the  intereft  of 
a  metayer  to  make  the  land  produce  as  much  as  could  be  brought 
out  of  it  by  meahs  of  the  ftock  fumiftied  by  the  proprietor :  but 
it  could  never  be  his  intereft  to  mix  any  part  of  his  own  with 
it.  In  France,  where  five  parts  out  of  fix  of  the  whole  kingdom 
are  faid  to  be  ftill  occupied  by  this  fpecies  of  cultivators,  the  pro- 
prietors complain  that  their  metayers  take  every  <^ortunity  of 
employing  the  mafters  cattle  rather  in  carriage  than  in  cultivation ; 
becaufe  in  the  one  cafe  they  get  the  whole  profits  to  themfelves,  in 
the  other  they  fhare  them  with  their  landlord.  This  fpecies  of 
tenants  ftili  fubfifts  in  fome  parts  of  Scotland.  They  are  called 
fteel-bow  tenants.  Thole  antient  Englifh  tenants,  who -are  faid 
by  chief  Baion  Gilbert  and  Doctor  Blackftone  to  have  been  rather 

bailiff. 


H 


^fl^    VfEALfH    OF    NATION?. 


'^7S 


bailiffs  of  the  landlord  than  farmers  properly  fo  called|  were  pro*   chap. 
bably  of  the  fame  kind.  *    ?  eM.:'  ,  :,,     / 


.>  '  tr' 


.  ti    i;  I'.iilki  >'  k  . 


:,V 


To  this  fpecies  of  tenancy  fucceeded,  though  by  very  flow 
degrees,  farmers  properly  fo  called,  who  cultivated  the  land  with 
their  own  flock,  paying  a  rent  certain  to  the  landlord.  When  fuch 
farmers  have  a  leafe  for  a  term  of  years,  they  may  fometimes  find 
it  for  their  intereft  to  lay  out  part  of  their  capital  in  the  further 
improvement  of  the  farm ;  becaufe  they  may  fometimes  expeft  to 
recover  it,  with  a  large  profit,  before  the  expiration  of  the  leafe. 
The  pofleffion  even  of  fuch  farmers,  however,  was  long  extreamly 
precarious,  and  flill  is  fo  in  many  parts  of  Europe.  They  could 
before  the  expiration  of  their  term  be  legally  outed  of  their  leafe, 
by  a  new  purchafer ;  in  England,  even  by  the  fiftitious  aflion  of  a 
•common  recovery.  If  they  were  turned  out  illegally  by  the  violence 
-of  their  maftcr,  the  a6tion  by  which  they  obtained  redrefs  was  ex- 
treamly imperfeft.  It  did  not  always  re-inflate  them  in  the  pof- 
feflion  of  the  -land,  but  gave  them  damages  which  never  amounted 
to  the  real  lofs.  Even  in  England,  t^e  countiy  perhaps  of  Europe 
where  the  yeomanry  has  always  been  mofl  refpefted,  it  was  not 
till  about  "the  14th  of  Henry  the  Vllth  that  the  a£tion  of  cje£lment 
was  invented,  by  which  the  tenant  recovers,  not  damages  only  but 
polfeflion,  and  in  which  his  claim  is  not  neceflarily  concluded  by 
the  uncertain  decifion  of  a  fingle  affize.  This  aflion  has  been 
found  fo  effeftual  a  remedy  that,  in  the  modern  praftice,  when  the 
landlord  has  occafion  to  fue  for  the  pofTeffion  of  the  land,  he  feldom 
makes  ule  of  the  a£lions  which  properly  belong  to  him  as- landlord, 
the  writ  of  right  or  the  writ  of  entry,  but  fues  in  the  name  of 
his  tenant,  by  the  writ  of  ejeflment.  In  England,  therefore,  the 
fecurity  of  the  tejiant  is  equal  to  thnt  of  the  proprietor.  In 
England  befidcs.  a  l^afe  for  life  of  forty  Shillings  a  year  value  is  a 
freehold,  and  eiititjes  ,the  lefiee  to  vote  ifpr  a  member  of  parliament ; 
i         .  .  3  P  2  Jin^ 


;■ 


476 


THE    NATURE    AND    CAUSES    OF 


BOOK  and  as  a  great  part  of  the  yeomanry  have  freeholds  of  this  kind; 
the  whole  order  becomes  refpe£lable  to  their  landlords  on  account 
of  the  political  confideration  which  this  gives  them.  There  is,  I 
believe,  nowhere  in  Europe,  except  in  England,  any  inftance  of 
the  tenant  building  upon  the  land  of  which  he  had  no  leaTe,  and 
trufting  that  the  honour  of  his  landlord  would  take  no  advantage 
of  fo  important  an  improvement.  Thofe  laws  and  cufloms  fb 
favourable  to  the  yeomanry,  have  perhaps  contributed  more  to  the 
prefent  grandeur  of  England  than  all  their  boafted  regulations  of 
commerce  taken  together. 


.  The  law  which  feaires  the'longeft  leafes  againft  fucceilbrs  of 
every  kind  is,  fo  far  as  I  know,  peculiar  to  Great  Britain.  It  was.; 
introduced  into  Scotlandib  early  as  1449,  ^y  a.law  of  James  the  lid.. 
Its  benefici^  influence,  however,  has  been  much  obftcu^ted  by 
entails;  the  heirs  of  ent^l  being. generally  reftrained  from  letting 
leafes  for  any  long  term  of  years,  frequently  for  more  than  one 
year.  A  late  a£t  of  parliament  has,  in  this  leipeft,  fomewhat 
llackened  their  fetters,  though  they  are  dill  by  much  too  ftrait.. 
In  Scotland,  befides,  as  no  leafehold  ^ves  a  vote  for  a  member  of 
parliament,  the  yeomanry  are  upon  this  account  le&  re^£table  to* 
their  landlords  than. in  England.  'r    ■ 

^    In  other  parts  of  Europe,  after  it  was  found  convenient  to  (ecure 
tenants  both  againft  heirs  and  purchaiers,  the  term  of  their  fecurity 
was  ftill  limited  to  a  very  fhort  period ;  in  France,  for  example, 
to  nine  years  from  the  conmiencement  of  the  leafe.    It  has  in.. that, 
country,  indeed,  been  lately  extended  to  twenty  feven,  a  period, 
ftill  too  fhort  to  encourage  the  tenant  to  make  the  moft  important, 
improvements.    The  proprietors,  of  land  were  antiently  the  leg^^ 
lators  of  every  part  of  Europe.    The  laws  relating  to  land,  there- 
fore, were  all  calculated  for  what  they  fuppofed  the  intereft  of  the 
proprietor.    It  was  for  his  interefl;,  they  had  imagined,  that  na 

4  leafe 


THE    WEALTH    OF    NATIONS. 


477 


ftafe  granted  by  any  of  his  prcdeceflbrs  (hould  hinder  him  from  C  HA  P. 
enjoying,  during  a  long  term  of  years,  the  full  value  of  his  land. 
Avarice  and  injuftice  are  always  (hort-fighted,  and  they  did  not 
forefee  how  much  this  regulation  muft  obftrufl  improvement,  and 
tiiereby  hurt  in  the  long  run. the  real  intereft  of  the  landlord. 
*>  , •  .'.'-.  t-„-\ii),< 

The  farmers  too,  befides  paying  the  rent,  were  antiently,  it 
was  fuppoied,  bound  to  perform  a  great  number  of  fervices  to 
the  landlord,  which  were  feldom  either  fpecified  in  the  leafe,  or 
regulated  by  any  precife  rule,  but  by  the  ufe  and  wont  of  the 
manor  or  barony.  Thefe  fervices,  therefore,  being  almoft  en- 
tirely arbitrary,  fubjefted  the  tenant  to  many  vexations.  In  Scot- 
land the  abolition  of  all  fervices,  not  precifely  ftipulated  in  the 
leafe,  has  in  the  courfe  of  a  few  years  very  much  altered  for  the 
better  the  condition  of  the  yeomanry  of  that  country. 


The  publick  fervices  to  which  the  yeomamy  were  bound,  were 
not  lefs  arbitrary  than  the  private  ones.  To  make  and  maintain 
the  high  road?,  a  fervitude  which  (till  fubfifts,  I  believe, .  every 
where,  though  with  different  degrees  of  opprefHon  in  different 
countries,  was  not  the  only  one.  When  the  king's  troops^  when 
his  houfhold  or  his  officers  of  any  kind  pafled  through  any  part  of 
tiie  country,  the  yeomanry  were  bound  to  provide  them  with  horfes* 
carriages,  and  provifions^  at  a  price  regulated  by  the  purveyor. 
Great  Britain  is,  I  believe,  the  only  monarchy  in  Europe  where 
the  opprefficm  of  purveyance  has  been  entirely  abolifhed. .  It  ftiU  < 
fubfifls  in  France  and  Germany. .  ^ 


'«i, 


The  publick  taxes  to  which  they  were  fubjefl:  were  as  irregular 
and  oppreflive  as  the  fervices.  The  antient  lords,  though  extreamly 
unwilling  to  grant  thcmfelves  any  pecuniary  aid  to  their  fbvereign, 
eafily  allowed  him  to  taUage,  as  they  called  it,  their  tenants,  and 

had: 


45^8 


THE  NATURE  AND  CAUSES  OF 


fi  O  O  K  had  not  knowledge  enough  to  forcfee  how  much  thii  muft  in  the 
end  affe6l  their  own  revenue.  The  taillc,  as  it  ftill  fubfifts  in  France, 
may  ferve  as  an  example  of  thofe  antient  tallages.  It  is  a  tax  upon 
the  fuppofed  profits  of  the  farmer,  which  they  eftimate  by  the 
ftock  that  he  has  upon  the  farm.  It  is  his  intereft,  therefore,  to 
appear  to  have  as  little  as  pofTible,  and  confequently  to  employ  as 
little  as  pofTible  in  its  cultivation,  and  none  in  its  improvement. 
Should  any  (Vock  happen  to  accumulate  in  the  hands  of  a  French 
farmer,  the  taille  is  almoft  equal  to  a  prohibition  of  its  ever  being 
employed  upon  the  land.  This  tax  befides  is  fuppofed  to  dishonour 
whoever  is  fubjeft  to  it,  and  to  degrade' him  below,  not  only 
the  rank  of  a  gentleman,  but  that  of  a  burgher,  and  whoever 
I'ents  the  lands  of  another  becomes  fubjefl:  to  it.  No  gentleman 
nor  even  any  burgher  that  has  flock  will  fubmit  to  this  degradation. 
This  tax,  therefore,  not  only  hinders  the  flock  which  accumulates 
upon  the  land  from  being  employed  in  its  improvement,  but  drives 
away  all  other  (lock  from  it.  The  antient  tenths  and  fifteenths,  fo 
ufual  in  England  in  former  times,  feem,  fo  far  as  they  afTedled  the 
land,  to  have  been  taxes  of  the  fame  nature  with  the  taille. 


'  Under  all  l^k  discouragements,  little  improvement  could  be 
txpefled  from  t4<ie  occupiers  of  land.  That  order  of  pec^e,  with 
all  the  libeity  and  lecarity  which  law  can  give,  muft  always  improve 
under  great  dMkd<ratitages.  The  fanner  compaced  with  the  pro- 
prietor, is  as  a  merchant  vvho  trades  with  borrowed  money  com- 
pai^  with  one  who  trades  with  his  own.  The  Hock  of-  both  may 
improve,  but  that  of  the  one,  with  only  equal  good  condu6l,  muft 
always  improve  more  flowly  than  that  of  the  other,  on  account  of 
the  large  fhare  of  the  profits  which  is  confumed  by  the  intereft  of 
the  loan.  The  lands  cultivated  by  the  farmer  muft,  fin  the  £kme 
manner,  with  only  equal  good  condu£l,  be  iniproved  >raore 'flcmly 
than  thofe  cultivated  by  the  proprietor;  on  account  of  the  ikiifge 

fliare 


THE    WEALTH    OF    NATIONS. 


479 


(hare  of  the  produce  which  is  confumed  in  the  rent,  and  which,  had  C  HA  p, 
tfie  farmer  been  pi-oprietor,  he  might  have  employM  in  the  further 
improvement  of  the  land.     The  ftation  of  a  farmer  befides  is,  from 
the  nature  of  things,  inferior  to  that  of  a  proprietor.     Through 
the  greater  part  of  Europe  the  yeomaniy  are  regarded  as  an  infe« 
rior  rank  of  people,   even  to  the  better  fort  of   tradefmen  and 
mechanics,  and  in  all  parts  of  Europe  to  the  great  merchants  and 
mafter  manofadurers.     It  can  feldom  happen,  therefore,  that  a 
man  of  any  confiderable  (lock  (hould  quit  the  fuperior  in  order 
to  place  himfelf  in  an  inferior  ftation.     Even  in  the  prefeiit  ftate 
of  Europe,  therefore,  little  ftock  is  likely  to  go  from  any  other  pro- 
fellion  to  the  imi)rovement  of  land  in  the  way  of  farming.     More 
does  perhaps  in  Great  Britain  than  in  any  other"  country,  though 
even  there  the  great  flocks  which  are,  in  fome  places,  employed 
in  farming,  have  generally  been  acquired  by  farming,  the  trade, 
perhaps,  in  which  of  all  others  ftock  is  commonly  acquired  moft 
flowly.     After  fmall  proprietors,   however,    rich  and  great  fai- 
mers  are,  in  every  country,  the  principal  improvers.     There  arc 
more  fuch   perhaps  in   England  than    in   any  other  European 
monarchy.     In  the  republican  governments  of  Holland  and  of 
Berne  in  Switzerland,  the  farmers  are  faid  to  be  not  inferior  to  thofe 
of  England.. 

The  antient  policy  of  Europe  was,  over  and  above  all  this,. 
unfavourable  to  the  improvement  and  cultivation  of  land,  whether 
carried  on  by  the  proprietor  or  by  the  farmer  j  firft,  by  the  general- 
prohibition  of  the  exportation  of  corn  without  a  fpecial  licence, 
which  feems  to  have  been  a  very  univerfal  regulation  ;  and  feconuly, , 
by  the  retrain ts  which  were  laid  upon  the  inland  commerce,  not  only 
of  corn  but  of  almoft  every  other  part  of  the  produce  of  the 
farm,  by  the  abfurd  laws  againfl  engroHTcrs,  regrators,  and  fore- 
flallerSf  and  by  the  privileges  of  fairs  and  markets.    It  has  already 

been 


480 


THE    NATURE    AND    CAUSES    OF 


B  00  K  been  obfcrved  In  what  manner  the  prohibition  of  the  exportation  of 
com,  together  with  fome  encouragement  given  to  the  importation 
of  foreign  corn,  ob(lru£led  the  cultivation  of  antient  Italy,  naturally 
the  moft  fertile  country  in  Europe,  and  at  that  time  the  kat  oi 
the  greateft  empire  in  the  world.  To  what  degree  fuch  reftrainti 
upon  the  inland  commerce  of  this  commodity,  joined  to  the  gene« 
ral  prohibition  of  exportation,  mud  have  difcouraged  the  cul- 
tivation of  countries  lefs  fertile,  and  lefs  favourably  circumftance4y 
■it  is  not  perhaps  very  eafy  to  imagine. 


..  r 


■  t 


CHAP.     IIL 


€>/  "the  Rife  and  Progrefs  of  Cities  and  Towns,  after  the  Fall  of 

the  Raman  Empire, 

THE  inhabitants  of  cities  and  towns  were,  after  the  fall 
of  the  Roman  empire,  not  more  favoured  than  thofe  of 
the  country.  They  confided,  indeed,  of  a  very  different  order  of 
people  from  the  fird  inhabitants  of  the  antient  republicks  of  Greece 
and  Italy.  Thefe  laft  were  compofed  chiefly  of  the  proprietors  of 
lands,  among  whom  the  piiblick  territory  was  originally  divided, 
and  who  found  it  convenient  to  build  their  houfes  in  the  neigh- 
bourhood of  one  another,  and  to  furround  them  with  a  wall,  for 
the  fake  of  common  defence.  After  the  fnll  of  the  Roman  empire, 
on  the  contrary,  the  proprietors  of  lands  ft  em  generally  to  have 
lived  in  fortified  caftles  on  their  own  citatc;;,  ana  in  the  uiUlft  of 
their  own  tenants  and  dependants.  The  towns  were  chiefly  inha- 
bited by  tradefmen  and  mechanicks,  who  feem  in  thofe  days  to 
Jiave  been  of  fervile,  or  very  nearly  of  fervile  condition.  The  pri- 
.  .  _.  vileges 


THE    WEALTH    OF    NATIONS. 


♦«« 


vilcges  which  wc  find  granted  by  anticnt  charters  to  the  inhabitants  C  HA  P. 
of  Ibme  of  the  pnncipal  towns  in  Europe,  fufRci«iM*y  (how  what 
they  were  befoi^  thofe  grants.  The  people  to  whom  It  is  granted 
as  a  privilege,  tfett  they  might  give  away  their  own  daughters  in 
marriage  without  the  canlcnt  of  their  lord,  that  upon  their  death 
their  own  children,  and  not  theu"  lord,  fhould  fuccced  to  their 
goods,  and  that  they  might  difpofc  of  their  own  cffe(5t'  '?<*  will, 
muft,  before  thofe  grants,  have  been  cither  altogether,  or  vci  aearly 
in  the  fame  ftate  of  villanagc  wi*h  the  occupiers  of  \and  tl% 
country.      .  , 

They  feem,  indeed,  to  have  been  a  very  poor    mca.    fctt  <# 
people,  who  ufed  to  travel  about  with  their  goods  from  i  ■m"  ^ 
place,  and  from  fair  to  fair,  like  the  h»wkers  and  pedlars  of  tlK    re- 
fent  times.    In  all  the  different  coi  itries  of  Europe  then,  in  th*^  \« 
manner  as  in  feveral  of  the  Tartar  governments  of  Afia  at  p     ;nt, 
taxes  ufed  to  be  levied  upon  the  perfons  and  goods  of  travk.  ars, 
when  they  pafTed  through  certain  manors,  when  they  went  t^er 
certain  bridges,  when  they  carried  about  their  goods  from  plac  to 
place  in  a  fair,  when  they  ere£led  in  it  a  booth  or  ftall  to  fell  tt 
in.     Thefe  different  taxe»  were  known  in  England  by  the  names    t 
paflage,   pontage,    laftage,  and  (tallage.     Sometimes  the  kin^ 
fometimes  a  great  lord,  who  had,  it   eems,  upon  fome  occafiom* 
authority  to  do  this,  would  grant  to  particular  traders,  to  fuch 
particularly  as  lived  in  their  own  demefnes,  a  general  exemption 
from  fuch  taxes.    Such  traders,  though  in  other  reipe£ls  of  fer- 
vile,  or  very  nearly  of  fervile  condition,  were  upon  this  account 
called  Free-traders.    They  in  return  ufually  paid  to  their  pro- 
te£tor  a  fort  of  annual  poll-tax.    In  thofe  days  protection  was 
leldom  granted  without    a  valuable  coniideration,   and  this  tax 
might,    perhaps,    be   confidered  as  compenfation  for  what  their 
patrons  might  lofe  by  their  exemption  from  other  taxes.    At  firft* 

Vol.  I.  3  0^  both 


482 


THE  NATURE  AND  CAUSES  OF 


BOOK  both  thofe  poll-taxes  and  thofe  exemptions  feem  to  have  beeii 
altogether  perfonal,  and  to  have  afFefted  only  particular  indivi- 
duals, during  either  their  lives,  or  the  pleafure  of  their  proteftors. 
In  the  very  imperfedl  accounts  which  have  been  publilhed  from 
Domefday-book,  of  feveral  of  the  towns  of  England,  mention 
is  frequently  made,  fometimes  of  the  tax  which  particular  burghers 
paid,  each  of  them,  either  to  the  king,  or  to  fome  other  great  lord, 
for  this  fort  of  prote^ion,  and  fometimes  of  the  general  ampunt 
only  of  all  thofe  ♦axes.  .  ', 


But  how  fervile  foever  may  have  been  originally  the  condition 
of  the  inhabitants  of  towns,  it  appears  evidently,  that  they  arrived 
at  liberty  and  independency  much  earlier  than  the  occupiers  of 
land  in  the  country.  That  part  of  the  king's  revenue  which  arofe 
from  fuch  poll-taxes  in  any  particular  town,  ufed  commonly  to 
be  lett  in  farm,  during  a  term  of  years  for  a  rent  certain,  fome- 
times to  the  flieriff  of  the  county,  and  fometimes  to  other  perfbns. 
The  burghers  themfelves  frequently  got  credit  enough  to  be 
admitted  to  farm  the  revenues  of  this  fort  which  arofe  out 
of  their  own  town,  they  becoming  jointly  and  feverally  iin- 
fwerable  for  the  whole  rent.  To  lett  a  farm  irt  this  manner  was 
quite  agreeable  to  the  ufiial  oeconomy  of,  I  believe,  the  fovereigns 
of  all  the  different  countries  of  Europe;  who  ufed  frequently  to 
lett  whole  manors  to  all  the  tenants  of  thofe  manors,  they  be- 
coming jointly  and  feverally  anfwerable  for  the  whole  rentj  but  in 
return  being  allowed  to  colledl  it  in  their  own  way,  and  to  pay 
it  into  the  king's  exchequer  by  the  hands  of  their  own  bailiff,  and 
being  thus  altogether  freed  from  the  infolence  of  the  king's  officers,; 
a  circumflance  in  thofe  days  regarded  as  of  the  greateft  impor- 


tance. 


=:   Hi. 


'U 


ft*'' 


1    .^oT-  t^ 

At 


THE    WEALTH    OF    NATIONS. 


4Si 


-  At  firll:,  the  farm  of  the  town  was  probably  lett  to  the  burgliers,  C  HA  Pj 
in  the  fame  manner  as  it  had  been  to  other  farmers, ,  for  a  term  of 
years  only.  In  procefs  of  time,  however,  it  feems  to  have  be- 
come the  general  practice  to  grant  it  to  them  in  fee,  that  is  forever, 
refcrving  a  rent  certain  never  afterwards  to  be  augmented.  The 
payment  having  thus  become  perpetual,  the  exemptions,  in  return 
for  which  it  was 'made,  naturally  became  perpetual  too.  Thofe 
exemptions,  therefore,  ceafed  to  be  perfonal,  and  could  not  after- 
wards be  confidered  as  belonging  to  individuals  as  individuals,  but 
as  burghers  of  a  particular  burgh,  which,  upon  this  account, 
was  called  a  Free-burgh,  for  the  fame  reafon  that  they  had  been 
called  Free-burghers  or  Free-traders,     >  .1 ;  -fi  \:  ^  . ;.  v:;  :-  "'^s 

.^,;fHj;{i:i/-ifi:<:  ^^ --..in-rxt  yM«iJj  l./  jj'"i  ^u.i  ,^>;'.,  .-,  ij,i,.,_  ^,  I  j.  1] 
«^  Along  with  this  grant,  the  important  privileges  above  men- 
tioned, that  they  might  give  away  their  own  daughters  in  marriage, 
that  their  children  (hould  fucceed  to  them,  and  that  they  might 
difpofe  of  their  own  effefts  by  will,  were  generally  beftowed  upon 
the  burghers  of  the  town  to  whom  it  was  given.  Whether  fuch 
privileges  had  before  been  uilially  granted  along  with  the  freedom  of 
ti*ade,  to  particular  burghers,  as  individuals,  I  know  not.  I 
rec^'on  it  not  improbable  that  they  were,  though  I  cannot  produce 
any  direft  evidence  of  it.  But  however  this  may  have  been,  the 
principal  attributes  of  villanage  and  (lavery  being  thus  taken  away 
from  them,  they  now,  at  leaft,  became  really  free  in  our  prefent 
fenfc  of  the  word  Freedom.  .        i?AO  ?!:;  ^f  ^di  n^i'-u^i''  J'-i-iPu 


'\^':t    ir>tt<'Jii— •'.»■'?*>  ''•>  -  -f^iv 


.v-V^ 


Nor  was  this  all.  They  were  generally  at  the  fame  time 
erefted  into  a  commonality  or  corporation,  with  the  privilege  of 
having  magiftrates  and  a  town  council  of  their  own,  of  making 
bye  laws  for  their  own  government,  of  building  walls  for  their  own 
defence,  and  of  reducing  all  their  inhabitants  under  a  fort  of 
military  difcijpline,  by  obliging  them  to  watch  and  ward,  that  is, 
*  3  0^2  as 


4^4         THE  NATURE  AND  CAUSES  OF 

BOO  K  as  antiently  underftood,  to  guard  ana  defend  thofe  walls  againft  all 
attacks  and  furprifes  by  night  as  well  ds  by  day.  In  England 
they  were  generally  exempted  from  fuit  to  the  hundred  and 
county  courts ;  and  all  fuch  pleas  as  (hould  arife  among  them» 
the  pleas  of  the  crown  excepted,  were  left  to  the  decifion  of  their 
own  magiftrates.  In  other  countries  much  greater  and  more 
extenfive  jurifdidtions  were  frequently  granted  to  them. 

It  might,  probably,  be  neceflary  to  grant  to  fuch  towns  as  were 
admitted  to  farm  their  own  revenues,  fome  fort  of  compulfive 
jurifdiflion  to  oblige  their  own  citizens  to  make  payment.  In  thofe 
diforderly  times  it  might  have  been  extremely  inconvenient  to 
have  left  them  to  feek  this  fort  of  juftice  from  any  other  tribunal. 
But  it  muft  feem  extraordinary  that  the  fovereigns  of  all  the  different 
coimtries  of  Europe,  fhould  have  exchanged  in  tins  manner 
for  a  rent  certain,  never  more  to  be  augmented,  that  branch  of 
their  revenue,  which  was,  perhaps,  of  all  others  the  mofl  likely 
to  be  improved,  by  the  natural  courfe  of  things,  without  either  ex- 
pence  or  attention  of  their  own :  and  that  they  (hould,  befldes,  have 
in  this  manner  voluntarily  ere£led  a  fort  of  independent  republicks 
in  the  heart  of  thek  own  dominions. 


In  order  to  underftand  this  it  mufl:  be  remembered,  that  in  thofe 
days  the  fovereign  of  perhaps  no  country  in  Europe,  was  able  to 
prote£l,  through  the  whole  extent  of  his  dominions,  the  weaker 
part  of  his  fubje6ls  from  the  oppreflion  of  the  great  lords.  Thofe 
whom  the  law  could  not  protef):,  and  who  were  not  flrong 
enough  to  defend  themfelves,  were  obliged  either  to  have  recourfe 
to  the  prote6iion  of  fome  great  lord,  and  in  order  to  obtain  it 
to  become  either  his  (laves  or  va(rals ;  or  to  enter  into  a  league 
of  mutual  defence  for  the  common  prote6tion  of  one  another. 
The  inhabitants  of  cities  and  burghs,  conlidered  as  (ingle  indi- 
viduals. 


I 


THE    WEALTH    OF    NATIONS, 


485 


^duals,  had  no- power  to  defend  thetnfelves :  but  by  entering  into  C  HA  P. 
a  league  of  mutual  defence  with  their  neighbours,  they  were  capable 
of  making  no  contemptible  refiftance.  The  lords  defpifed  the 
burghers,  whom  they  confidered  not  only  as  of  a  different  order, 
but  as  a  parcel  of  emancipated  flaves,  almoft  of  a  dijfferent 
^)ecies  from  themfelves.  The  wealth  of  the  burghers  never  failed 
to  provoke  their  envy  and  indignation,  and  they  plundered  them 
upon  every  occafion  without  mercy  or  remorfe.  The  burghers 
naturally  hated  and  feared  the  lords.  The  king  hated  and  feared 
them  too ;  but  though  perhaps  he  might  defpife,  he  had  no  reafon 
either  to  hate  or  fear  the  burghers.  Mutual  intereft,  therefore, 
difpofedthem  to  fupport  the  king,  and  the  king  to  fupport  them 
againft  the  lords.  They  were  the  enemies  of  his  enemies,  and  it 
was  his  intereft  to  render  them  as  fecure  and  independent  of  thofe 
enemies  as  he  could^  By  granting  them  magiftrates  of  their  own,- 
the  privilege  of  making  bye-laws  for  their  own  government,  that  of 
building  walls  for  their  own  defence,  and  that  of  reducing  all  their 
inhabitants  under  a  fort  of  military  difcipline,  he  gave  them  all 
the  means  of  fecurity  and  independency  of  the  barons  which  it  was 
in  his  power  to  beftow.  Without  the  eftablilhment  of  fome  regular 
government  of  this  kind,  without  feme  authority  to  compel  their 
inhabitants  to  aft  according  to  fome  certain  plan  or  fyftem,  no 
voluntary  league  of  mutual  defence  could  either  have  afforded  them 
any  permanent  fecurity,  or  have  enabled  them  to  give  the  king 
any  confiderable  fupport.  By  granting  them  the  farm  of  their  town 
in  fee,  he  took  away  from  thofe  whom  he  wiflied  to  have  for  his 
friends,  and,  if  one  may  fay  fo,  for  his  allies,  all  ground  of  jea- 
loufy  and  fufpieion  that  he  was  ever  afterwards  to  opprefs  them, 
either  by  raifing  the  farm  rent  of  their  town,  or  by  granting  it 
to  fome  other  farmer. 

The  princes  who  lived  upon  the  worft  terms  with  their  barons, 
feem  accordingly  to  have  been  the  moft  liberal  in  grants  of  this 

kind 


486 


THE    NATURE     AND     CAUSES     OF 


S  O  O  K  kind  to  their  burghs.  King  John  of  England,  for  example,  appears 
to  have  been  a  moft  munificent  benefaftor  to  his  towns.  Philip 
the  firft  of  France  loft  all  authority  over  his  barons.  Towards 
the  end  of  his  reign,  his  fon  Lewis,  known  afterwards  by  the  name 
■of  Lewis  the  Fat,  confultedi  according  to  father  Daniel,  with  the 
biftiops  of  the  royal  demefnes,  concerning  the  moft  proper  means 
of  reftraining  the  violence  of  the  great  lords.  Their  advice  con- 
lifted  of  two  different  propofals.  One  was  to  ered;  a  new  order 
of  jurifdiftion,  by  eftablifliing  magiftrates  and  a  town  council  in 
every  confiderable  town  of  his  demefnes.  The  other  was  to  form  a 
new  militia,  by  making  the  inhabitants  of  thofe  towns,  under  the  com- 
mand of  their  own  magiftrates,  march  out  upon  proper  occafions  to 
the  afliftance  of  the  king.  It  is  from  this  period,  according  to  the 
French  a»itiquarians,  that  we  are  to  date  the  inftitution  of  the 
magiftrates  and  councils  of  cities  in  France.  It  was  during  the 
unprofperous  reigns  of  the  princes  of  the  houfe  of  Suabia  that  the 
greater  part  of  the  free  towns  of  Germany  received  the  firft  grants 
of  their  privileges,  and  that  the  famous  Hanfeatic  league  firft 
became  formidable.         ,.  ,.,  ,        „:^     .  ^., 

The  militia  of  the  cities  feems,  in  thofe  times,  not  to  have  been 
inferior  to  that  of  the  country,  and  as  they  could  be  more  readily 
affembled  upon  any  fudden  occafion,  they  frequently  had  the  ad- 
vantage in  their  difputes  with  the  neighbouring  lords.  In  coun- 
tries, fuch  as  Italy  and  Switzerland,  in  which,  on  account 
either  of  their  diftance  from  the  principal  feat  of  government,  of  the 
natural  ftrength  of  the  country  itfelf,  or  of  fome  other  reafon,  the 
fovereign  came  to  lofe  the  whole  of  his  authority,  the  cities  generally 
became  independent  republicks,  and  conquered  all  the  nobility  in 
their  neighbourhood ;  obliging  them  to  pull  down  their  caftles  in 
the  country,  and  to  live,  like  other  peaceable  inhabitants,  in  the 
city.    This  is  the  ftiort  hiftory  of  the  republick  of  Berne,  as  well  as 


THE    WEALTH    OF    NATIONS. 


487 


of  feveral  other  cities  in  Switzerland.     If  you  except  Venice,  for  of  CHAP: 
that  city  the  hiftoi7  is  fomewhat  different,  it  is  the  hiftory  of  all  the 
<;onflderable  Italian  rei>ubhcks,  of  which  fo  great  a  number  arofe  and 
periflied,  between  the  end  of  the  twelfth  and  the  beginning  of  the 
fixteenth  century. 

In  countries  fuch  as  France  or  England,  where  the  authority 
of  the  fovereign,  though  frequently  very  low,  never  was  deftroyed 
altogether,  the  cities  had  no  opj;ortunity  of  becoming  entirely  in- 
dependent. They  became,  however,  fo  confiderable  that  the  fove- 
reign could  impofe  no  tax  upon  them,  befides  the  ftated  farm  rent 
of  the  town,  without  their  own  confent.  1  hey  were,  therefore, 
called  upon  to  fend  deputies  to  the  general  aflembly  of  the  ftates 
of  the  kingdom,  where  they  might  join  with  the  clergy  and  the 
barons  in  granting,  upon  urgent  occafions,  fome  extraordhiary  aid 
to  the  king.  Being  generally  too  more  favourable  to  his  power, 
their  deputies  feem,  fometimes,  to  have  been  employed  by  him  as 
ia  counter-balance  to  the  authority  of  the  great  lords  in  thofe  affem- 
blies.  Hence  the  origin  of  the  rejirefentation  of  burghs  in  the 
ftates  general  of  all  the  great  monarchies  in  Europe. 

Order  and  good  government,  and  along  with  tliem  the  liberty 
and  fecurity  of  individuals,  were,  in  this  manner,  eftabliflied  in 
cities  at  a  time  when  the  occupiers  of  land  in  the  country  were  ex- 
pofed  to  every  fort  of  violence  But  men  in  this  defencelefs  ftat« 
naturally  content  themfelves  with  their  neceflary  fubfiftence  i  be- 
caufe  to  acquire  more  might  only  tempt  the  injuftice  of  their  op- 
preffors.  On  the  contrary,  when  they  are  fecure  of  enjoying  the 
fruits  of  their  induftry,  they  naturally  exert  it  to  better  their  con- 
dition, and  to  acquire  not  only  the  neceflaries,  but  the  conveniencies 
and  elegancies  oi-  life.  That  induftry,  therefore,  which  aims  at 
fomething  more  than  neceflary  ilibfiftence,  was  eftabliflied  in  cities 
long  before  it  yvas  commonly  pradifed  by  the  occupiers  of  land 


4^8, 


THE    NATURE    AND    CAUSES    (DF 


B  Qp  K  in  the  country.  If  in  the  hands  of  a  poor  cultivatoi*,  oj^rcffed 
with  the  fervitude  of  villanage,  fome  little  flock  fliould  acGumulatei 
he  would  naturally  conceal  it  with  great  care  from  his  matter, 
to  whom  it  would  otherwife  have  belonged,  and  take  the  fii'ft  op- 
portunity of  running  away  to  a  town.  The  law  was  at  that  time 
fo  indulgent  to  the  inhabitants  of  towns,  and  fo  defirous  of  di- 
minifhing  the  authority  of  the  lords  over  thofe  of  the  country, 
that  if  he  could  conceal  himfelf  there  from  the  purfuit  of  his  lord 
for  a  year,  •  he  was  free  for  ever.  Whatever  flock,  therefore, 
accumulated  in  the  hands  of  the  induflrious  part  of  the  inhabitants 
of  the  country,  naturally  took  refuge  in  cities,  as  the  only 
fan£luaries  in  wliich  it  could  be  fecure  to  the  perfon  that  ac- 
quired it. 


The  inhabitants  of  a  city,  it  is  true,  mufl  always  ultimately 
derive  their  fubfiflence,  and  the  whole  materials  and  means  of  their 
induflry  from  the  country.  But  thofe  of  a  city,  fituated  near  either 
the  fea-coaft  or  the  banks  of  a  navigable  river,  are  not  neceffarily 
confined  to  derive  them  from  the  country  in  their  neighbourhood. 
They  have  a  much  wider  range,  and  may  draw  them  from  the 
mofl  remote  corners  of  the  world,  either  in  exchange  for  the  ma- 
nufadlured  produce  of  their  own  induflry,  or  by  performing  the 
ofHce  of  carriers  between  diflant  countries,  and  exchanging  the 
produce  of  one  for  that  of  another.  A  city  might  in  this  manner 
grow  up  to  great  wealth  and  fplendor,  while  not  only  the  country 
in  its  neighbourhood,  but  all  thofe  to  which  it  traded,  were  in 
poverty  and  wretchednefs.  Each  of  thofe  countries,  perhaps,  taken 
fingly,  could  afford  it  but  a  fmall  part,  either  of  its  fubfiflence,  or  of 
its  employment;  but  all  of  them  taken  together  could  afford  it  both 
a  great  fubfiflence  and  a  great  employment.  There  were,  how- 
ever, within  the  narrow  circle  of  the  commerce  of  thofe  times, 
fbme  countries  that  were  opulent  and  induflrious. .  Such  was  the 

7  Greek 


THE    WEALTH    OF    NATIONS. 

Greek  empire  as  long  as  it  fublifted,  and  that  of  the  Saracens  during 
the  reigns  of  the  Abaflides.  Such  too  was  Egypt  till  it  was  con- 
quered by  the  Turks,  fome  part  of  the  coafl:  of  Barbary,  and  all 
thofe  provinces  of  Spain  which  were  under  the  government  of  the 
Moors.        :n.^    ,     .    * .  . 

The  cities  of  Italy  feem  to  have  been  the  firft  in  Europe  which 
were  railed  by  commerce  to  any  confiderable  degree  of  opulence. 
Italy  lay  in  the  center  of  what  was  at  that  time  the  improved 
and  civilized  part  of  the  world.  The  Cruzades  too,  though  by 
the  great  wafte  of  flock  and  deftru£lion  of  inhabitants  which  they 
occalioned,  they  muft  neceflarily  have  retarded  the  progrefs  of  the 
greater  part  of  Europe,  were  extreamly  favourable  to  that  of  fome 
Italian  cities.  The  great  armies  which  marched  from  all  parts 
to  the  conqueft  of  the  holy  land,  gave  extraordinary  encouragement 
to  the  (hipping  of  Venice,  Genoa,  and  Pifa,  fometimes  in  tranfport- 
ing  them  thither,  and  always  in  fupplying  them  with  provifions. 
They  were  the  commiflaries,  if  one  may  iay  fo,  of  thofe  armies; 
and  the  moft  de(lru6>ive  frenzy  that  ever  befel  the  European  nations, 
was  a  iburce  of  opulence  to  thofe  republics,     i  =    . 


4t> 


CHAP. 

III. 


The  inhabitants  of  trading  cities,  by  importing  the  improved 
manufadlures  and  expenlive  luxuries  of  richer  countries,  afforded 
fome  food  to  the  vanity  of  the  great  proprietors,  who  eagerly  pur- 
chafed  them  with  great  quantities  of  the  rude  produce  of  their  own 
lands.  The  commerce  of  a  great  part  of  Europe  in  thofe  times 
accordingly,  confifted  chiefly  in  the  exchange  of  their  own  rude, 
for  the  manufactured  produce  of  more  civili;e;ed  nations.  Thus 
the  wool  of  England  ufed  to  be  exchanged  for  the  wines  of  France 
and  the  fine  cloths  of  Flanders,  in  the  fame  manner  as  the  com 
of  Poland  is  at  this  day  exchanged  for  the  wines  and  brandies  of 
France,  and  for  the  filks  and  velvets  of  France  and  Italy. 

Vol.  I.  3  R  A  taste 


490 

.  BOOK 
III. 


THE    NATURE    AND    CAU/8E&    OP 

A  TA»T»  for  the  finer  and  more  improved manufa£hiresj  was  ki 
this  manner  intpodMf ed' by  foreign  commerce  into- countries  wheiv 
no  Such  wcorks  were  carried  on.  BvMi  when  this  taAe  hecame  To 
general  aft  to  occsifion  a  confideraUe  demandv  the  merchants,  in 
order  to  fave  the  expence  of  carriage,  naturally  endeavoured  to 
eftabliih  Tome  manufactures  of  the  fame  kind  in  their  own  country. 
Hence  the  origin  of  the  fir  A  manufactures  for  diftant  fale  that 
feem  to  have  been  eftabliOied  ia  the  weftem  provinces  o£  Europe^ 
after  rfie  fajl  of  thft  Roman  empire*, , ,,  .  . , . 


No  large  counlzy,  it  muA  be  obfbrved',  ever  did  or  could  AibiU^ 
without  (bme:  fort  of  manufia6tures.bdng  carried  on  in  it;  and;w4ien 
it  is  faid  of  any  fuch  countrythat  it  has.  no  mtmufaClures,  it  muik 
alwxiys  be  underftood  of  the  finer  and  more  impnwed,  or  ofi  fuch 
as  are  nt  for  diAant  (ale.  In  every  l&rge  country,  both  the  cloath<* 
ing  and  houihold  furniture  of  the  far  greater  part  of  the  people* 
ace  the  produce  of  their  own  induftry.  This-  is  even  more  univcr-* 
ially  the  cafe  in  thofe  poor  countrie»  wluch  ar«  commonly^  faid  i<y 
have  no  manufactures,  than  in  thofe  rich  ones  that  are  fkid-  to 
abound  in  them.  In  the  latter,  you  will  generally  find>  both  in  the 
cloaths  and  houfhold  furniture  of  the  loweft  rank  of  people,  a 
much   greater  proportion  of  foreign  productions  than  in   the 


former^ . ,  ,^j^t;nmi*  '^.  »*•»  i-  '■*» 


m.OI-94tf0: 


Those,  manufactures  whidi  are  fit  for  diffiant  fale,  feem  to  Have 
been  introduced  ii>to  different  comitries  in  two  different  ways. 


Sometimes  they  have  been  introduced,  in  the  manner  above 
mentioned,  by  the-  violent  operation^  if  one  may  fay  fb,  of  the 
ftocks  of  particular  merchants  and  undertakers,  who  eftablifhed 
them  in  imitation  of  fbme  foreign  manufactures  of  the  fame 
kind.     Such  manufactures,  therefore,  are  the  offspring  of  foreign 

.,   ,  conunerce. 


THE    WEALTH    OF    NATIONS, 


49t 


commerce,  and  fuch  feem  t6  hav    jcen  the  antlent  manufaiSlures 
of  filks,  vdvets,  and  brocades  that  were  introduced  into  Venice 
in  the  beginning  of  the  thirteenth  century.     Such  too  feem  to  have 
been  the  manufa£lures  of  fine  cloths  that  antiently  flouriihed  in 
Flandersi  and  which  were  intix)duced  into  England  in  the  banning 
of  the  reign  of  Elizabeth ;  and  fuch  are  the  prefent  (Ilk  manu- 
factures of  Lyons  and  Spital-fields.    Manufactures  introduced  in 
this  manner  are  generally  employed  upon  foreign  materials,  being 
in  imitations   of  foreign   manufactures.     When  the    Venetian 
manufacture  flourished,  there  was  not  a  mulberry  tree,  nor  confe- 
quently  a  filkworm  in  all  Lombardy.    They  brought  the  materials 
from  Sicily  and  from  the  Levant,  the  manufacture  itfelf  being  in 
imitation  of  thofe  carried  on  in  the  Greek  empire.    Mulberry 
trees  were  firft  planted  in  Lombardy  in  the  beginning  of  the  fix- 
teenth  century,  by  the  encouragement  of  Ludovico  Sforza  duke 
of  Milan.    The  manufactures  of  Flanders  were  carried  on  chiefly 
with  Spanifh  arnd  Englifh  wool.     Spanifh  wool  was  the  material, 
not  of  the  firft  woollen  manufacture  of  England,  but  of  the  firft 
that  was  fit  for  diftant  fale.     More  than  one  half  the  materials  of 
the  Lyons  manufacture  is  at  this  day  foreign  filk  j  when  it  vras 
firft  eftablifhed,  the  whok  or  very  nearly  the  whole  was  fo.     No 
part  of  the  materials  of  the  Spital-fields  manufaCttire  is  e^tv  likely 
to  be  the  produce  of  England.    The  feat  Of  fuch  mamrfaCttfres, 
as  tlicy  are  generally  introduced  by  the  fcheme  and  projeCt  of  ^  few 
individuals,  is  fometimes  eftablifhed  in  »  maritime  city,  and  fome- 
times  in  an  inland  town,  according  as  their  intereft,  judgment  or 
caprice  happen  to  determine.     ..n        -•        \^ 


CHAP. 

111. 


ni^r- 


•ut 


At  other  times  manufactures  for  diftant  fale  gi'ow  Up  natiivallyi 
and  as  it  were  of  Aeir  own  accord,  by  tlAe  gradual  refinement  of 
thoffe  houfkold  and  eoarfer  manufactures  Which  mtift  at  all  times 
be  carried  oni  even"  in'  the  pooitflf  and  rudeft  couhtries.  Sucli 
....'.    ^.u-,  3  R  2  manufactures 


49t 


TWE    NATURE    AfrfD    CAUSES    OF 


BOOK 
III. 


manufa£hires  are  gentrally  employed  upon  the  materials  Mrhlch 
the  country  produces,  and  they  feem  frequently  to  have  been  firft 
refined  and  improved  in  fuch  inland  countries  as  were,  not  indeed 
at  a  very  great,  but  at  a  confiderable  diftance  from  the  fea  coaft, 
and  fometimes  even  from  all  water  carriage.  An  inland  country 
naturally  fertile  and  eafily  cultivated,  produces  a  great  furplus  of 
provifions  beyond  what  is  neceflfary  for  maintaining  the  cultivators, 
and  on  account  of  the  expence  of  land  carriage,  and  inconveniency 
of  river  navigation,  it  may  fitquently  be  difficult  to  iend  this  fur- 
plus  abroad.  Abundance,  therefore,  renders  provifions  cheap* 
and  encourages  a  great  number  of  workmen  to  fettle  in  the  neigh- 
bourhood, who  find  that  their  induftry  can  theic  procure  them 
more  of  the  neceflfaries  and  convemencies  of  Hfe  than  in  other 
places.  They  work  up  the  materials  of  manufacture  which  the 
land  produces,  and  exchange  their  finifhed  work,  or  what  is  the 
fame  thing  the  price  of  it,  for  more  materials  and  proxdfions.  They 
give  a  new  value  to  the  furplus  part  of  the  rude  produce  by  faving 
the  expence  of  carrying  it  to  the  water  fide  or  to  fonte  dUffamA  market  ;^ 
and  they  fumilh  the  cultivators  viiii  fomething  in  exchange  fov 
it  that  is  either  ufeful  or  agreeable  to  them,  upon  eafier  terms  thar» 
they  could  have  obtained  it  before.^  The  cultivators  get  a  better 
price  for  their  furplus  produce,  and  can^  purchafc  cheaper  other 
conveniencies  which  they  have  occafion:  for.  They  are  thus  botib 
encouraged  and  enabled  to  increafe  this  furplus  produce  by  a  further 
improvement  and  better  cultivation  of  the  land ;  and  as  the  fer* 
tility  of  the  land  had  given  birth  ta  the  manufaflure,  fo  the  pro^ 
grefs  of  the  manufacture  re-a£ts  upon- the  land,  and  increaies  (till 
further  its  fertility.  The  manufacturers  firft  fupply  the  neigh-^ 
bourhood,  and  afterwards,  as  their  work  improves  and  refines,  more 
diftant  markets.  For  though  ndther  the  rude  produce,  nor  even 
the  coarfe  manufacture  could,  without  the  greateft  difficulty,  fup. 
port  the  expence  of  a  confiderable  land,  carriage,  the  refined  and 
4  ...  improved. 


THE    WEALTH    OF    NAT       IfS. 


493 


aUt  it  fix  ^viently  CHAP. 


improved  manufa£lure  eafily  may.  In  afmall 
contains  the  price  of  a  great  quantity  of  rude  pio^'uce.  A  piece 
of  fine  cloth,  for  example,  which  weighs  only  eighty  pounds,  con- 
tains in  it,  the  price,  not  only  of  eighty  pounds  weight  of  wool, 
but  fometimes  of  feveral  thoufand  weight  of  corn,  the  maintenance 
of  the  different  working  people,  and  of  their  immediate  employers. 
The  corn  which  could  with  difficulty  have  been  carried  abroad  in 
its  own  ihape,  is  in  this  manner  virtually  exported  in  that  of  the 
complete  manufacture,  and  may  eafily  be  fent  to  the  remotefl 
corners  of  the  world.  In  this  manner  have  grown  up  naturally, 
and  as  it  were  of  their  own  accord,  the  manufactures  of  Leeds, 
Halifax*  Sheffield,  Birmingham,,  and  Wolverhampton.  Such 
manufactures  are  the  ofTspring  of  agriculture.  In  the  modem 
hiftory  of  Europe,  their  extenfion  and  unprovement  have  generally 
been  pofterior  to  thofe  which  were  the  offspring  of  foreign  com- 
merce. England  was  noted  for  the  manufacture  of  fine  cloths  made 
of  Spanilh  wool,  more  than  a  century  before  any  of  thofe  which  now 
flouriih  in  the  pl^es  above  mentioned  were  fit  for  foreign  fale.  The 
extenfion  and  improvement  of  thefe  lait  could  not  take  place  but  in 
confequence  of  the  extenfion  and  improvement  of  agriculture,, 
the  laft  and  greateft  effisCt  of  foreign  commerce,  and  of  the  manu-^ 
faCtures  immediately  introduced  by  it,  and  which  I  fliall  now  pra-^ 
ceed  to  explain*.  >  -h;; 


wK' 


a 

Yi-" '-   ■ 

•••  >'f? 

-*?i'?- 

•?f; 

i' 

^•■■"n. 

li^*  *«■ 

•    «.  ■ 

—u.f^ 

w'  •  V**-* 

494 


THE 


NATURE    AND    CAUSES    OF 

:,?j  'rfi-  ^  '-      ■   «   '      '"-n^. ,     -.^v^c-  ,    ■    '  •.. 

'  ^-.-J 

^            C  H  A  P.    IV. 

Hoiv  the  Commerce  of  the  Towns  contributed  to  the  Improvement  of 

tbe  Country, 


Jif: 


BOOK   'i'^HE  inereafe  and  riches  of  commercial  and  manufa6luring 
III.         J.     towns,  contributed  to  the  improvement  and  cultivation  of 
the  countries  to  which  they  belonged,  in  three  different  ways.        \ 


\   -' 


First,  by  affording  a  great  and  ready  market  for  the  rude 
produce  of  the  country,  they  gave  encouragement  to  its  cultivation 
and  further  improvement.  This  benefit  was  not  even  confined  to 
the  countries  i(i  which  tliey  were  fituated,  but  extended  more  or  lefs 
to  all  thofe  with  which  they  had  any  dealings.  To  all  of  them 
they  afforded  a  market  for  fome  part  either  of  their  rude  or  manu- 
fa^ured  produce,  and  confbquently  gave  fome  encouragement  to 
the  induftry  and  improvement  of  all.  Their  own  country,  how- 
ever, on  account  of  its  neighbourhood,  neceflarily  derived  the  greatefl 
benefit  from  this  market.  Its  rude  produce  being  charged  with 
lefs  carriage,  the  traders  could  pay  the  gjrowers  a  better  price  for  it, 
and  yet  afford  it  as  cheap  to  the  confumers  as  that  of  more  didant 
countries. 


•«'■» 


>  Secondly,  the  wealth  acquired  by  the  inhabitants  of  cities  was 
frequently  employed  in  purchafing  fuch  lands  as  were  to  be  fold, 
of  which  a  great  part  would  frequently  be  uncultivated.  Mer- 
chants are  commonly  ambitious  of  becoming  country  gentlemen* 
and  when  they  do,  they  are  generally  the  beft  of  all  improvers.  A 
merchant  is  accuflomed  to  employ  his  money  chiefly  in  profitable 
projects  j  whereas  a  mere  country  gentleman  is  accuflomed  to 
^  employ 


THE    WEALTH    OF    NATIONS. 

employ  it  chiefly  ra  cxpenc«.    Tlie  one  o^  fcc»  his  rtoHey  go 
from  him  anel<  refurn  to  him  again  with  a  profit :   Th«  other  when 
once  he  parta  with  it,  very  feldom  experts  to  fee  any  more  of  it. 
Thofe  different  habits  naturally  aflk£V  their  temper  and  difpofition 
in  every  fort  of  bufmcft.     A  merchant  is  commonly  a  bold ;  a 
country  gentbnnin,  a  timid  un^rtaker.    The  one  is  not  afraid' 
to  lay  out  at  once  a  large  capital'  upon  the  improvement  of  his 
knd,  when*  he  has  a  probable  profpeft  of  raiflng  the  valiic  of  it  in 
proportion  to-  the  expence.    The  other,  if  he  has  any  capital, 
which  is^  not  always  the  cafe,  fddom  ventures  to  employ  it  in  tb*« 
manner.    Jf  he  improves  at  all,  it  is  commonly  not  with  a  c     '  • 
but  with  what  he  can  fave  out  of  his  annual  revenue.     W>    •  -^ 
has  had  the-ft>rtune  to  live  in  a  mercantile  town  fituated  in  an  un- 
improved country,  mufV  have  frequently  obfcrved  how  much  more 
fpirited  the  operations  of  merchants  were  in  this  way,  thanthofe  of 
mere  country  gentlemen.  The  habits,  befides,  of  order,  (economy 
and  attention,   to  which  mercantile  bufinefs  naturally  fbrms  a 
merchant,  render   him  much^  fitter  to  execute,   with  profit  and 
iiiccefs,  any  pn^cft'  of  improvement. 

Thirdly,  and  laftly,  commerce  and  manufa£hires  gradually 
introduced  oi'der  and  good  government,  and  with  them,  tlie  liberty 
and  fecurity  of  individuals,  among  the  inhabitants  of  the  country,, 
who  had  before  lived  almoft  in  a  continual  flate  of  war  with  their 
neighbours,  and  of  femle  dependency  upon  their  fuperiors.  I'his,. 
though  it  has  been  the  leaft  obferved,  is  by  far  the  mofl  impoitant 
of  all  their  effeds.  Mr.  Hume  is  the  only  writer  who,  fo  far  as 
I  know,  has  hitherto  taken  notice  of  it.  ,  f,,.,  ^,  ,(  f,,  ^.f 

In  a  country  which  has  neither  foreign  commerce,  nor  any  of  the 

fiher  manufa6lures,  a  great  proprietor;  having  nothing  for  which' he 

can  exchange  the  greater  part  of  the  produce  of  his  lands  which  is ' 

over  and  above  the  maintenance  of  the  cultivators,,  confumes  the 

'^'7  .  ]  whole 


49^ 

CHAP. 

IV. 


496 


THE    NATURE    AND    CAUSES    OF 


III. 


B  o  o  K  whole  in  ruftick  hofpitality  at  home.  If  this  furplus  produce  is  fuf- 
ficient  to  maintain  a  hundred  or  ^  thpufand  men,  he  can  make  ufe  of 
it  in  no  other  way  than  by  maintaining  a  hundred  or  a  thoufand  men. 
He  is  at  all  times,  therefore,  furrounded  with  a  multitude  of 
retainers  and  dependants,  who  having  no  equivalent  to  give  in 
return  for  their  maintenance,  but  being  fed  entirely  by  his  bounty, 
muft  obey  him,  for  the  fame  reafon  that  foldiers  muft  obey  the 
prince  who  pays  them.  Before  the  extenfion  of  commerce  and 
manufadtures  in  Europe,  the  hofpitality  of  the  rich  and  the  great* 
from  the  fovereign  down  to  the  fmalleft  baron,  exceeded  every  thing 
which  in  the  prefent  times  we  can  eafily  form  a  notion  of.  Weft- 
minfter  hall  was  the  dining  room  of  William  Rufus,  and  might 
frequently,  perhaps,  not  be  too  large  for  his  company.  It  was 
reckoned  a  piece  of  magnificence  in  Thomas  Becket,  that  he 
ftrowed  the  floor  of  his  hall  with  clean  hay  or  ruflies  in  the  feafbn, 
in  order  that  the  knights  and  fquires,  who  could  not  get  feats,  might 
not  fpoil  their  fine  cloaths  when  they  fat  down  on  the  floor  to  eat 
their  dinner.  The  great  earl  of  Warwick  is  faid  to  have  entertained 
every  day  at  his  different  manors,  thirty  thoufand  people;  and 
though  the  number  here  may  have  been  exaggerated,  it  muft,  how- 
ever, have  been  very  great  to  admit  of  fuch  exaggeration.  A  hof- 
pitality nearly  of  the  fame  kind  was  exercifed  not  many  yeoi's  ago 
in  many  different  parts  of  the  highlands  of  Scotland.  It  feems 
to  be  common  in  all  nations  to  whom  commerce  and  manufactures 
are  little  known.  I  have  feen,  fays  Do6lor  Pocock,  an  Arabian 
chief  dine  in  the  flreets  of  a  town  where  he  had  come  to  fell  his 
cattle,  and  invite  all  pafTengers,  even  common  beggars,  to  fit  down 
with  him  and  partake  of  his  banquet.  -"Xf.  ' 

The  occupiers  of  land  were  in  every  refpeCt  as  dependent  upon 
the  great  proprietor  as  his  retainers.  Even  fuch  of  them  as  were 
not  in  a  ftate  of  villanage,  were  tenants  at  will,  who  paid  a  rent 


THE    WEAI^TH    OF    NATION?. 


497 


#- 


ia  jiQ  refp^ft  ?(julv^?j;t  tp  the  fufefiilejiee  which  the  l^n4  ^flE«r4ed  C  HA  p. 
them.  A  Ci'QWH,  half  a  crpwn,  g  (heep,  a  lanib,  wa?  fome  years 
ago  in  the  highlands  pf  Scotland  a  common  rent  for  lands  which 
maintained  a  family.  In  fpme  pUces  it  is  fp  at  this  day  -,  nor  wiU 
money  at  prefent  pureh^fe  a,  greafef  quantity  of  commpdities  there 
(hw  in  other  places.  In  ^  country  where  the  furplus  produce  of 
"^"^  a  ^rge  eftate  muft  te  cpnfume4  upon  the  eft^te  itftlf,  it  will  fre- 

quently be  more  convenient  for  the  proprietor,  that  part  of  it  be 
confumed  at  a  diftance  from  his  own  houfe,  provided  they  who 
confume  it  are  as  dependant  upon  him  as  either  his  retainers  or 
his  menial  fervants.  He  is  thereby  faved  from  the  cmbarraffment 
of  either  too  large  a  company  or  tPo  large  a  family.  A  tenant 
at  will,  who  poffeffes  land  fufficient  to  maintain  his  family  for  little 
more  than  a  quit- rent,  is  as  dependant  upon  the  proprietor  as  any 
fervant  or  retainer  whatever,  and  muft  obey  him  with  as  little 
referve.  Such  a  proprietor,  as  he  feeds  his  fervants  and  retainers 
at  lus  own  houfe,  fo  he  feeds  his  tenants  at  tlieir  houfes.  The 
fubfiftence  pf  both  is  derived  from  liis  bounty,  and  its  continuance 
.      depends  upon  l^s  good  pleafure.  ^  '  ** 

Upom  the  authofity  whicli  the  great  proprietors  nec?fl(arily 
had  in  fuch  a  ftate  of  things  over  their  tenants  and  i:etainers,  was 

.^  founded  the  power  of  the  antient  barons.  They  necefGirily  became 
the  judges  in  peace,  and  dlis,  leaders  in  war,  of  all  who  dwelt 

f  upon  their  eftates.  fhey  could  maintain  order  and  execute  the 
law  within  their  refpe^livedemefnes,  becaufe  each  of  them  could 
there  turn  the  whole  foree  of  all  the  inhabitants  againfl  the  In^uftice 
of  any  one.  No  other  perfon  had  fufficient  authoiity  to  do  this. 
The  king  in  particular  had  not.  In  tlipfe  antient  times  he  was 
litde  more  than  the  greateA  proprietor  in  Iiis  dominipns,  to 
whom  for  the  fake  of  common  defence  aga»nfl  their  coounon  ene- 
mies, the  otiier  great  proprietors  paid  certain  rcfpe(5ts.  To  have 
enforced  payment  of  a  finall  debt  within  the  lancis  of  a  great  pro- 
»     Vol.  I.    "^    »  ,  3  S  piietor, 


o 


498 


THE     NATURE    AND    CAUSES    OP 


BOOK 

in. 


%: 


"te. 


^ 

•^ 


^ 


prletor,  where  all  the  inhabitants  were  armed  and  accuftomed  to 
fland  by  one  another,  would  have  coft  the  king,  had  he  attempted 
it  by  his  own  authority,  almoft  the  fame  effort  as  to  extinguiOi 
a  civil  war.  He  was,  therefore,  obliged  to  abandon  the  adminif- 
tration  of  juftice  through  the  greater  part  of  the  country,  to  thofe 
who  were  capable  of  adminiftering  it;  and  for  the  fame  reafon  to 
leave  the  command  of  the  country  tnilitia  to  thofe  whom  that 
raUitia  would  obey*  '^'  5*6    j^^t?  '' ^      ..^-^ 

-    ^    .  -   '^  ^  ^..  •■■-  •• 

It  is  a  miftake  to  imagine  that  thofe  territorial  jurifdi^tions  took 
their  origin  from  the  feudal  law.  Not  only  the  higheft  jurifdi6lions 
both  civil  and  criminal,  but  the  power  of  levymg  troops,  of  coin- 
ing money,  and  even  that  of  making  bye-laws  for  the  government 
of  their  own  people,  «^e  all  rights  pofTelied  allodially  by  the  great 
proprietors  of  land  feveral  centuries  before  even  the  name  of  the 
feudal  law  was  known  in  Europe.  The  authority  and  jurifdi£iion 
of  the  Saxon  lords  in  England,  appears  to  have  been  as  great  before 
the  conqueft,  as  that  of  any  of  the  Norman  lords  after  it.  But 
the  feudal  law  is  not  fuppo^d  to  have  become  the  common  law 
of  England  till  after  die  conqueft.  That  the  moft  extenlive  au- 
thority and  jufifdidlior^  wei3g.  poflefled  by  the  great  lords  in  France 
allodially  long  before  the  feudal  hw  was  introduced  into  that 
country,  is  a  matter  of  fa£l  that  admits  of  no  doubt.  That  au- 
thority and  thdfe  jurifdidions  all  neceflfarily  flowed  from  the  ftate 
of  property  and  manners  juft  now  defcribed.  Without  remount- 
ing to  the  remote  antiquities  of  eidier  the  French  or  English  ^ 
monarchies,  we  may  find  in  much  later  times  many  proofs  tbab  fuch 
effeds  muft  always  flow  from  fuch  caufes.  It  is  not  thirty  years  ago  mjj^ 
ftnce  Mr.  Cameron  of  Lochiel,  a  gentleman  of  Lochabar  in  Scot- 
land, without  any  legal  warrant  whatever,  not  b^ing  what  was  then 
called  a  lord  of  regality,  nor  even  a  tenant  in  chief,  but  a  vafTal  of 
the  duke  of  Argylle,  and  without  being  fo  much  as  a  j.u£tice  of 
"^m^.       F     •*•■    ^  <•    ■'        .    Face* 


■■f^ 


^■ 


■'*j% 


Hf^ 


riP'    ">. 


ff 


# 


•fj 


♦* 


-m- 


THE     WEALTH     OF    NATIONS. 


499 


■^ 


4'4 


.tj 


-**4r 


#r 


-f 


# 


#**»(■, 

f?'- 


peace,  ufed,  notwithftanding,  to  exercife  the  higheft  criminal  jurif- 
didion  over  his  own  people.  He  is  fald  to  have  done  fo  with 
great  equity,  though  without  any  of  the  formalities  of  juilice  j  and 
it  is  not  improbable  that  the  flate  of  that  part  of  the  country 
at  that  time  made  it  neceffary  for  him  to  afTume  this  authority  in 
order  to  maintain  the  publick  peace.  That  gentleman,  whole  rent 
never  exceeded  five  hundred  pounds  a  year,  carried,  in  1745, 
eight  hundred  of  his  own  people  into  the  rebellion  with  him. 

v5  The  introduction  of  the  feud^  law,  (o  far  from  extending,  may 
be  regarded  as  an  attempt  Jto  moderate  the  authority  of  the  great 
allodial  lords.  It  eHiiibliflied  a  regular  fubordination,  accompanied 
with  a  long  train  of  fervices  and  duties,  from  the  king  down  to 
the  fmalleft  proprietor.  During  the ,  minority  of  the  proprietor, 
the  rent,  together  with  the  management  of  his  lairds,  fell  into  the 
hands  of  his  immediate  fuperior,  and,  confequently,  thofe  of  all 
great  proprietors  into  the  hands  of  the  kin||,  Vho  was  charged 
with  the  maintenance  and  education'  of  the  pupil,  and  who,  from 
his  authority  as  guardian,  was  fuppofed  to  have  a  right  of  dif- 
pofing  of  him  in  r.iarriage,  provided  it  was  in  a  manner  not  un^ 
fuitable  to  his  rank.  But  though  this  inftitution  neceflarily  tended 
to  ftrengthen  the  authority  of  the  king,  and  to  w^ken  that  of 
the  great  proprietors,  it  could  not  do  dther  fufficiently  for  eflablifh- 
ing  order  aqid  good  government  ani6i|||^  th^  ii\|)jibitants  of  the 
country ;  becaufe  it  could*  not  altjar  fufficiently  that  ftate  of 
property  and  manners  from  which  tlie  diforders  arofe.  The 
authority  of  governrpept  ftill  cc^tinucd  to  be,  as  before,  too  weak 
in^the  head  and  too  (Irong  vfi  the  inferior  members,  and  the 
exc^flive  ftrength  of  the  inferior  members  was  the  caufe  of  the 
weaknefs  oiF  the  head,  After  the  inftitution  of  feudal  fubordi- 
nation, the  king  was  as  incapable  of  reftraining  the  violence  of 
the  great  lords  as  before.     Tlicy^^U  continued  to  make  war  ac- 

3  S  2  ^  ^'  cording 


••••ill 


♦* 


P 


0' 


\*^'- 
*^?^:-: 


#^ 


.^■ 


CHAP. 
IV. 


■^*^  - 


%P 


1^ 


5G0 


THE     NATURE    AK&   ^AD^ES     01? 


'.iS 


BOOK  cbrding  to  thtir  oWn  difcretidn,  almoft  ci^ntirraally  upott  one  aho%her> 
artd  very  frequently  upon  the  king;  aftd  the  eptSn  co^try  ftill 
(Tdrttinued  t6  be  a  fcene  of  vitolente,  rapiWCi  iind  di&rdet'. 

BOT  What  all  the  violence  of  the  feudal  inftitutlons  could  never 
have  effected,  the  filent  and  mfenfible  <^ration  of  fordgn  commerce 
and  manufa£hires  ^gradually  brought  About.  TheTe  gradually  fur- 
nifhed  the  great  prq)rietor%  with  fomething  for  Vtrhich  they  could 
exchange  the  whole  furplus  produce  of  their  lands,  and  which  they 
could  confume  themielves  without  fliaring  it  either  with  tenants  or 
retainers.  AU  for  ourfelves,  and  nothing  for  other  people,  Teems,  in 
every  £^e  of  the  world,  to  have  been  the  vile  maxim  of  the  mafters  of 
mankind.  As  foon,  therefore,  as  they  could  find  a  method  of  con- 
fuming  the  whole  value  of  their  rents  themfelves,  they  had  no  dif- 
politi^i  to  fhare  them  with  any  other  peribns.  For  a.pair  of  diamond 
buckles  perfaapS)  or  for  fomething  as  frivolous  and  ufelefs,  they 
exclvanlged  the  m^teneivce,  or  what  is  the  fame  thing,  the  price  of 
the  itoaintenimce  <tf  a  thoufand  men  for  a  year,  and  with  it  the 
wlible  wdi^ht  and  -authority  which  it  couldgive  them.  The  buckles* 
however,  were  to  be  aH  their  o^'in,  mid  iio  other  human  creature 
was  to  have  any  ^lajutt  of  them^  whereat  in  the  more  antient 
method  c^  e^cpence  they  muft'hawe  fliared  with  at  leaft  a  thoufand 
pebple.  With  the  judges  that  were  to  determine  the  preference, 
this  difference  was  perfectly  decifive  j  and  thus,  for  the  gratification 
of  the  'moft  chil^fh,  the  jaieanefl  and  the  moft  fordid  of  all 
vanities,  they  gradudly  bartered  their  whole  power  and  authority, 

'In  a  country  where  there  is  no  foreign  cdlRfitnerce,  nor  any  of  the 
finer  manufkiftures,  a  ttian  of  t^  thoufand  a  year  cannot  ivell 
employ  his  I'evenue  in  any  dther  Wifythan  in  fn^intaining,  perhif{to, 
tt  thoufand  families,  who  are  all  of  them  neceAarily^t  his  com<- 
mand.  In  the  prefent  ftate  of  Europe,  a  man  of  ten  thbuiand  a 
year  can  Ipend  his  whole  revenue,  -And  he^neially  does  h,  t^ith** 


f-" 


^ 


4»     W 


tout 


V  .V  V5^* 


f^^ 

i 

.<*■ 

. 

«» 


1 


■^^, 


m 


m 


'jif< 


"# 


AV' 


•>;". 


■4^. 


^1^*. 


«r 


•4&" 


i^v 


'U 


# 


Si.  -ri 


■'¥ 


THE    WEALTH    OF    NATIONS. 

6ut  direftly  maintaining  twenty  people,  ov  being  able  to  command  C 
more  than  ten  footmen  nc^t  worth  the  commanding.  Indiredly, 
perhaps,  he  maintains  as  great  or  even  a  greater  number  of  people 
than  he  could  have  done  by  the  antient  method  of  expence.  For 
though  the  quantity  of  precious  productions  for  which  he  ex- 
changes his  whole  revenue  be  vuy  fmall,  the  number  of  workmen 
employed  in  colleftmg  and  preparing  it,  mnft  neceflarily  have  been 
very  great.  Its  great  price  generally  aiife^  from  the  wages  of  their 
labour,  and  the  profits  of  all  their  immediate  employers.  By 
paying  that  price  he  indireClly  pays  all  thofe  wages  and  profits, 
and  thos  indire£tly  contributes  to  the  maintenance  of  all  the  work- 
men and  their  employers.  He  generally  contributes,  however, 
but  a  very  fmall  proportion  to  that  of  each,  to  very  few  perhaps 
a  tenth,  to  many  not  a  hundredth,  and  to  fome  not  a  thoufandth 
nor  even  a  ten  thoufandth  part  of  their  whole  annual  maintenance. 
Though  he  contributes,  therefore,  to  the  maintenance  of  them  aH, 
they  are  all  more  or  lefs  independant  of  him,  becaufe  generally 
they  can  all  be  maintained  without  him. 


^ 


4 


h#- 


N' 


%)ki 


.ii*/*? 


i.-rf- 


*  When  the  great  proprietors  of  land  Ipend  their  rents  in  main- 
tjfining  their  tenants  and  retainers,  each  of  them  maintains  entirely 
all  his  own  tenants  and  all  his  own  retainers.  But  when  they  fpend 
them  in  maintaining  tradefmen  and  artificers,  they  may,  all  of  them 
taken  together,  perhaps,  maintain  as  great,  or,  on  account  of  the 
wafte  which  attends  ruftidk  ^hofpitality,  a  greater  number  of  people 
than  bdibre  Bach  of  Ihem,  however,  taken  iingly,  contributes  often 
but  a  very  Anall  (bare 'ttf'the  maintenance  of  any  individual  of  tbis 
greater  number.  Each  trodefman  or  artificer  derives  his^  fubfiftence 
from  the  employment,  not  of  one,  but  of  a  hundred  or  a  thoul'and 
diffei^nt  cuflomers.  Though  in  fome  meafure  obliged  to  them 
all,   therefore,  <he  is  not  abfolutely  'dependant  upon  any  one  of 

The 


44 


^% 


^•^ 


501 


an 


.^^: 


^ 


^ 


502 

BOOK 
III. 


1?? 


# 


THE  NATURE  AND  CAUSES  OP 

The  perfonal  cxpence  of  the  gi'cat  proprietors  having  in  this 
manner  gradually  increafed,  it  was  impofTible  that  the  number  of  their 
retainers  (hould  not  as  gradually  diminifh,  till  they  were  at  laft 
difmifTed  altogether.  The  fame  caufe  gradually  led  them  to  difmifs 
the  unnecefTary  part  of  their  tenants.  Farms  were  enlarged,  and  the 
occupiers  of  land,  notwithftanding  the  complaints  of  depopulation, 
reduced  to  the  number  necelTary  for  cultivating  it  according  to  the 
imperfect  ftate  of  cultivation  and  improvement  in  thofe  times. 
By  the  removal  of  the  unnecedary  mouths,  and  by  exacting  from 
the  farmer  the  full  value  of  the  fai'm,  a  greater  furpl^$,^  or  what 
is  the  fame  thing,  the  price  of  a  greater  furplus,  was  obtained  for  ^ 
the  proj'rietor,  which  the  merchants  and  roanufafturers  foon  fur- 
nilhed  him  with  a  method  of  fpending  upon  his  own  perfon  in  the 
fame  manner  as  he  had  done  the  reft.  The  fame  caufe  continue, 
ing  to  operate,  he  was  defirous  to  raife  his  rents  above  what  his 
lands,  in  the  aflual  ftate  of  their  improvement,  could  afford.  (lis 
tenants  could  agree  to  this  upon  one  condition  only,  that  they 
fhould  be  fecured  in  their  poffeflicjii  for  fuch  a  term  of  years  as 
might  give  them  time  to  recover  with  profit  whatever  they  fliould 
lay  out  in  ihe  further  improvement  of  the  land.  The  expeniive 
vanity  of  the  landlord  made  him  wilUng  to  accept  9jt|his  condition } 
and  hence  the  origin  of  long  leafes,  ,ft\i  f« 


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Even  a  tenant  at  will,  who  pays  the  full  value  of ^ the  land,  is 
not  altogether  dependent  upon  the  landlord.     TJhe  pecvmiary  ad-  % 
vantages  which  they  receive  from  one  imothei^  are  mvttnal  and 
equal,  and  fuch  a  tenant  will  expa^fe  neitbor.his  life  nof'liis  fortune 
in  the  fervice  of  the  proprietor.     But  if  ho  has  a  leaie  for  a  long  if 
term  of  years,  he  is  altogether  independent;  and  hu  landlord  mufl 
not  exped  from  him  even  the  moft  trifling  fervice  beyond  what  is   ^ 
either  expreflly  ftipulated  in   the    leafe,t  or  impofed    upon  him 
by  the  common  and  known  law  of i^e  country,  ,.'^^ 

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THE    WEALTH    OF    N^ATIONS.' 


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Thf  tenants  having  in  this -manner  become  independent, '  and  CHAP, 
the  ret  linors  being  difmifled,  the  gi^eat  proprietors  were  no  iongei: 
capable  of  interrupting  the  regular  e  .ecution  of  juftice,  or  of  dif- 
turbin^  the  peace  of  the  country.  Having  fold  their  birth-right, 
not  like  Efau  for  a  mefs  of  pottage  in  time  of  hunger  and  neceflity, 
but  in  the  wantonnefs  of  plenty,  for  trinkets  and  baubles  fitter 
to  be  the  play-things  of  children,  than  the  ferious  purfuits  of 
men,  they  became  as  infignificant  as  any  fubftantial  burgher  or 
tradefman  in  a  city.  A  regular  government  vtras  eftablifhed  in 
the  country  as  well  as  in  the  city,  nobody  having  fufficient  power 
to  difturb  its  operations  in  the  one,  any  more  than  in  the  other.  ,:> 
;        "fi;  •'         i4  .  "    -■■■  v:*'i\    ,;-;;iv  io  "*•  :  '■'■.? 

It  does  not,  perhaps,  relate  to  the  prcfent  fubjeft,  but  I  cannot 
help  remarking  it,  tiiat  very  old  families,  fuch  as  have  poflefled 
fome  confiderable  eftate  from  father  to  fon  for  many  fucceffive 
generations,  are  very  rare  in  commercial  countrier.  In  countries 
which  have  little  commerce,  on  the  contrary,  fuch  as  Wales  or 
the  highlands  of  Scotland,  they  are  very  common.  The  Arabian 
hiftories  feem  to  be  all  full  of  genealogies,  and  there  is  a  hifloty 
^'  written  by  a  Tartar  Khan  which  has  been  tranflated  into  feveral 
European  languages,  and  which  contains  fcarce  any  thing  elfe; 
a  proof  that  antient  families  are  very  common  among  thofe 
nations.  In  countries  where  a  rich  man  can  fpend  his  revenue  in 
no  other  way  tha,a  by  maintaining  as  many  people  as  it  can  main- 
tain, he  is  not  apt  to  run  out,  and  his  benevolence  it  feems  is 
feldooAvick.yioknt  ai^^to  atten^it  to  maintain  more  than  he  caa 
afford.  But^  where  he  ow  fpend  the  greateil  revenue  upon  hi& 
own  perfon,  he  frec^iiently  has  no  bounds  to  his  expence,  becaufe 
he  frequently  has  no  bounds  to  his  vanity,  or  to  his  affeflion  for 
his  own  perlbrt.  In  commercial  countries,  therefore,  riches,  in 
fpite  of  the  moft  violent  regulations  of  law  to  prevent  their  diill- 
it|t     pation,  very  feldom  remain  kmg  in  the  fame  family.    Among 


#" 

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504 


TPIE    NATURE    AND    CAUSES    OF 

K  fimple  nations,  on  the  conti'au7»  they  frequently  do  without  any 
regulations  of  law ;  for  among  nations  of  (hopherda,  £iich  aa  the 
Tartars  and  Arabs,  the  confumabk  nature  of  that  property^' necef- 
iaiily  renders  all  fuch  regulations  impoffible.  !*■•■ 

A  REVOLUTION  of  tiie  greateft  importance  to  the  publick  hap^ 
pinefs,  was  in  this  manner  brought  about  by  two  different  orders 
of  people,  who  had  not  the  leaft  intention  to  fervethe  public. 
To  gratify  the  moft  childifh  vanity  was  the  foie  motive  of  the 
great  proprietors.  The  merchants  and  artificers,  mtidi  left  ridi- 
culous, afted  merely  from  a  view  to  their  own  interefl;,  fOiH  in 
purfuit  of  their  own  pedlar  principle  of  turning  a  penny  wheitrver 
a  penny  was  to  be  got.  Neither  of  them  had  either  knowtedge  or 
fbrelight  of  that  great  revblution  which  the  folly  o£  the  one,  and 
the  induftry  of  the  other  was  gradually  bringing  about  '>. 

It  is  thus  that  through  the  greater  part  of  Europe  the  commerce 
and  manufa^ures  of  cities,  inftead  of  being  the  efk&,  have  been 
the  caufe  and  occalion  of  the  improvement  and  cultivation  of  tha 
countiy. 


v 


•^' 


.*<-. 


This  order,  however,  being  contrary  to  the  natural  courfe 
of  things,  is  necellarily  both  flow  and  uncert^.  Compare  the 
flow  progreis  of  thofe  European  countries  of  whicH'  the  wealth 
depends  very  much  upon  their  commerce  i^d  manufa6tares, 
with  the  rapid  advances  of  our  North  Aii'^ricari '  do! onies,  of 
which  the  wealth  is  founded  altogether  in  ag;riculture.  Through 
the  greater  part  of  Europe,  the  number  of  timabitants  h  not  fop- 
pofed  to  double  in  lefs  than  five  hundred  years,  "fk  ftveral  of  our  . 
North  American  colonies,  '.t  is  found  to  double  in  "twenty  or  five 
and  twenty  years.  In  Europe,  the  law  of  primogeniture;  and  per- 
petuities of  different  kinds,  prewttt  the  divifion  of  great  eftatcs, 
7         *fr. '     ',■    ^'j.'"   ■  "  .#¥■  and 


.f^ 


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W 


^^^^^ ' 


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A 


THE    WEALTH    OF    NATIONS. 

knd  thereby  hinder  the  multiplication  of  fmall  proprietors.     A 
ftiall  pspprietor,   however,   who  knows  every  part  of  his  little 
f'Ttory,  who  views  it  all  with  the   afFe£tion  which  property, 
dpedally  finall  property,  naturally  infpires,  and  who  upon  that 
account  takes  pleafure  not  only  in  cultivating  but  in  adorning  it, 
is  generally  of  all  improvers  the  moft  induftrious,  the  moft  inv^lli- 
geot,   and  the  moft  fuccefsful.     The  fame  regulations,   befides, 
keep  fo  much  land  out  of  the  market,  that  there  are  always  more 
capitals  to  buy  than  there  is  land  to  fell,  fo  that  what  is  fold  always 
fells  at  a  monopoly  price.    The  rent  never  pays  the  intereft  of  the 
purchafe  moneys  and  is  befides  burdened  with  rep^urs  and  qther 
occafional  charges,  to  which  the  intereft  of  money  is  not  liable. 
To  purchaft  land  is  every  where  in  Europe  a  moft  unprofitable 
employment  of  a  fmall  capital.     For  the  fake  of  the  fuperior  fecu- 
rity,  indeed,  a  man  of  moderate  circumftances,  when  he  retires 
from  bufmefs,  mW  fometimes  chufe  to  lay  out  his  little  capital  in 
hnd,    A  man  of  profeifion  too,  whofe  revenue  is  derived  from 
another  fource,  often  loves  to  fecure  his  favings  in  the  fame  way. 
But  a  young  man,  who,  inftead  of  applying  to  trade  or  to  feme 
profeifion;    (hould  employ   a   capital  of  two  or  three  thoufand 
pounds  in  the  purchafe  and  <;}iltivation  of  a  fmall  piece  of  lamU 
might  indeed  expeft  to  live  very  happily,  and  very  independently, 
.but  muft  bid  adieu,  forever,  to  all  hope  of  either  great  fortune 
or  great  illuftration,   which  by  a    different  employment  of  his 
ftock  hn  might  have  had  the  fame  chance  of  acquiring  with  other 
people.     Such  a  perfon  tooj  though  he  cannot  aJpire  at  being  a 
proprietor,  will  often  difdain  to  be  a  farmer.     The  fmnll  quantity 
of  laiid,  therefore,    which  is  brought  to  market,    and  the  high 
'price  of  v/hat  is  brought,  prevents  a  great  number  of  capitals  from 
being  -employed  in  its  cultivation  and  improvement  which  would 
otherwife  have  taken  that  direction.     In  North  America,  on  the 
contrary,  fifty  or  fixty  pounds  is  often  found  a  fufficieu  ftock 
Vol.  I.  3  T  to 


505 

CHAP. 
IV. 


!! 


5o6 


rnU    NATVRJS    WP    CAW'SEfl    Cff 


fiOOK  to  begin  a  plantation  with*.    Thft  fWehiJs anA  impMnmnnt  of 
"^'      uncuUlvatcd  laud,  i«  tlvBri»i  4i9  mof\  ^ftoiiiM^  nt^ji^^ 

th«  AnaUeft  a9  weU  as  o£  thft  gr^nCeft  ctipitdsk  aiid  diferinioA:  cfinft 
ix>acl  tQ)  all  the  fortune  and  iUuBntkn  yvhiok^m  \m  acqi&wdi.bi 
that  coua>ryi  Such  landw  kidficd^  is  in  Narfeb  itoetiai  to^ite 
had  almoft  for  nothing,  or  at  a  prioeniuck  ldo«»tb«-iad«i  of 
the  natural  produce ;.  a  thing  impoffible  in  Europe^  my  inteidl 
in  any  country  where  all  landa  haue  long  beta  pilvite  pfopMfefi. 
If  landed  eftates,  howoiei;,  wcce  dhrided  e^uallDP  imong  idl^  tke 
chilcben»  upon  tiie  death  of  any  pr^rietoci  wb»  kft  *•  oUBKrotas 
^uniJy»  the  eibte  would  generally  bt)  ibldi  8i»  iiiM^lu«iwOoiA 
come  to  market,  diat  it  could  no  koger  fell  at  a  inoiiopeiy  yiice'. 
The  free  rent  of  the  land  would  go  neacer  to  pay^  fke  iiMseiBflr  of 
the  purchaie  money,  and  a  finall capital  mighC/bt  smplofcdiin^yijw^ 
chaTuig  land  as  profitably  as  iaiaiiy  otbor  way.  ^  ;>r ,  oi 

England,  on  account  of  the  naturalfenifity ofilwibU*  o#'^ 
great  extent  of  fea  coaft  in  proportion  tothat  o£  the  whok  HtnhHtfp. 
ard  of  the  many  navigable  rivers  which  run  throi^  it,  aad'affelrd 
the  conveniency  of  water  carriage  to  fi>me  df  the  oaoft  inlandi  partr 
of  it,  is  perhaps  as  weU  fitted  by  oaftufie  ts  any  large  countt^'  im 
Europe,  to  be  the  feat  of  fordgn  commerc<^  of  maauftfifaiMt  fior 
diilant  fale,  and  of  all  the  improvemenCa  whi<;h  thefecanioccafiodk. 
From  the  beginning  of  the-  rdgn  of  Elizabeth  too,  dtefisigliih. 
Jegiflature  has-  been  peculiarly  attentive  to  this  intereAi  of  commflUB^ 
and  manufactures,  and  in  reality  there  ia  nacoiuitry  in  E§in3ipe» 
HoUand  itfeif  not  excepted,  of  which  the  law  is  upon  the  whole 
more  favourable  to  this  fort  of  induflry.  Comj^ai^e.  ,an4<  naan|]|*' 
fa6tures  have  accordingly  been  continually  adyanciog  during  ^U 
this  period.  The  cultivation  and  improvement  of  the  coijintcy 
has,  no  doubt,  been  gradually  advancing  too:  But  ^t  Isf ma  to 
have  followed  flowly,  and  at  a  diftance,,  the  more  rapid  progrefs  of 

commerce 


YUE    WEALTH    OF    NATIONS. 


comfnerce  «in4  AiffMife^urM. 


507 


Tlie  greater  part  of  the  country  C  HA  p. 
tnnft  {H-obaMy  have  iMen  cMltivated  before  the  reign  6f  EHtabeth ) 
ffiMl  a  tttty  great  part  of  it  ftiU  i^mains  uncuhi^^at«d,  and  the 
cultivfltion  of  t^  far  greater  part  much  ifvferidr  to  what  it  might 
be.  The  tavr  of  SitgtatuI,  however,  favours  agricultare  not  only 
indireftly  by  «be  protection  of  oommeFCC,  but  by  feveral  dired 
«nc«uragenMnt>.  Except  in  times  of  fcarcity,  the  exportation  of 
corn  is  not  only  free,  but  encouraged  by  a  bounty.  In  times  of 
moderate  plenty,  the  importation  of  foreign  corn  is  loaded  with 
duties  tb-^t  amount  to  a  prohibition.  The  importation  of  live 
cattle,  except  from  Ireland,  is  prohibited  at  all  timesr  and  it  is  but  ot 
late  that  it  was  permitted  from  thence.  Thofe  who  cultivate  the  land, 
therefore,  have  a  monopoly  againft  their  countrymen  for  the  two 
greateft  and  mod  important  articles  of  land-prpduce,  bread  and 
tmtcher's  meat.  Theft  encouragements,  though  at  bottom,  perhaps, 
2^  I  (hall  endeavour  to  (how  hereafter,  altogether  illufory,  fufHciently 
demonftrate  at  leaft  the  good  intention  of  the  legillature  to  favour 
agriculture.  But  what  is  of  much  more  importance  than  all  of  them, 
the  yeomanry  of  England  are  rendered  as  fecure,  as  independent, 
and  as  refpe£table  as  law  can  make  them.  No  country,  therefore, 
in  which  the  right  of  primogeniture  talces  place,  which  pays  tithes, 
and  where  perpetuities,  though  contrary  to  the  fpirit  of  the  law,  are 
admitted  in  fome  cafes,  can  give  more  encouragement  to  agriculture 
than  England.  Such,  however,  notwithllanding,  is  the  (late  of 
its  Cultivation.  What  would  it  have  been,  had  the  law  given  no 
dire6l  encouragement  to  agriculture  befides  what  arifes  indireftly 
from  the  progrefs  of  commerce,  and  had  left  the  yeomaniy  in 
the  fame  condition  as  in  moft  other  countries  of  Europe  ?  It  is 
now  more  than  two  hundred  years  (ince  the  beginning  of  the  reign 
of  Elizabeth,  a  period  as  long  as  the  courfe  of  human  profperity 
nfiially  endures. 


3  T  2 


France 


So8 


BOOK 
III. 


THE    NATURE    AND    CAUSES    OP 

France  feems  to  have  had  a  conflderable  (hare  of  foreign  com- 
merce  near  a  century  before  England  was  diftinguiihed  as  a  com- 
mercial country.  The  marine  of  France  was  conflderable* 
according  to  the  notions  of  the  times,  before  the  expedition  of 
Charles  the  Vlllth  to  Naples.  The  cultivation  and  improvement 
pf  France,  however,  is,  upon  the  whole,  inferior  to  that  of 
England.  The  law  of  the  country  has  never  given  tho  fame 
dire£l  encouragement  to  agriculture.    ^  ,kc,  ,       ii  fijc? 


.^^ 


The  foreign  commerce  of  Spain  and  Portugal  to  the  other 
parts  of  Europe,  though  chiefly  carried  on  in  foreign  (hips,  it 
very  conflderable.  That  to  their  colonies  is  carried  on  in  their  own, 
and  is  much  greater,  on  account  of  the  great  riches  and  extent 
of  thofe  colonic?.  But  it  has  never  introduced  any  conflderable 
manufa£tures  for  diftant  fale  into  either  of  thofe  countries,  and 
the  greater  part  of  both  ftill  remains  uncultivated.  The  foreign 
commerce  of  Portugal  is  of  older  (landing  than  that  of  any  great 
country  in  Europe,  except  Italy. 

Italy  is  the  only  great  country  of  Europe  which  feems  t» 
have  been  cultivated  and  improved  in  every  part,  by  means  of 
foreign  commerce  and  manufa^ures  for  diflant  fale.  Before  i.!ie 
invaflon  of  Charles  the  VII  1th,  Italy,  according  to  Guicciardiu, . 
was  cultivated  not  lefs  in  the  moil  mountainous  and  barren  parts  • 
of  the  country,  than  in  the  plained  and  mod  fertile.  J  he  ad- 
vantageous frtuation  of  the  country,  and  the  great  number  of 
inde})endent  (latcs  which  at  that  time  fubfided  in  it,  probably 
contributed  not  a  little  to  this  general  cultivation.  It  is  not 
impoflible  too,  notwithflanding  this  general  expreffion  of  one 
of  the  mod  judicious  and   referved  of   modem  hidorians,    that 


THE    WEALTH    OF    NATIONS. 


5^9 


IV. 


Italy  was  not  at  that  time  better  cultivated  than  England  is  at  C  H^A  P, 
prefent* 

^ThB  capital,  however,  that  is  acquired  to  any  country  by  com- 
merce an'd  tnanufadhires,  is  all  a  very  precarious  and  uncertain 
pOflTefllon,  till  fome  part  of  it  has  been  fecured  and  realized  in  the 

"I 

cuttivatlon  and  improvement  of  its  lands.  A  merchant,  it  has 
been  faid  very  properly,  is  not  neceflkrily  the  citizen  of  an/  par- 
ticular  country.  It  is  in  a  great  meafure  indifferent  to  him  from 
What  place  he  carries  on  his  trade ;  and  a  very  trifling  difgud  will 
xhake  him  remove  his  capital,  and  together  with  it  ail  the  induftry 
which  it  fupports,  from  one  country  to  another.  No  part  of  it 
can  be  faid  to  belong  to  any  particular  country,  till  it  has  been 
Ipread  as  it  were  over  the  face  of  that  country,  either  in  buildings,  or 
in  the  Lifting  improvement  of  lands.  No  veftige  now  remains  of  the 
great  wealth,  faid  to  have  been  pofleffcd  by  the  greater  pait  of 
the  Hans  towns,  except  in  the  obfcure  hiftories  of  the  thirteenth 
and  fourteenth  centuries.  It  is  even  uncertain  where  fome  of  them 
were  fituatcd,  oi*  to>  what  towns  in  Europe  the  Latin  names  given 
to  fome  of  them  belong.  But  though  the  misfortunes  of  Italy 
in  the  end  of  the  fifteenth  and  beginning  of  the  lixteenth  cen- 
turies greatly  diminiflied  the  commerce  and  manufactures  of  the 
cities  of  Lombardy  and  Tufcany,  thole  countries  flill  continue 
to  be'  among  the  vmAx  populous  and  beil  cultivated  in  Europe. 
The  civil  wais  of  Flamlers,  and  the  Spanifli  government  which 
fuccecdcd  them,  cliafed  away  the  great  commerce  of  Antwerp, 
Ghent,  and  Bruges.  But  Flanders  (lill  continues  to  be  one  of 
the  richert,  befl  cultivated,,  and  molt  populous  provinces  of 
Europe,  The  ordinary  revolutions  of  war  and  government  eafdy 
dry :  up  the  fourccs  of  that  wealth  which  arises  from  commerce 
oujjfj,  That  which  aiifes  from  the  more  foUd  improvements  of 
'  5p         *  agriculture,, 


510 


THE    NATUkE    AND    CAUSES,  &c. 


III. 


B  Qp  K.  agricultuit,  is  much  more  dm-abie,  and  canntM:  be  deftroyed  iut 
by  thofe  more  violent  convulfions  occafloned  by  the  deprediUacttn 
of  hoftile  and  barbarous  nations  continued  for  a  century  or  two 
together  I  foch  fts-thofe  that  bs^peacd  for  tome  time  itefore  and 
after  the  fall  of  the  Roman  entire  u  the  weftern  ^ovioces  of 
Europe.  ;.,,„    .  ^  ^;..  ♦ 


Ejtd  of  die  TiKST  Volume. 


,>.   *■  >f-i.- 


ijfi-v'."  IT'  finr  iq  r 


.'?iJ/s*<*''