An Inquiry into the Nature and Causes of the Wealth of Nations

Adam Smith
1776
INTRODUCTION AND !AN O" T#$ WOR%
T#$ annual la&our of e'ery nation is the fund (hi)h
ori*inally su++lies it (ith all the ne)essaries and )on'enien)es
of life (hi)h it annually )onsumes, and (hi)h )onsist al(ays
either in the immediate +rodu)e of that la&our, or in (hat is
+ur)hased (ith that +rodu)e from other nations-
A))ordin* therefore as this +rodu)e, or (hat is +ur)hased
(ith it, &ears a *reater or smaller +ro+ortion to the num&er of
those (ho are to )onsume it, the nation (ill &e &etter or (orse
su++lied (ith all the ne)essaries and )on'enien)es for (hi)h it
has o))asion-
.ut this +ro+ortion must in e'ery nation &e re*ulated &y t(o
different )ir)umstan)es/ first, &y the s0ill, de1terity, and
2ud*ment (ith (hi)h its la&our is *enerally a++lied/ and,
se)ondly, &y the +ro+ortion &et(een the num&er of those (ho are
em+loyed in useful la&our, and that of those (ho are not so
em+loyed- Whate'er &e the soil, )limate, or e1tent of territory
of any +arti)ular nation, the a&undan)e or s)antiness of its
annual su++ly must, in that +arti)ular situation, de+end u+on
those t(o )ir)umstan)es-
The a&undan)e or s)antiness of this su++ly, too, seems to
de+end more u+on the former of those t(o )ir)umstan)es than u+on
the latter- Amon* the sa'a*e nations of hunters and fishers,
e'ery indi'idual (ho is a&le to (or0, is more or less em+loyed in
useful la&our, and endea'ours to +ro'ide, as (ell as he )an, the
ne)essaries and )on'enien)es of life, for himself, or su)h of his
family or tri&e as are either too old, or too youn*, or too
infirm to *o a huntin* and fishin*- Su)h nations, ho(e'er, are so
misera&ly +oor that, from mere (ant, they are frequently redu)ed,
or, at least, thin0 themsel'es redu)ed, to the ne)essity
sometimes of dire)tly destroyin*, and sometimes of a&andonin*
their infants, their old +eo+le, and those affli)ted (ith
lin*erin* diseases, to +erish (ith hun*er, or to &e de'oured &y
(ild &easts- Amon* )i'ilised and thri'in* nations, on the
)ontrary, thou*h a *reat num&er of +eo+le do not la&our at all,
many of (hom )onsume the +rodu)e of ten times, frequently of a
hundred times more la&our than the *reater +art of those (ho
(or0/ yet the +rodu)e of the (hole la&our of the so)iety is so
*reat that all are often a&undantly su++lied, and a (or0man, e'en
of the lo(est and +oorest order, if he is fru*al and industrious,
may en2oy a *reater share of the ne)essaries and )on'enien)es of
life than it is +ossi&le for any sa'a*e to a)quire-
The )auses of this im+ro'ement, in the +rodu)ti'e +o(ers of
la&our, and the order, a))ordin* to (hi)h its +rodu)e is
naturally distri&uted amon* the different ran0s and )onditions of
men in the so)iety, ma0e the su&2e)t of the first &oo0 of this
Inquiry-
Whate'er &e the a)tual state of the s0ill, de1terity, and
2ud*ment (ith (hi)h la&our is a++lied in any nation, the
a&undan)e or s)antiness of its annual su++ly must de+end, durin*
the )ontinuan)e of that state, u+on the +ro+ortion &et(een the
num&er of those (ho are annually em+loyed in useful la&our, and
that of those (ho are not so em+loyed- The num&er of useful and
+rodu)ti'e la&ourers, it (ill hereafter a++ear, is e'ery(here in
+ro+ortion to the quantity of )a+ital sto)0 (hi)h is em+loyed in
settin* them to (or0, and to the +arti)ular (ay in (hi)h it is so
em+loyed- The se)ond &oo0, therefore, treats of the nature of
)a+ital sto)0, of the manner in (hi)h it is *radually
a))umulated, and of the different quantities of la&our (hi)h it
+uts into motion, a))ordin* to the different (ays in (hi)h it is
em+loyed-
Nations tolera&ly (ell ad'an)ed as to s0ill, de1terity, and
2ud*ment, in the a++li)ation of la&our, ha'e follo(ed 'ery
different +lans in the *eneral )ondu)t or dire)tion of it/ those
+lans ha'e not all &een equally fa'oura&le to the *reatness of
its +rodu)e- The +oli)y of some nations has *i'en e1traordinary
en)oura*ement to the industry of the )ountry/ that of others to
the industry of to(ns- S)ar)e any nation has dealt equally and
im+artially (ith e'ery sort of industry- Sin)e the do(nfall of
the Roman em+ire, the +oli)y of $uro+e has &een more fa'oura&le
to arts, manufa)tures, and )ommer)e, the industry of to(ns, than
to a*ri)ulture, the industry of the )ountry- The )ir)umstan)es
(hi)h seem to ha'e introdu)ed and esta&lished this +oli)y are
e1+lained in the third &oo0-
Thou*h those different +lans (ere, +erha+s, first introdu)ed
&y the +ri'ate interests and +re2udi)es of +arti)ular orders of
men, (ithout any re*ard to, or foresi*ht of, their )onsequen)es
u+on the *eneral (elfare of the so)iety/ yet they ha'e *i'en
o))asion to 'ery different theories of +oliti)al e)onomy/ of
(hi)h some ma*nify the im+ortan)e of that industry (hi)h is
)arried on in to(ns, others of that (hi)h is )arried on in the
)ountry- Those theories ha'e had a )onsidera&le influen)e, not
only u+on the o+inions of men of learnin*, &ut u+on the +u&li)
)ondu)t of +rin)es and so'erei*n states- I ha'e endea'oured, in
the fourth &oo0, to e1+lain, as fully and distin)tly as I )an,
those different theories, and the +rin)i+al effe)ts (hi)h they
ha'e +rodu)ed in different a*es and nations-
To e1+lain in (hat has )onsisted the re'enue of the *reat
&ody of the +eo+le, or (hat has &een the nature of those funds
(hi)h, in different a*es and nations, ha'e su++lied their annual
)onsum+tion, is the o&2e)t of these four first &oo0s- The fifth
and last &oo0 treats of the re'enue of the so'erei*n, or
)ommon(ealth- In this &oo0 I ha'e endea'oured to sho(, first,
(hat are the ne)essary e1+enses of the so'erei*n, or
)ommon(ealth/ (hi)h of those e1+enses ou*ht to &e defrayed &y the
*eneral )ontri&ution of the (hole so)iety/ and (hi)h of them &y
that of some +arti)ular +art only, or of some +arti)ular mem&ers
of it3 se)ondly, (hat are the different methods in (hi)h the
(hole so)iety may &e made to )ontri&ute to(ards defrayin* the
e1+enses in)um&ent on the (hole so)iety, and (hat are the
+rin)i+al ad'anta*es and in)on'enien)es of ea)h of those methods3
and, thirdly and lastly, (hat are the reasons and )auses (hi)h
ha'e indu)ed almost all modern *o'ernments to mort*a*e some +art
of this re'enue, or to )ontra)t de&ts, and (hat ha'e &een the
effe)ts of those de&ts u+on the real (ealth, the annual +rodu)e
of the land and la&our of the so)iety-
.OO% ON$
O" T#$ CAUS$S O" I4RO5$4$NT IN T#$ RODUCTI5$ OW$RS- O" !A.OUR,
AND O" T#$ ORD$R ACCORDIN6 TO W#IC# ITS- RODUC$ IS NATURA!!7
DISTRI.UT$D A4ON6 T#$ DI""$R$NT RAN%S O" T#$ $O!$-
C#AT$R I
Of the Di'ision of !a&our
T#$ *reatest im+ro'ement in the +rodu)ti'e +o(ers of la&our,
and the *reater +art of the s0ill, de1terity, and 2ud*ment (ith
(hi)h it is any(here dire)ted, or a++lied, seem to ha'e &een the
effe)ts of the di'ision of la&our-
The effe)ts of the di'ision of la&our, in the *eneral
&usiness of so)iety, (ill &e more easily understood &y
)onsiderin* in (hat manner it o+erates in some +arti)ular
manufa)tures- It is )ommonly su++osed to &e )arried furthest in
some 'ery triflin* ones/ not +erha+s that it really is )arried
further in them than in others of more im+ortan)e3 &ut in those
triflin* manufa)tures (hi)h are destined to su++ly the small
(ants of &ut a small num&er of +eo+le, the (hole num&er of
(or0men must ne)essarily &e small/ and those em+loyed in e'ery
different &ran)h of the (or0 )an often &e )olle)ted into the same
(or0house, and +la)ed at on)e under the 'ie( of the s+e)tator- In
those *reat manufa)tures, on the )ontrary, (hi)h are destined to
su++ly the *reat (ants of the *reat &ody of the +eo+le, e'ery
different &ran)h of the (or0 em+loys so *reat a num&er of (or0men
that it is im+ossi&le to )olle)t them all into the same
(or0house- We )an seldom see more, at one time, than those
em+loyed in one sin*le &ran)h- Thou*h in su)h manufa)tures,
therefore, the (or0 may really &e di'ided into a mu)h *reater
num&er of +arts than in those of a more triflin* nature, the
di'ision is not near so o&'ious, and has a))ordin*ly &een mu)h
less o&ser'ed-
To ta0e an e1am+le, therefore, from a 'ery triflin*
manufa)ture/ &ut one in (hi)h the di'ision of la&our has &een
'ery often ta0en noti)e of, the trade of the +in8ma0er/ a (or0man
not edu)ated to this &usiness 9(hi)h the di'ision of la&our has
rendered a distin)t trade:, nor a)quainted (ith the use of the
ma)hinery em+loyed in it 9to the in'ention of (hi)h the same
di'ision of la&our has +ro&a&ly *i'en o))asion:, )ould s)ar)e,
+erha+s, (ith his utmost industry, ma0e one +in in a day, and
)ertainly )ould not ma0e t(enty- .ut in the (ay in (hi)h this
&usiness is no( )arried on, not only the (hole (or0 is a +e)uliar
trade, &ut it is di'ided into a num&er of &ran)hes, of (hi)h the
*reater +art are li0e(ise +e)uliar trades- One man dra(s out the
(ire, another strai*hts it, a third )uts it, a fourth +oints it,
a fifth *rinds it at the to+ for re)ei'in*, the head/ to ma0e the
head requires t(o or three distin)t o+erations/ to +ut it on is a
+e)uliar &usiness, to (hiten the +ins is another/ it is e'en a
trade &y itself to +ut them into the +a+er/ and the im+ortant
&usiness of ma0in* a +in is, in this manner, di'ided into a&out
ei*hteen distin)t o+erations, (hi)h, in some manufa)tories, are
all +erformed &y distin)t hands, thou*h in others the same man
(ill sometimes +erform t(o or three of them- I ha'e seen a small
manufa)tory of this 0ind (here ten men only (ere em+loyed, and
(here some of them )onsequently +erformed t(o or three distin)t
o+erations- .ut thou*h they (ere 'ery +oor, and therefore &ut
indifferently a))ommodated (ith the ne)essary ma)hinery, they
)ould, (hen they e1erted themsel'es, ma0e amon* them a&out t(el'e
+ounds of +ins in a day- There are in a +ound u+(ards of four
thousand +ins of a middlin* si;e- Those ten +ersons, therefore,
)ould ma0e amon* them u+(ards of forty8ei*ht thousand +ins in a
day- $a)h +erson, therefore, ma0in* a tenth +art of forty8ei*ht
thousand +ins, mi*ht &e )onsidered as ma0in* four thousand ei*ht
hundred +ins in a day- .ut if they had all (rou*ht se+arately and
inde+endently, and (ithout any of them ha'in* &een edu)ated to
this +e)uliar &usiness, they )ertainly )ould not ea)h of them
ha'e made t(enty, +erha+s not one +in in a day/ that is,
)ertainly, not the t(o hundred and fortieth, +erha+s not the four
thousand ei*ht hundredth +art of (hat they are at +resent )a+a&le
of +erformin*, in )onsequen)e of a +ro+er di'ision and
)om&ination of their different o+erations-
In e'ery other art and manufa)ture, the effe)ts of the
di'ision of la&our are similar to (hat they are in this 'ery
triflin* one/ thou*h, in many of them, the la&our )an neither &e
so mu)h su&di'ided, nor redu)ed to so *reat a sim+li)ity of
o+eration- The di'ision of la&our, ho(e'er, so far as it )an &e
introdu)ed, o))asions, in e'ery art, a +ro+ortiona&le in)rease of
the +rodu)ti'e +o(ers of la&our- The se+aration of different
trades and em+loyments from one another seems to ha'e ta0en +la)e
in )onsequen)e of this ad'anta*e- This se+aration, too, is
*enerally )alled furthest in those )ountries (hi)h en2oy the
hi*hest de*ree of industry and im+ro'ement/ (hat is the (or0 of
one man in a rude state of so)iety &ein* *enerally that of
se'eral in an im+ro'ed one- In e'ery im+ro'ed so)iety, the farmer
is *enerally nothin* &ut a farmer/ the manufa)turer, nothin* &ut
a manufa)turer- The la&our, too, (hi)h is ne)essary to +rodu)e
any one )om+lete manufa)ture is almost al(ays di'ided amon* a
*reat num&er of hands- #o( many different trades are em+loyed in
ea)h &ran)h of the linen and (oollen manufa)tures from the
*ro(ers of the fla1 and the (ool, to the &lea)hers and smoothers
of the linen, or to the dyers and dressers of the )loth< The
nature of a*ri)ulture, indeed, does not admit of so many
su&di'isions of la&our, nor of so )om+lete a se+aration of one
&usiness from another, as manufa)tures- It is im+ossi&le to
se+arate so entirely the &usiness of the *ra;ier from that of the
)orn8farmer as the trade of the )ar+enter is )ommonly se+arated
from that of the smith- The s+inner is almost al(ays a distin)t
+erson from the (ea'er/ &ut the +lou*hman, the harro(er, the
so(er of the seed, and the rea+er of the )orn, are often the
same- The o))asions for those different sorts of la&our returnin*
(ith the different seasons of the year, it is im+ossi&le that one
man should &e )onstantly em+loyed in any one of them- This
im+ossi&ility of ma0in* so )om+lete and entire a se+aration of
all the different &ran)hes of la&our em+loyed in a*ri)ulture is
+erha+s the reason (hy the im+ro'ement of the +rodu)ti'e +o(ers
of la&our in this art does not al(ays 0ee+ +a)e (ith their
im+ro'ement in manufa)tures- The most o+ulent nations, indeed,
*enerally e1)el all their nei*h&ours in a*ri)ulture as (ell as in
manufa)tures/ &ut they are )ommonly more distin*uished &y their
su+eriority in the latter than in the former- Their lands are in
*eneral &etter )ulti'ated, and ha'in* more la&our and e1+ense
&esto(ed u+on them, +rodu)e more in +ro+ortion to the e1tent and
natural fertility of the *round- .ut this su+eriority of +rodu)e
is seldom mu)h more than in +ro+ortion to the su+eriority of
la&our and e1+ense- In a*ri)ulture, the la&our of the ri)h
)ountry is not al(ays mu)h more +rodu)ti'e than that of the +oor/
or, at least, it is ne'er so mu)h more +rodu)ti'e as it )ommonly
is in manufa)tures- The )orn of the ri)h )ountry, therefore, (ill
not al(ays, in the same de*ree of *oodness, )ome )hea+er to
mar0et than that of the +oor- The )orn of oland, in the same
de*ree of *oodness, is as )hea+ as that of "ran)e,
not(ithstandin* the su+erior o+ulen)e and im+ro'ement of the
latter )ountry- The )orn of "ran)e is, in the )orn +ro'in)es,
fully as *ood, and in most years nearly a&out the same +ri)e (ith
the )orn of $n*land, thou*h, in o+ulen)e and im+ro'ement, "ran)e
is +erha+s inferior to $n*land- The )orn8lands of $n*land,
ho(e'er, are &etter )ulti'ated than those of "ran)e, and the
)orn8lands of "ran)e are said to &e mu)h &etter )ulti'ated than
those of oland- .ut thou*h the +oor )ountry, not(ithstandin* the
inferiority of its )ulti'ation, )an, in some measure, ri'al the
ri)h in the )hea+ness and *oodness of its )orn, it )an +retend to
no su)h )om+etition in its manufa)tures/ at least if those
manufa)tures suit the soil, )limate, and situation of the ri)h
)ountry- The sil0s of "ran)e are &etter and )hea+er than those of
$n*land, &e)ause the sil0 manufa)ture, at least under the +resent
hi*h duties u+on the im+ortation of ra( sil0, does not so (ell
suit the )limate of $n*land as that of "ran)e- .ut the hard(are
and the )oarse (oollens of $n*land are &eyond all )om+arison
su+erior to those of "ran)e, and mu)h )hea+er too in the same
de*ree of *oodness- In oland there are said to &e s)ar)e any
manufa)tures of any 0ind, a fe( of those )oarser household
manufa)tures e1)e+ted, (ithout (hi)h no )ountry )an (ell su&sist-
This *reat in)rease of the quantity of (or0 (hi)h, in
)onsequen)e of the di'ision of la&our, the same num&er of +eo+le
are )a+a&le of +erformin*, is o(in* to three different
)ir)umstan)es/ first, to the in)rease of de1terity in e'ery
+arti)ular (or0man/ se)ondly, to the sa'in* of the time (hi)h is
)ommonly lost in +assin* from one s+e)ies of (or0 to another/ and
lastly, to the in'ention of a *reat num&er of ma)hines (hi)h
fa)ilitate and a&rid*e la&our, and ena&le one man to do the (or0
of many-
"irst, the im+ro'ement of the de1terity of the (or0man
ne)essarily in)reases the quantity of the (or0 he )an +erform/
and the di'ision of la&our, &y redu)in* e'ery man=s &usiness to
some one sim+le o+eration, and &y ma0in* this o+eration the sole
em+loyment of his life, ne)essarily in)reased 'ery mu)h de1terity
of the (or0man- A )ommon smith, (ho, thou*h a))ustomed to handle
the hammer, has ne'er &een used to ma0e nails, if u+on some
+arti)ular o))asion he is o&li*ed to attem+t it, (ill s)ar)e, I
am assured, &e a&le to ma0e a&o'e t(o or three hundred nails in a
day, and those too 'ery &ad ones- A smith (ho has &een a))ustomed
to ma0e nails, &ut (hose sole or +rin)i+al &usiness has not &een
that of a nailer, )an seldom (ith his utmost dili*en)e ma0e more
than ei*ht hundred or a thousand nails in a day- I ha'e seen
se'eral &oys under t(enty years of a*e (ho had ne'er e1er)ised
any other trade &ut that of ma0in* nails, and (ho, (hen they
e1erted themsel'es, )ould ma0e, ea)h of them, u+(ards of t(o
thousand three hundred nails in a day- The ma0in* of a nail,
ho(e'er, is &y no means one of the sim+lest o+erations- The same
+erson &lo(s the &ello(s, stirs or mends the fire as there is
o))asion, heats the iron, and for*es e'ery +art of the nail3 in
for*in* the head too he is o&li*ed to )han*e his tools- The
different o+erations into (hi)h the ma0in* of a +in, or of a
metal &utton, is su&di'ided, are all of them mu)h more sim+le,
and the de1terity of the +erson, of (hose life it has &een the
sole &usiness to +erform them, is usually mu)h *reater- The
ra+idity (ith (hi)h some of the o+erations of those manufa)turers
are +erformed, e1)eeds (hat the human hand )ould, &y those (ho
had ne'er seen them, &e su++osed )a+a&le of a)quirin*-
Se)ondly, the ad'anta*e (hi)h is *ained &y sa'in* the time
)ommonly lost in +assin* from one sort of (or0 to another is mu)h
*reater than (e should at first 'ie( &e a+t to ima*ine it- It is
im+ossi&le to +ass 'ery qui)0ly from one 0ind of (or0 to another
that is )arried on in a different +la)e and (ith quite different
tools- A )ountry (ea'er, (ho )ulti'ates a small farm, must lose a
*ood deal of time in +assin* from his loom to the field, and from
the field to his loom- When the t(o trades )an &e )arried on in
the same (or0house, the loss of time is no dou&t mu)h less- It is
e'en in this )ase, ho(e'er, 'ery )onsidera&le- A man )ommonly
saunters a little in turnin* his hand from one sort of em+loyment
to another- When he first &e*ins the ne( (or0 he is seldom 'ery
0een and hearty/ his mind, as they say, does not *o to it, and
for some time he rather trifles than a++lies to *ood +ur+ose- The
ha&it of saunterin* and of indolent )areless a++li)ation, (hi)h
is naturally, or rather ne)essarily a)quired &y e'ery )ountry
(or0man (ho is o&li*ed to )han*e his (or0 and his tools e'ery
half hour, and to a++ly his hand in t(enty different (ays almost
e'ery day of his life, renders him almost al(ays slothful and
la;y, and in)a+a&le of any 'i*orous a++li)ation e'en on the most
+ressin* o))asions- Inde+endent, therefore, of his defi)ien)y in
+oint of de1terity, this )ause alone must al(ays redu)e
)onsidera&ly the quantity of (or0 (hi)h he is )a+a&le of
+erformin*-
Thirdly, and lastly, e'ery&ody must &e sensi&le ho( mu)h
la&our is fa)ilitated and a&rid*ed &y the a++li)ation of +ro+er
ma)hinery- It is unne)essary to *i'e any e1am+le- I shall only
o&ser'e, therefore, that the in'ention of all those ma)hines &y
(hi)h la&our is so mu)h fa)ilitated and a&rid*ed seems to ha'e
&een ori*inally o(in* to the di'ision of la&our- 4en are mu)h
more li0ely to dis)o'er easier and readier methods of attainin*
any o&2e)t (hen the (hole attention of their minds is dire)ted
to(ards that sin*le o&2e)t than (hen it is dissi+ated amon* a
*reat 'ariety of thin*s- .ut in )onsequen)e of the di'ision of
la&our, the (hole of e'ery man=s attention )omes naturally to &e
dire)ted to(ards some one 'ery sim+le o&2e)t- It is naturally to
&e e1+e)ted, therefore, that some one or other of those (ho are
em+loyed in ea)h +arti)ular &ran)h of la&our should soon find out
easier and readier methods of +erformin* their o(n +arti)ular
(or0, (here'er the nature of it admits of su)h im+ro'ement- A
*reat +art of the ma)hines made use of in those manufa)tures in
(hi)h la&our is most su&di'ided, (ere ori*inally the in'entions
of )ommon (or0men, (ho, &ein* ea)h of them em+loyed in some 'ery
sim+le o+eration, naturally turned their thou*hts to(ards findin*
out easier and readier methods of +erformin* it- Whoe'er has &een
mu)h a))ustomed to 'isit su)h manufa)tures must frequently ha'e
&een sho(n 'ery +retty ma)hines, (hi)h (ere the in'entions of
su)h (or0men in order to fa)ilitate and qui)0en their +arti)ular
+art of the (or0- In the first fire8en*ines, a &oy (as )onstantly
em+loyed to o+en and shut alternately the )ommuni)ation &et(een
the &oiler and the )ylinder, a))ordin* as the +iston either
as)ended or des)ended- One of those &oys, (ho lo'ed to +lay (ith
his )om+anions, o&ser'ed that, &y tyin* a strin* from the handle
of the 'al'e (hi)h o+ened this )ommuni)ation to another +art of
the ma)hine, the 'al'e (ould o+en and shut (ithout his
assistan)e, and lea'e him at li&erty to di'ert himself (ith his
+layfello(s- One of the *reatest im+ro'ements that has &een made
u+on this ma)hine, sin)e it (as first in'ented, (as in this
manner the dis)o'ery of a &oy (ho (anted to sa'e his o(n la&our-
All the im+ro'ements in ma)hinery, ho(e'er, ha'e &y no means
&een the in'entions of those (ho had o))asion to use the
ma)hines- 4any im+ro'ements ha'e &een made &y the in*enuity of
the ma0ers of the ma)hines, (hen to ma0e them &e)ame the &usiness
of a +e)uliar trade/ and some &y that of those (ho are )alled
+hiloso+hers or men of s+e)ulation, (hose trade it is not to do
anythin*, &ut to o&ser'e e'erythin*/ and (ho, u+on that a))ount,
are often )a+a&le of )om&inin* to*ether the +o(ers of the most
distant and dissimilar o&2e)ts- In the +ro*ress of so)iety,
+hiloso+hy or s+e)ulation &e)omes, li0e e'ery other em+loyment,
the +rin)i+al or sole trade and o))u+ation of a +arti)ular )lass
of )iti;ens- !i0e e'ery other em+loyment too, it is su&di'ided
into a *reat num&er of different &ran)hes, ea)h of (hi)h affords
o))u+ation to a +e)uliar tri&e or )lass of +hiloso+hers/ and this
su&di'ision of em+loyment in +hiloso+hy, as (ell as in e'ery
other &usiness, im+ro'es de1terity, and sa'es time- $a)h
indi'idual &e)omes more e1+ert in his o(n +e)uliar &ran)h, more
(or0 is done u+on the (hole, and the quantity of s)ien)e is
)onsidera&ly in)reased &y it-
It is the *reat multi+li)ation of the +rodu)tions of all the
different arts, in )onsequen)e of the di'ision of la&our, (hi)h
o))asions, in a (ell8*o'erned so)iety, that uni'ersal o+ulen)e
(hi)h e1tends itself to the lo(est ran0s of the +eo+le- $'ery
(or0man has a *reat quantity of his o(n (or0 to dis+ose of &eyond
(hat he himself has o))asion for/ and e'ery other (or0man &ein*
e1a)tly in the same situation, he is ena&led to e1)han*e a *reat
quantity of his o(n *oods for a *reat quantity, or, (hat )omes to
the same thin*, for the +ri)e of a *reat quantity of theirs- #e
su++lies them a&undantly (ith (hat they ha'e o))asion for, and
they a))ommodate him as am+ly (ith (hat he has o))asion for, and
a *eneral +lenty diffuses itself throu*h all the different ran0s
of the so)iety-
O&ser'e the a))ommodation of the most )ommon artifi)er or
day8la&ourer in a )i'ilised and thri'in* )ountry, and you (ill
+er)ei'e that the num&er of +eo+le of (hose industry a +art,
thou*h &ut a small +art, has &een em+loyed in +ro)urin* him this
a))ommodation, e1)eeds all )om+utation- The (oollen )oat, for
e1am+le, (hi)h )o'ers the day8la&ourer, as )oarse and rou*h as it
may a++ear, is the +rodu)e of the 2oint la&our of a *reat
multitude of (or0men- The she+herd, the sorter of the (ool, the
(ool8)om&er or )arder, the dyer, the s)ri&&ler, the s+inner, the
(ea'er, the fuller, the dresser, (ith many others, must all 2oin
their different arts in order to )om+lete e'en this homely
+rodu)tion- #o( many mer)hants and )arriers, &esides, must ha'e
&een em+loyed in trans+ortin* the materials from some of those
(or0men to others (ho often li'e in a 'ery distant +art of the
)ountry< #o( mu)h )ommer)e and na'i*ation in +arti)ular, ho( many
shi+8&uilders, sailors, sail8ma0ers, ro+e8ma0ers, must ha'e &een
em+loyed in order to &rin* to*ether the different dru*s made use
of &y the dyer, (hi)h often )ome from the remotest )orners of the
(orld< What a 'ariety of la&our, too, is ne)essary in order to
+rodu)e the tools of the meanest of those (or0men< To say nothin*
of su)h )om+li)ated ma)hines as the shi+ of the sailor, the mill
of the fuller, or e'en the loom of the (ea'er, let us )onsider
only (hat a 'ariety of la&our is requisite in order to form that
'ery sim+le ma)hine, the shears (ith (hi)h the she+herd )li+s the
(ool- The miner, the &uilder of the furna)e for smeltin* the ore,
the seller of the tim&er, the &urner of the )har)oal to &e made
use of in the smeltin*8house, the &ri)0ma0er, the &ri)08layer,
the (or0men (ho attend the furna)e, the mill8(ri*ht, the for*er,
the smith, must all of them 2oin their different arts in order to
+rodu)e them- Were (e to e1amine, in the same manner, all the
different +arts of his dress and household furniture, the )oarse
linen shirt (hi)h he (ears ne1t his s0in, the shoes (hi)h )o'er
his feet, the &ed (hi)h he lies on, and all the different +arts
(hi)h )om+ose it, the 0it)hen8*rate at (hi)h he +re+ares his
'i)tuals, the )oals (hi)h he ma0es use of for that +ur+ose, du*
from the &o(els of the earth, and &rou*ht to him +erha+s &y a
lon* sea and a lon* land )arria*e, all the other utensils of his
0it)hen, all the furniture of his ta&le, the 0ni'es and for0s,
the earthen or +e(ter +lates u+on (hi)h he ser'es u+ and di'ides
his 'i)tuals, the different hands em+loyed in +re+arin* his &read
and his &eer, the *lass (indo( (hi)h lets in the heat and the
li*ht, and 0ee+s out the (ind and the rain, (ith all the
0no(led*e and art requisite for +re+arin* that &eautiful and
ha++y in'ention, (ithout (hi)h these northern +arts of the (orld
)ould s)ar)e ha'e afforded a 'ery )omforta&le ha&itation,
to*ether (ith the tools of all the different (or0men em+loyed in
+rodu)in* those different )on'enien)es/ if (e e1amine, I say, all
these thin*s, and )onsider (hat a 'ariety of la&our is em+loyed
a&out ea)h of them, (e shall &e sensi&le that, (ithout the
assistan)e and )o8o+eration of many thousands, the 'ery meanest
+erson in a )i'ilised )ountry )ould not &e +ro'ided, e'en
a))ordin* to (hat (e 'ery falsely ima*ine the easy and sim+le
manner in (hi)h he is )ommonly a))ommodated- Com+ared, indeed,
(ith the more e1tra'a*ant lu1ury of the *reat, his a))ommodation
must no dou&t a++ear e1tremely sim+le and easy/ and yet it may &e
true, +erha+s, that the a))ommodation of a $uro+ean +rin)e does
not al(ays so mu)h e1)eed that of an industrious and fru*al
+easant as the a))ommodation of the latter e1)eeds that of many
an Afri)an 0in*, the a&solute master of the li'es and li&erties
of ten thousand na0ed sa'a*es-
C#AT$R II
Of the rin)i+le (hi)h *i'es o))asion to the Di'ision of !a&our
T#IS di'ision of la&our, from (hi)h so many ad'anta*es are
deri'ed, is not ori*inally the effe)t of any human (isdom, (hi)h
foresees and intends that *eneral o+ulen)e to (hi)h it *i'es
o))asion- It is the ne)essary, thou*h 'ery slo( and *radual
)onsequen)e of a )ertain +ro+ensity in human nature (hi)h has in
'ie( no su)h e1tensi'e utility/ the +ro+ensity to tru)0, &arter,
and e1)han*e one thin* for another-
Whether this +ro+ensity &e one of those ori*inal +rin)i+les
in human nature of (hi)h no further a))ount )an &e *i'en/ or
(hether, as seems more +ro&a&le, it &e the ne)essary )onsequen)e
of the fa)ulties of reason and s+ee)h, it &elon*s not to our
+resent su&2e)t to inquire- It is )ommon to all men, and to &e
found in no other ra)e of animals, (hi)h seem to 0no( neither
this nor any other s+e)ies of )ontra)ts- T(o *reyhounds, in
runnin* do(n the same hare, ha'e sometimes the a++earan)e of
a)tin* in some sort of )on)ert- $a)h turns her to(ards his
)om+anion, or endea'ours to inter)e+t her (hen his )om+anion
turns her to(ards himself- This, ho(e'er, is not the effe)t of
any )ontra)t, &ut of the a))idental )on)urren)e of their +assions
in the same o&2e)t at that +arti)ular time- No&ody e'er sa( a do*
ma0e a fair and deli&erate e1)han*e of one &one for another (ith
another do*- No&ody e'er sa( one animal &y its *estures and
natural )ries si*nify to another, this is mine, that yours/ I am
(illin* to *i'e this for that- When an animal (ants to o&tain
somethin* either of a man or of another animal, it has no other
means of +ersuasion &ut to *ain the fa'our of those (hose ser'i)e
it requires- A +u++y fa(ns u+on its dam, and a s+aniel endea'ours
&y a thousand attra)tions to en*a*e the attention of its master
(ho is at dinner, (hen it (ants to &e fed &y him- 4an sometimes
uses the same arts (ith his &rethren, and (hen he has no other
means of en*a*in* them to a)t a))ordin* to his in)linations,
endea'ours &y e'ery ser'ile and fa(nin* attention to o&tain their
*ood (ill- #e has not time, ho(e'er, to do this u+on e'ery
o))asion- In )i'ilised so)iety he stands at all times in need of
the )oo+eration and assistan)e of *reat multitudes, (hile his
(hole life is s)ar)e suffi)ient to *ain the friendshi+ of a fe(
+ersons- In almost e'ery other ra)e of animals ea)h indi'idual,
(hen it is *ro(n u+ to maturity, is entirely inde+endent, and in
its natural state has o))asion for the assistan)e of no other
li'in* )reature- .ut man has almost )onstant o))asion for the
hel+ of his &rethren, and it is in 'ain for him to e1+e)t it from
their &ene'olen)e only- #e (ill &e more li0ely to +re'ail if he
)an interest their self8lo'e in his fa'our, and sho( them that it
is for their o(n ad'anta*e to do for him (hat he requires of
them- Whoe'er offers to another a &ar*ain of any 0ind, +ro+oses
to do this- 6i'e me that (hi)h I (ant, and you shall ha'e this
(hi)h you (ant, is the meanin* of e'ery su)h offer/ and it is in
this manner that (e o&tain from one another the far *reater +art
of those *ood offi)es (hi)h (e stand in need of- It is not from
the &ene'olen)e of the &ut)her, the &re(er, or the &a0er that (e
e1+e)t our dinner, &ut from their re*ard to their o(n interest-
We address oursel'es, not to their humanity &ut to their
self8lo'e, and ne'er tal0 to them of our o(n ne)essities &ut of
their ad'anta*es- No&ody &ut a &e**ar )hooses to de+end )hiefly
u+on the &ene'olen)e of his fello(8)iti;ens- $'en a &e**ar does
not de+end u+on it entirely- The )harity of (ell8dis+osed +eo+le,
indeed, su++lies him (ith the (hole fund of his su&sisten)e- .ut
thou*h this +rin)i+le ultimately +ro'ides him (ith all the
ne)essaries of life (hi)h he has o))asion for, it neither does
nor )an +ro'ide him (ith them as he has o))asion for them- The
*reater +art of his o))asional (ants are su++lied in the same
manner as those of other +eo+le, &y treaty, &y &arter, and &y
+ur)hase- With the money (hi)h one man *i'es him he +ur)hases
food- The old )lothes (hi)h another &esto(s u+on him he e1)han*es
for other old )lothes (hi)h suit him &etter, or for lod*in*, or
for food, or for money, (ith (hi)h he )an &uy either food,
)lothes, or lod*in*, as he has o))asion-
As it is &y treaty, &y &arter, and &y +ur)hase that (e
o&tain from one another the *reater +art of those mutual *ood
offi)es (hi)h (e stand in need of, so it is this same tru)0in*
dis+osition (hi)h ori*inally *i'es o))asion to the di'ision of
la&our- In a tri&e of hunters or she+herds a +arti)ular +erson
ma0es &o(s and arro(s, for e1am+le, (ith more readiness and
de1terity than any other- #e frequently e1)han*es them for )attle
or for 'enison (ith his )om+anions/ and he finds at last that he
)an in this manner *et more )attle and 'enison than if he himself
(ent to the field to )at)h them- "rom a re*ard to his o(n
interest, therefore, the ma0in* of &o(s and arro(s *ro(s to &e
his )hief &usiness, and he &e)omes a sort of armourer- Another
e1)els in ma0in* the frames and )o'ers of their little huts or
mo'a&le houses- #e is a))ustomed to &e of use in this (ay to his
nei*h&ours, (ho re(ard him in the same manner (ith )attle and
(ith 'enison, till at last he finds it his interest to dedi)ate
himself entirely to this em+loyment, and to &e)ome a sort of
house8)ar+enter- In the same manner a third &e)omes a smith or a
&ra;ier, a fourth a tanner or dresser of hides or s0ins, the
+rin)i+al +art of the nothin* of sa'a*es- And thus the )ertainty
of &ein* a&le to e1)han*e all that sur+lus +art of the +rodu)e of
his o(n la&our, (hi)h is o'er and a&o'e his o(n )onsum+tion, for
su)h +arts of the +rodu)e of other men=s la&our as he may ha'e
o))asion for, en)oura*es e'ery man to a++ly himself to a
+arti)ular o))u+ation, and to )ulti'ate and &rin* to +erfe)tion
(hate'er talent or *enius he may +ossess for that +arti)ular
s+e)ies of &usiness-
The differen)e of natural talents in different men is, in
reality, mu)h less than (e are a(are of/ and the 'ery different
*enius (hi)h a++ears to distin*uish men of different +rofessions,
(hen *ro(n u+ to maturity, is not u+on many o))asions so mu)h the
)ause as the effe)t of the di'ision of la&our- The differen)e
&et(een the most dissimilar )hara)ters, &et(een a +hiloso+her and
a )ommon street +orter, for e1am+le, seems to arise not so mu)h
from nature as from ha&it, )ustom, and edu)ation- When they )ame
into the (orld, and for the first si1 or ei*ht years of their
e1isten)e, they (ere +erha+s 'ery mu)h ali0e, and neither their
+arents nor +layfello(s )ould +er)ei'e any remar0a&le differen)e-
A&out that a*e, or soon after, they )ome to &e em+loyed in 'ery
different o))u+ations- The differen)e of talents )omes then to &e
ta0en noti)e of, and (idens &y de*rees, till at last the 'anity
of the +hiloso+her is (illin* to a)0no(led*e s)ar)e any
resem&lan)e- .ut (ithout the dis+osition to tru)0, &arter, and
e1)han*e, e'ery man must ha'e +ro)ured to himself e'ery ne)essary
and )on'enien)y of life (hi)h he (anted- All must ha'e had the
same duties to +erform, and the same (or0 to do, and there )ould
ha'e &een no su)h differen)e of em+loyment as )ould alone *i'e
o))asion to any *reat differen)e of talents-
As it is this dis+osition (hi)h forms that differen)e of
talents, so remar0a&le amon* men of different +rofessions, so it
is this same dis+osition (hi)h renders that differen)e useful-
4any tri&es of animals a)0no(led*ed to &e all of the same s+e)ies
deri'e from nature a mu)h more remar0a&le distin)tion of *enius,
than (hat, ante)edent to )ustom and edu)ation, a++ears to ta0e
+la)e amon* men- .y nature a +hiloso+her is not in *enius and
dis+osition half so different from a street +orter, as a mastiff
is from a *reyhound, or a *reyhound from a s+aniel, or this last
from a she+herd=s do*- Those different tri&es of animals,
ho(e'er, thou*h all of the same s+e)ies, are of s)ar)e any use to
one another- The stren*th of the mastiff is not, in the least,
su++orted either &y the s(iftness of the *reyhound, or &y the
sa*a)ity of the s+aniel, or &y the do)ility of the she+herd=s
do*- The effe)ts of those different *eniuses and talents, for
(ant of the +o(er or dis+osition to &arter and e1)han*e, )annot
&e &rou*ht into a )ommon sto)0, and do not in the least
)ontri&ute to the &etter a))ommodation ind )on'enien)y of the
s+e)ies- $a)h animal is still o&li*ed to su++ort and defend
itself, se+arately and inde+endently, and deri'es no sort of
ad'anta*e from that 'ariety of talents (ith (hi)h nature has
distin*uished its fello(s- Amon* men, on the )ontrary, the most
dissimilar *eniuses are of use to one another/ the different
+rodu)es of their res+e)ti'e talents, &y the *eneral dis+osition
to tru)0, &arter, and e1)han*e, &ein* &rou*ht, as it (ere, into a
)ommon sto)0, (here e'ery man may +ur)hase (hate'er +art of the
+rodu)e of other men=s talents he has o))asion for-
C#AT$R III
That the Di'ision of !a&our is limited &y the $1tent of the
4ar0et
AS it is the +o(er of e1)han*in* that *i'es o))asion to the
di'ision of la&our, so the e1tent of this di'ision must al(ays &e
limited &y the e1tent of that +o(er, or, in other (ords, &y the
e1tent of the mar0et- When the mar0et is 'ery small, no +erson
)an ha'e any en)oura*ement to dedi)ate himself entirely to one
em+loyment, for (ant of the +o(er to e1)han*e all that sur+lus
+art of the +rodu)e of his o(n la&our, (hi)h is o'er and a&o'e
his o(n )onsum+tion, for su)h +arts of the +rodu)e of other men=s
la&our as he has o))asion for-
There are some sorts of industry, e'en of the lo(est 0ind,
(hi)h )an &e )arried on no(here &ut in a *reat to(n- A +orter,
for e1am+le, )an find em+loyment and su&sisten)e in no other
+la)e- A 'illa*e is &y mu)h too narro( a s+here for him/ e'en an
ordinary mar0et to(n is s)ar)e lar*e enou*h to afford him
)onstant o))u+ation- In the lone houses and 'ery small 'illa*es
(hi)h are s)attered a&out in so desert a )ountry as the #i*hlands
of S)otland, e'ery farmer must &e &ut)her, &a0er and &re(er for
his o(n family- In su)h situations (e )an s)ar)e e1+e)t to find
e'en a smith, a )ar+enter, or a mason, (ithin less than t(enty
miles of another of the same trade- The s)attered families that
li'e at ei*ht or ten miles distan)e from the nearest of them must
learn to +erform themsel'es a *reat num&er of little +ie)es of
(or0, for (hi)h, in more +o+ulous )ountries, they (ould )all in
the assistan)e of those (or0men- Country (or0men are almost
e'ery(here o&li*ed to a++ly themsel'es to all the different
&ran)hes of industry that ha'e so mu)h affinity to one another as
to &e em+loyed a&out the same sort of materials- A )ountry
)ar+enter deals in e'ery sort of (or0 that is made of (ood3 a
)ountry smith in e'ery sort of (or0 that is made of iron- The
former is not only a )ar+enter, &ut a 2oiner, a )a&inet8ma0er,
and e'en a )ar'er in (ood, as (ell as a (heel8(ri*ht, a
+lou*h8(ri*ht, a )art and (a**on ma0er- The em+loyments of the
latter are still more 'arious- It is im+ossi&le there should &e
su)h a trade as e'en that of a nailer in the remote and inland
+arts of the #i*hlands of S)otland- Su)h a (or0man at the rate of
a thousand nails a day, and three hundred (or0in* days in the
year, (ill ma0e three hundred thousand nails in the year- .ut in
su)h a situation it (ould &e im+ossi&le to dis+ose of one
thousand, that is, of one day=s (or0 in the year-
As &y means of (ater8)arria*e a more e1tensi'e mar0et is
o+ened to e'ery sort of industry than (hat land8)arria*e alone
)an afford it, so it is u+on the sea8)oast, and alon* the &an0s
of na'i*a&le ri'ers, that industry of e'ery 0ind naturally &e*ins
to su&di'ide and im+ro'e itself, and it is frequently not till a
lon* time after that those im+ro'ements e1tend themsel'es to the
inland +arts of the )ountry- A &road8(heeled (a**on, attended &y
t(o men, and dra(n &y ei*ht horses, in a&out si1 (ee0s= time
)arries and &rin*s &a)0 &et(een !ondon and $din&ur*h near four
ton (ei*ht of *oods- In a&out the same time a shi+ na'i*ated &y
si1 or ei*ht men, and sailin* &et(een the +orts of !ondon and
!eith, frequently )arries and &rin*s &a)0 t(o hundred ton (ei*ht
of *oods- Si1 or ei*ht men, therefore, &y the hel+ of
(ater8)arria*e, )an )arry and &rin* &a)0 in the same time the
same quantity of *oods &et(een !ondon and $din&ur*h, as fifty
&road8(heeled (a**ons, attended &y a hundred men, and dra(n &y
four hundred horses- U+on t(o hundred tons of *oods, therefore,
)arried &y the )hea+est land8)arria*e from !ondon to $din&ur*h,
there must &e )har*ed the maintenan)e of a hundred men for three
(ee0s, and &oth the maintenan)e, and, (hat is nearly equal to the
maintenan)e, the (ear and tear of four hundred horses as (ell as
of fifty *reat (a**ons- Whereas, u+on the same quantity of *oods
)arried &y (ater, there is to &e )har*ed only the maintenan)e of
si1 or ei*ht men, and the (ear and tear of a shi+ of t(o hundred
tons &urden, to*ether (ith the 'alue of the su+erior ris0, or the
differen)e of the insuran)e &et(een land and (ater8)arria*e- Were
there no other )ommuni)ation &et(een those t(o +la)es, therefore,
&ut &y land8)arria*e, as no *oods )ould &e trans+orted from the
one to the other, e1)e+t su)h (hose +ri)e (as 'ery )onsidera&le
in +ro+ortion to their (ei*ht, they )ould )arry on &ut a small
+art of that )ommer)e (hi)h at +resent su&sists &et(een them, and
)onsequently )ould *i'e &ut a small +art of that en)oura*ement
(hi)h they at +resent mutually afford to ea)h other=s industry-
There )ould &e little or no )ommer)e of any 0ind &et(een the
distant +arts of the (orld- What *oods )ould &ear the e1+ense of
land8)arria*e &et(een !ondon and Cal)utta> Or if there (ere any
so +re)ious as to &e a&le to su++ort this e1+ense, (ith (hat
safety )ould they &e trans+orted throu*h the territories of so
many &ar&arous nations> Those t(o )ities, ho(e'er, at +resent
)arry on a 'ery )onsidera&le )ommer)e (ith ea)h other, and &y
mutually affordin* a mar0et, *i'e a *ood deal of en)oura*ement to
ea)h other=s industry-
Sin)e su)h, therefore, are the ad'anta*es of (ater8)arria*e,
it is natural that the first im+ro'ements of art and industry
should &e made (here this )on'enien)y o+ens the (hole (orld for a
mar0et to the +rodu)e of e'ery sort of la&our, and that they
should al(ays &e mu)h later in e1tendin* themsel'es into the
inland +arts of the )ountry- The inland +arts of the )ountry )an
for a lon* time ha'e no other mar0et for the *reater +art of
their *oods, &ut the )ountry (hi)h lies round a&out them, and
se+arates them from the sea8)oast, and the *reat na'i*a&le
ri'ers- The e1tent of their mar0et, therefore, must for a lon*
time &e in +ro+ortion to the ri)hes and +o+ulousness of that
)ountry, and )onsequently their im+ro'ement must al(ays &e
+osterior to the im+ro'ement of that )ountry- In our North
Ameri)an )olonies the +lantations ha'e )onstantly follo(ed either
the sea8)oast or the &an0s of the na'i*a&le ri'ers, and ha'e
s)ar)e any(here e1tended themsel'es to any )onsidera&le distan)e
from &oth-
The nations that, a))ordin* to the &est authenti)ated
history, a++ear to ha'e &een first )i'ilised, (ere those that
d(elt round the )oast of the 4editerranean Sea- That sea, &y far
the *reatest inlet that is 0no(n in the (orld, ha'in* no tides,
nor )onsequently any (a'es e1)e+t su)h as are )aused &y the (ind
only, (as, &y the smoothness of its surfa)e, as (ell as &y the
multitude of its islands, and the +ro1imity of its nei*h&ourin*
shores, e1tremely fa'oura&le to the infant na'i*ation of the
(orld/ (hen, from their i*noran)e of the )om+ass, men (ere afraid
to quit the 'ie( of the )oast, and from the im+erfe)tion of the
art of shi+&uildin*, to a&andon themsel'es to the &oisterous
(a'es of the o)ean- To +ass &eyond the +illars of #er)ules, that
is, to sail out of the Straits of 6i&raltar, (as, in the an)ient
(orld, lon* )onsidered as a most (onderful and dan*erous e1+loit
of na'i*ation- It (as late &efore e'en the hoeni)ians and
Cartha*inians, the most s0ilful na'i*ators and shi+8&uilders of
those old times, attem+ted it, and they (ere for a lon* time the
only nations that did attem+t it-
Of all the )ountries on the )oast of the 4editerranean Sea,
$*y+t seems to ha'e &een the first in (hi)h either a*ri)ulture or
manufa)tures (ere )ulti'ated and im+ro'ed to any )onsidera&le
de*ree- U++er $*y+t e1tends itself no(here a&o'e a fe( miles from
the Nile, and in !o(er $*y+t that *reat ri'er &rea0s itself into
many different )anals, (hi)h, (ith the assistan)e of a little
art, seem to ha'e afforded a )ommuni)ation &y (ater8)arria*e, not
only &et(een all the *reat to(ns, &ut &et(een all the
)onsidera&le 'illa*es, and e'en to many farmhouses in the
)ountry/ nearly in the same manner as the Rhine and the 4aas do
in #olland at +resent- The e1tent and easiness of this inland
na'i*ation (as +ro&a&ly one of the +rin)i+al )auses of the early
im+ro'ement of $*y+t-
The im+ro'ements in a*ri)ulture and manufa)tures seem
li0e(ise to ha'e &een of 'ery *reat antiquity in the +ro'in)es of
.en*al, in the $ast Indies, and in some of the eastern +ro'in)es
of China/ thou*h the *reat e1tent of this antiquity is not
authenti)ated &y any histories of (hose authority (e, in this
+art of the (orld, are (ell assured- In .en*al the 6an*es and
se'eral other *reat ri'ers form a *reat num&er of na'i*a&le
)anals in the same manner as the Nile does in $*y+t- In the
$astern +ro'in)es of China too, se'eral *reat ri'ers form, &y
their different &ran)hes, a multitude of )anals, and &y
)ommuni)atin* (ith one another afford an inland na'i*ation mu)h
more e1tensi'e than that either of the Nile or the 6an*es, or
+erha+s than &oth of them +ut to*ether- It is remar0a&le that
neither the an)ient $*y+tians, nor the Indians, nor the Chinese,
en)oura*ed forei*n )ommer)e, &ut seem all to ha'e deri'ed their
*reat o+ulen)e from this inland na'i*ation-
All the inland +arts of Afri)a, and all that +art of Asia
(hi)h lies any )onsidera&le (ay north of the $u1ine and Cas+ian
seas, the an)ient S)ythia, the modern Tartary and Si&eria, seem
in all a*es of the (orld to ha'e &een in the same &ar&arous and
un)i'ilised state in (hi)h (e find them at +resent- The Sea of
Tartary is the fro;en o)ean (hi)h admits of no na'i*ation, and
thou*h some of the *reatest ri'ers in the (orld run throu*h that
)ountry, they are at too *reat a distan)e from one another to
)arry )ommer)e and )ommuni)ation throu*h the *reater +art of it-
There are in Afri)a none of those *reat inlets, su)h as the
.alti) and Adriati) seas in $uro+e, the 4editerranean and $u1ine
seas in &oth $uro+e and Asia, and the *ulfs of Ara&ia, ersia,
India, .en*al, and Siam, in Asia, to )arry maritime )ommer)e into
the interior +arts of that *reat )ontinent3 and the *reat ri'ers
of Afri)a are at too *reat a distan)e from one another to *i'e
o))asion to any )onsidera&le inland na'i*ation- The )ommer)e
&esides (hi)h any nation )an )arry on &y means of a ri'er (hi)h
does not &rea0 itself into any *reat num&er of &ran)hes or
)anals, and (hi)h runs into another territory &efore it rea)hes
the sea, )an ne'er &e 'ery )onsidera&le/ &e)ause it is al(ays in
the +o(er of the nations (ho +ossess that other territory to
o&stru)t the )ommuni)ation &et(een the u++er )ountry and the sea-
The na'i*ation of the Danu&e is of 'ery little use to the
different states of .a'aria, Austria and #un*ary, in )om+arison
of (hat it (ould &e if any of them +ossessed the (hole of its
)ourse till it falls into the .la)0 Sea-
C#AT$R I5
Of the Ori*in and Use of 4oney
W#$N the di'ision of la&our has &een on)e thorou*hly
esta&lished, it is &ut a 'ery small +art of a man=s (ants (hi)h
the +rodu)e of his o(n la&our )an su++ly- #e su++lies the far
*reater +art of them &y e1)han*in* that sur+lus +art of the
+rodu)e of his o(n la&our, (hi)h is o'er and a&o'e his o(n
)onsum+tion, for su)h +arts of the +rodu)e of other men=s la&our
as he has o))asion for- $'ery man thus li'es &y e1)han*in*, or
&e)omes in some measure a mer)hant, and the so)iety itself *ro(s
to &e (hat is +ro+erly a )ommer)ial so)iety-
.ut (hen the di'ision of la&our first &e*an to ta0e +la)e,
this +o(er of e1)han*in* must frequently ha'e &een 'ery mu)h
)lo**ed and em&arrassed in its o+erations- One man, (e shall
su++ose, has more of a )ertain )ommodity than he himself has
o))asion for, (hile another has less- The former )onsequently
(ould &e *lad to dis+ose of, and the latter to +ur)hase, a +art
of this su+erfluity- .ut if this latter should )han)e to ha'e
nothin* that the former stands in need of, no e1)han*e )an &e
made &et(een them- The &ut)her has more meat in his sho+ than he
himself )an )onsume, and the &re(er and the &a0er (ould ea)h of
them &e (illin* to +ur)hase a +art of it- .ut they ha'e nothin*
to offer in e1)han*e, e1)e+t the different +rodu)tions of their
res+e)ti'e trades, and the &ut)her is already +ro'ided (ith all
the &read and &eer (hi)h he has immediate o))asion for- No
e1)han*e )an, in this )ase, &e made &et(een them- #e )annot &e
their mer)hant, nor they his )ustomers/ and they are all of them
thus mutually less ser'i)ea&le to one another- In order to a'oid
the in)on'enien)y of su)h situations, e'ery +rudent man in e'ery
+eriod of so)iety, after the first esta&lishment of the di'ision
of la&our, must naturally ha'e endea'oured to mana*e his affairs
in su)h a manner as to ha'e at alltimes &y him, &esides the
+e)uliar +rodu)e of his o(n industry, a )ertain quantity of some
one )ommodity or other, su)h as he ima*ined fe( +eo+le (ould &e
li0ely to refuse in e1)han*e for the +rodu)e of their industry-
4any different )ommodities, it is +ro&a&le, (ere
su))essi'ely &oth thou*ht of and em+loyed for this +ur+ose- In
the rude a*es of so)iety, )attle are said to ha'e &een the )ommon
instrument of )ommer)e/ and, thou*h they must ha'e &een a most
in)on'enient one, yet in old times (e find thin*s (ere frequently
'alued a))ordin* to the num&er of )attle (hi)h had &een *i'en in
e1)han*e for them- The armour of Diomede, says #omer, )ost only
nine o1en/ &ut that of 6lau)us )ost an hundred o1en- Salt is said
to &e the )ommon instrument of )ommer)e and e1)han*es in
A&yssinia/ a s+e)ies of shells in some +arts of the )oast of
India/ dried )od at Ne(foundland/ to&a))o in 5ir*inia/ su*ar in
some of our West India )olonies/ hides or dressed leather in some
other )ountries/ and there is at this day a 'illa*e in S)otland
(here it is not un)ommon, I am told, for a (or0man to )arry nails
instead of money to the &a0er=s sho+ or the alehouse-
In all )ountries, ho(e'er, men seem at last to ha'e &een
determined &y irresisti&le reasons to *i'e the +referen)e, for
this em+loyment, to metals a&o'e e'ery other )ommodity- 4etals
)an not only &e 0e+t (ith as little loss as any other )ommodity,
s)ar)e anythin* &ein* less +erisha&le than they are, &ut they )an
li0e(ise, (ithout any loss, &e di'ided into any num&er of +arts,
as &y fusion those +arts )an easily &e reunited a*ain/ a quality
(hi)h no other equally dura&le )ommodities +ossess, and (hi)h
more than any other quality renders them fit to &e the
instruments of )ommer)e and )ir)ulation- The man (ho (anted to
&uy salt, for e1am+le, and had nothin* &ut )attle to *i'e in
e1)han*e for it, must ha'e &een o&li*ed to &uy salt to the 'alue
of a (hole o1, or a (hole shee+ at a time- #e )ould seldom &uy
less than this, &e)ause (hat he (as to *i'e for it )ould seldom
&e di'ided (ithout loss/ and if he had a mind to &uy more, he
must, for the same reasons, ha'e &een o&li*ed to &uy dou&le or
tri+le the quantity, the 'alue, to (it, of t(o or three o1en, or
of t(o or three shee+- If, on the )ontrary, instead of shee+ or
o1en, he had metals to *i'e in e1)han*e for it, he )ould easily
+ro+ortion the quantity of the metal to the +re)ise quantity of
the )ommodity (hi)h he had immediate o))asion for-
Different metals ha'e &een made use of &y different nations
for this +ur+ose- Iron (as the )ommon instrument of )ommer)e
amon* the an)ient S+artans/ )o++er amon* the an)ient Romans/ and
*old and sil'er amon* all ri)h and )ommer)ial nations-
Those metals seem ori*inally to ha'e &een made use of for
this +ur+ose in rude &ars, (ithout any stam+ or )oina*e- Thus (e
are told &y liny, u+on the authority of Timaeus, an an)ient
historian, that, till the time of Ser'ius Tullius, the Romans had
no )oined money, &ut made use of unstam+ed &ars of )o++er, to
+ur)hase (hate'er they had o))asion for- These &ars, therefore,
+erformed at this time the fun)tion of money-
The use of metals in this rude state (as attended (ith t(o
'ery )onsidera&le in)on'enien)ies/ first, (ith the trou&le of
(ei*hin*/ and, se)ondly, (ith that of assayin* them- In the
+re)ious metals, (here a small differen)e in the quantity ma0es a
*reat differen)e in the 'alue, e'en the &usiness of (ei*hin*,
(ith +ro+er e1a)tness, requires at least 'ery a))urate (ei*hts
and s)ales- The (ei*hin* of *old in +arti)ular is an o+eration of
some ni)ety- In the )oarser metals, indeed, (here a small error
(ould &e of little )onsequen)e, less a))ura)y (ould, no dou&t, &e
ne)essary- 7et (e should find it e1)essi'ely trou&lesome, if
e'ery time a +oor man had o))asion either to &uy or sell a
farthin*=s (orth of *oods, he (as o&li*ed to (ei*h the farthin*-
The o+eration of assayin* is still more diffi)ult, still more
tedious, and, unless a +art of the metal is fairly melted in the
)ru)i&le, (ith +ro+er dissol'ents, any )on)lusion that )an &e
dra(n from it, is e1tremely un)ertain- .efore the institution of
)oined money, ho(e'er, unless they (ent throu*h this tedious and
diffi)ult o+eration, +eo+le must al(ays ha'e &een lia&le to the
*rossest frauds and im+ositions, and instead of a +ound (ei*ht of
+ure sil'er, or +ure )o++er, mi*ht re)ei'e in e1)han*e for their
*oods an adulterated )om+osition of the )oarsest and )hea+est
materials, (hi)h had, ho(e'er, in their out(ard a++earan)e, &een
made to resem&le those metals- To +re'ent su)h a&uses, to
fa)ilitate e1)han*es, and there&y to en)oura*e all sorts of
industry and )ommer)e, it has &een found ne)essary, in all
)ountries that ha'e made any )onsidera&le ad'an)es to(ards
im+ro'ement, to affi1 a +u&li) stam+ u+on )ertain quantities of
su)h +arti)ular metals as (ere in those )ountries )ommonly made
use of to +ur)hase *oods- #en)e the ori*in of )oined money, and
of those +u&li) offi)es )alled mints/ institutions e1a)tly of the
same nature (ith those of the aulna*ers and stam+8masters of
(oolen and linen )loth- All of them are equally meant to
as)ertain, &y means of a +u&li) stam+, the quantity and uniform
*oodness of those different )ommodities (hen &rou*ht to mar0et-
The first +u&li) stam+s of this 0ind that (ere affi1ed to
the )urrent metals, seem in many )ases to ha'e &een intended to
as)ertain, (hat it (as &oth most diffi)ult and most im+ortant to
as)ertain, the *oodness or fineness of the metal, and to ha'e
resem&led the sterlin* mar0 (hi)h is at +resent affi1ed to +late
and &ars of sil'er, or the S+anish mar0 (hi)h is sometimes
affi1ed to in*ots of *old, and (hi)h &ein* stru)0 only u+on one
side of the +ie)e, and not )o'erin* the (hole surfa)e, as)ertains
the fineness, &ut not the (ei*ht of the metal- A&raham (ei*hs to
$+hron the four hundred she0els of sil'er (hi)h he had a*reed to
+ay for the field of 4a)h+elah- They are said, ho(e'er, to &e the
)urrent money of the mer)hant, and yet are re)ei'ed &y (ei*ht and
not &y tale, in the same manner as in*ots of *old and &ars of
sil'er are at +resent- The re'enues of the an)ient Sa1on 0in*s of
$n*land are said to ha'e &een +aid, not in money &ut in 0ind,
that is, in 'i)tuals and +ro'isions of all sorts- William the
Conqueror introdu)ed the )ustom of +ayin* them in money- This
money, ho(e'er, (as, for a lon* time, re)ei'ed at the e1)hequer,
&y (ei*ht and not &y tale-
The in)on'enien)y and diffi)ulty of (ei*hin* those metals
(ith e1a)tness *a'e o))asion to the institution of )oins, of
(hi)h the stam+, )o'erin* entirely &oth sides of the +ie)e and
sometimes the ed*es too, (as su++osed to as)ertain not only the
fineness, &ut the (ei*ht of the metal- Su)h )oins, therefore,
(ere re)ei'ed &y tale as at +resent, (ithout the trou&le of
(ei*hin*-
The denominations of those )oins seem ori*inally to ha'e
e1+ressed the (ei*ht or quantity of metal )ontained in them- In
the time of Ser'ius Tullius, (ho first )oined money at Rome, the
Roman as or +ondo )ontained a Roman +ound of *ood )o++er- It (as
di'ided in the same manner as our Troyes +ound, into t(el'e
oun)es, ea)h of (hi)h )ontained a real oun)e of *ood )o++er- The
$n*lish +ound sterlin*, in the time of $d(ard I, )ontained a
+ound, To(er (ei*ht, of sil'er, of a 0no(n fineness- The To(er
+ound seems to ha'e &een somethin* more than the Roman +ound, and
somethin* less than the Troyes +ound- This last (as not
introdu)ed into the mint of $n*land till the 1?th of #enry 5III-
The "ren)h li're )ontained in the time of Charlema*ne a +ound,
Troyes (ei*ht, of sil'er of a 0no(n fineness- The fair of Troyes
in Cham+ai*n (as at that time frequented &y all the nations of
$uro+e, and the (ei*hts and measures of so famous a mar0et (ere
*enerally 0no(n and esteemed- The S)ots money +ound )ontained,
from the time of Ale1ander the "irst to that of Ro&ert .ru)e, a
+ound of sil'er of the same (ei*ht and fineness (ith the $n*lish
+ound sterlin*- $n*lish, "ren)h, and S)ots +ennies, too,
)ontained all of them ori*inally a real +enny(ei*ht of sil'er,
the t(entieth +art of an oun)e, and the t(o8hundred8and8fortieth
+art of a +ound- The shillin* too seems ori*inally to ha'e &een
the denomination of a (ei*ht- When (heat is at t(el'e shillin*s
the quarter, says an an)ient statute of #enry III, then (astel
&read of a farthin* shall (ei*h ele'en shillin*s and four +en)e-
The +ro+ortion, ho(e'er, &et(een the shillin* and either the
+enny on the one hand, or the +ound on the other, seems not to
ha'e &een so )onstant and uniform as that &et(een the +enny and
the +ound- Durin* the first ra)e of the 0in*s of "ran)e, the
"ren)h sou or shillin* a++ears u+on different o))asions to ha'e
)ontained fi'e, t(el'e, t(enty, and forty +ennies- Amon* the
an)ient Sa1ons a shillin* a++ears at one time to ha'e )ontained
only fi'e +ennies, and it is not im+ro&a&le that it may ha'e &een
as 'aria&le amon* them as amon* their nei*h&ours, the an)ient
"ran0s- "rom the time of Charlema*ne amon* the "ren)h, and from
that of William the Conqueror amon* the $n*lish, the +ro+ortion
&et(een the +ound, the shillin*, and the +enny, seems to ha'e
&een uniformly the same as at +resent, thou*h the 'alue of ea)h
has &een 'ery different- "or in e'ery )ountry of the (orld, I
&elie'e, the a'ari)e and in2usti)e of +rin)es and so'erei*n
states, a&usin* the )onfiden)e of their su&2e)ts, ha'e &y de*rees
diminished the real quantity of metal, (hi)h had &een ori*inally
)ontained in their )oins- The Roman as, in the latter a*es of the
Re+u&li), (as redu)ed to the t(enty8fourth +art of its ori*inal
'alue, and, instead of (ei*hin* a +ound, )ame to (ei*h only half
an oun)e- The $n*lish +ound and +enny )ontain at +resent a&out a
third only/ the S)ots +ound and +enny a&out a thirty8si1th/ and
the "ren)h +ound and +enny a&out a si1ty8si1th +art of their
ori*inal 'alue- .y means of those o+erations the +rin)es and
so'erei*n states (hi)h +erformed them (ere ena&led, in
a++earan)e, to +ay their de&ts and to fulfil their en*a*ements
(ith a smaller quantity of sil'er than (ould other(ise ha'e &een
requisite- It (as indeed in a++earan)e only/ for their )reditors
(ere really defrauded of a +art of (hat (as due to them- All
other de&tors in the state (ere allo(ed the same +ri'ile*e, and
mi*ht +ay (ith the same nominal sum of the ne( and de&ased )oin
(hate'er they had &orro(ed in the old- Su)h o+erations,
therefore, ha'e al(ays +ro'ed fa'oura&le to the de&tor, and
ruinous to the )reditor, and ha'e sometimes +rodu)ed a *reater
and more uni'ersal re'olution in the fortunes of +ri'ate +ersons,
than )ould ha'e &een o))asioned &y a 'ery *reat +u&li) )alamity-
It is in this manner that money has &e)ome in all )i'ilised
nations the uni'ersal instrument of )ommer)e, &y the inter'ention
of (hi)h *oods of all 0inds are &ou*ht and sold, or e1)han*ed for
one another-
What are the rules (hi)h men naturally o&ser'e in e1)han*in*
them either for money or for one another, I shall no( +ro)eed to
e1amine- These rules determine (hat may &e )alled the relati'e or
e1)han*ea&le 'alue of *oods-
The (ord 'alue, it is to &e o&ser'ed, has t(o different
meanin*s, and sometimes e1+resses the utility of some +arti)ular
o&2e)t, and sometimes the +o(er of +ur)hasin* other *oods (hi)h
the +ossession of that o&2e)t )on'eys- The one may &e )alled
@'alue in use@/ the other, @'alue in e1)han*e-@ The thin*s (hi)h
ha'e the *reatest 'alue in use ha'e frequently little or no 'alue
in e1)han*e/ and, on the )ontrary, those (hi)h ha'e the *reatest
'alue in e1)han*e ha'e frequently little or no 'alue in use-
Nothin* is more useful than (ater3 &ut it (ill +ur)hase s)ar)e
anythin*/ s)ar)e anythin* )an &e had in e1)han*e for it- A
diamond, on the )ontrary, has s)ar)e any 'alue in use/ &ut a 'ery
*reat quantity of other *oods may frequently &e had in e1)han*e
for it-
In order to in'esti*ate the +rin)i+les (hi)h re*ulate the
e1)han*ea&le 'alue of )ommodities, I shall endea'our to sho(3
"irst, (hat is the real measure of this e1)han*ea&le 'alue/
or, (herein )onsists the real +ri)e of all )ommodities-
Se)ondly, (hat are the different +arts of (hi)h this real
+ri)e is )om+osed or made u+-
And, lastly, (hat are the different )ir)umstan)es (hi)h
sometimes raise some or all of these different +arts of +ri)e
a&o'e, and sometimes sin0 them &elo( their natural or ordinary
rate/ or, (hat are the )auses (hi)h sometimes hinder the mar0et
+ri)e, that is, the a)tual +ri)e of )ommodities, from )oin)idin*
e1a)tly (ith (hat may &e )alled their natural +ri)e-
I shall endea'our to e1+lain, as fully and distin)tly as I
)an, those three su&2e)ts in the three follo(in* )ha+ters, for
(hi)h I must 'ery earnestly entreat &oth the +atien)e and
attention of the reader3 his +atien)e in order to e1amine a
detail (hi)h may +erha+s in some +la)es a++ear unne)essarily
tedious/ and his attention in order to understand (hat may,
+erha+s, after the fullest e1+li)ation (hi)h I am )a+a&le of
*i'in* of it, a++ear still in some de*ree o&s)ure- I am al(ays
(illin* to run some ha;ard of &ein* tedious in order to &e sure
that I am +ers+i)uous/ and after ta0in* the utmost +ains that I
)an to &e +ers+i)uous, some o&s)urity may still a++ear to remain
u+on a su&2e)t in its o(n nature e1tremely a&stra)ted-
C#AT$R 5
Of the Real and Nominal ri)e of Commodities, or their ri)e in
!a&our, and their ri)e in 4oney
$5$R7 man is ri)h or +oor a))ordin* to the de*ree in (hi)h
he )an afford to en2oy the ne)essaries, )on'enien)es, and
amusements of human life- .ut after the di'ision of la&our has
on)e thorou*hly ta0en +la)e, it is &ut a 'ery small +art of these
(ith (hi)h a man=s o(n la&our )an su++ly him- The far *reater
+art of them he must deri'e from the la&our of other +eo+le, and
he must &e ri)h or +oor a))ordin* to the quantity of that la&our
(hi)h he )an )ommand, or (hi)h he )an afford to +ur)hase- The
'alue of any )ommodity, therefore, to the +erson (ho +ossesses
it, and (ho means not to use or )onsume it himself, &ut to
e1)han*e it for other )ommodities, is equal to the quantity of
la&our (hi)h it ena&les him to +ur)hase or )ommand- !a&our,
therefore, is the real measure of the e1)han*ea&le 'alue of all
)ommodities-
The real +ri)e of e'erythin*, (hat e'erythin* really )osts
to the man (ho (ants to a)quire it, is the toil and trou&le of
a)quirin* it- What e'erythin* is really (orth to the man (ho has
a)quired it, and (ho (ants to dis+ose of it or e1)han*e it for
somethin* else, is the toil and trou&le (hi)h it )an sa'e to
himself, and (hi)h it )an im+ose u+on other +eo+le- What is
&ou*ht (ith money or (ith *oods is +ur)hased &y la&our as mu)h as
(hat (e a)quire &y the toil of our o(n &ody- That money or those
*oods indeed sa'e us this toil- They )ontain the 'alue of a
)ertain quantity of la&our (hi)h (e e1)han*e for (hat is su++osed
at the time to )ontain the 'alue of an equal quantity- !a&our (as
the first +ri)e, the ori*inal +ur)hase8money that (as +aid for
all thin*s- It (as not &y *old or &y sil'er, &ut &y la&our, that
all the (ealth of the (orld (as ori*inally +ur)hased/ and its
'alue, to those (ho +ossess it, and (ho (ant to e1)han*e it for
some ne( +rodu)tions, is +re)isely equal to the quantity of
la&our (hi)h it )an ena&le them to +ur)hase or )ommand-
Wealth, as 4r- #o&&es says, is +o(er- .ut the +erson (ho
either a)quires, or su))eeds to a *reat fortune, does not
ne)essarily a)quire or su))eed to any +oliti)al +o(er, either
)i'il or military- #is fortune may, +erha+s, afford him the means
of a)quirin* &oth, &ut the mere +ossession of that fortune does
not ne)essarily )on'ey to him either- The +o(er (hi)h that
+ossession immediately and dire)tly )on'eys to him, is the +o(er
of +ur)hasin*/ a )ertain )ommand o'er all the la&our, or o'er all
the +rodu)e of la&our, (hi)h is then in the mar0et- #is fortune
is *reater or less, +re)isely in +ro+ortion to the e1tent of this
+o(er/ or to the quantity either of other men=s la&our, or, (hat
is the same thin*, of the +rodu)e of other men=s la&our, (hi)h it
ena&les him to +ur)hase or )ommand- The e1)han*ea&le 'alue of
e'erythin* must al(ays &e +re)isely equal to the e1tent of this
+o(er (hi)h it )on'eys to its o(ner-
.ut thou*h la&our &e the real measure of the e1)han*ea&le
'alue of all )ommodities, it is not that &y (hi)h their 'alue is
)ommonly estimated- It is of diffi)ult to as)ertain the
+ro+ortion &et(een t(o different quantities of la&our- The time
s+ent in t(o different sorts of (or0 (ill not al(ays alone
determine this +ro+ortion- The different de*rees of hardshi+
endured, and of in*enuity e1er)ised, must li0e(ise &e ta0en into
a))ount- There may &e more la&our in an hour=s hard (or0 than in
t(o hours= easy &usiness/ or in an hour=s a++li)ation to a trade
(hi)h it )ost ten years= la&our to learn, than in a month=s
industry at an ordinary and o&'ious em+loyment- .ut it is not
easy to find any a))urate measure either of hardshi+ or
in*enuity- In e1)han*in*, indeed, the different +rodu)tions of
different sorts of la&our for one another, some allo(an)e is
)ommonly made for &oth- It is ad2usted, ho(e'er, not &y any
a))urate measure, &ut &y the hi**lin* and &ar*ainin* of the
mar0et, a))ordin* to that sort of rou*h equality (hi)h, thou*h
not e1a)t, is suffi)ient for )arryin* on the &usiness of )ommon
life-
$'ery )ommodity, &esides, is more frequently e1)han*ed for,
and there&y )om+ared (ith, other )ommodities than (ith la&our- It
is more natural, therefore, to estimate its e1)han*ea&le 'alue &y
the quantity of some other )ommodity than &y that of the la&our
(hi)h it )an +ur)hase- The *reater +art of +eo+le, too,
understand &etter (hat is meant &y a quantity of a +arti)ular
)ommodity than &y a quantity of la&our- The one is a +lain
+al+a&le o&2e)t/ the other an a&stra)t notion, (hi)h, thou*h it
)an &e made suffi)iently intelli*i&le, is not alto*ether so
natural and o&'ious-
.ut (hen &arter )eases, and money has &e)ome the )ommon
instrument of )ommer)e, e'ery +arti)ular )ommodity is more
frequently e1)han*ed for money than for any other )ommodity- The
&ut)her seldom )arries his &eef or his mutton to the &a0er, or
the &re(er, in order to e1)han*e them for &read or for &eer/ &ut
he )arries them to the mar0et, (here he e1)han*es them for money,
and after(ards e1)han*es that money for &read and for &eer- The
quantity of money (hi)h he *ets for them re*ulates, too, the
quantity of &read and &eer (hi)h he )an after(ards +ur)hase- It
is more natural and o&'ious to him, therefore, to estimate their
'alue &y the quantity of money, the )ommodity for (hi)h he
immediately e1)han*es them, than &y that of &read and &eer, the
)ommodities for (hi)h he )an e1)han*e them only &y the
inter'ention of another )ommodity/ and rather to say that his
&ut)her=s meat is (orth three+en)e or four+en)e a +ound, than
that it is (orth three or four +ounds of &read, or three or four
quarts of small &eer- #en)e it )omes to +ass that the
e1)han*ea&le 'alue of e'ery )ommodity is more frequently
estimated &y the quantity of money, than &y the quantity either
of la&our or of any other )ommodity (hi)h )an &e had in e1)han*e
for it-
6old and sil'er, ho(e'er, li0e e'ery other )ommodity, 'ary
in their 'alue, are sometimes )hea+er and sometimes dearer,
sometimes of easier and sometimes of more diffi)ult +ur)hase- The
quantity of la&our (hi)h any +arti)ular quantity of them )an
+ur)hase or )ommand, or the quantity of other *oods (hi)h it (ill
e1)han*e for, de+ends al(ays u+on the fertility or &arrenness of
the mines (hi)h ha++en to &e 0no(n a&out the time (hen su)h
e1)han*es are made- The dis)o'ery of the a&undant mines of
Ameri)a redu)ed, in the si1teenth )entury, the 'alue of *old and
sil'er in $uro+e to a&out a third of (hat it had &een &efore- As
it )osts less la&our to &rin* those metals from the mine to the
mar0et, so (hen they (ere &rou*ht thither they )ould +ur)hase or
)ommand less la&our/ and this re'olution in their 'alue, thou*h
+erha+s the *reatest, is &y no means the only one of (hi)h
history *i'es some a))ount- .ut as a measure of quantity, su)h as
the natural foot, fathom, or handful, (hi)h is )ontinually
'aryin* in its o(n quantity, )an ne'er &e an a))urate measure of
the quantity of other thin*s/ so a )ommodity (hi)h is itself
)ontinually 'aryin* in its o(n 'alue, )an ne'er &e an a))urate
measure of the 'alue of other )ommodities- $qual quantities of
la&our, at all times and +la)es, may &e said to &e of equal 'alue
to the la&ourer- In his ordinary state of health, stren*th and
s+irits/ in the ordinary de*ree of his s0ill and de1terity, he
must al(ays laydo(n the same +ortion of his ease, his li&erty,
and his ha++iness- The +ri)e (hi)h he +ays must al(ays &e the
same, (hate'er may &e the quantity of *oods (hi)h he re)ei'es in
return for it- Of these, indeed, it may sometimes +ur)hase a
*reater and sometimes a smaller quantity/ &ut it is their 'alue
(hi)h 'aries, not that of the la&our (hi)h +ur)hases them- At all
times and +la)es that is dear (hi)h it is diffi)ult to )ome at,
or (hi)h it )osts mu)h la&our to a)quire/ and that )hea+ (hi)h is
to &e had easily, or (ith 'ery little la&our- !a&our alone,
therefore, ne'er 'aryin* in its o(n 'alue, is alone the ultimate
and real standard &y (hi)h the 'alue of all )ommodities )an at
all times and +la)es &e estimated and )om+ared- It is their real
+ri)e/ money is their nominal +ri)e only-
.ut thou*h equal quantities of la&our are al(ays of equal
'alue to the la&ourer, yet to the +erson (ho em+loys him they
a++ear sometimes to &e of *reater and sometimes of smaller 'alue-
#e +ur)hases them sometimes (ith a *reater and sometimes (ith a
smaller quantity of *oods, and to him the +ri)e of la&our seems
to 'ary li0e that of all other thin*s- It a++ears to him dear in
the one )ase, and )hea+ in the other- In reality, ho(e'er, it is
the *oods (hi)h are )hea+ in the one )ase, and dear in the other-
In this +o+ular sense, therefore, la&our, li0e )ommodities,
may &e said to ha'e a real and a nominal +ri)e- Its real +ri)e
may &e said to )onsist in the quantity of the ne)essaries and
)on'enien)es of life (hi)h are *i'en for it/ its nominal +ri)e,
in the quantity of money- The la&ourer is ri)h or +oor, is (ell
or ill re(arded, in +ro+ortion to the real, not to the nominal
+ri)e of his la&our-
The distin)tion &et(een the real and the nominal +ri)e of
)ommodities and la&our is not a matter of mere s+e)ulation, &ut
may sometimes &e of )onsidera&le use in +ra)ti)e- The same real
+ri)e is al(ays of the same 'alue/ &ut on a))ount of the
'ariations in the 'alue of *old and sil'er, the same nominal
+ri)e is sometimes of 'ery different 'alues- When a landed
estate, therefore, is sold (ith a reser'ation of a +er+etual
rent, if it is intended that this rent should al(ays &e of the
same 'alue, it is of im+ortan)e to the family in (hose fa'our it
is reser'ed that it should not )onsist in a +arti)ular sum of
money- Its 'alue (ould in this )ase &e lia&le to 'ariations of
t(o different 0inds/ first, to those (hi)h arise from the
different quantities of *old and sil'er (hi)h are )ontained at
different times in )oin of the same denomination/ and, se)ondly,
to those (hi)h arise from the different 'alues of equal
quantities of *old and sil'er at different times-
rin)es and so'erei*n states ha'e frequently fan)ied that
they had a tem+orary interest to diminish the quantity of +ure
metal )ontained in their )oins/ &ut they seldom ha'e fan)ied that
they had any to au*ment it- The quantity of metal )ontained in
the )oins, I &elie'e of all nations, has, a))ordin*ly, &een
almost )ontinually diminishin*, and hardly e'er au*mentin*- Su)h
'ariations, therefore, tend almost al(ays to diminish the 'alue
of a money rent-
The dis)o'ery of the mines of Ameri)a diminished the 'alue
of *old and sil'er in $uro+e- This diminution, it is )ommonly
su++osed, thou*h I a++rehend (ithout any )ertain +roof, is still
*oin* on *radually, and is li0ely to )ontinue to do so for a lon*
time- U+on this su++osition, therefore, su)h 'ariations are more
li0ely to diminish than to au*ment the 'alue of a money rent,
e'en thou*h it should &e sti+ulated to &e +aid, not in su)h a
quantity of )oined money of su)h a denomination 9in so many
+ounds sterlin*, for e1am+le:, &ut in so many oun)es either of
+ure sil'er, or of sil'er of a )ertain standard-
The rents (hi)h ha'e &een reser'ed in )orn ha'e +reser'ed
their 'alue mu)h &etter than those (hi)h ha'e &een reser'ed in
money, e'en (here the denomination of the )oin has not &een
altered- .y the 1?th of $li;a&eth it (as ena)ted that a third of
the rent of all )olle*e leases should &e reser'ed in )orn, to &e
+aid, either in 0ind, or a))ordin* to the )urrent +ri)es at the
nearest +u&li) mar0et- The money arisin* from this )orn rent,
thou*h ori*inally &ut a third of the (hole, is in the +resent
times, a))ordin* to Dr- .la)0stone, )ommonly near dou&le of (hat
arises from the other t(o8thirds- The old money rents of )olle*es
must, a))ordin* to this a))ount, ha'e sun0 almost to a fourth
+art of their an)ient 'alue/ or are (orth little more than a
fourth +art of the )orn (hi)h they (ere formerly (orth- .ut sin)e
the rei*n of hili+ and 4ary the denomination of the $n*lish )oin
has under*one little or no alteration, and the same num&er of
+ounds, shillin*s and +en)e ha'e )ontained 'ery nearly the same
quantity of +ure sil'er- This de*radation, therefore, in the
'alue of the money rents of )olle*es, has arisen alto*ether from
the de*radation in the 'alue of sil'er-
When the de*radation in the 'alue of sil'er is )om&ined (ith
the diminution of the quantity of it )ontained in the )oin of the
same denomination, the loss is frequently still *reater- In
S)otland, (here the denomination of the )oin has under*one mu)h
*reater alterations than it e'er did in $n*land, and in "ran)e,
(here it has under*one still *reater than it e'er did in
S)otland, some an)ient rents, ori*inally of )onsidera&le 'alue,
ha'e in this manner &een redu)ed almost to nothin*-
$qual quantities of la&our (ill at distant times &e
+ur)hased more nearly (ith equal quantities of )orn, the
su&sisten)e of the la&ourer, than (ith equal quantities of *old
and sil'er, or +erha+s of any other )ommodity- $qual quantities
of )orn, therefore, (ill, at distant times, &e more nearly of the
same real 'alue, or ena&le the +ossessor to +ur)hase or )ommand
more nearly the same quantity of the la&our of other +eo+le- They
(ill do this, I say, more nearly than equal quantities of almost
any other )ommodity/ for e'en equal quantities of )orn (ill not
do it e1a)tly- The su&sisten)e of the la&ourer, or the real +ri)e
of la&our, as I shall endea'our to sho( hereafter, is 'ery
different u+on different o))asions/ more li&eral in a so)iety
ad'an)in* to o+ulen)e than in one that is standin* still/ and in
one that is standin* still than in one that is *oin* &a)0(ards-
$'ery other )ommodity, ho(e'er, (ill at any +arti)ular time
+ur)hase a *reater or smaller quantity of la&our in +ro+ortion to
the quantity of su&sisten)e (hi)h it )an +ur)hase at that time- A
rent therefore reser'ed in )orn is lia&le only to the 'ariations
in the quantity of la&our (hi)h a )ertain quantity of )orn )an
+ur)hase- .ut a rent reser'ed in any other )ommodity is lia&le
not only to the 'ariations in the quantity of la&our (hi)h any
+arti)ular quantity of )orn )an +ur)hase, &ut to the 'ariations
in the quantity of )orn (hi)h )an &e +ur)hased &y any +arti)ular
quantity of that )ommodity-
Thou*h the real 'alue of a )orn rent, it is to &e o&ser'ed,
ho(e'er, 'aries mu)h less from )entury to )entury than that of a
money rent, it 'aries mu)h more from year to year- The money
+ri)e of la&our, as I shall endea'our to sho( hereafter, does not
flu)tuate from year to year (ith the money +ri)e of )orn, &ut
seems to &e e'ery(here a))ommodated, not to the tem+orary or
o))asional, &ut to the a'era*e or ordinary +ri)e of that
ne)essary of life- The a'era*e or ordinary +ri)e of )orn a*ain is
re*ulated, as I shall li0e(ise endea'our to sho( hereafter, &y
the 'alue of sil'er, &y the ri)hness or &arrenness of the mines
(hi)h su++ly the mar0et (ith that metal, or &y the quantity of
la&our (hi)h must &e em+loyed, and )onsequently of )orn (hi)h
must &e )onsumed, in order to &rin* any +arti)ular quantity of
sil'er from the mine to the mar0et- .ut the 'alue of sil'er,
thou*h it sometimes 'aries *reatly from )entury to )entury,
seldom 'aries mu)h from year to year, &ut frequently )ontinues
the same, or 'ery nearly the same, for half a )entury or a
)entury to*ether- The ordinary or a'era*e money +ri)e of )orn,
therefore, may, durin* so lon* a +eriod, )ontinue the same or
'ery nearly the same too, and alon* (ith it the money +ri)e of
la&our, +ro'ided, at least, the so)iety )ontinues, in other
res+e)ts, in the same or nearly in the same )ondition- In the
meantime the tem+orary and o))asional +ri)e of )orn may
frequently &e dou&le, one year, of (hat it had &een the year
&efore, or flu)tuate, for e1am+le, from fi'e and t(enty to fifty
shillin*s the quarter- .ut (hen )orn is at the latter +ri)e, not
only the nominal, &ut the real 'alue of a )orn rent (ill &e
dou&le of (hat it is (hen at the former, or (ill )ommand dou&le
the quantity either of la&our or of the *reater +art of other
)ommodities/ the money +ri)e of la&our, and alon* (ith it that of
most other thin*s, )ontinuin* the same durin* all these
flu)tuations-
!a&our, therefore, it a++ears e'idently, is the only
uni'ersal, as (ell as the only a))urate measure of 'alue, or the
only standard &y (hi)h (e )an )om+are the 'alues of different
)ommodities at all times, and at all +la)es- We )annot estimate,
it is allo(ed, the real 'alue of different )ommodities from
)entury to )entury &y the quantities of sil'er (hi)h (ere *i'en
for them- We )annot estimate it from year to year &y the
quantities of )orn- .y the quantities of la&our (e )an, (ith the
*reatest a))ura)y, estimate it &oth from )entury to )entury and
from year to year- "rom )entury to )entury, )orn is a &etter
measure than sil'er, &e)ause, from )entury to )entury, equal
quantities of )orn (ill )ommand the same quantity of la&our more
nearly than equal quantities of sil'er- "rom year to year, on the
)ontrary, sil'er is a &etter measure than )orn, &e)ause equal
quantities of it (ill more nearly )ommand the same quantity of
la&our-
.ut thou*h in esta&lishin* +er+etual rents, or e'en in
lettin* 'ery lon* leases, it may &e of use to distin*uish &et(een
real and nominal +ri)e/ it is of none in &uyin* and sellin*, the
more )ommon and ordinary transa)tions of human life-
At the same time and +la)e the real and the nominal +ri)e of
all )ommodities are e1a)tly in +ro+ortion to one another- The
more or less money you *et for any )ommodity, in the !ondon
mar0et for e1am+le, the more or less la&our it (ill at that time
and +la)e ena&le you to +ur)hase or )ommand- At the same time and
+la)e, therefore, money is the e1a)t measure of the real
e1)han*ea&le 'alue of all )ommodities- It is so, ho(e'er, at the
same time and +la)e only-
Thou*h at distant +la)es, there is no re*ular +ro+ortion
&et(een the real and the money +ri)e of )ommodities, yet the
mer)hant (ho )arries *oods from the one to the other has nothin*
to )onsider &ut their money +ri)e, or the differen)e &et(een the
quantity of sil'er for (hi)h he &uys them, and that for (hi)h he
is li0ely to sell them- #alf an oun)e of sil'er at Canton in
China may )ommand a *reater quantity &oth of la&our and of the
ne)essaries and )on'enien)es of life than an oun)e at !ondon- A
)ommodity, therefore, (hi)h sells for half an oun)e of sil'er at
Canton may there &e really dearer, of more real im+ortan)e to the
man (ho +ossesses it there, than a )ommodity (hi)h sells for an
oun)e at !ondon is to the man (ho +ossesses it at !ondon- If a
!ondon mer)hant, ho(e'er, )an &uy at Canton for half an oun)e of
sil'er, a )ommodity (hi)h he )an after(ards sell at !ondon for an
oun)e, he *ains a hundred +er )ent &y the &ar*ain, 2ust as mu)h
as if an oun)e of sil'er (as at !ondon e1a)tly of the same 'alue
as at Canton- It is of no im+ortan)e to him that half an oun)e of
sil'er at Canton (ould ha'e *i'en him the )ommand of more la&our
and of a *reater quantity of the ne)essaries and )on'enien)es of
life than an oun)e )an do at !ondon- An oun)e at !ondon (ill
al(ays *i'e him the )ommand of dou&le the quantity of all these
(hi)h half an oun)e )ould ha'e done there, and this is +re)isely
(hat he (ants-
As it is the nominal or money +ri)e of *oods, therefore,
(hi)h finally determines the +ruden)e or im+ruden)e of all
+ur)hases and sales, and there&y re*ulates almost the (hole
&usiness of )ommon life in (hi)h +ri)e is )on)erned, (e )annot
(onder that it should ha'e &een so mu)h more attended to than the
real +ri)e-
In su)h a (or0 as this, ho(e'er, it may sometimes &e of use
to )om+are the different real 'alues of a +arti)ular )ommodity at
different times and +la)es, or the different de*rees of +o(er
o'er the la&our of other +eo+le (hi)h it may, u+on different
o))asions, ha'e *i'en to those (ho +ossessed it- We must in this
)ase )om+are, not so mu)h the different quantities of sil'er for
(hi)h it (as )ommonly sold, as the different quantities of la&our
(hi)h those different quantities of sil'er )ould ha'e +ur)hased-
.ut the )urrent +ri)es of la&our at distant times and +la)es )an
s)ar)e e'er &e 0no(n (ith any de*ree of e1a)tness- Those of )orn,
thou*h they ha'e in fe( +la)es &een re*ularly re)orded, are in
*eneral &etter 0no(n and ha'e &een more frequently ta0en noti)e
of &y historians and other (riters- We must *enerally, therefore,
)ontent oursel'es (ith them, not as &ein* al(ays e1a)tly in the
same +ro+ortion as the )urrent +ri)es of la&our, &ut as &ein* the
nearest a++ro1imation (hi)h )an )ommonly &e had to that
+ro+ortion- I shall hereafter ha'e o))asion to ma0e se'eral
)om+arisons of this 0ind-
In the +ro*ress of industry, )ommer)ial nations ha'e found
it )on'enient to )oin se'eral different metals into money/ *old
for lar*er +ayments, sil'er for +ur)hases of moderate 'alue, and
)o++er, or some other )oarse metal, for those of still smaller
)onsideration- They ha'e al(ays, ho(e'er, )onsidered one of those
metals as more +e)uliarly the measure of 'alue than any of the
other t(o/ and this +referen)e seems *enerally to ha'e &een *i'en
to the metal (hi)h they ha++ened first to ma0e use of as the
instrument of )ommer)e- #a'in* on)e &e*un to use it as their
standard, (hi)h they must ha'e done (hen they had no other money,
they ha'e *enerally )ontinued to do so e'en (hen the ne)essity
(as not the same-
The Romans are said to ha'e had nothin* &ut )o++er money
till (ithin fi'e years &efore the first uni) (ar, (hen they
first &e*an to )oin sil'er- Co++er, therefore, a++ears to ha'e
)ontinued al(ays the measure of 'alue in that re+u&li)- At Rome
all a))ounts a++ear to ha'e &een 0e+t, and the 'alue of all
estates to ha'e &een )om+uted either in asses or in sestertii-
The as (as al(ays the denomination of a )o++er )oin- The (ord
sestertius si*nifies t(o asses and a half- Thou*h the sestertius,
therefore, (as ori*inally a sil'er )oin, its 'alue (as estimated
in )o++er- At Rome, one (ho o(ed a *reat deal of money (as said
to ha'e a *reat deal of other +eo+le=s )o++er-
The northern nations (ho esta&lished themsel'es u+on the
ruins of the Roman em+ire, seem to ha'e had sil'er money from the
first &e*innin* of their settlements, and not to ha'e 0no(n
either *old or )o++er )oins for se'eral a*es thereafter- There
(ere sil'er )oins in $n*land in the time of the Sa1ons/ &ut there
(as little *old )oined till the time of $d(ard III nor any )o++er
till that of Aames I of 6reat .ritain- In $n*land, therefore, and
for the same reason, I &elie'e, in all other modern nations of
$uro+e, all a))ounts are 0e+t, and the 'alue of all *oods and of
all estates is *enerally )om+uted in sil'er3 and (hen (e mean to
e1+ress the amount of a +erson=s fortune, (e seldom mention the
num&er of *uineas, &ut the num&er of +ounds sterlin* (hi)h (e
su++ose (ould &e *i'en for it-
Ori*inally, in all )ountries, I &elie'e, a le*al tender of
+ayment )ould &e made only in the )oin of that metal, (hi)h (as
+e)uliarly )onsidered as the standard or measure of 'alue- In
$n*land, *old (as not )onsidered as a le*al tender for a lon*
time after it (as )oined into money- The +ro+ortion &et(een the
'alues of *old and sil'er money (as not fi1ed &y any +u&li) la(
or +ro)lamation/ &ut (as left to &e settled &y the mar0et- If a
de&tor offered +ayment in *old, the )reditor mi*ht either re2e)t
su)h +ayment alto*ether, or a))e+t of it at su)h a 'aluation of
the *old as he and his de&tor )ould a*ree u+on- Co++er is not at
+resent a le*al tender e1)e+t in the )han*e of the smaller sil'er
)oins- In this state of thin*s the distin)tion &et(een the metal
(hi)h (as the standard, and that (hi)h (as not the standard, (as
somethin* more than a nominal distin)tion-
In +ro)ess of time, and as +eo+le &e)ame *radually more
familiar (ith the use of the different metals in )oin, and
)onsequently &etter a)quainted (ith the +ro+ortion &et(een their
res+e)ti'e 'alues, it has in most )ountries, I &elie'e, &een
found )on'enient to as)ertain this +ro+ortion, and to de)lare &y
a +u&li) la( that a *uinea, for e1am+le, of su)h a (ei*ht and
fineness, should e1)han*e for one8and8t(enty shillin*s, or &e a
le*al tender for a de&t of that amount- In this state of thin*s,
and durin* the )ontinuan)e of any one re*ulated +ro+ortion of
this 0ind, the distin)tion &et(een the metal (hi)h is the
standard, and that (hi)h is not the standard, &e)omes little more
than a nominal distin)tion-
In )onsequen)e of any )han*e, ho(e'er, in this re*ulated
+ro+ortion, this distin)tion &e)omes, or at least seems to
&e)ome, somethin* more than nominal a*ain- If the re*ulated 'alue
of a *uinea, for e1am+le, (as either redu)ed to t(enty, or raised
to t(o8and8t(enty shillin*s, all a))ounts &ein* 0e+t and almost
all o&li*ations for de&t &ein* e1+ressed in sil'er money, the
*reater +art of +ayments )ould in either )ase &e made (ith the
same quantity of sil'er money as &efore/ &ut (ould require 'ery
different quantities of *old money/ a *reater in the one )ase,
and a smaller in the other- Sil'er (ould a++ear to &e more
in'aria&le in its 'alue than *old- Sil'er (ould a++ear to measure
the 'alue of *old, and *old (ould not a++ear to measure the 'alue
of sil'er- The 'alue of *old (ould seem to de+end u+on the
quantity of sil'er (hi)h it (ould e1)han*e for/ and the 'alue of
sil'er (ould not seem to de+end u+on the quantity of *old (hi)h
it (ould e1)han*e for- This differen)e, ho(e'er, (ould &e
alto*ether o(in* to the )ustom of 0ee+in* a))ounts, and of
e1+ressin* the amount of all *reat and small sums rather in
sil'er than in *old money- One of 4r- Drummond=s notes for
fi'e8and8t(enty or fifty *uineas (ould, after an alteration of
this 0ind, &e still +aya&le (ith fi'e8and8t(enty or fifty *uineas
in the same manner as &efore- It (ould, after su)h an alteration,
&e +aya&le (ith the same quantity of *old as &efore, &ut (ith
'ery different quantities of sil'er- In the +ayment of su)h a
note, *old (ould a++ear to &e more in'aria&le in its 'alue than
sil'er- 6old (ould a++ear to measure the 'alue of sil'er, and
sil'er (ould not a++ear to measure the 'alue of *old- If the
)ustom of 0ee+in* a))ounts, and of e1+ressin* +romissory notes
and other o&li*ations for money in this manner, should e'er
&e)ome *eneral, *old, and not sil'er, (ould &e )onsidered as the
metal (hi)h (as +e)uliarly the standard or measure of 'alue-
In reality, durin* the )ontinuan)e of any one re*ulated
+ro+ortion &et(een the res+e)ti'e 'alues of the different metals
in )oin, the 'alue of the most +re)ious metal re*ulates the 'alue
of the (hole )oin- T(el'e )o++er +en)e )ontain half a +ound,
a'oirdu+ois, of )o++er, of not the &est quality, (hi)h, &efore it
is )oined, is seldom (orth se'en+en)e in sil'er- .ut as &y the
re*ulation t(el'e su)h +en)e are ordered to e1)han*e for a
shillin*, they are in the mar0et )onsidered as (orth a shillin*,
and a shillin* )an at any time &e had for them- $'en &efore the
late reformation of the *old )oin of 6reat .ritain, the *old,
that +art of it at least (hi)h )ir)ulated in !ondon and its
nei*h&ourhood, (as in *eneral less de*raded &elo( its standard
(ei*ht than the *reater +art of the sil'er- One8and8t(enty (orn
and defa)ed shillin*s, ho(e'er, (ere )onsidered as equi'alent to
a *uinea, (hi)h +erha+s, indeed, (as (orn and defa)ed too, &ut
seldom so mu)h so- The late re*ulations ha'e &rou*ht the *old
)oin as near +erha+s to its standard (ei*ht as it is +ossi&le to
&rin* the )urrent )oin of any nation/ and the order, to re)ei'e
no *old at the +u&li) offi)es &ut &y (ei*ht, is li0ely to
+reser'e it so, as lon* as that order is enfor)ed- The sil'er
)oin still )ontinues in the same (orn and de*raded state as
&efore the reformation of the *old )oin- In the mar0et, ho(e'er,
one8and8t(enty shillin*s of this de*raded sil'er )oin are still
)onsidered as (orth a *uinea of this e1)ellent *old )oin-
The reformation of the *old )oin has e'idently raised the
'alue of the sil'er )oin (hi)h )an &e e1)han*ed for it-
In the $n*lish mint a +ound (ei*ht of *old is )oined into
forty8four *uineas and a half, (hi)h, at one8and8t(enty shillin*s
the *uinea, is equal to forty8si1 +ounds fourteen shillin*s and
si1+en)e- An oun)e of su)h *old )oin, therefore, is (orth !B 17s-
1C 1DEd- in sil'er- In $n*land no duty or sei*nora*e is +aid u+on
the )oina*e, and he (ho )arries a +ound (ei*ht or an oun)e (ei*ht
of standard *old &ullion to the mint, *ets &a)0 a +ound (ei*ht or
an oun)e (ei*ht of *old in )oin, (ithout any dedu)tion- Three
+ounds se'enteen shillin*s and ten+en)e half+enny an oun)e,
therefore, is said to &e the mint +ri)e of *old in $n*land, or
the quantity of *old )oin (hi)h the mint *i'es in return for
standard *old &ullion-
.efore the reformation of the *old )oin, the +ri)e of
standard *old &ullion in the mar0et had for many years &een
u+(ards of !B 1?s- sometimes !B 1Fs- and 'ery frequently !G an
oun)e/ that sum, it is +ro&a&le, in the (orn and de*raded *old
)oin, seldom )ontainin* more than an oun)e of standard *old-
Sin)e the reformation of the *old )oin, the mar0et +ri)e of
standard *old &ullion seldom e1)eeds !B 17s- 7d- an oun)e- .efore
the reformation of the *old )oin, the mar0et +ri)e (as al(ays
more or less a&o'e the mint +ri)e- Sin)e that reformation, the
mar0et +ri)e has &een )onstantly &elo( the mint +ri)e- .ut that
mar0et +ri)e is the same (hether it is +aid in *old or in sil'er
)oin- The late reformation of the *old )oin, therefore, has
raised not only the 'alue of the *old )oin, &ut li0e(ise that of
the sil'er )oin in +ro+ortion to *old &ullion, and +ro&a&ly, too,
in +ro+ortion to all other )ommodities/ throu*h the +ri)e of the
*reater +art of other )ommodities &ein* influen)ed &y so many
other )auses, the rise in the 'alue either of *old or sil'er )oin
in +ro+ortion to them may not &e so distin)t and sensi&le-
In the $n*lish mint a +ound (ei*ht of standard sil'er
&ullion is )oined into si1ty8t(o shillin*s, )ontainin*, in the
same manner, a +ound (ei*ht of standard sil'er- "i'e shillin*s
and t(o+en)e an oun)e, therefore, is said to &e the mint +ri)e of
sil'er in $n*land, or the quantity of sil'er )oin (hi)h the mint
*i'es in return for standard sil'er &ullion- .efore the
reformation of the *old )oin, the mar0et +ri)e of standard sil'er
&ullion (as, u+on different o))asions, fi'e shillin*s and
four+en)e, fi'e shillin*s and fi'e+en)e, fi'e shillin*s and
si1+en)e, fi'e shillin*s and se'en+en)e, and 'ery often fi'e
shillin*s and ei*ht+en)e an oun)e- "i'e shillin*s and se'en+en)e,
ho(e'er, seems to ha'e &een the most )ommon +ri)e- Sin)e the
reformation of the *old )oin, the mar0et +ri)e of standard sil'er
&ullion has fallen o))asionally to fi'e shillin*s and three+en)e,
fi'e shillin*s and four+en)e, and fi'e shillin*s and fi'e+en)e an
oun)e, (hi)h last +ri)e it has s)ar)e e'er e1)eeded- Thou*h the
mar0et +ri)e of sil'er &ullion has fallen )onsidera&ly sin)e the
reformation of the *old )oin, it has not fallen so lo( as the
mint +ri)e-
In the +ro+ortion &et(een the different metals in the
$n*lish )oin, as )o++er is rated 'ery mu)h a&o'e its real 'alue,
so sil'er is rated some(hat &elo( it- In the mar0et of $uro+e, in
the "ren)h )oin and in the Dut)h )oin, an oun)e of fine *old
e1)han*es for a&out fourteen oun)es of fine sil'er- In the
$n*lish )oin, it e1)han*es for a&out fifteen oun)es, that is, for
more sil'er than it is (orth a))ordin* to the )ommon estimation
of $uro+e- .ut as the +ri)e of )o++er in &ars is not, e'en in
$n*land, raised &y the hi*h +ri)e of )o++er in $n*lish )oin, so
the +ri)e of sil'er in &ullion is not sun0 &y the lo( rate of
sil'er in $n*lish )oin- Sil'er in &ullion still +reser'es its
+ro+er +ro+ortion to *old/ for the same reason that )o++er in
&ars +reser'es its +ro+er +ro+ortion to sil'er-
U+on the reformation of the sil'er )oin in the rei*n of
William III the +ri)e of sil'er &ullion still )ontinued to &e
some(hat a&o'e the mint +ri)e- 4r- !o)0e im+uted this hi*h +ri)e
to the +ermission of e1+ortin* sil'er &ullion, and to the
+rohi&ition of e1+ortin* sil'er )oin- This +ermission of
e1+ortin*, he said, rendered the demand for sil'er &ullion
*reater than the demand for sil'er )oin- .ut the num&er of +eo+le
(ho (ant sil'er )oin for the )ommon uses of &uyin* and sellin* at
home, is surely mu)h *reater than that of those (ho (ant sil'er
&ullion either for the use of e1+ortation or for any other use-
There su&sists at +resent a li0e +ermission of e1+ortin* *old
&ullion, and a li0e +rohi&ition of e1+ortin* *old )oin3 and yet
the +ri)e of *old &ullion has fallen &elo( the mint +ri)e- .ut in
the $n*lish )oin sil'er (as then, in the same manner as no(,
under8rated in +ro+ortion to *old, and the *old )oin 9(hi)h at
that time too (as not su++osed to require any reformation:
re*ulated then, as (ell as no(, the real 'alue of the (hole )oin-
As the reformation of the sil'er )oin did not then redu)e the
+ri)e of sil'er &ullion to the mint +ri)e, it is not 'ery
+ro&a&le that a li0e reformation (ill do so no(-
Were the sil'er )oin &rou*ht &a)0 as near to its standard
(ei*ht as the *old, a *uinea, it is +ro&a&le, (ould, a))ordin* to
the +resent +ro+ortion, e1)han*e for more sil'er in )oin than it
(ould +ur)hase in &ullion- The sil'er )oin )ontainin* its full
standard (ei*ht, there (ould in this )ase &e a +rofit in meltin*
it do(n, in order, first, to sell the &ullion for *old )oin, and
after(ards to e1)han*e this *old )oin for sil'er )oin to &e
melted do(n in the same manner- Some alteration in the +resent
+ro+ortion seems to &e the only method of +re'entin* this
in)on'enien)y-
The in)on'enien)y +erha+s (ould &e less if sil'er (as rated
in the )oin as mu)h a&o'e its +ro+er +ro+ortion to *old as it is
at +resent rated &elo( it/ +ro'ided it (as at the same time
ena)ted that sil'er should not &e a le*al tender for more than
the )han*e of a *uinea, in the same manner as )o++er is not a
le*al tender for more than the )han*e of a shillin*- No )reditor
)ould in this )ase &e )heated in )onsequen)e of the hi*h
'aluation of sil'er in )oin/ as no )reditor )an at +resent &e
)heated in )onsequen)e of the hi*h 'aluation of )o++er- The
&an0ers only (ould suffer &y this re*ulation- When a run )omes
u+on them they sometimes endea'our to *ain time &y +ayin* in
si1+en)es, and they (ould &e +re)luded &y this re*ulation from
this dis)redita&le method of e'adin* immediate +ayment- They
(ould &e o&li*ed in )onsequen)e to 0ee+ at all times in their
)offers a *reater quantity of )ash than at +resent/ and thou*h
this mi*ht no dou&t &e a )onsidera&le in)on'enien)y to them, it
(ould at the same time &e a )onsidera&le se)urity to their
)reditors-
Three +ounds se'enteen shillin*s and ten+en)e half+enny 9the
mint +ri)e of *old: )ertainly does not )ontain, e'en in our
+resent e1)ellent *old )oin, more than an oun)e of standard *old,
and it may &e thou*ht, therefore, should not +ur)hase more
standard &ullion- .ut *old in )oin is more )on'enient than *old
in &ullion, and thou*h, in $n*land, the )oina*e is free, yet the
*old (hi)h is )arried in &ullion to the mint )an seldom &e
returned in )oin to the o(ner till after a delay of se'eral
(ee0s- In the +resent hurry of the mint, it )ould not &e returned
till after a delay of se'eral months- This delay is equi'alent to
a small duty, and renders *old in )oin some(hat more 'alua&le
than an equal quantity of *old in &ullion- If in the $n*lish )oin
sil'er (as rated a))ordin* to it +ro+er +ro+ortion to *old, the
+ri)e of sil'er &ullion (ould +ro&a&ly fall &elo( the mint +ri)e
e'en (ithout any reformation of the sil'er )oin/ the 'alue e'en
of the +resent (orn and defa)ed sil'er )oin &ein* re*ulated &y
the 'alue of the e1)ellent *old )oin for (hi)h it )an &e )han*ed-
A small sei*nora*e or duty u+on the )oina*e of &oth *old and
sil'er (ould +ro&a&ly in)rease still more the su+eriority of
those metals in )oin a&o'e an equal quantity of either of them in
&ullion- The )oina*e (ould in this )ase in)rease the 'alue of the
metal )oined in +ro+ortion to the e1tent of this small duty/ for
the same reason that the fashion in)reases the 'alue of +late in
+ro+ortion to the +ri)e of that fashion- The su+eriority of )oin
a&o'e &ullion (ould +re'ent the meltin* do(n of the )oin, and
(ould dis)oura*e its e1+ortation- If u+on any +u&li) e1i*en)y it
should &e)ome ne)essary to e1+ort the )oin, the *reater +art of
it (ould soon return a*ain of its o(n a))ord- A&road it )ould
sell only for its (ei*ht in &ullion- At home it (ould &uy more
than that (ei*ht- There (ould &e a +rofit, therefore, in &rin*in*
it home a*ain- In "ran)e a sei*nora*e of a&out ei*ht +er )ent is
im+osed u+on the )oina*e, and the "ren)h )oin, (hen e1+orted, is
said to return home a*ain of its o(n a))ord-
The o))asional flu)tuations in the mar0et +ri)e of *old and
sil'er &ullion arise from the same )auses as the li0e
flu)tuations in that of all other )ommodities- The frequent loss
of those metals from 'arious a))idents &y sea and &y land, the
)ontinual (aste of them in *ildin* and +latin*, in la)e and
em&roidery, in the (ear and tear of )oin, and in that of +late/
require, in all )ountries (hi)h +ossess no mines of their o(n, a
)ontinual im+ortation, in order to re+air this loss and this
(aste- The mer)hant im+orters, li0e all other mer)hants, (e may
&elie'e, endea'our, as (ell as they )an, to suit their o))asional
im+ortations to (hat, they 2ud*e, is li0ely to &e the immediate
demand- With all their attention, ho(e'er, they sometimes o'erdo
the &usiness, and sometimes underdo it- When they im+ort more
&ullion than is (anted, rather than in)ur the ris0 and trou&le of
e1+ortin* it a*ain, they are sometimes (illin* to sell a +art of
it for somethin* less than the ordinary or a'era*e +ri)e- When,
on the other hand, they im+ort less than is (anted, they *et
somethin* more than this +ri)e- .ut (hen, under all those
o))asional flu)tuations, the mar0et +ri)e either of *old or
sil'er &ullion )ontinues for se'eral years to*ether steadily and
)onstantly, either more or less a&o'e, or more or less &elo( the
mint +ri)e, (e may &e assured that this steady and )onstant,
either su+eriority or inferiority of +ri)e, is the effe)t of
somethin* in the state of the )oin, (hi)h, at that time, renders
a )ertain quantity of )oin either of more 'alue or of less 'alue
than the +re)ise quantity of &ullion (hi)h it ou*ht to )ontain-
The )onstan)y and steadiness of the effe)t su++oses a
+ro+ortiona&le )onstan)y and steadiness in the )ause-
The money of any +arti)ular )ountry is, at any +arti)ular
time and +la)e, more or less an a))urate measure of 'alue
a))ordin* as the )urrent )oin is more or less e1a)tly a*reea&le
to its standard, or )ontains more or less e1a)tly the +re)ise
quantity of +ure *old or +ure sil'er (hi)h it ou*ht to )ontain-
If in $n*land, for e1am+le, forty8four *uineas and a half
)ontained e1a)tly a +ound (ei*ht of standard *old, or ele'en
oun)es of fine *old and one oun)e of alloy, the *old )oin of
$n*land (ould &e as a))urate a measure of the a)tual 'alue of
*oods at any +arti)ular time and +la)e as the nature of the thin*
(ould admit- .ut if, &y ru&&in* and (earin*, forty8four *uineas
and a half *enerally )ontain less than a +ound (ei*ht of standard
*old/ the diminution, ho(e'er, &ein* *reater in some +ie)es than
in others/ the measure of 'alue )omes to &e lia&le to the same
sort of un)ertainty to (hi)h all other (ei*hts and measures are
)ommonly e1+osed- As it rarely ha++ens that these are e1a)tly
a*reea&le to their standard, the mer)hant ad2usts the +ri)e of
his *oods, as (ell as he )an, not to (hat those (ei*hts and
measures ou*ht to &e, &ut to (hat, u+on an a'era*e, he finds &y
e1+erien)e they a)tually are- In )onsequen)e of a li0e disorder
in the )oin, the +ri)e of *oods )omes, in the same manner, to &e
ad2usted, not to the quantity of +ure *old or sil'er (hi)h the
)orn ou*ht to )ontain, &ut to that (hi)h, u+on an a'era*e, it is
found &y e1+erien)e, it a)tually does )ontain-
.y the money8+ri)e of *oods, it is to &e o&ser'ed, I
understand al(ays the quantity of +ure *old or sil'er for (hi)h
they are sold, (ithout any re*ard to the denomination of the
)oin- Si1 shillin*s and ei*ht+en)e, for e1am+le, in the time of
$d(ard I, I )onsider as the same money8+ri)e (ith a +ound
sterlin* in the +resent times/ &e)ause it )ontained, as nearly as
(e )an 2ud*e, the same quantity of +ure sil'er-
C#AT$R 5I
Of the Com+onent arts of the ri)e of Commodities
IN that early and rude state of so)iety (hi)h +re)edes &oth
the a))umulation of sto)0 and the a++ro+riation of land, the
+ro+ortion &et(een the quantities of la&our ne)essary for
a)quirin* different o&2e)ts seems to &e the only )ir)umstan)e
(hi)h )an afford any rule for e1)han*in* them for one another- If
amon* a nation of hunters, for e1am+le, it usually )osts t(i)e
the la&our to 0ill a &ea'er (hi)h it does to 0ill a deer, one
&ea'er should naturally e1)han*e for or &e (orth t(o deer- It is
natural that (hat is usually the +rodu)e of t(o days= or t(o
hours= la&our, should &e (orth dou&le of (hat is usually the
+rodu)e of one day=s or one hour=s la&our-
If the one s+e)ies of la&our should &e more se'ere than the
other, some allo(an)e (ill naturally &e made for this su+erior
hardshi+/ and the +rodu)e of one hour=s la&our in the one (ay may
frequently e1)han*e for that of t(o hours= la&our in the other-
Or if the one s+e)ies of la&our requires an un)ommon de*ree
of de1terity and in*enuity, the esteem (hi)h men ha'e for su)h
talents (ill naturally *i'e a 'alue to their +rodu)e, su+erior to
(hat (ould &e due to the time em+loyed a&out it- Su)h talents )an
seldom &e a)quired &ut in )onsequen)e of lon* a++li)ation, and
the su+erior 'alue of their +rodu)e may frequently &e no more
than a reasona&le )om+ensation for the time and la&our (hi)h must
&e s+ent in a)quirin* them- In the ad'an)ed state of so)iety,
allo(an)es of this 0ind, for su+erior hardshi+ and su+erior
s0ill, are )ommonly made in the (a*es of la&our/ and somethin* of
the same 0ind must +ro&a&ly ha'e ta0en +la)e in its earliest and
rudest +eriod-
In this state of thin*s, the (hole +rodu)e of la&our &elon*s
to the la&ourer/ and the quantity of la&our )ommonly em+loyed in
a)quirin* or +rodu)in* any )ommodity is the only )ir)umstan)e
(hi)h )an re*ulate the quantity e1)han*e for (hi)h it ou*ht
)ommonly to +ur)hase, )ommand, or e1)han*e for-
As soon as sto)0 has a))umulated in the hands of +arti)ular
+ersons, some of them (ill naturally em+loy it in settin* to (or0
industrious +eo+le, (hom they (ill su++ly (ith materials and
su&sisten)e, in order to ma0e a +rofit &y the sale of their (or0,
or &y (hat their la&our adds to the 'alue of the materials- In
e1)han*in* the )om+lete manufa)ture either for money, for la&our,
or for other *oods, o'er and a&o'e (hat may &e suffi)ient to +ay
the +ri)e of the materials, and the (a*es of the (or0men,
somethin* must &e *i'en for the +rofits of the underta0er of the
(or0 (ho ha;ards his sto)0 in this ad'enture- The 'alue (hi)h the
(or0men add to the materials, therefore, resol'es itself in this
ease into t(o +arts, of (hi)h the one +ays their (a*es, the other
the +rofits of their em+loyer u+on the (hole sto)0 of materials
and (a*es (hi)h he ad'an)ed- #e )ould ha'e no interest to em+loy
them, unless he e1+e)ted from the sale of their (or0 somethin*
more than (hat (as suffi)ient to re+la)e his sto)0 to him/ and he
)ould ha'e no interest to em+loy a *reat sto)0 rather than a
small one, unless his +rofits (ere to &ear some +ro+ortion to the
e1tent of his sto)0-
The +rofits of sto)0, it may +erha+s &e thou*ht are only a
different name for the (a*es of a +arti)ular sort of la&our, the
la&our of ins+e)tion and dire)tion- They are, ho(e'er, alto*ether
different, are re*ulated &y quite different +rin)i+les, and &ear
no +ro+ortion to the quantity, the hardshi+, or the in*enuity of
this su++osed la&our of ins+e)tion and dire)tion- They are
re*ulated alto*ether &y the 'alue of the sto)0 em+loyed, and are
*reater or smaller in +ro+ortion to the e1tent of this sto)0- !et
us su++ose, for e1am+le, that in some +arti)ular +la)e, (here the
)ommon annual +rofits of manufa)turin* sto)0 are ten +er )ent,
there are t(o different manufa)tures, in ea)h of (hi)h t(enty
(or0men are em+loyed at the rate of fifteen +ounds a year ea)h,
or at the e1+ense of three hundred a year in ea)h manufa)tory-
!et us su++ose, too, that the )oarse materials annually (rou*ht
u+ in the one )ost only se'en hundred +ounds, (hile the finer
materials in the other )ost se'en thousand- The )a+ital annually
em+loyed in the one (ill in this )ase amount only to one thousand
+ounds/ (hereas that em+loyed in the other (ill amount to se'en
thousand three hundred +ounds- At the rate of ten +er )ent,
therefore, the underta0er of the one (ill e1+e)t a yearly +rofit
of a&out one hundred +ounds only/ (hile that of the other (ill
e1+e)t a&out se'en hundred and thirty +ounds- .ut thou*h their
+rofits are so 'ery different, their la&our of ins+e)tion and
dire)tion may &e either alto*ether or 'ery nearly the same- In
many *reat (or0s almost the (hole la&our of this 0ind is
)ommitted to some +rin)i+al )ler0- #is (a*es +ro+erly e1+ress the
'alue of this la&our of ins+e)tion and dire)tion- Thou*h in
settlin* them some re*ard is had )ommonly, not only to his la&our
and s0ill, &ut to the trust (hi)h is re+osed in him, yet they
ne'er &ear any re*ular +ro+ortion to the )a+ital of (hi)h he
o'ersees the mana*ement/ and the o(ner of this )a+ital, thou*h he
is thus dis)har*ed of almost all la&our, still e1+e)ts that his
+rofits should &ear a re*ular +ro+ortion to his )a+ital- In the
+ri)e of )ommodities, therefore, the +rofits of sto)0 )onstitute
a )om+onent +art alto*ether different from the (a*es of la&our,
and re*ulated &y quite different +rin)i+les-
In this state of thin*s, the (hole +rodu)e of la&our does
not al(ays &elon* to the la&ourer- #e must in most )ases share it
(ith the o(ner of the sto)0 (hi)h em+loys him- Neither is the
quantity of la&our )ommonly em+loyed in a)quirin* or +rodu)in*
any )ommodity, the only )ir)umstan)e (hi)h )an re*ulate the
quantity (hi)h it ou*ht )ommonly to +ur)hase, )ommand, or
e1)han*e for- An additional quantity, it is e'ident, must &e due
for the +rofits of the sto)0 (hi)h ad'an)ed the (a*es and
furnished the materials of that la&our-
As soon as the land of any )ountry has all &e)ome +ri'ate
+ro+erty, the landlords, li0e all other men, lo'e to rea+ (here
they ne'er so(ed, and demand a rent e'en for its natural +rodu)e-
The (ood of the forest, the *rass of the field, and all the
natural fruits of the earth, (hi)h, (hen land (as in )ommon, )ost
the la&ourer only the trou&le of *atherin* them, )ome, e'en to
him, to ha'e an additional +ri)e fi1ed u+on them- #e must then
+ay for the li)en)e to *ather them/ and must *i'e u+ to the
landlord a +ortion of (hat his la&our either )olle)ts or
+rodu)es- This +ortion, or, (hat )omes to the same thin*, the
+ri)e of this +ortion, )onstitutes the rent of land, and in the
+ri)e of the *reater +art of )ommodities ma0es a third )om+onent
+art-
The real 'alue of all the different )om+onent +arts of
+ri)e, it must &e o&ser'ed, is measured &y the quantity of la&our
(hi)h they )an, ea)h of them, +ur)hase or )ommand- !a&our
measures the 'alue not only of that +art of +ri)e (hi)h resol'es
itself into la&our, &ut of that (hi)h resol'es itself into rent,
and of that (hi)h resol'es itself into +rofit-
In e'ery so)iety the +ri)e of e'ery )ommodity finally
resol'es itself into some one or other, or all of those three
+arts/ and in e'ery im+ro'ed so)iety, all the three enter more or
less, as )om+onent +arts, into the +ri)e of the far *reater +art
of )ommodities-
In the +ri)e of )orn, for e1am+le, one +art +ays the rent of
the landlord, another +ays the (a*es or maintenan)e of the
la&ourers and la&ourin* )attle em+loyed in +rodu)in* it, and the
third +ays the +rofit of the farmer- These three +arts seem
either immediately or ultimately to ma0e u+ the (hole +ri)e of
)orn- A fourth +art, it may +erha+s &e thou*ht, is ne)essary for
re+la)in* the sto)0 of the farmer, or for )om+ensatin* the (ear
and tear of his la&ourin* )attle, and other instruments of
hus&andry- .ut it must &e )onsidered that the +ri)e of any
instrument of hus&andry, su)h as a la&ourin* horse, is itself
made u+ of the same three +arts/ the rent of the land u+on (hi)h
he is reared, the la&our of tendin* and rearin* him, and the
+rofits of the farmer (ho ad'an)es &oth the rent of this land,
and the (a*es of this la&our- Thou*h the +ri)e of the )orn,
therefore, may +ay the +ri)e as (ell as the maintenan)e of the
horse, the (hole +ri)e still resol'es itself either immediately
or ultimately into the same three +arts of rent, la&our, and
+rofit-
In the +ri)e of flour or meal, (e must add to the +ri)e of
the )orn, the +rofits of the miller, and the (a*es of his
ser'ants/ in the +ri)e of &read, the +rofits of the &a0er, and
the (a*es of his ser'ants/ and in the +ri)e of &oth, the la&our
of trans+ortin* the )orn from the house of the farmer to that of
the miller, and from that of the miner to that of the &a0er,
to*ether (ith the +rofits of those (ho ad'an)e the (a*es of that
la&our-
The +ri)e of fla1 resol'es itself into the same three +arts
as that of )orn- In the +ri)e of linen (e must add to this +ri)e
the (a*es of the fla1dresser, of the s+inner, of the (ea'er, of
the &lea)her, et)-, to*ether (ith the +rofits of their res+e)ti'e
em+loyers-
As any +arti)ular )ommodity )omes to &e more manufa)tured,
that +art of the +ri)e (hi)h resol'es itself into (a*es and
+rofit )omes to &e *reater in +ro+ortion to that (hi)h resol'es
itself into rent- In the +ro*ress of the manufa)ture, not only
the num&er of +rofits in)rease, &ut e'ery su&sequent +rofit is
*reater than the fore*oin*/ &e)ause the )a+ital from (hi)h it is
deri'ed must al(ays &e *reater- The )a+ital (hi)h em+loys the
(ea'ers, for e1am+le, must &e *reater than that (hi)h em+loys the
s+inners/ &e)ause it not only re+la)es that )a+ital (ith its
+rofits, &ut +ays, &esides, the (a*es of the (ea'ers/ and the
+rofits must al(ays &ear some +ro+ortion to the )a+ital-
In the most im+ro'ed so)ieties, ho(e'er, there are al(ays a
fe( )ommodities of (hi)h the +ri)e resol'es itself into t(o +arts
only, the (a*es of la&our, and the +rofits of sto)0/ and a still
smaller num&er, in (hi)h it )onsists alto*ether in the (a*es of
la&our- In the +ri)e of sea8fish, for e1am+le, one +art +ays the
la&our of the fishermen, and the other the +rofits of the )a+ital
em+loyed in the fishery- Rent 'ery seldom ma0es any +art of it,
thou*h it does sometimes, as I shall sho( hereafter- It is
other(ise, at least throu*h the *reater +art of $uro+e, in ri'er
fisheries- A salmon fishery +ays a rent, and rent, thou*h it
)annot (ell &e )alled the rent of land, ma0es a +art of the +ri)e
of a salmon as (ell as (a*es and +rofit- In some +arts of
S)otland a fe( +oor +eo+le ma0e a trade of *atherin*, alon* the
sea8shore, those little 'arie*ated stones )ommonly 0no(n &y the
name of S)ot)h e&&les- The +ri)e (hi)h is +aid to them &y the
stone8)utter is alto*ether the (a*es of their la&our/ neither
rent nor +rofit ma0e any +art of it-
.ut the (hole +ri)e of any )ommodity must still finally
resol'e itself into some one or other, or all of those three
+arts/ as (hate'er +art of it remains after +ayin* the rent of
the land, and the +ri)e of the (hole la&our em+loyed in raisin*,
manufa)turin*, and &rin*in* it to mar0et, must ne)essarily &e
+rofit to some&ody-
As the +ri)e or e1)han*ea&le 'alue of e'ery +arti)ular
)ommodity, ta0en se+arately, resol'es itself into some one or
other or all of those three +arts/ so that of all the )ommodities
(hi)h )om+ose the (hole annual +rodu)e of the la&our of e'ery
)ountry, ta0en )om+le1ly, must resol'e itself into the same three
+arts, and &e +ar)elled out amon* different inha&itants of the
)ountry, either as the (a*es of their la&our, the +rofits of
their sto)0, or the rent of their land- The (hole of (hat is
annually either )olle)ted or +rodu)ed &y the la&our of e'ery
so)iety, or (hat )omes to the same thin*, the (hole +ri)e of it,
is in this manner ori*inally distri&uted amon* some of its
different mem&ers- Wa*es, +rofit, and rent, are the three
ori*inal sour)es of all re'enue as (ell as of all e1)han*ea&le
'alue- All other re'enue is ultimately deri'ed from some one or
other of these-
Whoe'er deri'es his re'enue from a fund (hi)h is his o(n,
must dra( it either from his la&our, from his sto)0, or from his
land- The re'enue deri'ed from la&our is )alled (a*es- That
deri'ed from sto)0, &y the +erson (ho mana*es or em+loyes it, is
)alled +rofit- That deri'ed from it &y the +erson (ho does not
em+loy it himself, &ut lends it to another, is )alled the
interest or the use of money- It is the )om+ensation (hi)h the
&orro(er +ays to the lender, for the +rofit (hi)h he has an
o++ortunity of ma0in* &y the use of the money- art of that
+rofit naturally &elon*s to the &orro(er, (ho runs the ris0 and
ta0es the trou&le of em+loyin* it/ and +art to the lender, (ho
affords him the o++ortunity of ma0in* this +rofit- The interest
of money is al(ays a deri'ati'e re'enue, (hi)h, if it is not +aid
from the +rofit (hi)h is made &y the use of the money, must &e
+aid from some other sour)e of re'enue, unless +erha+s the
&orro(er is a s+endthrift, (ho )ontra)ts a se)ond de&t in order
to +ay the interest of the first- The re'enue (hi)h +ro)eeds
alto*ether from land, is )alled rent, and &elon*s to the
landlord- The re'enue of the farmer is deri'ed +artly from his
la&our, and +artly from his sto)0- To him, land is only the
instrument (hi)h ena&les him to earn the (a*es of this la&our,
and to ma0e the +rofits of this sto)0- All ta1es, and an the
re'enue (hi)h is founded u+on them, all salaries, +ensions, and
annuities of e'ery 0ind, are ultimately deri'ed from some one or
other of those three ori*inal sour)es of re'enue, and are +aid
either immediately or mediately from the (a*es of la&our, the
+rofits of sto)0, or the rent of land-
When those three different sorts of re'enue &elon* to
different +ersons, they are readily distin*uished/ &ut (hen they
&elon* to the same they are sometimes )onfounded (ith one
another, at least in )ommon lan*ua*e-
A *entleman (ho farms a +art of his o(n estate, after +ayin*
the e1+ense of )ulti'ation, should *ain &oth the rent of the
landlord and the +rofit of the farmer- #e is a+t to denominate,
ho(e'er, his (hole *ain, +rofit, and thus )onfounds rent (ith
+rofit, at least in )ommon lan*ua*e- The *reater +art of our
North Ameri)an and West Indian +lanters are in this situation-
They farm, the *reater +art of them, their o(n estates, and
a))ordin*ly (e seldom hear of the rent of a +lantation, &ut
frequently of its +rofit-
Common farmers seldom em+loy any o'erseer to dire)t the
*eneral o+erations of the farm- They *enerally, too, (or0 a *ood
deal (ith their o(n hands, as +lou*hmen, harro(ers, et)- What
remains of the )ro+ after +ayin* the rent, therefore, should not
only re+la)e to them their sto)0 em+loyed in )ulti'ation,
to*ether (ith its ordinary +rofits, &ut +ay them the (a*es (hi)h
are due to them, &oth as la&ourers and o'erseers- Whate'er
remains, ho(e'er, after +ayin* the rent and 0ee+in* u+ the sto)0,
is )alled +rofit- .ut (a*es e'idently ma0e a +art of it- The
farmer, &y sa'in* these (a*es, must ne)essarily *ain them- Wa*es,
therefore, are in this )ase )onfounded (ith +rofit-
An inde+endent manufa)turer, (ho has sto)0 enou*h &oth to
+ur)hase materials, and to maintain himself till he )an )arry his
(or0 to mar0et, should *ain &oth the (a*es of a 2ourneyman (ho
(or0s under a master, and the +rofit (hi)h that master ma0es &y
the sale of the 2ourneyman=s (or0- #is (hole *ains, ho(e'er, are
)ommonly )alled +rofit, and (a*es are, in this )ase too,
)onfounded (ith +rofit-
A *ardener (ho )ulti'ates his o(n *arden (ith his o(n hands,
unites in his o(n +erson the three different )hara)ters of
landlord, farmer, and la&ourer- #is +rodu)e, therefore, should
+ay him the rent of the first, the +rofit of the se)ond, and the
(a*es of the third- The (hole, ho(e'er, is )ommonly )onsidered as
the earnin*s of his la&our- .oth rent and +rofit are, in this
)ase, )onfounded (ith (a*es-
As in a )i'ilised )ountry there are &ut fe( )ommodities of
(hi)h the e1)han*ea&le 'alue arises from la&our only, rent and
+rofit )ontri&utin* lar*ely to that of the far *reater +art of
them, so the annual +rodu)e of its la&our (ill al(ays &e
suffi)ient to +ur)hase or )ommand a mu)h *reater quantity of
la&our than (hat em+loyed in raisin*, +re+arin*, and &rin*in*
that +rodu)e to mar0et- If the so)iety (ere annually to em+loy
all the la&our (hi)h it )an annually +ur)hase, as the quantity of
la&our (ould in)rease *reatly e'ery year, so the +rodu)e of e'ery
su))eedin* year (ould &e of 'astly *reater 'alue than that of the
fore*oin*- .ut there is no )ountry in (hi)h the (hole annual
+rodu)e is em+loyed in maintainin* the industrious- The idle
e'ery(here )onsume a *reat +art of it/ and a))ordin* to the
different +ro+ortions in (hi)h it is annually di'ided &et(een
those t(o different orders of +eo+le, its ordinary or a'era*e
'alue must either annually in)rease, or diminish, or )ontinue the
same from one year to another-
C#AT$R 5II
Of the Natural and 4ar0et ri)e of Commodities
T#$R$ is in e'ery so)iety or nei*h&ourhood an ordinary or
a'era*e rate &oth of (a*es and +rofit in e'ery different
em+loyment of la&our and sto)0- This rate is naturally re*ulated,
as I shall sho( hereafter, +artly &y the *eneral )ir)umstan)es of
the so)iety, their ri)hes or +o'erty, their ad'an)in*,
stationary, or de)linin* )ondition/ and +artly &y the +arti)ular
nature of ea)h em+loyment-
There is li0e(ise in e'ery so)iety or nei*h&ourhood an
ordinary or a'era*e rate of rent, (hi)h is re*ulated too, as I
shall sho( hereafter, +artly &y the *eneral )ir)umstan)es of the
so)iety or nei*h&ourhood in (hi)h the land is situated, and
+artly &y the natural or im+ro'ed fertility of the land-
These ordinary or a'era*e rates may &e )alled the natural
rates of (a*es, +rofit, and rent, at the time and +la)e in (hi)h
they )ommonly +re'ail-
When the +ri)e of any )ommodity is neither more nor less
than (hat is suffi)ient to +ay the rent of the land, the (a*es of
the la&our, and the +rofits of the sto)0 em+loyed in raisin*,
+re+arin*, and &rin*in* it to mar0et, a))ordin* to their natural
rates, the )ommodity is then sold for (hat may &e )alled its
natural +ri)e-
The )ommodity is then sold +re)isely for (hat it is (orth,
or for (hat it really )osts the +erson (ho &rin*s it to mar0et/
for thou*h in )ommon lan*ua*e (hat is )alled the +rime )ost of
any )ommodity does not )om+rehend the +rofit of the +erson (ho is
to sell it a*ain, yet if he sell it at a +ri)e (hi)h does not
allo( him the ordinary rate of +rofit in his nei*h&ourhood, he is
e'idently a loser &y the trade/ sin)e &y em+loyin* his sto)0 in
some other (ay he mi*ht ha'e made that +rofit- #is +rofit,
&esides, is his re'enue, the +ro+er fund of his su&sisten)e- As,
(hile he is +re+arin* and &rin*in* the *oods to mar0et, he
ad'an)es to his (or0men their (a*es, or their su&sisten)e/ so he
ad'an)es to himself, in the same manner, his o(n su&sisten)e,
(hi)h is *enerally suita&le to the +rofit (hi)h he may reasona&ly
e1+e)t from the sale of his *oods- Unless they yield him this
+rofit, therefore, they do not re+ay him (hat they may 'ery
+ro+erly &e said to ha'e really )ost him-
Thou*h the +ri)e, therefore, (hi)h lea'es him this +rofit is
not al(ays the lo(est at (hi)h a dealer may sometimes sell his
*oods, it is the lo(est at (hi)h he is li0ely to sell them for
any )onsidera&le time/ at least (here there is +erfe)t li&erty,
or (here he may )han*e his trade as often as he +leases-
The a)tual +ri)e at (hi)h any )ommodity is )ommonly sold is
)alled its mar0et +ri)e- It may either &e a&o'e, or &elo(, or
e1a)tly the same (ith its natural +ri)e-
The mar0et +ri)e of e'ery +arti)ular )ommodity is re*ulated
&y the +ro+ortion &et(een the quantity (hi)h is a)tually &rou*ht
to mar0et, and the demand of those (ho are (illin* to +ay the
natural +ri)e of the )ommodity, or the (hole 'alue of the rent,
la&our, and +rofit, (hi)h must &e +aid in order to &rin* it
thither- Su)h +eo+le may &e )alled the effe)tual demanders, and
their demand the effe)tual demand/ sin)e it may &e suffi)ient to
effe)tuate the &rin*in* of the )ommodity to mar0et- It is
different from the a&solute demand- A 'ery +oor man may &e said
in some sense to ha'e a demand for a )oa)h and si1/ he mi*ht li0e
to ha'e it/ &ut his demand is not an effe)tual demand, as the
)ommodity )an ne'er &e &rou*ht to mar0et in order to satisfy it-
When the quantity of any )ommodity (hi)h is &rou*ht to
mar0et falls short of the effe)tual demand, all those (ho are
(illin* to +ay the (hole 'alue of the rent, (a*es, and +rofit,
(hi)h must &e +aid in order to &rin* it thither, )annot &e
su++lied (ith the quantity (hi)h they (ant- Rather than (ant it
alto*ether, some of them (ill &e (illin* to *i'e more- A
)om+etition (ill immediately &e*in amon* them, and the mar0et
+ri)e (ill rise more or less a&o'e the natural +ri)e, a))ordin*
as either the *reatness of the defi)ien)y, or the (ealth and
(anton lu1ury of the )om+etitors, ha++en to animate more or less
the ea*erness of the )om+etition- Amon* )om+etitors of equal
(ealth and lu1ury the same defi)ien)y (ill *enerally o))asion a
more or less ea*er )om+etition, a))ordin* as the a)quisition of
the )ommodity ha++ens to &e of more or less im+ortan)e to them-
#en)e the e1or&itant +ri)e of the ne)essaries of life durin* the
&lo)0ade of a to(n or in a famine-
When the quantity &rou*ht to mar0et e1)eeds the effe)tual
demand, it )annot &e all sold to those (ho are (illin* to +ay the
(hole 'alue of the rent, (a*es, and +rofit, (hi)h must &e +aid in
order to &rin* it thither- Some +art must &e sold to those (ho
are (illin* to +ay less, and the lo( +ri)e (hi)h they *i'e for it
must redu)e the +ri)e of the (hole- The mar0et +ri)e (ill sin0
more or less &elo( the natural +ri)e, a))ordin* as the *reatness
of the e1)ess in)reases more or less the )om+etition of the
sellers, or a))ordin* as it ha++ens to &e more or less im+ortant
to them to *et immediately rid of the )ommodity- The same e1)ess
in the im+ortation of +erisha&le, (ill o))asion a mu)h *reater
)om+etition than in that of dura&le )ommodities/ in the
im+ortation of oran*es, for e1am+le, than in that of old iron-
When the quantity &rou*ht to mar0et is 2ust suffi)ient to
su++ly the effe)tual demand, and no more, the mar0et +ri)e
naturally )omes to &e either e1a)tly, or as nearly as )an &e
2ud*ed of, the same (ith the natural +ri)e- The (hole quantity
u+on hand )an &e dis+osed of for this +ri)e, and )annot &e
dis+osed of for more- The )om+etition of the different dealers
o&li*es them all to a))e+t of this +ri)e, &ut does not o&li*e
them to a))e+t of less-
The quantity of e'ery )ommodity &rou*ht to mar0et naturally
suits itself to the effe)tual demand- It is the interest of all
those (ho em+loy their land, la&our, or sto)0, in &rin*in* any
)ommodity to mar0et, that the quantity ne'er should e1)eed the
effe)tual demand/ and it is the interest of all other +eo+le that
it ne'er should fall short of that demand-
If at any time it e1)eeds the effe)tual demand, some of the
)om+onent +arts of its +ri)e must &e +aid &elo( their natural
rate- If it is rent, the interest of the landlords (ill
immediately +rom+t them to (ithdra( a +art of their land/ and if
it is (a*es or +rofit, the interest of the la&ourers in the one
)ase, and of their em+loyers in the other, (ill +rom+t them to
(ithdra( a +art of their la&our or sto)0 from this em+loyment-
The quantity &rou*ht to mar0et (ill soon &e no more than
suffi)ient to su++ly the effe)tual demand- All the different
+arts of its +ri)e (ill rise to their natural rate, and the (hole
+ri)e to its natural +ri)e-
If, on the )ontrary, the quantity &rou*ht to mar0et should
at any time fall short of the effe)tual demand, some of the
)om+onent +arts of its +ri)e must rise a&o'e their natural rate-
If it is rent, the interest of all other landlords (ill naturally
+rom+t them to +re+are more land for the raisin* of this
)ommodity/ if it is (a*es or +rofit, the interest of all other
la&ourers and dealers (ill soon +rom+t them to em+loy more la&our
and sto)0 in +re+arin* and &rin*in* it to mar0et- The quantity
&rou*ht thither (ill soon &e suffi)ient to su++ly the effe)tual
demand- All the different +arts of its +ri)e (ill soon sin0 to
their natural rate, and the (hole +ri)e to its natural +ri)e-
The natural +ri)e, therefore, is, as it (ere, the )entral
+ri)e, to (hi)h the +ri)es of all )ommodities are )ontinually
*ra'itatin*- Different a))idents may sometimes 0ee+ them
sus+ended a *ood deal a&o'e it, and sometimes for)e them do(n
e'en some(hat &elo( it- .ut (hate'er may &e the o&sta)les (hi)h
hinder them from settlin* in this )entre of re+ose and
)ontinuan)e, they are )onstantly tendin* to(ards it-
The (hole quantity of industry annually em+loyed in order to
&rin* any )ommodity to mar0et naturally suits itself in this
manner to the effe)tual demand- It naturally aims at &rin*in*
al(ays that +re)ise quantity thither (hi)h may &e suffi)ient to
su++ly, and no more than su++ly, that demand-
.ut in some em+loyments the same quantity of industry (ill
in different years +rodu)e 'ery different quantities of
)ommodities/ (hile in others it (ill +rodu)e al(ays the same, or
'ery nearly the same- The same num&er of la&ourers in hus&andry
(ill, in different years, +rodu)e 'ery different quantities of
)orn, (ine, oil, ho+s, et)- .ut the same num&er of s+inners and
(ea'ers (ill e'ery year +rodu)e the same or 'ery nearly the same
quantity of linen and (oollen )loth- It is only the a'era*e
+rodu)e of the one s+e)ies of industry (hi)h )an &e suited in any
res+e)t to the effe)tual demand/ and as its a)tual +rodu)e is
frequently mu)h *reater and frequently mu)h less than its a'era*e
+rodu)e, the quantity of the )ommodities &rou*ht to mar0et (ill
sometimes e1)eed a *ood deal, and sometimes fall short a *ood
deal, of the effe)tual demand- $'en thou*h that demand therefore
should )ontinue al(ays the same, their mar0et +ri)e (ill &e
lia&le to *reat flu)tuations, (ill sometimes fall a *ood deal
&elo(, and sometimes rise a *ood deal a&o'e their natural +ri)e-
In the other s+e)ies of industry, the +rodu)e of equal quantities
of la&our &ein* al(ays the same, or 'ery nearly the same, it )an
&e more e1a)tly suited to the effe)tual demand- While that demand
)ontinues the same, therefore, the mar0et +ri)e of the
)ommodities is li0ely to do so too, and to &e either alto*ether,
or as nearly as )an &e 2ud*ed of, the same (ith the natural
+ri)e- That the +ri)e of linen and (oolen )loth is lia&le neither
to su)h frequent nor to su)h *reat 'ariations as the +ri)e of
)orn, e'ery man=s e1+erien)e (ill inform him- The +ri)e of the
one s+e)ies of )ommodities 'aries only (ith the 'ariations in the
demand3 that of the other 'aries, not only (ith the 'ariations in
the demand, &ut (ith the mu)h *reater and more frequent
'ariations in the quantity of (hat is &rou*ht to mar0et in order
to su++ly that demand-
The o))asional and tem+orary flu)tuations in the mar0et
+ri)e of any )ommodity fall )hiefly u+on those +arts of its +ri)e
(hi)h resol'e themsel'es into (a*es and +rofit- That +art (hi)h
resol'es itself into rent is less affe)ted &y them- A rent
)ertain in money is not in the least affe)ted &y them either in
its rate or in its 'alue- A rent (hi)h )onsists either in a
)ertain +ro+ortion or in a )ertain quantity of the rude +rodu)e,
is no dou&t affe)ted in its yearly 'alue &y all the o))asional
and tem+orary flu)tuations in the mar0et +ri)e of that rude
+rodu)e/ &ut it is seldom affe)ted &y them in its yearly rate- In
settlin* the terms of the lease, the landlord and farmer
endea'our, a))ordin* to their &est 2ud*ment, to ad2ust that rate,
not to the tem+orary and o))asional, &ut to the a'era*e and
ordinary +ri)e of the +rodu)e-
Su)h flu)tuations affe)t &oth the 'alue and the rate either
of (a*es or of +rofit, a))ordin* as the mar0et ha++ens to &e
either o'ersto)0ed or understo)0ed (ith )ommodities or (ith
la&our/ (ith (or0 done, or (ith (or0 to &e done- A +u&li)
mournin* raises the +ri)e of &la)0 )loth 9(ith (hi)h the mar0et
is almost al(ays understo)0ed u+on su)h o))asions:, and au*ments
the +rofits of the mer)hants (ho +ossess any )onsidera&le
quantity of it- It has no effe)t u+on the (a*es of the (ea'ers-
The mar0et is understo)0ed (ith )ommodities, not (ith la&our/
(ith (or0 done, not (ith (or0 to &e done- It raises the (a*es of
2ourneymen tailors- The mar0et is here understo)0ed (ith la&our-
There is an effe)tual demand for more la&our, for more (or0 to &e
done than )an &e had- It sin0s the +ri)e of )oloured sil0s and
)loths, and there&y redu)es the +rofits of the mer)hants (ho ha'e
any )onsidera&le quantity of them u+on hand- It sin0s, too, the
(a*es of the (or0men em+loyed in +re+arin* su)h )ommodities, for
(hi)h all demand is sto++ed for si1 months, +erha+s for a
t(el'emonth- The mar0et is here o'er8sto)0ed &oth (ith
)ommodities and (ith la&our-
.ut thou*h the mar0et +ri)e of e'ery +arti)ular )ommodity is
in this manner )ontinually *ra'itatin*, if one may say so,
to(ards the natural +ri)e, yet sometimes +arti)ular a))idents,
sometimes natural )auses, and sometimes +arti)ular re*ulations of
+oli)e, may, in many )ommodities, 0ee+ u+ the mar0et +ri)e, for a
lon* time to*ether, a *ood deal a&o'e the natural +ri)e-
When &y an in)rease in the effe)tual demand, the mar0et
+ri)e of some +arti)ular )ommodity ha++ens to rise a *ood deal
a&o'e the natural +ri)e, those (ho em+loy their sto)0s in
su++lyin* that mar0et are *enerally )areful to )on)eal this
)han*e- If it (as )ommonly 0no(n, their *reat +rofit (ould tem+t
so many ne( ri'als to em+loy their sto)0s in the same (ay that,
the effe)tual demand &ein* fully su++lied, the mar0et +ri)e (ould
soon &e redu)ed to the natural +ri)e, and +erha+s for some time
e'en &elo( it- If the mar0et is at a *reat distan)e from the
residen)e of those (ho su++ly it, they may sometimes &e a&le to
0ee+ the se)ret for se'eral years to*ether, and may so lon* en2oy
their e1traordinary +rofits (ithout any ne( ri'als- Se)rets of
this 0ind, ho(e'er, it must &e a)0no(led*ed, )an seldom &e lon*
0e+t/ and the e1traordinary +rofit )an last 'ery little lon*er
than they are 0e+t-
Se)rets in manufa)tures are )a+a&le of &ein* lon*er 0e+t
than se)rets in trade- A dyer (ho has found the means of
+rodu)in* a +arti)ular )olour (ith materials (hi)h )ost only half
the +ri)e of those )ommonly made use of, may, (ith *ood
mana*ement, en2oy the ad'anta*e of his dis)o'ery as lon* as he
li'es, and e'en lea'e it as a le*a)y to his +osterity- #is
e1traordinary *ains arise from the hi*h +ri)e (hi)h is +aid for
his +ri'ate la&our- They +ro+erly )onsist in the hi*h (a*es of
that la&our- .ut as they are re+eated u+on e'ery +art of his
sto)0, and as their (hole amount &ears, u+on that a))ount, a
re*ular +ro+ortion to it, they are )ommonly )onsidered as
e1traordinary +rofits of sto)0-
Su)h enhan)ements of the mar0et +ri)e are e'idently the
effe)ts of +arti)ular a))idents, of (hi)h, ho(e'er, the o+eration
may sometimes last for many years to*ether-
Some natural +rodu)tions require su)h a sin*ularity of soil
and situation that all the land in a *reat )ountry, (hi)h is fit
for +rodu)in* them, may not &e suffi)ient to su++ly the effe)tual
demand- The (hole quantity &rou*ht to mar0et, therefore, may &e
dis+osed of to those (ho are (illin* to *i'e more than (hat is
suffi)ient to +ay the rent of the land (hi)h +rodu)ed them,
to*ether (ith the (a*es of the la&our, and the +rofits of the
sto)0 (hi)h (ere em+loyed in +re+arin* and &rin*in* them to
mar0et, a))ordin* to their natural rates- Su)h )ommodities may
)ontinue for (hole )enturies to*ether to &e sold at this hi*h
+ri)e/ and that +art of it (hi)h resol'es itself into the rent of
land is in this )ase the +art (hi)h is *enerally +aid a&o'e its
natural rate- The rent of the land (hi)h affords su)h sin*ular
and esteemed +rodu)tions, li0e the rent of some 'ineyards in
"ran)e of a +e)uliarly ha++y soil and situation, &ears no re*ular
+ro+ortion to the rent of other equally fertile and equally
(ell8)ulti'ated land in its nei*h&ourhood- The (a*es of the
la&our and the +rofits of the sto)0 em+loyed in &rin*in* su)h
)ommodities to mar0et, on the )ontrary, are seldom out of their
natural +ro+ortion to those of the other em+loyments of la&our
and sto)0 in their nei*h&ourhood-
Su)h enhan)ements of the mar0et +ri)e are e'idently the
effe)t of natural )auses (hi)h may hinder the effe)tual demand
from e'er &ein* fully su++lied, and (hi)h may )ontinue,
therefore, to o+erate for e'er-
A mono+oly *ranted either to an indi'idual or to a tradin*
)om+any has the same effe)t as a se)ret in trade or manufa)tures-
The mono+olists, &y 0ee+in* the mar0et )onstantly understo)0ed,
&y ne'er fully su++lyin* the effe)tual demand, sell their
)ommodities mu)h a&o'e the natural +ri)e, and raise their
emoluments, (hether they )onsist in (a*es or +rofit, *reatly
a&o'e their natural rate-
The +ri)e of mono+oly is u+on e'ery o))asion the hi*hest
(hi)h )an &e *ot- The natural +ri)e, or the +ri)e of free
)om+etition, on the )ontrary, is the lo(est (hi)h )an &e ta0en,
not u+on e'ery o))asion, indeed, &ut for any )onsidera&le time
to*ether- The one is u+on e'ery o))asion the hi*hest (hi)h )an &e
squee;ed out of the &uyers, or (hi)h, it is su++osed, they (ill
)onsent to *i'e3 the other is the lo(est (hi)h the sellers )an
)ommonly afford to ta0e, and at the same time )ontinue their
&usiness-
The e1)lusi'e +ri'ile*es of )or+orations, statutes of
a++renti)eshi+, and all those la(s (hi)h restrain, in +arti)ular
em+loyments, the )om+etition to a smaller num&er than mi*ht
other(ise *o into them, ha'e the same tenden)y, thou*h in a less
de*ree- They are a sort of enlar*ed mono+olies, and may
frequently, for a*es to*ether, and in (hole )lasses of
em+loyments, 0ee+ u+ the mar0et +ri)e of +arti)ular )ommodities
a&o'e the natural +ri)e, and maintain &oth the (a*es of the
la&our and the +rofits of the sto)0 em+loyed a&out them some(hat
a&o'e their natural rate-
Su)h enhan)ements of the mar0et +ri)e may last as lon* as
the re*ulations of +oli)e (hi)h *i'e o))asion to them-
The mar0et +ri)e of any +arti)ular )ommodity, thou*h it may
)ontinue lon* a&o'e, )an seldom )ontinue lon* &elo( its natural
+ri)e- Whate'er +art of it (as +aid &elo( the natural rate, the
+ersons (hose interest it affe)ted (ould immediately feel the
loss, and (ould immediately (ithdra( either so mu)h land, or so
mu)h la&our, or so mu)h sto)0, from &ein* em+loyed a&out it, that
the quantity &rou*ht to mar0et (ould soon &e no more than
suffi)ient to su++ly the effe)tual demand- Its mar0et +ri)e,
therefore, (ould soon rise to the natural +ri)e- This at least
(ould &e the )ase (here there (as +erfe)t li&erty-
The same statutes of a++renti)eshi+ and other )or+oration
la(s indeed, (hi)h, (hen a manufa)ture is in +ros+erity, ena&le
the (or0man to raise his (a*es a *ood deal a&o'e their natural
rate, sometimes o&li*e him, (hen it de)ays, to let them do(n a
*ood deal &elo( it- As in the one )ase they e1)lude many +eo+le
from his em+loyment, so in the other they e1)lude him from many
em+loyments- The effe)t of su)h re*ulations, ho(e'er, is not near
so dura&le in sin0in* the (or0man=s (a*es &elo(, as in raisin*
them a&o'e their natural rate- Their o+eration in the one (ay may
endure for many )enturies, &ut in the other it )an last no lon*er
than the li'es of some of the (or0men (ho (ere &red to the
&usiness in the time of its +ros+erity- When they are *one, the
num&er of those (ho are after(ards edu)ated to the trade (ill
naturally suit itself to the effe)tual demand- The +oli)e must &e
as 'iolent as that of Indostan or an)ient $*y+t 9(here e'ery man
(as &ound &y a +rin)i+le of reli*ion to follo( the o))u+ation of
his father, and (as su++osed to )ommit the most horrid sa)rile*e
if he )han*ed it for another:, (hi)h )an in any +arti)ular
em+loyment, and for se'eral *enerations to*ether, sin0 either the
(a*es of la&our or the +rofits of sto)0 &elo( their natural rate-
This is all that I thin0 ne)essary to &e o&ser'ed at +resent
)on)ernin* the de'iations, (hether o))asional or +ermanent, of
the mar0et +ri)e of )ommodities from the natural +ri)e-
The natural +ri)e itself 'aries (ith the natural rate of
ea)h of its )om+onent +arts, of (a*es, +rofit, and rent/ and in
e'ery so)iety this rate 'aries a))ordin* to their )ir)umstan)es,
a))ordin* to their ri)hes or +o'erty, their ad'an)in*,
stationary, or de)linin* )ondition- I shall, in the four
follo(in* )ha+ters, endea'our to e1+lain, as fully and distin)tly
as I )an, the )auses of those different 'ariations-
"irst, I shall endea'our to e1+lain (hat are the
)ir)umstan)es (hi)h naturally determine the rate of (a*es, and in
(hat manner those )ir)umstan)es are affe)ted &y the ri)hes or
+o'erty, &y the ad'an)in*, stationary, or de)linin* state of the
so)iety-
Se)ondly, I shall endea'our to sho( (hat are the
)ir)umstan)es (hi)h naturally determine the rate of +rofit, and
in (hat manner, too, those )ir)umstan)es are affe)ted &y the li0e
'ariations in the state of the so)iety-
Thou*h +e)uniary (a*es and +rofit are 'ery different in the
different em+loyments of la&our and sto)0/ yet a )ertain
+ro+ortion seems )ommonly to ta0e +la)e &et(een &oth the
+e)uniary (a*es in all the different em+loyments of la&our, and
the +e)uniary +rofits in all the different em+loyments of sto)0-
This +ro+ortion, it (ill a++ear hereafter, de+ends +artly u+on
the nature of the different em+loyments, and +artly u+on the
different la(s and +oli)y of the so)iety in (hi)h they are
)arried on- .ut thou*h in many res+e)ts de+endent u+on the la(s
and +oli)y, this +ro+ortion seems to &e little affe)ted &y the
ri)hes or +o'erty of that so)iety/ &y its ad'an)in*, stationary,
or de)linin* )ondition/ &ut to remain the same or 'ery nearly the
same in all those different states- I shall, in the third +la)e,
endea'our to e1+lain all the different )ir)umstan)es (hi)h
re*ulate this +ro+ortion-
In the fourth and last +la)e, I shall endea'our to sho( (hat
are the )ir)umstan)es (hi)h re*ulate the rent of land, and (hi)h
either raise or lo(er the real +ri)e of all the different
su&stan)es (hi)h it +rodu)es-
C#AT$R 5III
Of the Wa*es of !a&our
T#$ +rodu)e of la&our )onstitutes the natural re)om+ense or
(a*es of la&our-
In that ori*inal state of thin*s, (hi)h +re)edes &oth the
a++ro+riation of land and the a))umulation of sto)0, the (hole
+rodu)e of la&our &elon*s to the la&ourer- #e has neither
landlord nor master to share (ith him-
#ad this state )ontinued, the (a*es of la&our (ould ha'e
au*mented (ith all those im+ro'ements in its +rodu)ti'e +o(ers to
(hi)h the di'ision of la&our *i'es o))asion- All thin*s (ould
*radually ha'e &e)ome )hea+er- They (ould ha'e &een +rodu)ed &y a
smaller quantity of la&our/ and as the )ommodities +rodu)ed &y
equal quantities of la&our (ould naturally in this state of
thin*s &e e1)han*ed for one another, they (ould ha'e &een
+ur)hased li0e(ise (ith the +rodu)e of a smaller quantity-
.ut thou*h all thin*s (ould ha'e &e)ome )hea+er in reality,
in a++earan)e many thin*s mi*ht ha'e &e)ome dearer than &efore,
or ha'e &een e1)han*ed for a *reater quantity of other *oods- !et
us su++ose, for e1am+le, that in the *reater +art of em+loyments
the +rodu)ti'e +o(ers of la&our had &een im+ro'ed to ten fold, or
that a day=s la&our )ould +rodu)e ten times the quantity of (or0
(hi)h it had done ori*inally/ &ut that in a +arti)ular em+loyment
they had &een im+ro'ed, only to dou&le, or that a day=s la&our
)ould +rodu)e only t(i)e the quantity of (or0 (hi)h it had done
&efore- In e1)han*in* the +rodu)e of a day=s la&our in the
*reater +art of em+loyments for that of a day=s la&our in this
+arti)ular one, ten times the ori*inal quantity of (or0 in them
(ould +ur)hase only t(i)e the ori*inal quantity in it- Any
+arti)ular quantity in it, therefore, a +ound (ei*ht, for
e1am+le, (ould a++ear to &e fi'e times dearer than &efore- In
reality, ho(e'er, it (ould &e t(i)e as )hea+- Thou*h it required
fi'e times the quantity of other *oods to +ur)hase it, it (ould
require only half the quantity of la&our either to +ur)hase or to
+rodu)e it- The a)quisition, therefore, (ould &e t(i)e as easy as
&efore-
.ut this ori*inal state of thin*s, in (hi)h the la&ourer
en2oyed the (hole +rodu)e of his o(n la&our, )ould not last
&eyond the first introdu)tion of the a++ro+riation of land and
the a))umulation of sto)0- It (as at an end, therefore, lon*
&efore the most )onsidera&le im+ro'ements (ere made in the
+rodu)ti'e +o(ers of la&our, and it (ould &e to no +ur+ose to
tra)e further (hat mi*ht ha'e &een its effe)ts u+on the
re)om+ense or (a*es of la&our-
As soon as land &e)omes +ri'ate +ro+erty, the landlord
demands a share of almost all the +rodu)e (hi)h the la&ourer )an
either raise, or )olle)t from it- #is rent ma0es the first
dedu)tion from the +rodu)e of the la&our (hi)h is em+loyed u+on
land-
It seldom ha++ens that the +erson (ho tills the *round has
(here(ithal to maintain himself till he rea+s the har'est- #is
maintenan)e is *enerally ad'an)ed to him from the sto)0 of a
master, the farmer (ho em+loys him, and (ho (ould ha'e no
interest to em+loy him, unless he (as to share in the +rodu)e of
his la&our, or unless his sto)0 (as to &e re+la)ed to him (ith a
+rofit- This +rofit, ma0es a se)ond dedu)tion from the +rodu)e of
the la&our (hi)h is em+loyed u+on land-
The +rodu)e of almost all other la&our is lia&le to the li0e
dedu)tion of +rofit- In all arts and manufa)tures the *reater
+art of the (or0men stand in need of a master to ad'an)e them the
materials of their (or0, and their (a*es and maintenan)e till it
&e )om+leted- #e shares in the +rodu)e of their la&our, or in the
'alue (hi)h it adds to the materials u+on (hi)h it is &esto(ed/
and in this share )onsists his +rofit-
It sometimes ha++ens, indeed, that a sin*le inde+endent
(or0man has sto)0 suffi)ient &oth to +ur)hase the materials of
his (or0, and to maintain himself till it &e )om+leted- #e is
&oth master and (or0man, and en2oys the (hole +rodu)e of his o(n
la&our, or the (hole 'alue (hi)h it adds to the materials u+on
(hi)h it is &esto(ed- It in)ludes (hat are usually t(o distin)t
re'enues, &elon*in* to t(o distin)t +ersons, the +rofits of
sto)0, and the (a*es of la&our-
Su)h )ases, ho(e'er, are not 'ery frequent, and in e'ery
+art of $uro+e, t(enty (or0men ser'e under a master for one that
is inde+endent/ and the (a*es of la&our are e'ery(here understood
to &e, (hat they usually are, (hen the la&ourer is one +erson,
and the o(ner of the sto)0 (hi)h em+loys him another-
What are the )ommon (a*es of la&our, de+ends e'ery(here u+on
the )ontra)t usually made &et(een those t(o +arties, (hose
interests are &y no means the same- The (or0men desire to *et as
mu)h, the masters to *i'e as little as +ossi&le- The former are
dis+osed to )om&ine in order to raise, the latter in order to
lo(er the (a*es of la&our-
It is not, ho(e'er, diffi)ult to foresee (hi)h of the t(o
+arties must, u+on all ordinary o))asions, ha'e the ad'anta*e in
the dis+ute, and for)e the other into a )om+lian)e (ith their
terms- The masters, &ein* fe(er in num&er, )an )om&ine mu)h more
easily/ and the la(, &esides, authori;es, or at least does not
+rohi&it their )om&inations, (hile it +rohi&its those of the
(or0men- We ha'e no a)ts of +arliament a*ainst )om&inin* to lo(er
the +ri)e of (or0/ &ut many a*ainst )om&inin* to raise it- In all
su)h dis+utes the masters )an hold out mu)h lon*er- A landlord, a
farmer, a master manufa)turer, a mer)hant, thou*h they did not
em+loy a sin*le (or0man, )ould *enerally li'e a year or t(o u+on
the sto)0s (hi)h they ha'e already a)quired- 4any (or0men )ould
not su&sist a (ee0, fe( )ould su&sist a month, and s)ar)e any a
year (ithout em+loyment- In the lon* run the (or0man may &e as
ne)essary to his master as his master is to him/ &ut the
ne)essity is not so immediate-
We rarely hear, it has &een said, of the )om&inations of
masters, thou*h frequently of those of (or0men- .ut (hoe'er
ima*ines, u+on this a))ount, that masters rarely )om&ine, is as
i*norant of the (orld as of the su&2e)t- 4asters are al(ays and
e'ery(here in a sort of ta)it, &ut )onstant and uniform
)om&ination, not to raise the (a*es of la&our a&o'e their a)tual
rate- To 'iolate this )om&ination is e'ery(here a most un+o+ular
a)tion, and a sort of re+roa)h to a master amon* his nei*h&ours
and equals- We seldom, indeed, hear of this )om&ination, &e)ause
it is the usual, and one may say, the natural state of thin*s,
(hi)h no&ody e'er hears of- 4asters, too, sometimes enter into
+arti)ular )om&inations to sin0 the (a*es of la&our e'en &elo(
this rate- These are al(ays )ondu)ted (ith the utmost silen)e and
se)re)y, till the moment of e1e)ution, and (hen the (or0men
yield, as they sometimes do, (ithout resistan)e, thou*h se'erely
felt &y them, they are ne'er heard of &y other +eo+le- Su)h
)om&inations, ho(e'er, are frequently resisted &y a )ontrary
defensi'e )om&ination of the (or0men/ (ho sometimes too, (ithout
any +ro'o)ation of this 0ind, )om&ine of their o(n a))ord to
raise the +ri)e of their la&our- Their usual +reten)es are,
sometimes the hi*h +ri)e of +ro'isions/ sometimes the *reat
+rofit (hi)h their masters ma0e &y their (or0- .ut (hether their
)om&inations &e offensi'e or defensi'e, they are al(ays
a&undantly heard of- In order to &rin* the +oint to a s+eedy
de)ision, they ha'e al(ays re)ourse to the loudest )lamour, and
sometimes to the most sho)0in* 'iolen)e and outra*e- They are
des+erate, and a)t (ith the folly and e1tra'a*an)e of des+erate
men, (ho must either star'e, or fri*hten their masters into an
immediate )om+lian)e (ith their demands- The masters u+on these
o))asions are 2ust as )lamorous u+on the other side, and ne'er
)ease to )all aloud for the assistan)e of the )i'il ma*istrate,
and the ri*orous e1e)ution of those la(s (hi)h ha'e &een ena)ted
(ith so mu)h se'erity a*ainst the )om&inations of ser'ants,
la&ourers, and 2ourneymen- The (or0men, a))ordin*ly, 'ery seldom
deri'e any ad'anta*e from the 'iolen)e of those tumultuous
)om&inations, (hi)h, +artly from the inter+osition of the )i'il
ma*istrate, +artly from the ne)essity su+erior steadiness of the
masters, +artly from the ne)essity (hi)h the *reater +art of the
(or0men are under of su&mittin* for the sa0e of +resent
su&sisten)e, *enerally end in nothin*, &ut the +unishment or ruin
of the rin*leaders-
.ut thou*h in dis+utes (ith their (or0men, masters must
*enerally ha'e the ad'anta*e, there is, ho(e'er, a )ertain rate
&elo( (hi)h it seems im+ossi&le to redu)e, for any )onsidera&le
time, the ordinary (a*es e'en of the lo(est s+e)ies of la&our-
A man must al(ays li'e &y his (or0, and his (a*es must at
least &e suffi)ient to maintain him- They must e'en u+on most
o))asions &e some(hat more/ other(ise it (ould &e im+ossi&le for
him to &rin* u+ a family, and the ra)e of su)h (or0men )ould not
last &eyond the first *eneration- 4r- Cantillon seems, u+on this
a))ount, to su++ose that the lo(est s+e)ies of )ommon la&ourers
must e'ery(here earn at least dou&le their o(n maintenan)e, in
order that one (ith another they may &e ena&led to &rin* u+ t(o
)hildren/ the la&our of the (ife, on a))ount of her ne)essary
attendan)e on the )hildren, &ein* su++osed no more than
suffi)ient to +ro'ide for herself- .ut one half the )hildren
&orn, it is )om+uted, die &efore the a*e of manhood- The +oorest
la&ourers, therefore, a))ordin* to this a))ount, must, one (ith
another, attem+t to rear at least four )hildren, in order that
t(o may ha'e an equal )han)e of li'in* to that a*e- .ut the
ne)essary maintenan)e of four )hildren, it is su++osed, may &e
nearly equal to that of one man- The la&our of an a&le8&odied
sla'e, the same author adds, is )om+uted to &e (orth dou&le his
maintenan)e/ and that of the meanest la&ourer, he thin0s, )annot
&e (orth less than that of an a&le&odied sla'e- Thus far at least
seems )ertain, that, in order to &rin* u+ a family, the la&our of
the hus&and and (ife to*ether must, e'en in the lo(est s+e)ies of
)ommon la&our, &e a&le to earn somethin* more than (hat is
+re)isely ne)essary for their o(n maintenan)e/ &ut in (hat
+ro+ortion, (hether in that a&o'e mentioned, or in any other, I
shall not ta0e u+on me to determine-
There are )ertain )ir)umstan)es, ho(e'er, (hi)h sometimes
*i'e the la&ourers an ad'anta*e, and ena&le them to raise their
(a*es )onsidera&ly a&o'e this rate/ e'idently the lo(est (hi)h is
)onsistent (ith )ommon humanity-
When in any )ountry the demand for those (ho li'e &y (a*es,
la&ourers, 2ourneymen, ser'ants of e'ery 0ind, is )ontinually
in)reasin*/ (hen e'ery year furnishes em+loyment for a *reater
num&er than had &een em+loyed the year &efore, the (or0men ha'e
no o))asion to )om&ine in order to raise their (a*es- The
s)ar)ity of hands o))asions a )om+etition amon* masters, (ho &id
a*ainst one another, in order to *et (or0men, and thus
'oluntarily &rea0 throu*h the natural )om&ination of masters not
to raise (a*es-
The demand for those (ho li'e &y (a*es, it is e'ident,
)annot in)rease &ut in +ro+ortion to the in)rease of the funds
(hi)h are destined for the +ayment of (a*es- These funds are of
t(o 0inds/ first, re'enue (hi)h is o'er and a&o'e (hat is
ne)essary for the maintenan)e/ and, se)ondly, the sto)0 (hi)h is
o'er and a&o'e (hat is ne)essary for the em+loyment of their
masters-
When the landlord, annuitant, or monied man, has a *reater
re'enue than (hat he 2ud*es suffi)ient to maintain his o(n
family, he em+loys either the (hole or a +art of the sur+lus in
maintainin* one or more menial ser'ants- In)rease this sur+lus,
and he (ill naturally in)rease the num&er of those ser'ants-
When an inde+endent (or0man, su)h as a (ea'er or shoema0er,
has *ot more sto)0 than (hat is suffi)ient to +ur)hase the
materials of his o(n (or0, and to maintain himself till he )an
dis+ose of it, he naturally em+loys one or more 2ourneymen (ith
the sur+lus, in order to ma0e a +rofit &y their (or0- In)rease
this sur+lus, and he (ill naturally in)rease the num&er of his
2ourneymen-
The demand for those (ho li'e &y (a*es, therefore,
ne)essarily in)reases (ith the in)rease of the re'enue and sto)0
of e'ery )ountry, and )annot +ossi&ly in)rease (ithout it- The
in)rease of re'enue and sto)0 is the in)rease of national (ealth-
The demand for those (ho li'e &y (a*es, therefore, naturally
in)reases (ith the in)rease of national (ealth, and )annot
+ossi&ly in)rease (ithout it-
It is not the a)tual *reatness of national (ealth, &ut its
)ontinual in)rease, (hi)h o))asions a rise in the (a*es of
la&our- It is not, a))ordin*ly, in the ri)hest )ountries, &ut in
the most thri'in*, or in those (hi)h are *ro(in* ri)h the
fastest, that the (a*es of la&our are hi*hest- $n*land is
)ertainly, in the +resent times, a mu)h ri)her )ountry than any
+art of North Ameri)a- The (a*es of la&our, ho(e'er, are mu)h
hi*her in North Ameri)a than in any +art of $n*land- In the
+ro'in)e of Ne( 7or0, )ommon la&ourers earn three shillin*s and
si1+en)e )urren)y, equal to t(o shillin*s sterlin*, a day/ shi+
)ar+enters, ten shillin*s and si1+en)e )urren)y, (ith a +int of
rum (orth si1+en)e sterlin*, equal in all to si1 shillin*s and
si1+en)e sterlin*/ house )ar+enters and &ri)0layers, ei*ht
shillin*s )urren)y, equal to four shillin*s and si1+en)e
sterlin*/ 2ourneymen tailors, fi'e shillin*s )urren)y, equal to
a&out t(o shillin*s and ten+en)e sterlin*- These +ri)es are all
a&o'e the !ondon +ri)e/ and (a*es are said to &e as hi*h in the
other )olonies as in Ne( 7or0- The +ri)e of +ro'isions is
e'ery(here in North Ameri)a mu)h lo(er than in $n*land- A dearth
has ne'er &een 0no(n there- In the (orst seasons they ha'e al(ays
had a suffi)ien)y for themsel'es, thou*h less for e1+ortation- If
the money +ri)e of la&our, therefore, &e hi*her than it is
any(here in the mother )ountry, its real +ri)e, the real )ommand
of the ne)essaries and )on'enien)ies of life (hi)h it )on'eys to
the la&ourer must &e hi*her in a still *reater +ro+ortion-
.ut thou*h North Ameri)a is not yet so ri)h as $n*land, it
is mu)h more thri'in*, and ad'an)in* (ith mu)h *reater ra+idity
to the further a)quisition of ri)hes- The most de)isi'e mar0 of
the +ros+erity of any )ountry is the in)rease of the num&er of
its inha&itants- In 6reat .ritain, and most other $uro+ean
)ountries, they are not su++osed to dou&le in less than fi'e
hundred years- In the .ritish )olonies in North Ameri)a, it has
&een found that they dou&le in t(enty or fi'e8and8t(enty years-
Nor in the +resent times is this in)rease +rin)i+ally o(in* to
the )ontinual im+ortation of ne( inha&itants, &ut to the *reat
multi+li)ation of the s+e)ies- Those (ho li'e to old a*e, it is
said, frequently see there from fifty to a hundred, and sometimes
many more, des)endants from their o(n &ody- !a&our is there so
(ell re(arded that a numerous family of )hildren, instead of
&ein* a &urthen, is a sour)e of o+ulen)e and +ros+erity to the
+arents- The la&our of ea)h )hild, &efore it )an lea'e their
house, is )om+uted to &e (orth a hundred +ounds )lear *ain to
them- A youn* (ido( (ith four or fi'e youn* )hildren, (ho, amon*
the middlin* or inferior ran0s of +eo+le in $uro+e, (ould ha'e so
little )han)e for a se)ond hus&and, is there frequently )ourted
as a sort of fortune- The 'alue of )hildren is the *reatest of
all en)oura*ements to marria*e- We )annot, therefore, (onder that
the +eo+le in North Ameri)a should *enerally marry 'ery youn*-
Not(ithstandin* the *reat in)rease o))asioned &y su)h early
marria*es, there is a )ontinual )om+laint of the s)ar)ity of
hands in North Ameri)a- The demand for la&ourers, the funds
destined for maintainin* them, in)rease, it seems, still faster
than they )an find la&ourers to em+loy-
Thou*h the (ealth of a )ountry should &e 'ery *reat, yet if
it has &een lon* stationary, (e must not e1+e)t to find the (a*es
of la&our 'ery hi*h in it- The funds destined for the +ayment of
(a*es, the re'enue and sto)0 of its inha&itants, may &e of the
*reatest e1tent/ &ut if they ha'e )ontinued for se'eral )enturies
of the same, or 'ery nearly of the same e1tent, the num&er of
la&ourers em+loyed e'ery year )ould easily su++ly, and e'en more
than su++ly, the num&er (anted the follo(in* year- There )ould
seldom &e any s)ar)ity of hands, nor )ould the masters &e o&li*ed
to &id a*ainst one another in order to *et them- The hands, on
the )ontrary, (ould, in this )ase, naturally multi+ly &eyond
their em+loyment- There (ould &e a )onstant s)ar)ity of
em+loyment, and the la&ourers (ould &e o&li*ed to &id a*ainst one
another in order to *et it- If in su)h a )ountry the (a*es of
la&our had e'er &een more than suffi)ient to maintain the
la&ourer, and to ena&le him to &rin* u+ a family, the )om+etition
of the la&ourers and the interest of the masters (ould soon
redu)e them to this lo(est rate (hi)h is )onsistent (ith )ommon
humanity- China has &een lon* one of the ri)hest, that is, one of
the most fertile, &est )ulti'ated, most industrious, and most
+o+ulous )ountries in (orld- It seems, ho(e'er, to ha'e &een lon*
stationary- 4ar)o olo, (ho 'isited it more than fi'e hundred
years a*o, des)ri&es its )ulti'ation, industry, and +o+ulousness,
almost in the same terms in (hi)h they are des)ri&ed &y
tra'ellers in the +resent times- It had +erha+s, e'en lon* &efore
his time, a)quired that full )om+lement of ri)hes (hi)h the
nature of its la(s and institutions +ermits it to a)quire- The
a))ounts of all tra'ellers, in)onsistent in many other res+e)ts,
a*ree in the lo( (a*es of la&our, and in the diffi)ulty (hi)h a
la&ourer finds in &rin*in* u+ a family in China- If &y di**in*
the *round a (hole day he )an *et (hat (ill +ur)hase a small
quantity of ri)e in the e'enin*, he is )ontented- The )ondition
of artifi)ers is, if +ossi&le, still (orse- Instead of (aitin*
indolently in their (or0houses, for the )alls of their )ustomers,
as in $uro+e, they are )ontinually runnin* a&out the streets (ith
the tools of their res+e)ti'e trades, offerin* their ser'i)e, and
as it (ere &e**in* em+loyment- The +o'erty of the lo(er ran0s of
+eo+le in China far sur+asses that of the most &e**arly nations
in $uro+e- In the nei*h&ourhood of Canton many hundred, it is
)ommonly said, many thousand families ha'e no ha&itation on the
land, &ut li'e )onstantly in little fishin* &oats u+on the ri'ers
and )anals- The su&sisten)e (hi)h they find there is so s)anty
that they are ea*er to fish u+ the nastiest *ar&a*e thro(n
o'er&oard from any $uro+ean shi+- Any )arrion, the )ar)ase of a
dead do* or )at, for e1am+le, thou*h half +utrid and stin0in*, is
as (el)ome to them as the most (holesome food to the +eo+le of
other )ountries- 4arria*e is en)oura*ed in China, not &y the
+rofita&leness of )hildren, &ut &y the li&erty of destroyin*
them- In all *reat to(ns se'eral are e'ery ni*ht e1+osed in the
street, or dro(ned li0e +u++ies in the (ater- The +erforman)e of
this horrid offi)e is e'en said to &e the a'o(ed &usiness &y
(hi)h some +eo+le earn their su&sisten)e-
China, ho(e'er, thou*h it may +erha+s stand still, does not
seem to *o &a)0(ards- Its to(ns are no(here deserted &y their
inha&itants- The lands (hi)h had on)e &een )ulti'ated are no(here
ne*le)ted- The same or 'ery nearly the same annual la&our must
therefore )ontinue to &e +erformed, and the funds destined for
maintainin* it must not, )onsequently, &e sensi&ly diminished-
The lo(est )lass of la&ourers, therefore, not(ithstandin* their
s)anty su&sisten)e, must some (ay or another ma0e shift to
)ontinue their ra)e so far as to 0ee+ u+ their usual num&ers-
.ut it (ould &e other(ise in a )ountry (here the funds
destined for the maintenan)e of la&our (ere sensi&ly de)ayin*-
$'ery year the demand for ser'ants and la&ourers (ould, in all
the different )lasses of em+loyments, &e less than it had &een
the year &efore- 4any (ho had &een &red in the su+erior )lasses,
not &ein* a&le to find em+loyment in their o(n &usiness, (ould &e
*lad to see0 it in the lo(est- The lo(est )lass &ein* not only
o'ersto)0ed (ith its o(n (or0men, &ut (ith the o'erflo(in*s of
all the other )lasses, the )om+etition for em+loyment (ould &e so
*reat in it, as to redu)e the (a*es of la&our to the most
misera&le and s)anty su&sisten)e of the la&ourer- 4any (ould not
&e a&le to find em+loyment e'en u+on these hard terms, &ut (ould
either star'e, or &e dri'en to see0 a su&sisten)e either &y
&e**in*, or &y the +er+etration +erha+s of the *reatest
enormities- Want, famine, and mortality (ould immediately +re'ail
in that )lass, and from then)e e1tend themsel'es to all the
su+erior )lasses, till the num&er of inha&itants in the )ountry
(as redu)ed to (hat )ould easily &e maintained &y the re'enue and
sto)0 (hi)h remained in it, and (hi)h had es)a+ed either the
tyranny or )alamity (hi)h had destroyed the rest- This +erha+s is
nearly the +resent state of .en*al, and of some other of the
$n*lish settlements in the $ast Indies- In a fertile )ountry
(hi)h had &efore &een mu)h de+o+ulated, (here su&sisten)e,
)onsequently, should not &e 'ery diffi)ult, and (here,
not(ithstandin*, three or four hundred thousand +eo+le die of
hun*er in one year, (e may &e assured that the funds destined for
the maintenan)e of the la&ourin* +oor are fast de)ayin*- The
differen)e &et(een the *enius of the .ritish )onstitution (hi)h
+rote)ts and *o'erns North Ameri)a, and that of the mer)antile
)om+any (hi)h o++resses and domineers in the $ast Indies, )annot
+erha+s &e &etter illustrated than &y the different state of
those )ountries-
The li&eral re(ard of la&our, therefore, as it is the
ne)essary effe)t, so it is the natural sym+tom of in)reasin*
national (ealth- The s)anty maintenan)e of the la&ourin* +oor, on
the other hand, is the natural sym+tom that thin*s are at a
stand, and their star'in* )ondition that they are *oin* fast
&a)0(ards-
In 6reat .ritain the (a*es of la&our seem, in the +resent
times, to &e e'idently more than (hat is +re)isely ne)essary to
ena&le the la&ourer to &rin* u+ a family- In order to satisfy
oursel'es u+on this +oint it (ill not &e ne)essary to enter into
any tedious or dou&tful )al)ulation of (hat may &e the lo(est sum
u+on (hi)h it is +ossi&le to do this- There are many +lain
sym+toms that the (a*es of la&our are no(here in this )ountry
re*ulated &y this lo(est rate (hi)h is )onsistent (ith )ommon
humanity-
"irst, in almost e'ery +art of 6reat .ritain there is a
distin)tion, e'en in the lo(est s+e)ies of la&our, &et(een summer
and (inter (a*es- Summer (a*es are al(ays hi*hest- .ut on a))ount
of the e1traordinary e1+ense of fuel, the maintenan)e of a family
is most e1+ensi'e in (inter- Wa*es, therefore, &ein* hi*hest (hen
this e1+ense is lo(est, it seems e'ident that they are not
re*ulated &y (hat is ne)essary for this e1+ense/ &ut &y the
quantity and su++osed 'alue of the (or0- A la&ourer, it may &e
said indeed, ou*ht to sa'e +art of his summer (a*es in order to
defray his (inter e1+ense/ and that throu*h the (hole year they
do not e1)eed (hat is ne)essary to maintain his family throu*h
the (hole year- A sla'e, ho(e'er, or one a&solutely de+endent on
us for immediate su&sisten)e, (ould not &e treated in this
manner- #is daily su&sisten)e (ould &e +ro+ortioned to his daily
ne)essities-
Se)ondly, the (a*es of la&our do not in 6reat .ritain
flu)tuate (ith the +ri)e of +ro'isions- These 'ary e'ery(here
from year to year, frequently from month to month- .ut in many
+la)es the money +ri)e of la&our remains uniformly the same
sometimes for half a )entury to*ether- If in these +la)es,
therefore, the la&ourin* +oor )an maintain their families in dear
years, they must &e at their ease in times of moderate +lenty,
and in affluen)e in those of e1traordinary )hea+ness- The hi*h
+ri)e of +ro'isions durin* these ten years +ast has not in many
+arts of the 0in*dom &een a))om+anied (ith any sensi&le rise in
the money +ri)e of la&our- It has, indeed, in some, o(in*
+ro&a&ly more to the in)rease of the demand for la&our than to
that of the +ri)e of +ro'isions-
Thirdly, as the +ri)e of +ro'isions 'aries more from year to
year than the (a*es of la&our, so, on the other hand, the (a*es
of la&our 'ary more from +la)e to +la)e than the +ri)e of
+ro'isions- The +ri)es of &read and &ut)her=s meat are *enerally
the same or 'ery nearly the same throu*h the *reater +art of the
United %in*dom- These and most other thin*s (hi)h are sold &y
retail, the (ay in (hi)h the la&ourin* +oor &uy all thin*s, are
*enerally fully as )hea+ or )hea+er in *reat to(ns than in the
remoter +arts of the )ountry, for reasons (hi)h I shall ha'e
o))asion to e1+lain hereafter- .ut the (a*es of la&our in a *reat
to(n and its nei*h&ourhood are frequently a fourth or a fifth
+art, t(enty or fi'e8and8t(enty +er )ent hi*her than at a fe(
miles distan)e- $i*hteen+en)e a day may &e re)0oned the )ommon
+ri)e of la&our in !ondon and its nei*h&ourhood- At a fe( miles
distan)e it falls to fourteen and fifteen+en)e- Ten+en)e may &e
re)0oned its +ri)e in $din&ur*h and its nei*h&ourhood- At a fe(
miles distan)e it falls to ei*ht+en)e, the usual +ri)e of )ommon
la&our throu*h the *reater +art of the lo( )ountry of S)otland,
(here it 'aries a *ood deal less than in $n*land- Su)h a
differen)e of +ri)es, (hi)h it seems is not al(ays suffi)ient to
trans+ort a man from one +arish to another, (ould ne)essarily
o))asion so *reat a trans+ortation of the most &ul0y )ommodities,
not only from one +arish to another, &ut from one end of the
0in*dom, almost from one end of the (orld to the other, as (ould
soon redu)e them more nearly to a le'el- After all that has &een
said of the le'ity and in)onstan)y of human nature, it a++ears
e'idently from e1+erien)e that a man is of all sorts of lu**a*e
the most diffi)ult to &e trans+orted- If the la&ourin* +oor,
therefore, )an maintain their families in those +arts of the
0in*dom (here the +ri)e of la&our is lo(est, they must &e in
affluen)e (here it is hi*hest-
"ourthly, the 'ariations in the +ri)e of la&our not only do
not )orres+ond either in +la)e or time (ith those in the +ri)e of
+ro'isions, &ut they are frequently quite o++osite-
6rain, the food of the )ommon +eo+le, is dearer in S)otland
than in $n*land, (hen)e S)otland re)ei'es almost e'ery year 'ery
lar*e su++lies- .ut $n*lish )orn must &e sold dearer in S)otland,
the )ountry to (hi)h it is &rou*ht, than in $n*land, the )ountry
from (hi)h it )omes/ and in +ro+ortion to its quality it )annot
&e sold dearer in S)otland than the S)ot)h )orn that )omes to the
same mar0et in )om+etition (ith it- The quality of *rain de+ends
)hiefly u+on the quantity of flour or meal (hi)h it yields at the
mill, and in this res+e)t $n*lish *rain is so mu)h su+erior to
the S)ot)h that, thou*h often dearer in a++earan)e, or in
+ro+ortion to the measure of its &ul0, it is *enerally )hea+er in
reality, or in +ro+ortion to its quality, or e'en to the measure
of its (ei*ht- The +ri)e of la&our, on the )ontrary, is dearer in
$n*land than in S)otland- If the la&ourin* +oor, therefore, )an
maintain their families in the one +art of the United %in*dom,
they must &e in affluen)e in the other- Oatmeal indeed su++lies
the )ommon +eo+le in S)otland (ith the *reatest and the &est +art
of their food, (hi)h is in *eneral mu)h inferior to that of their
nei*h&ours of the same ran0 in $n*land- This differen)e, ho(e'er,
in the mode of their su&sisten)e is not the )ause, &ut the effe)t
of the differen)e in their (a*es/ thou*h, &y a stran*e
misa++rehension, I ha'e frequently heard it re+resented as the
)ause- It is not &e)ause one man 0ee+s a )oa)h (hile his
nei*h&our (al0s afoot that the one is ri)h and the other +oor/
&ut &e)ause the one is ri)h he 0ee+s a )oa)h, and &e)ause the
other is +oor he (al0s afoot-
Durin* the )ourse of the last )entury, ta0in* one year (ith
another, *rain (as dearer in &oth +arts of the United %in*dom
than durin* that of the +resent- This is a matter of fa)t (hi)h
)annot no( admit of any reasona&le dou&t/ and the +roof of it is,
if +ossi&le, still more de)isi'e (ith re*ard to S)otland than
(ith re*ard to $n*land- It is in S)otland su++orted &y the
e'iden)e of the +u&li) fiars, annual 'aluations made u+on oath,
a))ordin* to the a)tual state of the mar0ets, of all the
different sorts of *rain in e'ery different )ounty of S)otland-
If su)h dire)t +roof )ould require any )ollateral e'iden)e to
)onfirm it, I (ould o&ser'e that this has li0e(ise &een the )ase
in "ran)e, and +ro&a&ly in most other +arts of $uro+e- With
re*ard to "ran)e there is the )learest +roof- .ut thou*h it is
)ertain that in &oth +arts of the United %in*dom *rain (as
some(hat dearer in the last )entury than in the +resent, it is
equally )ertain that la&our (as mu)h )hea+er- If the la&ourin*
+oor, therefore, )ould &rin* u+ their families then, they must &e
mu)h more at their ease no(- In the last )entury, the most usual
day8(a*es of )ommon la&our throu*h the *reater +art of S)otland
(ere si1+en)e in summer and fi'e+en)e in (inter- Three shillin*s
a (ee0, the same +ri)e 'ery nearly, still )ontinues to &e +aid in
some +arts of the #i*hlands and Western Islands- Throu*h the
*reater +art of the lo( )ountry the most usual (a*es of )ommon
la&our are no( ei*ht+en)e a day/ ten+en)e, sometimes a shillin*
a&out $din&ur*h, in the )ounties (hi)h &order u+on $n*land,
+ro&a&ly on a))ount of that nei*h&ourhood, and in a fe( other
+la)es (here there has lately &een a )onsidera&le rise in the
demand for la&our, a&out 6las*o(, Carron, Ayrshire, et)- In
$n*land the im+ro'ements of a*ri)ulture, manufa)tures, and
)ommer)e &e*an mu)h earlier than in S)otland- The demand for
la&our, and )onsequently its +ri)e, must ne)essarily ha'e
in)reased (ith those im+ro'ements- In the last )entury,
a))ordin*ly, as (ell as in the +resent, the (a*es of la&our (ere
hi*her in $n*land than in S)otland- They ha'e risen, too,
)onsidera&ly sin)e that time, thou*h, on a))ount of the *reater
'ariety of (a*es +aid there in different +la)es, it is more
diffi)ult to as)ertain ho( mu)h- In 161G, the +ay of a foot
soldier (as the same as in the +resent times, ei*ht+en)e a day-
When it (as first esta&lished it (ould naturally &e re*ulated &y
the usual (a*es of )ommon la&ourers, the ran0 of +eo+le from
(hi)h foot soldiers are )ommonly dra(n- !ord Chief Austi)e #ales,
(ho (rote in the time of Charles II, )om+utes the ne)essary
e1+ense of a la&ourer=s family, )onsistin* of si1 +ersons, the
father and mother, t(o )hildren a&le to do somethin*, and t(o not
a&le, at ten shillin*s a (ee0, or t(enty8si1 +ounds a year- If
they )annot earn this &y their la&our, they must ma0e it u+, he
su++oses, either &y &e**in* or stealin*- #e a++ears to ha'e
inquired 'ery )arefully into this su&2e)t- In 16??, 4r- 6re*ory
%in*, (hose s0ill in +oliti)al arithmeti) is so mu)h e1tolled &y
Do)tor Da'enant, )om+uted the ordinary in)ome of la&ourers and
out8ser'ants to &e fifteen +ounds a year to a family, (hi)h he
su++osed to )onsist, one (ith another, of three and a half
+ersons- #is )al)ulation, therefore, thou*h different in
a++earan)e, )orres+onds 'ery nearly at &ottom (ith that of Aud*e
#ales- .oth su++ose the (ee0ly e1+ense of su)h families to &e
a&out t(enty +en)e a head- .oth the +e)uniary in)ome and e1+ense
of su)h families ha'e in)reased )onsidera&ly sin)e that time
throu*h the *reater +art of the 0in*dom/ in some +la)es more, and
in some less/ thou*h +erha+s s)ar)e any(here so mu)h as some
e1a**erated a))ounts of the +resent (a*es of la&our ha'e lately
re+resented them to the +u&li)- The +ri)e of la&our, it must &e
o&ser'ed, )annot &e as)ertained 'ery a))urately any(here,
different +ri)es &ein* often +aid at the same +la)e and for the
same sort of la&our, not only a))ordin* to the different
a&ilities of the (or0men, &ut a))ordin* to the easiness or
hardness of the masters- Where (a*es are not re*ulated &y la(,
all that (e )an +retend to determine is (hat are the most usual/
and e1+erien)e seems to sho( that la( )an ne'er re*ulate them
+ro+erly, thou*h it has often +retended to do so-
The real re)om+ense of la&our, the real quantity of the
ne)essaries and )on'enien)es of life (hi)h it )an +ro)ure to the
la&ourer, has, durin* the )ourse of the +resent )entury,
in)reased +erha+s in a still *reater +ro+ortion than its money
+ri)e- Not only *rain has &e)ome some(hat )hea+er, &ut many other
thin*s from (hi)h the industrious +oor deri'e an a*reea&le and
(holesome 'ariety of food ha'e &e)ome a *reat deal )hea+er-
otatoes, for e1am+le, do not at +resent, throu*h the *reater
+art of the 0in*dom, )ost half the +ri)e (hi)h they used to do
thirty or forty years a*o- The same thin* may &e said of turni+s,
)arrots, )a&&a*es/ thin*s (hi)h (ere formerly ne'er raised &ut &y
the s+ade, &ut (hi)h are no( )ommonly raised &y the +lou*h- All
sort of *arden stuff, too, has &e)ome )hea+er- The *reater +art
of the a++les and e'en of the onions )onsumed in 6reat .ritain
(ere in the last )entury im+orted from "landers- The *reat
im+ro'ements in the )oarser manufa)tures of &oth linen and
(oollen )loth furnish the la&ourers (ith )hea+er and &etter
)lothin*/ and those in the manufa)tures of the )oarser metals,
(ith )hea+er and &etter instruments of trade, as (ell as (ith
many a*reea&le and )on'enient +ie)es of household furniture-
Soa+, salt, )andles, leather, and fermented liquors ha'e, indeed,
&e)ome a *ood deal dearer/ )hiefly from the ta1es (hi)h ha'e &een
laid u+on them- The quantity of these, ho(e'er, (hi)h the
la&ourin* +oor are under any ne)essity of )onsumin*, is so 'ery
small, that the in)rease in their +ri)e does not )om+ensate the
diminution in that of so many other thin*s- The )ommon )om+laint
that lu1ury e1tends itself e'en to the lo(est ran0s of the
+eo+le, and that the la&ourin* +oor (ill not no( &e )ontented
(ith the same food, )lothin*, and lod*in* (hi)h satisfied them in
former times, may )on'in)e us that it is not the money +ri)e of
la&our only, &ut its real re)om+ense, (hi)h has au*mented-
Is this im+ro'ement in the )ir)umstan)es of the lo(er ran0s
of the +eo+le to &e re*arded as an ad'anta*e or as an
in)on'enien)y to the so)iety> The ans(er seems at first si*ht
a&undantly +lain- Ser'ants, la&ourers, and (or0men of different
0inds, ma0e u+ the far *reater +art of e'ery *reat +oliti)al
so)iety- .ut (hat im+ro'es the )ir)umstan)es of the *reater +art
)an ne'er &e re*arded as an in)on'enien)y to the (hole- No
so)iety )an surely &e flourishin* and ha++y, of (hi)h the far
*reater +art of the mem&ers are +oor and misera&le- It is &ut
equity, &esides, that they (ho feed, )lothe, and lod*e the (hole
&ody of the +eo+le, should ha'e su)h a share of the +rodu)e of
their o(n la&our as to &e themsel'es tolera&ly (ell fed, )lothed,
and lod*ed-
o'erty, thou*h it no dou&t dis)oura*es, does not al(ays
+re'ent marria*e- It seems e'en to &e fa'oura&le to *eneration- A
half8star'ed #i*hland (oman frequently &ears more than t(enty
)hildren, (hile a +am+ered fine lady is often in)a+a&le of
&earin* any, and is *enerally e1hausted &y t(o or three-
.arrenness, so frequent amon* (omen of fashion, is 'ery rare
amon* those of inferior station- !u1ury in the fair se1, (hile it
inflames +erha+s the +assion for en2oyment, seems al(ays to
(ea0en, and frequently to destroy alto*ether, the +o(ers of
*eneration-
.ut +o'erty, thou*h it does not +re'ent the *eneration, is
e1tremely unfa'oura&le to the rearin* of )hildren- The tender
+lant is +rodu)ed, &ut in so )old a soil and so se'ere a )limate,
soon (ithers and dies- It is not un)ommon, I ha'e &een frequently
told, in the #i*hlands of S)otland for a mother (ho has &orne
t(enty )hildren not to ha'e t(o ali'e- Se'eral offi)ers of *reat
e1+erien)e ha'e assured me, that so far from re)ruitin* their
re*iment, they ha'e ne'er &een a&le to su++ly it (ith drums and
fifes from all the soldiers= )hildren that (ere &orn in it- A
*reater num&er of fine )hildren, ho(e'er, is seldom seen any(here
than a&out a &arra)0 of soldiers- 5ery fe( of them, it seems,
arri'e at the a*e of thirteen or fourteen- In some +la)es one
half the )hildren &orn die &efore they are four years of a*e/ in
many +la)es &efore they are se'en/ and in almost all +la)es
&efore they are nine or ten- This *reat mortality, ho(e'er, (ill
e'ery(here &e found )hiefly amon* the )hildren of the )ommon
+eo+le, (ho )annot afford to tend them (ith the same )are as
those of &etter station- Thou*h their marria*es are *enerally
more fruitful than those of +eo+le of fashion, a smaller
+ro+ortion of their )hildren arri'e at maturity- In foundlin*
hos+itals, and amon* the )hildren &rou*ht u+ &y +arish )harities,
the mortality is still *reater than amon* those of the )ommon
+eo+le-
$'ery s+e)ies of animals naturally multi+lies in +ro+ortion
to the means of their su&sisten)e, and no s+e)ies )an e'er
multi+ly &eyond it- .ut in )i'ilised so)iety it is only amon* the
inferior ran0s of +eo+le that the s)antiness of su&sisten)e )an
set limits to the further multi+li)ation of the human s+e)ies/
and it )an do so in no other (ay than &y destroyin* a *reat +art
of the )hildren (hi)h their fruitful marria*es +rodu)e-
The li&eral re(ard of la&our, &y ena&lin* them to +ro'ide
&etter for their )hildren, and )onsequently to &rin* u+ a *reater
num&er, naturally tends to (iden and e1tend those limits- It
deser'es to &e remar0ed, too, that it ne)essarily does this as
nearly as +ossi&le in the +ro+ortion (hi)h the demand for la&our
requires- If this demand is )ontinually in)reasin*, the re(ard of
la&our must ne)essarily en)oura*e in su)h a manner the marria*e
and multi+li)ation of la&ourers, as may ena&le them to su++ly
that )ontinually in)reasin* demand &y a )ontinually in)reasin*
+o+ulation- If the re(ard should at any time &e less than (hat
(as requisite for this +ur+ose, the defi)ien)y of hands (ould
soon raise it/ and if it should at any time &e more, their
e1)essi'e multi+li)ation (ould soon lo(er it to this ne)essary
rate- The mar0et (ould &e so mu)h understo)0ed (ith la&our in the
one )ase, and so mu)h o'ersto)0ed in the other, as (ould soon
for)e &a)0 its +ri)e to that +ro+er rate (hi)h the )ir)umstan)es
of the so)iety required- It is in this manner that the demand for
men, li0e that for any other )ommodity, ne)essarily re*ulates the
+rodu)tion of men/ qui)0ens it (hen it *oes on too slo(ly, and
sto+s it (hen it ad'an)es too fast- It is this demand (hi)h
re*ulates and determines the state of +ro+a*ation in all the
different )ountries of the (orld, in North Ameri)a, in $uro+e,
and in China/ (hi)h renders it ra+idly +ro*ressi'e in the first,
slo( and *radual in the se)ond, and alto*ether stationary in the
last-
The (ear and tear of a sla'e, it has &een said, is at the
e1+ense of his master/ &ut that of a free ser'ant is at his o(n
e1+ense- The (ear and tear of the latter, ho(e'er, is, in
reality, as mu)h at the e1+ense of his master as that of the
former- The (a*es +aid to 2ourneymen and ser'ants of e'ery 0ind
must &e su)h as may ena&le them, one (ith another, to )ontinue
the ra)e of 2ourneymen and ser'ants, a))ordin* as the in)reasin*,
diminishin*, or stationary demand of the so)iety may ha++en to
require- .ut thou*h the (ear and tear of a free ser'ant &e
equally at the e1+ense of his master, it *enerally )osts him mu)h
less than that of a sla'e- The fund destined for re+la)in* or
re+airin*, if I may say so, the (ear and tear of the sla'e, is
)ommonly mana*ed &y a ne*li*ent master or )areless o'erseer- That
destined for +erformin* the same offi)e (ith re*ard to the free
man, is mana*ed &y the free man himself- The disorders (hi)h
*enerally +re'ail in the e)onomy of the ri)h, naturally introdu)e
themsel'es into the mana*ement of the former3 the stri)t
fru*ality and +arsimonious attention of the +oor as naturally
esta&lish themsel'es in that of the latter- Under su)h different
mana*ement, the same +ur+ose must require 'ery different de*rees
of e1+ense to e1e)ute it- It a++ears, a))ordin*ly, from the
e1+erien)e of all a*es and nations, I &elie'e, that the (or0 done
&y freemen )omes )hea+er in the end than that +erformed &y
sla'es- It is found to do so e'en at .oston, Ne( 7or0, and
hiladel+hia, (here the (a*es of )ommon la&our are so 'ery hi*h-
The li&eral re(ard of la&our, therefore, as it is the effe)t
of in)reasin* (ealth, so it is the )ause of in)reasin*
+o+ulation- To )om+lain of it is to lament o'er the ne)essary
effe)t and )ause of the *reatest +u&li) +ros+erity-
It deser'es to &e remar0ed, +erha+s, that it is in the
+ro*ressi'e state, (hile the so)iety is ad'an)in* to the further
a)quisition, rather than (hen it has a)quired its full )om+lement
of ri)hes, that the )ondition of the la&ourin* +oor, of the *reat
&ody of the +eo+le, seems to &e the ha++iest and the most
)omforta&le- It is hard in the stationary, and misera&le in the
de)linin* state- The +ro*ressi'e state is in reality the )heerful
and the hearty state to all the different orders of the so)iety-
The stationary is dull/ the de)linin*, melan)holy-
The li&eral re(ard of la&our, as it en)oura*es the
+ro+a*ation, so it in)reases the industry of the )ommon +eo+le-
The (a*es of la&our are the en)oura*ement of industry, (hi)h,
li0e e'ery other human quality, im+ro'es in +ro+ortion to the
en)oura*ement it re)ei'es- A +lentiful su&sisten)e in)reases the
&odily stren*th of the la&ourer, and the )omforta&le ho+e of
&etterin* his )ondition, and of endin* his days +erha+s in ease
and +lenty, animates him to e1ert that stren*th to the utmost-
Where (a*es are hi*h, a))ordin*ly, (e shall al(ays find the
(or0men more a)ti'e, dili*ent, and e1+editious than (here they
are lo(3 in $n*land, for e1am+le, than in S)otland/ in the
nei*h&ourhood of *reat to(ns than in remote )ountry +la)es- Some
(or0men, indeed, (hen they )an earn in four days (hat (ill
maintain them throu*h the (ee0, (ill &e idle the other three-
This, ho(e'er, is &y no means the )ase (ith the *reater +art-
Wor0men, on the )ontrary, (hen they are li&erally +aid &y the
+ie)e, are 'ery a+t to o'er(or0 themsel'es, and to ruin their
health and )onstitution in a fe( years- A )ar+enter in !ondon,
and in some other +la)es, is not su++osed to last in his utmost
'i*our a&o'e ei*ht years- Somethin* of the same 0ind ha++ens in
many other trades, in (hi)h the (or0men are +aid &y the +ie)e, as
they *enerally are in manufa)tures, and e'en in )ountry la&our,
(here'er (a*es are hi*her than ordinary- Almost e'ery )lass of
artifi)ers is su&2e)t to some +e)uliar infirmity o))asioned &y
e1)essi'e a++li)ation to their +e)uliar s+e)ies of (or0-
Ramu;;ini, an eminent Italian +hysi)ian, has (ritten a +arti)ular
&oo0 )on)ernin* su)h diseases- We do not re)0on our soldiers the
most industrious set of +eo+le amon* us- 7et (hen soldiers ha'e
&een em+loyed in some +arti)ular sorts of (or0, and li&erally
+aid &y the +ie)e, their offi)ers ha'e frequently &een o&li*ed to
sti+ulate (ith the underta0er, that they should not &e allo(ed to
earn a&o'e a )ertain sum e'ery day, a))ordin* to the rate at
(hi)h they (ere +aid- Till this sti+ulation (as made, mutual
emulation and the desire of *reater *ain frequently +rom+ted them
to o'er(or0 themsel'es, and to hurt their health &y e1)essi'e
la&our- $1)essi'e a++li)ation durin* four days of the (ee0 is
frequently the real )ause of the idleness of the other three, so
mu)h and so loudly )om+lained of- 6reat la&our, either of mind or
&ody, )ontinued for se'eral days to*ether, is in most men
naturally follo(ed &y a *reat desire of rela1ation, (hi)h, if not
restrained &y for)e or &y some stron* ne)essity, is almost
irresisti&le- It is the )all of nature, (hi)h requires to &e
relie'ed &y some indul*en)e, sometimes of ease only, &ut
sometimes, too, of dissi+ation and di'ersion- If it is not
)om+lied (ith, the )onsequen)es are often dan*erous, and
sometimes fatal, and su)h as almost al(ays, sooner or later,
&rin*s on the +e)uliar infirmity of the trade- If masters (ould
al(ays listen to the di)tates of reason and humanity, they ha'e
frequently o))asion rather to moderate than to animate the
a++li)ation of many of their (or0men- It (ill &e found, I
&elie'e, in e'ery sort of trade, that the man (ho (or0s so
moderately as to &e a&le to (or0 )onstantly not only +reser'es
his health the lon*est, &ut, in the )ourse of the year, e1e)utes
the *reatest quantity of (or0-
In )hea+ years, it is +retended, (or0men are *enerally more
idle, and in dear ones more industrious than ordinary- A
+lentiful su&sisten)e, therefore, it has &een )on)luded, rela1es,
and a s)anty one qui)0ens their industry- That a little more
+lenty than ordinary may render some (or0men idle, )annot (ell &e
dou&ted/ &ut that it should ha'e this effe)t u+on the *reater
+art, or that men in *eneral should (or0 &etter (hen they are ill
fed than (hen they are (ell fed, (hen they are disheartened than
(hen they are in *ood s+irits, (hen they are frequently si)0 than
(hen they are *enerally in *ood health, seems not 'ery +ro&a&le-
7ears of dearth, it is to &e o&ser'ed, are *enerally amon* the
)ommon +eo+le years of si)0ness and mortality, (hi)h )annot fail
to diminish the +rodu)e of their industry-
In years of +lenty, ser'ants frequently lea'e their masters,
and trust their su&sisten)e to (hat they )an ma0e &y their o(n
industry- .ut the same )hea+ness of +ro'isions, &y in)reasin* the
fund (hi)h is destined for the maintenan)e of ser'ants,
en)oura*es masters, farmers es+e)ially, to em+loy a *reater
num&er- "armers u+on su)h o))asions e1+e)t more +rofit from their
)orn &y maintainin* a fe( more la&ourin* ser'ants than &y sellin*
it at a lo( +ri)e in the mar0et- The demand for ser'ants
in)reases, (hile the num&er of those (ho offer to su++ly that
demand diminishes- The +ri)e of la&our, therefore, frequently
rises in )hea+ years-
In years of s)ar)ity, the diffi)ulty and un)ertainty of
su&sisten)e ma0e all su)h +eo+le ea*er to return to ser'i)e- .ut
the hi*h +ri)e of +ro'isions, &y diminishin* the funds destined
for the maintenan)e of ser'ants, dis+oses masters rather to
diminish than to in)rease the num&er of those they ha'e- In dear
years, too, +oor inde+endent (or0men frequently )onsume the
little sto)0s (ith (hi)h they had used to su++ly themsel'es (ith
the materials of their (or0, and are o&li*ed to &e)ome 2ourneymen
for su&sisten)e- 4ore +eo+le (ant em+loyment than )an easily *et
it/ many are (illin* to ta0e it u+on lo(er terms than ordinary,
and the (a*es of &oth ser'ants and 2ourneymen frequently sin0 in
dear years-
4asters of all sorts, therefore, frequently ma0e &etter
&ar*ains (ith their ser'ants in dear than in )hea+ years, and
find them more hum&le and de+endent in the former than in the
latter- They naturally, therefore, )ommend the former as more
fa'oura&le to industry- !andlords and farmers, &esides, t(o of
the lar*est )lasses of masters, ha'e another reason for &ein*
+leased (ith dear years- The rents of the one and the +rofits of
the other de+end 'ery mu)h u+on the +ri)e of +ro'isions- Nothin*
)an &e more a&surd, ho(e'er, than to ima*ine that men in *eneral
should (or0 less (hen they (or0 for themsel'es, than (hen they
(or0 for other +eo+le- A +oor inde+endent (or0man (ill *enerally
&e more industrious than e'en a 2ourneyman (ho (or0s &y the
+ie)e- The one en2oys the (hole +rodu)e of his o(n industry/ the
other shares it (ith his master- The one, in his se+arate
inde+endent state, is less lia&le to the tem+tations of &ad
)om+any, (hi)h in lar*e manufa)tories so frequently ruin the
morals of the other- The su+eriority of the inde+endent (or0man
o'er those ser'ants (ho are hired &y the month or &y the year,
and (hose (a*es and maintenan)e are the same (hether they do mu)h
or do little, is li0ely to &e still *reater- Chea+ years tend to
in)rease the +ro+ortion of inde+endent (or0men to 2ourneymen and
ser'ants of all 0inds, and dear years to diminish it-
A "ren)h author of *reat 0no(led*e and in*enuity, 4r-
4essan)e, re)ei'er of the taillies in the ele)tion of St-
$tienne, endea'ours to sho( that the +oor do more (or0 in )hea+
than in dear years, &y )om+arin* the quantity and 'alue of the
*oods made u+on those different o))asions in three different
manufa)tures/ one of )oarse (oollens )arried on at $l&euf/ one of
linen, and another of sil0, &oth (hi)h e1tend throu*h the (hole
*enerality of Rouen- It a++ears from his a))ount, (hi)h is )o+ied
from the re*isters of the +u&li) offi)es, that the quantity and
'alue of the *oods made in all those three manufa)tures has
*enerally &een *reater in )hea+ than in dear years/ and that it
has al(ays &een *reatest in the )hea+est, and least in the
dearest years- All the three seem to &e stationary manufa)tures,
or (hi)h, thou*h their +rodu)e may 'ary some(hat from year to
year, are u+on the (hole neither *oin* &a)0(ards nor for(ards-
The manufa)ture of linen in S)otland, and that of )oarse
(oollens in the West Ridin* of 7or0shire, are *ro(in*
manufa)tures, of (hi)h the +rodu)e is *enerally, thou*h (ith some
'ariations, in)reasin* &oth in quantity and 'alue- U+on
e1aminin*, ho(e'er, the a))ounts (hi)h ha'e &een +u&lished of
their annual +rodu)e, I ha'e not &een a&le to o&ser'e that its
'ariations ha'e had any sensi&le )onne)tion (ith the dearness or
)hea+ness of the seasons- In 17GC, a year of *reat s)ar)ity, &oth
manufa)tures, indeed, a++ear to ha'e de)lined 'ery )onsidera&ly-
.ut in 17H6, another year of *reat s)ar)ity, the S)ot)h
manufa)ture made more than ordinary ad'an)es- The 7or0shire
manufa)ture, indeed, de)lined, and its +rodu)e did not rise to
(hat it had &een in 17HH till 1766, after the re+eal of the
Ameri)an Stam+ A)t- In that and the follo(in* year it *reatly
e1)eeded (hat it had e'er &een &efore, and it has )ontinued to
ad'an)e e'er sin)e-
The +rodu)e of all *reat manufa)tures for distant sale must
ne)essarily de+end, not so mu)h u+on the dearness or )hea+ness of
the seasons in the )ountries (here they are )arried on as u+on
the )ir)umstan)es (hi)h affe)t the demand in the )ountries (here
they are )onsumed/ u+on +ea)e or (ar, u+on the +ros+erity or
de)lension of other ri'al manufa)tures, and u+on the *ood or &ad
humour of their +rin)i+al )ustomers- A *reat +art of the
e1traordinary (or0, &esides, (hi)h is +ro&a&ly done in )hea+
years, ne'er enters the +u&li) re*isters of manufa)tures- The men
ser'ants (ho lea'e their masters &e)ome inde+endent la&ourers-
The (omen return to their +arents, and )ommonly s+in in order to
ma0e )lothes for themsel'es and their families- $'en the
inde+endent (or0men do not al(ays (or0 for +u&li) sale, &ut are
em+loyed &y some of their nei*h&ours in manufa)tures for family
use- The +rodu)e of their la&our, therefore, frequently ma0es no
fi*ure in those +u&li) re*isters of (hi)h the re)ords are
sometimes +u&lished (ith so mu)h +arade, and from (hi)h our
mer)hants and manufa)turers (ould often 'ainly +retend to
announ)e the +ros+erity or de)lension of the *reatest em+ires-
Thou*h the 'ariations in the +ri)e of la&our not only do not
al(ays )orres+ond (ith those in the +ri)e of +ro'isions, &ut are
frequently quite o++osite, (e must not, u+on this a))ount,
ima*ine that the +ri)e of +ro'isions has no influen)e u+on that
of la&our- The money +ri)e of la&our is ne)essarily re*ulated &y
t(o )ir)umstan)es/ the demand for la&our, and the +ri)e of the
ne)essaries and )on'enien)es of life- The demand for la&our,
a))ordin* as it ha++ens to &e in)reasin*, stationary, or
de)linin*, or to require an in)reasin*, stationary, or de)linin*
+o+ulation, determines the quantity of the ne)essaries and
)on'enien)ies of life (hi)h must &e *i'en to the la&ourer/ and
the money +ri)e of la&our is determined &y (hat is requisite for
+ur)hasin* this quantity- Thou*h the money +ri)e of la&our,
therefore, is sometimes hi*h (here the +ri)e of +ro'isions is
lo(, it (ould &e still hi*her, the demand )ontinuin* the same, if
the +ri)e of +ro'isions (as hi*h-
It is &e)ause the demand for la&our in)reases in years of
sudden and e1traordinary +lenty, and diminishes in those of
sudden and e1traordinary s)ar)ity, that the money +ri)e of la&our
sometimes rises in the one and sin0s in the other-
In a year of sudden and e1traordinary +lenty, there are
funds in the hands of many of the em+loyers of industry
suffi)ient to maintain and em+loy a *reater num&er of industrious
+eo+le than had &een em+loyed the year &efore/ and this
e1traordinary num&er )annot al(ays &e had- Those masters,
therefore, (ho (ant more (or0men &id a*ainst one another, in
order to *et them, (hi)h sometimes raises &oth the real and the
money +ri)e of their la&our-
The )ontrary of this ha++ens in a year of sudden and
e1traordinary s)ar)ity- The funds destined for em+loyin* industry
are less than they had &een the year &efore- A )onsidera&le
num&er of +eo+le are thro(n out of em+loyment, (ho &id a*ainst
one another, in order to *et it, (hi)h sometimes lo(ers &oth the
real and the money +ri)e of la&our- In 17GC, a year of
e1traordinary s)ar)ity, many +eo+le (ere (illin* to (or0 for &are
su&sisten)e- In the su))eedin* years of +lenty, it (as more
diffi)ult to *et la&ourers and ser'ants-
The s)ar)ity of a dear year, &y diminishin* the demand for
la&our, tends to lo(er its +ri)e, as the hi*h +ri)e of +ro'isions
tends to raise it- The +lenty of a )hea+ year, on the )ontrary,
&y in)reasin* the demand, tends to raise the +ri)e of la&our, as
the )hea+ness of +ro'isions tends to lo(er it- In the ordinary
'ariations of the +ri)e of +ro'isions those t(o o++osite )auses
seem to )ounter&alan)e one another, (hi)h is +ro&a&ly in +art the
reason (hy the (a*es of la&our are e'ery(here so mu)h more steady
and +ermanent than the +ri)e of +ro'isions-
The in)rease in the (a*es of la&our ne)essarily in)reases
the +ri)e of many )ommodities, &y in)reasin* that +art of it
(hi)h resol'es itself into (a*es, and so far tends to diminish
their )onsum+tion &oth at home and a&road- The same )ause,
ho(e'er, (hi)h raises the (a*es of la&our, the in)rease of sto)0,
tends to in)rease its +rodu)ti'e +o(ers, and to ma0e a smaller
quantity of la&our +rodu)e a *reater quantity of (or0- The o(ner
of the sto)0 (hi)h em+loys a *reat num&er of la&ourers,
ne)essarily endea'ours, for his o(n ad'anta*e, to ma0e su)h a
+ro+er di'ision and distri&ution of em+loyment that they may &e
ena&led to +rodu)e the *reatest quantity of (or0 +ossi&le- "or
the same reason, he endea'ours to su++ly them (ith the &est
ma)hinery (hi)h either he or they )an thin0 of- What ta0es +la)e
amon* the la&ourers in a +arti)ular (or0house ta0es +la)e, for
the same reason, amon* those of a *reat so)iety- The *reater
their num&er, the more they naturally di'ide themsel'es into
different )lasses and su&di'isions of em+loyment- 4ore heads are
o))u+ied in in'entin* the most +ro+er ma)hinery for e1e)utin* the
(or0 of ea)h, and it is, therefore, more li0ely to &e in'ented-
There are many )ommodities, therefore, (hi)h, in )onsequen)e of
these im+ro'ements, )ome to &e +rodu)ed &y so mu)h less la&our
than &efore that the in)rease of its +ri)e is more than
)om+ensated &y the diminution of its quantity-
C#AT$R II
Of the rofits of Sto)0
T#$ rise and fall in the +rofits of sto)0 de+end u+on the
same )auses (ith the rise and fall in the (a*es of la&our, the
in)reasin* or de)linin* state of the (ealth of the so)iety/ &ut
those )auses affe)t the one and the other 'ery differently-
The in)rease of sto)0, (hi)h raises (a*es, tends to lo(er
+rofit- When the sto)0s of many ri)h mer)hants are turned into
the same trade, their mutual )om+etition naturally tends to lo(er
its +rofit/ and (hen there is a li0e in)rease of sto)0 in all the
different trades )arried on in the same so)iety, the same
)om+etition must +rodu)e the same effe)t in them all-
It is not easy, it has already &een o&ser'ed, to as)ertain
(hat are the a'era*e (a*es of la&our e'en in a +arti)ular +la)e,
and at a +arti)ular time- We )an, e'en in this )ase, seldom
determine more than (hat are the most usual (a*es- .ut e'en this
)an seldom &e done (ith re*ard to the +rofits of sto)0- rofit is
so 'ery flu)tuatin* that the +erson (ho )arries on a +arti)ular
trade )annot al(ays tell you himself (hat is the a'era*e of his
annual +rofit- It is affe)ted not only &y e'ery 'ariation of
+ri)e in the )ommodities (hi)h he deals in, &ut &y the *ood or
&ad fortune &oth of his ri'als and of his )ustomers, and &y a
thousand other a))idents to (hi)h *oods (hen )arried either &y
sea or &y land, or e'en (hen stored in a (arehouse, are lia&le-
It 'aries, therefore, not only from year to year, &ut from day to
day, and almost from hour to hour- To as)ertain (hat is the
a'era*e +rofit of all the different trades )arried on in a *reat
0in*dom must &e mu)h more diffi)ult/ and to 2ud*e of (hat it may
ha'e &een formerly, or in remote +eriods of time, (ith any de*ree
of +re)ision, must &e alto*ether im+ossi&le-
.ut thou*h it may &e im+ossi&le to determine, (ith any
de*ree of +re)ision, (hat are or (ere the a'era*e +rofits of
sto)0, either in the +resent or in an)ient times, some notion may
&e formed of them from the interest of money- It may &e laid do(n
as a ma1im, that (here'er a *reat deal )an &e made &y the use of
money, a *reat deal (ill )ommonly &e *i'en for the use of it/ and
that (here'er little )an &e made &y it, less (ill )ommonly &e
*i'en for it- A))ordin*, therefore, as the usual mar0et rate of
interest 'aries in any )ountry, (e may &e assured that the
ordinary +rofits of sto)0 must 'ary (ith it, must sin0 as it
sin0s, and rise as it rises- The +ro*ress of interest, therefore,
may lead us to form some notion of the +ro*ress of +rofit-
.y the B7th of #enry 5III all interest a&o'e ten +er )ent
(as de)lared unla(ful- 4ore, it seems, had sometimes &een ta0en
&efore that- In the rei*n of $d(ard 5I reli*ious ;eal +rohi&ited
all interest- This +rohi&ition, ho(e'er, li0e all others of the
same 0ind, is said to ha'e +rodu)ed no effe)t, and +ro&a&ly
rather in)reased than diminished the e'il of usury- The statute
of #enry 5III (as re'i'ed &y the 1Bth of $li;a&eth, )- ?, and ten
+er )ent )ontinued to &e the le*al rate of interest till the E1st
of Aames I, (hen it (as restri)ted to ei*ht +er )ent- It (as
redu)ed to si1 +er )ent soon after the Restoration, and &y the
1Eth of Jueen Anne to fi'e +er )ent- All these different
statutory re*ulations seem to ha'e &een made (ith *reat
+ro+riety- They seem to ha'e follo(ed and not to ha'e *one &efore
the mar0et rate of interest, or the rate at (hi)h +eo+le of *ood
)redit usually &orro(ed- Sin)e the time of Jueen Anne, fi'e +er
)ent seems to ha'e &een rather a&o'e than &elo( the mar0et rate-
.efore the late (ar, the *o'ernment &orro(ed at three +er )ent/
and +eo+le of *ood )redit in the )a+ital, and in many other +arts
of the 0in*dom, at three and a half, four, and four and a half
+er )ent-
Sin)e the time of #enry 5III the (ealth and re'enue of the
)ountry ha'e &een )ontinually ad'an)in*, and, in the )ourse of
their +ro*ress, their +a)e seems rather to ha'e &een *radually
a))elerated than retarded- They seem not only to ha'e &een *oin*
on, &ut to ha'e &een *oin* on faster and faster- The (a*es of
la&our ha'e &een )ontinually in)reasin* durin* the same +eriod,
and in the *reater +art of the different &ran)hes of trade and
manufa)tures the +rofits of sto)0 ha'e &een diminishin*-
It *enerally requires a *reater sto)0 to )arry on any sort
of trade in a *reat to(n than in a )ountry 'illa*e- The *reat
sto)0s em+loyed in e'ery &ran)h of trade, and the num&er of ri)h
)om+etitors, *enerally redu)e the rate of +rofit in the former
&elo( (hat it is in the latter .ut the (a*es of la&our are
*enerally hi*her in a *reat to(n than in a )ountry 'illa*e- In a
thri'in* to(n the +eo+le (ho ha'e *reat sto)0s to em+loy
frequently )annot *et the num&er of (or0men they (ant, and
therefore &id a*ainst one another in order to *et as many as they
)an, (hi)h raises the (a*es of la&our, and lo(ers the +rofits of
sto)0- In the remote +arts of the )ountry there is frequently not
sto)0 suffi)ient to em+loy all the +eo+le, (ho therefore &id
a*ainst one another in order to *et em+loyment, (hi)h lo(ers the
(a*es of la&our and raises the +rofits of sto)0-
In S)otland, thou*h the le*al rate of interest is the same
as in $n*land, the mar0et rate is rather hi*her- eo+le of the
&est )redit there seldom &orro( under fi'e +er )ent- $'en +ri'ate
&an0ers in $din&ur*h *i'e four +er )ent u+on their +romissory
notes, of (hi)h +ayment either in (hole or in +art may &e
demanded at +leasure- ri'ate &an0ers in !ondon *i'e no interest
for the money (hi)h is de+osited (ith them- There are fe( trades
(hi)h )annot &e )arried on (ith a smaller sto)0 in S)otland than
in $n*land- The )ommon rate of +rofit, therefore, must &e
some(hat *reater- The (a*es of la&our, it has already &een
o&ser'ed, are lo(er in S)otland than in $n*land- The )ountry,
too, is not only mu)h +oorer, &ut the ste+s &y (hi)h it ad'an)es
to a &etter )ondition, for it is e'idently ad'an)in*, seem to &e
mu)h slo(er and more tardy-
The le*al rate of interest in "ran)e has not, durin* the
)ourse of the +resent )entury, &een al(ays re*ulated &y the
mar0et rate- In 17EC interest (as redu)ed from the t(entieth to
the fiftieth +enny, or from fi'e to t(o +er )ent- In 17EG it (as
raised to the thirtieth +enny, or to B 1DB +er )ent- In 17EH it
(as a*ain raised to the t(entieth +enny, or to fi'e +er )ent- In
1766, durin* the administration of 4r- !a'erdy, it (as redu)ed to
the t(enty8fifth +enny, or to four +er )ent- The A&&e Terray
raised it after(ards to the old rate of fi'e +er )ent- The
su++osed +ur+ose of many of those 'iolent redu)tions of interest
(as to +re+are the (ay for redu)in* that of the +u&li) de&ts/ a
+ur+ose (hi)h has sometimes &een e1e)uted- "ran)e is +erha+s in
the +resent times not so ri)h a )ountry as $n*land/ and thou*h
the le*al rate of interest has in "ran)e frequently &een lo(er
than in $n*land, the mar0et rate has *enerally &een hi*her/ for
there, as in other )ountries, they ha'e se'eral 'ery safe and
easy methods of e'adin* the la(- The +rofits of trade, I ha'e
&een assured &y .ritish mer)hants (ho had traded in &oth
)ountries, are hi*her in "ran)e than in $n*land/ and it is no
dou&t u+on this a))ount that many .ritish su&2e)ts )hoose rather
to em+loy their )a+itals in a )ountry (here trade is in dis*ra)e,
than in one (here it is hi*hly res+e)ted- The (a*es of la&our are
lo(er in "ran)e than in $n*land- When you *o from S)otland to
$n*land, the differen)e (hi)h you may remar0 &et(een the dress
and )ountenan)e of the )ommon +eo+le in the one )ountry and in
the other suffi)iently indi)ates the differen)e in their
)ondition- The )ontrast is still *reater (hen you return from
"ran)e- "ran)e, thou*h no dou&t a ri)her )ountry than S)otland,
seems not to &e *oin* for(ard so fast- It is a )ommon and e'en a
+o+ular o+inion in the )ountry that it is *oin* &a)0(ards/ an
o+inion (hi)h, a++rehend, is ill founded e'en (ith re*ard to
"ran)e, &ut (hi)h no&ody )an +ossi&ly entertain (ith re*ard to
S)otland, (ho sees the )ountry no(, and (ho sa( it t(enty or
thirty years a*o-
The +ro'in)e of #olland, on the other hand, in +ro+ortion to
the e1tent of its territory and the num&er of its +eo+le, is a
ri)her )ountry than $n*land- The *o'ernment there &orro(s at t(o
+er )ent, and +ri'ate +eo+le of *ood )redit at three- The (a*es
of la&our are said to &e hi*her in #olland than in $n*land, and
the Dut)h, it is (ell 0no(n, trade u+on lo(er +rofits than any
+eo+le in $uro+e- The trade of #olland, it has &een +retended &y
some +eo+le, is de)ayin*, and it may +erha+s &e true some
+arti)ular &ran)hes of it are so- .ut these sym+toms seem to
indi)ate suffi)iently that there is no *eneral de)ay- When +rofit
diminishes, mer)hants are 'ery a+t to )om+lain that trade de)ays/
thou*h the diminution of +rofit is the natural effe)t of its
+ros+erity, or of a *reater sto)0 &ein* em+loyed in it than
&efore- Durin* the late (ar the Dut)h *ained the (hole )arryin*
trade of "ran)e, of (hi)h they still retain a 'ery lar*e share-
The *reat +ro+erty (hi)h they +ossess &oth in the "ren)h and
$n*lish funds, a&out forty millions, it is said, in the latter
9in (hi)h I sus+e)t, ho(e'er, there is a )onsidera&le
e1a**eration:/ the *reat sums (hi)h they lend to +ri'ate +eo+le
in )ountries (here the rate of interest is hi*her than in their
o(n, are )ir)umstan)es (hi)h no dou&t demonstrate the redundan)y
of their sto)0, or that it has in)reased &eyond (hat they )an
em+loy (ith tolera&le +rofit in the +ro+er &usiness of their o(n
)ountry3 &ut they do not demonstrate that that has de)reased- As
the )a+ital of a +ri'ate man, thou*h a)quired &y a +arti)ular
trade, may in)rease &eyond (hat he )an em+loy in it, and yet that
trade )ontinue to in)rease too/ so may li0e(ise the )a+ital of a
*reat nation-
In our North Ameri)an and West Indian )olonies, not only the
(a*es of la&our, &ut the interest of money, and )onsequently the
+rofits of sto)0, are hi*her than in $n*land- In the different
)olonies &oth the le*al and the mar0et rate of interest run from
si1 to ei*ht +er )ent- #i*h (a*es of la&our and hi*h +rofits of
sto)0, ho(e'er, are thin*s, +erha+s, (hi)h s)ar)e e'er *o
to*ether, e1)e+t in the +e)uliar )ir)umstan)es of ne( )olonies- A
ne( )olony must al(ays for some time &e more understo)0ed in
+ro+ortion to the e1tent of its territory, and more under+eo+led
in +ro+ortion to the e1tent of its sto)0, than the *reater +art
of other )ountries- They ha'e more land than they ha'e sto)0 to
)ulti'ate- What they ha'e, therefore, is a++lied to the
)ulti'ation only of (hat is most fertile and most fa'oura&ly
situated, the land near the sea shore, and alon* the &an0s of
na'i*a&le ri'ers- Su)h land, too, is frequently +ur)hased at a
+ri)e &elo( the 'alue e'en of its natural +rodu)e- Sto)0 em+loyed
in the +ur)hase and im+ro'ement of su)h lands must yield a 'ery
lar*e +rofit, and )onsequently afford to +ay a 'ery lar*e
interest- Its ra+id a))umulation in so +rofita&le an em+loyment
ena&les the +lanter to in)rease the num&er of his hands faster
than he )an find them in a ne( settlement- Those (hom he )an
find, therefore, are 'ery li&erally re(arded- As the )olony
in)reases, the +rofits of sto)0 *radually diminish- When the most
fertile and &est situated lands ha'e &een all o))u+ied, less
+rofit )an &e made &y the )ulti'ation of (hat is inferior &oth in
soil and situation, and less interest )an &e afforded for the
sto)0 (hi)h is so em+loyed- In the *reater +art of our )olonies,
a))ordin*ly, &oth the le*al and the mar0et rate of interest ha'e
&een )onsidera&ly redu)ed durin* the )ourse of the +resent
)entury- As ri)hes, im+ro'ement, and +o+ulation ha'e in)reased,
interest has de)lined- The (a*es of la&our do not sin0 (ith the
+rofits of sto)0- The demand for la&our in)reases (ith the
in)rease of sto)0 (hate'er &e its +rofits/ and after these are
diminished, sto)0 may not only )ontinue to in)rease, &ut to
in)rease mu)h faster than &efore- It is (ith industrious nations
(ho are ad'an)in* in the a)quisition of ri)hes as (ith
industrious indi'iduals- A *reat sto)0, thou*h (ith small
+rofits, *enerally in)reases faster than a small sto)0 (ith *reat
+rofits- 4oney, says the +ro'er&, ma0es money- When you ha'e *ot
a little, it is often easy to *et more- The *reat diffi)ulty is
to *et that little- The )onne)tion &et(een the in)rease of sto)0
and that of industry, or of the demand for useful la&our, has
+artly &een e1+lained already, &ut (ill &e e1+lained more fully
hereafter in treatin* of the a))umulation of sto)0-
The a)quisition of ne( territory, or of ne( &ran)hes of
trade, may sometimes raise the +rofits of sto)0, and (ith them
the interest of money, e'en in a )ountry (hi)h is fast ad'an)in*
in the a)quisition of ri)hes- The sto)0 of the )ountry not &ein*
suffi)ient for the (hole a))ession of &usiness, (hi)h su)h
a)quisitions +resent to the different +eo+le amon* (hom it is
di'ided, is a++lied to those +arti)ular &ran)hes only (hi)h
afford the *reatest +rofit- art of (hat had &efore &een em+loyed
in other trades is ne)essarily (ithdra(n from them, and turned
into some of the ne( and more +rofita&le ones- In all those old
trades, therefore, the )om+etition )omes to &e less than &efore-
The mar0et )omes to &e less fully su++lied (ith many different
sorts of *oods- Their +ri)e ne)essarily rises more or less, and
yields a *reater +rofit to those (ho deal in them, (ho )an,
therefore, afford to &orro( at a hi*her interest- "or some time
after the )on)lusion of the late (ar, not only +ri'ate +eo+le of
the &est )redit, &ut some of the *reatest )om+anies in !ondon,
)ommonly &orro(ed at fi'e +er )ent, (ho &efore that had not &een
used to +ay more than four, and four and a half +er )ent- The
*reat a))ession &oth of territory and trade, &y our a)quisitions
in North Ameri)a and the West Indies, (ill suffi)iently a))ount
for this, (ithout su++osin* any diminution in the )a+ital sto)0
of the so)iety- So *reat an a))ession of ne( &usiness to &e
)arried on &y the old sto)0 must ne)essarily ha'e diminished the
quantity em+loyed in a *reat num&er of +arti)ular &ran)hes, in
(hi)h the )om+etition &ein* less, the +rofits must ha'e &een
*reater- I shall hereafter ha'e o))asion to mention the reasons
(hi)h dis+ose me to &elie'e that the )a+ital sto)0 of 6reat
.ritain (as not diminished e'en &y the enormous e1+ense of the
late (ar-
The diminution of the )a+ital sto)0 of the so)iety, or of
the funds destined for the maintenan)e of industry, ho(e'er, as
it lo(ers the (a*es of la&our, so it raises the +rofits of sto)0,
and )onsequently the interest of money- .y the (a*es of la&our
&ein* lo(ered, the o(ners of (hat sto)0 remains in the so)iety
)an &rin* their *oods at less e1+ense to mar0et than &efore, and
less sto)0 &ein* em+loyed in su++lyin* the mar0et than &efore,
they )an sell them dearer- Their *oods )ost them less, and they
*et more for them- Their +rofits, therefore, &ein* au*mented at
&oth ends, )an (ell afford a lar*e interest- The *reat fortunes
so suddenly and so easily a)quired in .en*al and the other
.ritish settlements in the $ast Indies may satisfy us that, as
the (a*es of la&our are 'ery lo(, so the +rofits of sto)0 are
'ery hi*h in those ruined )ountries- The interest of money is
+ro+ortiona&ly so- In .en*al, money is frequently lent to the
farmers at forty, fifty, and si1ty +er )ent and the su))eedin*
)ro+ is mort*a*ed for the +ayment- As the +rofits (hi)h )an
afford su)h an interest must eat u+ almost the (hole rent of the
landlord, so su)h enormous usury must in its turn eat u+ the
*reater +art of those +rofits- .efore the fall of the Roman
re+u&li), a usury of the same 0ind seems to ha'e &een )ommon in
the +ro'in)es, under the ruinous administration of their
+ro)onsuls- The 'irtuous .rutus lent money in Cy+rus at
ei*ht8and8forty +er )ent as (e learn from the letters of Ci)ero-
In a )ountry (hi)h had a)quired that full )om+lement of
ri)hes (hi)h the nature of its soil and )limate, and its
situation (ith res+e)t to other )ountries, allo(ed it to a)quire/
(hi)h )ould, therefore, ad'an)e no further, and (hi)h (as not
*oin* &a)0(ards, &oth the (a*es of la&our and the +rofits of
sto)0 (ould +ro&a&ly &e 'ery lo(- In a )ountry fully +eo+led in
+ro+ortion to (hat either its territory )ould maintain or its
sto)0 em+loy, the )om+etition for em+loyment (ould ne)essarily &e
so *reat as to redu)e the (a*es of la&our to (hat (as &arely
suffi)ient to 0ee+ u+ the num&er of la&ourers, and, the )ountry
&ein* already fully +eo+led, that num&er )ould ne'er &e
au*mented- In a )ountry fully sto)0ed in +ro+ortion to all the
&usiness it had to transa)t, as *reat a quantity of sto)0 (ould
&e em+loyed in e'ery +arti)ular &ran)h as the nature and e1tent
of the trade (ould admit- The )om+etition, therefore, (ould
e'ery(here &e as *reat, and )onsequently the ordinary +rofit as
lo( as +ossi&le-
.ut +erha+s no )ountry has e'er yet arri'ed at this de*ree
of o+ulen)e- China seems to ha'e &een lon* stationary, and had
+ro&a&ly lon* a*o a)quired that full )om+lement of ri)hes (hi)h
is )onsistent (ith the nature of its la(s and institutions- .ut
this )om+lement may &e mu)h inferior to (hat, (ith other la(s and
institutions, the nature of its soil, )limate, and situation
mi*ht admit of- A )ountry (hi)h ne*le)ts or des+ises forei*n
)ommer)e, and (hi)h admits the 'essels of forei*n nations into
one or t(o of its +orts only, )annot transa)t the same quantity
of &usiness (hi)h it mi*ht do (ith different la(s and
institutions- In a )ountry too, (here, thou*h the ri)h or the
o(ners of lar*e )a+itals en2oy a *ood deal of se)urity, the +oor
or the o(ners of small )a+itals en2oy s)ar)e any, &ut are lia&le,
under the +reten)e of 2usti)e, to &e +illa*ed and +lundered at
any time &y the inferior mandarins, the quantity of sto)0
em+loyed in all the different &ran)hes of &usiness transa)ted
(ithin it )an ne'er &e equal to (hat the nature and e1tent of
that &usiness mi*ht admit- In e'ery different &ran)h, the
o++ression of the +oor must esta&lish the mono+oly of the ri)h,
(ho, &y en*rossin* the (hole trade to themsel'es, (ill &e a&le to
ma0e 'ery lar*e +rofits- T(el'e +er )ent a))ordin*ly is said to
&e the )ommon interest of money in China, and the ordinary
+rofits of sto)0 must &e suffi)ient to afford this lar*e
interest-
A defe)t in the la( may sometimes raise the rate of interest
)onsidera&ly a&o'e (hat the )ondition of the )ountry, as to
(ealth or +o'erty, (ould require- When the la( does not enfor)e
the +erforman)e of )ontra)ts, it +uts all &orro(ers nearly u+on
the same footin* (ith &an0ru+ts or +eo+le of dou&tful )redit in
&etter re*ulated )ountries- The un)ertainty of re)o'erin* his
money ma0es the lender e1a)t the same usurious interest (hi)h is
usually required from &an0ru+ts- Amon* the &ar&arous nations (ho
o'erran the (estern +ro'in)es of the Roman em+ire, the
+erforman)e of )ontra)ts (as left for many a*es to the faith of
the )ontra)tin* +arties- The )ourts of 2usti)e of their 0in*s
seldom intermeddled in it- The hi*h rate of interest (hi)h too0
+la)e in those an)ient times may +erha+s &e +artly a))ounted for
from this )ause-
When the la( +rohi&its interest alto*ether, it does not
+re'ent it- 4any +eo+le must &orro(, and no&ody (ill lend (ithout
su)h a )onsideration for the use of their money as is suita&le
not only to (hat )an &e made &y the use of it, &ut to the
diffi)ulty and dan*er of e'adin* the la(- The hi*h rate of
interest amon* all 4ahometan nations is a))ounted for &y 4r-
4ontesquieu, not from their +o'erty, &ut +artly from this, and
+artly from the diffi)ulty of re)o'erin* the money-
The lo(est ordinary rate of +rofit must al(ays &e somethin*
more than (hat is suffi)ient to )om+ensate the o))asional losses
to (hi)h e'ery em+loyment of sto)0 is e1+osed- It is this sur+lus
only (hi)h is neat or )lear +rofit- What is )alled *ross +rofit
)om+rehends frequently, not only this sur+lus, &ut (hat is
retained for )om+ensatin* su)h e1traordinary losses- The interest
(hi)h the &orro(er )an afford to +ay is in +ro+ortion to the
)lear +rofit only-
The lo(est ordinary rate of interest must, in the same
manner, &e somethin* more than suffi)ient to )om+ensate the
o))asional losses to (hi)h lendin*, e'en (ith tolera&le +ruden)e,
is e1+osed- Were it not more, )harity or friendshi+ )ould &e the
only moti'e for lendin*-
In a )ountry (hi)h had a)quired its full )om+lement of
ri)hes, (here in e'ery +arti)ular &ran)h of &usiness there (as
the *reatest quantity of sto)0 that )ould &e em+loyed in it, as
the ordinary rate of )lear +rofit (ould &e 'ery small, so the
usual mar0et rate of interest (hi)h )ould &e afforded out of it
(ould &e so lo( as to render it im+ossi&le for any &ut the 'ery
(ealthiest +eo+le to li'e u+on the interest of their money- All
+eo+le of small or middlin* fortunes (ould &e o&li*ed to
su+erintend themsel'es the em+loyment of their o(n sto)0s- It
(ould &e ne)essary that almost e'ery man should &e a man of
&usiness, or en*a*e in some sort of trade- The +ro'in)e of
#olland seems to &e a++roa)hin* near to this state- It is there
unfashiona&le not to &e a man of &usiness- Ne)essity ma0es it
usual for almost e'ery man to &e so, and )ustom e'ery(here
re*ulates fashion- As it is ridi)ulous not to dress, so is it, in
some measure, not to &e em+loyed, li0e other +eo+le- As a man of
a )i'il +rofession seems a(0(ard in a )am+ or a *arrison, and is
e'en in some dan*er of &ein* des+ised there, so does an idle man
amon* men of &usiness-
The hi*hest ordinary rate of +rofit may &e su)h as, in the
+ri)e of the *reater +art of )ommodities, eats u+ the (hole of
(hat should *o to the rent of the land, and lea'es only (hat is
suffi)ient to +ay the la&our of +re+arin* and &rin*in* them to
mar0et, a))ordin* to the lo(est rate at (hi)h la&our )an any(here
&e +aid, the &are su&sisten)e of the la&ourer- The (or0man must
al(ays ha'e &een fed in some (ay or other (hile he (as a&out the
(or0/ &ut the landlord may not al(ays ha'e &een +aid- The +rofits
of the trade (hi)h the ser'ants of the $ast India Com+any )arry
on in .en*al may not +erha+s &e 'ery far from this rate-
The +ro+ortion (hi)h the usual mar0et rate of interest ou*ht
to &ear to the ordinary rate of )lear +rofit, ne)essarily 'aries
as +rofit rises or falls- Dou&le interest is in 6reat .ritain
re)0oned (hat the mer)hants )all a *ood, moderate, reasona&le
+rofit/ terms (hi)h I a++rehend mean no more than a )ommon and
usual +rofit- In a )ountry (here the ordinary rate of )lear
+rofit is ei*ht or ten +er )ent, it may &e reasona&le that one
half of it should *o to interest, (here'er &usiness is )arried on
(ith &orro(ed money- The sto)0 is at the ris0 of the &orro(er,
(ho, as it (ere, insures it to the lender/ and four or fi'e +er
)ent may, in the *reater +art of trades, &e &oth a suffi)ient
+rofit u+on the ris0 of this insuran)e, and a suffi)ient
re)om+ense for the trou&le of em+loyin* the sto)0- .ut the
+ro+ortion &et(een interest and )lear +rofit mi*ht not &e the
same in )ountries (here the ordinary rate of +rofit (as either a
*ood deal lo(er, or a *ood deal hi*her- If it (ere a *ood deal
lo(er, one half of it +erha+s )ould not &e afforded for interest/
and more mi*ht &e afforded if it (ere a *ood deal hi*her-
In )ountries (hi)h are fast ad'an)in* to ri)hes, the lo(
rate of +rofit may, in the +ri)e of many )ommodities, )om+ensate
the hi*h (a*es of la&our, and ena&le those )ountries to sell as
)hea+ as their less thri'in* nei*h&ours, amon* (hom the (a*es of
la&our may &e lo(er-
In reality hi*h +rofits tend mu)h more to raise the +ri)e of
(or0 than hi*h (a*es- If in the linen manufa)ture, for e1am+le,
the (a*es of the different (or0in* +eo+le, the fla18dressers, the
s+inners, the (ea'ers, et)-, should, all of them, &e ad'an)ed
t(o+en)e a day/ it (ould &e ne)essary to hei*hten the +ri)e of a
+ie)e of linen only &y a num&er of t(o+en)es equal to the num&er
of +eo+le that had &een em+loyed a&out it, multi+lied &y the
num&er of days durin* (hi)h they had &een so em+loyed- That +art
of the +ri)e of the )ommodity (hi)h resol'ed itself into (a*es
(ould, throu*h all the different sta*es of the manufa)ture, rise
only in arithmeti)al +ro+ortion to this rise of (a*es- .ut if the
+rofits of all the different em+loyers of those (or0in* +eo+le
should &e raised fi'e +er )ent, that +art of the +ri)e of the
)ommodity (hi)h resol'ed itself into +rofit (ould, throu*h all
the different sta*es of the manufa)ture, rise in *eometri)al
+ro+ortion to this rise of +rofit- The em+loyer of the
fla1dressers (ould in sellin* his fla1 require an additional fi'e
+er )ent u+on the (hole 'alue of the materials and (a*es (hi)h he
ad'an)ed to his (or0men- The em+loyer of the s+inners (ould
require an additional fi'e +er )ent &oth u+on the ad'an)ed +ri)e
of the fla1 and u+on the (a*es of the s+inners- And the em+loyer
of the (ea'ers (ould require a li0e fi'e +er )ent &oth u+on the
ad'an)ed +ri)e of the linen yarn and u+on the (a*es of the
(ea'ers- In raisin* the +ri)e of )ommodities the rise of (a*es
o+erates in the same manner as sim+le interest does in the
a))umulation of de&t- The rise of +rofit o+erates li0e )om+ound
interest- Our mer)hants and master8manufa)turers )om+lain mu)h of
the &ad effe)ts of hi*h (a*es in raisin* the +ri)e, and there&y
lessenin* the sale of their *oods &oth at home and a&road- They
say nothin* )on)ernin* the &ad effe)ts of hi*h +rofits- They are
silent (ith re*ard to the +erni)ious effe)ts of their o(n *ains-
They )om+lain only of those of other +eo+le-
C#AT$R I
Of Wa*es and rofit in the different $m+loyments of !a&our and
Sto)0
T#$ (hole of the ad'anta*es and disad'anta*es of the
different em+loyments of la&our and sto)0 must, in the same
nei*h&ourhood, &e either +erfe)tly equal or )ontinually tendin*
to equality- If in the same nei*h&ourhood, there (as any
em+loyment e'idently either more or less ad'anta*eous than the
rest, so many +eo+le (ould )ro(d into it in the one )ase, and so
many (ould desert it in the other, that its ad'anta*es (ould soon
return to the le'el of other em+loyments- This at least (ould &e
the )ase in a so)iety (here thin*s (ere left to follo( their
natural )ourse, (here there (as +erfe)t li&erty, and (here e'ery
man (as +erfe)tly free &oth to )hoose (hat o))u+ation he thou*ht
+ro+er, and to )han*e it as often as he thou*ht +ro+er- $'ery
man=s interest (ould +rom+t him to see0 the ad'anta*eous, and to
shun the disad'anta*eous em+loyment-
e)uniary (a*es and +rofit, indeed, are e'ery(here in $uro+e
e1tremely different a))ordin* to the different em+loyments of
la&our and sto)0- .ut this differen)e arises +artly from )ertain
)ir)umstan)es in the em+loyments themsel'es, (hi)h, either
really, or at least in the ima*inations of men, ma0e u+ for a
small +e)uniary *ain in some, and )ounter&alan)e a *reat one in
others/ and +artly from the +oli)y of $uro+e, (hi)h no(here
lea'es thin*s at +erfe)t li&erty-
The +arti)ular )onsideration of those )ir)umstan)es and of
that +oli)y (ill di'ide this )ha+ter into t(o +arts-
ART 1 Inequalities arisin*
from the Nature of the $m+loyments themsel'es
T#$ fi'e follo(in* are the +rin)i+al )ir)umstan)es (hi)h, so
far as I ha'e &een a&le to o&ser'e, ma0e u+ for a small +e)uniary
*ain in some em+loyments, and )ounter&alan)e a *reat one in
others3 first, the a*reea&leness or disa*reea&leness of the
em+loyments themsel'es/ se)ondly, the easiness and )hea+ness, or
the diffi)ulty and e1+ense of learnin* them/ thirdly, the
)onstan)y or in)onstan)y of em+loyment in them/ fourthly, the
small or *reat trust (hi)h must &e re+osed in those (ho e1er)ise
them/ and, fifthly, the +ro&a&ility or im+ro&a&ility of su))ess
in them-
"irst, the (a*es of la&our 'ary (ith the ease or hardshi+,
the )leanliness or dirtiness, the honoura&leness or
dishonoura&leness of the em+loyment- Thus in most +la)es, ta0e
the year round, a 2ourneyman tailor earns less than a 2ourneyman
(ea'er- #is (or0 is mu)h easier- A 2ourneyman (ea'er earns less
than a 2ourneyman smith- #is (or0 is not al(ays easier, &ut it is
mu)h )leanlier- A 2ourneyman &la)0smith, thou*h an artifi)er,
seldom earns so mu)h in t(el'e hours as a )ollier, (ho is only a
la&ourer, does in ei*ht- #is (or0 is not quite so dirty, is less
dan*erous, and is )arried on in dayli*ht, and a&o'e *round-
#onour ma0es a *reat +art of the re(ard of all honoura&le
+rofessions- In +oint of +e)uniary *ain, all thin*s )onsidered,
they are *enerally under8re)om+ensed, as I shall endea'our to
sho( &y and &y- Dis*ra)e has the )ontrary effe)t- The trade of a
&ut)her is a &rutal and an odious &usiness/ &ut it is in most
+la)es more +rofita&le than the *reater +art of )ommon trades-
The most detesta&le of all em+loyments, that of +u&li)
e1e)utioner, is, in +ro+ortion to the quantity of (or0 done,
&etter +aid than any )ommon trade (hate'er-
#untin* and fishin*, the most im+ortant em+loyments of
man0ind in the rude state of so)iety, &e)ome in its ad'an)ed
state their most a*reea&le amusements, and they +ursue for
+leasure (hat they on)e follo(ed from ne)essity- In the ad'an)ed
state of so)iety, therefore, they are all 'ery +oor +eo+le (ho
follo( as a trade (hat other +eo+le +ursue as a +astime-
"ishermen ha'e &een so sin)e the time of Theo)ritus- A +oa)her is
e'ery(here a 'ery +oor man in 6reat .ritain- In )ountries (here
the ri*our of the la( suffers no +oa)hers, the li)ensed hunter is
not in a mu)h &etter )ondition- The natural taste for those
em+loyments ma0es more +eo+le follo( them than )an li'e
)omforta&ly &y them, and the +rodu)e of their la&our, in
+ro+ortion to its quantity, )omes al(ays too )hea+ to mar0et to
afford anythin* &ut the most s)anty su&sisten)e to the la&ourers-
Disa*reea&leness and dis*ra)e affe)t the +rofits of sto)0 in
the same manner as the (a*es of la&our- The 0ee+er of an inn or
ta'ern, (ho is ne'er master of his o(n house, and (ho is e1+osed
to the &rutality of e'ery drun0ard, e1er)ises neither a 'ery
a*reea&le nor a 'ery )redita&le &usiness- .ut there is s)ar)e any
)ommon trade in (hi)h a small sto)0 yields so *reat a +rofit-
Se)ondly, the (a*es of la&our 'ary (ith the easiness and
)hea+ness, or the diffi)ulty and e1+ense of learnin* the
&usiness-
When any e1+ensi'e ma)hine is ere)ted, the e1traordinary
(or0 to &e +erformed &y it &efore it is (orn out, it must &e
e1+e)ted, (ill re+la)e the )a+ital laid out u+on it, (ith at
least the ordinary +rofits- A man edu)ated at the e1+ense of mu)h
la&our and time to any of those em+loyments (hi)h require
e1traordinary de1terity and s0ill, may &e )om+ared to one of
those e1+ensi'e ma)hines- The (or0 (hi)h he learns to +erform, it
must &e e1+e)ted, o'er and a&o'e the usual (a*es of )ommon
la&our, (ill re+la)e to him the (hole e1+ense of his edu)ation,
(ith at least the ordinary +rofits of an equally 'alua&le
)a+ital- It must do this, too, in a reasona&le time, re*ard &ein*
had to the 'ery un)ertain duration of human life, in the same
manner as to the more )ertain duration of the ma)hine-
The differen)e &et(een the (a*es of s0illed la&our and those
of )ommon la&our is founded u+on this +rin)i+le-
The +oli)y of $uro+e )onsiders the la&our of all me)hani)s,
artifi)ers, and manufa)turers, as s0illed la&our/ and that of all
)ountry la&ourers as )ommon la&our- It seems to su++ose that of
the former to &e of a more ni)e and deli)ate nature than that of
the latter- It is so +erha+s in some )ases/ &ut in the *reater
+art is it quite other(ise, as I shall endea'our to sho( &y and
&y- The la(s and )ustoms of $uro+e, therefore, in order to
qualify any +erson for e1er)isin* the one s+e)ies of la&our,
im+ose the ne)essity of an a++renti)eshi+, thou*h (ith different
de*rees of ri*our in different +la)es- They lea'e the other free
and o+en to e'ery&ody- Durin* the )ontinuan)e of the
a++renti)eshi+, the (hole la&our of the a++renti)e &elon*s to his
master- In the meantime he must, in many )ases, &e maintained &y
his +arents or relations, and in almost all )ases must &e )lothed
&y them- Some money, too, is )ommonly *i'en to the master for
tea)hin* him his trade- They (ho )annot *i'e money *i'e time, or
&e)ome &ound for more than the usual num&er of years/ a
)onsideration (hi)h, thou*h it is not al(ays ad'anta*eous to the
master, on a))ount of the usual idleness of a++renti)es, is
al(ays disad'anta*eous to the a++renti)e- In )ountry la&our, on
the )ontrary, the la&ourer, (hile he is em+loyed a&out the
easier, learns the more diffi)ult +arts of his &usiness, and his
o(n la&our maintains him throu*h all the different sta*es of his
em+loyment- It is reasona&le, therefore, that in $uro+e the (a*es
of me)hani)s, artifi)ers, and manufa)turers, should &e some(hat
hi*her than those of )ommon la&ourers- They are so a))ordin*ly,
and their su+erior *ains ma0e them in most +la)es &e )onsidered
as a su+erior ran0 of +eo+le- This su+eriority, ho(e'er, is
*enerally 'ery small/ the daily or (ee0ly earnin*s of 2ourneymen
in the more )ommon sorts of manufa)tures, su)h as those of +lain
linen and (oollen )loth, )om+uted at an a'era*e, are, in most
+la)es, 'ery little more than the day (a*es of )ommon la&ourers-
Their em+loyment, indeed, is more steady and uniform, and the
su+eriority of their earnin*s, ta0in* the (hole year to*ether,
may &e some(hat *reater- It seems e'idently, ho(e'er, to &e no
*reater than (hat is suffi)ient to )om+ensate the su+erior
e1+ense of their edu)ation-
$du)ation in the in*enious arts and in the li&eral
+rofessions is still more tedious and e1+ensi'e- The +e)uniary
re)om+ense, therefore, of +ainters and s)ul+tors, of la(yers and
+hysi)ians, ou*ht to &e mu)h more li&eral/ and it is so
a))ordin*ly-
The +rofits of sto)0 seem to &e 'ery little affe)ted &y the
easiness or diffi)ulty of learnin* the trade in (hi)h it is
em+loyed- All the different (ays in (hi)h sto)0 is )ommonly
em+loyed in *reat to(ns seem, in reality, to &e almost equally
easy and equally diffi)ult to learn- One &ran)h either of forei*n
or domesti) trade )annot (ell &e a mu)h more intri)ate &usiness
than another-
Thirdly, the (a*es of la&our in different o))u+ations 'ary
(ith the )onstan)y or in)onstan)y of em+loyment-
$m+loyment is mu)h more )onstant in some trades than in
others- In the *reater +art of manufa)turers, a 2ourneyman may &e
+retty sure of em+loyment almost e'ery day in the year that he is
a&le to (or0- A mason or &ri)0layer, on the )ontrary, )an (or0
neither in hard frost nor in foul (eather, and his em+loyment at
all other times de+ends u+on the o))asional )alls of his
)ustomers- #e is lia&le, in )onsequen)e, to &e frequently (ithout
any- What he earns, therefore, (hile he is em+loyed, must not
only maintain him (hile he is idle, &ut ma0e him some
)om+ensation for those an1ious and des+ondin* moments (hi)h the
thou*ht of so +re)arious a situation must sometimes o))asion-
Where the )om+uted earnin*s of the *reater +art of manufa)turers,
a))ordin*ly, are nearly u+on a le'el (ith the day (a*es of )ommon
la&ourers, those of masons and &ri)0layers are *enerally from one
half more to dou&le those (a*es- Where )ommon la&ourers earn four
and fi'e shillin*s a (ee0, masons and &ri)0layers frequently earn
se'en and ei*ht/ (here the former earn si1, the latter often earn
nine and ten/ and (here the former earn nine and ten, as in
!ondon, the latter )ommonly earn fifteen and ei*hteen- No s+e)ies
of s0illed la&our, ho(e'er, seems more easy to learn than that of
masons and &ri)0layers- Chairmen in !ondon, durin* the summer
season, are said sometimes to &e em+loyed as &ri)0layers- The
hi*h (a*es of those (or0men, therefore, are not so mu)h the
re)om+ense of their s0ill, as the )om+ensation for the
in)onstan)y of their em+loyment-
A house )ar+enter seems to e1er)ise rather a ni)er and more
in*enious trade than a mason- In most +la)es, ho(e'er, for it is
not uni'ersally so, his day8(a*es are some(hat lo(er- #is
em+loyment, thou*h it de+ends mu)h, does not de+end so entirely
u+on the o))asional )alls of his )ustomers/ and it is not lia&le
to &e interru+ted &y the (eather-
When the trades (hi)h *enerally afford )onstant em+loyment
ha++en in a +arti)ular +la)e not to do so, the (a*es of the
(or0men al(ays rise a *ood deal a&o'e their ordinary +ro+ortion
to those of )ommon la&our- In !ondon almost all 2ourneymen
artifi)ers are lia&le to &e )alled u+on and dismissed &y their
masters from day to day, and from (ee0 to (ee0, in the same
manner as day8la&ourers in other +la)es- The lo(est order of
artifi)ers, 2ourneymen tailors, a))ordin*ly, earn there half a
)ro(n a8day, thou*h ei*hteen+en)e may &e re)0oned the (a*es of
)ommon la&our- In small to(ns and )ountry 'illa*es, the (a*es of
2ourneymen tailors frequently s)ar)e equal those of )ommon
la&our/ &ut in !ondon they are often many (ee0s (ithout
em+loyment, +arti)ularly durin* the summer-
When the in)onstan)y of em+loyment is )om&ined (ith the
hardshi+, disa*reea&leness and dirtiness of the (or0, it
sometimes raises the (a*es of the most )ommon la&our a&o'e those
of the most s0ilful artifi)ers- A )ollier (or0in* &y the +ie)e is
su++osed, at Ne()astle, to earn )ommonly a&out dou&le, and in
many +arts of S)otland a&out three times the (a*es of )ommon
la&our- #is hi*h (a*es arise alto*ether from the hardshi+,
disa*reea&leness, and dirtiness of his (or0- #is em+loyment may,
u+on most o))asions, &e as )onstant as he +leases- The
)oal8hea'ers in !ondon e1er)ise a trade (hi)h in hardshi+,
dirtiness, and disa*reea&leness, almost equals that of )olliers/
and from the una'oida&le irre*ularity in the arri'als of
)oal8shi+s, the em+loyment of the *reater +art of them is
ne)essarily 'ery in)onstant- If )olliers, therefore, )ommonly
earn dou&le and tri+le the (a*es of )ommon la&our, it ou*ht not
to seem unreasona&le that )oal8hea'ers should sometimes earn four
and fi'e times those (a*es- In the inquiry made into their
)ondition a fe( years a*o, it (as found that at the rate at (hi)h
they (ere then +aid, they )ould earn from si1 to ten shillin*s a
day- Si1 shillin*s are a&out four times the (a*es of )ommon
la&our in !ondon, and in e'ery +arti)ular trade the lo(est )ommon
earnin*s may al(ays &e )onsidered as those of the far *reater
num&er- #o( e1tra'a*ant soe'er those earnin*s may a++ear, if they
(ere more than suffi)ient to )om+ensate all the disa*reea&le
)ir)umstan)es of the &usiness, there (ould soon &e so *reat a
num&er of )om+etitors as, in a trade (hi)h has no e1)lusi'e
+ri'ile*e, (ould qui)0ly redu)e them to a lo(er rate-
The )onstan)y or in)onstan)y of em+loyment )annot affe)t the
ordinary +rofits of sto)0 in any +arti)ular trade- Whether the
sto)0 is or is not )onstantly em+loyed de+ends- not u+on the
trade, &ut the trader-
"ourthly, the (a*es of la&our 'ary a))ordin*ly to the small
or *reat trust (hi)h must &e re+osed in the (or0men-
The (a*es of *oldsmiths and 2e(ellers are e'ery(here
su+erior to those of many other (or0men, not only of equal, &ut
of mu)h su+erior in*enuity, on a))ount of the +re)ious materials
(ith (hi)h they are intrusted-
We trust our health to the +hysi)ian3 our fortune and
sometimes our life and re+utation to the la(yer and attorney-
Su)h )onfiden)e )ould not safely &e re+osed in +eo+le of a 'ery
mean or lo( )ondition- Their re(ard must &e su)h, therefore, as
may *i'e them that ran0 in the so)iety (hi)h so im+ortant a trust
requires- The lon* time and the *reat e1+ense (hi)h must &e laid
out in their edu)ation, (hen )om&ined (ith this )ir)umstan)e,
ne)essarily enhan)e still further the +ri)e of their la&our-
When a +erson em+loys only his o(n sto)0 in trade, there is
no trust/ and the )redit (hi)h he may *et from other +eo+le
de+ends, not u+on the nature of his trade, &ut u+on their o+inion
of his fortune, +ro&ity, and +ruden)e- The different rates of
+rofit, therefore, in the different &ran)hes of trade, )annot
arise from the different de*rees of trust re+osed in the traders-
"ifthly, the (a*es of la&our in different- em+loyments 'ary
a))ordin* to the +ro&a&ility or im+ro&a&ility of su))ess in them-
The +ro&a&ility that any +arti)ular +erson shall e'er &e
qualified for the em+loyment to (hi)h he is edu)ated is 'ery
different in different o))u+ations- In the *reater +art of
me)hani) trades, su))ess is almost )ertain/ &ut 'ery un)ertain in
the li&eral +rofessions- ut your son a++renti)e to a shoema0er,
there is little dou&t of his learnin* to ma0e a +air of shoes/
&ut send him to study the la(, it is at least t(enty to one if
e'er he ma0es su)h +rofi)ien)y as (ill ena&le him to li'e &y the
&usiness- In a +erfe)tly fair lottery, those (ho dra( the +ri;es
ou*ht to *ain all that is lost &y those (ho dra( the &lan0s- In a
+rofession (here t(enty fail for one that su))eeds, that one
ou*ht to *ain all that should ha'e &een *ained &y the
unsu))essful t(enty- The )ounsellor8at8la( (ho, +erha+s, at near
forty years of a*e, &e*ins to ma0e somethin* &y his +rofession,
ou*ht to re)ei'e the retri&ution, not only of his o(n so tedious
and e1+ensi'e edu)ation, &ut that of more than t(enty others (ho
are ne'er li0ely to ma0e anythin* &y it- #o( e1tra'a*ant soe'er
the fees of )ounsellors8at8la( may sometimes a++ear, their real
retri&ution is ne'er equal to this- Com+ute in any +arti)ular
+la)e (hat is li0ely to &e annually *ained, and (hat is li0ely to
&e annually s+ent, &y all the different (or0men in any )ommon
trade, su)h as that of shoema0ers or (ea'ers, and you (ill find
that the former sum (ill *enerally e1)eed the latter- .ut ma0e
the same )om+utation (ith re*ard to all the )ounsellors and
students of la(, in all the different inns of )ourt, and you (ill
find that their annual *ains &ear &ut a 'ery small +ro+ortion to
their annual e1+ense, e'en thou*h you rate the former as hi*h,
and the latter as lo(, as )an (ell &e done- The lottery of the
la(, therefore, is 'ery far from &ein* a +erfe)tly fair lottery/
and that, as (ell as many other li&eral and honoura&le
+rofessions, are, in +oint of +e)uniary *ain, e'idently
under8re)om+ensed-
Those +rofessions 0ee+ their le'el, ho(e'er, (ith other
o))u+ations, and, not(ithstandin* these dis)oura*ements, all the
most *enerous and li&eral s+irits are ea*er to )ro(d into them-
T(o different )auses )ontri&ute to re)ommend them- "irst, the
desire of the re+utation (hi)h attends u+on su+erior e1)ellen)e
in any of them/ and, se)ondly, the natural )onfiden)e (hi)h e'ery
man has more or less, not only in his o(n a&ilities, &ut in his
o(n *ood fortune-
To e1)el in any +rofession, in (hi)h &ut fe( arri'e at
medio)rity, is the most de)isi'e mar0 of (hat is )alled *enius or
su+erior talents- The +u&li) admiration (hi)h attends u+on su)h
distin*uished a&ilities ma0es al(ays a +art of their re(ard/ a
*reater or smaller in +ro+ortion as it is hi*her or lo(er in
de*ree- It ma0es a )onsidera&le +art of that re(ard in the
+rofession of +hysi)/ a still *reater +erha+s in that of la(/ in
+oetry and +hiloso+hy it ma0es almost the (hole-
There are some 'ery a*reea&le and &eautiful talents of (hi)h
the +ossession )ommands a )ertain sort of admiration/ &ut of
(hi)h the e1er)ise for the sa0e of *ain is )onsidered, (hether
from reason or +re2udi)e, as a sort of +u&li) +rostitution- The
+e)uniary re)om+ense, therefore, of those (ho e1er)ise them in
this manner must &e suffi)ient, not only to +ay for the time,
la&our, and e1+ense of a)quirin* the talents, &ut for the
dis)redit (hi)h attends the em+loyment of them as the means of
su&sisten)e- The e1or&itant re(ards of +layers, o+era8sin*ers,
o+era8dan)ers, et)-, are founded u+on those t(o +rin)i+les/ the
rarity and &eauty of the talents, and the dis)redit of em+loyin*
them in this manner- It seems a&surd at first si*ht that (e
should des+ise their +ersons and yet re(ard their talents (ith
the most +rofuse li&erality- While (e do the one, ho(e'er, (e
must of ne)essity do the other- Should the +u&li) o+inion or
+re2udi)e e'er alter (ith re*ard to su)h o))u+ations, their
+e)uniary re)om+ense (ould qui)0ly diminish- 4ore +eo+le (ould
a++ly to them, and the )om+etition (ould qui)0ly redu)e the +ri)e
of their la&our- Su)h talents, thou*h far from &ein* )ommon, are
&y no means so rare as is ima*ined- 4any +eo+le +ossess them in
*reat +erfe)tion, (ho disdain to ma0e this use of them/ and many
more are )a+a&le of a)quirin* them, if anythin* )ould &e made
honoura&ly &y them-
The o'er(eenin* )on)eit (hi)h the *reater +art of men ha'e
of their o(n a&ilities is an an)ient e'il remar0ed &y the
+hiloso+hers and moralists of all a*es- Their a&surd +resum+tion
in their o(n *ood fortune has &een less ta0en noti)e of- It is,
ho(e'er, if +ossi&le, still more uni'ersal- There is no man
li'in* (ho, (hen in tolera&le health and s+irits, has not some
share of it- The )han)e of *ain is &y e'ery man more or less
o'er'alued, and the )han)e of loss is &y most men under'alued,
and &y s)ar)e any man, (ho is in tolera&le health and s+irits,
'alued more than it is (orth-
That the )han)e of *ain is naturally o'er'alued, (e may
learn from the uni'ersal su))ess of lotteries- The (orld neither
e'er sa(, nor e'er (ill see, a +erfe)tly fair lottery/ or one in
(hi)h the (hole *ain )om+ensated the (hole loss/ &e)ause the
underta0er )ould ma0e nothin* &y it- In the state lotteries the
ti)0ets are really not (orth the +ri)e (hi)h is +aid &y the
ori*inal su&s)ri&ers, and yet )ommonly sell in the mar0et for
t(enty, thirty, and sometimes forty +er )ent ad'an)e- The 'ain
ho+e of *ainin* some of the *reat +ri;es is the sole )ause of
this demand- The so&erest +eo+le s)ar)e loo0 u+on it as a folly
to +ay a small sum for the )han)e of *ainin* ten or t(enty
thousand +ounds/ thou*h they 0no( that e'en that small sum is
+erha+s t(enty or thirty +er )ent more than the )han)e is (orth-
In a lottery in (hi)h no +ri;e e1)eeded t(enty +ounds, thou*h in
other res+e)ts it a++roa)hed mu)h nearer to a +erfe)tly fair one
than the )ommon state lotteries, there (ould not &e the same
demand for ti)0ets- In order to ha'e a &etter )han)e for some of
the *reat +ri;es, some +eo+le +ur)hase se'eral ti)0ets, and
others, small share in a still *reater num&er- There is not,
ho(e'er, a more )ertain +ro+osition in mathemati)s than that the
more ti)0ets you ad'enture u+on, the more li0ely you are to &e a
loser- Ad'enture u+on all the ti)0ets in the lottery, and you
lose for )ertain/ and the *reater the num&er of your ti)0ets the
nearer you a++roa)h to this )ertainty-
That the )han)e of loss is frequently under'alued, and
s)ar)e e'er 'alued more than it is (orth, (e may learn from a
'ery moderate +rofit of insurers- In order to ma0e insuran)e,
either from fire or sea8ris0, a trade at all, the )ommon +remium
must &e suffi)ient to )om+ensate the )ommon losses, to +ay the
e1+ense of mana*ement, and to afford su)h a +rofit as mi*ht ha'e
&een dra(n from an equal )a+ital em+loyed in any )ommon trade-
The +erson (ho +ays no more than this e'idently +ays no more than
the real 'alue of the ris0, or the lo(est +ri)e at (hi)h he )an
reasona&ly e1+e)t to insure it- .ut thou*h many +eo+le ha'e made
a little money &y insuran)e, 'ery fe( ha'e made a *reat fortune/
and from this )onsideration alone, it seems e'ident enou*h that
the ordinary &alan)e of +rofit and loss is not more ad'anta*eous
in this than in other )ommon trades &y (hi)h so many +eo+le ma0e
fortunes- 4oderate, ho(e'er, as the +remium of insuran)e )ommonly
is, many +eo+le des+ise the ris0 too mu)h to )are to +ay it-
Ta0in* the (hole 0in*dom at an a'era*e, nineteen houses in
t(enty, or rather +erha+s ninety8nine in a hundred, are not
insured from fire- Sea ris0 is more alarmin* to the *reater +art
of +eo+le, and the +ro+ortion of shi+s insured to those not
insured is mu)h *reater- 4any fail, ho(e'er, at all seasons, and
e'en in time of (ar, (ithout any insuran)e- This may sometimes
+erha+s &e done (ithout any im+ruden)e- When a *reat )om+any, or
e'en a *reat mer)hant, has t(enty or thirty shi+s at sea, they
may, as it (ere, insure one another- The +remium sa'ed u+on them
all may more than )om+ensate su)h losses as they are li0ely to
meet (ith in the )ommon )ourse of )han)es- The ne*le)t of
insuran)e u+on shi++in*, ho(e'er, in the same manner as u+on
houses, is, in most )ases, the effe)t of no su)h ni)e
)al)ulation, &ut of mere thou*htless rashness and +resum+tuous
)ontem+t of the ris0-
The )ontem+t of ris0 and the +resum+tuous ho+e of su))ess
are in no +eriod of life more a)ti'e than at the a*e at (hi)h
youn* +eo+le )hoose their +rofessions- #o( little the fear of
misfortune is then )a+a&le of &alan)in* the ho+e of *ood lu)0
a++ears still more e'idently in the readiness of the )ommon
eo+le to enlist as soldiers, or to *o to sea, than in the
ea*erness of those of &etter fashion to enter into (hat are
)alled the li&eral +rofessions-
What a )ommon soldier may lose is o&'ious enou*h- Without
re*ardin* the dan*er, ho(e'er, youn* 'olunteers ne'er enlist so
readily as at the &e*innin* of a ne( (ar/ and thou*h they ha'e
s)ar)e any )han)e of +referment, they fi*ure to themsel'es, in
their youthful fan)ies, a thousand o))asions of a)quirin* honour
and distin)tion (hi)h ne'er o))ur- These romanti) ho+es ma0e the
(hole +ri)e of their &lood- Their +ay is less than that of )ommon
la&ourers, and in a)tual ser'i)e their fati*ues are mu)h *reater-
The lottery of the sea is not alto*ether so disad'anta*eous
as that of the army- The son of a )redita&le la&ourer or
artifi)er may frequently *o to sea (ith his father=s )onsent/ &ut
if he enlists as a soldier, it is al(ays (ithout it- Other +eo+le
see some )han)e of his ma0in* somethin* &y the one trade3 no&ody
&ut himself sees any of his ma0in* anythin* &y the other- The
*reat admiral is less the o&2e)t of +u&li) admiration than the
*reat *eneral, and the hi*hest su))ess in the sea ser'i)e
+romises a less &rilliant fortune and re+utation than equal
su))ess in the land- The same differen)e runs throu*h all the
inferior de*rees of +referment in &oth- .y the rules of
+re)eden)y a )a+tain in the na'y ran0s (ith a )olonel in the
army/ &ut he does not ran0 (ith him in the )ommon estimation- As
the *reat +ri;es in the lottery are less, the smaller ones must
&e more numerous- Common sailors, therefore, more frequently *et
some fortune and +referment than )ommon soldiers/ and the ho+e of
those +ri;es is (hat +rin)i+ally re)ommends the trade- Thou*h
their s0ill and de1terity are mu)h su+erior to that of almost any
artifi)ers, and thou*h their (hole life is one )ontinual s)ene of
hardshi+ and dan*er, yet for all this de1terity and s0ill, for
all those hardshi+s and dan*ers, (hile they remain in the
)ondition of )ommon sailors, they re)ei'e s)ar)e any other
re)om+ense &ut the +leasure of e1er)isin* the one and of
surmountin* the other- Their (a*es are not *reater than those of
)ommon la&ourers at the +ort (hi)h re*ulates the rate of seamen=s
(a*es- As they are )ontinually *oin* from +ort to +ort, the
monthly +ay of those (ho sail from all the different +orts of
6reat .ritain is more nearly u+on a le'el than that of any other
(or0men in those different +la)es/ and the rate of the +ort to
and from (hi)h the *reatest num&er sail, that is the +ort of
!ondon, re*ulates that of all the rest- At !ondon the (a*es of
the *reater +art of the different )lasses of (or0men are a&out
dou&le those of the same )lasses at $din&ur*h- .ut the sailors
(ho sail from the +ort of !ondon seldom earn a&o'e three or four
shillin*s a month more than those (ho sail from the +ort of
!eith, and the differen)e is frequently not so *reat- In time of
+ea)e, and in the mer)hant ser'i)e, the !ondon +ri)e is from a
*uinea to a&out se'en8and8t(enty shillin*s the )alendar month- A
)ommon la&ourer in !ondon, at the rate of nine or ten shillin*s a
(ee0, may earn in the )alendar month from forty to fi'e8and8forty
shillin*s- The sailor, indeed, o'er and a&o'e his +ay, is
su++lied (ith +ro'isions- Their 'alue, ho(e'er, may not +erha+s
al(ays e1)eed the differen)e &et(een his +ay and that of the
)ommon la&ourer/ and thou*h it sometimes should, the e1)ess (ill
not &e )lear *ain to the sailor, &e)ause he )annot share it (ith
his (ife and family, (hom he must maintain out of his (a*es at
home-
The dan*ers and hair&readth es)a+es of a life of ad'entures,
instead of disheartenin* youn* +eo+le, seem frequently to
re)ommend a trade to them- A tender mother, amon* the inferior
ran0s of +eo+le, is of afraid to send her son to s)hool at a
sea+ort to(n, lest the si*ht of the shi+s and the )on'ersation
and ad'entures of the sailors should enti)e him to *o to sea- The
distant +ros+e)t of ha;ards, from (hi)h (e )an ho+e to e1tri)ate
oursel'es &y )oura*e and address, is not disa*reea&le to us, and
does not raise the (a*es of la&our in any em+loyment- It is
other(ise (ith those in (hi)h )oura*e and address )an &e of no
a'ail- In trades (hi)h are 0no(n to &e 'ery un(holesome, the
(a*es of la&our are al(ays remar0a&ly hi*h- Un(holesomeness is a
s+e)ies of disa*reea&leness, and its effe)ts u+on the (a*es of
la&our are to &e ran0ed under that *eneral head-
In all the different em+loyments of sto)0, the ordinary rate
of +rofit 'aries more or less (ith the )ertainty or un)ertainty
of the returns- These are in *eneral less un)ertain in the inland
than in the forei*n trade, and in some &ran)hes of forei*n trade
than in others/ in the trade to North Ameri)a, for e1am+le, than
in that to Aamai)a- The ordinary rate of +rofit al(ays rises more
or less (ith the ris0- It does not, ho(e'er, seem to rise in
+ro+ortion to it, or so as to )om+ensate it )om+letely-
.an0ru+t)ies are most frequent in the most ha;ardous trades- The
most ha;ardous of all trades, that of a smu**ler, thou*h (hen the
ad'enture su))eeds it is li0e(ise the most +rofita&le, is the
infalli&le road to &an0ru+t)y- The +resum+tuous ho+e of su))ess
seems to a)t here as u+on all other o))asions, and to enti)e so
many ad'enturers into those ha;ardous trades, that their
)om+etition redu)es their +rofit &elo( (hat is suffi)ient to
)om+ensate the ris0- To )om+ensate it )om+letely, the )ommon
returns ou*ht, o'er and a&o'e the ordinary +rofits of sto)0, not
only to ma0e u+ for all o))asional losses, &ut to afford a
sur+lus +rofit to the ad'enturers of the same nature (ith the
+rofit of insurers- .ut if the )ommon returns (ere suffi)ient for
all this, &an0ru+t)ies (ould not &e more frequent in these than
in other trades-
Of the fi'e )ir)umstan)es, therefore, (hi)h 'ary the (a*es
of la&our, t(o only affe)t the +rofits of sto)0/ the
a*reea&leness or disa*reea&leness of the &usiness, and the ris0
or se)urity (ith (hi)h it is attended- In +oint of a*reea&leness,
there is little or no differen)e in the far *reater +art of the
different em+loyments of sto)0/ &ut a *reat deal in those of
la&our/ and the ordinary +rofit of sto)0, thou*h it rises (ith
the ris0, does not al(ays seem to rise in +ro+ortion to it- It
should follo( from all this, that, in the same so)iety or
nei*h&ourhood, the a'era*e and ordinary rates of +rofit in the
different em+loyments of sto)0 should &e more nearly u+on a le'el
than the +e)uniary (a*es of the different sorts of la&our- They
are so a))ordin*ly- The differen)e &et(een the earnin*s of a
)ommon la&ourer and those of a (ell em+loyed la(yer or +hysi)ian,
is e'idently mu)h *reater than that &et(een the ordinary +rofits
in any t(o different &ran)hes of trade- The a++arent differen)e,
&esides, in the +rofits of different trades, is *enerally a
de)e+tion arisin* from our not al(ays distin*uishin* (hat ou*ht
to &e )onsidered as (a*es, from (hat ou*ht to &e )onsidered as
+rofit-
A+othe)aries= +rofit is &e)ome a &ye8(ord, denotin*
somethin* un)ommonly e1tra'a*ant- This *reat a++arent +rofit,
ho(e'er, is frequently no more than the reasona&le (a*es of
la&our- The s0ill of an a+othe)ary is a mu)h ni)er and more
deli)ate matter than that of any artifi)er (hate'er/ and the
trust (hi)h is re+osed in him is of mu)h *reater im+ortan)e- #e
is the +hysi)ian of the +oor in all )ases, and of the ri)h (hen
the distress or dan*er is not 'ery *reat- #is re(ard, therefore,
ou*ht to &e suita&le to his s0ill and his trust, and it arises
*enerally from the +ri)e at (hi)h he sells his dru*s- .ut the
(hole dru*s (hi)h the &est em+loyed a+othe)ary, in a lar*e mar0et
to(n, (ill sell in a year, may not +erha+s )ost him a&o'e thirty
or forty +ounds- Thou*h he should sell them, therefore, for three
or four hundred, or at a thousand +er )ent +rofit, this may
frequently &e no more than the reasona&le (a*es of his la&our
)har*ed, in the only (ay in (hi)h he )an )har*e them, u+on the
+ri)e of his dru*s- The *reater +art of the a++arent +rofit is
real (a*es dis*uised in the *ar& of +rofit-
In a small sea+ort to(n, a little *ro)er (ill ma0e forty or
fifty +er )ent u+on a sto)0 of a sin*le hundred +ounds, (hile a
)onsidera&le (holesale mer)hant in the same +la)e (ill s)ar)e
ma0e ei*ht or ten +er )ent u+on a sto)0 of ten thousand- The
trade of the *ro)er may &e ne)essary for the )on'enien)y of the
inha&itants, and the narro(ness of the mar0et may not admit the
em+loyment of a lar*er )a+ital in the &usiness- The man, ho(e'er,
must not only li'e &y his trade, &ut li'e &y it suita&ly to the
qualifi)ations (hi)h it requires- .esides +ossessin* a little
)a+ital, he must &e a&le to read, (rite, and a))ount, and must &e
a tolera&le 2ud*e too of, +erha+s, fifty or si1ty different sorts
of *oods, their +ri)es, qualities, and the mar0ets (here they are
to &e had )hea+est- #e must ha'e all the 0no(led*e, in short,
that is ne)essary for a *reat mer)hant, (hi)h nothin* hinders him
from &e)omin* &ut the (ant of a suffi)ient )a+ital- Thirty or
forty +ounds a year )annot &e )onsidered as too *reat a
re)om+ense for the la&our of a +erson so A))om+lished- Dedu)t
this from the seemin*ly *reat +rofits of his )a+ital, and little
more (ill remain, +erha+s, than the ordinary +rofits of sto)0-
The *reater +art of the a++arent +rofit is, in this )ase too,
real (a*es-
The differen)e &et(een the a++arent +rofit of the retail and
that of the (holesale trade, is mu)h less in the )a+ital than in
small to(ns and )ountry 'illa*es- Where ten thousand +ounds )an
&e em+loyed in the *ro)ery trade, the (a*es of the *ro)er=s
la&our ma0e &ut a 'ery triflin* addition to the real +rofits of
so *reat a sto)0- The a++arent +rofits of the (ealthy retailer,
therefore, are there more nearly u+on a le'el (ith those of the
(holesale mer)hant- It is u+on this a))ount that *oods sold &y
retail are *enerally as )hea+ and frequently mu)h )hea+er in the
)a+ital than in small to(ns and )ountry 'illa*es- 6ro)ery *oods,
for e1am+le, are *enerally mu)h )hea+er/ &read and &ut)her=s meat
frequently as )hea+- It )osts no more to &rin* *ro)ery *oods to
the *reat to(n than to the )ountry 'illa*e/ &ut it )osts a *reat
deal more to &rin* )orn and )attle, as the *reater +art of them
must &e &rou*ht from a mu)h *reater distan)e- The +rime )ost of
*ro)ery *oods, therefore, &ein* the same in &oth +la)es, they are
)hea+est (here the least +rofit is )har*ed u+on them- The +rime
)ost of &read and &ut)her=s meat is *reater in the *reat to(n
than in the )ountry 'illa*e/ and thou*h the +rofit is less,
therefore, they are not al(ays )hea+er there, &ut often equally
)hea+- In su)h arti)les as &read and &ut)her=s meat, the same
)ause, (hi)h diminishes a++arent +rofit, in)reases +rime )ost-
The e1tent of the mar0et, &y *i'in* em+loyment to *reater sto)0s,
diminishes a++arent +rofit/ &ut &y requirin* su++lies from a
*reater distan)e, it in)reases +rime )ost- This diminution of the
one and in)rease of the other seem, in most )ases, nearly to
)ounter&alan)e one another, (hi)h is +ro&a&ly the reason that,
thou*h the +ri)es of )orn and )attle are )ommonly 'ery different
in different +arts of the 0in*dom, those of &read and &ut)her=s
meat are *enerally 'ery nearly the same throu*h the *reater +art
of it-
Thou*h the +rofits of sto)0 &oth in the (holesale and retail
trade are *enerally less in the )a+ital than in small to(ns and
)ountry 'illa*es, yet *reat fortunes are frequently a)quired from
small &e*innin*s in the former, and s)ar)e e'er in the latter- In
small to(ns and )ountry 'illa*es, on a))ount of the narro(ness of
the mar0et, trade )annot al(ays &e e1tended as sto)0 e1tends- In
su)h +la)es, therefore, thou*h the rate of a +arti)ular +erson=s
+rofits may &e 'ery hi*h, the sum or amount of them )an ne'er &e
'ery *reat, nor )onsequently that of his annual a))umulation- In
*reat to(ns, on the )ontrary, trade )an &e e1tended as sto)0
in)reases, and the )redit of a fru*al and thri'in* man in)reases
mu)h faster than his sto)0- #is trade is e1tended in +ro+ortion
to the amount of &oth, and the sum or amount of his +rofits is in
+ro+ortion to the e1tent of his trade, and his annual
a))umulation in +ro+ortion to the amount of his +rofits- It
seldom ha++ens, ho(e'er, that *reat fortunes are made e'en in
*reat to(ns &y any one re*ular, esta&lished, and (ell80no(n
&ran)h of &usiness, &ut in )onsequen)e of a lon* life of
industry, fru*ality, and attention- Sudden fortunes, indeed, are
sometimes made in su)h +la)es &y (hat is )alled the trade of
s+e)ulation- The s+e)ulati'e mer)hant e1er)ises no one re*ular,
esta&lished, or (ell80no(n &ran)h of &usiness- #e is a )orn
mer)hant this year, and a (ine mer)hant the ne1t, and a su*ar,
to&a))o, or tea mer)hant the year after- #e enters into e'ery
trade (hen he foresees that it is li0ely to &e more than )ommonly
+rofita&le, and he quits it (hen he foresees that its +rofits are
li0ely to return to the le'el of other trades- #is +rofits and
losses, therefore, )an &ear no re*ular +ro+ortion to those of any
one esta&lished and (ell80no(n &ran)h of &usiness- A &old
ad'enturer may sometimes a)quire a )onsidera&le fortune &y t(o or
three su))essful s+e)ulations/ &ut is 2ust as li0ely to lose one
&y t(o or three unsu))essful ones- This trade )an &e )arried on
no(here &ut in *reat to(ns- It is only in +la)es of the most
e1tensi'e )ommer)e and )orres+onden)e that the intelli*en)e
requisite for it )an &e had-
The fi'e )ir)umstan)es a&o'e mentioned, thou*h they o))asion
)onsidera&le inequalities in the (a*es of la&our and +rofits of
sto)0, o))asion none in the (hole of the ad'anta*es and
disad'anta*es, real or ima*inary, of the different em+loyments of
either- The nature of those )ir)umstan)es is su)h that they ma0e
u+ for a small +e)uniary *ain in some, and )ounter&alan)e a *reat
one in others-
In order, ho(e'er, that this equality may ta0e +la)e in the
(hole of their ad'anta*es or disad'anta*es, three thin*s are
requisite e'en (here there is the most +erfe)t freedom- "irst,
the em+loyments must &e (ell 0no(n and lon* esta&lished in the
nei*h&ourhood/ se)ondly, they must &e in their ordinary, or (hat
may &e )alled their natural state/ and, thirdly, they must &e the
sole or +rin)i+al em+loyments of those (ho o))u+y them-
"irst, this equality )an ta0e +la)e only in those
em+loyments (hi)h are (ell 0no(n, and ha'e &een lon* esta&lished
in the nei*h&ourhood-
Where all other )ir)umstan)es are equal, (a*es are *enerally
hi*her in ne( than in old trades- When a +ro2e)tor attem+ts to
esta&lish a ne( manufa)ture, he must at first enti)e his (or0men
from other em+loyments &y hi*her (a*es than they )an either earn
in their o(n trades, or than the nature of his (or0 (ould
other(ise require, and a )onsidera&le time must +ass a(ay &efore
he )an 'enture to redu)e them to the )ommon le'el- 4anufa)tures
for (hi)h the demand arises alto*ether from fashion and fan)y are
)ontinually )han*in*, and seldom last lon* enou*h to &e
)onsidered as old esta&lished manufa)tures- Those, on the
)ontrary, for (hi)h the demand arises )hiefly from use or
ne)essity, are less lia&le to )han*e, and the same form or fa&ri)
may )ontinue in demand for (hole )enturies to*ether- The (a*es of
la&our, therefore, are li0ely to &e hi*her in manufa)tures of the
former than in those of the latter 0ind- .irmin*ham deals )hiefly
in manufa)tures of the former 0ind/ Sheffield in those of the
latter/ and the (a*es of la&our in those t(o different +la)es are
said to &e suita&le to this differen)e in the nature of their
manufa)tures-
The esta&lishment of any ne( manufa)ture, of any ne( &ran)h
of )ommer)e, or of any ne( +ra)ti)e in a*ri)ulture, is al(ays a
s+e)ulation, from (hi)h the +ro2e)tor +romises himself
e1traordinary +rofits- These +rofits sometimes are 'ery *reat,
and sometimes, more frequently, +erha+s, they are quite
other(ise/ &ut in *eneral they &ear no re*ular +ro+ortion to
those of other old trades in the nei*h&ourhood- If the +ro2e)t
su))eeds, they are )ommonly at first 'ery hi*h- When the trade or
+ra)ti)e &e)omes thorou*hly esta&lished and (ell 0no(n, the
)om+etition redu)es them to the le'el of other trades-
Se)ondly, this equality in the (hole of the ad'anta*es and
disad'anta*es of the different em+loyments of la&our and sto)0,
)an ta0e +la)e only in the ordinary, or (hat may &e )alled the
natural state of those em+loyments-
The demand for almost e'ery different s+e)ies of la&our is
sometimes *reater and sometimes less than usual- In the one )ase
the ad'anta*es of the em+loyment rise a&o'e, in the other they
fall &elo( the )ommon le'el- The demand for )ountry la&our is
*reater at hay8time and har'est than durin* the *reater +art of
the year/ and (a*es rise (ith the demand- In time of (ar, (hen
forty or fifty thousand sailors are for)ed from the mer)hant
ser'i)e into that of the 0in*, the demand for sailors to mer)hant
shi+s ne)essarily rises (ith their s)ar)ity, and their (a*es u+on
su)h o))asions )ommonly rise from a *uinea and se'en8and8t(enty
shillin*s, to forty shillin*s and three +ounds a month- In a
de)ayin* manufa)ture, on the )ontrary, many (or0men, rather than
quit their old trade, are )ontented (ith smaller (a*es than (ould
other(ise &e suita&le to the nature of their em+loyment-
The +rofits of sto)0 'ary (ith the +ri)e of the )ommodities
in (hi)h it is em+loyed- As the +ri)e of any )ommodity rises
a&o'e the ordinary or a'era*e rate, the +rofits of at least some
+art of the sto)0 that is em+loyed in &rin*in* it to mar0et, rise
a&o'e their +ro+er le'el, and as it falls they sin0 &elo( it- All
)ommodities are more or less lia&le to 'ariations of +ri)e, &ut
some are mu)h more so than others- In all )ommodities (hi)h are
+rodu)ed &y human industry, the quantity of industry annually
em+loyed is ne)essarily re*ulated &y the annual demand, in su)h a
manner that the a'era*e annual +rodu)e may, as nearly as
+ossi&le, &e equal to the a'era*e annual )onsum+tion- In some
em+loyments, it has already &een o&ser'ed, the same quantity of
industry (ill al(ays +rodu)e the same, or 'ery nearly the same
quantity of )ommodities- In the linen or (oollen manufa)tures,
for e1am+le, the same num&er of hands (ill annually (or0 u+ 'ery
nearly the same quantity of linen and (oollen )loth- The
'ariations in the mar0et +ri)e of su)h )ommodities, therefore,
)an arise only from some a))idental 'ariation in the demand- A
+u&li) mournin* raises the +ri)e of &la)0 )loth- .ut as the
demand for most sorts of +lain linen and (oollen )loth is +retty
uniform, so is li0e(ise the +ri)e- .ut there are other
em+loyments in (hi)h the same quantity of industry (ill not
al(ays +rodu)e the same quantity of )ommodities- The same
quantity of industry, for e1am+le, (ill, in different years,
+rodu)e 'ery different quantities of )orn, (ine, ho+s, su*ar,
to&a))o, et)- The +ri)e of su)h )ommodities, therefore, 'aries
not only (ith the 'ariations of demand, &ut (ith the mu)h *reater
and more frequent 'ariations of quantity, and is )onsequently
e1tremely flu)tuatin*- .ut the +rofit of some of the dealers must
ne)essarily flu)tuate (ith the +ri)e of the )ommodities- The
o+erations of the s+e)ulati'e mer)hant are +rin)i+ally em+loyed
a&out su)h )ommodities- #e endea'ours to &uy them u+ (hen he
foresees that their +ri)e is li0ely to rise, and to sell them
(hen it is li0ely to fall-
Thirdly, this equality in the (hole of the ad'anta*es and
disad'anta*es of the different em+loyments of la&our and sto)0
)an ta0e only in su)h as are the sole or +rin)i+al em+loyments of
those (ho o))u+y them-
When a +erson deri'es his su&sisten)e from one em+loyment,
(hi)h does not o))u+y the *reater +art of his time, in the
inter'als of his leisure he is often (illin* to (or0 as another
for less (a*es than (ould other(ise suit the nature of the
em+loyment-
There still su&sists in many +arts of S)otland a set of
+eo+le )alled Cotters or Cotta*ers, thou*h they (ere more
frequent some years a*o than they are no(- They are a sort of
outser'ants of the landlords and farmers- The usual re(ard (hi)h
they re)ei'e from their masters is a house, a small *arden for
+ot8her&s, as mu)h *rass as (ill feed a )o(, and, +erha+s, an
a)re or t(o of &ad ara&le land- When their master has o))asion
for their la&our, he *i'es them, &esides, t(o +e)0s of oatmeal a
(ee0, (orth a&out si1teen+en)e sterlin*- Durin* a *reat +art of
the year he has little or no o))asion for their la&our, and the
)ulti'ation of their o(n little +ossession is not suffi)ient to
o))u+y the time (hi)h is left at their o(n dis+osal- When su)h
o))u+iers (ere more numerous than they are at +resent, they are
said to ha'e &een (illin* to *i'e their s+are time for a 'ery
small re)om+ense to any&ody, and to ha'e (rou*ht for less (a*es
than other la&ourers- In an)ient times they seem to ha'e &een
)ommon all o'er $uro+e- In )ountries ill )ulti'ated and (orse
inha&ited, the *reater +art of landlords and farmers )ould not
other(ise +ro'ide themsel'es (ith the e1traordinary num&er of
hands (hi)h )ountry la&our requires at )ertain season- The daily
or (ee0ly re)om+ense (hi)h su)h la&ourers o))asionally re)ei'ed
from their masters (as e'idently not the (hole +ri)e of their
la&our- Their small tenement made a )onsidera&le +art of it- This
daily or (ee0ly re)om+ense, ho(e'er, seems to ha'e &een
)onsidered as the (hole of it, &y many (riters (ho ha'e )olle)ted
the +ri)es of la&our and +ro'isions in an)ient times, and (ho
ha'e ta0en +leasures in re+resentin* &oth as (onderfully lo(-
The +rodu)e of su)h la&our )omes frequently )hea+er to
mar0et than (ould other(ise suita&le to its nature- Sto)0in*s in
many +arts of S)otland are 0nit mu)h )hea+er than they )an
any(here &e (rou*ht u+on the loom- They are the (or0 of ser'ants
and la&ourers, (ho deri'e the +rin)i+al +art of their su&sisten)e
from some other em+loyment- 4ore than a thousand +air of Shetland
sto)0in*s are annually im+orted into !eith, of (hi)h the +ri)e is
from fi'e+en)e to se'en+en)e a +air- At !er(i)0, the small
)a+ital of the Shetland Islands, ten+en)e a day, I ha'e &een
assured, is a )ommon +ri)e of )ommon la&our- In the same islands
they 0nit (orsted sto)0in*s to the 'alue of a *uinea a +air and
u+(ards-
The s+innin* of linen yarn is )arried on in S)otland nearly
in the same (ay as the 0nittin* of sto)0in*s &y ser'ants, (ho are
)hiefly hired for other +ur+oses- They earn &ut a 'ery s)anty
su&sisten)e, (ho endea'our to *et their (hole li'elihood &y
either of those trades- In most +arts of S)otland she is a *ood
s+inner (ho )an earn t(enty+en)e a (ee0-
In o+ulent )ountries the mar0et is *enerally so e1tensi'e
that any one trade is suffi)ient to em+loy the (hole la&our and
sto)0 of those (ho o))u+y it- Instan)es of +eo+le=s li'in* &y one
em+loyment, and at the same time deri'in* some little ad'anta*e
from another, o))ur )hiefly in +oor )ountries- The follo(in*
instan)e, ho(e'er, of somethin* of the same 0ind is to &e found
in the )a+ital of a 'ery ri)h one- There is no )ity in $uro+e, I
&elie'e, in (hi)h house8rent is dearer than in !ondon, and yet I
0no( no )a+ital in (hi)h a furnished a+artment )an &e hired as
)hea+- !od*in* is not only mu)h )hea+er in !ondon than in aris/
it is mu)h )hea+er than in $din&ur*h of the same de*ree of
*oodness/ and (hat may seem e1traordinary, the dearness of
house8rent is the )ause of the )hea+ness of lod*in*- The dearness
of house8rent in !ondon arises not only from those )auses (hi)h
render it dear in all *reat )a+itals, the dearness of la&our, the
dearness of all the materials of &uildin*, (hi)h must *enerally
&e &rou*ht from a *reat distan)e, and a&o'e all the dearness of
*round8rent, e'ery landlord a)tin* the +art the +art of a
mono+olist, and frequently e1a)tin* a hi*her rent for a sin*le
a)re of &ad land in a to(n than )an &e had for a hundred of the
&est in the )ountry/ &ut it arises in +art from the +e)uliar
manners and )ustoms of the +eo+le, (hi)h o&li*e e'ery master of a
family to hire a (hole house from to+ to &ottom- A d(ellin*8house
in $n*land means e'erythin* that is )ontained under the same
roof- In "ran)e, S)otland, and many other +arts of $uro+e, it
frequently means no more than a sin*le story- A tradesman in
!ondon is o&li*ed to hire a (hole house in that +art of the to(n
(here his )ustomers li'e- #is sho+ is u+on the *round8floor, and
he and his family slee+ in the *arret/ and he endea'ours to +ay a
+art of his house8rent &y lettin* the t(o middle stories to
lod*ers- #e e1+e)ts to maintain his family &y his trade, and not
&y his lod*ers- Whereas, at aris and $din&ur*h, the +eo+le (ho
let lod*in*s ha'e )ommonly no other means of su&sisten)e and the
+ri)e of the lod*in* must +ay, not only the rent of the house,
&ut the (hole e1+ense of the family-
ART E
Inequalities &y the oli)y of $uro+e
SUC# are the inequalities in the (hole of ad'anta*es and
disad'anta*es of the different em+loyments of la&our and sto)0,
(hi)h the defe)t of any of the three requisites a&o'e mentioned
must o))asion, e'en (here there is the most +erfe)t li&erty- .ut
the +oli)y of $uro+e, &y not lea'in* thin*s at +erfe)t li&erty,
o))asions other inequalities of mu)h *reater im+ortan)e-
It does this )hiefly in the three follo(in* (ays- "irst, &y
restrainin* the )om+etition in some em+loyments to a smaller
num&er than (ould other(ise &e dis+osed to enter into them/
se)ondly, &y in)reasin* it in others &eyond (hat it naturally
(ould &e/ and, thirdly, &y o&stru)tin* the free )ir)ulation of
la&our and sto)0, &oth from em+loyment to em+loyment and from
+la)e to +la)e-
"irst, the +oli)y of $uro+e o))asions a 'ery im+ortant
inequality in the (hole of the ad'anta*es and disad'anta*es of
the different em+loyments of la&our and sto)0, &y restrainin* the
)om+etition in some em+loyments to a smaller num&er than mi*ht
other(ise &e dis+osed to enter into them-
The e1)lusi'e +ri'ile*es of )or+orations are the +rin)i+al
means it ma0es use of for this +ur+ose-
The e1)lusi'e +ri'ile*e of an in)or+orated trade ne)essarily
restrains the )om+etition, in the to(n (here it is esta&lished,
to those (ho are free of the trade- To ha'e ser'ed an
a++renti)eshi+ in the to(n, under a master +ro+erly qualified, is
)ommonly the ne)essary requisite for o&tainin* this freedom- The
&ye la(s of the )or+oration re*ulate sometimes the num&er of
a++renti)es (hi)h any master is allo(ed to ha'e, and almost
al(ays the num&er of years (hi)h ea)h a++renti)e is o&li*ed to
ser'e- The intention of &oth re*ulations is to restrain the
)om+etition to a mu)h smaller num&er than mi*ht other(ise &e
dis+osed to enter into the trade- The limitation of the num&er of
a++renti)es restrains it dire)tly- A lon* term of a++renti)eshi+
restrains it more indire)tly, &ut as effe)tually, &y in)reasin*
the e1+ense of edu)ation-
In Sheffield no master )utler )an ha'e more than one
a++renti)e at a time, &y a &ye la( of the )or+oration- In Norfol0
and Nor(i)h no master (ea'er )an ha'e more than t(o a++renti)es,
under +ain of forfeitin* fi'e +ounds a month to the 0in*- No
master hatter )an ha'e more than t(o a++renti)es any(here in
$n*land, or in the $n*lish +lantations, under +ain of forfeitin*
fi'e +ounds a month, half to the 0in* and half to him (ho shall
sue in any )ourt of re)ord- .oth these re*ulations, thou*h they
ha'e &een )onfirmed &y a +u&li) la( of the 0in*dom, are e'idently
di)tated &y the same )or+oration s+irit (hi)h ena)ted the &ye8la(
of Sheffield- The sil0 (ea'ers in !ondon had s)ar)e &een
in)or+orated a year (hen they ena)ted a &ye8la( restrainin* any
master from ha'in* more than t(o a++renti)es at a time- It
required a +arti)ular A)t of arliament to res)ind this &ye la(-
Se'en years seem an)iently to ha'e &een, all o'er $uro+e,
the usual term esta&lished for the duration of a++renti)eshi+s in
the *reater +art of in)or+orated trades- All su)h in)or+orations
(ere an)iently )alled uni'ersities, (hi)h indeed is the +ro+er
!atin name for any in)or+oration (hate'er- The uni'ersity of
smiths, the uni'ersity of tailors, et)-, are e1+ressions (hi)h (e
)ommonly meet (ith in the old )harters of an)ient to(ns- When
those +arti)ular in)or+orations (hi)h are no( +e)uliarly )alled
uni'ersities (ere first esta&lished, the term of years (hi)h it
(as ne)essary to study, in order to o&tain the de*ree of master
of arts, a++ears e'idently to ha'e &een )o+ied from the terms of
a++renti)eshi+ in )ommon trades, of (hi)h the in)or+orations (ere
mu)h more an)ient- As to ha'e (rou*ht se'en years under a master
+ro+erly qualified (as ne)essary in order to entitle any +erson
to &e)ome a master, and to ha'e himself a++renti)ed in a )ommon
trade/ so to ha'e studied se'en years under a master +ro+erly
qualified (as ne)essary to entitle him to &e)ome a master,
tea)her, or do)tor 9(ords an)iently synonymous: in the li&eral
arts, and to ha'e s)holars or a++renti)es 9(ords li0e(ise
ori*inally synonymous: to study under him-
.y the Hth of $li;a&eth, )ommonly )alled the Statute of
A++renti)eshi+, it (as ena)ted, that no +erson should for the
future e1er)ise any trade, )raft, or mystery at that time
e1er)ised in $n*land, unless he had +re'iously ser'ed to it an
a++renti)eshi+ of se'en years at least/ and (hat &efore had &een
the &ye la( of many +arti)ular )or+orations &e)ame in $n*land the
*eneral and +u&li) la( of all trades )arried on in mar0et to(ns-
"or thou*h the (ords of the statute are 'ery *eneral, and seem
+lainly to in)lude the (hole 0in*dom, &y inter+retation its
o+eration has &een limited to mar0et to(ns, it ha'in* &een held
that in )ountry 'illa*es a +erson may e1er)ise se'eral different
trades, thou*h he has not ser'ed a se'en years= a++renti)eshi+ to
ea)h, they &ein* ne)essary for the )on'enien)y of the
inha&itants, and the num&er of +eo+le frequently not &ein*
suffi)ient to su++ly ea)h (ith a +arti)ular set of hands-
.y a stri)t inter+retation of the (ords, too, the o+eration
of this statute has &een limited to those trades (hi)h (ere
esta&lished in $n*land &efore the Hth of $li;a&eth, and has ne'er
&een e1tended to su)h as ha'e &een introdu)ed sin)e that time-
This limitation has *i'en o))asion to se'eral distin)tions (hi)h,
)onsidered as rules of +oli)e, a++ear as foolish as )an (ell &e
ima*ined- It has &een ad2ud*ed, for e1am+le, that a )oa)hma0er
)an neither himself ma0e nor em+loy 2ourneymen to ma0e his
)oa)h8(heels, &ut must &uy them of a master (heel8(ri*ht/ this
latter trade ha'in* &een e1er)ised in $n*land &efore the Hth of
$li;a&eth- .ut a (heel(ri*ht, thou*h he has ne'er ser'ed an
a++renti)eshi+ to a )oa)hma0er, may either himself ma0e or em+loy
2ourneyman to ma0e )oa)hes/ the trade of a )oa)hma0er not &ein*
(ithin the statute, &e)ause not e1er)ised in $n*land at the time
(hen it (as made- The manufa)tures of 4an)hester, .irmin*ham, and
Wol'erham+ton, are many of them, u+on this a))ount, not (ithin
the statute, not ha'in* &een e1er)ised in $n*land &efore the Hth
of $li;a&eth-
In "ran)e, the duration of a++renti)eshi+s is different in
different to(ns and in different trades- In aris, fi'e years is
the term required in a *reat num&er/ &ut &efore any +erson )an &e
qualified to e1er)ise the trade as a master, he must, in many of
them, ser'e fi'e years more as a 2ourneyman- Durin* this latter
term he is )alled the )om+anion of his master, and the term
itself is )alled his )om+anionshi+-
In S)otland there is no *eneral la( (hi)h re*ulates
uni'ersally the duration of a++renti)eshi+s- The term is
different in different )or+orations- Where it is lon*, a +art of
it may *enerally &e redeemed &y +ayin* a small fine- In most
to(ns, too, a 'ery small fine is suffi)ient to +ur)hase the
freedom of any )or+oration- The (ea'ers of linen and hem+en
)loth, the +rin)i+al manufa)tures of the )ountry, as (ell as all
other artifi)ers su&ser'ient to them, (heel8ma0ers, reel8ma0ers,
et)-, may e1er)ise their trades in any to(n )or+orate (ithout
+ayin* any fine- In all to(ns )or+orate all +ersons are free to
sell &ut)her=s meat u+on any la(ful day of the (ee0- Three years
in S)otland is a )ommon term of a++renti)eshi+, e'en in some 'ery
ni)e trades/ and in *eneral I 0no( of no )ountry in $uro+e in
(hi)h )or+oration la(s are so little o++ressi'e-
The +ro+erty (hi)h e'ery man has in his o(n la&our, as it is
the ori*inal foundation of all other +ro+erty, so it is the most
sa)red and in'iola&le- The +atrimony of a +oor man lies in the
stren*th and de1terity of his hands/ and to hinder him from
em+loyin* this stren*th and de1terity of his hands/ and to hinder
him from em+loyin* this stren*th and de1terity in (hat manner he
thin0s +ro+er (ithout in2ury to his nei*h&our is a +lain
'iolation of this most sa)red +ro+erty- It is a manifest
en)roa)hment u+on the 2ust li&erty &oth of the (or0man and of
those (ho mi*ht &e dis+osed to em+loy him- As it hinders the one
from (or0in* at (hat he thin0s +ro+er, so it hinders the others
from em+loyin* (hom they thin0 +ro+er- To 2ud*e (hether he is fit
to &e em+loyed may surely &e trusted to the dis)retion of the
em+loyers (hose interest it so mu)h )on)erns- The affe)ted
an1iety of the la(8*i'er lest they should em+loy an im+ro+er
+erson is e'idently as im+ertinent as it is o++ressi'e-
The institution of lon* a++renti)eshi+s )an *i'e no se)urity
that insuffi)ient (or0manshi+ shall not frequently &e e1+osed to
+u&li) sale- When this is done it is *enerally the effe)t of
fraud, and not of ina&ility/ and the lon*est a++renti)eshi+ )an
*i'e no se)urity a*ainst fraud- Juite different re*ulations are
ne)essary to +re'ent this a&use- The sterlin* mar0 u+on +late,
and the stam+s u+on linen and (oollen )loth, *i'e the +ur)haser
mu)h *reater se)urity than any statute of a++renti)eshi+- #e
*enerally loo0s at these, &ut ne'er thin0s it (orth (hile to
inquire (hether the (or0man had ser'ed a se'en years=
a++renti)eshi+-
The institution of lon* a++renti)eshi+s has no tenden)y to
form a youn* +eo+le to industry- A 2ourneyman (ho (or0s &y the
+ie)e is li0ely to &e industrious, &e)ause he deri'es a &enefit
from e'ery e1ertion of his industry- An a++renti)e is li0ely to
&e idle, and almost al(ays is so, &e)ause he has no immediate
interest to &e other(ise- In the inferior em+loyments, the s(eets
of la&our )onsist alto*ether in the re)om+ense of la&our- They
(ho are soonest in a )ondition to en2oy the s(eets of it are
li0ely soonest to )on)ei'e a relish for it, and to a)quire the
early ha&it of industry- A youn* man naturally )on)ei'es an
a'ersion to la&our (hen for a lon* time he re)ei'es no &enefit
from it- The &oys (ho are +ut out a++renti)es from +u&li)
)harities are *enerally &ound for more than the usual num&er of
years, and they *enerally turn out 'ery idle and (orthless-
A++renti)eshi+s (ere alto*ether un0no(n to the an)ients- The
re)i+ro)al duties of master and a++renti)e ma0e a )onsidera&le
arti)le in e'ery modern )ode- The Roman la( is +erfe)tly silent
(ith re*ard to them- I 0no( no 6ree0 or !atin (ord 9I mi*ht
'enture, I &elie'e, to assert that there is none: (hi)h e1+resses
the idea (e no( anne1 to the (ord A++renti)e, a ser'ant &ound to
(or0 at a +arti)ular trade for the &enefit of a master, durin* a
term of years, u+on )ondition that the master shall tea)h him
that trade-
!on* a++renti)eshi+s are alto*ether unne)essary- The arts,
(hi)h are mu)h su+erior to )ommon trades, su)h as those of ma0in*
)lo)0s and (at)hes, )ontain no su)h mystery as to require a lon*
)ourse of instru)tion- The first in'ention of su)h &eautiful
ma)hines, indeed, and e'en that of some of the instruments
em+loyed in ma0in* them, must, no dou&t, ha'e &een the (or0 of
dee+ thou*ht and lon* time, and may 2ustly &e )onsidered as amon*
the ha++iest efforts of human in*enuity- .ut (hen &oth ha'e &een
fairly in'ented and are (ell understood, to e1+lain to any youn*
man, in the )om+letest manner, ho( to a++ly the instruments and
ho( to )onstru)t the ma)hines, )annot (ell require more than the
lessons of a fe( (ee0s3 +erha+s those of a fe( days mi*ht &e
suffi)ient- In the )ommon me)hani) trades, those of a fe( days
mi*ht )ertainly &e suffi)ient- The de1terity of hand, indeed,
e'en in )ommon trades, )annot &e a)quired (ithout mu)h +ra)ti)e
and e1+erien)e- .ut a youn* man (ould +ra)ti)e (ith mu)h more
dili*en)e and attention, if from the &e*innin* he (rou*ht as a
2ourneyman, &ein* +aid in +ro+ortion to the little (or0 (hi)h he
)ould e1e)ute, and +ayin* in his turn for the materials (hi)h he
mi*ht sometimes s+oil throu*h a(0(ardness and ine1+erien)e- #is
edu)ation (ould *enerally in this (ay &e more effe)tual, and
al(ays less tedious and e1+ensi'e- The master, indeed, (ould &e a
loser- #e (ould lose all the (a*es of the a++renti)e, (hi)h he
no( sa'es, for se'en years to*ether- In the end, +erha+s, the
a++renti)e himself (ould &e a loser- In a trade so easily learnt
he (ould ha'e more )om+etitors, and his (a*es, (hen he )ame to &e
a )om+lete (or0man, (ould &e mu)h less than at +resent- The same
in)rease of )om+etition (ould redu)e the +rofits of the masters
as (ell as the (a*es of the (or0men- The trades, the )rafts, the
mysteries, (ould all &e losers- .ut the +u&li) (ould &e a *ainer,
the (or0 of all artifi)ers )omin* in this (ay mu)h )hea+er to
mar0et-
It is to +re'ent this redu)tion of +ri)e, and )onsequently
of (a*es and +rofit, &y restrainin* that free )om+etition (hi)h
(ould most )ertainly o))asion it, that all )or+orations, and the
*reater +art of )or+oration la(s, ha'e &een esta&lished- In order
to ere)t a )or+oration, no other authority in an)ient times (as
requisite in many +arts of $uro+e, &ut that of the to(n )or+orate
in (hi)h it (as esta&lished- In $n*land, indeed, a )harter from
the 0in* (as li0e(ise ne)essary- .ut this +rero*ati'e of the
)ro(n seems to ha'e &een reser'ed rather for e1tortin* money from
the su&2e)t than for the defen)e of the )ommon li&erty a*ainst
su)h o++ressi'e mono+olies- U+on +ayin* a fine to the 0in*, the
)harter seems *enerally to ha'e &een readily *ranted/ and (hen
any +arti)ular )lass of artifi)ers or traders thou*ht +ro+er to
a)t as a )or+oration (ithout a )harter, su)h adulterine *uilds,
as they (ere )alled, (ere not al(ays disfran)hised u+on that
a))ount, &ut o&li*ed to fine annually to the 0in* for +ermission
to e1er)ise their usur+ed +ri'ile*es- The immediate ins+e)tion of
all )or+orations, and of the &ye8la(s (hi)h they mi*ht thin0
+ro+er to ena)t for their o(n *o'ernment, &elon*ed to the to(n
)or+orate in (hi)h they (ere esta&lished/ and (hate'er dis)i+line
(as e1er)ised o'er them +ro)eeded )ommonly, not from the 0in*,
&ut from the *reater in)or+oration of (hi)h those su&ordinate
ones (ere only +arts or mem&ers-
The *o'ernment of to(ns )or+orate (as alto*ether in the
hands of traders and artifi)ers, and it (as the manifest interest
of e'ery +arti)ular )lass of them to +re'ent the mar0et from
&ein* o'ersto)0ed, as they )ommonly e1+ress it, (ith their o(n
+arti)ular s+e)ies of industry, (hi)h is in reality to 0ee+ it
al(ays understo)0ed- $a)h )lass (as ea*er to esta&lish
re*ulations +ro+er for this +ur+ose, and, +ro'ided it (as allo(ed
to do so, (as (illin* to )onsent that e'ery other )lass should do
the same- In )onsequen)e of su)h re*ulations, indeed, ea)h )lass
(as o&li*ed to &uy the *oods they had o))asion for from e'ery
other (ithin the to(n, some(hat dearer than they other(ise mi*ht
ha'e done- .ut in re)om+ense, they (ere ena&led to sell their o(n
2ust as mu)h dearer/ so that so far it (as as &road as lon*, as
they say/ and in the dealin*s of the different )lasses (ithin the
to(n (ith one another, none of them (ere losers &y these
re*ulations- .ut in their dealin*s (ith the )ountry they (ere all
*reat *ainers/ and in these latter dealin*s )onsists the (hole
trade (hi)h su++orts and enri)hes e'ery to(n-
$'ery to(n dra(s its (hole su&sisten)e, and all the
materials of its industry, from the )ountry- It +ays for these
)hiefly in t(o (ays3 first, &y sendin* &a)0 to the )ountry a +art
of those materials (rou*ht u+ and manufa)tured/ in (hi)h )ase
their +ri)e is au*mented &y the (a*es of the (or0men, and the
+rofits of their masters or immediate em+loyers/ se)ondly, &y
sendin* to it a +art &oth of the rude and manufa)tured +rodu)e,
either of other )ountries, or of distant +arts of the same
)ountry, im+orted into the to(n/ in (hi)h )ase, too, the ori*inal
+ri)e of those *oods is au*mented &y the (a*es of the )arriers or
sailors, and &y the +rofits of the mer)hants (ho em+loy them- In
(hat is *ained u+on the first of those t(o &ran)hes of )ommer)e
)onsists the ad'anta*e (hi)h the to(n ma0es &y its manufa)tures/
in (hat is *ained u+on the se)ond, the ad'anta*e of its inland
and forei*n trade- The (a*es of the (or0men, and the +rofits of
their different em+loyers, ma0e u+ the (hole of (hat is *ained
u+on &oth- Whate'er re*ulations, therefore, tend to in)rease
those (a*es and +rofits &eyond (hat they other(ise (ould &e, tend
to ena&le the to(n to +ur)hase, (ith a smaller quantity of its
la&our, the +rodu)e of a *reater quantity of the la&our of the
)ountry- They *i'e the traders and artifi)ers in the to(n an
ad'anta*e o'er the landlords, farmers, and la&ourers in the
)ountry, and &rea0 do(n that natural equality (hi)h (ould
other(ise ta0e +la)e in the )ommer)e (hi)h is )arried on &et(een
them- The (hole annual +rodu)e of the la&our of the so)iety is
annually di'ided &et(een those t(o different sets of +eo+le- .y
means of those re*ulations a *reater share of it is *i'en to the
inha&itants of the to(n than (ould other(ise fall to them/ and a
less to those of the )ountry-
The +ri)e (hi)h the to(n really +ays for the +ro'isions and
materials annually im+orted into it is the quantity of
manufa)tures and other *oods annually e1+orted from it- The
dearer the latter are sold, the )hea+er the former are &ou*ht-
The industry of the to(n &e)omes more, and that of the )ountry
less ad'anta*eous-
That the industry (hi)h is )arried on in to(ns is,
e'ery(here in $uro+e, more ad'anta*eous than that (hi)h is
)arried on in the )ountry, (ithout enterin* into any 'ery ni)e
)om+utations, (e may satisfy oursel'es &y one 'ery sim+le and
o&'ious o&ser'ation- In e'ery )ountry of $uro+e (e find, at
least, a hundred +eo+le (ho ha'e a)quired *reat fortunes from
small &e*innin*s &y trade and manufa)tures, the industry (hi)h
+ro+erly &elon*s to to(ns, for one (ho has done so &y that (hi)h
+ro+erly &elon*s to the )ountry, the raisin* of rude +rodu)e &y
the im+ro'ement and )ulti'ation of land- Industry, therefore,
must &e &etter re(arded, the (a*es of la&our and the +rofits of
sto)0 must e'idently &e *reater in the one situation than in the
other- .ut sto)0 and la&our naturally see0 the most ad'anta*eous
em+loyment- They naturally, therefore, resort as mu)h as they )an
to the to(n, and desert the )ountry-
The inha&itants of a to(n, &ein* )olle)ted into one +la)e,
)an easily )om&ine to*ether- The most insi*nifi)ant trades
)arried on in to(ns ha'e a))ordin*ly, in some +la)e or other,
&een in)or+orated, and e'en (here they ha'e ne'er &een
in)or+orated, yet the )or+oration s+irit, the 2ealousy of
stran*ers, the a'ersion to ta0e a++renti)es, or to )ommuni)ate
the se)ret of their trade, *enerally +re'ail in them, and often
tea)h them, &y 'oluntary asso)iations and a*reements, to +re'ent
that free )om+etition (hi)h they )annot +rohi&it &y &ye8la(s- The
trades (hi)h em+loy &ut a small num&er of hands run most easily
into su)h )om&inations- #alf a do;en (ool8)om&ers, +erha+s, are
ne)essary to 0ee+ a thousand s+inners and (ea'ers at (or0- .y
)om&inin* not to ta0e a++renti)es they )an not only en*ross the
em+loyment, &ut redu)e the (hole manufa)ture into a sort of
sla'ery to themsel'es, and raise the +ri)e of their la&our mu)h
a&o'e (hat is due to the nature of their (or0-
The inha&itants of the )ountry, dis+ersed in distant +la)es,
)annot easily )om&ine to*ether- They ha'e not only ne'er &een
in)or+orated, &ut the )or+oration s+irit ne'er has +re'ailed
amon* them- No a++renti)eshi+ has e'er &een thou*ht ne)essary to
qualify for hus&andry, the *reat trade of the )ountry- After (hat
are )alled the fine arts, and the li&eral +rofessions, ho(e'er,
there is +erha+s no trade (hi)h requires so *reat a 'ariety of
0no(led*e and e1+erien)e- The innumera&le 'olumes (hi)h ha'e &een
(ritten u+on it in all lan*ua*es may satisfy us that, amon* the
(isest and most learned nations, it has ne'er &een re*arded as a
matter 'ery easily understood- And from all those 'olumes (e
shall in 'ain attem+t to )olle)t that 0no(led*e of its 'arious
and )om+li)ated o+erations, (hi)h is )ommonly +ossessed e'en &y
the )ommon farmer/ ho( )ontem+tuously soe'er the 'ery
)ontem+ti&le authors of some of them may sometimes affe)t to
s+ea0 of him- There is s)ar)e any )ommon me)hani) trade, on the
)ontrary, of (hi)h all the o+erations may not &e as )om+letely
and distin)tly e1+lained in a +am+hlet of a 'ery fe( +a*es, as it
is +ossi&le for (ords illustrated &y fi*ures to e1+lain them- In
the history of the arts, no( +u&lishin* &y the "ren)h A)ademy of
S)ien)es, se'eral of them are a)tually e1+lained in this manner-
The dire)tion of o+erations, &esides, (hi)h must &e 'aried (ith
e'ery )han*e of the (eather, as (ell as (ith many other
a))idents, requires mu)h more 2ud*ment and dis)retion than that
of those (hi)h are al(ays the same or 'ery nearly the same-
Not only the art of the farmer, the *eneral dire)tion of the
o+erations of hus&andry, &ut many inferior &ran)hes of )ountry
la&our require mu)h more s0in and e1+erien)e than the *reater
+art of me)hani) trades- The man (ho (or0s u+on &rass and iron,
(or0s (ith instruments and u+on materials of (hi)h the tem+er is
al(ays the same, or 'ery nearly the same- .ut the man (ho +lou*hs
the *round (ith a team of horses or o1en, (or0s (ith instruments
of (hi)h the health, stren*th, and tem+er, are 'ery different
u+on different o))asions- The )ondition of the materials (hi)h he
(or0s u+on, too, is as 'aria&le as that of the instruments (hi)h
he (or0s (ith, and &oth require to &e mana*ed (ith mu)h 2ud*ment
and dis)retion- The )ommon +lou*hman, thou*h *enerally re*arded
as the +attern of stu+idity and i*noran)e, is seldom defe)ti'e in
this 2ud*ment and dis)retion- #e is less a))ustomed, indeed, to
so)ial inter)ourse than the me)hani) (ho li'es in a to(n- #is
'oi)e and lan*ua*e are more un)outh and more diffi)ult to &e
understood &y those (ho are not used to them- #is understandin*,
ho(e'er, &ein* a))ustomed to )onsider a *reater 'ariety of
o&2e)ts, is *enerally mu)h su+erior to that of the other, (hose
(hole attention from mornin* till ni*ht is )ommonly o))u+ied in
+erformin* one or t(o 'ery sim+le o+erations- #o( mu)h the lo(er
ran0s of +eo+le in the )ountry are really su+erior to those of
the to(n is (ell 0no(n to e'ery man (hom either &usiness or
)uriosity has led to )on'erse mu)h (ith &oth- In China and
Indostan a))ordin*ly &oth the ran0 and the (a*es of )ountry
la&ourers are said to &e su+erior to those of the *reater +art of
artifi)ers and manufa)turers- They (ould +ro&a&ly &e so
e'ery(here, if )or+oration la(s and the )or+oration s+irit did
not +re'ent it-
The su+eriority (hi)h the industry of the to(ns has
e'ery(here in $uro+e o'er that of the )ountry is not alto*ether
o(in* to )or+orations and )or+oration la(s- It is su++orted &y
many other re*ulations- The hi*h duties u+on forei*n manufa)tures
and u+on all *oods im+orted &y alien mer)hants, all tend to the
same +ur+ose- Cor+oration la(s ena&le the inha&itants of to(ns to
raise their +ri)es, (ithout fearin* to &e undersold &y the free
)om+etition of their o(n )ountrymen- Those other re*ulations
se)ure them equally a*ainst that of forei*ners- The enhan)ement
of +ri)e o))asioned &y &oth is e'ery(here finally +aid &y the
landlords, farmers, and la&ourers of the )ountry, (ho ha'e seldom
o++osed the esta&lishment of su)h mono+olies- They ha'e )ommonly
neither in)lination nor fitness to enter into )om&inations/ and
the )lamour and so+histry of mer)hants and manufa)turers easily
+ersuade them that the +ri'ate interest of a +art, and of a
su&ordinate +art of the so)iety, is the *eneral interest of the
(hole-
In 6reat .ritain the su+eriority of the industry of the
to(ns o'er that of the )ountry seems to ha'e &een *reater
formerly than in the +resent times- The (a*es of )ountry la&our
a++roa)h nearer to those of manufa)turin* la&our, and the +rofits
of sto)0 em+loyed in a*ri)ulture to those of tradin* and
manufa)turin* sto)0, than they are said to ha'e done in the last
)entury, or in the &e*innin* of the +resent- This )han*e may &e
re*arded as the ne)essary, thou*h 'ery late )onsequen)e of the
e1traordinary en)oura*ement *i'en to the industry of the to(ns-
The sto)0 a))umulated in them )omes in time to &e so *reat that
it )an no lon*er &e em+loyed (ith the an)ient +rofit in that
s+e)ies of industry (hi)h is +e)uliar to them- That industry has
its limits li0e e'ery other/ and the in)rease of sto)0, &y
in)reasin* the )om+etition, ne)essarily redu)es the +rofit- The
lo(erin* of +rofit in the to(n for)es out sto)0 to the )ountry,
(here, &y )reatin* a ne( demand for )ountry la&our, it
ne)essarily raises its (a*es- It then s+reads itself, if I may
say so, o'er the fa)e of the land, and &y &ein* em+loyed in
a*ri)ulture is in +art restored to the )ountry, at the e1+ense of
(hi)h, in a *reat measure, it had ori*inally &een a))umulated in
the to(n- That e'ery(here in $uro+e the *reatest im+ro'ements of
the )ountry ha'e &een o(in* to su)h o'erflo(in*s of the sto)0
ori*inally a))umulated in the to(ns, I shall endea'our to sho(
hereafter/ and at the same time to demonstrate that, thou*h some
)ountries ha'e &y this )ourse attained to a )onsidera&le de*ree
of o+ulen)e, it is in itself ne)essarily slo(, un)ertain, lia&le
to &e distur&ed and interru+ted &y innumera&le a))idents, and in
e'ery res+e)t )ontrary to the order of nature and of reason- The
interests, +re2udi)es, la(s and )ustoms, (hi)h ha'e *i'en
o))asion to it, I shall endea'our to e1+lain as fully and
distin)tly as I )an in the third and fourth &oo0s of this
Inquiry-
eo+le of the same trade seldom meet to*ether, e'en for
merriment and di'ersion, &ut the )on'ersation ends in a
)ons+ira)y a*ainst the +u&li), or in some )ontri'an)e to raise
+ri)es- It is im+ossi&le indeed to +re'ent su)h meetin*s, &y any
la( (hi)h either )ould &e e1e)uted, or (ould &e )onsistent (ith
li&erty and 2usti)e- .ut thou*h the la( )annot hinder +eo+le of
the same trade from sometimes assem&lin* to*ether, it ou*ht to do
nothin* to fa)ilitate su)h assem&lies, mu)h less to render them
ne)essary-
A re*ulation (hi)h o&li*es all those of the same trade in a
+arti)ular to(n to enter their names and +la)es of a&ode in a
+u&li) re*ister, fa)ilitates su)h assem&lies- It )onne)ts
indi'iduals (ho mi*ht ne'er other(ise &e 0no(n to one another,
and *i'es e'ery man of the trade a dire)tion (here to find e'ery
other man of it-
A re*ulation (hi)h ena&les those of the same trade to ta1
themsel'es in order to +ro'ide for their +oor, their si)0, their
(ido(s and or+hans, &y *i'in* them a )ommon interest to mana*e,
renders su)h assem&lies ne)essary-
An in)or+oration not only renders them ne)essary, &ut ma0es
the a)t of the ma2ority &indin* u+on the (hole- In a free trade
an effe)tual )om&ination )annot &e esta&lished &ut &y the
unanimous )onsent of e'ery sin*le trader, and it )annot last
lon*er than e'ery sin*le trader )ontinues of the same mind- The
ma2ority of a )or+oration )an ena)t a &ye8la( (ith +ro+er
+enalties, (hi)h (ill limit the )om+etition more effe)tually and
more dura&ly than any 'oluntary )om&ination (hate'er-
The +reten)e that )or+orations are ne)essary for the &etter
*o'ernment of the trade is (ithout any foundation- The real and
effe)tual dis)i+line (hi)h is e1er)ised o'er a (or0man is not
that of his )or+oration, &ut that of his )ustomers- It is the
fear of losin* their em+loyment (hi)h restrains his frauds and
)orre)ts his ne*li*en)e- An e1)lusi'e )or+oration ne)essarily
(ea0ens the for)e of this dis)i+line- A +arti)ular set of (or0men
must then &e em+loyed, let them &eha'e (ell or ill- It is u+on
this a))ount that in many lar*e in)or+orated to(ns no tolera&le
(or0men are to &e found, e'en in some of the most ne)essary
trades- If you (ould ha'e your (or0 tolera&ly e1e)uted, it must
&e done in the su&ur&s, (here the (or0men, ha'in* no e1)lusi'e
+ri'ile*e, ha'e nothin* &ut their )hara)ter to de+end u+on, and
you must then smu**le it into the to(n as (ell as you )an-
It is in this manner that the +oli)y of $uro+e, &y
restrainin* the )om+etition in some em+loyments to a smaller
num&er than (ould other(ise &e dis+osed to enter into them,
o))asions a 'ery im+ortant inequality in the (hole of the
ad'anta*es and disad'anta*es of the different em+loyments of
la&our and sto)0-
Se)ondly, the +oli)y of $uro+e, &y in)reasin* the
)om+etition in some em+loyments &eyond (hat it naturally (ould
&e, o))asions another inequality of an o++osite 0ind in the (hole
of the ad'anta*es and disad'anta*es of the different em+loyments
of la&our and sto)0-
It has &een )onsidered as of so mu)h im+ortan)e that a
+ro+er num&er of youn* +eo+le should &e edu)ated for )ertain
+rofessions, that sometimes the +u&li) and sometimes the +iety of
+ri'ate founders ha'e esta&lished many +ensions, s)holarshi+s,
e1hi&itions, &ursaries, et)-, for this +ur+ose, (hi)h dra( many
more +eo+le into those trades than )ould other(ise +retend to
follo( them- In all Christian )ountries, I &elie'e, the edu)ation
of the *reater +art of )hur)hmen is +aid for in this manner- 5ery
fe( of them are edu)ated alto*ether at their o(n e1+ense- The
lon*, tedious, and e1+ensi'e edu)ation, therefore, of those (ho
are, (ill not al(ays +ro)ure them a suita&le re(ard, the )hur)h
&ein* )ro(ded (ith +eo+le (ho, in order to *et em+loyment, are
(illin* to a))e+t of a mu)h smaller re)om+ense than (hat su)h an
edu)ation (ould other(ise ha'e entitled them to/ and in this
manner the )om+etition of the +oor ta0es a(ay the re(ard of the
ri)h- It (ould &e inde)ent, no dou&t, to )om+are either a )urate
or a )ha+lain (ith a 2ourneyman in any )ommon trade- The +ay of a
)urate or )ha+lain, ho(e'er, may 'ery +ro+erly &e )onsidered as
of the same nature (ith the (a*es of a 2ourneyman- They are, all
three, +aid for their (or0 a))ordin* to the )ontra)t (hi)h they
may ha++en to ma0e (ith their res+e)ti'e su+eriors- Till after
the middle of the fourteenth )entury, fi'e mer0s, )ontainin*
a&out as mu)h sil'er as ten +ounds of our +resent money, (as in
$n*land the usual +ay of a )urate or a sti+endiary +arish +riest,
as (e find it re*ulated &y the de)rees of se'eral different
national )oun)ils- At the same +eriod four+en)e a day, )ontainin*
the same quantity of sil'er as a shillin* of our +resent money,
(as de)lared to &e the +ay of a master mason, and three+en)e a
day, equal to nine+en)e of our +resent money, that of a
2ourneyman mason- The (a*es of &oth these la&ourers, therefore,
su++osin* them to ha'e &een )onstantly em+loyed, (ere mu)h
su+erior to those of the )urate- The (a*es of the master mason,
su++osin* him to ha'e &een (ithout em+loyment one third of the
year, (ould ha'e fully equalled them- .y the 1Eth of Jueen Anne,
)- 1E, it is de)lared, @That (hereas for (ant of suffi)ient
maintenan)e and en)oura*ement to )urates, the )ures ha'e in
se'eral +la)es &een meanly su++lied, the &isho+ is, therefore,
em+o(ered to a++oint &y (ritin* under his &and and seal a
suffi)ient )ertain sti+end or allo(an)e, not e1)eedin* fifty and
not less than t(enty +ounds a year-@ "orty +ounds a year is
re)0oned at +resent 'ery *ood +ay for a )urate, and
not(ithstandin* this A)t of arliament there are many )ura)ies
under t(enty +ounds a year- There are 2ourneymen shoema0ers in
!ondon (ho earn forty +ounds a year, and there is s)ar)e an
industrious (or0man of any 0ind in that metro+olis (ho does not
earn more than t(enty- This last sum indeed does not e1)eed (hat
is frequently earned &y )ommon la&ourers in many )ountry
+arishes- Whene'er the la( has attem+ted to re*ulate the (a*es of
(or0men, it has al(ays &een rather to lo(er them than to raise
them- .ut the la( has u+on many o))asions attem+ted to raise the
(a*es of )urates, and for the di*nity of the )hur)h, to o&li*e
the re)tors of +arishes to *i'e them more than the (ret)hed
maintenan)e (hi)h they themsel'es mi*ht &e (illin* to a))e+t of-
And in &oth )ases the la( seems to ha'e &een equally ineffe)tual,
and has ne'er either &een a&le to raise the (a*es of )urates, or
to sin0 those of la&ourers to the de*ree that (as intended/
&e)ause it has ne'er &een a&le to hinder either the one from
&ein* (illin* to a))e+t of less than the le*al allo(an)e, on
a))ount of the indi*en)e of their situation and the multitude of
their )om+etitors/ or the other from re)ei'in* more, on a))ount
of the )ontrary )om+etition of those (ho e1+e)ted to deri'e
either +rofit or +leasure from em+loyin* them-
The *reat &enefi)es and other e))lesiasti)al di*nities
su++ort the honour of the )hur)h, not(ithstandin* the mean
)ir)umstan)e of some of its inferior mem&ers- The res+e)t +aid to
the +rofession, too, ma0es some )om+ensation e'en to them for the
meanness of their +e)uniary re)om+ense- In $n*land, and in all
Roman Catholi) )ountries, the lottery of the )hur)h is in reality
mu)h more ad'anta*eous than is ne)essary- The e1am+le of the
)hur)hes of S)otland, of 6ene'a, and of se'eral other rotestant
)hur)hes, may satisfy us that in so )redita&le a +rofession, in
(hi)h edu)ation is so easily +ro)ured, the ho+es of mu)h more
moderate &enefi)es (ill dra( a suffi)ient num&er of learned,
de)ent, and res+e)ta&le men into holy orders-
In +rofessions in (hi)h there are no &enefi)es, su)h as la(
and +hysi), if an equal +ro+ortion of +eo+le (ere edu)ated at the
+u&li) e1+ense, the )om+etition (ould soon &e so *reat as to sin0
'ery mu)h their +e)uniary re(ard- It mi*ht then not &e (orth any
man=s (hile to edu)ate his son to either of those +rofessions at
his o(n e1+ense- They (ould &e entirely a&andoned to su)h as had
&een edu)ated &y those +u&li) )harities, (hose num&ers and
ne)essities (ould o&li*e them in *eneral to )ontent themsel'es
(ith a 'ery misera&le re)om+ense, to the entire de*radation of
the no( res+e)ta&le +rofessions of la( and +hysi)-
That un+ros+erous ra)e of men )ommonly )alled men of letters
are +retty mu)h in the situation (hi)h la(yers and +hysi)ians
+ro&a&ly (ould &e in u+on the fore*oin* su++osition- In e'ery
+art of $uro+e the *reater +art of them ha'e &een edu)ated for
the )hur)h, &ut ha'e &een hindered &y different reasons from
enterin* into holy orders- They ha'e *enerally, therefore, &een
edu)ated at the +u&li) e1+ense, and their num&ers are e'ery(here
so *reat as )ommonly to redu)e the +ri)e of their la&our to a
'ery +altry re)om+ense-
.efore the in'ention of the art of +rintin*, the only
em+loyment &y (hi)h a man of letters )ould ma0e anythin* &y his
talents (as that of a +u&li) or +ri'ate tea)her, or &y
)ommuni)atin* to other +eo+le the )urious and useful 0no(led*e
(hi)h he had a)quired himself3 and this is still surely a more
honoura&le, a more useful, and in *eneral e'en a more +rofita&le
em+loyment than that other of (ritin* for a &oo0seller, to (hi)h
the art of +rintin* has *i'en o))asion- The time and study, the
*enius, 0no(led*e, and a++li)ation requisite to qualify an
eminent tea)her of the s)ien)es, are at least equal to (hat is
ne)essary for the *reatest +ra)titioners in la( and +hysi)- .ut
the usual re(ard of the eminent tea)her &ears no +ro+ortion to
that of the la(yer or +hysi)ian/ &e)ause the trade of the one is
)ro(ded (ith indi*ent +eo+le (ho ha'e &een &rou*ht u+ to it at
the +u&li) e1+ense/ (hereas those of the other t(o are en)um&ered
(ith 'ery fe( (ho ha'e not &een edu)ated at their o(n- The usual
re)om+ense, ho(e'er, of +u&li) and +ri'ate tea)hers, small as it
may a++ear, (ould undou&tedly &e less than it is, if the
)om+etition of those yet more indi*ent men of letters (ho (rite
for &read (as not ta0en out of the mar0et- .efore the in'ention
of the art of +rintin*, a s)holar and a &e**ar seem to ha'e &een
terms 'ery nearly synonymous- The different *o'ernors of the
uni'ersities &efore that time a++ear to ha'e often *ranted
li)en)es to their s)holars to &e*-
In an)ient times, &efore any )harities of this 0ind had &een
esta&lished for the edu)ation of indi*ent +eo+le to the learned
+rofessions, the re(ards of eminent tea)hers a++ear to ha'e &een
mu)h more )onsidera&le- Iso)rates, in (hat is )alled his
dis)ourse a*ainst the so+hists, re+roa)hes the tea)hers of his
o(n times (ith in)onsisten)y- @They ma0e the most ma*nifi)ent
+romises to their s)holars,@ says he, @and underta0e to tea)h
them to &e (ise, to &e ha++y, and to &e 2ust, and in return for
so im+ortant a ser'i)e they sti+ulate the +altry re(ard of four
or fi'e minae- They (ho tea)h (isdom,@ )ontinues he, ou*ht
)ertainly to &e (ise themsel'es/ &ut if any man (ere to sell su)h
a &ar*ain for su)h a +ri)e, he (ould &e )on'i)ted of the most
e'ident folly-@ #e )ertainly does not mean here to e1a**erate the
re(ard, and (e may &e assured that it (as not less than he
re+resents it- "our minae (ere equal to thirteen +ounds si1
shillin*s and ei*ht+en)e3 fi'e minae to si1teen +ounds thirteen
shillin*s and four+en)e- Somethin* not less than the lar*est of
those t(o sums, therefore, must at that time ha'e &een usually
+aid to the most eminent tea)hers at Athens- Iso)rates himself
demanded ten minae, or thirty8three +ounds si1 shillin*s and
ei*ht+en)e, from ea)h s)holar- When he tau*ht at Athens, he is
said to ha'e had a hundred s)holars- I understand this to &e the
num&er (hom he tau*ht at one time, or (ho attended (hat (e )ould
)all one )ourse of le)tures, a num&er (hi)h (ill not a++ear
e1traordinary from so *reat a )ity to so famous a tea)her, (ho
tau*ht, too, (hat (as at that time the most fashiona&le of all
s)ien)es, rhetori)- #e must ha'e made, therefore, &y ea)h )ourse
of le)tures, a thousand minae, or !BBBB 6s- ?d- A thousand minae,
a))ordin*ly, is said &y lutar)h in another +la)e, to ha'e &een
his Dida)tron, or usual +ri)e of tea)hin*- 4any other eminent
tea)hers in those times a++ear to ha'e a)quired *reat fortunes-
6or*ias made a +resent to the tem+le of Del+hi of his o(n statue
in solid *old- We must not, I +resume, su++ose that it (as as
lar*e as the life- #is (ay of li'in*, as (ell as that of #i++ias
and rota*oras, t(o other eminent tea)hers of those times, is
re+resented &y lato as s+lendid e'en to ostentation- lato
himself is said to ha'e li'ed (ith a *ood deal of ma*nifi)en)e-
Aristotle, after ha'in* &een tutor to Ale1ander, and most
munifi)ently re(arded, as it is uni'ersally a*reed, &oth &y him
and his father hili+, thou*ht it (orth (hile, not(ithstandin*,
to return to Athens, in order to resume the tea)hin* of his
s)hool- Tea)hers of the s)ien)es (ere +ro&a&ly in those times
less )ommon than they )ame to &e in an a*e or t(o after(ards,
(hen the )om+etition had +ro&a&ly some(hat redu)ed &oth the +ri)e
of their la&our and the admiration for their +ersons- The most
eminent of them, ho(e'er, a++ear al(ays to ha'e en2oyed a de*ree
of )onsideration mu)h su+erior to any of the li0e +rofession in
the +resent times- The Athenians sent Carneades the A)ademi), and
Dio*enes the Stoi), u+on a solemn em&assy to Rome/ and thou*h
their )ity had then de)lined from its former *randeur, it (as
still an inde+endent and )onsidera&le re+u&li)- Carneades, too,
(as a .a&ylonian &y &irth, and as there ne'er (as a +eo+le more
2ealous of admittin* forei*ners to +u&li) offi)es than the
Athenians, their )onsideration for him must ha'e &een 'ery *reat-
This inequality is u+on the (hole, +erha+s, rather
ad'anta*eous than hurtful to the +u&li)- It may some(hat de*rade
the +rofession of a +u&li) tea)her/ &ut the )hea+ness of literary
edu)ation is surely an ad'anta*e (hi)h *reatly o'er&alan)es this
triflin* in)on'enien)y- The +u&li), too, mi*ht deri'e still
*reater &enefit from it, if the )onstitution of those s)hools and
)olle*es, in (hi)h edu)ation is )arried on, (as more reasona&le
than it is at +resent throu*h the *reater +art of $uro+e-
Thirdly, the +oli)y of $uro+e, &y o&stru)tin* the free
)ir)ulation of la&our and sto)0 &oth from em+loyment to
em+loyment, and from +la)e to +la)e, o))asions in some )ases a
'ery in)o'enient inequality in the (hole of the ad'anta*es and
disad'anta*es of their different em+loyments-
The Statute of A++renti)eshi+ o&stru)ts the free )ir)ulation
of la&our from one em+loyment to another, e'en in the same +la)e-
The e1)lusi'e +ri'ile*es of )or+orations o&stru)t it from one
+la)e to another, e'en in the same em+loyment-
It frequently ha++ens that (hile hi*h (a*es are *i'en to the
(or0men in one manufa)ture, those in another are o&li*ed to
)ontent themsel'es (ith &are su&sisten)e- The one is in an
ad'an)in* state, and has, therefore, a )ontinual demand for ne(
&ands3 the other is in a de)linin* state, and the su+era&undan)e
of hands is )ontinually in)reasin*- Those t(o manufa)tures may
sometimes &e in the same to(n, and sometimes in the same
nei*h&ourhood, (ithout &ein* a&le to lend the least assistan)e to
one another- The Statute of A++renti)eshi+ may o++ose it in the
one )ase, and &oth that and an e1)lusi'e )or+oration in the
other- In many different manufa)tures, ho(e'er, the o+erations
are so mu)h ali0e, that the (or0men )ould easily )han*e trades
(ith one another, if those a&surd la(s did not hinder them- The
arts of (ea'in* +lain linen and +lain sil0, for e1am+le, are
almost entirely the same- That of (ea'in* +lain (oollen is
some(hat different/ &ut the differen)e is so insi*nifi)ant that
either a linen or a sil0 (ea'er mi*ht &e)ome a tolera&le (or0 in
a 'ery fe( days- If any of those three )a+ital manufa)tures,
therefore, (ere de)ayin*, the (or0men mi*ht find a resour)e in
one of the other t(o (hi)h (as in a more +ros+erous )ondition/
and their (a*es (ould neither rise too hi*h in the thri'in*, nor
sin0 too lo( in the de)ayin* manufa)ture- The linen manufa)ture
indeed is, in $n*land, &y a +arti)ular statute, o+en to
e'ery&ody/ &ut as it is not mu)h )ulti'ated throu*h the *reater
+art of the )ountry, it )an afford no *eneral resour)e to the
(or0men of other de)ayin* manufa)tures, (ho, (here'er the Statute
of A++renti)eshi+ ta0es +la)e, ha'e no other )hoi)e &ut either to
)ome u+on the +arish, or to (or0 as )ommon la&ourers, for (hi)h,
&y their ha&its, they are mu)h (orse qualified than for any sort
of manufa)ture that &ears any resem&lan)e to their o(n- They
*enerally, therefore, )hoose to )ome u+on the +arish-
Whate'er o&stru)ts the free )ir)ulation of la&our from one
em+loyment to another o&stru)ts that of sto)0 li0e(ise/ the
quantity of sto)0 (hi)h )an &e em+loyed in any &ran)h of &usiness
de+endin* 'ery mu)h u+on that of the la&our (hi)h )an &e em+loyed
in it- Cor+oration la(s, ho(e'er, *i'e less o&stru)tion to the
free )ir)ulation of sto)0 from one +la)e to another than to that
of la&our- It is e'ery(here mu)h easier for a (ealthy mer)hant to
o&tain the +ri'ile*e of tradin* in a to(n )or+orate, than for a
+oor artifi)er to o&tain that of (or0in* in it-
The o&stru)tion (hi)h )or+oration la(s *i'e to the free
)ir)ulation of la&our is )ommon, I &elie'e, to e'ery +art of
$uro+e- That (hi)h is *i'en to it &y the oor !a(s is, so far as
I 0no(, +e)uliar to $n*land- It )onsists in the diffi)ulty (hi)h
a +oor man finds in o&tainin* a settlement, or e'en in &ein*
allo(ed to e1er)ise his industry in any +arish &ut that to (hi)h
he &elon*s- It is the la&our of artifi)ers and manufa)turers only
of (hi)h the free )ir)ulation is o&stru)ted &y )or+oration la(s-
The diffi)ulty of o&tainin* settlements o&stru)ts e'en that of
)ommon la&our- It may &e (orth (hile to *i'e some a))ount of the
rise, +ro*ress, and +resent state of this disorder, the *reatest
+erha+s of any in the +oli)e of $n*land-
When &y the destru)tion of monasteries the +oor had &een
de+ri'ed of the )harity of those reli*ious houses, after some
other ineffe)tual attem+ts for their relief, it (as ena)ted &y
the GBrd of $li;a&eth, )- E, that e'ery +arish should &e &ound to
+ro'ide for its o(n +oor/ and that o'erseers of the +oor should
&e annually a++ointed, (ho, (ith the )hur)h(ardens, should raise
&y a +arish rate )om+etent sums for this +ur+ose-
.y this statute the ne)essity of +ro'idin* for their o(n
+oor (as indis+ensa&ly im+osed u+on e'ery +arish- Who (ere to &e
)onsidered as the +oor of ea)h +arish &e)ame, therefore, a
question of some im+ortan)e- This question, after some 'ariation,
(as at last determined &y the 1Bth and 1Gth of Charles II (hen it
(as ena)ted, that forty days= undistur&ed residen)e should *ain
any +erson a settlement in any +arish/ &ut that (ithin that time
it should &e la(ful for t(o 2usti)es of the +ea)e, u+on )om+laint
made &y the )hur)h(ardens or o'erseers of the +oor, to remo'e any
ne( inha&itant to the +arish (here he (as last le*ally settled/
unless he either rented a tenement of ten +ounds a year, or )ould
*i'e su)h se)urity for the dis)har*e of the +arish (here he (as
then li'in*, as those 2usti)es should 2ud*e suffi)ient-
Some frauds, it is said, (ere )ommitted in )onsequen)e of
this statute/ +arish offi)ers sometimes &ri&in* their o(n +oor to
*o )landestinely to another +arish, and &y 0ee+in* themsel'es
)on)ealed for forty days to *ain a settlement there, to the
dis)har*e of that to (hi)h they +ro+erly &elon*ed- It (as
ena)ted, therefore, &y the 1st of Aames II that the forty days=
undistur&ed residen)e of any +erson ne)essary to *ain a
settlement should &e a))ounted only from the time of his
deli'erin* noti)e in (ritin*, of the +la)e of his a&ode and the
num&er of his family, to one of the )hur)h(ardens or o'erseers of
the +arish (here he )ame to d(ell-
.ut +arish offi)ers, it seems, (ere not al(ays more honest
(ith re*ard to their o(n, than they had &een (ith re*ard to other
+arishes, and sometimes )onni'ed at su)h intrusions, re)ei'in*
the noti)e, and ta0in* no +ro+er ste+s in )onsequen)e of it- As
e'ery +erson in a +arish, therefore, (as su++osed to ha'e an
interest to +re'ent as mu)h as +ossi&le their &ein* &urdened &y
su)h intruders, it (as further ena)ted &y the Brd of William III
that the forty days= residen)e should &e a))ounted only from the
+u&li)ation of su)h noti)e in (ritin* on Sunday in the )hur)h,
immediately after di'ine ser'i)e-
@After all,@ says Do)tor .urn, @this 0ind of settlement, &y
)ontinuin* forty days after +u&li)ation of noti)e in (ritin*, is
'ery seldom o&tained/ and the desi*n of the a)ts is not so mu)h
for *ainin* of settlements, as for the a'oidin* of them, &y
+ersons )omin* into a +arish )landestinely3 for the *i'in* of
noti)e is only +uttin* a for)e u+on the +arish to remo'e- .ut if
a +erson=s situation is su)h, that it is dou&tful (hether he is
a)tually remo'a&le or not, he shall &y *i'in* of noti)e )om+el
the +arish either to allo( him a settlement un)ontested, &y
sufferin* him to )ontinue forty days/ or, &y remo'in* him, to try
the ri*ht-@
This statute, therefore, rendered it almost im+ra)ti)a&le
for a +oor man to *ain a ne( settlement in the old (ay, &y forty
days= inha&itan)y- .ut that it mi*ht not a++ear to +re)lude
alto*ether the )ommon +eo+le of one +arish from e'er esta&lishin*
themsel'es (ith se)urity in another, it a++ointed four other (ays
&y (hi)h a settlement mi*ht &e *ained (ithout any noti)e
deli'ered or +u&lished- The first (as, &y &ein* ta1ed to +arish
rates and +ayin* them/ the se)ond, &y &ein* ele)ted into an
annual +arish offi)e, and ser'in* in it a year/ the third, &y
ser'in* an a++renti)eshi+ in the +arish/ the fourth, &y &ein*
hired into ser'i)e there for a year, and )ontinuin* in the same
ser'i)e durin* the (hole of it-
No&ody )an *ain a settlement &y either of the t(o first
(ays, &ut &y the +u&li) deed of the (hole +arish, (ho are too
(ell a(are of the )onsequen)es to ado+t any ne(8)omer (ho has
nothin* &ut his la&our to su++ort him, either &y ta1in* him to
+arish rates, or &y ele)tin* him into a +arish offi)e-
No married man )an (ell *ain any settlement in either of the
t(o last (ays- An a++renti)e is s)ar)e e'er married/ and it is
e1+ressly ena)ted that no married ser'ant shall *ain any
settlement &y &ein* hired for a year- The +rin)i+al effe)t of
introdu)in* settlement &y ser'i)e has &een to +ut out in a *reat
measure the old fashion of hirin* for a year, (hi)h &efore had
&een so )ustomary in $n*land, that e'en at this day, if no
+arti)ular term is a*reed u+on, the la( intends that e'ery
ser'ant is hired for a year- .ut masters are not al(ays (illin*
to *i'e their ser'ants a settlement &y hirin* them in this
manner/ and ser'ants are not al(ays (illin* to &e so hired,
&e)ause, as e'ery last settlement dis)har*es all the fore*oin*,
they mi*ht there&y lose their ori*inal settlement in the +la)es
of their nati'ity, the ha&itation of their +arents and relations-
No inde+endent (or0man, it is e'ident, (hether la&ourer or
artifi)er, is li0ely to *ain any ne( settlement either &y
a++renti)eshi+ or &y ser'i)e- When su)h a +erson, therefore,
)arried his industry to a ne( +arish, he (as lia&le to &e
remo'ed, ho( healthy and industrious soe'er, at the )a+ri)e of
any )hur)h(arden or o'erseer, unless he either rented a tenement
of ten +ounds a year, a thin* im+ossi&le for one (ho has nothin*
&ut his la&our to li'e &y/ or )ould *i'e su)h se)urity for the
dis)har*e of the +arish as t(o 2usti)es of the +ea)e should 2ud*e
suffi)ient- What se)urity they shall require, indeed, is left
alto*ether to their dis)retion/ &ut they )annot (ell require less
than thirty +ounds, it ha'in* &een ena)ted that the +ur)hase e'en
of a freehold estate of less than thirty +ounds= 'alue shall not
*ain any +erson a settlement, as not &ein* suffi)ient for the
dis)har*e of the +arish- .ut this is a se)urity (hi)h s)ar)e any
man (ho li'es &y la&our )an *i'e/ and mu)h *reater se)urity is
frequently demanded-
In order to restore in some measure that free )ir)ulation of
la&our (hi)h those different statutes had almost entirely ta0en
a(ay, the in'ention of )ertifi)ates (as fallen u+on- .y the ?th
and Fth of William III it (as ena)ted that if any +erson should
&rin* a )ertifi)ate from the +arish (here he (as last le*ally
settled, su&s)ri&ed &y the )hur)h(ardens and o'erseers of the
+oor, and allo(ed &y t(o 2usti)es of the +ea)e, that e'ery other
+arish should &e o&li*ed to re)ei'e him/ that he should not &e
remo'a&le merely u+on a))ount of his &ein* li0ely to &e)ome
)har*ea&le, &ut only u+on his &e)omin* a)tually )har*ea&le, and
that then the +arish (hi)h *ranted the )ertifi)ate should &e
o&li*ed to +ay the e1+ense &oth of his maintenan)e and of his
remo'al- And in order to *i'e the most +erfe)t se)urity to the
+arish (here su)h )ertifi)ated man should )ome to reside, it (as
further ena)ted &y the same statute that he should *ain no
settlement there &y any means (hate'er, e1)e+t either &y rentin*
a tenement of ten +ounds a year, or &y ser'in* u+on his o(n
a))ount in an annual +arish offi)e for one (hole year/ and
)onsequently neither &y noti)e, nor &y ser'i)e, nor &y
a++renti)eshi+, nor &y +ayin* +arish rates- .y the 1Eth of Jueen
Anne, too, stat- 1, )- 1?, it (as further ena)ted that neither
the ser'ants nor a++renti)es of su)h )ertifi)ated man should *ain
any settlement in the +arish (here he resided under su)h
)ertifi)ate-
#o( far this in'ention has restored that free )ir)ulation of
la&our (hi)h the +re)edin* statutes had almost entirely ta0en
a(ay, (e may learn from the follo(in* 'ery 2udi)ious o&ser'ation
of Do)tor .urn- @It is o&'ious,@ says he, @that there are di'ers
*ood reasons for requirin* )ertifi)ates (ith +ersons )omin* to
settle in any +la)e/ namely, that +ersons residin* under them )an
*ain no settlement, neither &y a++renti)eshi+, nor &y ser'i)e,
nor &y *i'in* noti)e, nor &y +ayin* +arish rates/ that they )an
settle neither a++renti)es nor ser'ants/ that if they &e)ome
)har*ea&le, it is )ertainly 0no(n (hither to remo'e them, and the
+arish shall &e +aid for the remo'al, and for their maintenan)e
in the meantime/ and that if they fall si)0, and )annot &e
remo'ed, the +arish (hi)h *a'e the )ertifi)ate must maintain
them3 none of all (hi)h )an &e (ithout a )ertifi)ate- Whi)h
reasons (ill hold +ro+ortiona&ly for +arishes not *rantin*
)ertifi)ates in ordinary )ases/ for it is far more than an equal
)han)e, &ut that they (ill ha'e the )ertifi)ated +ersons a*ain,
and in a (orse )ondition-@ The moral of this o&ser'ation seems to
&e that )ertifi)ates ou*ht al(ays to &e required &y the +arish
(here any +oor man )omes to reside, and that they ou*ht 'ery
seldom to &e *ranted &y that (hi)h he +ro+oses to lea'e- @There
is some(hat of hardshi+ in this matter of )ertifi)ates,@ says the
same 'ery intelli*ent author in his #istory of the oor !a(s, @&y
+uttin* it in the +o(er of a +arish offi)er to im+rison a man as
it (ere for life/ ho(e'er in)on'enient it may &e for him to
)ontinue at that +la)e (here he has had the misfortune to a)quire
(hat is )alled a settlement, or (hate'er ad'anta*e he may +ro+ose
to himself &y li'in* else(here-@
Thou*h a )ertifi)ate )arries alon* (ith it no testimonial of
*ood &eha'iour, and )ertifies nothin* &ut that the +erson &elon*s
to the +arish to (hi)h he really does &elon*, it is alto*ether
dis)retionary in the +arish offi)ers either to *rant or to refuse
it- A mandamus (as on)e mo'ed for, says Do)tor .urn, to )om+el
the )hur)h(ardens and o'erseers to si*n a )ertifi)ate/ &ut the
)ourt of %in*=s .en)h re2e)ted the motion as a 'ery stran*e
attem+t-
The 'ery unequal +ri)e of la&our (hi)h (e frequently find in
$n*land in +la)es at no *reat distan)e from one another is
+ro&a&ly o(in* to the o&stru)tion (hi)h the la( of settlements
*i'es to a +oor man (ho (ould )arry his industry from one +arish
to another (ithout a )ertifi)ate- A sin*le man, indeed, (ho is
healthy and industrious, may sometimes reside &y sufferan)e
(ithout one/ &ut a man (ith a (ife and family (ho should attem+t
to do so (ould in most +arishes &e sure of &ein* remo'ed, and if
the sin*le man should after(ards marry, he (ould *enerally &e
remo'ed li0e(ise- The s)ar)ity of hands in one +arish, therefore,
)annot al(ays &e relie'ed &y their su+era&undan)e in another, as
it is )onstantly in S)otland, and, I &elie'e, in all other
)ountries (here there is no diffi)ulty of settlement- In su)h
)ountries, thou*h (a*es may sometimes rise a little in the
nei*h&ourhood of a *reat to(n, or (here'er else there is an
e1traordinary demand for la&our, and sin0 *radually as the
distan)e from su)h +la)es in)reases, till they fall &a)0 to the
)ommon rate of the )ountry/ yet (e ne'er meet (ith those sudden
and una))ounta&le differen)es in the (a*es of nei*h&ourin* +la)es
(hi)h (e sometimes find in $n*land, (here it is often more
diffi)ult for a +oor man to +ass the artifi)ial &oundary of a
+arish than an arm of the sea or a rid*e of hi*h mountains,
natural &oundaries (hi)h sometimes se+arate 'ery distin)tly
different rates of (a*es in other )ountries-
To remo'e a man (ho has )ommitted no misdemeanour from the
+arish (here he )hooses to reside is an e'ident 'iolation of
natural li&erty and 2usti)e- The )ommon +eo+le of $n*land,
ho(e'er, so 2ealous of their li&erty, &ut li0e the )ommon +eo+le
of most other )ountries ne'er ri*htly understandin* (herein it
)onsists, ha'e no( for more than a )entury to*ether suffered
themsel'es to &e e1+osed to this o++ression (ithout a remedy-
Thou*h men of refle)tion, too, ha'e sometimes )om+lained of the
la( of settlements as a +u&li) *rie'an)e/ yet it has ne'er &een
the o&2e)t of any *eneral +o+ular )lamour, su)h as that a*ainst
*eneral (arrants, an a&usi'e +ra)ti)e undou&tedly, &ut su)h a one
as (as not li0ely to o))asion any *eneral o++ression- There is
s)ar)e a +oor man in $n*land of forty years of a*e, I (ill
'enture to say, (ho has not in some +art of his life felt himself
most )ruelly o++ressed &y this ill)ontri'ed la( of settlements-
I shall )on)lude this lon* )ha+ter (ith o&ser'in* that,
thou*h an)iently it (as usual to rate (a*es, first &y *eneral
la(s e1tendin* o'er the (hole 0in*dom, and after(ards &y
+arti)ular orders of the 2usti)es of +ea)e in e'ery +arti)ular
)ounty, &oth these +ra)ti)es ha'e no( *one entirely into disuse-
@.y the e1+erien)e of a&o'e four hundred years,@ says Do)tor
.urn, @it seems time to lay aside all endea'ours to &rin* under
stri)t re*ulations, (hat in its o(n nature seems in)a+a&le of
minute limitation/ for if all +ersons in the same 0ind of (or0
(ere to re)ei'e equal (a*es, there (ould &e no emulation, and no
room left for industry or in*enuity-@
arti)ular A)ts of arliament, ho(e'er, still attem+t
sometimes to re*ulate (a*es in +arti)ular trades and in
+arti)ular +la)es- Thus the ?th of 6eor*e III +rohi&its under
hea'y +enalties all master tailors in !ondon, and fi'e miles
round it, from *i'in*, and their (or0men from a))e+tin*, more
than t(o shillin*s and se'en+en)e half+enny a day, e1)e+t in the
)ase of a *eneral mournin*- Whene'er the le*islature attem+ts to
re*ulate the differen)es &et(een masters and their (or0men, its
)ounsellors are al(ays the masters- When the re*ulation,
therefore, is in fa'our of the (or0men, it is al(ays 2ust and
equita&le/ &ut it is sometimes other(ise (hen in fa'our of the
masters- Thus the la( (hi)h o&li*es the masters in se'eral
different trades to +ay their (or0men in money and not in *oods
is quite 2ust and equita&le- It im+oses no real hardshi+ u+on the
masters- It only o&li*es them to +ay that 'alue in money, (hi)h
they +retended to +ay, &ut did not al(ays really +ay, in *oods-
This la( is in fa'our of the (or0men3 &ut the ?th of 6eor*e III
is in fa'our of the masters- When masters )om&ine to*ether in
order to redu)e the (a*es of their (or0men, they )ommonly enter
into a +ri'ate &ond or a*reement not to *i'e more than a )ertain
(a*e under a )ertain +enalty- Were the (or0men to enter into a
)ontrary )om&ination of the same 0ind, not to a))e+t of a )ertain
(a*e under a )ertain +enalty, the la( (ould +unish them 'ery
se'erely/ and if it dealt im+artially, it (ould treat the masters
in the same manner- .ut the ?th of 6eor*e III enfor)es &y la(
that 'ery re*ulation (hi)h masters sometimes attem+t to esta&lish
&y su)h )om&inations- The )om+laint of the (or0men, that it +uts
the a&lest and most industrious u+on the same footin* (ith an
ordinary (or0man, seems +erfe)tly (ell founded-
In an)ient times, too, it (as usual to attem+t to re*ulate
the +rofits of mer)hants and other dealers, &y ratin* the +ri)e
&oth of +ro'isions and other *oods- The assi;e of &read is, so
far as I 0no(, the only remnant of this an)ient usa*e- Where
there is an e1)lusi'e )or+oration, it may +erha+s &e +ro+er to
re*ulate the +ri)e of the first ne)essary of life- .ut (here
there is none, the )om+etition (ill re*ulate it mu)h &etter than
any assi;e- The method of fi1in* the assi;e of &read esta&lished
&y the B1st of 6eor*e II )ould not &e +ut in +ra)ti)e in
S)otland, on a))ount of a defe)t in the la(/ its e1e)ution
de+endin* u+on the offi)e of a )ler0 of the mar0et, (hi)h does
not e1ist there- This defe)t (as not remedied till the Brd of
6eor*e III- The (ant of an assi;e o))asioned no sensi&le
in)on'enien)y, and the esta&lishment of one, in the fe( +la)es
(here it has yet ta0en +la)e, has +rodu)ed no sensi&le ad'anta*e-
In the *reater +art of the to(ns of S)otland, ho(e'er, there is
an in)or+oration of &a0ers (ho )laim e1)lusi'e +ri'ile*es, thou*h
they are not 'ery stri)tly *uarded-
The +ro+ortion &et(een the different rates &oth of (a*es and
+rofit in the different em+loyments of la&our and sto)0, seems
not to &e mu)h affe)ted, as has already &een o&ser'ed, &y the
ri)hes or +o'erty, the ad'an)in*, stationary, or de)linin* state
of the so)iety- Su)h re'olutions in the +u&li) (elfare, thou*h
they affe)t the *eneral rates &oth of (a*es and +rofit, must in
the end affe)t them equally in all different em+loyments- The
+ro+ortion &et(een them, therefore, must remain the same, and
)annot (ell &e altered, at least for any )onsidera&le time, &y
any su)h re'olutions-
C#AT$R II
Of the Rent of !and
R$NT, )onsidered as the +ri)e +aid for the use of land, is
naturally the hi*hest (hi)h the tenant )an afford to +ay in the
a)tual )ir)umstan)es of the land- In ad2ustin* the terms of the
lease, the landlord endea'ours to lea'e him no *reater share of
the +rodu)e than (hat is suffi)ient to 0ee+ u+ the sto)0 from
(hi)h he furnishes the seed, +ays the la&our, and +ur)hases and
maintains the )attle and other instruments of hus&andry, to*ether
(ith the ordinary +rofits of farmin* sto)0 in the nei*h&ourhood-
This is e'idently the smallest share (ith (hi)h the tenant )an
)ontent himself (ithout &ein* a loser, and the landlord seldom
means to lea'e him any more- Whate'er +art of the +rodu)e, or,
(hat is the same thin*, (hate'er +art of its +ri)e is o'er and
a&o'e this share, he naturally endea'ours to reser'e to himself
as the rent of his land, (hi)h is e'idently the hi*hest the
tenant )an afford to +ay in the a)tual )ir)umstan)es of the land-
Sometimes, indeed, the li&erality, more frequently the i*noran)e,
of the landlord, ma0es him a))e+t of some(hat less than this
+ortion/ and sometimes too, thou*h more rarely, the i*noran)e of
the tenant ma0es him underta0e to +ay some(hat more, or to
)ontent himself (ith some(hat less than the ordinary +rofits of
farmin* sto)0 in the nei*h&ourhood- This +ortion, ho(e'er, may
still &e )onsidered as the natural rent of land, or the rent for
(hi)h it is naturally meant that land should for the most +art &e
let-
The rent of land, it may &e thou*ht, is frequently no more
than a reasona&le +rofit or interest for the sto)0 laid out &y
the landlord u+on its im+ro'ement- This, no dou&t, may &e +artly
the )ase u+on some o))asions/ for it )an s)ar)e e'er &e more than
+artly the )ase- The landlord demands a rent e'en for unim+ro'ed
land, and the su++osed interest or +rofit u+on the e1+ense of
im+ro'ement is *enerally an addition to this ori*inal rent- Those
im+ro'ements, &esides, are not al(ays made &y the sto)0 of the
landlord, &ut sometimes &y that of the tenant- When the lease
)omes to &e rene(ed, ho(e'er, the landlord )ommonly demands the
same au*mentation of rent as if they had &een all made &y his
o(n-
#e sometimes demands rent for (hat is alto*ether in)a+a&le
of human im+ro'ement- %el+ is a s+e)ies of sea8(eed, (hi)h, (hen
&urnt, yields an al0aline salt, useful for ma0in* *lass, soa+,
and for se'eral other +ur+oses- It *ro(s in se'eral +arts of
6reat .ritain, +arti)ularly in S)otland, u+on su)h ro)0s only as
lie (ithin the hi*h (ater mar0, (hi)h are t(i)e e'ery day )o'ered
(ith the sea, and of (hi)h the +rodu)e, therefore, (as ne'er
au*mented &y human industry- The landlord, ho(e'er, (hose estate
is &ounded &y a 0el+ shore of this 0ind, demands a rent for it as
mu)h as for his )orn fields-
The sea in the nei*h&ourhood of the islands of Shetland is
more than )ommonly a&undant in fish, (hi)h ma0es a *reat +art of
the su&sisten)e of their inha&itants- .ut in order to +rofit &y
the +rodu)e of the (ater, they must ha'e a ha&itation u+on the
nei*h&ourin* land- The rent of the landlord is in +ro+ortion, not
to (hat the farmer )an ma0e &y the land, &ut to (hat he )an ma0e
&oth &y the land and &y the (ater- It is +artly +aid in sea8fish/
and one of the 'ery fe( instan)es in (hi)h rent ma0es a +art of
the +ri)e of that )ommodity is to &e found in that )ountry-
The rent of the land, therefore, )onsidered as the +ri)e
+aid for the use of the land, is naturally a mono+oly +ri)e- It
is not at all +ro+ortioned to (hat the landlord may ha'e laid out
u+on the im+ro'ement of the land, or to (hat he )an afford to
ta0e/ &ut to (hat the farmer )an afford to *i'e-
Su)h +arts only of the +rodu)e of land )an )ommonly &e
&rou*ht to mar0et of (hi)h the ordinary +ri)e is suffi)ient to
re+la)e the sto)0 (hi)h must &e em+loyed in &rin*in* them
thither, to*ether (ith its ordinary +rofits- If the ordinary
+ri)e is more than this, the sur+lus +art of it (ill naturally *o
to the rent of land- If it is not more, thou*h the )ommodity may
&e &rou*ht to mar0et, it )an afford no rent to the landlord-
Whether the +ri)e is or is not more de+ends u+on the demand-
There are some +arts of the +rodu)e of land for (hi)h the
demand must al(ays &e su)h as to afford a *reater +ri)e than (hat
is suffi)ient to &rin* them to mar0et/ and there are others for
(hi)h it either may or may not &e su)h as to afford this *reater
+ri)e- The former must al(ays afford a rent to the landlord- The
latter sometimes may, and sometimes may not, a))ordin* to
different )ir)umstan)es-
Rent, it is to &e o&ser'ed, therefore, enters into the
)om+osition of the +ri)e of )ommodities in a different (ay from
(a*es and +rofit- #i*h or lo( (a*es and +rofit are the )auses of
hi*h or lo( +ri)e/ hi*h or lo( rent is the effe)t of it- It is
&e)ause hi*h or lo( (a*es and +rofit must &e +aid, in order to
&rin* a +arti)ular )ommodity to mar0et, that its +ri)e is hi*h or
lo(- .ut it is &e)ause its +ri)e is hi*h or lo(/ a *reat deal
more, or 'ery little more, or no more, than (hat is suffi)ient to
+ay those (a*es and +rofit, that it affords a hi*h rent, or a lo(
rent, or no rent at all-
The +arti)ular )onsideration, first, of those +arts of the
+rodu)e of land (hi)h al(ays afford some rent/ se)ondly, of those
(hi)h sometimes may and sometimes may not afford rent/ and,
thirdly, of the 'ariations (hi)h, in the different +eriods of
im+ro'ement, naturally ta0e +la)e in the relati'e 'alue of those
t(o different sorts of rude +rodu)e, (hen )om+ared &oth (ith one
another and (ith manufa)tured )ommodities, (ill di'ide this
)ha+ter into three +arts-
ART 1
Of the rodu)e of !and (hi)h al(ays affords Rent
AS men, li0e all other animals, naturally multi+ly in
+ro+ortion to the means of their su&sisten)e, food is al(ays,
more or less, in demand- It )an al(ays +ur)hase or )ommand a
*reater or smaller quantity of la&our, and some&ody )an al(ays &e
found (ho is (illin* to do somethin* in order to o&tain it- The
quantity of la&our, indeed, (hi)h it )an +ur)hase is not al(ays
equal to (hat it )ould maintain, if mana*ed in the most
e)onomi)al manner, on a))ount of the hi*h (a*es (hi)h are
sometimes *i'en to la&our- .ut it )an al(ays +ur)hase su)h a
quantity of la&our as it )an maintain, a))ordin* to the rate at
(hi)h the sort of la&our is )ommonly maintained in the
nei*h&ourhood-
.ut land, in almost any situation, +rodu)es a *reater
quantity of food than (hat is suffi)ient to maintain all the
la&our ne)essary for &rin*in* it to mar0et in the most li&eral
(ay in (hi)h that la&our is e'er maintained- The sur+lus, too, is
al(ays more than suffi)ient to re+la)e the sto)0 (hi)h em+loyed
that la&our, to*ether (ith its +rofits- Somethin*, therefore,
al(ays remains for a rent to the landlord-
The most desert moors in Nor(ay and S)otland +rodu)e some
sort of +asture for )attle, of (hi)h the mil0 and the in)rease
are al(ays more than suffi)ient, not only to maintain all the
la&our ne)essary for tendin* them, and to +ay the ordinary +rofit
to the farmer or o(ner of the herd or flo)0/ &ut to afford some
small rent to the landlord- The rent in)reases in +ro+ortion to
the *oodness of the +asture- The same e1tent of *round not only
maintains a *reater num&er of )attle, &ut as they are &rou*ht
(ithin a smaller )om+ass, less la&our &e)omes requisite to tend
them, and to )olle)t their +rodu)e- The landlord *ains &oth (ays,
&y the in)rease of the +rodu)e and &y the diminution of the
la&our (hi)h must &e maintained out of it-
The rent of land not only 'aries (ith its fertility,
(hate'er &e its +rodu)e, &ut (ith its situation, (hate'er &e its
fertility- !and in the nei*h&ourhood of a to(n *i'es a *reater
rent than land equally fertile in a distant +art of the )ountry-
Thou*h it may )ost no more la&our to )ulti'ate the one than the
other, it must al(ays )ost more to &rin* the +rodu)e of the
distant land to mar0et- A *reater quantity of la&our, therefore,
must &e maintained out of it/ and the sur+lus, from (hi)h are
dra(n &oth the +rofit of the farmer and the rent of the landlord,
must &e diminished- .ut in remote +arts of the )ountry the rate
of +rofits, as has already &een sho(n, is *enerally hi*her than
in the nei*h&ourhood of a lar*e to(n- A smaller +ro+ortion of
this diminished sur+lus, therefore, must &elon* to the landlord-
6ood roads, )anals, and na'i*a&le ri'ers, &y diminishin* the
e1+ense of )arria*e, +ut the remote +arts of the )ountry more
nearly u+on a le'el (ith those in the nei*h&ourhood of the to(n-
They are u+on that a))ount the *reatest of all im+ro'ements- They
en)oura*e the )ulti'ation of the remote, (hi)h must al(ays &e the
most e1tensi'e )ir)le of the )ountry- They are ad'anta*eous to
the to(n, &y &rea0in* do(n the mono+oly of the )ountry in its
nei*h&ourhood- They are ad'anta*eous e'en to that +art of the
)ountry- Thou*h they introdu)e some ri'al )ommodities into the
old mar0et, they o+en many ne( mar0ets to its +rodu)e- 4ono+oly,
&esides, is a *reat enemy to *ood mana*ement, (hi)h )an ne'er &e
uni'ersally esta&lished &ut in )onsequen)e of that free and
uni'ersal )om+etition (hi)h for)es e'ery&ody to ha'e re)ourse to
it for the sa0e of self8defen)e- It is not more than fifty years
a*o that some of the )ounties in the nei*h&ourhood of !ondon
+etitioned the arliament a*ainst the e1tension of the turn+i0e
roads into the remoter )ounties- Those remoter )ounties, they
+retended, from the )hea+ness of la&our, (ould &e a&le to sell
their *rass and )orn )hea+er in the !ondon mar0et than
themsel'es, and (ould there&y redu)e their rents, and ruin their
)ulti'ation- Their rents, ho(e'er, ha'e risen, and their
)ulti'ation has &een im+ro'ed sin)e that time-
A )ornfield of moderate fertility +rodu)es a mu)h *reater
quantity of food for man than the &est +asture of equal e1tent-
Thou*h its )ulti'ation requires mu)h more la&our, yet the sur+lus
(hi)h remains after re+la)in* the seed and maintainin* all that
la&our, is li0e(ise mu)h *reater- If a +ound of &ut)her=s meat,
therefore, (as ne'er su++osed to &e (orth more than a +ound of
&read, this *reater sur+lus (ould e'ery(here &e of *reater 'alue,
and )onstitute a *reater fund &oth for the +rofit of the farmer
and the rent of the landlord- It seems to ha'e done so
uni'ersally in the rude &e*innin*s of a*ri)ulture-
.ut the relati'e 'alues of those t(o different s+e)ies of
food, &read and &ut)her=s meat, are 'ery different in the
different +eriods of a*ri)ulture- In its rude &e*innin*s, the
unim+ro'ed (ilds, (hi)h then o))u+y the far *reater +art of the
)ountry, are all a&andoned to )attle- There is more &ut)her=s
meat than &read, and &read, therefore, is the food for (hi)h
there is the *reatest )om+etition, and (hi)h )onsequently &rin*s
the *reatest +ri)e- At .uenos Ayres, (e are told &y Ulloa, four
reals, one8and8t(enty +en)e half+enny sterlin*, (as, forty or
fifty years a*o, the ordinary +ri)e of an o1, )hosen from a herd
of t(o or three hundred- #e says nothin* of the +ri)e of &read,
+ro&a&ly &e)ause he found nothin* remar0a&le a&out it- An o1
there, he says, )ost little more than the la&our of )at)hin* him-
.ut )orn )an no(here &e raised (ithout a *reat deal of la&our,
and in a )ountry (hi)h lies u+on the ri'er late, at that time
the dire)t road from $uro+e to the sil'er mines of otosi, the
money +ri)e of la&our )ould not &e 'ery )hea+- It is other(ise
(hen )ulti'ation is e1tended o'er the *reater +art of the
)ountry- There is then more &read than &ut)her=s meat- The
)om+etition )han*es its dire)tion, and the +ri)e of &ut)her=s
meat &e)omes *reater than the +ri)e of &read-
.y the e1tension &esides of )ulti'ation, the unim+ro'ed
(ilds &e)ome insuffi)ient to su++ly the demand for &ut)her=s
meat- A *reat +art of the )ulti'ated lands must &e em+loyed in
rearin* and fattenin* )attle, of (hi)h the +ri)e, therefore, must
&e suffi)ient to +ay, not only the la&our ne)essary for tendin*
them, &ut the rent (hi)h the landlord and the +rofit (hi)h the
farmer )ould ha'e dra(n from su)h land em+loyed in tilla*e- The
)attle &red u+on the most un)ulti'ated moors, (hen &rou*ht to the
same mar0et, are, in +ro+ortion to their (ei*ht or *oodness, sold
at the same +ri)e as those (hi)h are reared u+on the most
im+ro'ed land- The +ro+rietors of those moors +rofit &y it, and
raise the rent of their land in +ro+ortion to the +ri)e of their
)attle- It is not more than a )entury a*o that in many +arts of
the hi*hlands of S)otland, &ut)her=s meat (as as )hea+ or )hea+er
than e'en &read made of oatmeal- The union o+ened the mar0et of
$n*land to the hi*hland )attle- Their ordinary +ri)e is at
+resent a&out three times *reater than at the &e*innin* of the
)entury, and the rents of many hi*hland estates ha'e &een tri+led
and quadru+led in the same time- In almost e'ery +art of 6reat
.ritain a +ound of the &est &ut)her=s meat is, in the +resent
times, *enerally (orth more than t(o +ounds of the &est (hite
&read/ and in +lentiful years it is sometimes (orth three or four
+ounds-
It is thus that in the +ro*ress of im+ro'ement the rent and
+rofit of unim+ro'ed +asture )ome to &e re*ulated in some measure
&y the rent and +rofit of (hat is im+ro'ed, and these a*ain &y
the rent and +rofit of )orn- Corn is an annual )ro+- .ut)her=s
meat, a )ro+ (hi)h requires four or fi'e years to *ro(- As an
a)re of land, therefore, (ill +rodu)e a mu)h smaller quantity of
the one s+e)ies of food than of the other, the inferiority of the
quantity must &e )om+ensated &y the su+eriority of the +ri)e- If
it (as more than )om+ensated, more )orn land (ould &e turned into
+asture/ and if it (as not )om+ensated, +art of (hat (as in
+asture (ould &e &rou*ht &a)0 into )orn-
This equality, ho(e'er, &et(een the rent and +rofit of *rass
and those of )orn/ of the land of (hi)h the immediate +rodu)e is
food for )attle, and of that of (hi)h the immediate +rodu)e is
food for men/ must &e understood to ta0e +la)e only throu*h the
*reater +art of the im+ro'ed lands of a *reat )ountry- In some
+arti)ular lo)al situations it is quite other(ise, and the rent
and +rofit of *rass are mu)h su+erior to (hat )an &e made &y
)orn-
Thus in the nei*h&ourhood of a *reat to(n the demand for
mil0 and for fora*e to horses frequently )ontri&ute, to*ether
(ith the hi*h +ri)e of &ut)her=s meat, to raise the 'alue of
*rass a&o'e (hat may &e )alled its natural +ro+ortion to that of
)orn- This lo)al ad'anta*e, it is e'ident, )annot &e )ommuni)ated
to the lands at a distan)e-
arti)ular )ir)umstan)es ha'e sometimes rendered some
)ountries so +o+ulous that the (hole territory, li0e the lands in
the nei*h&ourhood of a *reat to(n, has not &een suffi)ient to
+rodu)e &oth the *rass and the )orn ne)essary for the su&sisten)e
of their inha&itants- Their lands, therefore, ha'e &een
+rin)i+ally em+loyed in the +rodu)tion of *rass, the more &ul0y
)ommodity, and (hi)h )annot &e so easily &rou*ht from a *reat
distan)e/ and )orn, the food of the *reat &ody of the +eo+le, has
&een )hiefly im+orted from forei*n )ountries- #olland is at
+resent in this situation, and a )onsidera&le +art of an)ient
Italy seems to ha'e &een so durin* the +ros+erity of the Romans-
To feed (ell, old Cato said, as (e are told &y Ci)ero, (as the
first and most +rofita&le thin* in the mana*ement of a +ri'ate
estate/ to feed tolera&ly (ell, the se)ond/ and to feed ill, the
third- To +lou*h, he ran0ed only in the fourth +la)e of +rofit
and ad'anta*e- Tilla*e, indeed, in that +art of an)ient Italy
(hi)h lay in the nei*h&ourhood of Rome, must ha'e &een 'ery mu)h
dis)oura*ed &y the distri&utions of )orn (hi)h (ere frequently
made to the +eo+le, either *ratuitously, or at a 'ery lo( +ri)e-
This )orn (as &rou*ht from the )onquered +ro'in)es, of (hi)h
se'eral, instead of ta1es, (ere o&li*ed to furnish a tenth +art
of their +rodu)e at a stated +ri)e, a&out si1+en)e a +e)0, to the
re+u&li)- The lo( +ri)e at (hi)h this )orn (as distri&uted to the
+eo+le must ne)essarily ha'e sun0 the +ri)e of (hat )ould &e
&rou*ht to the Roman mar0et from !atium, or the an)ient territory
of Rome, and must ha'e dis)oura*ed its )ulti'ation in that
)ountry-
In an o+en )ountry too, of (hi)h the +rin)i+al +rodu)e is
)orn, a (ell8en)losed +ie)e of *rass (ill frequently rent hi*her
than any )orn field in its nei*h&ourhood- It is )on'enient for
the maintenan)e of the )attle em+loyed in the )ulti'ation of the
)orn, and its hi*h rent is, in this )ase, not so +ro+erly +aid
from the 'alue of its o(n +rodu)e as from that of the )orn lands
(hi)h are )ulti'ated &y means of it- It is li0ely to fall, if
e'er the nei*h&ourin* lands are )om+letely en)losed- The +resent
hi*h rent of en)losed land in S)otland seems o(in* to the
s)ar)ity of en)losure, and (ill +ro&a&ly last no lon*er than that
s)ar)ity- The ad'anta*e of en)losure is *reater for +asture than
for )orn- It sa'es the la&our of *uardin* the )attle, (hi)h feed
&etter, too, (hen they are not lia&le to &e distur&ed &y their
0ee+er or his do*-
.ut (here there is no lo)al ad'anta*e of this 0ind, the rent
and +rofit of )orn, or (hate'er else is the )ommon 'e*eta&le food
or the +eo+le, must naturally re*ulate, u+on the land (hi)h is
fit for +rodu)in* it, the rent and +rofit of +asture-
The use of the artifi)ial *rasses, of turni+s, )arrots,
)a&&a*es, and the other e1+edients (hi)h ha'e &een fallen u+on to
ma0e an equal quantity of land feed a *reater num&er of )attle
than (hen in natural *rass, should some(hat redu)e, it mi*ht &e
e1+e)ted, the su+eriority (hi)h, in an im+ro'ed )ountry, the
+ri)e of &ut)her=s meat naturally has o'er that of &read- It
seems a))ordin*ly to ha'e done so/ and there is some reason for
&elie'in* that, at least in the !ondon mar0et, the +ri)e of
&ut)her=s meat in +ro+ortion to the +ri)e of &read is a *ood deal
lo(er in the +resent times than it (as in the &e*innin* of the
last )entury-
In the a++endi1 to the !ife of rin)e #enry, Do)tor .ir)h
has *i'en us an a))ount of the +ri)es of &ut)her=s meat as
)ommonly +aid &y that +rin)e- It is there said that the four
quarters of an o1 (ei*hin* si1 hundred +ounds usually )ost him
nine +ounds ten shillin*s, or therea&outs/ that is, thirty8one
shillin*s and ei*ht+en)e +er hundred +ounds (ei*ht- rin)e #enry
died on the 6th of No'em&er 161E, in the nineteenth year of his
a*e-
In 4ar)h 176G, there (as a arliamentary inquiry into the
)auses of the hi*h +ri)e of +ro'isions at that time- It (as then,
amon* other +roof to the same +ur+ose, *i'en in e'iden)e &y a
5ir*inia mer)hant, that in 4ar)h 176B, he had 'i)tualled his
shi+s for t(enty8four or t(enty8fi'e shillin*s the hundred(ei*ht
of &eef, (hi)h he )onsidered as the ordinary +ri)e/ (hereas, in
that dear year, he had +aid t(enty8se'en shillin*s for the same
(ei*ht and sort- This hi*h +ri)e in 176G is, ho(e'er, four
shillin*s and ei*ht+en)e )hea+er than the ordinary +ri)e +aid &y
rin)e #enry/ and it is the &est &eef only, it must &e o&ser'ed,
(hi)h is fit to &e salted for those distant 'oya*es-
The +ri)e +aid &y rin)e #enry amounts to B BDGd- +er +ound
(ei*ht of the (hole )ar)ase, )oarse and )hoi)e +ie)es ta0en
to*ether/ and at that rate the )hoi)e +ie)es )ould not ha'e &een
sold &y retail for less than G 1DEd- or Hd- the +ound-
In the arliamentary inquiry in 176G, the (itnesses stated
the +ri)e of the )hoi)e +ie)es of the &est &eef to &e to the
)onsumer Gd- and G 1DGd- the +ound/ and the )oarse +ie)es in
*eneral to &e from se'en farthin*s to E 1DEd- and this they said
(as in *eneral one half+enny dearer than the same sort of +ie)es
had usually &een sold in the month of 4ar)h- .ut e'en this hi*h
+ri)e is still a *ood deal )hea+er than (hat (e )an (ell su++ose
the ordinary retail +ri)e to ha'e &een the time of rin)e #enry-
Durin* the t(el'e first years of the last )entury, the
a'era*e +ri)e of the &est (heat at the Windsor mar0et (as !1 1?s-
B 1D6d- the quarter of nine Win)hester &ushels-
.ut in the t(el'e years +re)edin* 176G, in)ludin* that year,
the a'era*e +ri)e of the same measure of the &est (heat at the
same mar0et (as !E 1s- F 1DEd-
In the t(el'e first years of the last )entury, therefore,
(heat a++ears to ha'e &een a *ood deal )hea+er, and &ut)her=s
meat a *ood deal dearer, than in the t(el'e years +re)edin* 176G,
in)ludin* that year-
In all *reat )ountries the *reater +art of the )ulti'ated
lands are em+loyed in +rodu)in* either food for men or food for
)attle- The rent and +rofit of these re*ulate the rent and +rofit
of all other )ulti'ated land- If any +arti)ular +rodu)e afforded
less, the land (ould soon &e turned into )orn or +asture/ and if
any afforded more, some +art of the lands in )orn or +asture
(ould soon &e turned to that +rodu)e-
Those +rodu)tions, indeed, (hi)h require either a *reater
ori*inal e1+ense of im+ro'ement, or a *reater annual e1+ense of
)ulti'ation, in order to fit the land for them, a++ear )ommonly
to afford, the one a *reater rent, the other a *reater +rofit
than )orn or +asture- This su+eriority, ho(e'er, (ill seldom &e
found to amount to more than a reasona&le interest or
)om+ensation for this su+erior e1+ense-
In a ho+ *arden, a fruit *arden, a 0it)hen *arden, &oth the
rent of the landlord, and the +rofit of the farmer, are *enerally
*reater than in a )orn or *rass field- .ut to &rin* the *round
into this )ondition requires more e1+ense- #en)e a *reater rent
&e)omes due to the landlord- It requires, too, a more attenti'e
and s0ilful mana*ement- #en)e a *reater +rofit &e)omes due to the
farmer- The )ro+ too, at least in the ho+ and fruit *arden, is
more +re)arious- Its +ri)e, therefore, &esides )om+ensatin* all
o))asional losses, must afford somethin* li0e the +rofit of
insuran)e- The )ir)umstan)es of *ardeners, *enerally mean, and
al(ays moderate, may satisfy us that their *reat in*enuity is not
)ommonly o'er8re)om+ensed- Their deli*htful art is +ra)tised &y
so many ri)h +eo+le for amusement, that little ad'anta*e is to &e
made &y those (ho +ra)tise it for +rofit/ &e)ause the +ersons (ho
should naturally &e their &est )ustomers su++ly themsel'es (ith
all their most +re)ious +rodu)tions-
The ad'anta*e (hi)h the landlord deri'es from su)h
im+ro'ements seems at no time to ha'e &een *reater than (hat (as
suffi)ient to )om+ensate the ori*inal e1+ense of ma0in* them- In
the an)ient hus&andry, after the 'ineyard, a (ell8(atered 0it)hen
*arden seems to ha'e &een the +art of the farm (hi)h (as su++osed
to yield the most 'alua&le +rodu)e- .ut Demo)ritus, (ho (rote
u+on hus&andry a&out t(o thousand years a*o, and (ho (as re*arded
&y the an)ients as one of the fathers of the art, thou*ht they
did not a)t (isely (ho en)losed a 0it)hen *arden- The +rofit, he
said, (ould not )om+ensate the e1+ense of a stone (all/ and
&ri)0s 9he meant, I su++ose, &ri)0s &a0ed in the sun: mouldered
(ith the rain, and the (inter storm, and required )ontinual
re+airs- Columella, (ho re+orts this 2ud*ment of Demo)ritus, does
not )ontro'ert it, &ut +ro+oses a 'ery fru*al method of en)losin*
(ith a hed*e of &ram&les and &riars, (hi)h, he says, he had found
&y e1+erien)e to &e &oth a lastin* and an im+enetra&le fen)e/ &ut
(hi)h, it seems, (as not )ommonly 0no(n in the time of
Demo)ritus- alladius ado+ts the o+inion of Columella, (hi)h had
&efore &een re)ommended &y 5arro- In the 2ud*ment of those
an)ient im+ro'ers, the +rodu)e of a 0it)hen *arden had, it seems,
&een little more than suffi)ient to +ay the e1traordinary )ulture
and the e1+ense of (aterin*/ for in )ountries so near the sun, it
(as thou*ht +ro+er, in those times as in the +resent, to ha'e the
)ommand of a stream of (ater (hi)h )ould &e )ondu)ted to e'ery
&ed in the *arden- Throu*h the *reater +art of $uro+e a 0it)hen
*arden is not at +resent su++osed to deser'e a &etter en)losure
than that re)ommended &y Columella- In 6reat .ritain, and some
other northern )ountries, the finer fruits )annot &e &rou*ht to
+erfe)tion &ut &y the assistan)e of a (all- Their +ri)e,
therefore, in su)h )ountries must &e suffi)ient to +ay the
e1+ense of &uildin* and maintainin* (hat they )annot &e had
(ithout- The fruit8(all frequently surrounds the 0it)hen *arden,
(hi)h thus en2oys the &enefit of an en)losure (hi)h its o(n
+rodu)e )ould seldom +ay for-
That the 'ineyard, (hen +ro+erly +lanted and &rou*ht to
+erfe)tion, (as the most 'alua&le +art of the farm, seems to ha'e
&een an undou&ted ma1im in the an)ient a*ri)ulture, as it is in
the modern throu*h all the (ine )ountries- .ut (hether it (as
ad'anta*eous to +lant a ne( 'ineyard (as a matter of dis+ute
amon* the an)ient Italian hus&andmen, as (e learn from Columella-
#e de)ides, li0e a true lo'er of all )urious )ulti'ation, in
fa'our of the 'ineyard, and endea'ours to sho(, &y a )om+arison
of the +rofit and e1+ense, that it (as a most ad'anta*eous
im+ro'ement- Su)h )om+arisons, ho(e'er, &et(een the +rofit and
e1+ense of ne( +ro2e)ts are )ommonly 'ery falla)ious, and in
nothin* more so than in a*ri)ulture- #ad the *ain a)tually made
&y su)h +lantations &een )ommonly as *reat as he ima*ined it
mi*ht ha'e &een, there )ould ha'e &een no dis+ute a&out it- The
same +oint is frequently at this day a matter of )ontro'ersy in
the (ine )ountries- Their (riters on a*ri)ulture, indeed, the
lo'ers and +romoters of hi*h )ulti'ation, seem *enerally dis+osed
to de)ide (ith Columella in fa'our of the 'ineyard- In "ran)e the
an1iety of the +ro+rietors of the old 'ineyards to +re'ent the
+lantin* of any ne( ones, seems to fa'our their o+inion, and to
indi)ate a )ons)iousness in those (ho must ha'e the e1+erien)e
that this s+e)ies of )ulti'ation is at +resent in that )ountry
more +rofita&le than any other- It seems at the same time,
ho(e'er, to indi)ate another o+inion, that this su+erior +rofit
)an last no lon*er than the la(s (hi)h at +resent restrain the
free )ulti'ation of the 'ine- In 17B1, they o&tained an order of
)oun)il +rohi&itin* &oth the +lantin* of ne( 'ineyards and the
rene(al of those old ones, of (hi)h the )ulti'ation had &een
interru+ted for t(o years, (ithout a +arti)ular +ermission from
the 0in*, to &e *ranted only in )onsequen)e of an information
from the intendant of the +ro'in)e, )ertifyin* that he had
e1amined the land, and that it (as in)a+a&le of any other
)ulture- The +reten)e of this order (as the s)ar)ity of )orn and
+asture, and the su+era&undan)e of (ine- .ut had this
su+era&undan)e &een real, it (ould, (ithout any order of )oun)il,
ha'e effe)tually +re'ented the +lantation of ne( 'ineyards, &y
redu)in* the +rofits of this s+e)ies of )ulti'ation &elo( their
natural +ro+ortion to those of )orn and +asture- With re*ard to
the su++osed s)ar)ity of )orn, o))asioned &y the multi+li)ation
of 'ineyards, )orn is no(here in "ran)e more )arefully )ulti'ated
than in the (ine +ro'in)es, (here the land is fit for +rodu)in*
it/ as in .ur*undy, 6uienne, and the U++er !an*uedo)- The
numerous hands em+loyed in the one s+e)ies of )ulti'ation
ne)essarily en)oura*e the other, &y affordin* a ready mar0et for
its +rodu)e- To diminish the num&er of those (ho are )a+a&le of
+ayin* for it is surely a most un+romisin* e1+edient for
en)oura*in* the )ulti'ation of )orn- It is li0e the +oli)y (hi)h
(ould +romote a*ri)ulture &y dis)oura*in* manufa)tures-
The rent and +rofit of those +rodu)tions, therefore, (hi)h
require either a *reater ori*inal e1+ense of im+ro'ement in order
to fit the land for them, or a *reater annual e1+ense of
)ulti'ation, thou*h often mu)h su+erior to those of )orn and
+asture, yet (hen they do no more than )om+ensate su)h
e1traordinary e1+ense, are in reality re*ulated &y the rent and
+rofit of those )ommon )ro+s-
It sometimes ha++ens, indeed, that the quantity of land,
(hi)h )an &e fitted for some +arti)ular +rodu)e, is too small to
su++ly the effe)tual demand- The (hole +rodu)e )an &e dis+osed of
to those (ho are (illin* to *i'e some(hat more than (hat is
suffi)ient to +ay the (hole rent, (a*es, and +rofit ne)essary for
raisin* and &rin*in* it to mar0et, a))ordin* to their natural
rates, or a))ordin* to the rates at (hi)h they are +aid in the
*reater +art of other )ulti'ated land- The sur+lus +art of the
+ri)e (hi)h remains after defrayin* the (hole e1+ense of
im+ro'ement and )ulti'ation may )ommonly, in this )ase, and in
this )ase only, &ear no re*ular +ro+ortion to the li0e sur+lus in
)orn or +asture, &ut may e1)eed it in almost any de*ree/ and the
*reater +art of this e1)ess naturally *oes to the rent of the
landlord-
The usual and natural +ro+ortion, for e1am+le, &et(een the
rent and +rofit of (ine and those of )orn and +asture must &e
understood to ta0e +la)e only (ith re*ard to those 'ineyards
(hi)h +rodu)e nothin* &ut *ood )ommon (ine, su)h as )an &e raised
almost any(here, u+on any li*ht, *ra'elly, or sandy soil, and
(hi)h has nothin* to re)ommend it &ut its stren*th and
(holesomeness- It is (ith su)h 'ineyards only that the )ommon
land of the )ountry )an &e &rou*ht into )om+etition/ for (ith
those of a +e)uliar quality it is e'ident that it )annot-
The 'ine is more affe)ted &y the differen)e of soils than
any other fruit tree- "rom some it deri'es a fla'our (hi)h no
)ulture or mana*ement )an equal, it is su++osed, u+on any other-
This fla'our, real or ima*inary, is sometimes +e)uliar to the
+rodu)e of a fe( 'ineyards/ sometimes it e1tends throu*h the
*reater +art of a small distri)t, and sometimes throu*h a
)onsidera&le +art of a lar*e +ro'in)e- The (hole quantity of su)h
(ines that is &rou*ht to mar0et falls short of the effe)tual
demand, or the demand of those (ho (ould &e (illin* to +ay the
(hole rent, +rofit, and (a*es, ne)essary for +re+arin* and
&rin*in* them thither, a))ordin* to the ordinary rate, or
a))ordin* to the rate at (hi)h they are +aid in )ommon 'ineyards-
The (hole quantity, therefore, )an &e dis+osed of to those (ho
are (illin* to +ay more, (hi)h ne)essarily raises the +ri)e a&o'e
that of )ommon (ine- The differen)e is *reater or less a))ordin*
as the fashiona&leness and s)ar)ity of the (ine render the
)om+etition of the &uyers more or less ea*er- Whate'er it &e, the
*reater +art of it *oes to the rent of the landlord- "or thou*h
su)h 'ineyards are in *eneral more )arefully )ulti'ated than most
others, the hi*h +ri)e of the (ine seems to &e not so mu)h the
effe)t as the )ause of this )areful )ulti'ation- In so 'alua&le a
+rodu)e the loss o))asioned &y ne*li*en)e is so *reat as to for)e
e'en the most )areless to attention- A small +art of this hi*h
+ri)e, therefore, is suffi)ient to +ay the (a*es of the
e1traordinary la&our &esto(ed u+on their )ulti'ation, and the
+rofits of the e1traordinary sto)0 (hi)h +uts that la&our into
motion-
The su*ar )olonies +ossessed &y the $uro+ean nations in the
West Indies may &e )om+ared to those +re)ious 'ineyards- Their
(hole +rodu)e falls short of the effe)tual demand of $uro+e, and
)an &e dis+osed of to those (ho are (illin* to *i'e more than
(hat is suffi)ient to +ay the (hole rent, +rofit, and (a*es
ne)essary for +re+arin* and &rin*in* it to mar0et, a))ordin* to
the rate at (hi)h they are )ommonly +aid &y any other +rodu)e- In
Co)hin China the finest (hite su*ar )ommonly sells for three
+iasters the quintal, a&out thirteen shillin*s and si1+en)e of
our money, as (e are told &y 4r- oi're, a 'ery )areful o&ser'er
of the a*ri)ulture of that )ountry- What is there )alled the
quintal (ei*hs from a hundred and fifty to t(o hundred aris
+ounds, or a hundred and se'enty8fi'e aris +ounds at a medium,
(hi)h redu)es the +ri)e of the hundred8(ei*ht $n*lish to a&out
ei*ht shillin*s sterlin*, not a fourth +art of (hat is )ommonly
+aid for the &ro(n or mus0a'ada su*ars im+orted from our
)olonies, and not a si1th +art of (hat is +aid for the finest
(hite su*ar- The *reater +art of the )ulti'ated lands in Co)hin
China are em+loyed in +rodu)in* )orn and ri)e, the food of the
*reat &ody of the +eo+le- The res+e)ti'e +ri)es of )orn, ri)e,
and su*ar, are there +ro&a&ly in the natural +ro+ortion, or in
that (hi)h naturally ta0es +la)e in the different )ro+s of the
*reater +art of )ulti'ated land, and (hi)h re)om+enses the
landlord and farmer, as nearly as )an &e )om+uted a))ordin* to
(hat is usually the ori*inal e1+ense of im+ro'ement and the
annual e1+ense of )ulti'ation- .ut in our su*ar )olonies the
+ri)e of su*ar &ears no su)h +ro+ortion to that of the +rodu)e of
a ri)e or )orn field either in $uro+e or in Ameri)a- It is
)ommonly said that a su*ar +lanter e1+e)ts that the rum and
molasses should defray the (hole e1+ense of his )ulti'ation, and
that his su*ar should &e all )lear +rofit- If this &e true, for I
+retend not to affirm it, it is as if a )orn farmer e1+e)ted to
defray the e1+ense of his )ulti'ation (ith the )haff and the
stra(, and that the *rain should &e all )lear +rofit- We see
frequently so)ieties of mer)hants in !ondon and other tradin*
to(n=s +ur)hase (aste lands in our su*ar )olonies, (hi)h they
e1+e)t to im+ro'e and )ulti'ate (ith +rofit &y means of fa)tors
and a*ents, not(ithstandin* the *reat distan)e and the un)ertain
returns from the defe)ti'e administration of 2usti)e in those
)ountries- No&ody (ill attem+t to im+ro'e and )ulti'ate in the
same manner the most fertile lands of S)otland, Ireland, or the
)orn +ro'in)es of North Ameri)a, thou*h from the more e1a)t
administration of 2usti)e in these )ountries more re*ular returns
mi*ht &e e1+e)ted-
In 5ir*inia and 4aryland the )ulti'ation of to&a))o is
+referred, as more +rofita&le, to that of )orn- To&a))o mi*ht &e
)ulti'ated (ith ad'anta*e throu*h the *reater +art of $uro+e/ &ut
in almost e'ery +art of $uro+e it has &e)ome a +rin)i+al su&2e)t
of ta1ation, and to )olle)t a ta1 from e'ery different farm in
the )ountry (here this +lant mi*ht ha++en to &e )ulti'ated (ould
&e more diffi)ult, it has &een su++osed, than to le'y one u+on
its im+ortation at the )ustom8house- The )ulti'ation of to&a))o
has u+on this a))ount &een most a&surdly +rohi&ited throu*h the
*reater +art of $uro+e, (hi)h ne)essarily *i'es a sort of
mono+oly to the )ountries (here it is allo(ed/ and as 5ir*inia
and 4aryland +rodu)e the *reatest quantity of it, they share
lar*ely, thou*h (ith some )om+etitors, in the ad'anta*e of this
mono+oly- The )ulti'ation of to&a))o, ho(e'er, seems not to &e so
ad'anta*eous as that of su*ar- I ha'e ne'er e'en heard of any
to&a))o +lantation that (as im+ro'ed and )ulti'ated &y the
)a+ital of mer)hants (ho resided in 6reat .ritain, and our
to&a))o )olonies send us home no su)h (ealthy +lanters as (e see
frequently arri'e from our su*ar islands- Thou*h from the
+referen)e *i'en in those )olonies to the )ulti'ation of to&a))o
a&o'e that of )orn, it (ould a++ear that the effe)tual demand of
$uro+e for to&a))o is not )om+letely su++lied, it +ro&a&ly is
more nearly so than that for su*ar/ and thou*h the +resent +ri)e
of to&a))o is +ro&a&ly more than suffi)ient to +ay the (hole
rent, (a*es, and +rofit ne)essary for +re+arin* and &rin* it to
mar0et, a))ordin* to the rate at (hi)h they are )ommonly +aid in
)orn land, it must not &e so mu)h more as the +resent +ri)e of
su*ar- Our to&a))o +lanters, a))ordin*ly, ha'e sho(n the same
fear of the su+era&undan)e of to&a))o (hi)h the +ro+rietors of
the old 'ineyards in "ran)e ha'e of the su+era&undan)e of (ine-
.y a)t of assem&ly they ha'e restrained its )ulti'ation to si1
thousand +lants, su++osed to yield a thousand (ei*ht of to&a))o,
for e'ery ne*ro &et(een si1teen and si1ty years of a*e- Su)h a
ne*ro, o'er and a&o'e this quantity of to&a))o, )an mana*e, they
re)0on, four a)res of Indian )orn- To +re'ent the mar0et from
&ein* o'ersto)0ed, too, they ha'e sometimes, in +lentiful years,
(e are told &y Dr- Dou*las 9I sus+e)t he has &een ill informed:,
&urnt a )ertain quantity of to&a))o for e'ery ne*ro, in the same
manner as the Dut)h are said to do of s+i)es- If su)h 'iolent
methods are ne)essary to 0ee+ u+ the +resent +ri)e of to&a))o,
the su+erior ad'anta*e of its )ulture o'er that of )orn, if it
still has any, (ill not +ro&a&ly &e of lon* )ontinuan)e-
It is in this manner that the rent of the )ulti'ated land,
of (hi)h the +rodu)e is human food, re*ulates the rent of the
*reater +art of other )ulti'ated land- No +arti)ular +rodu)e )an
lon* afford less/ &e)ause the land (ould immediately &e turned to
another use- And if any +arti)ular +rodu)e )ommonly affords more,
it is &e)ause the quantity of land (hi)h )an &e fitted for it is
too small to su++ly the effe)tual demand-
In $uro+e, )orn is the +rin)i+al +rodu)e of land (hi)h
ser'es immediately for human food- $1)e+t in +arti)ular
situations, therefore, the rent of )orn land re*ulates in $uro+e
that of all other )ulti'ated land- .ritain need en'y neither the
'ineyards of "ran)e nor the oli'e +lantations of Italy- $1)e+t in
+arti)ular situations, the 'alue of these is re*ulated &y that of
)orn, in (hi)h the fertility of .ritain is not mu)h inferior to
that of either of those t(o )ountries-
If in any )ountry the )ommon and fa'ourite 'e*eta&le food of
the +eo+le should &e dra(n from a +lant of (hi)h the most )ommon
land, (ith the same or nearly the same )ulture, +rodu)ed a mu)h
*reater quantity than the most fertile does of )orn, the rent of
the landlord, or the sur+lus quantity of food (hi)h (ould remain
to him, after +ayin* the la&our and re+la)in* the sto)0 of the
farmer, to*ether (ith its ordinary +rofits, (ould ne)essarily &e
mu)h *reater- Whate'er (as the rate at (hi)h la&our (as )ommonly
maintained in that )ountry, this *reater sur+lus )ould al(ays
maintain a *reater quantity of it, and )onsequently ena&le the
landlord to +ur)hase or )ommand a *reater quantity of it- The
real 'alue of his rent, his real +o(er and authority, his )ommand
of the ne)essaries and )on'enien)ies of life (ith (hi)h the
la&our of other +eo+le )ould su++ly him, (ould ne)essarily &e
mu)h *reater-
A ri)e field +rodu)es a mu)h *reater quantity of food than
the most fertile )orn field- T(o )ro+s in the year from thirty to
si1ty &ushels ea)h, are said to &e the ordinary +rodu)e of an
a)re- Thou*h its )ulti'ation, therefore, requires more la&our, a
mu)h *reater sur+lus remains after maintainin* all that la&our-
In those ri)e )ountries, therefore, (here ri)e is the )ommon and
fa'ourite 'e*eta&le food of the +eo+le, and (here the )ulti'ators
are )hiefly maintained (ith it, a *reater share of this *reater
sur+lus should &elon* to the landlord than in )orn )ountries- In
Carolina, (here the +lanters, as in other .ritish )olonies, are
*enerally &oth farmers and landlords, and (here rent )onsequently
is )onfounded (ith +rofit, the )ulti'ation of ri)e is found to &e
more +rofita&le than that of )orn, thou*h their fields +rodu)e
only one )ro+ in the year, and thou*h, from the +re'alen)e of the
)ustoms of $uro+e, ri)e is not there the )ommon and fa'ourite
'e*eta&le food of the +eo+le-
A *ood ri)e field is a &o* at all seasons, and at one season
a &o* )o'ered (ith (ater- It is unfit either for )orn, or
+asture, or 'ineyard, or, indeed, for any other 'e*eta&le +rodu)e
that is 'ery useful to men/ and the lands (hi)h are fit for those
+ur+oses are not fit for ri)e- $'en in the ri)e )ountries,
therefore, the rent of ri)e lands )annot re*ulate the rent of the
other )ulti'ated land, (hi)h )an ne'er &e turned to that +rodu)e-
The food +rodu)ed &y a field of +otatoes is not inferior in
quantity to that +rodu)ed &y a field of ri)e, and mu)h su+erior
to (hat is +rodu)ed &y a field of (heat- T(el'e thousand (ei*ht
of +otatoes from an a)re of land is not a *reater +rodu)e than
t(o thousand (ei*ht of (heat- The food or solid nourishment,
indeed, (hi)h )an &e dra(n from ea)h of those t(o +lants, is not
alto*ether in +ro+ortion to their (ei*ht, on a))ount of the
(atery nature of +otatoes- Allo(in*, ho(e'er, half the (ei*ht of
this root to *o to (ater, a 'ery lar*e allo(an)e, su)h an a)re of
+otatoes (ill still +rodu)e si1 thousand (ei*ht of solid
nourishment, three times the quantity +rodu)ed &y the a)re of
(heat- An a)re of +otatoes is )ulti'ated (ith less e1+ense than
an a)re of (heat/ the fallo(, (hi)h *enerally +re)edes the so(in*
of (heat, more than )om+ensatin* the hoein* and other
e1traordinary )ulture (hi)h is al(ays *i'en to +otatoes- Should
this root e'er &e)ome in any +art of $uro+e, li0e ri)e in some
ri)e )ountries, the )ommon and fa'ourite 'e*eta&le food of the
+eo+le, so as to o))u+y the same +ro+ortion of the lands in
tilla*e (hi)h (heat and other sorts of *rain for human food do at
+resent, the same quantity of )ulti'ated land (ould maintain a
mu)h *reater num&er of +eo+le, and the la&ourers &ein* *enerally
fed (ith +otatoes, a *reater sur+lus (ould remain after re+la)in*
all the sto)0 and maintainin* all the la&our em+loyed in
)ulti'ation- A *reater share of this sur+lus, too, (ould &elon*
to the landlord- o+ulation (ould in)rease, and rents (ould rise
mu)h &eyond (hat they are at +resent-
The land (hi)h is fit for +otatoes is fit for almost e'ery
other useful 'e*eta&le- If they o))u+ied the same +ro+ortion of
)ulti'ated land (hi)h )orn does at +resent, they (ould re*ulate,
in the same manner, the rent of the *reater +art of other
)ulti'ated land-
In some +arts of !an)ashire it is +retended, I ha'e &een
told, that &read of oatmeal is a heartier food for la&ourin*
+eo+le than (heaten &read, and I ha'e frequently heard the same
do)trine held in S)otland- I am, ho(e'er, some(hat dou&tful of
the truth of it- The )ommon +eo+le in S)otland, (ho are fed (ith
oatmeal, are in *eneral neither so stron*, nor so handsome as the
same ran0 of +eo+le in $n*land (ho are fed (ith (heaten &read-
They neither (or0 so (ell, nor loo0 so (ell/ and as there is not
the same differen)e &et(een the +eo+le of fashion in the t(o
)ountries, e1+erien)e (ould seem to sho( that the food of the
)ommon +eo+le in S)otland is not so suita&le to the human
)onstitution as that of their nei*h&ours of the same ran0 in
$n*land- .ut it seems to &e other(ise (ith +otatoes- The
)hairmen, +orters, and )oalhea'ers in !ondon, and those
unfortunate (omen (ho li'e &y +rostitution, the stron*est men and
the most &eautiful (omen +erha+s in the .ritish dominions, are
said to &e the *reater +art of them from the lo(est ran0 of
+eo+le in Ireland, (ho are *enerally fed (ith this root- No food
)an afford a more de)isi'e +roof of its nourishin* quality, or of
its &ein* +e)uliarly suita&le to the health of the human
)onstitution-
It is diffi)ult to +reser'e +otatoes throu*h the year, and
im+ossi&le to store them li0e )orn, for t(o or three years
to*ether- The fear of not &ein* a&le to sell them &efore they rot
dis)oura*es their )ulti'ation, and is, +erha+s, the )hief
o&sta)le to their e'er &e)omin* in any *reat )ountry, li0e &read,
the +rin)i+al 'e*eta&le food of all the different ran0s of the
+eo+le-
ART E
Of the rodu)e of !and (hi)h sometimes does,
and sometimes does not, afford Rent
#U4AN food seems to &e the only +rodu)e of land (hi)h al(ays
and ne)essarily affords some rent to the landlord- Other sorts of
+rodu)e sometimes may and sometimes may not, a))ordin* to
different )ir)umstan)es-
After food, )lothin* and lod*in* are the t(o *reat (ants of
man0ind-
!and in its ori*inal rude state )an afford the materials of
)lothin* and lod*in* to a mu)h *reater num&er of +eo+le than it
)an feed- In its im+ro'ed state it )an sometimes feed a *reater
num&er of +eo+le than it )an su++ly (ith those materials/ at
least in the (ay in (hi)h they require them, and are (illin* to
+ay for them- In the one state, therefore, there is al(ays a
su+era&undan)e of those materials, (hi)h are frequently, u+on
that a))ount, of little or no 'alue- In the other there is often
a s)ar)ity, (hi)h ne)essarily au*ments their 'alue- In the one
state a *reat +art of them is thro(n a(ay as useless, and the
+ri)e of (hat is used is )onsidered as equal only to the la&our
and e1+ense of fittin* it for use, and )an, therefore, afford no
rent to the landlord- In the other they are all made use of, and
there is frequently a demand for more than )an &e had- Some&ody
is al(ays (illin* to *i'e more for e'ery +art of them than (hat
is suffi)ient to +ay the e1+ense of &rin*in* them to mar0et-
Their +ri)e, therefore, )an al(ays afford some rent to the
landlord-
The s0ins of the lar*er animals (ere the ori*inal materials
of )lothin*- Amon* nations of hunters and she+herds, therefore,
(hose food )onsists )hiefly in the flesh of those animals, e'ery
man, &y +ro'idin* himself (ith food, +ro'ides himself (ith the
materials of more )lothin* than he )an (ear- If there (as no
forei*n )ommer)e, the *reater +art of them (ould &e thro(n a(ay
as thin*s of no 'alue- This (as +ro&a&ly the )ase amon* the
huntin* nations of North Ameri)a &efore their )ountry (as
dis)o'ered &y the $uro+eans, (ith (hom they no( e1)han*e their
sur+lus +eltry for &lan0ets, fire8arms, and &randy, (hi)h *i'es
it some 'alue- In the +resent )ommer)ial state of the 0no(n
(orld, the most &ar&arous nations, I &elie'e, amon* (hom land
+ro+erty is esta&lished, ha'e some forei*n )ommer)e of this 0ind,
and find amon* their (ealthier nei*h&ours su)h a demand for all
the materials of )lothin* (hi)h their land +rodu)es, and (hi)h
)an neither &e (rou*ht u+ nor )onsumed at home, as raises their
+ri)e a&o'e (hat it )osts to send them to those (ealthier
nei*h&ours- It affords, therefore, some rent to the landlord-
When the *reater +art of the hi*hland )attle (ere )onsumed on
their o(n hills, the e1+ortation of their hides made the most
)onsidera&le arti)le of the )ommer)e of that )ountry, and (hat
they (ere e1)han*ed for afforded some addition to the rent of the
hi*hland estates- The (ool of $n*land, (hi)h in old times )ould
neither &e )onsumed nor (rou*ht u+ at home, found a mar0et in the
then (ealthier and more industrious )ountry of "landers, and its
+ri)e afforded somethin* to the rent of the land (hi)h +rodu)ed
it- In )ountries not &etter )ulti'ated than $n*land (as then, or
than the hi*hlands of S)otland are no(, and (hi)h had no forei*n
)ommer)e, the materials of )lothin* (ould e'idently &e so
su+era&undant that a *reat +art of them (ould &e thro(n a(ay as
useless, and no +art )ould afford any rent to the landlord-
The materials of lod*in* )annot al(ays &e trans+orted to so
*reat a distan)e as those of )lothin*, and do not so readily
&e)ome an o&2e)t of forei*n )ommer)e- When they are su+era&undant
in the )ountry (hi)h +rodu)es them, it frequently ha++ens, e'en
in the +resent )ommer)ial state of the (orld, that they are of no
'alue to the landlord- A *ood stone quarry in the nei*h&ourhood
of !ondon (ould afford a )onsidera&le rent- In many +arts of
S)otland and Wales it affords none- .arren tim&er for &uildin* is
of *reat 'alue in a +o+ulous and (ell8)ulti'ated )ountry, and the
land (hi)h +rodu)es it affords a )onsidera&le rent- .ut in many
+arts of North Ameri)a the landlord (ould &e mu)h o&li*ed to
any&ody (ho (ould )arry a(ay the *reater +art of his lar*e trees-
In some +arts of the hi*hlands of S)otland the &ar0 is the only
+art of the (ood (hi)h, for (ant of roads and (ater8)arria*e, )an
&e sent to mar0et- The tim&er is left to rot u+on the *round-
When the materials of lod*in* are so su+era&undant, the +art made
use of is (orth only the la&our and e1+ense of fittin* it for
that use- It affords no rent to the landlord, (ho *enerally
*rants the use of it to (hoe'er ta0es the trou&le of as0in* it-
The demand of (ealthier nations, ho(e'er, sometimes ena&les him
to *et a rent for it- The +a'in* of the streets of !ondon has
ena&led the o(ners of some &arren ro)0s on the )oast of S)otland
to dra( a rent from (hat ne'er afforded any &efore- The (oods of
Nor(ay and of the )oasts of the .alti) find a mar0et in many
+arts of 6reat .ritain (hi)h they )ould not find at home, and
there&y afford some rent to their +ro+rietors-
Countries are +o+ulous not in +ro+ortion to the num&er of
+eo+le (hom their +rodu)e )an )lothe and lod*e, &ut in +ro+ortion
to that of those (hom it )an feed- When food is +ro'ided, it is
easy to find the ne)essary )lothin* and lod*in*- .ut thou*h these
are at hand, it may often &e diffi)ult to find food- In some
+arts e'en of the .ritish dominions (hat is )alled a house may &e
&uilt &y one day=s la&our of one man- The sim+lest s+e)ies of
)lothin*, the s0ins of animals, require some(hat more la&our to
dress and +re+are them for use- They do not, ho(e'er, require a
*reat deal- Amon* sa'a*e and &ar&arous nations, a hundredth or
little more than a hundredth +art of the la&our of the (hole year
(ill &e suffi)ient to +ro'ide them (ith su)h )lothin* and lod*in*
as satisfy the *reater +art of the +eo+le- All the other
ninety8nine +arts are frequently no more than enou*h to +ro'ide
them (ith food-
.ut (hen &y the im+ro'ement and )ulti'ation of land the
la&our of one family )an +ro'ide food for t(o, the la&our of half
the so)iety &e)omes suffi)ient to +ro'ide food for the (hole- The
other half, therefore, or at least the *reater +art of them, )an
&e em+loyed in +ro'idin* other thin*s, or in satisfyin* the other
(ants and fan)ies of man0ind- Clothin* and lod*in*, household
furniture, and (hat is )alled $qui+a*e, are the +rin)i+al o&2e)ts
of the *reater +art of those (ants and fan)ies- The ri)h man
)onsumes no more food than his +oor nei*h&our- In quality it may
&e 'ery different, and to sele)t and +re+are it may require more
la&our and art/ &ut in quantity it is 'ery nearly the same- .ut
)om+are the s+a)ious +ala)e and *reat (ardro&e of the one (ith
the ho'el and the fe( ra*s of the other, and you (ill &e sensi&le
that the differen)e &et(een their )lothin*, lod*in*, and
household furniture is almost as *reat in quantity as it is in
quality- The desire of food is limited in e'ery man &y the narro(
)a+a)ity of the human stoma)h/ &ut the desire of the )on'enien)es
and ornaments of &uildin*, dress, equi+a*e, and household
furniture, seems to ha'e no limit or )ertain &oundary- Those,
therefore, (ho ha'e the )ommand of more food than they themsel'es
)an )onsume, are al(ays (illin* to e1)han*e the sur+lus, or, (hat
is the same thin*, the +ri)e of it, for *ratifi)ations of this
other 0ind- What is o'er and a&o'e satisfyin* the limited desire
is *i'en for the amusement of those desires (hi)h )annot &e
satisfied, &ut seem to &e alto*ether endless- The +oor, in order
to o&tain food, e1ert themsel'es to *ratify those fan)ies of the
ri)h, and to o&tain it more )ertainly they 'ie (ith one another
in the )hea+ness and +erfe)tion of their (or0- The num&er of
(or0men in)reases (ith the in)reasin* quantity of food, or (ith
the *ro(in* im+ro'ement and )ulti'ation of the lands/ and as the
nature of their &usiness admits of the utmost su&di'isions of
la&our, the quantity of materials (hi)h they )an (or0 u+
in)reases in a mu)h *reater +ro+ortion than their num&ers- #en)e
arises a demand for e'ery sort of material (hi)h human in'ention
)an em+loy, either usefully or ornamentally, in &uildin*, dress,
equi+a*e, or household furniture/ for the fossils and minerals
)ontained in the &o(els of the earth/ the +re)ious metals, and
the +re)ious stones-
"ood is in this manner not only the ori*inal sour)e of rent,
&ut e'ery other +art of the +rodu)e of land (hi)h after(ards
affords rent deri'es that +art of its 'alue from the im+ro'ement
of the +o(ers of la&our in +rodu)in* food &y means of the
im+ro'ement and )ulti'ation of land-
Those other +arts of the +rodu)e of land, ho(e'er, (hi)h
after(ards afford rent, do not afford it al(ays- $'en in im+ro'ed
and )ulti'ated )ountries, the demand for them is not al(ays su)h
as to afford a *reater +ri)e than (hat is suffi)ient to +ay the
la&our, and re+la)e, to*ether (ith it ordinary +rofits, the sto)0
(hi)h must &e em+loyed in &rin*in* them to mar0et- Whether it is
or is not su)h de+ends u+on different )ir)umstan)es-
Whether a )oal8mine, for e1am+le, )an afford any rent
de+ends +artly u+on its fertility, and +artly u+on its situation-
A mine of any 0ind may &e said to &e either fertile or
&arren, a))ordin* as the quantity of mineral (hi)h )an &e &rou*ht
from it &y a )ertain quantity of la&our is *reater or less than
(hat )an &e &rou*ht &y an equal quantity from the *reater +art of
other mines of the same 0ind-
Some )oal8mines ad'anta*eously situated )annot &e (rou*ht on
a))ount of their &arrenness- The +rodu)e does not +ay the
e1+ense- They )an afford neither +rofit nor rent-
There are some of (hi)h the +rodu)e is &arely suffi)ient to
+ay the la&our, and re+la)e, to*ether (ith it ordinary +rofits,
the sto)0 em+loyed in (or0in* them- They afford some +rofit to
the underta0er of the (or0, &ut no rent to the landlord- They )an
&e (rou*ht ad'anta*eously &y no&ody &ut the landlord, (ho, &ein*
himself underta0er of the (or0, *ets the ordinary +rofit of the
)a+ital (hi)h he em+loys in it- 4any )oal8mines in S)otland are
(rou*ht in this manner, and )an &e (rou*ht in no other- The
landlord (ill allo( no&ody else to (or0 them (ithout +ayin* some
rent, and no&ody )an afford to +ay any-
Other )oal8mines in the same )ountry, suffi)iently fertile,
)annot &e (rou*ht on a))ount of their situation- A quantity of
mineral suffi)ient to defray the e1+ense of (or0in* )ould &e
&rou*ht from the mine &y the ordinary, or e'en less than the
ordinary, quantity of la&our/ &ut in an inland )ountry, thinly
inha&ited, and (ithout either *ood roads or (ater8)arria*e, this
quantity )ould not &e sold-
Coals are a less a*reea&le fuel than (ood3 they are said,
too, to &e less (holesome- The e1+ense of )oals, therefore, at
the +la)e (here they are )onsumed, must *enerally &e some(hat
less than that of (ood-
The +ri)e of (ood a*ain 'aries (ith the state of
a*ri)ulture, nearly in the same manner, and e1a)tly for the same
reason, as the +ri)e of )attle- In its rude &e*innin*s the
*reater +art of e'ery )ountry is )o'ered (ith (ood, (hi)h is then
a mere en)um&eran)e of no 'alue to the landlord, (ho (ould *ladly
*i'e it to any&ody for the )uttin*- As a*ri)ulture ad'an)es, the
(oods are +artly )leared &y the +ro*ress of tilla*e, and +artly
*o to de)ay in )onsequen)e of the in)reased num&er of )attle-
These, thou*h they do not in)rease in the same +ro+ortion as
)orn, (hi)h is alto*ether the a)quisition of human industry, yet
multi+ly under the )are and +rote)tion of men, (ho store u+ in
the season of +lenty (hat may maintain them in that of s)ar)ity,
(ho throu*h the (hole year furnish them (ith a *reater quantity
of food than un)ulti'ated nature +ro'ides for them, and (ho &y
destroyin* and e1tir+atin* their enemies, se)ure them in the free
en2oyment of all that she +ro'ides- Numerous herds of )attle,
(hen allo(ed to (ander throu*h the (oods, thou*h they do not
destroy the old trees, hinder any youn* ones from )omin* u+ so
that in the )ourse of a )entury or t(o the (hole forest *oes to
ruin- The s)ar)ity of (ood then raises its +ri)e- It affords a
*ood rent, and the landlord sometimes finds that he )an s)ar)e
em+loy his &est lands more ad'anta*eously than in *ro(in* &arren
tim&er, of (hi)h the *reatness of the +rofit often )om+ensates
the lateness of the returns- This seems in the +resent times to
&e nearly the state of thin*s in se'eral +arts of 6reat .ritain,
(here the +rofit of +lantin* is found to &e equal to that of
either )orn or +asture- The ad'anta*e (hi)h the landlord deri'es
from +lantin* )an no(here e1)eed, at least for any )onsidera&le
time, the rent (hi)h these )ould afford him/ and in an inland
)ountry (hi)h is hi*hly )ulti'ated, it (ill frequently not fall
mu)h short of this rent- U+on the sea8)oast of a (ell im+ro'ed
)ountry, indeed, if )oals )an )on'eniently &e had for fuel, it
may sometimes &e )hea+er to &rin* &arren tim&er for &uildin* from
less )ulti'ated forei*n )ountries than to raise it at home- In
the ne( to(n of $din&ur*h, &uilt (ithin these fe( years, there is
not, +erha+s, a sin*le sti)0 of S)ot)h tim&er-
Whate'er may &e the +ri)e of (ood, if that of )oals is su)h
that the e1+ense of a )oal fire is nearly equal to that of a (ood
one, (e may &e assured that at that +la)e, and in these
)ir)umstan)es, the +ri)e of )oals is as hi*h as it )an &e- It
seems to &e so in some of the inland +arts of $n*land,
+arti)ularly in O1fordshire, (here it is usual, e'en in the fires
of the )ommon +eo+le, to mi1 )oals and (ood to*ether, and (here
the differen)e in the e1+ense of those t(o sorts of fuel )annot,
therefore, &e 'ery *reat-
Coals, in the )oal )ountries, are e'ery(here mu)h &elo( this
hi*hest +ri)e- If they (ere not, they )ould not &ear the e1+ense
of a distant )arria*e, either &y land or &y (ater- A small
quantity only )ould &e sold, and the )oal masters and )oal
+ro+rietors find it more for their interest to sell a *reat
quantity at a +ri)e some(hat a&o'e the lo(est, than a small
quantity at the hi*hest- The most fertile )oal8mine, too,
re*ulates the +ri)e of )oals at all the other mines in its
nei*h&ourhood- .oth the +ro+rietor and the underta0er of the (or0
find, the one that he )an *et a *reater rent, the other that he
)an *et a *reater +rofit, &y some(hat undersellin* all their
nei*h&ours- Their nei*h&ours are soon o&li*ed to sell at the same
+ri)e, thou*h they )annot so (ell afford it, and thou*h it al(ays
diminishes, and sometimes ta0es a(ay alto*ether &oth their rent
and their +rofit- Some (or0s are a&andoned alto*ether/ others )an
afford no rent, and )an &e (rou*ht only &y the +ro+rietor-
The lo(est +ri)e at (hi)h )oals )an &e sold for any
)onsidera&le time is, li0e that of all other )ommodities, the
+ri)e (hi)h is &arely suffi)ient to re+la)e, to*ether (ith its
ordinary +rofits, the sto)0 (hi)h must &e em+loyed in &rin*in*
them to mar0et- At as )oal8mine for (hi)h the landlord )an *et no
rent, &ut (hi)h he must either (or0 himself or let it alone
alto*ether, the +ri)e of )oals must *enerally &e nearly a&out
this +ri)e-
Rent, e'en (here )oals afford one, has *enerally a smaller
share in their +ri)es than in that of most other +arts of the
rude +rodu)e of land- The rent of an estate a&o'e *round )ommonly
amounts to (hat is su++osed to &e a third of the *ross +rodu)e/
and it is *enerally a rent )ertain and inde+endent of the
o))asional 'ariations in the )ro+- In )oal8mines a fifth of the
*ross +rodu)e is a 'ery *reat rent/ a tenth the )ommon rent, and
it is seldom a rent )ertain, &ut de+ends u+on the o))asional
'ariations in the +rodu)e- These are so *reat that, in a )ountry
(here thirty years= +ur)hase is )onsidered as a moderate +ri)e
for the +ro+erty of a landed estate, ten years= +ur)hase is
re*arded as a *ood +ri)e for that of a )oal8mine-
The 'alue of a )oal8mine to the +ro+rietor frequently
de+ends as mu)h u+on its situation as u+on its fertility- That of
a metalli) mine de+ends more u+on its fertility, and less u+on
its situation- The )oarse, and still more the +re)ious metals,
(hen se+arated from the ore, are so 'alua&le that they )an
*enerally &ear the e1+ense of a 'ery lon* land, and of the most
distant sea )arria*e- Their mar0et is not )onfined to the
)ountries in the nei*h&ourhood of the mine, &ut e1tends to the
(hole (orld- The )o++er of Aa+an ma0es an arti)le of )ommer)e in
$uro+e/ the iron of S+ain in that of Chili and eru- The sil'er
of eru finds its (ay, not only to $uro+e, &ut from $uro+e to
China-
The +ri)e of )oals in Westmoreland or Shro+shire )an ha'e
little effe)t on their +ri)e at Ne()astle/ and their +ri)e in the
!ionnois )an ha'e none at all- The +rodu)tions of su)h distant
)oal8mines )an ne'er &e &rou*ht into )om+etition (ith one
another- .ut the +rodu)tions of the most distant metalli) mines
frequently may, and in fa)t )ommonly are- The +ri)e, therefore,
of the )oarse, and still more that of the +re)ious metals, at the
most fertile mines in the (orld, must ne)essarily more or less
affe)t their +ri)e at e'ery other in it- The +ri)e of )o++er in
Aa+an must ha'e some influen)e u+on its +ri)e at the )o++er mines
in $uro+e- The +ri)e of sil'er in eru, or the quantity either of
la&our or of other *oods (hi)h it (ill +ur)hase there, must ha'e
some influen)e on its +ri)e, not only at the sil'er mines of
$uro+e, &ut at those of China- After the dis)o'ery of the mines
of eru, the sil'er mines of $uro+e (ere, the *reater +art of
them, a&andoned- The 'alue of (as so mu)h redu)ed that their
+rodu)e )ould no lon*er +ay the e1+ense of (or0in* them, or
re+la)e, (ith a +rofit, the food, )lothes, lod*in*, and other
ne)essaries (hi)h (ere )onsumed in that o+eration- This (as the
)ase, too, (ith the mines of Cu&a and St- Domin*o, and e'en (ith
the an)ient mines of eru, after the dis)o'ery of those of
otosi-
The +ri)e of e'ery metal at e'ery mine, therefore, &ein*
re*ulated in some measure &y its +ri)e at the most fertile mine
in the (orld that is a)tually (rou*ht, it )an at the *reater +art
of mines do 'ery little more than +ay the e1+ense of (or0in*, and
)an seldom afford a 'ery hi*h rent to the landlord- Rent,
a))ordin*ly, seems at the *reater +art of mines to ha'e &ut a
small share in the +ri)e of the )oarse, and a still smaller in
that of the +re)ious metals- !a&our and +rofit ma0e u+ the
*reater +art of &oth-
A si1th +art of the *ross +rodu)e may &e re)0oned the
a'era*e rent of the tin mines of Corn(all the most fertile that
are 0no(n in the (orld, as (e are told &y the Re'erend 4r-
.orla)e, 'i)e8(arden of the stannaries- Some, he says, afford
more, and some do not afford so mu)h- A si1th +art of the *ross
+rodu)e is the rent, too, of se'eral 'ery fertile lead mines in
S)otland-
In the sil'er mines of eru, (e are told &y "re;ier and
Ulloa, the +ro+rietor frequently e1a)ts no other a)0no(led*ment
from the underta0er of the mine, &ut that he (ill *rind the ore
at his mill, +ayin* him the ordinary multure or +ri)e of
*rindin*- Till 17B6, indeed, the ta1 of the %in* of S+ain
amounted to one8fifth of the standard sil'er, (hi)h till then
mi*ht &e )onsidered as the real rent of the *reater +art of the
sil'er mines of eru, the ri)hest (hi)h ha'e &een 0no(n in the
(orld- If there had &een no ta1 this fifth (ould naturally ha'e
&elon*ed to the landlord, and many mines mi*ht ha'e &een (rou*ht
(hi)h )ould not then &e (rou*ht, &e)ause they )ould not afford
this ta1- The ta1 of the Du0e of Corn(all u+on tin is su++osed to
amount to more than fi'e +er )ent or one8t(entieth +art of the
'alue, and (hate'er may &e his +ro+ortion, it (ould naturally,
too, &elon* to the +ro+rietor of the mine, if tin (as duty free-
.ut if you add one8t(entieth to one8si1th, you (ill find that the
(hole a'era*e rent of the tin mines of Corn(all (as to the (hole
a'era*e rent of the sil'er mines of eru as thirteen to t(el'e-
.ut the sil'er mines of eru are not no( a&le to +ay e'en this
lo( rent, and the ta1 u+on sil'er (as, in 17B6, redu)ed from
one8fifth to one8tenth- $'en this ta1 u+on sil'er, too, *i'es
more tem+tation to smu**lin* than the ta1 of one8t(entieth u+on
tin/ and smu**lin* must &e mu)h easier in the +re)ious than in
the &ul0y )ommodity- The ta1 of the %in* of S+ain a))ordin*ly is
said to &e 'ery ill +aid, and that of the Du0e of Corn(all 'ery
(ell- Rent, therefore, it is +ro&a&le, ma0es a *reater +art of
the +ri)e of tin at the most fertile tin mines than it does of
sil'er at the most fertile sil'er mines in the (orld- After
re+la)in* the sto)0 em+loyed in (or0in* those different mines,
to*ether (ith its ordinary +rofits, the residue (hi)h remains to
the +ro+rietor is *reater, it seems, in the )oarse than in the
+re)ious metal-
Neither are the +rofits of the underta0ers of sil'er mines
)ommonly 'ery *reat in eru- The same most res+e)ta&le and
(ell8informed authors a)quaint us, that (hen any +erson
underta0es to (or0 a ne( mine in eru, he is uni'ersally loo0ed
u+on as a man destined to &an0ru+t)y and ruin, and is u+on that
a))ount shunned and a'oided &y e'ery&ody- 4inin*, it seems, is
)onsidered there in the same li*ht as here, as a lottery, in
(hi)h the +ri;es do not )om+ensate the &lan0s, thou*h the
*reatness of some tem+ts many ad'enturers to thro( a(ay their
fortunes in su)h un+ros+erous +ro2e)ts-
As the so'erei*n, ho(e'er, deri'es a )onsidera&le +art of
his re'enue from the +rodu)e of sil'er mines, the la( in eru
*i'es e'ery +ossi&le en)oura*ement to the dis)o'ery and (or0in*
of ne( ones- Whoe'er dis)o'ers a ne( mine is entitled to measure
off t(o hundred and forty8si1 feet in len*th, a))ordin* to (hat
he su++oses to &e the dire)tion of the 'ein, and half as mu)h in
&readth- #e &e)omes +ro+rietor of this +ortion of the mine, and
)an (or0 it (ithout +ayin* any a)0no(led*ment to the landlord-
The interest of the Du0e of Corn(all has *i'en o))asion to a
re*ulation nearly of the same 0ind in that an)ient du)hy- In
(aste and unen)losed lands any +erson (ho dis)o'ers a tin mine
may mar0 its limits to a )ertain e1tent, (hi)h is )alled &oundin*
a mine- The &ounder &e)omes the real +ro+rietor of the mine, and
may either (or0 it himself, or *i'e it in lease to another,
(ithout the )onsent of the o(ner of the land, to (hom, ho(e'er, a
'ery small a)0no(led*ment must &e +aid u+on (or0in* it- In &oth
re*ulations the sa)red ri*hts of +ri'ate +ro+erty are sa)rifi)ed
to the su++osed interests of +u&li) re'enue-
The same en)oura*ement is *i'en in eru to the dis)o'ery and
(or0in* of ne( *old mines/ and in *old the 0in*=s ta1 amounts
only to a t(entieth +art of the standard metal- It (as on)e a
fifth, and after(ards a tenth, as in sil'er/ &ut it (as found
that the (or0 )ould not &ear e'en the lo(est of these t(o ta1es-
If it is rare, ho(e'er, say the same authors, "re;ier and Ulloa,
to find a +erson (ho has made his fortune &y a sil'er, it is
still mu)h rarer to find one (ho has done so &y a *old mine- This
t(entieth +art seems to &e the (hole rent (hi)h is +aid &y the
*reater +art of the *old mines in Chili and eru- 6old, too, is
mu)h more lia&le to &e smu**led than e'en sil'er/ not only on
a))ount of the su+erior 'alue of the metal in +ro+ortion to its
&ul0, &ut on a))ount of the +e)uliar (ay in (hi)h nature +rodu)es
it- Sil'er is 'ery seldom found 'ir*in, &ut, li0e most other
metals, is *enerally minerali;ed (ith some other &ody, from (hi)h
it is im+ossi&le to se+arate it in su)h quantities as (ill +ay
for the e1+ense, &ut &y a 'ery la&orious and tedious o+eration,
(hi)h )annot (ell &e )arried on &ut in (or0houses ere)ted for the
+ur+ose, and therefore e1+osed to the ins+e)tion of the 0in*=s
offi)ers- 6old, on the )ontrary, is almost al(ays found 'ir*in-
It is sometimes found in +ie)es of some &ul0/ and e'en (hen mi1ed
in small and almost insensi&le +arti)les (ith sand, earth, and
other e1traneous &odies, it )an &e se+arated from them &y a 'ery
short and sim+le o+eration, (hi)h )an &e )arried on in any
+ri'ate house &y any&ody (ho is +ossessed of a small quantity of
mer)ury- If the 0in*=s ta1, therefore, is &ut ill +aid u+on
sil'er, it is li0ely to &e mu)h (orse +aid u+on *old/ and rent,
must ma0e a mu)h smaller +art of the +ri)e of *old than e'en of
that of sil'er-
The lo(est +ri)e at (hi)h the +re)ious metals )an &e sold,
or the smallest quantity of other *oods for (hi)h they )an &e
e1)han*ed durin* any )onsidera&le time, is re*ulated &y the same
+rin)i+les (hi)h fi1 the lo(est ordinary +ri)e of all other
*oods- The sto)0 (hi)h must )ommonly &e em+loyed, the food, the
)lothes, and lod*in* (hi)h must )ommonly &e )onsumed in &rin*in*
them from the mine to the mar0et, determine it- It must at least
&e suffi)ient to re+la)e that sto)0, (ith the ordinary +rofits-
Their hi*hest +ri)e, ho(e'er, seems not to &e ne)essarily
determined &y anythin* &ut the a)tual s)ar)ity or +lenty of those
metals themsel'es- It is not determined &y that of any other
)ommodity, in the same manner as the +ri)e of )oals is &y that of
(ood, &eyond (hi)h no s)ar)ity )an e'er raise it- In)rease the
s)ar)ity of *old to a )ertain de*ree, and the smallest &it of it
may &e)ome more +re)ious than a diamond, and e1)han*e for a
*reater quantity of other *oods-
The demand for those metals arises +artly from their utility
and +artly from their &eauty- If you e1)e+t iron, they are more
useful than, +erha+s, any other metal- As they are less lia&le to
rust and im+urity, they )an more easily &e 0e+t )lean, and the
utensils either of the ta&le or the 0it)hen are often u+on that
a))ount more a*reea&le (hen made of them- A sil'er &oiler is more
)leanly than a lead, )o++er, or tin one/ and the same quality
(ould render a *old &oiler still &etter than a sil'er one- Their
+rin)i+al merit, ho(e'er, arises from their &eauty, (hi)h renders
them +e)uliarly fit for the ornaments of dress and furniture- No
+aint or dye )an *i'e so s+lendid a )olour as *ildin*- The merit
of their &eauty is *reatly enhan)ed &y their s)ar)ity- With the
*reater +art of ri)h +eo+le, the )hief en2oyment of ri)hes
)onsists in the +arade of ri)hes, (hi)h in their eye is ne'er so
)om+lete as (hen they a++ear to +ossess those de)isi'e mar0s of
o+ulen)e (hi)h no&ody )an +ossess &ut themsel'es- In their eyes
the merit of an o&2e)t (hi)h is in any de*ree either useful or
&eautiful is *reatly enhan)ed &y its s)ar)ity, or &y the *reat
la&our (hi)h it requires to )olle)t any )onsidera&le quantity of
it, a la&our (hi)h no&ody )an afford to +ay &ut themsel'es- Su)h
o&2e)ts they are (illin* to +ur)hase at a hi*her +ri)e than
thin*s mu)h more &eautiful and useful, &ut more )ommon- These
qualities of utility, &eauty, and s)ar)ity, are the ori*inal
foundation of the hi*h +ri)e of those metals, or of the *reat
quantity of other *oods for (hi)h they )an e'ery(here &e
e1)han*ed- This 'alue (as ante)edent to and inde+endent of their
&ein* em+loyed as )oin, and (as the quality (hi)h fitted them for
that em+loyment- That em+loyment, ho(e'er, &y o))asionin* a ne(
demand, and &y diminishin* the quantity (hi)h )ould &e em+loyed
in any other (ay, may ha'e after(ards )ontri&uted to 0ee+ u+ or
in)rease their 'alue-
The demand for the +re)ious stones arises alto*ether from
their &eauty- They are of no use &ut as ornaments/ and the merit
of their &eauty is *reatly enhan)ed &y their s)ar)ity, or &y the
diffi)ulty and e1+ense of *ettin* them from the mine- Wa*es and
+rofit a))ordin*ly ma0e u+, u+on most o))asions, almost the (hole
of their hi*h +ri)e- Rent )omes in &ut for a 'ery small share/
frequently for no share/ and the most fertile mines only afford
any )onsidera&le rent- When Ta'ernier, a 2e(eller, 'isited the
diamond mines of 6ol)onda and 5isia+our, he (as informed that the
so'erei*n of the )ountry, for (hose &enefit they (ere (rou*ht,
had ordered all of them to &e shut u+, e1)e+t those (hi)h yield
the lar*est and finest stones- The others, it seems, (ere to the
+ro+rietor not (orth the (or0in*-
As the +ri)e &oth of the +re)ious metals and of the +re)ious
stones is re*ulated all o'er the (orld &y their +ri)e at the most
fertile mine in it, the rent (hi)h a mine of either )an afford to
its +ro+rietor is in +ro+ortion, not to its a&solute, &ut to (hat
may &e )alled its relati'e fertility, or to its su+eriority o'er
other mines of the same 0ind- If ne( mines (ere dis)o'ered as
mu)h su+erior to those of otosi as they (ere su+erior to those
$uro+e, the 'alue of sil'er mi*ht &e so mu)h de*raded as to
render e'en the mines of otosi not (orth the (or0in*- .efore the
dis)o'ery of the S+anish West Indies, the most fertile mines in
$uro+e may ha'e afforded as *reat a rent to their +ro+rietor as
the ri)hest mines in eru do at +resent- Thou*h the quantity of
sil'er (as mu)h less, it mi*ht ha'e e1)han*ed for an equal
quantity of other *oods, and the +ro+rietor=s share mi*ht ha'e
ena&led him to +ur)hase or )ommand an equal quantity either of
la&our or of )ommodities- The 'alue &oth of the +rodu)e and of
the rent, the real re'enue (hi)h they afforded &oth to the +u&li)
and to the +ro+rietor, mi*ht ha'e &een the same-
The most a&undant mines either of the +re)ious metals or of
the +re)ious stones )ould add little to the (ealth of the (orld-
A +rodu)e of (hi)h the 'alue is +rin)i+ally deri'ed from its
s)ar)ity, is ne)essarily de*raded &y its a&undan)e- A ser'i)e of
+late, and the other fri'olous ornaments of dress and furniture,
)ould &e +ur)hased for a smaller quantity of la&our, or for a
smaller quantity of )ommodities/ and in this (ould )onsist the
sole ad'anta*e (hi)h the (orld )ould deri'e from that a&undan)e-
It is other(ise in estates a&o'e *round- The 'alue &oth of
their +rodu)e and of their rent is in +ro+ortion to their
a&solute, and not to their relati'e fertility- The land (hi)h
+rodu)es a )ertain quantity of food, )lothes, and lod*in*, )an
al(ays feed, )lothe, and lod*e a )ertain num&er of +eo+le/ and
(hate'er may &e the +ro+ortion of the landlord, it (ill al(ays
*i'e him a +ro+ortiona&le )ommand of the la&our of those +eo+le,
and of the )ommodities (ith (hi)h that la&our )an su++ly him- The
'alue of the most &arren lands is not diminished &y the
nei*h&ourhood of the most fertile- On the )ontrary, it is
*enerally in)reased &y it- The *reat num&er of +eo+le maintained
&y the fertile lands afford a mar0et to many +arts of the +rodu)e
of the &arren, (hi)h they )ould ne'er ha'e found amon* those (hom
their o(n +rodu)e )ould maintain-
Whate'er in)reases the fertility of land in +rodu)in* food
in)reases not only the 'alue of the lands u+on (hi)h the
im+ro'ement is &esto(ed, &ut )ontri&utes li0e(ise to in)rease
that of many other lands &y )reatin* a ne( demand for their
+rodu)e- That a&undan)e of food, of (hi)h, in )onsequen)e of the
im+ro'ement of land, many +eo+le ha'e the dis+osal &eyond (hat
they themsel'es )an )onsume, is the *reat )ause of the demand
&oth for the +re)ious metals and the +re)ious stone, as (ell as
for e'ery other )on'enien)y and ornament of dress, lod*in*,
household furniture, and equi+a*e- "ood not only )onstitutes the
+rin)i+al +art of the ri)hes of the (orld, &ut it is the
a&undan)e of food (hi)h *i'es the +rin)i+al +art of their 'alue
to many other sorts of ri)hes- The +oor inha&itants of Cu&a and
St- Domin*o, (hen they (ere first dis)o'ered &y the S+aniards,
used to (ear little &its of *old as ornaments in their hair and
other +arts of their dress- They seemed to 'alue them as (e (ould
do any little +e&&les of some(hat more than ordinary &eauty, and
to )onsider them as 2ust (orth the +i)0in* u+, &ut not (orth the
refusin* to any&ody (ho as0ed them- They *a'e them to their ne(
*uests at the first request, (ithout seemin* to thin0 that they
had made them any 'ery 'alua&le +resent- They (ere astonished to
o&ser'e the ra*e of the S+aniards to o&tain them/ and had no
notion that there )ould any(here &e a )ountry in (hi)h many
+eo+le had the dis+osal of so *reat a su+erfluity of food, so
s)anty al(ays amon* themsel'es, that for a 'ery small quantity of
those *litterin* &au&les they (ould (illin*ly *i'e as mu)h as
mi*ht maintain a (hole family for many years- Could they ha'e
&een made to understand this, the +assion of the S+aniards (ould
not ha'e sur+rised them-
ART B Of the 5ariations in the
ro+ortion &et(een the res+e)ti'e 5alues
of that Sort of rodu)e (hi)h al(ays affords Rent, and of
that
(hi)h sometimes does and sometimes does not afford Rent
T#$ in)reasin* a&undan)e of food, in )onsequen)e of
in)reasin* im+ro'ement and )ulti'ation, must ne)essarily in)rease
the demand for e'ery +art of the +rodu)e of land (hi)h is not
food, and (hi)h )an &e a++lied either to use or to ornament- In
the (hole +ro*ress of im+ro'ement, it mi*ht therefore &e
e1+e)ted, there should &e only one 'ariation in the )om+arati'e
'alues of those t(o different sorts of +rodu)e- The 'alue of that
sort (hi)h sometimes does and sometimes does not afford rent,
should )onstantly rise in +ro+ortion to that (hi)h al(ays affords
some rent- As art and industry ad'an)e, the materials of )lothin*
and lod*in*, the useful fossils and minerals of the earth, the
+re)ious metals and the +re)ious stones should *radually )ome to
&e more and more in demand, should *radually e1)han*e for a
*reater and a *reater quantity of food, or in other (ords, should
*radually &e)ome dearer and dearer- This a))ordin*ly has &een the
)ase (ith most of these thin*s u+on most o))asions, and (ould
ha'e &een the )ase (ith all of them u+on all o))asions, if
+arti)ular a))idents had not u+on some o))asions in)reased the
su++ly of some of them in a still *reater +ro+ortion than the
demand-
The 'alue of a free8stone quarry, for e1am+le, (ill
ne)essarily in)rease (ith the in)reasin* im+ro'ement and
+o+ulation of the )ountry round a&out it, es+e)ially if it should
&e the only one in the nei*h&ourhood- .ut the 'alue of a sil'er
mine, e'en thou*h there should not &e another (ithin a thousand
miles of it, (ill not ne)essarily in)rease (ith the im+ro'ement
of the )ountry in (hi)h it is situated- The mar0et for the
+rodu)e of a freestone quarry )an seldom e1tend more than a fe(
miles round a&out it, and the demand must *enerally &e in
+ro+ortion to the im+ro'ement and +o+ulation of that small
distri)t- .ut the mar0et for the +rodu)e of a sil'er mine may
e1tend o'er the (hole 0no(n (orld- Unless the (orld in *eneral,
therefore, &e ad'an)in* in im+ro'ement and +o+ulation, the demand
for sil'er mi*ht not &e at all in)reased &y the im+ro'ement e'en
of a lar*e )ountry in the nei*h&ourhood of the mine- $'en thou*h
the (orld in *eneral (ere im+ro'in*, yet if, in the )ourse of its
im+ro'ement, ne( mines should &e dis)o'ered, mu)h more fertile
than any (hi)h had &een 0no(n &efore, thou*h the demand for
sil'er (ould ne)essarily in)rease, yet the su++ly mi*ht in)rease
in so mu)h a *reater +ro+ortion that the real +ri)e of that metal
mi*ht *radually fall/ that is, any *i'en quantity, a +ound (ei*ht
of it, for e1am+le, mi*ht *radually +ur)hase or )ommand a smaller
and a smaller quantity of la&our, or e1)han*e for a smaller and a
smaller quantity of )orn, the +rin)i+al +art of the su&sisten)e
of the la&ourer-
The *reat mar0et for sil'er is the )ommer)ial and )i'ilised
+art of the (orld-
If &y the *eneral +ro*ress of im+ro'ement the demand of this
mar0et should in)rease, (hile at the same time the su++ly did not
in)rease in the same +ro+ortion, the 'alue of sil'er (ould
*radually rise in +ro+ortion to that of )orn- Any *i'en quantity
of sil'er (ould e1)han*e for a *reater and a *reater quantity of
)orn/ or, in other (ords, the a'era*e money +ri)e of )orn (ould
*radually &e)ome )hea+er and )hea+er-
If, on the )ontrary, the su++ly &y some a))ident should
in)rease for many years to*ether in a *reater +ro+ortion than the
demand, that metal (ould *radually &e)ome )hea+er and )hea+er/
or, in other (ords, the a'era*e money +ri)e of )orn (ould, in
s+ite of all im+ro'ements, *radually &e)ome dearer and dearer-
.ut if, on the other hand, the su++ly of the metal should
in)rease nearly in the same +ro+ortion as the demand, it (ould
)ontinue to +ur)hase or e1)han*e for nearly the same quantity of
)orn, and the a'era*e money +ri)e of )orn (ould, in s+ite of all
im+ro'ements, )ontinue 'ery nearly the same-
These three seem to e1haust all the +ossi&le )om&inations of
e'ents (hi)h )an ha++en in the +ro*ress of im+ro'ement/ and
durin* the )ourse of the four )enturies +re)edin* the +resent, if
(e may 2ud*e &y (hat has ha++ened &oth in "ran)e and 6reat
.ritain, ea)h of those three different )om&inations seem to ha'e
ta0en +la)e in the $uro+ean mar0et, and nearly in the same order,
too, in (hi)h I ha'e here set them do(n-
DI6R$SSIONS CONC$RNIN6 T#$ 5ARIATIONS IN T#$ 5A!U$ O" SI!5$R
DURIN6 T#$ COURS$ O" T#$ "OUR !AST C$NTURI$S
"IRST $RIOD
In 1BHC, and for some time &efore, the a'era*e +ri)e of the
quarter of (heat in $n*land seems not to ha'e &een estimated
lo(er than four oun)es of sil'er, To(er (ei*ht, equal to a&out
t(enty shillin*s of our +resent money- "rom this +ri)e it seems
to ha'e fallen *radually to t(o oun)es of sil'er, equal to a&out
ten shillin*s of our +resent money, the +ri)e at (hi)h (e find it
estimated in the &e*innin* of the si1teenth )entury, and at (hi)h
it seems to ha'e )ontinued to &e estimated till a&out 1H7C-
In 1BHC, &ein* the EHth of $d(ard III, (as ena)ted (hat is
)alled The Statute of !a&ourers- In the +ream&le it )om+lains
mu)h of the insolen)e of ser'ants, (ho endea'oured to raise their
(a*es u+on their masters- It therefore ordains that all ser'ants
and la&ourers should for the future &e )ontented (ith the same
(a*es and li'eries 9li'eries in those times si*nified not only
)lothes &ut +ro'isions: (hi)h they had &een a))ustomed to re)ei'e
in the ECth year of the 0in*, and the four +re)edin* years/ that
u+on this a))ount their li'ery (heat should no(here &e estimated
hi*her than ten+en)e a &ushel, and that it should al(ays &e in
the o+tion of the master to deli'er them either the (heat or the
money- Ten+en)e a &ushel, therefore, had, in the EHth of $d(ard
III, &een re)0oned a 'ery moderate +ri)e of (heat, sin)e it
required a +arti)ular statute to o&li*e ser'ants to a))e+t of it
in e1)han*e for their usual li'ery of +ro'isions/ and it had &een
re)0oned a reasona&le +ri)e ten years &efore that, or in the 16th
year of the 0in*, the term to (hi)h the statute refers- .ut in
the 16th year of $d(ard III, ten+en)e )ontained a&out half an
oun)e of sil'er, To(er (ei*ht, and (as nearly equal to
half8a8)ro(n of our +resent money- "our oun)es of sil'er, To(er
(ei*ht, therefore, equal to si1 shillin*s and ei*ht+en)e of the
money of those times, and to near t(enty shillin*s of that of the
+resent, must ha'e &een re)0oned a moderate +ri)e for the quarter
of ei*ht &ushels-
This statute is surely a &etter e'iden)e of (hat (as
re)0oned in those times a moderate +ri)e of *rain than the +ri)es
of some +arti)ular years (hi)h ha'e *enerally &een re)orded &y
historians and other (riters on a))ount of their e1traordinary
dearness or )hea+ness, and from (hi)h, therefore, it is diffi)ult
to form any 2ud*ment )on)ernin* (hat may ha'e &een the ordinary
+ri)e- There are, &esides, other reasons for &elie'in* that in
the &e*innin* of the fourteenth )entury, and for some time
&efore, the )ommon +ri)e of (heat (as not less than four oun)es
of sil'er the quarter, and that of other *rain in +ro+ortion-
In 1BCF, Ral+h de .orn, +rior of St- Au*ustine=s,
Canter&ury, *a'e a feast u+on his installation8day, of (hi)h
William Thorn has +reser'ed not only the &ill of fare &ut the
+ri)es of many +arti)ulars- In that feast (ere )onsumed, first,
fifty8three quarters of (heat, (hi)h )ost nineteen +ounds, or
se'en shillin*s and t(o+en)e a quarter, equal to a&out
one8and8t(enty shillin*s and si1+en)e of our +resent money/
se)ondly, fifty8ei*ht quarters of malt, (hi)h )ost se'enteen
+ounds ten shillin*s, or si1 shillin*s a quarter, equal to a&out
ei*hteen shillin*s of our +resent money/ thirdly, t(enty quarters
of oats, (hi)h )ost four +ounds, or four shillin*s a quarter,
equal to a&out t(el'e shillin*s of our +resent money- The +ri)es
of malt and oats seem here to &e hi*her than their ordinary
+ro+ortion to the +ri)e of (heat-
These +ri)es are not re)orded on a))ount of their
e1traordinary dearness or )hea+ness, &ut are mentioned
a))identally as the +ri)es a)tually +aid for lar*e quantities of
*rain )onsumed at a feast (hi)h (as famous for its ma*nifi)en)e-
In 1E6E, &ein* the H1st of #enry 4, (as re'i'ed an an)ient
statute )alled The Assi;e of .read and Ale, (hi)h the 0in* says
in the +ream&le had &een made in the times of his +ro*enitors,
sometime 0in*s of $n*land- It is +ro&a&ly, therefore, as old at
least as the time of his *randfather #enry #, and may ha'e &een
as old as the Conquest- It re*ulates the +ri)e of &read a))ordin*
as the +ri)es of (heat may ha++en to &e, from one shillin* to
t(enty shillin*s the quarter of the money of those times- .ut
statutes of this 0ind are *enerally +resumed to +ro'ide (ith
equal )are for all de'iations from the middle +ri)e, for those
&elo( it as (ell as for those a&o'e it- Ten shillin*s, therefore,
)ontainin* si1 oun)es of sil'er, To(er (ei*ht, and equal to a&out
thirty shillin*s of our +resent money, must, u+on this
su++osition, ha'e &een re)0oned the middle +ri)e of the quarter
of (heat (hen this statute (as first ena)ted, and must ha'e
)ontinued to &e so in the H1st of #enry III- We )annot therefore
&e 'ery (ron* in su++osin* that the middle +ri)e (as not less
than one8third of the hi*hest +ri)e at (hi)h this statute
re*ulates the +ri)e of &read, or than si1 shillin*s and
ei*ht+en)e of the money of those times, )ontainin* four oun)es of
sil'er, To(er (ei*ht-
"rom these different fa)ts, therefore, (e seem to ha'e some
reason to )on)lude that, a&out the middle of the fourteenth
)entury, and for a )onsidera&le time &efore, the a'era*e or
ordinary +ri)e of the quarter of (heat (as not su++osed to &e
less than four oun)es of sil'er, To(er (ei*ht-
"rom a&out the middle of the fourteenth to the &e*innin* of
the si1teenth )entury, (hat (as re)0oned the reasona&le and
moderate, that is the ordinary or a'era*e +ri)e of (heat, seems
to ha'e sun0 *radually to a&out one8half of this +ri)e/ so as at
last to ha'e fallen to a&out t(o oun)es of sil'er, To(er (ei*ht,
equal to a&out ten shillin*s of our +resent money- It )ontinued
to &e estimated at this +ri)e till a&out 1H7C-
In the household &oo0 of #enry, the fifth $arl of
Northum&erland, dra(n u+ in 1H1E, there are t(o different
estimations of (heat- In one of them it is )om+uted at si1
shillin*s and ei*ht+en)e the quarter, in the other at fi'e
shillin*s and ei*ht+en)e only- In 1H1E, si1 shillin*s and
ei*ht+en)e )ontained only t(o oun)es of sil'er, To(er (ei*ht, and
(ere equal to a&out ten shillin*s of our +resent money-
"rom the EHth of $d(ard III to the &e*innin* of the rei*n of
$li;a&eth, durin* the s+a)e of more than t(o hundred years, si1
shillin*s and ei*ht+en)e, it a++ears from se'eral different
statutes, had )ontinued to &e )onsidered as (hat is )alled the
moderate and reasona&le, that is the ordinary or a'era*e +ri)e of
(heat- The quantity of sil'er, ho(e'er, )ontained in that nominal
sum (as, durin* the )ourse of this +eriod, )ontinually
diminishin*, in )onsequen)e of some alterations (hi)h (ere made
in the )oin- .ut the in)rease of the 'alue of sil'er had, it
seems, so far )om+ensated the diminution of the quantity of it
)ontained in the same nominal sum that the le*islature did not
thin0 it (orth (hile to attend to this )ir)umstan)e-
Thus in 1GB6 it (as ena)ted that (heat mi*ht &e e1+orted
(ithout a li)en)e (hen the +ri)e (as so lo( as si1 shillin*s and
ei*ht+en)e/ and in 1G6B it (as ena)ted that no (heat should &e
im+orted if the +ri)e (as not a&o'e si1 shillin*s and ei*ht+en)e
the quarter- The le*islature had ima*ined that (hen the +ri)e (as
so lo( there )ould &e no in)on'enien)y in e1+ortation, &ut that
(hen it rose hi*her it &e)ame +rudent to allo( im+ortation- Si1
shillin*s and ei*ht+en)e, therefore, )ontainin* a&out the same
quantity of sil'er as thirteen shillin*s and four+en)e of our
+resent money 9one third +art less than the same nominal sum
)ontained in the time of $d(ard III:, had in those times &een
)onsidered as (hat is )alled the moderate and reasona&le +ri)e of
(heat-
In 1HHG, &y the 1st and End of hili+ and 4ary/ and in 1HH?,
&y the 1st of $li;a&eth, the e1+ortation of (heat (as in the same
manner +rohi&ited, (hene'er the +ri)e of the quarter should
e1)eed si1 shillin*s and ei*ht+en)e, (hi)h did not then )ontain
t(o +enny(orth more sil'er than the same nominal sum does at
+resent- .ut it had soon &een found that to restrain the
e1+ortation of (heat till the +ri)e (as so 'ery lo( (as, in
reality, to +rohi&it it alto*ether- In 1H6E, therefore, &y the
Hth of $li;a&eth, the e1+ortation of (heat (as allo(ed from
)ertain +orts (hene'er the +ri)e of the quarter should not e1)eed
ten shillin*s, )ontainin* nearly the same quantity of sil'er as
the li0e nominal sum does at +resent- This +ri)e had at this
time, therefore, &een )onsidered as (hat is )alled the moderate
and reasona&le +ri)e of (heat- It a*rees nearly (ith the
estimation of the Northum&erland &oo0 in 1H1E-
That in "ran)e the a'era*e +ri)e of *rain (as, in the same
manner, mu)h lo(er in the end of the fifteenth and &e*innin* of
the si1teenth )entury than in the t(o )enturies +re)edin* has
&een o&ser'ed &oth &y 4r- Du+re de St- 4aur, and &y the ele*ant
author of the $ssay on the +oli)e of *rain- Its +ri)e, durin* the
same +eriod, had +ro&a&ly sun0 in the same manner throu*h the
*reater +art of $uro+e-
This rise in the 'alue of sil'er in +ro+ortion to that of
)orn, may either ha'e &een o(in* alto*ether to the in)rease of
the demand for that metal, in )onsequen)e of in)reasin*
im+ro'ement and )ulti'ation, the su++ly in the meantime
)ontinuin* the same as &efore/ or, the demand )ontinuin* the same
as &efore, it may ha'e &een o(in* alto*ether to the *radual
diminution of the su++ly/ the *reater +art of the mines (hi)h
(ere then 0no(n in the (orld &ein* mu)h e1hausted, and
)onsequently the e1+ense of (or0in* them mu)h in)reased/ or it
may ha'e &een o(in* +artly to the other of those t(o
)ir)umstan)es- In the end of the fifteenth and &e*innin* of the
si1teenth )enturies, the *reater +art of $uro+e (as a++roa)hin*
to(ards a more settled form of *o'ernment than it had en2oyed for
se'eral a*es &efore- The in)rease of se)urity (ould naturally
in)rease industry and im+ro'ement/ and the demand for the
+re)ious metals, as (ell as for e'ery other lu1ury and ornament,
(ould naturally in)rease (ith the in)rease of ri)hes- A *reater
annual +rodu)e (ould require a *reater quantity of )oin to
)ir)ulate it/ and a *reater num&er of ri)h +eo+le (ould require a
*reater quantity of +late and other ornaments of sil'er- It is
natural to su++ose, too, that the *reater +art of the mines (hi)h
then su++lied the $uro+ean mar0et (ith sil'er mi*ht &e a *ood
deal e1hausted, and ha'e &e)ome more e1+ensi'e in the (or0in*-
They had &een (rou*ht many of them from the time of the Romans-
It has &een the o+inion, ho(e'er, of the *reater +art of
those (ho ha'e (ritten u+on the +ri)e of )ommodities in an)ient
times that, from the Conquest, +erha+s from the in'asion of
Aulius Caesar till the dis)o'ery of the mines of Ameri)a, the
'alue of sil'er (as )ontinually diminishin*- This o+inion they
seem to ha'e &een led into, +artly &y the o&ser'ations (hi)h they
had o))asion to ma0e u+on the +ri)es &oth of )orn and of some
other +arts of the rude +rodu)e of land/ and +artly &y the
+o+ular notion that as the quantity of sil'er naturally in)reases
in e'ery )ountry (ith the in)rease of (ealth, so its 'alue
diminishes as its quantity in)reases-
In their o&ser'ations u+on the +ri)es of )orn, three
different )ir)umstan)es seem frequently to ha'e misled them-
"irst, in an)ient times almost all rents (ere +aid in 0ind/
in a )ertain quantity of )orn, )attle, +oultry, et)- It sometimes
ha++ened, ho(e'er, that the landlord (ould sti+ulate that he
should &e at li&erty to demand of the tenant, either the annual
+ayment in 0ind, or a )ertain sum of money instead of it- The
+ri)e at (hi)h the +ayment in 0ind (as in this manner e1)han*ed
for a )ertain sum of money is in S)otland )alled the )on'ersion
+ri)e- As the o+tion is al(ays in the landlord to ta0e either the
su&stan)e or the +ri)e, it is ne)essary for the safety of the
tenant that the )on'ersion +ri)e should rather &e &elo( than
a&o'e the a'era*e mar0et +ri)e- In many +la)es, a))ordin*ly, it
is not mu)h a&o'e one8half of this +ri)e- Throu*h the *reater
+art of S)otland this )ustom still )ontinues (ith re*ard to
+oultry, and in some +la)es (ith re*ard to )attle- It mi*ht
+ro&a&ly ha'e )ontinued to ta0e +la)e, too, (ith re*ard to )orn,
had not the institution of the +u&li) fiars +ut an end to it-
These are annual 'aluations, a))ordin* to the 2ud*ment of an
assi;e, of the a'era*e +ri)e of all the different sorts of *rain,
and of all the different qualities of ea)h, a))ordin* to the
a)tual mar0et +ri)e in e'ery different )ounty- This institution
rendered it suffi)iently safe for the tenant, and mu)h more
)on'enient for the landlord, to )on'ert, as they )all it, the
)orn rent, rather at (hat should ha++en to &e the +ri)e of the
fiars of ea)h year, than at any )ertain fi1ed +ri)e- .ut the
(riters (ho ha'e )olle)ted the +ri)es of )orn in an)ient times
seem frequently to ha'e mista0en (hat is )alled in S)otland the
)on'ersion +ri)e for the a)tual mar0et +ri)e- "leet(ood
a)0no(led*es, u+on one o))asion, that he had made this mista0e-
As he (rote his &oo0, ho(e'er, for a +arti)ular +ur+ose, he does
not thin0 +ro+er to ma0e this a)0no(led*ment till after
trans)ri&in* this )on'ersion +ri)e fifteen times- The +ri)e is
ei*ht shillin*s the quarter of (heat- This sum in 1GEB, the year
at (hi)h he &e*ins (ith it, )ontained the same quantity of sil'er
as si1teen shillin*s of our +resent money- .ut in 1H6E, the year
at (hi)h he ends (ith it, it )ontained no more than the same
nominal sum does at +resent-
Se)ondly, they ha'e &een misled &y the slo'enly manner in
(hi)h some an)ient statutes of assi;e had &een sometimes
trans)ri&ed &y la;y )o+iers/ and sometimes +erha+s a)tually
)om+osed &y the le*islature-
The an)ient statutes of assi;e seem to ha'e &e*un al(ays
(ith determinin* (hat ou*ht to &e the +ri)e of &read and ale (hen
the +ri)e of (heat and &arley (ere at the lo(est, and to ha'e
+ro)eeded *radually to determine (hat it ou*ht to &e, a))ordin*
as the +ri)es of those t(o sorts of *rain should *radually rise
a&o'e this lo(est +ri)e- .ut the trans)ri&ers of those statutes
seem frequently to ha'e thou*ht it suffi)ient to )o+y the
re*ulation as far as the three or four first and lo(est +ri)es,
sa'in* in this manner their o(n la&our, and 2ud*in*, I su++ose,
that this (as enou*h to sho( (hat +ro+ortion ou*ht to &e o&ser'ed
in all hi*her +ri)es-
Thus in the Assi;e of .read and Ale, of the H1st of #enry
III, the +ri)e of &read (as re*ulated a))ordin* to the different
+ri)es of (heat, from one shillin* to t(enty shillin*s the
quarter, of the money of those times- .ut in the manus)ri+ts from
(hi)h all the different editions of the statutes, +re)edin* that
of 4r- Ruffhead, (ere +rinted, the )o+iers had ne'er trans)ri&ed
this re*ulation &eyond the +ri)e of t(el'e shillin*s- Se'eral
(riters, therefore, &ein* misled &y this faulty trans)ri+tion,
'ery naturally )on)luded that the middle +ri)e, or si1 shillin*s
the quarter, equal to a&out ei*hteen shillin*s of our +resent
money, (as the ordinary or a'era*e +ri)e of (heat at that time-
In the Statute of Tum&rel and illory, ena)ted nearly a&out
the same time, the +ri)e of ale is re*ulated a))ordin* to e'ery
si1+en)e rise in the +ri)e of &arley, from t(o shillin*s to four
shillin*s the quarter- That four shillin*s, ho(e'er, (as not
)onsidered as the hi*hest +ri)e to (hi)h &arley mi*ht frequently
rise in those times, and that these +ri)es (ere only *i'en as an
e1am+le of the +ro+ortion (hi)h ou*ht to &e o&ser'ed in all other
+ri)es, (hether hi*her or lo(er, (e may infer from the last (ords
of the statute3 et si) dein)e+s )res)etur 'el diminuetur +er se1
denarios- The e1+ression is 'ery slo'enly, &ut the meanin* is
+lain enou*h3 @That the +ri)e of ale is in this manner to &e
in)reased or diminished a))ordin* to e'ery si1+en)e rise or fall
in the +ri)e of &arley-@ In the )om+osition of this statute the
le*islature itself seems to ha'e &een as ne*li*ent as the )o+iers
(ere in the trans)ri+tion of the others-
In an an)ient manus)ri+t of the Re*iam 4a2estatem, an old
S)ot)h la( &oo0, there is a statute of assi;e in (hi)h the +ri)e
of &read is re*ulated a))ordin* to all the different +ri)es of
(heat, from ten+en)e to three shillin*s the S)ot)h &oll, equal to
a&out half an $n*lish quarter- Three shillin*s S)ot)h, at the
time (hen this assi;e is su++osed to ha'e &een ena)ted (ere equal
to a&out nine shillin*s sterlin* of our +resent money- 4r-
Ruddiman seems to )on)lude from this, that three shillin*s (as
the hi*hest +ri)e to (hi)h (heat e'er rose in those times, and
that ten+en)e, a shillin*, or at most t(o shillin*s, (ere the
ordinary +ri)es- U+on )onsultin* the manus)ri+t, ho(e'er, it
a++ears e'idently that all these +ri)es are only set do(n as
e1am+les of the +ro+ortion (hi)h ou*ht to &e o&ser'ed &et(een the
res+e)ti'e +ri)es of (heat and &read- The last (ords of the
statute are3 reliqua 2udi)a&is se)undum +roes)ri+ta ha&endo
res+e)tum ad +retium &ladi- @7ou shall 2ud*e of the remainin*
)ases a))ordin* to (hat is a&o'e (ritten, ha'in* a res+e)t to the
+ri)e of )orn-@
Thirdly, they seem to ha'e &een misled, too, &y the 'ery lo(
+ri)e at (hi)h (heat (as sometimes sold in 'ery an)ient times/
and to ha'e ima*ined that as its lo(est +ri)e (as then mu)h lo(er
than in later times, its ordinary +ri)e must li0e(ise ha'e &een
mu)h lo(er- They mi*ht ha'e found, ho(e'er, that in those an)ient
times its hi*hest +ri)e (as fully as mu)h a&o'e, as its lo(est
+ri)e (as &elo( anythin* that had e'en &een 0no(n in later times-
Thus in 1E7C, "leet(ood *i'es us t(o +ri)es of the quarter of
(heat- The one is four +ounds si1teen shillin*s of the money of
those times, equal to fourteen +ounds ei*ht shillin*s of that of
the +resent/ the other is si1 +ounds ei*ht shillin*s, equal to
nineteen +ounds four shillin*s of our +resent money- No +ri)e )an
&e found in the end of the fifteenth, or &e*innin* of the
si1teenth )entury, (hi)h a++roa)hes to the e1tra'a*an)e of these-
The +ri)e of )orn, thou*h at all times lia&le to 'ariation,
'aries most in those tur&ulent and disorderly so)ieties, in (hi)h
the interru+tion of all )ommer)e and )ommuni)ation hinders the
+lenty of one +art of the )ountry from relie'in* the s)ar)ity of
another- In the disorderly state of $n*land under the
lanta*enets, (ho *o'erned it from a&out the middle of the
t(elfth till to(ards the end of the fifteenth )entury, one
distri)t mi*ht &e in +lenty, (hile another at no *reat distan)e,
&y ha'in* its )ro+ destroyed either &y some a))ident of the
seasons, or &y the in)ursion of some nei*h&ourin* &aron, mi*ht &e
sufferin* all the horrors of a famine/ and yet if the lands of
some hostile lord (ere inter+osed &et(een them, the one mi*ht not
&e a&le to *i'e the least assistan)e to the other- Under the
'i*orous administration of the Tudors, (ho *o'erned $n*land
durin* the latter +art of the fifteenth and throu*h the (hole of
the si1teenth )entury, no &aron (as +o(erful enou*h to dare to
distur& the +u&li) se)urity-
The reader (ill find at the end of this )ha+ter all the
+ri)es of (heat (hi)h ha'e &een )olle)ted &y "leet(ood from 1ECE
to 1HF7, &oth in)lusi'e, redu)ed to the money of the +resent
times, and di*ested a))ordin* to the order of time, into se'en
di'isions of t(el'e years ea)h- At the end of ea)h di'ision, too,
he (ill find the a'era*e +ri)e of the t(el'e years of (hi)h it
)onsists- In that lon* +eriod of time, "leet(ood has &een a&le to
)olle)t the +ri)es of no more than ei*hty years, so that four
years are (antin* to ma0e out the last t(el'e years- I ha'e
added, therefore, from the a))ounts of $ton )olle*e, the +ri)es
of 1HF?, 1HFF, 16CC, and 16C1- It is the only addition (hi)h I
ha'e made- The reader (ill see that from the &e*innin* of the
thirteenth till after the middle of the si1teenth )entury the
a'era*e +ri)e of ea)h t(el'e years *ro(s *radually lo(er and
lo(er/ and that to(ards the end of the si1teenth )entury it
&e*ins to rise a*ain- The +ri)es, indeed, (hi)h "leet(ood has
&een a&le to )olle)t, seem to ha'e &een those )hiefly (hi)h (ere
remar0a&le for e1traordinary dearness or )hea+ness/ and I do not
+retend that any 'ery )ertain )on)lusion )an &e dra(n from them-
So far, ho(e'er, as they +ro'e anythin* at all, they )onfirm the
a))ount (hi)h I ha'e &een endea'ourin* to *i'e- "leet(ood
himself, ho(e'er, seems, (ith most other (riters, to ha'e
&elie'ed that durin* all this +eriod the 'alue of sil'er, in
)onsequen)e of its in)reasin* a&undan)e, (as )ontinually
diminishin*- The +ri)es of )orn (hi)h he himself has )olle)ted
)ertainly do not a*ree (ith this o+inion- They a*ree +erfe)tly
(ith that of 4r- Du+re de St- 4aur, and (ith that (hi)h I ha'e
&een endea'ourin* to e1+lain- .isho+ "leet(ood and 4r- Du+re de
St- 4aur are the t(o authors (ho seem to ha'e )olle)ted, (ith the
*reatest dili*en)e and fidelity, the +ri)es of thin*s in an)ient
times- It is some(hat )urious that, thou*h their o+inions are so
'ery different, their fa)ts, so far as they relate to the +ri)e
of )orn at least, should )oin)ide so 'ery e1a)tly-
It is not, ho(e'er, so mu)h from the lo( +ri)e of )orn as
from that of some other +arts of the rude +rodu)e of land that
the most 2udi)ious (riters ha'e inferred the *reat 'alue of
sil'er in those 'ery an)ient times- Corn, it has &een said, &ein*
a sort of manufa)ture, (as, in those rude a*es, mu)h dearer in
+ro+ortion than the *reater +art of other )ommodities/ it is
meant, I su++ose, than the *reater +art of unmanufa)tured
)ommodities, su)h as )attle, +oultry, *ame of all 0inds, et)-
That in those times of +o'erty and &ar&arism these (ere
+ro+ortiona&ly mu)h )hea+er than )orn is undou&tedly true- .ut
this )hea+ness (as not the effe)t of the hi*h 'alue of sil'er,
&ut of the lo( 'alue of those )ommodities- It (as not &e)ause
sil'er (ould in su)h times +ur)hase or re+resent a *reater
quantity of la&our, &ut &e)ause su)h )ommodities (ould +ur)hase
or re+resent a mu)h smaller quantity than in times of more
o+ulen)e and im+ro'ement- Sil'er must )ertainly &e )hea+er in
S+anish Ameri)a than in $uro+e/ in the )ountry (here it is
+rodu)ed than in the )ountry to (hi)h it is &rou*ht, at the
e1+ense of a lon* )arria*e &oth &y land and &y sea, of a frei*ht
and an insuran)e- One8and8t(enty +en)e half+enny sterlin*,
ho(e'er, (e are told &y Ulloa, (as, not many years a*o, at .uenos
Ayres, the +ri)e of an o1 )hosen from a herd of three or four
hundred- Si1teen shillin*s sterlin*, (e are told &y 4r- .yron (as
the +ri)e of a *ood horse in the )a+ital of Chili- In a )ountry
naturally fertile, &ut of (hi)h the far *reater +art is
alto*ether un)ulti'ated, )attle, +oultry, *ame of all 0inds,
et)-, as they )an &e a)quired (ith a 'ery small quantity of
la&our, so they (ill +ur)hase or )ommand &ut a 'ery small
quantity- The lo( money +ri)e for (hi)h they may &e sold is no
+roof that the real 'alue of sil'er is there 'ery hi*h, &ut that
the real 'alue of those )ommodities is 'ery lo(-
!a&our, it must al(ays &e remem&ered, and not any +arti)ular
)ommodity or set of )ommodities, is the real measure of the 'alue
&oth of sil'er and of all other )ommodities-
.ut in )ountries almost (aste, or &ut thinly inha&ited,
)attle, +oultry, *ame of all 0inds, et)-, as they are the
s+ontaneous +rodu)tions of nature, so she frequently +rodu)es
them in mu)h *reater quantities than the )onsum+tion of the
inha&itants requires- In su)h a state of thin*s the su++ly
)ommonly e1)eeds the demand- In different states of so)iety, in
different sta*es of im+ro'ement, therefore, su)h )ommodities (ill
re+resent, or &e equi'alent to, 'ery different quantities of
la&our-
In e'ery state of so)iety, in e'ery sta*e of im+ro'ement,
)orn is the +rodu)tion of human industry- .ut the a'era*e +rodu)e
of e'ery sort of industry is al(ays suited, more or less e1a)tly,
to the a'era*e )onsum+tion/ the a'era*e su++ly to the a'era*e
demand- In e'ery different sta*e of im+ro'ement, &esides, the
raisin* of equal quantities of )orn in the same soil and )limate
(ill, at an a'era*e, require nearly equal quantities of la&our/
or (hat )omes to the same thin*, the +ri)e of nearly equal
quantities/ the )ontinual in)rease of the +rodu)ti'e +o(ers of
la&our in an im+ro'in* state of )ulti'ation &ein* more or less
)ounter&alan)ed &y the )ontinually in)reasin* +ri)e of )attle,
the +rin)i+al instruments of a*ri)ulture- U+on all these
a))ounts, therefore, (e may rest assured that equal quantities of
)orn (ill, in e'ery state of so)iety, in e'ery sta*e of
im+ro'ement, more nearly re+resent, or &e equi'alent to, equal
quantities of la&our than equal quantities of any other +art of
the rude +rodu)e of land- Corn, a))ordin*ly, it has already &een
o&ser'ed, is, in all the different sta*es of (ealth and
im+ro'ement, a more a))urate measure of 'alue than any other
)ommodity or set of )ommodities- In all those different sta*es,
therefore, (e )an 2ud*e &etter of the real 'alue of sil'er &y
)om+arin* it (ith )orn than &y )om+arin* it (ith any other
)ommodity or set of )ommodities-
Corn, &esides, or (hate'er else is the )ommon and fa'ourite
'e*eta&le food of the +eo+le, )onstitutes, in e'ery )i'ilised
)ountry, the +rin)i+al +art of the su&sisten)e of the la&ourer-
In )onsequen)e of the e1tension of a*ri)ulture, the land of e'ery
)ountry +rodu)es a mu)h *reater quantity of 'e*eta&le than of
animal food, and the la&ourer e'ery(here li'es )hiefly u+on the
(holesome food that is )hea+est and most a&undant- .ut)her=s
meat, e1)e+t in the most thri'in* )ountries, or (here la&our is
most hi*hly re(arded, ma0es &ut an insi*nifi)ant +art of his
su&sisten)e/ +oultry ma0es a still smaller +art of it, and *ame
no +art of it- In "ran)e, and e'en in S)otland, (here la&our is
some(hat &etter re(arded than in "ran)e, the la&ourin* +oor
seldom eat &ut)her=s meat, e1)e+t u+on holidays, and other
e1traordinary o))asions- The money +ri)e of la&our, therefore,
de+ends mu)h more u+on the a'era*e money +ri)e of )orn, the
su&sisten)e of the la&ourer, than u+on that of &ut)her=s meat, or
of any other +art of the rude +rodu)e of land- The real 'alue of
*old and sil'er, therefore, the real quantity of la&our (hi)h
they )an +ur)hase or )ommand, de+ends mu)h more u+on the quantity
of )orn (hi)h they )an +ur)hase or )ommand than u+on that of
&ut)her=s meat, or any other +art of the rude +rodu)e of land-
Su)h sli*ht o&ser'ations, ho(e'er, u+on the +ri)es either of
)orn or of other )ommodities, (ould not +ro&a&ly ha'e misled so
many intelli*ent authors had they not &een influen)ed, at the
same time, &y the +o+ular notion, that as the quantity of sil'er
naturally in)reases in e'ery )ountry (ith the in)rease of so its
'alue diminishes as its quantity in)reases- This notion, ho(e'er,
seems to &e alto*ether *roundless-
The quantity of the +re)ious metals may in)rease in any
)ountry from t(o different )auses/ either, first, from the
in)reased a&undan)e of the mines (hi)h su++ly it/ or, se)ondly,
from the in)reased (ealth of the +eo+le, from the in)reased
+rodu)e of their annual la&our- The first of these )auses is no
dou&t ne)essarily )onne)ted (ith the diminution of the 'alue of
the +re)ious metals, &ut the se)ond is not-
When more a&undant mines are dis)o'ered, a *reater quantity
of the +re)ious metals is &rou*ht to mar0et, and the quantity of
the ne)essaries and )on'enien)ies of life for (hi)h they must &e
e1)han*ed &ein* the same as &efore, equal quantities of the
metals must &e e1)han*ed for smaller quantities of )ommodities-
So far, therefore, as the in)rease of the quantity of the
+re)ious metals in any )ountry arises from the in)reased
a&undan)e of the mines, it is ne)essarily )onne)ted (ith some
diminution of their 'alue-
When, on the )ontrary, the (ealth of any )ountry in)reases,
(hen the annual +rodu)e of its la&our &e)omes *radually *reater
and *reater, a *reater quantity of )oin &e)omes ne)essary in
order to )ir)ulate a *reater quantity of )ommodities/ and the
+eo+le, as they )an afford it, as they ha'e more )ommodities to
*i'e for it, (ill naturally +ur)hase a *reater and a *reater
quantity of +late- The quantity of their )oin (ill in)rease from
ne)essity/ the quantity of their +late from 'anity and
ostentation, or from the same reason that the quantity of fine
statues, +i)tures, and of e'ery other lu1ury and )uriosity, is
li0ely to in)rease amon* them- .ut as statuaries and +ainters are
not li0ely to &e (orse re(arded in times of (ealth and +ros+erity
than in times of +o'erty and de+ression, so *old and sil'er are
not li0ely to &e (orse +aid for-
The +ri)e of *old and sil'er, (hen the a))idental dis)o'ery
of more a&undant mines does not 0ee+ it do(n, as it naturally
rises (ith the (ealth of e'ery )ountry, so, (hate'er &e the state
of the mines, it is at all times naturally hi*her in a ri)h than
in a +oor )ountry- 6old and sil'er, li0e all other )ommodities,
naturally see0 the mar0et (here the &est +ri)e is *i'en for them,
and the &est +ri)e is )ommonly *i'en for e'ery thin* in the
)ountry (hi)h )an &est afford it- !a&our, it must &e remem&ered,
is the ultimate +ri)e (hi)h is +aid for e'erythin*, and in
)ountries (here la&our is equally (ell re*arded, the money +ri)e
of la&our (ill &e in +ro+ortion to that of the su&sisten)e of the
la&ourer- .ut *old and sil'er (ill naturally e1)han*e for a
*reater quantity of su&sisten)e in a ri)h than in a +oor )ountry,
in a )ountry (hi)h a&ounds (ith su&sisten)e than in one (hi)h is
&ut indifferently su++lied (ith it- If the t(o )ountries are at a
*reat distan)e, the differen)e may &e 'ery *reat/ &e)ause thou*h
the metals naturally fly from the (orse to the &etter mar0et, yet
it may &e diffi)ult to trans+ort them in su)h quantities as to
&rin* their +ri)e nearly to a le'el in &oth- If the )ountries are
near, the differen)e (ill &e smaller, and may sometimes &e s)ar)e
+er)e+ti&le/ &e)ause in this )ase the trans+ortation (ill &e
easy- China is a mu)h ri)her )ountry than any +art of $uro+e, and
the differen)e &et(een the +ri)e of su&sisten)e in China and in
$uro+e is 'ery *reat- Ri)e in China is mu)h )hea+er than (heat is
any(here in $uro+e- $n*land is a mu)h ri)her )ountry than
S)otland/ &ut the differen)e &et(een the money8+ri)e of )orn in
those t(o )ountries is mu)h smaller, and is &ut 2ust +er)e+ti&le-
In +ro+ortion to the quantity or measure, S)ot)h )orn *enerally
a++ears to &e a *ood deal )hea+er than $n*lish/ &ut in +ro+ortion
to its quality, it is )ertainly some(hat dearer- S)otland
re)ei'es almost e'ery year 'ery lar*e su++lies from $n*land, and
e'ery )ommodity must )ommonly &e some(hat dearer in the )ountry
to (hi)h it is &rou*ht than in that from (hi)h it )omes- $n*lish
)orn, therefore, must &e dearer in S)otland than in $n*land, and
yet in +ro+ortion to its quality, or to the quantity and *oodness
of the flour or meal (hi)h )an &e made from it, it )annot
)ommonly &e sold hi*her there than the S)ot)h )orn (hi)h )omes to
mar0et in )om+etition (ith it-
The differen)e &et(een the money +ri)e of la&our in China
and in $uro+e is still *reater than that &et(een the money +ri)e
of su&sisten)e/ &e)ause the real re)om+ense of la&our is hi*her
in $uro+e than in China, the *reater +art of $uro+e &ein* in an
im+ro'in* state, (hile China seems to &e standin* still- The
money +ri)e of la&our is lo(er in S)otland than in $n*land
&e)ause the real re)om+ense of la&our is mu)h lo(er/ S)otland,
thou*h ad'an)in* to *reater (ealth, ad'an)in* mu)h more slo(ly
than $n*land- The frequen)y of emi*ration from S)otland, and the
rarity of it from $n*land, suffi)iently +ro'e that the demand for
la&our is 'ery different in the t(o )ountries- The +ro+ortion
&et(een the real re)om+ense of la&our in different )ountries, it
must &e remem&ered, is naturally re*ulated not &y their a)tual
(ealth or +o'erty, &ut &y their ad'an)in*, stationary, or
de)linin* )ondition-
6old and sil'er, as they are naturally of the *reatest 'alue
amon* the ri)hest, so they are naturally of the least 'alue amon*
the +oorest nations- Amon* sa'a*es, the +oorest of all nations,
they are of s)ar)e any 'alue-
In *reat to(ns )orn is al(ays dearer than in remote +arts of
the )ountry- This, ho(e'er, is the effe)t, not of the real
)hea+ness of sil'er, &ut of the real dearness of )orn- It does
not )ost less la&our to &rin* sil'er to the *reat to(n than to
the remote +arts of the )ountry/ &ut it )osts a *reat deal more
to &rin* )orn-
In some 'ery ri)h and )ommer)ial )ountries, su)h as #olland
and the territory of 6enoa, )orn is dear for the same reason that
it is dear in *reat to(ns- They do not +rodu)e enou*h to maintain
their inha&itants- They are ri)h in the industry and s0ill of
their artifi)ers and manufa)turers/ in e'ery sort of ma)hinery
(hi)h )an fa)ilitate and a&rid*e la&our/ in shi++in*, and in all
the other instruments and means of )arria*e and )ommer)e3 &ut
they are +oor in )orn, (hi)h, as it must &e &rou*ht to them from
distant )ountries, must, &y an addition to its +ri)e, +ay for the
)arria*e from those )ountries- It does not )ost less la&our to
&rin* sil'er to Amsterdam than to Dant;i)/ &ut it )osts a *reat
deal more to &rin* )orn- The real )ost of sil'er must &e nearly
the same in &oth +la)es/ &ut that of )orn must &e 'ery different-
Diminish the real o+ulen)e either of #olland or of the territory
of 6enoa, (hile the num&er of their inha&itants remains the same3
diminish their +o(er of su++lyin* themsel'es from distant
)ountries/ and the +ri)e of )orn, instead of sin0in* (ith that
diminution in the quantity of their sil'er, (hi)h must
ne)essarily a))om+any this de)lension either as its )ause or as
its effe)t, (ill rise to the +ri)e of a famine- When (e are in
(ant of ne)essaries (e must +art (ith all su+erfluities, of (hi)h
the 'alue, as it rises in times of o+ulen)e and +ros+erity, so it
sin0s in times of +o'erty and distress- It is other(ise (ith
ne)essaries- Their real +ri)e, the quantity of la&our (hi)h they
)an +ur)hase or )ommand, rises in times of +o'erty and distress,
and sin0s in times of o+ulen)e and +ros+erity, (hi)h are al(ays
times of *reat a&undan)e/ for they )ould not other(ise &e times
of o+ulen)e and +ros+erity- Corn is a ne)essary, sil'er is only a
su+erfluity-
Whate'er, therefore, may ha'e &een the in)rease in the
quantity of the +re)ious metals, (hi)h, durin* the +eriod &et(een
the middle of the fourteenth and that of the si1teenth )entury,
arose from the in)rease of (ealth and im+ro'ement, it )ould ha'e
no tenden)y to diminish their 'alue either in 6reat .ritain or in
any other +art of $uro+e- If those (ho ha'e )olle)ted the +ri)es
of thin*s in an)ient times, therefore, had, durin* this +eriod,
no reason to infer the diminution of the 'alue of sil'er, from
any o&ser'ations (hi)h they had made u+on the +ri)es either of
)orn or of other )ommodities, they had still less reason to infer
it from any su++osed in)rease of (ealth and im+ro'ement-
S$COND $RIOD
.ut ho( 'arious soe'er may ha'e &een the o+inions of the
learned )on)ernin* the +ro*ress of the 'alue of sil'er durin*
this first +eriod, they are unanimous )on)ernin* it durin* the
se)ond-
"rom a&out 1H7C to a&out 16GC, durin* a +eriod of a&out
se'enty years, the 'ariation in the +ro+ortion &et(een the 'alue
of sil'er and that of )orn held a quite o++osite )ourse- Sil'er
sun0 in its real 'alue, or (ould e1)han*e for a smaller quantity
of la&our than &efore/ and )orn rose in its nominal +ri)e, and
instead of &ein* )ommonly sold for a&out t(o oun)es of sil'er the
quarter, or a&out ten shillin*s of our +resent money, )ame to &e
sold for si1 and ei*ht oun)es of sil'er the quarter, or a&out
thirty and forty shillin*s of our +resent money-
The dis)o'ery of the a&undant mines of Ameri)a seems to ha'e
&een the sole )ause of this diminution in the 'alue of sil'er in
+ro+ortion to that of )orn- It is a))ounted for a))ordin*ly in
the same manner &y e'ery&ody/ and there ne'er has &een any
dis+ute either a&out the fa)t or a&out the )ause of it- The
*reater +art of $uro+e (as, durin* this +eriod, ad'an)in* in
industry and im+ro'ement, and the demand for sil'er must
)onsequently ha'e &een in)reasin*- .ut the in)rease of the su++ly
had, it seems, so far e1)eeded that of the demand, that the 'alue
of that metal sun0 )onsidera&ly- The dis)o'ery of the mines of
Ameri)a, it is to &e o&ser'ed, does not seem to ha'e had any 'ery
sensi&le effe)t u+on the +ri)es of thin*s in $n*land till after
1H7C/ thou*h e'en the mines of otosi had &een dis)o'ered more
than t(enty years &efore-
"rom 1HFH to 16EC, &oth in)lusi'e, the a'era*e +ri)e of the
quarter of nine &ushels of the &est (heat at Windsor mar0et
a++ears, from the a))ounts of $ton Colle*e, to ha'e &een !E 1s- 6
BDGd- "rom (hi)h sum, ne*le)tin* the fra)tion, and dedu)tin* a
ninth, or Gs- 7 1KBd-, the +ri)e of the quarter of ei*ht &ushels
)omes out to ha'e &een !1 16s- 1C EDBd- And from this sum,
ne*le)tin* li0e(ise the fra)tion, and dedu)tin* a ninth, or Gs-
1d-, for the differen)e &et(een the +ri)e of the &est (heat and
that of the middle (heat, the +ri)e of the middle (heat )omes out
to ha'e &een a&out !1 1Es- Fd-, or a&out si1 oun)es and one8third
of an oun)e of sil'er-
"rom 16E1 to 16B6, &oth in)lusi'e, the a'era*e +ri)e of the
same measure of the &est (heat at the same mar0et a++ears, from
the same a))ounts, to ha'e &een !E 1Cs-/ from (hi)h ma0in* the
li0e dedu)tions as in the fore*oin* )ase, the a'era*e +ri)e of
the quarter of ei*ht &ushels of middle (heat )omes out to ha'e
&een !1 1Fs- 6d-, or a&out se'en oun)es and t(o8thirds of an
oun)e of sil'er-
T#IRD $RIOD
.et(een 16BC and 16GC, or a&out 16B6, the effe)t of the
dis)o'ery of the mines of Ameri)a in redu)in* the 'alue of sil'er
a++ears to ha'e &een )om+leted, and the 'alue of that metal seems
ne'er to ha'e sun0 lo(er in +ro+ortion to that of )orn than it
(as a&out that time- It seems to ha'e risen some(hat in the
)ourse of the +resent )entury, and it had +ro&a&ly &e*un to do so
e'en some time &efore the end of the last-
"rom 16B7 to 17CC, &oth in)lusi'e, &ein* the si1ty8four last
years of the last )entury, the a'era*e +ri)e of the quarter of
nine &ushels of the &est (heat at Windsor mar0et a++ears, from
the same a))ounts, to ha'e &een !E 11s- O 1KBd-, (hi)h is only 1s
O 1KBd- dearer than it had &een durin* the si1teen years &efore-
.ut in the )ourse of these si1ty8four years there ha++ened t(o
e'ents (hi)h must ha'e +rodu)ed a mu)h *reater s)ar)ity of )orn
than (hat the )ourse of the seasons (ould other(ise ha'e
o))asioned, and (hi)h, therefore, (ithout su++osin* any further
redu)tion in the 'alue of sil'er, (ill mu)h more than a))ount for
this 'ery small enhan)ement of +ri)e-
The first of these e'ents (as the )i'il (ar, (hi)h, &y
dis)oura*in* tilla*e and interru+tin* )ommer)e, must ha'e raised
the +ri)e of )orn mu)h a&o'e (hat the )ourse of the seasons (ould
other(ise ha'e o))asioned- It must ha'e had this effe)t more or
less at all the different mar0ets in the 0in*dom, &ut
+arti)ularly at those in the nei*h&ourhood of !ondon, (hi)h
require to &e su++lied from the *reatest distan)e- In 16G?,
a))ordin*ly, the +ri)e of the &est (heat at Windsor mar0et
a++ears, from the same a))ounts, to ha'e &een !G Hs-, and in 16GF
to ha'e &een !G the quarter of nine &ushels- The e1)ess of those
t(o years a&o'e !E 1Cs- 9the a'era*e +ri)e of the si1teen years
+re)edin* 16B7: is !B Hs-/ (hi)h di'ided amon* the si1ty8four
last years of the last )entury (ill alone 'ery nearly a))ount for
that small enhan)ement of +ri)e (hi)h seems to ha'e ta0en +la)e
in them- These, ho(e'er, thou*h the hi*hest, are &y no means the
only hi*h +ri)es (hi)h seem to ha'e &een o))asioned &y the )i'il
(ars-
The se)ond e'ent (as the &ounty u+on the e1+ortation of )orn
*ranted in 16??- The &ounty, it has &een thou*ht &y many +eo+le,
&y en)oura*in* tilla*e, may, in a lon* )ourse of years, ha'e
o))asioned a *reater a&undan)e, and )onsequently a *reater
)hea+ness of )orn in the home8mar0et than (hat (ould other(ise
ha'e ta0en +la)e there- #o( far the &ounty )ould +rodu)e this
effe)t at any time, I shall e1amine hereafter/ I shall only
o&ser'e at +resent that, &et(een 16?? and 17CC, it had not time
to +rodu)e any su)h effe)t- Durin* this short +eriod its only
effe)t must ha'e &een, &y en)oura*in* the e1+ortation of the
sur+lus +rodu)e of e'ery year, and there&y hinderin* the
a&undan)e of one year from )om+ensatin* the s)ar)ity of another,
to raise the +ri)e in the home8mar0et- The s)ar)ity (hi)h
+re'ailed in $n*land from 16FB to 16FF, &oth in)lusi'e, thou*h no
dou&t +rin)i+ally o(in* to the &adness of the seasons, and,
therefore, e1tendin* throu*h a )onsidera&le +art of $uro+e, must
ha'e &een some(hat enhan)ed &y the &ounty- In 16FF, a))ordin*ly,
the further e1+ortation of )orn (as +rohi&ited for nine months-
There (as a third e'ent (hi)h o))urred in the )ourse of the
same +eriod, and (hi)h, thou*h it )ould not o))asion any s)ar)ity
of )orn, nor, +erha+s, any au*mentation in the real quantity of
sil'er (hi)h (as usually +aid for it, must ne)essarily ha'e
o))asioned some au*mentation in the nominal sum- This e'ent (as
the *reat de&asement of the sil'er )oin, &y )li++in* and (earin*-
This e'il had &e*un in the rei*n of Charles II and had *one on
)ontinually in)reasin* till 16FH/ at (hi)h time, as (e may learn
from 4r- !o(ndes, the )urrent sil'er )oin (as, at an a'era*e,
near fi'e8and8t(enty +er )ent &elo( its standard 'alue- .ut the
nominal sum (hi)h )onstitutes the mar0et +ri)e of e'ery )ommodity
is ne)essarily re*ulated, not so mu)h &y the quantity of sil'er,
(hi)h, a))ordin* to the standard, ou*ht to &e )ontained in it, as
&y that (hi)h, it is found &y e1+erien)e, a)tually is )ontained
in it- This nominal sum, therefore, is ne)essarily hi*her (hen
the )oin is mu)h de&ased &y )li++in* and (earin* than (hen near
to its standard 'alue-
In the )ourse of the +resent )entury, the sil'er )oin has
not at any time &een more &elo( its standard (ei*ht than it is at
+resent- .ut thou*h 'ery mu)h defa)ed, its 'alue has &een 0e+t u+
&y that of the *old )oin for (hi)h it is e1)han*ed- "or thou*h
&efore the late re)oina*e, the *old )oin (as a *ood deal defa)ed
too, it (as less so than the sil'er- In 16FH, on the )ontrary,
the 'alue of the sil'er )oin (as not 0e+t u+ &y the *old )oin/ a
*uinea then )ommonly e1)han*in* for thirty shillin*s of the (orn
and )li+t sil'er- .efore the late re)oina*e of the *old, the
+ri)e of sil'er &ullion (as seldom hi*her than fi'e shillin*s and
se'en+en)e an oun)e, (hi)h is &ut fi'e+en)e a&o'e the mint +ri)e-
.ut in 16FH, the )ommon +ri)e of sil'er &ullion (as si1 shillin*s
and fi'e+en)e an oun)e, (hi)h is fifteen+en)e a&o'e the mint
+ri)e- $'en &efore the late re)oina*e of the *old, therefore, the
)oin, *old and sil'er to*ether, (hen )om+ared (ith sil'er
&ullion, (as not su++osed to &e more than ei*ht +er )ent &elo(
its standard 'alue- In 16FH, on the )ontrary, it had &een
su++osed to &e near fi'e8and8t(enty +er )ent &elo( that 'alue-
.ut in the &e*innin* of the +resent )entury, that is, immediately
after the *reat re)oina*e in %in* William=s time- the *reater
+art of the )urrent sil'er )oin must ha'e &een still nearer to
its standard (ei*ht than it is at +resent- In the )ourse of the
+resent )entury, too, there has &een no *reat +u&li) )alamity,
su)h as the )i'il (ar, (hi)h )ould either dis)oura*e tilla*e, or
interru+t the interior )ommer)e of the )ountry- And thou*h the
&ounty, (hi)h has ta0en +la)e throu*h the *reater +art of this
)entury, must al(ays raise the +ri)e of )orn some(hat hi*her than
it other(ise (ould &e in the a)tual state of tilla*e/ yet as, in
the )ourse of this )entury, the &ounty has had full time to
+rodu)e all the *ood effe)ts )ommonly im+uted to it, to en)oura*e
tilla*e, and there&y to in)rease the quantity of )orn in the home
mar0et, it may, u+on the +rin)i+les of a system (hi)h I shall
e1+lain and e1amine hereafter, &e su++osed to ha'e done somethin*
to lo(er the +ri)e of that )ommodity the one (ay, as (ell as to
raise it the other- It is &y many +eo+le su++osed to ha'e done
more- In the si1ty8four first years of the +resent )entury
a))ordin*ly the a'era*e +ri)e of the quarter of nine &ushels of
the &est (heat at Windsor mar0et a++ears, &y the a))ounts of $ton
Colle*e, to ha'e &een !E os- 6 1DEd-, (hi)h is a&out ten
shillin*s and si1+en)e, or more than fi'e8and8t(enty +er )ent,
)hea+er than it had &een durin* the si1ty8four last years of the
last )entury/ and a&out Fs- 6d- )hea+er than it had &een durin*
the si1teen years +re)edin* 16B6, (hen the dis)o'ery of the
a&undant mines of Ameri)a may &e su++osed to ha'e +rodu)ed its
full effe)t/ and a&out one shillin* )hea+er than it had &een in
the t(enty8si1 years +re)edin* 16EC, &efore that dis)o'ery )an
(ell &e su++osed to ha'e +rodu)ed its full effe)t- A))ordin* to
this a))ount, the a'era*e +ri)e of middle (heat, durin* these
si1ty8four first years of the +resent )entury, )omes out to ha'e
&een a&out thirty8t(o shillin*s the quarter of ei*ht &ushels-
The 'alue of sil'er, therefore, seems to ha'e risen some(hat
in +ro+ortion to that of )orn durin* the )ourse of the +resent
)entury, and it had +ro&a&ly &e*un to do so e'en some time &efore
the end of the last-
In 16?7, the +ri)e of the quarter of nine &ushels of the
&est (heat at Windsor mar0et (as !1 Hs- Ed- the lo(est +ri)e at
(hi)h it had e'er &een from 1HFH-
In 16??, 4r- 6re*ory %in*, a man famous for his 0no(led*e in
matters of this 0ind, estimated the a'era*e +ri)e of (heat in
years of moderate +lenty to &e to the *ro(er Bs- 6d- the &ushel,
or ei*ht8and8t(enty shillin*s the quarter- The *ro(er=s +ri)e I
understand to &e the same (ith (hat is sometimes )alled the
)ontra)t +ri)e, or the +ri)e at (hi)h a farmer )ontra)ts for a
)ertain num&er of years to deli'er a )ertain quantity of )orn to
a dealer- As a )ontra)t of this 0ind sa'es the farmer the e1+ense
and trou&le of mar0etin*, the )ontra)t +ri)e is *enerally lo(er
than (hat is su++osed to &e the a'era*e mar0et +ri)e- 4r- %in*
had 2ud*ed ei*ht8and8t(enty shillin*s the quarter to &e at that
time the ordinary )ontra)t +ri)e in years of moderate +lenty-
.efore the s)ar)ity o))asioned &y the late e1traordinary )ourse
of &ad seasons, it (as, I ha'e &een assured, the ordinary
)ontra)t +ri)e in all )ommon years-
In 16?? (as *ranted the arliamentary &ounty u+on the
e1+ortation of )orn- The )ountry *entlemen, (ho then )om+osed a
still *reater +ro+ortion of the le*islature than they do at
+resent, had felt that the money +ri)e of )orn (as fallin*- The
&ounty (as an e1+edient to raise it artifi)ially to the hi*h
+ri)e at (hi)h it had frequently &een sold in the times of
Charles I and III- It (as to ta0e +la)e, therefore, till (heat
(as so hi*h as forty8ei*ht shillin*s the quarter, that is, t(enty
shillin*s, or fi'e8se'enths dearer than 4r- %in* had in that 'ery
year estimated the *ro(er=s +ri)e to &e in times of moderate
+lenty- If his )al)ulations deser'e any +art of the re+utation
(hi)h they ha'e o&tained 'ery uni'ersally, ei*ht8and8forty
shillin*s the quarter (as a +ri)e (hi)h, (ithout some su)h
e1+edient as the &ounty, )ould not at that time &e e1+e)ted,
e1)e+t in years of e1traordinary s)ar)ity- .ut the *o'ernment of
%in* William (as not then fully settled- It (as in no )ondition
to refuse anythin* to the )ountry *entlemen, from (hom it (as at
that 'ery time soli)itin* the first esta&lishment of the annual
land8ta1-
The 'alue of sil'er, therefore, in +ro+ortion to that of
)orn, had +ro&a&ly risen some(hat &efore the end of the last
)entury/ and it seems to ha'e )ontinued to do so durin* the
)ourse of the *reater +art of the +resent/ thou*h the ne)essary
o+eration of the &ounty must ha'e hindered that rise from &ein*
so sensi&le as it other(ise (ould ha'e &een in the a)tual state
of tilla*e-
In +lentiful years the &ounty, &y o))asionin* an
e1traordinary e1+ortation, ne)essarily raises the +ri)e of )orn
a&o'e (hat it other(ise (ould &e in those years- To en)oura*e
tilla*e, &y 0ee+in* u+ the +ri)e of )orn e'en in the most
+lentiful years, (as the a'o(ed end of the institution-
In years of *reat s)ar)ity, indeed, the &ounty has *enerally
&een sus+ended- It must, ho(e'er, ha'e had some effe)t e'en u+on
the +ri)es of many of those years- .y the e1traordinary
e1+ortation (hi)h it o))asions in years of +lenty, it must
frequently hinder the +lenty of one year from )om+ensatin* the
s)ar)ity of another-
.oth in years of +lenty and in years of s)ar)ity, therefore,
the &ounty raises the +ri)e of )orn a&o'e (hat it naturally (ould
&e in the a)tual state of tilla*e- If, durin* the si1ty8four
first years of the +resent )entury, therefore, the a'era*e +ri)e
has &een lo(er than durin* the si1ty8four last years of the last
)entury, it must, in the same state of tilla*e, ha'e &een mu)h
more so, had it not &een for this o+eration of the &ounty-
.ut (ithout the &ounty, it may &e said, the state of tilla*e
(ould not ha'e &een the same- What may ha'e &een the effe)ts of
this institution u+on the a*ri)ulture of the )ountry, I shall
endea'our to e1+lain hereafter, (hen I )ome to treat +arti)ularly
of &ounties- I shall only o&ser'e at +resent that this rise in
the 'alue of sil'er, in +ro+ortion to that of )orn, has not &een
+e)uliar to $n*land- It has &een o&ser'ed to ha'e ta0en +la)e in
"ran)e, durin* the same +eriod, and nearly in the same +ro+ortion
too, &y three 'ery faithful, dili*ent, and la&orious )olle)tors
of the +ri)es of )orn, 4r- Du+re de St- 4aur, 4r- 4essan)e, and
the author of the $ssay on the +oli)e of *rain- .ut in "ran)e,
till 176G, the e1+ortation of *rain (as &y la( +rohi&ited/ and it
is some(hat diffi)ult to su++ose that nearly the same diminution
of +ri)e (hi)h too0 +la)e in one )ountry, not(ithstandin* this
+rohi&ition, should in another &e o(in* to the e1traordinary
en)oura*ement *i'en to e1+ortation-
It (ould &e more +ro+er, +erha+s, to )onsider this 'ariation
in the a'era*e money +ri)e of )orn as the effe)t rather of some
*radual rise in the real 'alue of sil'er in the $uro+ean mar0et
than of any fall in the real a'era*e 'alue of )orn- Corn, it has
already &een o&ser'ed, is at distant +eriods of time a more
a))urate measure of 'alue than either sil'er, or +erha+s any
other )ommodity- When, after the dis)o'ery of the a&undant mines
of Ameri)a, )orn rose to three and four times its former money
+ri)e, this )han*e (as uni'ersally as)ri&ed, not to any rise in
the real 'alue of )orn, &ut to a fall in the real 'alue of
sil'er- If durin* the si1ty8four first years of the +resent
)entury, therefore, the a'era*e money +ri)e of )orn has fallen
some(hat &elo( (hat it had &een durin* the *reater +art of the
last )entury, (e should in the same manner im+ute this )han*e,
not to any fall in the real 'alue of )orn, &ut to some rise in
the real 'alue of sil'er in the $uro+ean mar0et-
The hi*h +ri)e of )orn durin* these ten or t(el'e years
+ast, indeed, has o))asioned a sus+i)ion that the real 'alue of
sil'er still )ontinues to fall in the $uro+ean mar0et- This hi*h
+ri)e of )orn, ho(e'er, seems e'idently to ha'e &een the effe)t
of the e1traordinary unfa'oura&leness of the seasons, and ou*ht
therefore to &e re*arded, not as a +ermanent, &ut as a transitory
and o))asional e'ent- The seasons for these ten or t(el'e years
+ast ha'e &een unfa'oura&le throu*h the *reater +art of $uro+e/
and the disorders of oland ha'e 'ery mu)h in)reased the s)ar)ity
in all those )ountries (hi)h, in dear years, used to &e su++lied
from that mar0et- So lon* a )ourse of &ad seasons, thou*h not a
'ery )ommon e'ent, is &y no means a sin*ular one/ and (hoe'er has
inquired mu)h into the history of the +ri)es of )orn in former
times (ill &e at no loss to re)olle)t se'eral other e1am+les of
the same 0ind- Ten years of e1traordinary s)ar)ity, &esides, are
not more (onderful than ten years of e1traordinary +lenty- The
lo( +ri)e of )orn from 17G1 to 17HC, &oth in)lusi'e, may 'ery
(ell &e set in o++osition to its hi*h +ri)e durin* these last
ei*ht or ten years- "rom 17G1 to 17HC, the a'era*e +ri)e of the
quarter of nine &ushels of the &est (heat at Windsor mar0et, it
a++ears from the a))ounts of $ton Colle*e, (as only !1 1Bs- F
1DEd-, (hi)h is nearly 6s- Bd- &elo( the a'era*e +ri)e of the
si1ty8four first years of the +resent )entury- The a'era*e +ri)e
of the quarter of ei*ht &ushels of middle (heat )omes out,
a))ordin* to this a))ount, to ha'e &een, durin* these ten years,
only H1 6s- ?d-
.et(een 17G1 and 17HC, ho(e'er, the &ounty must ha'e
hindered the +ri)e of )orn from fallin* so lo( in the home mar0et
as it naturally (ould ha'e done- Durin* these ten years the
quantity of all sorts of *rain e1+orted, it a++ears from the
)ustom8house &oo0s, amounted to no less than ei*ht millions
t(enty8nine thousand one hundred and fifty8si1 quarters one
&ushel- The &ounty +aid for this amounted to !1,H1G,F6E 17s- G
1DEd- In 17GF a))ordin*ly, 4r- elham, at that time rime
4inister, o&ser'ed to the #ouse of Commons that for the three
years +re)edin* a 'ery e1traordinary sum had &een +aid as &ounty
for the e1+ortation of )orn- #e had *ood reason to ma0e this
o&ser'ation, and in the follo(in* year he mi*ht ha'e had still
&etter- In that sin*le year the &ounty +aid amounted to no less
than !BEG,176 1Cs- 6d- It is unne)essary to o&ser'e ho( mu)h this
for)ed e1+ortation must ha'e raised the +ri)e of )orn a&o'e (hat
it other(ise (ould ha'e &een in the home mar0et-
At the end of the a))ounts anne1ed to this )ha+ter the
reader (ill find the +arti)ular a))ount of those ten years
se+arated from the rest- #e (ill find there, too, the +arti)ular
a))ount of the +re)edin* ten years, of (hi)h the a'era*e is
li0e(ise &elo(, thou*h not so mu)h &elo(, the *eneral a'era*e of
the si1ty8four first years of the )entury- The year 17GC,
ho(e'er, (as a year of e1traordinary s)ar)ity- These t(enty years
+re)edin* 17HC may 'ery (ell &e set in o++osition to the t(enty
+re)edin* 177C- As the former (ere a *ood deal &elo( the *eneral
a'era*e of the )entury, not(ithstandin* the inter'ention of one
or t(o dear years/ so the latter ha'e &een a *ood deal a&o'e it,
not(ithstandin* the inter'ention of one or t(o )hea+ ones, of
17HF, for e1am+le- If the former ha'e not &een as mu)h &elo( the
*eneral a'era*e as the latter ha'e &een a&o'e it, (e ou*ht
+ro&a&ly to im+ute it to the &ounty- The )han*e has e'idently
&een too sudden to &e as)ri&ed to any )han*e in the 'alue of
sil'er, (hi)h is al(ays slo( and *radual- The suddenness of the
effe)t )an &e a))ounted for only &y a )ause (hi)h )an o+erate
suddenly, the a))idental 'ariation of the seasons-
The money +ri)e of la&our in 6reat .ritain has, indeed,
risen durin* the )ourse of the +resent )entury- This, ho(e'er,
seems to &e the effe)t, not so mu)h of any diminution in the
'alue of sil'er in the $uro+ean mar0et, as of an in)rease in the
demand for la&our in 6reat .ritain, arisin* from the *reat, and
almost uni'ersal +ros+erity of the )ountry- In "ran)e, a )ountry
not alto*ether so +ros+erous, the money +ri)e of la&our has,
sin)e the middle of the last )entury, &een o&ser'ed to sin0
*radually (ith the a'era*e money +ri)e of )orn- .oth in the last
)entury and in the +resent the day8(a*es of )ommon la&our are
there said to ha'e &een +retty uniformly a&out the t(entieth +art
of the a'era*e +ri)e of the se+tier of (heat, a measure (hi)h
)ontains a little more than four Win)hester &ushels- In 6reat
.ritain the real re)om+ense of la&our, it has already &een sho(n,
the real quantities of the ne)essaries and )on'enien)ies of life
(hi)h are *i'en to the la&ourer, has in)reased )onsidera&ly
durin* the )ourse of the +resent )entury- The rise in its money
+ri)e seems to ha'e &een the effe)t, not of any diminution of the
'alue of sil'er in the *eneral mar0et of $uro+e, &ut of a rise in
the real +ri)e of la&our in the +arti)ular mar0et of 6reat
.ritain, o(in* to the +e)uliarly ha++y )ir)umstan)es of the
)ountry-
"or some time after the first dis)o'ery of Ameri)a, sil'er
(ould )ontinue to sell at its former, or not mu)h &elo( its
former +ri)e- The +rofits of minin* (ould for some time &e 'ery
*reat, and mu)h a&o'e their natural rate- Those (ho im+orted that
metal into $uro+e, ho(e'er, (ould soon find that the (hole annual
im+ortation )ould not &e dis+osed of at this hi*h +ri)e- Sil'er
(ould *radually e1)han*e for a smaller and a smaller quantity of
*oods- Its +ri)e (ould sin0 *radually lo(er and lo(er till it
fell to its natural +ri)e, or to (hat (as 2ust suffi)ient to +ay,
a))ordin* to their natural rates, the (a*es of the la&our, the
+rofits of the sto)0, and the rent of the land, (hi)h must &e
+aid in order to &rin* it from the mine to the mar0et- In the
*reater +art of the sil'er mines of eru, the ta1 of the %in* of
S+ain, amountin* to a tenth of the *ross +rodu)e, eats u+, it has
already &een o&ser'ed, the (hole rent of the land- This ta1 (as
ori*inally a half/ it soon after(ards fell to a third, then to a
fifth, and at last to a tenth, at (hi)h rate it still )ontinues-
In the *reater +art of the sil'er mines of eru this, it seems,
is all that remains after re+la)in* the sto)0 of the underta0er
of the (or0, to*ether (ith its ordinary +rofits/ and it seems to
&e uni'ersally a)0no(led*ed that these +rofits, (hi)h (ere on)e
'ery hi*h, are no( as lo( as they )an (ell &e, )onsistently (ith
)arryin* on their (or0s-
The ta1 of the %in* of S+ain (as redu)ed to a fifth +art of
the re*istered sil'er in 1HCG, one8and8forty years &efore 1HGH,
the date of the dis)o'ery of the mines of otosi- In the )ourse
of ninety years, or &efore 16B6, these mines, the most fertile in
all Ameri)a, had time suffi)ient to +rodu)e their full effe)t, or
to redu)e the 'alue of sil'er in the $uro+ean mar0et as lo( as it
)ould (ell fall, (hile it )ontinued to +ay this ta1 to the %in*
of S+ain- Ninety years is time suffi)ient to redu)e any
)ommodity, of (hi)h there is no mono+oly, to its natural +ri)e,
or to the lo(est +ri)e at (hi)h, (hile it +ays a +arti)ular ta1,
it )an )ontinue to &e sold for any )onsidera&le time to*ether-
The +ri)e of sil'er in the $uro+ean mar0et mi*ht +erha+s
ha'e fallen still lo(er, and it mi*ht ha'e &e)ome ne)essary
either to redu)e the ta1 u+on it, not only to one tenth, as in
17B6, &ut to one t(entieth, in the same manner as that u+on *old,
or to *i'e u+ (or0in* the *reater +art of the Ameri)an mines
(hi)h are no( (rou*ht- The *radual in)rease of the demand for
sil'er, or the *radual enlar*ement of the mar0et for the +rodu)e
of the sil'er mines of Ameri)a, is +ro&a&ly the )ause (hi)h has
+re'ented this from ha++enin*, and (hi)h has not only 0e+t u+ the
'alue of sil'er in the $uro+ean mar0et, &ut has +erha+s e'en
raised it some(hat hi*her than it (as a&out the middle of the
last )entury-
Sin)e the first dis)o'ery of Ameri)a, the mar0et for the
+rodu)e of its sil'er mines has &een *ro(in* *radually more and
more e1tensi'e-
"irst, the mar0et of $uro+e has &e)ome *radually more and
more e1tensi'e- Sin)e the dis)o'ery of Ameri)a, the *reater +art
of $uro+e has &een mu)h im+ro'ed- $n*land, #olland, "ran)e, and
6ermany/ e'en S(eden, Denmar0, and Russia, ha'e all ad'an)ed
)onsidera&ly &oth in a*ri)ulture and in manufa)tures- Italy seems
not to ha'e *one &a)0(ards- The fall of Italy +re)eded the
)onquest of eru- Sin)e that time it seems rather to ha'e
re)o'ered a little- S+ain and ortu*al, indeed, are su++osed to
ha'e *one &a)0(ards- ortu*al, ho(e'er, is &ut a 'ery small +art
of $uro+e, and the de)lension of S+ain is not, +erha+s, so *reat
as is )ommonly ima*ined- In the &e*innin* of the si1teenth
)entury, S+ain (as a 'ery +oor )ountry, e'en in )om+arison (ith
"ran)e, (hi)h has &een so mu)h im+ro'ed sin)e that time- It (as
the (ell 0no(n remar0 of the $m+eror Charles 5, (ho had tra'elled
so frequently throu*h &oth )ountries, that e'erythin* a&ounded in
"ran)e, &ut that e'erythin* (as (antin* in S+ain- The in)reasin*
+rodu)e of the a*ri)ulture and manufa)tures of $uro+e must
ne)essarily ha'e required a *radual in)rease in the quantity of
sil'er )oin to )ir)ulate it/ and the in)reasin* num&er of (ealthy
indi'iduals must ha'e required the li0e in)rease in the quantity
of their +late and other ornaments of sil'er-
Se)ondly, Ameri)a is itself a ne( mar0et for the +rodu)e of
its o(n sil'er mines/ and as its ad'an)es in a*ri)ulture,
industry, and +o+ulation are mu)h more ra+id than those of the
most thri'in* )ountries in $uro+e, its demand must in)rease mu)h
more ra+idly- The $n*lish )olonies are alto*ether a ne( mar0et,
(hi)h, +artly for )oin and +artly for +late, requires a
)ontinually au*mentin* su++ly of sil'er throu*h a *reat )ontinent
(here there ne'er (as any demand &efore- The *reater +art, too,
of the S+anish and ortu*uese )olonies are alto*ether ne(
mar0ets- Ne( 6ranada, the 7u)atan, ara*uay, and the .ra;ils
(ere, &efore dis)o'ered &y the $uro+eans, inha&ited &y sa'a*e
nations (ho had neither arts nor a*ri)ulture- A )onsidera&le
de*ree of &oth has no( &een introdu)ed into all of them- $'en
4e1i)o and eru, thou*h they )annot &e )onsidered as alto*ether
ne( mar0ets, are )ertainly mu)h more e1tensi'e ones than they
e'er (ere &efore- After all the (onderful tales (hi)h ha'e &een
+u&lished )on)ernin* the s+lendid state of those )ountries in
an)ient times, (hoe'er reads, (ith any de*ree of so&er 2ud*ment,
the history of their first dis)o'ery and )onquest, (ill e'idently
dis)ern that, in arts, a*ri)ulture, and )ommer)e, their
inha&itants (ere mu)h more i*norant than the Tartars of the
U0raine are at +resent- $'en the eru'ians, the more )i'ilised
nation of the t(o, thou*h they made use of *old and sil'er as
ornaments, had no )oined money of any 0ind- Their (hole )ommer)e
(as )arried on &y &arter, and there (as a))ordin*ly s)ar)e any
di'ision of la&our amon* them- Those (ho )ulti'ated the *round
(ere o&li*ed to &uild their o(n houses, to ma0e their o(n
household furniture, their o(n )lothes, shoes, and instruments of
a*ri)ulture- The fe( artifi)ers amon* them are said to ha'e &een
all maintained &y the so'erei*n, the no&les, and the +riests, and
(ere +ro&a&ly their ser'ants or sla'es- All the an)ient arts of
4e1i)o and eru ha'e ne'er furnished one sin*le manufa)ture to
$uro+e- The S+anish armies, thou*h they s)ar)e e'er e1)eeded fi'e
hundred men, and frequently did not amount to half that num&er,
found almost e'ery(here *reat diffi)ulty in +ro)urin*
su&sisten)e- The famines (hi)h they are said to ha'e o))asioned
almost (here'er they (ent, in )ountries, too, (hi)h at the same
time are re+resented as 'ery +o+ulous and (ell )ulti'ated,
suffi)iently demonstrate that the story of this +o+ulousness and
hi*h )ulti'ation is in a *reat measure fa&ulous- The S+anish
)olonies are under a *o'ernment in many res+e)ts less fa'oura&le
to a*ri)ulture, im+ro'ement, and +o+ulation than that of the
$n*lish )olonies- They seem, ho(e'er, to &e ad'an)in* in all
these mu)h more ra+idly than any )ountry in $uro+e- In a fertile
soil and ha++y )limate, the *reat a&undan)e and )hea+ness of
land, a )ir)umstan)e )ommon to all ne( )olonies, is, it seems, so
*reat an ad'anta*e as to )om+ensate many defe)ts in )i'il
*o'ernment- "re;ier, (ho 'isited eru in 171B, re+resents !ima as
)ontainin* &et(een t(enty8fi'e and t(enty8ei*ht thousand
inha&itants- Ulloa, (ho resided in the same )ountry &et(een 17GC
and 17G6, re+resents it as )ontainin* more than fifty thousand-
The differen)e in their a))ounts of the +o+ulousness of se'eral
other +rin)i+al to(ns in Chili and eru is nearly the same/ and
as there seems to &e no reason to dou&t of the *ood information
of either, it mar0s an in)rease (hi)h is s)ar)e inferior to that
of the $n*lish )olonies- Ameri)a, therefore, is a ne( mar0et for
the +rodu)e of its o(n sil'er mines, of (hi)h the demand must
in)rease mu)h more ra+idly than that of the most thri'in* )ountry
in $uro+e-
Thirdly, the $ast Indies is another mar0et for the +rodu)e
of the sil'er mines of Ameri)a, and a mar0et (hi)h, from the time
of the first dis)o'ery of those mines, has &een )ontinually
ta0in* off a *reater and a *reater quantity of sil'er- Sin)e that
time, the dire)t trade &et(een Ameri)a and the $ast Indies, (hi)h
is )arried on &y means of the A)a+ul)o shi+s, has &een
)ontinually au*mentin*, and the indire)t inter)ourse &y the (ay
of $uro+e has &een au*mentin* in a still *reater +ro+ortion-
Durin* the si1teenth )entury, the ortu*uese (ere the only
$uro+ean nation (ho )arried on any re*ular trade to the $ast
Indies- In the last years of that )entury the Dut)h &e*un to
en)roa)h u+on this mono+oly, and in a fe( years e1+elled them
from their +rin)i+al settlements in India- Durin* the *reater
+art of the last )entury those t(o nations di'ided the most
)onsidera&le +art of the $ast India trade &et(een them/ the trade
of the Dut)h )ontinually au*mentin* in a still *reater +ro+ortion
than that of the ortu*uese de)lined- The $n*lish and "ren)h
)arried on some trade (ith India in the last )entury, &ut it has
&een *reatly au*mented in the )ourse of the +resent- The $ast
India trade of the S(edes and Danes &e*an in the )ourse of the
+resent )entury- $'en the 4us)o'ites no( trade re*ularly (ith
China &y a sort of )ara'ans (hi)h *o o'erland throu*h Si&eria and
Tartary to e0in- The $ast India trade of all these nations, if
(e e1)e+t that of the "ren)h, (hi)h the last (ar had (ell ni*h
annihilated, had &een almost )ontinually au*mentin*- The
in)reasin* )onsum+tion of $ast India *oods in $uro+e is, it
seems, so *reat as to afford a *radual in)rease of em+loyment to
them all- Tea, for e1am+le, (as a dru* 'ery little used in $uro+e
&efore the middle of the last )entury- At +resent the 'alue of
the tea annually im+orted &y the $n*lish $ast India Com+any, for
the use of their o(n )ountrymen, amounts to more than a million
and a half a year/ and e'en this is not enou*h/ a *reat deal more
&ein* )onstantly smu**led into the )ountry from the +orts of
#olland, from 6otten&ur*h in S(eden, and from the )oast of "ran)e
too, as lon* as the "ren)h $ast India Com+any (as in +ros+erity-
The )onsum+tion of the +or)elain of China, of the s+i)eries of
the 4olu))as, of the +ie)e *oods of .en*al, and of innumera&le
other arti)les, has in)reased 'ery nearly in a li0e +ro+ortion-
The tonna*e a))ordin*ly of all the $uro+ean shi++in* em+loyed in
the $ast India trade, at any one time durin* the last )entury,
(as not, +erha+s, mu)h *reater than that of the $n*lish $ast
India Com+any &efore the late redu)tion of their shi++in*-
.ut in the $ast Indies, +arti)ularly in China and Indostan,
the 'alue of the +re)ious metals, (hen the $uro+eans first &e*an
to trade to those )ountries, (as mu)h hi*her than in $uro+e/ and
it still )ontinues to &e so- In ri)e )ountries, (hi)h *enerally
yield t(o, sometimes three )ro+s in the year, ea)h of them more
+lentiful than any )ommon )ro+ of )orn, the a&undan)e of food
must &e mu)h *reater than in any )orn )ountry of equal e1tent-
Su)h )ountries are a))ordin*ly mu)h more +o+ulous- In them, too,
the ri)h, ha'in* a *reater su+era&undan)e of food to dis+ose of
&eyond (hat they themsel'es )an )onsume, ha'e the means of
+ur)hasin* a mu)h *reater quantity of the la&our of other +eo+le-
The retinue of a *randee in China or Indostan a))ordin*ly is, &y
all a))ounts, mu)h more numerous and s+lendid than that of the
ri)hest su&2e)ts in $uro+e- The same su+era&undan)e of food, of
(hi)h they ha'e the dis+osal, ena&les them to *i'e a *reater
quantity of it for all those sin*ular and rare +rodu)tions (hi)h
nature furnishes &ut in 'ery small quantities/ su)h as the
+re)ious metals and the +re)ious stones, the *reat o&2e)ts of the
)om+etition of the ri)h- Thou*h the mines, therefore, (hi)h
su++lied the Indian mar0et had &een as a&undant as those (hi)h
su++lied the $uro+ean, su)h )ommodities (ould naturally e1)han*e
for a *reater quantity of food in India than in $uro+e- .ut the
mines (hi)h su++lied the Indian mar0et (ith the +re)ious metals
seem to ha'e &een a *ood deal less a&undant, and those (hi)h
su++lied it (ith the +re)ious stones a *ood deal more so, than
the mines (hi)h su++lied the $uro+ean- The +re)ious metals,
therefore, (ould naturally e1)han*e in India for some(hat a
*reater quantity of the +re)ious stones, and for a mu)h *reater
quantity of food than in $uro+e- The money +ri)e of diamonds, the
*reatest of all su+erfluities, (ould &e some(hat lo(er, and that
of food, the first of all ne)essaries, a *reat deal lo(er in the
one )ountry than in the other- .ut the real +ri)e of la&our, the
real quantity of the ne)essaries of life (hi)h is *i'en to the
la&ourer, it has already &een o&ser'ed, is lo(er &oth in China
and Indostan, the t(o *reat mar0ets of India, than it is throu*h
the *reater +art of $uro+e- The (a*es of the la&ourer (ill there
+ur)hase a smaller quantity of food/ and as the money +ri)e of
food is mu)h lo(er in India than in $uro+e, the money +ri)e of
la&our is there lo(er u+on a dou&le a))ount/ u+on a))ount &oth of
the small quantity of food (hi)h it (ill +ur)hase, and of the lo(
+ri)e of that food- .ut in )ountries of equal art and industry,
the money +ri)e of the *reater +art of manufa)tures (ill &e in
+ro+ortion to the money +ri)e of la&our/ and in manufa)turin* art
and industry, China and Indostan, thou*h inferior, seem not to &e
mu)h inferior to any +art of $uro+e- The money +ri)e of the
*reater +art of manufa)tures, therefore, (ill naturally &e mu)h
lo(er in those *reat em+ires than it is any(here in $uro+e-
Throu*h the *reater +art of $uro+e, too, the e1+ense of
land8)arria*e in)reases 'ery mu)h &oth the real and nominal +ri)e
of most manufa)tures- It )osts more la&our, and therefore more
money, to &rin* first the materials, and after(ards the )om+lete
manufa)ture to mar0et- In China and Indostan the e1tent and
'ariety of inland na'i*ation sa'e the *reater +art of this
la&our, and )onsequently of this money, and there&y redu)e still
lo(er &oth the real and the nominal +ri)e of the *reater +art of
their manufa)tures- U+on all those a))ounts the +re)ious metals
a1e a )ommodity (hi)h it al(ays has &een, and still )ontinues to
&e, e1tremely ad'anta*eous to )arry from $uro+e to India- There
is s)ar)e any )ommodity (hi)h &rin*s a &etter +ri)e there/ or
(hi)h, in +ro+ortion to the quantity of la&our and )ommodities
(hi)h it )osts in $uro+e, (ill +ur)hase or )ommand a *reater
quantity of la&our and )ommodities in India- It is more
ad'anta*eous, too, to )arry sil'er thither than *old/ &e)ause in
China, and the *reater +art of the other mar0ets of India, the
+ro+ortion &et(een fine sil'er and fine *old is &ut as ten, or at
most as t(el'e, to one/ (hereas in $uro+e it is as fourteen or
fifteen to one- In China, and the *reater +art of the other
mar0ets of India, ten, or at most t(el'e, oun)es of sil'er (ill
+ur)hase an oun)e of *old/ in $uro+e it requires from fourteen to
fifteen oun)es- In the )ar*oes, therefore, of the *reater +art of
$uro+ean shi+s (hi)h sail to India, sil'er has *enerally &een one
of the most 'alua&le arti)les- It is the most 'alua&le arti)le in
the A)a+ul)o shi+s (hi)h sail to 4anilla- The sil'er of the ne(
)ontinent seems in this manner to &e one of the +rin)i+al
)ommodities &y (hi)h the )ommer)e &et(een the t(o e1tremities of
the old one is )arried on, and it is &y means of it, in a *reat
measure, that those distant +arts of the (orld are )onne)ted (ith
one another-
In order to su++ly so 'ery (idely e1tended a mar0et, the
quantity of sil'er annually &rou*ht from the mines must not only
&e suffi)ient to su++ort that )ontinual in)rease &oth of )oin and
of +late (hi)h is required in all thri'in* )ountries/ &ut to
re+air that )ontinual (aste and )onsum+tion of sil'er (hi)h ta0es
+la)e in all )ountries (here that metal is used-
The )ontinual )onsum+tion of the +re)ious metals in )oin &y
(earin*, and in +late &oth &y (earin* and )leanin*, is 'ery
sensi&le, and in )ommodities of (hi)h the use is so 'ery (idely
e1tended, (ould alone require a 'ery *reat annual su++ly- The
)onsum+tion of those metals in some +arti)ular manufa)tures,
thou*h it may not +erha+s &e *reater u+on the (hole than this
*radual )onsum+tion, is, ho(e'er, mu)h more sensi&le, as it is
mu)h more ra+id- In the manufa)tures of .irmin*ham alone the
quantity of *old and sil'er annually em+loyed in *ildin* and
+latin*, and there&y disqualified from e'er after(ards a++earin*
in the sha+e of those metals, is said to amount to more than
fifty thousand +ounds sterlin*- We may from then)e form some
notion ho( *reat must &e the annual )onsum+tion in all the
different +arts of the (orld either in manufa)tures of the same
0ind (ith those of .irmin*ham, or in la)es, em&roideries, *old
and sil'er stuffs, the *ildin* of &oo0s, furniture, et)- A
)onsidera&le quantity, too, must &e annually lost in trans+ortin*
those metals from one +la)e to another &oth &y sea and &y land-
In the *reater +art of the *o'ernments of Asia, &esides, the
almost uni'ersal )ustom of )on)ealin* treasures in the &o(els of
the earth, of (hi)h the 0no(led*e frequently dies (ith the +erson
(ho ma0es the )on)ealment, must o))asion the loss of a still
*reater quantity-
The quantity of *old and sil'er im+orted at &oth Cadi; and
!is&on 9in)ludin* not only (hat )omes under re*ister, &ut (hat
may &e su++osed to &e smu**led: amounts, a))ordin* to the &est
a))ounts, to a&out si1 millions sterlin* a year-
A))ordin* to 4r- 4e**ens the annual im+ortation of the
+re)ious metals into S+ain, at an a'era*e of si1 years, 'i;-,
from 17G? to 17HB, &oth in)lusi'e/ and into ortu*al, at an
a'era*e of se'en years, 'i;-, from 17G7 to 17HB, &oth in)lusi'e,
amounted in sil'er to 1,1C1,1C7 +ounds (ei*ht/ and in *old to
EF,FGC +ounds (ei*ht- The sil'er, at si1ty8t(o shillin*s the
+ound Troy, amounts to !B,G1B,GB1 1Cs- sterlin*- The *old, at
forty8four *uineas and a half the +ound Troy, amounts to
!E,BBB,GG6 1Gs- sterlin*- .oth to*ether amount to !H,7G6,?7? Gs-
sterlin*- The a))ount of (hat (as im+orted under re*ister he
assures us is e1a)t- #e *i'es us the detail of the +arti)ular
+la)es from (hi)h the *old and sil'er (ere &rou*ht, and of the
+arti)ular quantity of ea)h metal, (hi)h, a))ordin* to the
re*ister, ea)h of them afforded- #e ma0es an allo(an)e, too, for
the quantity of ea)h metal (hi)h he su++oses may ha'e &een
smu**led- The *reat e1+erien)e of this 2udi)ious mer)hant renders
his o+inion of )onsidera&le (ei*ht-
A))ordin* to the eloquent and, sometimes, (ell8informed
author of the hiloso+hi)al and oliti)al #istory of the
$sta&lishment of the $uro+eans in the t(o Indies, the annual
im+ortation of re*istered *old and sil'er into S+ain, at an
a'era*e of ele'en years, 'i;-, from 17HG to 176G, &oth in)lusi'e,
amounted to 1B,F?G,1?H BDG +iastres of ten reals- On a))ount of
(hat may ha'e &een smu**led, ho(e'er, the (hole annual
im+ortation, he su++oses, may ha'e amounted to se'enteen millions
of +iastres, (hi)h, at Gs- 6d- the +iastre, is equal to
!B,?EH,CCC sterlin*- #e *i'es the detail, too, of the +arti)ular
+la)es from (hi)h the *old and sil'er (ere &rou*ht, and of the
+arti)ular quantities of ea)h metal (hi)h, a))ordin* to the
re*ister, ea)h of them afforded- #e informs us, too, that if (e
(ere to 2ud*e of the quantity of *old annually im+orted from the
.ra;ils into !is&on &y the amount of the ta1 +aid to the %in* of
ortu*al, (hi)h it seems is one8fifth of the standard metal, (e
mi*ht 'alue it at ei*hteen millions of )ru;adoes, or forty8fi'e
millions of "ren)h li'res, equal to a&out t(o millions sterlin*-
On a))ount of (hat may ha'e &een smu**led, ho(e'er, (e may
safely, he says, add to the sum an ei*hth more, or !EHC,CCC
sterlin*, so that the (hole (ill amount to !E,EHC,CCC sterlin*-
A))ordin* to this a))ount, therefore, the (hole annual
im+ortation of the +re)ious metals into &oth S+ain and ortu*al
amounts to a&out !6,C7H,CCC sterlin*-
Se'eral other 'ery (ell authenti)ated, thou*h manus)ri+t,
a))ounts, I ha'e &een assured, a*ree in ma0in* this (hole annual
im+ortation amount at an a'era*e to a&out si1 millions sterlin*/
sometimes a little more, sometimes a little less-
The annual im+ortation of the +re)ious metals into Cadi; and
!is&on, indeed, is not equal to the (hole annual +rodu)e of the
mines of Ameri)a- Some +art is sent annually &y the A)a+ul)o
shi+s to 4anilla/ some +art is em+loyed in the )ontra&and trade
(hi)h the S+anish )olonies )arry on (ith those of other $uro+ean
nations/ and some +art, no dou&t remains in the )ountry- The
mines of Ameri)a, &esides, are &y no means the only *old and
sil'er mines in the (orld- They are, ho(e'er, &y far the most
a&undant- The +rodu)e of all the other mines (hi)h are 0no(n is
insi*nifi)ant, it is a)0no(led*ed, in )om+arison (ith theirs/ and
the far *reater +art of their +rodu)e, it is li0e(ise
a)0no(led*ed, is annually im+orted into Cadi; and !is&on- .ut the
)onsum+tion of .irmin*ham alone, at the rate of fifty thousand
+ounds a year, is equal to the hundred8and8t(entieth +art of this
annual im+ortation at the rate of si1 millions a year- The (hole
annual )onsum+tion of *old and sil'er, therefore, in all the
different )ountries of the (orld (here those metals are used, may
+erha+s &e nearly equal to the (hole annual +rodu)e- The
remainder may &e no more than suffi)ient to su++ly the in)reasin*
demand of all thri'in* )ountries- It may e'en ha'e fallen so far
short of time demand as some(hat to raise the +ri)e of those
metals in the $uro+ean mar0et-
The quantity of &rass and iron annually &rou*ht from the
mine to the mar0et is out of all +ro+ortion *reater than that of
*old and sil'er- We do not, ho(e'er, u+on this a))ount, ima*ine
that those )oarse metals are li0ely to multi+ly &eyond the
demand, or to &e)ome *radually )hea+er and )hea+er- Why should (e
ima*ine that the +re)ious metals are li0ely to do so> The )oarse
metals, indeed, thou*h harder, are +ut to mu)h harder uses, and,
as they are of less 'alue, less )are is em+loyed in their
+reser'ation- The +re)ious metals, ho(e'er, are not ne)essarily
immortal any more than they, &ut are lia&le, too, to &e lost,
(asted, and )onsumed in a *reat 'ariety of (ays-
The +ri)e of all metals, thou*h lia&le to slo( and *radual
'ariations, 'aries less from year to year than that of almost any
other +art of the rude +rodu)e of land/ and the +ri)e of the
+re)ious metals is e'en less lia&le to sudden 'ariations than
that of the )oarse ones- The dura&leness of metals is the
foundation of this e1traordinary steadiness of +ri)e- The )orn
(hi)h (as &rou*ht to mar0et last year (ill &e all or almost all
)onsumed lon* &efore the end of this year- .ut some +art of the
iron (hi)h (as &rou*ht from the mine t(o or three hundred years
a*o may &e still in use, and +erha+s some +art of the *old (hi)h
(as &rou*ht from it t(o or three thousand years a*o- The
different masses of )orn (hi)h in different years must su++ly the
)onsum+tion of the (orld (ill al(ays &e nearly in +ro+ortion to
the res+e)ti'e +rodu)e of those different years- .ut the
+ro+ortion &et(een the different masses of iron (hi)h may &e in
use in t(o different years (ill &e 'ery little affe)ted &y any
a))idental differen)e in the +rodu)e of the iron mines of those
t(o years/ and the +ro+ortion &et(een the masses of *old (ill &e
still less affe)ted &y any su)h differen)e in the +rodu)e of the
*old mines- Thou*h the +rodu)e of the *reater +art of metalli)
mines, therefore, 'aries, +erha+s, still more from year to year
than that of the *reater +art of )orn fields, those 'ariations
ha'e not the same effe)t u+on the +ri)e of the one s+e)ies of
)ommodities as u+on that of the other-
5ARIATIONS IN T#$ ROORTION .$TW$$N T#$ R$S$CTI5$ 5A!U$S
O" 6O!D AND SI!5$R
.efore the dis)o'ery of the mines of Ameri)a, the 'alue of
fine *old to fine sil'er (as re*ulated in the different mints of
$uro+e &et(een the +ro+ortions of one to ten and one to t(el'e/
that is, an oun)e of fine *old (as su++osed to &e (orth from ten
to t(el'e oun)es of fine sil'er- A&out the middle of the last
)entury it )ame to &e re*ulated, &et(een the +ro+ortions of one
to fourteen and one to fifteen/ that is, an oun)e of fine *old
)ame to &e su++osed to &e (orth &et(een fourteen and fifteen
oun)es of fine sil'er- 6old rose in its nominal 'alue, or in the
quantity of sil'er (hi)h (as *i'en for it- .oth metals sun0 in
their real 'alue, or in the quantity of la&our (hi)h they )ould
+ur)hase/ &ut sil'er sun0 more than *old- Thou*h &oth the *old
and sil'er mines of Ameri)a e1)eeded in fertility all those (hi)h
had e'er &een 0no(n &efore, the fertility of the sil'er mines
had, it seems, &een +ro+ortiona&ly still *reater than that of the
*old ones-
The *reat quantities of sil'er )arried annually from $uro+e
to India ha'e, in some of the $n*lish settlements, *radually
redu)ed the 'alue of that metal in +ro+ortion to *old- In the
mint of Cal)utta an oun)e of fine *old is su++osed to &e (orth
fifteen oun)es of fine sil'er, in the same manner as in $uro+e-
It is in the mint +erha+s rated too hi*h for the 'alue (hi)h it
&ears in the mar0et of .en*al- In China, the +ro+ortion of *old
to sil'er still )ontinues as one to ten, or one to t(el'e- In
Aa+an it is said to &e as one to ei*ht-
The +ro+ortion &et(een the quantities of *old and sil'er
annually im+orted into $uro+e, a))ordin* to 4r- 4e**ens=s
a))ount, is as one to t(enty8t(o nearly/ that is, for one oun)e
of *old there are im+orted a little more than t(enty8t(o oun)es
of sil'er- The *reat quantity of sil'er sent annually to the $ast
Indies redu)es, he su++oses, the quantities of those metals (hi)h
remain in $uro+e to the +ro+ortion of one to fourteen or fifteen,
the +ro+ortion of their 'alues- The +ro+ortion &et(een their
'alues, he seems to thin0, must ne)essarily &e the same as that
&et(een their quantities, and (ould therefore &e as one to
t(enty8t(o, (ere it not for this *reater e1+ortation of sil'er-
.ut the ordinary +ro+ortion &et(een the res+e)ti'e 'alues of
t(o )ommodities is not ne)essarily the same as that &et(een the
quantities of them (hi)h are )ommonly in the mar0et- The +ri)e of
an o1, re)0oned at ten *uineas, is a&out threes)ore times the
+ri)e of a lam&, re)0oned at Bs- 6d- It (ould &e a&surd, ho(e'er,
to infer from then)e that there are )ommonly in the mar0et
threes)ore lam&s for one o13 and it (ould &e 2ust as a&surd to
infer, &e)ause an oun)e of *old (ill )ommonly +ur)hase from
fourteen to fifteen oun)es of sil'er, that there are )ommonly in
the mar0et only fourteen or fifteen oun)es of sil'er for one
oun)e of *old-
The quantity of sil'er )ommonly in the mar0et, it is
+ro&a&le is mu)h *reater in +ro+ortion to that of *old than the
'alue of a )ertain quantity of *old is to that of an equal
quantity of sil'er- The (hole quantity of a )hea+ )ommodity
&rou*ht to mar0et is )ommonly not only *reater, &ut of *reater
'alue, than the (hole quantity of a dear one- The (hole quantity
of &read annually &rou*ht to mar0et is not only *reater, &ut of
*reater 'alue than the (hole quantity of &ut)her=s meat/ the
(hole quantity of &ut)her=s meat, than the (hole quantity of
+oultry/ and the (hole quantity of (ild fo(l- There are so many
more +ur)hasers for the )hea+ than for the dear )ommodity that
not only a *reater quantity of it, &ut a *reater 'alue, )an
)ommonly &e dis+osed of- The (hole quantity, therefore, of the
)hea+ )ommodity must )ommonly &e *reater in +ro+ortion to the
(hole quantity of the dear one than the 'alue of a )ertain
quantity of the dear one is to the 'alue of an equal quantity of
the )hea+ one- When (e )om+are the +re)ious metals (ith one
another, sil'er is a )hea+ and *old a dear )ommodity- We ou*ht
naturally to e1+e)t, therefore, that there should al(ays &e in
the mar0et not only a *reater quantity, &ut a *reater 'alue of
sil'er than of *old- !et any man (ho has a little of &oth )om+are
his o(n sil'er (ith his *old +late, and he (ill +ro&a&ly find
that, not only the quantity, &ut the 'alue of the former *reatly
e1)eeds that of the latter- 4any +eo+le, &esides, ha'e a *ood
deal of sil'er (ho ha'e no *old +late, (hi)h, e'en (ith those (ho
ha'e it, is *enerally )onfined to (at)h)ases, snuff8&o1es, and
su)h li0e trin0ets, of (hi)h the (hole amount is seldom of *reat
'alue- In the .ritish )oin, indeed, the 'alue of the *old
+re+onderates *reatly, &ut it is not so in that of all )ountries-
In the )oin of some )ountries the 'alue of the t(o metals is
nearly equal- In the S)ot)h )oin, &efore the union (ith $n*land,
the *old +re+onderated 'ery little, thou*h it did some(hat, as it
a++ears &y the a))ounts of the mint- In the )oin of many
)ountries the sil'er +re+onderates- In "ran)e, the lar*est sums
are )ommonly +aid in that metal, and it is there diffi)ult to *et
more *old than (hat is ne)essary to )arry a&out in your +o)0et-
The su+erior 'alue, ho(e'er, of the sil'er +late a&o'e that of
the *old, (hi)h ta0es +la)e in all )ountries, (ill mu)h more than
)om+ensate the +re+onderan)y of the *old )oin a&o'e the sil'er,
(hi)h ta0es +la)e only in some )ountries-
Thou*h, in one sense of the (ord, sil'er al(ays has &een,
and +ro&a&ly al(ays (ill &e, mu)h )hea+er than *old/ yet in
another sense *old may, +erha+s, in the +resent state of the
S+anish mar0et, &e said to &e some(hat )hea+er than sil'er- A
)ommodity may &e said to &e dear or )hea+, not only a))ordin* to
the a&solute *reatness or smallness of its usual +ri)e, &ut
a))ordin* as that +ri)e is more or less a&o'e the lo(est for
(hi)h it is +ossi&le to &rin* it to mar0et for any )onsidera&le
time to*ether- This lo(est +ri)e is that (hi)h &arely re+la)es,
(ith a moderate +rofit, the sto)0 (hi)h must &e em+loyed in
&rin*in* the )ommodity thither- It is the +ri)e (hi)h affords
nothin* to the landlord, of (hi)h rent ma0es not any )om+onent
+art, &ut (hi)h resol'es itself alto*ether into (a*es and +rofit-
.ut, in the +resent state of the S+anish mar0et, *old is
)ertainly some(hat nearer to this lo(est +ri)e than sil'er- The
ta1 of the %in* of S+ain u+on *old is only one8t(entieth +art of
the standard metal, or fi'e +er )ent/ (hereas his ta1 u+on sil'er
amounts to one8tenth +art of it, or to ten +er )ent- In these
ta1es too, it has already &een o&ser'ed, )onsists the (hole rent
of the *reater +art of the *old and sil'er mines of S+anish
Ameri)a/ and that u+on *old is still (orse +aid than that u+on
sil'er- The +rofits of the underta0ers of *old mines too, as they
more rarely ma0e a fortune, must, in *eneral, &e still more
moderate than those of the underta0ers of sil'er mines- The +ri)e
of S+anish *old, therefore, as it affords &oth less rent and less
+rofit, must, in the S+anish mar0et, &e some(hat nearer to the
lo(est +ri)e for (hi)h it is +ossi&le to &rin* it thither than
the +ri)e of S+anish sil'er- When all e1+enses are )om+uted, the
(hole quantity of the one metal, it (ould seem, )annot, in the
S+anish mar0et, &e dis+osed of so ad'anta*eously as the (hole
quantity of the other- The ta1, indeed, of the %in* of ortu*al
u+on the *old of the .ra;ils is the same (ith the an)ient ta1 of
the %in* of S+ain u+on the sil'er of 4e1i)o and eru/ or
one8fifth +art of the standard metal- It may, therefore, &e
un)ertain (hether to the *eneral mar0et of $uro+e the (hole mass
of Ameri)an *old )omes at a +ri)e nearer to the lo(est for (hi)h
it is +ossi&le to &rin* it thither than the (hole mass of
Ameri)an sil'er-
The +ri)e of diamonds and other +re)ious stones may,
+erha+s, &e still nearer to the lo(est +ri)e at (hi)h it is
+ossi&le to &rin* them to mar0et than e'en the +ri)e of *old-
Thou*h it is not 'ery +ro&a&le that any +art of a ta1, (hi)h
is not only im+osed u+on one of the most +ro+er su&2e)ts of
ta1ation, a mere lu1ury and su+erfluity, &ut (hi)h affords so
'ery im+ortant a re'enue as the ta1 u+on sil'er, (ill e'er &e
*i'en u+ as lon* as it is +ossi&le to +ay it/ yet the same
im+ossi&ility of +ayin* it, (hi)h in 17B6 made it ne)essary to
redu)e it from one8fifth to one8tenth, may in time ma0e it
ne)essary to redu)e it still further/ in the same manner as it
made it ne)essary to redu)e the ta1 u+on *old to one8t(entieth-
That the sil'er mines of S+anish Ameri)a, li0e all other mines,
&e)ome *radually more e1+ensi'e in the (or0in*, on a))ount of the
*reater de+ths at (hi)h it is ne)essary to )arry on the (or0s,
and of the *reater e1+ense of dra(in* out the (ater and of
su++lyin* them (ith fresh air at those de+ths, is a)0no(led*ed &y
e'ery&ody (ho has inquired into the state of those mines-
These )auses, (hi)h are equi'alent to a *ro(in* s)ar)ity of
sil'er 9for a )ommodity may &e said to *ro( s)ar)er (hen it
&e)omes more diffi)ult and e1+ensi'e to )olle)t a )ertain
quantity of it: must, in time, +rodu)e one or other of the three
follo(in* e'ents- The in)rease of the e1+ense must either, first,
&e )om+ensated alto*ether &y a +ro+ortiona&le in)rease in the
+ri)e of the metal/ or, se)ondly, it must &e )om+ensated
alto*ether &y a +ro+ortiona&le diminution of the ta1 u+on sil'er/
or, thirdly, it must &e )om+ensated +artly &y the one, and +artly
&y the other of those t(o e1+edients- This third e'ent is 'ery
+ossi&le- As *old rose in its +ri)e in +ro+ortion to sil'er,
not(ithstandin* a *reat diminution of the ta1 u+on *old, so
sil'er mi*ht rise in its +ri)e in +ro+ortion to la&our and
)ommodities, not(ithstandin* an equal diminution of the ta1 u+on
sil'er-
Su)h su))essi'e redu)tions of the ta1, ho(e'er, thou*h they
may not +re'ent alto*ether, must )ertainly retard, more or less,
the rise of the 'alue of sil'er in the $uro+ean mar0et- In
)onsequen)e of su)h redu)tions many mines may &e (rou*ht (hi)h
)ould not &e (rou*ht &efore, &e)ause they )ould not afford to +ay
the old ta1/ and the quantity of sil'er annually &rou*ht to
mar0et must al(ays &e some(hat *reater, and, therefore, the 'alue
of any *i'en quantity some(hat less, than it other(ise (ould ha'e
&een- In )onsequen)e of the redu)tion in 17B6, the 'alue of
sil'er in the $uro+ean mar0et, thou*h it may not at this day &e
lo(er than &efore that redu)tion, is, +ro&a&ly, at least ten +er
)ent lo(er than it (ould ha'e &een had the Court of S+ain
)ontinued to e1a)t the old ta1-
That, not(ithstandin* this redu)tion, the 'alue of sil'er
has, durin* the )ourse of the +resent )entury, &e*un to rise
some(hat in the $uro+ean mar0et, the fa)ts and ar*uments (hi)h
ha'e &een alle*ed a&o'e dis+ose me to &elie'e, or more +ro+erly
to sus+e)t and )on2e)ture/ for the &est o+inion (hi)h I )an form
u+on this su&2e)t s)ar)e, +erha+s, deser'es the name of &elief-
The rise, indeed, su++osin* there has &een any, has hitherto &een
so 'ery small that after all that has &een said it may, +erha+s,
a++ear to many +eo+le un)ertain, not only (hether this e'ent has
a)tually ta0en +la)e/ &ut (hether the )ontrary may not ha'e ta0en
+la)e, or (hether the 'alue of the sil'er may not still )ontinue
to fall in the $uro+ean mar0et-
It must &e o&ser'ed, ho(e'er, that (hate'er may &e the
su++osed annual im+ortation of *old and sil'er, there must &e a
)ertain +eriod at (hi)h the annual )onsum+tion of those metals
(ill &e equal to that annual im+ortation- Their )onsum+tion must
in)rease as their mass in)reases, or rather in a mu)h *reater
+ro+ortion- As their mass in)reases, their 'alue diminishes- They
are more used and less )ared for, and their )onsum+tion
)onsequently in)reases in a *reater +ro+ortion than their mass-
After a )ertain +eriod, therefore, the annual )onsum+tion of
those metals must, in this manner, &e)ome equal to their annual
im+ortation, +ro'ided that im+ortation is not )ontinually
in)reasin*/ (hi)h, in the +resent times, is not su++osed to &e
the )ase-
If, (hen the annual )onsum+tion has &e)ome equal to the
annual im+ortation, the annual im+ortation should *radually
diminish, the annual )onsum+tion may, for some time, e1)eed the
annual im+ortation- The mass of those metals may *radually and
insensi&ly diminish, and their 'alue *radually and insensi&ly
rise, till the annual im+ortation &e)ome a*ain stationary, the
annual )onsum+tion (ill *radually and insensi&ly a))ommodate
itself to (hat that annual im+ortation )an maintain-
6ROUNDS O" T#$ SUSICION T#AT T#$ 5A!U$ O" SI!5$R STI!!
CONTINU$S TO D$CR$AS$
The in)rease of the (ealth of $uro+e, and the +o+ular notion
that, as the quantity of the +re)ious metals naturally in)reases
(ith the in)rease of (ealth so their 'alue diminishes as their
quantity in)reases, may, +erha+s, dis+ose many +eo+le to &elie'e
that their 'alue still )ontinues to fall in the $uro+ean mar0et/
and the still *radually in)reasin* +ri)e of many +arts of the
rude +rodu)e of land may )onfirm them still further in this
o+inion-
That that in)rease in the quantity of the +re)ious metals,
(hi)h arises in any )ountry from the in)rease of (ealth, has no
tenden)y to diminish their 'alue, I ha'e endea'oured to sho(
already- 6old and sil'er naturally resort to a ri)h )ountry, for
the same reason that all sorts of lu1uries and )uriosities resort
to it/ not &e)ause they are )hea+er there than in +oorer
)ountries, &ut &e)ause they are dearer, or &e)ause a &etter +ri)e
is *i'en for them- It is the su+eriority of +ri)e (hi)h attra)ts
them, and as soon as that su+eriority )eases, they ne)essarily
)ease to *o thither-
If you e1)e+t )orn and su)h other 'e*eta&les as are raised
alto*ether &y human industry, that all other sorts of rude
+rodu)e, )attle, +oultry, *ame of all 0inds, the useful fossils
and minerals of the earth, et)-, naturally *ro( dearer as the
so)iety ad'an)es in (ealth and im+ro'ement, I ha'e endea'oured to
sho( already- Thou*h su)h )ommodities, therefore, )ome to
e1)han*e for a *reater quantity of sil'er than &efore, it (ill
not from then)e follo( that sil'er has &e)ome really )hea+er, or
(ill +ur)hase less la&our than &efore, &ut that su)h )ommodities
ha'e &e)ome really dearer, or (ill +ur)hase more la&our than
&efore- It is not their nominal +ri)e only, &ut their real +ri)e
(hi)h rises in the +ro*ress of im+ro'ement- The rise of their
nominal +ri)e is the effe)t, not of any de*radation of the 'alue
of sil'er, &ut of the rise in their real +ri)e-
DI""$R$NT $""$CTS O" T#$ RO6R$SS O" I4RO5$4$NT UON T#R$$
DI""$R$NT SORTS O" RUD$ RODUC$
These different sorts of rude +rodu)e may &e di'ided into
three )lasses- The first )om+rehends those (hi)h it is s)ar)e in
the +o(er of human industry to multi+ly at all- The se)ond, those
(hi)h it )an multi+ly in +ro+ortion to the demand- The third,
those in (hi)h the effi)a)y of industry is either limited or
un)ertain- In the +ro*ress of (ealth and im+ro'ement, the real
+ri)e of the first may rise to any de*ree of e1tra'a*an)e, and
seems not to &e limited &y any )ertain &oundary- That of the
se)ond, thou*h it may rise *reatly, has, ho(e'er, a )ertain
&oundary &eyond (hi)h it )annot (ell +ass for any )onsidera&le
time to*ether- That of the third, thou*h its natural tenden)y is
to rise in the +ro*ress of im+ro'ement, yet in the same de*ree of
im+ro'ement it may sometimes ha++en e'en to fall, sometimes to
)ontinue the same, and sometimes to rise more or less, a))ordin*
as different a))idents render the efforts of human industry, in
multi+lyin* this sort of rude +rodu)e, more or less su))essful-
"IRST SORT
The first sort of rude +rodu)e of (hi)h the +ri)e rises in
the +ro*ress of im+ro'ement is that (hi)h it is s)ar)e in the
+o(er of human industry to multi+ly at all- It )onsists in those
thin*s (hi)h nature +rodu)es only in )ertain quantities, and
(hi)h, &ein* of a 'ery +erisha&le nature, it is im+ossi&le to
a))umulate to*ether the +rodu)e of many different seasons- Su)h
are the *reater +art of rare and sin*ular &irds and fishes, many
different sorts of *ame, almost all (ild8fo(l, all &irds of
+assa*e in +arti)ular, as (ell as many other thin*s- When (ealth
and the lu1ury (hi)h a))om+anies it in)rease, the demand for
these is li0ely to in)rease (ith them, and no effort of human
industry may &e a&le to in)rease the su++ly mu)h &eyond (hat it
(as &efore this in)rease of the demand- The quantity of su)h
)ommodities, therefore, remainin* the same, or nearly the same,
(hile the )om+etition to +ur)hase them is )ontinually in)reasin*,
their +ri)e may rise to any de*ree of e1tra'a*an)e, and seems not
to &e limited &y any )ertain &oundary- If (ood)o)0s should &e)ome
so fashiona&le as to sell for t(enty *uineas a+ie)e, no effort of
human industry )ould in)rease the num&er of those &rou*ht to
mar0et mu)h &eyond (hat it is at +resent- The hi*h +ri)e +aid &y
the Romans, in the time of their *reatest *randeur, for rare
&irds and fishes, may in this manner easily &e a))ounted for-
These +ri)es (ere not the effe)ts of the lo( 'alue of sil'er in
those times, &ut of the hi*h 'alue of su)h rarities and
)uriosities as human industry )ould not multi+ly at +leasure- The
real 'alue of sil'er (as hi*her at Rome, for some time &efore and
after the fall of the re+u&li), than it is throu*h the *reater
+art of $uro+e at +resent- Three sestertii, equal to a&out
si1+en)e sterlin*, (as the +ri)e (hi)h the re+u&li) +aid for the
modius or +e)0 of the tithe (heat of Si)ily- This +ri)e, ho(e'er,
(as +ro&a&ly &elo( the a'era*e mar0et +ri)e, the o&li*ation to
deli'er their (heat at this rate &ein* )onsidered as a ta1 u+on
the Si)ilian farmers- When the Romans, therefore, had o))asion to
order more )orn than the tithe of (heat amounted to, they (ere
&ound &y )a+itulation to +ay for the sur+lus at the rate of four
sestertii, or ei*ht+en)e sterlin*, the +e)0/ and this had
+ro&a&ly &een re)0oned the moderate and reasona&le, that is, the
ordinary or a'era*e )ontra)t +ri)e of those times/ it is equal to
a&out one8and8t(enty shillin*s the quarter- $i*ht8and8t(enty
shillin*s the quarter (as, &efore the late years of s)ar)ity, the
ordinary )ontra)t +ri)e of $n*lish (heat, (hi)h in quality is
inferior to the Si)ilian, and *enerally sells for a lo(er +ri)e
in the $uro+ean mar0et- The 'alue of sil'er, therefore, in those
an)ient times, must ha'e &een to its 'alue in the +resent as
three to four in'ersely/ that is, three oun)es of sil'er (ould
then ha'e +ur)hased the same quantity of la&our and )ommodities
(hi)h four oun)es (ill do at +resent- When (e read in liny,
therefore, that Seius &ou*ht a (hite ni*htin*ale, as a +resent
for the $m+ress A*ri++ina, at a +ri)e of si1 thousand sestertii,
equal to a&out fifty +ounds of our +resent money/ and that
Asinius Celer +ur)hased a surmullet at the +ri)e of ei*ht
thousand sestertii, equal to a&out si1ty8si1 +ounds thirteen
shillin*s and four+en)e of our +resent money, the e1tra'a*an)e of
those +ri)es, ho( mu)h soe'er it may sur+rise us, is a+t,
not(ithstandin*, to a++ear to us a&out one8third less than it
really (as- Their real +ri)e, the quantity of la&our and
su&sisten)e (hi)h (as *i'en a(ay for them, (as a&out one8third
more than their nominal +ri)e is a+t to e1+ress to us in the
+resent times- Seius *a'e for the ni*htin*ale the )ommand of a
quantity of la&our and su&sisten)e equal to (hat !66 1Bs- Gd-
(ould +ur)hase in the +resent times/ and Asinius Celer *a'e for
the surmullet the )ommand of a quantity equal to (hat !?? F 1DEd-
(ould +ur)hase- What o))asioned the e1tra'a*an)e of those hi*h
+ri)es (as, not so mu)h the a&undan)e of sil'er as the a&undan)e
of la&our and su&sisten)e of (hi)h those Romans had the dis+osal
&eyond (hat (as ne)essary for their o(n use- The quantity of
sil'er of (hi)h they had the dis+osal (as a *ood deal less than
(hat the )ommand of the same quantity of la&our and su&sisten)e
(ould ha'e +ro)ured to them in the +resent times-
S$COND SORT
The se)ond sort of rude +ro)edure of (hi)h the +ri)e rises
in the +ro*ress of im+ro'ement is that (hi)h human industry )an
multi+ly in +ro+ortion to the demand- It )onsists in those useful
+lants and animals (hi)h, in un)ulti'ated )ountries, nature
+rodu)es (ith su)h +rofuse a&undan)e that they are of little or
no 'alue, and (hi)h, as )ulti'ation ad'an)es are therefore for)ed
to *i'e +la)e to some more +rofita&le +rodu)e- Durin* a lon*
+eriod in the +ro*ress of im+ro'ement, the quantity of these is
)ontinually diminishin*, (hile at the same time the demand for
them is )ontinually in)reasin*- Their real 'alue, therefore, the
real quantity of la&our (hi)h they (ill +ur)hase or )ommand,
*radually rises, till at last it *ets so hi*h as to render them
as +rofita&le a +rodu)e as anythin* else (hi)h human industry )an
raise u+on the most fertile and &est )ulti'ated land- When it has
*ot so hi*h it )annot (ell *o hi*her- If it did, more land and
more industry (ould soon &e em+loyed to in)rease their quantity-
When the +ri)e of )attle, for e1am+le, rises so hi*h that it
is as +rofita&le to )ulti'ate land in order to raise food for
them as in order to raise food for man, it )annot (ell *o hi*her-
If it did, more )orn land (ould soon &e turned into +asture- The
e1tension of tilla*e, &y diminishin* the quantity of (ild
+asture, diminishes the quantity of &ut)her=s meat (hi)h the
)ountry naturally +rodu)es (ithout la&our or )ulti'ation, and &y
in)reasin* the num&er of those (ho ha'e either )orn, or, (hat
)omes to the same thin*, the +ri)e of )orn, to *i'e in e1)han*e
for it, in)reases the demand- The +ri)e of &ut)her=s meat,
therefore, and )onsequently of )attle, must *radually rise till
it *ets so hi*h that it &e)omes as +rofita&le to em+loy the most
fertile and &est )ulti'ated lands in raisin* food for them as in
raisin* )orn- .ut it must al(ays &e late in the +ro*ress of
im+ro'ement &efore tilla*e )an &e so far e1tended as to raise the
+ri)e of )attle to this hei*ht/ and till it has *ot to this
hei*ht, if the )ountry is ad'an)in* at all, their +ri)e must &e
)ontinually risin*- There are, +erha+s, some +arts of $uro+e in
(hi)h the +ri)e of )attle has not yet *ot to this hei*ht- It had
not *ot to this hei*ht in any +art of S)otland &efore the union-
#ad the S)ot)h )attle &een al(ays )onfined to the mar0et of
S)otland, in a )ountry in (hi)h the quantity of land (hi)h )an &e
a++lied to no other +ur+ose &ut the feedin* of )attle is so *reat
in +ro+ortion to (hat )an &e a++lied to other +ur+oses, it is
s)ar)e +ossi&le, +erha+s, that their +ri)e )ould e'er ha'e risen
so hi*h as to render it +rofita&le to )ulti'ate land for the sa0e
of feedin* them- In $n*land, the +ri)e of )attle, it has already
&een o&ser'ed, seems, in the nei*h&ourhood of !ondon, to ha'e *ot
to this hei*ht a&out the &e*innin* of the last )entury/ &ut it
(as mu)h later +ro&a&ly &efore it *ot to it throu*h the *reater
+art of the remoter )ounties/ in some of (hi)h, +erha+s, it may
s)ar)e yet ha'e *ot to it- Of all the different su&stan)es,
ho(e'er, (hi)h )om+ose this se)ond sort of rude +rodu)e, )attle
is, +erha+s, that of (hi)h the +ri)e, in the +ro*ress of
im+ro'ement, first rises to this hei*ht-
Till the +ri)e of )attle, indeed, has *ot to this hei*ht, it
seems s)ar)e +ossi&le that the *reater +art, e'en of those lands
(hi)h are )a+a&le of the hi*hest )ulti'ation, )an &e )om+letely
)ulti'ated- In all farms too distant from any to(n to )arry
manure from it, that is, in the far *reater +art of those of
e'ery e1tensi'e )ountry, the quantity of (ell8)ulti'ated land
must &e in +ro+ortion to the quantity of manure (hi)h the farm
itself +rodu)es/ and this a*ain must &e in +ro+ortion to the
sto)0 of )attle (hi)h are maintained u+on it- The land is manured
either &y +asturin* the )attle u+on it, or &y feedin* them in the
sta&le, and from then)e )arryin* out their dun* to it- .ut unless
the +ri)e of the )attle &e suffi)ient to +ay &oth the rent and
+rofit of )ulti'ated land, the farmer )annot afford to +asture
them u+on it/ and he )an still less afford to feed them in the
sta&le- It is (ith the +rodu)e of im+ro'ed and )ulti'ated land
only that )attle )an &e fed in the sta&le/ &e)ause to )olle)t the
s)anty and s)attered +rodu)e of (aste and unim+ro'ed lands (ould
require too mu)h la&our and &e too e1+ensi'e- If the +ri)e of
)attle, therefore, is not suffi)ient to +ay for the +rodu)e of
im+ro'ed and )ulti'ated land, (hen they are allo(ed to +asture
it, that +ri)e (ill &e still less suffi)ient to +ay for that
+rodu)e (hen it must &e )olle)ted (ith a *ood deal of additional
la&our, and &rou*ht into the sta&le to them- In these
)ir)umstan)es, therefore, no more )attle )an, (ith +rofit, &e fed
in the sta&le than (hat are ne)essary for tilla*e- .ut these )an
ne'er afford manure enou*h for 0ee+in* )onstantly in *ood
)ondition all the lands (hi)h they are )a+a&le of )ulti'atin*-
What they afford &ein* insuffi)ient for the (hole farm (ill
naturally &e reser'ed for the lands to (hi)h it )an &e most
ad'anta*eously or )on'eniently a++lied/ the most fertile, or
those, +erha+s, in the nei*h&ourhood of the farmyard- These,
therefore, (ill &e 0e+t )onstantly in *ood )ondition and fit for
tilla*e- The rest (ill, the *reater +art of them, &e allo(ed to
lie (aste, +rodu)in* s)ar)e anythin* &ut some misera&le +asture,
2ust suffi)ient to 0ee+ ali'e a fe( stra**lin*, half8star'ed
)attle/ the farm, thou*h mu)h understo)0ed in +ro+ortion to (hat
(ould &e ne)essary for its )om+lete )ulti'ation, &ein* 'ery
frequently o'ersto)0ed in +ro+ortion to its a)tual +rodu)e- A
+ortion of this (aste land, ho(e'er, after ha'in* &een +astured
in this (ret)hed manner for si1 or se'en years to*ether, may &e
+lou*hed u+, (hen it (ill yield, +erha+s, a +oor )ro+ or t(o of
&ad oats, or of some other )oarse *rain, and then, &ein* entirely
e1hausted, it must &e rested and +astured a*ain as &efore and
another +ortion +lou*hed u+ to &e in the same manner e1hausted
and rested a*ain in its turn- Su)h a))ordin*ly (as the *eneral
system of mana*ement all o'er the lo( )ountry of S)otland &efore
the union- The lands (hi)h (ere 0e+t )onstantly (ell manured and
in *ood )ondition seldom e1)eeded a third or a fourth +art of the
(hole farm, and sometimes did not amount to a fifth or a si1th
+art of it- The rest (ere ne'er manured, &ut a )ertain +ortion of
them (as in its turn, not(ithstandin*, re*ularly )ulti'ated and
e1hausted- Under this system of mana*ement, it is e'ident, e'en
that +art of the land of S)otland (hi)h is )a+a&le of *ood
)ulti'ation )ould +rodu)e &ut little in )om+arison of (hat it may
&e )a+a&le of +rodu)in*- .ut ho( disad'anta*eous soe'er this
system may a++ear, yet &efore the union the lo( +ri)e of )attle
seems to ha'e rendered it almost una'oida&le- If, not(ithstandin*
a *reat rise in their +ri)e, it still )ontinues to +re'ail
throu*h a )onsidera&le +art of the )ountry, it is o(in*, in many
+la)es, no dou&t, to i*noran)e and atta)hment to old )ustoms, &ut
in most +la)es to the una'oida&le o&stru)tions (hi)h the natural
)ourse of thin*s o++oses to the immediate or s+eedy esta&lishment
of a &etter system3 first, to the +o'erty of the tenants, to
their not ha'in* yet had time to a)quire a sto)0 of )attle
suffi)ient to )ulti'ate their lands more )om+letely, the same
rise of +ri)e (hi)h (ould render it ad'anta*eous for them to
maintain a *reater sto)0 renderin* it more diffi)ult for them to
a)quire it/ and, se)ondly, to their not ha'in* yet had time to
+ut their lands in )ondition to maintain this *reater sto)0
+ro+erly, su++osin* they (ere )a+a&le of a)quirin* it- The
in)rease of sto)0 and the im+ro'ement of land are t(o e'ents
(hi)h must *o hand in hand, and of (hi)h the one )an no(here mu)h
outrun the other- Without some in)rease of sto)0 there )an &e
s)ar)e any im+ro'ement of land, &ut there )an &e no )onsidera&le
in)rease of sto)0 &ut in )onsequen)e of a )onsidera&le
im+ro'ement of land/ &e)ause other(ise the land )ould not
maintain it- These natural o&stru)tions to the esta&lishment of a
&etter system )annot &e remo'ed &ut &y a lon* )ourse of fru*ality
and industry/ and half a )entury or a )entury more, +erha+s, must
+ass a(ay &efore the old system, (hi)h is (earin* out *radually,
)an &e )om+letely a&olished throu*h all the different +arts of
the )ountry- Of all the )ommer)ial ad'anta*es, ho(e'er, (hi)h
S)otland has deri'ed from the union (ith $n*land, this rise in
the +ri)e of )attle is, +erha+s, the *reatest- It has not only
raised the 'alue of all hi*hland estates, &ut it has, +erha+s,
&een the +rin)i+al )ause of the im+ro'ement of the lo( )ountry-
In all ne( )olonies the *reat quantity of (aste land, (hi)h
)an for many years &e a++lied to no other +ur+ose &ut the feedin*
of )attle, soon renders them e1tremely a&undant, and in
e'erythin* *reat )hea+ness is the ne)essary )onsequen)e of *reat
a&undan)e- Thou*h all the )attle of the $uro+ean )olonies in
Ameri)a (ere ori*inally )arried from $uro+e, they soon multi+lied
so mu)h there, and &e)ame of so little 'alue that e'en horses
(ere allo(ed to run (ild in the (oods (ithout any o(ner thin0in*
it (orth (hile to )laim them- It must &e a lon* time, after the
first esta&lishment of su)h )olonies, &efore it )an &e)ome
+rofita&le to feed )attle u+on the +rodu)e of )ulti'ated land-
The same )auses, therefore, the (ant of manure, and the
dis+ro+ortion &et(een the sto)0 em+loyed in )ulti'ation, and the
land (hi)h it is destined to )ulti'ate, are li0ely to introdu)e
there a system of hus&andry not unli0e that (hi)h still )ontinues
to ta0e +la)e in so many +arts of S)otland- 4r- %alm, the S(edish
tra'eller, (hen he *i'es an a))ount of the hus&andry of some of
the $n*lish )olonies in North Ameri)a, as he found it in 17GF,
o&ser'es, a))ordin*ly, that he )an (ith diffi)ulty dis)o'er there
the )hara)ter of the $n*lish nation, so (ell s0illed in all the
different &ran)hes of a*ri)ulture- They ma0e s)ar)e any manure
for their )orn fields, he says/ &ut (hen one +ie)e of *round has
&een e1hausted &y )ontinual )ro++in*, they )lear and )ulti'ate
another +ie)e of fresh land/ and (hen that is e1hausted, +ro)eed
to the third- Their )attle are allo(ed to (ander throu*h the
(oods and other un)ulti'ated *rounds, (here they are
half8star'ed/ ha'in* lon* a*o e1tir+ated almost all the annual
*rasses &y )ro++in* them too early in the s+rin*, &efore they had
time to form their flo(ers, or to shed their seeds- The annual
*rasses (ere, it seems, the &est natural *rasses in that +art of
North Ameri)a/ and (hen the $uro+eans first settled there, they
used to *ro( 'ery thi)0, and to rise three or four feet hi*h- A
+ie)e of *round (hi)h, (hen he (rote, )ould not maintain one )o(,
(ould in former times, he (as assured, ha'e maintained four, ea)h
of (hi)h (ould ha'e *i'en four times the quantity of mil0 (hi)h
that one (as )a+a&le of *i'in*- The +oorness of the +asture had,
in his o+inion, o))asioned the de*radation of their )attle, (hi)h
de*enerated sensi&ly from one *eneration to another- They (ere
+ro&a&ly not unli0e that stunted &reed (hi)h (as )ommon all o'er
S)otland thirty or forty years a*o, and (hi)h is no( so mu)h
mended throu*h the *reater +art of the lo( )ountry, not so mu)h
&y a )han*e of the &reed, thou*h that e1+edient has &een em+loyed
in some +la)es, as &y a more +lentiful method of feedin* them-
Thou*h it is late, therefore, in the +ro*ress of im+ro'ement
&efore )attle )an &rin* su)h a +ri)e as to render it +rofita&le
to )ulti'ate land for the sa0e of feedin* them/ yet of all the
different +arts (hi)h )om+ose this se)ond sort of rude +rodu)e,
they are +erha+s the first (hi)h &rin* this +ri)e/ &e)ause till
they &rin* it, it seems im+ossi&le that im+ro'ement )an &e
&rou*ht near e'en to that de*ree of +erfe)tion to (hi)h it has
arri'ed in many +arts of $uro+e-
As )attle are amon* the first, so +erha+s 'enison is amon*
the last +arts of this sort of rude +rodu)e (hi)h &rin* this
+ri)e- The +ri)e of 'enison in 6reat .ritain, ho( e1tra'a*ant
soe'er it may a++ear, is not near suffi)ient to )om+ensate the
e1+ense of a deer +ar0, as is (ell 0no(n to all those (ho ha'e
had any e1+erien)e in the feedin* of deer- If it (as other(ise,
the feedin* of deer (ould soon &e)ome an arti)le of )ommon
farmin*, in the same manner as the feedin* of those small &irds
)alled Turdi (as amon* the an)ient Romans- 5arro and Columella
assure us that it (as a most +rofita&le arti)le- The fattenin* of
ortolans, &irds of +assa*e (hi)h arri'e lean in the )ountry, is
said to &e so in some +arts of "ran)e- If 'enison )ontinues in
fashion, and the (ealth and lu1ury of 6reat .ritain in)rease as
they ha'e done for some time +ast, its +ri)e may 'ery +ro&a&ly
rise still hi*her than it is at +resent-
.et(een that +eriod in the +ro*ress of im+ro'ement (hi)h
&rin*s to its hei*ht the +ri)e of so ne)essary an arti)le as
)attle, and that (hi)h &rin*s to it the +ri)e of su)h a
su+erfluity as 'enison, there is a 'ery lon* inter'al, in the
)ourse of (hi)h many other sorts of rude +rodu)e *radually arri'e
at their hi*hest +ri)e, some sooner and some later, a))ordin* to
different )ir)umstan)es-
Thus in e'ery farm the offals of the &arn and sta&les (ill
maintain a )ertain num&er of +oultry- These, as they are fed (ith
(hat (ould other(ise &e lost, are a mere sa'e8all/ and as they
)ost the farmer s)ar)e anythin*, so he )an afford to sell them
for 'ery little- Almost all that he *ets is +ure *ain, and their
+ri)e )an s)ar)e &e so lo( as to dis)oura*e him from feedin* this
num&er- .ut in )ountries ill )ulti'ated, and therefore &ut thinly
inha&ited, the +oultry, (hi)h are thus raised (ithout e1+ense,
are often fully suffi)ient to su++ly the (hole demand- In this
state of thin*s, therefore, they are often as )hea+ as &ut)her=s
meat, or any other sort of animal food- .ut the (hole quantity of
+oultry, (hi)h the farm in this manner +rodu)es (ithout e1+ense,
must al(ays &e mu)h smaller than the (hole quantity of &ut)her=s
meat (hi)h is reared u+on it/ and in times of (ealth and lu1ury
(hat is rare, (ith only nearly equal merit, is al(ays +referred
to (hat is )ommon- As (ealth and lu1ury in)rease, therefore, in
)onsequen)e of im+ro'ement and )ulti'ation, the +ri)e of +oultry
*radually rises a&o'e that of &ut)her=s meat, till at last it
*ets so hi*h that it &e)omes +rofita&le to )ulti'ate land for the
sa0e of feedin* them- When it has *ot to this hei*ht it )annot
(ell *o hi*her- If it did, more land (ould soon &e turned to this
+ur+ose- In se'eral +ro'in)es of "ran)e, the feedin* of +oultry
is )onsidered as a 'ery im+ortant arti)le in rural e)onomy, and
suffi)iently +rofita&le to en)oura*e the farmer to raise a
)onsidera&le quantity of Indian )orn and &u)08(heat for this
+ur+ose- A middlin* farmer (ill there sometimes ha'e four hundred
fo(ls in his yard- The feedin* of +oultry seems s)ar)e yet to &e
*enerally )onsidered as a matter of so mu)h im+ortan)e in
$n*land- They are )ertainly, ho(e'er, dearer in $n*land than in
"ran)e, as $n*land re)ei'es )onsidera&le su++lies from "ran)e- In
the +ro*ress of im+ro'ement, the +eriod at (hi)h e'ery +arti)ular
sort of animal food is dearest must naturally &e that (hi)h
immediately +re)edes the *eneral +ra)ti)e of )ulti'atin* land for
the sa0e of raisin* it- "or some time &efore this +ra)ti)e
&e)omes *eneral, the s)ar)ity must ne)essarily raise the +ri)e-
After it has &e)ome *eneral, ne( methods of feedin* are )ommonly
fallen u+on, (hi)h ena&le the farmer to raise u+on the same
quantity of *round a mu)h *reater quantity of that +arti)ular
sort of animal food- The +lenty not only o&li*es him to sell
)hea+er, &ut in )onsequen)e of these im+ro'ements he )an afford
to sell )hea+er/ for if he )ould not afford it, the +lenty (ould
not &e of lon* )ontinuan)e- It has &een +ro&a&ly in this manner
that the introdu)tion of )lo'er, turni+s, )arrots, )a&&a*e, et)-,
has )ontri&uted to sin0 the )ommon +ri)e of &ut)her=s meat in the
!ondon mar0et some(hat &elo( (hat it (as a&out the &e*innin* of
the last )entury-
The ho*, that finds his food amon* ordure and *reedily
de'ours many thin*s re2e)ted &y e'ery other useful animal, is,
li0e +oultry, ori*inally 0e+t as a sa'e8all- As lon* as the
num&er of su)h animals, (hi)h )an thus &e reared at little or no
e1+ense, is fully suffi)ient to su++ly the demand, this sort of
&ut)her=s meat )omes to mar0et at a mu)h lo(er +ri)e than any
other- .ut (hen the demand rises &eyond (hat this quantity )an
su++ly, (hen it &e)omes ne)essary to raise food on +ur+ose for
feedin* and fattenin* ho*s, in the same manner as for feedin* and
fattenin* other )attle, the +ri)e ne)essarily rises, and &e)omes
+ro+ortiona&ly hi*her or lo(er than that of other &ut)her=s meat,
a))ordin* as the nature of the )ountry, and the state of its
a*ri)ulture, ha++en to render the feedin* of ho*s more or less
e1+ensi'e than that of other )attle- In "ran)e, a))ordin* to 4r-
.uffon, the +ri)e of +or0 is nearly equal to that of &eef- In
most +arts of 6reat .ritain it is at +resent some(hat hi*her-
The *reat rise in the +ri)e of &oth ho*s and +oultry has in
6reat .ritain &een frequently im+uted to the diminution of the
num&er of )otta*ers and other small o))u+iers of land/ an e'ent
(hi)h has in e'ery +art of $uro+e &een the immediate forerunner
of im+ro'ement and &etter )ulti'ation, &ut (hi)h at the same time
may ha'e )ontri&uted to raise the +ri)e of those arti)les &oth
some(hat sooner and some(hat faster than it (ould other(ise ha'e
risen- As the +oorest family )an often maintain a )at or a do*
(ithout any e1+ense, so the +oorest o))u+iers of land )an
)ommonly maintain a fe( +oultry, or a so( and a fe( +i*s, at 'ery
little- The little offals of their o(n ta&le, their (hey, s0immed
mil0, and &uttermil0, su++ly those animals (ith a +art of their
food, and they find the rest in the nei*h&ourin* fields (ithout
doin* any sensi&le dama*e to any&ody- .y diminishin* the num&er
of those small o))u+iers, therefore, the quantity of this sort of
+ro'isions, (hi)h is thus +rodu)ed at little or no e1+ense, must
)ertainly ha'e &een a *ood deal diminished, and their +ri)e must
)onsequently ha'e &een raised &oth sooner and faster than it
(ould other(ise ha'e risen- Sooner or later, ho(e'er, in the
+ro*ress of im+ro'ement, it must at any rate ha'e risen to the
utmost hei*ht to (hi)h it is )a+a&le of risin*/ or to the +ri)e
(hi)h +ays the la&our and e1+ense of )ulti'atin* the land (hi)h
furnishes them (ith food as (ell as these are +aid u+on the
*reater +art of other )ulti'ated land-
The &usiness of the dairy, li0e the feedin* of ho*s and
+oultry, is ori*inally )arried on as a sa'e8all- The )attle
ne)essarily 0e+t u+on the farm +rodu)e more mil0 than either the
rearin* of their o(n youn* or the )onsum+tion of the farmer=s
family requires/ and they +rodu)e most at one +arti)ular season-
.ut of all the +rodu)tions of land, mil0 is +erha+s the most
+erisha&le- In the (arm season, (hen it is most a&undant, it (ill
s)ar)e 0ee+ four8and8t(enty hours- The farmer, &y ma0in* it into
fresh &utter, stores a small +art of it for a (ee03 &y ma0in* it
into salt &utter, for a year3 and &y ma0in* it into )heese, he
stores a mu)h *reater +art of it for se'eral years- art of all
these is reser'ed for the use of his o(n family- The rest *oes to
mar0et, in order to find the &est +ri)e (hi)h is to &e had, and
(hi)h )an s)ar)e &e so lo( as to dis)oura*e him from sendin*
thither (hate'er is o'er and a&o'e the use of his o(n family- If
it is 'ery lo(, indeed, he (ill &e li0ely to mana*e his dairy in
a 'ery slo'enly and dirty manner, and (ill s)ar)e +erha+s thin0
it (orth (hile to ha'e a +arti)ular room or &uildin* on +ur+ose
for it, &ut (ill suffer the &usiness to &e )arried on amidst the
smo0e, filth, and nastiness of his o(n 0it)hen/ as (as the )ase
of almost all the farmers= dairies in S)otland thirty or forty
years a*o, and as is the )ase of many of them still- The same
)auses (hi)h *radually raise the +ri)e of &ut)her=s meat, the
in)rease of the demand, and, in )onsequen)e of the im+ro'ement of
the )ountry, the diminution of the quantity (hi)h )an &e fed at
little or no e1+ense, raise, in the same manner, that of the
+rodu)e of the dairy, of (hi)h the +ri)e naturally )onne)ts (ith
that of &ut)her=s meat, or (ith the e1+ense of feedin* )attle-
The in)rease of +ri)e +ays for more la&our, )are, and
)leanliness- The dairy &e)omes more (orthy of the farmer=s
attention, and the quality of its +rodu)e *radually im+ro'es- The
+ri)e at last *ets so hi*h that it &e)omes (orth (hile to em+loy
some of the most fertile and &est )ulti'ated lands in feedin*
)attle merely for the +ur+ose of the dairy/ and (hen it has *ot
to this hei*ht, it )annot (ell *o hi*her- If it did, more land
(ould soon &e turned to this +ur+ose- It seems to ha'e *ot to
this hei*ht throu*h the *reater +art of $n*land, (here mu)h *ood
land is )ommonly em+loyed in this manner- If you e1)e+t the
nei*h&ourhood of a fe( )onsidera&le to(ns, it seems not yet to
ha'e *ot to this hei*ht any(here in S)otland, (here )ommon
farmers seldom em+loy mu)h *ood land in raisin* food for )attle
merely for the +ur+ose of the dairy- The +ri)e of the +rodu)e,
thou*h it has risen 'ery )onsidera&ly (ithin these fe( years, is
+ro&a&ly still too lo( to admit of it- The inferiority of the
quality, indeed, )om+ared (ith that of the +rodu)e of $n*lish
dairies, is fully equal to that of the +ri)e- .ut this
inferiority of quality is, +erha+s, rather the effe)t of this
lo(ness of +ri)e than the )ause of it- Thou*h the quality (as
mu)h &etter, the *reater +art of (hat is &rou*ht to mar0et )ould
not, I a++rehend, in the +resent )ir)umstan)es of the )ountry, &e
dis+osed of at a mu)h &etter +ri)e/ and the +resent +ri)e, it is
+ro&a&le (ould not +ay the e1+ense of the land and la&our
ne)essary for +rodu)in* a mu)h &etter quality- Thou*h the *reater
+art of $n*land, not(ithstandin* the su+eriority of +ri)e, the
dairy is not re)0oned a more +rofita&le em+loyment of land than
the raisin* of )orn, or the fattenin* of )attle, the t(o *reat
o&2e)ts of a*ri)ulture- Throu*h the *reater +art of S)otland,
therefore, it )annot yet &e e'en so +rofita&le-
The lands of no )ountry, it is e'ident, )an e'er &e
)om+letely )ulti'ated and im+ro'ed till on)e the +ri)e of e'ery
+rodu)e, (hi)h human industry is o&li*ed to raise u+on them, has
*ot so hi*h as to +ay for the e1+ense of )om+lete im+ro'ement and
)ulti'ation- In order to do this, the +ri)e of ea)h +arti)ular
+rodu)e must &e suffi)ient, first, to +ay the rent of *ood )orn
land, as it is that (hi)h re*ulates the rent of the *reater +art
of other )ulti'ated land/ and, se)ondly, to +ay the la&our and
e1+ense of the farmer as (ell as they are )ommonly +aid u+on *ood
)orn land/ or, in other (ords, to re+la)e (ith the ordinary
+rofits the sto)0 (hi)h he em+loys a&out it- This rise in the
+ri)e of ea)h +arti)ular +rodu)e must e'idently &e +re'ious to
the im+ro'ement and )ulti'ation of the land (hi)h is destined for
raisin* it- 6ain is the end of all im+ro'ement, and nothin* )ould
deser'e that name of (hi)h loss (as to &e the ne)essary
)onsequen)e- .ut loss must &e the ne)essary )onsequen)e of
im+ro'in* land for the sa0e of a +rodu)e of (hi)h the +ri)e )ould
ne'er &rin* &a)0 the e1+ense- If the )om+lete im+ro'ement and
)ulti'ation of the )ountry &e, as it most )ertainly is, the
*reatest of all +u&li) ad'anta*es, this rise in the +ri)e of all
those different sorts of rude +rodu)e, instead of &ein*
)onsidered as a +u&li) )alamity, ou*ht to &e re*arded as the
ne)essary forerunner and attendant of the *reatest of all +u&li)
ad'anta*es-
This rise, too, in the nominal or money8+ri)e of all those
different sorts of rude +rodu)e has &een the effe)t, not of any
de*radation in the 'alue of sil'er, &ut of a rise in their real
+ri)e- They ha'e &e)ome (orth, not only a *reater quantity of
sil'er, &ut a *reater quantity of la&our and su&sisten)e than
&efore- As it )osts a *reater quantity of la&our and su&sisten)e
to &rin* them to mar0et, so (hen they are &rou*ht thither, they
re+resent or are equi'alent to a *reater quantity-
T#IRD SORT
The third and last sort of rude +rodu)e, of (hi)h the +ri)e
naturally rises in the +ro*ress of im+ro'ement, is that in (hi)h
the effi)a)y of human industry, in au*mentin* the quantity, is
either limited or un)ertain- Thou*h the real +ri)e of this sort
of rude +rodu)e, therefore, naturally tends to rise in the
+ro*ress of im+ro'ement, yet, a))ordin* as different a))idents
ha++en to render the efforts of human industry more or less
su))essful in au*mentin* the quantity, it may ha++en sometimes
e'en to fall, sometimes to )ontinue the same in 'ery different
+eriods of im+ro'ement, and sometimes to rise more or less in the
same +eriod-
There are some sorts of rude +rodu)e (hi)h nature has
rendered a 0ind of a++enda*es to other sorts/ so that the
quantity of the one (hi)h any )ountry )an afford, is ne)essarily
limited &y that of the other- The quantity of (ool or of ra(
hides, for e1am+le, (hi)h any )ountry )an afford is ne)essarily
limited &y the num&er of *reat and small )attle that are 0e+t in
it- The state of its im+ro'ement, and the nature of its
a*ri)ulture, a*ain ne)essarily determine this num&er-
The same )auses (hi)h, in the +ro*ress of im+ro'ement,
*radually raise the +ri)e of &ut)her=s meat, should ha'e the same
effe)t, it may &e thou*ht, u+on the +ri)es of (ool and ra( hides,
and raise them, too, nearly in the same +ro+ortion- It +ro&a&ly
(ould &e so if, in the rude &e*innin*s of im+ro'ement, the mar0et
for the latter )ommodities (as )onfined (ithin as narro( &ounds
as that for the former- .ut the e1tent of their res+e)ti'e
mar0ets is )ommonly e1tremely different-
The mar0et for &ut)her=s meat is almost e'ery(here )onfined
to the )ountry (hi)h +rodu)es it- Ireland, and some +art of
.ritish Ameri)a indeed, )arry on a )onsidera&le trade in salt
+ro'isions/ &ut they are, I &elie'e, the only )ountries in the
)ommer)ial (orld (hi)h do so, or (hi)h e1+ort to other )ountries
any )onsidera&le +art of their &ut)her=s meat-
The mar0et for (ool and ra( hides, on the )ontrary, is in
the rude &e*innin*s of im+ro'ement 'ery seldom )onfined to the
)ountry (hi)h +rodu)es them- They )an easily &e trans+orted to
distant )ountries, (ool (ithout any +re+aration, and ra( hides
(ith 'ery little3 and as they are the materials of many
manufa)tures, the industry of other )ountries may o))asion a
demand for them, thou*h that of the )ountry (hi)h +rodu)es them
mi*ht not o))asion any-
In )ountries ill )ulti'ated, and therefore &ut thinly
inha&ited, the +ri)e of the (ool and the hide &ears al(ays a mu)h
*reater +ro+ortion to that of the (hole &east than in )ountries
(here, im+ro'ement and +o+ulation &ein* further ad'an)ed, there
is more demand for &ut)her=s meat- 4r- #ume o&ser'es that in the
Sa1on times the flee)e (as estimated at t(o8fifths of the 'alue
of the (hole shee+, and that this (as mu)h a&o'e the +ro+ortion
of its +resent estimation- In some +ro'in)es of S+ain, I ha'e
&een assured, the shee+ is frequently 0illed merely for the sa0e
of the flee)e and the tallo(- The )ar)ase is often left to rot
u+on the *round, or to &e de'oured &y &easts and &irds of +rey-
If this sometimes ha++ens e'en in S+ain, it ha++ens almost
)onstantly in Chili, at .uenos Ayres, and in many other +arts of
S+anish Ameri)a, (here the horned )attle are almost )onstantly
0illed merely for the sa0e of the hide and the tallo(- This, too,
used to ha++en almost )onstantly in #is+aniola, (hile it (as
infested &y the .u))aneers, and &efore the settlement,
im+ro'ement, and +o+ulousness of the "ren)h +lantations 9(hi)h
no( e1tend round the )oast of almost the (hole (estern half of
the island: had *i'en some 'alue to the )attle of the S+aniards,
(ho still )ontinue to +ossess, not only the eastern +art of the
)oast, &ut the (hole inland and mountainous +art of the )ountry-
Thou*h in the +ro*ress of im+ro'ement and +o+ulation the
+ri)e of the (hole &east ne)essarily rises, yet the +ri)e of the
)ar)ase is li0ely to &e mu)h more affe)ted &y this rise than that
of the (ool and the hide- The mar0et for the )ar)ase, &ein* in
the rude state of so)iety )onfined al(ays to the )ountry (hi)h
+rodu)es it, must ne)essarily &e e1tended in +ro+ortion to the
im+ro'ement and +o+ulation of that )ountry- .ut the mar0et for
the (ool and the hides e'en of a &ar&arous )ountry often
e1tendin* to the (hole )ommer)ial (orld, it )an 'ery seldom &e
enlar*ed in the same +ro+ortion- The state of the (hole
)ommer)ial (orld )an seldom &e mu)h affe)ted &y the im+ro'ement
of any +arti)ular )ountry/ and the mar0et for su)h )ommodities
may remain the same or 'ery nearly the same after su)h
im+ro'ements as &efore- It should, ho(e'er, in the natural )ourse
of thin*s rather u+on the (hole &e some(hat e1tended in
)onsequen)e of them- If the manufa)tures, es+e)ially, of (hi)h
those )ommodities are the materials should e'er )ome to flourish
in the )ountry, the mar0et, thou*h it mi*ht not &e mu)h enlar*ed,
(ould at least &e &rou*ht mu)h nearer to the +la)e of *ro(th than
&efore/ and the +ri)e of those materials mi*ht at least &e
in)reased &y (hat had usually &een the e1+ense of trans+ortin*
them to distant )ountries- Thou*h it mi*ht not rise therefore in
the same +ro+ortion as that of &ut)her=s meat, it ou*ht naturally
to rise some(hat, and it ou*ht )ertainly not to fall-
In $n*land, ho(e'er, not(ithstandin* the flourishin* state
of its (oollen manufa)ture, the +ri)e of $n*lish (ool has fallen
'ery )onsidera&ly sin)e the time of $d(ard III- There are many
authenti) re)ords (hi)h demonstrate that durin* the rei*n of that
+rin)e 9to(ards the middle of the fourteenth )entury, or a&out
1BBF: (hat (as re)0oned the moderate and reasona&le +ri)e of the
tod, or t(enty8ei*ht +ounds of $n*lish (ool, (as not less than
ten shillin*s of the money of those times, )ontainin* at the rate
of t(enty+en)e the oun)e, si1 oun)es of sil'er To(er (ei*ht,
equal to a&out thirty shillin*s of our +resent money- In the
+resent times, one8and8t(enty shillin*s the tod may &e re)0oned a
*ood +ri)e for 'ery *ood $n*lish (ool- The money8+ri)e of (ool,
therefore, in the time of $d(ard III, (as to its money8+ri)e in
the +resent times as ten to se'en- The su+eriority of its real
+ri)e (as still *reater- At the rate of si1 shillin*s and
ei*ht+en)e the quarter, ten shillin*s (as in those an)ient times
the +ri)e of t(el'e &ushels of (heat- At the rate of t(enty8ei*ht
shillin*s the quarter, one8and8t(enty shillin*s is in the +resent
times the +ri)e of si1 &ushels only- The +ro+ortion &et(een the
real +ri)es of an)ient and modern times, therefore, is as t(el'e
to si1, or as t(o to one- In those an)ient times a tod of (ool
(ould ha'e +ur)hased t(i)e the quantity of su&sisten)e (hi)h it
(ill +ur)hase at +resent/ and )onsequently t(i)e the quantity of
la&our, if the real re)om+ense of la&our had &een the same in
&oth +eriods-
This de*radation &oth in the real and nominal 'alue of (ool
)ould ne'er ha'e ha++ened in )onsequen)e of the natural )ourse of
thin*s- It has a))ordin*ly &een the effe)t of 'iolen)e and
artifi)e3 first, of the a&solute +rohi&ition of e1+ortin* (ool
from $n*land/ se)ondly, of the +ermission of im+ortin* it from
S+ain duty free/ thirdly, of the +rohi&ition of e1+ortin* it from
Ireland to any other )ountry &ut $n*land- In )onsequen)e of these
re*ulations the mar0et for $n*lish (ool, instead of &ein*
some(hat e1tended in )onsequen)e of the im+ro'ement of $n*land,
has &een )onfined to the home mar0et, (here the (ool of se'eral
other )ountries is allo(ed to )ome into )om+etition (ith it, and
(here that of Ireland is for)ed into )om+etition (ith it- As the
(oollen manufa)tures, too, of Ireland are fully as mu)h
dis)oura*ed as is )onsistent (ith 2usti)e and fair dealin*, the
Irish )an (or0 u+ &ut a small +art of their o(n (ool at home, and
are, therefore, o&li*ed to send a *reater +ro+ortion of it to
6reat .ritain, the only mar0et they are allo(ed-
I ha'e not &een a&le to find any su)h authenti) re)ords
)on)ernin* the +ri)e of ra( hides in an)ient times- Wool (as
)ommonly +aid as a su&sidy to the 0in*, and its 'aluation in that
su&sidy as)ertains, at least in some de*ree, (hat (as its
ordinary +ri)e- .ut this seems not to ha'e &een the )ase (ith ra(
hides- "leet(ood, ho(e'er, from an a))ount in 1GEH, &et(een the
+rior of .ur)ester O1ford and one of his )anons, *i'es us their
+ri)e, at least as it (as stated u+on that +arti)ular o))asion,
'i;-, fi'e o1 hides at t(el'e shillin*s/ fi'e )o( hides at se'en
shillin*s and three+en)e/ thirty8si1 shee+ s0ins of t(o years old
at nine shillin*s/ si1teen )al'es s0ins at t(o shillin*s- In
1GEH, t(el'e shillin*s )ontained a&out the same quantity of
sil'er as four8and8t(enty shillin*s of our +resent money- An o1
hide, therefore, (as in this a))ount 'alued at the same quantity
of sil'er as Gs- four8fifths of our +resent money- Its nominal
+ri)e (as a *ood deal lo(er than at +resent- .ut at the rate of
si1 shillin*s and ei*ht+en)e the quarter, t(el'e shillin*s (ould
in those times ha'e +ur)hased fourteen &ushels and four8fifths of
a &ushel of (heat, (hi)h, at three and si1+en)e the &ushel, (ould
in the +resent times )ost H1s- Gd- An o1 hide, therefore, (ould
in those times ha'e +ur)hased as mu)h )orn as ten shillin*s and
three+en)e (ould +ur)hase at +resent- Its real 'alue (as equal to
ten shillin*s and three+en)e of our +resent money- In those
an)ient times, (hen the )attle (ere half star'ed durin* the
*reater +art of the (inter, (e )annot su++ose that they (ere of a
'ery lar*e si;e- An o1 hide (hi)h (ei*hs four stone of si1teen
+ounds a'oirdu+ois is not in the +resent times re)0oned a &ad
one/ and in those an)ient times (ould +ro&a&ly ha'e &een re)0oned
a 'ery *ood one- .ut at half8a8)ro(n the stone, (hi)h at this
moment 9"e&ruary 177B: I understand to &e the )ommon +ri)e, su)h
a hide (ould at +resent )ost only ten shillin*s- Thou*h its
nominal +ri)e, therefore, is hi*her in the +resent than it (as in
those an)ient times, its real +ri)e, the real quantity of
su&sisten)e (hi)h it (ill +ur)hase or )ommand, is rather some(hat
lo(er- The +ri)e of )o( hides, as stated in the a&o'e a))ount, is
nearly in the )ommon +ro+ortion to that of o1 hides- That of
shee+ s0ins is a *ood deal a&o'e it- They had +ro&a&ly &een sold
(ith the (ool- That of )al'es s0ins, on the )ontrary, is *reatly
&elo( it- In )ountries (here the +ri)e of )attle is 'ery lo(, the
)al'es, (hi)h are not intended to &e reared in order to 0ee+ u+
the sto)0, are *enerally 0illed 'ery youn*/ as (as the )ase in
S)otland t(enty or thirty years a*o- It sa'es the mil0, (hi)h
their +ri)e (ould not +ay for- Their s0ins, therefore, are
)ommonly *ood for little-
The +ri)e of ra( hides is a *ood deal lo(er at +resent than
it (as a fe( years a*o, o(in* +ro&a&ly to the ta0in* off the duty
u+on seals0ins, and to the allo(in*, for a limited time, the
im+ortation of ra( hides from Ireland and from the +lantations
duty free, (hi)h (as done in 176F- Ta0e the (hole of the +resent
)entury at an a'era*e, their real +ri)e has +ro&a&ly &een
some(hat hi*her than it (as in those an)ient times- The nature of
the )ommodity renders it not quite so +ro+er for &ein*
trans+orted to distant mar0ets as (ool- It suffers more &y
0ee+in*- A salted hide is re)0oned inferior to a fresh one, and
sells for a lo(er +ri)e- This )ir)umstan)e must ne)essarily ha'e
some tenden)y to sin0 the +ri)e of ra( hides +rodu)ed in a
)ountry (hi)h does not manufa)ture them, &ut is o&li*ed to e1+ort
them/ and )om+arati'ely to raise that of those +rodu)ed in a
)ountry (hi)h does manufa)ture them- It must ha'e some tenden)y
to sin0 their +ri)e in a &ar&arous, and to raise it in an
im+ro'ed and manufa)turin* )ountry- It must ha'e had some
tenden)y, therefore, to sin0 it in an)ient and to raise it in
modern times- Our tanners, &esides, ha'e not &een quite so
su))essful as our )lothiers in )on'in)in* the (isdom of the
nation that the safety of the )ommon(ealth de+ends u+on the
+ros+erity of their +arti)ular manufa)ture- They ha'e a))ordin*ly
&een mu)h less fa'oured- The e1+ortation of ra( hides has,
indeed, &een +rohi&ited, and de)lared a nuisan)e/ &ut their
im+ortation from forei*n )ountries has &een su&2e)ted to a duty/
and thou*h this duty has &een ta0en off from those of Ireland and
the +lantations 9for the limited time of fi'e years only:, yet
Ireland has not &een )onfined to the mar0et of 6reat .ritain for
the sale of its sur+lus hides, or of those (hi)h are not
manufa)tured at home- The hides of )ommon )attle ha'e &ut (ithin
these fe( years &een +ut amon* the enumerated )ommodities (hi)h
the +lantations )an send no(here &ut to the mother )ountry/
neither has the )ommer)e of Ireland &een in this )ase o++ressed
hitherto in order to su++ort the manufa)tures of 6reat .ritain-
Whate'er re*ulations tend to sin0 the +ri)e either of (ool
or of ra( hides &elo( (hat it naturally (ould &e must, in an
im+ro'ed and )ulti'ated )ountry, ha'e some tenden)y to raise the
+ri)e of &ut)her=s meat- The +ri)e &oth of the *reat and small
)attle, (hi)h are fed on im+ro'ed and )ulti'ated land, must &e
suffi)ient to +ay the rent (hi)h the landlord and the +rofit
(hi)h the farmer has reason to e1+e)t from im+ro'ed and
)ulti'ated land- If it is not, they (ill soon )ease to feed them-
Whate'er +art of this +ri)e, therefore, is not +aid &y the (ool
and the hide must &e +aid &y the )ar)ase- The less there is +aid
for the one, the more must &e +aid for the other- In (hat manner
this +ri)e is to &e di'ided u+on the different +arts of the &east
is indifferent to the landlords and farmers, +ro'ided it is all
+aid to them- In an im+ro'ed and )ulti'ated )ountry, therefore,
their interest as landlords and farmers )annot &e mu)h affe)ted
&y su)h re*ulations, thou*h their interest as )onsumers may, &y
the rise in the +ri)e of +ro'isions- It (ould &e quite other(ise,
ho(e'er, in an unim+ro'ed and un)ulti'ated )ountry, (here the
*reater +art of the lands )ould &e a++lied to no other +ur+ose
&ut the feedin* of )attle, and (here the (ool and the hide made
the +rin)i+al +art of the 'alue of those )attle- Their interest
as landlords and farmers (ould in this )ase &e 'ery dee+ly
affe)ted &y su)h re*ulations, and their interest as )onsumers
'ery little- The fall in the +ri)e of (ool and the hide (ould not
in this )ase raise the +ri)e of the )ar)ase, &e)ause the *reater
+art of the lands of the )ountry &ein* a++li)a&le to no other
+ur+ose &ut the feedin* of )attle, the same num&er (ould still
)ontinue to &e fed- The same quantity of &ut)her=s meat (ould
still )ome to mar0et- The demand for it (ould &e no *reater than
&efore- Its +ri)e, therefore, (ould &e the same as &efore- The
(hole +ri)e of )attle (ould fall, and alon* (ith it &oth the rent
and the +rofit of all those lands of (hi)h )attle (as the
+rin)i+al +rodu)e, that is, of the *reater +art of the lands of
the )ountry- The +er+etual +rohi&ition of the e1+ortation of
(ool, (hi)h is )ommonly, &ut 'ery falsely, as)ri&ed to $d(ard
III, (ould, in the then )ir)umstan)es of the )ountry, ha'e &een
the most destru)ti'e re*ulation (hi)h )ould (ell ha'e &een
thou*ht of- It (ould not only ha'e redu)ed the a)tual 'alue of
the *reater +art of the lands of the 0in*dom, &ut &y redu)in* the
+ri)e of the most im+ortant s+e)ies of small )attle it (ould ha'e
retarded 'ery mu)h its su&sequent im+ro'ement-
The (ool of S)otland fell 'ery )onsidera&ly in its +ri)e in
)onsequen)e of the union (ith $n*land, &y (hi)h it (as e1)luded
from the *reat mar0et of $uro+e, and )onfined to the narro( one
of 6reat .ritain- The 'alue of the *reater +art of the lands in
the southern )ounties of S)otland, (hi)h are )hiefly a shee+
)ountry, (ould ha'e &een 'ery dee+ly affe)ted &y this e'ent, had
not the rise in the +ri)e of &ut)her=s meat fully )om+ensated the
fall in the +ri)e of (ool-
As the effi)a)y of human industry, in in)reasin* the
quantity either of (ool or of ra( hides, is limited, so far as it
de+ends u+on the +rodu)e of the )ountry (here it is e1erted/ so
it is un)ertain so far as it de+ends u+on the +rodu)e of other
)ountries- It so far de+ends, not so mu)h u+on the quantity (hi)h
they +rodu)e, as u+on that (hi)h they do not manufa)ture/ and
u+on the restraints (hi)h they may or may not thin0 +ro+er to
im+ose u+on the e1+ortation of this sort of rude +rodu)e- These
)ir)umstan)es, as they are alto*ether inde+endent of domesti)
industry, so they ne)essarily render the effi)a)y of its efforts
more or less un)ertain- In multi+lyin* this sort of rude +rodu)e,
therefore, the effi)a)y of human industry is not only limited,
&ut un)ertain-
In multi+lyin* another 'ery im+ortant sort of rude +rodu)e,
the quantity of fish that is &rou*ht to mar0et, it is li0e(ise
&oth limited and un)ertain- It is limited &y the lo)al situation
of the )ountry, &y the +ro1imity or distan)e of its different
+ro'in)es from the sea, &y the num&er of its la0es and ri'ers,
and &y (hat may &e )alled the fertility or &arrenness of those
seas, la0es, and ri'ers, as to this sort of rude +rodu)e- As
+o+ulation in)reases, as the annual +rodu)e of the land and
la&our of the )ountry *ro(s *reater and *reater, there )ome to &e
more &uyers of fish, and those &uyers, too, ha'e a *reater
quantity and 'ariety of other *oods, or, (hat is the same thin*,
the +ri)e of a *reater quantity and 'ariety of other *oods to &uy
(ith- .ut it (ill *enerally &e im+ossi&le to su++ly the *reat and
e1tended mar0et (ithout em+loyin* a quantity of la&our *reater
than in +ro+ortion to (hat had &een requisite for su++lyin* the
narro( and )onfined one- A mar0et (hi)h, from requirin* only one
thousand, )omes to require annually ten thousand tons of fish,
)an seldom &e su++lied (ithout em+loyin* more than ten times the
quantity of la&our (hi)h had &efore &een suffi)ient to su++ly it-
The fish must *enerally &e fou*ht for at a *reater distan)e,
lar*er 'essels must &e em+loyed, and more e1+ensi'e ma)hinery of
e'ery 0ind made use of- The real +ri)e of this )ommodity,
therefore, naturally rises in the +ro*ress of im+ro'ement- It has
a))ordin*ly done so, I &elie'e, more or less in e'ery )ountry-
Thou*h the su))ess of a +arti)ular day=s fishin* may &e a
'ery un)ertain matter, yet, the lo)al situation of the )ountry
&ein* su++osed, the *eneral effi)a)y of industry in &rin*in* a
)ertain quantity of fish to mar0et, ta0in* the )ourse of a year,
or of se'eral years to*ether, it may +erha+s &e thou*ht is
)ertain enou*h/ and it no dou&t is so- As it de+ends more,
ho(e'er, u+on the lo)al situation of the )ountry than u+on the
state of its (ealth and industry/ as u+on this a))ount it may in
different )ountries &e the same in 'ery different +eriods of
im+ro'ement, and 'ery different in the same +eriod/ its
)onne)tion (ith the state of im+ro'ement is un)ertain, and it is
of this sort of un)ertainty that I am here s+ea0in*-
In in)reasin* the quantity of the different minerals and
metals (hi)h are dra(n from the &o(els of the earth, that of the
more +re)ious ones +arti)ularly, the effi)a)y of human industry
seems not to &e limited, &ut to &e alto*ether un)ertain-
The quantity of the +re)ious metals (hi)h is to &e found in
any )ountry is not limited &y anythin* in its lo)al situation,
su)h as the fertility or &arrenness of its o(n mines- Those
metals frequently a&ound in )ountries (hi)h +ossess no mines-
Their quantity in e'ery +arti)ular )ountry seems to de+end u+on
t(o different )ir)umstan)es/ first, u+on its +o(er of +ur)hasin*,
u+on the state of its industry, u+on the annual +rodu)e of its
land and la&our, in )onsequen)e of (hi)h it )an afford to em+loy
a *reater or a smaller quantity of la&our and su&sisten)e in
&rin*in* or +ur)hasin* su)h su+erfluities as *old and sil'er,
either from its o(n mines or from those of other )ountries/ and,
se)ondly, u+on the fertility or &arrenness of the mines (hi)h may
ha++en at any +arti)ular time to su++ly the )ommer)ial (orld (ith
those metals- The quantity of those metals in the )ountries most
remote from the mines must &e more or less affe)ted &y this
fertility or &arrenness, on a))ount of the easy and )hea+
trans+ortation of those metals, of their small &ul0 and *reat
'alue- Their quantity in China and Indostan must ha'e &een more
or less affe)ted &y the a&undan)e of the mines of Ameri)a-
So far as their quantity in any +arti)ular )ountry de+ends
u+on the former of those t(o )ir)umstan)es 9the +o(er of
+ur)hasin*:, their real +ri)e, li0e that of all other lu1uries
and su+erfluities, is li0ely to rise (ith the (ealth and
im+ro'ement of the )ountry, and to fall (ith its +o'erty and
de+ression- Countries (hi)h ha'e a *reat quantity of la&our and
su&sisten)e to s+are )an afford to +ur)hase any +arti)ular
quantity of those metals at the e1+ense of a *reater quantity of
la&our and su&sisten)e than )ountries (hi)h ha'e less to s+are-
So far as their quantity in any +arti)ular )ountry de+ends
u+on the latter of those t(o )ir)umstan)es 9the fertility or
&arrenness of the mines (hi)h ha++en to su++ly the )ommer)ial
(orld:, their real +ri)e, the real quantity of la&our and
su&sisten)e (hi)h they (ill +ur)hase or e1)han*e for, (ill, no
dou&t, sin0 more or less in +ro+ortion to the fertility, and rise
in +ro+ortion to the &arrenness of those mines-
The fertility or &arrenness of the mines, ho(e'er, (hi)h may
ha++en at any +arti)ular time to su++ly the )ommer)ial (orld, is
a )ir)umstan)e (hi)h, it is e'ident, may ha'e no sort of
)onne)tion (ith the state of industry in a +arti)ular )ountry- It
seems e'en to ha'e no 'ery ne)essary )onne)tion (ith that of the
(orld in *eneral- As arts and )ommer)e, indeed, *radually s+read
themsel'es o'er a *reater and a *reater +art of the earth, the
sear)h for ne( mines, &ein* e1tended o'er a (ider surfa)e, may
ha'e some(hat a &etter )han)e for &ein* su))essful than (hen
)onfined (ithin narro(er &ounds- The dis)o'ery of ne( mines,
ho(e'er, as the old ones )ome to &e *radually e1hausted, is a
matter of the *reatest un)ertainty, and su)h as no human s0ill or
industry )an ensure- All indi)ations, it is a)0no(led*ed, are
dou&tful, and the a)tual dis)o'ery and su))essful (or0in* of a
ne( mine )an alone as)ertain the reality of its 'alue, or e'en of
its e1isten)e- In this sear)h there seem to &e no )ertain limits
either to the +ossi&le su))ess or to the +ossi&le disa++ointment
of human industry- In the )ourse of a )entury or t(o, it is
+ossi&le that ne( mines may &e dis)o'ered more fertile than any
that ha'e e'er yet &een 0no(n/ and it is 2ust equally +ossi&le
the most fertile mine then 0no(n may &e more &arren than any that
(as (rou*ht &efore the dis)o'ery of the mines of Ameri)a- Whether
the one or the other of those t(o e'ents may ha++en to ta0e +la)e
is of 'ery little im+ortan)e to the real (ealth and +ros+erity of
the (orld, to the real 'alue of the annual +rodu)e of the land
and la&our of man0ind- Its nominal 'alue, the quantity of *old
and sil'er &y (hi)h this annual +rodu)e )ould &e e1+ressed or
re+resented, (ould, no dou&t, &e 'ery different/ &ut its real
'alue, the real quantity of la&our (hi)h it )ould +ur)hase or
)ommand, (ould &e +re)isely the same- A shillin* mi*ht in the one
)ase re+resent no more la&our than a +enny does at +resent/ and a
+enny in the other mi*ht re+resent as mu)h as a shillin* does
no(- .ut in the one )ase he (ho had a shillin* in his +o)0et
(ould &e no ri)her than he (ho has a +enny at +resent/ and in the
other he (ho had a +enny (ould &e 2ust as ri)h as he (ho has a
shillin* no(- The )hea+ness and a&undan)e of *old and sil'er
+late (ould &e the sole ad'anta*e (hi)h the (orld )ould deri'e
from the one e'ent, and the dearness and s)ar)ity of those
triflin* su+erfluities the only in)on'enien)y it )ould suffer
from the other-
CONC!USION O" T#$ DI6R$SSION CONC$RNIN6 T#$ 5ARIATIONS IN
T#$ 5A!U$ O" SI!5$R
The *reater +art of the (riters (ho ha'e )olle)ted the money
+ri)es of thin*s in an)ient times seem to ha'e )onsidered the lo(
money8+ri)e of )orn, and of *oods in *eneral, or, in other (ords,
the hi*h 'alue of *old and sil'er, as a +roof, not only of the
s)ar)ity of those metals, &ut of the +o'erty and &ar&arism of the
)ountry at the time (hen it too0 +la)e- This notion is )onne)ted
(ith the system of +oliti)al e)onomy (hi)h re+resents national
(ealth as )onsistin* in the a&undan)e, and national +o'erty in
the s)ar)ity of *old and sil'er/ a system (hi)h I shall endea'our
to e1+lain and e1amine at *reat len*th in the fourth &oo0 of this
inquiry- I shall only o&ser'e at +resent that the hi*h 'alue of
the +re)ious metals )an &e no +roof of the +o'erty or &ar&arism
of any +arti)ular )ountry at the time (hen it too0 +la)e- It is a
+roof only of the &arrenness of the mines (hi)h ha++ened at that
time to su++ly the )ommer)ial (orld- A +oor )ountry, as it )annot
afford to &uy more, so it )an as little afford to +ay dearer for
*old and sil'er than a ri)h one/ and the 'alue of those metals,
therefore, is not li0ely to &e hi*her in the former than in the
latter- In China, a )ountry mu)h ri)her than any +art of $uro+e,
the 'alue of the +re)ious metals is mu)h hi*her than in any +art
of $uro+e- As the (ealth of $uro+e, indeed, has in)reased *reatly
sin)e the dis)o'ery of the mines of Ameri)a, so the 'alue of *old
and sil'er has *radually diminished- This diminution of their
'alue, ho(e'er, has not &een o(in* to the in)rease of the real
(ealth of $uro+e, of the annual +rodu)e of its land and la&our,
&ut to the a))idental dis)o'ery of more a&undant mines than any
that (ere 0no(n &efore- The in)rease of the quantity of *old and
sil'er in $uro+e, and the in)rease of its manufa)tures and
a*ri)ulture, are t(o e'ents (hi)h, thou*h they ha'e ha++ened
nearly a&out the same time, yet ha'e arisen from 'ery different
)auses, and ha'e s)ar)e any natural )onne)tion (ith one another-
The one has arisen from a mere a))ident, in (hi)h neither
+ruden)e nor +oli)y either had or )ould ha'e any share- The other
from the fall of the feudal system, and from the esta&lishment of
a *o'ernment (hi)h afforded to industry the only en)oura*ement
(hi)h it requires, some tolera&le se)urity that it shall en2oy
the fruits of its o(n la&our- oland, (here the feudal system
still )ontinues to ta0e +la)e, is at this day as &e**arly a
)ountry as it (as &efore the dis)o'ery of Ameri)a- The money
+ri)e of )orn, ho(e'er, has risen/ the real 'alue of the +re)ious
metals has fallen in oland, in the same manner as in other +arts
of $uro+e- Their quantity, therefore, must ha'e in)reased there
as in other +la)es, and nearly in the same +ro+ortion to the
annual +rodu)e of its land and la&our- This in)rease of the
quantity of those metals, ho(e'er, has not, it seems, in)reased
that annual +rodu)e, has neither im+ro'ed the manufa)tures and
a*ri)ulture of the )ountry, nor mended the )ir)umstan)es of its
inha&itants- S+ain and ortu*al, the )ountries (hi)h +ossess the
mines, are, after oland, +erha+s, the t(o most &e**arly
)ountries in $uro+e- The 'alue of the +re)ious metals, ho(e'er,
must &e lo(er in S+ain and ortu*al than in any other +art of
$uro+e/ as they )ome from those )ountries to all other +arts of
$uro+e, loaded, not only (ith a frei*ht and an insuran)e, &ut
(ith the e1+ense of smu**lin*, their e1+ortation &ein* either
+rohi&ited, or su&2e)ted to a duty- In +ro+ortion to the annual
+rodu)e of the land and la&our, therefore, their quantity must &e
*reater in those )ountries than in any other +art of $uro+e-
Those )ountries, ho(e'er, are +oorer than the *reater +art of
$uro+e- Thou*h the feudal system has &een a&olished in S+ain and
ortu*al, it has not &een su))eeded &y a mu)h &etter-
As the lo( 'alue of *old and sil'er, therefore, is no +roof
of the (ealth and flourishin* state of the )ountry (here it ta0es
+la)e/ so neither is their hi*h 'alue, or the lo( money +ri)e
either of *oods in *eneral, or of )orn in +arti)ular, any +roof
of its +o'erty and &ar&arism-
.ut thou*h the lo( money +ri)e either of *oods in *eneral,
or of )orn in +arti)ular, &e no +roof of the +o'erty or &ar&arism
of the times, the lo( money +ri)e of some +arti)ular sorts of
*oods, su)h as )attle, +oultry, *ame of all 0inds, et)-, in
+ro+ortion to that of )orn, is a most de)isi'e one- It )learly
demonstrates, first, their *reat a&undan)e in +ro+ortion to that
of )orn, and )onsequently the *reat e1tent of the land (hi)h they
o))u+ied in +ro+ortion to (hat (as o))u+ied &y )orn/ and,
se)ondly, the lo( 'alue of this land in +ro+ortion to that of
)orn land, and )onsequently the un)ulti'ated and unim+ro'ed state
of the far *reater +art of the lands of the )ountry- It )learly
demonstrates that the sto)0 and +o+ulation of the )ountry did not
&ear the same +ro+ortion to the e1tent of its territory (hi)h
they )ommonly do in )i'ilised )ountries, and that so)iety (as at
that time, and in that )ountry, &ut in its infan)y- "rom the hi*h
or lo( money +ri)e either of *oods in *eneral, or of )orn in
+arti)ular, (e )an infer only that the mines (hi)h at that time
ha++ened to su++ly the )ommer)ial (orld (ith *old and sil'er (ere
fertile or &arren, not that the )ountry (as ri)h or +oor- .ut
from the hi*h or lo( money +ri)e of some sorts of *oods in
+ro+ortion to that of others, (e )an infer, (ith a de*ree of
+ro&a&ility that a++roa)hes almost to )ertainty, that it (as ri)h
or +oor, that the *reater +art of its lands (ere im+ro'ed or
unim+ro'ed, and that it (as either in a more or less &ar&arous
state, or in a more or less )i'ilised one-
Any rise in the money +ri)e of *oods (hi)h +ro)eeded
alto*ether from the de*radation of the 'alue of sil'er (ould
affe)t all sorts of *oods equally, and raise their +ri)e
uni'ersally a third, or a fourth, or a fifth +art hi*her,
a))ordin* as sil'er ha++ened to lose a third, or a fourth, or a
fifth +art of its former 'alue- .ut the rise in the +ri)e of
+ro'isions, (hi)h has &een the su&2e)t of so mu)h reasonin* and
)on'ersation, does not affe)t all sorts of +ro'isions equally-
Ta0in* the )ourse of the +resent )entury at an a'era*e, the +ri)e
of )orn, it is a)0no(led*ed, e'en &y those (ho a))ount for this
rise &y the de*radation of the 'alue of sil'er, has risen mu)h
less than that of some other sorts of +ro'isions- The rise in the
+ri)e of those other sorts of +ro'isions, therefore, )annot &e
o(in* alto*ether to the de*radation of the 'alue of sil'er- Some
other )auses must &e ta0en into the a))ount, and those (hi)h ha'e
&een a&o'e assi*ned (ill, +erha+s, (ithout ha'in* re)ourse to the
su++osed de*radation of the 'alue of sil'er, suffi)iently e1+lain
this rise in those +arti)ular sorts of +ro'isions of (hi)h the
+ri)e has a)tually risen in +ro+ortion to that of )orn-
As to the +ri)e of )orn itself, it has, durin* the
si1ty8four first years of the +resent )entury, and &efore the
late e1traordinary )ourse of &ad seasons, &een some(hat lo(er
than it (as durin* the si1ty8four last years of the +re)edin*
)entury- This fa)t is attested, not only &y the a))ounts of
Windsor mar0et, &ut &y the +u&li) fiars of all the different
)ounties of S)otland, and &y the a))ounts of se'eral different
mar0ets in "ran)e, (hi)h ha'e &een )olle)ted (ith *reat dili*en)e
and fidelity &y 4r- 4essan)e and &y 4r- Du+re de St- 4aur- The
e'iden)e is more )om+lete than )ould (ell ha'e &een e1+e)ted in a
matter (hi)h is naturally so 'ery diffi)ult to &e as)ertained-
As to the hi*h +ri)e of )orn durin* these last ten or t(el'e
years, it )an &e suffi)iently a))ounted for from the &adness of
the seasons, (ithout su++osin* any de*radation in the 'alue of
sil'er- The o+inion, therefore, that sil'er is )ontinually
sin0in* in its 'alue, seems not to &e founded u+on any *ood
o&ser'ations, either u+on the +ri)es of )orn, or u+on those of
other +ro'isions-
The same quantity of sil'er, it may, +erha+s, &e said, (ill
in the +resent times, e'en a))ordin* to the a))ount (hi)h has
&een here *i'en, +ur)hase a mu)h smaller quantity of se'eral
sorts of +ro'isions than it (ould ha'e done durin* some +art of
the last )entury/ and to as)ertain (hether this )han*e &e o(in*
to a rise in the 'alue of those *oods, or to a fall in the 'alue
of sil'er, is only to esta&lish a 'ain and useless distin)tion,
(hi)h )an &e of no sort of ser'i)e to the man (ho has only a
)ertain quantity of sil'er to *o to mar0et (ith, or a )ertain
fi1ed re'enue in money- I )ertainly do not +retend that the
0no(led*e of this distin)tion (ill ena&le him to &uy )hea+er- It
may not, ho(e'er, u+on that a))ount &e alto*ether useless-
It may &e of some use to the +u&li) &y affordin* an easy
+roof of the +ros+erous )ondition of the )ountry- If the rise in
the +ri)e of some sorts of +ro'isions &e o(in* alto*ether to a
fall in the 'alue of sil'er, it is o(in* to a )ir)umstan)e from
(hi)h nothin* )an &e inferred &ut the fertility of the Ameri)an
mines- The real (ealth of the )ountry, the annual +rodu)e of its
land and la&our, may, not(ithstandin* this )ir)umstan)e, &e
either *radually de)linin*, as in ortu*al and oland/ or
*radually ad'an)in*, as in most other +arts of $uro+e- .ut if
this rise in the +ri)e of some sorts of +ro'isions &e o(in* to a
rise in the real 'alue of the land (hi)h +rodu)es them, to its
in)reased fertility, or, in )onsequen)e of more e1tended
im+ro'ement and *ood )ulti'ation, to its ha'in* &een rendered fit
for +rodu)in* )orn/ it is o(in* to a )ir)umstan)e (hi)h indi)ates
in the )learest manner the +ros+erous and ad'an)in* state of the
)ountry- The land )onstitutes &y far the *reatest, the most
im+ortant, and the most dura&le +art of the (ealth of e'ery
e1tensi'e )ountry- It may surely &e of some use, or, at least, it
may *i'e some satisfa)tion to the +u&li), to ha'e so de)isi'e a
+roof of the in)reasin* 'alue of &y far the *reatest, the most
im+ortant, and the most dura&le +art of its (ealth-
It may, too, &e of some use to the +u&li) in re*ulatin* the
+e)uniary re(ard of some of its inferior ser'ants- If this rise
in the +ri)e of some sorts of +ro'isions &e o(in* to a fall in
the 'alue of sil'er, their +e)uniary re(ard, +ro'ided it (as not
too lar*e &efore, ou*ht )ertainly to &e au*mented in +ro+ortion
to the e1tent of this fall- If it is not au*mented, their real
re)om+ense (ill e'idently &e so mu)h diminished- .ut if this rise
of +ri)e is o(in* to the in)reased 'alue, in )onsequen)e of the
im+ro'ed fertility of the land (hi)h +rodu)es su)h +ro'isions, it
&e)omes a mu)h ni)er matter to 2ud*e either in (hat +ro+ortion
any +e)uniary re(ard ou*ht to &e au*mented, or (hether it ou*ht
to &e au*mented at all- The e1tension of im+ro'ement and
)ulti'ation, as it ne)essarily raises more or less, in +ro+ortion
to the +ri)e of )orn, that of e'ery sort of animal food, so it as
ne)essarily lo(ers that of, I &elie'e, e'ery sort of 'e*eta&le
food- It raises the +ri)e of animal food/ &e)ause a *reat +art of
the land (hi)h +rodu)es it, &ein* rendered fit for +rodu)in*
)orn, must afford to the landlord and farmer the rent and +rofit
of )orn8land- It lo(ers the +ri)e of 'e*eta&le food/ &e)ause, &y
in)reasin* the fertility of the land, it in)reases its a&undan)e-
The im+ro'ements of a*ri)ulture, too, introdu)e many sorts of
'e*eta&le food, (hi)h, requirin* less land and not more la&our
than )orn, )ome mu)h )hea+er to mar0et- Su)h are +otatoes and
mai;e, or (hat is )alled Indian )orn, the t(o most im+ortant
im+ro'ements (hi)h the a*ri)ulture of $uro+e, +erha+s, (hi)h
$uro+e itself has re)ei'ed from the *reat e1tension of its
)ommer)e and na'i*ation- 4any sorts of 'e*eta&le food, &esides,
(hi)h in the rude state of a*ri)ulture are )onfined to the
0it)hen8*arden, and raised only &y the s+ade, )ome in its
im+ro'ed state to &e introdu)ed into )ommon fields, and to &e
raised &y the +lou*h3 su)h as turni+s, )arrots, )a&&a*es, et)- If
in the +ro*ress of im+ro'ement, therefore, the real +ri)e of one
s+e)ies of food ne)essarily rises, that of another as ne)essarily
falls, and it &e)omes a matter of more ni)ety to 2ud*e ho( far
the rise in the one may &e )om+ensated &y the fall in the other-
When the real +ri)e of &ut)her=s meat has on)e *ot to its hei*ht
9(hi)h, (ith re*ard to e'ery sort, e1)e+t, +erha+s, that of ho*s=
flesh, it seems to ha'e done throu*h a *reat +art of $n*land more
than a )entury a*o:, any rise (hi)h )an after(ards ha++en in that
of any other sort of animal food )annot mu)h affe)t the
)ir)umstan)es of the inferior ran0s of +eo+le- The )ir)umstan)es
of the +oor throu*h a *reat +art of $n*land )annot surely &e so
mu)h distressed &y any rise in the +ri)e of +oultry, fish,
(ild8fo(l, or 'enison, as they must &e relie'ed &y the fall in
that of +otatoes-
In the +resent season of s)ar)ity the hi*h +ri)e of )orn no
dou&t distresses the +oor- .ut in times of moderate +lenty, (hen
)orn is at its ordinary or a'era*e +ri)e, the natural rise in the
+ri)e of any other sort of rude +rodu)e )annot mu)h affe)t them-
They suffer more, +erha+s, &y the artifi)ial rise (hi)h has &een
o))asioned &y ta1es in the +ri)e of some manufa)tured
)ommodities/ as of salt, soa+, leather, )andles, malt, &eer, and
ale, et)-
$""$CTS O" T#$ RO6R$SS O" I4RO5$4$NT UON T#$ R$A!
RIC$ O" 4ANU"ACTUR$S
It is the natural effe)t of im+ro'ement, ho(e'er, to
diminish *radually the real +ri)e of almost all manufa)tures-
That of the manufa)turin* (or0manshi+ diminishes, +erha+s, in all
of them (ithout e1)e+tion- In )onsequen)e of &etter ma)hinery, of
*reater de1terity, and of a more +ro+er di'ision and distri&ution
of (or0, all of (hi)h are the natural effe)ts of im+ro'ement, a
mu)h smaller quantity of la&our &e)omes requisite for e1e)utin*
any +arti)ular +ie)e of (or0, and thou*h, in )onsequen)e of the
flourishin* )ir)umstan)es of the so)iety, the real +ri)e of
la&our should rise 'ery )onsidera&ly, yet the *reat diminution of
the quantity (ill *enerally mu)h more than )om+ensate the
*reatest rise (hi)h )an ha++en in the +ri)e-
There are, indeed, a fe( manufa)tures in (hi)h the ne)essary
rise in the real +ri)e of the rude materials (ill more than
)om+ensate all the ad'anta*es (hi)h im+ro'ement )an introdu)e
into the e1e)ution of the (or0- In )ar+enters= and 2oiners= (or0,
and in the )oarser sort of )a&inet (or0, the ne)essary rise in
the real +ri)e of &arren tim&er, in )onsequen)e of the
im+ro'ement of land, (ill more than )om+ensate all the ad'anta*es
(hi)h )an &e deri'ed from the &est ma)hinery, the *reatest
de1terity, and the most +ro+er di'ision and distri&ution of (or0-
.ut in all )ases in (hi)h the real +ri)e of the rude
materials either does not rise at all, or does not rise 'ery
mu)h, that of the manufa)tured )ommodity sin0s 'ery )onsidera&ly-
This diminution of +ri)e has, in the )ourse of the +resent
and +re)edin* )entury, &een most remar0a&le in those manufa)tures
of (hi)h the materials are the )oarser metals- A &etter mo'ement
of a (at)h, that a&out the middle of the last )entury )ould ha'e
&een &ou*ht for t(enty +ounds, may no( +erha+s &e had for t(enty
shillin*s- In the (or0 of )utiers and lo)0smiths, in all the toys
(hi)h are made of the )oarser metals, and in all those *oods
(hi)h are )ommonly 0no(n &y the name of .irmin*ham and Sheffield
(are, there has &een, durin* the same +eriod, a 'ery *reat
redu)tion of +ri)e, thou*h not alto*ether so *reat as in
(at)h8(or0- It has, ho(e'er, &een suffi)ient to astonish the
(or0men of e'ery other +art of $uro+e, (ho in many )ases
a)0no(led*e that they )an +rodu)e no (or0 of equal *oodness for
dou&le, or e'en for tri+le the +ri)e- There are +erha+s no
manufa)tures in (hi)h the di'ision of la&our )an &e )arried
further, or in (hi)h the ma)hinery em+loyed admits of a *reater
'ariety of im+ro'ements, than those of (hi)h the materials are
the )oarser metals-
In the )lothin* manufa)ture there has, durin* the same
+eriod, &een no su)h sensi&le redu)tion of +ri)e- The +ri)e of
su+erfine )loth, I ha'e &een assured, on the )ontrary, has,
(ithin these fi'e8and8t(enty or thirty years, risen some(hat in
+ro+ortion to its quality/ o(in*, it (as said, to a )onsidera&le
rise in the +ri)e of the material, (hi)h )onsists alto*ether of
S+anish (ool- That of the 7or0shire )loth, (hi)h is made
alto*ether of $n*lish (ool, is said indeed, durin* the )ourse of
the +resent )entury, to ha'e fallen a *ood deal in +ro+ortion to
its quality- Juality, ho(e'er, is so 'ery dis+uta&le a matter
that I loo0 u+on all information of this 0ind as some(hat
un)ertain- In the )lothin* manufa)ture, the di'ision of la&our is
nearly the same no( as it (as a )entury a*o, and the ma)hinery
em+loyed is not 'ery different- There may, ho(e'er, ha'e &een
some small im+ro'ements in &oth, (hi)h may ha'e o))asioned some
redu)tion of +ri)e-
.ut the redu)tion (ill a++ear mu)h more sensi&le and
undenia&le if (e )om+are the +ri)e of this manufa)ture in the
+resent times (ith (hat it (as in a mu)h remoter +eriod, to(ards
the end of the fifteenth )entury, (hen the la&our (as +ro&a&ly
mu)h less su&di'ided, and the ma)hinery em+loyed mu)h more
im+erfe)t, than it is at +resent-
In 1G?7, &ein* the Gth of #enry 5II, it (as ena)ted that
@(hosoe'er shall sell &y retail a &road yard of the finest
s)arlet *rained, or of other *rained )loth of the finest ma0in*,
a&o'e si1teen shillin*s, shall forfeit forty shillin*s for e'ery
yard so sold-@ Si1teen shillin*s, therefore, )ontainin* a&out the
same quantity of sil'er as four8and8t(enty shillin*s of our
+resent money, (as, at that time, re)0oned not an unreasona&le
+ri)e for a yard of the finest )loth/ and as this is a sum+tuary
la(, su)h )loth, it is +ro&a&le, had usually &een sold some(hat
dearer- A *uinea may &e re)0oned the hi*hest +ri)e in the +resent
times- $'en thou*h the quality of the )loths, therefore, should
&e su++osed equal, and that of the +resent times is most +ro&a&ly
mu)h su+erior, yet, e'en u+on this su++osition, the money +ri)e
of the finest )loth a++ears to ha'e &een )onsidera&ly redu)ed
sin)e the end of the fifteenth )entury- .ut its real +ri)e has
&een mu)h more redu)ed- Si1 shillin*s and ei*ht+en)e (as then,
and lon* after(ards, re)0oned the a'era*e +ri)e of a quarter of
(heat- Si1teen shillin*s, therefore, (as the +ri)e of t(o
quarters and more than three &ushels of (heat- 5aluin* a quarter
of (heat in the +resent times at ei*ht8and8t(enty shillin*s, the
real +ri)e of a yard of fine )loth must, in those times, ha'e
&een equal to at least three +ounds si1 shillin*s and si1+en)e of
our +resent money- The man (ho &ou*ht it must ha'e +arted (ith
the )ommand of a quantity of la&our and su&sisten)e equal to (hat
that sum (ould +ur)hase in the +resent times-
The redu)tion in the real +ri)e of the )oarse manufa)ture,
thou*h )onsidera&le, has not &een so *reat as in that of the
fine-
In 16GB, &ein* the Brd of $d(ard I5, it (as ena)ted that @no
ser'ant in hus&andry, nor )ommon la&ourer, nor ser'ant to any
artifi)er inha&itin* out of a )ity or &ur*h shall use or (ear in
their )lothin* any )loth a&o'e t(o shillin*s the &road yard-@ In
the Brd of $d(ard I5, t(o shillin*s )ontained 'ery nearly the
same quantity of sil'er as four of our +resent money- .ut the
7or0shire )loth (hi)h is no( sold at four shillin*s the yard is
+ro&a&ly mu)h su+erior to any that (as then made for the (earin*
of the 'ery +oorest order of )ommon ser'ants- $'en the money
+ri)e of their )lothin*, therefore, may, in +ro+ortion to the
quality, &e some(hat )hea+er in the +resent than it (as in those
an)ient times- The real +ri)e is )ertainly a *ood deal )hea+er-
Ten+en)e (as then re)0oned (hat is )alled the moderate and
reasona&le +ri)e of a &ushel of (heat- T(o shillin*s, therefore,
(as the +ri)e of t(o &ushels and near t(o +e)0s of (heat, (hi)h
in the +resent times, at three shillin*s and si1+en)e the &ushel,
(ould &e (orth ei*ht shillin*s and nine+en)e- "or a yard of this
)loth the +oor ser'ant must ha'e +arted (ith the +o(er of
+ur)hasin* a quantity of su&sisten)e equal to (hat ei*ht
shillin*s and nine+en)e (ould +ur)hase in the +resent times- This
is a sum+tuary la( too, restrainin* the lu1ury and e1tra'a*an)e
of the +oor- Their )lothin*, therefore, had )ommonly &een mu)h
more e1+ensi'e-
The same order of +eo+le are, &y the same la(, +rohi&ited
from (earin* hose, of (hi)h the +ri)e should e1)eed fourteen+en)e
the +air, equal to a&out ei*ht8and8t(enty+en)e of our +resent
money- .ut fourteen+en)e (as in those times the +ri)e of a &ushel
and near t(o +e)0s of (heat, (hi)h, in the +resent times, at
three and si1+en)e the &ushel, (ould )ost fi'e shillin*s and
three+en)e- We should in the +resent times )onsider this as a
'ery hi*h +ri)e for a +air of sto)0in*s, to a ser'ant of the
+oorest and lo(est order- #e must, ho(e'er, in those times ha'e
+aid (hat (as really equi'alent to this +ri)e for them-
In the time of $d(ard I5 the art of 0nittin* sto)0in*s (as
+ro&a&ly not 0no(n in any +art of $uro+e- Their hose (ere made of
)ommon )loth, (hi)h may ha'e &een one of the )auses of their
dearness- The first +erson that (ore sto)0in*s in $n*land is said
to ha'e &een Jueen $li;a&eth- She re)ei'ed them as a +resent from
the S+anish am&assador-
.oth in the )oarse and in the fine (oollen manufa)ture, the
ma)hinery em+loyed (as mu)h more im+erfe)t in those an)ient than
it is in the +resent times- It has sin)e re)ei'ed three 'ery
)a+ital im+ro'ements, &esides, +ro&a&ly, many smaller ones of
(hi)h it may &e diffi)ult to as)ertain either the num&er or the
im+ortan)e- The three )a+ital im+ro'ements are3 first, the
e1)han*e of the ro)0 and s+indle for the s+innin*8(heel, (hi)h,
(ith the same quantity of la&our, (ill +erform more than dou&le
the quantity of (or0- Se)ondly, the use of se'eral 'ery in*enious
ma)hines (hi)h fa)ilitate and a&rid*e in a still *reater
+ro+ortion the (indin* of the (orsted and (oollen yarn, or the
+ro+er arran*ement of the (ar+ and (oof &efore they are +ut into
the loom/ an o+eration (hi)h, +re'ious to the in'ention of those
ma)hines, must ha'e &een e1tremely tedious and trou&lesome-
Thirdly, the em+loyment of the fullin* mill for thi)0enin* the
)loth, instead of treadin* it in (ater- Neither (ind nor (ater
mills of any 0ind (ere 0no(n in $n*land so early as the &e*innin*
of the si1teenth )entury, nor, so far as I 0no(, in any other
+art of $uro+e north of the Al+s- They had &een introdu)ed into
Italy some time &efore-
The )onsideration of these )ir)umstan)es may, +erha+s, in
some measure e1+lain to us (hy the real +ri)e &oth of the )oarse
and of the fine manufa)ture (as so mu)h hi*her in those an)ient
than it is in the +resent times- It )ost a *reater quantity of
la&our to &rin* the *oods to mar0et- When they (ere &rou*ht
thither, therefore, they must ha'e +ur)hased or e1)han*ed for the
+ri)e of a *reater quantity-
The )oarse manufa)ture +ro&a&ly (as, in those an)ient times,
)arried on in $n*land, in the same manner as it al(ays has &een
in )ountries (here arts and manufa)tures are in their infan)y- It
(as +ro&a&ly a household manufa)ture, in (hi)h e'ery different
+art of the (or0 (as o))asionally +erformed &y all the different
mem&ers of almost e'ery +ri'ate family/ &ut so as to &e their
(or0 only (hen they had nothin* else to do, and not to &e the
+rin)i+al &usiness from (hi)h any of them deri'ed the *reater
+art of their su&sisten)e- The (or0 (hi)h is +erformed in this
manner, it has already &een o&ser'ed, )omes al(ays mu)h )hea+er
to mar0et than that (hi)h is the +rin)i+al or sole fund of the
(or0man=s su&sisten)e- The fine manufa)ture, on the other hand,
(as not in those times )arried on in $n*land, &ut in the ri)h and
)ommer)ial )ountry of "landers/ and it (as +ro&a&ly )ondu)ted
then, in the same manner as no(, &y +eo+le (ho deri'ed the (hole,
or the +rin)i+al +art of their su&sisten)e from it- It (as,
&esides, a forei*n manufa)ture, and must ha'e +aid some duty, the
an)ient )ustom of tonna*e and +ounda*e at least, to the 0in*-
This duty, indeed, (ould not +ro&a&ly &e 'ery *reat- It (as not
then the +oli)y of $uro+e to restrain, &y hi*h duties, the
im+ortation of forei*n manufa)tures, &ut rather to en)oura*e it,
in order that mer)hants mi*ht &e ena&led to su++ly, at as easy a
rate as +ossi&le, the *reat men (ith the )on'enien)es and
lu1uries (hi)h they (anted, and (hi)h the industry of their o(n
)ountry )ould not afford them-
The )onsideration of these )ir)umstan)es may +erha+s in some
measure e1+lain to us (hy, in those an)ient times, the real +ri)e
of the )oarse manufa)ture (as, in +ro+ortion to that of the fine,
so mu)h lo(er than in the +resent times-
CONC!USION O" T#$ C#AT$R
I shall )on)lude this 'ery lon* )ha+ter (ith o&ser'in* that
e'ery im+ro'ement in the )ir)umstan)es of the so)iety tends
either dire)tly or indire)tly to raise the real rent of land, to
in)rease the real (ealth of the landlord, his +o(er of +ur)hasin*
the la&our, or the +rodu)e of the la&our of other +eo+le-
The e1tension of im+ro'ement and )ulti'ation tends to raise
it dire)tly- The landlord=s share of the +rodu)e ne)essarily
in)reases (ith the in)rease of the +rodu)e-
That rise in the real +ri)e of those +arts of the rude
+rodu)e of land, (hi)h is first the effe)t of e1tended
im+ro'ement and )ulti'ation, and after(ards the )ause of their
&ein* still further e1tended, the rise in the +ri)e of )attle,
for e1am+le, tends too to raise the rent of land dire)tly, and in
a still *reater +ro+ortion- The real 'alue of the landlord=s
share, his real )ommand of the la&our of other +eo+le, not only
rises (ith the real 'alue of the +rodu)e, &ut the +ro+ortion of
his share to the (hole +rodu)e rises (ith it- That +rodu)e, after
the rise in its real +ri)e, requires no more la&our to )olle)t it
than &efore- A smaller +ro+ortion of it (ill, therefore, &e
suffi)ient to re+la)e, (ith the ordinary +rofit, the sto)0 (hi)h
em+loys that la&our- A *reater +ro+ortion of it must,
)onsequently, &elon* to the landlord-
All those im+ro'ements in the +rodu)ti'e +o(ers of la&our,
(hi)h tend dire)tly to redu)e the real +ri)e of manufa)tures,
tend indire)tly to raise the real rent of land- The landlord
e1)han*es that +art of his rude +rodu)e, (hi)h is o'er and a&o'e
his o(n )onsum+tion, or (hat )omes to the same thin*, the +ri)e
of that +art of it, for manufa)tured +rodu)e- Whate'er redu)es
the real +ri)e of the latter, raises that of the former- An equal
quantity of the former &e)omes there&y equi'alent to a *reater
quantity of the latter/ and the landlord is ena&led to +ur)hase a
*reater quantity of the )on'enien)es, ornaments, or lu1uries,
(hi)h he has o))asion for-
$'ery in)rease in the real (ealth of the so)iety, e'ery
in)rease in the quantity of useful la&our em+loyed (ithin it,
tends indire)tly to raise the real rent of land- A )ertain
+ro+ortion of this la&our naturally *oes to the land- A *reater
num&er of men and )attle are em+loyed in its )ulti'ation, the
+rodu)e in)reases (ith the in)rease of the sto)0 (hi)h is thus
em+loyed in raisin* it, and the rent in)reases (ith the +rodu)e-
The )ontrary )ir)umstan)es, the ne*le)t of )ulti'ation and
im+ro'ement, the fall in the real +ri)e of any +art of the rude
+rodu)e of land, the rise in the real +ri)e of manufa)tures from
the de)ay of manufa)turin* art and industry, the de)lension of
the real (ealth of the so)iety, all tend, on the other hand, to
lo(er the real rent of land, to redu)e the real (ealth of the
landlord, to diminish his +o(er of +ur)hasin* either the la&our,
or the +rodu)e of the la&our of other +eo+le-
The (hole annual +rodu)e of the land and la&our of e'ery
)ountry, or (hat )omes to the same thin*, the (hole +ri)e of that
annual +rodu)e, naturally di'ides itself, it has already &een
o&ser'ed, into three +arts/ the rent of land, the (a*es of
la&our, and the +rofits of sto)0/ and )onstitutes a re'enue to
three different orders of +eo+le/ to those (ho li'e &y rent, to
those (ho li'e &y (a*es, and to those (ho li'e &y +rofit- These
are the three *reat, ori*inal, and )onstituent orders of e'ery
)i'ilised so)iety, from (hose re'enue that of e'ery other order
is ultimately deri'ed-
The interest of the first of those three *reat orders, it
a++ears from (hat has &een 2ust no( said, is stri)tly and
inse+ara&ly )onne)ted (ith the *eneral interest of the so)iety-
Whate'er either +romotes or o&stru)ts the one, ne)essarily
+romotes or o&stru)ts the other- When the +u&li) deli&erates
)on)ernin* any re*ulation of )ommer)e or +oli)e, the +ro+rietors
of land ne'er )an mislead it, (ith a 'ie( to +romote the interest
of their o(n +arti)ular order/ at least, if they ha'e any
tolera&le 0no(led*e of that interest- They are, indeed, too often
defe)ti'e in this tolera&le 0no(led*e- They are the only one of
the three orders (hose re'enue )osts them neither la&our nor
)are, &ut )omes to them, as it (ere, of its o(n a))ord, and
inde+endent of any +lan or +ro2e)t of their o(n- That indolen)e,
(hi)h is the natural effe)t of the ease and se)urity of their
situation, renders them too often, not only i*norant, &ut
in)a+a&le of that a++li)ation of mind (hi)h is ne)essary in order
to foresee and understand the )onsequen)es of any +u&li)
re*ulation-
The interest of the se)ond order, that of those (ho li'e &y
(a*es, is as stri)tly )onne)ted (ith the interest of the so)iety
as that of the first- The (a*es of the la&ourer, it has already
&een sho(n, are ne'er so hi*h as (hen the demand for la&our is
)ontinually risin*, or (hen the quantity em+loyed is e'ery year
in)reasin* )onsidera&ly- When this real (ealth of the so)iety
&e)omes stationary, his (a*es are soon redu)ed to (hat is &arely
enou*h to ena&le him to &rin* u+ a family, or to )ontinue the
ra)e of la&ourers- When the so)iety de)lines, they fall e'en
&elo( this- The order of +ro+rietors may, +erha+s, *ain more &y
the +ros+erity of the so)iety than that of la&ourers3 &ut there
is no order that suffers so )ruelly from its de)line- .ut thou*h
the interest of the la&ourer is stri)tly )onne)ted (ith that of
the so)iety, he is in)a+a&le either of )om+rehendin* that
interest or of understandin* its )onne)tion (ith his o(n- #is
)ondition lea'es him no time to re)ei'e the ne)essary
information, and his edu)ation and ha&its are )ommonly su)h as to
render him unfit to 2ud*e e'en thou*h he (as fully informed- In
the +u&li) deli&erations, therefore, his 'oi)e is little heard
and less re*arded, e1)e+t u+on some +arti)ular o))asions, (hen
his )lamour is animated, set on and su++orted &y his em+loyers,
not for his, &ut their o(n +arti)ular +ur+oses-
#is em+loyers )onstitute the third order, that of those (ho
li'e &y +rofit- It is the sto)0 that is em+loyed for the sa0e of
+rofit (hi)h +uts into motion the *reater +art of the useful
la&our of e'ery so)iety- The +lans and +ro2e)ts of the em+loyers
of sto)0 re*ulate and dire)t all the most im+ortant o+erations of
la&our, and +rofit is the end +ro+osed &y all those +lans and
+ro2e)ts- .ut the rate of +rofit does not, li0e rent and (a*es,
rise (ith the +ros+erity and fall (ith the de)lension of the
so)iety- On the )ontrary, it is naturally lo( in ri)h and hi*h in
+oor )ountries, and it is al(ays hi*hest in the )ountries (hi)h
are *oin* fastest to ruin- The interest of this third order,
therefore, has not the same )onne)tion (ith the *eneral interest
of the so)iety as that of the other t(o- 4er)hants and master
manufa)turers are, in this order, the t(o )lasses of +eo+le (ho
)ommonly em+loy the lar*est )a+itals, and (ho &y their (ealth
dra( to themsel'es the *reatest share of the +u&li)
)onsideration- As durin* their (hole li'es they are en*a*ed in
+lans and +ro2e)ts, they ha'e frequently more a)uteness of
understandin* than the *reater +art of )ountry *entlemen- As
their thou*hts, ho(e'er, are )ommonly e1er)ised rather a&out the
interest of their o(n +arti)ular &ran)h of &usiness, than a&out
that of the so)iety, their 2ud*ment, e'en (hen *i'en (ith the
*reatest )andour 9(hi)h it has not &een u+on e'ery o))asion: is
mu)h more to &e de+ended u+on (ith re*ard to the former of those
t(o o&2e)ts than (ith re*ard to the latter- Their su+eriority
o'er the )ountry *entleman is not so mu)h in their 0no(led*e of
the +u&li) interest, as in their ha'in* a &etter 0no(led*e of
their o(n interest than he has of his- It is &y this su+erior
0no(led*e of their o(n interest that they ha'e frequently im+osed
u+on his *enerosity, and +ersuaded him to *i'e u+ &oth his o(n
interest and that of the +u&li), from a 'ery sim+le &ut honest
)on'i)tion that their interest, and not his, (as the interest of
the +u&li)- The interest of the dealers, ho(e'er, in any
+arti)ular &ran)h of trade or manufa)tures, is al(ays in some
res+e)ts different from, and e'en o++osite to, that of the
+u&li)- To (iden the mar0et and to narro( the )om+etition, is
al(ays the interest of the dealers- To (iden the mar0et may
frequently &e a*reea&le enou*h to the interest of the +u&li)/ &ut
to narro( the )om+etition must al(ays &e a*ainst it, and )an
ser'e only to ena&le the dealers, &y raisin* their +rofits a&o'e
(hat they naturally (ould &e, to le'y, for their o(n &enefit, an
a&surd ta1 u+on the rest of their fello(8)iti;ens- The +ro+osal
of any ne( la( or re*ulation of )ommer)e (hi)h )omes from this
order ou*ht al(ays to &e listened to (ith *reat +re)aution, and
ou*ht ne'er to &e ado+ted till after ha'in* &een lon* and
)arefully e1amined, not only (ith the most s)ru+ulous, &ut (ith
the most sus+i)ious attention- It )omes from an order of men
(hose interest is ne'er e1a)tly the same (ith that of the +u&li),
(ho ha'e *enerally an interest to de)ei'e and e'en to o++ress the
+u&li), and (ho a))ordin*ly ha'e, u+on many o))asions, &oth
de)ei'ed and o++ressed it-
TA.!$S R$"$RR$D TO IN C#AT$R 11, ART B
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s-
d-
1ECE 8 1E 8 8 8 8 1 16 8
1ECH 8 1E 8 8 1B H E 8 B
8 1B G
8 1H 8
1EEB 8 1E 8 8 8 8 1 16 8
1EB7 8 B G 8 8 8 8 1C 8
1EGB 8 E 8 8 8 8 8 6 8
1EGG 8 E 8 8 8 8 8 6 8
1EG6 8 16 8 8 8 8 E ? 8
1EG7 8 1B G 8 8 8 E 8 8
1EH7 1 G 8 8 8 8 B 1E 8
1EH? 1 8 8 8 17 8 E 11 8
8 1H 8
8 16 8
1E7C G 16 8 H 1E 8 16 16 8
6 ? 8
1E?6 8 E ? 8 F G 1 ? 8
8 16 8
888888888888888
Total !BH F B
888888888888888
A'era*e ri)e !E 1F 1
1DG
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s-
d-
1E?7 8 B G 8 8 8 8 1C 8
1E?? 8 8 ? 8 B 8 1DG 8 F 8
BDG
8 1 8
8 1 G
8 1 6
8 1 ?
8 E 8
8 B G
8 F G
1E?F 8 1E 8 8 1C 1 BDG 1 1C G
1DE
8 6 8
8 E 8
8 1C ?
1 8 8
1EFC 8 16 8 8 8 8 E ? 8
1EFG 8 16 8 8 8 8 E ? 8
1BCE 8 G 8 8 8 8 8 1E 8
1BCF 8 7 E 8 8 8 1 1 6
1B1H 1 8 8 8 8 8 B 8 8
1B16 1 8 8 1 1C 6 G 11 6
1 1C 8
1 1E 8
E 8 8
1B17 E G 8 1 1F 6 H 1? 6
8 1G 8
E 1B 8
G 8 8
8 6 ?
1BB6 8 E 8 8 8 8 8 6 8
1BB? 8 B G 8 8 8 8 1C 8
888888888888888
Total !EB G 11
1DG
888888888888888
A'era*e ri)e !1 1? ?
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s- d-
1BBF 8 F 8 8 8 8 1 7 8
1BGF 8 E 8 8 8 8 8 H E
1BHF 1 6 ? 8 8 8 B E E
1B61 8 E 8 8 8 8 8 G ?
1B6B 8 1H 8 8 8 8 1 1H 8
1B6F 1 8 8 1 E 8 E F G
1 G 8
1B7F 8 G 8 8 8 8 8 F G
1B?7 8 E 8 8 8 8 8 G ?
1BFC 8 1B G 8 1G H 1 1B 7
8 1G 8
8 16 8
1GC1 8 16 8 8 8 8 1 17 G
1GC7 8 G G BDG 8 B 1C 8 ? 11
8 B G
1G16 8 16 8 8 8 8 1 1E 8
888888888888888
Total !1H F G
888888888888888
A'era*e ri)e !1 H F
1DB
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s- d-
1GEB 8 ? 8 8 8 8 8 16 8
1GEH 8 G 8 8 8 8 8 ? 8
1GBG 1 6 ? 8 8 8 E 1B G
1GBH 8 H G 8 8 8 8 1C ?
1GBF 1 8 8 1 B G E 6 ?
1 6 ?
1GGC 1 G 8 8 8 8 E ? 8
1GGG 8 G G 8 G E 8 ? G
8 G 8
1GGH 8 G 6 8 8 8 8 F 8
1GG7 8 ? 8 8 8 8 8 16 8
1GG? 8 6 ? 8 8 8 8 1B G
1GGF 8 H 8 8 8 8 8 1C 8
1GHE 8 ? 8 8 8 8 8 16 8
888888888888888
Total !1E 1H G
888888888888888
A'era*e ri)e !1 1 B
1DE
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s- d-
1GHB 8 H G 8 8 8 8 1C ?
1GHH 8 1 E 8 8 8 8 E G
1GH7 8 7 ? 8 8 8 8 1H G
1GHF 8 H 8 8 8 8 8 1C 8
1G6C 8 ? 8 8 8 8 8 16 8
1G6B 8 E 8 8 1 1C 8 B ?
8 1 ?
1G6G 8 6 ? 8 8 8 8 1C 8
1G?6 1 G 8 8 8 8 1 17 8
1GF1 8 1G ? 8 8 8 1 E 8
1GFG 8 G 8 8 8 8 8 6 8
1GFH 8 B G 8 8 8 8 H 8
1GF7 1 8 8 8 8 8 1 11 8
88888888888888
Total !? F 8
88888888888888
A'era*e ri)e 8 1G 1
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s- d-
1GFF 8 G 8 8 8 8 8 6 8
1HCG 8 H ? 8 8 8 8 ? 6
1HE1 1 8 8 8 8 8 1 1C 8
1HH1 8 ? 8 8 8 8 8 E 8
1HHB 8 ? 8 8 8 8 8 ? 8
1HHG 8 ? 8 8 8 8 8 ? 8
1HHH 8 ? 8 8 8 8 8 ? 8
1HH6 8 ? 8 8 8 8 8 ? 8
1HH7 8 G 8 8 17 ? 1DE 8 17 ?
1DE
8 H 8
8 ? 8
E 1B G
1HH? 8 ? 8 8 8 8 8 ? 8
1HHF 8 ? 8 8 8 8 8 ? 8
1H6C 8 ? 8 8 8 8 8 ? 8
88888888888888
Total !6 C E
1DE
88888888888888
A'era*e ri)e 8 1C 8
HD1E
ri)e of the A'era*e of The a'era*e ri)e
Juarter of the different of ea)h 7ear in
7ears Wheat ri)es of 4oney of the
III ea)h 7ear the same 7ear +resent Times
! s- d- !- s- d- !- s- d-
1H61 8 ? 8 8 8 8 8 ? 8
1H6E 8 ? 8 8 8 8 8 ? 8
1H7G E 16 8 E 8 8 E 8 8
1 G 8
1H?7 B G 8 8 8 8 B G 8
1HFG E 16 8 8 8 8 E 16 8
1HFH E 1B 8 8 8 8 E 1B 8
1HF6 G 8 8 8 8 8 G 8 8
1HF7 H G 8 G 1E 8 G 1E 8
G 8 8
1HF? E 16 ? 8 8 8 E 16 ?
1HFF 1 1F E 8 8 8 1 1F E
16CC 1 17 ? 8 8 8 1 17 ?
16C1 1 1G 1C 8 8 8 1 1G 1C
888888888888888
Total !E? F G
888888888888888
A'era*e ri)e !E 7 H
1DB
ri)es of the Juarter of nine .ushels of the &est or hi*hest
+ri)ed Wheat at Windsor 4ar0et, on !ady8day and 4i)haelmas, from
1HFH to 176G, &oth in)lusi'e/ the ri)e of ea)h 7ear &ein* the
medium &et(een the hi*hest ri)es of those T(o 4ar0et Days-
7ears 7ears
!- s- d- !- s- d-
1HFH 8 E C C 16E1 8 1 1C G
1HF6 8 E ? C 16EE 8 E 1? ?
1HF7 8 B F 6 16EB 8 E 1E C
1HF? 8 E 16 ? 16EG 8 E ? C
1HFF 8 1 1F E 16EH 8 E 1E C
16CC 8 1 17 ? 16E6 8 E F G
16C1 8 1 1G 1C 16E7 8 1 16 C
16CE 8 1 F G 16E? 8 1 ? C
16CB 8 1 1H G 16EF 8 E E C
16CG 8 1 1C ? 16BC 8 E 1H ?
16CH 8 1 1H 1C 16B1 8 B ? C
16C6 8 1 1B C 16BE 8 E 1B G
16C7 8 1 16 ? 16BB 8 E 1? C
16C? 8 E 16 ? 16BG 8 E 16 C
16CF 8 E 1C C 16BH 8 E 16 C
161C 8 1 1H 1C 16B6 8 E 16 ?
1611 8 1 1? ? 88888888888888
161E 8 E E G 16: GC C C
161B 8 E ? ? 88888888888888
161G 8 E 1 ? 1DE !E 1C C
161H 8 1 1? ?
1616 8 E C G
1617 8 E ? ?
161? 8 E 6 ?
161F 8 1 1H G
16EC 8 1 1C G
88888888888888
E6: HG C 6 1DE
88888888888888
!E 1 6 FD1E

Wheat +er Wheat +er
7ears quarter 7ears quarter
!- s- d- !- s- d-
16B7 8 E 1B C .rou*ht o'er 7F 1G 1C
16B? 8 E 17 G 1671 8 E E C
16BF 8 E G 1C 167E 8 E 1 C
16GC 8 E G ? 167B 8 E 6 ?
16G1 8 E ? C 167G 8 B ? ?
16GE 8 C C CL 167H 8 B G ?
16GB 8 C C C 1676 8 1 1? C
16GG 8 C C C 1677 8 E E C
16GH 8 C C C 167? 8 E 1F C
16G6 8 E ? C 167F 8 B C C
16G7 8 B 1B ? 16?C 8 E H C
16G? 8 G H C 16?1 8 E 6 ?
16GF 8 G C C 16?E 8 E G C
16HC 8 B 16 ? 16?B 8 E C C
16H1 8 B 1B G 16?G 8 E G C
16HE 8 E F 6 16?H 8 E 6 ?
16HB 8 1 1H 6 16?6 8 1 1G C
16HG 8 1 6 C 16?7 8 1 H E
16HH 8 1 1B G 16?? 8 E 6 C
16H6 8 E B C 16?F 8 1 1C C
16H7 8 E 6 ? 16FC 8 1 1G ?
16H? 8 B H C 16F1 8 1 1G C
16HF 8 B 6 C 16FE 8 E 6 ?
166C 8 E 16 6 16FB 8 B 7 ?
1661 8 B 1C C 16FG 8 B G C
166E 8 B 1G C 16FH 8 E 1B C
166B 8 E 17 C 16F6 8 B 11 C
166G 8 E C 6 16F7 8 B C C
166H 8 E F G 16F? 8 B ? G
1666 8 1 16 C 16FF 8 B G C
1667 8 1 16 C 17CC 8 E C C
166? 8 E C C 888888888888888
166F 8 E G G 6C: 1HB 1 ?
167C 8 E 1 ? 888888888888888
88888888888888 !E 11 C 1DB
arry o'er !7F 1G 1C
LWantin* in the a))ount- The year 16G6 su++lied &y .isho+
"leet(ood-
Wheat +er Wheat +er
7ears quarter 7ears quarter
!- s- d- !- s- d-
17C1 8 1 17 ? .rou*ht o'er 6F ? ?
17CE 8 1 F 6 17BG 8 1 1? 1C
17CB 8 1 16 C 17BH 8 E B C
17CG 8 E 6 6 17B6 8 E C G
17CH 8 1 1C C 17B7 8 1 1? C
17C6 8 1 6 C 17B? 8 1 1H 6
17C7 8 1 ? 6 17BF 8 1 1? 6
17C? 8 E 1 6 17GC 8 E 1C ?
17CF 8 B 1? 6 17G1 8 E 6 ?
171C 8 B 1? C 17GE 8 1 1G C
1711 8 E 1G C 17GB 8 1 G 1C
171E 8 E 6 G 17GG 8 1 G 1C
171B 8 E 11 C 17GH 8 1 7 6
171G 8 E 1C G 17G6 8 1 1F C
171H 8 E B C 17G7 8 1 1G 1C
1716 8 E ? C 17G? 8 1 17 C
1717 8 E H ? 17GF 8 1 17 C
171? 8 1 1? 1C 17HC 8 1 1E 6
171F 8 1 1H C 17H1 8 1 1? 6
17EC 8 1 17 C 17HE 8 E 1 1C
17E1 8 1 17 6 17HB 8 E G ?
17EE 8 1 16 C 17HG 8 1 1G ?
17EB 8 1 1G ? 17HH 8 1 1B 1C
17EG 8 1 17 C 17H6 8 E H B
17EH 8 E ? 6 17H7 8 B C C
17E6 8 E 6 C 17H? 8 E 1C C
17E7 8 E E C 17HF 8 1 1F 1C
17E? 8 E 1G 6 176C 8 1 16 6
17EF 8 E 6 1C 1761 8 1 1C B
17BC 8 1 16 6 176E 8 1 1F C
17B1 8 1 1E 1C 176B 8 E C F
17BE 8 1 6 ? 176G 8 E 6 F
17BB 8 1 ? G 888888888888888
88888888888888 6G: 1EF 1B 6
Carry o'er !6F ? ? 888888888888888
!E C 6 FDBE
7ears 7ears
!- s- d- !- s- d-
17B1 8 1 1E 1C 17G1 8 E 6 ?
17BE 8 1 6 ? 17GE 8 1 1G C
17BB 8 1 ? G 17GB 8 1 G 1C
17BG 8 1 1? 1C 17GG 8 1 G 1C
17BH 8 E B C 17GH 8 1 7 6
17B6 8 E C G 17G6 8 1 1F C
17B7 8 1 1? C 17G7 8 1 1G 1C
17B? 8 1 1H 6 17G? 8 1 17 C
17BF 8 1 1? 6 17GF 8 1 17 C
17GC 8 E 1C ? 17HC 8 1 1E 6
88888888888888 88888888888888
1C: 1? 1E ? 1C: 16 1? E
88888888888888 888888888888888
!1 17 B 1DH !1 1B F GDH
.OO% TWO
O" T#$ NATUR$, ACCU4U!ATION, AND $4!O74$NT O" STOC%
INTRODUCTION
IN that rude state of so)iety in (hi)h there is no di'ision
of la&our, in (hi)h e1)han*es are seldom made, and in (hi)h e'ery
man +ro'ides e'erythin* for himself, it is not ne)essary that any
sto)0 should &e a))umulated or stored u+ &eforehand in order to
)arry on the &usiness of the so)iety- $'ery man endea'ours to
su++ly &y his o(n industry his o(n o))asional (ants as they
o))ur- When he is hun*ry, he *oes to the forest to hunt/ (hen his
)oat is (orn out, he )lothes himself (ith the s0in of the first
lar*e animal he 0ills3 and (hen his hut &e*ins to *o to ruin, he
re+airs it, as (ell as he )an, (ith the trees and the turf that
are nearest it-
.ut (hen the di'ision of la&our has on)e &een thorou*hly
introdu)ed, the +rodu)e of a man=s o(n la&our )an su++ly &ut a
'ery small +art of his o))asional (ants- The far *reater +art of
them are su++lied &y the +rodu)e of other men=s la&our, (hi)h he
+ur)hases (ith the +rodu)e, or, (hat is the same thin*, (ith the
+ri)e of the +rodu)e of his o(n- .ut this +ur)hase )annot &e made
till su)h time as the +rodu)e of his o(n la&our has not only &een
)om+leted, &ut sold- A sto)0 of *oods of different 0inds,
therefore, must &e stored u+ some(here suffi)ient to maintain
him, and to su++ly him (ith the materials and tools of his (or0
till su)h time, at least, as &oth these e'ents )an &e &rou*ht
a&out- A (ea'er )annot a++ly himself entirely to his +e)uliar
&usiness, unless there is &eforehand stored u+ some(here, either
in his o(n +ossession or in that of some other +erson, a sto)0
suffi)ient to maintain him, and to su++ly him (ith the materials
and tools of his (or0, till he has not only )om+leted, &ut sold
his (e&- This a))umulation must, e'idently, &e +re'ious to his
a++lyin* his industry for so lon* a time to su)h a +e)uliar
&usiness-
As the a))umulation of sto)0 must, in the nature of thin*s,
&e +re'ious to the di'ision of la&our, so la&our )an &e more and
more su&di'ided in +ro+ortion only as sto)0 is +re'iously more
and more a))umulated- The quantity of materials (hi)h the same
num&er of +eo+le )an (or0 u+, in)reases in a *reat +ro+ortion as
la&our )omes to &e more and more su&di'ided/ and as the
o+erations of ea)h (or0man are *radually redu)ed to a *reater
de*ree of sim+li)ity, a 'ariety of ne( ma)hines )ome to &e
in'ented for fa)ilitatin* and a&rid*in* those o+erations- As the
di'ision of la&our ad'an)es, therefore, in order to *i'e )onstant
em+loyment to an equal num&er of (or0men, an equal sto)0 of
+ro'isions, and a *reater sto)0 of materials and tools than (hat
(ould ha'e &een ne)essary in a ruder state of thin*s, must &e
a))umulated &eforehand- .ut the num&er of (or0men in e'ery &ran)h
of &usiness *enerally in)reases (ith the di'ision of la&our in
that &ran)h, or rather it is the in)rease of their num&er (hi)h
ena&les them to )lass and su&di'ide themsel'es in this manner-
As the a))umulation of sto)0 is +re'iously ne)essary for
)arryin* on this *reat im+ro'ement in the +rodu)ti'e +o(ers of
la&our, so that a))umulation naturally leads to this im+ro'ement-
The +erson (ho em+loys his sto)0 in maintainin* la&our,
ne)essarily (ishes to em+loy it in su)h a manner as to +rodu)e as
*reat a quantity of (or0 as +ossi&le- #e endea'ours, therefore,
&oth to ma0e amon* his (or0men the most +ro+er distri&ution of
em+loyment, and to furnish them (ith the &est ma)hines (hi)h he
)an either in'ent or afford to +ur)hase- #is a&ilities in &oth
these res+e)ts are *enerally in +ro+ortion to the e1tent of his
sto)0, or to the num&er of +eo+le (hom it )an em+loy- The
quantity of industry, therefore, not only in)reases in e'ery
)ountry (ith the in)rease of the sto)0 (hi)h em+loys it, &ut, in
)onsequen)e of that in)rease, the same quantity of industry
+rodu)es a mu)h *reater quantity of (or0-
Su)h are in *eneral the effe)ts of the in)rease of sto)0
u+on industry and its +rodu)ti'e +o(ers-
In the follo(in* &oo0 I ha'e endea'oured to e1+lain the
nature of sto)0, the effe)ts of its a))umulation into )a+itals of
different 0inds, and the effe)ts of the different em+loyments of
those )a+itals- This &oo0 is di'ided into fi'e )ha+ters- In the
first )ha+ter, I ha'e endea'oured to sho( (hat are the different
+arts or &ran)hes into (hi)h the sto)0, either of an indi'idual,
or of a *reat so)iety, naturally di'ides itself- In the se)ond, I
ha'e endea'oured to e1+lain the nature and o+eration of money
)onsidered as a +arti)ular &ran)h of the *eneral sto)0 of the
so)iety- The sto)0 (hi)h is a))umulated into a )a+ital, may
either &e em+loyed &y the +erson to (hom it &elon*s, or it may &e
lent to some other +erson- In the third and fourth )ha+ters, I
ha'e endea'oured to e1amine the manner in (hi)h it o+erates in
&oth these situations- The fifth and last )ha+ter treats of the
different effe)ts (hi)h the different em+loyments of )a+ital
immediately +rodu)e u+on the quantity &oth of national industry,
and of the annual +rodu)e of land and la&our-
C#AT$R I
Of the Di'ision of Sto)0
W#$N the sto)0 (hi)h a man +ossesses is no more than
suffi)ient to maintain him for a fe( days or a fe( (ee0s, he
seldom thin0s of deri'in* any re'enue from it- #e )onsumes it as
s+arin*ly as he )an, and endea'ours &y his la&our to a)quire
somethin* (hi)h may su++ly its +la)e &efore it &e )onsumed
alto*ether- #is re'enue is, in this )ase, deri'ed from his la&our
only- This is the state of the *reater +art of the la&ourin* +oor
in all )ountries-
.ut (hen he +ossesses sto)0 suffi)ient to maintain him for
months or years, he naturally endea'ours to deri'e a re'enue from
the *reater +art of it/ reser'in* only so mu)h for his immediate
)onsum+tion as may maintain him till this re'enue &e*ins to )ome
in- #is (hole sto)0, therefore, is distin*uished into t(o +arts-
That +art (hi)h, he e1+e)ts, is to afford him this re'enue, is
)alled his )a+ital- The other is that (hi)h su++lies his
immediate )onsum+tion/ and (hi)h )onsists either, first, in that
+ortion of his (hole sto)0 (hi)h (as ori*inally reser'ed for this
+ur+ose/ or, se)ondly, in his re'enue, from (hate'er sour)e
deri'ed, as it *radually )omes in/ or, thirdly, in su)h thin*s as
had &een +ur)hased &y either of these in former years, and (hi)h
are not yet entirely )onsumed/ su)h as a sto)0 of )lothes,
household furniture, and the li0e- In one, or other, or all of
these three arti)les, )onsists the sto)0 (hi)h men )ommonly
reser'e for their o(n immediate )onsum+tion-
There are t(o different (ays in (hi)h a )a+ital may &e
em+loyed so as to yield a re'enue or +rofit to its em+loyer-
"irst, it may &e em+loyed in raisin*, manufa)turin*, or
+ur)hasin* *oods, and sellin* them a*ain (ith a +rofit- The
)a+ital em+loyed in this manner yields no re'enue or +rofit to
its em+loyer, (hile it either remains in his +ossession, or
)ontinues in the same sha+e- The *oods of the mer)hant yield him
no re'enue or +rofit till he sells them for money, and the money
yields him as little till it is a*ain e1)han*ed for *oods- #is
)a+ital is )ontinually *oin* from him in one sha+e, and returnin*
to him in another, and it is only &y means of su)h )ir)ulation,
or su))essi'e e1)han*es, that it )an yield him any +rofit- Su)h
)a+itals, therefore, may 'ery +ro+erly &e )alled )ir)ulatin*
)a+itals-
Se)ondly, it may &e em+loyed in the im+ro'ement of land, in
the +ur)hase of useful ma)hines and instruments of trade, or in
su)hli0e thin*s as yield a re'enue or +rofit (ithout )han*in*
masters, or )ir)ulatin* any further- Su)h )a+itals, therefore,
may 'ery +ro+erly &e )alled fi1ed )a+itals-
Different o))u+ations require 'ery different +ro+ortions
&et(een the fi1ed and )ir)ulatin* )a+itals em+loyed in them-
The )a+ital of a mer)hant, for e1am+le, is alto*ether a
)ir)ulatin* )a+ital- #e has o))asion for no ma)hines or
instruments of trade, unless his sho+, or (arehouse, &e
)onsidered as su)h-
Some +art of the )a+ital of e'ery master artifi)er or
manufa)turer must &e fi1ed in the instruments of his trade- This
+art, ho(e'er, is 'ery small in some, and 'ery *reat in others- A
master tailor requires no other instruments of trade &ut a +ar)el
of needles- Those of the master shoema0er are a little, thou*h
&ut a 'ery little, more e1+ensi'e- Those of the (ea'er rise a
*ood deal a&o'e those of the shoema0er- The far *reater +art of
the )a+ital of all su)h master artifi)ers, ho(e'er, is
)ir)ulated, either in the (a*es of their (or0men, or in the +ri)e
of their materials, and re+aid (ith a +rofit &y the +ri)e of the
(or0-
In other (or0s a mu)h *reater fi1ed )a+ital is required- In
a *reat iron8(or0, for e1am+le, the furna)e for meltin* the ore,
the for*e, the slitt8mill, are instruments of trade (hi)h )annot
&e ere)ted (ithout a 'ery *reat e1+ense- In )oal8(or0s and mines
of e'ery 0ind, the ma)hinery ne)essary &oth for dra(in* out the
(ater and for other +ur+oses is frequently still more e1+ensi'e-
That +art of the )a+ital of the farmer (hi)h is em+loyed in
the instruments of a*ri)ulture is a fi1ed, that (hi)h is em+loyed
in the (a*es and maintenan)e of his la&ourin* ser'ants, is a
)ir)ulatin* )a+ital- #e ma0es a +rofit of the one &y 0ee+in* it
in his o(n +ossession, and of the other &y +artin* (ith it- The
+ri)e or 'alue of his la&ourin* )attle is a fi1ed )a+ital in the
same manner as that of the instruments of hus&andry- Their
maintenan)e is a )ir)ulatin* )a+ital in the same manner as that
of the la&ourin* ser'ants- The farmer ma0es his +rofit &y 0ee+in*
the la&ourin* )attle, and &y +artin* (ith their maintenan)e- .oth
the +ri)e and the maintenan)e of the )attle (hi)h are &rou*ht in
and fattened, not for la&our, &ut for sale, are a )ir)ulatin*
)a+ital- The farmer ma0es his +rofit &y +artin* (ith them- A
flo)0 of shee+ or a herd of )attle that, in a &reedin* )ountry,
is &ou*ht in, neither for la&our, nor for sale, &ut in order to
ma0e a +rofit &y their (ool, &y their mil0, and &y their
in)rease, is a fi1ed )a+ital- The +rofit is made &y 0ee+in* them-
Their maintenan)e is a )ir)ulatin* )a+ital- The +rofit is made &y
+artin* (ith it/ and it )omes &a)0 (ith &oth its o(n +rofit and
the +rofit u+on the (hole +ri)e of the )attle, in the +ri)e of
the (ool, the mil0, and the in)rease- The (hole 'alue of the
seed, too, is +ro+erly a fi1ed )a+ital- Thou*h it *oes &a)0(ards
and for(ards &et(een the *round and the *ranary, it ne'er )han*es
masters, and therefore does not +ro+erly )ir)ulate- The farmer
ma0es his +rofit, not &y its sale, &ut &y its in)rease-
The *eneral sto)0 of any )ountry or so)iety is the same (ith
that of all its inha&itants or mem&ers, and therefore naturally
di'ides itself into the same three +ortions, ea)h of (hi)h has a
distin)t fun)tion or offi)e-
The first is that +ortion (hi)h is reser'ed for immediate
)onsum+tion, and of (hi)h the )hara)teristi) is, that it affords
no re'enue or +rofit- It )onsists in the sto)0 of food, )lothes,
household furniture, et)-, (hi)h ha'e &een +ur)hased &y their
+ro+er )onsumers, &ut (hi)h are not yet entirely )onsumed- The
(hole sto)0 of mere d(ellin*8houses too, su&sistin* at any one
time in the )ountry, ma0e a +art of this first +ortion- The sto)0
that is laid out in a house, if it is to &e the d(ellin*house of
the +ro+rietor, )eases from that moment to ser'e in the fun)tion
of a )a+ital, or to afford any re'enue to its o(ner- A
d(ellin*house, as su)h, )ontri&utes nothin* to the re'enue of its
inha&itant/ and thou*h it is, no dou&t, e1tremely useful to him,
it is as his )lothes and household furniture are useful to him,
(hi)h, ho(e'er, ma0es a +art of his e1+ense, and not of his
re'enue- If it is to &e let to a tenant for rent, as the house
itself )an +rodu)e nothin*, the tenant must al(ays +ay the rent
out of some other re'enue (hi)h he deri'es either from la&our, or
sto)0, or land- Thou*h a house, therefore, may yield a re'enue to
its +ro+rietor, and there&y ser'e in the fun)tion of a )a+ital to
him, it )annot yield any to the +u&li), nor ser'e in the fun)tion
of a )a+ital to it, and the re'enue of the (hole &ody of the
+eo+le )an ne'er &e in the smallest de*ree in)reased &y it-
Clothes, and household furniture, in the same manner, sometimes
yield a re'enue, and there&y ser'e in the fun)tion of a )a+ital
to +arti)ular +ersons- In )ountries (here masquerades are )ommon,
it is a trade to let out masquerade dresses for a ni*ht-
U+holsterers frequently let furniture &y the month or &y the
year- Underta0ers let the furniture of funerals &y the day and &y
the (ee0- 4any +eo+le let furnished houses, and *et a rent, not
only for the use of the house, &ut for that of the furniture- The
re'enue, ho(e'er, (hi)h is deri'ed from su)h thin*s must al(ays
&e ultimately dra(n from some other sour)e of re'enue- Of all
+arts of the sto)0, either of an indi'idual, or of a so)iety,
reser'ed for immediate )onsum+tion, (hat is laid out in houses is
most slo(ly )onsumed- A sto)0 of )lothes may last se'eral years3
a sto)0 of furniture half a )entury or a )entury3 &ut a sto)0 of
houses, (ell &uilt and +ro+erly ta0en )are of, may last many
)enturies- Thou*h the +eriod of their total )onsum+tion, ho(e'er,
is more distant, they are still as really a sto)0 reser'ed for
immediate )onsum+tion as either )lothes or household furniture-
The se)ond of the three +ortions into (hi)h the *eneral
sto)0 of the so)iety di'ides itself, is the fi1ed )a+ital, of
(hi)h the )hara)teristi) is, that it affords a re'enue or +rofit
(ithout )ir)ulatin* or )han*in* masters- It )onsists )hiefly of
the four follo(in* arti)les3
"irst, of all useful ma)hines and instruments of trade (hi)h
fa)ilitate and a&rid*e la&our3
Se)ondly, of all those +rofita&le &uildin*s (hi)h are the
means of +ro)urin* a re'enue, not only to their +ro+rietor (ho
lets them for a rent, &ut to the +erson (ho +ossesses them and
+ays that rent for them/ su)h as sho+s, (arehouses, (or0houses,
farmhouses, (ith all their ne)essary &uildin*s/ sta&les,
*ranaries, et)- These are 'ery different from mere d(ellin*
houses- They are a sort of instruments of trade, and may &e
)onsidered in the same li*ht3
Thirdly, of the im+ro'ements of land, of (hat has &een
+rofita&ly laid out in )learin*, drainin*, en)losin*, manurin*,
and redu)in* it into the )ondition most +ro+er for tilla*e and
)ulture- An im+ro'ed farm may 'ery 2ustly &e re*arded in the same
li*ht as those useful ma)hines (hi)h fa)ilitate and a&rid*e
la&our, and &y means of (hi)h an equal )ir)ulatin* )a+ital )an
afford a mu)h *reater re'enue to its em+loyer- An im+ro'ed farm
is equally ad'anta*eous and more dura&le than any of those
ma)hines, frequently requirin* no other re+airs than the most
+rofita&le a++li)ation of the farmer=s )a+ital em+loyed in
)ulti'atin* it3
"ourthly, of the a)quired and useful a&ilities of all the
inha&itants or mem&ers of the so)iety- The a)quisition of su)h
talents, &y the maintenan)e of the a)quirer durin* his edu)ation,
study, or a++renti)eshi+, al(ays )osts a real e1+ense, (hi)h is a
)a+ital fi1ed and reali;ed, as it (ere, in his +erson- Those
talents, as they ma0e a +art of his fortune, so do they li0e(ise
of that of the so)iety to (hi)h he &elon*s- The im+ro'ed
de1terity of a (or0man may &e )onsidered in the same li*ht as a
ma)hine or instrument of trade (hi)h fa)ilitates and a&rid*es
la&our, and (hi)h, thou*h it )osts a )ertain e1+ense, re+ays that
e1+ense (ith a +rofit-
The third and last of the three +ortions into (hi)h the
*eneral sto)0 of the so)iety naturally di'ides itself, is the
)ir)ulatin* )a+ital/ of (hi)h the )hara)teristi) is, that it
affords a re'enue only &y )ir)ulatin* or )han*in* masters- It is
)om+osed li0e(ise of four +arts3
"irst, of the money &y means of (hi)h all the other three
are )ir)ulated and distri&uted to their +ro+er )onsumers3
Se)ondly, of the sto)0 of +ro'isions (hi)h are in the
+ossession of the &ut)her, the *ra;ier, the farmer, the
)orn8mer)hant, the &re(er, et)-, and from the sale of (hi)h they
e1+e)t to deri'e a +rofit3
Thirdly, of the materials, (hether alto*ether rude, or more
or less manufa)tured, of )lothes, furniture, and &uildin*, (hi)h
are not yet made u+ into any of those three sha+es, &ut (hi)h
remain in the hands of the *ro(ers, the manufa)turers, the
mer)ers and dra+ers, the tim&er mer)hants, the )ar+enters and
2oiners, the &ri)0ma0ers, et)-
"ourthly, and lastly, of the (or0 (hi)h is made u+ and
)om+leted, &ut (hi)h is still in the hands of the mer)hant or
manufa)turer, and not yet dis+osed of or distri&uted to the
+ro+er )onsumers/ su)h as the finished (or0 (hi)h (e frequently
find ready8made in the sho+s of the smith, the )a&inet8ma0er, the
*oldsmith, the 2e(eller, the )hina8mer)hant, et)- The )ir)ulatin*
)a+ital )onsists in this manner, of the +ro'isions, materials,
and finished (or0 of all 0inds that are in the hands of their
res+e)ti'e dealers, and of the money that is ne)essary for
)ir)ulatin* and distri&utin* them to those (ho are finally to use
or to )onsume them-
Of these four +arts, three8 +ro'isions, materials, and
finished (or08 are, either annually, or in a lon*er or shorter
+eriod, re*ularly (ithdra(n from it, and +la)ed either in the
fi1ed )a+ital or in the sto)0 reser'ed for immediate )onsum+tion-
$'ery fi1ed )a+ital is &oth ori*inally deri'ed from, and
requires to &e )ontinually su++orted &y a )ir)ulatin* )a+ital-
All useful ma)hines and instruments of trade are ori*inally
deri'ed from a )ir)ulatin* )a+ital, (hi)h furnishes the materials
of (hi)h they are made, and the maintenan)e of the (or0men (ho
ma0e them- They require, too, a )a+ital of the same 0ind to 0ee+
them in )onstant re+air-
No fi1ed )a+ital )an yield any re'enue &ut &y means of a
)ir)ulatin* )a+ital- The most useful ma)hines and instruments of
trade (ill +rodu)e nothin* (ithout the )ir)ulatin* )a+ital (hi)h
affords the materials they are em+loyed u+on, and the maintenan)e
of the (or0men (ho em+loy them- !and, ho(e'er im+ro'ed, (ill
yield no re'enue (ithout a )ir)ulatin* )a+ital, (hi)h maintains
the la&ourers (ho )ulti'ate and )olle)t its +rodu)e-
To maintain and au*ment the sto)0 (hi)h may &e reser'ed for
immediate )onsum+tion is the sole end and +ur+ose &oth of the
fi1ed and )ir)ulatin* )a+itals- It is this sto)0 (hi)h feeds,
)lothes, and lod*es the +eo+le- Their ri)hes or +o'erty de+ends
u+on the a&undant or s+arin* su++lies (hi)h those t(o )a+itals
)an afford to the sto)0 reser'ed for immediate )onsum+tion-
So *reat a +art of the )ir)ulatin* )a+ital &ein* )ontinually
(ithdra(n from it, in order to &e +la)ed in the other t(o
&ran)hes of the *eneral sto)0 of the so)iety/ it must in its turn
require )ontinual su++lies, (ithout (hi)h it (ould soon )ease to
e1ist- These su++lies are +rin)i+ally dra(n from three sour)es,
the +rodu)e of land, of mines, and of fisheries- These afford
)ontinual su++lies of +ro'isions and materials, of (hi)h +art is
after(ards (rou*ht u+ into finished (or0, and &y (hi)h are
re+la)ed the +ro'isions, materials, and finished (or0 )ontinually
(ithdra(n from the )ir)ulatin* )a+ital- "rom mines, too, is dra(n
(hat is ne)essary for maintainin* and au*mentin* that +art of it
(hi)h )onsists in money- "or thou*h, in the ordinary )ourse of
&usiness, this +art is not, li0e the other three, ne)essarily
(ithdra(n from it, in order to &e +la)ed in the other t(o
&ran)hes of the *eneral sto)0 of the so)iety, it must, ho(e'er,
li0e all other thin*s, &e (asted and (orn out at last, and
sometimes, too, &e either lost or sent a&road, and must,
therefore, require )ontinual, thou*h, no dou&t, mu)h smaller
su++lies-
!and, mines, and fisheries, require all &oth a fi1ed and a
)ir)ulatin* )a+ital to )ulti'ate them/ and their +rodu)e re+la)es
(ith a +rofit, not only those )a+itals, &ut all the others in the
so)iety- Thus the farmer annually re+la)es to the manufa)turer
the +ro'isions (hi)h he had )onsumed and the materials (hi)h &e
had (rou*ht u+ the year &efore/ and the manufa)turer re+la)es to
the farmer the finished (or0 (hi)h he had (asted and (orn out in
the same time- This is the real e1)han*e that is annually made
&et(een those t(o orders of +eo+le, thou*h it seldom ha++ens that
the rude +rodu)e of the one and the manufa)tured +rodu)e of the
other, are dire)tly &artered for one another/ &e)ause it seldom
ha++ens that the farmer sells his )orn and his )attle, his fla1
and his (ool, to the 'ery same +erson of (hom he )hooses to
+ur)hase the )lothes, furniture, and instruments of trade (hi)h
he (ants- #e sells, therefore, his rude +rodu)e for money, (ith
(hi)h he )an +ur)hase, (here'er it is to &e had, the manufa)tured
+rodu)e he has o))asion for- !and e'en re+la)es, in +art at
least, the )a+itals (ith (hi)h fisheries and mines are
)ulti'ated- It is the +rodu)e of land (hi)h dra(s the fish from
the (aters/ and it is the +rodu)e of the surfa)e of the earth
(hi)h e1tra)ts the minerals from its &o(els-
The +rodu)e of land, mines, and fisheries, (hen their
natural fertility is equal, is in +ro+ortion to the e1tent and
+ro+er a++li)ation of the )a+itals em+loyed a&out them- When the
)a+itals are equal and equally (ell a++lied, it is in +ro+ortion
to their natural fertility-
In all )ountries (here there is tolera&le se)urity, e'ery
man of )ommon understandin* (ill endea'our to em+loy (hate'er
sto)0 he )an )ommand in +ro)urin* either +resent en2oyment or
future +rofit- If it is em+loyed in +ro)urin* +resent en2oyment,
it is a sto)0 reser'ed for immediate )onsum+tion- If it is
em+loyed in +ro)urin* future +rofit, it must +ro)ure this +rofit
either stayin* (ith him, or &y *oin* from him- In the one )ase it
is fi1ed, in the other it is a )ir)ulatin* )a+ital- A man must &e
+erfe)tly )ra;y (ho, (here there is tolera&le se)urity, does not
em+loy all the sto)0 (hi)h he )ommands, (hether &e his o(n or
&orro(ed of other +eo+le, in some one or other of those three
(ays-
In those unfortunate )ountries, indeed, (here men are
)ontinually afraid of the 'iolen)e of their su+eriors, they
frequently &ury and )on)eal a *reat +art of their sto)0, in order
to ha'e it al(ays at hand to )arry (ith them to some +la)e of
safety, in )ase of their &ein* threatened (ith any of those
disasters to (hi)h they )onsider themsel'es as at all times
e1+osed- This is said to &e a )ommon +ra)ti)e in Tur0ey, in
Indostan, and, I &elie'e, in most other *o'ernments of Asia- It
seems to ha'e &een a )ommon +ra)ti)e amon* our an)estors durin*
the 'iolen)e of the feudal *o'ernment- Treasure8tro'e (as in
those times )onsidered as no )ontem+ti&le +art of the re'enue of
the *reatest so'erei*ns in $uro+e- It )onsisted in su)h treasure
as (as found )on)ealed in the earth, and to (hi)h no +arti)ular
+erson )ould +ro'e any ri*ht- This (as re*arded in those times as
so im+ortant an o&2e)t, that it (as al(ays )onsidered as
&elon*in* to the so'erei*n, and neither to the finder nor to the
+ro+rietor of the land, unless the ri*ht to it had &een )on'eyed
to the latter &y an e1+ress )lause in his )harter- It (as +ut
u+on the same footin* (ith *old and sil'er mines, (hi)h, (ithout
a s+e)ial )lause in the )harter, (ere ne'er su++osed to &e
)om+rehended in the *eneral *rant of the lands, thou*h mines of
lead, )o++er, tin, and )oal (ere as thin*s of smaller
)onsequen)e-
C#AT$R II
Of 4oney )onsidered as a +arti)ular .ran)h of the *eneral Sto)0
of the So)iety, or of the $1+ense of maintainin* the National
Ca+ital
IT has &een sho(n in the first &oo0, that the +ri)e of the
*reater +art of )ommodities resol'es itself into three +arts, of
(hi)h one +ays the (a*es of the la&our, another the +rofits of
the sto)0, and a third the rent of the land (hi)h had &een
em+loyed in +rodu)in* and &rin*in* them to mar0et3 that there
are, indeed, some )ommodities of (hi)h the +ri)e is made u+ of
t(o of those +arts only, the (a*es of la&our, and the +rofits of
sto)03 and a 'ery fe( in (hi)h it )onsists alto*ether in one, the
(a*es of la&our3 &ut that the +ri)e of e'ery )ommodity
ne)essarily resol'es itself into some one, or other, or all of
these three +arts/ e'ery +art of it (hi)h *oes neither to rent
nor to (a*es, &ein* ne)essarily +rofit to some&ody-
Sin)e this is the )ase, it has &een o&ser'ed, (ith re*ard to
e'ery +arti)ular )ommodity, ta0en se+arately, it must &e so (ith
re*ard to all the )ommodities (hi)h )om+ose the (hole annual
+rodu)e of the land and la&our of e'ery )ountry, ta0en )om+le1ly-
The (hole +ri)e or e1)han*ea&le 'alue of that annual +rodu)e must
resol'e itself into the same three +arts, and &e +ar)elled out
amon* the different inha&itants of the )ountry, either as the
(a*es of their la&our, the +rofits of their sto)0, or the rent of
their land-
.ut thou*h the (hole 'alue of the annual +rodu)e of the land
and la&our of e'ery )ountry is thus di'ided amon* and )onstitutes
a re'enue to its different inha&itants, yet as in the rent of a
+ri'ate estate (e distin*uish &et(een the *ross rent and the net
rent, so may (e li0e(ise in the re'enue of all the inha&itants of
a *reat )ountry-
The *ross rent of a +ri'ate estate )om+rehends (hate'er is
+aid &y the farmer/ the net rent, (hat remains free to the
landlord, after dedu)tin* the e1+ense of mana*ement, of re+airs,
and all other ne)essary )har*es/ or (hat, (ithout hurtin* his
estate, he )an afford to +la)e in his sto)0 reser'ed for
immediate )onsum+tion, or to s+end u+on his ta&le, equi+a*e, the
ornaments of his house and furniture, his +ri'ate en2oyments and
amusements- #is real (ealth is in +ro+ortion, not to his *ross,
&ut to his net rent-
The *ross re'enue of all the inha&itants of a *reat )ountry
)om+rehends the (hole annual +rodu)e of their land and la&our/
the net re'enue, (hat remains free to them after dedu)tin* the
e1+ense of maintainin*8 first, their fi1ed, and, se)ondly, their
)ir)ulatin* )a+ital/ or (hat, (ithout en)roa)hin* u+on their
)a+ital, they )an +la)e in their sto)0 reser'ed for immediate
)onsum+tion, or s+end u+on their su&sisten)e, )on'enien)ies, and
amusements- Their real (ealth, too, is in +ro+ortion, not to
their *ross, &ut to their net re'enue-
The (hole e1+ense of maintainin* the fi1ed )a+ital must
e'idently &e e1)luded from the net re'enue of the so)iety-
Neither the materials ne)essary for su++ortin* their useful
ma)hines and instruments of trade, their +rofita&le &uildin*s,
et)-, nor the +rodu)e of the la&our ne)essary for fashionin*
those materials into the +ro+er form, )an e'er ma0e any +art of
it- The +ri)e of that la&our may indeed ma0e a +art of it/ as the
(or0men so em+loyed may +la)e the (hole 'alue of their (a*es in
their sto)0 reser'ed for immediate )onsum+tion- .ut in other
sorts of la&our, &oth the +ri)e and the +rodu)e *o to this sto)0,
the +ri)e to that of the (or0men, the +rodu)e to that of other
+eo+le, (hose su&sisten)e, )on'enien)es, and amusements, are
au*mented &y the la&our of those (or0men-
The intention of the fi1ed )a+ital is to in)rease the
+rodu)ti'e +o(ers of la&our, or to ena&le the same num&er of
la&ourers to +erform a mu)h *reater quantity of (or0- In a farm
(here all the ne)essary &uildin*s, fen)es, drains,
)ommuni)ations, et)-, are in the most +erfe)t *ood order, the
same num&er of la&ourers and la&ourin* )attle (ill raise a mu)h
*reater +rodu)e than in one of equal e1tent and equally *ood
*round, &ut not furnished (ith equal )on'enien)ies- In
manufa)tures the same num&er of hands, assisted (ith the &est
ma)hinery, (ill (or0 u+ a mu)h *reater quantity of *oods than
(ith more im+erfe)t instruments of trade- The e1+ense (hi)h is
+ro+erly laid out u+on a fi1ed )a+ital of any 0ind, is al(ays
re+aid (ith *reat +rofit, and in)reases the annual +rodu)e &y a
mu)h *reater 'alue than that of the su++ort (hi)h su)h
im+ro'ements require- This su++ort, ho(e'er, still requires a
)ertain +ortion of that +rodu)e- A )ertain quantity of materials,
and the la&our of a )ertain num&er of (or0men, &oth of (hi)h
mi*ht ha'e &een immediately em+loyed to au*ment the food,
)lothin* and lod*in*, the su&sisten)e and )on'enien)ies of the
so)iety, are thus di'erted to another em+loyment, hi*hly
ad'anta*eous indeed, &ut still different from this one- It is
u+on this a))ount that all su)h im+ro'ements in me)hani)s, as
ena&le the same num&er of (or0men to +erform an equal quantity of
(or0, (ith )hea+er and sim+ler ma)hinery than had &een usual
&efore, are al(ays re*arded as ad'anta*eous to e'ery so)iety- A
)ertain quantity of materials, and the la&our of a )ertain num&er
of (or0men, (hi)h had &efore &een em+loyed in su++ortin* a more
)om+le1 and e1+ensi'e ma)hinery, )an after(ards &e a++lied to
au*ment the quantity of (or0 (hi)h that or any other ma)hinery is
useful only for +erformin*- The underta0er of some *reat
manufa)tory (ho em+loys a thousand a year in the maintenan)e of
his ma)hinery, if he )an redu)e this e1+ense to fi'e hundred (ill
naturally em+loy the other fi'e hundred in +ur)hasin* an
additional quantity of materials to &e (rou*ht u+ &y an
additional num&er of (or0men- The quantity of that (or0,
therefore, (hi)h his ma)hinery (as useful only for +erformin*,
(ill naturally &e au*mented, and (ith it all the ad'anta*e and
)on'enien)y (hi)h the so)iety )an deri'e from that (or0-
The e1+ense of maintainin* the fi1ed )a+ital in a *reat
)ountry may 'ery +ro+erly &e )om+ared to that of re+airs in a
+ri'ate estate- The e1+ense of re+airs may frequently &e
ne)essary for su++ortin* the +rodu)e of the estate, and
)onsequently &oth the *ross and the net rent of the landlord-
When &y a more +ro+er dire)tion, ho(e'er, it )an &e diminished
(ithout o))asionin* any diminution of +rodu)e, the *ross rent
remains at least the same as &efore, and the net rent is
ne)essarily au*mented-
.ut thou*h the (hole e1+ense of maintainin* the fi1ed
)a+ital is thus ne)essarily e1)luded from the net re'enue of the
so)iety, it is not the same )ase (ith that of maintainin* the
)ir)ulatin* )a+ital- Of the four +arts of (hi)h this latter
)a+ital is )om+osed8 money, +ro'isions, materials, and finished
(or08 the three last, it has already &een o&ser'ed, are re*ularly
(ithdra(n from it, and +la)ed either in the fi1ed )a+ital of the
so)iety, or in their sto)0 reser'ed for immediate )onsum+tion-
Whate'er +ortion of those )onsuma&le *oods is em+loyed in
maintainin* the former, *oes all to the latter, and ma0es a +art
of the net re'enue of the so)iety- The maintenan)e of those three
+arts of the )ir)ulatin* )a+ital, therefore, (ithdra(s no +ortion
of the annual +rodu)e from the net re'enue of the so)iety,
&esides (hat is ne)essary for maintainin* the fi1ed )a+ital-
The )ir)ulatin* )a+ital of a so)iety is in this res+e)t
different from that of an indi'idual- That of an indi'idual is
totally e1)luded from ma0in* any +art of his net re'enue, (hi)h
must )onsist alto*ether in his +rofits- .ut thou*h the
)ir)ulatin* )a+ital of e'ery indi'idual ma0es a +art of that of
the so)iety to (hi)h he &elon*s, it is not u+on that a))ount
totally e1)luded from ma0in* a +art li0e(ise of their net
re'enue- Thou*h the (hole *oods in a mer)hant=s sho+ must &y no
means &e +la)ed in his o(n sto)0 reser'ed for immediate
)onsum+tion, they may in that of other +eo+le, (ho, from a
re'enue deri'ed from other funds, may re*ularly re+la)e their
'alue to him, to*ether (ith its +rofits, (ithout o))asionin* any
diminution either of his )a+ital or of theirs-
4oney, therefore, is the only +art of the )ir)ulatin*
)a+ital of a so)iety, of (hi)h the maintenan)e )an o))asion any
diminution in their net re'enue-
The fi1ed )a+ital, and that +art of the )ir)ulatin* )a+ital
(hi)h )onsists in money, so far as they affe)t the re'enue of the
so)iety, &ear a 'ery *reat resem&lan)e to one another-
"irst, as those ma)hines and instruments of trade, et)-,
require a )ertain e1+ense, first to ere)t them, and after(ards to
su++ort them, &oth (hi)h e1+enses, thou*h they ma0e a +art of the
*ross, are dedu)tions from the net re'enue of the so)iety/ so the
sto)0 of money (hi)h )ir)ulates in any )ountry must require a
)ertain e1+ense, first to )olle)t it, and after(ards to su++ort
it, &oth (hi)h e1+enses, thou*h they ma0e a +art of the *ross,
are, in the same manner, dedu)tions from the net re'enue of the
so)iety- A )ertain quantity of 'ery 'alua&le materials, *old and
sil'er, and of 'ery )urious la&our, instead of au*mentin* the
sto)0 reser'ed for immediate )onsum+tion, the su&sisten)e,
)on'enien)ies, and amusements of indi'iduals, is em+loyed in
su++ortin* that *reat &ut e1+ensi'e instrument of )ommer)e, &y
means of (hi)h e'ery indi'idual in the so)iety has his
su&sisten)e, )on'enien)ies, and amusements re*ularly distri&uted
to him in their +ro+er +ro+ortions-
Se)ondly, as the ma)hines and instruments of a trade, et)-,
(hi)h )om+ose the fi1ed )a+ital either of an indi'idual or of a
so)iety, ma0e no +art either of the *ross or of the net re'enue
of either/ so money, &y means of (hi)h the (hole re'enue of the
so)iety is re*ularly distri&uted amon* all its different mem&ers,
ma0es itself no +art of that re'enue- The *reat (heel of
)ir)ulation is alto*ether different from the *oods (hi)h are
)ir)ulated &y means of it- The re'enue of the so)iety )onsists
alto*ether in those *oods, and not in the (heel (hi)h )ir)ulates
them- In )om+utin* either the *ross or the net re'enue of any
so)iety, (e must al(ays, from their (hole annual )ir)ulation of
money and *oods, dedu)t the (hole 'alue of the money, of (hi)h
not a sin*le farthin* )an e'er ma0e any +art of either-
It is the am&i*uity of lan*ua*e only (hi)h )an ma0e this
+ro+osition a++ear either dou&tful or +arado1i)al- When +ro+erly
e1+lained and understood, it is almost self8e'ident-
When (e tal0 of any +arti)ular sum of money, (e sometimes
mean nothin* &ut the metal +ie)es of (hi)h it is )om+osed/ and
sometimes (e in)lude in our meanin* some o&s)ure referen)e to the
*oods (hi)h )an &e had in e1)han*e for it, or to the +o(er of
+ur)hasin* (hi)h the +ossession of it )on'eys- Thus (hen (e say
that the )ir)ulatin* money of $n*land has &een )om+uted at
ei*hteen millions, (e mean only to e1+ress the amount of the
metal +ie)es, (hi)h some (riters ha'e )om+uted, or rather ha'e
su++osed to )ir)ulate in that )ountry- .ut (hen (e say that a man
is (orth fifty or a hundred +ounds a year, (e mean )ommonly to
e1+ress not only the amount of the metal +ie)es (hi)h are
annually +aid to him, &ut the 'alue of the *oods (hi)h he )an
annually +ur)hase or )onsume- We mean )ommonly to as)ertain (hat
is or ou*ht to &e his (ay of li'in*, or the quantity and quality
of the ne)essaries and )on'enien)ies of life in (hi)h he )an (ith
+ro+riety indul*e himself-
When, &y any +arti)ular sum of money, (e mean not only to
e1+ress the amount of the metal +ie)es of (hi)h it is )om+osed,
&ut to in)lude in its si*nifi)ation some o&s)ure referen)e to the
*oods (hi)h )an &e had in e1)han*e for them, the (ealth or
re'enue (hi)h it in this )ase denotes, is equal only to one of
the t(o 'alues (hi)h are thus intimated some(hat am&i*uously &y
the same (ord, and to the latter more +ro+erly than to the
former, to the money=s (orth more +ro+erly than to the money-
Thus if a *uinea &e the (ee0ly +ension of a +arti)ular
+erson, he )an in the )ourse of the (ee0 +ur)hase (ith it a
)ertain quantity of su&sisten)e, )on'enien)ies, and amusements-
In +ro+ortion as this quantity is *reat or small, so are his real
ri)hes, his real (ee0ly re'enue- #is (ee0ly re'enue is )ertainly
not equal &oth to the *uinea, and to (hat )an &e +ur)hased (ith
it, &ut only to one or other of those t(o equal 'alues/ and to
the latter more +ro+erly than to the former, to the *uinea=s
(orth rather than to the *uinea-
If the +ension of su)h a +erson (as +aid to him, not in
*old, &ut in a (ee0ly &ill for a *uinea, his re'enue surely (ould
not so +ro+erly )onsist in the +ie)e of +a+er, as in (hat he
)ould *et for it- A *uinea may &e )onsidered as a &ill for a
)ertain quantity of ne)essaries and )on'enien)ies u+on all the
tradesmen in the nei*h&ourhood- The re'enue of the +erson to (hom
it is +aid, does not so +ro+erly )onsist in the +ie)e of *old, as
in (hat he )an *et for it, or in (hat he )an e1)han*e it for- If
it )ould &e e1)han*ed for nothin*, it (ould, li0e a &ill u+on a
&an0ru+t, &e of no more 'alue than the most useless +ie)e of
+a+er-
Thou*h the (ee0ly or yearly re'enue of all the different
inha&itants of any )ountry, in the same manner, may &e, and in
reality frequently is +aid to them in money, their real ri)hes,
ho(e'er, the real (ee0ly or yearly re'enue of all of them ta0en
to*ether, must al(ays &e *reat or small in +ro+ortion to the
quantity of )onsuma&le *oods (hi)h they )an all of them +ur)hase
(ith this money- The (hole re'enue of all of them ta0en to*ether
is e'idently not equal to &oth the money and the )onsuma&le
*oods/ &ut only to one or other of those t(o 'alues, and to the
latter more +ro+erly than to the former-
Thou*h (e frequently, therefore, e1+ress a +erson=s re'enue
&y the metal +ie)es (hi)h are annually +aid to him, it is &e)ause
the amount of those +ie)es re*ulates the e1tent of his +o(er of
+ur)hasin*, or the 'alue of the *oods (hi)h he )an annually
afford to )onsume- We still )onsider his re'enue as )onsistin* in
this +o(er of +ur)hasin* or )onsumin*, and not in the +ie)es
(hi)h )on'ey it-
.ut if this is suffi)iently e'ident e'en (ith re*ard to an
indi'idual, it is still more so (ith re*ard to a so)iety- The
amount of the metal +ie)es (hi)h are annually +aid to an
indi'idual, is often +re)isely equal to his re'enue, and is u+on
that a))ount the shortest and &est e1+ression of its 'alue- .ut
the amount of the metal +ie)es (hi)h )ir)ulate in a so)iety )an
ne'er &e equal to the re'enue of all its mem&ers- As the same
*uinea (hi)h +ays the (ee0ly +ension of one man to8day, may +ay
that of another to8morro(, and that of a third the day
thereafter, the amount of the metal +ie)es (hi)h annually
)ir)ulate in any )ountry must al(ays &e of mu)h less 'alue than
the (hole money +ensions annually +aid (ith them- .ut the +o(er
of +ur)hasin*, or the *oods (hi)h )an su))essi'ely &e &ou*ht (ith
the (hole of those money +ensions as they are su))essi'ely +aid,
must al(ays &e +re)isely of the same 'alue (ith those +ensions/
as must li0e(ise &e the re'enue of the different +ersons to (hom
they are +aid- That re'enue, therefore, )annot )onsist in those
metal +ie)es, of (hi)h the amount is so mu)h inferior to its
'alue, &ut in the +o(er of +ur)hasin*, in the *oods (hi)h )an
su))essi'ely &e &ou*ht (ith them as they )ir)ulate from hand to
hand-
4oney, therefore, the *reat (heel of )ir)ulation, the *reat
instrument of )ommer)e, li0e all other instruments of trade,
thou*h it ma0es a +art and a 'ery 'alua&le +art of the )a+ital,
ma0es no +art of the re'enue of the so)iety to (hi)h it &elon*s/
and thou*h the metal +ie)es of (hi)h it is )om+osed, in the
)ourse of their annual )ir)ulation, distri&ute to e'ery man the
re'enue (hi)h +ro+erly &elon*s to him, they ma0e themsel'es no
+art of that re'enue-
Thirdly, and lastly, the ma)hines and instruments of trade,
et)-, (hi)h )om+ose the fi1ed )a+ital, &ear this further
resem&lan)e to that +art of the )ir)ulatin* )a+ital (hi)h
)onsists in money/ that as e'ery sa'in* in the e1+ense of
ere)tin* and su++ortin* those ma)hines, (hi)h does not diminish
the +rodu)ti'e +o(ers of la&our, is an im+ro'ement of the net
re'enue of the so)iety, so e'ery sa'in* in the e1+ense of
)olle)tin* and su++ortin* that +art of the )ir)ulatin* )a+ital
(hi)h )onsists in money, is an im+ro'ement of e1a)tly the same
0ind-
It is suffi)iently o&'ious, and it has +artly, too, &een
e1+lained already, in (hat manner e'ery sa'in* in the e1+ense of
su++ortin* the fi1ed )a+ital is an im+ro'ement of the net re'enue
of the so)iety- The (hole )a+ital of the underta0er of e'ery (or0
is ne)essarily di'ided &et(een his fi1ed and his )ir)ulatin*
)a+ital- While his (hole )a+ital remains the same, the smaller
the one +art, the *reater must ne)essarily &e the other- It is
the )ir)ulatin* )a+ital (hi)h furnishes the materials and (a*es
of la&our, and +uts industry into motion- $'ery sa'in*,
therefore, in the e1+ense of maintainin* the fi1ed )a+ital, (hi)h
does not diminish the +rodu)ti'e +o(ers of la&our, must in)rease
the fund (hi)h +uts industry into motion, and )onsequently the
annual +rodu)e of land and la&our, the real re'enue of e'ery
so)iety-
The su&stitution of +a+er in the room of *old and sil'er
money, re+la)es a 'ery e1+ensi'e instrument of )ommer)e (ith one
mu)h less )ostly, and sometimes equally )on'enient- Cir)ulation
)omes to &e )arried on &y a ne( (heel, (hi)h it )osts less &oth
to ere)t and to maintain than the old one- .ut in (hat manner
this o+eration is +erformed, and in (hat manner it tends to
in)rease either the *ross or the net re'enue of the so)iety, is
not alto*ether so o&'ious, and may therefore require some further
e1+li)ation-
There are se'eral different sorts of +a+er money/ &ut the
)ir)ulatin* notes of &an0s and &an0ers are the s+e)ies (hi)h is
&est 0no(n, and (hi)h seems &est ada+ted for this +ur+ose-
When the +eo+le of any +arti)ular )ountry ha'e su)h
)onfiden)e in the fortune, +ro&ity, and +ruden)e of a +arti)ular
&an0er, as to &elie'e that he is al(ays ready to +ay u+on demand
su)h of his +romissory notes as are li0ely to &e at any time
+resented to him/ those notes )ome to ha'e the same )urren)y as
*old and sil'er money, from the )onfiden)e that su)h money )an at
any time &e had for them-
A +arti)ular &an0er lends amon* his )ustomers his o(n
+romissory notes, to the e1tent, (e shall su++ose, of a hundred
thousand +ounds- As those notes ser'e all the +ur+oses of money,
his de&tors +ay him the same interest as if he had lent them so
mu)h money- This interest is the sour)e of his *ain- Thou*h some
of those notes are )ontinually )omin* &a)0 u+on him for +ayment,
+art of them )ontinue to )ir)ulate for months and years to*ether-
Thou*h he has *enerally in )ir)ulation, therefore, notes to the
e1tent of a hundred thousand +ounds, t(enty thousand +ounds in
*old and sil'er may frequently &e a suffi)ient +ro'ision for
ans(erin* o))asional demands- .y this o+eration, therefore,
t(enty thousand +ounds in *old and sil'er +erform all the
fun)tions (hi)h a hundred thousand )ould other(ise ha'e
+erformed- The same e1)han*es may &e made, the same quantity of
)onsuma&le *oods may &e )ir)ulated and distri&uted to their
+ro+er )onsumers, &y means of his +romissory notes, to the 'alue
of a hundred thousand +ounds, as &y an equal 'alue of *old and
sil'er money- $i*hty thousand +ounds of *old and sil'er,
therefore, )an, in this manner, &e s+ared from the )ir)ulation of
the )ountry/ and if different o+erations of the same 0ind should,
at the same time, &e )arried on &y many different &an0s and
&an0ers, the (hole )ir)ulation may thus &e )ondu)ted (ith a fifth
+art only of the *old and sil'er (hi)h (ould other(ise ha'e &een
requisite-
!et us su++ose, for e1am+le, that the (hole )ir)ulatin*
money of some +arti)ular )ountry amounted, at a +arti)ular time,
to one million sterlin*, that sum &ein* then suffi)ient for
)ir)ulatin* the (hole annual +rodu)e of their land and la&our-
!et us su++ose, too, that some time thereafter, different &an0s
and &an0ers issued +romissory notes, +aya&le to the &earer, to
the e1tent of one million, reser'in* in their different )offers
t(o hundred thousand +ounds for ans(erin* o))asional demands-
There (ould remain, therefore, in )ir)ulation, ei*ht hundred
thousand +ounds in *old and sil'er, and a million of &an0 notes,
or ei*hteen hundred thousand +ounds of +a+er and money to*ether-
.ut the annual +rodu)e of the land and la&our of the )ountry had
&efore required only one million to )ir)ulate and distri&ute it
to its +ro+er )onsumers, and that annual +rodu)e )annot &e
immediately au*mented &y those o+erations of &an0in*- One
million, therefore, (ill &e suffi)ient to )ir)ulate it after
them- The *oods to &e &ou*ht and sold &ein* +re)isely the same as
&efore, the same quantity of money (ill &e suffi)ient for &uyin*
and sellin* them- The )hannel of )ir)ulation, if I may &e allo(ed
su)h an e1+ression, (ill remain +re)isely the same as &efore- One
million (e ha'e su++osed suffi)ient to fill that )hannel-
Whate'er, therefore, is +oured into it &eyond this sum )annot run
in it, &ut must o'erflo(- One million ei*ht hundred thousand
+ounds are +oured into it- $i*ht hundred thousand +ounds,
therefore, must o'erflo(, that sum &ein* o'er and a&o'e (hat )an
&e em+loyed in the )ir)ulation of the )ountry- .ut thou*h this
sum )annot &e em+loyed at home, it is too 'alua&le to &e allo(ed
to lie idle- It (ill, therefore, &e sent a&road, in order to see0
that +rofita&le em+loyment (hi)h it )annot find at home- .ut the
+a+er )annot *o a&road/ &e)ause at a distan)e from the &an0s
(hi)h issue it, and from the )ountry in (hi)h +ayment of it )an
&e e1a)ted &y la(, it (ill not &e re)ei'ed in )ommon +ayments-
6old and sil'er, therefore, to the amount of ei*ht hundred
thousand +ounds (ill &e sent a&road, and the )hannel of home
)ir)ulation (ill remain filled (ith a million of +a+er, instead
of the million of those metals (hi)h filled it &efore-
.ut thou*h so *reat a quantity of *old and sil'er is thus
sent a&road, (e must not ima*ine that it is sent a&road for
nothin*, or that its +ro+rietors ma0e a +resent of it to forei*n
nations- They (ill e1)han*e it for forei*n *oods of some 0ind or
another, in order to su++ly the )onsum+tion either of some other
forei*n )ountry or of their o(n-
If they em+loy it in +ur)hasin* *oods in one forei*n )ountry
in order to su++ly the )onsum+tion of another, or in (hat is
)alled the )arryin* trade, (hate'er +rofit they ma0e (ill &e an
addition to the net re'enue of their o(n )ountry- It is li0e a
ne( fund, )reated for )arryin* on a ne( trade/ domesti) &usiness
&ein* no( transa)ted &y +a+er, and the *old and sil'er &ein*
)on'erted into a fund for this ne( trade-
If they em+loy it in +ur)hasin* forei*n *oods for home
)onsum+tion, they may either, first, +ur)hase su)h *oods as are
li0ely to &e )onsumed &y idle +eo+le (ho +rodu)e nothin*, su)h as
forei*n (ines, forei*n sil0s, et)-/ or, se)ondly, they may
+ur)hase an additional sto)0 of materials, tools, and +ro'isions,
in order to maintain and em+loy an additional num&er of
industrious +eo+le, (ho re+rodu)e, (ith a +rofit, the 'alue of
their annual )onsum+tion-
So far as it is em+loyed in the first (ay, it +romotes
+rodi*ality, in)reases e1+ense and )onsum+tion (ithout in)reasin*
+rodu)tion, or esta&lishin* any +ermanent fund for su++ortin*
that e1+ense, and is in e'ery res+e)t hurtful to the so)iety-
So far as it is em+loyed in the se)ond (ay, it +romotes
industry/ and thou*h it in)reases the )onsum+tion of the so)iety,
it +ro'ides a +ermanent fund for su++ortin* that )onsum+tion, the
+eo+le (ho )onsume re+rodu)in*, (ith a +rofit, the (hole 'alue of
their annual )onsum+tion- The *ross re'enue of the so)iety, the
annual +rodu)e of their land and la&our, is in)reased &y the
(hole 'alue (hi)h the la&our of those (or0men adds to the
materials u+on (hi)h they are em+loyed/ and their net re'enue &y
(hat remains of this 'alue, after dedu)tin* (hat is ne)essary for
su++ortin* the tools and instruments of their trade-
That the *reater +art of the *old and sil'er (hi)h, &ein*
for)ed a&road &y those o+erations of &an0in*, is em+loyed in
+ur)hasin* forei*n *oods for home )onsum+tion, is and must &e
em+loyed in +ur)hasin* those of this se)ond 0ind, seems not only
+ro&a&le &ut almost una'oida&le- Thou*h some +arti)ular men may
sometimes in)rease their e1+ense 'ery )onsidera&ly thou*h their
re'enue does not in)rease at all, (e may &e assured that no )lass
or order of men e'er does so/ &e)ause, thou*h the +rin)i+les of
)ommon +ruden)e do not al(ays *o'ern the )ondu)t of e'ery
indi'idual, they al(ays influen)e that of the ma2ority of e'ery
)lass or order- .ut the re'enue of idle +eo+le, )onsidered as a
)lass or order, )annot, in the smallest de*ree, &e in)reased &y
those o+erations of &an0in*- Their e1+ense in *eneral, therefore,
)annot &e mu)h in)reased &y them, thou*h that of a fe(
indi'iduals amon* them may, and in reality sometimes is- The
demand of idle +eo+le, therefore, for forei*n *oods &ein* the
same, or 'ery nearly the same, as &efore, a 'ery small +art of
the money, (hi)h &ein* for)ed a&road &y those o+erations of
&an0in*, is em+loyed in +ur)hasin* forei*n *oods for home
)onsum+tion, is li0ely to &e em+loyed in +ur)hasin* those for
their use- The *reater +art of it (ill naturally &e destined for
the em+loyment of industry, and not for the maintenan)e of
idleness-
When (e )om+ute the quantity of industry (hi)h the
)ir)ulatin* )a+ital of any so)iety )an em+loy, (e must al(ays
ha'e re*ard to those +arts of it only (hi)h )onsist in
+ro'isions, materials, and finished (or03 the other, (hi)h
)onsists in money, and (hi)h ser'es only to )ir)ulate those
three, must al(ays &e dedu)ted- In order to +ut industry into
motion, three thin*s are requisite/ materials to (or0 u+on, tools
to (or0 (ith, and the (a*es or re)om+ense for the sa0e of (hi)h
the (or0 is done- 4oney is neither a material to (or0 u+on, nor a
tool to (or0 (ith/ and thou*h the (a*es of the (or0man are
)ommonly +aid to him in money, his real re'enue, li0e that of all
other men, )onsists, not in money, &ut in the money=s (orth/ not
in the metal +ie)es, &ut in (hat )an &e *ot for them-
The quantity of industry (hi)h any )a+ital )an em+loy must,
e'idently, &e equal to the num&er of (or0men (hom it )an su++ly
(ith materials, tools, and a maintenan)e suita&le to the nature
of the (or0- 4oney may &e requisite for +ur)hasin* the materials
and tools of the (or0, as (ell as the maintenan)e of the (or0men-
.ut the quantity of industry (hi)h the (hole )a+ital )an em+loy
is )ertainly not equal &oth to the money (hi)h +ur)hases, and to
the materials, tools, and maintenan)e, (hi)h are +ur)hased (ith
it/ &ut only to one or other of those t(o 'alues, and to the
latter more +ro+erly than to the former-
When +a+er is su&stituted in the room of *old and sil'er
money, the quantity of the materials, tools, and maintenan)e,
(hi)h the (hole )ir)ulatin* )a+ital )an su++ly, may &e in)reased
&y the (hole 'alue of *old and sil'er (hi)h used to &e em+loyed
in +ur)hasin* them- The (hole 'alue of the *reat (heel of
)ir)ulation and distri&ution is added to the *oods (hi)h are
)ir)ulated and distri&uted &y means of it- The o+eration, in some
measure, resem&les that of the underta0er of some *reat (or0,
(ho, in )onsequen)e of some im+ro'ement in me)hani)s, ta0es do(n
his old ma)hinery, and adds the differen)e &et(een its +ri)e and
that of the ne( to his )ir)ulatin* )a+ital, to the fund from
(hi)h he furnishes materials and (a*es to his (or0men-
What is the +ro+ortion (hi)h the )ir)ulatin* money of any
)ountry &ears to the (hole 'alue of the annual +rodu)e )ir)ulated
&y means of it, it is, +erha+s, im+ossi&le to determine- It has
&een )om+uted &y different authors at a fifth, at a tenth, at a
t(entieth, and at a thirtieth +art of that 'alue- .ut ho( small
soe'er the +ro+ortion (hi)h the )ir)ulatin* money may &ear to the
(hole 'alue of the annual +rodu)e, as &ut a +art, and frequently
&ut a small +art, of that +rodu)e, is e'er destined for the
maintenan)e of industry, it must al(ays &ear a 'ery )onsidera&le
+ro+ortion to that +art- When, therefore, &y the su&stitution of
+a+er, the *old and sil'er ne)essary for )ir)ulation is redu)ed
to, +erha+s, a fifth +art of the former quantity, if the 'alue of
only the *reater +art of the other four8fifths &e added to the
funds (hi)h are destined for the maintenan)e of industry, it must
ma0e a 'ery )onsidera&le addition to the quantity of that
industry, and, )onsequently, to the 'alue of the annual +rodu)e
of land and la&our-
An o+eration of this 0ind has, (ithin these fi'e8and8t(enty
or thirty years, &een +erformed in S)otland, &y the ere)tion of
ne( &an0in* )om+anies in almost e'ery )onsidera&le to(n, and e'en
in some )ountry 'illa*es- The effe)ts of it ha'e &een +re)isely
those a&o'e des)ri&ed- The &usiness of the )ountry is almost
entirely )arried on &y means of the +a+er of those different
&an0in* )om+anies, (ith (hi)h +ur)hases and +ayments of 0inds are
)ommonly made- Sil'er 'ery seldom a++ears e1)e+t in the )han*e of
a t(enty shillin*s &an0 note, and *old still seldomer- .ut thou*h
the )ondu)t of all those different )om+anies has not &een
une1)e+tiona&le, and has a))ordin*ly required an a)t of
arliament to re*ulate it, the )ountry, not(ithstandin*, has
e'idently deri'ed *reat &enefit from their trade- I ha'e heard it
asserted, that the trade of the )ity of 6las*o( dou&led in a&out
fifteen years after the first ere)tion of the &an0s there/ and
that the trade of S)otland has more than quadru+led sin)e the
first ere)tion of the t(o +u&li) &an0s at $din&ur*h, of (hi)h the
one, )alled the .an0 of S)otland, (as esta&lished &y a)t of
arliament in 16FH/ the other, )alled the Royal .an0, &y royal
)harter in 17E7- Whether the trade, either of S)otland in
*eneral, or the )ity of 6las*o( in +arti)ular, has really
in)reased in so *reat a +ro+ortion, durin* so short a +eriod, I
do not +retend to 0no(- If either of them has in)reased in this
+ro+ortion, it seems to &e an effe)t too *reat to &e a))ounted
for &y the sole o+eration of this )ause- That the trade and
industry of S)otland, ho(e'er, ha'e in)reased 'ery )onsidera&ly
durin* this +eriod, and that the &an0s ha'e )ontri&uted a *ood
deal to this in)rease, )annot &e dou&ted-
The 'alue of the sil'er money (hi)h )ir)ulated in S)otland
&efore the union, in 17C7, and (hi)h, immediately after it, (as
&rou*ht into the .an0 of S)otland in order to &e re)oined,
amounted to !G11,117 1Cs- Fd- sterlin*- No a))ount has &een *ot
of the *old )oin/ &ut it a++ears from the an)ient a))ounts of the
mint of S)otland, that the 'alue of the *old annually )oined
some(hat e1)eeded that of the sil'er- There (ere a *ood many
+eo+le, too, u+on this o))asion, (ho, from a diffiden)e of
re+ayment, did not &rin* their sil'er into the .an0 of S)otland3
and there (as, &esides, some $n*lish )oin (hi)h (as not )alled
in- The (hole 'alue of the *old and sil'er, therefore, (hi)h
)ir)ulated in S)otland &efore the union, )annot &e estimated at
less than a million sterlin*- It seems to ha'e )onstituted almost
the (hole )ir)ulation of that )ountry/ for thou*h the )ir)ulation
of the .an0 of S)otland, (hi)h had then no ri'al, (as
)onsidera&le, it seems to ha'e made &ut a 'ery small +art of the
(hole- In the +resent times the (hole )ir)ulation of S)otland
)annot &e estimated at less than t(o millions, of (hi)h that +art
(hi)h )onsists in *old and sil'er most +ro&a&ly does not amount
to half a million- .ut thou*h the )ir)ulatin* *old and sil'er of
S)otland ha'e suffered so *reat a diminution durin* this +eriod,
its real ri)hes and +ros+erity do not a++ear to ha'e suffered
any- Its a*ri)ulture, manufa)tures, and trade, on the )ontrary,
the annual +rodu)e of its land and la&our, ha'e e'idently &een
au*mented-
It is )hiefly &y dis)ountin* &ills of e1)han*e, that is, &y
ad'an)in* money u+on them &efore they are due, that the *reater
+art of &an0s and &an0ers issue their +romissory notes- They
dedu)t al(ays, u+on (hate'er sum they ad'an)e, the le*al interest
till the &ill shall &e)ome due- The +ayment of the &ill, (hen it
&e)omes due, re+la)es to the &an0 the 'alue of (hat had &een
ad'an)ed, to*ether (ith a )lear +rofit of the interest- The
&an0er (ho ad'an)es to the mer)hant (hose &ill he dis)ounts, not
*old and sil'er, &ut his o(n +romissory notes, has the ad'anta*e
of &ein* a&le to dis)ount to a *reater amount, &y the (hole 'alue
of his +romissory notes, (hi)h he finds &y e1+erien)e are
)ommonly in )ir)ulation- #e is there&y ena&led to ma0e his )lear
*ain of interest on so mu)h a lar*er sum-
The )ommer)e of S)otland, (hi)h at +resent is not 'ery
*reat, (as still more in)onsidera&le (hen the t(o first &an0in*
)om+anies (ere esta&lished, and those )om+anies (ould ha'e had
&ut little trade had they )onfined their &usiness to the
dis)ountin* of &ills of e1)han*e- They in'ented, therefore,
another method of issuin* their +romissory notes/ &y *rantin*
(hat they )alled )ash a))ounts, that is &y *i'in* )redit to the
e1tent of a )ertain sum 9t(o or three thousand +ounds, for
e1am+le: to any indi'idual (ho )ould +ro)ure t(o +ersons of
undou&ted )redit and *ood landed estate to &e)ome surety for him,
that (hate'er money should &e ad'an)ed to him, (ithin the sum for
(hi)h the )redit had &een *i'en, should &e re+aid u+on demand,
to*ether (ith the le*al interest- Credits of this 0ind are, I
&elie'e, )ommonly *ranted &y &an0s and &an0ers in all different
+arts of the (orld- .ut the easy terms u+on (hi)h the S)ot)h
&an0in* )om+anies a))e+t of re+ayment are, so far as I 0no(,
+e)uliar to them, and ha'e, +erha+s, &een the +rin)i+al )ause,
&oth of the *reat trade of those )om+anies and of the &enefit
(hi)h the )ountry has re)ei'ed from it-
Whoe'er has a )redit of this 0ind (ith one of those
)om+anies, and &orro(s a thousand +ounds u+on it, for e1am+le,
may re+ay this sum +ie)emeal, &y t(enty and thirty +ounds at a
time, the )om+any dis)ountin* a +ro+ortiona&le +art of the
interest of the *reat sum from the day on (hi)h ea)h of those
small sums is +aid in till the (hole &e in this manner re+aid-
All mer)hants, therefore, and almost all men of &usiness, find it
)on'enient to 0ee+ su)h )ash a))ounts (ith them, and are there&y
interested to +romote the trade of those )om+anies, &y readily
re)ei'in* their notes in all +ayments, and &y en)oura*in* all
those (ith (hom they ha'e any influen)e to do the same- The
&an0s, (hen their )ustomers a++ly to them for money, *enerally
ad'an)e it to them in their o(n +romissory notes- These the
mer)hants +ay a(ay to the manufa)turers for *oods, the
manufa)turers to the farmers for materials and +ro'isions, the
farmers to their landlords for rent, the landlords re+ay them to
the mer)hants for the )on'enien)ies and lu1uries (ith (hi)h they
su++ly them, and the mer)hants a*ain return them to the &an0s in
order to &alan)e their )ash a))ounts, or to re+la)e (hat they may
ha'e &orro(ed of them/ and thus almost the (hole money &usiness
of the )ountry is transa)ted &y means of them- #en)e the *reat
trade of those )om+anies-
.y means of those )ash a))ounts e'ery mer)hant )an, (ithout
im+ruden)e, )arry on a *reater trade than he other(ise )ould do-
If there are t(o mer)hants, one in !ondon and the other in
$din&ur*h, (ho em+loy equal sto)0s in the same &ran)h of trade,
the $din&ur*h mer)hant )an, (ithout im+ruden)e, )arry on a
*reater trade and *i'e em+loyment to a *reater num&er of +eo+le
than the !ondon mer)hant- The !ondon mer)hant must al(ays 0ee+ &y
him a )onsidera&le sum of money, either in his o(n )offers, or in
those of his &an0er, (ho *i'es him no interest for it, in order
to ans(er the demands )ontinually )omin* u+on him for +ayment of
the *oods (hi)h he +ur)hases u+on )redit- !et the ordinary amount
of this sum &e su++osed fi'e hundred +ounds- The 'alue of the
*oods in his (arehouse must al(ays &e less &y fi'e hundred +ounds
than it (ould ha'e &een had he not &een o&li*ed to 0ee+ su)h a
sum unem+loyed- !et us su++ose that he *enerally dis+oses of his
(hole sto)0 u+on hand, or of *oods to the 'alue of his (hole
sto)0 u+on hand, on)e in the year- .y &ein* o&li*ed to 0ee+ so
*reat a sum unem+loyed, he must sell in a year fi'e hundred
+ounds= (orth less *oods than he mi*ht other(ise ha'e done- #is
annual +rofits must &e less &y all that he )ould ha'e made &y the
sale of fi'e hundred +ounds (orth more *oods/ and the num&er of
+eo+le em+loyed in +re+arin* his *oods for the mar0et must &e
less &y all those that fi'e hundred +ounds more sto)0 )ould ha'e
em+loyed- The mer)hant in $din&ur*h, on the other hand, 0ee+s no
money unem+loyed for ans(erin* su)h o))asional demands- When they
a)tually )ome u+on him, he satisfies them from his )ash a))ount
(ith the &an0, and *radually re+la)es the sum &orro(ed (ith the
money or +a+er (hi)h )omes in from the o))asional sales of his
*oods- With the same sto)0, therefore, he )an, (ithout
im+ruden)e, ha'e at all times in his (arehouse a lar*er quantity
of *oods than the !ondon mer)hant/ and )an there&y &oth ma0e a
*reater +rofit himself, and *i'e )onstant em+loyment to a *reater
num&er of industrious +eo+le (ho +re+are those *oods for the
mar0et- #en)e the *reat &enefit (hi)h the )ountry has deri'ed
from this trade-
The fa)ility of dis)ountin* &ills of e1)han*e it may &e
thou*ht indeed, *i'es the $n*lish mer)hants a )on'enien)y
equi'alent to the )ash a))ounts of the S)ot)h mer)hants- .ut the
S)ot)h mer)hants, it must &e remem&ered, )an dis)ount their &ills
of e1)han*e as easily as the $n*lish mer)hants/ and ha'e,
&esides, the additional )on'enien)y of their )ash a))ounts-
The (hole +a+er money of e'ery 0ind (hi)h )an easily
)ir)ulate in any )ountry ne'er )an e1)eed the 'alue of the *old
and sil'er, of (hi)h it su++lies the +la)e, or (hi)h 9the
)ommer)e &ein* su++osed the same: (ould )ir)ulate there, if there
(as no +a+er money- If t(enty shillin* notes, for e1am+le, are
the lo(est +a+er money )urrent in S)otland, the (hole of that
)urren)y (hi)h )an easily )ir)ulate there )annot e1)eed the sum
of *old and sil'er (hi)h (ould &e ne)essary for transa)tin* the
annual e1)han*es of t(enty shillin*s 'alue and u+(ards usually
transa)ted (ithin that )ountry- Should the )ir)ulatin* +a+er at
any time e1)eed that sum, as the e1)ess )ould neither &e sent
a&road nor &e em+loyed in the )ir)ulation of the )ountry, it must
immediately return u+on the &an0s to &e e1)han*ed for *old and
sil'er- 4any +eo+le (ould immediately +er)ei'e that they had more
of this +a+er than (as ne)essary for transa)tin* their &usiness
at home, and as they )ould not send it a&road, they (ould
immediately demand +ayment of it from the &an0s- When this
su+erfluous +a+er (as )on'erted into *old and sil'er, they )ould
easily find a use for it &y sendin* it a&road/ &ut they )ould
find none (hile it remained in the sha+e of +a+er- There (ould
immediately, therefore, &e a run u+on the &an0s to the (hole
e1tent of this su+erfluous +a+er, and, if they sho(ed any
diffi)ulty or &a)0(ardness in +ayment, to a mu)h *reater e1tent/
the alarm (hi)h this (ould o))asion ne)essarily in)reasin* the
run-
O'er and a&o'e the e1+enses (hi)h are )ommon to e'ery &ran)h
of trade/ su)h as the e1+ense of house8rent, the (a*es of
ser'ants, )ler0s, a))ountants, et)-/ the e1+enses +e)uliar to a
&an0 )onsist )hiefly in t(o arti)les3 first, in the e1+ense of
0ee+in* at all times in its )offers, for ans(erin* the o))asional
demands of the holders of its notes, a lar*e sum of money, of
(hi)h it loses the interest/ and, se)ondly, in the e1+ense of
re+lenishin* those )offers as fast as they are em+tied &y
ans(erin* su)h o))asional demands-
A &an0in* )om+any, (hi)h issues more +a+er than )an &e
em+loyed in the )ir)ulation of the )ountry, and of (hi)h the
e1)ess is )ontinually returnin* u+on them for +ayment, ou*ht to
in)rease the quantity of *old and sil'er, (hi)h they 0ee+ at all
times in their )offers, not only in +ro+ortion to this e1)essi'e
in)rease of their )ir)ulation, &ut in a mu)h *reater +ro+ortion/
their notes returnin* u+on them mu)h faster than in +ro+ortion to
the e1)ess of their quantity- Su)h a )om+any, therefore, ou*ht to
in)rease the first arti)le of their e1+ense, not only in
+ro+ortion to this for)ed in)rease of their &usiness, &ut in a
mu)h *reater +ro+ortion-
The )offers of su)h a )om+any too, thou*h they ou*ht to &e
filled mu)h fuller, yet must em+ty themsel'es mu)h faster than if
their &usiness (as )onfined (ithin more reasona&le &ounds, and
must require, not only a more 'iolent, &ut a more )onstant and
uninterru+ted e1ertion of e1+ense in order to re+lenish them- The
)oin too, (hi)h is thus )ontinually dra(n in su)h lar*e
quantities from their )offers, )annot &e em+loyed in the
)ir)ulation of the )ountry- It )omes in +la)e of a +a+er (hi)h is
o'er and a&o'e (hat )an &e em+loyed in that )ir)ulation, and is
therefore o'er and a&o'e (hat )an &e em+loyed in it too- .ut as
that )oin (ill not &e allo(ed to lie idle, it must, in one sha+e
or another, &e sent a&road, in order to find that +rofita&le
em+loyment (hi)h it )annot find at home/ and this )ontinual
e1+ortation of *old and sil'er, &y enhan)in* the diffi)ulty, must
ne)essarily enhan)e still further the e1+ense of the &an0, in
findin* ne( *old and sil'er in order to re+lenish those )offers,
(hi)h em+ty themsel'es so 'ery ra+idly- Su)h a )om+any,
therefore, must, in +ro+ortion to this for)ed in)rease of their
&usiness, in)rease the se)ond arti)le of their e1+ense still more
than the first-
!et us su++ose that all the +a+er of a +arti)ular &an0,
(hi)h the )ir)ulation of the )ountry )an easily a&sor& and
em+loy, amounts e1a)tly to forty thousand +ounds/ and that for
ans(erin* o))asional demands, this &an0 is o&li*ed to 0ee+ at all
times in its )offers ten thousand +ounds in *old and sil'er-
Should this &an0 attem+t to )ir)ulate forty8four thousand +ounds,
the four thousand +ounds (hi)h are o'er and a&o'e (hat the
)ir)ulation )an easily a&sor& and em+loy, (ill return u+on it
almost as fast as they are issued- "or ans(erin* o))asional
demands, therefore, this &an0 ou*ht to 0ee+ at all times in its
)offers, not ele'en thousand +ounds only, &ut fourteen thousand
+ounds- It (ill thus *ain nothin* &y the interest of the four
thousand +ounds= e1)essi'e )ir)ulation/ and it (ill lose the
(hole e1+ense of )ontinually )olle)tin* four thousand +ounds in
*old and sil'er, (hi)h (ill &e )ontinually *oin* out of its
)offers as fast as they are &rou*ht into them-
#ad e'ery +arti)ular &an0in* )om+any al(ays understood and
attended to its o(n +arti)ular interest, the )ir)ulation ne'er
)ould ha'e &een o'ersto)0ed (ith +a+er money- .ut e'ery
+arti)ular &an0in* )om+any has not al(ays understood or attended
to its o(n +arti)ular interest, and the )ir)ulation has
frequently &een o'ersto)0ed (ith +a+er money-
.y issuin* too *reat a quantity of +a+er, of (hi)h the
e1)ess (as )ontinually returnin*, in order to &e e1)han*ed for
*old and sil'er, the .an0 of $n*land (as for many years to*ether
o&li*ed to )oin *old to the e1tent of &et(een ei*ht hundred
thousand +ounds and a million a year/ or at an a'era*e, a&out
ei*ht hundred and fifty thousand +ounds- "or this *reat )oina*e
the &an0 9in )onsequen)e of the (orn and de*raded state into
(hi)h the *old )oin had fallen a fe( years a*o: (as frequently
o&li*ed to +ur)hase *old &ullion at the hi*h +ri)e of four +ounds
an oun)e, (hi)h it soon after issued in )oin at HB 17s- 1C 1DEd-
an oun)e, losin* in this manner &et(een t(o and a half and three
+er )ent u+on the )oina*e of so 'ery lar*e a sum- Thou*h the &an0
therefore +aid no sei*nora*e, thou*h the *o'ernment (as +ro+erly
at the e1+ense of the )oina*e, this li&erality of *o'ernment did
not +re'ent alto*ether the e1+ense of the &an0-
The S)ot)h &an0s, in )onsequen)e of an e1)ess of the same
0ind, (ere all o&li*ed to em+loy )onstantly a*ents at !ondon to
)olle)t money for them, at an e1+ense (hi)h (as seldom &elo( one
and a half or t(o +er )ent- This money (as sent do(n &y the
(a**on, and insured &y the )arriers at an additional e1+ense of
three quarters +er )ent or fifteen shillin*s on the hundred
+ounds- Those a*ents (ere not al(ays a&le to re+lenish the
)offers of their em+loyers so fast as they (ere em+tied- In this
)ase the resour)e of the &an0s (as to dra( u+on their
)orres+ondents in !ondon &ills of e1)han*e to the e1tent of the
sum (hi)h they (anted- When those )orres+ondents after(ards dre(
u+on them for the +ayment of this sum, to*ether (ith the interest
and a )ommission, soni) of those &an0s, from the distress into
(hi)h their e1)essi'e )ir)ulation had thro(n them, had sometimes
no other means of satisfyin* this drau*ht &ut &y dra(in* a se)ond
set of &ills either u+on the same, or u+on some other
)orres+ondents in !ondon/ and the same sum, or rather &ills for
the same sum, (ould in this manner ma0e sometimes more than t(o
or three 2ourneys, the de&tor, &an0, +ayin* al(ays the interest
and )ommission u+on the (hole a))umulated sum- $'en those S)ot)h
&an0s (hi)h ne'er distin*uished themsel'es &y their e1treme
im+ruden)e, (ere sometimes o&li*ed to em+loy this ruinous
resour)e-
The *old )oin (hi)h (as +aid out either &y the .an0 of
$n*land, or &y the S)ot)h &an0s, in e1)han*e for that +art of
their +a+er (hi)h (as o'er and a&o'e (hat )ould &e em+loyed in
the )ir)ulation of the )ountry, &ein* li0e(ise o'er and a&o'e
(hat )ould &e em+loyed in that )ir)ulation, (as sometimes sent
a&road in the sha+e of )oin, sometimes melted do(n and sent
a&road in the sha+e of &ullion, and sometimes melted do(n and
sold to the .an0 of $n*land at the hi*h +ri)e of four +ounds an
oun)e- It (as the ne(est, the hea'iest, and the &est +ie)es only
(hi)h (ere )arefully +i)0ed out of the (hole )oin, and either
sent a&road or melted do(n- At home, and (hile they remained in
the sha+e of )oin, those hea'y +ie)es (ere of no more 'alue than
the li*ht- .ut they (ere of more 'alue a&road, or (hen melted
do(n into &ullion, at home- The .an0 of $n*land, not(ithstandin*
their *reat annual )oina*e, found to their astonishment that
there (as e'ery year the same s)ar)ity of )oin as there had &een
the year &efore/ and that not(ithstandin* the *reat quantity of
*ood and ne( )oin (hi)h (as e'ery year issued from the &an0, the
state of the )oin, instead of *ro(in* &etter and &etter, &e)ame
e'ery year (orse and (orse- $'ery year they found themsel'es
under the ne)essity of )oinin* nearly the same quantity of *old
as they had )oined the year &efore, and from the )ontinual rise
in the +ri)e of *old &ullion, in )onsequen)e of the )ontinual
(earin* and )li++in* of the )oin, the e1+ense of this *reat
annual )oina*e &e)ame e'ery year *reater and *reater- The .an0 of
$n*land, it is to &e o&ser'ed, &y su++lyin* its o(n )offers (ith
)oin, is indire)tly o&li*ed to su++ly the (hole 0in*dom, into
(hi)h )oin is )ontinually flo(in* from those )offers in a *reat
'ariety of (ays- Whate'er )oin therefore (as (anted to su++ort
this e1)essi'e )ir)ulation &oth of S)ot)h and $n*lish +a+er
money, (hate'er 'a)uities this e1)essi'e )ir)ulation o))asioned
in the ne)essary )oin of the 0in*dom, the .an0 of $n*land (as
o&li*ed to su++ly them- The S)ot)h &an0s, no dou&t, +aid all of
them 'ery dearly for their o(n im+ruden)e and inattention- .ut
the .an0 of $n*land +aid 'ery dearly, not only for its o(n
im+ruden)e, &ut for the mu)h *reater im+ruden)e of almost all the
S)ot)h &an0s-
The o'ertradin* of some &old +ro2e)tors in &oth +arts of the
United %in*dom (as the ori*inal )ause of this e1)essi'e
)ir)ulation of +a+er money-
What a &an0 )an (ith +ro+riety ad'an)e to a mer)hant or
underta0er of any 0ind, is not either the (hole )a+ital (ith
(hi)h he trades, or e'en any )onsidera&le +art of that )a+ital/
&ut that +art of it only (hi)h he (ould other(ise &e o&li*ed to
0ee+ &y him unem+loyed, and in ready money for ans(erin*
o))asional demands- If the +a+er money (hi)h the &an0 ad'an)es
ne'er e1)eeds this 'alue, it )an ne'er e1)eed the 'alue of the
*old and sil'er (hi)h (ould ne)essarily )ir)ulate in the )ountry
if there (as no +a+er money/ it )an ne'er e1)eed the quantity
(hi)h the )ir)ulation of the )ountry )an easily a&sor& and
em+loy-
When a &an0 dis)ounts to a mer)hant a real &ill of e1)han*e
dra(n &y a real )reditor u+on a real de&tor, and (hi)h, as soon
as it &e)omes due, is really +aid &y that de&tor, it only
ad'an)es to him a +art of the 'alue (hi)h he (ould other(ise &e
o&li*ed to 0ee+ &y him unem+loyed and in ready money for
ans(erin* o))asional demands- The +ayment of the &ill, (hen it
&e)omes due, re+la)es to the &an0 the 'alue of (hat it had
ad'an)ed, to*ether (ith the interest- The )offers of the &an0, so
far as its dealin*s are )onfined to su)h )ustomers, resem&le a
(ater +ond, from (hi)h, thou*h a stream is )ontinually runnin*
out, yet another is )ontinually runnin* in, fully equal to that
(hi)h runs out/ so that, (ithout any further )are or attention,
the +ond 0ee+s al(ays equally, or 'ery near equally full- !ittle
or no e1+ense )an e'er &e ne)essary for re+lenishin* the )offers
of su)h a &an0-
A mer)hant, (ithout o'ertradin*, may frequently ha'e
o))asion for a sum of ready money, e'en (hen he has no &ills to
dis)ount- When a &an0, &esides dis)ountin* his &ills, ad'an)es
him li0e(ise u+on su)h o))asions su)h sums u+on his )ash a))ount,
and a))e+ts of a +ie)emeal re+ayment as the money )omes in from
the o))asional sale of his *oods, u+on the easy terms of the
&an0in* )om+anies of S)otland/ it dis+enses him entirely from the
ne)essity of 0ee+in* any +art of his sto)0 &y him unem+loyed and
in ready money for ans(erin* o))asional demands- When su)h
demands a)tually )ome u+on him, he )an ans(er them suffi)iently
from his )ash a))ount- The &an0, ho(e'er, in dealin* (ith su)h
)ustomers, ou*ht to o&ser'e (ith *reat attention, (hether in the
)ourse of some short +eriod 9of four, fi'e, si1, or ei*ht months
for e1am+le: the sum of the re+ayments (hi)h it )ommonly re)ei'es
from them is, or is not, fully equal to that of the ad'an)es
(hi)h it )ommonly ma0es to them- If, (ithin the )ourse of su)h
short +eriods, the sum of the re+ayments from )ertain )ustomers
is, u+on most o))asions, fully equal to that of the ad'an)es, it
may safely )ontinue to deal (ith su)h )ustomers- Thou*h the
stream (hi)h is in this )ase )ontinually runnin* out from its
)offers may &e 'ery lar*e, that (hi)h is )ontinually runnin* into
them must &e at least equally lar*e/ so that (ithout any further
)are or attention those )offers are li0ely to &e al(ays equally
or 'ery near equally full/ and s)ar)e e'er to require any
e1traordinary e1+ense to re+lenish them- If, on the )ontrary, the
sum of the re+ayments from )ertain other )ustomers falls )ommonly
'ery mu)h short of the ad'an)es (hi)h it ma0es to them, it )annot
(ith any safety )ontinue to deal (ith su)h )ustomers, at least if
they )ontinue to deal (ith it in this manner- The stream (hi)h is
in this )ase )ontinually runnin* out from its )offers is
ne)essarily mu)h lar*er than that (hi)h is )ontinually runnin*
in/ so that, unless they are re+lenished &y some *reat and
)ontinual effort of e1+ense, those )offers must soon &e e1hausted
alto*ether-
The &an0in* )om+anies of S)otland, a))ordin*ly, (ere for a
lon* time 'ery )areful to require frequent and re*ular re+ayments
from all their )ustomers, and did not )are to deal (ith any
+erson, (hate'er mi*ht &e his fortune or )redit, (ho did not
ma0e, (hat they )alled, frequent and re*ular o+erations (ith
them- .y this attention, &esides sa'in* almost entirely the
e1traordinary e1+ense of re+lenishin* their )offers, they *ained
t(o other 'ery )onsidera&le ad'anta*es-
"irst, &y this attention they (ere ena&led to ma0e some
tolera&le 2ud*ment )on)ernin* the thri'in* or de)linin*
)ir)umstan)es of their de&tors, (ithout &ein* o&li*ed to loo0 out
for any other e'iden)e &esides (hat their o(n &oo0s afforded
them/ men &ein* for the most +art either re*ular or irre*ular in
their re+ayments, a))ordin* as their )ir)umstan)es are either
thri'in* or de)linin*- A +ri'ate man (ho lends out his money to
+erha+s half a do;en or a do;en of de&tors, may, either &y
himself or his a*ents, o&ser'e and inquire &oth )onstantly and
)arefully into the )ondu)t and situation of ea)h of them- .ut a
&an0in* )om+any, (hi)h lends money to +erha+s fi'e hundred
different +eo+le, and of (hi)h the attention is )ontinually
o))u+ied &y o&2e)ts of a 'ery different 0ind, )an ha'e no re*ular
information )on)ernin* the )ondu)t and )ir)umstan)es of the
*reater +art of its de&tors &eyond (hat its o(n &oo0s afford it-
In requirin* frequent and re*ular re+ayments from all their
)ustomers, the &an0in* )om+anies of S)otland had +ro&a&ly this
ad'anta*e in 'ie(-
Se)ondly, &y this attention they se)ured themsel'es from the
+ossi&ility of issuin* more +a+er money than (hat the )ir)ulation
of the )ountry )ould easily a&sor& and em+loy- When they o&ser'ed
that (ithin moderate +eriods of time the re+ayments of a
+arti)ular )ustomer (ere u+on most o))asions fully equal to the
ad'an)es (hi)h they had made to him, they mi*ht &e assured that
the +a+er money (hi)h they had ad'an)ed to him had not at any
time e1)eeded the quantity of *old and sil'er (hi)h he (ould
other(ise ha'e &een o&li*ed to 0ee+ &y him for ans(erin*
o))asional demands/ and that, )onsequently, the +a+er money,
(hi)h they had )ir)ulated &y his means, had not at any time
e1)eeded the quantity of *old and sil'er (hi)h (ould ha'e
)ir)ulated in the )ountry had there &een no +a+er money- The
frequen)y, re*ularity, and amount of his re+ayments (ould
suffi)iently demonstrate that the amount of their ad'an)es had at
no time e1)eeded that +art of his )a+ital (hi)h he (ould
other(ise ha'e &een o&li*ed to 0ee+ &y him unem+loyed and in
ready money for ans(erin* o))asional demands/ that is, for the
+ur+ose of 0ee+in* the rest of his )a+ital in )onstant
em+loyment- It is this +art of his )a+ital only (hi)h, (ithin
moderate +eriods of time, is )ontinually returnin* to e'ery
dealer in the sha+e of money, (hether +a+er or )oin, and
)ontinually *oin* from him in the same sha+e- If the ad'an)es of
the &an0 had )ommonly e1)eeded this +art of his )a+ital, the
ordinary amount of his re+ayments )ould not, (ithin moderate
+eriods of time, ha'e equalled the ordinary amount of its
ad'an)es- The stream (hi)h, &y means of his dealin*s, (as
)ontinually runnin* into the )offers of the &an0, )ould not ha'e
&een equal to the stream (hi)h, &y means of the same dealin*s,
(as )ontinually runnin* out- The ad'an)es of the &an0 +a+er, &y
e1)eedin* the quantity of *old and sil'er (hi)h, had there &een
no su)h ad'an)es, he (ould ha'e &een o&li*ed to 0ee+ &y him for
ans(erin* o))asional demands, mi*ht soon )ome to e1)eed the (hole
quantity of *old and sil'er (hi)h 9the )ommer)e &ein* su++osed
the same: (ould ha'e )ir)ulated in the )ountry had there &een no
+a+er money/ and )onsequently to e1)eed the quantity (hi)h the
)ir)ulation of the )ountry )ould easily a&sor& and em+loy/ and
the e1)ess of this +a+er money (ould immediately ha'e returned
u+on the &an0 in order to &e e1)han*ed for *old and sil'er- This
se)ond ad'anta*e, thou*h equally real, (as not +erha+s so (ell
understood &y all the different &an0in* )om+anies of S)otland as
the first-
When, +artly &y the )on'enien)y of dis)ountin* &ills, and
+artly &y that of )ash a))ounts, the )redita&le traders of any
)ountry )an &e dis+ensed from the ne)essity of 0ee+in* any +art
of their sto)0 &y them unem+loyed and in ready money for
ans(erin* o))asional demands, they )an reasona&ly e1+e)t no
farther assistan)e from &an0s and &an0ers, (ho, (hen they ha'e
*one thus far, )annot, )onsistently (ith their o(n interest and
safety, *o farther- A &an0 )annot, )onsistently (ith its o(n
interest, ad'an)e to a trader the (hole or e'en the *reater +art
of the )ir)ulatin* )a+ital (ith (hi)h he trades/ &e)ause, thou*h
that )a+ital is )ontinually returnin* to him in the sha+e of
money, and *oin* from him in the same sha+e, yet the (hole of the
returns is too distant from the (hole of the out*oin*s, and the
sum of his re+ayments )ould not equal the sum of its ad'an)es
(ithin su)h moderate +eriods of time as suit the )on'enien)y of a
&an0- Still less, )ould a &an0 afford to ad'an)e him any
)onsidera&le +art of his fi1ed )a+ital/ of the )a+ital (hi)h the
underta0er of an iron for*e, for e1am+le, em+loys in ere)tin* his
for*e and smeltin*8house, his (or0houses and (arehouses, the
d(ellin*8houses of his (or0men, et)-/ of the )a+ital (hi)h the
underta0er of a mine em+loys in sin0in* his shafts, in ere)tin*
en*ines for dra(in* out the (ater, in ma0in* roads and
(a**on8(ays, et)-/ of the )a+ital (hi)h the +erson (ho underta0es
to im+ro'e land em+loys in )learin*, drainin*, en)losin*,
manurin*, and +lou*hin* (aste and un)ulti'ated fields, in
&uildin* farm8houses, (ith all their ne)essary a++enda*es of
sta&les, *ranaries, et)- The returns of the fi1ed )a+ital are in
almost all )ases mu)h slo(er than those of the )ir)ulatin*
)a+ital/ and su)h e1+enses, e'en (hen laid out (ith the *reatest
+ruden)e and 2ud*ment, 'ery seldom return to the underta0er till
after a +eriod of many years, a +eriod &y far too distant to suit
the )on'enien)y of a &an0- Traders and other underta0ers may, no
dou&t, (ith *reat +ro+riety, )arry on a 'ery )onsidera&le +art of
their +ro2e)ts (ith &orro(ed money- In 2usti)e to their
)reditors, ho(e'er, their o(n )a+ital ou*ht, in this )ase, to &e
suffi)ient to ensure, if I may say so, the )a+ital of those
)reditors/ or to render it e1tremely im+ro&a&le that those
)reditors should in)ur any loss, e'en thou*h the su))ess of the
+ro2e)t should fall 'ery mu)h short of the e1+e)tation of the
+ro2e)tors- $'en (ith this +re)aution too, the money (hi)h is
&orro(ed, and (hi)h it is meant should not &e re+aid till after a
+eriod of se'eral years, ou*ht not to &e &orro(ed of a &an0, &ut
ou*ht to &e &orro(ed u+on &ond or mort*a*e of su)h +ri'ate +eo+le
as +ro+ose to li'e u+on the interest of their money (ithout
ta0in* the trou&le themsel'es to em+loy the )a+ital, and (ho are
u+on that a))ount (illin* to lend that )a+ital to su)h +eo+le of
*ood )redit as are li0ely to 0ee+ it for se'eral years- A &an0,
indeed, (hi)h lends its money (ithout the e1+ense of stam+ed
+a+er, or of attorneys= fees for dra(in* &onds and mort*a*es, and
(hi)h a))e+ts of re+ayment u+on the easy terms of the &an0in*
)om+anies of S)otland, (ould, no dou&t, &e a 'ery )on'enient
)reditor to su)h traders and underta0ers- .ut su)h traders and
underta0ers (ould, surely, &e most in)on'enient de&tors to su)h a
&an0-
It is no( more than fi'e8and8t(enty years sin)e the +a+er
money issued &y the different &an0in* )om+anies of S)otland (as
fully equal, or rather (as some(hat more than fully equal, to
(hat the )ir)ulation of the )ountry )ould easily a&sor& and
em+loy- Those )om+anies, therefore, had so lon* a*o *i'en all the
assistan)e to the traders and other underta0ers of S)otland (hi)h
it is +ossi&le for &an0s and &an0ers, )onsistently (ith their o(n
interest, to *i'e- They had e'en done some(hat more- They had
o'ertraded a little, and had &rou*ht u+on themsel'es that loss,
or at least that diminution of +rofit, (hi)h in this +arti)ular
&usiness ne'er fails to attend the smallest de*ree of
o'ertradin*- Those traders and other underta0ers, ha'in* *ot so
mu)h assistan)e from &an0s and &an0ers, (ished to *et still more-
The &an0s, they seem to ha'e thou*ht, )ould e1tend their )redits
to (hate'er sum mi*ht &e (anted, (ithout in)urrin* any other
e1+ense &esides that of a fe( reams of +a+er- They )om+lained of
the )ontra)ted 'ie(s and dastardly s+irit of the dire)tors of
those &an0s, (hi)h did not, they said, e1tend their )redits in
+ro+ortion to the e1tension of the trade of the )ountry/ meanin*,
no dou&t, &y the e1tension of that trade the e1tension of their
o(n +ro2e)ts &eyond (hat they )ould )arry on, either (ith their
o(n )a+ital, or (ith (hat they had )redit to &orro( of +ri'ate
+eo+le in the usual (ay of &ond or mort*a*e- The &an0s, they seem
to ha'e thou*ht, (ere in honour &ound to su++ly the defi)ien)y,
and to +ro'ide them (ith all the )a+ital (hi)h they (anted to
trade (ith- The &an0s, ho(e'er, (ere of a different o+inion, and
u+on their refusin* to e1tend their )redits, some of those
traders had re)ourse to an e1+edient (hi)h, for a time, ser'ed
their +ur+ose, thou*h at a mu)h *reater e1+ense, yet as
effe)tually as the utmost e1tension of &an0 )redits )ould ha'e
done- This e1+edient (as no other than the (ell80no(n shift of
dra(in* and redra(in*/ the shift to (hi)h unfortunate traders
ha'e sometimes re)ourse (hen they are u+on the &rin0 of
&an0ru+t)y- The +ra)ti)e of raisin* money in this manner had &een
lon* 0no(n in $n*land, and durin* the )ourse of the late (ar,
(hen the hi*h +rofits of trade afforded a *reat tem+tation to
o'ertradin*, is said to ha'e )arried on to a 'ery *reat e1tent-
"rom $n*land it (as &rou*ht into S)otland, (here, in +ro+ortion
to the 'ery limited )ommer)e, and to the 'ery moderate )a+ital of
the )ountry, it (as soon )arried on to a mu)h *reater e1tent than
it e'er had &een in $n*land-
The +ra)ti)e of dra(in* and redra(in* is so (ell 0no(n to
all men of &usiness that it may +erha+s &e thou*ht unne)essary to
*i'e an a))ount of it- .ut as this &oo0 may )ome into the hands
of many +eo+le (ho are not men of &usiness, and as the effe)ts of
this +ra)ti)e u+on the &an0in* trade are not +erha+s *enerally
understood e'en &y men of &usiness themsel'es, I shall endea'our
to e1+lain it as distin)tly as I )an-
The )ustoms of mer)hants, (hi)h (ere esta&lished (hen the
&ar&arous la(s of $uro+e did not enfor)e the +erforman)e of their
)ontra)ts, and (hi)h durin* the )ourse of the t(o last )enturies
ha'e &een ado+ted into the la(s of all $uro+ean nations, ha'e
*i'en su)h e1traordinary +ri'ile*es to &ills of e1)han*e that
money is more readily ad'an)ed u+on them than u+on any other
s+e)ies of o&li*ation, es+e)ially (hen they are made +aya&le
(ithin so short a +eriod as t(o or three months after their date-
If, (hen the &ill &e)omes due, the a))e+tor does not +ay it as
soon as it is +resented, he &e)omes from that moment a &an0ru+t-
The &ill is +rotested, and returns u+on the dra(er, (ho, if he
does not immediately +ay it, &e)omes li0e(ise a &an0ru+t- If,
&efore it )ame to the +erson (ho +resents it to the a))e+tor for
+ayment, it had +assed throu*h the hands of se'eral other
+ersons, (ho had su))essi'ely ad'an)ed to one another the
)ontents of it either in money or *oods, and (ho to e1+ress that
ea)h of them had in his turn re)ei'ed those )ontents, had all of
them in their order endorsed, that is, (ritten their names u+on
the &a)0 of the &ill/ ea)h endorser &e)omes in his turn lia&le to
the o(ner of the &ill for those )ontents, and, if he fails to
+ay, he &e)omes too from that moment a &an0ru+t- Thou*h the
dra(er, a))e+tor, and endorsers of the &ill should, all of them,
&e +ersons of dou&tful )redit/ yet still the shortness of the
date *i'es some se)urity to the o(ner of the &ill- Thou*h all of
them may &e 'ery li0ely to &e)ome &an0ru+ts, it is a )han)e if
they all &e)ome so in so short a time- The house is )ra;y, says a
(eary tra'eller to himself, and (ill not stand 'ery lon*/ &ut it
is a )han)e if it falls to8ni*ht, and I (ill 'enture, therefore,
to slee+ in it to8ni*ht-
The trader A in $din&ur*h, (e shall su++ose, dra(s a &ill
u+on . in !ondon, +aya&le t(o months after date- In reality . in
!ondon o(es nothin* to A in $din&ur*h/ &ut he a*rees to a))e+t of
A=s &ill, u+on )ondition that &efore the term of +ayment he shall
redra( u+on A in $din&ur*h for the same sum, to*ether (ith the
interest and a )ommission, another &ill, +aya&le li0e(ise t(o
months after date- . a))ordin*ly, &efore the e1+iration of the
first t(o months, redra(s this &ill u+on A in $din&ur*h/ (ho
a*ain, &efore the e1+iration of the se)ond t(o months, dra(s a
se)ond &ill u+on . in !ondon, +aya&le li0e(ise t(o months after
date/ and &efore the e1+iration of the third t(o months, . in
!ondon redra(s u+on A in $din&ur*h another &ill, +aya&le also t(o
months after date- This +ra)ti)e has sometimes *one on, not only
for se'eral months, &ut for se'eral years to*ether, the &ill
al(ays returnin* u+on A in $din&ur*h, (ith the a))umulated
interest and )ommission of all the former &ills- The interest (as
fi'e +er )ent in the year, and the )ommission (as ne'er less than
one half +er )ent on ea)h draft- This )ommission &ein* re+eated
more than si1 times in the year, (hate'er money A mi*ht raise &y
this e1+edient must ne)essarily ha'e, )ost him somethin* more
than ei*ht +er )ent in the year, and sometimes a *reat deal more/
(hen either the +ri)e of the )ommission ha++ened to rise, or (hen
he (as o&li*ed to +ay )om+ound interest u+on the interest and
)ommission of former &ills- This +ra)ti)e (as )alled raisin*
money &y )ir)ulation-
In a )ountry (here the ordinary +rofits of sto)0 in the
*reater +art of mer)antile +ro2e)ts are su++osed to run &et(een
si1 and ten +er )ent, it must ha'e &een a 'ery fortunate
s+e)ulation of (hi)h the returns )ould not only re+ay the
enormous e1+ense at (hi)h the money (as thus &orro(ed for
)arryin* it on/ &ut afford, &esides, a *ood sur+lus +rofit to the
+ro2e)tor- 4any 'ast and e1tensi'e +ro2e)ts, ho(e'er, (ere
underta0en, and for se'eral years )arried on (ithout any other
fund to su++ort them &esides (hat (as raised at this enormous
e1+ense- The +ro2e)tors, no dou&t, had in their *olden dreams the
most distin)t 'ision of this *reat +rofit- U+on their a(a0in*,
ho(e'er, either at the end of their +ro2e)ts, or (hen they (ere
no lon*er a&le to )arry them on, they 'ery seldom, I &elie'e, had
the *ood fortune to find it-
The &ills A in $din&ur*h dre( u+on . in !ondon, he re*ularly
dis)ounted t(o months &efore they (ere due (ith some &an0 or
&an0er in $din&ur*h/ and the &ills (hi)h . in !ondon redre( u+on
A in $din&ur*h, he as re*ularly dis)ounted either (ith the .an0
of $n*land, or (ith some other &an0ers in !ondon- Whate'er (as
ad'an)ed u+on su)h )ir)ulatin* &ills, (as, in $din&ur*h, ad'an)ed
in the +a+er of the S)ot)h &an0s, and in !ondon, (hen they (ere
dis)ounted at the .an0 of $n*land, in the +a+er of that &an0-
Thou*h the &ills u+on (hi)h this +a+er had &een ad'an)ed (ere all
of them re+aid in their turn as soon as they &e)ame due/ yet the
'alue (hi)h had &een really ad'an)ed u+on the first &ill, (as
ne'er really returned to the &an0s (hi)h ad'an)ed it/ &e)ause,
&efore ea)h &ill &e)ame due, another &ill (as al(ays dra(n to
some(hat a *reater amount than the &ill (hi)h (as soon to &e
+aid/ and the dis)ountin* of this other &ill (as essentially
ne)essary to(ards the +ayment of that (hi)h (as soon to &e due-
This +ayment, therefore, (as alto*ether fi)titious- The stream,
(hi)h, &y means of those )ir)ulatin* &ills of e1)han*e, had on)e
&een made to run out from the )offers of the &an0s, (as ne'er
re+la)ed &y any stream (hi)h really run into them-
The +a+er (hi)h (as issued u+on those )ir)ulatin* &ills of
e1)han*e, amounted, u+on many o))asions, to the (hole fund
destined for )arryin* on some 'ast and e1tensi'e +ro2e)t of
a*ri)ulture, )ommer)e, or manufa)tures/ and not merely to that
+art of it (hi)h, had there &een no +a+er money, the +ro2e)tor
(ould ha'e &een o&li*ed to 0ee+ &y him, unem+loyed and in ready
money for ans(erin* o))asional demands- The *reater +art of this
+a+er (as, )onsequently, o'er and a&o'e the 'alue of the *old and
sil'er (hi)h (ould ha'e )ir)ulated in the )ountry, had there &een
no +a+er money- It (as o'er and a&o'e, therefore, (hat the
)ir)ulation of the )ountry )ould easily a&sor& and em+loy, and
u+on that a))ount, immediately returned u+on the &an0s in order
to &e e1)han*ed for *old and sil'er, (hi)h they (ere to find as
they )ould- It (as a )a+ital (hi)h those +ro2e)tors had 'ery
artfully )ontri'ed to dra( from those &an0s, not only (ithout
their 0no(led*e or deli&erate )onsent, &ut for some time,
+erha+s, (ithout their ha'in* the most distant sus+i)ion that
they had really ad'an)ed it-
When t(o +eo+le, (ho are )ontinually dra(in* and redra(in*
u+on one another, dis)ount their &ills al(ays (ith the same
&an0er, he must immediately dis)o'er (hat they are a&out, and see
)learly that they are tradin*, not (ith any )a+ital of their o(n,
&ut (ith the )a+ital (hi)h he ad'an)es to them- .ut this
dis)o'ery is not alto*ether so easy (hen they dis)ount their
&ills sometimes (ith one &an0er, and sometimes (ith another, and
(hen the same t(o +ersons do not )onstantly dra( and redra( u+on
one another, &ut o))asionally run the round of a *reat )ir)le of
+ro2e)tors, (ho find it for their interest to assist one another
in this method of raisin* money, and to render it, u+on that
a))ount, as diffi)ult as +ossi&le to distin*uish &et(een a real
and fi)titious &ill of e1)han*e/ &et(een a &ill dra(n &y a real
)reditor u+on a real de&tor, and a &ill for (hi)h there (as
+ro+erly no real )reditor &ut the &an0 (hi)h dis)ounted it, nor
any real de&tor &ut the +ro2e)tor (ho made use of the money- When
a &an0er had e'en made this dis)o'ery, he mi*ht sometimes ma0e it
too late, and mi*ht find that he had already dis)ounted the &ills
of those +ro2e)tors to so *reat an e1tent that, &y refusin* to
dis)ount any more, he (ould ne)essarily ma0e them all &an0ru+ts,
and thus, &y ruinin* them, mi*ht +erha+s ruin himself- "or his
o(n interest and safety, therefore, he mi*ht find it ne)essary,
in this 'ery +erilous situation, to *o on for some time,
endea'ourin*, ho(e'er, to (ithdra( *radually, and u+on that
a))ount ma0in* e'ery day *reater and *reater diffi)ulties a&out
dis)ountin*, in order to for)e those +ro2e)tors &y de*rees to
ha'e re)ourse, either to other &an0ers, or to other methods of
raisin* money/ so that he himself mi*ht, as soon as +ossi&le, *et
out of the )ir)le- The diffi)ulties, a))ordin*ly, (hi)h the .an0
of $n*land, (hi)h the +rin)i+al &an0ers in !ondon, and (hi)h e'en
the more +rudent S)ot)h &an0s &e*an, after a )ertain time, and
(hen all of them had already *one too far, to ma0e a&out
dis)ountin*, not only alarmed, &ut enra*ed in the hi*hest de*ree
those +ro2e)tors- Their o(n distress, of (hi)h this +rudent and
ne)essary reser'e of the &an0s (as, no dou&t, the immediate
o))asion, they )alled the distress of the )ountry/ and this
distress of the )ountry, they said, (as alto*ether o(in* to the
i*noran)e, +usillanimity, and &ad )ondu)t of the &an0s, (hi)h did
not *i'e a suffi)iently li&eral aid to the s+irited underta0in*s
of those (ho e1erted themsel'es in order to &eautify, im+ro'e,
and enri)h the )ountry- It (as the duty of the &an0s, they seemed
to thin0, to lend for as lon* a time, and to as *reat an e1tent
as they mi*ht (ish to &orro(- The &an0s, ho(e'er, &y refusin* in
this manner to *i'e more )redit to those to (hom they had already
*i'en a *reat deal too mu)h, too0 the only method &y (hi)h it (as
no( +ossi&le to sa'e either their o(n )redit or the +u&li) )redit
of the )ountry-
In the midst of this )lamour and distress, a ne( &an0 (as
esta&lished in S)otland for the e1+ress +ur+ose of relie'in* the
distress of the )ountry- The desi*n (as *enerous/ &ut the
e1e)ution (as im+rudent, and the nature and )auses of the
distress (hi)h it meant to relie'e (ere not, +erha+s, (ell
understood- This &an0 (as more li&eral than any other had e'er
&een, &oth in *rantin* )ash a))ounts, and in dis)ountin* &ills of
e1)han*e- With re*ard to the latter, it seems to ha'e made s)ar)e
any distin)tion &et(een real and )ir)ulatin* &ills, &ut to ha'e
dis)ounted all equally- It (as the a'o(ed +rin)i+le of this &an0
to ad'an)e, u+on any reasona&le se)urity, the (hole )a+ital (hi)h
(as to &e em+loyed in those im+ro'ements of (hi)h the returns are
the most slo( and distant, su)h as the im+ro'ements of land- To
+romote su)h im+ro'ements (as e'en said to &e the )hief of the
+u&li)8s+irited +ur+oses for (hi)h it (as instituted- .y its
li&erality in *rantin* )ash a))ounts, and in dis)ountin* &ills of
e1)han*e, it, no dou&t, issued *reat quantities of its &an0
notes- .ut those &an0 notes &ein*, the *reater +art of them, o'er
and a&o'e (hat the )ir)ulation of the )ountry )ould easily a&sor&
and em+loy, returned u+on it, in order to &e e1)han*ed for *old
and sil'er as fast as they (ere issued- Its )offers (ere ne'er
(ell filled- The )a+ital (hi)h had &een su&s)ri&ed to this &an0
at t(o different su&s)ri+tions, amounted to one hundred and si1ty
thousand +ounds, of (hi)h ei*hty +er )ent only (as +aid u+- This
sum ou*ht to ha'e &een +aid in at se'eral different instalments-
A *reat +art of the +ro+rietors, (hen they +aid in their first
instalment, o+ened a )ash a))ount (ith the &an0/ and the
dire)tors, thin0in* themsel'es o&li*ed to treat their o(n
+ro+rietors (ith the same li&erality (ith (hi)h they treated all
other men, allo(ed many of them to &orro( u+on this )ash a))ount
(hat they +aid in u+on all their su&sequent instalments- Su)h
+ayments, therefore, only +ut into one )offer (hat had the moment
&efore &een ta0en out of another- .ut had the )offers of this
&an0 &een filled e'er so (ell, its e1)essi'e )ir)ulation must
ha'e em+tied them faster than they )ould ha'e &een re+lenished &y
any other e1+edient &ut the ruinous one of dra(in* u+on !ondon,
and (hen the &ill &e)ame due, +ayin* it, to*ether (ith interest
and )ommission, &y another draft u+on the same +la)e- Its )offers
ha'in* &een filled so 'ery ill, it is said to ha'e &een dri'en to
this resour)e (ithin a 'ery fe( months after it &e*an to do
&usiness- The estates of the +ro+rietors of this &an0 (ere (orth
se'eral millions, and &y their su&s)ri+tion to the ori*inal &ond
or )ontra)t of the &an0, (ere really +led*ed for ans(erin* all
its en*a*ements- .y means of the *reat )redit (hi)h so *reat a
+led*e ne)essarily *a'e it, it (as, not(ithstandin* its too
li&eral )ondu)t, ena&led to )arry on &usiness for more than t(o
years- When it (as o&li*ed to sto+, it had in the )ir)ulation
a&out t(o hundred thousand +ounds in &an0 notes- In order to
su++ort the )ir)ulation of those notes (hi)h (ere )ontinually
returnin* u+on it as fast they (ere issued, it had &een
)onstantly in the +ra)ti)e of dra(in* &ills of e1)han*e u+on
!ondon, of (hi)h the num&er and 'alue (ere )ontinually
in)reasin*, and, (hen it sto++ed, amounted to u+(ards of si1
hundred thousand +ounds- This &an0, therefore, had, in little
more than the )ourse of t(o years, ad'an)ed to different +eo+le
u+(ards of ei*ht hundred thousand +ounds at fi'e +er )ent- U+on
the t(o hundred thousand +ounds (hi)h it )ir)ulated in &an0
notes, this fi'e +er )ent mi*ht, +erha+s, &e )onsidered as )lear
*ain, (ithout any other dedu)tion &esides the e1+ense of
mana*ement- .ut u+on u+(ards of si1 hundred thousand +ounds, for
(hi)h it (as )ontinually dra(in* &ills of e1)han*e u+on !ondon,
it (as +ayin*, in the (ay of interest and )ommission, u+(ards of
ei*ht +er )ent, and (as )onsequently losin* more than three +er
)ent u+on more than three8fourths of all its dealin*s-
The o+erations of this &an0 seem to ha'e +rodu)ed effe)ts
quite o++osite to those (hi)h (ere intended &y the +arti)ular
+ersons (ho +lanned and dire)ted it- They seem to ha'e intended
to su++ort the s+irited underta0in*s, for as su)h they )onsidered
them, (hi)h (ere at that time )arryin* on in different +arts of
the )ountry/ and at the same time, &y dra(in* the (hole &an0in*
&usiness to themsel'es, to su++lant all the other S)ot)h &an0s,
+arti)ularly those esta&lished in $din&ur*h, (hose &a)0(ardness
in dis)ountin* &ills of e1)han*e had *i'en some offen)e- This
&an0, no dou&t, *a'e some tem+orary relief to those +ro2e)tors,
and ena&led them to )arry on their +ro2e)ts for a&out t(o years
lon*er than they )ould other(ise ha'e done- .ut it there&y only
ena&led them to *et so mu)h dee+er into de&t, so that, (hen ruin
)ame, it fell so mu)h the hea'ier &oth u+on them and u+on their
)reditors- The o+erations of this &an0, therefore, instead of
relie'in*, in reality a**ra'ated in the lon*8run the distress
(hi)h those +ro2e)tors had &rou*ht &oth u+on themsel'es and u+on
their )ountry- It (ould ha'e &een mu)h &etter for themsel'es,
their )reditors, and their )ountry, had the *reater +art of them
&een o&li*ed to sto+ t(o years sooner than they a)tually did- The
tem+orary relief, ho(e'er, (hi)h this &an0 afforded to those
+ro2e)tors, +ro'ed a real and +ermanent relief to the other
S)ot)h &an0s- All the dealers in )ir)ulatin* &ills of e1)han*e,
(hi)h those other &an0s had &e)ome so &a)0(ard in dis)ountin*,
had re)ourse to this ne( &an0, (here they (ere re)ei'ed (ith o+en
arms- Those other &an0s, therefore, (ere ena&led to *et 'ery
easily out of that fatal )ir)le, from (hi)h they )ould not
other(ise ha'e disen*a*ed themsel'es (ithout in)urrin* a
)onsidera&le loss, and +erha+s too e'en some de*ree of dis)redit-
In the lon*8run, therefore, the o+erations of this &an0
in)reased the real distress of the )ountry (hi)h it meant to
relie'e/ and effe)tually relie'ed from a 'ery *reat distress
those ri'als (hom it meant to su++lant-
At the first settin* out of this &an0, it (as the o+inion of
some +eo+le that ho( fast soe'er its )offers mi*ht &e em+tied, it
mi*ht easily re+lenish them &y raisin* money u+on the se)urities
of those to (hom it had ad'an)ed its +a+er- $1+erien)e, I
&elie'e, soon )on'in)ed them that this method of raisin* money
(as &y mu)h too slo( to ans(er their +ur+ose/ and that )offers
(hi)h ori*inally (ere so ill filled, and (hi)h em+tied themsel'es
so 'ery fast, )ould &e re+lenished &y no other e1+edient &ut the
ruinous one of dra(in* &ills u+on !ondon, and (hen they &e)ame
due, +ayin* them &y other drafts u+on the same +la)e (ith
a))umulated interest and )ommission- .ut thou*h they had &een
a&le &y this method to raise money as fast as they (anted it,
yet, instead of ma0in* a +rofit, they must ha'e suffered a loss
&y e'ery su)h o+eration/ so that in the lon*8run they must ha'e
ruined themsel'es as a mer)antile )om+any, thou*h, +erha+s, not
so soon as &y the more e1+ensi'e +ra)ti)e of dra(in* and
redra(in*- They )ould still ha'e made nothin* &y the interest of
the +a+er, (hi)h, &ein* o'er and a&o'e (hat the )ir)ulation of
the )ountry )ould a&sor& and em+loy, returned u+on them, in order
to &e e1)han*ed for *old and sil'er, as fast as they issued it/
and for the +ayment of (hi)h they (ere themsel'es )ontinually
o&li*ed to &orro( money- On the )ontrary, the (hole e1+ense of
this &orro(in*, of em+loyin* a*ents to loo0 out for +eo+le (ho
had money to lend, of ne*otiatin* (ith those +eo+le, and of
dra(in* the +ro+er &ond or assi*nment, must ha'e fallen u+on
them, and ha'e &een so mu)h )lear loss u+on the &alan)e of their
a))ounts- The +ro2e)t of re+lenishin* their )offers in this
manner may &e )om+ared to that of a man (ho had a (ater8+ond from
(hi)h a stream (as )ontinually runnin* out, and into (hi)h no
stream (as )ontinually runnin*, &ut (ho +ro+osed to 0ee+ it
al(ays equally full &y em+loyin* a num&er of +eo+le to *o
)ontinually (ith &u)0ets to a (ell at some miles distan)e in
order to &rin* (ater to re+lenish it-
.ut thou*h this o+eration had +ro'ed not only +ra)ti)a&le
&ut +rofita&le to the &an0 as a mer)antile )om+any, yet the
)ountry )ould ha'e deri'ed no &enefit from it/ &ut, on the
)ontrary, must ha'e suffered a 'ery )onsidera&le loss &y it- This
o+eration )ould not au*ment in the smallest de*ree the quantity
of money to &e lent- It )ould only ha'e ere)ted this &an0 into a
sort of *eneral loan offi)e for the (hole )ountry- Those (ho
(anted to &orro( must ha'e a++lied to this &an0 instead of
a++lyin* to the +ri'ate +ersons (ho had lent it their money- .ut
a &an0 (hi)h lends money +erha+s to fi'e hundred different
+eo+le, the *reater +art of (hom its dire)tors )an 0no( 'ery
little a&out, is not li0ely to &e more 2udi)ious in the )hoi)e of
its de&tors than a +ri'ate +erson (ho lends out his money amon* a
fe( +eo+le (hom he 0no(s, and in (hose so&er and fru*al )ondu)t
he thin0s he has *ood reason to )onfide- The de&tors of su)h a
&an0 as that (hose )ondu)t I ha'e &een *i'in* some a))ount of
(ere li0ely, the *reater +art of them, to &e )himeri)al
+ro2e)tors, the dra(ers and re8dra(ers of )ir)ulatin* &ills of
e1)han*e, (ho (ould em+loy the money in e1tra'a*ant underta0in*s,
(hi)h, (ith all the assistan)e that )ould &e *i'en them, they
(ould +ro&a&ly ne'er &e a&le to )om+lete, and (hi)h, if they
should &e )om+leted, (ould ne'er re+ay the e1+ense (hi)h they had
really )ost, (ould ne'er afford a fund )a+a&le of maintainin* a
quantity of la&our equal to that (hi)h had &een em+loyed a&out
them- The so&er and fru*al de&tors of +ri'ate +ersons, on the
)ontrary, (ould &e more li0ely to em+loy the money &orro(ed in
so&er underta0in*s (hi)h (ere +ro+ortioned to their )a+itals, and
(hi)h, thou*h they mi*ht ha'e less of the *rand and the
mar'ellous, (ould ha'e more of the solid and the +rofita&le,
(hi)h (ould re+ay (ith a lar*e +rofit (hate'er had &een laid out
u+on them, and (hi)h (ould thus afford a fund )a+a&le of
maintainin* a mu)h *reater quantity of la&our than that (hi)h had
&een em+loyed a&out them- The su))ess of this o+eration,
therefore, (ithout in)reasin* in the smallest de*ree the )a+ital
of the )ountry, (ould only ha'e transferred a *reat +art of it
from +rudent and +rofita&le to im+rudent and un+rofita&le
underta0in*s-
That the industry of S)otland lan*uished for (ant of money
to em+loy it (as the o+inion of the famous 4r- !a(- .y
esta&lishin* a &an0 of a +arti)ular 0ind, (hi)h he seems to ha'e
ima*ined mi*ht issue +a+er to the amount of the (hole 'alue of
all the lands in the )ountry, he +ro+osed to remedy this (ant of
money- The arliament of S)otland, (hen he first +ro+osed his
+ro2e)t, did not thin0 +ro+er to ado+t it- It (as after(ards
ado+ted, (ith some 'ariations, &y the Du0e of Orleans, at that
time Re*ent of "ran)e- The idea of the +ossi&ility of multi+lyin*
+a+er to almost any e1tent (as the real foundation of (hat is
)alled the 4ississi++i s)heme, the most e1tra'a*ant +ro2e)t &oth
of &an0in* and sto)082o&&in* that, +erha+s, the (orld e'er sa(-
The different o+erations of this s)heme are e1+lained so fully,
so )learly, and (ith so mu)h order and distin)tness, &y 4r- du
5erney, in his $1amination of the oliti)al Refle)tions u+on
Commer)e and "inan)es of 4r- du Tot, that I shall not *i'e any
a))ount of them- The +rin)i+les u+on (hi)h it (as founded are
e1+lained &y 4r- !a( himself, in a dis)ourse )on)ernin* money and
trade, (hi)h he +u&lished in S)otland (hen he first +ro+osed his
+ro2e)t- The s+lendid &ut 'isionary ideas (hi)h are set forth in
that and some other (or0s u+on the same +rin)i+les still )ontinue
to ma0e an im+ression u+on many +eo+le, and ha'e, +erha+s, in
+art, )ontri&uted to that e1)ess of &an0in* (hi)h has of late
&een )om+lained of &oth in S)otland and in other +la)es-
The .an0 of $n*land is the *reatest &an0 of )ir)ulation in
$uro+e- It (as in)or+orated, in +ursuan)e of an a)t of
arliament, &y a )harter under the 6reat Seal, dated the E7th of
Auly, 16FG- It at that time ad'an)ed to *o'ernment the sum of one
million t(o hundred thousand +ounds, for an annuity of one
hundred thousand +ounds/ or for !F6,CCC a year interest, at the
rate of ei*ht +er )ent, and !GCCC a year for the e1+ense of
mana*ement- The )redit of the ne( *o'ernment, esta&lished &y the
Re'olution, (e may &elie'e, must ha'e &een 'ery lo(, (hen it (as
o&li*ed to &orro( at so hi*h an interest-
In 16F7 the &an0 (as allo(ed to enlar*e its )a+ital sto)0 &y
an en*raftment of !1,CC1,171 1Cs- Its (hole )a+ital sto)0
therefore, amounted at this time to !E,EC1,171 1Cs- This
en*raftment is said to ha'e &een for the su++ort of +u&li)
)redit- In 16F6, tallies had &een at forty, and fifty, and si1ty
+er )ent dis)ount, and &an0 notes at t(enty +er )ent- Durin* the
*reat re)oina*e of the sil'er, (hi)h (as *oin* on at this time,
the &an0 had thou*ht +ro+er to dis)ontinue the +ayment of its
notes, (hi)h ne)essarily o))asioned their dis)redit-
In +ursuan)e of the 7th Anne, )- 7, the &an0 ad'an)ed and
+aid into the e1)hequer the sum of !GCC,CCC/ ma0in* in all the
sum of !1,6CC,CCC (hi)h it had ad'an)ed u+on its ori*inal annuity
of !F6,CCC interest and !GCCC for e1+ense of mana*ement- In 17C?,
therefore, the )redit of *o'ernment (as as *ood as that of
+ri'ate +ersons, sin)e it )ould &orro( at si1 +er )ent interest
the )ommon le*al and mar0et rate of those times- In +ursuan)e of
the same a)t, the &an0 )an)elled e1)hequer &ills to the amount of
!1,77H,CE7 17s- 1C 1DEd- at si1 +er )ent interest, and (as at the
same time allo(ed to ta0e in su&s)ri+tions for dou&lin* its
)a+ital- In 17C?, therefore, the )a+ital of the &an0 amounted to
!G,GCE,BGB/ and it had ad'an)ed to *o'ernment the sum of
!B,B7H,CE7 17s- 1C 1DEd-
.y a )all of fifteen +er )ent in 17CF, there (as +aid in and
made sto)0 !6H6,ECG Is- Fd-/ and &y another of ten +er )ent in
171C, !HC1,GG? 1Es- 11d- In )onsequen)e of those t(o )alls,
therefore, the &an0 )a+ital amounted to !H,HHF,FFH 1Gs- ?d-
In +ursuan)e of the Brd 6eor*e I, )- ?, the &an0 deli'ered
u+ t(o millions of e1)hequer &ills to &e )an)elled- It had at
this time, therefore, ad'an)ed to *o'ernment 17s- 1Cd- In
+ursuan)e of the ?th 6eor*e 1, )- E1, the &an0 +ur)hased of the
South Sea Com+any sto)0 to the amount of 1G,CCC,CCC/ and in 17EE,
in )onsequen)e of the su&s)ri+tions (hi)h it had ta0en in for
ena&lin* it to ma0e this +ur)hase, its )a+ital sto)0 (as
in)reased &y !B,GCC,CCC- At this time, therefore, the &an0 had
ad'an)ed to the +u&li) !F,B7H,CE7 17s- 1C 1DEd-/ and its )a+ital
sto)0 amounted only to !?,FHF,FFH 1Gs- ?d- It (as u+on this
o))asion that the sum (hi)h the &an0 had ad'an)ed to the +u&li),
and for (hi)h it re)ei'ed interest, &e*an first to e1)eed its
)a+ital sto)0, or the sum for (hi)h it +aid a di'idend to the
+ro+rietors of &an0 sto)0/ or, in other (ords, that the &an0
&e*an to ha'e an undi'ided )a+ital, o'er and a&o'e its di'ided
one- It has )ontinued to ha'e an undi'ided )a+ital of the same
0ind e'er sin)e- In 17G6, the &an0 had, u+on different o))asions,
ad'an)ed to the +u&li) !11,6?6,?CC and its di'ided )a+ital had
&een raised &y different )alls and su&s)ri+tions to !1C,7?C,CCC-
The state of those t(o sums has )ontinued to &e the same e'er
sin)e- In +ursuan)e of the Gth of 6eor*e III, )- EH, the &an0
a*reed to +ay to *o'ernment for the rene(al of its )harter
!11C,CCC (ithout interest or re+ayment- This sum, therefore, did
not in)rease either of those t(o other sums-
The di'idend of the &an0 has 'aried a))ordin* to the
'ariations in the rate of the interest (hi)h it has, at different
times, re)ei'ed for the money it had ad'an)ed to the +u&li), as
(ell as a))ordin* to other )ir)umstan)es- This rate of interest
has *radually &een redu)ed from ei*ht to three +er )ent- "or some
years +ast the &an0 di'idend has &een at fi'e and a half +er
)ent-
The sta&ility of the .an0 of $n*land is equal to that of the
.ritish *o'ernment- All that it has ad'an)ed to the +u&li) must
&e lost &efore its )reditors )an sustain any loss- No other
&an0in* )om+any in $n*land )an &e esta&lished &y a)t of
arliament, or )an )onsist of more than si1 mem&ers- It a)ts, not
only as an ordinary &an0, &ut as a *reat en*ine of state- It
re)ei'es and +ays the *reater +art of the annuities (hi)h are due
to the )reditors of the +u&li), it )ir)ulates e1)hequer &ills,
and it ad'an)es to *o'ernment the annual amount of the land and
malt ta1es, (hi)h are frequently not +aid u+ till some years
thereafter- In those different o+erations, its duty to the +u&li)
may sometimes ha'e o&li*ed it, (ithout any fault of its
dire)tors, to o'ersto)0 the )ir)ulation (ith +a+er money- It
li0e(ise dis)ounts mer)hants= &ills, and has, u+on se'eral
different o))asions, su++orted the )redit of the +rin)i+al
houses, not only of $n*land, &ut of #am&ur* and #olland- U+on one
o))asion, in 176B, it is said to ha'e ad'an)ed for this +ur+ose,
in one (ee0, a&out !1,6CC,CCC, a *reat +art of it in &ullion- I
do not, ho(e'er, +retend to (arrant either the *reatness of the
sum, or the shortness of the time- U+on other o))asions, this
*reat )om+any has &een redu)ed to the ne)essity of +ayin* in
si1+en)es-
It is not &y au*mentin* the )a+ital of the )ountry, &ut &y
renderin* a *reater +art of that )a+ital a)ti'e and +rodu)ti'e
than (ould other(ise &e so, that the most 2udi)ious o+erations of
&an0in* )an in)rease the industry of the )ountry- That +art of
his )a+ital (hi)h a dealer is o&li*ed to 0ee+ &y him unem+loyed,
and in ready money, for ans(erin* o))asional demands, is so mu)h
dead sto)0, (hi)h, so lon* as it remains in this situation,
+rodu)es nothin* either to him or to his )ountry- The 2udi)ious
o+erations of &an0in* ena&le him to )on'ert this dead sto)0 into
a)ti'e and +rodu)ti'e sto)0/ into materials to (or0 u+on, into
tools to (or0 (ith, and into +ro'isions and su&sisten)e to (or0
for/ into sto)0 (hi)h +rodu)es somethin* &oth to himself and to
his )ountry- The *old and sil'er money (hi)h )ir)ulates in any
)ountry, and &y means of (hi)h the +rodu)e of its land and la&our
is annually )ir)ulated and distri&uted to the +ro+er )onsumers,
is, in the same manner as the ready money of the dealer, all dead
sto)0- It is a 'ery 'alua&le +art of the )a+ital of the )ountry,
(hi)h +rodu)es nothin* to the )ountry- The 2udi)ious o+erations
of &an0in*, &y su&stitutin* +a+er in the room of a *reat +art of
this *old and sil'er, ena&les the )ountry to )on'ert a *reat +art
of this dead sto)0 into a)ti'e and +rodu)ti'e sto)0/ into sto)0
(hi)h +rodu)es somethin* to the )ountry- The *old and sil'er
money (hi)h )ir)ulates in any )ountry may 'ery +ro+erly &e
)om+ared to a hi*h(ay, (hi)h, (hile it )ir)ulates and )arries to
mar0et all the *rass and )orn of the )ountry, +rodu)es itself not
a sin*le +ile of either- The 2udi)ious o+erations of &an0in*, &y
+ro'idin*, if I may &e allo(ed so 'iolent a meta+hor, a sort of
(a**on8(ay throu*h the air, ena&le the )ountry to )on'ert, as it
(ere, a *reat +art of its hi*h(ays into *ood +astures and
)orn8fields, and there&y to in)rease 'ery )onsidera&ly the annual
+rodu)e of its land and la&our- The )ommer)e and industry of the
)ountry, ho(e'er, it must &e a)0no(led*ed, thou*h they may &e
some(hat au*mented, )annot &e alto*ether so se)ure (hen they are
thus, as it (ere, sus+ended u+on the Daedalian (in*s of +a+er
money as (hen they tra'el a&out u+on the solid *round of *old and
sil'er- O'er and a&o'e the a))idents to (hi)h they are e1+osed
from the uns0illfulness of the )ondu)tors of this +a+er money,
they are lia&le to se'eral others, from (hi)h no +ruden)e or
s0ill of those )ondu)tors )an *uard them-
An unsu))essful (ar, for e1am+le, in (hi)h the enemy *ot
+ossession of the )a+ital, and )onsequently of that treasure
(hi)h su++orted the )redit of the +a+er money, (ould o))asion a
mu)h *reater )onfusion in a )ountry (here the (hole )ir)ulation
(as )arried on &y +a+er, than in one (here the *reater +art of it
(as )arried on &y *old and sil'er- The usual instrument of
)ommer)e ha'in* lost its 'alue, no e1)han*es )ould &e made &ut
either &y &arter or u+on )redit- All ta1es ha'in* &een usually
+aid in +a+er money, the +rin)e (ould not ha'e (here(ithal either
to +ay his troo+s, or to furnish his ma*a;ines/ and the state of
the )ountry (ould &e mu)h more irretrie'a&le than if the *reater
+art of its )ir)ulation had )onsisted in *old and sil'er- A
+rin)e, an1ious to maintain his dominions at all times in the
state in (hi)h he )an most easily defend them, ou*ht, u+on this
a))ount, to *uard, not only a*ainst that e1)essi'e multi+li)ation
of +a+er money (hi)h ruins the 'ery &an0s (hi)h issue it/ &ut
e'en a*ainst that multi+li)ation of it (hi)h ena&les them to fill
the *reater +art of the )ir)ulation of the )ountry (ith it-
The )ir)ulation of e'ery )ountry may &e )onsidered as
di'ided into t(o different &ran)hes3 the )ir)ulation of the
dealers (ith one another, and the )ir)ulation &et(een the dealers
and the )onsumers- Thou*h the same +ie)es of money, (hether +a+er
or metal, may &e em+loyed sometimes in the one )ir)ulation and
sometimes in the other, yet as &oth are )onstantly *oin* on at
the same time, ea)h requires a )ertain sto)0 of money of one 0ind
or another to )arry it on- The 'alue of the *oods )ir)ulated
&et(een the different dealers, ne'er )an e1)eed the 'alue of
those )ir)ulated &et(een the dealers and the )onsumers/ (hate'er
is &ou*ht &y the dealers, &ein* ultimately destined to &e sold to
the )onsumers- The )ir)ulation &et(een the dealers, as it is
)arried on &y (holesale, requires *enerally a +retty lar*e sum
for e'ery +arti)ular transa)tion- That &et(een the dealers and
the )onsumers, on the )ontrary, as it is *enerally )arried on &y
retail, frequently requires &ut 'ery small ones, a shillin*, or
e'en a half+enny, &ein* often suffi)ient- .ut small sums
)ir)ulate mu)h faster than lar*e ones- A shillin* )han*es masters
more frequently than a *uinea, and a half+enny more frequently
than a shillin*- Thou*h the annual +ur)hases of all the
)onsumers, therefore, are at least equal in 'alue to those of all
the dealers, they )an *enerally &e transa)ted (ith a mu)h smaller
quantity of money/ the same +ie)es, &y a more ra+id )ir)ulation,
ser'in* as the instrument of many more +ur)hases of the one 0ind
than of the other-
a+er money may &e so re*ulated as either to )onfine itself
'ery mu)h to the )ir)ulation &et(een the different dealers, or to
e1tend itself li0e(ise to a *reat +art of that &et(een the
dealers and the )onsumers- Where no &an0 notes are )ir)ulated
under ten +ounds 'alue, as in !ondon, +a+er money )onfines itself
'ery mu)h to the )ir)ulation &et(een the dealers- When a ten
+ound &an0 note )omes into the hands of a )onsumer, he is
*enerally o&li*ed to )han*e it at the first sho+ (here he has
o))asion to +ur)hase fi'e shillin*s= (orth of *oods, so that it
often returns into the hands of a dealer &efore the )onsumer has
s+ent the fortieth +art of the money- Where &an0 notes are issued
for so small sums as t(enty shillin*s, as in S)otland, +a+er
money e1tends itself to a )onsidera&le +art of the )ir)ulation
&et(een dealers and )onsumers- .efore the A)t of arliament,
(hi)h +ut a sto+ to the )ir)ulation of ten and fi'e shillin*
notes, it filled a still *reater +art of that )ir)ulation- In the
)urren)ies of North Ameri)a, +a+er (as )ommonly issued for so
small a sum as a shillin*, and filled almost the (hole of that
)ir)ulation- In some +a+er )urren)ies of 7or0shire, it (as issued
e'en for so small a sum as a si1+en)e-
Where the issuin* of &an0 notes for su)h 'ery small sums is
allo(ed and )ommonly +ra)tised, many mean +eo+le are &oth ena&led
and en)oura*ed to &e)ome &an0ers- A +erson (hose +romissory note
for fi'e +ounds, or e'en for t(enty shillin*s, (ould &e re2e)ted
&y e'ery&ody, (ill *et it to &e re)ei'ed (ithout s)ru+le (hen it
is issued for so small a sum as a si1+en)e- .ut the frequent
&an0ru+t)ies to (hi)h su)h &e**arly &an0ers must &e lia&le may
o))asion a 'ery )onsidera&le in)on'enien)y, and sometimes e'en a
'ery *reat )alamity to many +oor +eo+le (ho had re)ei'ed their
notes in +ayment-
It (ere &etter, +erha+s, that no &an0 notes (ere issued in
any +art of the 0in*dom for a smaller sum than fi'e +ounds- a+er
money (ould then, +ro&a&ly, )onfine itself, in e'ery +art of the
0in*dom, to the )ir)ulation &et(een the different dealers, as
mu)h as it does at +resent in !ondon, (here no &an0 notes are
issued under ten +ounds= 'alue/ fi'e +ounds &ein*, in most +arts
of the 0in*dom, a sum (hi)h, thou*h it (ill +ur)hase, little more
than half the quantity of *oods, is as mu)h )onsidered, and is as
seldom s+ent all at on)e, as ten +ounds are amidst the +rofuse
e1+ense of !ondon-
Where +a+er money, it is to &e o&ser'ed, is +retty mu)h
)onfined to the )ir)ulation &et(een dealers and dealers, as at
!ondon, there is al(ays +lenty of *old and sil'er- Where it
e1tends itself to a )onsidera&le +art of the )ir)ulation &et(een
dealers and )onsumers, as in S)otland, and still more in North
Ameri)a, it &anishes *old and sil'er almost entirely from the
)ountry/ almost all the ordinary transa)tions of its interior
)ommer)e &ein* thus )arried on &y +a+er- The su++ression of ten
and fi'e shillin* &an0 notes some(hat relie'ed the s)ar)ity of
*old and sil'er in S)otland/ and the su++ression of t(enty
shillin* notes (ould +ro&a&ly relie'e it still more- Those metals
are said to ha'e &e)ome more a&undant in Ameri)a sin)e the
su++ression of some of their +a+er )urren)ies- They are said,
li0e(ise, to ha'e &een more a&undant &efore the institution of
those )urren)ies-
Thou*h +a+er money should &e +retty mu)h )onfined to the
)ir)ulation &et(een dealers and dealers, yet &an0s and &an0ers
mi*ht still &e a&le to *i'e nearly the same assistan)e to the
industry and )ommer)e of the )ountry as they had done (hen +a+er
money filled almost the (hole )ir)ulation- The ready money (hi)h
a dealer is o&li*ed to 0ee+ &y him, for ans(erin* o))asional
demands, is destined alto*ether for the )ir)ulation &et(een
himself and other dealers of (hom he &uys *oods- #e has no
o))asion to 0ee+ any &y him for the )ir)ulation &et(een himself
and the )onsumers, (ho are his )ustomers, and (ho &rin* ready
money to him, instead of ta0in* any from him- Thou*h no +a+er
money, therefore, (as allo(ed to &e issued &ut for su)h sums as
(ould )onfine it +retty mu)h to the )ir)ulation &et(een dealers
and dealers, yet, +artly &y dis)ountin* real &ills of e1)han*e,
and +artly &y lendin* u+on )ash a))ounts, &an0s and &an0ers mi*ht
still &e a&le to relie'e the *reater +art of those dealers from
the ne)essity of 0ee+in* any )onsidera&le +art of their sto)0 &y
them, unem+loyed and in ready money, for ans(erin* o))asional
demands- They mi*ht still &e a&le to *i'e the utmost assistan)e
(hi)h &an0s and &an0ers )an, (ith +ro+riety, *i'e to traders of
e'ery 0ind-
To restrain +ri'ate +eo+le, it may &e said, from re)ei'in*
in +ayment the +romissory notes of a &an0er, for any sum (hether
*reat or small, (hen they themsel'es are (illin* to re)ei'e them,
or to restrain a &an0er from issuin* su)h notes, (hen all his
nei*h&ours are (illin* to a))e+t of them, is a manifest 'iolation
of that natural li&erty (hi)h it is the +ro+er &usiness of la(
not to infrin*e, &ut to su++ort- Su)h re*ulations may, no dou&t,
&e )onsidered as in some res+e)ts a 'iolation of natural li&erty-
.ut those e1ertions of the natural li&erty of a fe( indi'iduals,
(hi)h mi*ht endan*er the se)urity of the (hole so)iety, are, and
ou*ht to &e, restrained &y the la(s of all *o'ernments, of the
most free as (ell as of the most des+oti)al- The o&li*ation of
&uildin* +arty (alls, in order to +re'ent the )ommuni)ation of
fire, is a 'iolation of natural li&erty e1a)tly of the same 0ind
(ith the re*ulations of the &an0in* trade (hi)h are here
+ro+osed-
A +a+er money )onsistin* in &an0 notes, issued &y +eo+le of
undou&ted )redit, +aya&le u+on demand (ithout any )ondition, and
in fa)t al(ays readily +aid as soon as +resented, is, in e'ery
res+e)t, equal in 'alue to *old and sil'er money/ sin)e *old and
sil'er money )an at any time &e had for it- Whate'er is either
&ou*ht or sold for su)h +a+er must ne)essarily &e &ou*ht or sold
as )hea+ as it )ould ha'e &een for *old and sil'er-
The in)rease of +a+er money, it has &een said, &y au*mentin*
the quantity, and )onsequently diminishin* the 'alue of the (hole
)urren)y, ne)essarily au*ments the money +ri)e of )ommodities-
.ut as the quantity of *old and sil'er, (hi)h is ta0en from the
)urren)y, is al(ays equal to the quantity of +a+er (hi)h is added
to it, +a+er money does not ne)essarily in)rease the quantity of
the (hole )urren)y- "rom the &e*innin* of the last )entury to the
+resent time, +ro'isions ne'er (ere )hea+er in S)otland than in
17HF, thou*h, from the )ir)ulation of ten and fi'e shillin* &an0
notes, there (as then more +a+er money in the )ountry than at
+resent- The +ro+ortion &et(een the +ri)e of +ro'isions in
S)otland and that in $n*land is the same no( as &efore the *reat
multi+li)ation of &an0in* )om+anies in S)otland- Corn is, u+on
most o))asions, fully as )hea+ in $n*land as in "ran)e/ thou*h
there is a *reat deal of +a+er money in $n*land, and s)ar)e any
in "ran)e- In 17H1 and in 17HE, (hen 4r- #ume +u&lished his
oliti)al Dis)ourses, and soon after the *reat multi+li)ation of
+a+er money in S)otland, there (as a 'ery sensi&le rise in the
+ri)e of +ro'isions, o(in*, +ro&a&ly, to the &adness of the
seasons, and not to the multi+li)ation of +a+er money-
It (ould &e other(ise, indeed, (ith a +a+er money )onsistin*
in +romissory notes, of (hi)h the immediate +ayment de+ended, in
any res+e)t, either u+on the *ood (ill of those (ho issued them,
or u+on a )ondition (hi)h the holder of the notes mi*ht not
al(ays ha'e it in his +o(er to fulfil/ or of (hi)h the +ayment
(as not e1i*i&le till after a )ertain num&er of years, and (hi)h
in the meantime &ore no interest- Su)h a +a+er money (ould, no
dou&t, fall more or less &elo( the 'alue of *old and sil'er,
a))ordin* as the diffi)ulty or un)ertainty of o&tainin* immediate
+ayment (as su++osed to &e *reater or less/ or a))ordin* to the
*reater or less distan)e of time at (hi)h +ayment (as e1i*i&le-
Some years a*o the different &an0in* )om+anies of S)otland
(ere in the +ra)ti)e of insertin* into their &an0 notes, (hat
they )alled an O+tional Clause, &y (hi)h they +romised +ayment to
the &earer, either as soon as the note should &e +resented, or,
in the o+tion of the dire)tors, si1 months after su)h
+resentment, to*ether (ith the le*al interest for the said si1
months- The dire)tors of some of those &an0s sometimes too0
ad'anta*e of this o+tional )lause, and sometimes threatened those
(ho demanded *old and sil'er in e1)han*e for a )onsidera&le
num&er of their notes that they Would ta0e ad'anta*e of it,
unless su)h demanders (ould )ontent themsel'es (ith a +art of
(hat they demanded- The +romissory notes of those &an0in*
)om+anies )onstituted at that time the far *reater +art of the
)urren)y of S)otland, (hi)h this un)ertainty of +ayment
ne)essarily de*raded &elo( the 'alue of *old and sil'er money-
Durin* the )ontinuan)e of this a&use 9(hi)h +re'ailed )hiefly in
176E, 176B, and 176G:, (hile the e1)han*e &et(een !ondon and
Carlisle (as at +ar, that &et(een !ondon and Dumfries (ould
sometimes &e four +er )ent a*ainst Dumfries, thou*h this to(n is
not thirty miles distant from Carlisle- .ut at Carlisle, &ills
(ere +aid in *old and sil'er/ (hereas at Dumfries they (ere +aid
in S)ot)h &an0 notes, and the un)ertainty of *ettin* those &an0
notes e1)han*ed for *old and sil'er )oin had thus de*raded them
four +er )ent &elo( the 'alue of that )oin- The same A)t of
arliament (hi)h su++ressed ten and fi'e shillin* &an0 notes
su++ressed li0e(ise this o+tional )lause, and there&y restored
the e1)han*e &et(een $n*land and S)otland to its natural rate, or
to (hat the )ourse of trade and remittan)es mi*ht ha++en to ma0e
it-
In the +a+er )urren)ies of 7or0shire, the +ayment of so
small a sum as a si1+en)e sometimes de+ended u+on the )ondition
that the holder of the note should &rin* the )han*e of a *uinea
to the +erson (ho issued it/ a )ondition (hi)h the holders of
su)h notes mi*ht frequently find it 'ery diffi)ult to fulfil, and
(hi)h must ha'e de*raded this )urren)y &elo( the 'alue of *old
and sil'er money- An A)t of arliament a))ordin*ly de)lared all
su)h )lauses unla(ful, and su++ressed, in the same manner as in
S)otland, all +romissory notes, +aya&le to the &earer, under
t(enty shillin*s 'alue-
The +a+er )urren)ies of North Ameri)a )onsisted, not in &an0
notes +aya&le to the &earer on demand, &ut in *o'ernment +a+er,
of (hi)h the +ayment (as not e1i*i&le till se'eral years after it
(as issued/ and thou*h the )olony *o'ernments +aid no interest to
the holders of this +a+er, they de)lared it to &e, and in fa)t
rendered it, a le*al tender of +ayment for the full 'alue for
(hi)h it (as issued- .ut allo(in* the )olony se)urity to &e
+erfe)tly *ood, a hundred +ounds +aya&le fifteen years hen)e, for
e1am+le, in a )ountry (here interest at si1 +er )ent, is (orth
little more than forty +ounds ready money- To o&li*e a )reditor,
therefore, to a))e+t of this as full +ayment for a de&t of a
hundred +ounds a)tually +aid do(n in ready money (as an a)t of
su)h 'iolent in2usti)e as has s)ar)e, +erha+s, &een attem+ted &y
the *o'ernment of any other )ountry (hi)h +retended to &e free-
It &ears the e'ident mar0s of ha'in* ori*inally &een, (hat the
honest and do(nri*ht Do)tor Dou*las assures us it (as, a s)heme
of fraudulent de&tors to )heat their )reditors- The *o'ernment of
ennsyl'ania, indeed, +retended, u+on their first emission of
+a+er money, in 17EE, to render their +a+er of equal 'alue (ith
*old and sil'er &y ena)tin* +enalties a*ainst all those (ho made
any differen)e in the +ri)e of their *oods (hen they sold them
for a )olony +a+er, and (hen they sold them for *old and sil'er/
a re*ulation equally tyranni)al, &ut mu)h less effe)tual than
that (hi)h it (as meant to su++ort- A +ositi'e la( may render a
shillin* a le*al tender for *uinea, &e)ause it may dire)t the
)ourts of 2usti)e to dis)har*e the de&tor (ho has made that
tender- .ut no +ositi'e la( )an o&li*e a +erson (ho sells *oods,
and (ho is at li&erty to sell or not to sell as he +leases, to
a))e+t of a shillin* as equi'alent to a *uinea in the +ri)e of
them- Not(ithstandin* any re*ulation of this 0ind, it a++eared &y
the )ourse of e1)han*e (ith 6reat .ritain, that a hundred +ounds
sterlin* (as o))asionally )onsidered as equi'alent, in some of
the )olonies, to a hundred and thirty +ounds, and in others to so
*reat a sum as ele'en hundred +ounds )urren)y/ this differen)e in
the 'alue arisin* from the differen)e in the quantity of +a+er
emitted in the different )olonies, and in the distan)e and
+ro&a&ility of the term of its final dis)har*e and redem+tion-
No la(, therefore, )ould &e more equita&le than the A)t of
arliament, so un2ustly )om+lained of in the )olonies, (hi)h
de)lared that no +a+er )urren)y to &e emitted there in time
)omin* should &e a le*al tender of +ayment-
ennsyl'ania (as al(ays more moderate in its emissions of
+a+er money than any other of our )olonies- Its +a+er )urren)y,
a))ordin*ly, is said ne'er to ha'e sun0 &elo( the 'alue of the
*old and sil'er (hi)h (as )urrent in the )olony &efore the first
emission of its +a+er money- .efore that emission, the )olony had
raised the denomination of its )oin, and had, &y a)t of assem&ly,
ordered fi'e shillin*s sterlin* to +ass in the )olony for si1 and
three+en)e, and after(ards for si1 and ei*ht+en)e- A +ound )olony
)urren)y, therefore, e'en (hen that )urren)y (as *old and sil'er,
(as more than thirty +er )ent &elo( the 'alue of a +ound
sterlin*, and (hen that )urren)y (as turned into +a+er it (as
seldom mu)h more than thirty +er )ent &elo( that 'alue- The
+reten)e for raisin* the denomination of the )oin, (as to +re'ent
the e1+ortation of *old and sil'er, &y ma0in* equal quantities of
those metals +ass for *reater sums in the )olony than they did in
the mother )ountry- It (as found, ho(e'er, that the +ri)e of all
*oods from the mother )ountry rose e1a)tly in +ro+ortion as they
raised the denomination of their )oin, so that their *old and
sil'er (ere e1+orted as fast as e'er-
The +a+er of ea)h )olony &ein* re)ei'ed in the +ayment of
the +ro'in)ial ta1es, for the full 'alue for (hi)h it had &een
issued, it ne)essarily deri'ed from this use some additional
'alue o'er and a&o'e (hat it (ould ha'e had from the real or
su++osed distan)e of the term of its final dis)har*e and
redem+tion- This additional 'alue (as *reater or less, a))ordin*
as the quantity of +a+er issued (as more or less a&o'e (hat )ould
&e em+loyed in the +ayment of the ta1es of the +arti)ular )olony
(hi)h issued it- It (as in all the )olonies 'ery mu)h a&o'e (hat
)ould &e em+loyed in this manner-
A +rin)e (ho should ena)t that a )ertain +ro+ortion of his
ta1es should &e +aid in a +a+er money of a )ertain 0ind mi*ht
there&y *i'e a )ertain 'alue to this +a+er money, e'en thou*h the
term of its final dis)har*e and redem+tion should de+end
alto*ether u+on the (ill of the +rin)e- If the &an0 (hi)h issued
this +a+er (as )areful to 0ee+ the quantity of it al(ays some(hat
&elo( (hat )ould easily &e em+loyed in this manner, the demand
for it mi*ht &e su)h as to ma0e it e'en &ear a +remium, or sell
for some(hat more in the mar0et than the quantity of *old or
sil'er )urren)y for (hi)h it (as issued- Some +eo+le a))ount in
this manner for (hat is )alled the A*io of the &an0 of Amsterdam,
or for the su+eriority of &an0 money o'er )urrent money/ thou*h
this &an0 money, as they +retend, )annot &e ta0en out of the &an0
at the (ill of the o(ner- The *reater +art of forei*n &ills of
e1)han*e must &e +aid in &an0 money, that is, &y a transfer in
the &oo0s of the &an0/ and the dire)tors of the &an0, they
alle*e, are )areful to 0ee+ the (hole quantity of &an0 money
al(ays &elo( (hat this use o))asions a demand for- It is u+on
this a))ount, they say, that &an0 money sells for a +remium, or
&ears an a*io of four or fi'e +er )ent a&o'e the same nominal sum
of the *old and sil'er )urren)y of the )ountry- This a))ount of
the &an0 of Amsterdam, ho(e'er, it (ill a++ear hereafter, is in a
*reat measure )himeri)al-
A +a+er )urren)y (hi)h falls &elo( the 'alue of *old and
sil'er )oin does not there&y sin0 the 'alue of those metals, or
o))asion equal quantities of them to e1)han*e for a smaller
quantity of *oods of any other 0ind- The +ro+ortion &et(een the
'alue of *old and sil'er and that of *oods of any other 0ind
de+ends in all )ases not u+on the nature or quantity of any
+arti)ular +a+er money, (hi)h may &e )urrent in any +arti)ular
)ountry, &ut u+on the ri)hness or +o'erty of the mines, (hi)h
ha++en at any +arti)ular time to su++ly the *reat mar0et of the
)ommer)ial (orld (ith those metals- It de+ends u+on the
+ro+ortion &et(een the quantity of la&our (hi)h is ne)essary in
order to &rin* a )ertain quantity of *old and sil'er to mar0et,
and that (hi)h is ne)essary in order to &rin* thither a )ertain
quantity of any other sort of *oods-
If &an0ers are restrained from issuin* any )ir)ulatin* &an0
notes, or notes +aya&le to the &earer, for less than a )ertain
sum, and if they are su&2e)ted to the o&li*ation of an immediate
and un)onditional +ayment of su)h &an0 notes as soon as
+resented, their trade may, (ith safety to the +u&li), &e
rendered in all other res+e)ts +erfe)tly free- The late
multi+li)ation of &an0in* )om+anies in &oth +arts of the United
%in*dom, an e'ent &y (hi)h many +eo+le ha'e &een mu)h alarmed,
instead of diminishin*, in)reases the se)urity of the +u&li)- It
o&li*es all of them to &e more )ir)ums+e)t in their )ondu)t, and,
&y not e1tendin* their )urren)y &eyond its due +ro+ortion to
their )ash, to *uard themsel'es a*ainst those mali)ious runs
(hi)h the ri'alshi+ of so many )om+etitors is al(ays ready to
&rin* u+on them- It restrains the )ir)ulation of ea)h +arti)ular
)om+any (ithin a narro(er )ir)le, and redu)es their )ir)ulatin*
notes to a smaller num&er- .y di'idin* the (hole )ir)ulation into
a *reater num&er of +arts, the failure of any one )om+any, an
a))ident (hi)h, in the )ourse of thin*s, must sometimes ha++en,
&e)omes of less )onsequen)e to the +u&li)- This free )om+etition,
too, o&li*es all &an0ers to &e more li&eral in their dealin*s
(ith their )ustomers, lest their ri'als should )arry them a(ay-
In *eneral, if any &ran)h of trade, or any di'ision of la&our, &e
ad'anta*eous to the +u&li), the freer and more *eneral the
)om+etition, it (ill al(ays &e the more so-
C#AT$R III
Of the A))umulation of Ca+ital, or of rodu)ti'e and Un+rodu)ti'e
!a&our
T#$R$ is one sort of la&our (hi)h adds to the 'alue of the
su&2e)t u+on (hi)h it is &esto(ed3 there is another (hi)h has no
su)h effe)t- The former, as it +rodu)es a 'alue, may &e )alled
+rodu)ti'e/ the latter, un+rodu)ti'e la&our- Thus the la&our of a
manufa)turer adds, *enerally, to the 'alue of the materials (hi)h
he (or0s u+on, that of his o(n maintenan)e, and of his master=s
+rofit- The la&our of a menial ser'ant, on the )ontrary, adds to
the 'alue of nothin*- Thou*h the manufa)turer has his (a*es
ad'an)ed to him &y his master, he, in reality, )osts him no
e1+ense, the 'alue of those (a*es &ein* *enerally restored,
to*ether (ith a +rofit, in the im+ro'ed 'alue of the su&2e)t u+on
(hi)h his la&our is &esto(ed- .ut the maintenan)e of a menial
ser'ant ne'er is restored- A man *ro(s ri)h &y em+loyin* a
multitude of manufa)turers3 he *ro(s +oor &y maintainin* a
multitude of menial ser'ants- The la&our of the latter, ho(e'er,
has its 'alue, and deser'es its re(ard as (ell as that of the
former- .ut the la&our of the manufa)turer fi1es and reali;es
itself in some +arti)ular su&2e)t or 'endi&le )ommodity, (hi)h
lasts for some time at least after that la&our is +ast- It is, as
it (ere, a )ertain quantity of la&our sto)0ed and stored u+ to &e
em+loyed, if ne)essary, u+on some other o))asion- That su&2e)t,
or (hat is the same thin*, the +ri)e of that su&2e)t, )an
after(ards, if ne)essary, +ut into motion a quantity of la&our
equal to that (hi)h had ori*inally +rodu)ed it- The la&our of the
menial ser'ant, on the )ontrary, does not fi1 or reali;e itself
in any +arti)ular su&2e)t or 'endi&le )ommodity- #is ser'i)es
*enerally +erish in the 'ery instant of their +erforman)e, and
seldom lea'e any tra)e or 'alue &ehind them for (hi)h an equal
quantity of ser'i)e )ould after(ards &e +ro)ured-
The la&our of some of the most res+e)ta&le orders in the
so)iety is, li0e that of menial ser'ants, un+rodu)ti'e of any
'alue, and does not fi1 or reali;e itself in any +ermanent
su&2e)t/ or 'endi&le )ommodity, (hi)h endures after that la&our
is +ast, and for (hi)h an equal quantity of la&our )ould
after(ards &e +ro)ured- The so'erei*n, for e1am+le, (ith all the
offi)ers &oth of 2usti)e and (ar (ho ser'e under him, the (hole
army and na'y, are un+rodu)ti'e la&ourers- They are the ser'ants
of the +u&li), and are maintained &y a +art of the annual +rodu)e
of the industry of other +eo+le- Their ser'i)e, ho( honoura&le,
ho( useful, or ho( ne)essary soe'er, +rodu)es nothin* for (hi)h
an equal quantity of ser'i)e )an after(ards &e +ro)ured- The
+rote)tion, se)urity, and defen)e of the )ommon(ealth, the effe)t
of their la&our this year (ill not +ur)hase its +rote)tion,
se)urity, and defen)e for the year to )ome- In the same )lass
must &e ran0ed, some &oth of the *ra'est and most im+ortant, and
some of the most fri'olous +rofessions3 )hur)hmen, la(yers,
+hysi)ians, men of letters of all 0inds/ +layers, &uffoons,
musi)ians, o+era8sin*ers, o+era8dan)ers, et)- The la&our of the
meanest of these has a )ertain 'alue, re*ulated &y the 'ery same
+rin)i+les (hi)h re*ulate that of e'ery other sort of la&our/ and
that of the n o&lest and most useful, HC +rodu)es nothin* (hi)h
)ould after(ards +ur)hase or +ro)ure an equal quantity of la&our-
!i0e the de)lamation of the a)tor, the haran*ue of the orator, or
the tune of the musi)ian, the (or0 of all of them +erishes in the
'ery instant of its +rodu)tion-
.oth +rodu)ti'e and un+rodu)ti'e la&ourers, and those (ho do
not la&our at all, are all equally maintained &y the annual
+rodu)e of the land and la&our of the )ountry- This +rodu)e, ho(
*reat soe'er, )an ne'er &e infinite, &ut must ha'e )ertain
limits- A))ordin*, therefore, as a smaller or *reater +ro+ortion
of it is in any one year em+loyed in maintainin* un+rodu)ti'e
hands, the more in the one )ase and the less in the other (ill
remain for the +rodu)ti'e, and the ne1t year=s +rodu)e (ill &e
*reater or smaller a))ordin*ly/ the (hole annual +rodu)e, if (e
e1)e+t the s+ontaneous +rodu)tions of the earth, &ein* the effe)t
of +rodu)ti'e la&our-
Thou*h the (hole annual +rodu)e of the land and la&our of
e'ery )ountry is, no dou&t, ultimately destined for su++lyin* the
)onsum+tion of its inha&itants, and for +ro)urin* a re'enue to
them, yet (hen it first )omes either from the *round, or from the
hands of the +rodu)ti'e la&ourers, it naturally di'ides itself
into t(o +arts- One of them, and frequently the lar*est, is, in
the first +la)e, destined for re+la)in* a )a+ital, or for
rene(in* the +ro'isions, materials, and finished (or0, (hi)h had
&een (ithdra(n from a )a+ital/ the other for )onstitutin* a
re'enue either to the o(ner of this )a+ital, as the +rofit of his
sto)0, or to some other +erson, as the rent of his land- Thus, of
the +rodu)e of land, one +art re+la)es the )a+ital of the farmer/
the other +ays his +rofit and the rent of the landlord/ and thus
)onstitutes a re'enue &oth to the o(ner of this )a+ital, as the
+rofits of his sto)0/ and to some other +erson, as the rent of
his land- Of the +rodu)e of a *reat manufa)tory, in the same
manner, one +art, and that al(ays the lar*est, re+la)es the
)a+ital of the underta0er of the (or0/ the other +ays his +rofit,
and thus )onstitutes a re'enue to the o(ner of this )a+ital-
That +art of the annual +rodu)e of the land and la&our of
any )ountry (hi)h re+la)es a )a+ital ne'er is immediately
em+loyed to maintain any &ut +rodu)ti'e hands- It +ays the (a*es
of +rodu)ti'e la&our only- That (hi)h is immediately destined for
)onstitutin* a re'enue, either as +rofit or as rent, may maintain
indifferently either +rodu)ti'e or un+rodu)ti'e hands-
Whate'er +art of his sto)0 a man em+loys as a )a+ital, he
al(ays e1+e)ts is to &e re+la)ed to him (ith a +rofit- #e em+loys
it, therefore, in maintainin* +rodu)ti'e &ands only/ and after
ha'in* ser'ed in the fun)tion of a )a+ital to him, it )onstitutes
a re'enue to them- Whene'er he em+loys any +art of it in
maintainin* un+rodu)ti'e hands of any 0ind, that +art is, from
that moment, (ithdra(n from his )a+ital, and +la)ed in his sto)0
reser'ed for immediate )onsum+tion-
Un+rodu)ti'e la&ourers, and those (ho do not la&our at all,
are all maintained &y re'enue/ either, first, &y that +art of the
annual +rodu)e (hi)h is ori*inally destined for )onstitutin* a
re'enue to some +arti)ular +ersons, either as the rent of land or
as the +rofits of sto)0/ or, se)ondly, &y that +art (hi)h, thou*h
ori*inally destined for re+la)in* a )a+ital and for maintainin*
+rodu)ti'e la&ourers only, yet (hen it )omes into their hands
(hate'er +art of it is o'er and a&o'e their ne)essary su&sisten)e
may &e em+loyed in maintainin* indifferently either +rodu)ti'e or
un+rodu)ti'e hands- Thus, not only the *reat landlord or the ri)h
mer)hant, &ut e'en the )ommon (or0man, if his (a*es are
)onsidera&le, may maintain a menial ser'ant/ or he may sometimes
*o to a +lay or a +u++etsho(, and so )ontri&ute his share to(ards
maintainin* one set of un+rodu)ti'e la&ourers/ or he may +ay some
ta1es, and thus hel+ to maintain another set, more honoura&le and
useful indeed, &ut equally un+rodu)ti'e- No +art of the annual
+rodu)e, ho(e'er, (hi)h had &een ori*inally destined to re+la)e a
)a+ital, is e'er dire)ted to(ards maintainin* un+rodu)ti'e hands
till after it has +ut into motion its full )om+lement of
+rodu)ti'e la&our, or all that it )ould +ut into motion in the
(ay in (hi)h it (as em+loyed- The (or0man must ha'e earned his
(a*es &y (or0 done &efore he )an em+loy any +art of them in this
manner- That +art, too, is *enerally &ut a small one- It is his
s+are re'enue only, of (hi)h +rodu)ti'e la&ourers ha'e seldom a
*reat deal- They *enerally ha'e some, ho(e'er/ and in the +ayment
of ta1es the *reatness of their num&er may )om+ensate, in some
measure, the smallness of their )ontri&ution- The rent of land
and the +rofits of sto)0 are e'ery(here, therefore, the +rin)i+al
sour)es from (hi)h un+rodu)ti'e hands deri'e their su&sisten)e-
These are the t(o sorts of re'enue of (hi)h the o(ners ha'e
*enerally most to s+are- They mi*ht &oth maintain indifferently
either +rodu)ti'e or un+rodu)ti'e hands- They seem, ho(e'er, to
ha'e some +redile)tion for the latter- The e1+ense of a *reat
lord feeds *enerally more idle than industrious +eo+le- The ri)h
mer)hant, thou*h (ith his )a+ital he maintains industrious +eo+le
only, yet &y his e1+ense, that is, &y the em+loyment of his
re'enue, he feeds )ommonly the 'ery same sort as the *reat lord-
The +ro+ortion, therefore, &et(een the +rodu)ti'e and
un+rodu)ti'e hands, de+ends 'ery mu)h in e'ery )ountry u+on the
+ro+ortion &et(een that +art of the annual +rodu)e, (hi)h, as
soon as it )omes either from the *round or from the hands of the
+rodu)ti'e la&ourers, is destined for re+la)in* a )a+ital, and
that (hi)h is destined for )onstitutin* a re'enue, either as rent
or as +rofit- This +ro+ortion is 'ery different in ri)h from (hat
it is in +oor )ountries-
Thus, at +resent, in the o+ulent )ountries of $uro+e, a 'ery
lar*e, frequently the lar*est +ortion of the +rodu)e of the land
is destined for re+la)in* the )a+ital of the ri)h and inde+endent
farmer/ the other for +ayin* his +rofits and the rent of the
landlord- .ut an)iently, durin* the +re'alen)y of the feudal
*o'ernment, a 'ery small +ortion of the +rodu)e (as suffi)ient to
re+la)e the )a+ital em+loyed in )ulti'ation- It )onsisted
)ommonly in a fe( (ret)hed )attle, maintained alto*ether &y the
s+ontaneous +rodu)e of un)ulti'ated land, and (hi)h mi*ht,
therefore, &e )onsidered as a +art of that s+ontaneous +rodu)e-
It *enerally, too, &elon*ed to the landlord, and (as &y him
ad'an)ed to the o))u+iers of the land- All the rest of the
+rodu)e +ro+erly &elon*ed to him too, either as rent for his
land, or as +rofit u+on this +altry )a+ital- The o))u+iers of
land (ere *enerally &ondmen, (hose +ersons and effe)ts (ere
equally his +ro+erty- Those (ho (ere not &ondmen (ere tenants at
(ill, and thou*h the rent (hi)h they +aid (as often nominally
little more than a quit8rent, it really amounted to the (hole
+rodu)e of the land- Their lord )ould at all times )ommand their
la&our in +ea)e and their ser'i)e in (ar- Thou*h they li'ed at a
distan)e from his house, they (ere equally de+endent u+on him as
his retainers (ho li'ed in it- .ut the (hole +rodu)e of the land
undou&tedly &elon*s to him (ho )an dis+ose of the la&our and
ser'i)e of all those (hom it maintains- In the +resent state of
$uro+e, the share of the landlord seldom e1)eeds a third,
sometimes not a fourth +art of the (hole +rodu)e of the land- The
rent of land, ho(e'er, in all the im+ro'ed +arts of the )ountry,
has &een tri+led and quadru+led sin)e those an)ient times/ and
this third or fourth +art of the annual +rodu)e is, it seems,
three or four times *reater than the (hole had &een &efore- In
the +ro*ress of im+ro'ement, rent, thou*h it in)reases in
+ro+ortion to the e1tent, diminishes in +ro+ortion to the +rodu)e
of the land-
In the o+ulent )ountries of $uro+e, *reat )a+itals are at
+resent em+loyed in trade and manufa)tures- In the an)ient state,
the little trade that (as stirrin*, and the fe( homely and )oarse
manufa)tures that (ere )arried on, required &ut 'ery small
)a+itals- These, ho(e'er, must ha'e yielded 'ery lar*e +rofits-
The rate of interest (as no(here less than ten +er )ent, and
their +rofits must ha'e &een suffi)ient to afford this *reat
interest- At +resent the rate of interest, in the im+ro'ed +arts
of $uro+e, is no(here hi*her than si1 +er )ent, and in some of
the most im+ro'ed it is so lo( as four, three, and t(o +er )ent-
Thou*h that +art of the re'enue of the inha&itants (hi)h is
deri'ed from the +rofits of sto)0 is al(ays mu)h *reater in ri)h
than in +oor )ountries, it is &e)ause the sto)0 is mu)h *reater3
in +ro+ortion to the sto)0 the +rofits are *enerally mu)h less-
That +art of the annual +rodu)e, therefore, (hi)h, as soon
as it )omes either from the *round or from the hands of the
+rodu)ti'e la&ourers, is destined for re+la)in* a )a+ital, is not
only mu)h *reater in ri)h than in +oor )ountries, &ut &ears a
mu)h *reater +ro+ortion to that (hi)h is immediately destined for
)onstitutin* a re'enue either as rent or as +rofit- The funds
destined for the maintenan)e of +rodu)ti'e la&our are not only
mu)h *reater in the former than in the latter, &ut &ear a mu)h
*reater +ro+ortion to those (hi)h, thou*h they may &e em+loyed to
maintain either +rodu)ti'e or un+rodu)ti'e hands, ha'e *enerally
a +redile)tion for the latter-
The +ro+ortion &et(een those different funds ne)essarily
determines in e'ery )ountry the *eneral )hara)ter of the
inha&itants as to industry or idleness- We are more industrious
than our forefathers/ &e)ause in the +resent times the funds
destined for the maintenan)e of industry are mu)h *reater in
+ro+ortion to those (hi)h are li0ely to &e em+loyed in the
maintenan)e of idleness than they (ere t(o or three )enturies
a*o- Our an)estors (ere idle for (ant of a suffi)ient
en)oura*ement to industry- It is &etter, says the +ro'er&, to
+lay for nothin* than to (or0 for nothin*- In mer)antile and
manufa)turin* to(ns, (here the inferior ran0s of +eo+le are
)hiefly maintained &y the em+loyment of )a+ital, they are in
*eneral industrious, so&er, and thri'in*/ as in many $n*lish, and
in most Dut)h to(ns- In those to(ns (hi)h are +rin)i+ally
su++orted &y the )onstant or o))asional residen)e of a )ourt, and
in (hi)h the inferior ran0s of +eo+le are )hiefly maintained &y
the s+endin* of re'enue, they are in *eneral idle, dissolute, and
+oor/ as at Rome, 5ersailles, Com+ie*ne, and "ontaine&leu- If you
e1)e+t Rouen and .ordeau1, there is little trade or industry in
any of the +arliament to(ns of "ran)e/ and the inferior ran0s of
+eo+le, &ein* elderly maintained &y the e1+ense of the mem&ers of
the )ourts of 2usti)e, and of those (ho )ome to +lead &efore
them, are in *eneral idle and +oor- The *reat trade of Rouen and
.ordeau1 seems to &e alto*ether the effe)t of their situation-
Rouen is ne)essarily the entre+ot of almost all the *oods (hi)h
are &rou*ht either from forei*n )ountries, or from the maritime
+ro'in)es of "ran)e, for the )onsum+tion of the *reat )ity of
aris- .ordeau1 is in the same manner the entre+ot of the (ines
(hi)h *ro( u+on the &an0s of the 6aronne, and of the ri'ers (hi)h
run into it, one of the ri)hest (ine )ountries in the (orld, and
(hi)h seems to +rodu)e the (ine fittest for e1+ortation, or &est
suited to the taste of forei*n nations- Su)h ad'anta*eous
situations ne)essarily attra)t a *reat )a+ital &y the *reat
em+loyment (hi)h they afford it/ and the em+loyment of this
)a+ital is the )ause of the industry of those t(o )ities- In the
other +arliament to(ns of "ran)e, 'ery little more )a+ital seems
to &e em+loyed than (hat is ne)essary for su++lyin* their o(n
)onsum+tion/ that is, little more than the smallest )a+ital (hi)h
)an &e em+loyed in them- The same thin* may &e said of aris,
4adrid, and 5ienna- Of those three )ities, aris is &y far the
most industrious/ &ut aris itself is the +rin)i+al mar0et of all
the manufa)tures esta&lished at aris, and its o(n )onsum+tion is
the +rin)i+al o&2e)t of all the trade (hi)h it )arries on-
!ondon, !is&on, and Co+enha*en, are, +erha+s, the only three
)ities in $uro+e (hi)h are &oth the )onstant residen)e of a
)ourt, and )an at the same time &e )onsidered as tradin* )ities,
or as )ities (hi)h trade not only for their o(n )onsum+tion, &ut
for that of other )ities and )ountries- The situation of all the
three is e1tremely ad'anta*eous, and naturally fits them to &e
the entre+ots of a *reat +art of the *oods destined for the
)onsum+tion of distant +la)es- In a )ity (here a *reat re'enue is
s+ent, to em+loy (ith ad'anta*e a )a+ital for any other +ur+ose
than for su++lyin* the )onsum+tion of that )ity is +ro&a&ly more
diffi)ult than in one in (hi)h the inferior ran0s of +eo+le ha'e
no other maintenan)e &ut (hat they deri'e from the em+loyment of
su)h a )a+ital- The idleness of the *reater +art of the +eo+le
(ho are maintained &y the e1+ense of re'enue )orru+ts, it is
+ro&a&le, the industry of those (ho ou*ht to &e maintained &y the
em+loyment of )a+ital, and renders it less ad'anta*eous to em+loy
a )a+ital there than in other +la)es- There (as little trade or
industry in $din&ur*h &efore the union- When the S)ot)h
arliament (as no lon*er to &e assem&led in it, (hen it )eased to
&e the ne)essary residen)e of the +rin)i+al no&ility and *entry
of S)otland, it &e)ame a )ity of some trade and industry- It
still )ontinues, ho(e'er, to &e the residen)e of the +rin)i+al
)ourts of 2usti)e in S)otland, of the .oards of Customs and
$1)ise, et)- A )onsidera&le re'enue, therefore, still )ontinues
to &e s+ent in it- In trade and industry it is mu)h inferior to
6las*o(, of (hi)h the inha&itants are )hiefly maintained &y the
em+loyment of )a+ital- The inha&itants of a lar*e 'illa*e, it has
sometimes &een o&ser'ed, after ha'in* made )onsidera&le +ro*ress
in manufa)tures, ha'e &e)ome idle and +oor in )onsequen)e of a
*reat lord ha'in* ta0en u+ his residen)e in their nei*h&ourhood-
The +ro+ortion &et(een )a+ital and re'enue, therefore, seems
e'ery(here to re*ulate the +ro+ortion &et(een industry and
idleness- Where'er )a+ital +redominates, industry +re'ails3
(here'er re'enue, idleness- $'ery in)rease or diminution of
)a+ital, therefore, naturally tends to in)rease or diminish the
real quantity of industry, the num&er of +rodu)ti'e hands, and
)onsequently the e1)han*ea&le 'alue of the annual +rodu)e of the
land and la&our of the )ountry, the real (ealth and re'enue of
all its inha&itants-
Ca+itals are in)reased &y +arsimony, and diminished &y
+rodi*ality and mis)ondu)t-
Whate'er a +erson sa'es from his re'enue he adds to his
)a+ital, and either em+loys it himself in maintainin* an
additional num&er of +rodu)ti'e hands, or ena&les some other
+erson to do so, &y lendin* it to him for an interest, that is,
for a share of the +rofits- As the )a+ital of an indi'idual )an
&e in)reased only &y (hat he sa'es from his annual re'enue or his
annual *ains, so the )a+ital of a so)iety, (hi)h is the same (ith
that of all the indi'iduals (ho )om+ose it, )an &e in)reased only
in the same manner-
arsimony, and not industry, is the immediate )ause of the
in)rease of )a+ital- Industry, indeed, +ro'ides the su&2e)t (hi)h
+arsimony a))umulates- .ut (hate'er industry mi*ht a)quire, if
+arsimony did not sa'e and store u+, the )a+ital (ould ne'er &e
the *reater-
arsimony, &y in)reasin* the fund (hi)h is destined for the
maintenan)e of +rodu)ti'e hands, tends to in)rease the num&er of
those hands (hose la&our adds to the 'alue of the su&2e)t u+on
(hi)h it is &esto(ed- It tends, therefore, to in)rease the
e1)han*ea&le 'alue of the annual +rodu)e of the land and la&our
of the )ountry- It +uts into motion an additional quantity of
industry, (hi)h *i'es an additional 'alue to the annual +rodu)e-
What is annually sa'ed is as re*ularly )onsumed as (hat is
annually s+ent, and nearly in the same time too/ &ut it is
)onsumed &y a different set of +eo+le- That +ortion of his
re'enue (hi)h a ri)h man annually s+ends is in most )ases
)onsumed &y idle *uests and menial ser'ants, (ho lea'e nothin*
&ehind them in return for their )onsum+tion- That +ortion (hi)h
he annually sa'es, as for the sa0e of the +rofit it is
immediately em+loyed as a )a+ital, is )onsumed in the same
manner, and nearly in the same time too, &ut &y a different set
of +eo+le, &y la&ourers, manufa)turers, and artifi)ers, (ho
re+rodu)e (ith a +rofit the 'alue of their annual )onsum+tion-
#is re'enue, (e shall su++ose, is +aid him in money- #ad he s+ent
the (hole, the food, )lothin*, and lod*in*, (hi)h the (hole )ould
ha'e +ur)hased, (ould ha'e &een distri&uted amon* the former set
of +eo+le- .y sa'in* a +art of it, as that +art is for the sa0e
of the +rofit immediately em+loyed as a )a+ital either &y himself
or &y some other +erson, the food, )lothin*, and lod*in*, (hi)h
may &e +ur)hased (ith it, are ne)essarily reser'ed for the
latter- The )onsum+tion is the same, &ut the )onsumers are
different-
.y (hat a fru*al man annually sa'es, he not only affords
maintenan)e to an additional num&er of +rodu)ti'e hands, for that
or the ensuin* year, &ut, li0e the founder of a +u&li) (or0house,
he esta&lishes as it (ere a +er+etual fund for the maintenan)e of
an equal num&er in all times to )ome- The +er+etual allotment and
destination of this fund, indeed, is not al(ays *uarded &y any
+ositi'e la(, &y any trust8ri*ht or deed of mortmain- It is
al(ays *uarded, ho(e'er, &y a 'ery +o(erful +rin)i+le, the +lain
and e'ident interest of e'ery indi'idual to (hom any share of it
shall e'er &elon*- No +art of it )an e'er after(ards &e em+loyed
to maintain any &ut +rodu)ti'e hands (ithout an e'ident loss to
the +erson (ho thus +er'erts it from its +ro+er destination-
The +rodi*al +er'erts it in this manner- .y not )onfinin*
his e1+ense (ithin his in)ome, he en)roa)hes u+on his )a+ital-
!i0e him (ho +er'erts the re'enues of some +ious foundation to
+rofane +ur+oses, he +ays the (a*es of idleness (ith those funds
(hi)h the fru*ality of his forefathers had, as it (ere,
)onse)rated to the maintenan)e of industry- .y diminishin* the
funds destined for the em+loyment of +rodu)ti'e la&our, he
ne)essarily diminishes, so far as it de+ends u+on him, the
quantity of that la&our (hi)h adds a 'alue to the su&2e)t u+on
(hi)h it is &esto(ed, and, )onsequently, the 'alue of the annual
+rodu)e of the land and la&our of the (hole )ountry, the real
(ealth and re'enue of its inha&itants- If the +rodi*ality of some
(as not )om+ensated &y the fru*ality of others, the )ondu)t of
e'ery +rodi*al, &y feedin* the idle (ith the &read of the
industrious, tends not only to &e**ar himself, &ut to im+o'erish
his )ountry-
Thou*h the e1+ense of the +rodi*al should &e alto*ether in
home8made, and no +art of it in forei*n )ommodities, its effe)t
u+on the +rodu)ti'e funds of the so)iety (ould still &e the same-
$'ery year there (ould still &e a )ertain quantity of food and
)lothin*, (hi)h ou*ht to ha'e maintained +rodu)ti'e, em+loyed in
maintainin* un+rodu)ti'e hands- $'ery year, therefore, there
(ould still &e some diminution in (hat (ould other(ise ha'e &een
the 'alue of the annual +rodu)e of the land and la&our of the
)ountry-
This e1+ense, it may &e said indeed, not &ein* in forei*n
*oods, and not o))asionin* any e1+ortation of *old and sil'er,
the same quantity of money (ould remain in the )ountry as &efore-
.ut if the quantity of food and )lothin*, (hi)h (ere thus
)onsumed &y un+rodu)ti'e, had &een distri&uted amon* +rodu)ti'e
hands, they (ould ha'e re+rodu)ed, to*ether (ith a +rofit, the
full 'alue of their )onsum+tion- The same quantity of money (ould
in this )ase equally ha'e remained in the )ountry, and there
(ould &esides ha'e &een a re+rodu)tion of an equal 'alue of
)onsuma&le *oods- There (ould ha'e &een t(o 'alues instead of
one-
The same quantity of money, &esides, )annot lon* remain in
any )ountry in (hi)h the 'alue of the annual +rodu)e diminishes-
The sole use of money is to )ir)ulate )onsuma&le *oods- .y means
of it, +ro'isions, materials, and finished (or0, are &ou*ht and
sold, and distri&uted to their +ro+er )onsumers- The quantity of
money, therefore, (hi)h )an &e annually em+loyed in any )ountry
must &e determined &y the 'alue of the )onsuma&le *oods annually
)ir)ulated (ithin it- These must )onsist either in the immediate
+rodu)e of the land and la&our of the )ountry itself, or in
somethin* (hi)h had &een, +ur)hased (ith some +art of that
+rodu)e- Their 'alue, therefore, must diminish as the 'alue of
that +rodu)e diminishes, and alon* (ith it the quantity of money
(hi)h )an &e em+loyed in )ir)ulatin* them- .ut the money (hi)h &y
this annual diminution of +rodu)e is annually thro(n out of
domesti) )ir)ulation (ill not &e allo(ed to lie idle- The
interest of (hoe'er +ossesses it requires that it should &e
em+loyed- .ut ha'in* no em+loyment at home, it (ill, in s+ite of
all la(s and +rohi&itions, &e sent a&road, and em+loyed in
+ur)hasin* )onsuma&le *oods (hi)h may &e of some use at home- Its
annual e1+ortation (ill in this manner )ontinue for some time to
add somethin* to the annual )onsum+tion of the )ountry &eyond the
'alue of its o(n annual +rodu)e- What in the days of its
+ros+erity had &een sa'ed from that annual +rodu)e, and em+loyed
in +ur)hasin* *old and sil'er, (ill )ontri&ute for some little
time to su++ort its )onsum+tion in ad'ersity- The e1+ortation of
*old and sil'er is, in this )ase, not the )ause, &ut the effe)t
of its de)lension, and may e'en, for some little time, alle'iate
the misery of that de)lension-
The quantity of money, on the )ontrary, must in e'ery
)ountry naturally in)rease as the 'alue of the annual +rodu)e
in)reases- The 'alue of the )onsuma&le *oods annually )ir)ulated
(ithin the so)iety &ein* *reater (ill require a *reater quantity
of money to )ir)ulate them- A +art of the in)reased +rodu)e,
therefore, (ill naturally &e em+loyed in +ur)hasin*, (here'er it
is to &e had, the additional quantity of *old and sil'er
ne)essary for )ir)ulatin* the rest- The in)rease of those metals
(ill in this )ase &e the effe)t, not the )ause, of the +u&li)
+ros+erity- 6old and sil'er are +ur)hased e'ery(here in the same
manner- The food, )lothin*, and lod*in*, the re'enue and
maintenan)e of all those (hose la&our or sto)0 is em+loyed in
&rin*in* them from the mine to the mar0et, is the +ri)e +aid for
them in eru as (ell as in $n*land- The )ountry (hi)h has this
+ri)e to +ay (ill ne'er &e lon* (ithout the quantity of those
metals (hi)h it has o))asion for/ and no )ountry (ill e'er lon*
retain a quantity (hi)h it has no o))asion for-
Whate'er, therefore, (e may ima*ine the real (ealth and
re'enue of a )ountry to )onsist in, (hether in the 'alue of the
annual +rodu)e of its land and la&our, as +lain reason seems to
di)tate/ or in the quantity of the +re)ious metals (hi)h
)ir)ulate (ithin it, as 'ul*ar +re2udi)es su++ose/ in either 'ie(
of the matter, e'ery +rodi*al a++ears to &e a +u&li) enemy, and
e'ery fru*al man a +u&li) &enefa)tor-
The effe)ts of mis)ondu)t are often the same as those of
+rodi*ality- $'ery in2udi)ious and unsu))essful +ro2e)t in
a*ri)ulture, mines, fisheries, trade, or manufa)tures, tends in
the same manner to diminish the funds destined for the
maintenan)e of +rodu)ti'e la&our- In e'ery su)h +ro2e)t, thou*h
the )a+ital is )onsumed &y +rodu)ti'e hands only, yet, as &y the
in2udi)ious manner in (hi)h they are em+loyed they do not
re+rodu)e the full 'alue of their )onsum+tion, there must al(ays
&e some diminution in (hat (ould other(ise ha'e &een the
+rodu)ti'e funds of the so)iety-
It )an seldom ha++en, indeed, that the )ir)umstan)es of a
*reat nation )an &e mu)h affe)ted either &y the +rodi*ality or
mis)ondu)t of indi'iduals/ the +rofusion or im+ruden)e of some
&ein* al(ays more than )om+ensated &y the fru*ality and *ood
)ondu)t of others-
With re*ard to +rofusion, the +rin)i+le (hi)h +rom+ts to
e1+ense is the +assion for +resent en2oyment/ (hi)h, thou*h
sometimes 'iolent and 'ery diffi)ult to &e restrained, is in
*eneral only momentary and o))asional- .ut the +rin)i+le (hi)h
+rom+ts to sa'e is the desire of &etterin* our )ondition, a
desire (hi)h, thou*h *enerally )alm and dis+assionate, )omes (ith
us from the (om&, and ne'er lea'es us till (e *o into the *ra'e-
In the (hole inter'al (hi)h se+arates those t(o moments, there is
s)ar)e +erha+s a sin*le instant in (hi)h any man is so +erfe)tly
and )om+letely satisfied (ith his situation as to &e (ithout any
(ish of alteration or im+ro'ement of any 0ind- An au*mentation of
fortune is the means &y (hi)h the *reater +art of men +ro+ose and
(ish to &etter their )ondition- It is the means the most 'ul*ar
and the most o&'ious/ and the most li0ely (ay of au*mentin* their
fortune is to sa'e and a))umulate some +art of (hat they a)quire,
either re*ularly and annually, or u+on some e1traordinary
o))asions- Thou*h the +rin)i+le of e1+ense, therefore, +re'ails
in almost all men u+on some o))asions, and in some men u+on
almost all o))asions, yet in the *reater +art of men, ta0in* the
(hole )ourse of their life at an a'era*e, the +rin)i+le of
fru*ality seems not only to +redominate, &ut to +redominate 'ery
*reatly-
With re*ard to mis)ondu)t, the num&er of +rudent and
su))essful underta0in*s is e'ery(here mu)h *reater than that of
in2udi)ious and unsu))essful ones- After all our )om+laints of
the frequen)y of &an0ru+t)ies, the unha++y men (ho fall into this
misfortune ma0e &ut a 'ery small +art of the (hole num&er en*a*ed
in trade, and all other sorts of &usiness/ not mu)h more +erha+s
than one in a thousand- .an0ru+t)y is +erha+s the *reatest and
most humiliatin* )alamity (hi)h )an &efall an inno)ent man- The
*reater +art of men, therefore, are suffi)iently )areful to a'oid
it- Some, indeed, do not a'oid it/ as some do not a'oid the
*allo(s-
6reat nations are ne'er im+o'erished &y +ri'ate, thou*h they
sometimes are &y +u&li) +rodi*ality and mis)ondu)t- The (hole, or
almost the (hole +u&li) re'enue, is in most )ountries em+loyed in
maintainin* un+rodu)ti'e hands- Su)h are the +eo+le (ho )om+ose a
numerous and s+lendid )ourt, a *reat e))lesiasti)al
esta&lishment, *reat fleets and armies, (ho in time of +ea)e
+rodu)e nothin*, and in time of (ar a)quire nothin* (hi)h )an
)om+ensate the e1+ense of maintainin* them, e'en (hile the (ar
lasts- Su)h +eo+le, as they themsel'es +rodu)e nothin*, are all
maintained &y the +rodu)e of other men=s la&our- When multi+lied,
therefore, to an unne)essary num&er, they may in a +arti)ular
year )onsume so *reat a share of this +rodu)e, as not to lea'e a
suffi)ien)y for maintainin* the +rodu)ti'e la&ourers, (ho should
re+rodu)e it ne1t year- The ne1t year=s +rodu)e, therefore, (ill
&e less than that of the fore*oin*, and if the same disorder
should )ontinue, that of the third year (ill &e still less than
that of the se)ond- Those un+rodu)ti'e hands, (ho should &e
maintained &y a +art only of the s+are re'enue of the +eo+le, may
)onsume so *reat a share of their (hole re'enue, and there&y
o&li*e so *reat a num&er to en)roa)h u+on their )a+itals, u+on
the funds destined for the maintenan)e of +rodu)ti'e la&our, that
all the fru*ality and *ood )ondu)t of indi'iduals may not &e a&le
to )om+ensate the (aste and de*radation of +rodu)e o))asioned &y
this 'iolent and for)ed en)roa)hment-
This fru*ality and *ood )ondu)t, ho(e'er, is u+on most
o))asions, it a++ears from e1+erien)e, suffi)ient to )om+ensate,
not only the +ri'ate +rodi*ality and mis)ondu)t of indi'iduals,
&ut the +u&li) e1tra'a*an)e of *o'ernment- The uniform, )onstant,
and uninterru+ted effort of e'ery man to &etter his )ondition,
the +rin)i+le from (hi)h +u&li) and national, as (ell as +ri'ate
o+ulen)e is ori*inally deri'ed, is frequently +o(erful enou*h to
maintain the natural +ro*ress of thin*s to(ards im+ro'ement, in
s+ite &oth of the e1tra'a*an)e of *o'ernment and of the *reatest
errors of administration- !i0e the un0no(n +rin)i+le of animal
life, it frequently restores health and 'i*our to the
)onstitution, in s+ite, not only of the disease, &ut of the
a&surd +res)ri+tions of the do)tor-
The annual +rodu)e of the land and la&our of any nation )an
&e in)reased in its 'alue &y no other means &ut &y in)reasin*
either the num&er of its +rodu)ti'e la&ourers, or the +rodu)ti'e
+o(ers of those la&ourers (ho had &efore &een em+loyed- The
num&er of its +rodu)ti'e la&ourers, it is e'ident, )an ne'er &e
mu)h in)reased, &ut in )onsequen)e of an in)rease of )a+ital, or
of the funds destined for maintainin* them- The +rodu)ti'e +o(ers
of the same num&er of la&ourers )annot &e in)reased, &ut in
)onsequen)e either of some addition and im+ro'ement to those
ma)hines and instruments (hi)h fa)ilitate and a&rid*e la&our/ or
of a more +ro+er di'ision and distri&ution of em+loyment- In
either )ase an additional )a+ital is almost al(ays required- It
is &y means of an additional )a+ital only that the underta0er of
any (or0 )an either +ro'ide his (or0men (ith &etter ma)hinery or
ma0e a more +ro+er distri&ution of em+loyment amon* them- When
the (or0 to &e done )onsists of a num&er of +arts, to 0ee+ e'ery
man )onstantly em+loyed in one (ay requires a mu)h *reater
)a+ital than (here e'ery man is o))asionally em+loyed in e'ery
different +art of the (or0- When (e )om+are, therefore, the state
of a nation at t(o different +eriods, and find, that the annual
+rodu)e of its land and la&our is e'idently *reater at the latter
than at the former, that its lands are &etter )ulti'ated, its
manufa)tures more numerous and more flourishin*, and its trade
more e1tensi'e, (e may &e assured that its )a+ital must ha'e
in)reased durin* the inter'al &et(een those t(o +eriods, and that
more must ha'e &een added to it &y the *ood )ondu)t of some than
had &een ta0en from it either &y the +ri'ate mis)ondu)t of others
or &y the +u&li) e1tra'a*an)e of *o'ernment- .ut (e shall find
this to ha'e &een the )ase of almost all nations, in all
tolera&ly quiet and +ea)ea&le times, e'en of those (ho ha'e not
en2oyed the most +rudent and +arsimonious *o'ernments- To form a
ri*ht 2ud*ment of it, indeed, (e must )om+are the state of the
)ountry at +eriods some(hat distant from one another- The
+ro*ress is frequently so *radual that, at near +eriods, the
im+ro'ement is not only not sensi&le, &ut from the de)lension
either of )ertain &ran)hes of industry, or of )ertain distri)ts
of the )ountry, thin*s (hi)h sometimes ha++en thou*h the )ountry
in *eneral &e in *reat +ros+erity, there frequently arises a
sus+i)ion that the ri)hes and industry of the (hole are de)ayin*-
The annual +rodu)e of the land and la&our of $n*land, for
e1am+le, is )ertainly mu)h *reater than it (as, a little more
than a )entury a*o, at the restoration of Charles II- Thou*h, at
+resent, fe( +eo+le, I &elie'e, dou&t of this, yet durin* this
+eriod, fi'e years ha'e seldom +assed a(ay in (hi)h some &oo0 or
+am+hlet has not &een +u&lished, (ritten, too, (ith su)h
a&ilities as to *ain some authority (ith the +u&li), and
+retendin* to demonstrate that the (ealth of the nation (as fast
de)linin*, that the )ountry (as de+o+ulated, a*ri)ulture
ne*le)ted, manufa)tures de)ayin*, and trade undone- Nor ha'e
these +u&li)ations &een all +arty +am+hlets, the (ret)hed
offs+rin* of falsehood and 'enality- 4any of them ha'e &een
(ritten &y 'ery )andid and 'ery intelli*ent +eo+le, (ho (rote
nothin* &ut (hat they &elie'ed, and for no other reason &ut
&e)ause they &elie'ed it-
The annual +rodu)e of the land and la&our of $n*land, a*ain,
(as )ertainly mu)h *reater at the Restoration, than (e )an
su++ose it to ha'e &een a&out an hundred years &efore, at the
a))ession of $li;a&eth- At this +eriod, too, (e ha'e all reason
to &elie'e, the )ountry (as mu)h more ad'an)ed in im+ro'ement
than it had &een a&out a )entury &efore, to(ards the )lose of the
dissensions &et(een the houses of 7or0 and !an)aster- $'en then
it (as, +ro&a&ly, in a &etter )ondition than it had &een at the
Norman Conquest, and at the Norman Conquest than durin* the
)onfusion of the Sa1on #e+tar)hy- $'en at this early +eriod, it
(as )ertainly a more im+ro'ed )ountry than at the in'asion of
Aulius Caesar, (hen its inha&itants (ere nearly in the same state
(ith the sa'a*es in North Ameri)a-
In ea)h of those +eriods, ho(e'er, there (as not only mu)h
+ri'ate and +u&li) +rofusion, many e1+ensi'e and unne)essary
(ars, *reat +er'ersion of the annual +rodu)e from maintainin*
+rodu)ti'e to maintain un+rodu)ti'e hands/ &ut sometimes, in the
)onfusion of )i'il dis)ord, su)h a&solute (aste and destru)tion
of sto)0, as mi*ht &e su++osed, not only to retard, as it
)ertainly did, the natural a))umulation of ri)hes, &ut to ha'e
left the )ountry, at the end of the +eriod, +oorer than at the
&e*innin*- Thus, in the ha++iest and most fortunate +eriod of
them all, that (hi)h has +assed sin)e the Restoration, ho( many
disorders and misfortunes ha'e o))urred, (hi)h, )ould they ha'e
&een foreseen, not only the im+o'erishment, &ut the total ruin of
the )ountry (ould ha'e &een e1+e)ted from them> The fire and the
+la*ue of !ondon, the t(o Dut)h (ars, the disorders of the
Re'olution, the (ar in Ireland, the four e1+ensi'e "ren)h (ars of
16??, 17CE, 17GE, and 17H6, to*ether (ith the t(o re&ellions of
171H and 17GH- In the )ourse of the four "ren)h (ars, the nation
has )ontra)ted more than a hundred and forty8fi'e millions of
de&t, o'er and a&o'e all the other e1traordinary annual e1+ense
(hi)h they o))asioned, so that the (hole )annot &e )om+uted at
less than t(o hundred millions- So *reat a share of the annual
+rodu)e of the land and la&our of the )ountry has, sin)e the
Re'olution, &een em+loyed u+on different o))asions in maintainin*
an e1traordinary num&er of un+rodu)ti'e hands- .ut had not those
(ars *i'en this +arti)ular dire)tion to so lar*e a )a+ital, the
*reater +art of it (ould naturally ha'e &een em+loyed in
maintainin* +rodu)ti'e hands, (hose la&our (ould ha'e re+la)ed,
(ith a +rofit, the (hole 'alue of their )onsum+tion- The 'alue of
the annual +rodu)e of the land and la&our of the )ountry (ould
ha'e &een )onsidera&ly in)reased &y it e'ery year, and e'ery
year=s in)rease (ould ha'e au*mented still more that of the
follo(in* year- 4ore houses (ould ha'e &een &uilt, more lands
(ould ha'e &een im+ro'ed, and those (hi)h had &een im+ro'ed
&efore (ould ha'e &een &etter )ulti'ated, more manufa)tures (ould
ha'e &een esta&lished- and those (hi)h had &een esta&lished
&efore (ould ha'e &een more e1tended/ and to (hat hei*ht the real
(ealth and re'enue of the )ountry mi*ht, &y this time, ha'e &een
raised, it is not +erha+s 'ery easy e'en to ima*ine-
.ut thou*h the +rofusion of *o'ernment must, undou&tedly,
ha'e retarded the natural +ro*ress of $n*land to(ards (ealth and
im+ro'ement, it has not &een a&le to sto+ it- The annual +rodu)e
of its land and la&our is, undou&tedly, mu)h *reater at +resent
than it (as either at the Restoration or at the Re'olution- The
)a+ital, therefore, annually em+loyed in )ulti'atin* this land,
and in maintainin* this la&our, must li0e(ise &e mu)h *reater- In
the midst of all the e1a)tions of *o'ernment, this )a+ital has
&een silently and *radually a))umulated &y the +ri'ate fru*ality
and *ood )ondu)t of indi'iduals, &y their uni'ersal, )ontinual,
and uninterru+ted effort to &etter their o(n )ondition- It is
this effort, +rote)ted &y la( and allo(ed &y li&erty to e1ert
itself in the manner that is most ad'anta*eous, (hi)h has
maintained the +ro*ress of $n*land to(ards o+ulen)e and
im+ro'ement in almost all former times, and (hi)h, it is to &e
ho+ed, (ill do so in all future times- $n*land, ho(e'er, as it
has ne'er &een &lessed (ith a 'ery +arsimonious *o'ernment, so
+arsimony has at no time &een the )hara)teristi)al 'irtue of its
inha&itants- It is the hi*hest im+ertinen)e and +resum+tion,
therefore, in 0in*s and ministers, to +retend to (at)h o'er the
e)onomy of +ri'ate +eo+le, and to restrain their e1+ense, either
&y sum+tuary la(s, or &y +rohi&itin* the im+ortation of forei*n
lu1uries- They are themsel'es al(ays, and (ithout any e1)e+tion,
the *reatest s+endthrifts in the so)iety- !et them loo0 (ell
after their o(n e1+ense, and they may safely trust +ri'ate +eo+le
(ith theirs- If their o(n e1tra'a*an)e does not ruin the state,
that of their su&2e)ts ne'er (ill-
As fru*ality in)reases and +rodi*ality diminishes the +u&li)
)a+ital, so the )ondu)t of those (hose e1+ense 2ust equals their
re'enue, (ithout either a))umulatin* or en)roa)hin*, neither
in)reases nor diminishes it- Some modes of e1+ense, ho(e'er, seem
to )ontri&ute more to the *ro(th of +u&li) o+ulen)e than others-
The re'enue of an indi'idual may &e s+ent either in thin*s
(hi)h are )onsumed immediately, and in (hi)h one day=s e1+ense
)an neither alle'iate nor su++ort that of another, or it may &e
s+ent in thin*s more dura&le, (hi)h )an therefore &e a))umulated,
and in (hi)h e'ery day=s e1+ense may, as he )hooses, either
alle'iate or su++ort and hei*hten the effe)t of that of the
follo(in* day- A man of fortune, for e1am+le, may either s+end
his re'enue in a +rofuse and sum+tuous ta&le, and in maintainin*
a *reat num&er of menial ser'ants, and a multitude of do*s and
horses/ or )ontentin* himself (ith a fru*al ta&le and fe(
attendants, he may lay out the *reater +art of it in adornin* his
house or his )ountry 'illa, in useful or ornamental &uildin*s, in
useful or ornamental furniture, in )olle)tin* &oo0s, statues,
+i)tures/ or in thin*s more fri'olous, 2e(els, &au&les, in*enious
trin0ets of different 0inds/ or, (hat is most triflin* of all, in
amassin* a *reat (ardro&e of fine )lothes, li0e the fa'ourite and
minister of a *reat +rin)e (ho died a fe( years a*o- Were t(o men
of equal fortune to s+end their re'enue, the one )hiefly in the
one (ay, the other in the other, the ma*nifi)en)e of the +erson
(hose e1+ense had &een )hiefly in dura&le )ommodities, (ould &e
)ontinually in)reasin*, e'ery day=s e1+ense )ontri&utin*
somethin* to su++ort and hei*hten the effe)t of that of the
follo(in* day3 that of the other, on the )ontrary, (ould &e no
*reater at the end of the +eriod than at the &e*innin*- The
former, too, (ould, at the end of the +eriod, &e the ri)her man
of the t(o- #e (ould ha'e a sto)0 of *oods of some 0ind or other,
(hi)h, thou*h it mi*ht not &e (orth all that it )ost, (ould
al(ays &e (orth somethin*- No tra)e or 'esti*e of the e1+ense of
the latter (ould remain, and the effe)ts of ten or t(enty years
+rofusion (ould &e as )om+letely annihilated as if they had ne'er
e1isted-
As the one mode of e1+ense is more fa'oura&le than the other
to the o+ulen)e of an indi'idual, so is it li0e(ise to that of a
nation- The houses, the furniture, the )lothin* of the ri)h, in a
little time, &e)ome useful to the inferior and middlin* ran0s of
+eo+le- They are a&le to +ur)hase them (hen their su+eriors *ro(
(eary of them, and the *eneral a))ommodation of the (hole +eo+le
is thus *radually im+ro'ed, (hen this mode of e1+ense &e)omes
uni'ersal amon* men of fortune- In )ountries (hi)h ha'e lon* &een
ri)h, you (ill frequently find the inferior ran0s of +eo+le in
+ossession &oth of houses and furniture +erfe)tly *ood and
entire, &ut of (hi)h neither the one )ould ha'e &een &uilt, nor
the other ha'e &een made for their use- What (as formerly a seat
of the family of Seymour is no( an inn u+on the .ath road- The
marria*e8&ed of Aames the "irst of 6reat .ritain, (hi)h his queen
&rou*ht (ith her from Denmar0 as a +resent fit for a so'erei*n to
ma0e to a so'erei*n, (as, a fe( years a*o, the ornament of an
alehouse at Dunfermline- In some an)ient )ities, (hi)h either
ha'e &een lon* stationary, or ha'e *one some(hat to de)ay, you
(ill sometimes s)ar)e find a sin*le house (hi)h )ould ha'e &een
&uilt for its +resent inha&itants- If you *o into those houses
too, you (ill frequently find many e1)ellent, thou*h antiquated
+ie)es of furniture, (hi)h are still 'ery fit for use, and (hi)h
)ould as little ha'e &een made for them- No&le +ala)es,
ma*nifi)ent 'illas, *reat )olle)tions of &oo0s, statues, +i)tures
and other )uriosities, are frequently &oth an ornament and an
honour, not only to the nei*h&ourhood, &ut to the (hole )ountry
to (hi)h they &elon*- 5ersailles is an ornament and an honour to
"ran)e, Sto(e and Wilton to $n*land- Italy still )ontinues to
)ommand some sort of 'eneration &y the num&er of monuments of
this 0ind (hi)h it +ossesses, thou*h the (ealth (hi)h +rodu)ed
them has de)ayed, and thou*h the *enius (hi)h +lanned them seems
to &e e1tin*uished, +erha+s from not ha'in* the same em+loyment-
The e1+ense too, (hi)h is laid out in dura&le )ommodities,
is fa'oura&le, not only to a))umulation, &ut to fru*ality- If a
+erson should at any time e1)eed in it, he )an easily reform
(ithout e1+osin* himself to the )ensure of the +u&li)- To redu)e
'ery mu)h the num&er of his ser'ants, to reform his ta&le from
*reat +rofusion to *reat fru*ality, to lay do(n his equi+a*e
after he has on)e set it u+, are )han*es (hi)h )annot es)a+e the
o&ser'ation of his nei*h&ours, and (hi)h are su++osed to im+ly
some a)0no(led*ment of +re)edin* &ad )ondu)t- "e(, therefore, of
those (ho ha'e on)e &een so unfortunate as to laun)h out too far
into this sort of e1+ense, ha'e after(ards the )oura*e to reform,
till ruin and &an0ru+t)y o&li*e them- .ut if a +erson has, at any
time, &een at too *reat an e1+ense in &uildin*, in furniture, in
&oo0s or +i)tures, no im+ruden)e )an &e inferred from his
)han*in* his )ondu)t- These are thin*s in (hi)h further e1+ense
is frequently rendered unne)essary &y former e1+ense/ and (hen a
+erson sto+s short, he a++ears to do so, not &e)ause he has
e1)eeded his fortune, &ut &e)ause he has satisfied his fan)y-
The e1+ense, &esides, that is laid out in dura&le
)ommodities *i'es maintenan)e, )ommonly, to a *reater num&er of
+eo+le than that (hi)h is em+loyed in the most +rofuse
hos+itality- Of t(o or three hundred(ei*ht of +ro'isions, (hi)h
may sometimes &e ser'ed u+ at a *reat festi'al, one half,
+erha+s, is thro(n to the dun*hill, and there is al(ays a *reat
deal (asted and a&used- .ut if the e1+ense of this entertainment
had &een em+loyed in settin* to (or0 masons, )ar+enters,
u+holsterers, me)hani)s, et)-, a quantity of +ro'isions, of equal
'alue, (ould ha'e &een distri&uted amon* a still *reater num&er
of +eo+le (ho (ould ha'e &ou*ht them in +enny(orths and +ound
(ei*hts, and not ha'e lost or thro(n a(ay a sin*le oun)e of them-
In the one (ay, &esides, this e1+ense maintains +rodu)ti'e, in
the other un+rodu)ti'e hands- In the one (ay, therefore, it
in)reases, in the other, it does not in)rease, the e1)han*ea&le
'alue of the annual +rodu)e of the land and la&our of the
)ountry-
I (ould not, ho(e'er, &y all this &e understood to mean that
the one s+e)ies of e1+ense al(ays &eto0ens a more li&eral or
*enerous s+irit than the other- When a man of fortune s+ends his
re'enue )hiefly in hos+itality, he shares the *reater +art of it
(ith his friends and )om+anions/ &ut (hen he em+loys it in
+ur)hasin* su)h dura&le )ommodities, he often s+ends the (hole
u+on his o(n +erson, and *i'es nothin* to any&ody (ithout an
equi'alent- The latter s+e)ies of e1+ense, therefore, es+e)ially
(hen dire)ted to(ards fri'olous o&2e)ts, the little ornaments of
dress and furniture, 2e(els, trin0ets, *e(*a(s, frequently
indi)ates, not only a triflin*, &ut a &ase and selfish
dis+osition- All that I mean is, that the one sort of e1+ense, as
it al(ays o))asions some a))umulation of 'alua&le )ommodities, as
it is more fa'oura&le to +ri'ate fru*ality, and, )onsequently, to
the in)rease of the +u&li) )a+ital, and as it maintains
+rodu)ti'e, rather than un+rodu)ti'e hands, )ondu)es more than
the other to the *ro(th of +u&li) o+ulen)e-
C#AT$R I5
Of Sto)0 !ent at Interest
T#$ sto)0 (hi)h is lent at interest is al(ays )onsidered as
a )a+ital &y the lender- #e e1+e)ts that in due time it is to &e
restored to him, and that in the meantime the &orro(er is to +ay
him a )ertain annual rent for the use of it- The &orro(er may use
it either as a )a+ital, or as a sto)0 reser'ed for immediate
)onsum+tion- If he uses it as a )a+ital, he em+loys it in the
maintenan)e of +rodu)ti'e la&ourers, (ho re+rodu)e the 'alue (ith
a +rofit- #e )an, in this )ase, &oth restore the )a+ital and +ay
the interest (ithout alienatin* or en)roa)hin* u+on any other
sour)e of re'enue- If he uses it as a sto)0 reser'ed for
immediate )onsum+tion, he a)ts the +art of a +rodi*al, and
dissi+ates in the maintenan)e of the idle (hat (as destined for
the su++ort of the industrious- #e )an, in this )ase, neither
restore the )a+ital nor +ay the interest (ithout either
alienatin* or en)roa)hin* u+on some other sour)e of re'enue, su)h
as the +ro+erty or the rent of land-
The sto)0 (hi)h is lent at interest is, no dou&t,
o))asionally em+loyed in &oth these (ays, &ut in the former mu)h
more frequently than in the latter- The man (ho &orro(s in order
to s+end (ill soon &e ruined, and he (ho lends to him (ill
*enerally ha'e o))asion to re+ent of his folly- To &orro( or to
lend for su)h a +ur+ose, therefore, is in all )ases, (here *ross
usury is out of the question, )ontrary to the interest of &oth
+arties/ and thou*h it no dou&t ha++ens sometimes that +eo+le do
&oth the one and the other/ yet, from the re*ard that all men
ha'e for their o(n interest, (e may &e assured that it )annot
ha++en so 'ery frequently as (e are sometimes a+t to ima*ine- As0
any ri)h man of )ommon +ruden)e to (hi)h of the t(o sorts of
+eo+le he has lent the *reater +art of his sto)0, to those (ho,
he thin0s, (ill em+loy it +rofita&ly, or to those (ho (ill s+end
it idly, and he (ill lau*h at you for +ro+osin* the question-
$'en amon* &orro(ers, therefore, not the +eo+le in the (orld most
famous for fru*ality, the num&er of the fru*al and industrious
sur+asses )onsidera&ly that of the +rodi*al and idle-
The only +eo+le to (hom sto)0 is )ommonly lent, (ithout
their &ein* e1+e)ted to ma0e any 'ery +rofita&le use of it, are
)ountry *entlemen (ho &orro( u+on mort*a*e- $'en they s)ar)e e'er
&orro( merely to s+end- What they &orro(, one may say, is
)ommonly s+ent &efore they &orro( it- They ha'e *enerally
)onsumed so *reat a quantity of *oods, ad'an)ed to them u+on
)redit &y sho+0ee+ers and tradesmen, that they find it ne)essary
to &orro( at interest in order to +ay the de&t- The )a+ital
&orro(ed re+la)es the )a+itals of those sho+0ee+ers and
tradesmen, (hi)h the )ountry *entlemen )ould not ha'e re+la)ed
from the rents of their estates- It is not +ro+erly &orro(ed in
order to &e s+ent, &ut in order to re+la)e a )a+ital (hi)h had
&een s+ent &efore-
Almost all loans at interest are made in money, either of
+a+er, or of *old and sil'er- .ut (hat the &orro(er really (ants,
and (hat the lender really su++lies him (ith, is not the money,
&ut the money=s (orth, or the *oods (hi)h it )an +ur)hase- If he
(ants it as a sto)0 for immediate )onsum+tion, it is those *oods
only (hi)h he )an +la)e in that sto)0- If he (ants it as a
)a+ital for em+loyin* industry, it is from those *oods only that
the industrious )an &e furnished (ith the tools, materials, and
maintenan)e ne)essary for )arryin* on their (or0- .y means of the
loan, the lender, as it (ere, assi*ns to the &orro(er his ri*ht
to a )ertain +ortion of the annual +rodu)e of the land and la&our
of the )ountry to &e em+loyed as the &orro(er +leases-
The quantity of sto)0, therefore, or, as it is )ommonly
e1+ressed, of money (hi)h )an &e lent at interest in any )ountry,
is not re*ulated &y the 'alue of the money, (hether +a+er or
)oin, (hi)h ser'es as the instrument of the different loans made
in that )ountry, &ut &y the 'alue of that +art of the annual
+rodu)e (hi)h, as soon as it )omes either from the *round, or
from the hands of the +rodu)ti'e la&ourers, is destined not only
for re+la)in* a )a+ital, &ut su)h a )a+ital as the o(ner does not
)are to &e at the trou&le of em+loyin* himself- As su)h )a+itals
are )ommonly lent out and +aid &a)0 in money, they )onstitute
(hat is )alled the monied interest- It is distin)t, not only from
the landed, &ut from the tradin* and manufa)turin* interests, as
in these last the o(ners themsel'es em+loy their o(n )a+itals-
$'en in the monied interest, ho(e'er, the money is, as it (ere,
&ut the deed of assi*nment, (hi)h )on'eys from one hand to
another those )a+itals (hi)h the o(ners do not )are to em+loy
themsel'es- Those )a+itals may &e *reater in almost any
+ro+ortion than the amount of the money (hi)h ser'es as the
instrument of their )on'eyan)e/ the same +ie)es of money
su))essi'ely ser'in* for many different loans, as (ell as for
many different +ur)hases- A, for e1am+le, lends to W a thousand
+ounds, (ith (hi)h W immediately +ur)hases of . a thousand
+ounds= (orth of *oods- . ha'in* no o))asion for the money
himself, lends the identi)al +ie)es to I, (ith (hi)h I
immediately +ur)hases of C another thousand +ounds= (orth of
*oods- C in the same manner, and for the same reason, lends them
to 7, (ho a*ain +ur)hases *oods (ith them of D- In this manner
the same +ie)es, either of )oin or +a+er, may in the )ourse of a
fe( days, ser'e as the instrument of three different loans, and
of three different +ur)hases, ea)h of (hi)h is, in 'alue, equal
to the (hole amount of those +ie)es- What the three monied men A,
., and C assi*n to the three &orro(ers, W, I, 7, is the +o(er of
ma0in* those +ur)hases- In this +o(er )onsist &oth the 'alue and
the use of the loans- The sto)0 lent &y the three monied men is
equal to the 'alue of the *oods (hi)h )an &e +ur)hased (ith it,
and is three times *reater than that of the money (ith (hi)h the
+ur)hases are made- Those loans ho(e'er, may &e all +erfe)tly
(ell se)ured, the *oods +ur)hased &y the different de&tors &ein*
so em+loyed as, in due time, to &rin* &a)0, (ith a +rofit, an
equal 'alue either of )oin or of +a+er- And as the same +ie)es of
money )an thus ser'e as the instrument of different loans to
three, or for the same reason, to thirty times their 'alue, so
they may li0e(ise su))essi'ely ser'e as the instrument of
re+ayment-
A )a+ital lent at interest may, in this manner, &e
)onsidered as an assi*nment from the lender to the &orro(ers of a
)ertain )onsidera&le +ortion of the annual +rodu)e/ u+on
)ondition that the &orro(er in return shall, durin* the
)ontinuan)e of the loan, annually assi*n to the lender a smaller
+ortion, )alled the interest/ and at the end of it a +ortion
equally )onsidera&le (ith that (hi)h had ori*inally &een assi*ned
to him, )alled the re+ayment- Thou*h money, either )oin or +a+er,
ser'es *enerally as the deed of assi*nment &oth to the smaller
and to the more )onsidera&le +ortion, it is itself alto*ether
different from (hat is assi*ned &y it-
In +ro+ortion as that share of the annual +rodu)e (hi)h, as
soon as it )omes either from the *round, or from the hands of the
+rodu)ti'e la&ourers, is destined for re+la)in* a )a+ital,
in)reases in any )ountry, (hat is )alled the monied interest
naturally in)reases (ith it- The in)rease of those +arti)ular
)a+itals from (hi)h the o(ners (ish to deri'e a re'enue, (ithout
&ein* at the trou&le of em+loyin* them themsel'es, naturally
a))om+anies the *eneral in)rease of )a+itals/ or, in other (ords,
as sto)0 in)reases, the quantity of sto)0 to &e lent at interest
*ro(s *radually *reater and *reater-
As the quantity of sto)0 to &e lent at interest in)reases,
the interest, or the +ri)e (hi)h must &e +aid for the use of that
sto)0, ne)essarily diminishes, not only from those *eneral )auses
(hi)h ma0e the mar0et +ri)e of thin*s )ommonly diminish as their
quantity in)reases, &ut from other )auses (hi)h are +e)uliar to
this +arti)ular )ase- As )a+itals in)rease in any )ountry, the
+rofits (hi)h )an &e made &y em+loyin* them ne)essarily diminish-
It &e)omes *radually more and more diffi)ult to find (ithin the
)ountry a +rofita&le method of em+loyin* any ne( )a+ital- There
arises in )onsequen)e a )om+etition &et(een different )a+itals,
the o(ner of one endea'ourin* to *et +ossession of that
em+loyment (hi)h is o))u+ied &y another- .ut u+on most o))asions
he )an ho+e to 2ostle that other out of this em+loyment &y no
other means &ut &y dealin* u+on more reasona&le terms- #e must
not only sell (hat he deals in some(hat )hea+er, &ut in order to
*et it to sell, he must sometimes, too, &uy it dearer- The demand
for +rodu)ti'e la&our, &y the in)rease of the funds (hi)h are
destined for maintainin* it, *ro(s e'ery day *reater and *reater-
!a&ourers easily find em+loyment, &ut the o(ners of )a+itals find
it diffi)ult to *et la&ourers to em+loy- Their )om+etition raises
the (a*es of la&our and sin0s the +rofits of sto)0- .ut (hen the
+rofits (hi)h )an &e made &y the use of a )a+ital are in this
manner diminished, as it (ere, at &oth ends, the +ri)e (hi)h )an
&e +aid for the use of it, that is, the rate of interest, must
ne)essarily &e diminished (ith them-
4r- !o)0e, 4r- !a(, and 4r- 4ontesquieu, as (ell as many
other (riters, seem to ha'e ima*ined that the in)rease of the
quantity of *old and sil'er, in )onsequen)e of the dis)o'ery of
the S+anish West Indies, (as the real )ause of the lo(erin* of
the rate of interest throu*h the *reater +art of $uro+e- Those
metals, they say, ha'in* &e)ome of less 'alue themsel'es, the use
of any +arti)ular +ortion of them ne)essarily &e)ame of less
'alue too, and )onsequently the +ri)e (hi)h )ould &e +aid for it-
This notion, (hi)h at first si*ht seems +lausi&le, has &een so
fully e1+osed &y 4r- #ume that it is, +erha+s, unne)essary to say
anythin* more a&out it- The follo(in* 'ery short and +lain
ar*ument, ho(e'er, may ser'e to e1+lain more distin)tly the
falla)y (hi)h seems to ha'e misled those *entlemen-
.efore the dis)o'ery of the S+anish West Indies, ten +er
)ent seems to ha'e &een the )ommon rate of interest throu*h the
*reater +art of $uro+e- It has sin)e that time in different
)ountries sun0 to si1, fi'e, four, and three +er )ent- !et us
su++ose that in e'ery +arti)ular )ountry the 'alue of sil'er has
sun0 +re)isely in the same +ro+ortion as the rate of interest/
and that in those )ountries, for e1am+le, (here interest has &een
redu)ed from ten to fi'e +er )ent, the same quantity of sil'er
)an no( +ur)hase 2ust half the quantity of *oods (hi)h it )ould
ha'e +ur)hased &efore- This su++osition (ill not, I &elie'e, &e
found any(here a*reea&le to the truth, &ut it is the most
fa'oura&le to the o+inion (hi)h (e are *oin* to e1amine/ and e'en
u+on this su++osition it is utterly im+ossi&le that the lo(erin*
of the 'alue of sil'er )ould ha'e the smallest tenden)y to lo(er
the rate of interest- If a hundred +ounds are in those )ountries
no( of no more 'alue than fifty +ounds (ere then, ten +ounds must
no( &e of no more 'alue than fi'e +ounds (ere then- Whate'er (ere
the )auses (hi)h lo(ered the 'alue of the )a+ital, the same must
ne)essarily ha'e lo(ered that of the interest, and e1a)tly in the
same +ro+ortion- The +ro+ortion &et(een the 'alue of the )a+ital
and that of the interest must ha'e remained the same, thou*h the
rate had &een altered- .y alterin* the rate, on the )ontrary, the
+ro+ortion &et(een those t(o 'alues is ne)essarily altered- If a
hundred +ounds no( are (orth no more than fifty (ere then, fi'e
+ounds no( )an &e (orth no more than t(o +ounds ten shillin*s
(ere then- .y redu)in* the rate of interest, therefore, from ten
to fi'e +er )ent, (e *i'e for the use of a )a+ital, (hi)h is
su++osed to &e equal to one half of its former 'alue, an interest
(hi)h is equal to one fourth only of the 'alue of the former
interest-
Any in)rease in the quantity of sil'er, (hile that of the
)ommodities )ir)ulated &y means of it remained the same, )ould
ha'e no other effe)t than to diminish the 'alue of that metal-
The nominal 'alue of all sorts of *oods (ould &e *reater, &ut
their real 'alue (ould &e +re)isely the same as &efore- They
(ould &e e1)han*ed for a *reater num&er of +ie)es of sil'er/ &ut
the quantity of la&our (hi)h they )ould )ommand, the num&er of
+eo+le (hom they )ould maintain and em+loy, (ould &e +re)isely
the same- The )a+ital of the )ountry (ould &e the same, thou*h a
*reater num&er of +ie)es mi*ht &e requisite for )on'eyin* any
equal +ortion of it from one hand to another- The deeds of
assi*nment, li0e the )on'eyan)es of a 'er&ose attorney, (ould &e
more )um&ersome, &ut the thin* assi*ned (ould &e +re)isely the
same as &efore, and )ould +rodu)e only the same effe)ts- The
funds for maintainin* +rodu)ti'e la&our &ein* the same, the
demand for it (ould &e the same- Its +ri)e or (a*es, therefore,
thou*h nominally *reater, (ould really &e the same- They (ould &e
+aid in a *reater num&er of +ie)es of sil'er/ &ut they (ould
+ur)hase only the same quantity of *oods- The +rofits of sto)0
(ould &e the same &oth nominally and really- The (a*es of la&our
are )ommonly )om+uted &y the quantity of sil'er (hi)h is +aid to
the la&ourer- When that is in)reased, therefore, his (a*es a++ear
to &e in)reased, thou*h they may sometimes &e no *reater than
&efore- .ut the +rofits of sto)0 are not )om+uted &y the num&er
of +ie)es of sil'er (ith (hi)h they are +aid, &ut &y the
+ro+ortion (hi)h those +ie)es &ear to the (hole )a+ital em+loyed-
Thus in a +arti)ular )ountry fi'e shillin*s a (ee0 are said to &e
the )ommon (a*es of la&our, and ten +er )ent the )ommon +rofits
of sto)0- .ut the (hole )a+ital of the )ountry &ein* the same as
&efore, the )om+etition &et(een the different )a+itals of
indi'iduals into (hi)h it (as di'ided (ould li0e(ise &e the same-
They (ould all trade (ith the same ad'anta*es and disad'anta*es-
The )ommon +ro+ortion &et(een )a+ital and +rofit, therefore,
(ould &e the same, and )onsequently the )ommon interest of money/
(hat )an )ommonly &e *i'en for the use of money &ein* ne)essarily
re*ulated &y (hat )an )ommonly &e made &y the use of it-
Any in)rease in the quantity of )ommodities annually
)ir)ulated (ithin the )ountry, (hile that of the money (hi)h
)ir)ulated them remained the same, (ould, on the )ontrary,
+rodu)e many other im+ortant effe)ts, &esides that of raisin* the
'alue of the money- The )a+ital of the )ountry, thou*h it mi*ht
nominally &e the same, (ould really &e au*mented- It mi*ht
)ontinue to &e e1+ressed &y the same quantity of money, &ut it
(ould )ommand a *reater quantity of la&our- The quantity of
+rodu)ti'e la&our (hi)h it )ould maintain and em+loy (ould &e
in)reased, and )onsequently the demand for that la&our- Its (a*es
(ould naturally rise (ith the demand, and yet mi*ht a++ear to
sin0- They mi*ht &e +aid (ith a smaller quantity of money, &ut
that smaller quantity mi*ht +ur)hase a *reater quantity of *oods
than a *reater had done &efore- The +rofits of sto)0 (ould &e
diminished &oth really and in a++earan)e- The (hole )a+ital of
the )ountry &ein* au*mented, the )om+etition &et(een the
different )a+itals of (hi)h it (as )om+osed (ould naturally &e
au*mented alon* (ith it- The o(ners of those +arti)ular )a+itals
(ould &e o&li*ed to )ontent themsel'es (ith a smaller +ro+ortion
of the +rodu)e of that la&our (hi)h their res+e)ti'e )a+itals
em+loyed- The interest of money, 0ee+in* +a)e al(ays (ith the
+rofits of sto)0, mi*ht, in this manner, &e *reatly diminished,
thou*h the 'alue of money, or the quantity of *oods (hi)h any
+arti)ular sum )ould +ur)hase, (as *reatly au*mented-
In some )ountries the interest of money has &een +rohi&ited
&y la(- .ut as somethin* )an e'ery(here &e made &y the use of
money, somethin* ou*ht e'ery(here to &e +aid for the use of it-
This re*ulation, instead of +re'entin*, has &een found from
e1+erien)e to in)rease the e'il of usury/ the de&tor &ein*
o&li*ed to +ay, not only for the use of the money, &ut for the
ris0 (hi)h his )reditor runs &y a))e+tin* a )om+ensation for that
use- #e is o&li*ed, if one may say so, to insure his )reditor
from the +enalties of usury-
In )ountries (here interest is +ermitted, the la(, in order
to +re'ent the e1tortion of usury, *enerally fi1es the hi*hest
rate (hi)h )an &e ta0en (ithout in)urrin* a +enalty- This rate
ou*ht al(ays to &e some(hat a&o'e the lo(est mar0et +ri)e, or the
+ri)e (hi)h is )ommonly +aid for the use of money &y those (ho
)an *i'e the most undou&ted se)urity- If this le*al rate should
&e fi1ed &elo( the lo(est mar0et rate, the effe)ts of this
fi1ation must &e nearly the same as those of a total +rohi&ition
of interest- The )reditor (ill not lend his money for less than
the use of it is (orth, and the de&tor must +ay him for the ris0
(hi)h he runs &y a))e+tin* the full 'alue of that use- If it is
fi1ed +re)isely at the lo(est mar0et +ri)e, it ruins (ith honest
+eo+le, (ho res+e)t the la(s of their )ountry, the )redit of all
those (ho )annot *i'e the 'ery &est se)urity, and o&li*es them to
ha'e re)ourse to e1or&itant usurers- In a )ountry, su)h as 6reat
.ritain, (here money is lent to *o'ernment at three +er )ent and
to +ri'ate +eo+le u+on a *ood se)urity at four and four and a
half, the +resent le*al rate, fi'e +er )ent, is +erha+s as +ro+er
as any-
The le*al rate, it is to &e o&ser'ed, thou*h it ou*ht to &e
some(hat a&o'e, ou*ht not to &e mu)h a&o'e the lo(est mar0et
rate- If the le*al rate of interest in 6reat .ritain, for
e1am+le, (as fi1ed so hi*h as ei*ht or ten +er )ent, the *reater
+art of the money (hi)h (as to &e lent (ould &e lent to +rodi*als
and +ro2e)tors, (ho alone (ould &e (illin* to *i'e this hi*h
interest- So&er +eo+le, (ho (ill *i'e for the use of money no
more than a +art of (hat they are li0ely to ma0e &y the use of
it, (ould not 'enture into the )om+etition- A *reat +art of the
)a+ital of the )ountry (ould thus &e 0e+t out of the hands (hi)h
(ere most li0ely to ma0e a +rofita&le and ad'anta*eous use of it,
and thro(n into those (hi)h (ere most li0ely to (aste and destroy
it- Where the le*al rate of interest, on the )ontrary, is fi1ed
&ut a 'ery little a&o'e the lo(est mar0et rate, so&er +eo+le are
uni'ersally +referred, as &orro(ers, to +rodi*als and +ro2e)tors-
The +erson (ho lends money *ets nearly as mu)h interest from the
former as he dares to ta0e from the latter, and his money is mu)h
safer in the hands of the one set of +eo+le than in those of the
other- A *reat +art of the )a+ital of the )ountry is thus thro(n
into the hands in (hi)h it is most li0ely to &e em+loyed (ith
ad'anta*e-
No la( )an redu)e the )ommon rate of interest &elo( the
lo(est ordinary mar0et rate at the time (hen that la( is made-
Not(ithstandin* the edi)t of 1766, &y (hi)h the "ren)h 0in*
attem+ted to redu)e the rate of interest from fi'e to four +er
)ent, money )ontinued to &e lent in "ran)e at fi'e +er )ent, the
la( &ein* e'aded in se'eral different (ays-
The ordinary mar0et +ri)e of land, it is to &e o&ser'ed,
de+ends e'ery(here u+on the ordinary mar0et rate of interest- The
+erson (ho has a )a+ital from (hi)h he (ishes to deri'e a
re'enue, (ithout ta0in* the trou&le to em+loy it himself,
deli&erates (hether he should &uy land (ith it or lend it out at
interest- The su+erior se)urity of land, to*ether (ith some other
ad'anta*es (hi)h almost e'ery(here attend u+on this s+e)ies of
+ro+erty, (ill *enerally dis+ose him to )ontent himself (ith a
smaller re'enue from land than (hat he mi*ht ha'e &y lendin* out
his money at interest- These ad'anta*es are suffi)ient to
)om+ensate a )ertain differen)e of re'enue/ &ut they (ill
)om+ensate a )ertain differen)e only/ and if the rent of land
should fall short of the interest of money &y a *reater
differen)e, no&ody (ould &uy land, (hi)h (ould soon redu)e its
ordinary +ri)e- On the )ontrary, if the ad'anta*es should mu)h
more than )om+ensate the differen)e, e'ery&ody (ould &uy land,
(hi)h a*ain (ould soon raise its ordinary +ri)e- When interest
(as at ten +er )ent, land (as )ommonly sold for ten and t(el'e
years= +ur)hase- As interest sun0 to si1, fi'e, and four +er
)ent, the +ri)e of land rose to t(enty, fi'e8and8t(enty, and
thirty years= +ur)hase- The mar0et rate of interest is hi*her in
"ran)e than in $n*land/ and the )ommon +ri)e of land is lo(er- In
$n*land it )ommonly sells at thirty, in "ran)e at t(enty years=
+ur)hase-
C#AT$R 5
Of the Different $m+loyment of Ca+itals
T#OU6# all )a+itals are destined for the maintenan)e of
+rodu)ti'e la&our only, yet the quantity of that la&our (hi)h
equal )a+itals are )a+a&le of +uttin* into motion 'aries
e1tremely a))ordin* to the di'ersity of their em+loyment/ as does
li0e(ise the 'alue (hi)h that em+loyment adds to the annual
+rodu)e of the land and la&our of the )ountry-
A )a+ital may &e em+loyed in four different (ays3 either,
first, in +ro)urin* the rude +rodu)e annually required for the
use and )onsum+tion of the so)iety/ or, se)ondly, in
manufa)turin* and +re+arin* that rude +rodu)e for immediate use
and )onsum+tion/ or, thirdly, in trans+ortin* either the rude or
manufa)tured +rodu)e from the +la)es (here they a&ound to those
(here they are (anted/ or, lastly, in di'idin* +arti)ular
+ortions of either into su)h small +ar)els as suit the o))asional
demands of those (ho (ant them- In the first (ay are em+loyed the
)a+itals of all those (ho underta0e the im+ro'ement or
)ulti'ation of lands, mines, or fisheries/ in the se)ond, those
of all master manufa)turers/ in the third, those of all (holesale
mer)hants/ and in the fourth, those of all retailers- It is
diffi)ult to )on)ei'e that a )a+ital should &e em+loyed in any
(ay (hi)h may not &e )lassed under some one or other of those
four-
$a)h of these four methods of em+loyin* a )a+ital is
essentially ne)essary either to the e1isten)e or e1tension of the
other three, or to the *eneral )on'enien)y of the so)iety-
Unless a )a+ital (as em+loyed in furnishin* rude +rodu)e to
a )ertain de*ree of a&undan)e, neither manufa)tures nor trade of
any 0ind )ould e1ist-
Unless a )a+ital (as em+loyed in manufa)turin* that +art of
the rude +rodu)e (hi)h requires a *ood deal of +re+aration &efore
it )an &e fit for use and )onsum+tion, it either (ould ne'er &e
+rodu)ed, &e)ause there )ould &e no demand for it/ or if it (as
+rodu)ed s+ontaneously, it (ould &e of no 'alue in e1)han*e, and
)ould add nothin* to the (ealth of the so)iety-
Unless a )a+ital (as em+loyed in trans+ortin* either the
rude or manufa)tured +rodu)e from the +la)es (here it a&ounds to
those (here it is (anted, no more of either )ould &e +rodu)ed
than (as ne)essary for the )onsum+tion of the nei*h&ourhood- The
)a+ital of the mer)hant e1)han*es the sur+lus +rodu)e of one
+la)e for that of another, and thus en)oura*es the industry and
in)reases the en2oyments of &oth-
Unless a )a+ital (as em+loyed in &rea0in* and di'idin*
)ertain +ortions either of the rude or manufa)tured +rodu)e into
su)h small +ar)els as suit the o))asional demands of those (ho
(ant them, e'ery man (ould &e o&li*ed to +ur)hase a *reater
quantity of the *oods he (anted than his immediate o))asions
required- If there (as no su)h trade as a &ut)her, for e1am+le,
e'ery man (ould &e o&li*ed to +ur)hase a (hole o1 or a (hole
shee+ at a time- This (ould *enerally &e in)on'enient to the
ri)h, and mu)h more so to the +oor- If a +oor (or0man (as o&li*ed
to +ur)hase a month=s or si1 months= +ro'isions at a time, a
*reat +art of the sto)0 (hi)h he em+loys as a )a+ital in the
instruments of his trade, or in the furniture of his sho+, and
(hi)h yields him a re'enue- he (ould &e for)ed to +la)e in that
+art of his sto)0 (hi)h is reser'ed for immediate )onsum+tion,
and (hi)h yields him no re'enue- Nothin* )an &e more )on'enient
for su)h a +erson than to &e a&le to +ur)hase his su&sisten)e
from day to day, or e'en from hour to hour, as he (ants it- #e is
there&y ena&led to em+loy almost his (hole sto)0 as a )a+ital- #e
is thus ena&led to furnish (or0 to a *reater 'alue, and the
+rofit, (hi)h he ma0es &y it in this (ay, mu)h more than
)om+ensates the additional +ri)e (hi)h the +rofit of the retailer
im+oses u+on the *oods- The +re2udi)es of some +oliti)al (riters
a*ainst sho+0ee+ers and tradesmen are alto*ether (ithout
foundation- So far is it from &ein* ne)essary either to ta1 them
or to restri)t their num&ers that they )an ne'er &e multi+lied so
as to hurt the +u&li), thou*h they may so as to hurt one another-
The quantity of *ro)ery *oods, for e1am+le, (hi)h )an &e sold in
a +arti)ular to(n is limited &y the demand of that to(n and its
nei*h&ourhood- The )a+ital, therefore, (hi)h )an &e em+loyed in
the *ro)ery trade )annot e1)eed (hat is suffi)ient to +ur)hase
that quantity- If this )a+ital is di'ided &et(een t(o different
*ro)ers, their )om+etition (ill tend to ma0e &oth of them sell
)hea+er than if it (ere in the hands of one only/ and if it (ere
di'ided amon* t(enty, their )om+etition (ould &e 2ust so mu)h the
*reater, and the )han)e of their )om&inin* to*ether, in order to
raise the +ri)e, 2ust so mu)h the less- Their )om+etition mi*ht
+erha+s ruin some of themsel'es/ &ut to ta0e )are of this is the
&usiness of the +arties )on)erned, and it may safely &e trusted
to their dis)retion- It )an ne'er hurt either the )onsumer or the
+rodu)er/ on the )ontrary, it must tend to ma0e the retailers
&oth sell )hea+er and &uy dearer than if the (hole trade (as
mono+oli;ed &y one or t(o +ersons- Some of them, +erha+s, may
sometimes de)oy a (ea0 )ustomer to &uy (hat he has no o))asion
for- This e'il, ho(e'er, is of too little im+ortan)e to deser'e
the +u&li) attention, nor (ould it ne)essarily &e +re'ented &y
restri)tin* their num&ers- It is not the multitude of ale8houses,
to *i'e the most sus+i)ious e1am+le, that o))asions a *eneral
dis+osition to drun0enness amon* the )ommon +eo+le/ &ut that
dis+osition arisin* from other )auses ne)essarily *i'es
em+loyment to a multitude of ale8houses-
The +ersons (hose )a+itals are em+loyed in any of those four
(ays are themsel'es +rodu)ti'e la&ourers- Their la&our, (hen
+ro+erly dire)ted, fi1es and reali;es itself in the su&2e)t or
'endi&le )ommodity u+on (hi)h it is &esto(ed, and *enerally adds
to its +ri)e the 'alue at least of their o(n maintenan)e and
)onsum+tion- The +rofits of the farmer, of the manufa)turer, of
the mer)hant, and retailer, are all dra(n from the +ri)e of the
*oods (hi)h the t(o first +rodu)e, and the t(o last &uy and sell-
$qual )a+itals, ho(e'er, em+loyed in ea)h of those four different
(ays, (ill immediately +ut into motion 'ery different quantities
of +rodu)ti'e la&our, and au*ment, too, in 'ery different
+ro+ortions the 'alue of the annual +rodu)e of the land and
la&our of the so)iety to (hi)h they &elon*-
The )a+ital of the retailer re+la)es, to*ether (ith its
+rofits, that of the mer)hant of (hom he +ur)hases *oods, and
there&y ena&les him to )ontinue his &usiness- The retailer
himself is the only +rodu)ti'e la&ourer (hom it immediately
em+loys- In his +rofits )onsists the (hole 'alue (hi)h its
em+loyment adds to the annual +rodu)e of the land and la&our of
the so)iety-
The )a+ital of the (holesale mer)hant re+la)es, to*ether
(ith their +rofits, the )a+itals of the farmers and manufa)turers
of (hom he +ur)hases the rude and manufa)tured +rodu)e (hi)h he
deals in, and there&y ena&les them to )ontinue their res+e)ti'e
trades- It is &y this ser'i)e )hiefly that he )ontri&utes
indire)tly to su++ort the +rodu)ti'e la&our of the so)iety, and
to in)rease the 'alue of its annual +rodu)e- #is )a+ital em+loys,
too, the sailors and )arriers (ho trans+ort his *oods from one
+la)e to another, and it au*ments the +ri)e of those *oods &y the
'alue, not only of his +rofits, &ut of their (a*es- This is all
the +rodu)ti'e la&our (hi)h it immediately +uts into motion, and
all the 'alue (hi)h it immediately adds to the annual +rodu)e-
Its o+eration in &oth these res+e)ts is a *ood deal su+erior to
that of the )a+ital of the retailer-
art of the )a+ital of the master manufa)turer is em+loyed
as a fi1ed )a+ital in the instruments of his trade, and re+la)es,
to*ether (ith its +rofits, that of some other artifi)er of (hom
he +ur)hases them- art of his )ir)ulatin* )a+ital is em+loyed in
+ur)hasin* materials, and re+la)es, (ith their +rofits, the
)a+itals of the farmers and miners of (hom he +ur)hases them- .ut
a *reat +art of it is al(ays, either annually, or in a mu)h
shorter +eriod, distri&uted amon* the different (or0men (hom he
em+loys- It au*ments the 'alue of those materials &y their (a*es,
and &y their matters= +rofits u+on the (hole sto)0 of (a*es,
materials, and instruments of trade em+loyed in the &usiness- It
+uts immediately into motion, therefore, a mu)h *reater quantity
of +rodu)ti'e la&our, and adds a mu)h *reater 'alue to the annual
+rodu)e of the land and la&our of the so)iety than an equal
)a+ital in the hands of any (holesale mer)hant-
No equal )a+ital +uts into motion a *reater quantity of
+rodu)ti'e la&our than that of the farmer- Not only his la&ourin*
ser'ants, &ut his la&ourin* )attle, are +rodu)ti'e la&ourers- In
a*ri)ulture, too, nature la&ours alon* (ith man/ and thou*h her
la&our )osts no e1+ense, its +rodu)e has its 'alue, as (ell as
that of the most e1+ensi'e (or0men- The most im+ortant o+erations
of a*ri)ulture seem intended not so mu)h to in)rease, thou*h they
do that too, as to dire)t the fertility of nature to(ards the
+rodu)tion of the +lants most +rofita&le to man- A field
o'er*ro(n (ith &riars and &ram&les may frequently +rodu)e as
*reat a quantity of 'e*eta&les as the &est )ulti'ated 'ineyard or
)orn field- lantin* and tilla*e frequently re*ulate more than
they animate the a)ti'e fertility of nature/ and after all their
la&our, a *reat +art of the (or0 al(ays remains to &e done &y
her- The la&ourers and la&ourin* )attle, therefore, em+loyed in
a*ri)ulture, not only o))asion, li0e the (or0men in manufa)tures,
the re+rodu)tion of a 'alue equal to their o(n )onsum+tion, or to
the )a+ital (hi)h em+loys them, to*ether (ith its o(ners=
+rofits/ &ut of a mu)h *reater 'alue- O'er and a&o'e the )a+ital
of the farmer and all its +rofits, they re*ularly o))asion the
re+rodu)tion of the rent of the landlord- This rent may &e
)onsidered as the +rodu)e of those +o(ers of nature, the use of
(hi)h the landlord lends to the farmer- It is *reater or smaller
a))ordin* to the su++osed e1tent of those +o(ers, or in other
(ords, a))ordin* to the su++osed natural or im+ro'ed fertility of
the land- It is the (or0 of nature (hi)h remains after dedu)tin*
or )om+ensatin* e'erythin* (hi)h )an &e re*arded as the (or0 of
man- It is seldom less than a fourth, and frequently more than a
third of the (hole +rodu)e- No equal quantity of +rodu)ti'e
la&our em+loyed in manufa)tures )an e'er o))asion so *reat a
re+rodu)tion- In them nature does nothin*/ man does all/ and the
re+rodu)tion must al(ays &e in +ro+ortion to the stren*th of the
a*ents that o))asion it- The )a+ital em+loyed in a*ri)ulture,
therefore, not only +uts into motion a *reater quantity of
+rodu)ti'e la&our than any equal )a+ital em+loyed in
manufa)tures, &ut in +ro+ortion, too, to the quantity of
+rodu)ti'e la&our (hi)h it em+loys, it adds a mu)h *reater 'alue
to the annual +rodu)e of the land and la&our of the )ountry, to
the real (ealth and re'enue of its inha&itants- Of all the (ays
in (hi)h a )a+ital )an &e em+loyed, it is &y far the most
ad'anta*eous to the so)iety-
The )a+itals em+loyed in the a*ri)ulture and in the retail
trade of any so)iety must al(ays reside (ithin that so)iety-
Their em+loyment is )onfined almost to a +re)ise s+ot, to the
farm and to the sho+ of the retailer- They must *enerally, too,
thou*h there are some e1)e+tions to this, &elon* to resident
mem&ers of the so)iety-
The )a+ital of a (holesale mer)hant, on the )ontrary, seems
to ha'e no fi1ed or ne)essary residen)e any(here, &ut may (ander
a&out from +la)e to +la)e, a))ordin* as it )an either &uy )hea+
or sell dear-
The )a+ital of the manufa)turer must no dou&t reside (here
the manufa)ture is )arried on/ &ut (here this shall &e is not
al(ays ne)essarily determined- It may frequently &e at a *reat
distan)e &oth from the +la)e (here the materials *ro(, and from
that (here the )om+lete manufa)ture is )onsumed- !yons is 'ery
distant &oth from the +la)es (hi)h afford the materials of its
manufa)tures, and from those (hi)h )onsume them- The +eo+le of
fashion in Si)ily are )lothed in sil0s made in other )ountries,
from the materials (hi)h their o(n +rodu)es- art of the (ool of
S+ain is manufa)tured in 6reat .ritain, and some +art of that
)loth is after(ards sent &a)0 to S+ain-
Whether the mer)hant (hose )a+ital e1+orts the sur+lus
+rodu)e of any so)iety &e a nati'e or a forei*ner is of 'ery
little im+ortan)e- If he is a forei*ner, the num&er of their
+rodu)ti'e la&ourers is ne)essarily less than if he had &een a
nati'e &y one man only, and the 'alue of their annual +rodu)e &y
the +rofits of that one man- The sailors or )arriers (hom he
em+loys may still &elon* indifferently either to his )ountry or
to their )ountry, or to some third )ountry, in the same manner as
if he had &een a nati'e- The )a+ital of a forei*ner *i'es a 'alue
to their sur+lus +rodu)e equally (ith that of a nati'e &y
e1)han*in* it for somethin* for (hi)h there is a demand at home-
It as effe)tually re+la)es the )a+ital of the +erson (ho +rodu)es
that sur+lus, and as effe)tually ena&les him to )ontinue his
&usiness/ the ser'i)e &y (hi)h the )a+ital of a (holesale
mer)hant )hiefly )ontri&utes to su++ort the +rodu)ti'e la&our,
and to au*ment the 'alue of the annual +rodu)e of the so)iety to
(hi)h he &elon*s-
It is of more )onsequen)e that the )a+ital of the
manufa)turer should reside (ithin the )ountry- It ne)essarily
+uts into motion a *reater quantity of +rodu)ti'e la&our, and
adds a *reater 'alue to the annual +rodu)e of the land and la&our
of the so)iety- It may, ho(e'er, &e 'ery useful to the )ountry,
thou*h it should not reside (ithin it- The )a+itals of the
.ritish manufa)turers (ho (or0 u+ the fla1 and hem+ annually
im+orted from the )oasts of the .alti) are surely 'ery useful to
the )ountries (hi)h +rodu)e them- Those materials are a +art of
the sur+lus +rodu)e of those )ountries (hi)h, unless it (as
annually e1)han*ed for somethin* (hi)h is in demand there, (ould
&e of no 'alue, and (ould soon )ease to &e +rodu)ed- The
mer)hants (ho e1+ort it re+la)e the )a+itals of the +eo+le (ho
+rodu)e it, and there&y en)oura*e them to )ontinue the
+rodu)tion/ and the .ritish manufa)turers re+la)e the )a+itals of
those mer)hants-
A +arti)ular )ountry, in the same manner as a +arti)ular
+erson, may frequently not ha'e )a+ital suffi)ient &oth to
im+ro'e and )ulti'ate all its lands, to manufa)ture and +re+are
their (hole rude +rodu)e for immediate use and )onsum+tion, and
to trans+ort the sur+lus +art either of the rude or manufa)tured
+rodu)e to those distant mar0ets (here it )an &e e1)han*ed for
somethin* for (hi)h there is a demand at home- The inha&itants of
many different +arts of 6reat .ritain ha'e not )a+ital suffi)ient
to im+ro'e and )ulti'ate all their lands- The (ool of the
southern )ounties of S)otland is, a *reat +art of it, after a
lon* land )arria*e throu*h 'ery &ad roads, manufa)tured in
7or0shire, for (ant of )a+ital to manufa)ture it at home- There
are many little manufa)turin* to(ns in 6reat .ritain, of (hi)h
the inha&itants ha'e not )a+ital suffi)ient to trans+ort the
+rodu)e of their o(n industry to those distant mar0ets (here
there is demand and )onsum+tion for it- If there are any
mer)hants amon* them, they are +ro+erly only the a*ents of
(ealthier mer)hants (ho reside in some of the *reater )ommer)ial
)ities-
When the )a+ital of any )ountry is not suffi)ient for all
those three +ur+oses, in +ro+ortion as a *reater share of it is
em+loyed in a*ri)ulture, the *reater (ill &e the quantity of
+rodu)ti'e la&our (hi)h it +uts into motion (ithin the )ountry/
as (ill li0e(ise &e the 'alue (hi)h its em+loyment adds to the
annual +rodu)e of the land and la&our of the so)iety- After
a*ri)ulture, the )a+ital em+loyed in manufa)tures +uts into
motion the *reatest quantity of +rodu)ti'e la&our, and adds the
*reatest 'alue to the annual +rodu)e- That (hi)h is em+loyed in
the trade of e1+ortation has the least effe)t of any of the
three-
The )ountry, indeed, (hi)h has not )a+ital suffi)ient for
all those three +ur+oses has not arri'ed at that de*ree of
o+ulen)e for (hi)h it seems naturally destined- To attem+t,
ho(e'er, +rematurely and (ith an insuffi)ient )a+ital to do all
the three is )ertainly not the shortest (ay for a so)iety, no
more than it (ould &e for an indi'idual, to a)quire a suffi)ient
one- The )a+ital of all the indi'iduals of a nation has its
limits in the same manner as that of a sin*le indi'idual, and is
)a+a&le of e1e)utin* only )ertain +ur+oses- The )a+ital of all
the indi'iduals of a nation is in)reased in the same manner as
that of a sin*le indi'idual &y their )ontinually a))umulatin* and
addin* to it (hate'er they sa'e out of their re'enue- It is
li0ely to in)rease the fastest, therefore, (hen it is em+loyed in
the (ay that affords the *reatest re'enue to all the inha&itants
of the )ountry, as they (ill thus &e ena&led to ma0e the *reatest
sa'in*s- .ut the re'enue of all the inha&itants of the )ountry is
ne)essarily in +ro+ortion to the 'alue of the annual +rodu)e of
their land and la&our-
It has &een the +rin)i+al )ause of the ra+id +ro*ress of our
Ameri)an )olonies to(ards (ealth and *reatness that almost their
(hole )a+itals ha'e hitherto &een em+loyed in a*ri)ulture- They
ha'e no manufa)tures, those household and )ourser manufa)tures
e1)e+ted (hi)h ne)essarily a))om+any the +ro*ress of a*ri)ulture,
and (hi)h are the (or0 of the (omen and )hildren in e'ery +ri'ate
family- The *reater +art &oth of the e1+ortation and )oastin*
trade of Ameri)a is )arried on &y the )a+itals of mer)hants (ho
reside in 6reat .ritain- $'en the stores and (arehouses from
(hi)h *oods are retailed in some +ro'in)es, +arti)ularly in
5ir*inia and 4aryland, &elon* many of them to mer)hants (ho
reside in the mother )ountry, and afford one of the fe( instan)es
of the retail trade of a so)iety &ein* )arried on &y the )a+itals
of those (ho are not resident mem&ers of it- Were the Ameri)ans,
either &y )om&ination or &y any other sort of 'iolen)e, to sto+
the im+ortation of $uro+ean manufa)tures, and, &y thus *i'in* a
mono+oly to su)h of their o(n )ountrymen as )ould manufa)ture the
li0e *oods, di'ert any )onsidera&le +art of their )a+ital into
this em+loyment, they (ould retard instead of a))eleratin* the
further in)rease in the 'alue of their annual +rodu)e, and (ould
o&stru)t instead of +romotin* the +ro*ress of their )ountry
to(ards real (ealth and *reatness- This (ould &e still more the
)ase (ere they to attem+t, in the same manner, to mono+oli;e to
themsel'es their (hole e1+ortation trade-
The )ourse of human +ros+erity, indeed, seems s)ar)e e'er to
ha'e &een of so lon* )ontinuan)e as to ena&le any *reat )ountry
to a)quire )a+ital suffi)ient for all those three +ur+oses/
unless +erha+s, (e *i'e )redit to the (onderful a))ounts of the
(ealth and )ulti'ation of China, of those of an)ient $*y+t, and
of the an)ient state of Indostan- $'en those three )ountries, the
(ealthiest, a))ordin* to all a))ounts, that e'er (ere in the
(orld, are )hiefly reno(ned for their su+eriority in a*ri)ulture
and manufa)tures- They do not a++ear to ha'e &een eminent for
forei*n trade- The an)ient $*y+tians had a su+erstitious
anti+athy to the sea/ a su+erstition nearly of the same 0ind
+re'ails amon* the Indians/ and the Chinese ha'e ne'er e1)elled
in forei*n )ommer)e- The *reater +art of the sur+lus +rodu)e of
all those three )ountries seems to ha'e &een al(ays e1+orted &y
forei*ners, (ho *a'e in e1)han*e for it somethin* else for (hi)h
they found a demand there, frequently *old and sil'er-
It is thus that the same )a+ital (ill in any )ountry +ut
into motion a *reater or smaller quantity of +rodu)ti'e la&our,
and add a *reater or smaller 'alue to the annual +rodu)e of its
land and la&our, a))ordin* to the different +ro+ortions in (hi)h
it is em+loyed in a*ri)ulture, manufa)tures, and (holesale trade-
The differen)e, too, is 'ery *reat, a))ordin* to the different
sorts of (holesale trade in (hi)h any +art of it is em+loyed-
All (holesale trade, all &uyin* in order to sell a*ain &y
(holesale, may &e redu)ed to three different sorts- The home
trade, the forei*n trade of )onsum+tion, and the )arryin* trade-
The home trade is em+loyed in +ur)hasin* in one +art of the same
)ountry, and sellin* in another, the +rodu)e of the industry of
that )ountry- It )om+rehends &oth the inland and the )oastin*
trade- The forei*n trade of )onsum+tion is em+loyed in +ur)hasin*
forei*n *oods for home )onsum+tion- The )arryin* trade is
em+loyed in transa)tin* the )ommer)e of forei*n )ountries, or in
)arryin* the sur+lus +rodu)e of one to another-
The )a+ital (hi)h is em+loyed in +ur)hasin* in one +art of
the )ountry in order to sell in another the +rodu)e of the
industry of that )ountry, *enerally re+la)es &y e'ery su)h
o+eration t(o distin)t )a+itals that had &oth &een em+loyed in
the a*ri)ulture or manufa)tures of that )ountry, and there&y
ena&les them to )ontinue that em+loyment- When it sends out from
the residen)e of the mer)hant a )ertain 'alue of )ommodities, it
*enerally &rin*s &a)0 in return at least an equal 'alue of other
)ommodities- When &oth are the +rodu)e of domesti) industry, it
ne)essarily re+la)es &y e'ery su)h o+eration t(o distin)t
)a+itals (hi)h had &oth &een em+loyed in su++ortin* +rodu)ti'e
la&our, and there&y ena&les them to )ontinue that su++ort- The
)a+ital (hi)h sends S)ot)h manufa)tures to !ondon, and &rin*s
&a)0 $n*lish )orn and manufa)tures to $din&ur*h, ne)essarily
re+la)es &y e'ery su)h o+eration, t(o .ritish )a+itals (hi)h had
&oth &een em+loyed in the a*ri)ulture or manufa)tures of 6reat
.ritain-
The )a+ital em+loyed in +ur)hasin* forei*n *oods for home
)onsum+tion, (hen this +ur)hase is made (ith the +rodu)e of
domesti) industry, re+la)es too, &y e'ery su)h o+eration, t(o
distin)t )a+itals/ &ut one of them only is em+loyed in su++ortin*
domesti) industry- The )a+ital (hi)h sends .ritish *oods to
ortu*al, and &rin*s &a)0 ortu*uese *oods to 6reat .ritain,
re+la)es &y e'ery su)h o+eration only one .ritish )a+ital- The
other is a ortu*uese one- Thou*h the returns, therefore, of the
forei*n trade of )onsum+tion should &e as qui)0 as those of the
home trade, the )a+ital em+loyed in it (ill *i'e &ut one half the
en)oura*ement to the industry or +rodu)ti'e la&our of the
)ountry-
.ut the returns of the forei*n trade of )onsum+tion are 'ery
seldom so qui)0 as those of the home trade- The returns of the
home trade *enerally )ome in &efore the end of the year, and
sometimes three or four times in the year- The returns of the
forei*n trade of )onsum+tion seldom )ome in &efore the end of the
year, and sometimes not till after t(o or three years- A )a+ital,
therefore, em+loyed in the home trade (ill sometimes ma0e t(el'e
o+erations, or &e sent out and returned t(el'e times, &efore a
)a+ital em+loyed in the forei*n trade of )onsum+tion has made
one- If the )a+itals are equal, therefore, the one (ill *i'e
four8and8t(enty times more en)oura*ement and su++ort to the
industry of the )ountry than the other-
The forei*n *oods for home )onsum+tion may sometimes &e
+ur)hased, not (ith the +rodu)e of domesti) industry, &ut (ith
some other forei*n *oods- These last, ho(e'er, must ha'e &een
+ur)hased either immediately (ith the +rodu)e of domesti)
industry, or (ith somethin* else that had &een +ur)hased (ith it/
for, the )ase of (ar and )onquest e1)e+ted, forei*n *oods )an
e'er &e a)quired &ut in e1)han*e for somethin* that had &een
+rodu)ed at home, either immediately, or after t(o or more
different e1)han*es- The effe)ts, therefore, of a )a+ital
em+loyed in su)h a rounda&out forei*n trade of )onsum+tion, are,
in e'ery res+e)t, the same as those of one em+loyed in the most
dire)t trade of the same 0ind, e1)e+t that the final returns are
li0ely to &e still more distant, as they must de+end u+on the
returns of t(o or three distin)t forei*n trades- If the fla1 and
hem+ of Ri*a are +ur)hased (ith the to&a))o of 5ir*inia, (hi)h
had &een +ur)hased (ith .ritish manufa)tures, the mer)hant must
(ait for the returns of t(o distin)t forei*n trades &efore he )an
em+loy the same )a+ital in re8+ur)hasin* a li0e quantity of
.ritish manufa)tures- If the to&a))o of 5ir*inia had &een
+ur)hased, not (ith .ritish manufa)tures, &ut (ith the su*ar and
rum of Aamai)a (hi)h had &een +ur)hased (ith those manufa)tures,
he must (ait for the returns of three- If those t(o or three
distin)t forei*n trades should ha++en to &e )arried on &y t(o or
three distin)t mer)hants, of (hom the se)ond &uys the *oods
im+orted &y the first, and the third &uys those im+orted &y the
se)ond, in order to e1+ort them a*ain, ea)h mer)hant indeed (ill
in this )ase re)ei'e the returns of his o(n )a+ital more qui)0ly/
&ut the final returns of the (hole )a+ital em+loyed in the trade
(ill &e 2ust as slo( as e'er- Whether the (hole )a+ital em+loyed
in su)h a round8a&out trade &elon* to one mer)hant or to three
)an ma0e no differen)e (ith re*ard to the )ountry, thou*h it may
(ith re*ard to the +arti)ular mer)hants- Three times a *reater
)a+ital must in &oth )ases &e em+loyed in order to e1)han*e a
)ertain 'alue of .ritish manufa)tures for a )ertain quantity of
fla1 and hem+ than (ould ha'e &een ne)essary had the manufa)tures
and the fla1 and hem+ &een dire)tly e1)han*ed for one another-
The (hole )a+ital em+loyed, therefore, in su)h a round8a&out
forei*n trade of )onsum+tion (ill *enerally *i'e less
en)oura*ement and su++ort to the +rodu)ti'e la&our of the )ountry
than an equal )a+ital em+loyed in a more dire)t trade of the same
0ind-
Whate'er &e the forei*n )ommodity (ith (hi)h the forei*n
*oods for home )onsum+tion are +ur)hased, it )an o))asion no
essential differen)e either in the nature of the trade, or in the
en)oura*ement and su++ort (hi)h it )an *i'e to the +rodu)ti'e
la&our of the )ountry from (hi)h it is )arried on- If they are
+ur)hased (ith the *old of .ra;il, for e1am+le, or (ith the
sil'er of eru, this *old and sil'er, li0e the to&a))o of
5ir*inia, must ha'e &een +ur)hased (ith somethin* that either (as
the +rodu)e of the industry of the )ountry, or that had &een
+ur)hased (ith somethin* else that (as so- So far, therefore, as
the +rodu)ti'e la&our of the )ountry is )on)erned, the forei*n
trade of )onsum+tion (hi)h is )arried on &y means of *old and
sil'er has all the ad'anta*es and all the in)on'enien)es of any
other equally round8a&out forei*n trade of )onsum+tion, and (ill
re+la)e 2ust as fast or 2ust as slo( the )a+ital (hi)h is
immediately em+loyed in su++ortin* that +rodu)ti'e la&our- It
seems e'en to ha'e one ad'anta*e o'er any other equally
rounda&out forei*n trade- The trans+ortation of those metals from
one +la)e to another, on a))ount of their small &ul0 and *reat
'alue, is less e1+ensi'e than that of almost any other forei*n
*oods of equal 'alue- Their frei*ht is mu)h less, and their
insuran)e not *reater/ and no *oods, &esides, are less lia&le to
suffer &y the )arria*e- An equal quantity of forei*n *oods,
therefore, may frequently &e +ur)hased (ith a smaller quantity of
the +rodu)e of domesti) industry, &y the inter'ention of *old and
sil'er, than &y that of any other forei*n *oods- The demand of
the )ountry may frequently, in this manner, &e su++lied more
)om+letely and at a smaller e1+ense than in any other- Whether,
&y the )ontinual e1+ortation of those metals, a trade of this
0ind is li0ely to im+o'erish the )ountry from (hi)h it is )arried
on, in any other (ay, I shall ha'e o))asion to e1amine at *reat
len*th hereafter-
That +art of the )a+ital of any )ountry (hi)h is em+loyed in
the )arryin* trade is alto*ether (ithdra(n from su++ortin* the
+rodu)ti'e la&our of that +arti)ular )ountry, to su++ort that of
some forei*n )ountries- Thou*h it may re+la)e &y e'ery o+eration
t(o distin)t )a+itals, yet neither of them &elon*s to that
+arti)ular )ountry- The )a+ital of the Dut)h mer)hant, (hi)h
)arries the )orn of oland to ortu*al, and &rin*s &a)0 the
fruits and (ines of ortu*al to oland, re+la)es &y e'ery su)h
o+eration t(o )a+itals, neither of (hi)h had &een em+loyed in
su++ortin* the +rodu)ti'e la&our of #olland/ &ut one of them in
su++ortin* that of oland, and the other that of ortu*al- The
+rofits only return re*ularly to #olland, and )onstitute the
(hole addition (hi)h this trade ne)essarily ma0es to the annual
+rodu)e of the land and la&our of that )ountry- When, indeed, the
)arryin* trade of any +arti)ular )ountry is )arried on (ith the
shi+s and sailors of that )ountry, that +art of the )a+ital
em+loyed in it (hi)h +ays the frei*ht is distri&uted amon*, and
+uts into motion, a )ertain num&er of +rodu)ti'e la&ourers of
that )ountry- Almost all nations that ha'e had any )onsidera&le
share of the )arryin* trade ha'e, in fa)t, )arried it on in this
manner- The trade itself has +ro&a&ly deri'ed its name from it,
the +eo+le of su)h )ountries &ein* the )arriers to other
)ountries- It does not, ho(e'er, seem essential to the nature of
the trade that it should &e so- A Dut)h mer)hant may, for
e1am+le, em+loy his )a+ital in transa)tin* the )ommer)e of oland
and ortu*al, &y )arryin* +art of the sur+lus +rodu)e of the one
to the other, not in Dut)h, &ut in .ritish &ottoms- It may &e
+resumed that he a)tually does so u+on some +arti)ular o))asions-
It is u+on this a))ount, ho(e'er, that the )arryin* trade has
&een su++osed +e)uliarly ad'anta*eous to su)h a )ountry as 6reat
.ritain, of (hi)h the defen)e and se)urity de+end u+on the num&er
of its sailors and shi++in*- .ut the same )a+ital may em+loy as
many sailors and shi++in*, either in the forei*n trade of
)onsum+tion, or e'en in the home trade, (hen )arried on &y
)oastin* 'essels, as it )ould in the )arryin* trade- The num&er
of sailors and shi++in* (hi)h any +arti)ular )a+ital )an em+loy
does not de+end u+on the nature of the trade, &ut +artly u+on the
&ul0 of the *oods in +ro+ortion to their 'alue, and +artly u+on
the distan)e of the +orts &et(een (hi)h they are to &e )arried/
)hiefly u+on the former of those t(o )ir)umstan)es- The )oal
trade from Ne()astle to !ondon, for e1am+le, em+loys more
shi++in* than all the )arryin* trade of $n*land, thou*h the +orts
are at no *reat distan)e- To for)e, therefore, &y e1traordinary
en)oura*ements, a lar*er share of the )a+ital of any )ountry into
the )arryin* trade than (hat (ould naturally *o to it (ill not
al(ays ne)essarily in)rease the shi++in* of that )ountry-
The )a+ital, therefore, em+loyed in the home trade of any
)ountry (ill *enerally *i'e en)oura*ement and su++ort to a
*reater quantity of +rodu)ti'e la&our in that )ountry, and
in)rease the 'alue of its annual +rodu)e more than an equal
)a+ital em+loyed in the forei*n trade of )onsum+tion3 and the
)a+ital em+loyed in this latter trade has in &oth these res+e)ts
a still *reater ad'anta*e o'er an equal )a+ital em+loyed in the
)arryin* trade- The ri)hes, and so far as +o(er de+ends u+on
ri)hes, the +o(er of e'ery )ountry must al(ays &e in +ro+ortion
to the 'alue of its annual +rodu)e, the fund from (hi)h all ta1es
must ultimately &e +aid- .ut the *reat o&2e)t of the +oliti)al
e)onomy of e'ery )ountry is to in)rease the ri)hes and +o(er of
that )ountry- It ou*ht, therefore, to *i'e no +referen)e nor
su+erior en)oura*ement to the forei*n trade of )onsum+tion a&o'e
the home trade, nor to the )arryin* trade a&o'e either of the
other t(o- It ou*ht neither to for)e nor to allure into either of
those t(o )hannels a *reater share of the )a+ital of the )ountry
than (hat (ould naturally flo( into them of its o(n a))ord-
When the +rodu)e of any +arti)ular &ran)h of industry
e1)eeds (hat the demand of the )ountry requires, the sur+lus must
&e sent a&road and e1)han*ed for somethin* for (hi)h there is a
demand at home- Without su)h e1+ortation a +art of the +rodu)ti'e
la&our of the )ountry must )ease, and the 'alue of its annual
+rodu)e diminish- The land and la&our of 6reat .ritain +rodu)e
*enerally more )orn, (oollens, and hard(are than the demand of
the home mar0et requires- The sur+lus +art of them, therefore,
must &e sent a&road, and e1)han*ed for somethin* for (hi)h there
is a demand at home- It is only &y means of su)h e1+ortation that
this sur+lus )an a)quire a 'alue suffi)ient to )om+ensate the
la&our and e1+ense of +rodu)in* it- The nei*h&ourhood of the
sea8)oast, and the &an0s of all na'i*a&le ri'ers, are
ad'anta*eous situations for industry, only &e)ause they
fa)ilitate the e1+ortation and e1)han*e of su)h sur+lus +rodu)e
for somethin* else (hi)h is more in demand there-
When the forei*n *oods (hi)h are thus +ur)hased (ith the
sur+lus +rodu)e of domesti) industry e1)eed the demand of the
home mar0et, the sur+lus +art of them must &e sent a&road a*ain
and e1)han*ed for somethin* more in demand at home- A&out
ninety8si1 thousand ho*sheads of to&a))o are annually +ur)hased
in 5ir*inia and 4aryland (ith a +art of the sur+lus +rodu)e of
.ritish industry- .ut the demand of 6reat .ritain does not
require, +erha+s, more than fourteen thousand- If the remainin*
ei*hty8t(o thousand, therefore, )ould not &e sent a&road and
e1)han*ed for somethin* more in demand at home, the im+ortation
of them must )ease immediately, and (ith it the +rodu)ti'e la&our
of all those inha&itants of 6reat .ritain, (ho are at +resent
em+loyed in +re+arin* the *oods (ith (hi)h these ei*hty8t(o
thousand ho*sheads are annually +ur)hased- Those *oods, (hi)h are
+art of the +rodu)e of the land and la&our of 6reat .ritain,
ha'in* no mar0et at home, and &ein* de+ri'ed of that (hi)h they
had a&road, must )ease to &e +rodu)ed- The most round8a&out
forei*n trade of )onsum+tion, therefore may, u+on some o))asions,
&e as ne)essary for su++ortin* the +rodu)ti'e la&our of the
)ountry, and the 'alue of its annual +rodu)e, as the most dire)t-
When the )a+ital sto)0 of any )ountry is in)reased to su)h a
de*ree that it )annot &e all em+loyed in su++lyin* the
)onsum+tion and su++ortin* the +rodu)ti'e la&our of that
+arti)ular )ountry, the sur+lus +art of it naturally dis*or*es
itself into the )arryin* trade, and is em+loyed in +erformin* the
same offi)es to other )ountries- The )arryin* trade is the
natural effe)t and sym+tom of *reat national (ealth/ &ut it does
not seem to &e the natural )ause of it- Those statesmen (ho ha'e
&een dis+osed to fa'our it (ith +arti)ular en)oura*ements seem to
ha'e mista0en the effe)t and sym+tom for the )ause- #olland, in
+ro+ortion to the e1tent of the land and the num&er of its
inha&itants, &y far the ri)hest )ountry in $uro+e, has,
a))ordin*ly, the *reatest share of the )arryin* trade of $uro+e-
$n*land, +erha+s the se)ond ri)hest )ountry of $uro+e, is
li0e(ise su++osed to ha'e a )onsidera&le share of it/ thou*h (hat
)ommonly +asses for the )arryin* trade of $n*land (ill
frequently, +erha+s, &e found to &e no more than a round8a&out
forei*n trade of )onsum+tion- Su)h are, in a *reat measure, the
trades (hi)h )arry the *oods of the $ast and West Indies, and of
Ameri)a, to different $uro+ean mar0ets- Those *oods are *enerally
+ur)hased either immediately (ith the +rodu)e of .ritish
industry, or (ith somethin* else (hi)h had &een +ur)hased (ith
that +rodu)e, and the final returns of those trades are *enerally
used or )onsumed in 6reat .ritain- The trade (hi)h is )arried on
in .ritish &ottoms &et(een the different +orts of the
4editerranean, and some trade of the same 0ind )arried on &y
.ritish mer)hants &et(een the different +orts of India, ma0e,
+erha+s, the +rin)i+al &ran)hes of (hat is +ro+erly the )arryin*
trade of 6reat .ritain-
The e1tent of the home trade and of the )a+ital (hi)h )an &e
em+loyed in it, is ne)essarily limited &y the 'alue of the
sur+lus +rodu)e of all those distant +la)es (ithin the )ountry
(hi)h ha'e o))asion to e1)han*e their res+e)ti'e +rodu)tions (ith
another3 that of the forei*n trade of )onsum+tion, &y the 'alue
of the sur+lus +rodu)e of the (hole )ountry and of (hat )an &e
+ur)hased (ith it3 that of the )arryin* trade &y the 'alue of the
sur+lus +rodu)e of all the different )ountries in the (orld- Its
+ossi&le e1tent, therefore, is in a manner infinite in )om+arison
of that of the other t(o, and is )a+a&le of a&sor&in* the
*reatest )a+itals-
The )onsideration of his o(n +ri'ate +rofit is the sole
moti'e (hi)h determines the o(ner of any )a+ital to em+loy it
either in a*ri)ulture, in manufa)tures, or in some +arti)ular
&ran)h of the (holesale or retail trade- The different quantities
of +rodu)ti'e la&our (hi)h it may +ut into motion, and the
different 'alues (hi)h it may add to the annual, +rodu)e of the
land and la&our of the so)iety, a))ordin* as it is em+loyed in
one or other of those different (ays, ne'er enter into his
thou*hts- In )ountries, therefore, (here a*ri)ulture is the most
+rofita&le of all em+loyments, and farmin* and im+ro'in* the most
dire)t roads to a s+lendid fortune, the )a+itals of indi'iduals
(ill naturally &e em+loyed in the manner most ad'anta*eous to the
(hole so)iety- The +rofits of a*ri)ulture, ho(e'er, seem to ha'e
no su+eriority o'er those of other em+loyments in any +art of
$uro+e- ro2e)tors, indeed, in e'ery )orner of it, ha'e (ithin
these fe( years amused the +u&li) (ith most ma*nifi)ent a))ounts
of the +rofits to &e made &y the )ulti'ation and im+ro'ement of
land- Without enterin* into any +arti)ular dis)ussion of their
)al)ulations, a 'ery sim+le o&ser'ation may satisfy us that the
result of them must &e false- We see e'ery day the most s+lendid
fortunes that ha'e &een a)quired in the )ourse of a sin*le life
&y trade and manufa)turers, frequently from a 'ery small )a+ital,
sometimes from no )a+ital- A sin*le instan)e of su)h a fortune
a)quired &y a*ri)ulture in the same time, and from su)h a
)a+ital, has not, +erha+s, o))urred in $uro+e durin* the )ourse
of the +resent )entury- In all the *reat )ountries of $uro+e,
ho(e'er, mu)h *ood land still remains un)ulti'ated, and the
*reater +art of (hat is )ulti'ated is far from &ein* im+ro'ed to
the de*ree of (hi)h it is )a+a&le- A*ri)ulture, therefore, is
almost e'ery(here )a+a&le of a&sor&in* a mu)h *reater )a+ital
than has e'er yet &een em+loyed in it- What )ir)umstan)es in the
+oli)y of $uro+e ha'e *i'en the trades (hi)h are )arried on in
to(ns so *reat an ad'anta*e o'er that (hi)h is )arried on in the
)ountry that +ri'ate +ersons frequently find it more for their
ad'anta*e to em+loy their )a+itals in the most distant )arryin*
trades of Asia and Ameri)a than in the im+ro'ement and
)ulti'ation of the most fertile fields in their o(n
nei*h&ourhood, I shall endea'our to e1+lain at full len*th in the
t(o follo(in* &oo0s-
.OO% T#R$$
O" T#$ DI""$R$NT RO6R$SS O" OU!$NC$ IN DI""$R$NT NATIONS
O" T#$ NATURA! RO6R$SS O" OU!$NC$
T#$ *reat )ommer)e of e'ery )i'ilised so)iety is that
)arried on &et(een the inha&itants of the to(n and those of the
)ountry- It )onsists in the e1)han*e of rude for manufa)tured
+rodu)e, either immediately, or &y the inter'ention of money, or
of some sort of +a+er (hi)h re+resents money- The )ountry
su++lies the to(n (ith the means of su&sisten)e and the materials
of manufa)ture- The to(n re+ays this su++ly &y sendin* &a)0 a
+art of the manufa)tured +rodu)e to the inha&itants of the
)ountry- The to(n, in (hi)h there neither is nor )an &e any
re+rodu)tion of su&stan)es, may 'ery +ro+erly &e said to *ain its
(hole (ealth and su&sisten)e from the )ountry- We must not,
ho(e'er, u+on this a))ount, ima*ine that the *ain of the to(n is
the loss of the )ountry- The *ains of &oth are mutual and
re)i+ro)al, and the di'ision of la&our is in this, as in all
other )ases, ad'anta*eous to all the different +ersons em+loyed
in the 'arious o))u+ations into (hi)h it is su&di'ided- The
inha&itants of the )ountry +ur)hase of the to(n a *reater
quantity of manufa)tured *oods, (ith the +rodu)e of a mu)h
smaller quantity of their o(n la&our, than they must ha'e
em+loyed had they attem+ted to +re+are them themsel'es- The to(n
affords a mar0et for the sur+lus +rodu)e of the )ountry, or (hat
is o'er and a&o'e the maintenan)e of the )ulti'ators, and it is
there that the inha&itants of the )ountry e1)han*e it for
somethin* else (hi)h is in demand amon* them- The *reater the
num&er and re'enue of the inha&itants of the to(n, the more
e1tensi'e is the mar0et (hi)h it affords to those of the )ountry/
and the more e1tensi'e that mar0et, it is al(ays the more
ad'anta*eous to a *reat num&er- The )orn (hi)h *ro(s (ithin a
mile of the to(n sells there for the same +ri)e (ith that (hi)h
)omes from t(enty miles distan)e- .ut the +ri)e of the latter
must *enerally not only +ay the e1+ense of raisin* and &rin*in*
it to mar0et, &ut afford, too, the ordinary +rofits of
a*ri)ulture to the farmer- The +ro+rietors and )ulti'ators of the
)ountry, therefore, (hi)h lies in the nei*h&ourhood of the to(n,
o'er and a&o'e the ordinary +rofits of a*ri)ulture, *ain, in the
+ri)e of (hat they sell, the (hole 'alue of the )arria*e of the
li0e +rodu)e that is &rou*ht from more distant +arts, and they
ha'e, &esides, the (hole 'alue of this )arria*e in the +ri)e of
(hat they &uy- Com+are the )ulti'ation of the lands in the
nei*h&ourhood of any )onsidera&le to(n (ith that of those (hi)h
lie at some distan)e from it, and you (ill easily satisfy
yourself ho( mu)h the )ountry is &enefited &y the )ommer)e of the
to(n- Amon* all the a&surd s+e)ulations that ha'e &een +ro+a*ated
)on)ernin* the &alan)e of trade, it has ne'er &een +retended that
either the )ountry loses &y its )ommer)e (ith the to(n, or the
to(n &y that (ith the )ountry (hi)h maintains it-
As su&sisten)e is, in the nature of thin*s, +rior to
)on'enien)y and lu1ury, so the industry (hi)h +ro)ures the former
must ne)essarily &e +rior to that (hi)h ministers to the latter-
The )ulti'ation and im+ro'ement of the )ountry, therefore, (hi)h
affords su&sisten)e, must, ne)essarily, &e +rior to the in)rease
of the to(n, (hi)h furnishes only the means of )on'enien)y and
lu1ury- It is the sur+lus +rodu)e of the )ountry only, or (hat is
o'er and a&o'e the maintenan)e of the )ulti'ators, that
)onstitutes the su&sisten)e of the to(n, (hi)h )an therefore
in)rease only (ith the in)rease of this sur+lus +rodu)e- The
to(n, indeed, may not al(ays deri'e its (hole su&sisten)e from
the )ountry in its nei*h&ourhood, or e'en from the territory to
(hi)h it &elon*s, &ut from 'ery distant )ountries/ and this,
thou*h it forms no e1)e+tion from the *eneral rule, has
o))asioned )onsidera&le 'ariations in the +ro*ress of o+ulen)e in
different a*es and nations-
That order of thin*s (hi)h ne)essity im+oses in *eneral,
thou*h not in e'ery +arti)ular )ountry, is, in e'ery +arti)ular
)ountry, +romoted &y the natural in)linations of man- If human
institutions had ne'er th(arted those natural in)linations, the
to(ns )ould no(here ha'e in)reased &eyond (hat the im+ro'ement
and )ulti'ation of the territory in (hi)h they (ere situated
)ould su++ort/ till su)h time, at least, as the (hole of that
territory (as )om+letely )ulti'ated and im+ro'ed- U+on equal, or
nearly equal +rofits, most men (ill )hoose to em+loy their
)a+itals rather in the im+ro'ement and )ulti'ation of land than
either in manufa)tures or in forei*n trade- The man (ho em+loys
his )a+ital in land has it more under his 'ie( and )ommand, and
his fortune is mu)h less lia&le to a))idents than that of the
trader, (ho is o&li*ed frequently to )ommit it, not only to the
(inds and the (a'es, &ut to the more un)ertain elements of human
folly and in2usti)e, &y *i'in* *reat )redits in distant )ountries
to men (ith (hose )hara)ter and situation he )an seldom &e
thorou*hly a)quainted- The )a+ital of the landlord, on the
)ontrary, (hi)h is fi1ed in the im+ro'ement of his land, seems to
&e as (ell se)ured as the nature of human affairs )an admit of-
The &eauty of the )ountry &esides, the +leasures of a )ountry
life, the tranquillity of mind (hi)h it +romises, and (here'er
the in2usti)e of human la(s does not distur& it, the inde+enden)y
(hi)h it really affords, ha'e )harms that more or less attra)t
e'ery&ody/ and as to )ulti'ate the *round (as the ori*inal
destination of man, so in e'ery sta*e of his e1isten)e he seems
to retain a +redile)tion for this +rimiti'e em+loyment-
Without the assistan)e of some artifi)ers, indeed, the
)ulti'ation of land )annot &e )arried on &ut (ith *reat
in)on'enien)y and )ontinual interru+tion- Smiths, )ar+enters,
(heel(ri*hts, and +lou*h(ri*hts, masons, and &ri)0layers,
tanners, shoema0ers, and tailors are +eo+le (hose ser'i)e the
farmer has frequent o))asion for- Su)h artifi)ers, too, stand
o))asionally in need of the assistan)e of one another/ and as
their residen)e is not, li0e that of the farmer, ne)essarily tied
do(n to a +re)ise s+ot, they naturally settle in the
nei*h&ourhood of one another, and thus form a small to(n or
'illa*e- The &ut)her, the &re(er, and the &a0er soon 2oin them,
to*ether (ith many other artifi)ers and retailers, ne)essary or
useful for su++lyin* their o))asional (ants, and (ho )ontri&ute
still further to au*ment the to(n- The inha&itants of the to(n
and those of the )ountry are mutually the ser'ants of one
another- The to(n is a )ontinual fair or mar0et, to (hi)h the
inha&itants of the )ountry resort in order to e1)han*e their rude
for manufa)tured +rodu)e- It is this )ommer)e (hi)h su++lies the
inha&itants of the to(n &oth (ith the materials of their (or0,
and the means of their su&sisten)e- The quantity of the finished
(or0 (hi)h they sell to the inha&itants of the )ountry
ne)essarily re*ulates the quantity of the materials and
+ro'isions (hi)h they &uy- Neither their em+loyment nor
su&sisten)e, therefore, )an au*ment &ut in +ro+ortion to the
au*mentation of the demand from the )ountry for finished (or0/
and this demand )an au*ment only in +ro+ortion to the e1tension
of im+ro'ement and )ulti'ation- #ad human institutions,
therefore, ne'er distur&ed the natural )ourse of thin*s, the
+ro*ressi'e (ealth and in)rease of the to(ns (ould, in e'ery
+oliti)al so)iety, &e )onsequential, and in +ro+ortion to the
im+ro'ement and )ulti'ation of the territory or )ountry-
In our North Ameri)an )olonies, (here un)ulti'ated land is
still to &e had u+on easy terms, no manufa)tures for distant sale
ha'e e'er yet &een esta&lished in any of their to(ns- When an
artifi)er has a)quired a little more sto)0 than is ne)essary for
)arryin* on his o(n &usiness in su++lyin* the nei*h&ourin*
)ountry, he does not, in North Ameri)a, attem+t to esta&lish (ith
it a manufa)ture for more distant sale, &ut em+loys it in the
+ur)hase and im+ro'ement of un)ulti'ated land- "rom artifi)er he
&e)omes +lanter, and neither the lar*e (a*es nor the easy
su&sisten)e (hi)h that )ountry affords to artifi)ers )an &ri&e
him rather to (or0 for other +eo+le than for himself- #e feels
that an artifi)er is the ser'ant of his )ustomers, from (hom he
deri'es his su&sisten)e/ &ut that a +lanter (ho )ulti'ates his
o(n land, and deri'es his ne)essary su&sisten)e from the la&our
of his o(n family, is really a master, and inde+endent of all the
(orld-
In )ountries, on the )ontrary, (here there is either no
un)ulti'ated land, or none that )an &e had u+on easy terms, e'ery
artifi)er (ho has a)quired more sto)0 than he )an em+loy in the
o))asional 2o&s of the nei*h&ourhood endea'ours to +re+are (or0
for more distant sale- The smith ere)ts some sort of iron, the
(ea'er some sort of linen or (oollen manufa)tory- Those different
manufa)tures )ome, in +ro)ess of time, to &e *radually
su&di'ided, and there&y im+ro'ed and refined in a *reat 'ariety
of (ays, (hi)h may easily &e )on)ei'ed, and (hi)h it is therefore
unne)essary to e1+lain any further-
In see0in* for em+loyment to a )a+ital, manufa)tures are,
u+on equal or nearly equal +rofits, naturally +referred to
forei*n )ommer)e, for the same reason that a*ri)ulture is
naturally +referred to manufa)tures- As the )a+ital of the
landlord or farmer is more se)ure than that of the manufa)turer,
so the )a+ital of the manufa)turer, &ein* at all times more
(ithin his 'ie( and )ommand, is more se)ure than that of the
forei*n mer)hant- In e'ery +eriod, indeed, of e'ery so)iety, the
sur+lus +art &oth of the rude and manufa)tured +rodu)e, or that
for (hi)h there is no demand at home, must &e sent a&road in
order to &e e1)han*ed for somethin* for (hi)h there is some
demand at home- .ut (hether the )a+ital, (hi)h )arries this
sur+lus +rodu)e a&road, &e a forei*n or a domesti) one is of 'ery
little im+ortan)e- If the so)iety has not a)quired suffi)ient
)a+ital &oth to )ulti'ate all its lands, and to manufa)ture in
the )om+letest manner the (hole of its rude +rodu)e, there is
e'en a )onsidera&le ad'anta*e that rude +rodu)e should &e
e1+orted &y a forei*n )a+ital, in order that the (hole sto)0 of
the so)iety may &e em+loyed in more useful +ur+oses- The (ealth
of an)ient $*y+t, that of China and Indostan, suffi)iently
demonstrate that a nation may attain a 'ery hi*h de*ree of
o+ulen)e thou*h the *reater +art of its e1+ortation trade &e
)arried on &y forei*ners- The +ro*ress of our North Ameri)an and
West Indian )olonies (ould ha'e &een mu)h less ra+id had no
)a+ital &ut (hat &elon*ed to themsel'es &een em+loyed in
e1+ortin* their sur+lus +rodu)e-
A))ordin* to the natural )ourse of thin*s, therefore, the
*reater +art of the )a+ital of e'ery *ro(in* so)iety is, first,
dire)ted to a*ri)ulture, after(ards to manufa)tures, and last of
all to forei*n )ommer)e- This order of thin*s is so 'ery natural
that in e'ery so)iety that had any territory it has al(ays, I
&elie'e, &een in some de*ree o&ser'ed- Some of their lands must
ha'e &een )ulti'ated &efore any )onsidera&le to(ns )ould &e
esta&lished, and some sort of )oarse industry of the
manufa)turin* 0ind must ha'e &een )arried on in those to(ns,
&efore they )ould (ell thin0 of em+loyin* themsel'es in forei*n
)ommer)e-
.ut thou*h this natural order of thin*s must ha'e ta0en
+la)e in some de*ree in e'ery su)h so)iety, it has, in all the
modern states of $uro+e, &een, in many res+e)ts, entirely
in'erted- The forei*n )ommer)e of some of their )ities has
introdu)ed all their finer manufa)tures, or su)h as (ere fit for
distant sale/ and manufa)tures and forei*n )ommer)e to*ether ha'e
*i'en &irth to the +rin)i+al im+ro'ements of a*ri)ulture- The
manners and )ustoms (hi)h the nature of their ori*inal *o'ernment
introdu)ed, and (hi)h remained after that *o'ernment (as *reatly
altered, ne)essarily for)ed them into this unnatural and
retro*rade order-
C#AT$R II
Of the Dis)oura*ement of A*ri)ulture in the an)ient State of
$uro+e after the "all of the Roman $m+ire
W#$N the 6erman and S)ythian nations o'erran the (estern
+ro'in)es of the Roman em+ire, the )onfusions (hi)h follo(ed so
*reat a re'olution lasted for se'eral )enturies- The ra+ine and
'iolen)e (hi)h the &ar&arians e1er)ised a*ainst the an)ient
inha&itants interru+ted the )ommer)e &et(een the to(ns and the
)ountry- The to(ns (ere deserted, and the )ountry (as left
un)ulti'ated, and the (estern +ro'in)es of $uro+e, (hi)h had
en2oyed a )onsidera&le de*ree of o+ulen)e under the Roman em+ire,
sun0 into the lo(est state of +o'erty and &ar&arism- Durin* the
)ontinuan)e of those )onfusions, the )hiefs and +rin)i+al leaders
of those nations a)quired or usur+ed to themsel'es the *reater
+art of the lands of those )ountries- A *reat +art of them (as
un)ulti'ated/ &ut no +art of them, (hether )ulti'ated or
un)ulti'ated, (as left (ithout a +ro+rietor- All of them (ere
en*rossed, and the *reater +art &y a fe( *reat +ro+rietors-
This ori*inal en*rossin* of un)ulti'ated lands, thou*h a
*reat, mi*ht ha'e &een &ut a transitory e'il- They mi*ht soon
ha'e &een di'ided a*ain, and &ro0e into small +ar)els either &y
su))ession or &y alienation- The la( of +rimo*eniture hindered
them from &ein* di'ided &y su))ession3 the introdu)tion of
entails +re'ented their &ein* &ro0e into small +ar)els &y
alienation-
When land, li0e mo'a&les, is )onsidered as the means only of
su&sisten)e and en2oyment, the natural la( of su))ession di'ides
it, li0e them, amon* all the )hildren of the family/ of an of
(hom the su&sisten)e and en2oyment may &e su++osed equally dear
to the father- This natural la( of su))ession a))ordin*ly too0
+la)e amon* the Romans, (ho made no more distin)tion &et(een
elder and youn*er, &et(een male and female, in the inheritan)e of
lands than (e do in the distri&ution of mo'a&les- .ut (hen land
(as )onsidered as the means, not of su&sisten)e merely, &ut of
+o(er and +rote)tion, it (as thou*ht &etter that it should
des)end undi'ided to one- In those disorderly times e'ery *reat
landlord (as a sort of +etty +rin)e- #is tenants (ere his
su&2e)ts- #e (as their 2ud*e, and in some res+e)ts their
le*islator in +ea)e, and their leader in (ar- #e made (ar
a))ordin* to his o(n dis)retion, frequently a*ainst his
nei*h&ours, and sometimes a*ainst his so'erei*n- The se)urity of
a landed estate, therefore, the +rote)tion (hi)h its o(ner )ould
afford to those (ho d(elt on it, de+ended u+on its *reatness- To
di'ide it (as to ruin it, and to e1+ose e'ery +art of it to &e
o++ressed and s(allo(ed u+ &y the in)ursions of its nei*h&ours-
The la( of +rimo*eniture, therefore, )ame to ta0e +la)e, not
immediately, indeed, &ut in +ro)ess of time, in the su))ession of
landed estates, for the same reason that it has *enerally ta0en
+la)e in that of monar)hies, thou*h not al(ays at their first
institution- That the +o(er, and )onsequently the se)urity of the
monar)hy, may not &e (ea0ened &y di'ision, it must des)end entire
to one of the )hildren- To (hi)h of them so im+ortant a
+referen)e shall &e *i'en must &e determined &y some *eneral
rule, founded not u+on the dou&tful distin)tions of +ersonal
merit, &ut u+on some +lain and e'ident differen)e (hi)h )an admit
of no dis+ute- Amon* the )hildren of the same family, there )an
&e no indis+uta&le differen)e &ut that of se1, and that of a*e-
The male se1 is uni'ersally +referred to the female/ and (hen all
other thin*s are equal, the elder e'ery(here ta0es +la)e of the
youn*er- #en)e the ori*in of the ri*ht of +rimo*eniture, and of
(hat is )alled lineal su))ession-
!a(s frequently )ontinue in for)e lon* after the
)ir)umstan)es (hi)h first *a'e o))asion to them, and (hi)h )ould
alone render them reasona&le, are no more- In the +resent state
of $uro+e, the +ro+rietor of a sin*le a)re of land is as
+erfe)tly se)ure of his +ossession as the +ro+rietor of a hundred
thousand- The ri*ht of +rimo*eniture, ho(e'er, still )ontinues to
&e res+e)ted, and as of all institutions it is the fittest to
su++ort the +ride of family distin)tions, it is still li0ely to
endure for many )enturies- In e'ery other res+e)t, nothin* )an &e
more )ontrary to the real interest of a numerous family than a
ri*ht (hi)h, in order to enri)h one, &e**ars all the rest of the
)hildren-
$ntails are the natural )onsequen)es of the la( of
+rimo*eniture- They (ere introdu)ed to +reser'e a )ertain lineal
su))ession, of (hi)h the la( of +rimo*eniture first *a'e the
idea, and to hinder any +art of the ori*inal estate from &ein*
)arried out of the +ro+osed line either &y *ift, or de'ise, or
alienation/ either &y the folly, or &y the misfortune of any of
its su))essi'e o(ners- They (ere alto*ether un0no(n to the
Romans- Neither their su&stitutions nor fidei)ommisses &ear any
resem&lan)e to entails, thou*h some "ren)h la(yers ha'e thou*ht
+ro+er to dress the modern institution in the lan*ua*e and *ar&
of those an)ient ones-
When *reat landed estates (ere a sort of +rin)i+alities,
entails mi*ht not &e unreasona&le- !i0e (hat are )alled the
fundamental la(s of some monar)hies, they mi*ht frequently hinder
the se)urity of thousands from &ein* endan*ered &y the )a+ri)e or
e1tra'a*an)e of one man- .ut in the +resent state of $uro+e, (hen
small as (ell as *reat estates deri'e their se)urity from the
la(s of their )ountry, nothin* )an &e more )om+letely a&surd-
They are founded u+on the most a&surd of all su++ositions, the
su++osition that e'ery su))essi'e *eneration of men ha'e not an
equal ri*ht to the earth, and to all that it +ossesses/ &ut that
the +ro+erty of the +resent *eneration should &e restrained and
re*ulated a))ordin* to the fan)y of those (ho died +erha+s fi'e
hundred years a*o- $ntails, ho(e'er, are still res+e)ted throu*h
the *reater +art of $uro+e, in those )ountries +arti)ularly in
(hi)h no&le &irth is a ne)essary qualifi)ation for the en2oyment
either of )i'il or military honours- $ntails are thou*ht
ne)essary for maintainin* this e1)lusi'e +ri'ile*e of the
no&ility to the *reat offi)es and honours of their )ountry/ and
that order ha'in* usur+ed one un2ust ad'anta*e o'er the rest of
their fello( )iti;ens, lest their +o'erty should render it
ridi)ulous, it is thou*ht reasona&le that they should ha'e
another- The )ommon la( of $n*land, indeed, is said to a&hor
+er+etuities, and they are a))ordin*ly more restri)ted there than
in any other $uro+ean monar)hy/ thou*h e'en $n*land is not
alto*ether (ithout them- In S)otland more than one8fifth, +erha+s
more than one8third, +art of the (hole lands of the )ountry are
at +resent su++osed to &e under stri)t entail-
6reat tra)ts of un)ulti'ated land (ere, in this manner, not
only en*rossed &y +arti)ular families, &ut the +ossi&ility of
their &ein* di'ided a*ain (as as mu)h as +ossi&le +re)luded for
e'er- It seldom ha++ens, ho(e'er, that a *reat +ro+rietor is a
*reat im+ro'er- In the disorderly times (hi)h *a'e &irth to those
&ar&arous institutions, the *reat +ro+rietor (as suffi)iently
em+loyed in defendin* his o(n territories, or in e1tendin* his
2urisdi)tion and authority o'er those of his nei*h&ours- #e had
no leisure to attend to the )ulti'ation and im+ro'ement of land-
When the esta&lishment of la( and order afforded him this
leisure, he often (anted the in)lination, and almost al(ays the
requisite a&ilities- If the e1+ense of his house and +erson
either equalled or e1)eeded his re'enue, as it did 'ery
frequently, he had no sto)0 to em+loy in this manner- If he (as
an e)onomist, he *enerally found it more +rofita&le to em+loy his
annual sa'in*s in ne( +ur)hases than in the im+ro'ement of his
old estate- To im+ro'e land (ith +rofit, li0e all other
)ommer)ial +ro2e)ts, requires an e1a)t attention to small sa'in*s
and small *ains, of (hi)h a man &orn to a *reat fortune, e'en
thou*h naturally fru*al, is 'ery seldom )a+a&le- The situation of
su)h a +erson naturally dis+oses him to attend rather to ornament
(hi)h +leases his fan)y than to +rofit for (hi)h he has so little
o))asion- The ele*an)e of his dress, of his equi+a*e, of his
house, and household furniture, are o&2e)ts (hi)h from his
infan)y he has &een a))ustomed to ha'e some an1iety a&out- The
turn of mind (hi)h this ha&it naturally forms follo(s him (hen he
)omes to thin0 of the im+ro'ement of land- #e em&ellishes +erha+s
four or fi'e hundred a)res in the nei*h&ourhood of his house, at
ten times the e1+ense (hi)h the land is (orth after all his
im+ro'ements/ and finds that if he (as to im+ro'e his (hole
estate in the same manner, and he has little taste for any other,
he (ould &e a &an0ru+t &efore he had finished the tenth +art of
it- There still remain in &oth +arts of the United %in*dom some
*reat estates (hi)h ha'e )ontinued (ithout interru+tion in the
hands of the same family sin)e the times of feudal anar)hy-
Com+are the +resent )ondition of those estates (ith the
+ossessions of the small +ro+rietors in their nei*h&ourhood, and
you (ill require no other ar*ument to )on'in)e you ho(
unfa'oura&le su)h e1tensi'e +ro+erty is to im+ro'ement-
If little im+ro'ement (as to &e e1+e)ted from su)h *reat
+ro+rietors, still less (as to &e ho+ed for from those (ho
o))u+ied the land under them- In the an)ient state of $uro+e, the
o))u+iers of land (ere all tenants at (ill- They (ere all or
almost all sla'es/ &ut their sla'ery (as of a milder 0ind than
that 0no(n amon* the an)ient 6ree0s and Romans, or e'en in our
West Indian )olonies- They (ere su++osed to &elon* more dire)tly
to the land than to their master- They )ould, therefore, &e sold
(ith it, &ut not se+arately- They )ould marry, +ro'ided it (as
(ith the )onsent of their master/ and he )ould not after(ards
dissol'e the marria*e &y sellin* the man and (ife to different
+ersons- If he maimed or murdered any of them, he (as lia&le to
some +enalty, thou*h *enerally &ut to a small one- They (ere not,
ho(e'er, )a+a&le of a)quirin* +ro+erty- Whate'er they a)quired
(as a)quired to their master, and he )ould ta0e it from them at
+leasure- Whate'er )ulti'ation and im+ro'ement )ould &e )arried
on &y means of su)h sla'es (as +ro+erly )arried on &y their
master- It (as at his e1+ense- The seed, the )attle, and the
instruments of hus&andry (ere all his- It (as for his &enefit-
Su)h sla'es )ould a)quire nothin* &ut their daily maintenan)e- It
(as +ro+erly the +ro+rietor himself, therefore, that, in this
)ase, o))u+ied his o(n lands, and )ulti'ated them &y his o(n
&ondmen- This s+e)ies of sla'ery still su&sists in Russia,
oland, #un*ary, .ohemia, 4ora'ia, and other +arts of 6ermany- It
is only in the (estern and south(estern +ro'in)es of $uro+e that
it has *radually &een a&olished alto*ether-
.ut if *reat im+ro'ements are seldom to &e e1+e)ted from
*reat +ro+rietors, they are least of all to &e e1+e)ted (hen they
em+loy sla'es for their (or0men- The e1+erien)e of all a*es and
nations, I &elie'e, demonstrates that the (or0 done &y sla'es,
thou*h it a++ears to )ost only their maintenan)e, is in the end
the dearest of any- A +erson (ho )an a)quire no +ro+erty, )an
ha'e no other interest &ut to eat as mu)h, and to la&our as
little as +ossi&le- Whate'er (or0 he does &eyond (hat is
suffi)ient to +ur)hase his o(n maintenan)e )an &e squee;ed out of
him &y 'iolen)e only, and not &y any interest of his o(n- In
an)ient Italy, ho( mu)h the )ulti'ation of )orn de*enerated, ho(
un+rofita&le it &e)ame to the master (hen it fell under the
mana*ement of sla'es, is remar0ed &y &oth liny and Columella- In
the time of Aristotle it had not &een mu)h &etter in an)ient
6ree)e- S+ea0in* of the ideal re+u&li) des)ri&ed in the la(s of
lato, to maintain fi'e thousand idle men 9the num&er of (arriors
su++osed ne)essary for its defen)e: to*ether (ith their (omen and
ser'ants, (ould require, he says, a territory of &oundless e1tent
and fertility, li0e the +lains of .a&ylon-
The +ride of man ma0es him lo'e to domineer, and nothin*
mortifies him so mu)h as to &e o&li*ed to )ondes)end to +ersuade
his inferiors- Where'er the la( allo(s it, and the nature of the
(or0 )an afford it, therefore, he (ill *enerally +refer the
ser'i)e of sla'es to that of freemen- The +lantin* of su*ar and
to&a))o )an afford the e1+ense of sla'e8)ulti'ation- The raisin*
of )orn, it seems, in the +resent times, )annot- In the $n*lish
)olonies, of (hi)h the +rin)i+al +rodu)e is )orn, the far *reater
+art of the (or0 is done &y freemen- The late resolution of the
Jua0ers in ennsyl'ania to set at li&erty all their ne*ro sla'es
may satisfy us that their num&er )annot &e 'ery *reat- #ad they
made any )onsidera&le +art of their +ro+erty, su)h a resolution
)ould ne'er ha'e &een a*reed to- In our su*ar )olonies, on the
)ontrary, the (hole (or0 is done &y sla'es, and in our to&a))o
)olonies a 'ery *reat +art of it- The +rofits of a
su*ar8+lantation in any of our West Indian )olonies are *enerally
mu)h *reater than those of any other )ulti'ation that is 0no(n
either in $uro+e or Ameri)a/ and the +rofits of a to&a))o
+lantation, thou*h inferior to those of su*ar, are su+erior to
those of )orn, as has already &een o&ser'ed- .oth )an afford the
e1+ense of sla'e8)ulti'ation, &ut su*ar )an afford it still
&etter than to&a))o- The num&er of ne*roes a))ordin*ly is mu)h
*reater, in +ro+ortion to that of (hites, in our su*ar than in
our to&a))o )olonies-
To the sla'e )ulti'ators of an)ient times *radually
su))eeded a s+e)ies of farmers 0no(n at +resent in "ran)e &y the
name of metayers- They are )alled in !atin, Coloni +artiarii-
They ha'e &een so lon* in disuse in $n*land that at +resent I
0no( no $n*lish name for them- The +ro+rietor furnished them (ith
the seed, )attle, and instruments of hus&andry, the (hole sto)0,
in short, ne)essary for )ulti'atin* the farm- The +rodu)e (as
di'ided equally &et(een the +ro+rietor and the farmer, after
settin* aside (hat (as 2ud*ed ne)essary for 0ee+in* u+ the sto)0,
(hi)h (as restored to the +ro+rietor (hen the farmer either
quitted, or (as turned out of the farm-
!and o))u+ied &y su)h tenants is +ro+erly )ulti'ated at the
e1+ense of the +ro+rietor as mu)h as that o))u+ied &y sla'es-
There is, ho(e'er, one 'ery essential differen)e &et(een them-
Su)h tenants, &ein* freemen, are )a+a&le of a)quirin* +ro+erty,
and ha'in* a )ertain +ro+ortion of the +rodu)e of the land, they
ha'e a +lain interest that the (hole +rodu)e should &e as *reat
as +ossi&le, in order that their o(n +ro+ortion may &e so- A
sla'e, on the )ontrary, (ho )an a)quire nothin* &ut his
maintenan)e, )onsults his o(n ease &y ma0in* the land +rodu)e as
little as +ossi&le o'er and a&o'e that maintenan)e- It is
+ro&a&le that it (as +artly u+on a))ount of this ad'anta*e, and
+artly u+on a))ount of the en)roa)hments (hi)h the so'erei*n,
al(ays 2ealous of the *reat lords, *radually en)oura*ed their
'illains to ma0e u+on their authority, and (hi)h seem at last to
ha'e &een su)h as rendered this s+e)ies of ser'itude alto*ether
in)on'enient, that tenure in 'illana*e *radually (ore out throu*h
the *reater +art of $uro+e- The time and manner, ho(e'er, in
(hi)h so im+ortant a re'olution (as &rou*ht a&out is one of the
most o&s)ure +oints in modern history- The Chur)h of Rome )laims
*reat merit in it/ and it is )ertain that so early as the t(elfth
)entury, Ale1ander III +u&lished a &ull for the *eneral
eman)i+ation of sla'es- It seems, ho(e'er, to ha'e &een rather a
+ious e1hortation than a la( to (hi)h e1a)t o&edien)e (as
required from the faithful- Sla'ery )ontinued to ta0e +la)e
almost uni'ersally for se'eral )enturies after(ards, till it (as
*radually a&olished &y the 2oint o+eration of the t(o interests
a&o'e mentioned, that of the +ro+rietor on the one hand, and that
of the so'erei*n on the other- A 'illain enfran)hised, and at the
same time allo(ed to )ontinue in +ossession of the land, ha'in*
no sto)0 of his o(n, )ould )ulti'ate it only &y means of (hat the
landlord ad'an)ed to him, and must, therefore, ha'e &een (hat the
"ren)h )alled a metayer-
It )ould ne'er, ho(e'er, &e the interest e'en of this last
s+e)ies of )ulti'ators to lay out, in the further im+ro'ement of
the land, any +art of the little sto)0 (hi)h they mi*ht sa'e from
their o(n share of the +rodu)e, &e)ause the lord, (ho laid out
nothin*, (as to *et one half of (hate'er it +rodu)ed- The tithe,
(hi)h is &ut a tenth of the +rodu)e, is found to &e a 'ery *reat
hindran)e to im+ro'ement- A ta1, therefore, (hi)h amounted to one
half must ha'e &een an effe)tual &ar to it- It mi*ht &e the
interest of a metayer to ma0e the land +rodu)e as mu)h as )ould
&e &rou*ht out of it &y means of the sto)0 furnished &y the
+ro+rietor/ &ut it )ould ne'er &e his interest to mi1 any +art of
his o(n (ith it- In "ran)e, (here fi'e +arts out of si1 of the
(hole 0in*dom are said to &e still o))u+ied &y this s+e)ies of
)ulti'ators, the +ro+rietors )om+lain that their metayers ta0e
e'ery o++ortunity of em+loyin* the master=s )attle rather in
)arria*e than in )ulti'ation/ &e)ause in the one )ase they *et
the (hole +rofits to themsel'es, in the other they share them
(ith their landlord- This s+e)ies of tenants still su&sists in
some +arts of S)otland- They are )alled steel8&o( tenants- Those
an)ient $n*lish tenants, (ho are said &y Chief .aron 6il&ert and
Do)tor .la)0stone to ha'e &een rather &ailiffs of the landlord
than farmers +ro+erly so )alled, (ere +ro&a&ly of the same 0ind-
To this s+e)ies of tenan)y su))eeded, thou*h &y 'ery slo(
de*rees, farmers +ro+erly so )alled, (ho )ulti'ated the land (ith
their o(n sto)0, +ayin* a rent )ertain to the landlord- When su)h
farmers ha'e a lease for a term of years, they may sometimes find
it for their interest to lay out +art of their )a+ital in the
further im+ro'ement of the farm/ &e)ause they may sometimes
e1+e)t to re)o'er it, (ith a lar*e +rofit, &efore the e1+iration
of the lease- The +ossession e'en of su)h farmers, ho(e'er, (as
lon* e1tremely +re)arious, and still is so in many +arts of
$uro+e- They )ould &efore the e1+iration of their term &e le*ally
outed of their lease &y a ne( +ur)haser/ in $n*land, e'en &y the
fi)titious a)tion of a )ommon re)o'ery- If they (ere turned out
ille*ally &y the 'iolen)e of their master, the a)tion &y (hi)h
they o&tained redress (as e1tremely im+erfe)t- It did not al(ays
reinstate them in the +ossession of the land, &ut *a'e them
dama*es (hi)h ne'er amounted to the real loss- $'en in $n*land,
the )ountry +erha+s of $uro+e (here the yeomanry has al(ays &een
most res+e)ted, it (as not till a&out the 1Gth of #enry 5II that
the a)tion of e2e)tment (as in'ented, &y (hi)h the tenant
re)o'ers, not dama*es only &ut +ossession, and in (hi)h his )laim
is not ne)essarily )on)luded &y the un)ertain de)ision of a
sin*le assi;e- This a)tion has &een found so effe)tual a remedy
that, in the modern +ra)ti)e, (hen the landlord has o))asion to
sue for the +ossession of the land, he seldom ma0es use of the
a)tions (hi)h +ro+erly &elon* to him as landlord, the Writ of
Ri*ht or the Writ of $ntry, &ut sues in the name of his tenant &y
the Writ of $2e)tment- In $n*land, therefore, the se)urity of the
tenant is equal to that of the +ro+rietor- In $n*land, &esides, a
lease for life of forty shillin*s a year 'alue is a freehold, and
entitles the lessee to 'ote for a 4em&er of arliament/ and as a
*reat +art of the yeomanry ha'e freeholds of this 0ind, the (hole
order &e)omes res+e)ta&le to their landlords on a))ount of the
+oliti)al )onsideration (hi)h this *i'es them- There is, I
&elie'e, no(here in $uro+e, e1)e+t in $n*land, any instan)e of
the tenant &uildin* u+on the land of (hi)h he had no lease, and
trustin* that the honour of his landlord (ould ta0e no ad'anta*e
of so im+ortant an im+ro'ement- Those la(s and )ustoms so
fa'oura&le to the yeomanry ha'e +erha+s )ontri&uted more to the
+resent *randeur of $n*land than all their &oasted re*ulations of
)ommer)e ta0en to*ether-
The la( (hi)h se)ures the lon*est leases a*ainst su))essors
of e'ery 0ind is, so far as I 0no(, +e)uliar to 6reat .ritain- It
(as introdu)ed into S)otland so early as 1GGF, a la( of Aames II-
Its &enefi)ial influen)e, ho(e'er, has &een mu)h o&stru)ted &y
entails/ the heirs of entail &ein* *enerally restrained from
lettin* leases for any lon* term of years, frequently for more
than one year- A late A)t of arliament has, in this res+e)t,
some(hat sla)0ened their fetters, thou*h they are still &y mu)h
too strait- In S)otland, &esides, as no leasehold *i'es a 'ote
for a 4em&er of arliament, the yeomanry are u+on this a))ount
less res+e)ta&le to their landlords than in $n*land-
In other +arts of $uro+e, after it (as found )on'enient to
se)ure tenants &oth a*ainst heirs and +ur)hasers, the term of
their se)urity (as still limited to a 'ery short +eriod/ in
"ran)e, for e1am+le, to nine years from the )ommen)ement of the
lease- It has in that )ountry, indeed, &een lately e1tended to
t(enty8se'en, a +eriod still too short to en)oura*e the tenant to
ma0e the most im+ortant im+ro'ements- The +ro+rietors of land
(ere an)iently the le*islators of e'ery +art of $uro+e- The la(s
relatin* to land, therefore, (ere all )al)ulated for (hat they
su++osed the interest of the +ro+rietor- It (as for his interest,
they had ima*ined, that no lease *ranted &y any of his
+rede)essors should hinder him from en2oyin*, durin* a lon* term
of years, the full 'alue of his land- A'ari)e and in2usti)e are
al(ays short8si*hted, and they did not foresee ho( mu)h this
re*ulation must o&stru)t im+ro'ement, and there&y hurt in the
lon*8run the real interest of the landlord-
The farmers too, &esides +ayin* the rent, (ere an)iently, it
(as su++osed, &ound to +erform a *reat num&er of ser'i)es to the
landlord, (hi)h (ere seldom either s+e)ified in the lease, or
re*ulated &y any +re)ise rule, &ut &y the use and (ont of the
manor or &arony- These ser'i)es, therefore, &ein* almost entirely
ar&itrary, su&2e)ted the tenant to many 'e1ations- In S)otland
the a&olition of all ser'i)es not +re)isely sti+ulated in the
lease has in the )ourse of a fe( years 'ery mu)h altered for the
&etter the )ondition of the yeomanry of that )ountry-
The +u&li) ser'i)es to (hi)h the yeomanry (ere &ound (ere
not less ar&itrary than the +ri'ate ones- To ma0e and maintain
the hi*h roads, a ser'itude (hi)h still su&sists, I &elie'e,
e'ery(here, thou*h (ith different de*rees of o++ression in
different )ountries, (as not the only one- When the 0in*=s
troo+s, (hen his household or his offi)ers of any 0ind +assed
throu*h any +art of the )ountry, the yeomanry (ere &ound to
+ro'ide them (ith horses, )arria*es, and +ro'isions, at a +ri)e
re*ulated &y the +ur'eyor- 6reat .ritain is, I &elie'e, the only
monar)hy in $uro+e (here the o++ression of +ur'eyan)e has &een
entirely a&olished- It still su&sists in "ran)e and 6ermany-
The +u&li) ta1es to (hi)h they (ere su&2e)t (ere as
irre*ular and o++ressi'e as the ser'i)es- The an)ient lords,
thou*h e1tremely un(illin* to *rant themsel'es any +e)uniary aid
to their so'erei*n, easily allo(ed him to talla*e, as they )alled
it their tenants, and had not 0no(led*e enou*h to foresee ho(
mu)h this must in the end affe)t their o(n re'enue- The taille,
as it still su&sists in "ran)e, may ser'e as an e1am+le of those
an)ient talla*es- It is a ta1 u+on the su++osed +rofits of the
farmer, (hi)h they estimate &y the sto)0 that he has u+on the
farm- It is his interest, therefore, to a++ear to ha'e as little
as +ossi&le, and )onsequently to em+loy as little as +ossi&le in
its )ulti'ation, and none in its im+ro'ement- Should any sto)0
ha++en to a))umulate in the hands of a "ren)h farmer, the taille
is almost equal to a +rohi&ition of its e'er &ein* em+loyed u+on
the land- This ta1, &esides, is su++osed to dishonour (hoe'er is
su&2e)t to it, and to de*rade him &elo(, not only the ran0 of a
*entleman, &ut that of a &ur*her, and (hoe'er rents the lands of
another &e)omes su&2e)t to it- No *entleman, nor e'en any &ur*her
(ho has sto)0, (ill su&mit to this de*radation- This ta1,
therefore, not only hinders the sto)0 (hi)h a))umulates u+on the
land from &ein* em+loyed in its im+ro'ement, &ut dri'es a(ay an
other sto)0 from it- The an)ient tenths and fifteenths, so usual
in $n*land in former times, seem, so far as they affe)ted the
land, to ha'e &een ta1es of the same nature (ith the taille-
Under all these dis)oura*ements, little im+ro'ement )ould &e
e1+e)ted from the o))u+iers of land- That order of +eo+le, (ith
all the li&erty and se)urity (hi)h la( )an *i'e, must al(ays
im+ro'e under *reat disad'anta*es- The farmer, )om+ared (ith the
+ro+rietor, is as a mer)hant (ho trades (ith &orro(ed money
)om+ared (ith one (ho trades (ith his o(n- The sto)0 of &oth may
im+ro'e, &ut that of the one, (ith only equal *ood )ondu)t, must
al(ays im+ro'e more slo(ly than that of the other, on a))ount of
the lar*e share of the +rofits (hi)h is )onsumed &y the interest
of the loan- The lands )ulti'ated &y the farmer must, in the same
manner, (ith only equal *ood )ondu)t, &e im+ro'ed more slo(ly
than those )ulti'ated &y the +ro+rietor, on a))ount of the lar*e
share of the +rodu)e (hi)h is )onsumed in the rent, and (hi)h,
had the farmer &een +ro+rietor, he mi*ht ha'e em+loyed in the
further im+ro'ement of the land- The station of a farmer &esides
is, from the nature of thin*s, inferior to that of a +ro+rietor-
Throu*h the *reater +art of $uro+e the yeomanry are re*arded as
an inferior ran0 of +eo+le, e'en to the &etter sort of tradesmen
and me)hani)s, and in all +arts of $uro+e to the *reat mer)hants
and master manufa)turers- It )an seldom ha++en, therefore, that a
man of any )onsidera&le sto)0 should quit the su+erior in order
to +la)e himself in an inferior station- $'en in the +resent
state of $uro+e, therefore, little sto)0 is li0ely to *o from any
other +rofession to the im+ro'ement of land in the (ay of
farmin*- 4ore does +erha+s in 6reat .ritain than in any other
)ountry, thou*h e'en there the *reat sto)0s (hi)h are, in some
+la)es, em+loyed in farmin* ha'e *enerally &een a)quired &y
farmin*, the trade, +erha+s, in (hi)h of all others sto)0 is
)ommonly a)quired most slo(ly- After small +ro+rietors, ho(e'er,
ri)h and *reat farmers are, in e'ery )ountry, the +rin)i+al
im+ro'ers- There are more su)h +erha+s in $n*land than in any
other $uro+ean monar)hy- In the re+u&li)an *o'ernments of #olland
and of .erne in S(it;erland, the farmers are said to &e not
inferior to those of $n*land-
The an)ient +oli)y of $uro+e (as, o'er and a&o'e all this,
unfa'oura&le to the im+ro'ement and )ulti'ation of land, (hether
)arried on &y the +ro+rietor or &y the farmer/ first, &y the
*eneral +rohi&ition of the e1+ortation of )orn (ithout a s+e)ial
li)en)e, (hi)h seems to ha'e &een a 'ery uni'ersal re*ulation/
and se)ondly, &y the restraints (hi)h (ere laid u+on the inland
)ommer)e, not only of )orn, &ut of almost e'ery other +art of the
+rodu)e of the farm &y the a&surd la(s a*ainst en*rossers,
re*rators, and forestallers, and &y the +ri'ile*es of fairs and
mar0ets- It has already &een o&ser'ed in (hat manner the
+rohi&ition of the e1+ortation of )orn, to*ether (ith some
en)oura*ement *i'en to the im+ortation of forei*n )orn,
o&stru)ted the )ulti'ation of an)ient Italy, naturally the most
fertile )ountry in $uro+e, and at that time the seat of the
*reatest em+ire in the (orld- To (hat de*ree su)h restraints u+on
the inland )ommer)e of this )ommodity, 2oined to the *eneral
+rohi&ition of e1+ortation, must ha'e dis)oura*ed the )ulti'ation
of )ountries less fertile and less fa'oura&ly )ir)umstan)ed, it
is not +erha+s 'ery easy to ima*ine-
C#AT$R III
Of the Rise and ro*ress of Cities and To(ns after the "all of
the Roman $m+ire
T#$ inha&itants of )ities and to(ns (ere, after the fall of
the Roman em+ire, not more fa'oured than those of the )ountry-
They )onsisted, indeed, of a 'ery different order of +eo+le from
the first inha&itants of the an)ient re+u&li)s of 6ree)e and
Italy- These last (ere )om+osed )hiefly of the +ro+rietors of
lands, amon* (hom the +u&li) territory (as ori*inally di'ided,
and (ho found it )on'enient to &uild their houses in the
nei*h&ourhood of one another, and to surround them (ith a (all,
for the sa0e of )ommon defen)e- After the fall of the Roman
em+ire, on the )ontrary, the +ro+rietors of land seem *enerally
to ha'e li'ed in fortified )astles on their o(n estates, and in
the midst of their o(n tenants and de+endants- The to(ns (ere
)hiefly inha&ited &y tradesmen and me)hani)s, (ho seem in those
days to ha'e &een of ser'ile, or 'ery nearly of ser'ile
)ondition- The +ri'ile*es (hi)h (e find *ranted &y an)ient
)harters to the inha&itants of some of the +rin)i+al to(ns in
$uro+e suffi)iently sho( (hat they (ere &efore those *rants- The
+eo+le to (hom it is *ranted as a +ri'ile*e that they mi*ht *i'e
a(ay their o(n dau*hters in marria*e (ithout the )onsent of their
lord, that u+on their death their o(n )hildren, and not their
lord, should su))eed to their *oods, and that they mi*ht dis+ose
of their o(n effe)ts &y (ill, must, &efore those *rants, ha'e
&een either alto*ether or 'ery nearly in the same state of
'illana*e (ith the o))u+iers of land in the )ountry-
They seem, indeed, to ha'e &een a 'ery +oor, mean set of
+eo+le, (ho used to tra'el a&out (ith their *oods from +la)e to
+la)e, and from fair to fair, li0e the ha(0ers and +edlars of the
+resent times- In all the different )ountries of $uro+e then, in
the same manner as in se'eral of the Tartar *o'ernments of Asia
at +resent, ta1es used to &e le'ied u+on the +ersons and *oods of
tra'ellers (hen they +assed throu*h )ertain manors, (hen they
(ent o'er )ertain &rid*es, (hen they )arried a&out their *oods
from +la)e to +la)e in a fair, (hen they ere)ted in it a &ooth or
stall to sell them in- These different ta1es (ere 0no(n in
$n*land &y the names of +assa*e, +onta*e, lasta*e, and stalla*e-
Sometimes the 0in*, sometimes a *reat lord, (ho had, it seems,
u+on some o))asions, authority to do this, (ould *rant to
+arti)ular traders, to su)h +arti)ularly as li'ed in their o(n
demesnes, a *eneral e1em+tion from su)h ta1es- Su)h traders,
thou*h in other res+e)ts of ser'ile, or 'ery nearly of ser'ile
)ondition, (ere u+on this a))ount )alled free8traders- They in
return usually +aid to their +rote)tor a sort of annual +oll8ta1-
In those days +rote)tion (as seldom *ranted (ithout a 'alua&le
)onsideration, and this ta1 mi*ht, +erha+s, &e )onsidered as
)om+ensation for (hat their +atrons mi*ht lose &y their e1em+tion
from other ta1es- At first, &oth those +oll8ta1es and those
e1em+tions seem to ha'e &een alto*ether +ersonal, and to ha'e
affe)ted only +arti)ular indi'iduals durin* either their li'es or
the +leasure of their +rote)tors- In the 'ery im+erfe)t a))ounts
(hi)h ha'e &een +u&lished from Domesday .oo0 of se'eral of the
to(ns of $n*land, mention is frequently made sometimes of the ta1
(hi)h +arti)ular &ur*hers +aid, ea)h of them, either to the 0in*
or to some other *reat lord for this sort of +rote)tion/ and
sometimes of the *eneral amount only of all those ta1es-
.ut ho( ser'ile soe'er may ha'e &een ori*inally the
)ondition of the inha&itants of the to(ns, it a++ears e'idently
that they arri'ed at li&erty and inde+enden)y mu)h earlier than
the o))u+iers of land in the )ountry- That +art of the 0in*=s
re'enue (hi)h arose from su)h +oll8ta1es in any +arti)ular to(n
used )ommonly to &e let in farm durin* a term of years for a rent
)ertain, sometimes to the sheriff of the )ounty, and sometimes to
other +ersons- The &ur*hers themsel'es frequently *ot )redit
enou*h to &e admitted to farm the re'enues of this sort (hi)h
arose out of their o(n to(n, they &e)omin* 2ointly and se'erally
ans(era&le for the (hole rent- To let a farm in this manner (as
quite a*reea&le to the usual e)onomy of, I &elie'e, the
so'erei*ns of all the different )ountries of $uro+e, (ho used
frequently to let (hole manors to all the tenants of those
manors, they &e)omin* 2ointly and se'erally ans(era&le for the
(hole rent/ &ut in return &ein* allo(ed to )olle)t it in their
o(n (ay, and to +ay it into the 0in*=s e1)hequer &y the hands of
their o(n &ailiff, and &ein* thus alto*ether freed from the
insolen)e of the 0in*=s offi)ers8 a )ir)umstan)e in those days
re*arded as of the *reatest im+ortan)e-
At first the farm of the to(n (as +ro&a&ly let to the
&ur*hers, in the same manner as it had &een to other farmers, for
a term of years only- In +ro)ess of time, ho(e'er, it seems to
ha'e &e)ome the *eneral +ra)ti)e to *rant it to them in fee, that
is for e'er, reser'in* a rent )ertain ne'er after(ards to &e
au*mented- The +ayment ha'in* thus &e)ome +er+etual, the
e1em+tions, in return for (hi)h it (as made, naturally &e)ame
+er+etual too- Those e1em+tions, therefore, )eased to &e
+ersonal, and )ould not after(ards &e )onsidered as &elon*in* to
indi'iduals as indi'iduals, &ut as &ur*hers of a +arti)ular
&ur*h, (hi)h, u+on this a))ount, (as )alled a free &ur*h, for the
same reason that they had &een )alled free &ur*hers or free
traders-
Alon* (ith this *rant, the im+ortant +ri'ile*es a&o'e
mentioned, that they mi*ht *i'e a(ay their o(n dau*hters in
marria*e, that their )hildren should su))eed to them, and that
they mi*ht dis+ose of their o(n effe)ts &y (ill, (ere *enerally
&esto(ed u+on the &ur*hers of the to(n to (hom it (as *i'en-
Whether su)h +ri'ile*es had &efore &een usually *ranted alon*
(ith the freedom of trade to +arti)ular &ur*hers, as indi'iduals,
I 0no( not- I re)0on it not im+ro&a&le that they (ere, thou*h I
)annot +rodu)e any dire)t e'iden)e of it- .ut ho(e'er this may
ha'e &een, the +rin)i+al attri&utes of 'illana*e and sla'ery
&ein* thus ta0en a(ay from them, they no(, at least, &e)ame
really free in our +resent sense of the (ord "reedom-
Nor (as this all- They (ere *enerally at the same time
ere)ted into a )ommonalty or )or+oration, (ith the +ri'ile*e of
ha'in* ma*istrates and a to(n )oun)il of their o(n, of ma0in*
&ye8la(s for their o(n *o'ernment, of &uildin* (alls for their
o(n defen)e, and of redu)in* all their inha&itants under a sort
of military dis)i+line &y o&li*in* them to (at)h and (ard, that
is, as an)iently understood, to *uard and defend those (alls
a*ainst all atta)0s and sur+rises &y ni*ht as (ell as &y day- In
$n*land they (ere *enerally e1em+ted from suit to the hundred and
)ounty )ourts/ and all su)h +leas as should arise amon* them, the
+leas of the )ro(n e1)e+ted, (ere left to the de)ision of their
o(n ma*istrates- In other )ountries mu)h *reater and more
e1tensi'e 2urisdi)tions (ere frequently *ranted to them-
It mi*ht, +ro&a&ly, &e ne)essary to *rant to su)h to(ns as
(ere admitted to farm their o(n re'enues some sort of )om+ulsi'e
2urisdi)tion to o&li*e their o(n )iti;ens to ma0e +ayment- In
those disorderly times it mi*ht ha'e &een e1tremely in)on'enient
to ha'e left them to see0 this sort of 2usti)e from any other
tri&unal- .ut it must seem e1traordinary that the so'erei*ns of
all the different )ountries of $uro+e should ha'e e1)han*ed in
this manner for a rent )ertain, ne'er more to &e au*mented, that
&ran)h of the re'enue (hi)h (as, +erha+s, of all others the most
li0ely to &e im+ro'ed &y the natural )ourse of thin*s, (ithout
either e1+ense or attention of their o(n3 and that they should,
&esides, ha'e in this manner 'oluntarily ere)ted a sort of
inde+endent re+u&li)s in the heart of their o(n dominions-
In order to understand this, it must &e remem&ered that in
those days the so'erei*n of +erha+s no )ountry in $uro+e (as a&le
to +rote)t, throu*h the (hole e1tent of his dominions, the (ea0er
+art of his su&2e)ts from the o++ression of the *reat lords-
Those (hom the la( )ould not +rote)t, and (ho (ere not stron*
enou*h to defend themsel'es, (ere o&li*ed either to ha'e re)ourse
to the +rote)tion of some *reat lord, and in order to o&tain it
to &e)ome either his sla'es or 'assals/ or to enter into a lea*ue
of mutual defen)e for the )ommon +rote)tion of one another- The
inha&itants of )ities and &ur*hs, )onsidered as sin*le
indi'iduals, had no +o(er to defend themsel'es/ &ut &y enterin*
into a lea*ue of mutual defen)e (ith their nei*h&ours, they (ere
)a+a&le of ma0in* no )ontem+ti&le resistan)e- The lords des+ised
the &ur*hers, (hom they )onsidered not only as of a different
order, &ut as a +ar)el of eman)i+ated sla'es, almost of a
different s+e)ies from themsel'es- The (ealth of the &ur*hers
ne'er failed to +ro'o0e their en'y and indi*nation, and they
+lundered them u+on e'ery o))asion (ithout mer)y or remorse- The
&ur*hers naturally hated and feared the lords- The 0in* hated and
feared them too/ &ut thou*h +erha+s he mi*ht des+ise, he had no
reason either to hate or fear the &ur*hers- 4utual interest,
therefore, dis+osed them to su++ort the 0in*, and the 0in* to
su++ort them a*ainst the lords- They (ere the enemies of his
enemies, and it (as his interest to render them as se)ure and
inde+endent of those enemies as he )ould- .y *rantin* them
ma*istrates of their o(n, the +ri'ile*e of ma0in* &ye8la(s for
their o(n *o'ernment, that of &uildin* (alls for their o(n
defen)e, and that of redu)in* all their inha&itants under a sort
of military dis)i+line, he *a'e them all the means of se)urity
and inde+enden)y of the &arons (hi)h it (as in his +o(er to
&esto(- Without the esta&lishment of some re*ular *o'ernment of
this 0ind, (ithout some authority to )om+el their inha&itants to
a)t a))ordin* to some )ertain +lan or system, no 'oluntary lea*ue
of mutual defen)e )ould either ha'e afforded them any +ermanent
se)urity, or ha'e ena&led them to *i'e the 0in* any )onsidera&le
su++ort- .y *rantin* them the farm of their to(n in fee, he too0
a(ay from those (hom he (ished to ha'e for his friends, and, if
one may say so, for his allies, all *round of 2ealousy and
sus+i)ion that he (as e'er after(ards to o++ress them, either &y
raisin* the farm rent of their to(n or &y *rantin* it to some
other farmer-
The +rin)es (ho li'ed u+on the (orst terms (ith their &arons
seem a))ordin*ly to ha'e &een the most li&eral in *rants of this
0ind to their &ur*hs- %in* Aohn of $n*land, for e1am+le, a++ears
to ha'e &een a most munifi)ent &enefa)tor to his to(ns- hili+
the "irst of "ran)e lost all authority o'er his &arons- To(ards
the end of his rei*n, his son !e(is, 0no(n after(ards &y the name
of !e(is the "at, )onsulted, a))ordin* to "ather Daniel, (ith the
&isho+s of the royal demesnes )on)ernin* the most +ro+er means of
restrainin* the 'iolen)e of the *reat lords- Their ad'i)e
)onsisted of t(o different +ro+osals- One (as to ere)t a ne(
order of 2urisdi)tion, &y esta&lishin* ma*istrates and a to(n
)oun)il in e'ery )onsidera&le to(n of his demesnes- The other (as
to form a ne( militia, &y ma0in* the inha&itants of those to(ns,
under the )ommand of their o(n ma*istrates, mar)h out u+on +ro+er
o))asions to the assistan)e of the 0in*- It is from this +eriod,
a))ordin* to the "ren)h antiquarians, that (e are to date the
institution of the ma*istrates and )oun)ils of )ities in "ran)e-
It (as durin* the un+ros+erous rei*ns of the +rin)es of the house
of Sua&ia that the *reater +art of the free to(ns of 6ermany
re)ei'ed the first *rants of their +ri'ile*es, and that the
famous #anseati) lea*ue first &e)ame formida&le-
The militia of the )ities seems, in those times, not to ha'e
&een inferior to that of the )ountry, and as they )ould &e more
readily assem&led u+on any sudden o))asion, they frequently had
the ad'anta*e in their dis+utes (ith the nei*h&ourin* lords- In
)ountries, su)h as Italy and S(it;erland, in (hi)h, on a))ount
either of their distan)e from the +rin)i+al seat of *o'ernment,
of the natural stren*th of the )ountry itself, or of some other
reason, the so'erei*n )ame to lose the (hole of his authority,
the )ities *enerally &e)ame inde+endent re+u&li)s, and )onquered
all the no&ility in their nei*h&ourhood, o&li*in* them to +ull
do(n their )astles in the )ountry and to li'e, li0e other
+ea)ea&le inha&itants, in the )ity- This is the short history of
the re+u&li) of .erne as (ell as of se'eral other )ities in
S(it;erland- If you e1)e+t 5eni)e, for of that )ity the history
is some(hat different, it is the history of all the )onsidera&le
Italian re+u&li)s, of (hi)h so *reat a num&er arose and +erished
&et(een the end of the t(elfth and the &e*innin* of the si1teenth
)entury-
In )ountries su)h as "ran)e or $n*land, (here the authority
of the so'erei*n, thou*h frequently 'ery lo(, ne'er (as destroyed
alto*ether, the )ities had no o++ortunity of &e)omin* entirely
inde+endent- They &e)ame, ho(e'er, so )onsidera&le that the
so'erei*n )ould im+ose no ta1 u+on them, &esides the stated
farm8rent of the to(n, (ithout their o(n )onsent- They (ere,
therefore, )alled u+on to send de+uties to the *eneral assem&ly
of the states of the 0in*dom, (here they mi*ht 2oin (ith the
)ler*y and the &arons in *rantin*, u+on ur*ent o))asions, some
e1traordinary aid to the 0in*- .ein* *enerally, too, more
fa'oura&le to his +o(er, their de+uties seem, sometimes, to ha'e
&een em+loyed &y him as a )ounter&alan)e in those assem&lies to
the authority of the *reat lords- #en)e the ori*in of the
re+resentation of &ur*hs in the states8*eneral of all the *reat
monar)hies in $uro+e-
Order and *ood *o'ernment, and alon* (ith them the li&erty
and se)urity of indi'iduals, (ere, in this manner, esta&lished in
)ities at a time (hen the o))u+iers of land in the )ountry (ere
e1+osed to e'ery sort of 'iolen)e- .ut men in this defen)eless
state naturally )ontent themsel'es (ith their ne)essary
su&sisten)e, &e)ause to a)quire more mi*ht only tem+t the
in2usti)e of their o++ressors- On the )ontrary, (hen they are
se)ure of en2oyin* the fruits of their industry, they naturally
e1ert it to &etter their )ondition, and to a)quire not only the
ne)essaries, &ut the )on'enien)es and ele*an)ies of life- That
industry, therefore, (hi)h aims at somethin* more than ne)essary
su&sisten)e, (as esta&lished in )ities lon* &efore it (as
)ommonly +ra)tised &y the o))u+iers of land in the )ountry- If in
the hands of a +oor )ulti'ator, o++ressed (ith the ser'itude of
'illana*e, some little sto)0 should a))umulate, he (ould
naturally )on)eal it (ith *reat )are from his master, to (hom it
(ould other(ise ha'e &elon*ed, and ta0e the first o++ortunity of
runnin* a(ay to a to(n- The la( (as at that time so indul*ent to
the inha&itants of to(ns, and so desirous of diminishin* the
authority of the lords o'er those of the )ountry, that if he
)ould )on)eal himself there from the +ursuit of his lord for a
year, he (as free for e'er- Whate'er sto)0, therefore,
a))umulated in the hands of the industrious +art of the
inha&itants of the )ountry naturally too0 refu*e in )ities as the
only san)tuaries in (hi)h it )ould &e se)ure to the +erson that
a)quired it-
The inha&itants of a )ity, it is true, must al(ays
ultimately deri'e their su&sisten)e, and the (hole materials and
means of their industry, from the )ountry- .ut those of a )ity,
situated near either the sea )oast or the &an0s of a na'i*a&le
ri'er, are not ne)essarily )onfined to deri'e them from the
)ountry in their nei*h&ourhood- They ha'e a mu)h (ider ran*e, and
may dra( them from the most remote )orners of the (orld, either
in e1)han*e for the manufa)tured +rodu)e of their o(n industry,
or &y +erformin* the offi)e of )arriers &et(een distant )ountries
and e1)han*in* the +rodu)e of one for that of another- A )ity
mi*ht in this manner *ro( u+ to *reat (ealth and s+lendour, (hile
not only the )ountry in its nei*h&ourhood, &ut all those to (hi)h
it traded, (ere in +o'erty and (ret)hedness- $a)h of those
)ountries, +erha+s, ta0en sin*ly, )ould afford it &ut a small
+art either of its su&sisten)e or of its em+loyment, &ut all of
them ta0en to*ether )ould afford it &oth a *reat su&sisten)e and
a *reat em+loyment- There (ere, ho(e'er, (ithin the narro( )ir)le
of the )ommer)e of those times, some )ountries that (ere o+ulent
and industrious- Su)h (as the 6ree0 em+ire as lon* as it
su&sisted, and that of the Sara)ens durin* the rei*ns of the
A&assides- Su)h too (as $*y+t till it (as )onquered &y the Tur0s,
some +art of the )oast of .ar&ary, and all those +ro'in)es of
S+ain (hi)h (ere under the *o'ernment of the 4oors-
The )ities of Italy seem to ha'e &een the first in $uro+e
(hi)h (ere raised &y )ommer)e to any )onsidera&le de*ree of
o+ulen)e- Italy lay in the )entre of (hat (as at that time the
im+ro'ed and )i'ilised +art of the (orld- The Crusades too,
thou*h &y the *reat (aste of sto)0 and destru)tion of inha&itants
(hi)h they o))asioned they must ne)essarily ha'e retarded the
+ro*ress of the *reater +art of $uro+e, (ere e1tremely fa'oura&le
to that of some Italian )ities- The *reat armies (hi)h mar)hed
from all +arts to the )onquest of the #oly !and *a'e
e1traordinary en)oura*ement to the shi++in* of 5eni)e, 6enoa, and
isa, sometimes in trans+ortin* them thither, and al(ays in
su++lyin* them (ith +ro'isions- They (ere the )ommissaries, if
one may say so, of those armies/ and the most destru)ti'e fren;y
that e'er &efell the $uro+ean nations (as a sour)e of o+ulen)e to
those re+u&li)s-
The inha&itants of tradin* )ities, &y im+ortin* the im+ro'ed
manufa)tures and e1+ensi'e lu1uries of ri)her )ountries, afforded
some food to the 'anity of the *reat +ro+rietors, (ho ea*erly
+ur)hased them (ith *reat quantities of the rude +rodu)e of their
o(n lands- The )ommer)e of a *reat +art of $uro+e in those times,
a))ordin*ly, )onsisted )hiefly in the e1)han*e of their o(n rude
for the, manufa)tured +rodu)e of more )i'ilised nations- Thus the
(ool of $n*land used to &e e1)han*ed for the (ines of "ran)e and
the fine )loths of "landers, in the same manner as the )orn in
oland is at this day e1)han*ed for the (ines and &randies of
"ran)e and for the sil0s and 'el'ets of "ran)e and Italy-
A taste for the finer and more im+ro'ed manufa)tures (as in
this manner introdu)ed &y forei*n )ommer)e into )ountries (here
no su)h (or0s (ere )arried on- .ut (hen this taste &e)ame so
*eneral as to o))asion a )onsidera&le demand, the mer)hants, in
order to sa'e the e1+ense of )arria*e, naturally endea'oured to
esta&lish some manufa)tures of the same 0ind in their o(n
)ountry- #en)e the ori*in of the first manufa)tures for distant
sale that seem to ha'e &een esta&lished in the (estern +ro'in)es
of $uro+e after the fall of the Roman em+ire- No lar*e )ountry,
it must &e o&ser'ed, e'er did or )ould su&sist (ithout some sort
of manufa)tures &ein* )arried on in it/ and (hen it is said of
any su)h )ountry that it has no manufa)tures, it must al(ays &e
understood of the finer and more im+ro'ed or of su)h as are fit
for distant sale- In e'ery lar*e )ountry &oth the )lothin* and
household furniture of the far *reater +art of the +eo+le are the
+rodu)e of their o(n industry- This is e'en more uni'ersally the
)ase in those +oor )ountries (hi)h are )ommonly said to ha'e no
manufa)tures than in those ri)h ones that are said to a&ound in
them- In the latter, you (ill *enerally find, &oth in the )lothes
and household furniture of the lo(est ran0 of +eo+le, a mu)h
*reater +ro+ortion of forei*n +rodu)tions than in the former-
Those manufa)tures (hi)h are fit for distant sale seem to
ha'e &een introdu)ed into different )ountries in t(o different
(ays-
Sometimes they ha'e &een introdu)ed, in the manner a&o'e
mentioned, &y the 'iolent o+eration, if one may say so, of the
sto)0s of +arti)ular mer)hants and underta0ers, (ho esta&lished
them in imitation of some forei*n manufa)tures of the same 0ind-
Su)h manufa)tures, therefore, are the offs+rin* of forei*n
)ommer)e, and su)h seem to ha'e &een the an)ient manufa)tures of
sil0s, 'el'ets, and &ro)ades, (hi)h flourished in !u))a durin*
the thirteenth )entury- They (ere &anished from then)e &y the
tyranny of one of 4a)hia'el=s heroes, Castru))io Castra)ani- In
1B1C, nine hundred families (ere dri'en out of !u))a, of (hom
thirty8one retired to 5eni)e and offered to introdu)e there the
sil0 manufa)ture- Their offer (as a))e+ted/ many +ri'ile*es (ere
)onferred u+on them, and they &e*an the manufa)ture (ith three
hundred (or0men- Su)h, too, seem to ha'e &een the manufa)tures of
fine )loths that an)iently flourished in "landers, and (hi)h (ere
introdu)ed into $n*land in the &e*innin* of the rei*n of
$li;a&eth/ and su)h are the +resent sil0 manufa)tures of !yons
and S+italfields- 4anufa)tures introdu)ed in this manner are
*enerally em+loyed u+on forei*n materials, &ein* imitations of
forei*n manufa)tures- When the 5enetian manufa)ture (as first
esta&lished, the materials (ere all &rou*ht from Si)ily and the
!e'ant- The more an)ient manufa)ture of !u))a (as li0e(ise
)arried on (ith forei*n materials- The )ulti'ation of mul&erry
trees and the &reedin* of sil08(orms seem not to ha'e &een )ommon
in the northern +arts of Italy &efore the si1teenth )entury-
Those arts (ere not introdu)ed into "ran)e till the rei*n of
Charles II- The manufa)tures of "landers (ere )arried on )hiefly
(ith S+anish and $n*lish (ool- S+anish (ool (as the material, not
of the first (oollen manufa)ture of $n*land, &ut of the first
that (as fit for distant sale- 4ore than one half the materials
of the !yons manufa)ture is at this day, forei*n sil0/ (hen it
(as first esta&lished, the (hole or 'ery nearly the (hole (as so-
No +art of the materials of the S+italfields manufa)ture is e'er
li0ely &e the +rodu)e of $n*land- The seat of su)h manufa)tures,
as they are *enerally introdu)ed &y the s)heme and +ro2e)t of a
fe( indi'iduals, is sometimes esta&lished in a maritime )ity, and
sometimes in an inland to(n, a))ordin* as their interest,
2ud*ment, or )a+ri)e ha++en to determine-
At other times, manufa)tures for distant sale *rou+ u+
naturally, and as it (ere of their o(n a))ord, &y the *radual
refinement of those household and )oarser manufa)tures (hi)h must
at all times &e )arried on e'en in the +oorest and rudest
)ountries- Su)h manufa)tures are *enerally em+loyed u+on the
materials (hi)h the )ountry +rodu)es, and they seem frequently to
ha'e &een first refined and im+ro'ed in su)h inland )ountries as
(ere, not indeed at a 'ery *reat, &ut at a )onsidera&le distan)e
from the sea )oast, and sometimes e'en from all (ater )arria*e-
An inland )ountry, naturally fertile and easily )ulti'ated,
+rodu)es a *reat sur+lus of +ro'isions &eyond (hat is ne)essary
for maintainin* the )ulti'ators, and on a))ount of the e1+ense of
land )arria*e, and in)on'enien)y of ri'er na'i*ation, it may
frequently &e diffi)ult to send this sur+lus a&road- A&undan)e,
therefore, renders +ro'isions )hea+, and en)oura*es a *reat
num&er of (or0men to settle in the nei*h&ourhood, (ho find that
their industry )an there +ro)ure them more of the ne)essaries and
)on'enien)ies of life than in other +la)es- They (or0 u+ the
materials of manufa)ture (hi)h the land +rodu)es, and e1)han*e
their finished (or0, or (hat is the same thin* the +ri)e of it,
for more materials and +ro'isions- They *i'e a ne( 'alue to the
sur+lus +art of the rude +rodu)e &y sa'in* the e1+ense of
)arryin* it to the (ater side or to some distant mar0et/ and they
furnish the )ulti'ators (ith somethin* in e1)han*e for it that is
either useful or a*reea&le to them u+on easier terms than they
)ould ha'e o&tained it &efore- The )ulti'ators *et a &etter +ri)e
for their sur+lus +rodu)e, and )an +ur)hase )hea+er other
)on'enien)es (hi)h they ha'e o))asion for- They are thus &oth
en)oura*ed and ena&led to in)rease this sur+lus +rodu)e &y a
further im+ro'ement and &etter )ulti'ation of the land/ and as
the fertility of the land had *i'en &irth to the manufa)ture, so
the +ro*ress of the manufa)ture rea)ts u+on the land and
in)reases still further its fertility- The manufa)turers first
su++ly the nei*h&ourhood, and after(ards, as their (or0 im+ro'es
and refines, more distant mar0ets- "or thou*h neither the rude
+rodu)e nor e'en the )oarse manufa)ture )ould, (ithout the
*reatest diffi)ulty, su++ort the e1+ense of a )onsidera&le land
)arria*e, the refined and im+ro'ed manufa)ture easily may- In a
small &ul0 it frequently )ontains the +ri)e of a *reat quantity
of rude +rodu)e- A +ie)e of fine )loth, for e1am+le, (hi)h (ei*hs
only ei*hty +ounds, )ontains in it, the +ri)e, not only of ei*hty
+ounds= (ei*ht of (ool, &ut sometimes of se'eral thousand (ei*ht
of )orn, the maintenan)e of the different (or0in* +eo+le and of
their immediate em+loyers- The )orn, (hi)h )ould (ith diffi)ulty
ha'e &een )arried a&road in its o(n sha+e, is in this manner
'irtually e1+orted in that of the )om+lete manufa)ture, and may
easily &e sent to the remotest )orners of the (orld- In this
manner ha'e *ro(n u+ naturally, and as it (ere of their o(n
a))ord, the manufa)tures of !eeds, #alifa1, Sheffield,
.irmin*ham, and Wol'erham+ton- Su)h manufa)tures are the
offs+rin* of a*ri)ulture- In the modern history of $uro+e, their
e1tension and im+ro'ement ha'e *enerally &een +osterior to those
(hi)h (ere the offs+rin* of forei*n )ommer)e- $n*land (as noted
for the manufa)ture of fine )loths made of S+anish (ool more than
a )entury &efore any of those (hi)h no( flourish in the +la)es
a&o'e mentioned (ere fit for forei*n sale- The e1tension and
im+ro'ement of these last )ould not ta0e +la)e &ut in )onsequen)e
of the e1tension and im+ro'ement of a*ri)ulture the last and
*reatest effe)t of forei*n )ommer)e, and of the manufa)tures
immediately introdu)ed &y it, and (hi)h I shall no( +ro)eed to
e1+lain-
C#AT$R I5
#o( the Commer)e of the To(ns Contri&uted to the Im+ro'ement of
the Country
T#$ in)rease and ri)hes of )ommer)ial and manufa)turin*
to(ns )ontri&uted to the im+ro'ement and )ulti'ation of the
)ountries to (hi)h they &elon*ed in three different (ays-
"irst, &y affordin* a *reat and ready mar0et for the rude
+rodu)e of the )ountry, they *a'e en)oura*ement to its
)ulti'ation and further im+ro'ement- This &enefit (as not e'en
)onfined to the )ountries in (hi)h they (ere situated, &ut
e1tended more or less to all those (ith (hi)h they had any
dealin*s- To all of them they afforded a mar0et for some +art
either of their rude or manufa)tured +rodu)e, and )onsequently
*a'e some en)oura*ement to the industry and im+ro'ement of all-
Their o(n )ountry, ho(e'er, on a))ount of its nei*h&ourhood,
ne)essarily deri'ed the *reatest &enefit from this mar0et- Its
rude +rodu)e &ein* )har*ed (ith less )arria*e, the traders )ould
+ay the *ro(ers a &etter +ri)e for it, and yet afford it as )hea+
to the )onsumers as that of more distant )ountries-
Se)ondly, the (ealth a)quired &y the inha&itants of )ities
(as frequently em+loyed in +ur)hasin* su)h lands as (ere to &e
sold, of (hi)h a *reat +art (ould frequently &e un)ulti'ated-
4er)hants are )ommonly am&itious of &e)omin* )ountry *entlemen,
and (hen they do, they are *enerally the &est of all im+ro'ers- A
mer)hant is a))ustomed to em+loy his money )hiefly in +rofita&le
+ro2e)ts, (hereas a mere )ountry *entleman is a))ustomed to
em+loy it )hiefly in e1+ense- The one often sees his money *o
from him and return to him a*ain (ith a +rofit/ the other, (hen
on)e he +arts (ith it, 'ery seldom e1+e)ts to see any more of it-
Those different ha&its naturally affe)t their tem+er and
dis+osition in e'ery sort of &usiness- A mer)hant is )ommonly a
&old, a )ountry *entleman a timid underta0er- The one is not
afraid to lay out at on)e a lar*e )a+ital u+on the im+ro'ement of
his land (hen he has a +ro&a&le +ros+e)t of raisin* the 'alue of
it in +ro+ortion to the e1+ense- The other, if he has any
)a+ital, (hi)h is not al(ays the )ase, seldom 'entures to em+loy
it in this manner- If he im+ro'es at all, it is )ommonly not (ith
a )a+ital, &ut (ith (hat he )an sa'e out of his annual re'enue-
Whoe'er has had the fortune to li'e in a mer)antile to(n situated
in an unim+ro'ed )ountry must ha'e frequently o&ser'ed ho( mu)h
more s+irited the o+erations of mer)hants (ere in this (ay than
those of mere )ountry *entlemen- The ha&its, &esides, of order,
e)onomy, and attention, to (hi)h mer)antile &usiness naturally
forms a mer)hant, render him mu)h fitter to e1e)ute, (ith +rofit
and su))ess, any +ro2e)t of im+ro'ement-
Thirdly, and lastly, )ommer)e and manufa)tures *radually
introdu)ed order and *ood *o'ernment, and (ith them, the li&erty
and se)urity of indi'iduals, amon* the inha&itants of the
)ountry, (ho had &efore li'ed almost in a )ontinual state of (ar
(ith their nei*h&ours and of ser'ile de+enden)y u+on their
su+eriors- This, thou*h it has &een the least o&ser'ed, is &y far
the most im+ortant of all their effe)ts- 4r- #ume is the only
(riter (ho, so far as I 0no(, has hitherto ta0en noti)e of it-
In a )ountry (hi)h has neither forei*n )ommer)e, nor any of
the finer manufa)tures, a *reat +ro+rietor, ha'in* nothin* for
(hi)h he )an e1)han*e the *reater +art of the +rodu)e of his
lands (hi)h is o'er and a&o'e the maintenan)e of the )ulti'ators,
)onsumes the (hole in rusti) hos+itality at home- If this sur+lus
+rodu)e is suffi)ient to maintain a hundred or a thousand men, he
)an ma0e use of it in no other (ay than &y maintainin* a hundred
or a thousand men- #e is at all times, therefore, surrounded (ith
a multitude of retainers and de+endants, (ho, ha'in* no
equi'alent to *i'e in return for their maintenan)e, &ut &ein* fed
entirely &y his &ounty, must o&ey him, for the same reason that
soldiers must o&ey the +rin)e (ho +ays them- .efore the e1tension
of )ommer)e and manufa)ture in $uro+e, the hos+itality of the
ri)h, and the *reat, from the so'erei*n do(n to the smallest
&aron, e1)eeded e'erythin* (hi)h in the +resent times (e )an
easily form a notion of- Westminster #all (as the dinin*8room of
William Rufus, and mi*ht frequently, +erha+s, not &e too lar*e
for his )om+any- It (as re)0oned a +ie)e of ma*nifi)en)e in
Thomas .e)0et that he stre(ed the floor of his hall (ith )lean
hay or rushes in the season, in order that the 0ni*hts and
squires (ho )ould not *et seats mi*ht not s+oil their fine
)lothes (hen they sat do(n on the floor to eat their dinner- The
*reat $arl of War(i)0 is said to ha'e entertained e'ery day at
his different manors thirty thousand +eo+le, and thou*h the
num&er here may ha'e &een e1a**erated, it must, ho(e'er, ha'e
&een 'ery *reat to admit of su)h e1a**eration- A hos+itality
nearly of the same 0ind (as e1er)ised not many years a*o in many
different +arts of the hi*hlands of S)otland- It seems to &e
)ommon in all nations to (hom )ommer)e and manufa)tures are
little 0no(n- @I ha'e seen,@ says Do)tor o)o)0, @an Ara&ian
)hief dine in the streets of a to(n (here he had )ome to sell his
)attle, and in'ite all +assen*ers, e'en )ommon &e**ars, to sit
do(n (ith him and +arta0e of his &anquet-@
The o))u+iers of land (ere in e'ery res+e)t as de+endent
u+on the *reat +ro+rietor as his retainers- $'en su)h of them as
(ere not in a state of 'illana*e (ere tenants at (ill, (ho +aid a
rent in no res+e)t equi'alent to the su&sisten)e (hi)h the land
afforded them- A )ro(n, half a )ro(n, a shee+, a lam&, (as some
years a*o in the hi*hlands of S)otland a )ommon rent for lands
(hi)h maintained a family- In some +la)es it is so at this day/
nor (ill money at +resent +ur)hase a *reater quantity of
)ommodities there than in other +la)es- In a )ountry (here the
sur+lus +rodu)e of a lar*e estate must &e )onsumed u+on the
estate itself, it (ill frequently &e more )on'enient for the
+ro+rietor that +art of it &e )onsumed at a distan)e from his o(n
house +ro'ided they (ho )onsume it are as de+endent u+on him as
either his retainers or his menial ser'ants- #e is there&y sa'ed
from the em&arrassment of either too lar*e a )om+any or too lar*e
a family- A tenant at (ill, (ho +ossesses land suffi)ient to
maintain his family for little more than a quit8rent, is as
de+endent u+on the +ro+rietor as any ser'ant or retainer (hate'er
and must o&ey him (ith as little reser'e- Su)h a +ro+rietor, as
he feeds his ser'ants and retainers at his o(n house, so he feeds
his tenants at their houses- The su&sisten)e of &oth is deri'ed
from his &ounty, and its )ontinuan)e de+ends u+on his *ood
+leasure-
U+on the authority (hi)h the *reat +ro+rietor ne)essarily
had in su)h a state of thin*s o'er their tenants and retainers
(as founded the +o(er of the an)ient &arons- They ne)essarily
&e)ame the 2ud*es in +ea)e, and the leaders in (ar, of all (ho
d(elt u+on their estates- They )ould maintain order and e1e)ute
the la( (ithin their res+e)ti'e demesnes, &e)ause ea)h of them
)ould there turn the (hole for)e of all the inha&itants a*ainst
the in2usti)e of any one- No other +ersons had suffi)ient
authority to do this- The 0in* in +arti)ular had not- In those
an)ient times he (as little more than the *reatest +ro+rietor in
his dominions, to (hom, for the sa0e of )ommon defen)e a*ainst
their )ommon enemies, the other *reat +ro+rietors +aid )ertain
res+e)ts- To ha'e enfor)ed +ayment of a small de&t (ithin the
lands of a *reat +ro+rietor, (here all the inha&itants (ere armed
and a))ustomed to stand &y one another, (ould ha'e )ost the 0in*,
had he attem+ted it &y his o(n authority, almost the same effort
as to e1tin*uish a )i'il (ar- #e (as, therefore, o&li*ed to
a&andon the administration of 2usti)e throu*h the *reater +art of
the )ountry to those (ho (ere )a+a&le of administerin* it/ and
for the same reason to lea'e the )ommand of the )ountry militia
to those (hom that militia (ould o&ey-
It is a mista0e to ima*ine that those territorial
2urisdi)tions too0 their ori*in from the feudal la(- Not only the
hi*hest 2urisdi)tions &oth )i'il and )riminal, &ut the +o(er of
le'yin* troo+s, of )oinin* money, and e'en that of ma0in*
&ye8la(s for the *o'ernment of their o(n +eo+le, (ere all ri*hts
+ossessed allodially &y the *reat +ro+rietors of land se'eral
)enturies &efore e'en the name of the feudal la( (as 0no(n in
$uro+e- The authority and 2urisdi)tion of the Sa1on lords in
$n*land a++ear to ha'e &een as *reat &efore the Conquest as that
of any of the Norman lords after it- .ut the feudal la( is not
su++osed to ha'e &e)ome the )ommon la( of $n*land till after the
Conquest- That the most e1tensi'e authority and 2urisdi)tions
(ere +ossessed &y the *reat lords in "ran)e allodially lon*
&efore the feudal la( (as introdu)ed into that )ountry is a
matter of fa)t that admits of no dou&t- That authority and those
2urisdi)tions all ne)essarily flo(ed from the state of +ro+erty
and manners 2ust no( des)ri&ed- Without remountin* to the remote
antiquities of either the "ren)h or $n*lish monar)hies, (e may
find in mu)h later times many +roofs that su)h effe)ts must
al(ays flo( from su)h )auses- It is not thirty years a*o sin)e
4r- Cameron of !o)hiel, a *entleman of !o)ha&ar in S)otland,
(ithout any le*al (arrant (hate'er, not &ein* (hat (as then
)alled a lord of re*ality, nor e'en a tenant in )hief, &ut a
'assal of the Du0e of Ar*yle, and (ithout &ein* so mu)h as a
2usti)e of +ea)e, used, not(ithstandin*, to e1er)ise the hi*hest
)riminal 2urisdi)tion o'er his o(n +eo+le- #e is said to ha'e
done so (ith *reat equity, thou*h (ithout any of the formalities
of 2usti)e/ and it is not im+ro&a&le that the state of that +art
of the )ountry at that time made it ne)essary for him to assume
this authority in order to maintain the +u&li) +ea)e- That
*entleman, (hose rent ne'er e1)eeded fi'e hundred +ounds a year,
)arried, in 17GH, ei*ht hundred of his o(n +eo+le into the
re&ellion (ith him-
The introdu)tion of the feudal la(, so far from e1tendin*,
may &e re*arded as an attem+t to moderate the authority of the
*reat allodial lords- It esta&lished a re*ular su&ordination,
a))om+anied (ith a lon* train of ser'i)es and duties, from the
0in* do(n to the smallest +ro+rietor- Durin* the minority of the
+ro+rietor, the rent, to*ether (ith the mana*ement of his lands,
fell into the hands of his immediate su+erior, and, )onsequently,
those of all *reat +ro+rietors into the hands of the 0in*, (ho
(as )har*ed (ith the maintenan)e and edu)ation of the +u+il, and
(ho, from his authority as *uardian, (as su++osed to ha'e a ri*ht
of dis+osin* of him in marria*e, +ro'ided it (as in a manner not
unsuita&le to his ran0- .ut thou*h this institution ne)essarily
tended to stren*then the authority of the 0in*, and to (ea0en
that of the *reat +ro+rietors, it )ould not do either
suffi)iently for esta&lishin* order and *ood *o'ernment amon* the
inha&itants of the )ountry, &e)ause it )ould not alter
suffi)iently that state of +ro+erty and manners from (hi)h the
disorders arose- The authority of *o'ernment still )ontinued to
&e, as &efore, too (ea0 in the head and too stron* in the
inferior mem&ers, and the e1)essi'e stren*th of the inferior
mem&ers (as the )ause of the (ea0ness of the head- After the
institution of feudal su&ordination, the 0in* (as as in)a+a&le of
restrainin* the 'iolen)e of the *reat lords as &efore- They still
)ontinued to ma0e (ar a))ordin* to their o(n dis)retion, almost
)ontinually u+on one another, and 'ery frequently u+on the 0in*/
and the o+en )ountry still )ontinued to &e a s)ene of 'iolen)e,
ra+ine, and disorder-
.ut (hat all the 'iolen)e of the feudal institutions )ould
ne'er ha'e effe)ted, the silent and insensi&le o+eration of
forei*n )ommer)e and manufa)tures *radually &rou*ht a&out- These
*radually furnished the *reat +ro+rietors (ith somethin* for
(hi)h they )ould e1)han*e the (hole sur+lus +rodu)e of their
lands, and (hi)h they )ould )onsume themsel'es (ithout sharin* it
either (ith tenants or retainers- All for oursel'es and nothin*
for other +eo+le, seems, in e'ery a*e of the (orld, to ha'e &een
the 'ile ma1im of the masters of man0ind- As soon, therefore, as
they )ould find a method of )onsumin* the (hole 'alue of their
rents themsel'es, they had no dis+osition to share them (ith any
other +ersons- "or a +air of diamond &u)0les, +erha+s, or for
somethin* as fri'olous and useless, they e1)han*ed the
maintenan)e, or (hat is the same thin*, the +ri)e of the
maintenan)e of a thousand men for a year, and (ith it the (hole
(ei*ht and authority (hi)h it )ould *i'e them- The &u)0les,
ho(e'er, (ere to &e all their o(n, and no other human )reature
(as to ha'e any share of them/ (hereas in the more an)ient method
of e1+ense they must ha'e shared (ith at least a thousand +eo+le-
With the 2ud*es that (ere to determine the +referen)e this
differen)e (as +erfe)tly de)isi'e/ and thus, for the
*ratifi)ation of the most )hildish, the meanest, and the most
sordid of all 'anities, they *radually &artered their (hole +o(er
and authority-
In a )ountry (here there is no forei*n )ommer)e, nor any of
the finer manufa)tures, a man of ten thousand a year )annot (ell
em+loy his re'enue in any other (ay than in maintainin*, +erha+s,
a thousand families, (ho are all of them ne)essarily at his
)ommand- In the +resent state of $uro+e, a man of ten thousand a
year )an s+end his (hole re'enue, and he *enerally does so,
(ithout dire)tly maintainin* t(enty +eo+le, or &ein* a&le to
)ommand more than ten footmen not (orth the )ommandin*-
Indire)tly, +erha+s, he maintains as *reat or e'en a *reater
num&er of +eo+le than he )ould ha'e done &y the an)ient method of
e1+ense- "or thou*h the quantity of +re)ious +rodu)tions for
(hi)h he e1)han*es his (hole re'enue &e 'ery small, the num&er of
(or0men em+loyed in )olle)tin* and +re+arin* it must ne)essarily
ha'e &een 'ery *reat- Its *reat +ri)e *enerally arises from the
(a*es of their la&our, and the +rofits of all their immediate
em+loyers- .y +ayin* that +ri)e he indire)tly +ays all those
(a*es and +rofits and thus indire)tly )ontri&utes to the
maintenan)e of all the (or0men and their em+loyers- #e *enerally
)ontri&utes, ho(e'er, &ut a 'ery small +ro+ortion to that of
ea)h, to 'ery fe( +erha+s a tenth, to many not a hundredth, and
to some not a thousandth, nor e'en a ten8thousandth +art of their
(hole annual maintenan)e- Thou*h he )ontri&utes, therefore, to
the maintenan)e of them all, they are all more or less
inde+endent of him, &e)ause *enerally they )an all &e maintained
(ithout him-
When the *reat +ro+rietors of land s+end their rents in
maintainin* their tenants and retainers, ea)h of them maintains
entirely all his o(n tenants and all his o(n retainers- .ut (hen
they s+end them in maintainin* tradesmen and artifi)ers, they
may, all of them ta0en to*ether, +erha+s, maintain as *reat, or,
on a))ount of the (aste (hi)h attends rusti) hos+itality, a
*reater num&er of +eo+le than &efore- $a)h of them, ho(e'er,
ta0en sin*ly, )ontri&utes often &ut a 'ery small share to the
maintenan)e of any indi'idual of this *reater num&er- $a)h
tradesman or artifi)er deri'es his su&sisten)e from the
em+loyment, not of one, &ut of a hundred or a thousand different
)ustomers- Thou*h in some measure o&li*ed to them all, therefore,
he is not a&solutely de+endent u+on any one of them-
The +ersonal e1+ense of the *reat +ro+rietors ha'in* in this
manner *radually in)reased, it (as im+ossi&le that the num&er of
their retainers should not as *radually diminish till they (ere
at last dismissed alto*ether- The same )ause *radually led them
to dismiss the unne)essary +art of their tenants- "arms (ere
enlar*ed, and the o))u+iers of land, not(ithstandin* the
)om+laints of de+o+ulation, redu)ed to the num&er ne)essary for
)ulti'atin* it, a))ordin* to the im+erfe)t state of )ulti'ation
and im+ro'ement in those times- .y the remo'al of the unne)essary
mouths, and &y e1a)tin* from the farmer the full 'alue of the
farm, a *reater sur+lus, or (hat is the same thin*, the +ri)e of
a *reater sur+lus, (as o&tained for the +ro+rietor, (hi)h the
mer)hants and manufa)turers soon furnished him (ith a method of
s+endin* u+on his o(n +erson in the same manner as he had done
the rest- The same )ause )ontinuin* to o+erate, he (as desirous
to raise his rents a&o'e (hat his lands, in the a)tual state of
their im+ro'ement, )ould afford- #is tenants )ould a*ree to this
u+on one )ondition only, that they should &e se)ured in their
+ossession for su)h a term of years as mi*ht *i'e them time to
re)o'er (ith +rofit (hate'er they should lay out in the further
im+ro'ement of the land- The e1+ensi'e 'anity of the landlord
made him (illin* to a))e+t of this )ondition/ and hen)e the
ori*in of lon* leases-
$'en a tenant at (ill, (ho +ays the full 'alue of the land,
is not alto*ether de+endent u+on the landlord- The +e)uniary
ad'anta*es (hi)h they re)ei'e from one another are mutual and
equal, and su)h a tenant (ill e1+ose neither his life nor his
fortune in the ser'i)e of the +ro+rietor- .ut if he has a lease
for a lon* term of years, he is alto*ether inde+endent/ and his
landlord must not e1+e)t from him the most triflin* ser'i)e
&eyond (hat is either e1+ressly sti+ulated in the lease or
im+osed u+on him &y the )ommon and 0no(n la( of the )ountry-
The tenants ha'in* in this manner &e)ome inde+endent, and
the retainers &ein* dismissed, the *reat +ro+rietors (ere no
lon*er )a+a&le of interru+tin* the re*ular e1e)ution of 2usti)e
or of distur&in* the +ea)e of the )ountry- #a'in* sold their
&irthri*ht, not li0e $sau for a mess of +otta*e in time of hun*er
and ne)essity, &ut in the (antonness of +lenty, for trin0ets and
&au&les, fitter to &e the +laythin*s of )hildren than the serious
+ursuits of men, they &e)ame as insi*nifi)ant as any su&stantial
&ur*her or tradesman in a )ity- A re*ular *o'ernment (as
esta&lished in the )ountry as (ell as in the )ity, no&ody ha'in*
suffi)ient +o(er to distur& its o+erations in the one any more
than in the other-
It does not, +erha+s, relate to the +resent su&2e)t, &ut I
)annot hel+ remar0in* it, that 'ery old families, su)h as ha'e
+ossessed some )onsidera&le estate from father to son for many
su))essi'e *enerations are 'ery rare in )ommer)ial )ountries- In
)ountries (hi)h ha'e little )ommer)e, on the )ontrary, su)h as
Wales or the hi*hlands of S)otland, they are 'ery )ommon- The
Ara&ian histories seem to &e all full of *enealo*ies, and there
is a history (ritten &y a Tartar %han, (hi)h has &een translated
into se'eral $uro+ean lan*ua*es, and (hi)h )ontains s)ar)e
anythin* else/ a +roof that an)ient families are 'ery )ommon
amon* those nations- In )ountries (here a ri)h man )an s+end his
re'enue in no other (ay than &y maintainin* as many +eo+le as it
)an maintain, he is not a+t to run out, and his &ene'olen)e it
seems is seldom so 'iolent as to attem+t to maintain more than he
)an afford- .ut (here he )an s+end the *reatest re'enue u+on his
o(n +erson, he frequently has no &ounds to his e1+ense, &e)ause
he frequently has no &ounds to his 'anity or to his affe)tion for
his o(n +erson- In )ommer)ial )ountries, therefore, ri)hes, in
s+ite of the most 'iolent re*ulations of la( to +re'ent their
dissi+ation, 'ery seldom remain lon* in the same family- Amon*
sim+le nations, on the )ontrary, they frequently do (ithout any
re*ulations of la(, for amon* nations of she+herds, su)h as the
Tartars and Ara&s, the )onsuma&le nature of their +ro+erty
ne)essarily renders all su)h re*ulations im+ossi&le-
A re'olution of the *reatest im+ortan)e to the +u&li)
ha++iness (as in this manner &rou*ht a&out &y t(o different
orders of +eo+le (ho had not the least intention to ser'e the
+u&li)- To *ratify the most )hildish 'anity (as the sole moti'e
of the *reat +ro+rietors- The mer)hants and artifi)ers, mu)h less
ridi)ulous, a)ted merely from a 'ie( to their o(n interest, and
in +ursuit of their o(n +edlar +rin)i+le of turnin* a +enny
(here'er a +enny (as to &e *ot- Neither of them had either
0no(led*e or foresi*ht of that *reat re'olution (hi)h the folly
of the one, and the industry of the other, (as *radually &rin*in*
a&out-
It is thus that throu*h the *reater +art of $uro+e the
)ommer)e and manufa)tures of )ities, instead of &ein* the effe)t,
ha'e &een the )ause and o))asion of the im+ro'ement and
)ulti'ation of the )ountry-
This order, ho(e'er, &ein* )ontrary to the natural )ourse of
thin*s, is ne)essarily &oth slo( and un)ertain- Com+are the slo(
+ro*ress of those $uro+ean )ountries of (hi)h the (ealth de+ends
'ery mu)h u+on their )ommer)e and manufa)tures (ith the ra+id
ad'an)es of our North Ameri)an )olonies, of (hi)h the (ealth is
founded alto*ether in a*ri)ulture- Throu*h the *reater +art of
$uro+e the num&er of inha&itants is not su++osed to dou&le in
less than fi'e hundred years- In se'eral of our North Ameri)an
)olonies, it is found to dou&le in t(enty or fi'e8and8t(enty
years- In $uro+e, the la( of +rimo*eniture and +er+etuities of
different 0inds +re'ent the di'ision of *reat estates, and
there&y hinder the multi+li)ation of small +ro+rietors- A small
+ro+rietor, ho(e'er, (ho 0no(s e'ery +art of his little
territory, (ho 'ie(s it (ith all the affe)tion (hi)h +ro+erty,
es+e)ially small +ro+erty, naturally ins+ires, and (ho u+on that
a))ount ta0es +leasure not only in )ulti'atin* &ut in adornin*
it, is *enerally of all im+ro'ers the most industrious, the most
intelli*ent, and the most su))essful- The same re*ulations,
&esides, 0ee+ so mu)h land out of the mar0et that there are
al(ays more )a+itals to &uy than there is land to sell, so that
(hat is sold al(ays sells at a mono+oly +ri)e- The rent ne'er
+ays the interest of the +ur)hase8money, and is, &esides,
&urdened (ith re+airs and other o))asional )har*es to (hi)h the
interest of money is not lia&le- To +ur)hase land is e'ery(here
in $uro+e a most un+rofita&le em+loyment of a small )a+ital- "or
the sa0e of the su+erior se)urity, indeed, a man of moderate
)ir)umstan)es, (hen he retires from &usiness, (ill sometimes
)hoose to lay out his little )a+ital in land- A man of +rofession
too, (hose re'enue is deri'ed from- another sour)e, often lo'es
to se)ure his sa'in*s in the same (ay- .ut a youn* man, (ho,
instead of a++lyin* to trade or to some +rofession, should em+loy
a )a+ital of t(o or three thousand +ounds in the +ur)hase and
)ulti'ation of a small +ie)e of land, mi*ht indeed e1+e)t to li'e
'ery ha++ily, and 'ery inde+endently, &ut must &id adieu fore'er
to all ho+e of either *reat fortune or *reat illustration, (hi)h
&y a different em+loyment of his sto)0 he mi*ht ha'e had the same
)han)e of a)quirin* (ith other +eo+le- Su)h a +erson too, thou*h
he )annot as+ire at &ein* a +ro+rietor, (ill often disdain to &e
a farmer- The small quantity of land, therefore, (hi)h is &rou*ht
to mar0et, and the hi*h +ri)e of (hat is &rou*ht thither,
+re'ents a *reat num&er of )a+itals from &ein* em+loyed in its
)ulti'ation and im+ro'ement (hi)h (ould other(ise ha'e ta0en that
dire)tion- In North Ameri)a, on the )ontrary, fifty or si1ty
+ounds is often found a suffi)ient sto)0 to &e*in a +lantation
(ith- The +ur)hase and im+ro'ement of un)ulti'ated land is there
the most +rofita&le em+loyment of the smallest as (ell as of the
*reatest )a+itals, and the most dire)t road to all the fortune
and illustration (hi)h )an &e a)quired in that )ountry- Su)h
land, indeed, is in North Ameri)a to &e had almost for nothin*,
or at a +ri)e mu)h &elo( the 'alue of the natural +rodu)e8 a
thin* im+ossi&le in $uro+e, or, indeed, in any )ountry (here all
lands ha'e lon* &een +ri'ate +ro+erty- If landed estates,
ho(e'er, (ere di'ided equally amon* all the )hildren u+on the
death of any +ro+rietor (ho left a numerous family, the estate
(ould *enerally &e sold- So mu)h land (ould )ome to mar0et that
it )ould no lon*er sell at a mono+oly +ri)e- The free rent of the
land (ould *o nearer to +ay the interest of the +ur)hase8money,
and a small )a+ital mi*ht &e em+loyed in +ur)hasin* land as
+rofita&ly as in any other (ay-
$n*land, on a))ount of the natural fertility of the soil, of
the *reat e1tent of the sea8)oast in +ro+ortion to that of the
(hole )ountry, and of the many na'i*a&le ri'ers (hi)h run throu*h
it and afford the )on'enien)y of (ater )arria*e to some of the
most inland +arts of it, is +erha+s as (ell fitted &y nature as
any lar*e )ountry in $uro+e to &e the seat of forei*n )ommer)e,
of manufa)tures for distant sale, and of all the im+ro'ements
(hi)h these )an o))asion- "rom the &e*innin* of the rei*n of
$li;a&eth too, the $n*lish le*islature has &een +e)uliarly
attenti'e to the interests of )ommer)e and manufa)tures, and in
reality there is no )ountry in $uro+e, #olland itself not
e1)e+ted, of (hi)h the la( is, u+on the (hole, more fa'oura&le to
this sort of industry- Commer)e and manufa)tures ha'e a))ordin*ly
&een )ontinually ad'an)in* durin* all this +eriod- The
)ulti'ation and im+ro'ement of the )ountry has, no dou&t, &een
*radually ad'an)in* too/ &ut it seems to ha'e follo(ed slo(ly,
and at a distan)e, the more ra+id +ro*ress of )ommer)e and
manufa)tures- The *reater +art of the )ountry must +ro&a&ly ha'e
&een )ulti'ated &efore the rei*n of $li;a&eth/ and a 'ery *reat
+art of it still remains un)ulti'ated, and the )ulti'ation of the
far *reater +art mu)h inferior to (hat it mi*ht &e- The la( of
$n*land, ho(e'er, fa'ours a*ri)ulture not only indire)tly &y the
+rote)tion of )ommer)e, &ut &y se'eral dire)t en)oura*ements-
$1)e+t in times of s)ar)ity, the e1+ortation of )orn is not only
free, &ut en)oura*ed &y a &ounty- In times of moderate +lenty,
the im+ortation of forei*n )orn is loaded (ith duties that amount
to a +rohi&ition- The im+ortation of li'e )attle, e1)e+t from
Ireland, is +rohi&ited at all times, and it is &ut of late that
it (as +ermitted from then)e- Those (ho )ulti'ate the land,
therefore, ha'e a mono+oly a*ainst their )ountrymen for the t(o
*reatest and most im+ortant arti)les of land +rodu)e, &read and
&ut)her=s meat- These en)oura*ements, thou*h at &ottom, +erha+s,
as I shall endea'our to sho( hereafter, alto*ether illusory,
suffi)iently demonstrate at least the *ood intention of the
le*islature to fa'our a*ri)ulture- .ut (hat is of mu)h more
im+ortan)e than all of them, the yeomanry of $n*land are rendered
as se)ure, as inde+endent, and as res+e)ta&le as la( )an ma0e
them- No )ountry, therefore, in (hi)h the ri*ht of +rimo*eniture
ta0es +la)e, (hi)h +ays tithes, and (here +er+etuities, thou*h
)ontrary to the s+irit of the la(, are admitted in some )ases,
)an *i'e more en)oura*ement to a*ri)ulture than $n*land- Su)h,
ho(e'er, not(ithstandin*, is the state of its )ulti'ation- What
(ould it ha'e &een had the la( *i'en no dire)t en)oura*ement to
a*ri)ulture &esides (hat arises indire)tly from the +ro*ress of
)ommer)e, and had left the yeomanry in the same )ondition as in
most other )ountries of $uro+e> It is no( more than t(o hundred
years sin)e the &e*innin* of the rei*n of $li;a&eth, a +eriod as
lon* as the )ourse of human +ros+erity usually endures-
"ran)e seems to ha'e had a )onsidera&le share of forei*n
)ommer)e near a )entury &efore $n*land (as distin*uished as a
)ommer)ial )ountry- The marine of "ran)e (as )onsidera&le,
a))ordin* to the notions of the times, &efore the e1+edition of
Charles 5III to Na+les- The )ulti'ation and im+ro'ement of
"ran)e, ho(e'er, is, u+on the (hole, inferior to that of $n*land-
The la( of the )ountry has ne'er *i'en the same dire)t
en)oura*ement to a*ri)ulture-
The forei*n )ommer)e of S+ain and ortu*al to the other
+arts of $uro+e, thou*h )hiefly )arried on in forei*n shi+s, is
'ery )onsidera&le- That to their )olonies is )arried on in their
o(n, and is mu)h *reater, on a))ount of the *reat ri)hes and
e1tent of those )olonies- .ut it has ne'er introdu)ed any
)onsidera&le manufa)tures for distant sale into either of those
)ountries, and the *reater +art of &oth still remains
un)ulti'ated- The forei*n )ommer)e of ortu*al is of older
standin* than that of any *reat )ountry in $uro+e, e1)e+t Italy-
Italy is the only *reat )ountry of $uro+e (hi)h seems to
ha'e &een )ulti'ated and im+ro'ed in e'ery +art &y means of
forei*n )ommer)e and manufa)tures for distant sale- .efore the
in'asion of Charles 5III, Italy a))ordin* to 6ui))iardin, (as
)ulti'ated not less in the most mountainous and &arren +arts of
the )ountry than in the +lainest and most fertile- The
ad'anta*eous situation of the )ountry, and the *reat num&er of
inde+endent states (hi)h at that time su&sisted in it, +ro&a&ly
)ontri&uted not a little to this *eneral )ulti'ation- It is not
im+ossi&le too, not(ithstandin* this *eneral e1+ression of one of
the most 2udi)ious and reser'ed of modern historians, that Italy
(as not at that time &etter )ulti'ated than $n*land is at
+resent-
The )a+ital, ho(e'er, that is a)quired to any )ountry &y
)ommer)e and manufa)tures is all a 'ery +re)arious and un)ertain
+ossession till some +art of it has &een se)ured and reali;ed in
the )ulti'ation and im+ro'ement of its lands- A mer)hant, it has
&een said 'ery +ro+erly, is not ne)essarily the )iti;en of any
+arti)ular )ountry- It is in a *reat measure indifferent to him
from (hat +la)e he )arries on his trade/ and a 'ery triflin*
dis*ust (ill ma0e him remo'e his )a+ital, and to*ether (ith it
all the industry (hi)h it su++orts, from one )ountry to another-
No +art of it )an &e said to &elon* to any +arti)ular )ountry,
till it has &een s+read as it (ere o'er the fa)e of that )ountry,
either in &uildin*s or in the lastin* im+ro'ement of lands- No
'esti*e no( remains of the *reat (ealth said to ha'e &een
+ossessed &y the *reater +art of the #ans to(ns e1)e+t in the
o&s)ure histories of the thirteenth and fourteenth )enturies- It
is e'en un)ertain (here some of them (ere situated or to (hat
to(ns in $uro+e the !atin names *i'en to some of them &elon*- .ut
thou*h the misfortunes of Italy in the end of the fifteenth and
&e*innin* of the si1teenth )enturies *reatly diminished the
)ommer)e and manufa)tures of the )ities of !om&ardy and Tus)any,
those )ountries still )ontinue to &e amon* the most +o+ulous and
&est )ulti'ated in $uro+e- The )i'il (ars of "landers, and the
S+anish *o'ernment (hi)h su))eeded them, )hased a(ay the *reat
)ommer)e of Ant(er+, 6hent, and .ru*es- .ut "landers still
)ontinues to &e one of the ri)hest, &est )ulti'ated, and most
+o+ulous +ro'in)es of $uro+e- The ordinary re'olutions of (ar and
*o'ernment easily dry u+ the sour)es of that (ealth (hi)h arises
from )ommer)e only- That (hi)h arises from the more solid
im+ro'ements of a*ri)ulture is mu)h more dura&le and )annot &e
destroyed &ut &y those more 'iolent )on'ulsions o))asioned &y the
de+redations of hostile and &ar&arous nations )ontinued for a
)entury or t(o to*ether, su)h as those that ha++ened for some
time &efore and after the fall of the Roman em+ire in the (estern
+ro'in)es of $uro+e-
.OO% "OUR
O" S7ST$4S O" O!ITICA! $CONO47
INTRODUCTION
O!ITICA! e)onomy, )onsidered as a &ran)h of the s)ien)e of a
statesman or le*islator, +ro+oses t(o distin)t o&2e)ts3 first, to
+ro'ide a +lentiful re'enue or su&sisten)e for the +eo+le, or
more +ro+erly to ena&le them to +ro'ide su)h a re'enue or
su&sisten)e for themsel'es/ and se)ondly, to su++ly the state or
)ommon(ealth (ith a re'enue suffi)ient for the +u&li) ser'i)es-
It +ro+oses to enri)h &oth the +eo+le and the so'erei*n-
The different +ro*ress of o+ulen)e in different a*es and
nations has *i'en o))asion to t(o different systems of +oliti)al
e)onomy (ith re*ard to enri)hin* the +eo+le- The one may &e
)alled the system of )ommer)e, the other that of a*ri)ulture- I
shall endea'our to e1+lain &oth as fully and distin)tly as I )an,
and shall &e*in (ith the system of )ommer)e- It is the modern
system, and is &est understood in our o(n )ountry and in our o(n
times-
C#AT$R I
Of the rin)i+le of the Commer)ial, or 4er)antile System
T#AT (ealth )onsists in money, or and sil'er, is a +o+ular
notion (hi)h naturally arises from the dou&le fun)tion of money,
as the instrument of )ommer)e and as the measure of 'alue- In
)onsequen)e of its &ein* the instrument of )ommer)e, (hen (e ha'e
money (e )an more readily o&tain (hate'er else (e ha'e o))asion
for than &y means of any other )ommodity- The *reat affair, (e
al(ays find, is to *et money- When that is o&tained, there is no
diffi)ulty in ma0in* any su&sequent +ur)hase- In )onsequen)e of
its &ein* the measure of 'alue, (e estimate that of all other
)ommodities &y the quantity of money (hi)h they (ill e1)han*e
for- We say of a ri)h man that he is (orth a *reat deal, and of a
+oor man that he is (orth 'ery little money- A fru*al man, or a
man ea*er to &e ri)h, is said to lo'e money/ and a )areless, a
*enerous, or a +rofuse man, is said to &e indifferent a&out it-
To *ro( ri)h is to *et money/ and (ealth and money, in short,
are, in )ommon lan*ua*e, )onsidered as in e'ery res+e)t
synonymous-
A ri)h )ountry, in the same manner as a ri)h man, is
su++osed to &e a )ountry a&oundin* in money/ and to hea+ u+ *old
and sa'er in any )ountry is su++osed to &e the readiest (ay to
enri)h it- "or some time after the dis)o'ery of Ameri)a, the
first inquiry of the S+aniards, (hen they arri'ed u+on an un0no(n
)oast, used to &e, if there (as any *old or sil'er to &e found in
the nei*h&ourhood- .y the information (hi)h they re)ei'ed, they
2ud*ed (hether it (as (orth (hile to ma0e a settlement there, or
if the )ountry (as (orth the )onquerin*- lano Car+ino, a mon0,
sent am&assador from the %in* of "ran)e to one of the sons of the
famous 6en*his %han, says that the Tartars used frequently to as0
him if there (as +lenty of shee+ and o1en in the 0in*dom of
"ran)e- Their inquiry had the same o&2e)t (ith that of the
S+aniards- They (anted to 0no( if the )ountry (as ri)h enou*h to
&e (orth the )onquerin*- Amon* the Tartars, as amon* all other
nations of she+herds, (ho are *enerally i*norant of the use of
money, )attle are the instruments of )ommer)e and the measures of
'alue- Wealth, therefore, a))ordin* to them, )onsisted in )attle,
as a))ordin* to the S+aniards it )onsisted in *old and sil'er- Of
the t(o, the Tartar notion, +erha+s, (as the nearest to the
truth-
4r- !o)0e remar0s a distin)tion &et(een money and other
mo'a&le *oods- All other mo'a&le *oods, he says, are of so
)onsuma&le a nature that the (ealth (hi)h )onsists in them )annot
&e mu)h de+ended on, and a nation (hi)h a&ounds in them one year
may, (ithout any e1+ortation, &ut merely their o(n (aste and
e1tra'a*an)e, &e in *reat (ant of them the ne1t- 4oney, on the
)ontrary, is a steady friend, (hi)h, thou*h it may tra'el a&out
from hand to hand, yet if it )an &e 0e+t from *oin* out of the
)ountry, is not 'ery lia&le to &e (asted and )onsumed- 6old and
sil'er, therefore, are, a))ordin* to him, the most solid and
su&stantial +art of the mo'a&le (ealth of a nation, and to
multi+ly those metals ou*ht, he thin0s, u+on that a))ount, to &e
the *reat o&2e)t of its +oliti)al e)onomy-
Others admit that if a nation )ould &e se+arated from all
the (orld, it (ould &e of no )onsequen)e ho( mu)h, or ho( little
money )ir)ulated in it- The )onsuma&le *oods (hi)h (ere
)ir)ulated &y means of this money (ould only &e e1)han*ed for a
*reater or a smaller num&er of +ie)es/ &ut the real (ealth or
+o'erty of the )ountry, they allo(, (ould de+end alto*ether u+on
the a&undan)e or s)ar)ity of those )onsuma&le *oods- .ut it is
other(ise, they thin0, (ith )ountries (hi)h ha'e )onne)tions (ith
forei*n nations, and (hi)h are o&li*ed to )arry on forei*n (ars,
and to maintain fleets and armies in distant )ountries- This,
they say, )annot &e done &ut &y sendin* a&road money to +ay them
(ith/ and a nation )annot send mu)h money a&road unless it has a
*ood deal at home- $'ery su)h nation, therefore, must endea'our
in time of +ea)e to a))umulate *old and sil'er that, (hen
o))asion requires, it may ha'e (here(ithal to )arry on forei*n
(ars-
In )onsequen)e of these +o+ular notions, all the different
nations of $uro+e ha'e studied, thou*h to little +ur+ose, e'ery
+ossi&le means of a))umulatin* *old and sil'er in their
res+e)ti'e )ountries- S+ain and ortu*al, the +ro+rietors of the
+rin)i+al mines (hi)h su++ly $uro+e (ith those metals, ha'e
either +rohi&ited their e1+ortation under the se'erest +enalties,
or su&2e)ted it to a )onsidera&le duty- The li0e +rohi&ition
seems an)iently to ha'e made a +art of the +oli)y of most other
$uro+ean nations- It is e'en to &e found, (here (e should least
of all e1+e)t to find it, in some old S)ot)h a)ts of arliament,
(hi)h for&id under hea'y +enalties the )arryin* *old or sil'er
forth of the 0in*dom- The li0e +oli)y an)iently too0 +la)e &oth
in "ran)e and $n*land-
When those )ountries &e)ame )ommer)ial, the mer)hants found
this +rohi&ition, u+on many o))asions, e1tremely in)on'enient-
They )ould frequently &uy more ad'anta*eously (ith *old and
sil'er than (ith any other )ommodity the forei*n *oods (hi)h they
(anted, either to im+ort into their o(n, or to )arry to some
other forei*n )ountry- They remonstrated, therefore, a*ainst this
+rohi&ition as hurtful to trade-
They re+resented, first, that the e1+ortation of *old and
sil'er in order to +ur)hase forei*n *oods, did not al(ays
diminish the quantity of those metals in the 0in*dom- That, on
the )ontrary, it mi*ht frequently in)rease that quantity/
&e)ause, if the )onsum+tion of forei*n *oods (as not there&y
in)reased in the )ountry, those *oods mi*ht &e re8e1+orted to
forei*n )ountries, and, &ein* there sold for a lar*e +rofit,
mi*ht &rin* &a)0 mu)h more treasure than (as ori*inally sent out
to +ur)hase them- 4r- 4un )om+ares this o+eration of forei*n
trade to the seed8time and har'est of a*ri)ulture- @If (e only
&ehold,@ says he, @the a)tions of the hus&andman in the
seed8time, (hen he )asteth a(ay mu)h *ood )orn into the *round,
(e shall a))ount him rather a madman than a hus&andman- .ut (hen
(e )onsider his la&ours in the har'est, (hi)h is the end of his
endea'ours, (e shall find the (orth and +lentiful in)rease of his
a)tion-@
They re+resented, se)ondly, that this +rohi&ition )ould not
hinder the e1+ortation of *old and sil'er, (hi)h, on a))ount of
the smallness of their &ul0 in +ro+ortion to their 'alue, )ould
easily &e smu**led a&road- That this e1+ortation )ould only &e
+re'ented &y a +ro+er attention to, (hat they )alled, the &alan)e
of trade- That (hen the )ountry e1+orted to a *reater 'alue than
it im+orted, a &alan)e &e)ame due to it from forei*n nations,
(hi)h (as ne)essarily +aid to it in *old and sil'er, and there&y
in)reased the quantity of those metals in the 0in*dom- .ut that
(hen it im+orted to a *reater 'alue than it e1+orted, a )ontrary
&alan)e &e)ame due to forei*n nations, (hi)h (as ne)essarily +aid
to them in the same manner, and there&y diminished that quantity-
That in this )ase to +rohi&it the e1+ortation of those metals
)ould not +re'ent it, &ut only, &y ma0in* it more dan*erous,
render it more e1+ensi'e- That the e1)han*e (as there&y turned
more a*ainst the )ountry (hi)h o(ed the &alan)e than it other(ise
mi*ht ha'e &een/ the mer)hant (ho +ur)hased a &ill u+on the
forei*n )ountry &ein* o&li*ed to +ay the &an0er (ho sold it, not
only for the natural ris0, trou&le, and e1+ense of sendin* the
money thither, &ut for the e1traordinary ris0 arisin* from the
+rohi&ition- .ut that the more the e1)han*e (as a*ainst any
)ountry, the more the &alan)e of trade &e)ame ne)essarily a*ainst
it/ the money of that )ountry &e)omin* ne)essarily of so mu)h
less 'alue in )om+arison (ith that of the )ountry to (hi)h the
&alan)e (as due- That if the e1)han*e &et(een $n*land and
#olland, for e1am+le, (as fi'e +er )ent a*ainst $n*land, it (ould
require a hundred and fi'e oun)es of sil'er in $n*land to
+ur)hase a &ill for a hundred oun)es of sil'er in #olland3 that a
hundred and fi'e oun)es of sil'er in $n*land, therefore, (ould &e
(orth only a hundred oun)es of sil'er in #olland, and (ould
+ur)hase only a +ro+ortiona&le quantity of Dut)h *oods/ &ut that
a hundred oun)es of sil'er in #olland, on the )ontrary, (ould &e
(orth a hundred and fi'e oun)es in $n*land, and (ould +ur)hase a
+ro+ortiona&le quantity of $n*lish *oods3 that the $n*lish *oods
(hi)h (ere sold to #olland (ould &e sold so mu)h )hea+er/ and the
Dut)h *oods (hi)h (ere sold to $n*land so mu)h dearer &y the
differen)e of the e1)han*e/ that the one (ould dra( so mu)h less
Dut)h money to $n*land, and the other so mu)h more $n*lish money
to #olland, as this differen)e amounted to3 and that the &alan)e
of trade, therefore, (ould ne)essarily &e so mu)h more a*ainst
$n*land, and (ould require a *reater &alan)e of *old and sil'er
to &e e1+orted to #olland-
Those ar*uments (ere +artly solid and +artly so+histi)al-
They (ere solid so far as they asserted that the e1+ortation of
*old and sil'er in trade mi*ht frequently &e ad'anta*eous to the
)ountry- They (ere solid, too, in assertin* that no +rohi&ition
)ould +re'ent their e1+ortation (hen +ri'ate +eo+le found any
ad'anta*e in e1+ortin* them- .ut they (ere so+histi)al in
su++osin* that either to +reser'e or to au*ment the quantity of
those metals required more the attention of *o'ernment than to
+reser'e or to au*ment the quantity of any other useful
)ommodities, (hi)h the freedom of trade, (ithout any su)h
attention, ne'er fails to su++ly in the +ro+er quantity- They
(ere so+histi)al too, +erha+s, in assertin* that the hi*h +ri)e
of e1)han*e ne)essarily in)reased (hat they )alled the
unfa'oura&le &alan)e of trade, or o))asioned the e1+ortation of a
*reater quantity of *old and sil'er- That hi*h +ri)e, indeed, (as
e1tremely disad'anta*eous to the mer)hants (ho had any money to
+ay in forei*n )ountries- They +aid so mu)h dearer for the &ills
(hi)h their &an0ers *ranted them u+on those )ountries- .ut thou*h
the ris0 arisin* from the +rohi&ition mi*ht o))asion some
e1traordinary e1+ense to the &an0ers, it (ould not ne)essarily
)arry any more money out of the )ountry- This e1+ense (ould
*enerally &e all laid out in the )ountry, in smu**lin* the money
out of it, and )ould seldom o))asion the e1+ortation of a sin*le
si1+en)e &eyond the +re)ise sum dra(n for- The hi*h +ri)e of
e1)han*e too (ould naturally dis+ose the mer)hants to endea'our
to ma0e their e1+orts nearly &alan)e their im+orts, in order that
they mi*ht ha'e this hi*h e1)han*e to +ay u+on as small a sum as
+ossi&le- The hi*h +ri)e of e1)han*e, &esides, must ne)essarily
ha'e o+erated as a ta1, in raisin* the +ri)e of forei*n *oods,
and there&y diminishin* their )onsum+tion- It (ould tend,
therefore, not to in)rease &ut to diminish (hat they )alled the
unfa'oura&le &alan)e of trade, and )onsequently the e1+ortation
of *old and sil'er-
Su)h as they (ere, ho(e'er, those ar*uments )on'in)ed the
+eo+le to (hom they (ere addressed- They (ere addressed &y
mer)hants to +arliaments and to the )oun)ils of +rin)es, to
no&les and to )ountry *entlemen, &y those (ho (ere su++osed to
understand trade to those (ho (ere )ons)ious to themsel'es that
they 0ne( nothin* a&out the matter- That forei*n trade enri)hed
the )ountry, e1+erien)e demonstrated to the no&les and )ountry
*entlemen as (ell as to the mer)hants/ &ut ho(, or in (hat
manner, none of them (ell 0ne(- The mer)hants 0ne( +erfe)tly in
(hat manner it enri)hed themsel'es- It (as their &usiness to 0no(
it- .ut to 0no( in (hat manner it enri)hed the )ountry (as no
+art of their &usiness- This su&2e)t ne'er )ame into their
)onsideration &ut (hen they had o))asion to a++ly to their
)ountry for some )han*e in the la(s relatin* to forei*n trade- It
then &e)ame ne)essary to say somethin* a&out the &enefi)ial
effe)ts of forei*n trade, and the manner in (hi)h those effe)ts
(ere o&stru)ted &y the la(s as they then stood- To the 2ud*es (ho
(ere to de)ide the &usiness it a++eared a most satisfa)tory
a))ount of the matter, (hen they (ere told that forei*n trade
&rou*ht money into the )ountry, &ut that the la(s in question
hindered it from &rin*in* so mu)h as it other(ise (ould do- Those
ar*uments therefore +rodu)ed the (ished8for effe)t- The
+rohi&ition of e1+ortin* *old and sil'er (as in "ran)e and
$n*land )onfined to the )oin of those res+e)ti'e )ountries- The
e1+ortation of forei*n )oin and of &ullion (as made free- In
#olland, and in some other +la)es, this li&erty (as e1tended e'en
to the )oin of the )ountry- The attention of *o'ernment (as
turned a(ay from *uardin* a*ainst the e1+ortation of *old and
sil'er to (at)h o'er the &alan)e of trade as the only )ause (hi)h
)ould o))asion any au*mentation or diminution of those metals-
"rom one fruitless )are it (as turned a(ay to another )are mu)h
more intri)ate, mu)h more em&arrassin*, and 2ust equally
fruitless- The title of 4un=s &oo0, $n*land=s Treasure in "orei*n
Trade, &e)ame a fundamental ma1im in the +oliti)al e)onomy, not
of $n*land only, &ut of all other )ommer)ial )ountries- The
inland or home trade, the most im+ortant of all, the trade in
(hi)h an equal )a+ital affords the *reatest re'enue, and )reates
the *reatest em+loyment to the +eo+le of the )ountry, (as
)onsidered as su&sidiary only to forei*n trade- It neither
&rou*ht money into the )ountry, it (as said, nor )arried any out
of it- The )ountry, therefore, )ould ne'er &e)ome either ri)her
or +oorer &y means of it, e1)e+t so far as its +ros+erity or
de)ay mi*ht indire)tly influen)e the state of forei*n trade-
A )ountry that has no mines of its o(n must undou&tedly dra(
its *old and sil'er from forei*n )ountries in the same manner as
one that has no 'ineyards of its o(n must dra( its (ines- It does
not seem ne)essary, ho(e'er, that the attention of *o'ernment
should &e more turned to(ards the one than to(ards the other
o&2e)t- A )ountry that has (here(ithal to &uy (ine (ill al(ays
*et the (ine (hi)h it has o))asion for/ and a )ountry that has
(here(ithal to &uy *old and sil'er (ill ne'er &e in (ant of those
metals- They are to &e &ou*ht for a )ertain +ri)e li0e all other
)ommodities, and as they are the +ri)e of all other )ommodities,
so all other )ommodities are the +ri)e of those metals- We trust
(ith +erfe)t se)urity that the freedom of trade, (ithout any
attention of *o'ernment, (ill al(ays su++ly us (ith the (ine
(hi)h (e ha'e o))asion for3 and (e may trust (ith equal se)urity
that it (ill al(ays su++ly us (ith all the *old and sil'er (hi)h
(e )an afford to +ur)hase or to em+loy, either in )ir)ulatin* our
)ommodities, or in other uses-
The quantity of e'ery )ommodity (hi)h human industry )an
either +ur)hase or +rodu)e naturally re*ulates itself in e'ery
)ountry a))ordin* to the effe)tual demand, or a))ordin* to the
demand of those (ho are (illin* to +ay the (hole rent, la&our,
and +rofits (hi)h must &e +aid in order to +re+are and &rin* it
to mar0et- .ut no )ommodities re*ulate themsel'es more easily or
more e1a)tly a))ordin* to this effe)tual demand than *old and
sil'er/ &e)ause, on a))ount of the small &ul0 and *reat 'alue of
those metals, no )ommodities )an &e more easily trans+orted from
one +la)e to another, from the +la)es (here they are )hea+ to
those (here they are dear, from the +la)es (here they e1)eed to
those (here they fall short of this effe)tual demand- If there
(ere in $n*land, for e1am+le, an effe)tual demand for an
additional quantity of *old, a +a)0et8&oat )ould &rin* from
!is&on, or from (here'er else it (as to &e had, fifty tons of
*old, (hi)h )ould &e )oined into more than fi'e millions of
*uineas- .ut if there (ere an effe)tual demand for *rain to the
same 'alue, to im+ort it (ould require, at fi'e *uineas a ton, a
million of tons of shi++in*, or a thousand shi+s of a thousand
tons ea)h- The na'y of $n*land (ould not &e suffi)ient-
When the quantity of *old and sil'er im+orted into any
)ountry e1)eeds the effe)tual demand, no 'i*ilan)e of *o'ernment
)an +re'ent their e1+ortation- All the san*uinary la(s of S+ain
and ortu*al are not a&le to 0ee+ their *old and sil'er at home-
The )ontinual im+ortations from eru and .ra;il e1)eed the
effe)tual demand of those )ountries, and sin0 the +ri)e of those
metals there &elo( that in the nei*h&ourin* )ountries- If, on the
)ontrary, in any +arti)ular )ountry their quantity fell short of
the effe)tual demand, so as to raise their +ri)e a&o'e that of
the nei*h&ourin* )ountries, the *o'ernment (ould ha'e no o))asion
to ta0e any +ains to im+ort them- If it (ere e'en to ta0e +ains
to +re'ent their im+ortation, it (ould not &e a&le to effe)tuate
it- Those metals, (hen the S+artans had *ot (here(ithal to
+ur)hase them, &ro0e throu*h all the &arriers (hi)h the la(s of
!y)ur*us o++osed to their entran)e into !a)edemon- All the
san*uinary la(s of the )ustoms are not a&le to +re'ent the
im+ortation of the teas of the Dut)h and 6otten&ur*h $ast India
Com+anies, &e)ause some(hat )hea+er than those of the .ritish
)om+any- A +ound of tea, ho(e'er, is a&out a hundred times the
&ul0 of one of the hi*hest +ri)es, si1teen shillin*s, that is
)ommonly +aid for it in sil'er, and more than t(o thousand times
the &ul0 of the same +ri)e in *old, and )onsequently 2ust so many
times more diffi)ult to smu**le-
It is +artly o(in* to the easy trans+ortation of *old and
sil'er from the +la)es (here they a&ound to those (here they are
(anted that the +ri)e of those metals does not flu)tuate
)ontinually li0e that of the *reater +art of other )ommodities,
(hi)h are hindered &y their &ul0 from shiftin* their situation
(hen the mar0et ha++ens to &e either o'er or under8sto)0ed (ith
them- The- +ri)e of those metals, indeed, is not alto*ether
e1em+ted from 'ariation, &ut the )han*es to (hi)h it is lia&le
are *enerally slo(, *radual and uniform- In $uro+e, for e1am+le,
it is su++osed, (ithout mu)h foundation, +erha+s, that durin* the
)ourse of the +resent and +re)edin* )entury they ha'e &een
)onstantly, &ut *radually, sin0in* in their 'alue, on a))ount of
the )ontinual im+ortations from the S+anish West Indies- .ut to
ma0e any sudden )han*e in the +ri)e of *old and sil'er, so as to
raise or lo(er at on)e, sensi&ly and remar0a&ly, the money +ri)e
of all other )ommodities, requires su)h a re'olution in )ommer)e
as that o))asioned &y the dis)o'ery of Ameri)a-
If, not(ithstandin* all this, *old and sil'er should at any
time fall short in a )ountry (hi)h has (here(ithal to +ur)hase
them, there are more e1+edients for su++lyin* their +la)e than
that of almost any other )ommodity- If the materials of
manufa)ture are (anted, industry must sto+- If +ro'isions are
(anted, the +eo+le must star'e- .ut if money is (anted, &arter
(ill su++ly its +la)e, thou*h (ith a *ood deal of in)on'enien)y-
.uyin* and sellin* u+on )redit, and the different dealers
)om+ensatin* their )redits (ith one another, on)e a month or on)e
a year, (ill su++ly it (ith less in)on'enien)y- A (ell8re*ulated
+a+er money (ill su++ly it, not only (ithout any in)on'enien)y,
&ut, in some )ases, (ith some ad'anta*es- U+on e'ery a))ount,
therefore, the attention of *o'ernment ne'er (as so unne)essarily
em+loyed as (hen dire)ted to (at)h o'er the +reser'ation or
in)rease of the quantity of money in any )ountry-
No )om+laint, ho(e'er, is more )ommon than that of a
s)ar)ity of money- 4oney, li0e (ine, must al(ays &e s)ar)e (ith
those (ho ha'e neither (here(ithal to &uy it nor )redit to &orro(
it- Those (ho ha'e either (ill seldom &e in (ant either of the
money or of the (ine (hi)h they ha'e o))asion for- This
)om+laint, ho(e'er, of the s)ar)ity of money is not al(ays
)onfined to im+ro'ident s+endthrifts- It is sometimes *eneral
throu*h a (hole mer)antile to(n and the )ountry in its
nei*h&ourhood- O'ertradin* is the )ommon )ause of it- So&er men,
(hose +ro2e)ts ha'e &een dis+ro+ortioned to their )a+itals, are
as li0ely to ha'e neither (here(ithal to &uy money nor )redit to
&orro( it, as +rodi*als (hose e1+ense has &een dis+ro+ortioned to
their re'enue- .efore their +ro2e)ts )an &e &rou*ht to &ear,
their sto)0 is *one, and their )redit (ith it- They run a&out
e'ery(here to &orro( money, and e'ery&ody tells them that they
ha'e none to lend- $'en su)h *eneral )om+laints of the s)ar)ity
of money do not al(ays +ro'e that the usual num&er of *old and
sil'er +ie)es are not )ir)ulatin* in the )ountry, &ut that many
+eo+le (ant those +ie)es (ho ha'e nothin* to *i'e for them- When
the +rofits of trade ha++en to &e *reater than ordinary,
o'ertradin* &e)omes a *eneral error &oth amon* *reat and small
dealers- They do not al(ays send more money a&road than usual,
&ut they &uy u+on )redit, &oth at home and a&road, an unusual
quantity of *oods, (hi)h they send to some distant mar0et in
ho+es that the returns (ill )ome in &efore the demand for
+ayment- The demand )omes &efore the returns, and they ha'e
nothin* at hand (ith (hi)h they )an either +ur)hase money, or
*i'e solid se)urity for &orro(in*- It is not any s)ar)ity of *old
and sil'er, &ut the diffi)ulty (hi)h su)h +eo+le find in
&orro(in*, and (hi)h their )reditors find in *ettin* +ayment,
that o))asions the *eneral )om+laint of the s)ar)ity of money-
It (ould &e too ridi)ulous to *o a&out seriously to +ro'e
that (ealth does not )onsist in money, or in *old and sil'er/ &ut
in (hat money +ur)hases, and is 'alua&le only for +ur)hasin*-
4oney, no dou&t, ma0es al(ays a +art of the national )a+ital/ &ut
it has already &een sho(n that it *enerally ma0es &ut a small
+art, and al(ays the most un+rofita&le +art of it-
It is not &e)ause (ealth )onsists more essentially in money
than in *oods that the mer)hant find it *enerally more easy to
&uy *oods (ith money than to &uy money (ith *oods/ &ut &e)ause
money is the 0no(n and esta&lished instrument of )ommer)e, for
(hi)h e'erythin* is readily *i'en in e1)han*e, &ut (hi)h is not
al(ays (ith equal readiness to &e *ot in e1)han*e for e'erythin*-
The *reater +art of *oods, &esides, are more +erisha&le than
money, and he may frequently sustain a mu)h *reater loss &y
0ee+in* them- When his *oods are u+on hand, too, he is more
lia&le to su)h demands for money as he may not &e a&le to ans(er
than (hen he has *ot their +ri)e in his )offers- O'er and a&o'e
all this, his +rofit arises more dire)tly from sellin* than from
&uyin*, and he is u+on all these a))ounts *enerally mu)h more
an1ious to e1)han*e his *oods for money than his money for *oods-
.ut thou*h a +arti)ular mer)hant, (ith a&undan)e of *oods in his
(arehouse, may sometimes &e ruined &y not &ein* a&le to sell them
in time, a nation or )ountry is not lia&le to the same a))ident-
The (hole )a+ital of a mer)hant frequently )onsists in +erish,
a&le *oods destined for +ur)hasin* money- .ut it is &ut a 'ery
small +art of the annual +rodu)e of the land and la&our of a
)ountry (hi)h )an e'er &e destined for +ur)hasin* *old and sil'er
from their nei*h&ours- The far *reater +art is )ir)ulated and
)onsumed amon* themsel'es/ and e'en of the sur+lus (hi)h is sent
a&road, the *reater +art is *enerally destined for the +ur)hase
of other forei*n *oods- Thou*h *old and sil'er, therefore, )ould
not &e had in e1)han*e for the *oods destined to +ur)hase them,
the nation (ould not &e ruined- It mi*ht, indeed, suffer some
loss and in)on'enien)y, and &e for)ed u+on some of those
e1+edients (hi)h are ne)essary for su++lyin* the +la)e of money-
The annual +rodu)e of its land and la&our, ho(e'er, (ould &e the
same, or 'ery nearly the same, as usual, &e)ause the same, or
'ery nearly the same, )onsuma&le )a+ital (ould &e em+loyed in
maintainin* it- And thou*h *oods do not al(ays dra( money so
readily as money dra(s *oods, in the lon* run they dra( it more
ne)essarily than e'en it dra(s them- 6oods )an ser'e many other
+ur+oses &esides +ur)hasin* money, &ut money )an ser'e no other
+ur+ose &esides +ur)hasin* *oods- 4oney, therefore, ne)essarily
runs after *oods, &ut *oods do not al(ays or ne)essarily run
after money- The man (ho &uys does not al(ays mean to sell a*ain,
&ut frequently to use or to )onsume/ (hereas he (ho sells al(ays
means to &uy a*ain- The one may frequently ha'e done the (hole,
&ut the other )an ne'er ha'e done more than the one8half of his
&usiness- It is not for its o(n sa0e that men desire money, &ut
for the sa0e of (hat they )an +ur)hase (ith it-
Consuma&le )ommodities, it is said, are soon destroyed/
(hereas *old and sil'er are of a more dura&le nature, and, (ere
it not for this )ontinual e1+ortation, mi*ht &e a))umulated for
a*es to*ether, to the in)redi&le au*mentation of the real (ealth
of the )ountry- Nothin*, therefore, it is +retended, )an &e more
disad'anta*eous to any )ountry than the trade (hi)h )onsists in
the e1)han*e of su)h lastin* for su)h +erisha&le )ommodities- We
do not, ho(e'er, re)0on that trade disad'anta*eous (hi)h )onsists
in the e1)han*e of the hard(are of $n*land for the (ines of
"ran)e/ and yet hard(are is a 'ery dura&le )ommodity, and (ere it
not for this )ontinual e1+ortation mi*ht, too, &e a))umulated for
a*es to*ether, to the in)redi&le au*mentation of the +ots and
+ans of the )ountry- .ut it readily o))urs that the num&er of
su)h utensils is in e'ery )ountry ne)essarily limited &y the use
(hi)h there is for them/ that it (ould &e a&surd to ha'e more
+ots and +ans than (ere ne)essary for )oo0in* the 'i)tuals
usually )onsumed there/ and that if the quantity of 'i)tuals (ere
to in)rease, the num&er of +ots and +ans (ould readily in)rease
alon* (ith it, a +art of the in)reased quantity of 'i)tuals &ein*
em+loyed in +ur)hasin* them, or in maintainin* an additional
num&er of (or0men (hose &usiness it (as to ma0e them- It should
as readily o))ur that the quantity of *old and sil'er is in e'ery
)ountry limited &y the use (hi)h there is for those metals/ that
their use )onsists in )ir)ulatin* )ommodities as )oin, and in
affordin* a s+e)ies of household furniture as +late/ that the
quantity of )oin in e'ery )ountry is re*ulated &y the 'alue of
the )ommodities (hi)h are to &e )ir)ulated &y it3 in)rease that
'alue, and immediately a +art of it (ill &e sent a&road to
+ur)hase, (here'er it is to &e had, the additional quantity of
)oin requisite for )ir)ulatin* them3 that the quantity of +late
is re*ulated &y the num&er and (ealth of those +ri'ate families
(ho )hoose to indul*e themsel'es in that sort of ma*nifi)en)e3
in)rease the num&er and (ealth of su)h families, and a +art of
this in)reased (ealth (ill most +ro&a&ly &e em+loyed in
+ur)hasin*, (here'er it is to &e found, an additional quantity of
+late3 that to attem+t to in)rease the (ealth of any )ountry,
either &y introdu)in* or &y detainin* in it an unne)essary
quantity of *old and sil'er, is as a&surd as it (ould &e to
attem+t to in)rease the *ood )heer of +ri'ate families &y
o&li*in* them to 0ee+ an unne)essary num&er of 0it)hen utensils-
As the e1+ense of +ur)hasin* those unne)essary utensils (ould
diminish instead of in)reasin* either the quantity of *oodness of
the family +ro'isions, so the e1+ense of +ur)hasin* an
unne)essary quantity of *old and sil'er must, in e'ery )ountry,
as ne)essarily diminish the (ealth (hi)h feeds, )lothes, and
lod*es, (hi)h maintains and em+loys the +eo+le- 6old and sil'er,
(hether in the sha+e of )oin or of +late, are utensils, it must
&e remem&ered, as mu)h as the furniture of the 0it)hen- In)rease
the use for them, in)rease the )onsuma&le )ommodities (hi)h are
to &e )ir)ulated, mana*ed, and +re+ared &y means of them, and you
(ill infalli&ly in)rease the quantity/ &ut if you attem+t, &y
e1traordinary means, to in)rease the quantity, you (ill as
infalli&ly diminish the use and e'en the quantity too, (hi)h in
those metals )an ne'er &e *reater than (hat the use requires-
Were they e'er to &e a))umulated &eyond this quantity, their
trans+ortation is so easy, and the loss (hi)h attends their lyin*
idle and unem+loyed so *reat, that no la( )ould +re'ent their
&ein* immediately sent out of the )ountry-
It is not al(ays ne)essary to a))umulate *old and sil'er in
order to ena&le a )ountry to )arry on forei*n (ars, and to
maintain fleets and armies in distant )ountries- "leets and
armies are maintained, not (ith *old and sil'er, &ut (ith
)onsuma&le *oods- The nation (hi)h, from the annual +rodu)e of
its domesti) industry, from the annual re'enue arisin* out of its
lands, la&our, and )onsuma&le sto)0, has (here(ithal to +ur)hase
those )onsuma&le *oods in distant )ountries, )an maintain forei*n
(ars there-
A nation may +ur)hase the +ay and +ro'isions of an army in a
distant )ountry three different (ays3 &y sendin* a&road either,
first, some +art of its a))umulated *old and sil'er, or,
se)ondly, some +art of the annual +rodu)e of its manufa)tures/
or, last of all, some +art of its annual rude +rodu)e-
The *old and sil'er (hi)h )an +ro+erly &e )onsidered as
a))umulated or stored u+ in any )ountry may &e distin*uished into
three +arts3 first, the )ir)ulatin* money/ se)ondly, the +late of
+ri'ate families/ and, last of all, the money (hi)h may ha'e &een
)olle)ted &y many years= +arsimony, and laid u+ in the treasury
of the +rin)e-
It )an seldom ha++en that mu)h )an &e s+ared from the
)ir)ulatin* money of the )ountry/ &e)ause in that there )an
seldom &e mu)h redundan)y- The 'alue of *oods annually &ou*ht and
sold in any )ountry requires a )ertain quantity of money to
)ir)ulate and distri&ute them to their +ro+er )onsumers, and )an
*i'e em+loyment to no more- The )hannel of )ir)ulation
ne)essarily dra(s to itself a sum suffi)ient to fill it, and
ne'er admits any more- Somethin*, ho(e'er, is *enerally (ithdra(n
from this )hannel in the )ase of forei*n (ar- .y the *reat num&er
of +eo+le (ho are maintained a&road, fe(er are maintained at
home- "e(er *oods are )ir)ulated there, and less money &e)omes
ne)essary to )ir)ulate them- An e1traordinary quantity of +a+er
money, of some sort or other, su)h as e1)hequer notes, na'y
&ills, and &an0 &ills in $n*land, is *enerally issued u+on su)h
o))asions, and &y su++lyin* the +la)e of )ir)ulatin* *old and
sil'er, *i'es an o++ortunity of sendin* a *reater quantity of it
a&road- All this, ho(e'er, )ould afford &ut a +oor resour)e for
maintainin* a forei*n (ar of *reat e1+ense and se'eral years
duration-
The meltin* do(n the +late of +ri'ate families has u+on
e'ery o))asion &een found a still more insi*nifi)ant one- The
"ren)h, in the &e*innin* of the last (ar, did not deri'e so mu)h
ad'anta*e from this e1+edient as to )om+ensate the loss of the
fashion-
The a))umulated treasures of the +rin)e ha'e, in former
times, afforded a mu)h *reater and more lastin* resour)e- In the
+resent times, if you e1)e+t the 0in* of russia, to a))umulate
treasure seems to &e no +art of the +oli)y of $uro+ean +rin)es-
The funds (hi)h maintained the forei*n (ars of the +resent
)entury, the most e1+ensi'e +erha+s (hi)h history re)ords, seem
to ha'e had little de+enden)y u+on the e1+ortation either of the
)ir)ulatin* money, or of the +late of +ri'ate families, or of the
treasure of the +rin)e- The last "ren)h (ar )ost 6reat .ritain
u+(ards of ninety millions, in)ludin* not only the se'enty8fi'e
millions of ne( de&t that (as )ontra)ted, &ut the additional t(o
shillin*s in the +ound land8ta1, and (hat (as annually &orro(ed
of the sin0in* fund- 4ore than t(o8thirds of this e1+ense (ere
laid out in distant )ountries/ in 6ermany, ortu*al, Ameri)a, in
the +orts of the 4editerranean, in the $ast and West Indies- The
0in*s of $n*land had no a))umulated treasure- We ne'er heard of
any e1traordinary quantity of +late &ein* melted do(n- The
)ir)ulatin* *old and sil'er of the )ountry had not &een su++osed
to e1)eed ei*hteen millions- Sin)e the late re)oina*e of the
*old, ho(e'er, it is &elie'ed to ha'e &een a *ood deal
under8rated- !et us su++ose, therefore, a))ordin* to the most
e1a**erated )om+utation (hi)h I remem&er to ha'e either seen or
heard of, that, *old and sil'er to*ether, it amounted to thirty
millions- #ad the (ar &een )arried on &y means of our money, the
(hole of it must, e'en a))ordin* to this )om+utation, ha'e &een
sent out and returned a*ain at least t(i)e in a +eriod of &et(een
si1 and se'en years- Should this &e su++osed, it (ould afford the
most de)isi'e ar*ument to demonstrate ho( unne)essary it is for
*o'ernment to (at)h o'er the +reser'ation of money, sin)e u+on
this su++osition the (hole money of the )ountry must ha'e *one
from it and returned to it a*ain, t(o different times in so short
a +eriod, (ithout any&ody=s 0no(in* anythin* of the matter- The
)hannel of )ir)ulation, ho(e'er, ne'er a++eared more em+ty than
usual durin* any +art of this +eriod- "e( +eo+le (anted money (ho
had (here(ithal to +ay for it- The +rofits of forei*n trade,
indeed, (ere *reater than usual durin* the (hole (ar/ &ut
es+e)ially to(ards the end of it- This o))asioned, (hat it al(ays
o))asions, a *eneral o'ertradin* in all the +arts of 6reat
.ritain/ and this a*ain o))asioned the usual )om+laint of the
s)ar)ity of money, (hi)h al(ays follo(s o'ertradin*- 4any +eo+le
(anted it, (ho had neither (here(ithal to &uy it, nor )redit to
&orro( it/ and &e)ause the de&tors found it diffi)ult to &orro(,
the )reditors found it diffi)ult to *et +ayment- 6old and sil'er,
ho(e'er, (ere *enerally to &e had for their 'alue, &y those (ho
had that 'alue to *i'e for them-
The enormous e1+ense of the late (ar, therefore, must ha'e
&een )hiefly defrayed, not &y the e1+ortation of *old and sil'er,
&ut &y that of .ritish )ommodities of some 0ind or other- When
the *o'ernment, or those (ho a)ted under them, )ontra)ted (ith a
mer)hant for a remittan)e to some forei*n )ountry, he (ould
naturally endea'our to +ay his forei*n )orres+ondent, u+on (hom
he had *ranted a &ill, &y sendin* a&road rather )ommodities than
*old and sil'er- If the )ommodities of 6reat .ritain (ere not in
demand in that )ountry, he (ould endea'our to send them to some
other )ountry, in (hi)h he )ould +ur)hase a &ill u+on that
)ountry- The trans+ortation of )ommodities, (hen +ro+erly suited
to the mar0et, is al(ays attended (ith a )onsidera&le +rofit/
(hereas that of *old and sil'er is s)ar)e e'er attended (ith any-
When those metals are sent a&road in order to +ur)hase forei*n
)ommodities, the mer)hant=s +rofit arises, not from the +ur)hase,
&ut from the sale of the returns- .ut (hen they are sent a&road
merely to +ay a de&t, he *ets no returns, and )onsequently no
+rofit- #e naturally, therefore, e1erts his in'ention to find out
a (ay of +ayin* his forei*n de&ts rather &y the e1+ortation of
)ommodities than &y that of *old and sil'er- The *reat quantity
of .ritish *oods e1+orted durin* the )ourse of the late (ar,
(ithout &rin*in* &a)0 any returns, is a))ordin*ly remar0ed &y the
author of The resent State of the Nation-
.esides the three sorts of *old and sil'er a&o'e mentioned,
there is in all *reat )ommer)ial )ountries a *ood deal of &ullion
alternately im+orted and e1+orted for the +ur+oses of forei*n
trade- This &ullion, as it )ir)ulates amon* different )ommer)ial
)ountries in the same manner as the national )oin )ir)ulates in
e'ery +arti)ular )ountry, may &e )onsidered as the money of the
*reat mer)antile re+u&li)- The national )oin re)ei'es its
mo'ement and dire)tion from the )ommodities )ir)ulated (ithin the
+re)in)ts of ea)h +arti)ular )ountry3 the money of the mer)antile
re+u&li), from those )ir)ulated &et(een different )ountries- .oth
are em+loyed in fa)ilitatin* e1)han*es, the one &et(een different
indi'iduals of the same, the other &et(een those of different
nations- art of this money of the *reat mer)antile re+u&li) may
ha'e &een, and +ro&a&ly (as, em+loyed in )arryin* on the late
(ar- In time of a *eneral (ar, it is natural to su++ose that a
mo'ement and dire)tion should &e im+ressed u+on it, different
from (hat it usually follo(s in +rofound +ea)e/ that it should
)ir)ulate more a&out the seat of the (ar, and &e more em+loyed in
+ur)hasin* there, and in the nei*h&ourin* )ountries, the +ay and
+ro'isions of the different armies- .ut (hate'er +art of this
money of the mer)antile re+u&li) 6reat .ritain may ha'e annually
em+loyed in this manner, it must ha'e &een annually +ur)hased,
either (ith .ritish )ommodities, or (ith somethin* else that had
&een +ur)hased (ith them/ (hi)h still &rin*s us &a)0 to
)ommodities, to the annual +rodu)e of the land and la&our of the
)ountry, as the ultimate resour)es (hi)h ena&led us to )arry on
the (ar- It is natural indeed to su++ose that so *reat an annual
e1+ense must ha'e &een defrayed from a *reat annual +rodu)e- The
e1+ense of 1761, for e1am+le, amounted to more than nineteen
millions- No a))umulation )ould ha'e su++orted so *reat an annual
+rofusion- There is no annual +rodu)e e'en of *old and sil'er
(hi)h )ould ha'e su++orted it- The (hole *old and sil'er annually
im+orted into &oth S+ain and ortu*al, a))ordin* to the &est
a))ounts, does not )ommonly mu)h e1)eed si1 millions sterlin*,
(hi)h, in some years, (ould s)ar)e ha'e +aid four month=s e1+ense
of the late (ar-
The )ommodities most +ro+er for &ein* trans+orted to distant
)ountries, in order to +ur)hase there either the +ay and
+ro'isions of an army, or some +art of the money of the
mer)antile re+u&li) to &e em+loyed in +ur)hasin* them, seem to &e
the finer and more im+ro'ed manufa)tures/ su)h as )ontain a *reat
'alue in a small &ul0, and )an, therefore, &e e1+orted to a *reat
distan)e at little e1+ense- A )ountry (hose industry +rodu)es a
*reat annual sur+lus of su)h manufa)tures, (hi)h are usually
e1+orted to forei*n )ountries, may )arry on for many years a 'ery
e1+ensi'e forei*n (ar (ithout either e1+ortin* any )onsidera&le
quantity of *old and sil'er, or e'en ha'in* any su)h quantity to
e1+ort- A )onsidera&le +art of the annual sur+lus of its
manufa)tures must, indeed, in this )ase &e e1+orted (ithout
&rin*in* &a)0 any returns to the )ountry, thou*h it does to the
mer)hant/ the *o'ernment +ur)hasin* of the mer)hant his &ills
u+on forei*n )ountries, in order to +ur)hase there the +ay and
+ro'isions of an army- Some +art of this sur+lus, ho(e'er, may
still )ontinue to &rin* &a)0 a return- The manufa)turers, durin*
the (ar, (ill ha'e a dou&le demand u+on them, and &e )alled u+on,
first, to (or0 u+ *oods to &e sent a&road, for +ayin* the &ills
dra(n u+on forei*n )ountries for the +ay and +ro'isions of the
army/ and, se)ondly, to (or0 u+ su)h as are ne)essary for
+ur)hasin* the )ommon returns that had usually &een )onsumed in
the )ountry- In the midst of the most destru)ti'e forei*n (ar,
therefore, the *reater +art of manufa)tures may frequently
flourish *reatly/ and, on the )ontrary, they may de)line on the
return of the +ea)e- They may flourish amidst the ruin of their
)ountry, and &e*in to de)ay u+on the return of its +ros+erity-
The different state of many different &ran)hes of the .ritish
manufa)tures durin* the late (ar, and for some time after the
+ea)e, may ser'e as an illustration of (hat has &een 2ust no(
said-
No forei*n (ar of *reat e1+ense or duration )ould
)on'eniently &e )arried on &y the e1+ortation of the rude +rodu)e
of the soil- The e1+ense of sendin* su)h a quantity of it to a
forei*n )ountry as mi*ht +ur)hase the +ay and +ro'isions of an
army (ould &e too *reat- "e( )ountries +rodu)e mu)h more rude
+rodu)e than (hat is suffi)ient for the su&sisten)e of their o(n
inha&itants- To send a&road any *reat quantity of it, therefore,
(ould &e to send a&road a +art of the ne)essary su&sisten)e of
the +eo+le- It is other(ise (ith the e1+ortation of manufa)tures-
The maintenan)e of the +eo+le em+loyed in them is 0e+t at home,
and only the sur+lus +art of their (or0 is e1+orted- 4r- #ume
frequently ta0es noti)e of the ina&ility of the an)ient 0in*s of
$n*land to )arry on, (ithout interru+tion, any forei*n (ar of
lon* duration- The $n*lish, in those days, had nothin*
(here(ithal to +ur)hase the +ay and +ro'isions of their armies in
forei*n )ountries, &ut either the rude +rodu)e of the soil, of
(hi)h no )onsidera&le +art )ould &e s+ared from the home
)onsum+tion, or a fe( manufa)tures of the )oarsest 0ind, of
(hi)h, as (ell as of the rude +rodu)e, the trans+ortation (as too
e1+ensi'e- This ina&ility did not arise from the (ant of money,
&ut of the finer and more im+ro'ed manufa)tures- .uyin* and
sellin* (as transa)ted &y means of money in $n*land then as (ell
as no(- The quantity of )ir)ulatin* money must ha'e &orne the
same +ro+ortion to the num&er and 'alue of +ur)hases and sales
usually transa)ted at that time, (hi)h it does to those
transa)ted at +resent/ or rather it must ha'e &orne a *reater
+ro+ortion, &e)ause there (as then no +a+er, (hi)h no( o))u+ies a
*reat +art of the em+loyment of *old and sil'er- Amon* nations to
(hom )ommer)e and manufa)tures are little 0no(n, the so'erei*n,
u+on e1traordinary o))asions, )an seldom dra( any )onsidera&le
aid from his su&2e)ts, for reasons (hi)h shall &e e1+lained
hereafter- It is in su)h )ountries, therefore, that he *enerally
endea'ours to a))umulate a treasure, as the only resour)e a*ainst
su)h emer*en)ies- Inde+endent of this ne)essity, he is in su)h a
situation naturally dis+osed to the +arsimony requisite for
a))umulation- In that sim+le state, the e1+ense e'en of a
so'erei*n is not dire)ted &y the 'anity (hi)h deli*hts in the
*audy finery of a )ourt, &ut is em+loyed in &ounty to his
tenants, and hos+itality to his retainers- .ut &ounty and
hos+itality 'ery seldom lead to e1tra'a*an)e/ thou*h 'anity
almost al(ays does- $'ery Tartar )hief, a))ordin*ly, has a
treasure- The treasures of 4a;e+a, )hief of the Cossa)s in the
U0raine, the famous ally of Charles the III, are said to ha'e
&een 'ery *reat- The "ren)h 0in*s of the 4ero'in*ian ra)e all had
treasures- When they di'ided their 0in*dom amon* their different
)hildren, they di'ided their treasure too- The Sa1on +rin)es, and
the first 0in*s after the Conquest, seem li0e(ise to ha'e
a))umulated treasures- The first e1+loit of e'ery ne( rei*n (as
)ommonly to sei;e the treasure of the +re)edin* 0in*, as the most
essential measure for se)urin* the su))ession- The so'erei*ns of
im+ro'ed and )ommer)ial )ountries are not under the same
ne)essity of a))umulatin* treasures, &e)ause they )an *enerally
dra( from their su&2e)ts e1traordinary aids u+on e1traordinary
o))asions- They are li0e(ise less dis+osed to do so- They
naturally, +erha+s ne)essarily, follo( the mode of the times, and
their e1+ense )omes to &e re*ulated &y the same e1tra'a*ant
'anity (hi)h dire)ts that of all the other *reat +ro+rietors in
their dominions- The insi*nifi)ant +a*eantry of their )ourt
&e)omes e'ery day more &rilliant, and the e1+ense of it not only
+re'ents a))umulation, &ut frequently en)roa)hes u+on the funds
destined for more ne)essary e1+enses- What Der)yllidas said of
the )ourt of ersia may &e a++lied to that of se'eral $uro+ean
+rin)es, that he sa( there mu)h s+lendour &ut little stren*th,
and many ser'ants &ut fe( soldiers-
The im+ortation of *old and sil'er is not the +rin)i+al,
mu)h less the sole &enefit (hi)h a nation deri'es from its
forei*n trade- .et(een (hate'er +la)es forei*n trade is )arried
on, they all of them deri'e t(o distin)t &enefits from it- It
)arries out that sur+lus +art of the +rodu)e of their land and
la&our for (hi)h there is no demand amon* them, and &rin*s &a)0
in return for it somethin* else for (hi)h there is a demand- It
*i'es a 'alue to their su+erfluities, &y e1)han*in* them for
somethin* else, (hi)h may satisfy a +art of their (ants, and
in)rease their en2oyments- .y means of it the narro(ness of the
home mar0et does not hinder the di'ision of la&our in any
+arti)ular &ran)h of art or manufa)ture from &ein* )arried to the
hi*hest +erfe)tion- .y o+enin* a more e1tensi'e mar0et for
(hate'er +art of the +rodu)e of their la&our may e1)eed the home
)onsum+tion, it en)oura*es them to im+ro'e its +rodu)ti'e +o(ers,
and to au*ment its annual +rodu)e to the utmost, and there&y to
in)rease the real re'enue and (ealth of the so)iety- These *reat
and im+ortant ser'i)es forei*n trade is )ontinually o))u+ied in
+erformin* to all the different )ountries &et(een (hi)h it is
)arried on- They all deri'e *reat &enefit from it, thou*h that in
(hi)h the mer)hant resides *enerally deri'es the *reatest, as he
is *enerally more em+loyed in su++lyin* the (ants, and )arryin*
out the su+erfluities of his o(n, than of any other +arti)ular
)ountry- To im+ort the *old and sil'er (hi)h may &e (anted into
the )ountries (hi)h ha'e no mines is, no dou&t, a +art of the
&usiness of forei*n )ommer)e- It is, ho(e'er, a most
insi*nifi)ant +art of it- A )ountry (hi)h )arried on forei*n
trade merely u+on this a))ount )ould s)ar)e ha'e o))asion to
frei*ht a shi+ in a )entury-
It is not &y the im+ortation of *old and sil'er that the
dis)o'ery of Ameri)a has enri)hed $uro+e- .y the a&undan)e of the
Ameri)an mines, those metals ha'e &e)ome )hea+er- A ser'i)e of
+late )an no( &e +ur)hased for a&out a third +art of the )orn, or
a third +art of the la&our, (hi)h it (ould ha'e )ost in the
fifteenth )entury- With the same annual e1+ense of la&our and
)ommodities, $uro+e )an annually +ur)hase a&out three times the
quantity of +late (hi)h it )ould ha'e +ur)hased at that time- .ut
(hen a )ommodity )omes to &e sold for a third +art of (hat had
&een its usual +ri)e, not only those (ho +ur)hased it &efore )an
+ur)hase three times their former quantity, &ut it is &rou*ht
do(n to the le'el of a mu)h *reater num&er of +ur)hasers, +erha+s
to more than ten, +erha+s to more than t(enty times the former
num&er- So that there may &e in $uro+e at +resent not only more
than three times, &ut more than t(enty or thirty times the
quantity of +late (hi)h (ould ha'e &een in it, e'en in its
+resent state of im+ro'ement, had the dis)o'ery of the Ameri)an
mines ne'er &een made- So far $uro+e has, no dou&t, *ained a real
)on'enien)y, thou*h surely a 'ery triflin* one- The )hea+ness of
*old and sil'er renders those metals rather less fit for the
+ur+oses of money than they (ere &efore- In order to ma0e the
same +ur)hases, (e must load oursel'es (ith a *reater quantity of
them, and )arry a&out a shillin* in our +o)0et (here a *roat
(ould ha'e done &efore- It is diffi)ult to say (hi)h is most
triflin*, this in)on'enien)y or the o++osite )on'enien)y- Neither
the one nor the other )ould ha'e made any 'ery essential )han*e
in the state of $uro+e- The dis)o'ery of Ameri)a, ho(e'er,
)ertainly made a most essential one- .y o+enin* a ne( and
ine1hausti&le mar0et to all the )ommodities of $uro+e, it *a'e
o))asion to ne( di'isions of la&our and im+ro'ements of art,
(hi)h in the narro( )ir)le of the an)ient )ommer)e, )ould ne'er
ha'e ta0en +la)e for (ant of a mar0et to ta0e off the *reater
+art of their +rodu)e- The +rodu)ti'e +o(ers of la&our (ere
im+ro'ed, and its +rodu)e in)reased in all the different
)ountries of $uro+e, and to*ether (ith it the real re'enue and
(ealth of the inha&itants- The )ommodities of $uro+e (ere almost
all ne( to Ameri)a, and many of those of Ameri)a (ere ne( to
$uro+e- A ne( set of e1)han*es, therefore, &e*an to ta0e +la)e
(hi)h had ne'er &een thou*ht of &efore, and (hi)h should
naturally ha'e +ro'ed as ad'anta*eous to the ne(, as it )ertainly
did to the old )ontinent- The sa'a*e in2usti)e of the $uro+eans
rendered an e'ent, (hi)h ou*ht to ha'e &een &enefi)ial to all,
ruinous and destru)ti'e to se'eral of those unfortunate
)ountries-
The dis)o'ery of a +assa*e to the $ast Indies &y the Ca+e of
6ood #o+e, (hi)h ha++ened mu)h a&out the same time, o+ened
+erha+s a still more e1tensi'e ran*e to forei*n )ommer)e than
e'en that of Ameri)a, not(ithstandin* the *reater distan)e- There
(ere &ut t(o nations in Ameri)a in any res+e)t su+erior to
sa'a*es, and these (ere destroyed almost as soon as dis)o'ered-
The rest (ere mere sa'a*es- .ut the em+ires of China, Indostan,
Aa+an, as (ell as se'eral others in the $ast Indies, (ithout
ha'in* ri)her mines of *old or sil'er, (ere in e'ery other
res+e)t mu)h ri)her, &etter )ulti'ated, and more ad'an)ed in all
arts and manufa)tures than either 4e1i)o or eru, e'en thou*h (e
should )redit, (hat +lainly deser'es no )redit, the e1a**erated
a))ounts of the S+anish (riters )on)ernin* the an)ient state of
those em+ires- .ut ri)h and )i'ilised nations )an al(ays e1)han*e
to a mu)h *reater 'alue (ith one another than (ith sa'a*es and
&ar&arians- $uro+e, ho(e'er, has hitherto deri'ed mu)h less
ad'anta*e from its )ommer)e (ith the $ast Indies than from that
(ith Ameri)a- The ortu*uese mono+oli;ed the $ast India trade to
themsel'es for a&out a )entury, and it (as only indire)tly and
throu*h them that the other nations of $uro+e )ould either send
out or re)ei'e any *oods from that )ountry- When the Dut)h, in
the &e*innin* of the last )entury, &e*an to en)roa)h u+on them,
they 'ested their (hole $ast India )ommer)e in an e1)lusi'e
)om+any- The $n*lish, "ren)h, S(edes, and Danes ha'e all follo(ed
their e1am+le, so that no *reat nation in $uro+e has e'er yet had
the &enefit of a free )ommer)e to the $ast Indies- No other
reason need &e assi*ned (hy it has ne'er &een so ad'anta*eous as
the trade to Ameri)a, (hi)h, &et(een almost e'ery nation of
$uro+e and its o(n )olonies, is free to all its su&2e)ts- The
e1)lusi'e +ri'ile*es of those $ast India )om+anies, their *reat
ri)hes, the *reat fa'our and +rote)tion (hi)h these ha'e +ro)ured
them from their res+e)ti'e *o'ernments, ha'e e1)ited mu)h en'y
a*ainst them- This en'y has frequently re+resented their trade as
alto*ether +erni)ious, on a))ount of the *reat quantities of
sil'er (hi)h it e'ery year e1+orts from the )ountries from (hi)h
it is )arried on- The +arties )on)erned ha'e re+lied that their
trade, &y this )ontinual e1+ortation of sil'er, mi*ht indeed tend
to im+o'erish $uro+e in *eneral, &ut not the +arti)ular )ountry
from (hi)h it (as )arried on/ &e)ause, &y the e1+ortation of a
+art of the returns to other $uro+ean )ountries, it annually
&rou*ht home a mu)h *reater quantity of that metal than it
)arried out- .oth the o&2e)tion and the re+ly are founded in the
+o+ular notion (hi)h I ha'e &een 2ust no( e1aminin*- It is
therefore unne)essary to say anythin* further a&out either- .y
the annual e1+ortation of sil'er to the $ast Indies, +late is
+ro&a&ly some(hat dearer in $uro+e than it other(ise mi*ht ha'e
&een/ and )oined sil'er +ro&a&ly +ur)hases a lar*er quantity &oth
of la&our and )ommodities- The former of these t(o effe)ts is a
'ery small loss, the latter a 'ery small ad'anta*e/ &oth too
insi*nifi)ant to deser'e any +art of the +u&li) attention- The
trade to the $ast Indies, &y o+enin* a mar0et to the )ommodities
of $uro+e, or, (hat )omes nearly to the same thin*, to the *old
and sil'er (hi)h is +ur)hased (ith those )ommodities, must
ne)essarily tend to in)rease the annual +rodu)tion of $uro+ean
)ommodities, and )onsequently the real (ealth and re'enue of
$uro+e- That it has hitherto in)reased them so little is +ro&a&ly
o(in* to the restraints (hi)h it e'ery(here la&ours under-
I thou*ht it ne)essary, thou*h at the ha;ard of &ein*
tedious, to e1amine at full len*th this +o+ular notion that
(ealth )onsists in money, or in *old and sil'er- 4oney in )ommon
lan*ua*e, as I ha'e already o&ser'ed, frequently si*nifies
(ealth, and this am&i*uity of e1+ression has rendered this
+o+ular notion so familiar to us that e'en they (ho are )on'in)ed
of its a&surdity are 'ery a+t to for*et their o(n +rin)i+les, and
in the )ourse of their reasonin*s to ta0e it for *ranted as a
)ertain and undenia&le truth- Some of the &est $n*lish (riters
u+on )ommer)e set out (ith o&ser'in* that the (ealth of a )ountry
)onsists, not in its *old and sil'er only, &ut in its lands,
houses, and )onsuma&le *oods of all different 0inds- In the
)ourse of their reasonin*s, ho(e'er, the lands, houses, and
)onsuma&le *oods seem to sli+ out of their memory, and the strain
of their ar*ument frequently su++oses that all (ealth )onsists in
*old and sil'er, and that to multi+ly those metals is the *reat
o&2e)t of national industry and )ommer)e-
The t(o +rin)i+les &ein* esta&lished, ho(e'er, that (ealth
)onsisted in *old and sil'er, and that those metals )ould &e
&rou*ht into a )ountry (hi)h had no mines only &y the &alan)e of
trade, or &y e1+ortin* to a *reater 'alue than it im+orted, it
ne)essarily &e)ame the *reat o&2e)t of +oliti)al e)onomy to
diminish as mu)h as +ossi&le the im+ortation of forei*n *oods for
home )onsum+tion, and to in)rease as mu)h as +ossi&le the
e1+ortation of the +rodu)e of domesti) industry- Its t(o *reat
en*ines for enri)hin* the )ountry, therefore, (ere restraints
u+on im+ortation, and en)oura*ements to e1+ortation-
The restraints u+on im+ortation (ere of t(o 0inds-
"irst, restraints u+on the im+ortation of su)h forei*n *oods
for home )onsum+tion as )ould &e +rodu)ed at home, from (hate'er
)ountry they (ere im+orted-
Se)ondly, restraints u+on the im+ortation of *oods of almost
all 0inds from those +arti)ular )ountries (ith (hi)h the &alan)e
of trade (as su++osed to &e disad'anta*eous-
Those different restraints )onsisted sometimes in hi*h
duties, and sometimes in a&solute +rohi&itions-
$1+ortation (as en)oura*ed sometimes &y dra(&a)0s, sometimes
&y &ounties, sometimes &y ad'anta*eous treaties of )ommer)e (ith
forei*n states, and sometimes &y the esta&lishment of )olonies in
distant )ountries-
Dra(&a)0s (ere *i'en u+on t(o different o))asions- When the
home manufa)tures (ere su&2e)t to any duty or e1)ise, either the
(hole or a +art of it (as frequently dra(n &a)0 u+on their
e1+ortation/ and (hen forei*n *oods lia&le to a duty (ere
im+orted in order to &e e1+orted a*ain, either the (hole or a
+art of this duty (as sometimes *i'en &a)0 u+on su)h e1+ortation-
.ounties (ere *i'en for the en)oura*ement either of some
&e*innin* manufa)tures, or of su)h sorts of industry of other
0inds as su++osed to deser'e +arti)ular fa'our-
.y ad'anta*eous treaties of )ommer)e, +arti)ular +ri'ile*es
(ere +ro)ured in some forei*n state for the *oods and mer)hants
of the )ountry, &eyond (hat (ere *ranted to those other
)ountries-
.y esta&lished esta&lishment of )olonies in distant
)ountries, not only +arti)ular +ri'ile*es, &ut a mono+oly (as
frequently +ro)ured for the *oods and mer)hants of the )ountry
(hi)h esta&lished them-
The t(o sorts of restraints u+on im+ortation
a&o'e8mentioned, to*ether (ith these four en)oura*ements to
e1+ortation, )onstitute the si1 +rin)i+al means &y (hi)h the
)ommer)ial system +ro+oses to in)rease the quantity of *old and
sil'er in any )ountry &y turnin* the &alan)e of trade in its
fa'our- I shall )onsider ea)h of them in a +arti)ular )ha+ter,
and (ithout ta0in* mu)h further noti)e of their su++osed tenden)y
to &rin* money into the )ountry, I shall e1amine )hiefly (hat are
li0ely to &e the effe)ts of ea)h of them u+on the annual +rodu)e
of its industry- A))ordin* as they tend either to in)rease or
diminish the 'alue of this annual +rodu)e, they must e'idently
tend either to in)rease or diminish the real (ealth and re'enue
of the )ountry-
C#AT$R II
Of Restraints u+on the Im+ortation from "orei*n Countries of su)h
6oods as )an &e +rodu)ed at #ome
.7 restrainin*, either &y hi*h duties or &y a&solute
+rohi&itions, the im+ortation of su)h *oods from forei*n
)ountries as )an &e +rodu)ed at home, the mono+oly of the home
mar0et is more or less se)ured to the domesti) industry em+loyed
in +rodu)in* them- Thus the +rohi&ition of im+ortin* either li'e
)attle or salt +ro'isions from forei*n )ountries se)ures to the
*ra;iers of 6reat .ritain the mono+oly of the home mar0et for
&ut)her=s meat- The hi*h duties u+on the im+ortation of )orn,
(hi)h in times of moderate +lenty amount to a +rohi&ition, *i'e a
li0e ad'anta*e to the *ro(ers of that )ommodity- The +rohi&ition
of the im+ortation of forei*n (oollens is equally fa'oura&le to
the (oollen manufa)turers- The sil0 manufa)ture, thou*h
alto*ether em+loyed u+on forei*n materials, has lately o&tained
the same ad'anta*e- The linen manufa)ture has not yet o&tained
it, &ut is ma0in* *reat strides to(ards it- 4any other sorts of
manufa)turers ha'e, in the same manner, o&tained in 6reat
.ritain, either alto*ether or 'ery nearly, a mono+oly a*ainst
their )ountrymen- The 'ariety of *oods of (hi)h the im+ortation
into 6reat .ritain is +rohi&ited, either a&solutely, or under
)ertain )ir)umstan)es, *reatly e1)eeds (hat )an easily &e
sus+e)ted &y those (ho are not (ell a)quainted (ith the la(s of
the )ustoms-
That this mono+oly of the home mar0et frequently *i'es *reat
en)oura*ement to that +arti)ular s+e)ies of industry (hi)h en2oys
it, and frequently turns to(ards that em+loyment a *reater share
of &oth the la&our and sto)0 of the so)iety than (ould other(ise
ha'e *one to it, )annot &e dou&ted- .ut (hether it tends either
to in)rease the *eneral industry of the so)iety, or to *i'e it
the most ad'anta*eous dire)tion, is not, +erha+s, alto*ether so
e'ident-
The *eneral industry of the so)iety ne'er )an e1)eed (hat
the )a+ital of the so)iety )an em+loy- As the num&er of (or0men
that )an &e 0e+t in em+loyment &y any +arti)ular +erson must &ear
a )ertain +ro+ortion to his )a+ital, so the num&er of those that
)an &e )ontinually em+loyed &y all the mem&ers of a *reat so)iety
must &ear a )ertain +ro+ortion to the (hole )a+ital of that
so)iety, and ne'er )an e1)eed that +ro+ortion- No re*ulation of
)ommer)e )an in)rease the quantity of industry in any so)iety
&eyond (hat its )a+ital )an maintain- It )an only di'ert a +art
of it into a dire)tion into (hi)h it mi*ht not other(ise ha'e
*one/ and it is &y no means )ertain that this artifi)ial
dire)tion is li0ely to &e more ad'anta*eous to the so)iety than
that into (hi)h it (ould ha'e *one of its o(n a))ord-
$'ery indi'idual is )ontinually e1ertin* himself to find out
the most ad'anta*eous em+loyment for (hate'er )a+ital he )an
)ommand- It is his o(n ad'anta*e, indeed, and not that of the
so)iety, (hi)h he has in 'ie(- .ut the study of his o(n ad'anta*e
naturally, or rather ne)essarily, leads him to +refer that
em+loyment (hi)h is most ad'anta*eous to the so)iety-
"irst, e'ery indi'idual endea'ours to em+loy his )a+ital as
near home as he )an, and )onsequently as mu)h as he )an in the
su++ort of domesti) industry/ +ro'ided al(ays that he )an there&y
o&tain the ordinary, or not a *reat deal less than the ordinary
+rofits of sto)0-
Thus, u+on equal or nearly equal +rofits, e'ery (holesale
mer)hant naturally +refers the home trade to the forei*n trade of
)onsum+tion, and the forei*n trade of )onsum+tion to the )arryin*
trade- In the home trade his )a+ital is ne'er so lon* out of his
si*ht as it frequently is in the forei*n trade of )onsum+tion- #e
)an 0no( &etter the )hara)ter and situation of the +ersons (hom
he trusts, and if he should ha++en to &e de)ei'ed, he 0no(s
&etter the la(s of the )ountry from (hi)h he must see0 redress-
In the )arryin* trade, the )a+ital of the mer)hant is, as it
(ere, di'ided &et(een t(o forei*n )ountries, and no +art of it is
e'er ne)essarily &rou*ht home, or +la)ed under his o(n immediate
'ie( and )ommand- The )a+ital (hi)h an Amsterdam mer)hant em+loys
in )arryin* )orn from %oni*s&er* to !is&on, and fruit and (ine
from !is&on to %oni*s&er*, must *enerally &e the one half of it
at %oni*s&er* and the other half at !is&on- No +art of it need
e'er )ome to Amsterdam- The natural residen)e of su)h a mer)hant
should either &e at %oni*s&er* or !is&on, and it )an only &e some
'ery +arti)ular )ir)umstan)es (hi)h )an ma0e him +refer the
residen)e of Amsterdam- The uneasiness, ho(e'er, (hi)h he feels
at &ein* se+arated so far from his )a+ital *enerally determines
him to &rin* +art &oth of the %oni*s&er* *oods (hi)h he destines
for the mar0et of !is&on, and of the !is&on *oods (hi)h he
destines for that of %oni*s&er*, to Amsterdam3 and thou*h this
ne)essarily su&2e)ts him to a dou&le )har*e of loadin* and
unloadin*, as (ell as to the +ayment of some duties and )ustoms,
yet for the sa0e of ha'in* some +art of his )a+ital al(ays under
his o(n 'ie( and )ommand, he (illin*ly su&mits to this
e1traordinary )har*e/ and it is in this manner that e'ery )ountry
(hi)h has any )onsidera&le share of the )arryin* trade &e)omes
al(ays the em+orium, or *eneral mar0et, for the *oods of all the
different )ountries (hose trade it )arries on- The mer)hant, in
order to sa'e a se)ond loadin* and unloadin*, endea'ours al(ays
to sell in the home mar0et as mu)h of the *oods of all those
different )ountries as he )an, and thus, so far as he )an, to
)on'ert his )arryin* trade into a forei*n trade of )onsum+tion- A
mer)hant, in the same manner, (ho is en*a*ed in the forei*n trade
of )onsum+tion, (hen he )olle)ts *oods for forei*n mar0ets, (ill
al(ays &e *lad, u+on equal or nearly equal +rofits, to sell as
*reat a +art of them at home as he )an- #e sa'es himself the ris0
and trou&le of e1+ortation, (hen, so far as he )an, he thus
)on'erts his forei*n trade of )onsum+tion into a home trade- #ome
is in this manner the )entre, if I may say so, round (hi)h the
)a+itals of the inha&itants of e'ery )ountry are )ontinually
)ir)ulatin*, and to(ards (hi)h they are al(ays tendin*, thou*h &y
+arti)ular )auses they may sometimes &e dri'en off and re+elled
from it to(ards more distant em+loyments- .ut a )a+ital em+loyed
in the home trade, it has already &een sho(n, ne)essarily +uts
into motion a *reater quantity of domesti) industry, and *i'es
re'enue and em+loyment to a *reater num&er of the inha&itants of
the )ountry, than an equal )a+ital em+loyed in the forei*n trade
of )onsum+tion3 and one em+loyed in the forei*n trade of
)onsum+tion has the same ad'anta*e o'er an equal )a+ital em+loyed
in the )arryin* trade- U+on equal, or only nearly equal +rofits,
therefore, e'ery indi'idual naturally in)lines to em+loy his
)a+ital in the manner in (hi)h it is li0ely to afford the
*reatest su++ort to domesti) industry, and to *i'e re'enue and
em+loyment to the *reatest num&er of +eo+le of his o(n )ountry-
Se)ondly, e'ery indi'idual (ho em+loys his )a+ital in the
su++ort of domesti) industry, ne)essarily endea'ours so to dire)t
that industry that its +rodu)e may &e of the *reatest +ossi&le
'alue-
The +rodu)e of industry is (hat it adds to the su&2e)t or
materials u+on (hi)h it is em+loyed- In +ro+ortion as the 'alue
of this +rodu)e is *reat or small, so (ill li0e(ise &e the
+rofits of the em+loyer- .ut it is only for the sa0e of +rofit
that any man em+loys a )a+ital in the su++ort of industry/ and he
(ill al(ays, therefore, endea'our to em+loy it in the su++ort of
that industry of (hi)h the +rodu)e is li0ely to &e of the
*reatest 'alue, or to e1)han*e for the *reatest quantity either
of money or of other *oods-
.ut the annual re'enue of e'ery so)iety is al(ays +re)isely
equal to the e1)han*ea&le 'alue of the (hole annual +rodu)e of
its industry, or rather is +re)isely the same thin* (ith that
e1)han*ea&le 'alue- As e'ery indi'idual, therefore, endea'ours as
mu)h as he )an &oth to em+loy his )a+ital in the su++ort of
domesti) industry, and so to dire)t that industry that its
+rodu)e may &e of the *reatest 'alue/ e'ery indi'idual
ne)essarily la&ours to render the annual re'enue of the so)iety
as *reat as he )an- #e *enerally, indeed, neither intends to
+romote the +u&li) interest, nor 0no(s ho( mu)h he is +romotin*
it- .y +referrin* the su++ort of domesti) to that of forei*n
industry, he intends only his o(n se)urity/ and &y dire)tin* that
industry in su)h a manner as its +rodu)e may &e of the *reatest
'alue, he intends only his o(n *ain, and he is in this, as in
many other )ases, led &y an in'isi&le hand to +romote an end
(hi)h (as no +art of his intention- Nor is it al(ays the (orse
for the so)iety that it (as no +art of it- .y +ursuin* his o(n
interest he frequently +romotes that of the so)iety more
effe)tually than (hen he really intends to +romote it- I ha'e
ne'er 0no(n mu)h *ood done &y those (ho affe)ted to trade for the
+u&li) *ood- It is an affe)tation, indeed, not 'ery )ommon amon*
mer)hants, and 'ery fe( (ords need &e em+loyed in dissuadin* them
from it-
What is the s+e)ies of domesti) industry (hi)h his )a+ital
)an em+loy, and of (hi)h the +rodu)e is li0ely to &e of the
*reatest 'alue, e'ery indi'idual, it is e'ident, )an, in his
lo)al situation, 2ud*e mu)h &etter than any statesman or la(*i'er
)an do for him- The statesman (ho should attem+t to dire)t
+ri'ate +eo+le in (hat manner they ou*ht to em+loy their )a+itals
(ould not only load himself (ith a most unne)essary attention,
&ut assume an authority (hi)h )ould safely &e trusted, not only
to no sin*le +erson, &ut to no )oun)il or senate (hate'er, and
(hi)h (ould no(here &e so dan*erous as in the hands of a man (ho
had folly and +resum+tion enou*h to fan)y himself fit to e1er)ise
it-
To *i'e the mono+oly of the home mar0et to the +rodu)e of
domesti) industry, in any +arti)ular art or manufa)ture, is in
some measure to dire)t +ri'ate +eo+le in (hat manner they ou*ht
to em+loy their )a+itals, and must, in almost all )ases, &e
either a useless or a hurtful re*ulation- If the +rodu)e of
domesti) )an &e &rou*ht there as )hea+ as that of forei*n
industry, the re*ulation is e'idently useless- If it )annot, it
must *enerally &e hurtful- It is the ma1im of e'ery +rudent
master of a family ne'er to attem+t to ma0e at home (hat it (ill
)ost him more to ma0e than to &uy- The tailor does not attem+t to
ma0e his o(n shoes, &ut &uys them of the shoema0er- The shoema0er
does not attem+t to ma0e his o(n )lothes, &ut em+loys a tailor-
The farmer attem+ts to ma0e neither the one nor the other, &ut
em+loys those different artifi)ers- All of them find it for their
interest to em+loy their (hole industry in a (ay in (hi)h they
ha'e some ad'anta*e o'er their nei*h&ours, and to +ur)hase (ith a
+art of its +rodu)e, or (hat is the same thin*, (ith the +ri)e of
a +art of it, (hate'er else they ha'e o))asion for-
What is +ruden)e in the )ondu)t of e'ery +ri'ate family )an
s)ar)e &e folly in that of a *reat 0in*dom- If a forei*n )ountry
)an su++ly us (ith a )ommodity )hea+er than (e oursel'es )an ma0e
it, &etter &uy it of them (ith some +art of the +rodu)e of our
o(n industry em+loyed in a (ay in (hi)h (e ha'e some ad'anta*e-
The *eneral industry of the )ountry, &ein* al(ays in +ro+ortion
to the )a+ital (hi)h em+loys it, (ill not there&y &e diminished,
no more than that of the a&o'e8mentioned artifi)ers/ &ut only
left to find out the (ay in (hi)h it )an &e em+loyed (ith the
*reatest ad'anta*e- It is )ertainly not em+loyed to the *reatest
ad'anta*e (hen it is thus dire)ted to(ards an o&2e)t (hi)h it )an
&uy )hea+er than it )an ma0e- The 'alue of its annual +rodu)e is
)ertainly more or less diminished (hen it is thus turned a(ay
from +rodu)in* )ommodities e'idently of more 'alue than the
)ommodity (hi)h it is dire)ted to +rodu)e- A))ordin* to the
su++osition, that )ommodity )ould &e +ur)hased from forei*n
)ountries )hea+er than it )an &e made at home- It )ould,
therefore, ha'e &een +ur)hased (ith a +art only of the
)ommodities, or, (hat is the same thin*, (ith a +art only of the
+ri)e of the )ommodities, (hi)h the industry em+loyed &y an equal
)a+ital (ould ha'e +rodu)ed at home, had it &een left to follo(
its natural )ourse- The industry of the )ountry, therefore, is
thus turned a(ay from a more to a less ad'anta*eous em+loyment,
and the e1)han*ea&le 'alue of its annual +rodu)e, instead of
&ein* in)reased, a))ordin* to the intention of the la(*i'er, must
ne)essarily &e diminished &y e'ery su)h re*ulation-
.y means of su)h re*ulations, indeed, a +arti)ular
manufa)ture may sometimes &e a)quired sooner than it )ould ha'e
&een other(ise, and after a )ertain time may &e made at home as
)hea+ or )hea+er than in the forei*n )ountry- .ut thou*h the
industry of the so)iety may &e thus )arried (ith ad'anta*e into a
+arti)ular )hannel sooner than it )ould ha'e &een other(ise, it
(ill &y no means follo( that the sum total, either of its
industry, or of its re'enue, )an e'er &e au*mented &y any su)h
re*ulation- The industry of the so)iety )an au*ment only in
+ro+ortion as its )a+ital au*ments, and its )a+ital )an au*ment
only in +ro+ortion to (hat )an &e *radually sa'ed out of its
re'enue- .ut the immediate effe)t of e'ery su)h re*ulation is to
diminish its re'enue, and (hat diminishes its re'enue is
)ertainly not 'ery li0ely to au*ment its )a+ital faster than it
(ould ha'e au*mented of its o(n a))ord had &oth )a+ital and
industry &een left to find out their natural em+loyments-
Thou*h for (ant of su)h re*ulations the so)iety should ne'er
a)quire the +ro+osed manufa)ture, it (ould not, u+on that
a))ount, ne)essarily &e the +oorer in any one +eriod of its
duration- In e'ery +eriod of its duration its (hole )a+ital and
industry mi*ht still ha'e &een em+loyed, thou*h u+on different
o&2e)ts, in the manner that (as most ad'anta*eous at the time- In
e'ery +eriod its re'enue mi*ht ha'e &een the *reatest (hi)h its
)a+ital )ould afford, and &oth )a+ital and re'enue mi*ht ha'e
&een au*mented (ith the *reatest +ossi&le ra+idity-
The natural ad'anta*es (hi)h one )ountry has o'er another in
+rodu)in* +arti)ular )ommodities are sometimes so *reat that it
is a)0no(led*ed &y all the (orld to &e in 'ain to stru**le (ith
them- .y means of *lasses, hot&eds, and hot (alls, 'ery *ood
*ra+es )an &e raised in S)otland, and 'ery *ood (ine too )an &e
made of them at a&out thirty times the e1+ense for (hi)h at least
equally *ood )an &e &rou*ht from forei*n )ountries- Would it &e a
reasona&le la( to +rohi&it the im+ortation of all forei*n (ines
merely to en)oura*e the ma0in* of )laret and &ur*undy in
S)otland> .ut if there (ould &e a manifest a&surdity in turnin*
to(ards any em+loyment thirty times more of the )a+ital and
industry of the )ountry than (ould &e ne)essary to +ur)hase from
forei*n )ountries an equal quantity of the )ommodities (anted,
there must &e an a&surdity, thou*h not alto*ether so *larin*, yet
e1a)tly of the same 0ind, in turnin* to(ards any su)h em+loyment
a thirtieth, or e'en a three8hundredth +art more of either-
Whether the ad'anta*es (hi)h one )ountry has o'er another &e
natural or a)quired is in this res+e)t of no )onsequen)e- As lon*
as the one )ountry has those ad'anta*es, and the other (ants
them, it (ill al(ays &e more ad'anta*eous for the latter rather
to &uy of the former than to ma0e- It is an a)quired ad'anta*e
only, (hi)h one artifi)er has o'er his nei*h&our, (ho e1er)ises
another trade/ and yet they &oth find it more ad'anta*eous to &uy
of one another than to ma0e (hat does not &elon* to their
+arti)ular trades-
4er)hants and manufa)turers are the +eo+le (ho deri'e the
*reatest ad'anta*e from this mono+oly of the home mar0et- The
+rohi&ition of the im+ortation of forei*n )attle, and of salt
+ro'isions, to*ether (ith the hi*h duties u+on forei*n )orn,
(hi)h in times of moderate +lenty amount to a +rohi&ition, are
not near so ad'anta*eous to the *ra;iers and farmers of 6reat
.ritain as other re*ulations of the same 0ind are to its
mer)hants and manufa)turers- 4anufa)tures, those of the finer
0ind es+e)ially, are more easily trans+orted from one )ountry to
another than )orn or )attle- It is in the fet)hin* and )arryin*
manufa)tures, a))ordin*ly, that forei*n trade is )hiefly
em+loyed- In manufa)tures, a 'ery small ad'anta*e (ill ena&le
forei*ners to undersell our o(n (or0men, e'en in the home mar0et-
It (ill require a 'ery *reat one to ena&le them to do so in the
rude +rodu)e of the soil- If the free im+ortation of forei*n
manufa)tures (ere +ermitted, se'eral of the home manufa)tures
(ould +ro&a&ly suffer, and some of them, +erha+s, *o to ruin
alto*ether, and a )onsidera&le +art of the sto)0 and industry at
+resent em+loyed in them (ould &e for)ed to find out some other
em+loyment- .ut the freest im+ortation of the rude +rodu)e of the
soil )ould ha'e no su)h effe)t u+on the a*ri)ulture of the
)ountry-
If the im+ortation of forei*n )attle, for e1am+le, (ere made
e'er so free, so fe( )ould &e im+orted that the *ra;in* trade of
6reat .ritain )ould &e little affe)ted &y it- !i'e )attle are,
+erha+s, the only )ommodity of (hi)h the trans+ortation is more
e1+ensi'e &y sea than &y land- .y land they )arry themsel'es to
mar0et- .y sea, not only the )attle, &ut their food and their
(ater too, must &e )arried at no small e1+ense and in)on'enien)y-
The short sea &et(een Ireland and 6reat .ritain, indeed, renders
the im+ortation of Irish )attle more easy- .ut thou*h the free
im+ortation of them, (hi)h (as lately +ermitted only for a
limited time, (ere rendered +er+etual, it )ould ha'e no
)onsidera&le effe)t u+on the interest of the *ra;iers of 6reat
.ritain- Those +arts of 6reat .ritain (hi)h &order u+on the Irish
Sea are all *ra;in* )ountries- Irish )attle )ould ne'er &e
im+orted for their use, &ut must &e dri'en throu*h those 'ery
e1tensi'e )ountries, at no small e1+ense and in)on'enien)y,
&efore they )ould arri'e at their +ro+er mar0et- "at )attle )ould
not &e dri'en so far- !ean )attle, therefore, only )ould &e
im+orted, and su)h im+ortation )ould interfere, not (ith the
interest of the feedin* or fattenin* )ountries, to (hi)h, &y
redu)in* the +ri)e of lean )attle, it (ould rather &e
ad'anta*eous, &ut (ith that of the &reedin* )ountries only- The
small num&er of Irish )attle im+orted sin)e their im+ortation (as
+ermitted, to*ether (ith the *ood +ri)e at (hi)h lean )attle
still )ontinue to sell, seem to demonstrate that e'en the
&reedin* )ountries of 6reat .ritain are ne'er li0ely to &e mu)h
affe)ted &y the free im+ortation of Irish )attle- The )ommon
+eo+le of Ireland, indeed, are said to ha'e sometimes o++osed
(ith 'iolen)e the e1+ortation of their )attle- .ut if the
e1+orters had found any *reat ad'anta*e in )ontinuin* the trade,
they )ould easily, (hen the la( (as on their side, ha'e )onquered
this mo&&ish o++osition-
"eedin* and fattenin* )ountries, &esides, must al(ays &e
hi*hly im+ro'ed, (hereas &reedin* )ountries are *enerally
un)ulti'ated- The hi*h +ri)e of lean )attle, &y au*mentin* the
'alue of un)ulti'ated land, is li0e a &ounty a*ainst im+ro'ement-
To any )ountry (hi)h (as hi*hly im+ro'ed throu*hout, it (ould &e
more ad'anta*eous to im+ort its lean )attle than to &reed them-
The +ro'in)e of #olland, a))ordin*ly, is said to follo( this
ma1im at +resent- The mountains of S)otland, Wales, and
Northum&erland, indeed, are )ountries not )a+a&le of mu)h
im+ro'ement, and seem destined &y nature to &e the &reedin*
)ountries of 6reat .ritain- The freest im+ortation of forei*n
)attle )ould ha'e no other effe)t than to hinder those &reedin*
)ountries from ta0in* ad'anta*e of the in)reasin* +o+ulation and
im+ro'ement of the rest of the 0in*dom, from raisin* their +ri)e
to an e1or&itant hei*ht, and from layin* a real ta1 u+on all the
more im+ro'ed and )ulti'ated +arts of the )ountry-
The freest im+ortation of salt +ro'isions, in the same
manner, )ould ha'e as little effe)t u+on the interest of the
*ra;iers of 6reat .ritain as that of li'e )attle- Salt +ro'isions
are not only a 'ery &ul0y )ommodity, &ut (hen )om+ared (ith fresh
meat, they are a )ommodity &oth of (orse quality, and as they
)ost more la&our and e1+ense, of hi*her +ri)e- They )ould ne'er,
therefore, )ome into )om+etition (ith the fresh meat, thou*h they
mi*ht (ith the salt +ro'isions of the )ountry- They mi*ht &e used
for 'i)tuallin* shi+s for distant 'oya*es and su)h li0e uses, &ut
)ould ne'er ma0e any )onsidera&le +art of the food of the +eo+le-
The small quantity of salt +ro'isions im+orted from Ireland sin)e
their im+ortation (as rendered free is an e1+erimental +roof that
our *ra;iers ha'e nothin* to a++rehend from it- It does not
a++ear that the +ri)e of &ut)her=s meat has e'er &een sensi&ly
affe)ted &y it-
$'en the free im+ortation of forei*n )orn )ould 'ery little
affe)t the interest of the farmers of 6reat .ritain- Corn is a
mu)h more &ul0y )ommodity than &ut)her=s meat- A +ound of (heat
at a +enny is as dear as a +ound of &ut)her=s meat at four+en)e-
The small quantity of forei*n )orn im+orted e'en in times of the
*reatest s)ar)ity may satisfy our farmers that they )an ha'e
nothin* to fear from the freest im+ortation- The a'era*e quantity
im+orted, one year (ith another, amounts only, a))ordin* to the
'ery (ell informed author of the tra)ts u+on the )orn trade, to
t(enty8three thousand se'en hundred and t(enty8ei*ht quarters of
all sorts of *rain, and does not e1)eed the fi'e hundred and
se'enty8first +art of the annual )onsum+tion- .ut as the &ounty
u+on )orn o))asions a *reater e1+ortation in years of +lenty, so
it must of )onsequen)e o))asion a *reater im+ortation in years of
s)ar)ity than in the a)tual state of tilla*e (ould other(ise ta0e
+la)e- .y means of it the +lenty of one year does not )om+ensate
the s)ar)ity of another, and as the a'era*e quantity e1+orted is
ne)essarily au*mented &y it, so must li0e(ise, in the a)tual
state of tilla*e, the a'era*e quantity im+orted- If there (ere no
&ounty, as less )orn (ould &e e1+orted, so it is +ro&a&le that,
one year (ith another, less (ould &e im+orted than at +resent-
The )orn8mer)hants, the fet)hers and )arriers of )orn &et(een
6reat .ritain and forei*n )ountries (ould ha'e mu)h less
em+loyment, and mi*ht suffer )onsidera&ly/ &ut the )ountry
*entlemen and farmers )ould suffer 'ery little- It is in the )orn
mer)hants a))ordin*ly, rather than in the )ountry *entlemen and
farmers, that I ha'e o&ser'ed the *reatest an1iety for the
rene(al and )ontinuation of the &ounty-
Country *entlemen and farmers are, to their *reat honour, of
all +eo+le, the least su&2e)t to the (ret)hed s+irit of mono+oly-
The underta0er of a *reat manufa)tory is sometimes alarmed if
another (or0 of the same 0ind is esta&lished (ithin t(enty miles
of him- The Dut)h underta0er of the (oollen manufa)ture at
A&&e'ille sti+ulated that no (or0 of the same 0ind should &e
esta&lished (ithin thirty lea*ues of that )ity- "armers and
)ountry *entlemen, on the )ontrary, are *enerally dis+osed rather
to +romote than to o&stru)t the )ulti'ation and im+ro'ement of
their nei*h&ours= farms and estates- They ha'e no se)rets su)h as
those of the *reater +art of manufa)turers, &ut are *enerally
rather fond of )ommuni)atin* to their nei*h&ours and of e1tendin*
as far as +ossi&le any ne( +ra)ti)e (hi)h they ha'e found to &e
ad'anta*eous- ius Juestus, says old Cato, sta&ilissimusque,
minimeque in'idiosus/ minimeque male )o*itantes sunt, qui in eo
studio o))u+ati sunt- Country *entlemen and farmers, dis+ersed in
different +arts of the )ountry, )annot so easily )om&ine as
mer)hants and manufa)turers, (ho, &ein* )olle)ted into to(ns, and
a))ustomed to that e1)lusi'e )or+oration s+irit (hi)h +re'ails in
them, naturally endea'our to o&tain a*ainst all their )ountrymen
the same e1)lusi'e +ri'ile*e (hi)h they *enerally +ossess a*ainst
the inha&itants of their res+e)ti'e to(ns- They a))ordin*ly seem
to ha'e &een the ori*inal in'entors of those restraints u+on the
im+ortation of forei*n *oods (hi)h se)ure to them the mono+oly of
the home mar0et- It (as +ro&a&ly in imitation of them, and to +ut
themsel'es u+on a le'el (ith those (ho, they found, (ere dis+osed
to o++ress them, that the )ountry *entlemen and farmers of 6reat
.ritain in so far for*ot the *enerosity (hi)h is natural to their
station as to demand the e1)lusi'e +ri'ile*e of su++lyin* their
)ountrymen (ith )orn and &ut)her=s meat- They did not +erha+s
ta0e time to )onsider ho( mu)h less their interest )ould &e
affe)ted &y the freedom of trade than that of the +eo+le (hose
e1am+le they follo(ed-
To +rohi&it &y a +er+etual la( the im+ortation of forei*n
)orn and )attle is in reality to ena)t that the +o+ulation and
industry of the )ountry shall at no time e1)eed (hat the rude
+rodu)e of its o(n soil )an maintain-
There seem, ho(e'er, to &e t(o )ases in (hi)h it (ill
*enerally &e ad'anta*eous to lay some &urden u+on forei*n for the
en)oura*ement of domesti) industry-
The first is, (hen some +arti)ular sort of industry is
ne)essary for the defen)e of the )ountry- The defen)e of 6reat
.ritain, for e1am+le, de+ends 'ery mu)h u+on the num&er of its
sailors and shi++in*- The A)t of Na'i*ation, therefore, 'ery
+ro+erly endea'ours to *i'e the sailors and shi++in* of 6reat
.ritain the mono+oly of the trade of their o(n )ountry in some
)ases &y a&solute +rohi&itions and in others &y hea'y &urdens
u+on the shi++in* of forei*n )ountries- The follo(in* are the
+rin)i+al dis+ositions of this A)t-
"irst, all shi+s, of (hi)h the o(ners and three8fourths of
the mariners are not .ritish su&2e)ts, are +rohi&ited, u+on +ain
of forfeitin* shi+ and )ar*o, from tradin* to the .ritish
settlements and +lantations, or from &ein* em+loyed in the
)oastin* trade of 6reat .ritain-
Se)ondly, a *reat 'ariety of the most &ul0y arti)les of
im+ortation )an &e &rou*ht into 6reat .ritain only, either in
su)h shi+s as are a&o'e des)ri&ed, or in shi+s of the )ountry
(here those *oods are +ur)hased, and of (hi)h the o(ners,
masters, and three8fourths of the mariners are of that +arti)ular
)ountry/ and (hen im+orted e'en in shi+s of this latter 0ind,
they are su&2e)t to dou&le aliens= duty- If im+orted in shi+s of
any other )ountry, the +enalty is forfeiture of shi+ and *oods-
When this a)t (as made, the Dut)h (ere, (hat they still are, the
*reat )arriers of $uro+e, and &y this re*ulation they (ere
entirely e1)luded from &ein* the )arriers to 6reat .ritain, or
from im+ortin* to us the *oods of any other $uro+ean )ountry-
Thirdly, a *reat 'ariety of the most &ul0y arti)les of
im+ortation are +rohi&ited from &ein* im+orted, e'en in .ritish
shi+s, from any )ountry &ut that in (hi)h they are +rodu)ed,
under +ains of forfeitin* shi+ and )ar*o- This re*ulation, too,
(as +ro&a&ly intended a*ainst the Dut)h- #olland (as then, as
no(, the *reat em+orium for all $uro+ean *oods, and &y this
re*ulation .ritish shi+s (ere hindered from loadin* in #olland
the *oods of any other $uro+ean )ountry-
"ourthly, salt fish of all 0inds, (hale8fins, (hale8&one,
oil, and &lu&&er, not )au*ht &y and )ured on &oard .ritish
'essels, (hen im+orted into 6reat .ritain, are su&2e)ted to
dou&le aliens= duty- The Dut)h, as they are they the +rin)i+al,
(ere then the only fishers in $uro+e that attem+ted to su++ly
forei*n nations (ith fish- .y this re*ulation, a 'ery hea'y
&urden (as laid u+on their su++lyin* 6reat .ritain-
When the A)t of Na'i*ation (as made, thou*h $n*land and
#olland (ere not a)tually at (ar, the most 'iolent animosity
su&sisted &et(een the t(o nations- It had &e*un durin* the
*o'ernment of the !on* arliament, (hi)h first framed this a)t,
and it &ro0e out soon after in the Dut)h (ars durin* that of the
rote)tor and of Charles the Se)ond- It is not im+ossi&le,
therefore, that some of the re*ulations of this famous a)t may
ha'e +ro)eeded from national animosity- They are as (ise,
ho(e'er, as if they had all &een di)tated &y the most deli&erate
(isdom- National animosity at that +arti)ular time aimed at the
'ery same o&2e)t (hi)h the most deli&erate (isdom (ould ha'e
re)ommended, the diminution of the na'al +o(er of #olland, the
only na'al +o(er (hi)h )ould endan*er the se)urity of $n*land-
The A)t of Na'i*ation is not fa'oura&le to forei*n )ommer)e,
or to the *ro(th of that o+ulen)e (hi)h )an arise from it- The
interest of a nation in its )ommer)ial relations to forei*n
nations is, li0e that of a mer)hant (ith re*ard to the different
+eo+le (ith (hom he deals, to &uy as )hea+ and to sell as dear as
+ossi&le- .ut it (ill &e most li0ely to &uy )hea+, (hen &y the
most +erfe)t freedom of trade it en)oura*es all nations to &rin*
to it the *oods (hi)h it has o))asion to +ur)hase/ and, for the
same reason, it (ill &e most li0ely to sell dear, (hen its
mar0ets are thus filled (ith the *reatest num&er of &uyers- The
A)t of Na'i*ation, it is true, lays no &urden u+on forei*n shi+s
that )ome to e1+ort the +rodu)e of .ritish industry- $'en the
an)ient aliens= duty, (hi)h used to &e +aid u+on all *oods
e1+orted as (ell as im+orted, has, &y se'eral su&sequent a)ts,
&een ta0en off from the *reater +art of the arti)les of
e1+ortation- .ut if forei*ners, either &y +rohi&itions or hi*h
duties, are hindered from )omin* to sell, they )annot al(ays
afford to )ome to &uy/ &e)ause )omin* (ithout a )ar*o, they must
lose the frei*ht from their o(n )ountry to 6reat .ritain- .y
diminishin* the num&er of sellers, therefore, (e ne)essarily
diminish that of &uyers, and are thus li0ely not only to &uy
forei*n *oods dearer, &ut to sell our o(n )hea+er, than if there
(as a more +erfe)t freedom of trade- As defen)e, ho(e'er it is of
mu)h more im+ortan)e than o+ulen)e, the A)t of Na'i*ation is,
+erha+s, the (isest of all the )ommer)ial re*ulations of $n*land-
The se)ond )ase, in (hi)h it (ill *enerally &e ad'anta*eous
to lay some &urden u+on forei*n for the en)oura*ement of domesti)
industry is, (hen some ta1 is im+osed at home u+on the +rodu)e of
the latter- In this )ase, it seems reasona&le that an equal ta1
should &e im+osed u+on the li0e +rodu)e of the former- This (ould
not *i'e the mono+oly of the home mar0et to domesti) industry,
nor turn to(ards a +arti)ular em+loyment a *reater share of the
sto)0 and la&our of the )ountry than (hat (ould naturally *o to
it- It (ould only hinder any +art of (hat (ould naturally *o to
it from &ein* turned a(ay &y the ta1 into a less natural
dire)tion, and (ould lea'e the )om+etition &et(een forei*n and
domesti) industry, after the ta1, as nearly as +ossi&le u+on the
same footin* as &efore it- In 6reat .ritain, (hen any su)h ta1 is
laid u+on the +rodu)e of domesti) industry, it is usual at the
same time, in order to sto+ the )lamorous )om+laints of our
mer)hants and manufa)turers that they (ill &e undersold at home,
to lay a mu)h hea'ier duty u+on the im+ortation of all forei*n
*oods of the same 0ind-
This se)ond limitation of the freedom of trade a))ordin* to
some +eo+le should, u+on some o))asions, &e e1tended mu)h farther
than to the +re)ise forei*n )ommodities (hi)h )ould )ome into
)om+etition (ith those (hi)h had &een ta1ed at home- When the
ne)essaries of life ha'e &een ta1ed any )ountry, it &e)omes
+ro+er, they +retend, to ta1 not only the li0e ne)essaries of
life im+orted from other )ountries, &ut all sorts of forei*n
*oods (hi)h )an )ome into )om+etition (ith anythin* that is the
+rodu)e of domesti) industry- Su&sisten)e, they say, &e)omes
ne)essarily dearer in )onsequen)e of su)h ta1es/ and the +ri)e of
la&our must al(ays rise (ith the +ri)e of the la&ourers=
su&sisten)e- $'ery )ommodity, therefore, (hi)h is the +rodu)e of
domesti) industry, thou*h not immediately ta1ed itself, &e)omes
dearer in )onsequen)e of su)h ta1es, &e)ause the la&our (hi)h
+rodu)es it &e)omes so- Su)h ta1es, therefore, are really
equi'alent, they say, to a ta1 u+on e'ery +arti)ular )ommodity
+rodu)ed at home- In order to +ut domesti) u+on the same footin*
(ith forei*n industry, therefore, it &e)omes ne)essary, they
thin0, to lay some duty u+on e'ery forei*n )ommodity equal to
this enhan)ement of the +ri)e of the home )ommodities (ith (hi)h
it )an )ome into )om+etition-
Whether ta1es u+on the ne)essaries of life, su)h as those in
6reat .ritain u+on soa+, salt, leather, )andles, et)-,
ne)essarily raise the +ri)e of la&our, and )onsequently that of
all other )ommodities, I shall )onsider hereafter (hen I )ome to
treat of ta1es- Su++osin*, ho(e'er, in the meantime, that they
ha'e this effe)t, and they ha'e it undou&tedly, this *eneral
enhan)ement of the +ri)e of all )ommodities, in )onsequen)e of
that of la&our, is a )ase (hi)h differs in the t(o follo(in*
res+e)ts from that of a +arti)ular )ommodity of (hi)h the +ri)e
(as enhan)ed &y a +arti)ular ta1 immediately im+osed u+on it-
"irst, it mi*ht al(ays &e 0no(n (ith *reat e1a)tness ho( far
the +ri)e of su)h a )ommodity )ould &e enhan)ed &y su)h a ta13
&ut ho( far the *eneral enhan)ement of the +ri)e of la&our mi*ht
affe)t that of e'ery different )ommodity a&out (hi)h la&our (as
em+loyed )ould ne'er &e 0no(n (ith any tolera&le e1a)tness- It
(ould &e im+ossi&le, therefore, to +ro+ortion (ith any tolera&le
e1a)tness the ta1 u+on e'ery forei*n to this enhan)ement of the
+ri)e of e'ery home )ommodity-
Se)ondly, ta1es u+on the ne)essaries of life ha'e nearly the
same effe)t u+on the )ir)umstan)es of the +eo+le as a +oor soil
and a &ad )limate- ro'isions are there&y rendered dearer in the
same manner as if it required e1traordinary la&our and e1+ense to
raise them- As in the natural s)ar)ity arisin* from soil and
)limate it (ould &e a&surd to dire)t the +eo+le in (hat manner
they ou*ht to em+loy their )a+itals and industry, so is it
li0e(ise in the artifi)ial s)ar)ity arisin* from su)h ta1es- To
&e left to a))ommodate, as (ell as they )ould, their industry to
their situation, and to find out those em+loyments in (hi)h,
not(ithstandin* their unfa'oura&le )ir)umstan)es, they mi*ht ha'e
some ad'anta*e either in the home or in the forei*n mar0et, is
(hat in &oth )ases (ould e'idently &e most for their ad'anta*e-
To lay a ne( ta1 u+on them, &e)ause they are already o'er&urdened
(ith ta1es, and &e)ause they already +ay too dear for the
ne)essaries of life, to ma0e them li0e(ise +ay too dear for the
*reater +art of other )ommodities, is )ertainly a most a&surd (ay
of ma0in* amends-
Su)h ta1es, (hen they ha'e *ro(n u+ to a )ertain hei*ht, are
a )urse equal to the &arrenness of the earth and the in)lemen)y
of the hea'ens/ and yet it is in the ri)hest and most industrious
)ountries that they ha'e &een most *enerally im+osed- No other
)ountries )ould su++ort so *reat a disorder- As the stron*est
&odies only )an li'e and en2oy health under an un(holesome
re*imen, so the nations only that in e'ery sort of industry ha'e
the *reatest natural and a)quired ad'anta*es )an su&sist and
+ros+er under su)h ta1es- #olland is the )ountry in $uro+e in
(hi)h they a&ound most, and (hi)h from +e)uliar )ir)umstan)es
)ontinues to +ros+er, not &y means of them, as has &een most
a&surdly su++osed, &ut in s+ite of them-
As there are t(o )ases in (hi)h it (ill *enerally &e
ad'anta*eous to lay some &urden u+on forei*n for the
en)oura*ement of domesti) industry, so there are t(o others in
(hi)h it may sometimes &e a matter of deli&eration/ in the one,
ho( far it is +ro+er to )ontinue the free im+ortation of )ertain
forei*n *oods/ and in the other, ho( far, or in (hat manner, it
may &e +ro+er to restore that free im+ortation after it has &een
for some time interru+ted-
The )ase in (hi)h it may sometimes &e a matter of
deli&eration ho( far it is +ro+er to )ontinue the free
im+ortation of )ertain forei*n *oods is, (hen some forei*n nation
restrains &y hi*h duties or +rohi&itions the im+ortation of some
of our manufa)tures into their )ountry- Re'en*e in this )ase
naturally di)tates retaliation, and that (e should im+ose the
li0e duties and +rohi&itions u+on the im+ortation of some or all
of their manufa)tures into ours- Nations, a))ordin*ly, seldom
fail to retaliate in this manner- The "ren)h ha'e &een
+arti)ularly for(ard to fa'our their o(n manufa)tures &y
restrainin* the im+ortation of su)h forei*n *oods as )ould )ome
into )om+etition (ith them- In this )onsisted a *reat +art of the
+oli)y of 4r- Col&ert, (ho, not(ithstandin* his *reat a&ilities,
seems in this )ase to ha'e &een im+osed u+on &y the so+histry of
mer)hants and manufa)turers, (ho are al(ays demandin* a mono+oly
a*ainst their )ountrymen- It is at +resent the o+inion of the
most intelli*ent men in "ran)e that his o+erations of this 0ind
ha'e not &een &enefi)ial to his )ountry- That minister, &y the
tariff of 1667, im+osed 'ery hi*h duties u+on a *reat num&er of
forei*n manufa)tures- U+on his refusin* to moderate them in
fa'our of the Dut)h, they in 1671 +rohi&ited the im+ortation of
the (ines, &randies, and manufa)tures of "ran)e- The (ar of 167E
seems to ha'e &een in +art o))asioned &y this )ommer)ial dis+ute-
The +ea)e of Nime*uen +ut an end to it in 167? &y moderatin* some
of those duties in fa'our of the Dut)h, (ho in )onsequen)e too0
off their +rohi&ition- It (as a&out the same time that the "ren)h
and $n*lish &e*an mutually to o++ress ea)h other=s industry &y
the li0e duties and +rohi&itions, of (hi)h the "ren)h, ho(e'er,
seem to ha'e set the first e1am+le- The s+irit of hostility (hi)h
has su&sisted &et(een the t(o nations e'er sin)e has hitherto
hindered them from &ein* moderated on either side- In 16F7 the
$n*lish +rohi&ited the im+ortation of &onela)e, the manufa)ture
of "landers- The *o'ernment of that )ountry, at that time under
the dominion of S+ain, +rohi&ited in return the im+ortation of
$n*lish (oollens- In 17CC, the +rohi&ition of im+ortin* &onela)e
into $n*land (as ta0en off u+on )ondition that the im+ortan)e of
$n*lish (oollens into "landers should &e +ut on the same footin*
as &efore-
There may &e *ood +oli)y in retaliations of this 0ind, (hen
there is a +ro&a&ility that they (ill +ro)ure the re+eal of the
hi*h duties or +rohi&itions )om+lained of- The re)o'ery of a
*reat forei*n mar0et (ill *enerally more than )om+ensate the
transitory in)on'enien)y of +ayin* dearer durin* a short time for
some sorts of *oods- To 2ud*e (hether su)h retaliations are
li0ely to +rodu)e su)h an effe)t does not, +erha+s, &elon* so
mu)h to the s)ien)e of a le*islator, (hose deli&erations ou*ht to
&e *o'erned &y *eneral +rin)i+les (hi)h are al(ays the same, as
to the s0ill of that insidious and )rafty animal, 'ul*arly )alled
a statesman or +oliti)ian, (hose )oun)ils are dire)ted &y the
momentary flu)tuations of affairs- When there is no +ro&a&ility
that any su)h re+eal )an &e +ro)ured, it seems a &ad method of
)om+ensatin* the in2ury done to )ertain )lasses of our +eo+le to
do another in2ury oursel'es, not only to those )lasses, &ut to
almost all the other )lasses of them- When our nei*h&ours
+rohi&it some manufa)ture of ours, (e *enerally +rohi&it, not
only the same, for that alone (ould seldom affe)t them
)onsidera&ly, &ut some other manufa)ture of theirs- This may no
dou&t *i'e en)oura*ement to some +arti)ular )lass of (or0men
amon* oursel'es, and &y e1)ludin* some of their ri'als, may
ena&le them to raise their +ri)e in the home mar0et- Those
(or0men, ho(e'er, (ho suffered &y our nei*h&ours= +rohi&ition
(ill not &e &enefited &y ours- On the )ontrary, they and almost
all the other )lasses of our )iti;ens (ill there&y &e o&li*ed to
+ay dearer than &efore for )ertain *oods- $'ery su)h la(,
therefore, im+oses a real ta1 u+on the (hole )ountry, not in
fa'our of that +arti)ular )lass of (or0men (ho (ere in2ured &y
our nei*h&ours= +rohi&ition, &ut of some other )lass-
The )ase in (hi)h it may sometimes &e a matter of
deli&eration, ho( far, or in (hat manner, it is +ro+er to restore
the free im+ortation of forei*n *oods, after it has &een for some
time interru+ted, is, (hen +arti)ular manufa)tures, &y means of
hi*h duties or +rohi&itions u+on all forei*n *oods (hi)h )an )ome
into )om+etition (ith them, ha'e &een so far e1tended as to
em+loy a *reat multitude of hands- #umanity may in this )ase
require that the freedom of trade should &e restored only &y slo(
*radations, and (ith a *ood deal of reser'e and )ir)ums+e)tion-
Were those hi*h duties and +rohi&itions ta0en a(ay all at on)e,
)hea+er forei*n *oods of the same 0ind mi*ht &e +oured so fast
into the home mar0et as to de+ri'e all at on)e many thousands of
our +eo+le of their ordinary em+loyment and means of su&sisten)e-
The disorder (hi)h this (ould o))asion mi*ht no dou&t &e 'ery
)onsidera&le- It (ould in all +ro&a&ility, ho(e'er, &e mu)h less
than is )ommonly ima*ined, for the t(o follo(in* reasons38
"irst, all those manufa)tures, of (hi)h any +art is )ommonly
e1+orted to other $uro+ean )ountries (ithout a &ounty, )ould &e
'ery little affe)ted &y the freest im+ortation of forei*n *oods-
Su)h manufa)tures must &e sold as )hea+ a&road as any other
forei*n *oods of the same quality and 0ind, and )onsequently must
&e sold )hea+er at home- They (ould still, therefore, 0ee+
+ossession of the home mar0et, and thou*h a )a+ri)ious man of
fashion mi*ht sometimes +refer forei*n (ares, merely &e)ause they
(ere forei*n, to )hea+er and &etter *oods of the same 0ind that
(ere made at home, this folly )ould, from the nature of thin*s,
e1tend to so fe( that it )ould ma0e no sensi&le im+ression u+on
the *eneral em+loyment of the +eo+le- .ut a *reat +art of all the
different &ran)hes of our (oollen manufa)ture, of our tanned
leather, and of our hard(are, are annually e1+orted to other
$uro+ean )ountries (ithout any &ounty, and these are the
manufa)tures (hi)h em+loy the *reatest num&er of hands- The sil0,
+erha+s, is the manufa)ture (hi)h (ould suffer the most &y this
freedom of trade, and after it the linen, thou*h the latter mu)h
less than the former-
Se)ondly, thou*h a *reat num&er of +eo+le should, &y thus
restorin* the freedom of trade, &e thro(n all at on)e out of
their ordinary em+loyment and )ommon method of su&sisten)e, it
(ould &y no means follo( that they (ould there&y &e de+ri'ed
either of em+loyment or su&sisten)e- .y the redu)tion of the army
and na'y at the end of the late (ar, more than a hundred thousand
soldiers and seamen, a num&er equal to (hat is em+loyed in the
*reatest manufa)tures, (ere all at on)e thro(n out of their
ordinary em+loyment/ &ut, thou*h they no dou&t suffered some
in)on'enien)y, they (ere not there&y de+ri'ed of all em+loyment
and su&sisten)e- The *reater +art of the seamen, it is +ro&a&le,
*radually &etoo0 themsel'es to the mer)hant8ser'i)e as they )ould
find o))asion, and in the meantime &oth they and the soldiers
(ere a&sor&ed in the *reat mass of the +eo+le, and em+loyed in a
*reat 'ariety of o))u+ations- Not only no *reat )on'ulsion, &ut
no sensi&le disorder arose from so *reat a )han*e in the
situation of more than a hundred thousand men, all a))ustomed to
the use of arms, and many of them to ra+ine and +lunder- The
num&er of 'a*rants (as s)ar)e any(here sensi&ly in)reased &y it,
e'en the (a*es of la&our (ere not redu)ed &y it in any
o))u+ation, so far as I ha'e &een a&le to learn, e1)e+t in that
of seamen in the mer)hant ser'i)e- .ut if (e )om+are to*ether the
ha&its of a soldier and of any sort of manufa)turer, (e shall
find that those of the latter do not tend so mu)h to disqualify
him from &ein* em+loyed in a ne( trade, as those of the former
from &ein* em+loyed in any- The manufa)turer has al(ays &een
a))ustomed to loo0 for his su&sisten)e from his la&our only3 the
soldier to e1+e)t it from his +ay- A++li)ation and industry ha'e
&een familiar to the one/ idleness and dissi+ation to the other-
.ut it is surely mu)h easier to )han*e the dire)tion of industry
from one sort of la&our to another than to turn idleness and
dissi+ation to any- To the *reater +art of manufa)tures &esides,
it has already &een o&ser'ed, there are other )ollateral
manufa)tures of so similar a nature that a (or0man )an easily
transfer his industry from one of them to another- The *reater
+art of su)h (or0men too are o))asionally em+loyed in )ountry
la&our- The sto)0 (hi)h em+loyed them in a +arti)ular manufa)ture
&efore (ill still remain in the )ountry to em+loy an equal num&er
of +eo+le in some other (ay- The )a+ital of the )ountry remainin*
the same, the demand for la&our (ill li0e(ise &e the same, or
'ery nearly the same, thou*h it may &e e1erted in different
+la)es and for different o))u+ations- Soldiers and seamen,
indeed, (hen dis)har*ed from the 0in*=s ser'i)e, are at li&erty
to e1er)ise any trade, (ithin any to(n or +la)e of 6reat .ritain
or Ireland- !et the same natural li&erty of e1er)isin* (hat
s+e)ies of industry they +lease, &e restored to all his 4a2esty=s
su&2e)ts, in the same manner as to soldiers and seamen/ that is,
&rea0 do(n the e1)lusi'e +ri'ile*es of )or+orations, and re+eal
the Statute of A++renti)eshi+, &oth (hi)h are real en)roa)hments
u+on natural li&erty, and add to these the re+eal of the !a( of
Settlements, so that a +oor (or0man, (hen thro(n out of
em+loyment either in one trade or in one +la)e, may see0 for it
in another trade or in another +la)e (ithout the fear either of a
+rose)ution or of a remo'al, and neither the +u&li) nor the
indi'iduals (ill suffer mu)h more from the o))asional dis&andin*
some +arti)ular )lasses of manufa)turers than from that of
soldiers- Our manufa)turers ha'e no dou&t *reat merit (ith their
)ountry, &ut they )annot ha'e more than those (ho defend it (ith
their &lood, nor deser'e to &e treated (ith more deli)a)y-
To e1+e)t, indeed, that the freedom of trade should e'er &e
entirely restored in 6reat .ritain is as a&surd as to e1+e)t that
an O)eana or Uto+ia should e'er &e esta&lished in it- Not only
the +re2udi)es of the +u&li), &ut (hat is mu)h more
un)onquera&le, the +ri'ate interests of many indi'iduals,
irresisti&ly o++ose it- Were the offi)ers of the army to o++ose
(ith the same ;eal and unanimity any redu)tion in the num&ers of
for)es (ith (hi)h master manufa)turers set themsel'es a*ainst
e'ery la( that is li0ely to in)rease the num&er of their ri'als
in the home mar0et/ (ere the former to animate their soldiers in
the same manner as the latter enflame their (or0men to atta)0
(ith 'iolen)e and outra*e the +ro+osers of any su)h re*ulation,
to attem+t to redu)e the army (ould &e as dan*erous as it has no(
&e)ome to attem+t to diminish in any res+e)t the mono+oly (hi)h
our manufa)turers ha'e o&tained a*ainst us- This mono+oly has so
mu)h in)reased the num&er of some +arti)ular tri&es of them that,
li0e an o'er*ro(n standin* army, they ha'e &e)ome formida&le to
the *o'ernment, and u+on many o))asions intimidate the
le*islature- The 4em&er of arliament (ho su++orts e'ery +ro+osal
for stren*thenin* this mono+oly is sure to a)quire not only the
re+utation of understandin* trade, &ut *reat +o+ularity and
influen)e (ith an order of men (hose num&ers and (ealth render
them of *reat im+ortan)e- If he o++oses them, on the )ontrary,
and still more if he has authority enou*h to &e a&le to th(art
them, neither the most a)0no(led*ed +ro&ity, nor the hi*hest
ran0, nor the *reatest +u&li) ser'i)es )an +rote)t him from the
most infamous a&use and detra)tion, from +ersonal insults, nor
sometimes from real dan*er, arisin* from the insolent outra*e of
furious and disa++ointed mono+olists-
The underta0er of a *reat manufa)ture, (ho, &y the home
mar0ets &ein* suddenly laid o+en to the )om+etition of
forei*ners, should &e o&li*ed to a&andon his trade, (ould no
dou&t suffer 'ery )onsidera&ly- That +art of his )a+ital (hi)h
had usually &een em+loyed in +ur)hasin* materials and in +ayin*
his (or0men mi*ht, (ithout mu)h diffi)ulty, +erha+s, find another
em+loyment- .ut that +art of it (hi)h (as fi1ed in (or0houses,
and in the instruments of trade, )ould s)ar)e &e dis+osed of
(ithout )onsidera&le loss- The equita&le re*ard, therefore, to
his interest requires that )han*es of this 0ind should ne'er &e
introdu)ed suddenly, &ut slo(ly, *radually, and after a 'ery lon*
(arnin*- The le*islature, (ere it +ossi&le that its deli&erations
)ould &e al(ays dire)ted, not &y the )lamorous im+ortunity of
+artial interests, &ut &y an e1tensi'e 'ie( of the *eneral *ood,
ou*ht u+on this 'ery a))ount, +erha+s, to &e +arti)ularly )areful
neither to esta&lish any ne( mono+olies of this 0ind, nor to
e1tend further those (hi)h are already esta&lished- $'ery su)h
re*ulation introdu)es some de*ree of real disorder into the
)onstitution of the state, (hi)h it (ill &e diffi)ult after(ards
to )ure (ithout o))asionin* another disorder-
#o( far it may &e +ro+er to im+ose ta1es u+on the
im+ortation of forei*n *oods, in order not to +re'ent their
im+ortation &ut to raise a re'enue for *o'ernment, I shall
)onsider hereafter (hen I )ome to treat of ta1es- Ta1es im+osed
(ith a 'ie( to +re'ent, or e'en to diminish im+ortation, are
e'idently as destru)ti'e of the re'enue of the )ustoms as of the
freedom of trade-
C#AT$R III
Of the e1traordinary Restraints u+on the Im+ortation of 6oods of
almost all 0inds from those Countries (ith (hi)h the .alan)e is
su++osed to &e disad'anta*eous
ART I
Of the Unreasona&leness of those Restraints e'en u+on the
rin)i+les of the Commer)ial System
TO lay e1traordinary restraints u+on the those +arti)ular
)ountries (ith (hi)h the im+ortation of *oods of almost all 0inds
from &alan)e of trade is su++osed to &e disad'anta*eous, is the
se)ond e1+edient &y (hi)h the )ommer)ial system +ro+oses to
in)rease the quantity of *old and sil'er- Thus in 6reat .ritain,
Silesia la(ns may &e im+orted for home )onsum+tion u+on +ayin*
)ertain duties- .ut "ren)h )am&ri)s and la(ns are +rohi&ited to
&e im+orted, e1)e+t into the +ort of !ondon, there to &e
(arehoused for e1+ortation- #i*her duties are im+osed u+on the
(ines of "ran)e than u+on those of ortu*al, or indeed of any
other )ountry- .y (hat is )alled the im+ost 16FE, a duty of
fi'e8and8t(enty +er )ent of the rate or 'alue (as laid u+on all
"ren)h *oods/ (hile the *oods of other nations (ere, the *reater
+art of them, su&2e)ted to mu)h li*hter duties, seldom e1)eedin*
fi'e +er )ent- The (ine, &randy, salt and 'ine*ar of "ran)e (ere
indeed e1)e+ted/ these )ommodities &ein* su&2e)ted to other hea'y
duties, either &y other la(s, or &y +arti)ular )lauses of the
same la(- In 16F6, a se)ond duty of t(enty8fi'e +er )ent, the
first not ha'in* &een thou*ht a suffi)ient dis)oura*ement, (as
im+osed u+on all "ren)h *oods, e1)e+t &randy/ to*ether (ith a ne(
duty of fi'e8and8t(enty +ounds u+on the ton of "ren)h (ine, and
another of fifteen +ounds u+on the ton of "ren)h 'ine*ar- "ren)h
*oods ha'e ne'er &een omitted in any of those *eneral su&sidies,
or duties of fi'e +er )ent, (hi)h ha'e &een im+osed u+on all, or
the *reater +art of the *oods enumerated in the &oo0 of rates- If
(e )ount the one8third and t(o8third su&sidies as ma0in* a
)om+lete su&sidy &et(een them, there ha'e &een fi'e of these
*eneral su&sidies/ so that &efore the )ommen)ement of the +resent
(ar se'enty8fi'e +er )ent may &e )onsidered as the lo(est duty to
(hi)h the *reater +art of the *oods of the *ro(th, +rodu)e, or
manufa)ture of "ran)e (ere lia&le- .ut u+on the *reater +art of
*oods, those duties are equi'alent to a +rohi&ition- The "ren)h
in their turn ha'e, I &elie'e, treated our *oods and manufa)tures
2ust as hardly/ thou*h I am not so (ell a)quainted (ith the
+arti)ular hardshi+s (hi)h they ha'e im+osed u+on them- Those
mutual restraints ha'e +ut an end to almost all fair )ommer)e
&et(een the t(o nations, and smu**lers are no( the +rin)i+al
im+orters, either of .ritish *oods into "ran)e, or of "ren)h
*oods into 6reat .ritain- The +rin)i+les (hi)h I ha'e &een
e1aminin* in the fore*oin* )ha+ter too0 their ori*in from +ri'ate
interest and the s+irit of mono+oly/ those (hi)h I am *oin* to
e1amine in this, from national +re2udi)e and animosity- They are,
a))ordin*ly, as mi*ht (ell &e e1+e)ted, still more unreasona&le-
They are so, e'en u+on the +rin)i+les of the )ommer)ial system-
"irst, thou*h it (ere )ertain that in the )ase of a free
trade &et(een "ran)e and $n*land, for e1am+le, the &alan)e (ould
&e in fa'our of "ran)e, it (ould &y no means follo( that su)h a
trade (ould &e disad'anta*eous to $n*land, or that the *eneral
&alan)e of its (hole trade (ould there&y &e turned more a*ainst
it- If the (ines of "ran)e are &etter and )hea+er than those of
ortu*al, or its linens than those of 6ermany, it (ould &e more
ad'anta*eous for 6reat .ritain to +ur)hase &oth the (ine and the
forei*n linen (hi)h it had o))asion for of "ran)e than of
ortu*al and 6ermany- Thou*h the 'alue of the annual im+ortations
from "ran)e (ould there&y &e *reatly au*mented, the 'alue of the
(hole annual im+ortations (ould &e diminished, in +ro+ortion as
the "ren)h *oods of the same quality (ere )hea+er than those of
the other t(o )ountries- This (ould &e the )ase, e'en u+on the
su++osition that the (hole "ren)h *oods im+orted (ere to &e
)onsumed in 6reat .ritain-
.ut, se)ondly, a *reat +art of them mi*ht &e re8e1+orted to
other )ountries, (here, &ein* sold (ith +rofit, they mi*ht &rin*
&a)0 a return equal in 'alue, +erha+s, to the +rime )ost of the
(hole "ren)h *oods im+orted- What has frequently &een said of the
$ast India trade mi*ht +ossi&ly &e true of the "ren)h/ that
thou*h the *reater +art of $ast India *oods (ere &ou*ht (ith *old
and sil'er, the re8e1+ortation of a +art of them to other
)ountries &rou*ht &a)0 more *old and sil'er to that (hi)h )arried
on the trade than the +rime )ost of the (hole amounted to- One of
the most im+ortant &ran)hes of the Dut)h trade, at +resent,
)onsists in the )arria*e of "ren)h *oods to other $uro+ean
)ountries- Some +art e'en of the "ren)h (ine dran0 in 6reat
.ritain is )landestinely im+orted from #olland and Meeland- If
there (as either a free trade &et(een "ran)e and $n*land, or if
"ren)h *oods )ould &e im+orted u+on +ayin* only the same duties
as those of other $uro+ean nations, to &e dra(n &a)0 u+on
e1+ortation, $n*land mi*ht ha'e some share of a trade (hi)h is
found so ad'anta*eous to #olland-
Thirdly, and lastly, there is no )ertain )riterion &y (hi)h
(e )an determine on (hi)h side (hat is )alled the &alan)e &et(een
any t(o )ountries lies, or (hi)h of them e1+orts to the *reatest
'alue- National +re2udi)e and animosity, +rom+ted al(ays &y the
+ri'ate interest of +arti)ular traders, are the +rin)i+les (hi)h
*enerally dire)t our 2ud*ment u+on all questions )on)ernin* it-
There are t(o )riterions, ho(e'er, (hi)h ha'e frequently &een
a++ealed to u+on su)h o))asions, the )ustomhouse &oo0s and the
)ourse of e1)han*e- The )ustom8house &oo0s, I thin0, it is no(
*enerally a)0no(led*ed, are a 'ery un)ertain )riterion, on
a))ount of the ina))ura)y of the 'aluation at (hi)h the *reater
+art of *oods are rated in them- The )ourse of e1)han*e is,
+erha+s, almost equally so-
When the e1)han*e &et(een t(o +la)es, su)h as !ondon and
aris, is at +ar, it is said to &e a si*n that the de&ts due from
!ondon to aris are )om+ensated &y those due from aris to
!ondon- On the )ontrary, (hen a +remium is +aid at !ondon for a
&ill u+on aris, it is said to &e a si*n that the de&ts due from
!ondon to aris are not )om+ensated &y those due from aris to
!ondon, &ut that a &alan)e in money must &e sent out from the
latter +la)e/ for the ris0, trou&le, and e1+ense of e1+ortin*
(hi)h, the +remium is &oth demanded and *i'en- .ut the ordinary
state of de&t and )redit &et(een those t(o )ities must
ne)essarily &e re*ulated, it is said, &y the ordinary )ourse of
their dealin*s (ith one another- When neither of them im+orts
from the other to a *reater amount than it e1+orts to that other,
the de&ts and )redits of ea)h may )om+ensate one another- .ut
(hen one of them im+orts from the other to a *reater 'alue than
it e1+orts to that other, the former ne)essarily &e)omes inde&ted
to the latter in a *reater sum than the latter &e)omes inde&ted
to it/ the de&ts and )redits of ea)h do not )om+ensate one
another, and money must &e sent out from that +la)e of (hi)h the
de&ts o'er&alan)e the )redits- The ordinary )ourse of e1)han*e,
therefore, &ein* an indi)ation of the ordinary state of de&t and
)redit &et(een t(o +la)es, must li0e(ise &e an indi)ation of the
ordinary )ourse of their e1+orts and im+orts, as these
ne)essarily re*ulate that state-
.ut thou*h the ordinary )ourse of e1)han*e should &e allo(ed
to &e a suffi)ient indi)ation of the ordinary state of de&t and
)redit &et(een any t(o +la)es, it (ould not from then)e follo(
that the &alan)e of trade (as in fa'our of that +la)e (hi)h had
the ordinary state of de&t and )redit in its fa'our- The ordinary
state of de&t and )redit &et(een any t(o +la)es is not al(ays
entirely re*ulated &y the ordinary )ourse of their dealin*s (ith
one another/ &ut is often influen)ed &y that of the dealin*s of
either (ith many other +la)es- If it is usual, for e1am+le, for
the mer)hants of $n*land to +ay for the *oods (hi)h they &uy of
#am&ur*, Dan;i*, Ri*a, et)-, &y &ills u+on #olland, the ordinary
state of de&t and )redit &et(een $n*land and #olland (ill not &e
re*ulated entirely &y the ordinary )ourse of the dealin*s of
those t(o )ountries (ith one another, &ut (ill &e influen)ed &y
that of the dealin*s of $n*land (ith those other +la)es- $n*land
may &e o&li*ed to send out e'ery year money to #olland, thou*h
its annual e1+orts to that )ountry may e1)eed 'ery mu)h the
annual 'alue of its im+orts from then)e/ and thou*h (hat is
)alled the &alan)e of trade may &e 'ery mu)h in fa'our of
$n*land-
In the (ay, &esides, in (hi)h the +ar of e1)han*e has
hitherto &een )om+uted, the ordinary )ourse of e1)han*e )an
afford no suffi)ient indi)ation that the ordinary state of de&t
and )redit is in fa'our of that )ountry (hi)h seems to ha'e, or
(hi)h is su++osed to ha'e, the ordinary )ourse of e1)han*e in its
fa'our3 or, in other (ords, the real e1)han*e may &e, and, in
fa)t, often is so 'ery different from the )om+uted one, that from
the )ourse of the latter no )ertain )on)lusion )an, u+on many
o))asions, &e dra(n )on)ernin* that of the former-
When for a sum of money +aid in $n*land, )ontainin*,
a))ordin* to the standard of the $n*lish mint, a )ertain num&er
of oun)es of +ure sil'er, you re)ei'e a &ill for a sum of money
to &e +aid in "ran)e, )ontainin*, a))ordin* to the standard of
the "ren)h mint, an equal num&er of oun)es of +ure sil'er,
e1)han*e is said to &e at +ar &et(een $n*land and "ran)e- When
you +ay more, you are su++osed to *i'e a +remium, and e1)han*e is
said to &e a*ainst $n*land and in fa'our of "ran)e- When you +ay
less, you are su++osed to *et a +remium, and e1)han*e is said to
&e a*ainst "ran)e and in fa'our of $n*land-
.ut, first, (e )annot al(ays 2ud*e of the 'alue of the
)urrent money of different )ountries &y the standard of their
res+e)ti'e mints- In some it is more, in others it is less (orn,
)li+t, and other(ise de*enerated from that standard- .ut the
'alue of the )urrent )oin of e'ery )ountry, )om+ared (ith that of
any other )ountry, is in +ro+ortion not to the quantity of +ure
sil'er (hi)h it ou*ht to )ontain, &ut to that (hi)h it a)tually
does )ontain- .efore the reformation of the sil'er )oin in %in*
William=s time, e1)han*e &et(een $n*land and #olland, )om+uted in
the usual manner a))ordin* to the standard of their res+e)ti'e
mints, (as fi'e8and8t(enty +er )ent a*ainst $n*land- .ut the
'alue of the )urrent )oin of $n*land, as (e learn from 4r-
!o(ndes, (as at that time rather more than fi'e8and8t(enty +er
)ent &elo( its standard 'alue- The real e1)han*e, therefore, may
e'en at that time ha'e &een in fa'our of $n*land, not(ithstandin*
the )om+uted e1)han*e (as so mu)h a*ainst it/ a smaller num&er of
oun)es of +ure sil'er a)tually +aid in $n*land may ha'e +ur)hased
a &ill for a *reater num&er of oun)es of +ure sil'er to &e +aid
in #olland, and the man (ho (as su++osed to *i'e may in reality
ha'e *ot the +remium- The "ren)h )oin (as, &efore the late
reformation of the $n*lish *old )oin, mu)h less (orn than the
$n*lish, and (as +erha+s t(o or three +er )ent nearer its
standard- If the )om+uted e1)han*e (ith "ran)e, therefore, (as
not more than t(o or three +er )ent a*ainst $n*land, the real
e1)han*e mi*ht ha'e &een in its fa'our- Sin)e the reformation of
the *old )oin, the e1)han*e has &een )onstantly in fa'our of
$n*land, and a*ainst "ran)e-
Se)ondly, in some )ountries, the e1+ense of )oina*e is
defrayed &y the *o'ernment/ in others, it is defrayed &y the
+ri'ate +eo+le (ho )arry their &ullion to the mint, and the
*o'ernment e'en deri'es some re'enue from the )oina*e- In
$n*land, it is defrayed &y the *o'ernment, and if you )arry a
+ound (ei*ht of standard sil'er to the mint, you *et &a)0
si1ty8t(o shillin*s, )ontainin* a +ound (ei*ht of the li0e
standard sil'er- In "ran)e, a duty of ei*ht +er )ent is dedu)ted
for the )oina*e, (hi)h not only defrays the e1+ense of it, &ut
affords a small re'enue to the *o'ernment- In $n*land, as the
)oina*e )osts nothin*/ the )urrent )oin )an ne'er &e mu)h more
'alua&le than the quantity of &ullion (hi)h it a)tually )ontains-
In "ran)e, the (or0manshi+, as you +ay for it, adds to the 'alue
in the same manner as to that of (rou*ht +late- A sum of "ren)h
money, therefore, )ontainin* a )ertain (ei*ht of +ure sil'er, is
more 'alua&le than a sum of $n*lish money )ontainin* an equal
(ei*ht of +ure sil'er, and must require more &ullion, or other
)ommodities, to +ur)hase it- Thou*h the )urrent )oin of the t(o
)ountries, therefore, (ere equally near the standards of their
res+e)ti'e mints, a sum of $n*lish money )ould not (ell +ur)hase
a sum of "ren)h money )ontainin* an equal num&er of oun)es of
+ure sil'er, nor )onsequently a &ill u+on "ran)e for su)h a sum-
If for su)h a &ill no more additional money (as +aid than (hat
(as suffi)ient to )om+ensate the e1+ense of the "ren)h )oina*e,
the real e1)han*e mi*ht &e at +ar &et(een the t(o )ountries,
their de&ts and )redits mi*ht mutually )om+ensate one another,
(hile the )om+uted e1)han*e (as )onsidera&ly in fa'our of "ran)e-
If less than this (as +aid, the real e1)han*e mi*ht &e in fa'our
of $n*land, (hile the )om+uted (as in fa'our of "ran)e-
Thirdly, and lastly, in some +la)es, as at Amsterdam,
#am&ur*, 5eni)e, et)-, forei*n &ills of e1)han*e are +aid in (hat
they )all &an0 money/ (hile in others, as at !ondon, !is&on,
Ant(er+, !e*horn, et)-, they are +aid in the )ommon )urren)y of
the )ountry- What is )alled &an0 money is al(ays of more 'alue
than the same nominal sum of )ommon )urren)y- A thousand *uilders
in the .an0 of Amsterdam, for e1am+le, are of more 'alue than a
thousand *uilders of Amsterdam )urren)y- The differen)e &et(een
them is )alled the a*io of the &an0, (hi)h, at Amsterdam, is
*enerally a&out fi'e +er )ent- Su++osin* the )urrent money of the
t(o )ountries equally near to the standard of their res+e)ti'e
mints, and that the one +ays forei*n &ills in this )ommon
)urren)y, (hile the other +ays them in &an0 money, it is e'ident
that the )om+uted e1)han*e may &e in fa'our of that (hi)h +ays in
&an0 money, thou*h the real e1)han*e should &e in fa'our of that
(hi)h +ays in )urrent money/ for the same reason that the
)om+uted e1)han*e may &e in fa'our of that (hi)h +ays in &etter
money, or in money nearer to its o(n standard, thou*h the real
e1)han*e should &e in fa'our of that (hi)h +ays in (orse- The
)om+uted e1)han*e, &efore the late reformation of the *old )oin,
(as *enerally a*ainst !ondon (ith Amsterdam, #am&ur*, 5eni)e,
and, I &elie'e, (ith all other +la)es (hi)h +ay in (hat is )alled
&an0 money- It (ill &y no means follo(, ho(e'er, that the real
e1)han*e (as a*ainst it- Sin)e the reformation of the *old )oin,
it has &een in fa'our of !ondon e'en (ith those +la)es- The
)om+uted e1)han*e has *enerally &een in fa'our of !ondon (ith
!is&on, Ant(er+, !e*horn, and, if you e1)e+t "ran)e, I &elie'e,
(ith most other +arts of $uro+e that +ay in )ommon )urren)y/ and
it is not im+ro&a&le that the real e1)han*e (as so too-
DI6R$SSION CONC$RNIN6 .AN%S O" D$OSIT, ARTICU!AR!7 CONC$RNIN6
T#AT O" A4ST$RDA4
The )urren)y of a *reat state, su)h as "ran)e or $n*land,
*enerally )onsists almost entirely of its o(n )oin- Should this
)urren)y, therefore, &e at any time (orn, )li+t, or other(ise
de*raded &elo( its standard 'alue, the state &y a reformation of
its )oin )an effe)tually re8esta&lish its )urren)y- .ut the
)urren)y of a small state, su)h as 6enoa or #am&ur*, )an seldom
)onsist alto*ether in its o(n )oin, &ut must &e made u+, in a
*reat measure, of the )oins of all the nei*h&ourin* states (ith
(hi)h its inha&itants ha'e a )ontinual inter)ourse- Su)h a state,
therefore, &y reformin* its )oin, (ill not al(ays &e a&le to
reform its )urren)y- If forei*n &ills of e1)han*e are +aid in
this )urren)y, the un)ertain 'alue of any sum, of (hat is in its
o(n nature so un)ertain, must render the e1)han*e al(ays 'ery
mu)h a*ainst su)h a state, its )urren)y &ein*, in all forei*n
states, ne)essarily 'alued e'en &elo( (hat it is (orth-
In order to remedy the in)on'enien)e to (hi)h this
disad'anta*eous e1)han*e must ha'e su&2e)ted their mer)hants,
su)h small states, (hen they &e*an to attend to the interest of
trade, ha'e frequently ena)ted, that forei*n &ills of e1)han*e of
a )ertain 'alue should &e +aid not in )ommon )urren)y, &ut &y an
order u+on, or &y a transfer in the &oo0s of a )ertain &an0,
esta&lished u+on the )redit, and under the +rote)tion of the
state/ this &an0 &ein* al(ays o&li*ed to +ay, in *ood and true
money, e1a)tly a))ordin* to the standard of the state- The &an0s
of 5eni)e, 6enoa, Amsterdam, #am&ur*, and Nurem&er*, seem to ha'e
&een all ori*inally esta&lished (ith this 'ie(, thou*h some of
them may ha'e after(ards &een made su&ser'ient to other +ur+oses-
The money of su)h &an0s &ein* &etter than the )ommon )urren)y of
the )ountry, ne)essarily &ore an a*io, (hi)h (as *reater or
smaller a))ordin* as the )urren)y (as su++osed to &e more or less
de*raded &elo( the standard of the state- The a*io of the .an0 of
#am&ur*, for e1am+le, (hi)h is said to &e )ommonly a&out fourteen
+er )ent is the su++osed differen)e &et(een the *ood standard
money of the state, and the )li+t, (orn, and diminished )urren)y
+oured into it from all the nei*h&ourin* states-
.efore 16CF the *reat quantity of )li+t and (orn forei*n
)oin, (hi)h the e1tensi'e trade of Amsterdam &rou*ht from all
+arts of $uro+e, redu)ed the 'alue of its )urren)y a&out nine +er
)ent &elo( that of *ood money fresh from the mint- Su)h money no
sooner a++eared than it (as melted do(n or )arried a(ay, as it
al(ays is in su)h )ir)umstan)es- The mer)hants, (ith +lenty of
)urren)y, )ould not al(ays find a suffi)ient quantity of *ood
money to +ay their &ills of e1)han*e/ and the 'alue of those
&ills, in s+ite of se'eral re*ulations (hi)h (ere made to +re'ent
it, &e)ame in a *reat measure un)ertain-
In order to remedy these in)on'enien)es, a &an0 (as
esta&lished in 16CF under the *uarantee of the )ity- This &an0
re)ei'ed &oth forei*n )oin, and the li*ht and (orn )oin of the
)ountry at its real intrinsi) 'alue in the *ood standard money of
the )ountry, dedu)tin* only so mu)h as (as ne)essary for
defrayin* the e1+ense of )oina*e, and the other ne)essary e1+ense
of mana*ement- "or the 'alue (hi)h remained, after this small
dedu)tion (as made, it *a'e a )redit in its &oo0s- This )redit
(as )alled &an0 money, (hi)h, as it re+resented money e1a)tly
a))ordin* to the standard of the mint, (as al(ays of the same
real 'alue, and intrinsi)ally (orth more than )urrent money- It
(as at the same time ena)ted, that all &ills dra(n u+on or
ne*otiated at Amsterdam of the 'alue of si1 hundred *uilders and
u+(ards should &e +aid in &an0 money, (hi)h at on)e too0 a(ay all
un)ertainty in the 'alue of those &ills- $'ery mer)hant, in
)onsequen)e of this re*ulation, (as o&li*ed to 0ee+ an a))ount
(ith the &an0 in order to +ay his forei*n &ills of e1)han*e,
(hi)h ne)essarily o))asioned a )ertain demand for &an0 money-
.an0 money, o'er and a&o'e its intrinsi) su+eriority to
)urren)y, and the additional 'alue (hi)h this demand ne)essarily
*i'es it, has li0e(ise some other ad'anta*es- It is se)ure from
fire, ro&&ery, and other a))idents/ the )ity of Amsterdam is
&ound for it/ it )an &e +aid a(ay &y a sim+le transfer, (ithout
the trou&le of )ountin*, or the ris0 of trans+ortin* it from one
+la)e to another- In )onsequen)e of those different ad'anta*es,
it seems from the &e*innin* to ha'e &orne a*io, and it is
*enerally &elie'ed that all the money ori*inally de+osited in the
&an0 (as allo(ed to remain there, no&ody )arin* to demand +ayment
of a de&t (hi)h he )ould sell for a +remium in the mar0et- .y
demandin* +ayment of the &an0, the o(ner of a &an0 )redit (ould
lose this +remium- As a shillin* fresh from the mint (ill &uy no
more *oods in the mar0et than one of our )ommon (orn shillin*s,
so the *ood and true money (hi)h mi*ht &e &rou*ht from the
)offers of the &an0 into those of a +ri'ate +erson, &ein* mi1ed
and )onfounded (ith the )ommon )urren)y of the )ountry, (ould &e
of no more 'alue than that )urren)y from (hi)h it )ould no lon*er
&e readily distin*uished- While it remained in the )offers of the
&an0, its su+eriority (as 0no(n and as)ertained- When it had )ome
into those of a +ri'ate +erson, its su+eriority )ould not (ell &e
as)ertained (ithout more trou&le than +erha+s the differen)e (as
(orth- .y &ein* &rou*ht from the )offers of the &an0, &esides, it
lost all the other ad'anta*es of &an0 money/ its se)urity, its
easy and safe transfera&ility, its use in +ayin* forei*n &ills of
e1)han*e- O'er and a&o'e all this, it )ould not &e &rou*ht from
those )offers, as it (ill a++ear &y and &y, (ithout +re'iously
+ayin* for the 0ee+in*-
Those de+osits of )oin, or those de+osits (hi)h the &an0 (as
&ound to restore in )oin, )onstituted the ori*inal )a+ital of the
&an0, or the (hole 'alue of (hat (as re+resented &y (hat is
)alled &an0 money- At +resent they are su++osed to )onstitute &ut
a 'ery small +art of it- In order to fa)ilitate the trade in
&ullion, the &an0 has &een for these many years in the +ra)ti)e
of *i'in* )redit in its &oo0s u+on de+osits of *old and sil'er
&ullion- This )redit is *enerally a&out fi'e +er )ent &elo( the
mint +ri)e of su)h &ullion- The &an0 *rants at the same time (hat
is )alled a re)i+e or re)ei+t, entitlin* the +erson (ho ma0es the
de+osit, or the &earer, to ta0e out the &ullion a*ain at any time
(ithin si1 months, u+on re8transferrin* to the &an0 a quantity of
&an0 money equal to that for (hi)h )redit had &een *i'en in its
&oo0s (hen the de+osit (as made, and u+on +ayin* one8fourth +er
)ent for the 0ee+in*, if the de+osit (as in sil'er/ and one8half
+er )ent if it (as in *old/ &ut at the same time de)larin* that,
in default of su)h +ayment, and u+on the e1+iration of this term,
the de+osit should &elon* to the &an0 at the +ri)e at (hi)h it
had &een re)ei'ed, or for (hi)h )redit had &een *i'en in the
transfer &oo0s- What is thus +aid for the 0ee+in* of the de+osit
may &e )onsidered as a sort of (arehouse rent/ and (hy this
(arehouse rent should &e so mu)h dearer for *old than for sil'er,
se'eral different reasons ha'e &een assi*ned- The fineness of
*old, it has &een said, is more diffi)ult to &e as)ertained than
that of sil'er- "rauds are more easily +ra)tised, and o))asion a
*reater loss in the more +re)ious metal- Sil'er, &esides, &ein*
the standard metal, the state, it has &een said, (ishes to
en)oura*e more the ma0in* of de+osits of sil'er than those of
*old-
De+osits of &ullion are most )ommonly made (hen the +ri)e is
some(hat lo(er than ordinary/ and they are ta0en out a*ain (hen
it ha++ens to rise- In #olland the mar0et +ri)e of &ullion is
*enerally a&o'e the mint +ri)e, for the same reason that it (as
so in $n*land &efore the late reformation of the *old )oin- The
differen)e is said to &e )ommonly from a&out si1 to si1teen
sti'ers u+on the mar0, or ei*ht oun)es of sil'er of ele'en +arts
fine and one +art alloy- The &an0 +ri)e, or the )redit (hi)h the
&an0 *i'es for de+osits of su)h sil'er 9(hen made in forei*n
)oin, of (hi)h the fineness is (ell 0no(n and as)ertained, su)h
as 4e1i)o dollars:, is t(enty8t(o *uilders the mar0/ the mint
+ri)e is a&out t(enty8three *uilders, and the mar0et +ri)e is
from t(enty8three *uilders si1 to t(enty8three *uilders si1teen
sti'ers, or from t(o to three +er )ent a&o'e the mint +ri)e-L The
+ro+ortions &et(een the &an0 +ri)e, the mint +ri)e, and the
mar0et +ri)e of *old &ullion are nearly the same- A +erson )an
*enerally sell his re)ei+t for the differen)e &et(een the mint
+ri)e of &ullion and the mar0et +ri)e- A re)ei+t for &ullion is
almost al(ays (orth somethin*, and it 'ery seldom ha++ens,
therefore, that any&ody suffers his re)ei+t to e1+ire, or allo(s
his &ullion to fall to the &an0 at the +ri)e at (hi)h it had &een
re)ei'ed, either &y not ta0in* it out &efore the end of the si1
months, or &y ne*le)tin* to +ay the one8fourth or one8half +er
)ent in order to o&tain a ne( re)ei+t for another si1 months-
This, ho(e'er, thou*h it ha++ens seldom, is said to ha++en
sometimes, and more frequently (ith re*ard to *old than (ith
re*ard to sil'er, on a))ount of the hi*her (arehouse8rent (hi)h
is +aid for the 0ee+in* of the more +re)ious metal- L The
follo(in* are the +ri)es at (hi)h the .an0 of Amsterdam at
+resent 9Se+tem&er, 177H: re)ei'es &ullion and )oin of different
0ind38
SI!5$R
4e1i)o dollars 6uilders .8EE +er mar0
"ren)h )ro(ns 6uilders .8EE +er mar0
$n*lish sil'er )oin 6uilders .8EE +er mar0
4e1i)o dollars ne( )oin E1 1C
Du)atoons B
Ri1 dollars E ?
.ar sil'er )ontainin* ele'en8t(elfths fine sil'er E1 +er
mar0, and in this +ro+ortion do(n to 1DG fine, on (hi)h H
*uilders are *i'en-
"ine &ars, FB +er mar0-
6O!D
ortu*al )oin .8B1C +er mar0
6uineas .8B1C +er mar0
!ouis d=ors ne( .8B1C +er mar0
Ditto old BCC
Ne( du)ats G 1F ? +er du)at
.ar or in*ot *old is re)ei'ed in +ro+ortion to its fineness
)om+ared (ith the a&o'e forei*n *old )oin- U+on fine &ars the
&an0 *i'es BGC +er mar0- In *eneral, ho(e'er, somethin* more is
*i'en u+on )oin of a 0no(n fineness, than u+on *old and sil'er
&ars, of (hi)h the fineness )annot &e as)ertained &ut &y a
+ro)ess of meltin* and assayin*-
The +erson (ho &y ma0in* a de+osit of &ullion o&tains &oth a
&an0 )redit and re)ei+t, +ays his &ills of e1)han*e as they
&e)ome due (ith his &an0 )redit/ and either sells or 0ee+s his
re)ei+t a))ordin* as he 2ud*es that the +ri)e of &ullion is
li0ely to rise or to fall- The re)ei+t and the &an0 )redit seldom
0ee+ lon* to*ether, and there is no o))asion that they should-
The +erson (ho has a re)ei+t, and (ho (ants to ta0e out &ullion,
finds al(ays +lenty of &an0 )redits, or &an0 money to &uy at the
ordinary +ri)e/ and the +erson (ho has &an0 money, and (ants to
ta0e out &ullion, finds re)ei+ts al(ays in equal a&undan)e-
The o(ners of &an0 )redits, and the holders of re)ei+ts,
)onstitute t(o different sorts of )reditors a*ainst the &an0- The
holder of a re)ei+t )annot dra( out the &ullion for (hi)h it is
*ranted, (ithout reassi*nin* to the &an0 a sum of &an0 money
equal to the +ri)e at (hi)h the &ullion had &een re)ei'ed- If he
has no &an0 money of his o(n, he must +ur)hase it of those (ho
ha'e it- The o(ner of &an0 money )annot dra( out &ullion (ithout
+rodu)in* to the &an0 re)ei+ts for the quantity (hi)h he (ants-
If he has none of his o(n, he must &uy them of those (ho ha'e
them- The holder of a re)ei+t, (hen he +ur)hases &an0 money,
+ur)hases the +o(er of ta0in* out a quantity of &ullion, of (hi)h
the mint +ri)e is fi'e +er )ent a&o'e the &an0 +ri)e- The a*io of
fi'e +er )ent therefore, (hi)h he )ommonly +ays for it, is +aid
not for an ima*inary &ut for a real 'alue- The o(ner of &an0
money, (hen he +ur)hases a re)ei+t, +ur)hases the +o(er of ta0in*
out a quantity of &ullion of (hi)h the mar0et +ri)e is )ommonly
from t(o to three +er )ent a&o'e the mint +ri)e- The +ri)e (hi)h
he +ays for it, therefore, is +aid li0e(ise for a real 'alue- The
+ri)e of the re)ei+t, and the +ri)e of the &an0 money, )om+ound
or ma0e u+ &et(een them the full 'alue or +ri)e of the &ullion-
U+on de+osits of the )oin )urrent in the )ountry, the &an0
*rants re)ei+ts li0e(ise as (ell as &an0 )redits/ &ut those
re)ei+ts are frequently of no 'alue, and (ill &rin* no +ri)e in
the mar0et- U+on du)atoons, for e1am+le, (hi)h in the )urren)y
+ass for three *uilders three sti'ers ea)h, the &an0 *i'es a
)redit of three *uilders only, or fi'e +er )ent &elo( their
)urrent 'alue- It *rants a re)ei+t li0e(ise entitlin* the &earer
to ta0e out the num&er of du)atoons de+osited at any time (ithin
si1 months, u+on +ayin* one8fourth +er )ent for the 0ee+in*- This
re)ei+t (ill frequently &rin* no +ri)e in the mar0et- Three
*uilders &an0 money *enerally sell in the mar0et for three
*uilders three sti'ers, the full 'alue of the du)atoons, if they
(ere ta0en out of the &an0/ and &efore they )an &e ta0en out,
one8fourth +er )ent must &e +aid for the 0ee+in*, (hi)h (ould &e
mere loss to the holder of the re)ei+t- If the a*io of the &an0,
ho(e'er, should at any time fall to three +er )ent su)h re)ei+ts
mi*ht &rin* some +ri)e in the mar0et, and mi*ht sell for one and
three8fourths +er )ent- .ut the a*io of the &an0 &ein* no(
*enerally a&out fi'e +er )ent su)h re)ei+ts are frequently
allo(ed to e1+ire, or as they e1+ress it, to fall to the &an0-
The re)ei+ts (hi)h are *i'en for de+osits of *old du)ats fall to
it yet more frequently, &e)ause a hi*her (arehouse8rent, or
one8half +er )ent must &e +aid for the 0ee+in* of them &efore
they )an &e ta0en out a*ain- The fi'e +er )ent (hi)h the &an0
*ains, (hen de+osits either of )oin or &ullion are allo(ed to
fall to it, may &e )onsidered as the (arehouse8rent for the
+er+etual 0ee+in* of su)h de+osits-
The sum of &an0 money for (hi)h the re)ei+ts are e1+ired
must &e 'ery )onsidera&le- It must )om+rehend the (hole ori*inal
)a+ital of the &an0, (hi)h, it is *enerally su++osed, has &een
allo(ed to remain there from the time it (as first de+osited,
no&ody )arin* either to rene( his re)ei+t or to ta0e out his
de+osit, as, for the reasons already assi*ned, neither the one
nor the other )ould &e done (ithout loss- .ut (hate'er may &e the
amount of this sum, the +ro+ortion (hi)h it &ears to the (hole
mass of &an0 money is su++osed to &e 'ery small- The .an0 of
Amsterdam has for these many years +ast &een the *reat (arehouse
of $uro+e for &ullion, for (hi)h the re)ei+ts are 'ery seldom
allo(ed to e1+ire, or, as they e1+ress it, to fall to the &an0-
far *reater +art of the &an0 money, or of the )redits u+on the
&oo0s of the &an0, is su++osed to ha'e &een )reated, for these
many years +ast, &y su)h de+osits (hi)h the dealers in &ullion
are )ontinually &oth ma0in* and (ithdra(in*-
No demand )an &e made u+on the &an0 &ut &y means of a re)i+e
or re)ei+t- The smaller mass of &an0 money, for (hi)h the
re)ei+ts are e1+ired, is mi1ed and )onfounded (ith the mu)h
*reater mass for (hi)h they are still in for)e/ so that, thou*h
there may &e a )onsidera&le sum of &an0 money for (hi)h there are
no re)ei+ts, there is no s+e)ifi) sum or +ortion of it (hi)h may
not at any time &e demanded &y one- The &an0 )annot &e de&tor to
t(o +ersons for the same thin*/ and the o(ner of &an0 money (ho
has no re)ei+t )annot demand +ayment of the &an0 till he &uys
one- In ordinary and quiet times, he )an find no diffi)ulty in
*ettin* one to &uy at the mar0et +ri)e, (hi)h *enerally
)orres+onds (ith the +ri)e at (hi)h he )an sell the )oin or
&ullion it entities him to ta0e out of the &an0-
It mi*ht &e other(ise durin* a +u&li) )alamity/ an in'asion,
for e1am+le, su)h as that of the "ren)h in 167E- The o(ners of
&an0 money &ein* then all ea*er to dra( it out of the &an0, in
order to ha'e it their o(n 0ee+in*, the demand for re)ei+ts mi*ht
raise their +ri)e to an e1or&itant hei*ht- The holders of them
mi*ht form e1+e)tations, and, instead of t(o or three +er )ent,
demand half the &an0 money for (hi)h )redit had &een *i'en u+on
the de+osits that the re)ei+ts had res+e)ti'ely &een *ranted for-
The enemy, informed of the )onstitution of the &an0, mi*ht e'en
&uy them u+, in order to +re'ent the )arryin* a(ay of the
treasure- In su)h emer*en)ies, the &an0, it is su++osed, (ould
&rea0 throu*h its ordinary rule of ma0in* +ayment only to the
holders of re)ei+ts- The holders of re)ei+ts, (ho had no &an0
money, must ha'e re)ei'ed (ithin t(o or three +er )ent of the
'alue of the de+osit for (hi)h their res+e)ti'e re)ei+ts had &een
*ranted- The &an0, therefore, it is said, (ould in this )ase ma0e
no s)ru+le of +ayin*, either (ith money or &ullion, the full
'alue of (hat the o(ners of &an0 money (ho )ould *et no re)ei+ts
(ere )redited for in its &oo0s/ +ayin* at the same time t(o or
three +er )ent to su)h holders of re)ei+ts as had no &an0 money,
that &ein* the (hole 'alue (hi)h in this state of thin*s )ould
2ustly &e su++osed due to them-
$'en in ordinary and quiet times it is the interest of the
holders of re)ei+ts to de+ress the a*io, in order either to &uy
&an0 money 9and )onsequently the &ullion, (hi)h their re)ei+ts
(ould then ena&le them to ta0e out of the &an0: so mu)h )hea+er,
or to sell their re)ei+ts to those (ho ha'e &an0 money, and (ho
(ant to ta0e out &ullion, so mu)h dearer/ the +ri)e of a re)ei+t
&ein* *enerally equal to the differen)e &et(een the mar0et +ri)e
of &an0 money, and that of the )oin or &ullion for (hi)h the
re)ei+t had &een *ranted- It is the interest of the o(ners of
&an0 money, on the )ontrary, to raise the a*io, in order either
to sell their &an0 money so mu)h dearer, or to &uy a re)ei+t so
mu)h )hea+er- To +re'ent the sto)082o&&in* tri)0s (hi)h those
o++osite interests mi*ht sometimes o))asion, the &an0 has of late
years )ome to the resolution to sell at all times &an0 money for
)urren)y, at fi'e +er )ent a*io, and to &uy it in a*ain at four
+er )ent a*io- In )onsequen)e of this resolution, the a*io )an
ne'er either rise a&o'e fi'e or sin0 &elo( four +er )ent, and the
+ro+ortion &et(een the mar0et +ri)e of &an0 and that of )urrent
money is 0e+t at all times 'ery near to the +ro+ortion &et(een
their intrinsi) 'alues- .efore this resolution (as ta0en, the
mar0et +ri)e of &an0 money used sometimes to rise so hi*h as nine
+er )ent a*io, and sometimes to sin0 so lo( as +ar, a))ordin* as
o++osite interests ha++ened to influen)e the mar0et-
The .an0 of Amsterdam +rofesses to lend out no +art of (hat
is de+osited (ith it, &ut, for e'ery *uilder for (hi)h it *i'es
)redit in its &oo0s, to 0ee+ in its re+ositories the 'alue of a
*uilder either in money or &ullion- That it 0ee+s in its
re+ositories all the money or &ullion for (hi)h there are
re)ei+ts in for)e, for (hi)h it is at all times lia&le to &e
)alled u+on, and (hi)h, in reality, is )ontinually *oin* from it
and returnin* to it a*ain, )annot (ell &e dou&ted- .ut (hether it
does so li0e(ise (ith re*ard to that +art of its )a+ital, for
(hi)h the re)ei+ts are lon* a*o e1+ired, for (hi)h in ordinary
and quiet times it )annot &e )alled u+on, and (hi)h in reality is
'ery li0ely to remain (ith it for e'er, or as lon* as the States
of the United ro'in)es su&sist, may +erha+s a++ear more
un)ertain- At Amsterdam, ho(e'er, no +oint of faith is &etter
esta&lished than that for e'ery *uilder, )ir)ulated as &an0
money, there is a )orres+ondent *uilder in *old or sil'er to &e
found in the treasure of the &an0- The )ity is *uarantee that it
should &e so- The &an0 is under the dire)tion of the four
rei*nin* &ur*omasters (ho are )han*ed e'ery year- $a)h ne( set of
&ur*omasters 'isits the treasure, )om+ares it (ith the &oo0s,
re)ei'es it u+on oath, and deli'ers it o'er, (ith the same a(ful
solemnity, to the set (hi)h su))eeds/ and in that so&er and
reli*ious )ountry oaths are not yet disre*arded- A rotation of
this 0ind seems alone a suffi)ient se)urity a*ainst any +ra)ti)es
(hi)h )annot &e a'o(ed- Amidst all the re'olutions (hi)h fa)tion
has e'er o))asioned in the *o'ernment of Amsterdam, the
+re'ailin* +arty has at no time a))used their +rede)essors of
infidelity in the administration of the &an0- No a))usation )ould
ha'e affe)ted more dee+ly the re+utation and fortune of the
dis*ra)ed +arty, and if su)h an a))usation )ould ha'e &een
su++orted, (e may &e assured that it (ould ha'e &een &rou*ht- In
167E, (hen the "ren)h 0in* (as at Utre)ht, the .an0 of Amsterdam
+aid so readily as left no dou&t of the fidelity (ith (hi)h it
had o&ser'ed its en*a*ements- Some of the +ie)es (hi)h (ere then
&rou*ht from its re+ositories a++eared to ha'e &een s)or)hed (ith
the fire (hi)h ha++ened in the to(n8house soon after the &an0 (as
esta&lished- Those +ie)es, therefore, must ha'e lain there from
that time-
What may &e the amount of the treasure in the &an0 is a
question (hi)h has lon* em+loyed s+e)ulations of the )urious-
Nothin* &ut )on2e)ture )an &e offered )on)ernin* it- It is
*enerally re)0oned that there are a&out t(o thousand +eo+le (ho
0ee+ a))ounts (ith the &an0, and allo(in* them to ha'e, one (ith
another, the 'alue of fifteen hundred +ounds sterlin* lyin* u+on
their res+e)ti'e a))ounts 9a 'ery lar*e allo(an)e:, the (hole
quantity of &an0 money, and )onsequently of treasure in the &an0,
(ill amount to a&out three millions sterlin*, or, at ele'en
*uilders the +ound sterlin*, thirty8three millions of *uilders8 a
*reat sum, and suffi)ient to )arry on a 'ery e1tensi'e
)ir)ulation, &ut 'astly &elo( the e1tra'a*ant ideas (hi)h some
+eo+le ha'e formed of this treasure-
The )ity of Amsterdam deri'es a )onsidera&le re'enue from
the &an0- .esides (hat may &e )alled the (arehouse8rent a&o'e
mentioned, ea)h +erson, u+on first o+enin* an a))ount (ith the
&an0, +ays a fee of ten *uilders/ and for e'ery ne( a))ount three
*uilders three sti'ers/ for e'ery transfer t(o sti'ers/ and if
the transfer is for less than three hundred *uilders, si1
sti'ers, in order to dis)oura*e the multi+li)ity of small
transa)tions- The +erson (ho ne*le)ts to &alan)e his a))ount
t(i)e in the year forfeits t(enty8fi'e *uilders- The +erson (ho
orders a transfer for more than is u+on his a))ount, is o&li*ed
to +ay three +er )ent for the sum o'erdra(n, and his order is set
aside into the &ar*ain- The &an0 is su++osed, too, to ma0e a
)onsidera&le +rofit &y the sale of the forei*n )oin or &ullion
(hi)h sometimes falls to it &y the e1+irin* of re)ei+ts, and
(hi)h is al(ays 0e+t till it )an &e sold (ith ad'anta*e- It ma0es
a +rofit li0e(ise &y sellin* &an0 money at fi'e +er )ent a*io,
and &uyin* it in at four- These different emoluments amount to a
*ood deal more than (hat is ne)essary for +ayin* the salaries of
offi)ers, and defrayin* the e1+ense of mana*ement- What is +aid
for the 0ee+in* of &ullion u+on re)ei+ts is alone su++osed to
amount to a neat annual re'enue of &et(een one hundred and fifty
thousand and t(o hundred thousand *uilders- u&li) utility,
ho(e'er, and not re'enue, (as the ori*inal o&2e)t of this
institution- Its o&2e)t (as to relie'e the mer)hants from the
in)on'enien)e of a disad'anta*eous e1)han*e- The re'enue (hi)h
has arisen from it (as unforeseen, and may &e )onsidered as
a))idental- .ut it is no( time to return from this lon*
di*ression, into (hi)h I ha'e &een insensi&ly led in endea'ourin*
to e1+lain the reasons (hy the e1)han*e &et(een the )ountries
(hi)h +ay in (hat is )alled &an0 money, and those (hi)h +ay in
)ommon )urren)y, should *enerally a++ear to &e in fa'our of the
former and a*ainst the latter- The former +ay in a s+e)ies of
money of (hi)h the intrinsi) 'alue is al(ays the same, and
e1a)tly a*reea&le to the standard of their res+e)ti'e mints/ the
latter is a s+e)ies of money of (hi)h the intrinsi) 'alue is
)ontinually 'aryin*, and is almost al(ays more or less &elo( that
standard-
ART E
Of the Unreasona&leness of those e1traordinary Restraints
u+on other rin)i+les
IN the fore*oin* +art of this )ha+ter I ha'e endea'oured to
sho(, e'en u+on the +rin)i+les of the )ommer)ial system, ho(
unne)essary it is to lay e1traordinary restraints u+on the
im+ortation of *oods from those )ountries (ith (hi)h the &alan)e
of trade is su++osed to &e disad'anta*eous-
Nothin*, ho(e'er, )an &e more a&surd than this (hole
do)trine of the &alan)e of trade, u+on (hi)h, not only these
restraints, &ut almost all the other re*ulations of )ommer)e are
founded- When t(o +la)es trade (ith one another, this do)trine
su++oses that, if the &alan)e &e e'en, neither of them either
loses or *ains/ &ut if it leans in any de*ree to one side, that
one of them loses and the other *ains in +ro+ortion to its
de)lension from the e1a)t equili&rium- .oth su++ositions are
false- A trade (hi)h is for)ed &y means of &ounties and
mono+olies may &e and )ommonly is disad'anta*eous to the )ountry
in (hose fa'our it is meant to &e esta&lished, as I shall
endea'our to sho( hereafter- .ut that trade (hi)h, (ithout for)e
or )onstraint, is naturally and re*ularly )arried on &et(een any
t(o +la)es is al(ays ad'anta*eous, thou*h not al(ays equally so,
to &oth-
.y ad'anta*e or *ain, I understand not the in)rease of the
quantity of *old and sil'er, &ut that of the e1)han*ea&le 'alue
of the annual +rodu)e of the land and la&our of the )ountry, or
the in)rease of the annual re'enue of its inha&itants-
If the &alan)e &e e'en, and if the trade &et(een the t(o
+la)es )onsist alto*ether in the e1)han*e of their nati'e
)ommodities, they (ill, u+on most o))asions, not only &oth *ain,
&ut they (ill *ain equally, or 'ery near equally/ ea)h (ill in
this )ase afford a mar0et for a +art of the sur+lus +rodu)e of
the other/ ea)h (ill re+la)e a )a+ital (hi)h had &een em+loyed in
raisin* and +re+arin* for the mar0et this +art of the sur+lus
+rodu)e of the other, and (hi)h had &een distri&uted amon*, and
*i'en re'enue and maintenan)e to a )ertain num&er of its
inha&itants- Some +art of the inha&itants of ea)h, therefore,
(ill indire)tly deri'e their re'enue and maintenan)e from the
other- As the )ommodities e1)han*ed, too, are su++osed to &e of
equal 'alue, so the t(o )a+itals em+loyed in the trade (ill, u+on
most o))asions, &e equal, or 'ery nearly equal/ and &oth &ein*
em+loyed in raisin* the nati'e )ommodities of the t(o )ountries,
the re'enue and maintenan)e (hi)h their distri&ution (ill afford
to the inha&itants of ea)h (ill &e equal, or 'ery nearly equal-
This re'enue and maintenan)e, thus mutually afforded, (ill &e
*reater or smaller in +ro+ortion to the e1tent of their dealin*s-
If these should annually amount to an hundred thousand +ounds,
for e1am+le, or to a million on ea)h side, ea)h of them (ould
afford an annual re'enue in the one )ase of an hundred thousand
+ounds, in the other of a million, to the inha&itants of the
other-
If their trade should &e of su)h a nature that one of them
e1+orted to the other nothin* &ut nati'e )ommodities, (hile the
returns of that other )onsisted alto*ether in forei*n *oods/ the
&alan)e, in this )ase, (ould still &e su++osed e'en, )ommodities
&ein* +aid for (ith )ommodities- They (ould, in this )ase too,
&oth *ain, &ut they (ould not *ain equally/ and the inha&itants
of the )ountry (hi)h e1+orted nothin* &ut nati'e )ommodities
(ould deri'e the *reatest re'enue from the trade- If $n*land, for
e1am+le, should im+ort from "ran)e nothin* &ut the nati'e
)ommodities of that )ountry, and, not ha'in* su)h )ommodities of
its o(n as (ere in demand there, should annually re+ay them &y
sendin* thither a lar*e quantity of forei*n *oods, to&a))o, (e
shall su++ose, and $ast India *oods/ this trade, thou*h it (ould
*i'e some re'enue to the inha&itants of &oth )ountries, (ould
*i'e more to those of "ran)e than to those of $n*land- The (hole
"ren)h )a+ital annually em+loyed in it (ould annually &e
distri&uted amon* the +eo+le of "ran)e- .ut that +art of the
$n*lish )a+ital only (hi)h (as em+loyed in +rodu)in* the $n*lish
)ommodities (ith (hi)h those forei*n *oods (ere +ur)hased (ould
&e annually distri&uted amon* the +eo+le of $n*land- The *reater
+art of it (ould re+la)e the )a+itals (hi)h had &een em+loyed in
5ir*inia, Indostan, and China, and (hi)h had *i'en re'enue and
maintenan)e to the of those distant )ountries- If the )a+itals
(ere equal, or nearly equal, therefore this em+loyment of the
"ren)h )a+ital (ould au*ment mu)h more the re'enue of the +eo+le
of "ran)e than that of the $n*lish )a+ital (ould the re'enue of
the +eo+le of $n*land- "ran)e (ould in this )ase )arry on a
dire)t forei*n trade of )onsum+tion (ith $n*land/ (hereas $n*land
(ould )arry on a round8a&out trade of the same 0ind (ith "ran)e-
The different effe)ts of a )a+ital em+loyed in the dire)t and of
one em+loyed in the round8a&out forei*n trade of )onsum+tion ha'e
already &een fully e1+lained-
There is not, +ro&a&ly, &et(een any t(o )ountries a trade
(hi)h )onsists alto*ether in the e1)han*e either of nati'e
)ommodities on &oth sides, or of nati'e )ommodities on one side
and of forei*n *oods on the other- Almost all )ountries e1)han*e
(ith one another +artly nati'e and +artly forei*n *oods- That
)ountry, ho(e'er, in (hose )ar*oes there is the *reatest
+ro+ortion of nati'e, and the least of forei*n *oods, (ill al(ays
&e the +rin)i+al *ainer-
If it (as not (ith to&a))o and $ast India *oods, &ut (ith
*old and sil'er, that $n*land +aid for the )ommodities annually
im+orted from "ran)e, the &alan)e, in this )ase, (ould &e
su++osed une'en, )ommodities not &ein* +aid for (ith )ommodities,
&ut (ith *old and sil'er- The trade, ho(e'er, (ould, in this
)ase, as in the fore*oin*, *i'e some re'enue to the inha&itants
of &oth )ountries, &ut more to those of "ran)e than to those of
$n*land- It (ould *i'e some re'enue to those of $n*land- The
)a+ital (hi)h had &een em+loyed in +rodu)in* the $n*lish *oods
that +ur)hased this *old and sil'er, the )a+ital (hi)h had &een
distri&uted amon*, and *i'en re'enue to, )ertain inha&itants of
$n*land, (ould there&y &e re+la)ed and ena&led to )ontinue that
em+loyment- The (hole )a+ital of $n*land (ould no more &e
diminished &y this e1+ortation of *old and sil'er than &y the
e1+ortation of an equal 'alue of any other *oods- On the
)ontrary, it (ould in most )ases &e au*mented- No *oods are sent
a&road &ut those for (hi)h the demand is su++osed to &e *reater
a&road than at home, and of (hi)h the returns )onsequently, it is
e1+e)ted, (ill &e of more 'alue at home than the )ommodities
e1+orted- If the to&a))o (hi)h, in $n*land, is (orth only a
hundred thousand +ounds, (hen sent to "ran)e (ill +ur)hase (ine
(hi)h is, in $n*land, (orth a hundred and ten thousand, this
e1)han*e (ill equally au*ment the )a+ital of $n*land &y ten
thousand +ounds- If a hundred thousand +ounds of $n*lish *old, in
the same manner, +ur)hase "ren)h (ine (hi)h, in $n*land, is (orth
a hundred and ten thousand, this e1)han*e (ill equally au*ment
the )a+ital of $n*land &y ten thousand +ounds- As a mer)hant (ho
has a hundred and ten thousand +ounds (orth of (ine in his )ellar
is a ri)her man than he (ho has only a hundred thousand +ounds
(orth of to&a))o in his (arehouse, so is he li0e(ise a ri)her man
than he (ho has only a hundred thousand +ounds (orth of *old in
his )offers- #e )an +ut into motion a *reater quantity of
industry, and *i'e re'enue, maintenan)e, and em+loyment to a
*reater num&er of +eo+le than either of the other t(o- .ut the
)a+ital of the )ountry is equal to the )a+itals of all its
different inha&itants, and the quantity of industry (hi)h )an &e
annually maintained in it is equal to (hat all those different
)a+itals )an maintain- .oth the )a+ital of the )ountry,
therefore, and the quantity of industry (hi)h )an &e annually
maintained in it, must *enerally &e au*mented &y this e1)han*e-
It (ould, indeed, &e more ad'anta*eous for $n*land that it )ould
+ur)hase the (ines of "ran)e (ith its o(n hard(are and &road)loth
than (ith either the to&a))o of 5ir*inia or the *old and sil'er
of .ra;il and eru- A dire)t forei*n trade of )onsum+tion is
al(ays more ad'anta*eous than a rounda&out one- .ut a round8a&out
forei*n trade of )onsum+tion, (hi)h is )arried on (ith *old and
sil'er, does not seem to &e less ad'anta*eous than any other
equally round8a&out one- Neither is a )ountry (hi)h has no mines
more li0ely to &e e1hausted of *old and sil'er &y this annual
e1+ortation of those metals than one (hi)h does not *ro( to&a))o
&y the li0e annual e1+ortation of that +lant- As a )ountry (hi)h
has (here(ithal to &uy to&a))o (ill ne'er &e lon* in (ant of it,
so neither (ill one &e lon* in (ant of *old and sil'er (hi)h has
(here(ithal to +ur)hase those metals-
It is a losin* trade, it is said, (hi)h a (or0man )arries on
(ith the alehouse/ and the trade (hi)h a manufa)turin* nation
(ould naturally )arry on (ith a (ine )ountry may &e )onsidered as
a trade of the same nature- I ans(er, that the trade (ith the
alehouse is not ne)essarily a losin* trade- In its o(n nature it
is 2ust as ad'anta*eous as any other, thou*h +erha+s some(hat
more lia&le to &e a&used- The em+loyment of a &re(er, and e'en
that of a retailer of fermented liquors, are as ne)essary
di'isions of la&our as any other- It (ill *enerally &e more
ad'anta*eous for a (or0man to &uy of the &re(er the quantity he
has o))asion for than to &re( it himself, and if he is a +oor
(or0man, it (ill *enerally &e more ad'anta*eous for him to &uy it
&y little and little of the retailer than a lar*e quantity of the
&re(er- #e may no dou&t &uy too mu)h of either, as he may of any
other dealers in his nei*h&ourhood, of the &ut)her, if he is a
*lutton, or of the dra+er, if he affe)ts to &e a &eau amon* his
)om+anions- It is ad'anta*eous to the *reat &ody of (or0men,
not(ithstandin*, that all these trades should &e free, thou*h
this freedom may &e a&used in all of them, and is more li0ely to
&e so, +erha+s, in some than in others- Thou*h indi'iduals,
&esides, may sometimes ruin their fortunes &y an e1)essi'e
)onsum+tion of fermented liquors, there seems to &e no ris0 that
a nation should do so- Thou*h in e'ery )ountry there are many
+eo+le (ho s+end u+on su)h liquors more than they )an afford,
there are al(ays many more (ho s+end less- It deser'es to &e
remar0ed too, that, if (e )onsult e1+erien)e, the )hea+ness of
(ine seems to &e a )ause, not of drun0enness, &ut of so&riety-
The inha&itants of the (ine )ountries are in *eneral the so&erest
+eo+le in $uro+e/ (itness the S+ainards, the Italians, and the
inha&itants of the southern +ro'in)es of "ran)e- eo+le are
seldom *uilty of e1)ess in (hat is their daily fare- No&ody
affe)ts the )hara)ter of li&erality and *ood fello(shi+ &y &ein*
+rofuse of a liquor (hi)h is as )hea+ as small &eer- On the
)ontrary, in the )ountries (hi)h, either from e1)essi'e heat or
)old, +rodu)e no *ra+es, and (here (ine )onsequently is dear and
a rarity, drun0enness is a )ommon 'i)e, as amon* the northern
nations, and all those (ho li'e &et(een the tro+i)s, the ne*roes,
for e1am+le, on the )oast of 6uinea- When a "ren)h re*iment )omes
from some of the northern +ro'in)es of "ran)e, (here (ine is
some(hat dear, to &e quartered in the southern, (here it is 'ery
)hea+, the soldiers, I ha'e frequently heard it o&ser'ed are at
first de&au)hed &y the )hea+ness and no'elty of *ood (ine/ &ut
after a fe( months= residen)e, the *reater +art of them &e)ome as
so&er as the rest of the inha&itants- Were the duties u+on
forei*n (ines, and the e1)ises u+on malt, &eer, and ale to &e
ta0en a(ay all at on)e, it mi*ht, in the same manner, o))asion in
6reat .ritain a +retty *eneral and tem+orary drun0enness amon*
the middlin* and inferior ran0s of +eo+le, (hi)h (ould +ro&a&ly
&e soon follo(ed &y a +ermanent and almost uni'ersal so&riety- At
+resent drun0enness is &y no means the 'i)e of +eo+le of fashion,
or of those (ho )an easily afford the most e1+ensi'e liquors- A
*entleman drun0 (ith ale has s)ar)e e'er &een seen amon* us- The
restraints u+on the (ine trade in 6reat .ritain, &esides, do not
so mu)h seem )al)ulated to hinder the +eo+le from *oin*, if I may
say so, to the alehouse, as from *oin* (here they )an &uy the
&est and )hea+est liquor- They fa'our the (ine trade of ortu*al,
and dis)oura*e that of "ran)e- The ortu*ese, it is said, indeed,
are &etter )ustomers for our manufa)tures than the "ren)h, and
should therefore &e en)oura*ed in +referen)e to them- As they
*i'e us their )ustom, it is +retended, (e should *i'e them ours-
The snea0in* arts of underlin* tradesmen are thus ere)ted into
+oliti)al ma1ims for the )ondu)t of a *reat em+ire3 for it is the
most underlin* tradesmen only (ho ma0e it a rule to em+loy
)hiefly their o(n )ustomers- A *reat trader +ur)hases his *oods
al(ays (here they are )hea+est and &est, (ithout re*ard to any
little interest of this 0ind-
.y su)h ma1ims as these, ho(e'er, nations ha'e &een tau*ht
that their interest )onsisted in &e**arin* all their nei*h&ours-
$a)h nation has &een made to loo0 (ith an in'idious eye u+on the
+ros+erity of all the nations (ith (hi)h it trades, and to
)onsider their *ain as its o(n loss- Commer)e, (hi)h ou*ht
naturally to &e, amon* nations, as amon* indi'iduals, a &ond of
union and friendshi+, has &e)ome the most fertile sour)e of
dis)ord and animosity- The )a+ri)ious am&ition of 0in*s and
ministers has not, durin* the +resent and the +re)edin* )entury,
&een more fatal to the re+ose of $uro+e than the im+ertinent
2ealousy of mer)hants and manufa)turers- The 'iolen)e and
in2usti)e of the rulers of man0ind is an an)ient e'il, for (hi)h,
I am afraid, the nature of human affairs )an s)ar)e admit of a
remedy- .ut the mean ra+a)ity, the mono+oli;in* s+irit of
mer)hants and manufa)turers, (ho neither are, nor ou*ht to &e,
the rulers of man0ind, thou*h it )annot +erha+s &e )orre)ted may
'ery easily &e +re'ented from distur&in* the tranquillity of
any&ody &ut themsel'es-
That it (as the s+irit of mono+oly (hi)h ori*inally &oth
in'ented and +ro+a*ated this do)trine )annot &e dou&ted/ and they
(ho first tau*ht it (ere &y no means su)h fools as they (ho
&elie'ed it- In e'ery )ountry it al(ays is and must &e the
interest of the *reat &ody of the +eo+le to &uy (hate'er they
(ant of those (ho sell it )hea+est- The +ro+osition is so 'ery
manifest that it seems ridi)ulous to ta0e any +ains to +ro'e it/
nor )ould it e'er ha'e &een )alled in question had not the
interested so+histry of mer)hants and manufa)turers )onfounded
the )ommon sense of man0ind- Their interest is, in this res+e)t,
dire)tly o++osite to that of the *reat &ody of the +eo+le- As it
is the interest of the freemen of a )or+oration to hinder the
rest of the inha&itants from em+loyin* any (or0men &ut
themsel'es, so it is the interest of the mer)hants and
manufa)turers of e'ery )ountry to se)ure to themsel'es the
mono+oly of the home mar0et- #en)e in 6reat .ritain, and in most
other $uro+ean )ountries, the e1traordinary duties u+on almost
all *oods im+orted &y alien mer)hants- #en)e the hi*h duties and
+rohi&itions u+on all those forei*n manufa)tures (hi)h )an )ome
into )om+etition (ith our o(n- #en)e, too, the e1traordinary
restraints u+on the im+ortation of almost all sorts of *oods from
those )ountries (ith (hi)h the &alan)e of trade is su++osed to &e
disad'anta*eous/ that is, from those a*ainst (hom national
animosity ha++ens to &e most 'iolently inflamed-
The (ealth of a nei*h&ourin* nation, ho(e'er, thou*h
dan*erous in (ar and +oliti)s, is )ertainly ad'anta*eous in
trade- In a state of hostility it may ena&le our enemies to
maintain fleets and armies su+erior to our o(n/ &ut in a state of
+ea)e and )ommer)e it must li0e(ise ena&le them to e1)han*e (ith
us to a *reater 'alue, and to afford a &etter mar0et, either for
the immediate +rodu)e of our o(n industry, or for (hate'er is
+ur)hased (ith that +rodu)e- As a ri)h man is li0ely to &e a
&etter )ustomer to the industrious +eo+le in his nei*h&ourhood
than a +oor, so is li0e(ise a ri)h nation- A ri)h man, indeed,
(ho is himself a manufa)turer, is a 'ery dan*erous nei*h&our to
all those (ho deal in the same (ay- All the rest of the
nei*h&ourhood, ho(e'er, &y far the *reatest num&er, +rofit &y the
*ood mar0et (hi)h his e1+ense affords them- They e'en +rofit &y
his undersellin* the +oorer (or0men (ho deal in the same (ay (ith
him- The manufa)turers of a ri)h nation, in the same manner, may
no dou&t &e 'ery dan*erous ri'als to those of their nei*h&ours-
This 'ery )om+etition, ho(e'er, is ad'anta*eous to the *reat &ody
of the +eo+le, (ho +rofit *reatly &esides &y the *ood mar0et
(hi)h the *reat e1+ense of su)h a nation affords them in e'ery
other (ay- ri'ate +eo+le (ho (ant to ma0e a fortune ne'er thin0
of retirin* to the remote and +oor +ro'in)es of the )ountry, &ut
resort either to the )a+ital, or to some of the *reat )ommer)ial
to(ns- They 0no( that (here little (ealth )ir)ulates there is
little to &e *ot, &ut that (here a *reat deal is in motion, some
share of it may fall to them- The same ma1ims (hi)h (ould in this
manner dire)t the )ommon sense of one, or ten, or t(enty
indi'iduals, should re*ulate the 2ud*ment of one, or ten, or
t(enty millions, and should ma0e a (hole nation re*ard the ri)hes
of its nei*h&ours as a +ro&a&le )ause and o))asion for itself to
a)quire ri)hes- A nation that (ould enri)h itself &y forei*n
trade is )ertainly most li0ely to do so (hen its nei*h&ours are
all ri)h, industrious, and )ommer)ial nations- A *reat nation
surrounded on all sides &y (anderin* sa'a*es and +oor &ar&arians
mi*ht, no dou&t, a)quire ri)hes &y the )ulti'ation of its o(n
lands, and &y its o(n interior )ommer)e, &ut not &y forei*n
trade- It seems to ha'e &een in this manner that the an)ient
$*y+tians and the modern Chinese a)quired their *reat (ealth- The
an)ient $*y+tians, it is said, ne*le)ted forei*n )ommer)e, and
the modern Chinese, it is 0no(n, &old it in the utmost )ontem+t,
and s)ar)e dei*n to afford it the de)ent +rote)tion of the la(s-
The modern ma1ims of forei*n )ommer)e, &y aimin* at the
im+o'erishment of all our nei*h&ours, so far as they are )a+a&le
of +rodu)in* their intended effe)t, tend to render that 'ery
)ommer)e insi*nifi)ant and )ontem+ti&le-
It is in )onsequen)e of these ma1ims that the )ommer)e
&et(een "ran)e and $n*land has in &oth )ountries &een su&2e)ted
to so many dis)oura*ements and restraints- If those t(o
)ountries, ho(e'er, (ere to )onsider their real interest, (ithout
either mer)antile 2ealousy or national animosity, the )ommer)e of
"ran)e mi*ht &e more ad'anta*eous to 6reat .ritain than that of
any other )ountry, and for the same reason that of 6reat .ritain
to "ran)e- "ran)e is the nearest nei*h&our to 6reat .ritain- In
the trade &et(een the southern )oast of $n*land and the northern
and north8(estern )oasts of "ran)e, the returns mi*ht &e
e1+e)ted, in the same manner as in the inland trade, four, fi'e,
or si1 times in the year- The )a+ital, therefore, em+loyed in
this trade )ould in ea)h of the t(o )ountries 0ee+ in motion
four, fi'e, or si1 times the quantity of industry, and afford
em+loyment and su&sisten)e to four, fi'e, or si1 times the num&er
of +eo+le, (hi)h an equal )a+ital )ould do in the *reater +art of
the other &ran)hes of forei*n trade- .et(een the +arts of "ran)e
and 6reat .ritain most remote from one another, the returns mi*ht
&e e1+e)ted, at least, on)e in the year, and e'en this trade
(ould so far &e at least equally ad'anta*eous as the *reater +art
of the other &ran)hes of our forei*n $uro+ean trade- It (ould &e,
at least, three times more ad'anta*eous than the &oasted trade
(ith our North Ameri)an )olonies, in (hi)h the returns (ere
seldom made in less than three years, frequently not in less than
four or fi'e years- "ran)e, &esides, is su++osed to )ontain
t(enty8four millions of inha&itants- Our North Ameri)an )olonies
(ere ne'er su++osed to )ontain more than three millions/ and
"ran)e is a mu)h ri)her )ountry than North Ameri)a/ thou*h, on
a))ount of the more unequal distri&ution of ri)hes, there is mu)h
more +o'erty and &e**ary in the one )ountry than in the other-
"ran)e, therefore, )ould afford a mar0et at least ei*ht times
more e1tensi'e, and, on a))ount of the su+erior frequen)y of the
returns, four8and8t(enty times more ad'anta*eous than that (hi)h
our North Ameri)an )olonies e'er afforded- The trade of 6reat
.ritain (ould &e 2ust as ad'anta*eous to "ran)e, and, in
+ro+ortion to the (ealth, +o+ulation, and +ro1imity of the
res+e)ti'e )ountries, (ould ha'e the same su+eriority o'er that
(hi)h "ran)e )arries on (ith her o(n )olonies- Su)h is the 'ery
*reat differen)e &et(een that trade, (hi)h the (isdom of &oth
nations has thou*ht +ro+er to dis)oura*e, and that (hi)h it has
fa'oured the most-
.ut the 'ery same )ir)umstan)es (hi)h (ould ha'e rendered an
o+en and free )ommer)e &et(een the t(o )ountries so ad'anta*eous
to &oth, ha'e o))asioned the +rin)i+al o&stru)tions to that
)ommer)e- .ein* nei*h&ours, they are ne)essarily enemies, and the
(ealth and +o(er of ea)h &e)omes, u+on that a))ount, more
formida&le to the other/ and (hat (ould in)rease the ad'anta*e of
national friendshi+ ser'es only to inflame the 'iolen)e of
national animosity- They are &oth ri)h and industrious nations/
and the mer)hants and manufa)turers of ea)h dread the )om+etition
of the s0ill and a)ti'ity of those of the other- 4er)antile
2ealousy is e1)ited, and &oth inflames, and is itself inflamed,
&y the 'iolen)e of national animosity/ and the traders of &oth
)ountries ha'e announ)ed, (ith all the +assionate )onfiden)e of
interested falsehood, the )ertain ruin of ea)h, in )onsequen)e of
that unfa'oura&le &alan)e of trade, (hi)h, they +retend, (ould &e
the infalli&le effe)t of an unrestrained )ommer)e (ith the other-
There is no )ommer)ial )ountry in $uro+e of (hi)h the
a++roa)hin* ruin has not frequently &een foretold &y the
+retended do)tors of this system from an unfa'oura&le &alan)e of
trade- After all the an1iety, ho(e'er, (hi)h they ha'e e1)ited
a&out this, after all the 'ain attem+ts of almost all tradin*
nations to turn that &alan)e in their o(n fa'our and a*ainst
their nei*h&ours, it does not a++ear that any one nation in
$uro+e has &een in any res+e)t im+o'erished &y this )ause- $'ery
to(n and )ountry, on the )ontrary, in +ro+ortion as they ha'e
o+ened their +orts to all nations, instead of &ein* ruined &y
this free trade, as the +rin)i+les of the )ommer)ial system (ould
lead us to e1+e)t, ha'e &een enri)hed &y it- Thou*h there are in
$uro+e, indeed, a fe( to(ns (hi)h in some res+e)ts deser'e the
name of free +orts, there is no )ountry (hi)h does so- #olland,
+erha+s, a++roa)hes the nearest to this )hara)ter of any thou*h
still 'ery remote from it/ and #olland, it is a)0no(led*ed, not
only deri'es its (hole (ealth, &ut a *reat +art of its ne)essary
su&sisten)e, from forei*n trade-
There is another &alan)e, indeed, (hi)h has already &een
e1+lained, 'ery different from the &alan)e of trade, and (hi)h,
a))ordin* as it ha++ens to &e either fa'oura&le or unfa'oura&le,
ne)essarily o))asions the +ros+erity or de)ay of e'ery nation-
This is the &alan)e of the annual +rodu)e and )onsum+tion- If the
e1)han*ea&le 'alue of the annual +rodu)e, it has already &een
o&ser'ed, e1)eeds that of the annual )onsum+tion, the )a+ital of
the so)iety must annually in)rease in +ro+ortion to this e1)ess-
The so)iety in this )ase li'es (ithin its re'enue, and (hat is
annually sa'ed out of its re'enue is naturally added to its
)a+ital, and em+loyed so as to in)rease still further the annual
+rodu)e- If the e1)han*ea&le 'alue of the annual +rodu)e, on the
)ontrary, fail short of the annual )onsum+tion, the )a+ital of
the so)iety must annually de)ay in +ro+ortion to this defi)ien)y-
The e1+ense of the so)iety in this )ase e1)eeds its re'enue, and
ne)essarily en)roa)hes u+on its )a+ital- Its )a+ital, therefore,
must ne)essarily de)ay, and to*ether (ith it the e1)han*ea&le
'alue of the annual +rodu)e of its industry-
This &alan)e of +rodu)e and )onsum+tion is entirely
different from (hat is )alled the &alan)e of trade- It mi*ht ta0e
+la)e in a nation (hi)h had no forei*n trade, &ut (hi)h (as
entirely se+arated from all the (orld- It may ta0e +la)e in the
(hole *lo&e of the earth, of (hi)h the (ealth, +o+ulation, and
im+ro'ement may &e either *radually in)reasin* or *radually
de)ayin*-
The &alan)e of +rodu)e and )onsum+tion may &e )onstantly in
fa'our of a nation, thou*h (hat is )alled the &alan)e of trade &e
*enerally a*ainst it- A nation may im+ort to a *reater 'alue than
it e1+orts for half a )entury, +erha+s, to*ether/ the *old and
sil'er (hi)h )omes into it durin* an this time may &e all
immediately sent out of it/ its )ir)ulatin* )oin may *radually
de)ay, different sorts of +a+er money &ein* su&stituted in its
+la)e, and e'en the de&ts, too, (hi)h it )ontra)ts in the
+rin)i+al nations (ith (hom it deals, may &e *radually
in)reasin*/ and yet its real (ealth, the e1)han*ea&le 'alue of
the annual +rodu)e of its lands and la&our, may, durin* the same
+eriod, ha'e &een in)reasin* in a mu)h *reater +ro+ortion- The
state of our North Ameri)an )olonies, and of the trade (hi)h they
)arried on (ith 6reat .ritain, &efore the )ommen)ement of the
+resent distur&an)es, may ser'e as a +roof that this is &y no
means an im+ossi&le su++osition-
C#AT$R I5
Of Dra(&a)0s
4$RC#ANTS and manufa)turers are not )ontented (ith the
mono+oly of the home mar0et, &ut desire li0e(ise the most
e1tensi'e forei*n sale for their *oods- Their )ountry has no
2urisdi)tion in forei*n nations, and therefore )an seldom +ro)ure
them any mono+oly there- They are *enerally o&li*ed, therefore,
to )ontent themsel'es (ith +etitionin* for )ertain en)oura*ements
to e1+ortation-
Of these en)oura*ements (hat are )alled Dra(&a)0s seem to &e
the most reasona&le- To allo( the mer)hant to dra( &a)0 u+on
e1+ortation, either the (hole or a +art of (hate'er e1)ise or
inland duty is im+osed u+on domesti) industry, )an ne'er o))asion
the e1+ortation of a *reater quantity of *oods than (hat (ould
ha'e &een e1+orted had no duty &een im+osed- Su)h en)oura*ements
do not tend to turn to(ards any +arti)ular em+loyment a *reater
share of the )a+ital of the )ountry than (hat (ould *o to that
em+loyment of its o(n a))ord, &ut only to hinder the duty from
dri'in* a(ay any +art of that share to other em+loyments- They
tend not to o'erturn that &alan)e (hi)h naturally esta&lishes
itself amon* all the 'arious em+loyments of the so)iety/ &ut to
hinder it from &ein* o'erturned &y the duty- They tend not to
destroy, &ut to +reser'e (hat it is in most )ases ad'anta*eous to
+reser'e, the natural di'ision and distri&ution of la&our in the
so)iety-
The same thin* may &e said of the dra(&a)0s u+on the
re8e1+ortation of forei*n *oods im+orted, (hi)h in 6reat .ritain
*enerally amount to &y mu)h the lar*est +art of the duty u+on
im+ortation- .y the se)ond of the rules anne1ed to the A)t of
arliament (hi)h im+osed (hat is no( )alled the Old Su&sidy,
e'ery mer)hant, (hether $n*lish or alien, (as allo(ed to dra(
&a)0 half that duty u+on e1+ortation/ the $n*lish mer)hant,
+ro'ided the e1+ortation too0 +la)e (ithin t(el'e months/ the
alien, +ro'ided it too0 +la)e (ithin nine months- Wines,
)urrants, and (rou*ht sil0s (ere the only *oods (hi)h did not
fall (ithin this rule, ha'in* other and more ad'anta*eous
allo(an)es- The duties im+osed &y this A)t of arliament (ere at
that time the only duties u+on the im+ortation of forei*n *oods-
The term (ithin (hi)h this and all other dra(&a)0s )ould &e
)laimed (as after(ards 9&y the 7th 6eor*e I, )- E1, se)t- 1C:
e1tended to three years-
The duties (hi)h ha'e &een im+osed sin)e the Old Su&sidy
are, the *reater +art of them, (holly dra(n &a)0 u+on
e1+ortation- This *eneral rule, ho(e'er, is lia&le to a *reat
num&er of e1)e+tions, and the do)trine of dra(&a)0s has &e)ome a
mu)h less sim+le matter than it (as at their first institution-
U+on the e1+ortation of some forei*n *oods, of (hi)h it (as
e1+e)ted that the im+ortation (ould *reatly e1)eed (hat (as
ne)essary for the home )onsum+tion, the (hole duties are dra(n
&a)0, (ithout retainin* e'en half the Old Su&sidy- .efore the
re'olt of our North Ameri)an )olonies, (e had the mono+oly of the
to&a))o of 4aryland and 5ir*inia- We im+orted a&out ninety8si1
thousand ho*sheads, and the home )onsum+tion (as not su++osed to
e1)eed fourteen thousand- To fa)ilitate the *reat e1+ortation
(hi)h (as ne)essary, in order to rid us of the rest, the (hole
duties (ere dra(n &a)0, +ro'ided the e1+ortation too0 +la)e
(ithin three years-
We still ha'e, thou*h not alto*ether, yet 'ery nearly, the
mono+oly of the su*ars of our West Indian Islands- If su*ars are
e1+orted (ithin a year, therefore, all the duties u+on
im+ortation are dra(n &a)0, and if e1+orted (ithin three years
all the duties, e1)e+t half the Old Su&sidy, (hi)h still
)ontinues to &e retained u+on the e1+ortation of the *reater +art
of *oods- Thou*h the im+ortation of su*ar e1)eeds, a *ood deal,
(hat is ne)essary for the home )onsum+tion, the e1)ess is
in)onsidera&le in )om+arison of (hat it used to &e in to&a))o-
Some *oods, the +arti)ular o&2e)ts of the 2ealousy of our
o(n manufa)turers, are +rohi&ited to &e im+orted for home
)onsum+tion- They may, ho(e'er, u+on +ayin* )ertain duties, &e
im+orted and (arehoused for e1+ortation- .ut u+on su)h
e1+ortation, no +art of these duties are dra(n &a)0- Our
manufa)turers are un(illin*, it seems, that e'en this restri)ted
im+ortation should &e en)oura*ed, and are afraid lest some +art
of these *oods should &e stolen out of the (arehouse, and thus
)ome into )om+etition (ith their o(n- It is under these
re*ulations only that (e )an im+ort (rou*ht sil0s, "ren)h
)am&ri)s and la(ns, )ali)oes +ainted, +rinted, stained or dyed,
et)-
We are un(illin* e'en to &e the )arriers of "ren)h *oods,
and )hoose rather to fore*o a +rofit to oursel'es than to suffer
those, (hom (e )onsider as our enemies, to ma0e any +rofit &y our
means- Not only half the Old Su&sidy, &ut the se)ond t(enty8fi'e
+er )ent, is retained u+on the e1+ortation of all "ren)h *oods-
.y the fourth of the rules anne1ed to the Old Su&sidy, the
dra(&a)0 allo(ed u+on the e1+ortation of all (ines amounted to a
*reat deal more than half the duties (hi)h (ere, at that time,
+aid u+on their im+ortation/ and it seems, at that time, to ha'e
&een the o&2e)t of the le*islature to *i'e some(hat more than
ordinary en)oura*ement to the )arryin* trade in (ine- Se'eral of
the other duties too, (hi)h (ere im+osed either at the same time,
or su&sequent to the Old Su&sidy8 (hat is )alled the additional
duty, the Ne( Su&sidy, the One8third and T(o8thirds Su&sidies,
the im+ost 16FE, the )oina*e on (ine8 (ere allo(ed to &e (holly
dra(n &a)0 u+on e1+ortation- All those duties, ho(e'er, e1)e+t
the additional duty and im+ost 16FE, &ein* +aid do(n in ready
money, u+on im+ortation, the interest of so lar*e a sum
o))asioned an e1+ense, (hi)h made it unreasona&le to e1+e)t any
+rofita&le )arryin* trade in this arti)le- Only a +art,
therefore, of the duty )alled the im+ost on (ine, and no +art of
the t(enty8fi'e +ounds the ton u+on "ren)h (ines, or of the
duties im+osed in 17GH, in 176B, and in 177?, (ere allo(ed to &e
dra(n &a)0 u+on e1+ortation- The t(o im+osts of fi'e +er )ent,
im+osed in 177F and 17?1, u+on all the former duties of )ustoms,
&ein* allo(ed to &e (holly dra(n &a)0 u+on the e1+ortation of all
other *oods, (ere li0e(ise allo(ed to &e dra(n &a)0 u+on that of
(ine- The last duty that has &een +arti)ularly im+osed u+on (ine,
that of 17?C, is allo(ed to &e (holly dra(n &a)0, an indul*en)e
(hi)h, (hen so many hea'y duties are retained, most +ro&a&ly
)ould ne'er o))asion the e1+ortation of a sin*le ton of (ine-
These rules ta0e +la)e (ith re*ard to all +la)es of la(ful
e1+ortation, e1)e+t the .ritish )olonies in Ameri)a-
The 1Hth Charles II, )- 7, )alled An A)t for the
$n)oura*ement of Trade, had *i'en 6reat .ritain the mono+oly of
su++lyin* the )olonies (ith all the )ommodities of the *ro(th or
manufa)ture of $uro+e/ and )onsequently (ith (ines- In a )ountry
of so e1tensi'e a )oast as our North Ameri)an and West Indian
)olonies, (here our authority (as al(ays so 'ery slender, and
(here the inha&itants (ere allo(ed to )arry out, in their o(n
shi+s, their non8enumerated )ommodities, at first to all +arts of
$uro+e, and after(ards to all +arts of $uro+e south of Ca+e
"inisterre, it is not 'ery +ro&a&le that this mono+oly )ould e'er
&e mu)h res+e)ted/ and they +ro&a&ly, at all times, found means
of &rin*in* &a)0 some )ar*o from the )ountries to (hi)h they (ere
allo(ed to )arry out one- They seem, ho(e'er, to ha'e found some
diffi)ulty in im+ortin* $uro+ean (ines from the +la)es of their
*ro(th, and they )ould not (ell im+ort them from 6reat .ritain
(here they (ere loaded (ith many hea'y duties, of (hi)h a
)onsidera&le +art (as not dra(n &a)0 u+on e1+ortation- 4aderia
(ine, not &ein* a $uro+ean )ommodity, )ould &e im+orted dire)tly
into Ameri)a and the West Indies, )ountries (hi)h, in all their
non8enumerated )ommodities, en2oyed a free trade to the island of
4aderia- These )ir)umstan)es had +ro&a&ly introdu)ed that *eneral
taste for 4aderia (ine, (hi)h our offi)ers found esta&lished in
all our )olonies at the )ommen)ement of the (ar, (hi)h &e*an in
17HH, and (hi)h they &rou*ht &a)0 (ith them to the mother
)ountry, (here that (ine had not &een mu)h in fashion &efore-
U+on the )on)lusion of that (ar, in 176B 9&y the Gth 6eor*e III,
)- 1H, se)t- 1E:, all the duties, e1)e+t !B 1Cs-, (ere allo(ed to
&e dra(n &a)0 u+on the e1+ortation to the )olonies of all (ines,
e1)e+t "ren)h (ines, to the )ommer)e and )onsum+tion of (hi)h
national +re2udi)e (ould allo( no sort of en)oura*ement- The
+eriod &et(een the *rantin* of this indul*en)e and the re'olt of
our North Ameri)an )olonies (as +ro&a&ly too short to admit of
any )onsidera&le )han*e in the )ustoms of those )ountries-
The same a)t, (hi)h, in the dra(&a)0 u+on all (ines, e1)e+t
"ren)h (ines, thus fa'oured the )olonies so mu)h more than other
)ountries/ in those u+on the *reater +art of other )ommodities
fa'oured them mu)h less- U+on the e1+ortation of the *reater +art
of )ommodities to other )ountries, half the old su&sidy (as dra(n
&a)0- .ut this la( ena)ted that no +art of that duty should &e
dra(n &a)0 u+on the e1+ortation to the )olonies of any
)ommodities, of the *ro(th or manufa)ture either of $uro+e or the
$ast Indies, e1)e+t (ines, (hite )ali)oes, and muslins-
Dra(&a)0s (ere, +erha+s, ori*inally *ranted for the
en)oura*ement of the )arryin* trade, (hi)h, as the frei*ht of the
shi+s is frequently +aid &y forei*ners in money, (as su++osed to
&e +e)uliarly fitted for &rin*in* *old and sil'er into the
)ountry- .ut thou*h the )arryin* trade )ertainly deser'es no
+e)uliar en)oura*ement, thou*h the moti'e of the institution (as
+erha+s a&undantly foolish, the institution itself seems
reasona&le enou*h- Su)h dra(&a)0s )annot for)e into this trade a
*reater share of the )a+ital of the )ountry than (hat (ould ha'e
*one to it of its o(n a))ord had there &een no duties u+on
im+ortation- They only +re'ent its &ein* e1)luded alto*ether &y
those duties- The )arryin* trade, thou*h it deser'es no
+referen)e, ou*ht not to &e +re)luded, &ut to &e left free li0e
all other trades- It is a ne)essary resour)e for those )a+itals
(hi)h )annot find em+loyment either in the a*ri)ulture or in the
manufa)tures of the )ountry, either in its home trade or in its
forei*n trade of )onsum+tion-
The re'enue of the )ustoms, instead of sufferin*, +rofits
from su)h dra(&a)0s &y that +art of the duty (hi)h is retained-
If the (hole duties had &een retained, the forei*n *oods u+on
(hi)h they are +aid )ould seldom ha'e &een e1+orted, nor
)onsequently im+orted, for (ant of a mar0et- The duties,
therefore, of (hi)h a +art is retained (ould ne'er ha'e &een
+aid-
These reasons seem suffi)iently to 2ustify dra(&a)0s, and
(ould 2ustify them, thou*h the (hole duties, (hether u+on the
+rodu)e of domesti) industry, or u+on forei*n *oods, (ere al(ays
dra(n &a)0 u+on e1+ortation- The re'enue of e1)ise (ould in this
)ase, indeed, suffer a little, and that of the )ustoms a *ood
deal more/ &ut the natural &alan)e of industry, the natural
di'ision and distri&ution of la&our, (hi)h is al(ays more or less
distur&ed &y su)h duties, (ould &e more nearly re8esta&lished &y
su)h a re*ulation-
These reasons, ho(e'er, (ill 2ustify dra(&a)0s only u+on
e1+ortin* *oods to those )ountries (hi)h are alto*ether forei*n
and inde+endent, not to those in (hi)h our mer)hants and
manufa)turers en2oy a mono+oly- A dra(&a)0, for e1am+le, u+on the
e1+ortation of $uro+ean *oods to our Ameri)an )olonies (ill not
al(ays o))asion a *reater e1+ortation than (hat (ould ha'e ta0en
+la)e (ithout it- .y means of the mono+oly (hi)h our mer)hants
and manufa)turers en2oy there, the same quantity mi*ht
frequently, +erha+s, &e sent thither, thou*h the (hole duties
(ere retained- The dra(&a)0, therefore, may frequently &e +ure
loss to the re'enue of e1)ise and )ustoms, (ithout alterin* the
state of the trade, or renderin* it in any res+e)t more
e1tensi'e- #o( far su)h dra(&a)0s )an &e 2ustified, as a +ro+er
en)oura*ement to the industry of our )olonies, or ho( far it is
ad'anta*eous to the mother )ountry, that they should &e e1em+ted
from ta1es (hi)h are +aid &y all the rest of their fello(
su&2e)ts, (ill a++ear hereafter (hen I )ome to treat the
)olonies-
Dra(&a)0s, ho(e'er, it must al(ays &e understood, are useful
only in those )ases in (hi)h the *oods for the e1+ortation of
(hi)h they are *i'en are really e1+orted to some forei*n )ountry/
and not )landestinely re8im+orted into our o(n- That some
dra(&a)0s, +arti)ularly those u+on to&a))o, ha'e frequently &een
a&used in this manner, and ha'e *i'en o))asion to many frauds
equally hurtful &oth to the re'enue and to the fair trader, is
(ell 0no(n-
C#AT$R 5
Of .ounties
.OUNTI$S u+on e1+ortation are, in 6reat .ritain, frequently
+etitioned for, and sometimes *ranted to the +rodu)e of
+arti)ular &ran)hes of domesti) industry- .y means of them our
mer)hants and manufa)turers, it is +retended, (ill &e ena&led to
sell their *oods as )hea+, or )hea+er than their ri'als in the
forei*n mar0et- A *reater quantity, it is said, (ill thus &e
e1+orted, and the &alan)e of trade )onsequently turned more in
fa'our of our o(n )ountry- We )annot *i'e our (or0men a mono+oly
in the forei*n as (e ha'e done in the home mar0et- We )annot
for)e forei*ners to &uy their *oods as (e ha'e done our o(n
)ountrymen- The ne1t &est e1+edient, it has &een thou*ht,
therefore, is to +ay them for &uyin*- It is in this manner that
the mer)antile system +ro+oses to enri)h the (hole )ountry, and
to +ut money into all our +o)0ets &y means of the &alan)e of
trade-
.ounties, it is allo(ed, ou*ht to &e *i'en to those &ran)hes
of trade only (hi)h )annot &e )arried on (ithout them- .ut e'ery
&ran)h of trade in (hi)h the mer)hant )an sell his *oods for a
+ri)e (hi)h re+la)es to him, (ith the ordinary +rofits of sto)0,
the (hole )a+ital em+loyed in +re+arin* and sendin* them to
mar0et, )an &e )arried on (ithout a &ounty- $'ery su)h &ran)h is
e'idently u+on a le'el (ith all the other &ran)hes of trade (hi)h
are )arried on (ithout &ounties, and )annot therefore require one
more than they- Those trades only require &ounties in (hi)h the
mer)hant is o&li*ed to sell his *oods for a +ri)e (hi)h does not
re+la)e to him his )a+ital, to*ether (ith the ordinary +rofit/ or
in (hi)h he is o&li*ed to sell them for less than it really )osts
him to send them to mar0et- The &ounty is *i'en in order to ma0e
u+ this loss, and to en)oura*e him to )ontinue, or +erha+s to
&e*in, a trade of (hi)h the e1+ense is su++osed to &e *reater
than the returns, of (hi)h e'ery o+eration eats u+ a +art of the
)a+ital em+loyed in it, and (hi)h is of su)h a nature that, if
all other trades resem&led it, there (ould soon &e no )a+ital
left in the )ountry-
The trades, it is to &e o&ser'ed, (hi)h are )arried on &y
means of &ounties, are the only ones (hi)h )an &e )arried on
&et(een t(o nations for any )onsidera&le time to*ether, in su)h a
manner as that one of them shall al(ays and re*ularly lose, or
sell its *oods for less than it really )osts to send them to
mar0et- .ut if the &ounty did not re+ay to the mer)hant (hat he
(ould other(ise lose u+on the +ri)e of his *oods, his o(n
interest (ould soon o&li*e him to em+loy his sto)0 in another
(ay, or to find out a trade in (hi)h the +ri)e of the *oods (ould
re+la)e to him, (ith the ordinary +rofit, the )a+ital em+loyment
in sendin* them to mar0et- The effe)t of &ounties, li0e that of
all the other e1+edients of the mer)antile system, )an only &e to
for)e the trade of a )ountry into a )hannel mu)h less
ad'anta*eous than that in (hi)h it (ould naturally run of its o(n
a))ord-
The in*enious and (ell8informed author of the tra)ts u+on
the )orn trade has sho(n 'ery )learly that, sin)e the &ounty u+on
the e1+ortation of )orn (as first esta&lished, the +ri)e of the
)orn e1+orted, 'alued moderately enou*h, has e1)eeded that of the
)orn im+orted, 'alued 'ery hi*h, &y a mu)h *reater sum than the
amount of the (hole &ounties (hi)h ha'e &een +aid durin* that
+eriod- This, he ima*ines, u+on the true +rin)i+les of the
mer)antile system, is a )lear +roof that this for)ed )orn trade
is &enefi)ial to the nation/ the 'alue of the e1+ortation
e1)eedin* that of the im+ortation &y a mu)h *reater sum than the
(hole e1traordinary e1+ense (hi)h the +u&li) has &een at in order
to *et it e1+orted- #e does not )onsider that this e1traordinary
e1+ense, or the &ounty, is the smallest +art of the e1+ense (hi)h
the e1+ortation of )orn really )osts the so)iety- The )a+ital
(hi)h the farmer em+loyed in raisin* it must li0e(ise &e ta0en
into the a))ount- Unless the +ri)e of the )orn (hen sold in the
forei*n mar0ets re+la)es, not only the &ounty, &ut this )a+ital,
to*ether (ith the ordinary +rofits of sto)0, the so)iety is a
loser &y the differen)e, or the national sto)0 is so mu)h
diminished- .ut the 'ery reason for (hi)h it has &een thou*ht
ne)essary to *rant a &ounty is the su++osed insuffi)ien)y of the
+ri)e to do this-
The a'era*e +ri)e of )orn, it has &een said, has fallen
)onsidera&ly sin)e the esta&lishment of the &ounty- That the
a'era*e +ri)e of )orn &e*an to fall some(hat to(ards the end of
the last )entury, and has )ontinued to do so durin* the )ourse of
the si1ty8four first years of the +resent, I ha'e already
endea'oured to sho(- .ut this e'ent, su++osin* it to &e as real
as I &elie'e it to &e, must ha'e ha++ened in s+ite of the &ounty,
and )annot +ossi&ly ha'e ha++ened in )onsequen)e of it- It has
ha++ened in "ran)e, as (ell as in $n*land, thou*h in "ran)e there
(as not only no &ounty, &ut, till 176G, the e1+ortation of )orn
(as su&2e)ted to a *eneral +rohi&ition- This *radual fall in the
a'era*e +ri)e of *rain, it is +ro&a&le, therefore, is ultimately
o(in* neither to the one re*ulation nor to the other- &ut to that
*radual and insensi&le rise in the real 'alue of sil'er, (hi)h,
in the first &oo0 in this dis)ourse, I ha'e endea'oured to sho(
has ta0en +la)e in the *eneral mar0et of $uro+e durin* the )ourse
of the +resent )entury- It seems to &e alto*ether im+ossi&le that
the &ounty )ould e'er )ontri&ute to lo(er the +ri)e of *rain-
In years of +lenty, it has already &een o&ser'ed, the
&ounty, &y o))asionin* an e1traordinary e1+ortation, ne)essarily
0ee+s u+ the +ri)e of )orn in the home mar0et a&o'e (hat it (ould
naturally fall to- To do so (as the a'o(ed +ur+ose of the
institution- In years of s)ar)ity, thou*h the &ounty is
frequently sus+ended, yet the *reat e1+ortation (hi)h it
o))asions in years of +lenty must frequently hinder more or less
the +lenty of one year from relie'in* the s)ar)ity of another-
.oth in years of +lenty and in years of s)ar)ity, therefore, the
&ounty ne)essarily tends to raise the money +ri)e of )orn
some(hat hi*her than it other(ise (ould &e in the home mar0et-
That, in the a)tual state of tilla*e, the &ounty must
ne)essarily ha'e this tenden)y (ill not, I a++rehend, &e dis+uted
&y any reasona&le +erson- .ut it has &een thou*ht &y many +eo+le
that it tends to en)oura*e tilla*e, and that in t(o different
(ays/ first, &y o+enin* a more e1tensi'e forei*n mar0et to the
)orn of the farmer, it tends, they ima*ine, to in)rease the
demand for, and )onsequently the +rodu)tion of that )ommodity/
and se)ondly, &y se)urin* to him a &etter +ri)e than he )ould
other(ise e1+e)t in the a)tual state of tilla*e, it tends, they
su++ose, to en)oura*e tilla*e- This dou&le en)oura*ement must,
they ima*ine, in a lon* +eriod of years, o))asion su)h an
in)rease in the +rodu)tion of )orn as may lo(er its +ri)e in the
home mar0et mu)h more than the &ounty )an raise it, in the a)tual
state (hi)h tilla*e may, at the end of that +eriod, ha++en to &e
in-
I ans(er, that (hate'er e1tension of the forei*n mar0et )an
&e o))asioned &y the &ounty must, in e'ery +arti)ular year, &e
alto*ether at the e1+ense of the home mar0et/ as e'ery &ushel of
)orn (hi)h is e1+orted &y means of the &ounty, and (hi)h (ould
not ha'e &een e1+orted (ithout the &ounty, (ould ha'e remained in
the home mar0et to in)rease the )onsum+tion and to lo(er the
+ri)e of that )ommodity- The )orn &ounty, it is to &e o&ser'ed,
as (ell as e'ery other &ounty u+on e1+ortation, im+oses t(o
different ta1es u+on the +eo+le/ first, the ta1 (hi)h they are
o&li*ed to )ontri&ute in order to +ay the &ounty/ and se)ondly,
the ta1 (hi)h arises from the ad'an)ed +ri)e of the )ommodity in
the home mar0et, and (hi)h, as the (hole &ody of the +eo+le are
+ur)hasers of )orn, must, in this +arti)ular )ommodity, &e +aid
&y the (hole &ody of the +eo+le- In this +arti)ular )ommodity,
therefore, this se)ond ta1 is &y mu)h the hea'ier of the t(o- !et
us su++ose that, ta0in* one year (ith another, the &ounty of fi'e
shillin*s u+on the e1+ortation of the quarter of (heat raises the
+ri)e of that )ommodity in the home mar0et only si1+en)e the
&ushel, or four shillin*s the quarter, hi*her than it other(ise
(ould ha'e &een in the a)tual state of the )ro+- $'en u+on this
'ery moderate su++osition, the *reat &ody of the +eo+le, o'er and
a&o'e )ontri&utin* the ta1 (hi)h +ays the &ounty of fi'e
shillin*s u+on e'ery quarter of (heat e1+orted, must +ay another
of four shillin*s u+on e'ery quarter (hi)h they themsel'es
)onsume- .ut, a))ordin* to the 'ery (ell informed author of the
tra)ts u+on the )orn trade, the a'era*e +ro+ortion of the )orn
e1+orted to that )onsumed at home is not more than that of one to
thirty8one- "or e'ery fi'e shillin*s, therefore, (hi)h they
)ontri&ute to the +ayment of the first ta1, they must )ontri&ute
si1 +ounds four shillin*s to the +ayment of the se)ond- So 'ery
hea'y a ta1 u+on the first ne)essary of life must either redu)e
the su&sisten)e of the la&ourin* +oor, or it must o))asion some
au*mentation in their +e)uniary (a*es +ro+ortiona&le to that in
the +e)uniary +ri)e of their su&sisten)e- So far as it o+erates
in the one (ay, it must redu)e the a&ility of the la&ourin* +oor
to edu)ate and &rin* u+ their )hildren, and must, so far, tend to
restrain the +o+ulation of the )ountry- So far as it o+erates in
the other, it must redu)e the a&ility of the em+loyers of the
+oor to em+loy so *reat a num&er as they other(ise mi*ht do, and
must, so far, tend to restrain the industry of the )ountry- The
e1traordinary e1+ortation of )orn, therefore, o))asioned &y the
&ounty, not only, in e'ery +arti)ular year, diminishes the home,
2ust as mu)h as it e1tends the forei*n, mar0et and )onsum+tion,
&ut, &y restrainin* the +o+ulation and industry of the )ountry,
its final tenden)y is to stunt and restrain the *radual e1tension
of the home mar0et/ and there&y, in the lon* run, rather to
diminish, than to au*ment, the (hole mar0et and )onsum+tion of
)orn-
This enhan)ement of the money +ri)e of )orn, ho(e'er, it has
&een thou*ht, &y renderin* that )ommodity more +rofita&le to the
farmer, must ne)essarily en)oura*e its +rodu)tion-
I ans(er, that this mi*ht &e the )ase if the effe)t of the
&ounty (as to raise the real +ri)e of )orn, or to ena&le the
farmer, (ith an equal quantity of it, to maintain a *reater
num&er of la&ourers in the same manner, (hether li&eral,
moderate, or s)anty, that other la&ourers are )ommonly maintained
in his nei*h&ourhood- .ut neither the &ounty, it is e'ident, nor
any other human institution )an ha'e any su)h effe)t- It is not
the real, &ut the nominal +ri)e of )orn, (hi)h )an in any
)onsidera&le de*ree &e affe)ted &y the &ounty- And thou*h the ta1
(hi)h that institution im+oses u+on the (hole &ody of the +eo+le
may &e 'ery &urdensome to those (ho +ay it, it is of 'ery little
ad'anta*e to those (ho re)ei'e it-
The real effe)t of the &ounty is not so mu)h to raise the
real 'alue of )orn as to de*rade the real 'alue of sil'er, or to
ma0e an equal quantity of it e1)han*e for a smaller quantity, not
only of )orn, &ut of all other homemade )ommodities3 for the
money +ri)e of )orn re*ulates that of all other home8made
)ommodities-
It re*ulates the money +ri)e of la&our, (hi)h must al(ays &e
su)h as to ena&le the la&ourer to +ur)hase a quantity of )orn
suffi)ient to maintain him and his family either in the li&eral,
moderate, or s)anty manner in (hi)h the ad'an)in*, stationary, or
de)linin* )ir)umstan)es of the so)iety o&li*e his em+loyers to
maintain him-
It re*ulates the money +ri)e of all the other +arts of the
rude +rodu)e of land, (hi)h, in e'ery +eriod of im+ro'ement, must
&ear a )ertain +ro+ortion to that of )orn, thou*h this +ro+ortion
is different in different +eriods- It re*ulates, for e1am+le, the
money +ri)e of *rass and hay, of &ut)her=s meat, of horses, and
the maintenan)e of horses, of land )arria*e )onsequently, or of
the *reater +art of the inland )ommer)e of the )ountry-
.y re*ulatin* the money +ri)e of all the other +arts of the
rude +rodu)e of land, it re*ulates that of the materials of
almost all manufa)tures- .y re*ulatin* the money +ri)e of la&our,
it re*ulates that of manufa)turin* art and industry- And &y
re*ulatin* &oth, it re*ulates that of the )om+lete manufa)ture-
The money +ri)e of la&our, and of e'erythin* that is the +rodu)e
either of land or la&our, must ne)essarily either rise or fall in
+ro+ortion to the money +ri)e of )orn-
Thou*h in )onsequen)e of the &ounty, therefore, the farmer
should &e ena&led to sell his )orn for four shillin*s a &ushel
instead of three8and8si1+en)e, and to +ay his landlord a money
rent +ro+ortiona&le to this rise in the money +ri)e of his
+rodu)e, yet if, in )onsequen)e of this rise in the +ri)e of
)orn, four shillin*s (ill +ur)hase no more homemade *oods of any
other 0ind than three8and8si1+en)e (ould ha'e done &efore,
neither the )ir)umstan)es of the farmer nor those of the landlord
(ill &e mu)h mended &y this )han*e- The farmer (ill not &e a&le
to )ulti'ate mu)h &etter3 the landlord (ill not &e a&le to li'e
mu)h &etter- In the +ur)hase of forei*n )ommodities this
enhan)ement in the +ri)e of )orn may *i'e them some little
ad'anta*e- In that of home8made )ommodities it )an *i'e them none
at all- And almost the (hole e1+ense of the farmer, and the far
*reater +art e'en of that of the landlord, is in homemade
)ommodities-
That de*radation in the 'alue of sil'er (hi)h is the effe)t
of the fertility of the mines, and (hi)h o+erates equally, or
'ery near equally, throu*h the *reater +art of the )ommer)ial
(orld, is a matter of 'ery little )onsequen)e to any +arti)ular
)ountry- The )onsequent rise of all money +ri)es, thou*h it does
not ma0e those (ho re)ei'e them really ri)her, does ma0e them
really +oorer- A ser'i)e of +late &e)omes really )hea+er, and
e'erythin* else remains +re)isely of the same real 'alue as
&efore-
.ut that de*radation in the 'alue of sil'er (hi)h, &ein* the
effe)t either of the +e)uliar situation or of the +oliti)al
institutions of a +arti)ular )ountry, ta0es +la)e only in that
)ountry, is a matter of 'ery *reat )onsequen)e, (hi)h, far from
tendin* to ma0e any&ody really ri)her, tends to ma0e e'ery&ody
really +oorer- The rise in the money +ri)e of all )ommodities,
(hi)h is in this )ase +e)uliar to that )ountry, tends to
dis)oura*e more or less e'ery sort of industry (hi)h is )arried
on (ithin it, and to ena&le forei*n nations, &y furnishin* almost
all sorts of *oods for a smaller quantity of sil'er than its o(n
(or0men )an afford to do, to undersell them, not only in the
forei*n, &ut e'en in the home mar0et-
It is the +e)uliar situation of S+ain and ortu*al as
+ro+rietors of the mines to &e the distri&utors of *old and
sil'er to all the other )ountries of $uro+e- Those metals ou*ht
naturally, therefore, to &e some(hat )hea+er in S+ain and
ortu*al than in any other +art of $uro+e- The differen)e,
ho(e'er, should &e no more than the amount of the frei*ht and
insuran)e/ and, on a))ount of the *reat 'alue and small &ul0 of
those metals, their frei*ht is no *reat matter, and their
insuran)e is the same as that of any other *oods of equal 'alue-
S+ain and ortu*al, therefore, )ould suffer 'ery little from
their +e)uliar situation, if they did not a**ra'ate its
disad'anta*es &y their +oliti)al institutions-
S+ain &y ta1in*, and ortu*al &y +rohi&itin* the e1+ortation
of *old and sil'er, load that e1+ortation (ith the e1+ense of
smu**lin*, and raise the 'alue of those metals in other )ountries
so mu)h more a&o'e (hat it is in their o(n &y the (hole amount of
this e1+ense- When you dam u+ a stream of (ater, as soon as the
dam is full as mu)h (ater must run o'er the dam8head as if there
(as no dam at all- The +rohi&ition of e1+ortation )annot detain a
*reater quantity of *old and sil'er in S+ain and ortu*al than
(hat they )an afford to em+loy, than (hat the annual +rodu)e of
their land and la&our (ill allo( them to em+loy, in )oin, +late,
*ildin*, and other ornaments of *old and sil'er- When they ha'e
*ot this quantity the dam is full, and the (hole stream (hi)h
flo(s in after(ards must run o'er- The annual e1+ortation of *old
and sil'er from S+ain and ortu*al a))ordin*ly is, &y all
a))ounts, not(ithstandin* these restraints, 'ery near equal to
the (hole annual im+ortation- As the (ater, ho(e'er, must al(ays
&e dee+er &ehind the dam8head than &efore it, so the quantity of
*old and sil'er (hi)h these restraints detain in S+ain and
ortu*al must, in +ro+ortion to the annual +rodu)e of their land
and la&our, &e *reater than (hat is to &e found in other
)ountries- The hi*her and stron*er the dam8head, the *reater must
&e the differen)e in the de+th of (ater &ehind and &efore it- The
hi*her the ta1, the hi*her the +enalties (ith (hi)h the
+rohi&ition is *uarded, the more 'i*ilant and se'ere the +oli)e
(hi)h loo0s after the e1e)ution of the la(, the *reater must &e
the differen)e in the +ro+ortion of *old and sil'er to the annual
+rodu)e of the land and la&our of S+ain and ortu*al, and to that
of other )ountries- It is said a))ordin*ly to &e 'ery
)onsidera&le, and that you frequently find there a +rofusion of
+late in houses (here there is nothin* else (hi)h (ould, in other
)ountries, &e thou*ht suita&le or )orres+ondent to this sort of
ma*nifi)en)e- The )hea+ness of *old and sil'er, or (hat is the
same thin*, the dearness of all )ommodities, (hi)h is the
ne)essary effe)t of this redundan)y of the +re)ious metals,
dis)oura*es &oth the a*ri)ulture and manufa)tures of S+ain and
ortu*al, and ena&les forei*n nations to su++ly them (ith many
sorts of rude, and (ith almost all sorts of manufa)tured +rodu)e,
for a smaller quantity of *old and sil'er than (hat they
themsel'es )an either raise or ma0e them for at home- The ta1 and
+rohi&ition o+erate in t(o different (ays- They not only lo(er
'ery mu)h the 'alue of the +re)ious metals in S+ain and ortu*al,
&ut &y detainin* there a )ertain quantity of those metals (hi)h
(ould other(ise flo( o'er other )ountries, they 0ee+ u+ their
'alue in those other )ountries some(hat a&o'e (hat it other(ise
(ould &e, and there&y *i'e those )ountries a dou&le ad'anta*e in
their )ommer)e (ith S+ain and ortu*al- O+en the flood8*ates, and
there (ill +resently &e less (ater a&o'e, and more &elo(, the
dam8head, and it (ill soon )ome to a le'el in &oth +la)es- Remo'e
the ta1 and the +rohi&ition, and as the quantity of *old and
sil'er (ill diminish )onsidera&ly in S+ain and ortu*al, so it
(ill in)rease some(hat in other )ountries, and the 'alue of those
metals, their +ro+ortion to the annual +rodu)e of land and
la&our, (ill soon )ome to a le'el, or 'ery near to a le'el, in
all- The loss (hi)h S+ain and ortu*al )ould sustain &y this
e1+ortation of their *old and sil'er (ould &e alto*ether nominal
and ima*inary- The nominal 'alue of their *oods, and of the
annual +rodu)e of their land and la&our, (ould fall, and (ould &e
e1+ressed or re+resented &y a smaller quantity of sil'er than
&efore/ &ut their real 'alue (ould &e the same as &efore, and
(ould &e suffi)ient to maintain, )ommand, and em+loy, the same
quantity of la&our- As the nominal 'alue of their *oods (ould
fall, the real 'alue of (hat remained of their *old and sil'er
(ould rise, and a smaller quantity of those metals (ould ans(er
all the same +ur+oses of )ommer)e and )ir)ulation (hi)h had
em+loyed a *reater quantity &efore- The *old and sil'er (hi)h
(ould *o a&road (ould not *o a&road for nothin*, &ut (ould &rin*
&a)0 an equal 'alue of *oods of some 0ind or another- Those
*oods, too, (ould not &e all matters of mere lu1ury and e1+ense,
to &e )onsumed &y idle +eo+le (ho +rodu)e nothin* in return for
their )onsum+tion- As the real (ealth and re'enue of idle +eo+le
(ould not &e au*mented &y this e1traordinary e1+ortation of *old
and sil'er, so neither (ould their )onsum+tion &e mu)h au*mented
&y it- Those *oods (ould, +ro&a&ly, the *reater +art of them, and
)ertainly some +art of them, )onsist in materials, tools, and
+ro'isions, for the em+loyment and maintenan)e of industrious
+eo+le, (ho (ould re+rodu)e, (ith a +rofit, the full 'alue of
their )onsum+tion- A +art of the dead sto)0 of the so)iety (ould
thus &e turned into a)ti'e sto)0, and (ould +ut into motion a
*reater quantity of industry than had &een em+loyed &efore- The
annual +rodu)e of their land and la&our (ould immediately &e
au*mented a little, and in a fe( years (ould, +ro&a&ly, &e
au*mented a *reat deal/ their industry &ein* thus relie'ed from
one of the most o++ressi'e &urdens (hi)h it at +resent la&ours
under-
The &ounty u+on the e1+ortation of )orn ne)essarily o+erates
e1a)tly in the same (ay as this a&surd +oli)y of S+ain and
ortu*al- Whate'er &e the a)tual state of tilla*e, it renders our
)orn some(hat dearer in the home mar0et than it other(ise (ould
&e in that state, and some(hat )hea+er in the forei*n/ and as the
a'era*e money +ri)e of )orn re*ulates more or less that of all
other )ommodities, it lo(ers the 'alue of sil'er )onsidera&ly in
the one, and tends to raise it a little in the other- It ena&les
forei*ners, the Dut)h in +arti)ular, not only to eat our )orn
)hea+er than they other(ise )ould do, &ut sometimes to eat it
)hea+er than e'en our o(n +eo+le )an do u+on the same o))asions,
as (e are assured &y an e1)ellent authority, that of Sir 4atthe(
De)0er- It hinders our o(n (or0men from furnishin* their *oods
for so small a quantity of sil'er as they other(ise mi*ht do/ and
ena&les the Dut)h to furnish theirs for a smaller- It tends to
render our manufa)tures some(hat dearer in e'ery mar0et, and
theirs some(hat )hea+er than they other(ise (ould &e, and
)onsequently to *i'e their industry a dou&le ad'anta*e o'er our
o(n-
The &ounty, as it raises in the home mar0et not so mu)h the
real as the nominal +ri)e of our )orn, as it au*ments, not the
quantity of la&our (hi)h a )ertain quantity of )orn )an maintain
and em+loy &ut only the quantity of sil'er (hi)h it (ill e1)han*e
for, it dis)oura*es our manufa)tures, (ithout renderin* any
)onsidera&le ser'i)e either to our farmers or )ountry *entlemen-
It +uts, indeed, a little more money into the +o)0ets of &oth,
and it (ill +erha+s &e some(hat diffi)ult to +ersuade the *reater
+art of them that this is not renderin* them a 'ery )onsidera&le
ser'i)e- .ut if this money sin0s in its 'alue, in the quantity of
la&our, +ro'isions, and homemade )ommodities of all different
0inds (hi)h it is )a+a&le of +ur)hasin* as mu)h as it rises in
its quantity, the ser'i)e (ill &e little more than nominal and
ima*inary-
There is, +erha+s, &ut one set of men in the (hole
)ommon(ealth to (hom the &ounty either (as or )ould &e
essentially ser'i)ea&le- These (ere the )orn mer)hants, the
e1+orters and im+orters of )orn- In years of +lenty the &ounty
ne)essarily o))asioned a *reater e1+ortation than (ould other(ise
ha'e ta0en +la)e/ and &y hinderin* the +lenty of one year from
relie'in* the s)ar)ity of another, it o))asioned in years of
s)ar)ity a *reater im+ortation than (ould other(ise ha'e &een
ne)essary- It in)reased the &usiness of the )orn mer)hant in
&oth/ and in years of s)ar)ity, it not only ena&led him to im+ort
a *reater quantity, &ut to sell it for a &etter +ri)e, and
)onsequently (ith a *reater +rofit than he )ould other(ise ha'e
made, if the +lenty of one year had not &een more or less
hindered from relie'in* the s)ar)ity of another- It is in this
set of men, a))ordin*ly, that I ha'e o&ser'ed the *reatest ;eal
for the )ontinuan)e or rene(al of the &ounty-
Our )ountry *entlemen, (hen they im+osed the hi*h duties
u+on the im+ortation of forei*n )orn, (hi)h in times of moderate
+lenty amount to a +rohi&ition, and (hen they esta&lished the
&ounty, seem to ha'e imitated the )ondu)t of our manufa)turers-
.y the one institution, they se)ured to themsel'es the mono+oly
of the home mar0et, and &y the other they endea'oured to +re'ent
that mar0et from e'er &ein* o'ersto)0ed (ith their )ommodity- .y
&oth they endea'oured to raise its real 'alue, in the same manner
as our manufa)turers had, &y the li0e institutions, raised the
real 'alue of many different sorts of manufa)tured *oods- They
did not +erha+s attend to the *reat and essential differen)e
(hi)h nature has esta&lished &et(een )orn and almost e'ery other
sort of *oods- When, either &y the mono+oly of the home mar0et,
or &y a &ounty u+on e1+ortation, you ena&le our (oollen or linen
manufa)turers to sell their *oods for some(hat a &etter +ri)e
than they other(ise )ould *et for them, you raise, not only the
nominal, &ut the real +ri)e of those *oods- 7ou render them
equi'alent to a *reater quantity of la&our and su&sisten)e, you
in)rease not only the nominal, &ut the real +rofit, the real
(ealth and re'enue of those manufa)turers, and you ena&le them
either to li'e &etter themsel'es, or to em+loy a *reater quantity
of la&our in those +arti)ular manufa)tures- 7ou really en)oura*e
those manufa)tures, and dire)t to(ards them a *reater quantity of
the industry of the )ountry than (hat (ould +ro&a&ly *o to them
of its o(n a))ord- .ut (hen &y the li0e institutions you raise
the nominal or money8+ri)e of )orn, you do not raise its real
'alue- 7ou do not in)rease the real (ealth, the real re'enue
either of our farmers or )ountry *entlemen- 7ou do not en)oura*e
the *ro(th of )orn &e)ause you do not ena&le them to maintain and
em+loy more la&ourers in raisin* it- The nature of thin*s has
stam+ed u+on )orn a real 'alue (hi)h )annot &e altered &y merely
alterin* its money +ri)e- No &ounty u+on e1+ortation, no mono+oly
of the home mar0et, )an raise that 'alue- The freest )om+etition
)annot lo(er it- Throu*h the (orld in *eneral that 'alue is equal
to the quantity of la&our (hi)h it )an maintain, and in e'ery
+arti)ular +la)e it is equal to the quantity of la&our (hi)h it
)an maintain in the (ay, (hether li&eral, moderate, or s)anty, in
(hi)h la&our is )ommonly maintained in that +la)e- Woollen or
linen )loth are not the re*ulatin* )ommodities &y (hi)h the real
'alue of all other )ommodities must &e finally measured and
determined/ )orn is- The real 'alue of e'ery other )ommodity is
finally measured and determined &y the +ro+ortion (hi)h its
a'era*e money +ri)e &ears to the a'era*e money +ri)e of )orn- The
real 'alue of )orn does not 'ary (ith those 'ariations in its
a'era*e money +ri)e, (hi)h sometimes o))ur from one )entury to
another- It is the real 'alue of sil'er (hi)h 'aries (ith them-
.ounties u+on the e1+ortation of any homemade )ommodity are
lia&le, first to that *eneral o&2e)tion (hi)h may &e made to all
the different e1+edients of the mer)antile system/ the o&2e)tion
of for)in* some +art of the industry of the )ountry into a
)hannel less ad'anta*eous than that in (hi)h it (ould run of its
o(n a))ord3 and, se)ondly, to the +arti)ular o&2e)tion of for)in*
it, not only into a )hannel that is less ad'anta*eous, &ut into
one that is a)tually disad'anta*eous/ the trade (hi)h )annot &e
)arried on &ut &y means of a &ounty &ein* ne)essarily a losin*
trade- The &ounty u+on the e1+ortation of )orn is lia&le to this
further o&2e)tion, that it )an in no res+e)t +romote the raisin*
of that +arti)ular )ommodity of (hi)h it (as meant to en)oura*e
the +rodu)tion- When our )ountry *entlemen, therefore, demanded
the esta&lishment of the &ounty, thou*h they a)ted in imitation
of our mer)hants and manufa)turers, they did not a)t (ith that
)om+lete )om+rehension of their o(n interest (hi)h )ommonly
dire)ts the )ondu)t of those t(o other orders of +eo+le- They
loaded the +u&li) re'enue (ith a 'ery )onsidera&le e1+ense/ they
im+osed a 'ery hea'y ta1 u+on the (hole &ody of the +eo+le/ &ut
they did not, in any sensi&le de*ree, in)rease the real 'alue of
their o(n )ommodity/ and &y lo(erin* some(hat the real 'alue of
sil'er, they dis)oura*ed in some de*ree, the *eneral industry of
the )ountry, and, instead of ad'an)in*, retarded more or less the
im+ro'ement of their o(n lands, (hi)h ne)essarily de+ends u+on
the *eneral industry of the )ountry-
To en)oura*e the +rodu)tion of any )ommodity, a &ounty u+on
+rodu)tion, one should ima*ine, (ould ha'e a more dire)t
o+eration than one u+on e1+ortation- It (ould, &esides, im+ose
only one ta1 u+on the +eo+le, that (hi)h they must )ontri&ute in
order to +ay the &ounty- Instead of raisin*, it (ould tend to
lo(er the +ri)e of the )ommodity in the home mar0et/ and there&y,
instead of im+osin* a se)ond ta1 u+on the +eo+le, it mi*ht, at
least, in +art, re+ay them for (hat they had )ontri&uted to the
first- .ounties u+on +rodu)tion, ho(e'er, ha'e &een 'ery rarely
*ranted- The +re2udi)es esta&lished &y the )ommer)ial system ha'e
tau*ht us to &elie'e that national (ealth arises more immediately
from e1+ortation than from +rodu)tion- It has &een more fa'oured
a))ordin*ly, as the more immediate means of &rin*in* money into
the )ountry- .ounties u+on +rodu)tion, it has &een said too, ha'e
&een found &y e1+erien)e more lia&le to frauds than those u+on
e1+ortation- #o( far this is true, I 0no( not- That &ounties u+on
e1+ortation ha'e &een a&used to many fraudulent +ur+oses is 'ery
(ell 0no(n- .ut it is not the interest of mer)hants and
manufa)turers, the *reat in'entors of all these e1+edients, that
the home mar0et should &e o'ersto)0ed (ith their *oods, an e'ent
(hi)h a &ounty u+on +rodu)tion mi*ht sometimes o))asion- A &ounty
u+on e1+ortation, &y ena&lin* them to send a&road the sur+lus
+art, and to 0ee+ u+ the +ri)e of (hat remains in the home
mar0et, effe)tually +re'ents this- Of all the e1+edients of the
mer)antile system, a))ordin*ly, it is the one of (hi)h they are
the fondest- I ha'e 0no(n the different underta0ers of some
+arti)ular (or0s a*ree +ri'ately amon* themsel'es to *i'e a
&ounty out of their o(n +o)0ets u+on the e1+ortation of a )ertain
+ro+ortion of the *oods (hi)h they dealt in- This e1+edient
su))eeded so (ell that it more than dou&led the +ri)e of their
*oods in the home mar0et, not(ithstandin* a 'ery )onsidera&le
in)rease in the +rodu)e- The o+eration of the &ounty u+on )orn
must ha'e &een (onderfully different if it has lo(ered the money
+ri)e of that )ommodity-
Somethin* li0e a &ounty u+on +rodu)tion, ho(e'er, has &een
*ranted u+on some +arti)ular o))asions- The tonna*e &ounties
*i'en to the (hite8herrin* and (hale fisheries may, +erha+s, &e
)onsidered as some(hat of this nature- They tend dire)tly, it may
&e su++osed, to render the *oods )hea+er in the home mar0et than
they other(ise (ould &e- In other res+e)ts their effe)ts, it must
&e a)0no(led*ed, are the same as those of &ounties u+on
e1+ortation- .y means of them a +art of the )a+ital of the
)ountry is em+loyed in &rin*in* *oods to mar0et, of (hi)h the
+ri)e does not re+ay the )ost to*ether (ith the ordinary +rofits
of sto)0-
.ut thou*h the tonna*e &ounties of those fisheries do not
)ontri&ute to the o+ulen)e of the nation, it may +erha+s &e
thou*ht that they )ontri&ute to its defen)e &y au*mentin* the
num&er of its sailors and shi++in*- This, it may &e alle*ed, may
sometimes &e done &y means of su)h &ounties at a mu)h smaller
e1+ense than &y 0ee+in* u+ a *reat standin* na'y, if I may use
su)h an e1+ression, in the same (ay as a standin* army-
Not(ithstandin* these fa'oura&le alle*ations, ho(e'er, the
follo(in* )onsiderations dis+ose me to &elie'e that, in *rantin*
at least one of these &ounties, the le*islature has &een 'ery
*rossly im+osed u+on-
"irst, the herrin* &uss &ounty seems too lar*e-
"rom the )ommen)ement of the (inter fishin*, 1771, to the
end of the (inter fishin*, 17?1, the tonna*e &ounty u+on the
herrin* &uss fishery has &een at thirty shillin*s the ton- Durin*
these ele'en years the (hole num&er of &arrels )au*ht &y the
herrin* &uss fishery of S)otland amounted to B7?,BG7- The
herrin*s )au*ht and )ured at sea are )alled sea8sti)0s- In order
to render them (hat are )alled mer)hanta&le herrin*s, it is
ne)essary to re+a)0 them (ith an additional quantity of salt/ and
in this )ase, it is re)0oned that three &arrels of sea8sti)0s are
usually re+a)0ed into t(o &arrels of mer)hanta&le herrin*s- The
num&er of &arrels of mer)hanta&le herrin*s, therefore, )au*ht
durin* these ele'en years (ill amount only, a))ordin* to this
a))ount, to EHE,EB1 1DB- Durin* these ele'en years the tonna*e
&ounties +aid amounted to !1HH,G6B 11s- or to ?s- E 1DGd- u+on
e'ery &arrel of seasti)0s, and to 1Es- B BDGd- u+on e'ery &arrel
of mer)hanta&le herrin*s-
The salt (ith (hi)h these herrin*s are )ured is sometimes
S)ot)h and sometimes forei*n salt, &oth (hi)h are deli'ered free
of all e1)ise duty to the fish8)urers- The e1)ise duty u+on
S)ot)h salt is at +resent 1s- 6d-, that u+on forei*n salt 1Cs-
the &ushel- A &arrel of herrin*s is su++osed to require a&out one
&ushel and one8fourth of a &ushel forei*n salt- T(o &ushels are
the su++osed a'era*e of S)ot)h salt- If the herrin*s are entered
for e1+ortation, no +art of this duty is +aid u+/ if entered for
home )onsum+tion, (hether the herrin*s (ere )ured (ith forei*n or
(ith S)ot)h salt, only one shillin* the &arrel is +aid u+- It (as
the old S)ot)h duty u+on a &ushel of salt, the quantity (hi)h, at
a lo( estimation, had &een su++osed ne)essary for )urin* a &arrel
of herrin*s- In S)otland, forei*n salt is 'ery little used for
any other +ur+ose &ut the )urin* of fish- .ut from the Hth A+ril
1771 to the Hth A+ril 17?E, the quantity of forei*n salt im+orted
amounted to FB6,F7G &ushels, at ei*hty8four +ounds the &ushel3
the quantity of S)ot)h salt, deli'ered from the (or0s to the
fish8)urers, to no more than 16?,EE6, at fifty8si1 +ounds the
&ushel only- It (ould a++ear, therefore, that it is +rin)i+ally
forei*n salt that is used in the fisheries- U+on e'ery &arrel of
herrin*s e1+orted there is, &esides, a &ounty of Es- ?d-, and
more than t(o8thirds of the &uss )au*ht herrin*s are e1+orted-
ut all these thin*s to*ether and you (ill find that, durin*
these ele'en years, e'ery &arrel of &uss )au*ht herrin*s, )ured
(ith S)ot)h salt (hen e1+orted, has )ost *o'ernment !1 7s- H
BDGd-/ and (hen entered for home )onsum+tion 1Gs- B BDGd-/ and
that e'ery &arrel )ured (ith forei*n salt, (hen e1+orted, has
)ost *o'ernment !1 7s- H BDGd-/ and (hen entered for home
)onsum+tion !1- Bs- F BDGd- The +ri)e of a &arrel of *ood
mer)hanta&le herrin*s runs from se'enteen and ei*hteen to four
and fi'e and t(enty shillin*s, a&out a *uinea at an a'era*e-
Se)ondly, the &ounty to the (hite8herrin* fishery is a
tonna*e &ounty/ and is +ro+ortioned to the &urden of the shi+,
not to her dili*en)e or su))ess in the fishery/ and it has, I am
afraid, &een too )ommon for 'essels to fit out for the sole
+ur+ose of )at)hin*, not the fish, &ut the &ounty- In the year
17HF, (hen the &ounty (as at fifty shillin*s the ton, the (hole
&uss fishery of S)otland &rou*ht in only four &arrels of
sea8sti)0s- In that year ea)h &arrel of sea8sti)0s )ost
*o'ernment in &ounties alone !11B 1Hs-/ ea)h &arrel of
mer)hanta&le herrin*s !1HF 7s- 6d-
Thirdly, the mode of fishin* for (hi)h this tonna*e &ounty
in the (hite8herrin* fishery has &een *i'en 9&y &usses or de)0ed
'essels from t(enty to ei*hty tons &urthen:, seems not so (ell
ada+ted to the situation of S)otland as to that of #olland, from
the +ra)ti)e of (hi)h )ountry it a++ears to ha'e &een &orro(ed-
#olland lies at a *reat distan)e from the seas to (hi)h herrin*s
are 0no(n +rin)i+ally to resort, and )an, therefore, )arry on
that fishery only in de)0ed 'essels, (hi)h )an )arry (ater and
+ro'isions suffi)ient for a 'oya*e to a distant sea- .ut the
#e&rides or (estern islands, the islands of Shetland, and the
northern and north(estern )oasts of S)otland, the )ountries in
(hose nei*h&ourhood the herrin* fishery is +rin)i+ally )arried
on, are e'ery(here interse)ted &y arms of the sea, (hi)h run u+ a
)onsidera&le (ay into the land, and (hi)h, in the lan*ua*e of the
)ountry, are )alled sea8lo)hs- It is to these sea8lo)hs that the
herrin*s +rin)i+ally resort durin* the seasons in (hi)h they
'isit those seas/ for the 'isits of this and, I am assured, of
many other sorts of fish are not quite re*ular and )onstant- A
&oat fishery, therefore, seems to &e the mode of fishin* &est
ada+ted to the +e)uliar situation of S)otland, the fishers
)arryin* the herrin*s on shore, as fast as they are ta0en, to &e
either )ured or )onsumed fresh- .ut the *reat en)oura*ement (hi)h
a &ounty of thirty shillin*s the ton *i'es to the &uss fishery is
ne)essarily a dis)oura*ement to the &oat fishery, (hi)h, ha'in*
no su)h &ounty, )annot &rin* its )ured fish to mar0et u+on the
same terms as the &uss fishery- The &oat fishery, a))ordin*ly,
(hi)h &efore the esta&lishment of the &uss &ounty (as 'ery
)onsidera&le, and is said ha'e em+loyed a num&er of seamen not
inferior to (hat the &uss fishery em+loys at +resent, is no( *one
almost entirely to de)ay- Of the former e1tent, ho(e'er, of this
no( ruined and a&andoned fishery, I must a)0no(led*e that I
)annot +retend to s+ea0 (ith mu)h +re)ision- As no &ounty (as
+aid u+on the outfit of the &oat fishery, no a))ount (as ta0en of
it &y the offi)ers of the )ustoms or salt duties-
"ourthly, in many +arts of S)otland, durin* )ertain seasons
of the year, herrin*s ma0e no in)onsidera&le +art of the food of
the +eo+le- A &ounty, (hi)h tended to lo(er their +ri)e in the
home mar0et, mi*ht )ontri&ute a *ood deal to the relief of a
*reat num&er of our fello(8su&2e)ts, (hose )ir)umstan)es are &y
no means affluent- .ut the herrin* &uss &ounty )ontri&utes to no
su)h *ood +ur+ose- It has ruined the &oat fishery, (hi)h is, &y
far, the &est ada+ted for the su++ly of the home mar0et, and the
additional &ounty of Es- ?d- the &arrel u+on e1+ortation )arries
the *reater +art, more than t(o8thirds, of the +rodu)e of the
&uss fishery a&road- .et(een thirty and forty years a*o, &efore
the esta&lishment of the &uss &ounty, fifteen shillin*s the
&arrel, I ha'e &een assured, (as the )ommon +ri)e of (hite
herrin*s- .et(een ten and fifteen years a*o, &efore the &oat
fishery (as entirely ruined, the +ri)e is said to ha'e run from
se'enteen to t(enty shillin*s the &arrel- "or these last fi'e
years, it has, at an a'era*e, &een at t(enty8fi'e shillin*s the
&arrel- This hi*h +ri)e, ho(e'er, may ha'e &een o(in* to the real
s)ar)ity of the herrin*s u+on the )oast of S)otland- I must
o&ser'e, too, that the )as0 or &arrel, (hi)h is usually sold (ith
the herrin*s, and of (hi)h the +ri)e is in)luded in all the
fore*oin* +ri)es, has, sin)e the )ommen)ement of the Ameri)an
(ar, risen to a&out dou&le its former +ri)e, or from a&out three
shillin*s to a&out si1 shillin*s- I must li0e(ise o&ser'e that
the a))ounts I ha'e re)ei'ed of the +ri)es of former times ha'e
&een &y no means quite uniform and )onsistent/ and an old man of
*reat a))ura)y and e1+erien)e has assured me that, more than
fifty years a*o, a *uinea (as the usual +ri)e of a &arrel of *ood
mer)hanta&le herrin*s/ and this, I ima*ine, may still &e loo0ed
u+on as the a'era*e +ri)e- All a))ounts, ho(e'er, I thin0, a*ree
that the +ri)e has not &een lo(ered in the home mar0et in
)onsequen)e of the &uss &ounty-
When the underta0ers of fisheries, after su)h li&eral
&ounties ha'e &een &esto(ed u+on them, )ontinue to sell their
)ommodity at the same, or e'en at a hi*her +ri)e than they (ere
a))ustomed to do &efore, it mi*ht &e e1+e)ted that their +rofits
should &e 'ery *reat/ and it is not im+ro&a&le that those of some
indi'iduals may ha'e &een so- In *eneral, ho(e'er, I ha'e e'ery
reason to &elie'e they ha'e &een quite other(ise- The usual
effe)t of su)h &ounties is to en)oura*e rash underta0ers to
ad'enture in a &usiness (hi)h they do not understand, and (hat
they lose &y their o(n ne*li*en)e and i*noran)e more than
)om+ensates all that they )an *ain &y the utmost li&erality of
*o'ernment- In 17HC, &y the same a)t, (hi)h first *a'e the &ounty
of thirty shillin*s the ton for the en)oura*ement of the
(hite8herrin* fishery 9the EBrd 6eor*e II, )- EG:, a 2oint8sto)0
)om+any (as ere)ted, (ith a )a+ital of fi'e hundred thousand
+ounds, to (hi)h the su&s)ri&ers 9o'er and a&o'e all other
en)oura*ements, the tonna*e &ounty 2ust no( mentioned, the
e1+ortation &ounty of t(o shillin*s and ei*ht+en)e the &arrel,
the deli'ery of &oth .ritish and forei*n salt duty free: (ere,
durin* the s+a)e of fourteen years, for e'ery hundred +ounds
(hi)h they su&s)ri&ed and +aid in to the sto)0 of the so)iety,
entitled to three +ounds a year, to &e +aid &y the
re)ei'er8*eneral of the )ustoms in equal half8yearly +ayments-
.esides this *reat )om+any, the residen)e of (hose *o'ernor and
dire)tors (as to &e in !ondon, it (as de)lared la(ful to ere)t
different fishin*8)ham&ers in all the different out+orts of the
0in*dom, +ro'ided a sum not less than ten thousand +ounds (as
su&s)ri&ed into the )a+ital of ea)h, to &e mana*ed at its o(n
ris0, and for its o(n +rofit and loss- The same annuity, and the
same en)oura*ements of all 0inds, (ere *i'en to the trade of
those inferior )ham&ers as to that of the *reat )om+any- The
su&s)ri+tion of the *reat )om+any (as soon filled u+, and se'eral
different fishin*8)ham&ers (ere ere)ted in the different out+orts
of the 0in*dom- In s+ite of all these en)oura*ements, almost all
those different )om+anies, &oth *reat and small, lost either the
(hole, or the *reater +art of their )a+itals/ s)ar)e a 'esti*e
no( remains of any of them, and the (hite8herrin* fishery is no(
entirely, or almost entirely, )arried on &y +ri'ate ad'enturers-
If any +arti)ular manufa)ture (as ne)essary, indeed, for the
defen)e of the so)iety, it mi*ht not al(ays &e +rudent to de+end
u+on our nei*h&ours for the su++ly/ and if su)h manufa)ture )ould
not other(ise &e su++orted at home, it mi*ht not &e unreasona&le
that all the other &ran)hes of industry should &e ta1ed in order
to su++ort it- The &ounties u+on the e1+ortation of .ritish8made
sail)loth and .ritish8made *un+o(der may, +erha+s, &oth &e
'indi)ated u+on this +rin)i+le-
.ut thou*h it )an 'ery seldom &e reasona&le to ta1 the
industry of the *reat &ody of the +eo+le in order to su++ort that
of some +arti)ular )lass of manufa)turers, yet in the (antonness
of *reat +ros+erity, (hen the +u&li) en2oys a *reater re'enue
than it 0no(s (ell (hat to do (ith, to *i'e su)h &ounties to
fa'ourite manufa)tures may, +erha+s, &e as natural as to in)ur
any other idle e1+ense- In +u&li) as (ell as in +ri'ate e1+enses,
*reat (ealth may, +erha+s, frequently &e admitted as an a+olo*y
for *reat folly- .ut there must surely &e somethin* more than
ordinary a&surdity in )ontinuin* su)h +rofusion in times of
*eneral diffi)ulty and distress-
What is )alled a &ounty is sometimes no more than a
dra(&a)0, and )onsequently is not lia&le to the same o&2e)tions
as (hat is +ro+erly a &ounty- The &ounty, for e1am+le, u+on
refined su*ar e1+orted may &e )onsidered as a dra(&a)0 of the
duties u+on the &ro(n and mus)o'ado su*ars from (hi)h it is made-
The &ounty u+on (rou*ht sil0 e1+orted, a dra(&a)0 of the duties
u+on ra( and thro(n sil0 im+orted- The &ounty u+on *un+o(der
e1+orted, a dra(&a)0 of the duties u+on &rimstone and salt+etre
im+orted- In the lan*ua*e of the )ustoms those allo(an)es only
are )alled dra(&a)0s (hi)h are *i'en u+on *oods e1+orted in the
same form in (hi)h they are im+orted- When that form has &een so
altered &y manufa)ture of any 0ind as to )ome under a ne(
denomination, they are )alled &ounties-
remiums *i'en &y the +u&li) to artists and manufa)turers
(ho e1)el in their +arti)ular o))u+ations are not lia&le to the
same o&2e)tions as &ounties- .y en)oura*in* e1traordinary
de1terity and in*enuity, they ser'e to 0ee+ u+ the emulation of
the (or0men a)tually em+loyed in those res+e)ti'e o))u+ations,
and are not )onsidera&le enou*h to turn to(ards any one of them a
*reater share of the )a+ital of the )ountry than (hat (ould *o to
it of its o(n a))ord- Their tenden)y is not to o'erturn the
natural &alan)e of em+loyments, &ut to render the (or0 (hi)h is
done in ea)h as +erfe)t and )om+lete as +ossi&le- The e1+ense of
+remiums, &esides, is 'ery triflin*/ that of &ounties 'ery *reat-
The &ounty u+on )orn alone has sometimes )ost the +u&li) in one
year more than three hundred thousand +ounds-
DI6R$SSION CONC$RNIN6 T#$ CORN TRAD$ AND CORN !AWS
I )annot )on)lude this )ha+ter )on)ernin* &ounties (ithout
o&ser'in* that the +raises (hi)h ha'e &een &esto(ed u+on the la(
(hi)h esta&lishes the &ounty u+on the e1+ortation of )orn, and
u+on that system of re*ulations (hi)h is )onne)ted (ith it, are
alto*ether unmerited- A +arti)ular e1amination of the nature of
the )orn trade, and of the +rin)i+al .ritish la(s (hi)h relate to
it- (ill suffi)iently demonstrate the truth of this assertion-
The *reat im+ortan)e of this su&2e)t must 2ustify the len*th of
the di*ression-
The trade of the )orn mer)hant is )om+osed of four different
&ran)hes, (hi)h, thou*h they may sometimes &e all )arried on &y
the same +erson, are in their o(n nature four se+arate and
distin)t trades- These are, first, the trade of the inland
dealer/ se)ondly, that of the mer)hant im+orter for home
)onsum+tion/ thirdly, that of the mer)hant e1+orter of home
+rodu)e for forei*n )onsum+tion/ and, fourthly, that of the
mer)hant )arrier, or of the im+orter of )orn in order to e1+ort
it a*ain-
I- The interest of the inland dealer, and that of the *reat
&ody of the +eo+le, ho( o++osite soe'er they may at first si*ht
a++ear, are, e'en in years of the *reatest s)ar)ity, e1a)tly the
same- It is his interest to raise the +ri)e of his )orn as hi*h
as the real s)ar)ity of the season requires, and it )an ne'er &e
his interest to raise it hi*her- .y raisin* the +ri)e he
dis)oura*es the )onsum+tion, and +uts e'ery&ody more or less, &ut
+arti)ularly the inferior ran0s of +eo+le, u+on thrift and *ood
mana*ement- If, &y raisin* it too hi*h, he dis)oura*es the
)onsum+tion so mu)h that the su++ly of the season is li0ely to *o
&eyond the )onsum+tion of the season, and to last for some time
after the ne1t )ro+ &e*ins to )ome in, he runs the ha;ard, not
only of losin* a )onsidera&le +art of his )orn &y natural )auses,
&ut of &ein* o&li*ed to sell (hat remains of it for mu)h less
than (hat he mi*ht ha'e had for it se'eral months &efore- If &y
not raisin* the +ri)e hi*h enou*h he dis)oura*es the )onsum+tion
so little that the su++ly of the season is li0ely to fall short
of the )onsum+tion of the season, he not only loses a +art of the
+rofit (hi)h he mi*ht other(ise ha'e made, &ut he e1+oses the
+eo+le to suffer &efore the end of the season, instead of the
hardshi+s of a dearth, the dreadful horrors of a famine- It is
the interest of the +eo+le that their daily, (ee0ly, and monthly
)onsum+tion should &e +ro+ortioned as e1a)tly as +ossi&le to the
su++ly of the season- The interest of the inland )orn dealer is
the same- .y su++lyin* them, as nearly as he )an 2ud*e, in this
+ro+ortion, he is li0ely to sell all his )orn for the hi*hest
+ri)e, and (ith the *reatest +rofit/ and his 0no(led*e of the
state of the )ro+, and of his daily, (ee0ly, and monthly sales,
ena&le him to 2ud*e, (ith more or less a))ura)y, ho( far they
really are su++lied in this manner- Without intendin* the
interest of the +eo+le, he is ne)essarily led, &y a re*ard to his
o(n interest, to treat them, e'en in years of s)ar)ity, +retty
mu)h in the same manner as the +rudent master of a 'essel is
sometimes o&li*ed to treat his )re(- When he foresees that
+ro'isions are li0ely to run short, he +uts them u+on short
allo(an)e- Thou*h from e1)ess of )aution he should sometimes do
this (ithout any real ne)essity, yet all the in)on'enien)es (hi)h
his )re( )an there&y suffer are in)onsidera&le in )om+arison of
the dan*er, misery, and ruin to (hi)h they mi*ht sometimes &e
e1+osed &y a less +ro'ident )ondu)t- Thou*h from e1)ess of
a'ari)e, in the same manner, the inland )orn mer)hant should
sometimes raise the +ri)e of his )orn some(hat hi*her than the
s)ar)ity of the season requires, yet all the in)on'enien)es (hi)h
the +eo+le )an suffer from this )ondu)t, (hi)h effe)tually
se)ures them from a famine in the end of the season, are
in)onsidera&le in )om+arison of (hat they mi*ht ha'e &een e1+osed
to &y a more li&eral (ay of dealin* in the &e*innin* of it- The
)orn mer)hant himself is li0ely to suffer the most &y this e1)ess
of a'ari)e/ not only from the indi*nation (hi)h it *enerally
e1)ites a*ainst him, &ut, thou*h he should es)a+e the effe)ts of
this indi*nation, from the quantity of )orn (hi)h it ne)essarily
lea'es u+on his hands in the end of the season, and (hi)h, if the
ne1t season ha++ens to +ro'e fa'oura&le, he must al(ays sell for
a mu)h lo(er +ri)e than he mi*ht other(ise ha'e had-
Were it +ossi&le, indeed, for one *reat )om+any of mer)hants
to +ossess themsel'es of the (hole )ro+ of an e1tensi'e )ountry,
it mi*ht, +erha+s, &e their interest to deal (ith it as the Dut)h
are said to do (ith the s+i)eries of the 4olu))as, to destroy or
thro( a(ay a )onsidera&le +art of it in order to 0ee+ u+ the
+ri)e of the rest- .ut it is s)ar)e +ossi&le, e'en &y the
'iolen)e of la(, to esta&lish su)h an e1tensi'e mono+oly (ith
re*ard to )orn/ and, (here'er the la( lea'es the trade free, it
is of all )ommodities the least lia&le to &e en*rossed or
mono+oli;ed &y the for)e of a fe( lar*e )a+itals, (hi)h &uy u+
the *reater +art of it- Not only its 'alue far e1)eeds (hat the
)a+itals of a fe( +ri'ate men are )a+a&le of +ur)hasin*, &ut,
su++osin* they (ere )a+a&le of +ur)hasin* it, the manner in (hi)h
it is +rodu)ed renders this +ur)hase +ra)ti)a&le- As in e'ery
)i'ilised )ountry it is the )ommodity of (hi)h the annual
)onsum+tion is the *reatest, so a *reater quantity of industry is
annually em+loyed in +rodu)in* )orn than in +rodu)in* any other
)ommodity- When it first )omes from the *round, too, it is
ne)essarily di'ided amon* a *reater num&er of o(ners than any
other )ommodity/ and these o(ners )an ne'er &e )olle)ted into one
+la)e li0e a num&er of inde+endent manufa)turers, &ut are
ne)essarily s)attered throu*h all the different )orners of the
)ountry- These first o(ners either immediately su++ly the
)onsumers in their o(n nei*h&ourhood, or they su++ly other inland
dealers (ho su++ly those )onsumers- The inland dealers in )orn,
therefore, in)ludin* &oth the farmer and the &a0er, are
ne)essarily more numerous than the dealers in any other
)ommodity, and their dis+ersed situation renders it alto*ether
im+ossi&le for them to enter into any *eneral )om&ination- If in
a year of s)ar)ity, therefore, any of them should find that he
had a *ood deal more )orn u+on hand than, at the )urrent +ri)e,
he )ould ho+e to dis+ose of &efore the end of the season, he
(ould ne'er thin0 of 0ee+in* u+ this +ri)e to his o(n loss, and
to the sole &enefit of his ri'als and )om+etitors, &ut (ould
immediately lo(er it, in order to *et rid of his )orn &efore the
ne( )ro+ &e*an to )ome in- The same moti'es, the same interests,
(hi)h (ould thus re*ulate the )ondu)t of any one dealer, (ould
re*ulate that of e'ery other, and o&li*e them all in *eneral to
sell their )orn at the +ri)e (hi)h, a))ordin* to the &est of
their 2ud*ment, (as most suita&le to the s)ar)ity or +lenty of
the season-
Whoe'er e1amines (ith attention the history of the dearths
and famines (hi)h ha'e affli)ted any +art of $uro+e, durin*
either the )ourse of the +resent or that of the t(o +re)edin*
)enturies, of se'eral of (hi)h (e ha'e +retty e1a)t a))ounts,
(ill find, I &elie'e, that a dearth ne'er has arisen from any
)om&ination amon* the inland dealers in )orn, nor from any other
)ause &ut a real s)ar)ity, o))asioned sometimes +erha+s, and in
some +arti)ular +la)es, &y the (aste of (ar, &ut in &y far the
*reatest num&er of )ases &y the fault of the seasons/ and that a
famine has ne'er arisen from any other )ause &ut the 'iolen)e of
*o'ernment attem+tin*, &y im+ro+er means, to remedy the
in)on'enien)es of a dearth-
In an e1tensi'e )orn )ountry, &et(een all the different
+arts of (hi)h there is a free )ommer)e and )ommuni)ation, the
s)ar)ity o))asioned &y the most unfa'oura&le seasons )an ne'er &e
so *reat as to +rodu)e a famine/ and the s)antiest )ro+, if
mana*ed (ith fru*ality and e)onomy, (ill maintain throu*h the
year the same num&er of +eo+le that are )ommonly fed on a more
affluent manner &y one of moderate +lenty- The seasons most
unfa'oura&le to the )ro+ are those of e1)essi'e drou*ht or
e1)essi'e rain- .ut as )orn *ro(s equally u+on hi*h and lo(
lands, u+on *rounds that are dis+osed to &e too (et, and u+on
those that are dis+osed to &e too dry, either the drou*ht or the
rain (hi)h is hurtful to one +art of the )ountry is fa'oura&le to
another/ and thou*h &oth in the (et and in the dry season the
)ro+ is a *ood deal less than in one more +ro+erly tem+ered, yet
in &oth (hat is lost in one +art of the )ountry is in some
measure )om+ensated &y (hat is *ained in the other- In ri)e
)ountries, (here the )ro+ not only requires a 'ery moist soil,
&ut (here in a )ertain +eriod of its *ro(in* it must &e laid
under (ater, the effe)ts of a drou*ht are mu)h more dismal- $'en
in su)h )ountries, ho(e'er, the drou*ht is, +erha+s, s)ar)e e'er
so uni'ersal as ne)essarily to o))asion a famine, if the
*o'ernment (ould allo( a free trade- The drou*ht in .en*al, a fe(
years a*o, mi*ht +ro&a&ly ha'e o))asioned a 'ery *reat dearth-
Some im+ro+er re*ulations, some in2udi)ious restraints im+osed &y
the ser'ants of the $ast India Com+any u+on the ri)e trade,
)ontri&uted, +erha+s, to turn that dearth into a famine-
When the *o'ernment, in order to remedy the in)on'enien)es
of a dearth, orders all the dealers to sell their )orn at (hat it
su++oses a reasona&le +ri)e, it either hinders them from &rin*in*
it to mar0et, (hi)h may sometimes +rodu)e a famine e'en in the
&e*innin* of the season/ or if they &rin* it thither, it ena&les
the +eo+le, and there&y en)oura*es them to )onsume it so fast as
must ne)essarily +rodu)e a famine &efore the end of the season-
The unlimited, unrestrained freedom of the )orn trade, as it is
the only effe)tual +re'entati'e of the miseries of a famine, so
it is the &est +alliati'e of the in)on'enien)es of a dearth/ for
the in)on'enien)es of a real s)ar)ity )annot &e remedied, they
)an only &e +alliated- No trade deser'es more the full +rote)tion
of the la(, and no trade requires it so mu)h, &e)ause no trade is
so mu)h e1+osed to +o+ular odium-
In years of s)ar)ity the inferior ran0s of +eo+le im+ute
their distress to the a'ari)e of the )orn mer)hant, (ho &e)omes
the o&2e)t of their hatred and indi*nation- Instead of ma0in*
+rofit u+on su)h o))asions, therefore, he is often in dan*er of
&ein* utterly ruined, and of ha'in* his ma*a;ines +lundered and
destroyed &y their 'iolen)e- It is in years of s)ar)ity, ho(e'er,
(hen +ri)es are hi*h, that the )orn mer)hant e1+e)ts to ma0e his
+rin)i+al +rofit- #e is *enerally in )ontra)t (ith some farmers
to furnish him for a )ertain num&er of years (ith a )ertain
quantity of )orn at a )ertain +ri)e- This )ontra)t +ri)e is
settled a))ordin* to (hat is su++osed to &e the moderate and
reasona&le, that is, the ordinary or a'era*e +ri)e, (hi)h &efore
the late years of s)ar)ity (as )ommonly a&out ei*ht8and8t(enty
shillin*s for the quarter of (heat, and for that of other *rain
in +ro+ortion- In years of s)ar)ity, therefore, the )orn mer)hant
&uys a *reat +art of his )orn for the ordinary +ri)e, and sells
it for a mu)h hi*her- That this e1traordinary +rofit, ho(e'er, is
no more than suffi)ient to +ut his trade u+on a fair le'el (ith
other trades, and to )om+ensate the many losses (hi)h he sustains
u+on other o))asions, &oth from the +erisha&le nature of the
)ommodity itself, and from the frequent and unforeseen
flu)tuations of its +ri)e, seems e'ident enou*h, from this sin*le
)ir)umstan)e, that *reat fortunes are as seldom made in this as
in any other trade- The +o+ular odium, ho(e'er, (hi)h attends it
in years of s)ar)ity, the only years in (hi)h it )an &e 'ery
+rofita&le, renders +eo+le of )hara)ter and fortune a'erse to
enter into it- It is a&andoned to an inferior set of dealers/ and
millers, &a0ers, mealmen, and meal fa)tors, to*ether (ith a
num&er of (ret)hed hu)0sters, are almost the only middle +eo+le
that, in the home mar0et, )ome &et(een the *ro(er and the
)onsumer-
The an)ient +oli)y of $uro+e, instead of dis)ountenan)in*
this +o+ular odium a*ainst a trade so &enefi)ial to the +u&li),
seems, on the )ontrary, to ha'e authori;ed and en)oura*ed it-
.y the Hth and 6th of $d(ard 5I, )- 1G, it (as ena)ted that
(hoe'er should &uy any )orn or *rain (ith intent to sell it
a*ain, should &e re+uted an unla(ful en*rosser, and should, for
the first fault, suffer t(o months= im+risonment, and forfeit the
'alue of the )orn/ for the se)ond, suffer si1 months=
im+risonment, and forfeit dou&le the 'alue/ and for the third, &e
set in the +illory, suffer im+risonment durin* the 0in*=s
+leasure, and forfeit all his *oods and )hattels- The an)ient
+oli)y of most other +arts of $uro+e (as no &etter than that of
$n*land-
Our an)estors seem to ha'e ima*ined that the +eo+le (ould
&uy their )orn )hea+er of the farmer than of the )orn mer)hant,
(ho, they (ere afraid, (ould require, o'er and a&o'e the +ri)e
(hi)h he +aid to the farmer, an e1or&itant +rofit to himself-
They endea'oured, therefore, to annihilate his trade alto*ether-
They e'en endea'oured to hinder as mu)h as +ossi&le any middle
man of any 0ind from )omin* in &et(een the *ro(er and the
)onsumer/ and this (as the meanin* of the many restraints (hi)h
they im+osed u+on the trade of those (hom they )alled 0idders or
)arriers of )orn, a trade (hi)h no&ody (as allo(ed to e1er)ise
(ithout a li)en)e as)ertainin* his qualifi)ations as a man of
+ro&ity and fair dealin*- The authority of three 2usti)es of the
+ea)e (as, &y the statute of $d(ard 5I, ne)essary in order to
*rant this li)en)e- .ut e'en this restraint (as after(ards
thou*ht insuffi)ient, and &y a statute of $li;a&eth the +ri'ile*e
of *rantin* it (as )onfined to the quarter8sessions-
The an)ient +oli)y of $uro+e endea'oured in this manner to
re*ulate a*ri)ulture, the *reat trade of the )ountry, &y ma1ims
quite different from those (hi)h it esta&lished (ith re*ard to
manufa)tures, the *reat trade of the to(ns- .y lea'in* the farmer
no other )ustomers &ut either the )onsumers or their immediate
fa)tors, the 0idders and )arriers of )orn, it endea'oured to
for)e him to e1er)ise the trade, not only of a farmer, &ut of a
)orn mer)hant or )orn retailer- On the )ontrary, it in many )ases
+rohi&ited the manufa)turer from e1er)isin* the trade of a
sho+0ee+er, or from sellin* his o(n *oods &y retail- It meant &y
the one la( to +romote the *eneral interest of the )ountry, or to
render )orn )hea+, (ithout, +erha+s, its &ein* (ell understood
ho( this (as to &e done- .y the other it meant to +romote that of
a +arti)ular order of men, the sho+0ee+ers, (ho (ould &e so mu)h
undersold &y the manufa)turer, it (as su++osed, that their trade
(ould &e ruined if he (as allo(ed to retail at all-
The manufa)turer, ho(e'er, thou*h he had &een allo(ed to
0ee+ a sho+, and to sell his o(n *oods &y retail, )ould not ha'e
undersold the )ommon sho+0ee+er- Whate'er +art of his )a+ital he
mi*ht ha'e +la)ed in his sho+, he must ha'e (ithdra(n it from his
manufa)ture- In order to )arry on his &usiness on a le'el (ith
that of other +eo+le, as he must ha'e had the +rofit of a
manufa)turer on the one +art, so he must ha'e had that of a
sho+0ee+er u+on the other- !et us su++ose, for e1am+le, that in
the +arti)ular to(n (here he li'ed, ten +er )ent (as the ordinary
+rofit &oth of manufa)turin* and sho+0ee+in* sto)0/ he must in
this )ase ha'e )har*ed u+on e'ery +ie)e of his o(n *oods (hi)h he
sold in his sho+, a +rofit of t(enty +er )ent- When he )arried
them from his (or0house to his sho+, he must ha'e 'alued them at
the +ri)e for (hi)h he )ould ha'e sold them to a dealer or
sho+0ee+er, (ho (ould ha'e &ou*ht them &y (holesale- If he 'alued
them lo(er, he lost a +art of the +rofit of his manufa)turin*
)a+ital- When a*ain he sold them from his sho+, unless he *ot the
same +ri)e at (hi)h a sho+0ee+er (ould ha'e sold them, he lost a
+art of the +rofit of his sho+0ee+in* )a+ital- Thou*h he mi*ht
a++ear, therefore, to ma0e a dou&le +rofit u+on the same +ie)e of
*oods, yet as these *oods made su))essi'ely a +art of t(o
distin)t )a+itals, he made &ut a sin*le +rofit u+on the (hole
)a+ital em+loyed a&out them/ and if he made less than his +rofit,
he (as a loser, or did not em+loy his (hole )a+ital (ith the same
ad'anta*e as the *reater +art of his nei*h&ours-
What the manufa)turer (as +rohi&ited to do, the farmer (as
in some measure en2oined to do/ to di'ide his )a+ital &et(een t(o
different em+loyments/ to 0ee+ one +art of it in his *ranaries
and sta)0 yard, for su++lyin* the o))asional demands of the
mar0et/ and to em+loy the other in the )ulti'ation of his land-
.ut as he )ould not afford to em+loy the latter for less than the
ordinary +rofits of farmin* sto)0, so he )ould as little afford
to em+loy the former for less than the ordinary +rofits of
mer)antile sto)0- Whether the sto)0 (hi)h really )arried on the
&usiness of the )orn mer)hant &elon*ed to the +erson (ho (as
)alled a farmer, or to the +erson (ho (as )alled a )orn mer)hant,
an equal +rofit (as in &oth )ases requisite in order to indemnify
its o(ner for em+loyin* it in this manner/ in order to +ut his
&usiness u+on a le'el (ith other trades, and in order to hinder
him from ha'in* an interest to )han*e it as soon as +ossi&le for
some other- The farmer, therefore, (ho (as thus for)ed to
e1er)ise the trade of a )orn mer)hant, )ould not afford to sell
his )orn )hea+er than any other )orn mer)hant (ould ha'e &een
o&li*ed to do in the )ase of a free )om+etition-
The dealer (ho )an em+loy his (hole sto)0 in one sin*le
&ran)h of &usiness has an ad'anta*e of the same 0ind (ith the
(or0man (ho )an em+loy his (hole la&our in one sin*le o+eration-
As the latter a)quires a de1terity (hi)h ena&les him, (ith the
same t(o hands, to +erform a mu)h *reater quantity of (or0/ so
the former a)quires so easy and ready a method of transa)tin* his
&usiness, of &uyin* and dis+osin* of his *oods, that (ith the
same )a+ital he )an transa)t a mu)h *reater quantity of &usiness-
As the one )an )ommonly afford his (or0 a *ood deal )hea+er, so
the other )an )ommonly afford his *oods some(hat )hea+er than if
his sto)0 and attention (ere &oth em+loyed a&out a *reater
'ariety of o&2e)ts- The *reater +art of manufa)turers )ould not
afford to retail their o(n *oods so )hea+ as a 'i*ilant and
a)ti'e sho+0ee+er, (hose sole &usiness it (as to &uy them at
(holesale and to retail them a*ain- The *reater +art of farmers
)ould still less afford to retail their o(n )orn, to su++ly the
inha&itants of a to(n, at +erha+s four or fi'e miles distan)e
from the *reater +art of them, so )hea+ as a 'i*ilant and a)ti'e
)orn mer)hant, (hose sole &usiness it (as to +ur)hase )orn &y
(holesale, to )olle)t it into a *reat ma*a;ine, and to retail it
a*ain-
The la( (hi)h +rohi&ited the manufa)turer from e1er)isin*
the trade of a sho+0ee+er endea'oured to for)e this di'ision in
the em+loyment of sto)0 to *o on faster than it mi*ht other(ise
ha'e done- The la( (hi)h o&li*ed the farmer to e1er)ise the trade
of a )orn mer)hant endea'oured to hinder it from *oin* on so
fast- .oth la(s (ere e'ident 'iolations of natural li&erty, and
therefore un2ust/ and they (ere &oth, too, as im+oliti) as they
(ere un2ust- It is the interest of e'ery so)iety that thin*s of
this 0ind should ne'er either &e for)ed or o&stru)ted- The man
(ho em+loys either his la&our or his sto)0 in a *reater 'ariety
of (ays than his situation renders ne)essary )an ne'er hurt his
nei*h&our &y undersellin* him- #e may hurt himself, and he
*enerally does so- Aa)0 of all trades (ill ne'er &e ri)h, says
the +ro'er&- .ut the la( ou*ht al(ays to trust +eo+le (ith the
)are of their o(n interest, as in their lo)al situations they
must *enerally &e a&le to 2ud*e &etter of it than the le*islator
)an do- The la(, ho(e'er, (hi)h o&li*ed the farmer to e1er)ise
the trade of a )orn mer)hant (as &y far the most +erni)ious of
the t(o-
It o&stru)ted not only that di'ision in the em+loyment of
sto)0 (hi)h is so ad'anta*eous to e'ery so)iety, &ut it
o&stru)ted li0e(ise the im+ro'ement and )ulti'ation of the land-
.y o&li*in* the farmer to )arry on t(o trades instead of one, it
for)ed him to di'ide his )a+ital into t(o +arts, of (hi)h one
only )ould &e em+loyed in )ulti'ation- .ut if he had &een at
li&erty to sell his (hole )ro+ to a )orn mer)hant as fast as he
)ould thresh it out, his (hole )a+ital mi*ht ha'e returned
immediately to the land, and ha'e &een em+loyed in &uyin* more
)attle, and hirin* more ser'ants, in order to im+ro'e and
)ulti'ate it &etter- .ut &y &ein* o&li*ed to sell his )orn &y
retail, he (as o&li*ed to 0ee+ a *reat +art of his )a+ital in his
*ranaries and sta)0 yard throu*h the year, and )ould not,
therefore, )ulti'ate so (ell as (ith the same )a+ital he mi*ht
other(ise ha'e done- This la(, therefore, ne)essarily o&stru)ted
the im+ro'ement of the land, and, instead of tendin* to render
)orn )hea+er, must ha'e tended to render it s)ar)er, and
therefore dearer, than it (ould other(ise ha'e &een-
After the &usiness of the farmer, that of the )orn mer)hant
is in reality the trade (hi)h, if +ro+erly +rote)ted and
en)oura*ed, (ould )ontri&ute the most to the raisin* of )orn- It
(ould su++ort the trade of the farmer in the same manner as the
trade of the (holesale dealer su++orts that of the manufa)turer-
The (holesale dealer, &y affordin* a ready mar0et to the
manufa)turer, &y ta0in* his *oods off his hand as fast as he )an
ma0e their +ri)e to him &efore he has made them, ena&les him to
0ee+ his (hole )a+ital, and sometimes e'en more than his (hole
)a+ital, )onstantly em+loyed in manufa)turin*, and )onsequently
to manufa)ture a mu)h *reater quantity of *oods than if he (as
o&li*ed to dis+ose of them himself to the immediate )onsumers, or
e'en to the retailers- As the )a+ital of the (holesale mer)hant,
too, is *enerally suffi)ient to re+la)e that of many
manufa)turers, this inter)ourse &et(een him and them interests
the o(ner of a lar*e )a+ital to su++ort the o(ners of a *reat
num&er of small ones, and to assist them in those losses and
misfortunes (hi)h mi*ht other(ise +ro'e ruinous to them-
An inter)ourse of the same 0ind uni'ersally esta&lished
&et(een the farmers and the )orn mer)hants (ould &e attended (ith
effe)ts equally &enefi)ial to the farmers- They (ould &e ena&led
to 0ee+ their (hole )a+itals, and e'en more than their (hole
)a+itals, )onstantly em+loyed in )ulti'ation- In )ase of any of
those a))idents, to (hi)h no trade is more lia&le than theirs,
they (ould find in their ordinary )ustomer, the (ealthy )orn
mer)hant, a +erson (ho had &oth an interest to su++ort them, and
the a&ility to do it, and they (ould not, as at +resent, &e
entirely de+endent u+on the for&earan)e of their landlord, or the
mer)y of his ste(ard- Were it +ossi&le, as +erha+s it is not, to
esta&lish this inter)ourse uni'ersally, and all at on)e, (ere it
+ossi&le to turn all at on)e the (hole farmin* sto)0 of the
0in*dom to its +ro+er &usiness, the )ulti'ation of land,
(ithdra(in* it from e'ery other em+loyment into (hi)h any +art of
it may &e at +resent di'erted, and (ere it +ossi&le, in order to
su++ort and assist u+on o))asion the o+erations of this *reat
sto)0, to +ro'ide all at on)e another sto)0 almost equally *reat,
it is not +erha+s 'ery easy to ima*ine ho( *reat, ho( e1tensi'e,
and ho( sudden (ould &e the im+ro'ement (hi)h this )han*e of
)ir)umstan)es (ould alone +rodu)e u+on the (hole fa)e of the
)ountry-
The statute of $d(ard 5I, therefore, &y +rohi&itin* as mu)h
as +ossi&le any middle man from )omin* &et(een the *ro(er and the
)onsumer, endea'oured to annihilate a trade, of (hi)h the free
e1er)ise is not only the &est +alliati'e of the in)on'enien)es of
a dearth &ut the &est +re'entati'e of that )alamity3 after the
trade of the farmer, no trade )ontri&utin* so mu)h to the *ro(in*
of )orn as that of the )orn mer)hant-
The ri*our of this la( (as after(ards softened &y se'eral
su&sequent statutes, (hi)h su))essi'ely +ermitted the en*rossin*
of )orn (hen the +ri)e of (heat should not e1)eed t(enty,
t(enty8four, thirty8t(o, and forty shillin*s the quarter- At
last, &y the 1Hth of Charles II, )- 7, the en*rossin* or &uyin*
of )orn in order to sell it a*ain, as lon* as the +ri)e of (heat
did not e1)eed forty8ei*ht shillin*s the quarter, and that of
other *rain in +ro+ortion, (as de)lared la(ful to all +ersons not
&ein* forestallers, that is, not sellin* a*ain in the same mar0et
(ithin three months- All the freedom (hi)h the trade of the
inland )orn dealer has e'er yet en2oyed (as &esto(ed u+on it &y
this statute- The statute of the 1Eth of the +resent 0in*, (hi)h
re+eals almost all the other an)ient la(s a*ainst en*rossers and
forestallers, does not re+eal the restri)tions of this +arti)ular
statute, (hi)h therefore still )ontinue in for)e-
This statute, ho(e'er, authori;es in some measure t(o 'ery
a&surd +o+ular +re2udi)es-
"irst, it su++oses that (hen the +ri)e of (heat has risen so
hi*h as forty8ei*ht shillin*s the quarter, and that of other
*rains in +ro+ortion, )orn is li0ely to &e so en*rossed as to
hurt the +eo+le- .ut from (hat has &een already said, it seems
e'ident enou*h that )orn )an at no +ri)e &e so en*rossed &y the
inland dealers as to hurt the +eo+le3 and forty8ei*ht shillin*s
the quarter, &esides, thou*h it may &e )onsidered as a 'ery hi*h
+ri)e, yet in years of s)ar)ity it is a +ri)e (hi)h frequently
ta0es +la)e immediately after har'est, (hen s)ar)e any +art of
the ne( )ro+ )an &e sold off, and (hen it is im+ossi&le e'en for
i*noran)e to su++ose that any +art of it )an &e so en*rossed as
to hurt the +eo+le-
Se)ondly, it su++oses that there is a )ertain +ri)e at (hi)h
)orn is li0ely to &e forestalled, that is, &ou*ht u+ in order to
&e sold a*ain soon after in the same mar0et, so as to hurt the
+eo+le- .ut if a mer)hant e'er &uys u+ )orn, either *oin* to a
+arti)ular mar0et or in a +arti)ular mar0et, in order to sell it
a*ain soon after in the same mar0et, it must &e &e)ause he 2ud*es
that the mar0et )annot &e so li&erally su++lied throu*h the (hole
season as u+on that +arti)ular o))asion, and that the +ri)e,
therefore, must soon rise- If he 2ud*es (ron* in this, and if the
+ri)e does not rise, he not only loses the (hole +rofit of the
sto)0 (hi)h he em+loys in this manner, &ut a +art of the sto)0
itself, &y the e1+ense and loss (hi)h ne)essarily attend the
storin* and 0ee+in* of )orn- #e hurts himself, therefore, mu)h
more essentially than he )an hurt e'en the +arti)ular +eo+le (hom
he may hinder from su++lyin* themsel'es u+on that +arti)ular
mar0et day, &e)ause they may after(ards su++ly themsel'es 2ust as
)hea+ u+on any other mar0et day- If he 2ud*es ri*ht, instead of
hurtin* the *reat &ody of the +eo+le, he renders them a most
im+ortant ser'i)e- .y ma0in* them feel the in)on'enien)ies of a
dearth some(hat earlier than they other(ise mi*ht do, he +re'ents
their feelin* them after(ards so se'erely as they )ertainly (ould
do, if the )hea+ness of +ri)e en)oura*ed them to )onsume faster
than suited the real s)ar)ity of the season- When the s)ar)ity is
real, the &est thin* that )an &e done for the +eo+le is to di'ide
the in)on'enien)ies of it as equally as +ossi&le throu*h all the
different months, and (ee0s, and days of the year- The interest
of the )orn mer)hant ma0es him study to do this as e1a)tly as he
)an3 and as no other +erson )an ha'e either the same interest, or
the same 0no(led*e, or the same a&ilities to do it so e1a)tly as
he, this most im+ortant o+eration of )ommer)e ou*ht to &e trusted
entirely to him/ or, in other (ords, the )orn trade, so far at
least as )on)erns the su++ly of the home mar0et, ou*ht to &e left
+erfe)tly free-
The +o+ular fear of en*rossin* and forestallin* may &e
)om+ared to the +o+ular terrors and sus+i)ions of (it)h)raft- The
unfortunate (ret)hes a))used of this latter )rime (ere not more
inno)ent of the misfortunes im+uted to them than those (ho ha'e
&een a))used of the former- The la( (hi)h +ut an end to all
+rose)utions a*ainst (it)h)raft, (hi)h +ut it out of any man=s
+o(er to *ratify his o(n mali)e &y a))usin* his nei*h&our of that
ima*inary )rime, seems effe)tually to ha'e +ut an end to those
fears and sus+i)ions &y ta0in* a(ay the *reat )ause (hi)h
en)oura*ed and su++orted them- The la( (hi)h should restore
entire freedom to the inland trade of )orn (ould +ro&a&ly +ro'e
as effe)tual to +ut an end to the +o+ular fears of en*rossin* and
forestallin*-
The 1Hth of Charles II, )- 7, ho(e'er, (ith all its
im+erfe)tions, has +erha+s )ontri&uted more &oth to the +lentiful
su++ly of the home mar0et, and to the in)rease of tilla*e, than
any other la( in the statute &oo0- It is from this la( that the
inland )orn trade has deri'ed all the li&erty and +rote)tion
(hi)h it has e'er yet en2oyed/ and &oth the su++ly of the home
mar0et, and the interest of tilla*e, are mu)h more effe)tually
+romoted &y the inland than either &y the im+ortation or
e1+ortation trade-
The +ro+ortion of the a'era*e quantity of all sorts of *rain
im+orted into 6reat .ritain to that of all sorts of *rain
)onsumed, it has &een )om+uted &y the author of the tra)ts u+on
the )orn trade, does not e1)eed that of one to fi'e hundred and
se'enty- "or su++lyin* the home mar0et, therefore, the im+ortan)e
of the inland trade must &e to that of the im+ortation trade as
fi'e hundred and se'enty to one-
The a'era*e quantity of all sorts of *rain e1+orted from
6reat .ritain does not, a))ordin* to the same author, e1)eed the
one8and8thirtieth +art of the annual +rodu)e- "or the
en)oura*ement of tilla*e, therefore, &y +ro'idin* a mar0et for
the home +rodu)e, the im+ortan)e of the inland trade must &e to
that of the e1+ortation-
I ha'e no *reat faith in +oliti)al arithmeti), )om+utations-
I mention them only in order to sho( of ho( mu)h less
)onsequen)e, in the o+inion of the most 2udi)ious and e1+erien)ed
+ersons, the forei*n trade of )orn is than the home trade- The
*reat )hea+ness of )orn in the years immediately +re)edin* the
esta&lishment of the &ounty may +erha+s, (ith reason, &e as)ri&ed
in some measure to the o+eration of this statute of Charles II,
(hi)h had &een ena)ted a&out fi'e8and8t(enty years &efore, and
(hi)h had therefore full time to +rodu)e its effe)t-
A 'ery fe( (ords (ill suffi)iently e1+lain all that I ha'e
to say )on)ernin* the other three &ran)hes of the )orn trade-
II- The trade of the mer)hant im+orter of forei*n )orn for
home )onsum+tion e'idently )ontri&utes to the immediate su++ly of
the home mar0et, and must so far &e immediately &enefi)ial to the
*reat &ody of the +eo+le- It tends, indeed, to lo(er some(hat the
a'era*e money +ri)e of )orn, &ut not to diminish its real 'alue,
or the quantity of la&our (hi)h it is )a+a&le of maintainin*- If
im+ortation (as at all times free, our farmers and )ountry
*entlemen (ould, +ro&a&ly, one year (ith another, *et less money
for their )orn than they do at +resent, (hen im+ortation is at
most times in effe)t +rohi&ited/ &ut the money (hi)h they *ot
(ould &e of more 'alue, (ould &uy more *oods of all other 0inds,
and (ould em+loy more la&our- Their real (ealth, their real
re'enue, therefore, (ould &e the same as at +resent, thou*h it
mi*ht &e e1+ressed &y a smaller quantity of sil'er/ and they
(ould neither &e disa&led nor dis)oura*ed from )ulti'atin* )orn
as mu)h as they do at +resent- On the )ontrary, as the rise in
the real 'alue of sil'er, in )onsequen)e of lo(erin* the money
+ri)e of )orn, lo(ers some(hat the money +ri)e of all other
)ommodities, it *i'es the industry of the )ountry, (here it ta0es
+la)e, some ad'anta*e in all forei*n mar0ets, and there&y tends
to en)oura*e and in)rease that industry- .ut the e1tent of the
home mar0et for )orn must &e in +ro+ortion to the *eneral
industry of the )ountry (here it *ro(s, or to the num&er of those
(ho +rodu)e somethin* else, and therefore ha'e somethin* else, or
(hat )omes to the same thin*, the +ri)e of somethin* else, to
*i'e in e1)han*e for )orn- .ut in e'ery )ountry the home mar0et,
as it is the nearest and most )on'enient, so is it li0e(ise the
*reatest and most im+ortant mar0et for )orn- That rise in the
real 'alue of sil'er, therefore, (hi)h is the effe)t of lo(erin*
the a'era*e money +ri)e of )orn, tends to enlar*e the *reatest
and most im+ortant mar0et for )orn, and there&y to en)oura*e,
instead of dis)oura*in*, its *ro(th-
.y the EEnd of Charles II, )- 1B, the im+ortation of (heat,
(hene'er the +ri)e in the home mar0et did not e1)eed fifty8three
shillin*s and four+en)e the quarter, (as su&2e)ted to a duty of
si1teen shillin*s the quarter, and to a duty of ei*ht shillin*s
(hene'er the +ri)e did not e1)eed four +ounds- The former of
these t(o +ri)es has, for more than a )entury +ast, ta0en +la)e
only in times of 'ery *reat s)ar)ity/ and the latter has, so far
as I 0no(, not ta0en +la)e at all- 7et, till (heat had risen
a&o'e this latter +ri)e, it (as &y this statute su&2e)ted to a
'ery hi*h duty/ and, tin it had risen a&o'e the former, to a duty
(hi)h amounted to a +rohi&ition- The im+ortation of other sorts
of *rain (as restrained at rates, and &y duties, in +ro+ortion to
the 'alue of the *rain, almost equally hi*h-L Su&sequent la(s
still further in)reased those duties-
L .efore the 1Bth of the +resent 0in*, the follo(in* (ere the duties
+aya&le u+on the im+ortation of the different sorts of *rain38
6rain Duties Duties Duties
.eans to E?s- +er qr- 1Fs- 1Cd- after till GCs- 16s- ?d- then 1Ed-
.arley to E?s- 1Fs- 1Cd- BEs- 16s- 1Ed-
4alt is +rohi&ited &y the annual 4alt8ta1 .ill-
Oats to 16s- Hs- 1Cd- after F 1DEd-
ease to GCs- 16s- 1Cd- after F BDGd-
Rye to B6s- 1Fs- 1Cd- till GCs- 16s- ?d- then 1Ed-
Wheat to GGs- E1s- 1Cd- till HBs- Gd- 17s- then ?s-
till G l- and after that a&out 1s- Gd-
.u)0(heat to BEs- +er qr- to +ay 16s-
These different duties (ere im+osed, +artly &y the FEnd of Charles
II, in +la)e of the Old Su&sidy, +artly &y the Ne( Su&sidy, &y the One8third
and T(o8thirds Su&sidy, and &y the Su&sidy, 17G7-
The distress (hi)h, in years of s)ar)ity, the stri)t
e1e)ution of those la(s mi*ht ha'e &rou*ht u+on the +eo+le, (ould
+ro&a&ly ha'e &een 'ery *reat- .ut, u+on su)h o))asions, its
e1e)ution (as *enerally sus+ended &y tem+orary statutes, (hi)h
+ermitted, for a limited time, the im+ortation of forei*n )orn-
The ne)essity of these tem+orary statutes suffi)iently
demonstrates the im+ro+riety of this *eneral one-
These restraints u+on im+ortation, thou*h +rior to the
esta&lishment of the &ounty, (ere di)tated &y the same s+irit, &y
the same +rin)i+les, (hi)h after(ards ena)ted that re*ulation-
#o( hurtful soe'er in themsel'es, these or some other restraints
u+on im+ortation &e)ame ne)essary in )onsequen)e of that
re*ulation- If, (hen (heat (as either &elo( forty8ei*ht shillin*s
the quarter, or not mu)h a&o'e it, forei*n )orn )ould ha'e &een
im+orted either duty free, or u+on +ayin* only a small duty, it
mi*ht ha'e &een e1+orted a*ain, (ith the &enefit of the &ounty,
to the *reat loss of the +u&li) re'enue, and to the entire
+er'ersion of the institution, of (hi)h the o&2e)t (as to e1tend
the mar0et for the home *ro(th, not that for the *ro(th of
forei*n )ountries-
III- The trade of the mer)hant e1+orter of )orn for forei*n
)onsum+tion )ertainly does not )ontri&ute dire)tly to the
+lentiful su++ly of the home mar0et- It does so, ho(e'er,
indire)tly- "rom (hate'er sour)e this su++ly may &e usually
dra(n, (hether from home *ro(th or from forei*n im+ortation,
unless more )orn is either usually *ro(n, or usually im+orted
into the )ountry, than (hat is usually )onsumed in it, the su++ly
of the home mar0et )an ne'er &e 'ery +lentiful- .ut unless the
sur+lus )an in all ordinary )ases &e e1+orted, the *ro(ers (ill
&e )areful ne'er to *ro( more, and the im+orters ne'er to im+ort
more, than (hat the &are )onsum+tion of the home mar0et requires-
That mar0et (ill 'ery seldom &e o'ersto)0ed/ &ut it (ill
*enerally &e understo)0ed, the +eo+le (hose &usiness it is to
su++ly it &ein* *enerally afraid lest their *oods should &e left
u+on their hands- The +rohi&ition of e1+ortation limits the
im+ro'ement and )ulti'ation of the )ountry to (hat the su++ly of
its o(n inha&itants requires- The freedom of e1+ortation ena&les
it to e1tend )ulti'ation for the su++ly of forei*n nations-
.y the 1Eth of Charles II, )- G, the e1+ortation of )orn (as
+ermitted (hene'er the +ri)e of (heat did not e1)eed forty
shillin*s the quarter, and that of other *rain in +ro+ortion- .y
the 1Hth of the same +rin)e, this li&erty (as e1tended till the
+ri)e of (heat e1)eeded forty8ei*ht shillin*s the quarter/ and &y
the EEnd, to all hi*her +ri)es- A +ounda*e, indeed, (as to &e
+aid to the 0in* u+on su)h e1+ortation- .ut all *rain (as rated
so lo( in the &oo0 of rates that this +ounda*e amounted only u+on
(heat to a shillin*, u+on oats to four+en)e, and u+on all other
*rain to si1+en)e the quarter- .y the 1st of William and 4ary,
the a)t (hi)h esta&lished the &ounty, this small duty (as
'irtually ta0en off (hene'er the +ri)e of (heat did not e1)eed,
forty8ei*ht shillin*s the quarter/ and &y the 11th and lEth of
William III, )- EC, it (as e1+ressly ta0en off at all hi*her
+ri)es-
The trade of the mer)hant e1+orter (as, in this manner, not
only en)oura*ed &y a &ounty, &ut rendered mu)h more free than
that of the inland dealer- .y the last of these statutes, )orn
)ould &e en*rossed at any +ri)e for e1+ortation, &ut it )ould not
&e en*rossed for inland sale e1)e+t (hen the +ri)e did not e1)eed
forty8ei*ht shillin*s the quarter- The interest of the inland
dealer, ho(e'er, it has already &een sho(n, )an ne'er &e o++osite
to that of the *reat &ody of the +eo+le- That of the mer)hant
e1+orter may, and in fa)t sometimes is- If, (hile his o(n )ountry
la&ours under a dearth, a nei*h&ourin* )ountry should &e
affli)ted (ith a famine, it mi*ht &e his interest to )arry )orn
to the latter )ountry in su)h quantities as mi*ht 'ery mu)h
a**ra'ate the )alamities of the dearth- The +lentiful su++ly of
the home mar0et (as not the dire)t o&2e)t of those statutes/ &ut,
under the +reten)e of en)oura*in* a*ri)ulture, to raise the money
+ri)e of )orn as hi*h as +ossi&le, and there&y to o))asion, as
mu)h as +ossi&le, a )onstant dearth in the home mar0et- .y the
dis)oura*ement of im+ortation, the su++ly of that mar0et, e'en in
times of *reat s)ar)ity, (as )onfined to the home *ro(th/ and &y
the en)oura*ement of e1+ortation, (hen the +ri)e (as so hi*h as
forty8ei*ht shillin*s the quarter, that mar0et (as not, e'en in
times of )onsidera&le s)ar)ity, allo(ed to en2oy the (hole of
that *ro(th- The tem+orary la(s, +rohi&itin* for a limited time
the e1+ortation of )orn, and ta0in* off for a limited time the
duties u+on its im+ortation, e1+edients to (hi)h 6reat .ritain
has &een o&li*ed so frequently to ha'e re)ourse, suffi)iently
demonstrate the im+ro+riety of her *eneral system- #ad that
system &een *ood, she (ould not so frequently ha'e &een redu)ed
to the ne)essity of de+artin* from it-
Were all nations to follo( the li&eral system of free
e1+ortation and free im+ortation, the different states into (hi)h
a *reat )ontinent (as di'ided (ould so far resem&le the different
+ro'in)es of a *reat em+ire- As amon* the different +ro'in)es of
a *reat em+ire the freedom of the inland trade a++ears, &oth from
reason and e1+erien)e, not only the &est +alliati'e of a dearth,
&ut the most effe)tual +re'entati'e of a famine/ so (ould the
freedom of the e1+ortation and im+ortation trade &e amon* the
different states into (hi)h a *reat )ontinent (as di'ided- The
lar*er the )ontinent, the easier the )ommuni)ation throu*h all
the different +arts of it, &oth &y land and &y (ater, the less
(ould any one +arti)ular +art of it e'er &e e1+osed to either of
these )alamities, the s)ar)ity of any one )ountry &ein* more
li0ely to &e relie'ed &y the +lenty of some other- .ut 'ery fe(
)ountries ha'e entirely ado+ted this li&eral system- The freedom
of the )orn trade is almost e'ery(here more or less restrained,
and, in many )ountries, is )onfined &y su)h a&surd re*ulations as
frequently a**ra'ate the una'oida&le misfortune of a dearth into
the dreadful )alamity of a famine- The demand of su)h )ountries
for )orn may frequently &e)ome so *reat and so ur*ent that a
small state in their nei*h&ourhood, (hi)h ha++ened at the same
time to &e la&ourin* under some de*ree of dearth, )ould not
'enture to su++ly them (ithout e1+osin* itself to the li0e
dreadful )alamity- The 'ery &ad +oli)y of one )ountry may thus
render it in some measure dan*erous and im+rudent to esta&lish
(hat (ould other(ise &e the &est +oli)y in another- The unlimited
freedom of e1+ortation, ho(e'er, (ould &e mu)h less dan*erous in
*reat states, in (hi)h the *ro(th &ein* mu)h *reater, the su++ly
)ould seldom &e mu)h affe)ted &y any quantity of )orn that (as
li0ely to &e e1+orted- In a S(iss )anton, or in some of the
little states of Italy, it may +erha+s sometimes &e ne)essary to
restrain the e1+ortation of )orn- In su)h *reat )ountries as
"ran)e or $n*land it s)ar)e e'er )an- To hinder, &esides, the
farmer from sendin* his *oods at all times to the &est mar0et is
e'idently to sa)rifi)e the ordinary la(s of 2usti)e to an idea of
+u&li) utility, to a sort of reasons of state/ an a)t of
le*islati'e authority (hi)h ou*ht to &e e1er)ised only, (hi)h )an
&e +ardoned only in )ases of the most ur*ent ne)essity- The +ri)e
at (hi)h the e1+ortation of )orn is +rohi&ited, if it is e'er to
&e +rohi&ited, ou*ht al(ays to &e a 'ery hi*h +ri)e-
The la(s )on)ernin* )orn may e'ery(here &e )om+ared to the
la(s )on)ernin* reli*ion- The +eo+le feel themsel'es so mu)h
interested in (hat relates either of their su&sisten)e in this
life, or to their ha++iness in a life to )ome, that *o'ernment
must yield to their +re2udi)es, and, in order to +reser'e the
+u&li) tranquillity, esta&lish that system (hi)h they a++ro'e of-
It is u+on this a))ount, +erha+s, that (e so seldom find a
reasona&le system esta&lished (ith re*ard to either of those t(o
)a+ital o&2e)ts-
I5- The trade of the mer)hant )arrier, or of the im+orter of
forei*n )orn in order to e1+ort it a*ain, )ontri&utes to the
+lentiful su++ly of the home mar0et- It is not indeed the dire)t
+ur+ose of his trade to sell his )orn there- .ut he (ill
*enerally &e (illin* to do so, and e'en for a *ood deal less
money than he mi*ht e1+e)t in a forei*n mar0et/ &e)ause he sa'es
in this manner the e1+ense of loadin* and unloadin*, of frei*ht
and insuran)e- The inha&itants of the )ountry (hi)h, &y means of
the )arryin* trade, &e)omes the ma*a;ine and storehouse for the
su++ly of other )ountries )an 'ery seldom &e in (ant themsel'es-
Thou*h the )arryin* trade mi*ht thus )ontri&ute to redu)e the
a'era*e money +ri)e of )orn in the home mar0et, it (ould not
there&y lo(er its real 'alue- It (ould only raise some(hat the
real 'alue of sil'er-
The )arryin* trade (as in effe)t +rohi&ited in 6reat
.ritain, u+on all ordinary o))asions, &y the hi*h duties u+on the
im+ortation of forei*n )orn, of the *reater +art of (hi)h there
(as no dra(&a)0/ and u+on e1traordinary o))asions, (hen a
s)ar)ity made it ne)essary to sus+end those duties &y tem+orary
statutes, e1+ortation (as al(ays +rohi&ited- .y this system of
la(s, therefore, the )arryin* trade (as in effe)t +rohi&ited u+on
all o))asions-
That system of la(s, therefore, (hi)h is )onne)ted (ith the
esta&lishment of the &ounty, seems to deser'e no +art of the
+raise (hi)h has &een &esto(ed u+on it- The im+ro'ement and
+ros+erity of 6reat .ritain, (hi)h has &een so often as)ri&ed to
those la(s, may 'ery easily &e a))ounted for &y other )auses-
That se)urity (hi)h the la(s in 6reat .ritain *i'e to e'ery man
that he shall en2oy the fruits of his o(n la&our is alone
suffi)ient to ma0e any )ountry flourish, not(ithstandin* these
and t(enty other a&surd re*ulations of )ommer)e/ and this
se)urity (as +erfe)ted &y the re'olution mu)h a&out the same time
that the &ounty (as esta&lished- The natural effort of e'ery
indi'idual to &etter his o(n )ondition, (hen suffered to e1ert
itself (ith freedom and se)urity is so +o(erful a +rin)i+le that
it is alone, and (ithout any assistan)e, not only )a+a&le of
)arryin* on the so)iety to (ealth and +ros+erity, &ut of
surmountin* a hundred im+ertinent o&stru)tions (ith (hi)h the
folly of human la(s too often in)um&ers its o+erations/ thou*h
the effe)t of these o&stru)tions is al(ays more or less either to
en)roa)h u+on its freedom, or to diminish its se)urity- In 6reat
.ritain industry is +erfe)tly se)ure/ and thou*h it is far from
&ein* +erfe)tly free, it is as free or freer than in any other
+art of $uro+e-
Thou*h the +eriod of the *reatest +ros+erity and im+ro'ement
of 6reat .ritain has &een +osterior to that system of la(s (hi)h
is )onne)ted (ith the &ounty, (e must not u+on that a))ount
im+ute it to those la(s- It has &een +osterior li0e(ise to the
national de&t- .ut the national de&t has most assuredly not &een
the )ause of it-
Thou*h the system of la(s (hi)h is )onne)ted (ith the &ounty
has e1a)tly the same tenden)y of tenden)y (ith the +oli)e of
S+ain and ortu*al, to lo(er some(hat the 'alue of the +re)ious
metals in the )ountry (here it ta0es +la)e, yet 6reat .ritain is
)ertainly one of the ri)hest )ountries in $uro+e, (hile S+ain and
ortu*al are +erha+s amon* the most &e**arly- This differen)e of
situation, ho(e'er, may easily &e a))ounted for from t(o
different )auses- "irst, the ta1 of S+ain, the +rohi&ition in
ortu*al of e1+ortin* *old and sil'er, and the 'i*ilant +oli)e
(hi)h (at)hes o'er the e1e)ution of those la(s, must, in t(o 'ery
+oor )ountries, (hi)h &et(een them im+ort annually u+(ards of si1
millions sterlin*, o+erate not only more dire)tly &ut mu)h more
for)i&ly in redu)in* the 'alue of those metals there than the
)orn la(s )an do in 6reat .ritain- And, se)ondly, this &ad +oli)y
is not in those )ountries )ounter&alan)ed &y the *eneral li&erty
and se)urity of the +eo+le- Industry is there neither free nor
se)ure, and the )i'il and e))lesiasti)al *o'ernments of &oth
S+ain and ortu*al are su)h as (ould alone &e suffi)ient to
+er+etuate their +resent state of +o'erty, e'en thou*h their
re*ulations of )ommer)e (ere as (ise as the *reater +art of them
are a&surd and foolish-
The 1Bth of the +resent 0in*, )- GB, seems to ha'e
esta&lished a ne( system (ith re*ard to the )orn la(s in many
res+e)ts &etter than the an)ient one, &ut in one or t(o res+e)ts
+erha+s not quite so *ood-
.y this statute the hi*h duties u+on im+ortations for home
)onsum+tion are ta0en off so soon as the +ri)e of middlin* (heat
rises to forty8ei*ht shillin*s the quarter/ that of middlin* rye,
+ease or &eans, to thirty8t(o shillin*s/ that of &arley to
t(enty8four shillin*s/ and that of oats to si1teen shillin*s/ and
instead of them a small duty is im+osed of only si1+en)e u+on the
quarter of (heat, and u+on that of other *rain in +ro+ortion-
With re*ard to all these different sorts of *rain, &ut
+arti)ularly (ith re*ard to (heat, the home mar0et is thus o+ened
to forei*n su++lies at +ri)es )onsidera&ly lo(er than &efore-
.y the same statute the old &ounty of fi'e shillin*s u+on
the e1+ortation of (heat )eases so soon as the +ri)e rises to
forty8four shillin*s the quarter, instead of forty8ei*ht, the
+ri)e at (hi)h it )eased &efore/ that of t(o shillin*s and
si1+en)e u+on the e1+ortation of &arley )eases so soon as the
+ri)e rises to t(enty8t(o shillin*s, instead of t(enty8four, the
+ri)e at (hi)h it )eased &efore/ that of t(o shillin*s and
si1+en)e u+on the e1+ortation of oatmeal )eases so soon as the
+ri)e rises to fourteen shillin*s, instead of fifteen, the +ri)e
at (hi)h it )eased &efore- The &ounty u+on rye is redu)ed from
three shillin*s and si1+en)e to three shillin*s, and it )eases so
soon as the +ri)e rises to t(enty8ei*ht shillin*s instead of
thirty8t(o, the +ri)e at (hi)h it )eased &efore- If &ounties are
as im+ro+er as I ha'e endea'oured to +ro'e them to &e, the sooner
they )ease, and the lo(er they are, so mu)h the &etter-
The same statute +ermits, at the lo(est +ri)es, the
im+ortation of )orn, in order to &e e1+orted a*ain duty free,
+ro'ided it is in the meantime lod*ed in a (arehouse under the
2oint lo)0s of the 0in* and the im+orter- This li&erty, indeed,
e1tends to no more than t(enty8fi'e of the different +orts of
6reat .ritain- They are, ho(e'er, the +rin)i+al ones, and there
may not, +erha+s, &e (arehouses +ro+er for this +ur+ose in the
*reater +art of the others-
So far this la( seems e'idently an im+ro'ement u+on the
an)ient system-
.ut &y the same la( a &ounty of t(o shillin*s the quarter is
*i'en for the e1+ortation of oats (hene'er the +ri)e does not
e1)eed fourteen shillin*s- No &ounty had e'er &een *i'en &efore
for the e1+ortation of this *rain, no more than for that of +ease
or &eans-
.y the same la(, too, the e1+ortation of (heat is +rohi&ited
so soon as the +ri)e rises to forty8four shillin*s the quarter/
that of rye so soon as it rises to t(enty8ei*ht shillin*s/ that
of &arley so soon as it rises to t(enty8t(o shillin*s/ and that
of oats so soon as they rise to fourteen shillin*s- Those se'eral
+ri)es seem all of them a *ood deal too lo(, and there seems to
&e an im+ro+riety, &esides, in +rohi&itin* e1+ortation alto*ether
at those +re)ise +ri)es at (hi)h that &ounty, (hi)h (as *i'en in
order to for)e it, is (ithdra(n- The &ounty ou*ht )ertainly
either to ha'e &een (ithdra(n at a mu)h lo(er +ri)e, or
e1+ortation ou*ht to ha'e &een allo(ed at a mu)h hi*her-
So far, therefore, this la( seems to &e inferior to the
an)ient system- With all its im+erfe)tions, ho(e'er, (e may
+erha+s say of it (hat (as said of the la(s of Solon, that,
thou*h not the &est in itself, it is the &est (hi)h the
interests, +re2udi)es, and tem+er of the times (ould admit of- It
may +erha+s in due time +re+are the (ay for a &etter-
C#AT$R 5I
Of Treaties of Commer)e
W#$N a nation &inds itself &y treaty either to +ermit the
entry of )ertain *oods from one forei*n )ountry (hi)h it
+rohi&its from all others, or to e1em+t the *oods of one )ountry
from duties to (hi)h it su&2e)ts those of all others, the
)ountry, or at least the mer)hants and manufa)turers of the
)ountry, (hose )ommer)e is so fa'oured, must ne)essarily deri'e
*reat ad'anta*e from the treaty- Those mer)hants and
manufa)turers en2oy a sort of mono+oly in the )ountry (hi)h is so
indul*ent to them- That )ountry &e)omes a mar0et &oth more
e1tensi'e and more ad'anta*eous for their *oods3 more e1tensi'e,
&e)ause the *oods of other nations &ein* either e1)luded or
su&2e)ted to hea'ier duties, it ta0es off a *reater quantity of
theirs3 more ad'anta*eous, &e)ause the mer)hants of the fa'oured
)ountry, en2oyin* a sort of mono+oly there, (ill often sell their
*oods for a &etter +ri)e than if e1+osed to the free )om+etition
of all other nations-
Su)h treaties, ho(e'er, thou*h they may &e ad'anta*eous to
the mer)hants and manufa)turers of the fa'oured, are ne)essarily
disad'anta*eous to those of the fa'ourin* )ountry- A mono+oly is
thus *ranted a*ainst them to a forei*n nation/ and they must
frequently &uy the forei*n *oods they ha'e o))asion for dearer
than if the free )om+etition of other nations (as admitted- That
+art of its o(n +rodu)e (ith (hi)h su)h a nation +ur)hases
forei*n *oods must )onsequently &e sold )hea+er, &e)ause (hen t(o
thin*s are e1)han*ed for one another, the )hea+ness of the one is
a ne)essary )onsequen)e, or rather the same thin* (ith the
dearness of the other- The e1)han*ea&le 'alue of its annual
+rodu)e, therefore, is li0ely to &e diminished &y e'ery su)h
treaty- This diminution, ho(e'er, )an s)ar)e amount to any
+ositi'e loss, &ut only to a lessenin* of the *ain (hi)h it mi*ht
other(ise ma0e- Thou*h it sells its *oods )hea+er than it
other(ise mi*ht do, it (ill not +ro&a&ly sell them for less than
they )ost/ nor, as in the )ase of &ounties, for a +ri)e (hi)h
(ill not re+la)e the )a+ital em+loyed in &rin*in* them to mar0et,
to*ether (ith the ordinary +rofits of sto)0- The trade )ould not
*o on lon* if it did- $'en the fa'ourin* )ountry, therefore, may
still *ain &y the trade, thou*h less than if there (as a free
)om+etition-
Some treaties of )ommer)e, ho(e'er, ha'e &een su++osed
ad'anta*eous u+on +rin)i+les 'ery different from these/ and a
)ommer)ial )ountry has sometimes *ranted a mono+oly of this 0ind
a*ainst itself to )ertain *oods of a forei*n nation, &e)ause it
e1+e)ted that in the (hole )ommer)e &et(een them, it (ould
annually sell more than it (ould &uy, and that a &alan)e in *old
and sil'er (ould &e annually returned to it- It is u+on this
+rin)i+le that the treaty of )ommer)e &et(een $n*land and
ortu*al, )on)luded in 17CB &y 4r- 4ethuen, has &een so mu)h
)ommended- The follo(in* is a literal translation of that treaty,
(hi)h )onsists of three arti)les only-
ART- I-
#is sa)red royal ma2esty of ortu*al +romises, &oth in his
o(n name, and that of his su))essors, to admit, for e'er
hereafter, into ortu*al, the (oollen )loths, and the rest of the
(oollen manufa)tures of the .ritish, as (as a))ustomed, till they
(ere +rohi&ited &y the la(/ ne'ertheless u+on this )ondition3
ART- II-
That is to say, that her sa)red royal ma2esty of 6reat
.ritain shall, in her o(n name, and that of her su))essors, &e
o&li*ed, for e'er hereafter, to admit the (ines of the *ro(th of
ortu*al into .ritain/ so that at no time, (hether there shall &e
+ea)e or (ar &et(een the 0in*doms of .ritain and "ran)e, anythin*
more shall &e demanded for these (ines &y the name of )ustom or
duty, or &y (hatsoe'er other title, dire)tly or indire)tly,
(hether they shall &e im+orted into 6reat .ritain in or
ho*sheads, or other )as0s, than (hat shall &e demanded for the
li0e quantity or measure of "ren)h (ine, dedu)tin* or a&atin* a
third +art of the )ustom or duty- .ut if at any time this
dedu)tion or a&atement of )ustoms, (hi)h is to &e made as
aforesaid, shall in any manner &e attem+ted and +re2udi)ed, it
shall &e 2ust and la(ful for his sa)red royal ma2esty of
ortu*al, a*ain to +rohi&it the (oollen )loths, and the rest of
the .ritish (oollen manufa)tures-
ART- III-
The most e1)ellent lords the +leni+otentiaries +romise and
ta0e u+on themsel'es, that their a&o'e named masters shall ratify
this treaty/ and (ithin the s+a)e of t(o months the ratifi)ations
shall &e e1)han*ed-
.y this treaty the )ro(n of ortu*al &e)omes &ound to admit
the $n*lish (oollens u+on the same footin* as &efore the
+rohi&ition/ that is, not to raise the duties (hi)h had &een +aid
&efore that time- .ut it does not &e)ome &ound to admit them u+on
any &etter terms than those of any other nation, of "ran)e or
#olland for e1am+le- The )ro(n of 6reat .ritain, on the )ontrary,
&e)omes &ound to admit the (ines of ortu*al u+on +ayin* only
t(o8thirds of the duty (hi)h is +aid for those of "ran)e, the
(ines most li0ely to )ome into )om+etition (ith them- So far this
treaty, therefore, is e'idently ad'anta*eous to ortu*al, and
disad'anta*eous to 6reat .ritain-
It has &een )ele&rated, ho(e'er, as a master+ie)e of the
)ommer)ial +oli)y of $n*land- ortu*al re)ei'es annually from the
.ra;ils a *reater quantity of *old than )an &e em+loyed in its
domesti) )ommer)e, (hether in the sha+e of )oin or of +late- The
sur+lus is too 'alua&le to &e allo(ed to lie idle and lo)0ed u+
in )offers, and as it )an find no ad'anta*eous mar0et at home, it
must, not(ithstandin* any +rohi&ition, &e sent a&road, and
e1)han*ed for somethin* for (hi)h there is a more ad'anta*eous
mar0et at home- A lar*e share of it )omes annually to $n*land, in
return either for $n*lish *oods, or for those of other $uro+ean
nations that re)ei'e their returns throu*h $n*land- 4r- .aretti
(as informed that the (ee0ly +a)0et8&oat from !is&on &rin*s, one
(ee0 (ith another, more than fifty thousand +ounds in *old to
$n*land- The sum had +ro&a&ly &een e1a**erated- It (ould amount
to more than t(o millions si1 hundred thousand +ounds a year,
(hi)h is more than the .ra;ils are su++osed to afford-
Our mer)hants (ere some years a*o out of humour (ith the
)ro(n of ortu*al- Some +ri'ile*es (hi)h had &een *ranted them,
not &y treaty, &ut &y the free *ra)e of that )ro(n, at the
soli)itation indeed, it is +ro&a&le, and in return for mu)h
*reater fa'ours, defen)e and +rote)tion, from the )ro(n of 6reat
.ritain had &een either infrin*ed or re'o0ed- The +eo+le,
therefore, usually most interested in )ele&ratin* the ortu*al
trade (ere then rather dis+osed to re+resent it as less
ad'anta*eous than it had )ommonly &een ima*ined- The far *reater
+art, almost the (hole, they +retended, of this annual
im+ortation of *old, (as not on a))ount of 6reat .ritain, &ut of
other $uro+ean nations/ the fruits and (ines of ortu*al annually
im+orted into 6reat .ritain nearly )om+ensatin* the 'alue of the
.ritish *oods sent thither-
!et us su++ose, ho(e'er, that the (hole (as on a))ount of
6reat .ritain, and that it amounted to a still *reater sum than
4r- .aretti seems to ima*ine/ this trade (ould not, u+on that
a))ount, &e more ad'anta*eous than any other in (hi)h, for the
same 'alue sent out, (e re)ei'ed an equal 'alue of )onsuma&le
*oods in return-
It is &ut a 'ery small +art of this im+ortation (hi)h, it
)an &e su++osed, is em+loyed as an annual addition either to the
+late or to the )oin of the 0in*dom- The rest must all &e sent
a&road and e1)han*ed for )onsuma&le *oods of some 0ind or other-
.ut if those )onsuma&le *oods (ere +ur)hased dire)tly (ith the
+rodu)e of $n*lish industry, it (ould &e more for the ad'anta*e
of $n*land than first to +ur)hase (ith that +rodu)e the *old of
ortu*al, and after(ards to +ur)hase (ith that *old those
)onsuma&le *oods- A dire)t forei*n trade of )onsum+tion is al(ays
more ad'anta*eous than a round8a&out one/ and to &rin* the same
'alue of forei*n *oods to the home mar0et, requires a mu)h
smaller )a+ital in the one (ay than in the other- If a smaller
share of its industry, therefore, had &een em+loyed in +rodu)in*
*oods fit for the ortu*al mar0et, and a *reater in +rodu)in*
those fit for the other mar0ets, (here those )onsuma&le *oods for
(hi)h there is a demand in 6reat .ritain are to &e had, it (ould
ha'e &een more for the ad'anta*e of $n*land- To +ro)ure &oth the
*old, (hi)h it (ants for its o(n use, and the )onsuma&le *oods,
(ould, in this (ay, em+loy a mu)h smaller )a+ital than at
+resent- There (ould &e a s+are )a+ital, therefore, to &e
em+loyed for other +ur+oses, in e1)itin* an additional quantity
of industry, and in raisin* a *reater annual +rodu)e-
Thou*h .ritain (ere entirely e1)luded from the ortu*al
trade, it )ould find 'ery little diffi)ulty in +ro)urin* all the
annual su++lies of *old (hi)h it (ants, either for the +ur+oses
of +late, or of )oin, or of forei*n trade- 6old, li0e e'ery other
)ommodity, is al(ays some(here or another to &e *ot for its 'alue
&y those (ho ha'e that 'alue to *i'e for it- The annual sur+lus
of *old in ortu*al, &esides, (ould still &e sent a&road, and
thou*h not )arried a(ay &y 6reat .ritain, (ould &e )arried a(ay
&y some other nation, (hi)h (ould &e *lad to sell it a*ain for
its +ri)e, in the same manner as 6reat .ritain does at +resent-
In &uyin* *old of ortu*al, indeed, (e &uy it at the first hand/
(hereas, in &uyin* it of any other nation, e1)e+t S+ain, (e
should &uy it at the se)ond, and mi*ht +ay some(hat dearer- This
differen)e, ho(e'er, (ould surely &e too insi*nifi)ant to deser'e
the +u&li) attention-
Almost all our *old, it is said, )omes from ortu*al- With
other nations the &alan)e of trade is either a*ainst us, or not
mu)h in our fa'our- .ut (e should remem&er that the more *old (e
im+ort from one )ountry, the less (e must ne)essarily im+ort from
all others- The effe)tual demand for *old, li0e that for e'ery
other )ommodity, is in e'ery )ountry limited to a )ertain
quantity- If nine8tenths of this quantity are im+orted from one
)ountry, there remains a tenth only to &e im+orted from all
others- The more *old &esides that is annually im+orted from some
+arti)ular )ountries, o'er and a&o'e (hat is requisite for +late
and for )oin, the more must ne)essarily &e e1+orted to some
others/ and the more that most insi*nifi)ant o&2e)t of modern
+oli)y, the &alan)e of trade, a++ears to &e in our fa'our (ith
some +arti)ular )ountries, the more it must ne)essarily a++ear to
&e a*ainst us (ith many others-
It (as u+on this silly notion, ho(e'er, that $n*land )ould
not su&sist (ithout the ortu*al trade, that, to(ards the end of
the late (ar, "ran)e and S+ain, (ithout +retendin* either offen)e
or +ro'o)ation, required the %in* of ortu*al to e1)lude all
.ritish shi+s from his +orts, and for the se)urity of this
e1)lusion, to re)ei'e into them "ren)h or S+anish *arrisons- #ad
the 0in* of ortu*al su&mitted to those i*nominious terms (hi)h
his &rother8in8la( the 0in* of S+ain +ro+osed to him, .ritain
(ould ha'e &een freed from a mu)h *reater in)on'enien)y than the
loss of the ortu*al trade, the &urden of su++ortin* a 'ery (ea0
ally, so un+ro'ided of e'erythin* for his o(n defen)e that the
(hole +o(er of $n*land, had it &een dire)ted to that sin*le
+ur+ose, )ould s)ar)e +erha+s ha'e defended him for another
)am+ai*n- The loss of the ortu*al trade (ould, no dou&t, ha'e
o))asioned a )onsidera&le em&arrassment to the mer)hants at that
time en*a*ed in it, (ho mi*ht not, +erha+s, ha'e found out, for a
year or t(o, any other equally ad'anta*eous method of em+loyin*
their )a+itals/ and in this (ould +ro&a&ly ha'e )onsisted all the
in)on'enien)y (hi)h $n*land )ould ha'e suffered from this nota&le
+ie)e of )ommer)ial +oli)y-
The *reat annual im+ortation of *old and sil'er is neither
for the +ur+ose of +late nor of )oin, &ut of forei*n trade- A
round8a&out forei*n trade of )onsum+tion )an &e )arried on more
ad'anta*eously &y means of these metals than of almost any other
*oods- As they are the uni'ersal instruments of )ommer)e, they
are more readily re)ei'ed in return for all )ommodities than any
other *oods/ and on a))ount of their small &ul0 and *reat 'alue,
it )osts less to trans+ort them &a)0(ard and for(ard from one
+la)e to another than almost any other sort of mer)handise, and
they lose less of their 'alue &y &ein* so trans+orted- Of all the
)ommodities, therefore, (hi)h are &ou*ht in one forei*n )ountry,
for no other +ur+ose &ut to &e sold or e1)han*ed a*ain for some
other *oods in another, there are none so )on'enient as *old and
sil'er- In fa)ilitatin* all the different round8a&out forei*n
trades of )onsum+tion (hi)h are )arried on in 6reat .ritain
)onsists the +rin)i+al ad'anta*e of the ortu*al trade/ and
thou*h it is not a )a+ital ad'anta*e, it is no dou&t a
)onsidera&le one-
That any annual addition (hi)h, it )an reasona&ly &e
su++osed, is made either to the +late or to the )oin of the
0in*dom, )ould require &ut a 'ery small annual im+ortation of
*old and sil'er, seems e'ident enou*h/ and thou*h (e had no
dire)t trade (ith ortu*al, this small quantity )ould al(ays,
some(here or another, &e 'ery easily *ot-
Thou*h the *oldsmith=s trade &e 'ery )onsidera&le in 6reat
.ritain, the far- *reater +art of the ne( +late (hi)h they
annually sell is made from other old +late melted do(n/ so that
the addition annually made to the (hole +late of the 0in*dom
)annot &e 'ery *reat, and )ould require &ut a 'ery small annual
im+ortation-
It is the same )ase (ith the )oin- No&ody ima*ines, I
&elie'e, that e'en the *reater +art of the annual )oina*e,
amountin*, for ten years to*ether, &efore the late reformation of
the *old )oin, to u+(ards of ei*ht hundred thousand +ounds a year
in *old, (as an annual addition to the money &efore )urrent in
the 0in*dom- In a )ountry (here the e1+ense of the )oina*e is
defrayed &y the *o'ernment, the 'alue of the )oin, e'en (hen it
)ontains its full standard (ei*ht of *old and sil'er, )an ne'er
&e mu)h *reater than that of an equal quantity of those metals
un)oined/ &e)ause it requires only the trou&le of *oin* to the
mint, and the delay +erha+s of a fe( (ee0s, to +ro)ure for any
quantity of un)oined *old and sil'er an equal quantity of those
metals in )oin- .ut, in e'ery )ountry, the *reater +art of the
)urrent )oin is almost al(ays more or less (orn, or other(ise
de*enerated from its standard- In 6reat .ritain it (as, &efore
the late reformation, a *ood deal so, the *old &ein* more than
t(o +er )ent and the sil'er more than ei*ht +er )ent &elo( its
standard (ei*ht- .ut if forty8four *uineas and a half, )ontainin*
their full standard (ei*ht, a +ound (ei*ht of *old, )ould
+ur)hase 'ery little more than a +ound (ei*ht )ould of un)oined
*old, forty8four *uineas and a half (antin* a +art of their
(ei*ht )ould not +ur)hase a +ound (ei*ht, and somethin* (as to &e
added in order to ma0e u+ the defi)ien)y- The )urrent +ri)e of
*old &ullion at mar0et, therefore, instead of &ein* the same (ith
the mint +ri)e, or !G6 1Gs- 6d-, (as then a&out !G7 1Gs- and
sometimes a&out !G?- When the *reater +art of the )oin, ho(e'er,
(as in this de*enerate )ondition, forty8four *uineas and a half,
fresh from the mint, (ould +ur)hase no more *oods in the mar0et
than any other ordinary *uineas, &e)ause (hen they )ame into the
)offers of the mer)hant, &ein* )onfounded (ith other money, they
)ould not after(ards &e distin*uished (ithout more trou&le than
the differen)e (as (orth- !i0e other *uineas they (ere (orth no
more than !G6 1Gs- 6d- If thro(n into the meltin* +ot, ho(e'er,
they +rodu)ed, (ithout any sensi&le loss, a +ound (ei*ht of
standard *old, (hi)h )ould &e sold at any time for &et(een !G7
1Gs- and !G? either of *old or sil'er, as fit for all the
+ur+oses of )oin as that (hi)h had &een melted do(n- There (as an
e'ident +rofit, therefore, in meltin* do(n ne( )oined money, and
it (as done so instantaneously, that no +re)aution of *o'ernment
)ould +re'ent it- The o+erations of the mint (ere, u+on this
a))ount, some(hat li0e the (e& of enelo+e/ the (or0 that (as
done in the day (as undone in the ni*ht- The mint (as em+loyed,
not so mu)h in ma0in* daily additions to the )oin, as in
re+la)in* the 'ery &est +art of it (hi)h (as daily melted do(n-
Were the +ri'ate +eo+le, (ho )arry their *old and sil'er to
the mint, to +ay themsel'es for the )oina*e, it (ould add to the
'alue of those metals in the same manner as the fashion does to
that of +late- Coined *old and sil'er (ould &e more 'alua&le than
un)oined- The sei*nora*e, if it (as not e1or&itant, (ould add to
the &ullion the (hole 'alue of the duty/ &e)ause, the *o'ernment
ha'in* e'ery(here the e1)lusi'e +ri'ile*e of )oinin*, no )oin )an
)ome to mar0et )hea+er than they thin0 +ro+er to afford it- If
the duty (as e1or&itant indeed, that is, if it (as 'ery mu)h
a&o'e the real 'alue of the la&our and e1+ense requisite for
)oina*e, false )oiners, &oth at home and a&road, mi*ht &e
en)oura*ed, &y the *reat differen)e &et(een the 'alue of &ullion
and that of )oin, to +our in so *reat a quantity of )ounterfeit
money as mi*ht redu)e the 'alue of the *o'ernment money- In
"ran)e, ho(e'er, thou*h the sei*nora*e is ei*ht +er )ent, no
sensi&le in)on'enien)y of this 0ind is found to arise from it-
The dan*ers to (hi)h a false )oiner is e'ery(here e1+osed, if he
li'es in the )ountry of (hi)h he )ounterfeits the )oin, and to
(hi)h his a*ents or )orres+ondents are e1+osed if he li'es in a
forei*n )ountry, are &y far too *reat to &e in)urred for the sa0e
of a +rofit of si1 or se'en +er )ent-
The sei*nora*e in "ran)e raises the 'alue of the )oin hi*her
than in +ro+ortion to the quantity of +ure *old (hi)h it
)ontains- Thus &y the edi)t of Aanuary 17E6, the mint +ri)e of
fine *old of t(enty8four )arats (as fi1ed at se'en hundred and
forty li'res nine sous and one denier one8ele'enth, the mar0 of
ei*ht aris oun)es- The *old )oin of "ran)e, ma0in* an allo(an)e
for the remedy of the mint, )ontains t(enty8one )arats and
three8fourths of fine *old, and t(o )arats one fourth of alloy-
The mar0 of standard *old, therefore, is (orth no more than a&out
si1 hundred and se'enty8one li'res ten deniers- .ut in "ran)e
this mar0 of standard *old is )oined into thirty !ouis d=ors of
t(enty8four li'res ea)h, or into se'en hundred and t(enty li'res-
The )oina*e, therefore, in)reases the 'alue of a mar0 of standard
*old &ullion, &y the differen)e &et(een si1 hundred and
se'enty8one li'res ten deniers, and se'en hundred and t(enty
li'res/ or &y forty8ei*ht li'res nineteen sous and t(o deniers-
A sei*nora*e (ill, in many )ases, ta0e a(ay alto*ether, and
(ill, in all )ases, diminish the +rofit of meltin* do(n the ne(
)oin- This +rofit al(ays arises from the differen)e &et(een the
quantity of &ullion (hi)h the )ommon )urren)y ou*ht to )ontain,
and that (hi)h it a)tually does )ontain- If this differen)e is
less than the sei*nora*e, there (ill &e loss instead of +rofit-
If it is equal to the sei*nora*e, there (ill neither &e +rofit
nor loss- If it is *reater than the sei*nora*e, there (ill indeed
&e some +rofit, &ut less than if there (as no sei*nora*e- If,
&efore the late reformation of the *old )oin, for e1am+le, there
had &een a sei*nora*e of fi'e +er )ent u+on the )oina*e, there
(ould ha'e &een a loss of three +er )ent u+on the meltin* do(n of
the *old )oin- If the sei*nora*e had &een t(o +er )ent there
(ould ha'e &een neither +rofit nor loss- If the sei*nora*e had
&een one +er )ent there (ould ha'e &een a +rofit, &ut of one +er
)ent only instead of t(o +er )ent- Where'er money is re)ei'ed &y
tale, therefore, and not &y (ei*ht, a sei*nora*e is the most
effe)tual +re'entati'e of the meltin* do(n of the )oin, and, for
the same reason, of its e1+ortation- It is the &est and hea'iest
+ie)es that are )ommonly either melted do(n or e1+orted/ &e)ause
it is u+on su)h that the lar*est +rofits are made-
The la( for en)oura*ement of the )oina*e, &y renderin* it
duty8free, (as first ena)ted durin* the rei*n of Charles II for a
limited time/ and after(ards )ontinued, &y different
+rolon*ations, till 176F, (hen it (as rendered +er+etual- The
.an0 of $n*land, in order to re+lenish their )offers (ith money,
are frequently o&li*ed to )arry &ullion to the mint/ and it (as
more for their interest, they +ro&a&ly ima*ined, that the )oina*e
should &e at the e1+ense of the *o'ernment than at their o(n- It
(as +ro&a&ly out of )om+laisan)e to this *reat )om+any that the
*o'ernment a*reed to render this la( +er+etual- Should the )ustom
of (ei*hin* *old, ho(e'er, )ome to &e disused, as it is 'ery
li0ely to &e on a))ount of its in)on'enien)y/ should the *old
)oin of $n*land )ome to &e re)ei'ed &y tale, as it (as &efore the
late re)oina*e, this *reat )om+any may, +erha+s, find that they
ha'e u+on this, as u+on some other o))asions, mista0en their o(n
interest not a little-
.efore the late re)oina*e, (hen the *old )urren)y of $n*land
(as t(o +er )ent &elo( its standard (ei*ht, as there (as no
sei*nora*e, it (as t(o +er )ent &elo( the 'alue of that quantity
of standard *old &ullion (hi)h it ou*ht to ha'e )ontained- When
this *reat )om+any, therefore, &ou*ht *old &ullion in order to
ha'e it )oined, they (ere o&li*ed to +ay for it t(o +er )ent more
than it (as (orth after )oina*e- .ut if there had &een a
sei*nora*e of t(o +er )ent u+on the )oina*e, the )ommon *old
)urren)y, thou*h t(o +er )ent &elo( its standard (ei*ht, (ould
not(ithstandin* ha'e &een equal in 'alue to the quantity of
standard *old (hi)h it ou*ht to ha'e )ontained/ the 'alue of the
fashion )om+ensatin* in this )ase the diminution of the (ei*ht-
They (ould indeed ha'e had the sei*nora*e to +ay, (hi)h &ein* t(o
+er )ent, their loss u+on the (hole transa)tion (ould ha'e &een
t(o +er )ent e1a)tly the same, &ut no *reater than it a)tually
(as-
If the sei*nora*e had &een fi'e +er )ent, and the *old
)urren)y only t(o +er )ent &elo( its standard (ei*ht, the &an0
(ould in this )ase ha'e *ained three +er )ent u+on the +ri)e of
the &ullion/ &ut as they (ould ha'e had a sei*nora*e of fi'e +er
)ent to +ay u+on the )oina*e, their loss u+on the (hole
transa)tion (ould, in the same manner, ha'e &een e1a)tly t(o +er
)ent-
If the sei*nora*e had &een only one +er )ent and the *old
)urren)y t(o +er )ent &elo( its standard (ei*ht, the &an0 (ould
in this )ase ha'e lost only one +er )ent u+on the +ri)e of the
&ullion/ &ut as they (ould li0e(ise ha'e had a sei*nora*e of one
+er )ent to +ay, their loss u+on the (hole transa)tion (ould ha'e
&een e1a)tly t(o +er )ent in the same manner as in all other
)ases-
If there (as a reasona&le sei*nora*e, (hile at the same time
the )oin )ontained its full standard (ei*ht, as it has done 'ery
nearly sin)e the last re)oina*e, (hate'er the &an0 mi*ht lose &y
the sei*nora*e, they (ould *ain u+on the +ri)e of the &ullion/
and (hate'er they mi*ht *ain u+on the +ri)e of the &ullion, they
(ould lose &y the sei*nora*e- They (ould neither lose nor *ain,
therefore, u+on the (hole transa)tion, and they (ould in this, as
in all the fore*oin* )ases, &e e1a)tly in the same situation as
if there (as no sei*nora*e-
When the ta1 u+on a )ommodity is so moderate as not to
en)oura*e smu**lin*, the mer)hant (ho deals in it, thou*h he
ad'an)es, does not +ro+erly +ay the ta1, as he *ets it &a)0 in
the +ri)e of the )ommodity- The ta1 is finally +aid &y the last
+ur)haser or )onsumer- .ut money is a )ommodity (ith re*ard to
(hi)h e'ery man is a mer)hant- No&ody &uys it &ut in order to
sell it a*ain/ and (ith re*ard to it there is in ordinary )ases
no last +ur)haser or )onsumer- When the ta1 u+on )oina*e,
therefore, is so moderate as not to en)oura*e false )oinin*,
thou*h e'ery&ody ad'an)es the ta1, no&ody finally +ays it/
&e)ause e'ery&ody *ets it &a)0 in the ad'an)ed 'alue of the )oin-
A moderate sei*nora*e, therefore, (ould not in any )ase
au*ment the e1+ense of the &an0, or of any other +ri'ate +ersons
(ho )arry their &ullion to the mint in order to &e )oined, and
the (ant of a moderate sei*nora*e does not in any )ase diminish
it- Whether there is or is not a sei*nora*e, if the )urren)y
)ontains its full standard (ei*ht, the )oina*e )osts nothin* to
any&ody, and if it is short of that (ei*ht, the )oina*e must
al(ays )ost the differen)e &et(een the quantity of &ullion (hi)h
ou*ht to &e )ontained in it, and that (hi)h a)tually is )ontained
in it-
The *o'ernment, therefore, (hen it defrays the e1+ense of
)oina*e, not only in)urs some small e1+ense, &ut loses some small
re'enue (hi)h it mi*ht *et &y a +ro+er duty/ and neither the &an0
nor any other +ri'ate +ersons are in the smallest de*ree
&enefited &y this useless +ie)e of +u&li) *enerosity-
The dire)tors of the &an0, ho(e'er, (ould +ro&a&ly &e
un(illin* to a*ree to the im+osition of a sei*nora*e u+on the
authority of a s+e)ulation (hi)h +romises them no *ain, &ut only
+retends to insure them from any loss- In the +resent state of
the *old )oin, and as lon* as it )ontinues to &e re)ei'ed &y
(ei*ht, they )ertainly (ould *ain nothin* &y su)h a )han*e- .ut
if the )ustom of (ei*hin* the *old )oin should e'er *o into
misuse, as it is 'ery li0ely to do, and if the *old )oin should
e'er fall into the same state of de*radation in (hi)h it (as
&efore the late re)oina*e, the *ain, or more +ro+erly the sa'in*s
of the &an0, in )onsequen)e of the im+osition of a sei*nora*e,
(ould +ro&a&ly &e 'ery )onsidera&le- The .an0 of $n*land is the
only )om+any (hi)h sends any )onsidera&le quantity of &ullion to
the mint, and the &urden of the annual )oina*e falls entirely, or
almost entirely, u+on it- If this annual )oina*e had nothin* to
do &ut to re+air the una'oida&le losses and ne)essary (ear and
tear of the )oin, it )ould seldom e1)eed fifty thousand or at
most a hundred thousand +ounds- .ut (hen the )oin is de*raded
&elo( its standard (ei*ht, the annual )oina*e must, &esides this,
fill u+ the lar*e 'a)uities (hi)h e1+ortation and the meltin* +ot
are )ontinually ma0in* in the )urrent )oin- It (as u+on this
a))ount that durin* the ten or t(el'e years immediately +re)edin*
the late reformation of the *old )oin, the annual )oina*e
amounted at an a'era*e to more than ei*ht hundred and fifty
thousand +ounds- .ut if there had &een a sei*nora*e of four or
fi'e +er )ent u+on the *old )oin, it (ould +ro&a&ly, e'en in the
state in (hi)h thin*s then (ere, ha'e +ut an effe)tual sto+ to
the &usiness &oth of e1+ortation and of the meltin* +ot- The
&an0, instead of losin* e'ery year a&out t(o and a half +er )ent
u+on the &ullion (hi)h (as to &e )oined into more than ei*ht
hundred and fifty thousand +ounds, or in)urrin* an annual loss of
more than t(enty8one thousand t(o hundred and fifty +ounds, (ould
not +ro&a&ly ha'e in)urred the tenth +art of that loss-
The re'enue allotted &y arliament for defrayin* the e1+ense
of the )oina*e is &ut fourteen thousand +ounds a year, and the
real e1+ense (hi)h it )osts the *o'ernment, or the fees of the
offi)ers of the mint, do not u+on ordinary o))asions, I am
assured, e1)eed the half of that sum- The sa'in* of so 'ery small
a sum, or e'en the *ainin* of another (hi)h )ould not (ell &e
mu)h lar*er, are o&2e)ts too in)onsidera&le, it may &e thou*ht,
to deser'e the serious attention of *o'ernment- .ut the sa'in* of
ei*hteen or t(enty thousand +ounds a year in )ase of an e'ent
(hi)h is not im+ro&a&le, (hi)h has frequently ha++ened &efore,
and (hi)h is 'ery li0ely to ha++en a*ain, is surely an o&2e)t
(hi)h (ell deser'es the serious attention e'en of so *reat a
)om+any as the .an0 of $n*land-
Some of the fore*oin* reasonin*s and o&ser'ations mi*ht
+erha+s ha'e &een more +ro+erly +la)ed in those )ha+ters of the
first &oo0 (hi)h treat of the ori*in and use of money, and of the
differen)e &et(een the real and the nominal +ri)e of )ommodities-
.ut as the la( for the en)oura*ement of )oina*e deri'es its
ori*in from those 'ul*ar +re2udi)es (hi)h ha'e &een introdu)ed &y
the mer)antile system, I 2ud*ed it more +ro+er to reser'e them
for this )ha+ter- Nothin* )ould &e more a*reea&le to the s+irit
of that system than a sort of &ounty u+on the +rodu)tion of
money, the 'ery thin* (hi)h, it su++oses, )onstitutes the (ealth
of e'ery nation- It is one of its many admira&le e1+edients for
enri)hin* the )ountry-
C#AT$R 5II
Of Colonies
ART 1
Of the 4oti'es for esta&lishin* ne( Colonies
T#$ interest (hi)h o))asioned the first settlement of the
different $uro+ean )olonies in Ameri)a and the West Indies (as
not alto*ether so +lain and distin)t as that (hi)h dire)ted the
esta&lishment of those of an)ient 6ree)e and Rome-
All the different states of an)ient 6ree)e +ossessed, ea)h
of them, &ut a 'ery small territory, and (hen the +eo+le in any
one of them multi+lied &eyond (hat that territory )ould easily
maintain, a +art of them (ere sent in quest of a ne( ha&itation
in some remote and distant +art of the (orld/ the (arli0e
nei*h&ours (ho surrounded them on all sides, renderin* it
diffi)ult for any of them to enlar*e 'ery mu)h its territory at
home- The )olonies of the Dorians resorted )hiefly to Italy and
Si)ily, (hi)h, in the times +re)edin* the foundation of Rome,
(ere inha&ited &y &ar&arous and un)i'ilised nations3 those of the
Ionians and Aeolians, the t(o other *reat tri&es of the 6ree0s,
to Asia 4inor and the islands of the Ae*ean Sea, of (hi)h the
inha&itants seem at that time to ha'e &een +retty mu)h in the
same state as those of Si)ily and Italy- The mother )ity, thou*h
she )onsidered the )olony as a )hild, at all times entitled to
*reat fa'our and assistan)e, and o(in* in return mu)h *ratitude
and res+e)t, yet )onsidered it as an eman)i+ated )hild o'er (hom
she +retended to )laim no dire)t authority or 2urisdi)tion- The
)olony settled its o(n form of *o'ernment, ena)ted its o(n la(s,
ele)ted its o(n ma*istrates, and made +ea)e or (ar (ith its
nei*h&ours as an inde+endent state, (hi)h had no o))asion to (ait
for the a++ro&ation or )onsent of the mother )ity- Nothin* )an &e
more +lain and distin)t than the interest (hi)h dire)ted e'ery
su)h esta&lishment-
Rome, li0e most of the other an)ient re+u&li)s, (as
ori*inally founded u+on an A*rarian la( (hi)h di'ided the +u&li)
territory in a )ertain +ro+ortion amon* the different )iti;ens
(ho )om+osed the state- The )ourse of human affairs &y marria*e,
&y su))ession, and &y alienation, ne)essarily deran*ed this
ori*inal di'ision, and frequently thre( the lands, (hi)h had &een
allotted for the maintenan)e of many different families, into the
+ossession of a sin*le +erson- To remedy this disorder, for su)h
it (as su++osed to &e, a la( (as made restri)tin* the quantity of
land (hi)h any )iti;en )ould +ossess to fi'e hundred 2u*era,
a&out three hundred and fifty $n*lish a)res- This la(, ho(e'er,
thou*h (e read of its ha'in* &een e1e)uted u+on one or t(o
o))asions, (as either ne*le)ted or e'aded, and the inequality of
fortunes (ent on )ontinually in)reasin*- The *reater +art of the
)iti;ens had no land, and (ithout it the manners and )ustoms of
those times rendered it diffi)ult for a freeman to maintain his
inde+enden)y- In the +resent time, thou*h a +oor man has no land
of his o(n, if he has a little sto)0 he may either farm the lands
of another, or he may )arry on some little retail trade/ and if
he has no sto)0, he may find em+loyment either as a )ountry
la&ourer or as an artifi)er- .ut amon* the an)ient Romans the
lands of the ri)h (ere all )ulti'ated &y sla'es, (ho (rou*ht
under an o'erseer (ho (as li0e(ise a sla'e/ so that a +oor
freeman had little )han)e of &ein* em+loyed either as a farmer or
as a la&ourer- All trades and manufa)tures too, e'en the retail
trade, (ere )arried on &y the sla'es of the ri)h for the &enefit
of their masters, (hose (ealth, authority, and +rote)tion made it
diffi)ult for a +oor freeman to maintain the )om+etition a*ainst
them- The )iti;ens, therefore, (ho had no land, had s)ar)e any
other means of su&sisten)e &ut the &ounties of the )andidates at
the annual ele)tions- The tri&unes, (hen they had a mind to
animate the +eo+le a*ainst the ri)h and the *reat, +ut them in
mind of the an)ient di'ision of lands, and re+resented that la(
(hi)h restri)ted this sort of +ri'ate +ro+erty as the fundamental
la( of the re+u&li)- The +eo+le &e)ame )lamorous to *et land, and
the ri)h and the *reat, (e may &elie'e, (ere +erfe)tly determined
not to *i'e them any +art of theirs- To satisfy them in some
measure therefore, they frequently +ro+osed to send out a ne(
)olony- .ut )onquerin* Rome (as, e'en u+on su)h o))asions, under
no ne)essity of turnin* out her )iti;ens to see0 their fortune,
if one may say so, throu*h the (ide (orld, (ithout 0no(in* (here
they (ere to settle- She assi*ned them lands *enerally in the
)onquered +ro'in)es of Italy, (here, &ein* (ithin the dominions
of the re+u&li), they )ould ne'er form an inde+endent state/ &ut
(ere at &est &ut a sort of )or+oration, (hi)h, thou*h it had the
+o(er of ena)tin* &ye8la(s for its o(n *o'ernment, (as at all
times su&2e)t to the )orre)tion, 2urisdi)tion, and le*islati'e
authority of the mother )ity- The sendin* out a )olony of this
0ind not only *a'e some satisfa)tion to the +eo+le, &ut often
esta&lished a sort of *arrison, too, in a ne(ly )onquered
+ro'in)e, of (hi)h the o&edien)e mi*ht other(ise ha'e &een
dou&tful- A Roman )olony therefore, (hether (e )onsider the
nature of the esta&lishment itself or the moti'es for ma0in* it,
(as alto*ether different from a 6ree0 one- The (ords a))ordin*ly,
(hi)h in the ori*inal lan*ua*es denote those different
esta&lishments, ha'e 'ery different meanin*s- The !atin (ord
9Colonia: si*nifies sim+ly a +lantation- The 6ree0 (ord a+oi0ia,
on the )ontrary, si*nifies a se+aration of d(ellin*, a de+arture
from home, a *oin* out of the house- .ut, thou*h the Roman
)olonies (ere in many res+e)ts different from the 6ree0 ones, the
interest (hi)h +rom+ted to esta&lish them (as equally +lain and
distin)t- .oth institutions deri'ed their ori*in either from
irresisti&le ne)essity, or from )lear and e'ident utility-
The esta&lishment of the $uro+ean )olonies in Ameri)a and
the West Indies arose from no ne)essity3 and thou*h the utility
(hi)h has resulted from them has &een 'ery *reat, it is not
alto*ether so )lear and e'ident- It (as not understood at their
first esta&lishment, and (as not the moti'e either of that
esta&lishment or of the dis)o'eries (hi)h *a'e o))asion to it,
and the nature, e1tent, and limits of that utility are not,
+erha+s, (ell understood at this day-
The 5enetians, durin* the fourteenth and fifteenth
)enturies, )arried on a 'ery ad'anta*eous )ommer)e in s+i)eries,
and other $ast India *oods, (hi)h they distri&uted amon* the
other nations of $uro+e- They +ur)hased them )hiefly in $*y+t, at
that time under the dominion of the 4amelu0es, the enemies of the
Tur0s, of (hom the 5enetians (ere the enemies/ and this union of
interest, assisted &y the money of 5eni)e, formed su)h a
)onne)tion as *a'e the 5enetians almost a mono+oly of the trade-
The *reat +rofits of the 5enetians tem+ted the a'idity of
the ortu*uese- They had &een endea'ourin*, durin* the )ourse of
the fifteenth )entury, to find out &y sea a (ay to the )ountries
from (hi)h the 4oors &rou*ht them i'ory and *old dust a)ross the
desert- They dis)o'ered the 4adeiras, the Canaries, the A;ores,
the Ca+e de 5erde Islands, the )oast of 6uinea, that of !oan*o,
Con*o, An*ola, and .en*uela, and, finally, the Ca+e of 6ood #o+e-
They had lon* (ished to share in the +rofita&le traffi) of the
5enetians, and this last dis)o'ery o+ened to them a +ro&a&le
+ros+e)t of doin* so- In 1GF7, 5as)o de 6ama sailed from the +ort
of !is&on (ith a fleet of four shi+s, and after a na'i*ation of
ele'en months arri'ed u+on the )oast of Indostan, and thus
)om+leted a )ourse of dis)o'eries (hi)h had &een +ursued (ith
*reat steadiness, and (ith 'ery little interru+tion, for nearly a
)entury to*ether-
Some years &efore this, (hile the e1+e)tations of $uro+e
(ere in sus+ense a&out the +ro2e)ts of the ortu*uese, of (hi)h
the su))ess a++eared yet to &e dou&tful, a 6enoese +ilot formed
the yet more darin* +ro2e)t of sailin* to the $ast Indies &y the
West- The situation of those )ountries (as at that time 'ery
im+erfe)tly 0no(n in $uro+e- The fe( $uro+ean tra'ellers (ho had
&een there had ma*nified the distan)e, +erha+s throu*h sim+li)ity
and i*noran)e, (hat (as really 'ery *reat a++earin* almost
infinite to those (ho )ould not measure it/ or, +erha+s, in order
to in)rease some(hat more the mar'ellous of their o(n ad'entures
in 'isitin* re*ions so immensely remote from $uro+e- The lon*er
the (ay (as &y the $ast, Colum&us 'ery 2ustly )on)luded, the
shorter it (ould &e &y the West- #e +ro+osed, therefore, to ta0e
that (ay, as &oth the shortest and the surest, and he had the
*ood fortune to )on'in)e Isa&ella of Castile of the +ro&a&ility
of his +ro2e)t- #e sailed from the +ort of alos in Au*ust 1GFE,
nearly fi'e years &efore the e1+edition of 5as)o de 6ama set out
from ortu*al, and, after a 'oya*e of &et(een t(o and three
months, dis)o'ered first some of the small .ahamas or !u)ayan
islands, and after(ards the *reat island of St- Domin*o-
.ut the )ountries (hi)h Colum&us dis)o'ered, either in this
or in any of his su&sequent 'oya*es, had no resem&lan)e to those
(hi)h he had *one in quest of- Instead of the (ealth,
)ulti'ation, and +o+ulousness of China and Indostan, he found, in
St- Domin*o, and in all the other +arts of the ne( (orld (hi)h he
e'er 'isited, nothin* &ut a )ountry quite )o'ered (ith (ood,
un)ulti'ated, and inha&ited only &y some tri&es of na0ed and
misera&le sa'a*es- #e (as not 'ery (illin*, ho(e'er, to &elie'e
that they (ere not the same (ith some of the )ountries des)ri&ed
&y 4ar)o olo, the first $uro+ean (ho had 'isited, or at least
had left &ehind him, any des)ri+tion of China or the $ast Indies/
and a 'ery sli*ht resem&lan)e, su)h as that (hi)h he found
&et(een the name of Ci&ao, a mountain in St- Domin*o, and that of
Ci+an*o mentioned &y 4ar)o olo, (as frequently suffi)ient to
ma0e him return to this fa'ourite +re+ossession, thou*h )ontrary
to the )learest e'iden)e- In his letters to "erdinand and
Isa&ella he )alled the )ountries (hi)h he had dis)o'ered the
Indies- #e entertained no dou&t &ut that they (ere the e1tremity
of those (hi)h had &een des)ri&ed &y 4ar)o olo, and that they
(ere not 'ery distant from the 6an*es, or from the )ountries
(hi)h had &een )onquered &y Ale1ander- $'en (hen at last
)on'in)ed that they (ere different, he still flattered himself
that those ri)h )ountries (ere at no *reat distan)e, and, in a
su&sequent 'oya*e, a))ordin*ly, (ent in quest of them alon* the
)oast of Terra "irma, and to(ards the Isthmus of Darien-
In )onsequen)e of this mista0e of Colum&us, the name of the
Indies has stu)0 to those unfortunate )ountries e'er sin)e/ and
(hen it (as at last )learly dis)o'ered that the ne( (ere
alto*ether different from the old Indies, the former (ere )alled
the West, in )ontradistin)tion to the latter, (hi)h (ere )alled
the $ast Indies-
It (as of im+ortan)e to Colum&us, ho(e'er, that the
)ountries (hi)h he had dis)o'ered, (hate'er they (ere, should &e
re+resented to the )ourt of S+ain as of 'ery *reat )onsequen)e/
and, in (hat )onstitutes the real ri)hes of e'ery )ountry, the
animal and 'e*eta&le +rodu)tions of the soil, there (as at that
time nothin* (hi)h )ould (ell 2ustify su)h a re+resentation of
them-
The Cori, somethin* &et(een a rat and a ra&&it, and su++osed
&y 4r- .uffon to &e the same (ith the A+erea of .ra;il, (as the
lar*est 'i'i+arous quadru+ed in St- Domin*o- This s+e)ies seems
ne'er to ha'e &een 'ery numerous, and the do*s and )ats of the
S+aniards are said to ha'e lon* a*o almost entirely e1tir+ated
it, as (ell as some other tri&es of a still smaller si;e- These,
ho(e'er, to*ether (ith a +retty lar*e li;ard, )alled the i'ana,
or i*uana, )onstituted the +rin)i+al +art of the animal food
(hi)h the land afforded-
The 'e*eta&le food of the inha&itants, thou*h from their
(ant of industry not 'ery a&undant, (as not alto*ether so s)anty-
It )onsisted in Indian )orn, yams, +otatoes, &ananas, et)-,
+lants (hi)h (ere then alto*ether un0no(n in $uro+e, and (hi)h
ha'e ne'er sin)e &een 'ery mu)h esteemed in it, or su++osed to
yield a sustenan)e equal to (hat is dra(n from the )ommon sorts
of *rain and +ulse, (hi)h ha'e &een )ulti'ated in this +art of
the (orld time out of mind-
The )otton +lant, indeed, afforded the material of a 'ery
im+ortant manufa)ture, and (as at that time to $uro+eans
undou&tedly the most 'alua&le of all the 'e*eta&le +rodu)tions of
those islands- .ut thou*h in the end of the fifteenth )entury the
muslins and other )otton *oods of the $ast Indies (ere mu)h
esteemed in e'ery +art of $uro+e, the )otton manufa)ture itself
(as not )ulti'ated in any +art of it- $'en this +rodu)tion,
therefore, )ould not at that time a++ear in the eyes of $uro+eans
to &e of 'ery *reat )onsequen)e-
"indin* nothin* either in the animals or 'e*eta&les of the
ne(ly dis)o'ered )ountries (hi)h )ould 2ustify a 'ery
ad'anta*eous re+resentation of them, Colum&us turned his 'ie(
to(ards their minerals/ and in the ri)hness of the +rodu)tions of
this third 0in*dom, he flattered himself he had found a full
)om+ensation for the insi*nifi)an)y of those of the other t(o-
The little &its of *old (ith (hi)h the inha&itants ornamented
their dress, and (hi)h, he (as informed, they frequently found in
the ri'ulets and torrents that fell from the mountains, (ere
suffi)ient to satisfy him that those mountains a&ounded (ith the
ri)hest *old mines- St- Domin*o, therefore, (as re+resented as a
)ountry a&oundin* (ith *old, and, u+on that a))ount, 9a))ordin*
to the +re2udi)es not only of the +resent time, &ut of those
times: an ine1hausti&le sour)e of real (ealth to the )ro(n and
0in*dom of S+ain- When Colum&us, u+on his return from his first
'oya*e, (as introdu)ed (ith a sort of trium+hal honours to the
so'erei*ns of Castile and Arra*on, the +rin)i+al +rodu)tions of
the )ountries (hi)h he had dis)o'ered (ere )arried in solemn
+ro)ession &efore him- The only 'alua&le +art of them )onsisted
in some little fillets, &ra)elets, and other ornaments of *old,
and in some &ales of )otton- The rest (ere mere o&2e)ts of 'ul*ar
(onder and )uriosity/ some reeds of an e1traordinary si;e, some
&irds of a 'ery &eautiful +luma*e, and some stuffed s0ins of the
hu*e alli*ator and manati/ all of (hi)h (ere +re)eded &y si1 or
se'en of the (ret)hed nati'es, (hose sin*ular )olour and
a++earan)e added *reatly to the no'elty of the sho(-
In )onsequen)e of the re+resentations of Colum&us, the
)oun)il of Castile determined to ta0e +ossession of )ountries of
(hi)h the inha&itants (ere +lainly in)a+a&le of defendin*
themsel'es- The +ious +ur+ose of )on'ertin* them to Christianity
san)tified the in2usti)e of the +ro2e)t- .ut the ho+e of findin*
treasures of *old there (as the sole moti'e (hi)h +rom+ted him to
underta0e it/ and to *i'e this moti'e the *reater (ei*ht, it (as
+ro+osed &y Colum&us that the half of all the *old and sil'er
that should &e found there should &elon* to the )ro(n- This
+ro+osal (as a++ro'ed of &y the )oun)il-
As lon* as the (hole or the far *reater +art of the *old,
(hi)h the first ad'enturers im+orted into $uro+e, (as *ot &y so
'ery easy a method as the +lunderin* of the defen)eless nati'es,
it (as not +erha+s 'ery diffi)ult to +ay e'en this hea'y ta1- .ut
(hen the nati'es (ere on)e fairly stri++ed of all that they had,
(hi)h, in St- Domin*o, and in all the other )ountries dis)o'ered
&y Colum&us, (as done )om+letely in si1 or ei*ht years, and (hen
in order to find more it had &e)ome ne)essary to di* for it in
the mines, there (as no lon*er any +ossi&ility of +ayin* this
ta1- The ri*orous e1a)tion of it, a))ordin*ly, first o))asioned,
it is said, the total a&andonin* of the mines of St- Domin*o,
(hi)h ha'e ne'er &een (rou*ht sin)e- It (as soon redu)ed
therefore to a third/ then to a fifth/ after(ards to a tenth/ and
at last to a t(entieth +art of the *ross +rodu)e of the *old
mines- The ta1 u+on sil'er )ontinued for a lon* time to &e a
fifth of the *ross +rodu)e- It (as redu)ed to a tenth only in the
)ourse of the +resent )entury- .ut the first ad'enturers do not
a++ear to ha'e &een mu)h interested a&out sil'er- Nothin* less
+re)ious than *old seemed (orthy of their attention-
All the other enter+rises of the S+aniards in the ne( (orld,
su&sequent to those of Colum&us, seem to ha'e &een +rom+ted &y
the same moti'e- It (as the sa)red thirst of *old that )arried
Oieda, Ni)uessa, and 5as)o Nu*nes de .al&oa, to the Isthmus of
Darien, that )arried Corte; to 4e1i)o, and Alma*ro and i;;arro
to Chili and eru- When those ad'enturers arri'ed u+on any
un0no(n )oast, their first inquiry (as al(ays if there (as any
*old to &e found there/ and a))ordin* to the information (hi)h
they re)ei'ed )on)ernin* this +arti)ular, they determined either
to quit the )ountry or to settle in it-
Of all those e1+ensi'e and un)ertain +ro2e)ts, ho(e'er,
(hi)h &rin* &an0ru+t)y u+on the *reater +art of the +eo+le (ho
en*a*e in them, there is none +erha+s more ruinous than the
sear)h after ne( sil'er and *old mines- It is +erha+s the most
disad'anta*eous lottery in the (orld, or the one in (hi)h the
*ain of those (ho dra( the +ri;es &ears the least +ro+ortion to
the loss of those (ho dra( the &lan0s3 for thou*h the +ri;es are
fe( and the &lan0s many, the )ommon +ri)e of a ti)0et is the
(hole fortune of a 'ery ri)h man- ro2e)ts of minin*, instead of
re+la)in* the )a+ital em+loyed in them, to*ether (ith the
ordinary +rofits of sto)0, )ommonly a&sor& &oth )a+ital and
+rofit- They are the +ro2e)ts, therefore, to (hi)h of all others
a +rudent la(*i'er, (ho desired to in)rease the )a+ital of his
nation, (ould least )hoose to *i'e any e1traordinary
en)oura*ement, or to turn to(ards them a *reater share of that
)a+ital than that (ould *o to them of its o(n a))ord- Su)h in
reality is the a&surd )onfiden)e (hi)h almost all men ha'e in
their o(n *ood fortune that, (here'er there is the least
+ro&a&ility of su))ess, too *reat a share of it is a+t to *o to
them of its o(n a))ord-
.ut thou*h the 2ud*ment of so&er reason and e1+erien)e
)on)ernin* su)h +ro2e)ts has al(ays &een e1tremely unfa'oura&le,
that of human a'idity has )ommonly &een quite other(ise- The same
+assion (hi)h has su**ested to so many +eo+le the a&surd idea of
the +hiloso+her=s stone, has su**ested to others the equally
a&surd one of immense ri)h mines of *old and sil'er- They did not
)onsider that the 'alue of those metals has, in all a*es and
nations, arisen )hiefly from their s)ar)ity, and that their
s)ar)ity has arisen from the 'ery small quantities of them (hi)h
nature has any(here de+osited in one +la)e, from the hard and
intra)ta&le su&stan)es (ith (hi)h she has almost e'ery(here
surrounded those small quantities, and )onsequently from the
la&our and e1+ense (hi)h are e'ery(here ne)essary in order to
+enetrate to and *et at them- They flattered themsel'es that
'eins of those metals mi*ht in many +la)es &e found as lar*e and
as a&undant as those (hi)h are )ommonly found of lead, or )o++er,
or tin, or iron- The dream of Sir Walter Ralei*h )on)ernin* the
*olden )ity and )ountry of $ldorado, may satisfy us that e'en
(ise men are not al(ays e1em+t from su)h stran*e delusions- 4ore
than a hundred years after the death of that *reat man, the
Aesuit 6umila (as still )on'in)ed of the reality of that
(onderful )ountry, and e1+ressed (ith *reat (armth, and I dare to
say (ith *reat sin)erity, ho( ha++y he should &e to )arry the
li*ht of the *os+el to a +eo+le (ho )ould so (ell re(ard the
+ious la&ours of their missionary-
In the )ountries first dis)o'ered &y the S+aniards, no *old
or sil'er mines are at +resent 0no(n (hi)h are su++osed to &e
(orth the (or0in*- The quantities of those metals (hi)h the first
ad'enturers are said to ha'e found there had +ro&a&ly &een 'ery
mu)h ma*nified, as (ell as the fertility of the mines (hi)h (ere
(rou*ht immediately after the first dis)o'ery- What those
ad'enturers (ere re+orted to ha'e found, ho(e'er, (as suffi)ient
to inflame the a'idity of all their )ountrymen- $'ery S+aniard
(ho sailed to Ameri)a e1+e)ted to find an $ldorado- "ortune, too,
did u+on this (hat she has done u+on 'ery fe( other o))asions-
She reali;ed in some measure the e1tra'a*ant ho+es of her
'otaries, and in the dis)o'ery and )onquest of 4e1i)o and eru
9of (hi)h the one ha++ened a&out thirty, the other a&out forty
years after the first e1+edition of Colum&us:, she +resented them
(ith somethin* not 'ery unli0e that +rofusion of the +re)ious
metals (hi)h they sou*ht for-
A +ro2e)t of )ommer)e to the $ast Indies, therefore, *a'e
o))asion to the first dis)o'ery of the West- A +ro2e)t of
)onquest *a'e o))asion to all the esta&lishments of the S+aniards
in those ne(ly dis)o'ered )ountries- The moti'e (hi)h e1)ited
them to this )onquest (as a +ro2e)t of *old and sil'er mines/ and
a )ourse of a))idents, (hi)h no human (isdom )ould foresee,
rendered this +ro2e)t mu)h more su))essful than the underta0ers
had any reasona&le *rounds for e1+e)tin*-
The first ad'enturers of all the other nations of $uro+e (ho
attem+ted to ma0e settlements in Ameri)a (ere animated &y the
li0e )himeri)al 'ie(s/ &ut they (ere not equally su))essful- It
(as more than a hundred years after the first settlement of the
.ra;ils &efore any sil'er, *old, or diamond mines (ere dis)o'ered
there- In the $n*lish, "ren)h, Dut)h, and Danish )olonies, none
ha'e e'er yet &een dis)o'ered/ at least none that are at +resent
su++osed to &e (orth the (or0in*- The first $n*lish settlers in
North Ameri)a, ho(e'er, offered a fifth of all the *old and
sil'er (hi)h should &e found there to the 0in*, as a moti'e for
*rantin* them their +atents- In the +atents to Sir Walter
Ralei*h, to the !ondon and lymouth Com+anies, to the Coun)il of
lymouth, et)-, this fifth (as a))ordin*ly reser'ed to the )ro(n-
To the e1+e)tation of findin* *old and sil'er mines, those first
settlers, too, 2oined that of dis)o'erin* a north(est +assa*e to
the $ast Indies- They ha'e hitherto &een disa++ointed in &oth-
ART E
Causes of ros+erity of Ne( Colonies
T#$ )olony of a )i'ilised nation (hi)h ta0es +ossession
either of a (aste )ountry, or of one so thinly inha&ited that the
nati'es easily *i'e +la)e to the ne( settlers, ad'an)es more
ra+idly to (ealth and *reatness than any other human so)iety-
The )olonists )arry out (ith them a 0no(led*e of a*ri)ulture
and of other useful arts su+erior to (hat )an *ro( u+ of its o(n
a))ord in the )ourse of many )enturies amon* sa'a*e and &ar&arous
nations- They )arry out (ith them, too, the ha&it of
su&ordination, some notion of the re*ular *o'ernment (hi)h ta0es
+la)e in their o(n )ountry, of the system of la(s (hi)h su++ort
it, and of a re*ular administration of 2usti)e/ and they
naturally esta&lish somethin* of the same 0ind in the ne(
settlement- .ut amon* sa'a*e and &ar&arous nations, the natural
+ro*ress of la( and *o'ernment is still slo(er than the natural
+ro*ress of arts, after la( and *o'ernment ha'e &een *o far
esta&lished as is ne)essary for their +rote)tion- $'ery )olonist
*ets more land than he )an +ossi&ly )ulti'ate- #e has no rent,
and s)ar)e any ta1es to +ay- No landlord shares (ith him in its
+rodu)e, and the share of the so'erei*n is )ommonly &ut a trifle-
#e has e'ery moti'e to render as *reat as +ossi&le a +rodu)e,
(hi)h is thus to &e almost entirely his o(n- .ut his land is
)ommonly so e1tensi'e that, (ith all his o(n industry, and (ith
all the industry of other +eo+le (hom he )an *et to em+loy, he
)an seldom ma0e it +rodu)e the tenth +art of (hat it is )a+a&le
of +rodu)in*- #e is ea*er, therefore, to )olle)t la&ourers from
all quarters, and to re(ard them (ith the most li&eral (a*es- .ut
those li&eral (a*es, 2oined to the +lenty and )hea+ness of land,
soon ma0e those la&ourers lea'e him, in order to &e)ome landlords
themsel'es, and to re(ard, (ith equal li&erality, other
la&ourers, (ho soon lea'e them for the same reason that they left
their first master- The li&eral re(ard of la&our en)oura*es
marria*e- The )hildren, durin* the tender years of infan)y, are
(ell fed and +ro+erly ta0en )are of, and (hen they are *ro(n u+,
the 'alue of their la&our *reatly o'er+ays their maintenan)e-
When arri'ed at maturity, the hi*h +ri)e of la&our, and the lo(
+ri)e of land, ena&le them to esta&lish themsel'es in the same
manner as their fathers did &efore them-
In other )ountries, rent and +rofit eat u+ (a*es, and the
t(o su+erior orders of +eo+le o++ress the inferior one- .ut in
ne( )olonies the interest of the t(o su+erior orders o&li*es them
to treat the inferior one (ith more *enerosity and humanity/ at
least (here that inferior one is not in a state of sla'ery- Waste
lands of the *reatest natural fertility are to &e had for a
trifle- The in)rease of re'enue (hi)h the +ro+rietor, (ho is
al(ays the underta0er, e1+e)ts from their im+ro'ement,
)onstitutes his +rofit (hi)h in these )ir)umstan)es is )ommonly
'ery *reat- .ut this *reat +rofit )annot &e made (ithout
em+loyin* the la&our of other +eo+le in )learin* and )ulti'atin*
the land/ and the dis+ro+ortion &et(een the *reat e1tent of the
land and the small num&er of the +eo+le, (hi)h )ommonly ta0es
+la)e in ne( )olonies, ma0es it diffi)ult for him to *et this
la&our- #e does not, therefore, dis+ute a&out (a*es, &ut is
(illin* to em+loy la&our at any +ri)e- The hi*h (a*es of la&our
en)oura*e +o+ulation- The )hea+ness and +lenty of *ood land
en)oura*e im+ro'ement, and ena&le the +ro+rietor to +ay those
hi*h (a*es- In those (a*es )onsists almost the (hole +ri)e of the
land/ and thou*h they are hi*h )onsidered as the (a*es of la&our,
they are lo( )onsidered as the +ri)e of (hat is so 'ery 'alua&le-
What en)oura*es the +ro*ress of +o+ulation and im+ro'ement
en)oura*es that of real (ealth and *reatness-
The +ro*ress of many of the an)ient 6ree0 )olonies to(ards
(ealth and *reatness seems a))ordin*ly to ha'e &een 'ery ra+id-
In the )ourse of a )entury or t(o, se'eral of them a++ear to ha'e
ri'alled, and e'en to ha'e sur+assed their mother )ities-
Syra)use and A*ri*entum in Si)ily, Tarentum and !o)ri in Italy,
$+hesus and 4iletus in !esser Asia, a++ear &y all a))ounts to
ha'e &een at least equal to any of the )ities of an)ient 6ree)e-
Thou*h +osterior in their esta&lishment, yet all the arts of
refinement, +hiloso+hy, +oetry, and eloquen)e seem to ha'e &een
)ulti'ated as early, and to ha'e &een im+ro'ed as hi*hly in them
as in any +art of the mother )ountry- The s)hools of the t(o
oldest 6ree0 +hiloso+hers, those of Thales and ytha*oras, (ere
esta&lished, it is remar0a&le, not in an)ient 6ree)e, &ut the one
in an Asiati), the other in an Italian )olony- All those )olonies
had esta&lished themsel'es in )ountries inha&ited &y sa'a*e and
&ar&arous nations, (ho easily *a'e +la)e to the ne( settlers-
They had +lenty of *ood land, and as they (ere alto*ether
inde+endent of the mother )ity, they (ere at li&erty to mana*e
their o(n affairs in the (ay that they 2ud*ed (as most suita&le
to their o(n interest-
The history of the Roman )olonies is &y no means so
&rilliant- Some of them, indeed, su)h as "loren)e, ha'e in the
)ourse of many a*es, and after the fall of the mother )ity, *ro(n
u+ to &e )onsidera&le states- .ut the +ro*ress of no one of them
seems e'er to ha'e &een 'ery ra+id- They (ere all esta&lished in
)onquered +ro'in)es, (hi)h in most )ases had &een fully inha&ited
&efore- The quantity of land assi*ned to ea)h )olonist (as seldom
'ery )onsidera&le, and as the )olony (as not inde+endent, they
(ere not al(ays at li&erty to mana*e their o(n affairs in the (ay
they 2ud*ed (as most suita&le to their o(n interest-
In the +lenty of *ood land, the $uro+ean )olonies
esta&lished in Ameri)a and the West Indies resem&le, and e'en
*reatly sur+ass, those of an)ient 6ree)e- In their de+enden)y
u+on the mother state, they resem&le those of an)ient Rome/ &ut
their *reat distan)e from $uro+e has in all of them alle'iated
more or less the effe)ts of this de+enden)y- Their situation has
+la)ed them less in the 'ie( and less in the +o(er of their
mother )ountry- In +ursuin* their interest their o(n (ay, their
)ondu)t has, u+on many o))asions, &een o'erloo0ed, either &e)ause
not 0no(n or not understood in $uro+e/ and u+on some o))asions it
has &een fairly suffered and su&mitted to, &e)ause their distan)e
rendered it diffi)ult to restrain it- $'en the 'iolent and
ar&itrary *o'ernment of S+ain has, u+on many o))asions, &een
o&li*ed to re)all or soften the orders (hi)h had &een *i'en for
the *o'ernment of her )olonies for fear of a *eneral
insurre)tion- The +ro*ress of all the $uro+ean )olonies in
(ealth, +o+ulation, and im+ro'ement, has a))ordin*ly &een 'ery
*reat-
The )ro(n of S+ain, &y its share of the *old and sil'er,
deri'ed some re'enue from its )olonies from the moment of their
first esta&lishment- It (as a re'enue, too, of a nature to e1)ite
in human a'idity the most e1tra'a*ant e1+e)tations of still
*reater ri)hes- The S+anish )olonies, therefore, from the moment
of their first esta&lishment, attra)ted 'ery mu)h the attention
of their mother )ountry, (hile those of the other $uro+ean
nations (ere for a lon* time in a *reat measure ne*le)ted- The
former did not, +erha+s, thri'e the &etter in )onsequen)e of this
attention/ nor the latter the (orse in )onsequen)e of this
ne*le)t- In +ro+ortion to the e1tent of the )ountry (hi)h they in
some measure +ossess, the S+anish )olonies are )onsidered as less
+o+ulous and thri'in* than those of almost any other $uro+ean
nation- The +ro*ress e'en of the S+anish )olonies, ho(e'er, in
+o+ulation and im+ro'ement, has )ertainly &een 'ery ra+id and
'ery *reat- The )ity of !ima, founded sin)e the )onquest, is
re+resented &y Ulloa as )ontainin* fifty thousand inha&itants
near thirty years a*o- Juito, (hi)h had &een &ut a misera&le
hamlet of Indians, is re+resented &y the same author as in his
time equally +o+ulous- 6emelli Carreri, a +retended tra'eller, it
is said, indeed, &ut (ho seems e'ery(here to ha'e (ritten u+on
e1tremely *ood information, re+resents the )ity of 4e1i)o as
)ontainin* a hundred thousand inha&itants/ a num&er (hi)h, in
s+ite of all the e1a**erations of the S+anish (riters, is,
+ro&a&ly, more than fi'e times *reater than (hat it )ontained in
the time of 4onte;uma- These num&ers e1)eed *reatly those of
.oston, Ne( 7or0, and hiladel+hia, the three *reatest )ities of
the $n*lish )olonies- .efore the )onquest of the S+aniards there
(ere no )attle fit for drau*ht either in 4e1i)o or eru- The
llama (as their only &east of &urden, and its stren*th seems to
ha'e &een a *ood deal inferior to that of a )ommon ass- The
+lou*h (as un0no(n amon* them- They (ere i*norant of the use of
iron- They had no )oined money, nor any esta&lished instrument of
)ommer)e of any 0ind- Their )ommer)e (as )arried on &y &arter- A
sort of (ooden s+ade (as their +rin)i+al instrument of
a*ri)ulture- Shar+ stones ser'ed them for 0ni'es and hat)hets to
)ut (ith/ fish &ones and the hard sine(s of )ertain animals
ser'ed them for needles to se( (ith/ and these seem to ha'e &een
their +rin)i+al instruments of trade- In this state of thin*s, it
seems im+ossi&le that either of those em+ires )ould ha'e &een so
mu)h im+ro'ed or so (ell )ulti'ated as at +resent, (hen they are
+lentifully furnished (ith all sorts of $uro+ean )attle, and (hen
the use of iron, of the +lou*h, and of many of the arts of
$uro+e, has &een introdu)ed amon* them- .ut the +o+ulousness of
e'ery )ountry must &e in +ro+ortion to the de*ree of its
im+ro'ement and )ulti'ation- In s+ite of the )ruel destru)tion of
the nati'es (hi)h follo(ed the )onquest, these t(o *reat em+ires
are, +ro&a&ly, more +o+ulous no( than they e'er (ere &efore3 and
the +eo+le are surely 'ery different/ for (e must a)0no(led*e, I
a++rehend, that the S+anish )reoles are in many res+e)ts su+erior
to the an)ient Indians-
After the settlements of the S+aniards, that of the
ortu*uese in .ra;il is the oldest of any $uro+ean nation in
Ameri)a- .ut as for a lon* time after the first dis)o'ery neither
*old nor sil'er mines (ere found in it, and as it afforded, u+on
that a))ount, little or no re'enue to the )ro(n, it (as for a
lon* time in a *reat measure ne*le)ted/ and durin* this state of
ne*le)t it *re( u+ to &e a *reat and +o(erful )olony- While
ortu*al (as under the dominion of S+ain, .ra;il (as atta)0ed &y
the Dut)h, (ho *ot +ossession of se'en of the fourteen +ro'in)es
into (hi)h it is di'ided- They e1+e)ted soon to )onquer the other
se'en, (hen ortu*al re)o'ered its inde+enden)y &y the ele'ation
of the family of .ra*an;a to the throne- The Dut)h then, as
enemies to the S+aniards, &e)ame friends to the ortu*uese, (ho
(ere li0e(ise the enemies of the S+aniards- They a*reed,
therefore, to lea'e that +art of .ra;il, (hi)h they had not
)onquered, to the %in* of ortu*al, (ho a*reed to lea'e that +art
(hi)h they had )onquered to them, as a matter not (orth dis+utin*
a&out (ith su)h *ood allies- .ut the Dut)h *o'ernment soon &e*an
to o++ress the ortu*uese )olonists, (ho, instead of amusin*
themsel'es (ith )om+laints, too0 arms a*ainst their ne( masters,
and &y their o(n 'alour and resolution, (ith the )onni'an)e,
indeed, &ut (ithout any a'o(ed assistan)e from the mother
)ountry, dro'e them out of .ra;il- The Dut)h, therefore, findin*
it im+ossi&le to 0ee+ any +art of the )ountry to themsel'es, (ere
)ontented that it should &e entirely restored to the )ro(n of
ortu*al- In this )olony there are said to &e more than si1
hundred thousand +eo+le, either ortu*uese or des)ended from
ortu*uese, )reoles, mulattoes, and a mi1ed ra)e &et(een
ortu*uese and .ra;ilians- No one )olony in Ameri)a is su++osed
to )ontain so *reat a num&er of +eo+le of $uro+ean e1tra)tion-
To(ards the end of the fifteenth, and durin* the *reater
+art of the si1teenth )entury, S+ain and ortu*al (ere the t(o
*reat na'al +o(ers u+on the o)ean/ for thou*h the )ommer)e of
5eni)e e1tended to e'ery +art of $uro+e, its fleets had s)ar)e
e'er sailed &eyond the 4editerranean- The S+aniards, in 'irtue of
the first dis)o'ery, )laimed all Ameri)a as their o(n/ and thou*h
they )ould not hinder so *reat a na'al +o(er as that of ortu*al
from settlin* in .ra;il, su)h (as, at that time, the terror of
their name, that the *reater +art of the other nations of $uro+e
(ere afraid to esta&lish themsel'es in any other +art of that
*reat )ontinent- The "ren)h, (ho attem+ted to settle in "lorida,
(ere all murdered &y the S+aniards- .ut the de)lension of the
na'al +o(er of this latter nation, in )onsequen)e of the defeat
or mis)arria*e of (hat they )alled their In'in)i&le Armada, (hi)h
ha++ened to(ards the end of the si1teenth )entury, +ut it out of
their +o(er to o&stru)t any lon*er the settlements of the other
$uro+ean nations- In the )ourse of the se'enteenth )entury,
therefore, the $n*lish, "ren)h, Dut)h, Danes, and S(edes, all the
*reat nations (ho had any +orts u+on the o)ean, attem+ted to ma0e
some settlements in the ne( (orld-
The S(edes esta&lished themsel'es in Ne( Aersey/ and the
num&er of S(edish families still to &e found there suffi)iently
demonstrates that this )olony (as 'ery li0ely to +ros+er had it
&een +rote)ted &y the mother )ountry- .ut &ein* ne*le)ted &y
S(eden, it (as soon s(allo(ed u+ &y the Dut)h )olony of Ne( 7or0,
(hi)h a*ain, in 167G, fell under the dominion of the $n*lish-
The small islands of St- Thomas and Santa Cru; are the only
)ountries in the ne( (orld that ha'e e'er &een +ossessed .y the
Danes- These little settlements, too, (ere under the *o'ernment
of an e1)lusi'e )om+any, (hi)h had the sole ri*ht, &oth of
+ur)hasin* the sur+lus +rodu)e of the )olonists, and of su++lyin*
them (ith su)h *oods of other )ountries as they (anted, and
(hi)h, therefore, &oth in its +ur)hases and sales, had not only
the +o(er of o++ressin* them, &ut the *reatest tem+tation to do
so- The *o'ernment of an e1)lusi'e )om+any of mer)hants is,
+erha+s, the (orst of all *o'ernments for any )ountry (hate'er-
It (as not, ho(e'er, a&le to sto+ alto*ether the +ro*ress of
these )olonies, thou*h it rendered it more slo( and lan*uid- The
late %in* of Denmar0 dissol'ed this )om+any, and sin)e that time
the +ros+erity of these )olonies has &een 'ery *reat-
The Dut)h settlements in the West, as (ell as those in the
$ast Indies, (ere ori*inally +ut under the *o'ernment of an
e1)lusi'e )om+any- The +ro*ress of some of them, therefore,
thou*h it has &een )onsidera&le, in )om+arison (ith that of
almost any )ountry that has &een lon* +eo+led and esta&lished,
has &een lan*uid and slo( in )om+arison (ith that of the *reater
+art of ne( )olonies- The )olony of Surinam, thou*h 'ery
)onsidera&le, is still inferior to the *reater +art of the su*ar
)olonies of the other $uro+ean nations- The )olony of No'a
.el*ia, no( di'ided into the t(o +ro'in)es of Ne( 7or0 and Ne(
Aersey, (ould +ro&a&ly ha'e soon &e)ome )onsidera&le too, e'en
thou*h it had remained under the *o'ernment of the Dut)h- The
+lenty and )hea+ness of *ood land are su)h +o(erful )auses of
+ros+erity that the 'ery (orst *o'ernment is s)ar)e )a+a&le of
)he)0in* alto*ether the effi)a)y of their o+eration- The *reat
distan)e, too, from the mother )ountry (ould ena&le the )olonists
to e'ade more or less, &y smu**lin*, the mono+oly (hi)h the
)om+any en2oyed a*ainst them- At +resent the )om+any allo(s all
Dut)h shi+s to trade to Surinam u+on +ayin* t(o and a half +er
)ent u+on the 'alue of their )ar*o for a li)en)e/ and only
reser'es to itself e1)lusi'ely the dire)t trade from Afri)a to
Ameri)a, (hi)h )onsists almost entirely in the sla'e trade- This
rela1ation in the e1)lusi'e +ri'ile*es of the )om+any is +ro&a&ly
the +rin)i+al )ause of that de*ree of +ros+erity (hi)h that
)olony at +resent en2oys- Cura)oa and $ustatia, the t(o +rin)i+al
islands &elon*in* to the Dut)h, are free +orts o+en to the shi+s
of all nations/ and this freedom, in the midst of &etter )olonies
(hose +orts are o+en to those of one nation only, has &een the
*reat )ause of the +ros+erity of those t(o &arren islands-
The "ren)h )olony of Canada (as, durin* the *reater +art of
the last )entury, and some +art of the +resent, under the
*o'ernment of an e1)lusi'e )om+any- Under so unfa'oura&le an
administration its +ro*ress (as ne)essarily 'ery slo( in
)om+arison (ith that of other ne( )olonies/ &ut it &e)ame mu)h
more ra+id (hen this )om+any (as dissol'ed after the fall of (hat
is )alled the 4ississi++i s)heme- When the $n*lish *ot +ossession
of this )ountry, they found in it near dou&le the num&er of
inha&itants (hi)h "ather Charle'oi1 had assi*ned to it &et(een
t(enty and thirty years &efore- That Aesuit had tra'elled o'er
the (hole )ountry, and had no in)lination to re+resent it as less
)onsidera&le than it really (as-
The "ren)h )olony of St- Domin*o (as esta&lished &y +irates
and free&ooters, (ho, for a lon* time, neither required the
+rote)tion, nor a)0no(led*ed the authority of "ran)e/ and (hen
that ra)e of &anditti &e)ame so far )iti;ens as to a)0no(led*e
this authority, it (as for a lon* time ne)essary to e1er)ise it
(ith 'ery *reat *entleness- Durin* this +eriod the +o+ulation and
im+ro'ement of this )olony in)reased 'ery fast- $'en the
o++ression of the e1)lusi'e )om+any, to (hi)h it (as for some
time su&2e)ted, (ith all the other )olonies of "ran)e, thou*h it
no dou&t retarded, had not &een a&le to sto+ its +ro*ress
alto*ether- The )ourse of its +ros+erity returned as soon as it
(as relie'ed from that o++ression- It is no( the most im+ortant
of the su*ar )olonies of the West Indies, and its +rodu)e is said
to &e *reater than that of all the $n*lish su*ar )olonies +ut
to*ether- The other su*ar )olonies of "ran)e are in *eneral all
'ery thri'in*-
.ut there are no )olonies of (hi)h the +ro*ress has &een
more ra+id than that of the $n*lish in North Ameri)a-
lenty of *ood land, and li&erty to mana*e their o(n affairs
their o(n (ay, seem to &e the t(o *reat )auses of the +ros+erity
of all ne( )olonies-
In the +lenty of *ood land the $n*lish )olonies of North
Ameri)a, thou*h no dou&t 'ery a&undantly +ro'ided, are ho(e'er
inferior to those of the S+aniards and ortu*uese, and not
su+erior to some of those +ossessed &y the "ren)h &efore the late
(ar- .ut the +oliti)al institutions of the $n*lish )olonies ha'e
&een more fa'oura&le to the im+ro'ement and )ulti'ation of this
land than those of any of the other three nations-
"irst, the en*rossin* of un)ulti'ated land, thou*h it has &y
no means &een +re'ented alto*ether, has &een more restrained in
the $n*lish )olonies than in any other- The )olony la( (hi)h
im+oses u+on e'ery +ro+rietor the o&li*ation of im+ro'in* and
)ulti'atin*, (ithin a limited time, a )ertain +ro+ortion of his
lands, and (hi)h in )ase of failure, de)lares those ne*le)ted
lands *ranta&le to any other +erson, thou*h it has not, +erha+s,
&een 'ery stri)tly e1e)uted, has, ho(e'er, had some effe)t-
Se)ondly, in ennsyl'ania there is no ri*ht of
+rimo*eniture, and lands, li0e mo'a&les, are di'ided equally
amon* all the )hildren of the family- In three of the +ro'in)es
of Ne( $n*land the oldest has only a dou&le share, as in the
4osai)al la(- Thou*h in those +ro'in)es, therefore, too *reat a
quantity of land should sometimes &e en*rossed &y a +arti)ular
indi'idual, it is li0ely, in the )ourse of a *eneration or t(o,
to &e suffi)iently di'ided a*ain- In the other $n*lish )olonies,
indeed, the ri*ht of +rimo*eniture ta0es +la)e, as in the la( of
$n*land- .ut in all the $n*lish )olonies the tenure of the lands,
(hi)h are all held &y free so)a*e, fa)ilitates alienation, and
the *rantee of any e1tensi'e tra)t of land *enerally finds it for
his interest to alienate, as fast as he )an, the *reater +art of
it, reser'in* only a small quit8rent- In the S+anish and
ortu*uese )olonies, (hat is )alled the ri*ht of 4a2ora;;o ta0es
+la)e in the su))ession of all those *reat estates to (hi)h any
title of honour is anne1ed- Su)h estates *o all to one +erson,
and are in effe)t entailed and unaliena&le- The "ren)h )olonies,
indeed, are su&2e)t to the )ustom of aris, (hi)h, in the
inheritan)e of land, is mu)h more fa'oura&le to the youn*er
)hildren than the la( of $n*land- .ut in the "ren)h )olonies, if
any +art of an estate, held &y the no&le tenure of )hi'alry and
homa*e, is alienated, it is, for a limited time, su&2e)t to the
ri*ht of redem+tion, either &y the heir of the su+erior or &y the
heir of the family/ and all the lar*est estates of the )ountry
are held &y su)h no&le tenures, (hi)h ne)essarily em&arrass
alienation- .ut in a ne( )olony a *reat un)ulti'ated estate is
li0ely to &e mu)h more s+eedily di'ided &y alienation than &y
su))ession- The +lenty and )hea+ness of *ood land, it has already
&een o&ser'ed, are the +rin)i+al )auses of the ra+id +ros+erity
of ne( )olonies- The en*rossin* of land, in effe)t, destroys this
+lenty and )hea+ness- The en*rossin* of un)ulti'ated land,
&esides, is the *reatest o&stru)tion to its im+ro'ement- .ut the
la&our that is em+loyed in the im+ro'ement and )ulti'ation of
land affords the *reatest and most 'alua&le +rodu)e to the
so)iety- The +rodu)e of la&our, in this )ase, +ays not only its
o(n (a*es, and the +rofit of the sto)0 (hi)h em+loys it, &ut the
rent of the land too u+on (hi)h it is em+loyed- The la&our of the
$n*lish )olonists, therefore, &ein* more em+loyed in the
im+ro'ement and )ulti'ation of land, is li0ely to afford a
*reater and more 'alua&le +rodu)e than that of any of the other
three nations, (hi)h, &y the en*rossin* of land, is more or less
di'erted to(ards other em+loyments-
Thirdly, the la&our of the $n*lish )olonists is not only
li0ely to afford a *reater and more 'alua&le +rodu)e, &ut, in
)onsequen)e of the moderation of their ta1es, a *reater
+ro+ortion of this +rodu)e &elon*s to themsel'es, (hi)h they may
store u+ and em+loy in +uttin* into motion a still *reater
quantity of la&our- The $n*lish )olonists ha'e ne'er yet
)ontri&uted anythin* to(ards the defen)e of the mother )ountry,
or to(ards the su++ort of its )i'il *o'ernment- They themsel'es,
on the )ontrary, ha'e hitherto &een defended almost entirely at
the e1+ense of the mother )ountry- .ut the e1+ense of fleets and
armies is out of all +ro+ortion *reater than the ne)essary
e1+ense of )i'il *o'ernment- The e1+ense of their o(n )i'il
*o'ernment has al(ays &een 'ery moderate- It has *enerally &een
)onfined to (hat (as ne)essary for +ayin* )om+etent salaries to
the *o'ernor, to the 2ud*es, and to some other offi)ers of
+oli)e, and for maintainin* a fe( of the most useful +u&li)
(or0s- The e1+ense of the )i'il esta&lishment of 4assa)husetts
.ay, &efore the )ommen)ement of the +resent distur&an)es, used to
&e &ut a&out !1?,CCC a year- That of Ne( #am+shire and Rhode
Island, !BHCC ea)h- That of Conne)ti)ut, !GCCC- That of Ne( 7or0
and ennsyl'ania, !GHCC ea)h- That of Ne( Aersey, !1ECC- That of
5ir*inia and South Carolina, !?CCC ea)h- The )i'il esta&lishments
of No'a S)otia and 6eor*ia are +artly su++orted &y an annual
*rant of arliament- .ut No'a S)otia +ays, &esides, a&out !7CCC a
year to(ards the +u&li) e1+enses of the )olony/ and 6eor*ia a&out
!EHCC a year- All the different )i'il esta&lishments in North
Ameri)a, in short, e1)lusi'e of those of 4aryland and North
Carolina, of (hi)h no e1a)t a))ount has &een *ot, did not, &efore
the )ommen)ement of the +resent distur&an)es, )ost the
inha&itants a&o'e !6G,7CC a year/ an e'er8memora&le e1am+le at
ho( small an e1+ense three millions of +eo+le may not only &e
*o'erned, &ut (ell *o'erned- The most im+ortant +art of the
e1+ense of *o'ernment, indeed, that of defen)e and +rote)tion,
has )onstantly fallen u+on the mother )ountry- The )eremonial,
too, of the )i'il *o'ernment in the )olonies, u+on the re)e+tion
of a ne( *o'ernor, u+on the o+enin* of a ne( assem&ly, et)-,
thou*h suffi)iently de)ent, is not a))om+anied (ith any e1+ensi'e
+om+ or +arade- Their e))lesiasti)al *o'ernment is )ondu)ted u+on
a +lan equally fru*al- Tithes are un0no(n amon* them/ and their
)ler*y, (ho are far from &ein* numerous, are maintained either &y
moderate sti+ends, or &y the 'oluntary )ontri&utions of the
+eo+le- The +o(er of S+ain and ortu*al, on the )ontrary, deri'es
some su++ort from the ta1es le'ied u+on their )olonies- "ran)e,
indeed, has ne'er dra(n any )onsidera&le re'enue from its
)olonies, the ta1es (hi)h it le'ies u+on them &ein* *enerally
s+ent amon* them- .ut the )olony *o'ernment of all these three
nations is )ondu)ted u+on a mu)h more e1+ensi'e )eremonial- The
sums s+ent u+on the re)e+tion of a ne( 'i)eroy of eru, for
e1am+le, ha'e frequently &een enormous- Su)h )eremonials are not
only real ta1es +aid &y the ri)h )olonists u+on those +arti)ular
o))asions, &ut they ser'e to introdu)e amon* them the ha&it of
'anity and e1+ense u+on all other o))asions- They are not only
'ery *rie'ous o))asional ta1es, &ut they )ontri&ute to esta&lish
+er+etual ta1es of the same 0ind still more *rie'ous/ the ruinous
ta1es of +ri'ate lu1ury and e1tra'a*an)e- In the )olonies of all
those three nations too, the e))lesiasti)al *o'ernment is
e1tremely o++ressi'e- Tithes ta0e +la)e in all of them, and are
le'ied (ith the utmost ri*our in those of S+ain and ortu*al- All
of them, &esides, are o++ressed (ith a numerous ra)e of mendi)ant
friars, (hose &e**ary &ein* not only li)ensed &ut )onse)rated &y
reli*ion, is a most *rie'ous ta1 u+on the +oor +eo+le, (ho are
most )arefully tau*ht that it is a duty to *i'e, and a 'ery *reat
sin to refuse them their )harity- O'er and a&o'e all this, the
)ler*y are, in all of them, the *reatest en*rossers of land-
"ourthly, in the dis+osal of their sur+lus +rodu)e, or of
(hat is o'er and a&o'e their o(n )onsum+tion, the $n*lish
)olonies ha'e &een more fa'oured, and ha'e &een allo(ed a more
e1tensi'e mar0et, than those of any other $uro+ean nation- $'ery
$uro+ean nation has endea'oured more or less to mono+olise to
itself the )ommer)e of its )olonies, and, u+on that a))ount, has
+rohi&ited the shi+s of forei*n nations from tradin* to them, and
has +rohi&ited them from im+ortin* $uro+ean *oods from any
forei*n nation- .ut the manner in (hi)h this mono+oly has &een
e1er)ised in different nations has &een 'ery different-
Some nations ha'e *i'en u+ the (hole )ommer)e of their
)olonies to an e1)lusi'e )om+any, of (hom the )olonists (ere
o&li*ed to &uy all su)h $uro+ean *oods as they (anted, and to
(hom they (ere o&li*ed to sell the (hole of their o(n sur+lus
+rodu)e- It (as the interest of the )om+any, therefore, not only
to sell the former as dear, and to &uy the latter as )hea+ as
+ossi&le, &ut to &uy no more of the latter, e'en at this lo(
+ri)e than (hat they )ould dis+ose of for a 'ery hi*h +ri)e in
$uro+e- It (as their interest, not only to de*rade in all )ases
the 'alue of the sur+lus +rodu)e of the )olony, &ut in many )ases
to dis)oura*e and 0ee+ do(n the natural in)rease of its quantity-
Of all the e1+edients that )an (ell &e )ontri'ed to stunt the
natural *ro(th of a ne( )olony, that of an e1)lusi'e )om+any is
undou&tedly the most effe)tual- This, ho(e'er, has &een the
+oli)y of #olland, thou*h their )om+any, in the )ourse of the
+resent )entury, has *i'en u+ in many res+e)ts the e1ertion of
their e1)lusi'e +ri'ile*e- This, too, (as the +oli)y of Denmar0
till the rei*n of the late 0in*- It has o))asionally &een the
+oli)y of "ran)e, and of late, sin)e 17HH, after it had &een
a&andoned &y all other nations on a))ount of its a&surdity, it
has &e)ome the +oli)y of ortu*al (ith re*ard at least to t(o of
the +rin)i+al +ro'in)es of .ra;il, "ernam&u)o and 4arannon-
Other nations, (ithout esta&lishin* an e1)lusi'e )om+any,
ha'e )onfined the (hole )ommer)e of their )olonies to a
+arti)ular +ort of the mother )ountry, from (hen)e no shi+ (as
allo(ed to sail, &ut either in a fleet and at a +arti)ular
season, or, if sin*le, in )onsequen)e of a +arti)ular li)en)e,
(hi)h in most )ases (as 'ery (ell +aid for- This +oli)y o+ened,
indeed, the trade of the )olonies to all the nati'es of the
mother )ountry, +ro'ided they traded from the +ro+er +ort, at the
+ro+er season, and in the +ro+er 'essels- .ut as all the
different mer)hants, (ho 2oined their sto)0s in order to fit out
those li)ensed 'essels, (ould find it for their interest to a)t
in )on)ert, the trade (hi)h (as )arried on in this manner (ould
ne)essarily &e )ondu)ted 'ery nearly u+on the same +rin)i+les as
that of an e1)lusi'e )om+any- The +rofit of those mer)hants (ould
&e almost equally e1or&itant and o++ressi'e- The )olonies (ould
&e ill su++lied, and (ould &e o&li*ed &oth to &uy 'ery dear, and
to sell 'ery )hea+- This, ho(e'er, till (ithin these fe( years,
had al(ays &een the +oli)y of S+ain, and the +ri)e of all
$uro+ean *oods, a))ordin*ly, is said to ha'e &een enormous in the
S+anish West Indies- At Juito, (e are told &y Ulloa, a +ound of
iron sold for a&out four and si1+en)e, and a +ound of steel for
a&out si1 and nine+en)e sterlin*- .ut it is )hiefly in order to
+ur)hase $uro+ean *oods that the )olonies +art (ith their o(n
+rodu)e- The more, therefore, they +ay for the one, the less they
really *et for the other, and the dearness of the one is the same
thin* (ith the )hea+ness of the other- The +oli)y of ortu*al is
in this res+e)t the same as the an)ient +oli)y of S+ain (ith
re*ard to all its )olonies, e1)e+t "ernam&u)o and 4arannon, and
(ith re*ard to these it has lately ado+ted a still (orse-
Other nations lea'e the trade of their )olonies free to all
their su&2e)ts (ho may )arry it on from all the different +orts
of the mother )ountry, and (ho ha'e o))asion for no other li)en)e
than the )ommon des+at)hes of the )ustom8house- In this )ase the
num&er and dis+ersed situation of the different traders renders
it im+ossi&le for them to enter into any *eneral )om&ination, and
their )om+etition is suffi)ient to hinder them from ma0in* 'ery
e1or&itant +rofits- Under so li&eral a +oli)y the )olonies are
ena&led &oth to sell their o(n +rodu)e and to &uy the *oods of
$uro+e at a reasona&le +ri)e- .ut sin)e the dissolution of the
lymouth Com+any, (hen our )olonies (ere &ut in their infan)y,
this has al(ays &een the +oli)y of $n*land- It has *enerally,
too, &een that of "ran)e, and has &een uniformly so sin)e the
dissolution of (hat, in $n*land, is )ommonly )alled their
4ississi++i Com+any- The +rofits of the trade, therefore, (hi)h
"ran)e and $n*land )arry on (ith their )olonies, thou*h no dou&t
some(hat hi*her than if the )om+etition (as free to all other
nations, are, ho(e'er, &y no means e1or&itant/ and the +ri)e of
$uro+ean *oods a))ordin*ly is not e1tra'a*antly hi*h in the
*reater +art of the )olonies of either of those nations-
In the e1+ortation of their o(n sur+lus +rodu)e too, it is
only (ith re*ard to )ertain )ommodities that the )olonies of
6reat .ritain are )onfined to the mar0et of the mother )ountry-
These )ommodities ha'in* &een enumerated in the A)t of Na'i*ation
and in some other su&sequent a)ts, ha'e u+on that a))ount &een
)alled enumerated )ommodities- The rest are )alled
non8enumerated, and may &e e1+orted dire)tly to other )ountries
+ro'ided it is in .ritish or lantation shi+s, of (hi)h the
o(ners and three8fourths of the mariners are .ritish su&2e)ts-
Amon* the non8enumerated )ommodities are some of the most
im+ortant +rodu)tions of Ameri)a and the West Indies/ *rain of
all sorts, lum&er, salt +ro'isions, fish, su*ar and rum-
6rain is naturally the first and +rin)i+al o&2e)t of the
)ulture of all ne( )olonies- .y allo(in* them a 'ery e1tensi'e
mar0et for it, the la( en)oura*es them to e1tend this )ulture
mu)h &eyond the )onsum+tion of a thinly inha&ited )ountry, and
thus to +ro'ide &eforehand an am+le su&sisten)e for a )ontinually
in)reasin* +o+ulation-
In a )ountry quite )o'ered (ith (ood, (here tim&er
)onsequently is of little or no 'alue, the e1+ense of )learin*
the *round is the +rin)i+al o&sta)le to im+ro'ement- .y allo(in*
the )olonies a 'ery e1tensi'e mar0et for their lum&er, the la(
endea'ours to fa)ilitate im+ro'ement &y raisin* the +ri)e of a
)ommodity (hi)h (ould other(ise &e of little 'alue, and there&y
ena&lin* them to ma0e some +rofit of (hat (ould other(ise &e a
mere e1+ense-
In a )ountry neither half8+eo+led nor half8)ulti'ated,
)attle naturally multi+ly &eyond the )onsum+tion of the
inha&itants, and are often u+on that a))ount of little or no
'alue- .ut it is ne)essary, it has already &een sho(n, that the
+ri)e of )attle should &ear a )ertain +ro+ortion to that of )orn
&efore the *reater +art of the lands of any )ountry )an &e
im+ro'ed- .y allo(in* to Ameri)an )attle, in all sha+es, dead or
ali'e, a 'ery e1tensi'e mar0et, the la( endea'ors to raise the
'alue of a )ommodity of (hi)h the hi*h +ri)e is so 'ery essential
to im+ro'ement- The *ood effe)ts of this li&erty, ho(e'er, must
&e some(hat diminished &y the Gth of 6eor*e III, )- 1H, (hi)h
+uts hides and s0ins amon* the enumerated )ommodities, and
there&y tends to redu)e the 'alue of Ameri)an )attle-
To in)rease the shi++in* and na'al +o(er of 6reat .ritain,
&y the e1tension of the fisheries of our )olonies, is an o&2e)t
(hi)h the le*islature seems to ha'e had almost )onstantly in
'ie(- Those fisheries, u+on this a))ount, ha'e had all the
en)oura*ement (hi)h freedom )an *i'e them, and they ha'e
flourished a))ordin*ly- The Ne( $n*land fishery in +arti)ular
(as, &efore the late distur&an)es, one of the most im+ortant,
+erha+s, in the (orld- The (hale8fishery (hi)h, not(ithstandin*
an e1tra'a*ant &ounty, is in 6reat .ritain )arried on to so
little +ur+ose that in the o+inion of many +eo+le 9(hi)h I do
not, ho(e'er, +retend to (arrant: the (hole +rodu)e does not mu)h
e1)eed the 'alue of the &ounties (hi)h are annually +aid for it,
is in Ne( $n*land )arried on (ithout any &ounty to a 'ery *reat
e1tent- "ish is one of the +rin)i+al arti)les (ith (hi)h the
North Ameri)ans trade to S+ain, ortu*al, and the 4editerranean-
Su*ar (as ori*inally an enumerated )ommodity (hi)h )ould &e
e1+orted only to 6reat .ritain- .ut in 17B1, u+on a
re+resentation of the su*ar8+lanters, its e1+ortation (as
+ermitted to all +arts of the (orld- The restri)tions, ho(e'er,
(ith (hi)h this li&erty (as *ranted, 2oined to the hi*h +ri)e of
su*ar in 6reat .ritain, ha'e rendered it, in a *reat measure,
ineffe)tual- 6reat .ritain and her )olonies still )ontinue to &e
almost the sole mar0et for all the su*ar +rodu)ed in the .ritish
+lantations- Their )onsum+tion in)reases so fast that, thou*h in
)onsequen)e of the in)reasin* im+ro'ement of Aamai)a, as (ell as
of the Ceded Islands, the im+ortation of su*ar has in)reased 'ery
*reatly (ithin these t(enty years, the e1+ortation to forei*n
)ountries is said to &e not mu)h *reater than &efore-
Rum is a 'ery im+ortant arti)le in the trade (hi)h the
Ameri)ans )arry on to the )oast of Afri)a, from (hi)h they &rin*
&a)0 ne*ro sla'es in return-
If the (hole sur+lus +rodu)e of Ameri)a in *rain of all
sorts, in salt +ro'isions and in fish, had &een +ut into the
enumeration, and there&y for)ed into the mar0et of 6reat .ritain,
it (ould ha'e interfered too mu)h (ith the +rodu)e of the
industry of our o(n +eo+le- It (as +ro&a&ly not so mu)h from any
re*ard to the interest of Ameri)a as from a 2ealousy of this
interferen)e that those im+ortant )ommodities ha'e not only &een
0e+t out of the enumeration, &ut that the im+ortation into 6reat
.ritain of all *rain, e1)e+t ri)e, and of salt +ro'isions, has,
in the ordinary state of the la(, &een +rohi&ited-
The non8enumerated )ommodities )ould ori*inally &e e1+orted
to all +arts of the (orld- !um&er and ri)e, ha'in* &een on)e +ut
into the enumeration, (hen they (ere after(ards ta0en out of it,
(ere )onfined, as to the $uro+ean mar0et, to the )ountries that
lie south of Ca+e "inisterre- .y the 6th of 6eor*e III, )- HE,
all non8enumerated )ommodities (ere su&2e)ted to the li0e
restri)tion- The +arts of $uro+e (hi)h lie south of Ca+e
"inisterre are not manufa)turin* )ountries, and (e (ere less
2ealous of the )olony shi+s )arryin* home from them any
manufa)tures (hi)h )ould interfere (ith our o(n-
The enumerated )ommodities are of t(o sorts3 first, su)h as
are either the +e)uliar +rodu)e of Ameri)a, or as )annot &e
+rodu)ed, or at least are not +rodu)ed, in the mother )ountry- Of
this 0ind are molasses, )offee, )o)oa8nuts, to&a))o, +imento,
*in*er, (halefins, ra( sil0, )otton8(ool, &ea'er, and other
+eltry of Ameri)a, indi*o, fusti), and other dyein* (oods/
se)ondly, su)h as are not the +e)uliar +rodu)e of Ameri)a, &ut
(hi)h are and may &e +rodu)ed in the mother )ountry, thou*h not
in su)h quantities as to su++ly the *reater +art of her demand,
(hi)h is +rin)i+ally su++lied from forei*n )ountries- Of this
0ind are all na'al stores, masts, yards, and &o(s+rits, tar,
+it)h, and tur+entine, +i* and &ar iron, )o++er ore, hides and
s0ins, +ot and +earl ashes- The lar*est im+ortation of
)ommodities of the first 0ind )ould not dis)oura*e the *ro(th or
interfere (ith the sale of any +art of the +rodu)e of the mother
)ountry- .y )onfinin* them to the home mar0et, our mer)hants, it
(as e1+e)ted, (ould not only &e ena&led to &uy them )hea+er in
the +lantations, and )onsequently to sell them (ith a &etter
+rofit at home, &ut to esta&lish &et(een the +lantations and
forei*n )ountries an ad'anta*eous )arryin* trade, of (hi)h 6reat
.ritain (as ne)essarily to &e the )entre or em+orium, as the
$uro+ean )ountry into (hi)h those )ommodities (ere first to &e
im+orted- The im+ortation of )ommodities of the se)ond 0ind mi*ht
&e so mana*ed too, it (as su++osed, as to interfere, not (ith the
sale of those of the same 0ind (hi)h (ere +rodu)ed at home, &ut
(ith that of those (hi)h (ere im+orted from forei*n )ountries/
&e)ause, &y means of +ro+er duties, they mi*ht &e rendered al(ays
some(hat dearer than the former, and yet a *ood deal )hea+er than
the latter- .y )onfinin* su)h )ommodities to the home mar0et,
therefore, it (as +ro+osed to dis)oura*e the +rodu)e, not of
6reat .ritain, &ut of some forei*n )ountries (ith (hi)h the
&alan)e of trade (as &elie'ed to &e unfa'oura&le to 6reat
.ritain-
The +rohi&ition of e1+ortin* from the )olonies, to any other
)ountry &ut 6reat .ritain, masts, yards, and &o(s+rits, tar,
+it)h, and tur+entine, naturally tended to lo(er the +ri)e of
tim&er in the )olonies, and )onsequently to in)rease the e1+ense
of )learin* their lands, the +rin)i+al o&sta)le to their
im+ro'ement- .ut a&out the &e*innin* of the +resent )entury, in
17CB, the +it)h and tar )om+any of S(eden endea'oured to raise
the +ri)e of their )ommodities to 6reat .ritain, &y +rohi&itin*
their e1+ortation, e1)e+t in their o(n shi+s, at their o(n +ri)e,
and in su)h quantities as they thou*ht +ro+er- In order to
)ountera)t this nota&le +ie)e of mer)antile +oli)y, and to render
herself as mu)h as +ossi&le inde+endent, not only of S(eden, &ut
of all the other northern +o(ers, 6reat .ritain *a'e a &ounty
u+on the im+ortation of na'al stores from Ameri)a, and the effe)t
of this &ounty (as to raise the +ri)e of tim&er in Ameri)a mu)h
more than the )onfinement to the home mar0et )ould lo(er it/ and
as &oth re*ulations (ere ena)ted at the same time, their 2oint
effe)t (as rather to en)oura*e than to dis)oura*e the )learin* of
land in Ameri)a-
Thou*h +i* and &ar iron too ha'e &een +ut amon* the
enumerated )ommodities, yet as, (hen im+orted from Ameri)a, they
(ere e1em+ted from )onsidera&le duties to (hi)h they are su&2e)t
(hen im+orted from any other )ountry, the one +art of the
re*ulation )ontri&utes more to en)oura*e the ere)tion of furna)es
in Ameri)a than the other to dis)oura*e it- There is no
manufa)ture (hi)h o))asions so *reat a )onsum+tion of (ood as a
furna)e, or (hi)h )an )ontri&ute so mu)h to the )learin* of a
)ountry o'er*ro(n (ith it-
The tenden)y of some of these re*ulations to raise the 'alue
of tim&er in Ameri)a, and there&y to fa)ilitate the )learin* of
the land, (as neither, +erha+s, intended nor understood &y the
le*islature- Thou*h their &enefi)ial effe)ts, ho(e'er, ha'e &een
in this res+e)t a))idental, they ha'e not u+on that a))ount &een
less real-
The most +erfe)t freedom of trade is +ermitted &et(een the
.ritish )olonies of Ameri)a and the West Indies, &oth in the
enumerated and in the non8enumerated )ommodities- Those )olonies
are no( &e)ome so +o+ulous and thri'in* that ea)h of them finds
in some of the others a *reat and e1tensi'e mar0et for e'ery +art
of its +rodu)e- All of them ta0en to*ether, they ma0e a *reat
internal mar0et for the +rodu)e of one another-
The li&erality of $n*land, ho(e'er, to(ards the trade of her
)olonies has &een )onfined )hiefly to (hat )on)erns the mar0et
for their +rodu)e, either in its rude state, or in (hat may &e
)alled the 'ery first sta*e of manufa)ture- The more ad'an)ed or
more refined manufa)tures e'en of the )olony +rodu)e, the
mer)hants and manufa)turers of 6reat .ritain )hoose to reser'e to
themsel'es, and ha'e +re'ailed u+on the le*islature to +re'ent
their esta&lishment in the )olonies, sometimes &y hi*h duties,
and sometimes &y a&solute +rohi&itions-
While, for e1am+le, 4us0o'ado su*ars from the .ritish
+lantations +ay u+on im+ortation only 6s- Gd- the hundred(ei*ht/
(hite su*ars +ay !1 1s- 1d-/ and refined, either dou&le or
sin*le, in loa'es !G Es- H ?DECd- When those hi*h duties (ere
im+osed, 6reat .ritain (as the sole, and she still )ontinues to
&e the +rin)i+al mar0et to (hi)h the su*ars of the .ritish
)olonies )ould &e e1+orted- They amounted, therefore, to a
+rohi&ition, at first of )layin* or refinin* su*ar for any
forei*n mar0et, and at +resent of )layin* or refinin* it for the
mar0et, (hi)h ta0es off, +erha+s, more than nine8tenths of the
(hole +rodu)e- The manufa)ture of )layin* or refinin* su*ar
a))ordin*ly, thou*h it has flourished in all the su*ar )olonies
of "ran)e, has &een little )ulti'ated in any of those of $n*land
e1)e+t for the mar0et of the )olonies themsel'es- While 6renada
(as in the hands of the "ren)h there (as a refinery of su*ar, &y
)layin* at least, u+on almost e'ery +lantation- Sin)e it fell
into those of the $n*lish, almost all (or0s of this 0ind ha'e
&een *i'en ti+, and there are at +resent, O)to&er 177B, I am
assured not a&o'e t(o or three remainin* in the island- At
+resent, ho(e'er, &y an indul*en)e of the )ustom8house, )layed or
refined su*ar, if redu)ed from loa'es into +o(der, is )ommonly
im+orted as 4us0o'ado-
While 6reat .ritain en)oura*es in Ameri)a the manufa)tures
of +i* and &ar iron, &y e1em+tin* them from duties to (hi)h the
li0e )ommodities are su&2e)t (hen im+orted from any other
)ountry, she im+oses an a&solute +rohi&ition u+on the ere)tion of
steel furna)es and slitmills in any of her Ameri)an +lantations-
She (ill not suffer her )olonists to (or0 in those more refined
manufa)tures e'en for their o(n )onsum+tion/ &ut insists u+on
their +ur)hasin* of her mer)hants and manufa)turers all *oods of
this 0ind (hi)h they ha'e o))asion for-
She +rohi&its the e1+ortation from one +ro'in)e to another
&y (ater, and e'en the )arria*e &y land u+on horse&a)0 or in a
)art, of hats, of (ools and (oollen *oods, of the +rodu)e of
Ameri)a/ a re*ulation (hi)h effe)tually +re'ents the
esta&lishment of any manufa)ture of su)h )ommodities for distant
sale, and )onfines the industry of her )olonists in this (ay to
su)h )oarse and household manufa)tures as a +ri'ate family
)ommonly ma0es for its o(n use or for that of some of its
nei*h&ours in the same +ro'in)e-
To +rohi&it a *reat +eo+le, ho(e'er, from ma0in* all that
they )an of e'ery +art of their o(n +rodu)e, or from em+loyin*
their sto)0 and industry in the (ay that they 2ud*e most
ad'anta*eous to themsel'es, is a manifest 'iolation of the most
sa)red ri*hts of man0ind- Un2ust, ho(e'er, as su)h +rohi&itions
may &e, they ha'e not hitherto &een 'ery hurtful to the )olonies-
!and is still so )hea+, and, )onsequently, la&our so dear amon*
them, that they )an im+ort from the mother )ountry almost all the
more refined or more ad'an)ed manufa)tures )hea+er than they
)ould ma0e for themsel'es- Thou*h they had not, therefore, &een
+rohi&ited from esta&lishin* su)h manufa)tures, yet in their
+resent state of im+ro'ement a re*ard to their o(n interest
(ould, +ro&a&ly, ha'e +re'ented them from doin* so- In their
+resent state of im+ro'ement those +rohi&itions, +erha+s, (ithout
)ram+in* their industry, or restrainin* it from any em+loyment to
(hi)h it (ould ha'e *one of its o(n a))ord, are only im+ertinent
&ad*es of sla'ery im+osed u+on them, (ithout any suffi)ient
reason, &y the *roundless 2ealousy of the mer)hants and
manufa)turers of the mother )ountry- In a more ad'an)ed state
they mi*ht &e really o++ressi'e and insu++orta&le-
6reat .ritain too, as she )onfines to her o(n mar0et some of
the most im+ortant +rodu)tions of the )olonies, so in
)om+ensation she *i'es to some of them an ad'anta*e in that
mar0et, sometimes &y im+osin* hi*her duties u+on the li0e
+rodu)tions (hen im+orted from other )ountries, and sometimes &y
*i'in* &ounties u+on their im+ortation from the )olonies- In the
first (ay she *i'es an ad'anta*e in the home mar0et to the su*ar,
to&a))o, and iron of her o(n )olonies, and in the se)ond to their
ra( sil0, to their hem+ and fla1, to their indi*o, to their na'al
stores, and to their &uildin* tim&er- This se)ond (ay of
en)oura*in* the )olony +rodu)e &y &ounties u+on im+ortation, is,
so far as I ha'e &een a&le to learn, +e)uliar to 6reat .ritain-
The first is not- ortu*al does not )ontent herself (ith im+osin*
hi*her duties u+on the im+ortation of to&a))o from any other
)ountry, &ut +rohi&its it under the se'erest +enalties-
With re*ard to the im+ortation of *oods from $uro+e, $n*land
has li0e(ise dealt more li&erally (ith her )olonies than any
other nation-
6reat .ritain allo(s a +art, almost al(ays the half,
*enerally a lar*er +ortion, and sometimes the (hole of the duty
(hi)h is +aid u+on the im+ortation of forei*n *oods, to &e dra(n
&a)0 u+on their e1+ortation to any forei*n )ountry- No
inde+endent forei*n )ountry, it (as easy to foresee, (ould
re)ei'e them if they )ame to it loaded (ith the hea'y duties to
(hi)h almost all forei*n *oods are su&2e)ted on their im+ortation
into 6reat .ritain- Unless, therefore, some +art of those duties
(as dra(n &a)0 u+on e1+ortation, there (as an end of the )arryin*
trade/ a trade so mu)h fa'oured &y the mer)antile system-
Our )olonies, ho(e'er, are &y no means inde+endent forei*n
)ountries/ and 6reat .ritain ha'in* assumed to herself the
e1)lusi'e ri*ht of su++lyin* them (ith all *oods from $uro+e,
mi*ht ha'e for)ed them 9in the same manner as other )ountries
ha'e done their )olonies: to re)ei'e su)h *oods, loaded (ith all
the same duties (hi)h they +aid in the mother )ountry- .ut, on
the )ontrary, till 176B, the same dra(&a)0s (ere +aid u+on the
e1+ortation of the *reater +art of forei*n *oods to our )olonies
as to any inde+endent forei*n )ountry- In 176B, indeed, &y the
Gth of 6eor*e III, )- 1H, this indul*en)e (as a *ood deal a&ated,
and it (as ena)ted, @That no +art of the duty )alled the Old
Su&sidy should &e dra(n &a)0 for any *oods of the *ro(th,
+rodu)tion, or manufa)ture of $uro+e or the $ast Indies, (hi)h
should &e e1+orted from this 0in*dom to any .ritish )olony or
+lantation in Ameri)a/ (ines, (hite )ali)oes and muslins
e1)e+ted-@ .efore this la(, many different sorts of forei*n *oods
mi*ht ha'e &een &ou*ht )hea+er in the +lantations than in the
mother )ountry/ and some may still-
Of the *reater +art of the re*ulations )on)ernin* the )olony
trade, the mer)hants (ho )arry it on, it must &e o&ser'ed, ha'e
&een the +rin)i+al ad'isers- We must not (onder, therefore, if,
in the *reater +art of them, their interest has &een more
)onsidered than either that of the )olonies or that of the mother
)ountry- In their e1)lusi'e +ri'ile*e of su++lyin* the )olonies
(ith all the *oods (hi)h they (anted from $uro+e, and of
+ur)hasin* all su)h +arts of their sur+lus +rodu)e as )ould not
interfere (ith any of the trades (hi)h they themsel'es )arried on
at home, the interest of the )olonies (as sa)rifi)ed to the
interest of those mer)hants- In allo(in* the same dra(&a)0s u+on
the re8e1+ortation of the *reater +art of $uro+ean and $ast India
*oods to the )olonies as u+on their re8e1+ortation to any
inde+endent )ountry, the interest of the mother )ountry (as
sa)rifi)ed to it, e'en a))ordin* to the mer)antile ideas of that
interest- It (as for the interest of the mer)hants to +ay as
little as +ossi&le for the forei*n (hi)h they sent to the
)olonies, and, )onsequently, to *et &a)0 as mu)h as +ossi&le of
the duties (hi)h they ad'an)ed u+on their im+ortation into 6reat
.ritain- They mi*ht there&y &e ena&led to sell in the )olonies
either the same quantity of *oods (ith a *reater +rofit, or a
*reater quantity (ith the same +rofit, and, )onsequently, to *ain
somethin* either in the one (ay or the other- It (as li0e(ise for
the interest of the )olonies to *et all su)h *oods as )hea+ and
in as *reat a&undan)e as +ossi&le- .ut this mi*ht not al(ays &e
for the interest of the mother )ountry- She mi*ht frequently
suffer &oth in her re'enue, &y *i'in* &a)0 a *reat +art of the
duties (hi)h had &een +aid u+on the im+ortation of su)h *oods/
and in her manufa)tures, &y &ein* undersold in the )olony mar0et,
in )onsequen)e of the easy terms u+on (hi)h forei*n manufa)tures
)ould &e )arried thither &y means of those dra(&a)0s- The
+ro*ress of the linen manufa)ture of 6reat .ritain, it is
)ommonly said, has &een a *ood deal retarded &y the dra(&a)0s
u+on the re8e1+ortation of 6erman linen to the Ameri)an )olonies-
.ut thou*h the +oli)y of 6reat .ritain (ith re*ard to the
trade of her )olonies has &een di)tated &y the same mer)antile
s+irit as that of other nations, it has, ho(e'er, u+on the (hole,
&een less illi&eral and o++ressi'e than that of any of them-
In e'erythin*, e1)e+t their forei*n trade, the li&erty of
the $n*lish )olonists to mana*e their o(n affairs their o(n (ay
is )om+lete- It is in e'ery res+e)t equal to that of their
fello(8)iti;ens at home, and is se)ured in the same manner, &y an
assem&ly of the re+resentati'es of the +eo+le, (ho )laim the sole
ri*ht of im+osin* ta1es for the su++ort of the )olony *o'ernment-
The authority of this assem&ly o'era(es the e1e)uti'e +o(er, and
neither the meanest nor the most o&no1ious )olonist, as lon* as
he o&eys the la(, has anythin* to fear from the resentment,
either of the *o'ernor or of any other )i'il or military offi)er
in the +ro'in)e- The )olony assem&lies thou*h, li0e the #ouse of
Commons in $n*land, are not al(ays a 'ery equal re+resentation of
the +eo+le, yet they a++roa)h more nearly to that )hara)ter/ and
as the e1e)uti'e +o(er either has not the means to )orru+t them,
or, on a))ount of the su++ort (hi)h it re)ei'es from the mother
)ountry, is not under the ne)essity of doin* so, they are +erha+s
in *eneral more influen)ed &y the in)linations of their
)onstituents- The )oun)ils (hi)h, in the )olony le*islatures,
)orres+ond to the #ouse of !ords in 6reat .ritain, are not
)om+osed of an hereditary no&ility- In some of the )olonies, as
in three of the *o'ernments of Ne( $n*land, those )oun)ils are
not a++ointed &y the 0in*, &ut )hosen &y the re+resentati'es of
the +eo+le- In none of the $n*lish )olonies is there any
hereditary no&ility- In all of them, indeed, as in all other free
)ountries, the des)endant of an old )olony family is more
res+e)ted than an u+start of equal merit and fortune/ &ut he is
only more res+e)ted, and he has no +ri'ile*es &y (hi)h he )an &e
trou&lesome to his nei*h&ours- .efore the )ommen)ement of the
+resent distur&an)es, the )olony assem&lies had not only the
le*islati'e &ut a +art of the e1e)uti'e +o(er- In Conne)ti)ut and
Rhode Island, they ele)ted the *o'ernor- In the other )olonies
they a++ointed the re'enue offi)ers (ho )olle)ted the ta1es
im+osed &y those res+e)ti'e assem&lies, to (hom those offi)ers
(ere immediately res+onsi&le- There is more equality, therefore,
amon* the $n*lish )olonists than amon* the inha&itants of the
mother )ountry- Their manners are more re+u&li)an, and their
*o'ernments, those of three of the +ro'in)es of Ne( $n*land in
+arti)ular, ha'e hitherto &een more re+u&li)an too-
The a&solute *o'ernments of S+ain, ortu*al, and "ran)e, on
the )ontrary, ta0e +la)e in their )olonies/ and the dis)retionary
+o(ers (hi)h su)h *o'ernments )ommonly dele*ate to all their
inferior offi)ers are, on a))ount of the *reat distan)e,
naturally e1er)ised there (ith more than ordinary 'iolen)e- Under
all a&solute *o'ernments there is more li&erty in the )a+ital
than in any other +art of the )ountry- The so'erei*n himself )an
ne'er ha'e either interest or in)lination to +er'ert the order of
2usti)e, or to o++ress the *reat &ody of the +eo+le- In the
)a+ital his +resen)e o'era(es more or less all his inferior
offi)ers, (ho in the remoter +ro'in)es, from (hen)e the
)om+laints of the +eo+le are less li0ely to rea)h him, )an
e1er)ise their tyranny (ith mu)h more safety- .ut the $uro+ean
)olonies in Ameri)a are more remote than the most distant
+ro'in)es of the *reatest em+ires (hi)h had e'er &een 0no(n
&efore- The *o'ernment of the $n*lish )olonies is +erha+s the
only one (hi)h, sin)e the (orld &e*an, )ould *i'e +erfe)t
se)urity to the inha&itants of so 'ery distant a +ro'in)e- The
administration of the "ren)h )olonies, ho(e'er, has al(ays &een
)ondu)ted (ith more *entleness and moderation than that of the
S+anish and ortu*ese- This su+eriority of )ondu)t is suita&le
&oth to the )hara)ter of the "ren)h nation, and to (hat forms the
)hara)ter of e'ery nation, the nature of their *o'ernment, (hi)h
thou*h ar&itrary and 'iolent in )om+arison (ith that of 6reat
.ritain, is le*al and free in )om+arison (ith those of S+ain and
ortu*al-
It is in the +ro*ress of the North Ameri)an )olonies,
ho(e'er, that the su+eriority of the $n*lish +oli)y )hiefly
a++ears- The +ro*ress of the su*ar )olonies of "ran)e has &een at
least equal, +erha+s su+erior, to that of the *reater +art of
those of $n*land, and yet the su*ar )olonies of $n*land en2oy a
free *o'ernment nearly of the same 0ind (ith that (hi)h ta0es
+la)e in her )olonies of North Ameri)a- .ut the su*ar )olonies of
"ran)e are not dis)oura*ed, li0e those of $n*land, from refinin*
their o(n su*ar/ and, (hat is of still *reater im+ortan)e, the
*enius of their *o'ernment naturally introdu)es a &etter
mana*ement of their ne*ro sla'es-
In all $uro+ean )olonies the )ulture of the su*ar8)ane is
)arried on &y ne*ro sla'es- The )onstitution of those (ho ha'e
&een &orn in the tem+erate )limate of $uro+e )ould not, it is
su++osed, su++ort the la&our of di**in* the *round under the
&urnin* sun of the West Indies/ and the )ulture of the su*ar)ane,
as it is mana*ed at +resent, is all hand la&our, thou*h, in the
o+inion of many, the drill +lou*h mi*ht &e introdu)ed into it
(ith *reat ad'anta*e- .ut, as the +rofit and su))ess of the
)ulti'ation (hi)h is )arried on &y means of )attle, de+end 'ery
mu)h u+on the *ood mana*ement of those )attle, so the +rofit and
su))ess of that (hi)h is )arried on &y sla'es must de+end equally
u+on the *ood mana*ement of those sla'es/ and in the *ood
mana*ement of their sla'es the "ren)h +lanters, I thin0 it is
*enerally allo(ed, are su+erior to the $n*lish- The la(, so far
as it *i'es some (ea0 +rote)tion to the sla'e a*ainst the
'iolen)e of his master, is li0ely to &e &etter e1e)uted in a
)olony (here the *o'ernment is in a *reat measure ar&itrary than
in one (here it is alto*ether free- In e'ery )ountry (here the
unfortunate la( of sla'ery is esta&lished, the ma*istrate, (hen
he +rote)ts the sla'e, intermeddles in some measure in the
mana*ement of the +ri'ate +ro+erty of the master/ and, in a free
)ountry, (here the master is +erha+s either a mem&er of the
)olony assem&ly, or an ele)tor of su)h a mem&er, he dare not do
this &ut (ith the *reatest )aution and )ir)ums+e)tion- The
res+e)t (hi)h he is o&li*ed to +ay to the master renders it more
diffi)ult for him to +rote)t the sla'e- .ut in a )ountry (here
the *o'ernment is in a *reat measure ar&itrary, (here it is usual
for the ma*istrate to intermeddle e'en in the mana*ement of the
+ri'ate +ro+erty of indi'iduals, and to send them, +erha+s, a
lettre de )a)het if they do not mana*e it a))ordin* to his
li0in*, it is mu)h easier for him to *i'e some +rote)tion to the
sla'e/ and )ommon humanity naturally dis+oses him to do so- The
+rote)tion of the ma*istrate renders the sla'e less )ontem+ti&le
in the eyes of his master, (ho is there&y indu)ed to )onsider him
(ith more re*ard, and to treat him (ith more *entleness- 6entle
usa*e renders the sla'e not only more faithful, &ut more
intelli*ent, and therefore, u+on a dou&le a))ount, more useful-
#e a++roa)hes more to the )ondition of a free ser'ant, and may
+ossess some de*ree of inte*rity and atta)hment to his master=s
interest, 'irtues (hi)h frequently &elon* to free ser'ants, &ut
(hi)h ne'er )an &elon* to a sla'e (ho is treated as sla'es
)ommonly are in )ountries (here the master is +erfe)tly free and
se)ure-
That the )ondition of a sla'e is &etter under an ar&itrary
than under a free *o'ernment is, I &elie'e, su++orted &y the
history of all a*es and nations- In the Roman history, the first
time (e read of the ma*istrate inter+osin* to +rote)t the sla'e
from the 'iolen)e of his master is under the em+erors- When
5edius ollio, in the +resen)e of Au*ustus, ordered one of his
sla'es, (ho had )ommitted a sli*ht fault, to &e )ut into +ie)es
and thro(n into his fish +ond in order to feed his fishes, the
em+eror )ommanded him, (ith indi*nation, to eman)i+ate
immediately, not only that sla'e, &ut all the others that
&elon*ed to him- Under the re+u&li) no ma*istrate )ould ha'e had
authority enou*h to +rote)t the sla'e, mu)h less to +unish the
master-
The sto)0, it is to &e o&ser'ed, (hi)h has im+ro'ed the
su*ar )olonies of "ran)e, +arti)ularly the *reat )olony of St-
Domin*o, has &een raised almost entirely from the *radual
im+ro'ement and )ulti'ation of those )olonies- It has &een almost
alto*ether the +rodu)e of the soil and of the industry of the
)olonies, or, (hat )omes to the same thin*, the +ri)e of that
+rodu)e *radually a))umulated &y *ood mana*ement, and em+loyed in
raisin* a still *reater +rodu)e- .ut the sto)0 (hi)h has im+ro'ed
and )ulti'ated the su*ar )olonies of $n*land has, a *reat +art of
it, &een sent out from $n*land, and has &y no means &een
alto*ether the +rodu)e of the soil and industry of the )olonists-
The +ros+erity of the $n*lish su*ar )olonies has &een, in a *reat
measure, o(in* to the *reat ri)hes of $n*land, of (hi)h a +art
has o'erflo(ed, if one may say so, u+on those )olonies- .ut the
+ros+erity of the su*ar )olonies of "ran)e has &een entirely
o(in* to the *ood )ondu)t of the )olonists, (hi)h must therefore
ha'e had some su+eriority o'er that of the $n*lish/ and this
su+eriority has &een remar0ed in nothin* so mu)h as in the *ood
mana*ement of their sla'es-
Su)h ha'e &een the *eneral outlines of the +oli)y of the
different $uro+ean nations (ith re*ard to their )olonies-
The +oli)y of $uro+e, therefore, has 'ery little to &oast
of, either in the ori*inal esta&lishment or, so far as )on)erns
their internal *o'ernment, in the su&sequent +ros+erity of the
)olonies of Ameri)a-
"olly and in2usti)e seem to ha'e &een the +rin)i+les (hi)h
+resided o'er and dire)ted the first +ro2e)t of esta&lishin*
those )olonies/ the folly of huntin* after *old and sil'er mines,
and the in2usti)e of )o'etin* the +ossession of a )ountry (hose
harmless nati'es, far from ha'in* e'er in2ured the +eo+le of
$uro+e, had re)ei'ed the first ad'enturers (ith e'ery mar0 of
0indness and hos+itality-
The ad'enturers, indeed, (ho formed some of the later
esta&lishments, 2oined to the )himeri)al +ro2e)t of findin* *old
and sil'er mines other moti'es more reasona&le and more lauda&le/
&ut e'en these moti'es do 'ery little honour to the +oli)y of
$uro+e-
The $n*lish uritans, restrained at home, fled for freedom
to Ameri)a, and esta&lished there the four *o'ernments of Ne(
$n*land- The $n*lish Catholi)s, treated (ith mu)h *reater
in2usti)e, esta&lished that of 4aryland/ the Jua0ers, that of
ennsyl'ania- The ortu*uese Ae(s, +erse)uted &y the Inquisition,
stri++ed of their fortunes, and &anished to .ra;il, introdu)ed &y
their e1am+le some sort of order and industry amon* the
trans+orted felons and strum+ets &y (hom that )olony (as
ori*inally +eo+led, and tau*ht them the )ulture of the
su*ar8)ane- U+on all these different o))asions it (as not the
(isdom and +oli)y, &ut the disorder and in2usti)e of the $uro+ean
*o'ernments (hi)h +eo+led and )ulti'ated Ameri)a-
In effe)tuatin* some of the most im+ortant of these
esta&lishments, the different *o'ernments of $uro+e had as little
merit as in +ro2e)tin* them- The )onquest of 4e1i)o (as the
+ro2e)t, not of the )oun)il of S+ain, &ut of a *o'ernor of Cu&a/
and it (as effe)tuated &y the s+irit of the &old ad'enturer to
(hom it (as entrusted, in s+ite of e'erythin* (hi)h that
*o'ernor, (ho soon re+ented of ha'in* trusted su)h a +erson,
)ould do to th(art it- The )onquerors of Chili and eru, and of
almost all the other S+anish settlements u+on the )ontinent of
Ameri)a, )arried out (ith them no other +u&li) en)oura*ement, &ut
a *eneral +ermission to ma0e settlements and )onquests in the
name of the 0in* of S+ain- Those ad'entures (ere all at the
+ri'ate ris0 and e1+ense of the ad'enturers- The *o'ernment of
S+ain )ontri&uted s)ar)e anythin* to any of them- That of $n*land
)ontri&uted as little to(ards effe)tuatin* the esta&lishment of
some of its most im+ortant )olonies in North Ameri)a-
When those esta&lishments (ere effe)tuated, and had &e)ome
so )onsidera&le as to attra)t the attention of the mother
)ountry, the first re*ulations (hi)h she made (ith re*ard to them
had al(ays in 'ie( to se)ure to herself the mono+oly of their
)ommer)e/ to )onfine their mar0et, and to enlar*e her o(n at
their e1+ense, and, )onsequently, rather to dam+ and dis)oura*e
than to qui)0en and for(ard the )ourse of their +ros+erity- In
the different (ays in (hi)h this mono+oly has &een e1er)ised
)onsists one of the most essential differen)es in the +oli)y of
the different $uro+ean nations (ith re*ard to their )olonies- The
&est of them all, that of $n*land, is only some(hat less
illi&eral and o++ressi'e than that of any of the rest-
In (hat (ay, therefore, has the +oli)y of $uro+e )ontri&uted
either to the first esta&lishment, or to the +resent *randeur of
the )olonies of Ameri)a> In one (ay, and in one (ay only, it has
)ontri&uted a *ood deal- 4a*na 'irum 4ater< It &red and formed
the men (ho (ere )a+a&le of a)hie'in* su)h *reat a)tions, and of
layin* the foundation of so *reat an em+ire/ and there is no
other quarter of the (orld of (hi)h the +oli)y is )a+a&le of
formin*, or has e'er a)tually and in fa)t formed su)h men- The
)olonies o(e to the +oli)y of $uro+e the edu)ation and *reat
'ie(s of their a)ti'e and enter+risin* founders/ and some of the
*reatest and most im+ortant of them, so far as )on)erns their
internal *o'ernment, o(e to it s)ar)e anythin* else-
ART B
Of the Ad'anta*es (hi)h $uro+e has deri'ed
from the Dis)o'ery of Ameri)a,
and from that of a assa*e to the $ast Indies
&y the Ca+e of 6ood #o+e
SUC# are the ad'anta*es (hi)h the )olonies of Ameri)a ha'e
deri'ed from the +oli)y of $uro+e-
What are those (hi)h $uro+e has deri'ed from the dis)o'ery
and )oloni;ation of Ameri)a>
Those ad'anta*es may &e di'ided, first, into the *eneral
ad'anta*es (hi)h $uro+e, )onsidered as one *reat )ountry, has
deri'ed from those *reat e'ents/ and, se)ondly, into the
+arti)ular ad'anta*es (hi)h ea)h )oloni;in* )ountry has deri'ed
from the )olonies (hi)h +arti)ularly &elon* to it, in )onsequen)e
of the authority or dominion (hi)h it e1er)ises o'er them-
The *eneral ad'anta*es (hi)h $uro+e, )onsidered as one *reat
)ountry, has deri'ed from the dis)o'ery and )olonisation of
Ameri)a, )onsist, first, in the in)rease of its en2oyments/ and,
se)ondly, in the au*mentation of its industry-
The sur+lus +rodu)e of Ameri)a, im+orted into $uro+e,
furnishes the inha&itants of this *reat )ontinent (ith a 'ariety
of )ommodities (hi)h they )ould not other(ise ha'e +ossessed/
some for )on'enien)y and use, some for +leasure, and some for
ornament, and there&y )ontri&utes to in)rease their en2oyments-
The dis)o'ery and )oloni;ation of Ameri)a, it (ill readily
&e allo(ed, ha'e )ontri&uted to au*ment the industry, first, of
all the )ountries (hi)h trade to it dire)tly, su)h as S+ain,
ortu*al, "ran)e, and $n*land/ and, se)ondly, of all those (hi)h,
(ithout tradin* to it dire)tly, send, throu*h the medium of other
)ountries, *oods to it of their o(n +rodu)e/ su)h as Austrian
"landers, and some +ro'in)es of 6ermany, (hi)h, throu*h the
medium of the )ountries &efore mentioned, send to it a
)onsidera&le quantity of linen and other *oods- All su)h
)ountries ha'e e'idently *ained a more e1tensi'e mar0et for their
sur+lus +rodu)e, and must )onsequently ha'e &een en)oura*ed to
in)rease its quantity-
.ut that those *reat e'ents should li0e(ise ha'e )ontri&uted
to en)oura*e the industry of )ountries, su)h as #un*ary and
oland, (hi)h may ne'er, +erha+s, ha'e sent a sin*le )ommodity of
their o(n +rodu)e to Ameri)a, is not, +erha+s, alto*ether so
e'ident- That those e'ents ha'e done so, ho(e'er, )annot &e
dou&ted- Some +art of the +rodu)e of Ameri)a is )onsumed in
#un*ary and oland, and there is some demand there for the su*ar,
)ho)olate, and to&a))o of that ne( quarter of the (orld- .ut
those )ommodities must &e +ur)hased (ith somethin* (hi)h is
either the +rodu)e of the industry of #un*ary and oland, or (ith
somethin* (hi)h had &een +ur)hased (ith some +art of that
+rodu)e- Those )ommodities of Ameri)a are ne( 'alues, ne(
equi'alents, introdu)ed into #un*ary and oland to &e e1)han*ed
there for the sur+lus +rodu)e of those )ountries- .y &ein*
)arried thither they )reate a ne( and more e1tensi'e mar0et for
that sur+lus +rodu)e- They raise its 'alue, and there&y
)ontri&ute to en)oura*e its in)rease- Thou*h no +art of it may
e'er &e )arried to Ameri)a, it may &e )arried to other )ountries
(hi)h +ur)hase it (ith a +art of their share of the sur+lus
+rodu)e of Ameri)a/ and it may find a mar0et &y means of the
)ir)ulation of that trade (hi)h (as ori*inally +ut into motion &y
the sur+lus +rodu)e of Ameri)a-
Those *reat e'ents may e'en ha'e )ontri&uted to in)rease the
en2oyments, and to au*ment the industry of )ountries (hi)h not
only ne'er sent any )ommodities to Ameri)a, &ut ne'er re)ei'ed
any from it- $'en su)h )ountries may ha'e re)ei'ed a *reater
a&undan)e of other )ommodities from )ountries of (hi)h the
sur+lus +rodu)e had &een au*mented &y means of the Ameri)an
trade- This *reater a&undan)e, as it must ne)essarily ha'e
in)reased their en2oyments, so it must li0e(ise ha'e au*mented
their industry- A *reater num&er of ne( equi'alents of some 0ind
or other must ha'e &een +resented to them to &e e1)han*ed for the
sur+lus +rodu)e of that industry- A more e1tensi'e mar0et must
ha'e &een )reated for that sur+lus +rodu)e so as to raise its
'alue, and there&y en)oura*e its in)rease- The mass of
)ommodities annually thro(n into the *reat )ir)le of $uro+ean
)ommer)e, and &y its 'arious re'olutions annually distri&uted
amon* all the different nations )om+rehended (ithin it, must ha'e
&een au*mented &y the (hole sur+lus +rodu)e of Ameri)a- A *reater
share of this *reater mass, therefore, is li0ely to ha'e fallen
to ea)h of those nations, to ha'e in)reased their en2oyments, and
au*mented their industry-
The e1)lusi'e trade of the mother )ountries tends to
diminish, or, at least, to 0ee+ do(n &elo( (hat they (ould
other(ise rise to, &oth the en2oyments and industry of all those
nations in *eneral, and of the Ameri)an )olonies in +arti)ular-
It is a dead (ei*ht u+on the a)tion of one of the *reat s+rin*s
(hi)h +uts into motion a *reat +art of the &usiness of man0ind-
.y renderin* the )olony +rodu)e dearer in all other )ountries, it
lessens its )onsum+tion, and there&y )ram+s the industry of the
)olonies, and &oth the en2oyments and the industry of all other
)ountries, (hi)h &oth en2oy less (hen they +ay more for (hat they
en2oy, and +rodu)e less (hen they *et less for (hat they +rodu)e-
.y renderin* the +rodu)e of all other )ountries dearer in the
)olonies, it )ram+s, in the same manner the industry of all other
)ountries, and &oth the en2oyments and the industry of the
)olonies- It is a )lo* (hi)h, for the su++osed &enefit of some
+arti)ular )ountries, em&arrasses the +leasures and en)um&ers the
industry of all other )ountries/ &ut of the )olonies more than of
any other- It not only e1)ludes, as mu)h as +ossi&le, all other
)ountries from one +arti)ular mar0et/ &ut it )onfines, as mu)h as
ossi&le, the )olonies to one +arti)ular mar0et/ and the
differen)e is 'ery *reat &et(een &ein* e1)luded from one
+arti)ular mar0et, (hen all others are o+en, and &ein* )onfined
to one +arti)ular mar0et, (hen all others are shut u+- The
sur+lus +rodu)e of the )olonies, ho(e'er, is the ori*inal sour)e
of all that in)rease of en2oyments and industry (hi)h $uro+e
deri'es from the dis)o'ery and )oloni;ation of Ameri)a/ and the
e1)lusi'e trade of the mother )ountries tends to render this
sour)e mu)h less a&undant than it other(ise (ould &e-
The +arti)ular ad'anta*es (hi)h ea)h )oloni;in* )ountry
deri'es from the )olonies (hi)h +arti)ularly &elon* to it are of
t(o different 0inds/ first, those )ommon ad'anta*es (hi)h e'ery
em+ire deri'es from the +ro'in)es su&2e)t to its dominion/ and,
se)ondly, those +e)uliar ad'anta*es (hi)h are su++osed to result
from +ro'in)es of so 'ery +e)uliar a nature as the $uro+ean
)olonies of Ameri)a-
The )ommon ad'anta*es (hi)h e'ery em+ire deri'es from the
+ro'in)es su&2e)t to its dominion )onsist, first, in the military
for)e (hi)h they furnish for its defen)e/ and, se)ondly, in the
re'enue (hi)h they furnish for the su++ort of its )i'il
*o'ernment- The Roman )olones furnished o))asionally &oth the one
and the other- The 6ree0 )olonies, sometimes, furnished a
military for)e, &ut seldom any re'enue- They seldom a)0no(led*ed
themsel'es su&2e)t to the dominion of the mother )ity- They (ere
*enerally her allies in (ar, &ut 'ery seldom her su&2e)ts in
+ea)e-
The $uro+ean )olonies of Ameri)a ha'e ne'er yet furnished
any military for)e for the defen)e of the mother )ountry- Their
military for)e has ne'er yet &een suffi)ient for their o(n
defen)e/ and in the different (ars in (hi)h the mother )ountries
ha'e &een en*a*ed, the defen)e of their )olonies has *enerally
o))asioned a 'ery )onsidera&le distra)tion of the military for)e
of those )ountries- In this res+e)t, therefore, all the $uro+ean
)olonies ha'e, (ithout e1)e+tion, &een a )ause rather of (ea0ness
than of stren*th to their res+e)ti'e mother )ountries-
The )olonies of S+ain and ortu*al only ha'e )ontri&uted any
re'enue to(ards the defen)e of the mother )ountry, or the su++ort
of her )i'il *o'ernment- The ta1es (hi)h ha'e &een le'ied u+on
those of other $uro+ean nations, u+on those of $n*land in
+arti)ular, ha'e seldom &een equal to the e1+ense laid out u+on
them in time of +ea)e, and ne'er suffi)ient to defray that (hi)h
they o))asioned in time of (ar- Su)h )olonies, therefore, ha'e
&een a sour)e of e1+ense and not of re'enue to their res+e)ti'e
mother )ountries-
The ad'anta*es of su)h )olonies to their res+e)ti'e mother
)ountries )onsist alto*ether in those +e)uliar ad'anta*es (hi)h
are su++osed to result from +ro'in)es of so 'ery +e)uliar a
nature as the $uro+ean )olonies of Ameri)a/ and the e1)lusi'e
trade, it is a)0no(led*ed, is the sole sour)e of all those
+e)uliar ad'anta*es-
In )onsequen)e of this e1)lusi'e trade, all that +art of the
sur+lus +rodu)e of the $n*lish )olonies, for e1am+le, (hi)h
)onsists in (hat are )alled enumerated )ommodities, )an &e sent
to no other )ountry &ut $n*land- Other )ountries must after(ards
&uy it of her- It must &e )hea+er therefore in $n*land than it
)an &e in any other )ountry, and must )ontri&ute more to in)rease
the en2oyments of $n*land than those of any other )ountry- It
must li0e(ise )ontri&ute more to en)oura*e her industry- "or all
those +arts of her o(n sur+lus +rodu)e (hi)h $n*land e1)han*es
for those enumerated )ommodities, she must *et a &etter +ri)e
than any other )ountries )an *et for the li0e +arts of theirs,
(hen they e1)han*e them for the same )ommodities- The
manufa)turers of $n*land, for e1am+le, (ill +ur)hase a *reater
quantity of the su*ar and to&a))o of her o(n )olonies than the
li0e manufa)tures of other )ountries )an +ur)hase of that su*ar
and to&a))o- So far, therefore, as the manufa)tures of $n*land
and those of other )ountries are &oth to &e e1)han*ed for the
su*ar and to&a))o of the $n*lish )olonies, this su+eriority of
+ri)e *i'es an en)oura*ement to the former &eyond (hat the latter
)an in these )ir)umstan)es en2oy- The e1)lusi'e trade of the
)olonies, therefore, as it diminishes, or at least 0ee+s do(n
&elo( (hat they (ould other(ise rise to, &oth the en2oyments and
the industry of the )ountries (hi)h do not +ossess it/ so it
*i'es an e'ident ad'anta*e to the )ountries (hi)h do +ossess it
o'er those other )ountries-
This ad'anta*e, ho(e'er, (ill +erha+s &e found to &e rather
(hat may &e )alled a relati'e than an a&solute ad'anta*e/ and to
*i'e a su+eriority to the )ountry (hi)h en2oys it rather &y
de+ressin* the industry and +rodu)e of other )ountries than &y
raisin* those of that +arti)ular )ountry a&o'e (hat they (ould
naturally rise to in the )ase of a free trade-
The to&a))o of 4aryland and 5ir*inia, for e1am+le, &y means
of the mono+oly (hi)h $n*land en2oys of it, )ertainly )omes
)hea+er to $n*land than it )an do to "ran)e, to (hom $n*land
)ommonly sells a )onsidera&le +art of it- .ut had "ran)e, and all
other $uro+ean )ountries &een, at all times, allo(ed a free trade
to 4aryland and 5ir*inia, the to&a))o of those )olonies mi*ht, &y
this time, ha'e )ome )hea+er than it a)tually does, not only to
all those other )ountries, &ut li0e(ise to $n*land- The +rodu)e
of to&a))o, in )onsequen)e of a mar0et so mu)h more e1tensi'e
than any (hi)h it has hitherto en2oyed, mi*ht, and +ro&a&ly
(ould, &y this time, ha'e &een so mu)h in)reased as to redu)e the
+rofits of a to&a))o +lantation to their natural le'el (ith those
of a )orn +lantation, (hi)h, it is su++osed, they are still
some(hat a&o'e- The +ri)e of to&a))o mi*ht, and +ro&a&ly (ould,
&y this time, ha'e fallen some(hat lo(er than it is at +resent-
An equal quantity of the )ommodities either of $n*land or of
those other )ountries mi*ht ha'e +ur)hased in 4aryland and
5ir*inia a *reater quantity of to&a))o than it )an do at +resent,
and )onsequently ha'e &een sold there for so mu)h a &etter +ri)e-
So far as that (eed, therefore, )an, &y its )hea+ness and
a&undan)e, in)rease the en2oyments or au*ment the industry either
of $n*land or of any other )ountry, it (ould, +ro&a&ly, in the
)ase of a free trade, ha'e +rodu)ed &oth these effe)ts in
some(hat a *reater de*ree than it )an do at +resent- $n*land,
indeed, (ould not in this )ase ha'e had any ad'anta*e o'er other
)ountries- She mi*ht ha'e &ou*ht the to&a))o of her )olonies
some(hat )hea+er, and )onsequently ha'e sold some of her o(n
)ommodities some(hat dearer than she a)tually does- .ut she )ould
neither ha'e &ou*ht the one )hea+er nor sold the other dearer
than any other )ountry mi*ht ha'e done- She mi*ht, +erha+s ha'e
*ained an a&solute, &ut she (ould )ertainly ha'e lost a relati'e
ad'anta*e-
In order, ho(e'er, to o&tain this relati'e ad'anta*e in the
)olony trade, in order to e1e)ute the in'idious and mali*nant
+ro2e)t of e1)ludin* as mu)h as +ossi&le other nations from any
share in it, $n*land, there are 'ery +ro&a&le reasons for
&elie'in*, has not only sa)rifi)ed a +art of the a&solute
ad'anta*e (hi)h she, as (ell as e'ery other nation, mi*ht ha'e
deri'ed from that trade, &ut has su&2e)ted herself &oth to an
a&solute and to a relati'e disad'anta*e in almost e'ery other
&ran)h of trade-
When, &y the A)t of Na'i*ation, $n*land assumed to herself
the mono+oly of the )olony trade, the forei*n )a+itals (hi)h had
&efore &een em+loyed in it (ere ne)essarily (ithdra(n from it-
The $n*lish )a+ital, (hi)h had &efore )arried on &ut a +art of
it, (as no( to )arry on the (hole- The )a+ital (hi)h had &efore
su++lied the )olonies (ith &ut a +art of the *oods (hi)h they
(anted from $uro+e (as no( all that (as em+loyed to su++ly them
(ith the (hole- .ut it )ould not su++ly them (ith the (hole, and
the *oods (ith (hi)h it did su++ly them (ere ne)essarily sold
'ery dear- The )a+ital (hi)h had &efore &ou*ht &ut a +art of the
sur+lus +rodu)e of the )olonies, (as no( all that (as em+loyed to
&uy the (hole- .ut it )ould not &uy the (hole at anythin* near
the old +ri)e, and, therefore, (hate'er it did &uy it ne)essarily
&ou*ht 'ery )hea+- .ut in an em+loyment of )a+ital in (hi)h the
mer)hant sold 'ery dear and &ou*ht 'ery )hea+, the +rofit must
ha'e &een 'ery *reat, and mu)h a&o'e the ordinary le'el of +rofit
in other &ran)hes of trade- This su+eriority of +rofit in the
)olony trade )ould not fail to dra( from other &ran)hes of trade
a +art of the )a+ital (hi)h had &efore &een em+loyed in them- .ut
this re'ulsion of )a+ital, as it must ha'e *radually in)reased
the )om+etition of )a+itals in the )olony trade, so it must ha'e
*radually diminished that )om+etition in all those other &ran)hes
of trade/ as it must ha'e *radually lo(ered the +rofits of the
one, so it must ha'e *radually raised those of the other, till
the +rofits of all )ame to a ne( le'el, different from and
some(hat hi*her than that at (hi)h they had &een &efore-
This dou&le effe)t of dra(in* )a+ital from all other trades,
and of raisin* the rate of +rofit some(hat hi*her than it
other(ise (ould ha'e &een in all trades, (as not only +rodu)ed &y
this mono+oly u+on its first esta&lishment, &ut has )ontinued to
&e +rodu)ed &y it e'er sin)e-
"irst, this mono+oly has &een )ontinually dra(in* )a+ital
from all other trades to &e em+loyed in that of the )olonies-
Thou*h the (ealth of 6reat .ritain has in)reased 'ery mu)h
sin)e the esta&lishment of the A)t of Na'i*ation, it )ertainly
has not in)reased in the same +ro+ortion as that of the )olonies-
.ut the forei*n trade of e'ery )ountry naturally in)reases in
+ro+ortion to its (ealth, its sur+lus +rodu)e in +ro+ortion to
its (hole +rodu)e/ and 6reat .ritain ha'in* en*rossed to herself
almost the (hole of (hat may &e )alled the forei*n trade of the
)olonies, and her )a+ital not ha'in* in)reased in the same
+ro+ortion as the e1tent of that trade, she )ould not )arry it on
(ithout )ontinually (ithdra(in* from other &ran)hes of trade some
+art of the )a+ital (hi)h had &efore &een em+loyed in them as
(ell as (ithholdin* from them a *reat deal more (hi)h (ould
other(ise ha'e *one to them- Sin)e the esta&lishment of the A)t
of Na'i*ation, a))ordin*ly, the )olony trade has &een )ontinually
in)reasin*, (hile many other &ran)hes of forei*n trade,
+arti)ularly of that to other +arts of $uro+e, ha'e &een
)ontinually de)ayin*- Our manufa)tures for forei*n sale, instead
of &ein* suited, as &efore the A)t of Na'i*ation, to the
nei*h&ourin* mar0et of $uro+e, or to the more distant one of the
)ountries (hi)h lie round the 4editerranean Sea, ha'e, the
*reater +art of them, &een a))ommodated to the still more distant
one of the )olonies, to the mar0et in (hi)h they ha'e the
mono+oly rather than to that in (hi)h they ha'e many )om+etitors-
The )auses of de)ay in other &ran)hes of forei*n trade, (hi)h, &y
Sir 4atthe( De)0er and other (riters, ha'e &een sou*ht for in the
e1)ess and im+ro+er mode of ta1ation, in the hi*h +ri)e of
la&our, in the in)rease of lu1ury, et)-, may all &e found in the
o'er*ro(th of the )olony trade- The mer)antile )a+ital of 6reat
.ritain, thou*h 'ery *reat, yet not &ein* infinite, and thou*h
*reatly in)reased sin)e the A)t of Na'i*ation, yet not &ein*
in)reased in the same +ro+ortion as the )olony trade, that trade
)ould not +ossi&ly &e )arried on (ithout (ithdra(in* some +art of
that )a+ital from other &ran)hes of trade, nor )onsequently
(ithout some de)ay of those other &ran)hes-
$n*land, it must &e o&ser'ed, (as a *reat tradin* )ountry,
her mer)antile )a+ital (as 'ery *reat and li0ely to &e)ome still
*reater and *reater e'ery day, not only &efore the A)t of
Na'i*ation had esta&lished the mono+oly of the )olony trade, &ut
&efore that trade (as 'ery )onsidera&le- In the Dut)h (ar, durin*
the *o'ernment of Crom(ell, her na'y (as su+erior to that of
#olland/ and in that (hi)h &ro0e out in the &e*innin* of the
rei*n of Charles II, it (as at last equal, +erha+s su+erior, to
the united na'ies of "ran)e and #olland- Its su+eriority,
+erha+s, (ould s)ar)e a++ear *reater in the +resent times/ at
least if the Dut)h na'y (as to &ear the same +ro+ortion to the
Dut)h )ommer)e no( (hi)h it did then- .ut this *reat na'al +o(er
)ould not, in either of those (ars, &e o(in* to the A)t of
Na'i*ation- Durin* the first of them the +lan of that a)t had
&een &ut 2ust formed/ and thou*h &efore the &rea0in* out of the
se)ond it had &een fully ena)ted &y le*al authority, yet no +art
of it )ould ha'e had time to +rodu)e any )onsidera&le effe)t, and
least of all that +art (hi)h esta&lished the e1)lusi'e trade to
the )olonies- .oth the )olonies and their trade (ere
in)onsidera&le then in )om+arison of (hat they are no(- The
island of Aamai)a (as an un(holesome desert, little inha&ited,
and less )ulti'ated- Ne( 7or0 and Ne( Aersey (ere in the
+ossession of the Dut)h3 the half of St- Christo+her=s in that of
the "ren)h- The island of Anti*ua, the t(o Carolinas,
ennsyl'ania, 6eor*ia, and No'a S)otia (ere not +lanted-
5ir*inia, 4aryland, and Ne( $n*land (ere +lanted/ and thou*h they
(ere 'ery thri'in* )olonies, yet there (as not, +erha+s, at that
time, either in $uro+e or Ameri)a, a sin*le +erson (ho foresa( or
e'en sus+e)ted the ra+id +ro*ress (hi)h they ha'e sin)e made in
(ealth, +o+ulation, and im+ro'ement- The island of .ar&adoes, in
short, (as the only .ritish )olony of any )onsequen)e of (hi)h
the )ondition at that time &ore any resem&lan)e to (hat it is at
+resent- The trade of the )olonies, of (hi)h $n*land, e'en for
some time after the A)t of Na'i*ation, en2oyed &ut a +art 9for
the A)t of Na'i*ation (as not 'ery stri)tly e1e)uted till se'eral
years after it (as ena)ted:, )ould not at that time &e the )ause
of the *reat trade of $n*land, nor of the *reat na'al +o(er (hi)h
(as su++orted &y that trade- The trade (hi)h at that time
su++orted that *reat na'al +o(er (as the trade of $uro+e, and of
the )ountries (hi)h lie round the 4editerranean Sea- .ut the
share (hi)h 6reat .ritain at +resent en2oys of that trade )ould
not su++ort any su)h *reat na'al +o(er- #ad the *ro(in* trade of
the )olonies &een left free to all nations, (hate'er share of it
mi*ht ha'e fallen to 6reat .ritain, and a 'ery )onsidera&le share
(ould +ro&a&ly ha'e fallen to her, must ha'e &een all an addition
to this *reat trade of (hi)h she (as &efore in +ossession- In
)onsequen)e of the mono+oly, the in)rease of the )olony trade has
not so mu)h o))asioned an addition to the trade (hi)h 6reat
.ritain had &efore as a total )han*e in its dire)tion-
Se)ondly, this mono+oly has ne)essarily )ontri&uted to 0ee+
u+ the rate of +rofit in all the different &ran)hes of .ritish
trade hi*her than it naturally (ould ha'e &een had all nations
&een allo(ed a free trade to the .ritish )olonies-
The mono+oly of the )olony trade, as it ne)essarily dre(
to(ards that trade a *reater +ro+ortion of the )a+ital of 6reat
.ritain than (hat (ould ha'e *one to it of its o(n a))ord/ so &y
the e1+ulsion of all forei*n )a+itals it ne)essarily redu)ed the
(hole quantity of )a+ital em+loyed in that trade &elo( (hat it
naturally (ould ha'e &een in the )ase of a free trade- .ut, &y
lessenin* the )om+etition of )a+itals in that &ran)h of trade, it
ne)essarily raised the rate of +rofit in that &ran)h- .y
lessenin*, too, the )om+etition of .ritish )a+itals in all other
&ran)hes of trade, it ne)essarily raised the rate of .ritish
+rofit in all those other &ran)hes- Whate'er may ha'e &een, at
any +arti)ular +eriod, sin)e the esta&lishment of the A)t of
Na'i*ation, the state or e1tent of the mer)antile )a+ital of
6reat .ritain, the mono+oly of the )olony trade must, durin* the
)ontinuan)e of that state, ha'e raised the ordinary rate of
.ritish +rofit hi*her than it other(ise (ould ha'e &een &oth in
that and in all the other &ran)hes of .ritish trade- If, sin)e
the esta&lishment of the A)t of Na'i*ation, the ordinary rate of
.ritish +rofit has fallen )onsidera&ly, as it )ertainly has, it
must ha'e fallen still lo(er, had not the mono+oly esta&lished &y
that a)t )ontri&uted to 0ee+ it u+-
.ut (hate'er raises in any )ountry the ordinary rate of
+rofit hi*her than it other(ise (ould &e, ne)essarily su&2e)ts
that )ountry &oth to an a&solute and to a relati'e disad'anta*e
in e'ery &ran)h of trade of (hi)h she has not the mono+oly-
It su&2e)ts her to an a&solute disad'anta*e/ &e)ause in su)h
&ran)hes of trade her mer)hants )annot *et this *reater +rofit
(ithout sellin* dearer than they other(ise (ould do &oth the
*oods of forei*n )ountries (hi)h they im+ort into their o(n, and
the *oods of their o(n )ountry (hi)h they e1+ort to forei*n
)ountries- Their o(n )ountry must &oth &uy dearer and sell
dearer/ must &oth &uy less and sell less/ must &oth en2oy less
and +rodu)e less, than she other(ise (ould do-
It su&2e)ts her to a relati'e disad'anta*e/ &e)ause in su)h
&ran)hes of trade it sets other )ountries (hi)h are not su&2e)t
to the same a&solute disad'anta*e either more a&o'e her or less
&elo( her than they other(ise (ould &e- It ena&les them &oth to
en2oy more and to +rodu)e more in +ro+ortion to (hat she en2oys
and +rodu)es- It renders their su+eriority *reater or their
inferiority less than it other(ise (ould &e- .y raisin* the +ri)e
of her +rodu)e a&o'e (hat it other(ise (ould &e, it ena&les the
mer)hants of other )ountries to undersell her in forei*n mar0ets,
and there&y to 2ostle her out of almost all those &ran)hes of
trade, of (hi)h she has not the mono+oly-
Our mer)hants frequently )om+lain of the hi*h (a*es of
.ritish la&our as the )ause of their manufa)tures &ein* undersold
in forei*n mar0ets, &ut they are silent a&out the hi*h +rofits of
sto)0- They )om+lain of the e1tra'a*ant *ain of other +eo+le, &ut
they say nothin* of their o(n- The hi*h +rofits of .ritish sto)0,
ho(e'er, may )ontri&ute to(ards raisin* the +ri)e of .ritish
manufa)tures in many )ases as mu)h, and in some +erha+s more,
than the hi*h (a*es of .ritish la&our-
It is in this manner that the )a+ital of 6reat .ritain, one
may 2ustly say, has +artly &een dra(n and +artly &een dri'en from
the *reater +art of the different &ran)hes of trade of (hi)h she
has not the mono+oly/ from the trade of $uro+e in +arti)ular, and
from that of the )ountries (hi)h lie round the 4editerranean Sea-
It has +artly &een dra(n from those &ran)hes of trade &y the
attra)tion of su+erior +rofit in the )olony trade in )onsequen)e
of the )ontinual in)rease of that trade, and of the )ontinual
insuffi)ien)y of the )a+ital (hi)h had )arried it on one year to
)arry it on the ne1t-
It has +artly &een dri'en from them &y the ad'anta*e (hi)h
the hi*h rate of +rofit, esta&lished in 6reat .ritain, *i'es to
other )ountries in all the different &ran)hes of trade of (hi)h
6reat .ritain has not the mono+oly-
As the mono+oly of the )olony trade has dra(n from those
other &ran)hes a +art of the .ritish )a+ital (hi)h (ould
other(ise ha'e &een em+loyed in them, so it has for)ed into them
many forei*n )a+itals (hi)h (ould ne'er ha'e *one to them had
they not &een e1+elled from the )olony trade- In those other
&ran)hes of trade it has diminished the )om+etition of .ritish
)a+ital, and there&y raised the rate of .ritish +rofit hi*her
than it other(ise (ould ha'e &een- On the )ontrary, it has
in)reased the )om+etition of forei*n )a+itals, and there&y sun0
the rate of forei*n +rofit lo(er than it other(ise (ould ha'e
&een- .oth in the one (ay and in the other it must e'idently ha'e
su&2e)ted 6reat .ritain to a relati'e disad'anta*e in all those
other &ran)hes of trade-
The )olony trade, ho(e'er, it may +erha+s &e said, is more
ad'anta*eous to 6reat .ritain than any other/ and the mono+oly,
&y for)in* into that trade a *reater +ro+ortion of the )a+ital of
6reat .ritain than (hat (ould other(ise ha'e *one to it, has
turned that )a+ital into an em+loyment more ad'anta*eous to the
)ountry than any other (hi)h it )ould ha'e found-
The most ad'anta*eous em+loyment of any )a+ital to the
)ountry to (hi)h it &elon*s is that (hi)h maintains there the
*reatest quantity of +rodu)ti'e la&our, and in)reases the most
the annual +rodu)e of the land and la&our of that )ountry- .ut
the quantity of +rodu)ti'e la&our (hi)h any )a+ital em+loyed in
the forei*n trade of )onsum+tion )an maintain is e1a)tly in
+ro+ortion, it has &een sho(n in the se)ond &oo0, to the
frequen)y of its returns- A )a+ital of a thousand +ounds, for
e1am+le, em+loyed in a forei*n trade of )onsum+tion, of (hi)h the
returns are made re*ularly on)e in the year, )an 0ee+ in )onstant
em+loyment, in the )ountry to (hi)h it &elon*s, a quantity of
+rodu)ti'e la&our equal to (hat a thousand +ounds )an maintain
there for a year- If the returns are made t(i)e or thri)e in the
year, it )an 0ee+ in )onstant em+loyment a quantity of +rodu)ti'e
la&our equal to (hat t(o or three thousand +ounds )an maintain
there for a year- A forei*n trade of )onsum+tion )arried on (ith
a nei*h&ourin* )ountry is, u+on this a))ount, in *eneral more
ad'anta*eous than one )arried on (ith a distant )ountry/ and for
the same reason a dire)t forei*n trade of )onsum+tion, as it has
li0e(ise &een sho(n in the se)ond &oo0, is in *eneral more
ad'anta*eous than a round8a&out one-
.ut the mono+oly of the )olony trade, so far as it has
o+erated u+on the em+loyment of the )a+ital of 6reat .ritain, has
in all )ases for)ed some +art of it from a forei*n trade of
)onsum+tion )arried on (ith a nei*h&ourin*, to one )arried on
(ith a more distant )ountry, and in many )ases from a dire)t
forei*n trade of )onsum+tion to a round8a&out one-
"irst, the mono+oly of the )olony trade has in all )ases
for)ed some +art of the )a+ital of 6reat .ritain from a forei*n
trade of )onsum+tion )arried on (ith a nei*h&ourin* to one
)arried on (ith a more distant )ountry-
It has, in all )ases, for)ed some +art of that )a+ital from
the trade (ith $uro+e, and (ith the )ountries (hi)h lie round the
4editerranean Sea, to that (ith the more distant re*ions of
Ameri)a and the West Indies, from (hi)h the returns are
ne)essarily less frequent, not only on a))ount of the *reater
distan)e, &ut on a))ount of the +e)uliar )ir)umstan)es of those
)ountries- Ne( )olonies, it has already &een o&ser'ed, are al(ays
understo)0ed- Their )a+ital is al(ays mu)h less than (hat they
)ould em+loy (ith *reat +rofit and ad'anta*e in the im+ro'ement
and )ulti'ation of their land- They ha'e a )onstant demand,
therefore, for more )a+ital than they ha'e of their o(n/ and, in
order to su++ly the defi)ien)y of their o(n, they endea'our to
&orro( as mu)h as they )an of the mother )ountry, to (hom they
are, therefore, al(ays in de&t- The most )ommon (ay in (hi)h the
)olonists )ontra)t this de&t is not &y &orro(in* u+on &ond of the
ri)h +eo+le of the mother )ountry, thou*h they sometimes do this
too, &ut &y runnin* as mu)h in arrear to their )orres+ondents,
(ho su++ly them (ith *oods from $uro+e, as those )orres+ondents
(ill allo( them- Their annual returns frequently do not amount to
more than a third, and sometimes not to so *reat a +ro+ortion of
(hat they o(e- The (hole )a+ital, therefore, (hi)h their
)orres+ondents ad'an)e to them is seldom returned to .ritain in
less than three, and sometimes not in less than four or fi'e
years- .ut a .ritish )a+ital of a thousand +ounds, for e1am+le,
(hi)h is returned to 6reat .ritain only on)e in fi'e years, )an
0ee+ in )onstant em+loyment only one8fifth +art of the .ritish
industry (hi)h it )ould maintain if the (hole (as returned on)e
in the year/ and, instead of the quantity of industry (hi)h a
thousand +ounds )ould maintain for a year, )an 0ee+ in )onstant
em+loyment the quantity only (hi)h t(o hundred +ounds )an
maintain for a year- The +lanter, no dou&t, &y the hi*h +ri)e
(hi)h he +ays for the *oods from $uro+e, &y the interest u+on the
&ills (hi)h he *rants at distant dates, and &y the )ommission
u+on the rene(al of those (hi)h he *rants at near dates, ma0es
u+, and +ro&a&ly more than ma0es u+, all the loss (hi)h his
)orres+ondent )an sustain &y this delay- .ut thou*h he may ma0e
u+ the loss of his )orres+ondent, he )annot ma0e u+ that of 6reat
.ritain- In a trade of (hi)h the returns are 'ery distant, the
+rofit of the mer)hant may &e as *reat or *reater than in one in
(hi)h they are 'ery frequent and near/ &ut the ad'anta*e of the
)ountry in (hi)h he resides, the quantity of +rodu)ti'e la&our
)onstantly maintained there, the annual +rodu)e of the land and
la&our must al(ays &e mu)h less- That the returns of the trade to
Ameri)a, and still more those of that to the West Indies are, in
*eneral, not only more distant &ut more irre*ular, and more
un)ertain too, than those of the trade to any +art of $uro+e, or
e'en of the )ountries (hi)h lie round the 4editerranean Sea, (ill
readily &e allo(ed, I ima*ine, &y e'ery&ody (ho has any
e1+erien)e of those different &ran)hes of trade-
Se)ondly, the mono+oly of the )olony trade has, in many
)ases, for)ed some +art of the )a+ital of 6reat .ritain from a
dire)t forei*n trade of )onsum+tion into a round8a&out one-
Amon* the enumerated )ommodities (hi)h )an &e sent to no
other mar0et &ut 6reat .ritain, there are se'eral of (hi)h the
quantity e1)eeds 'ery mu)h the )onsum+tion of 6reat .ritain, and
of (hi)h a +art, therefore, must &e e1+orted to other )ountries-
.ut this )annot &e done (ithout for)in* some +art of the )a+ital
of 6reat .ritain into a round8a&out forei*n trade of )onsum+tion-
4aryland and 5ir*inia, for e1am+le, send annually to 6reat
.ritain u+(ards of ninety8si1 thousand ho*sheads of to&a))o, and
the )onsum+tion of 6reat .ritain is said not to e1)eed fourteen
thousand- U+(ards of ei*hty8t(o thousand ho*sheads, therefore,
must &e e1+orted to other )ountries, to "ran)e, to #olland, and
to the )ountries (hi)h lie round the .alti) and 4editerranean
Seas- .ut that +art of the )a+ital of 6reat .ritain (hi)h &rin*s
those ei*hty8t(o thousand ho*sheads to 6reat .ritain, (hi)h
re8e1+orts them from then)e to those other )ountries, and (hi)h
&rin*s &a)0 from those other )ountries to 6reat .ritain either
*oods or money in return, is em+loyed in a round8a&out forei*n
trade of )onsum+tion/ and is ne)essarily for)ed into this
em+loyment in order to dis+ose of this *reat sur+lus- If (e (ould
)om+ute in ho( many years the (hole of this )a+ital is li0ely to
)ome &a)0 to 6reat .ritain, (e must add to the distan)e of the
Ameri)an returns that of the returns from those other )ountries-
If, in the dire)t forei*n trade of )onsum+tion (hi)h (e )arry on
(ith Ameri)a, the (hole )a+ital em+loyed frequently does not )ome
&a)0 in less than three or four years, the (hole )a+ital em+loyed
in this round8a&out one is not li0ely to )ome &a)0 in less than
four or fi'e- If the one )an 0ee+ in )onstant em+loyment &ut a
third or a fourth +art of the domesti) industry (hi)h )ould &e
maintained &y a )a+ital returned on)e in the year, the other )an
0ee+ in )onstant em+loyment &ut a fourth or fifth +art of that
industry- At some of the out8+orts a )redit is )ommonly *i'en to
those forei*n )orres+ondents to (hom they e1+ort their to&a))o-
At the +ort of !ondon, indeed, it is )ommonly sold for ready
money- The rule is, Wei*h and +ay- At the +ort of !ondon,
therefore, the final returns of the (hole round8a&out trade are
more distant than the returns from Ameri)a &y the time only (hi)h
the *oods may lie unsold in the (arehouse/ (here, ho(e'er, they
may sometimes lie lon* enou*h- .ut had not the )olonies &een
)onfined to the mar0et of 6reat .ritain for the sale of their
to&a))o, 'ery little more of it (ould +ro&a&ly ha'e )ome to us
than (hat (as ne)essary for the home )onsum+tion- The *oods (hi)h
6reat .ritain +ur)hases at +resent for her o(n )onsum+tion (ith
the *reat sur+lus of to&a))o (hi)h she e1+orts to other
)ountries, she (ould in this )ase +ro&a&ly ha'e +ur)hased (ith
the immediate +rodu)e of her o(n industry, or (ith some +art of
her o(n manufa)tures- That +rodu)e, those manufa)tures, instead
of &ein* almost entirely suited to one *reat mar0et, as at
+resent, (ould +ro&a&ly ha'e &een fitted to a *reat num&er of
smaller mar0ets- Instead of one *reat round8a&out forei*n trade
of )onsum+tion, 6reat .ritain (ould +ro&a&ly ha'e )arried on a
*reat num&er of small dire)t forei*n trades of the same 0ind- On
a))ount of the frequen)y of the returns, a +art, and +ro&a&ly &ut
a small +art/ +erha+s not a&o'e a third or a fourth of the
)a+ital (hi)h at +resent )arries on this *reat round8a&out trade
mi*ht ha'e &een suffi)ient to )arry on all those small dire)t
ones, mi*ht ha'e 0e+t in )onstant em+loyment an equal quantity of
.ritish industry, and ha'e equally su++orted the annual +rodu)e
of the land and la&our of 6reat .ritain- All the +ur+oses of this
trade &ein*, in this manner, ans(ered &y a mu)h smaller )a+ital,
there (ould ha'e &een a lar*e s+are )a+ital to a++ly to other
+ur+oses3 to im+ro'e the lands, to in)rease the manufa)tures, and
to e1tend the )ommer)e of 6reat .ritain/ to )ome into )om+etition
at least (ith the other .ritish )a+itals em+loyed in all those
different (ays, to redu)e the rate of +rofit in them all, and
there&y to *i'e to 6reat .ritain, in all of them, a su+eriority
o'er other )ountries still *reater than (hat she at +resent
en2oys-
The mono+oly of the )olony trade, too, has for)ed some +art
of the )a+ital of 6reat .ritain from all forei*n trade of
)onsum+tion to a )arryin* trade/ and )onsequently, from
su++ortin* more or less the industry of 6reat .ritain, to &e
em+loyed alto*ether in su++ortin* +artly that of the )olonies and
+artly that of some other )ountries-
The *oods, for e1am+le, (hi)h are annually +ur)hased (ith
the *reat sur+lus of ei*hty8t(o thousand ho*sheads of to&a))o
annually re8e1+orted from 6reat .ritain are not all )onsumed in
6reat .ritain- art of them, linen from 6ermany and #olland, for
e1am+le, is returned to the )olonies for their +arti)ular
)onsum+tion- .ut that +art of the )a+ital of 6reat .ritain (hi)h
&uys the to&a))o (ith (hi)h this linen is after(ards &ou*ht is
ne)essarily (ithdra(n from su++ortin* the industry of 6reat
.ritain, to &e em+loyed alto*ether in su++ortin*, +artly that of
the )olonies, and +artly that of the +arti)ular )ountries (ho +ay
for this to&a))o (ith the +rodu)e of their o(n industry-
The mono+oly of the )olony trade &esides, &y for)in* to(ards
it a mu)h *reater +ro+ortion of the )a+ital of 6reat .ritain than
(hat (ould naturally ha'e *one to it, seems to ha'e &ro0en
alto*ether that natural &alan)e (hi)h (ould other(ise ha'e ta0en
+la)e amon* all the different &ran)hes of .ritish industry- The
industry of 6reat .ritain, instead of &ein* a))ommodated to a
*reat num&er of small mar0ets, has &een +rin)i+ally suited to one
*reat mar0et- #er )ommer)e, instead of runnin* in a *reat num&er
of small )hannels, has &een tau*ht to run +rin)i+ally in one
*reat )hannel- .ut the (hole system of her industry and )ommer)e
has there&y &een rendered less se)ure, the (hole state of her
&ody +oliti) less healthful than it other(ise (ould ha'e &een- In
her +resent )ondition, 6reat .ritain resem&les one of those
un(holesome &odies in (hi)h some of the 'ital +arts are
o'er*ro(n, and (hi)h, u+on that a))ount, are lia&le to many
dan*erous disorders s)ar)e in)ident to those in (hi)h all the
+arts are more +ro+erly +ro+ortioned- A small sto+ in that *reat
&lood8'essel, (hi)h has &een artifi)ially s(elled &eyond its
natural dimensions, and throu*h (hi)h an unnatural +ro+ortion of
the industry and )ommer)e of the )ountry has &een for)ed to
)ir)ulate, is 'ery li0ely to &rin* on the most dan*erous
disorders u+on the (hole &ody +oliti)- The e1+e)tation of a
ru+ture (ith the )olonies, a))ordin*ly, has stru)0 the +eo+le of
6reat .ritain (ith more terror than they e'er felt for a S+anish
armada, or a "ren)h in'asion- It (as this terror, (hether (ell or
ill *rounded, (hi)h rendered the re+eal of the Stam+ A)t, amon*
the mer)hants at least, a +o+ular measure- In the total e1)lusion
from the )olony mar0et, (as it to last only for a fe( years, the
*reater +art of our mer)hants used to fan)y that they foresa( an
entire sto+ to their trade/ the *reater +art of our master
manufa)turers, the entire ruin of their &usiness/ and the *reater
+art of our (or0men, an end of their em+loyment- A ru+ture (ith
any of our nei*h&ours u+on the )ontinent, thou*h li0ely, too, to
o))asion some sto+ or interru+tion in the em+loyments of some of
all these different orders of +eo+le, is foreseen, ho(e'er,
(ithout any su)h *eneral emotion- The &lood, of (hi)h the
)ir)ulation is sto++ed in some of the smaller 'essels, easily
dis*or*es itself into the *reater (ithout o))asionin* any
dan*erous disorder/ &ut, (hen it is sto++ed in any of the *reater
'essels, )on'ulsions, a+o+le1y, or death, are the immediate and
una'oida&le )onsequen)es- If &ut one of those o'er*ro(n
manufa)tures, (hi)h, &y means either of &ounties or of the
mono+oly of the home and )olony mar0ets, ha'e &een artifi)ially
raised u+ to an unnatural hei*ht, finds some small sto+ or
interru+tion in its em+loyment, it frequently o))asions a mutiny
and disorder alarmin* to *o'ernment, and em&arrassin* e'en to the
deli&erations of the le*islature- #o( *reat, therefore, (ould &e
the disorder and )onfusion, it (as thou*ht, (hi)h must
ne)essarily &e o))asioned &y a sudden and entire sto+ in the
em+loyment of so *reat a +ro+ortion of our +rin)i+al
manufa)turers-
Some moderate and *radual rela1ation of the la(s (hi)h *i'e
to 6reat .ritain the e1)lusi'e trade to the )olonies, till it is
rendered in a *reat measure free, seems to &e the only e1+edient
(hi)h )an, in all future times, deli'er her from this dan*er,
(hi)h )an ena&le her or e'en for)e her to (ithdra( some +art of
her )a+ital from this o'er*ro(n em+loyment, and to turn it,
thou*h (ith less +rofit, to(ards other em+loyments/ and (hi)h, &y
*radually diminishin* one &ran)h of her industry and *radually
in)reasin* all the rest, )an &y de*rees restore all the different
&ran)hes of it to that natural, healthful, and +ro+er +ro+ortion
(hi)h +erfe)t li&erty ne)essarily esta&lishes, and (hi)h +erfe)t
li&erty )an alone +reser'e- To o+en the )olony trade all at on)e
to all nations mi*ht not only o))asion some transitory
in)on'enien)y, &ut a *reat +ermanent loss to the *reater +art of
those (hose industry or )a+ital is at +resent en*a*ed in it- The
sudden loss of the em+loyment e'en of the shi+s (hi)h im+ort the
ei*hty8t(o thousand ho*sheads of to&a))o, (hi)h are o'er and
a&o'e the )onsum+tion of 6reat .ritain, mi*ht alone &e felt 'ery
sensi&ly- Su)h are the unfortunate effe)ts of all the re*ulations
of the mer)antile system< They not only introdu)e 'ery dan*erous
disorders into the state of the &ody +oliti), &ut disorders (hi)h
it is often diffi)ult to remedy, (ithout o))asionin* for a time
at least, still *reater disorders- In (hat manner, therefore, the
)olony trade ou*ht *radually to &e o+ened/ (hat are the
restraints (hi)h ou*ht first, and (hat are those (hi)h ou*ht last
to &e ta0en a(ay/ or in (hat manner the natural system of +erfe)t
li&erty and 2usti)e ou*ht *radually to &e restored, (e must lea'e
to the (isdom of future statesmen and le*islators to determine-
"i'e different e'ents, unforeseen and unthou*ht of, ha'e
'ery fortunately )on)urred to hinder 6reat .ritain from feelin*,
so sensi&ly as it (as *enerally e1+e)ted she (ould, the total
e1)lusion (hi)h has no( ta0en +la)e for more than a year 9from
the first of De)em&er, 177G: from a 'ery im+ortant &ran)h of the
)olony trade, that of the t(el'e asso)iated +ro'in)es of North
Ameri)a- "irst, those )olonies, in +re+arin* themsel'es for their
non8im+ortation a*reement, drained 6reat .ritain )om+letely of
all the )ommodities (hi)h (ere fit for their mar0et/ se)ondly,
the e1traordinary demand of the S+anish "lota has, this year,
drained 6ermany and the North of many )ommodities, linen in
+arti)ular, (hi)h used to )ome into )om+etition, e'en in the
.ritish mar0et, (ith the manufa)tures of 6reat .ritain/ thirdly,
the +ea)e &et(een Russia and Tur0ey has o))asioned an
e1traordinary demand from the Tur0ey mar0et, (hi)h, durin* the
distress of the )ountry, and (hile a Russian fleet (as )ruisin*
in the Ar)hi+ela*o, had &een 'ery +oorly su++lied/ fourthly, the
demand of the North of $uro+e for the manufa)tures of 6reat
.ritain has &een in)reasin* from year to year for some time +ast/
and fifthly, the late +artition and )onsequential +a)ifi)ation of
oland, &y o+enin* the mar0et of that *reat )ountry, ha'e this
year added an e1traordinary demand from then)e to the in)reasin*
demand of the North- These e'ents are all, e1)e+t the fourth, in
their nature transitory and a))idental, and the e1)lusion from so
im+ortant a &ran)h of the )olony trade, if unfortunately it
should )ontinue mu)h lon*er, may still o))asion some de*ree of
distress- This distress, ho(e'er, as it (ill )ome on *radually,
(ill &e felt mu)h less se'erely than if it had )ome on all at
on)e/ and, in the meantime, the industry and )a+ital of the
)ountry may find a ne( em+loyment and dire)tion, so as to +re'ent
this distress from e'er risin* to any )onsidera&le hei*ht-
The mono+oly of the )olony trade, therefore, so far as it
has turned to(ards that trade a *reater +ro+ortion of the )a+ital
of 6reat .ritain than (hat (ould other(ise ha'e *one to it, has
in all )ases turned it, from a forei*n trade of )onsum+tion (ith
a nei*h&ourin* into one (ith a more distant )ountry/ in many
)ases, from a dire)t forei*n trade of )onsum+tion into a
round8a&out one/ and in some )ases, from all forei*n trade of
)onsum+tion into a )arryin* trade- It has in all )ases,
therefore, turned it from a dire)tion in (hi)h it (ould ha'e
maintained a *reater quantity of +rodu)ti'e la&our into one in
(hi)h it )an maintain a mu)h smaller quantity- .y suitin*,
&esides, to one +arti)ular mar0et only so *reat a +art of the
industry and )ommer)e of 6reat .ritain, it has rendered the (hole
state of that industry and )ommer)e more +re)arious and less
se)ure than if their +rodu)e had &een a))ommodated to a *reater
'ariety of mar0ets-
We must )arefully distin*uish &et(een the effe)ts of the
)olony trade and those of the mono+oly of that trade- The former
are al(ays and ne)essarily &enefi)ial/ the latter al(ays and
ne)essarily hurtful- .ut the former are so &enefi)ial that the
)olony trade, thou*h su&2e)t to a mono+oly, and not(ithstandin*
the hurtful effe)ts of that mono+oly, is still u+on the (hole
&enefi)ial, and *reatly &enefi)ial/ thou*h a *ood deal less so
than it other(ise (ould &e-
The effe)t of the )olony trade in its natural and free state
is to o+en a *reat, thou*h distant, mar0et for su)h +arts of the
+rodu)e of .ritish industry as may e1)eed the demand of the
mar0ets nearer home, of those of $uro+e, and of the )ountries
(hi)h lie round the 4editerranean Sea- In its natural and free
state, the )olony trade, (ithout dra(in* from those mar0ets any
+art of the +rodu)e (hi)h had e'er &een sent to them, en)oura*es
6reat .ritain to in)rease the sur+lus )ontinually &y )ontinually
+resentin* ne( equi'alents to &e e1)han*ed for it- In its natural
and free state, the )olony trade tends to in)rease the quantity
of +rodu)ti'e la&our in 6reat .ritain, &ut (ithout alterin* in
any res+e)t the dire)tion of that (hi)h had &een em+loyed there
&efore- In the natural and free state of the )olony trade, the
)om+etition of all other nations (ould hinder the rate of +rofit
from risin* a&o'e the )ommon le'el either in the ne( mar0et or in
the ne( em+loyment- The ne( mar0et, (ithout dra(in* anythin* from
the old one, (ould )reate, if one may say so, a ne( +rodu)e for
its o(n su++ly/ and that ne( +rodu)e (ould )onstitute a ne(
)a+ital for )arryin* on the ne( em+loyment, (hi)h in the same
manner (ould dra( nothin* from the old one-
The mono+oly of the )olony trade, on the )ontrary, &y
e1)ludin* the )om+etition of other nations, and there&y raisin*
the rate of +rofit &oth in the ne( mar0et and in the ne(
em+loyment, dra(s +rodu)e from the old mar0et and )a+ital from
the old em+loyment- To au*ment our share of the )olony trade
&eyond (hat it other(ise (ould &e is the a'o(ed +ur+ose of the
mono+oly- If our share of that trade (ere to &e no *reater (ith
than it (ould ha'e &een (ithout the mono+oly, there )ould ha'e
&een no reason for esta&lishin* the mono+oly- .ut (hate'er for)es
into a &ran)h of trade of (hi)h the returns are slo(er and more
distant than those of the *reater +art of other trades, a *reater
+ro+ortion of the )a+ital of any )ountry than (hat of its o(n
a))ord (ould *o to that &ran)h, ne)essarily renders the (hole
quantity of +rodu)ti'e la&our annually maintained there, the
(hole annual +rodu)e of the land and la&our of that )ountry, less
than they other(ise (ould &e- It 0ee+s do(n the re'enue of the
inha&itants of that )ountry &elo( (hat it (ould naturally rise
to, and there&y diminishes their +o(er of a))umulation- It not
only hinders, at all times, their )a+ital from maintainin* so
*reat a quantity of +rodu)ti'e la&our as it (ould other(ise
maintain, &ut it hinders it from in)reasin* so fast as it (ould
other(ise in)rease, and )onsequently from maintainin* a still
*reater quantity of +rodu)ti'e la&our-
The natural *ood effe)ts of the )olony trade, ho(e'er, more
than )ounter&alan)e to 6reat .ritain the &ad effe)ts of the
mono+oly, so that, mono+oly and all to*ether, that trade, e'en as
it )arried on at +resent, is not only ad'anta*eous, &ut *reatly
ad'anta*eous- The ne( mar0et and the ne( em+loyment (hi)h are
o+ened &y the )olony trade are of mu)h *reater e1tent than that
+ortion of the old mar0et and of the old em+loyment (hi)h is lost
&y the mono+oly- The ne( +rodu)e and the ne( )a+ital (hi)h has
&een )reated, if one may say so, &y the )olony trade, maintain in
6reat .ritain a *reater quantity of +rodu)ti'e la&our than (hat
)an ha'e &een thro(n out of em+loyment &y the re'ulsion of
)a+ital from other trades of (hi)h the returns are more frequent-
If the )olony trade, ho(e'er, e'en as it is )arried on at
+resent, is ad'anta*eous to 6reat .ritain, it is not &y means of
the mono+oly, &ut in s+ite of the mono+oly-
It is rather for the manufa)tured than for the rude +rodu)e
of $uro+e that the )olony trade o+ens a ne( mar0et- A*ri)ulture
is the +ro+er &usiness of all ne( )olonies/ a &usiness (hi)h the
)hea+ness of land renders more ad'anta*eous than any other- They
a&ound, therefore, in the rude +rodu)e of land, and instead of
im+ortin* it from other )ountries, they ha'e *enerally a lar*e
sur+lus to e1+ort- In ne( )olonies, a*ri)ulture either dra(s
hands from all other em+loyments, or 0ee+s them from *oin* to any
other em+loyment- There are fe( hands to s+are for the ne)essary,
and none for the ornamental manufa)tures- The *reater +art of the
manufa)tures of &oth 0inds they find it )hea+er to +ur)hase of
other )ountries than to ma0e for themsel'es- It is )hiefly &y
en)oura*in* the manufa)tures of $uro+e that the )olony trade
indire)tly en)oura*es its a*ri)ulture- The manufa)tures of
$uro+e, to (hom that trade *i'es em+loyment, )onstitute a ne(
mar0et for the +rodu)e of the land/ and the most ad'anta*eous of
all mar0ets, the home mar0et for the )orn and )attle, for the
&read and &ut)her=s meat of $uro+e, is thus *reatly e1tended &y
means of the trade to Ameri)a-
.ut that the mono+oly of the trade of +o+ulous and thri'in*
)olonies is not alone suffi)ient to esta&lish, or e'en to
maintain manufa)tures in any )ountry, the e1am+les of S+ain and
ortu*al suffi)iently demonstrate- S+ain and ortu*al (ere
manufa)turin* )ountries &efore they had any )onsidera&le
)olonies- Sin)e they had the ri)hest and most fertile in the
(orld, they ha'e &oth )eased to &e so-
In S+ain and ortu*al the &ad effe)ts of the mono+oly,
a**ra'ated &y other )auses, ha'e +erha+s nearly o'er&alan)ed the
natural *ood effe)ts of the )olony trade- These )auses seem to &e
other mono+olies of different 0inds/ the de*radation of the 'alue
of *old and sil'er &elo( (hat it is in most other )ountries/ the
e1)lusion from forei*n mar0ets &y im+ro+er ta1es u+on
e1+ortation, and the narro(in* of the home mar0et, &y still more
im+ro+er ta1es u+on the trans+ortation of *oods from one +art of
the )ountry to another/ &ut a&o'e all, that irre*ular and +artial
administration of 2usti)e, (hi)h often +rote)ts the ri)h and
+o(erful de&tor from the +ursuit of his in2ured )reditor, and
(hi)h ma0es the industrious +art of the nation afraid to +re+are
*oods for the )onsum+tion of those hau*hty and *reat men to (hom
they dare not refuse to sell u+on )redit, and from they are
alto*ether un)ertain of re+ayment-
In $n*land, on the )ontrary, the natural *ood effe)ts of the
)olony trade, assisted &y other )auses, ha'e in a *reat measure
)onquered the &ad effe)ts of the mono+oly- These )auses seem to
&e3 the *eneral li&erty of trade, (hi)h, not(ithstandin* some
restraints, is at least equal, +erha+s su+erior, to (hat it is in
any other )ountry/ the li&erty of e1+ortin*, duty free, almost
all sorts of *oods (hi)h are the +rodu)e of domesti) industry to
almost any forei*n )ountry/ and (hat +erha+s is of still *reater
im+ortan)e, the un&ounded li&erty of trans+ortin* them from any
one +art of our o(n )ountry to any other (ithout &ein* o&li*ed to
*i'e any a))ount to any +u&li) offi)e, (ithout &ein* lia&le to
question or e1amination of any 0ind/ &ut a&o'e all, that equal
and im+artial administration of 2usti)e (hi)h renders the ri*hts
of the meanest .ritish su&2e)t res+e)ta&le to the *reatest, and
(hi)h, &y se)urin* to e'ery man the fruits of his o(n industry,
*i'es the *reatest and most effe)tual en)oura*ement to e'ery sort
of industry-
If the manufa)tures of 6reat .ritain, ho(e'er, ha'e &een
ad'an)ed, as they )ertainly ha'e, &y the )olony trade, it has not
&een &y means of the mono+oly of that trade &ut in s+ite of the
mono+oly- The effe)t of the mono+oly has &een, not to au*ment the
quantity, &ut to alter the quality and sha+e of a +art of the
manufa)tures of 6reat .ritain, and to a))ommodate to a mar0et,
from (hi)h the returns are slo( and distant, (hat (ould other(ise
ha'e &een a))ommodated to one from (hi)h the returns are frequent
and near- Its effe)t has )onsequently &een to turn a +art of the
)a+ital of 6reat .ritain from an em+loyment in (hi)h it (ould
ha'e maintained a *reater quantity of manufa)turin* industry to
one in (hi)h it maintains a mu)h smaller, and there&y to
diminish, instead of in)reasin*, the (hole quantity of
manufa)turin* industry maintained in 6reat .ritain-
The mono+oly of the )olony trade, therefore, li0e all the
other mean and mali*nant e1+edients of the mer)antile system,
de+resses the industry of all other )ountries, &ut )hiefly that
of the )olonies, (ithout in the least in)reasin*, &ut on the
)ontrary diminishin* that of the )ountry in (hose fa'our it is
esta&lished-
The mono+oly hinders the )a+ital of that )ountry, (hate'er
may at any +arti)ular time &e the e1tent of that )a+ital, from
maintainin* so *reat a quantity of +rodu)ti'e la&our as it (ould
other(ise maintain, and from affordin* so *reat a re'enue to the
industrious inha&itants as it (ould other(ise afford- .ut as
)a+ital )an &e in)reased only &y sa'in*s from re'enue, the
mono+oly, &y hinderin* it from affordin* so *reat a re'enue as it
(ould other(ise afford, ne)essarily hinders it from in)reasin* so
fast as it (ould other(ise in)rease, and )onsequently from
maintainin* a still *reater quantity of +rodu)ti'e la&our, and
affordin* a still *reater re'enue to the industrious inha&itants
of that )ountry- One *reat ori*inal sour)e of re'enue, therefore,
the (a*es of la&our, the mono+oly must ne)essarily ha'e rendered
at all times less a&undant than it other(ise (ould ha'e &een-
.y raisin* the rate of mer)antile +rofit, the mono+oly
dis)oura*es the im+ro'ement of land- The +rofit of im+ro'ement
de+ends u+on the differen)e &et(een (hat the land a)tually
+rodu)es, and (hat, &y the a++li)ation of a )ertain )a+ital, it
)an &e made to +rodu)e- If this differen)e affords a *reater
+rofit than (hat )an &e dra(n from an equal )a+ital in any
mer)antile em+loyment, the im+ro'ement of land (ill dra( )a+ital
from all mer)antile em+loyments- If the +rofit is less,
mer)antile em+loyments (ill dra( )a+ital from the im+ro'ement of
land- Whate'er, therefore, raises the rate of mer)antile +rofit,
either lessens the su+eriority or in)reases the inferiority of
the +rofit of im+ro'ement/ and in the one )ase hinders )a+ital
from *oin* to im+ro'ement, and in the other dra(s )a+ital from
it- .ut &y dis)oura*in* im+ro'ement, the mono+oly ne)essarily
retards the natural in)rease of another *reat ori*inal sour)e of
re'enue, the rent of land- .y raisin* the rate of +rofit, too,
the mono+oly ne)essarily 0ee+s u+ the mar0et rate of interest
hi*her than it other(ise (ould &e- .ut the +ri)e of land in
+ro+ortion to the rent (hi)h it affords, the num&er of years
+ur)hase (hi)h is )ommonly +aid for it, ne)essarily falls as the
rate of interest rises, and rises as the rate of interest falls-
The mono+oly, therefore, hurts the interest of the landlord t(o
different (ays, &y retardin* the natural in)rease, first, of his
rent, and se)ondly, of the +ri)e (hi)h he (ould *et for his land
in +ro+ortion to the rent (hi)h it affords-
The mono+oly indeed raises the rate of mer)antile +rofit,
and there&y au*ments some(hat the *ain of our mer)hants- .ut as
it o&stru)ts the natural in)rease of )a+ital, it tends rather to
diminish than to in)rease the sum total of the re'enue (hi)h the
inha&itants of the )ountry deri'e from the +rofits of sto)0/ a
small +rofit u+on a *reat )a+ital *enerally affordin* a *reater
re'enue than a *reat +rofit u+on a small one- The mono+oly raises
the rate of +rofit, &ut it hinders the sum of +rofit from risin*
so hi*h as it other(ise (ould do-
All the ori*inal sour)es of re'enue, the (a*es of la&our,
the rent of land, and the +rofits of sto)0, the mono+oly renders
mu)h less a&undant than they other(ise (ould &e- To +romote the
little interest of one little order of men in one )ountry, it
hurts the interest of all other orders of men in that )ountry,
and of all men in all other )ountries-
It is solely &y raisin* the ordinary rate of +rofit that the
mono+oly either has +ro'ed or )ould +ro'e ad'anta*eous to any one
+arti)ular order of men- .ut &esides all the &ad effe)ts to the
)ountry in *eneral, (hi)h ha'e already &een mentioned as
ne)essarily resultin* from a hi*h rate of +rofit, there is one
more fatal, +erha+s, than all these +ut to*ether, &ut (hi)h, if
(e may 2ud*e from e1+erien)e, is inse+ara&ly )onne)ted (ith it-
The hi*h rate of +rofit seems e'ery(here to destroy that
+arsimony (hi)h in other )ir)umstan)es is natural to the
)hara)ter of the mer)hant- When +rofits are hi*h that so&er
'irtue seems to &e su+erfluous and e1+ensi'e lu1ury to suit
&etter the affluen)e of his situation- .ut the o(ners of the
*reat mer)antile )a+itals are ne)essarily the leaders and
)ondu)tors of the (hole industry of e'ery nation, and their
e1am+le has a mu)h *reater influen)e u+on the manners of the
(hole industrious +art of it than that of any other order of men-
If his em+loyer is attenti'e and +arsimonious, the (or0man is
'ery li0ely to &e so too/ &ut if the master is dissolute and
disorderly, the ser'ant (ho sha+es his (or0 a))ordin* to the
+attern (hi)h his master +res)ri&es to him (ill sha+e his life
too a))ordin* to the e1am+le (hi)h he sets him- A))umulation is
thus +re'ented in the hands of all those (ho are naturally the
most dis+osed to a))umulate, and the funds destined for the
maintenan)e of +rodu)ti'e la&our re)ei'e no au*mentation from the
re'enue of those (ho ou*ht naturally to au*ment them the most-
The )a+ital of the )ountry, instead of in)reasin*, *radually
d(indles a(ay, and the quantity of +rodu)ti'e la&our maintained
in it *ro(s e'ery day less and less- #a'e the e1or&itant +rofits
of the mer)hants of Cadi; and !is&on au*mented the )a+ital of
S+ain and ortu*al> #a'e they alle'iated the +o'erty, ha'e they
+romoted the industry of those t(o &e**arly )ountries> Su)h has
&een the tone of mer)antile e1+ense in those t(o tradin* )ities
that those e1or&itant +rofits, far from au*mentin* the *eneral
)a+ital of the )ountry, seem s)ar)e to ha'e &een suffi)ient to
0ee+ u+ the )a+itals u+on (hi)h they (ere made- "orei*n )a+itals
are e'ery day intrudin* themsel'es, if I may say so, more and
more into the trade of Cadi; and !is&on- It is to e1+el those
forei*n )a+itals from a trade (hi)h their o(n *ro(s e'ery day
more and more insuffi)ient for )arryin* on that the S+aniards and
ortu*uese endea'our e'ery day to strai*hten more and more the
*allin* &ands of their a&surd mono+oly- Com+are the mer)antile
manners of Cadi; and !is&on (ith those of Amsterdam, and you (ill
&e sensi&le ho( differently the )ondu)t and )hara)ter of
mer)hants are affe)ted &y the hi*h and &y the lo( +rofits of
sto)0- The mer)hants of !ondon, indeed, ha'e not yet *enerally
&e)ome su)h ma*nifi)ent lords as those of Cadi; and !is&on, &ut
neither are they in *eneral su)h attenti'e and +arsimonious
&ur*hers as those of Amsterdam- They are su++osed, ho(e'er, many
of them, to &e a *ood deal ri)her than the *reater +art of the
former, and not quite so ri)h as many of the latter- .ut the rate
of their +rofit is )ommonly mu)h lo(er than that of the former,
and a *ood deal hi*her than that of the latter- !i*ht )ome, li*ht
*o, says the +ro'er&/ and the ordinary tone of e1+ense seems
e'ery(here to &e re*ulated, not so mu)h a))ordin* to the real
a&ility of s+endin*, as to the su++osed fa)ility of *ettin* money
to s+end-
It is thus that the sin*le ad'anta*e (hi)h the mono+oly
+ro)ures to a sin*le order of men is in many different (ays
hurtful to the *eneral interest of the )ountry-
To found a *reat em+ire for the sole +ur+ose of raisin* u+ a
+eo+le of )ustomers may at first si*ht a++ear a +ro2e)t fit only
for a nation of sho+0ee+ers- It is, ho(e'er, a +ro2e)t alto*ether
unfit for a nation of sho+0ee+ers/ &ut e1tremely fit for a nation
(hose *o'ernment is influen)ed &y sho+0ee+ers- Su)h statesmen,
and su)h statesmen only, are )a+a&le of fan)yin* that they (ill
find some ad'anta*e in em+loyin* the &lood and treasure of their
fello(8)iti;ens to found and maintain su)h an em+ire- Say to a
sho+0ee+er, @.uy me a *ood estate, and I shall al(ays &uy my
)lothes at your sho+, e'en thou*h I should +ay some(hat dearer
than (hat I )an ha'e them for at other sho+s@/ and you (ill not
find him 'ery for(ard to em&ra)e your +ro+osal- .ut should any
other +erson &uy you su)h an estate, the sho+0ee+er (ould &e mu)h
o&li*ed to your &enefa)tor if he (ould en2oin you to &uy all your
)lothes at his sho+- $n*land +ur)hased for some of her su&2e)ts,
(ho found themsel'es uneasy at home, a *reat estate in a distant
)ountry- The +ri)e, indeed, (as 'ery small, and instead of thirty
years= +ur)hase, the ordinary +ri)e of land in the +resent times,
it amounted to little more than the e1+ense of the different
equi+ments (hi)h made the first dis)o'ery, re)onnoitred the
)oast, and too0 a fi)titious +ossession of the )ountry- The land
(as *ood and of *reat e1tent, and the )ulti'ators ha'in* +lenty
of *ood *round to (or0 u+on, and &ein* for some time at li&erty
to sell their +rodu)e (here they +leased, &e)ame in the )ourse of
little more than thirty or forty years 9&et(een 16EC and 166C: so
numerous and thri'in* a +eo+le that the sho+0ee+ers and other
traders of $n*land (ished to se)ure to themsel'es the mono+oly of
their )ustom- Without +retendin*, therefore, that they had +aid
any +art, either of the ori*inal +ur)hase8money, or of the
su&sequent e1+ense of im+ro'ement, they +etitioned the arliament
that the )ulti'ators of Ameri)a mi*ht for the future &e )onfined
to their sho+/ first, for &uyin* all the *oods (hi)h they (anted
from $uro+e/ and, se)ondly, for sellin* all su)h +arts of their
o(n +rodu)e as those traders mi*ht find it )on'enient to &uy- "or
they did not find it )on'enient to &uy e'ery +art of it- Some
+arts of it im+orted into $n*land mi*ht ha'e interfered (ith some
of the trades (hi)h they themsel'es )arried on at home- Those
+arti)ular +arts of it, therefore, they (ere (illin* that the
)olonists should sell (here they )ould8 the farther off the
&etter/ and u+on that a))ount +ur+osed that their mar0et should
&e )onfined to the )ountries south of Ca+e "inisterre- A )lause
in the famous A)t of Na'i*ation esta&lished this truly sho+0ee+er
+ro+osal into a la(-
The maintenan)e of this mono+oly has hitherto &een the
+rin)i+al, or more +ro+erly +erha+s the sole end and +ur+ose of
the dominion (hi)h 6reat .ritain assumes o'er her )olonies- In
the e1)lusi'e trade, it is su++osed, )onsists the *reat ad'anta*e
of +ro'in)es, (hi)h ha'e ne'er yet afforded either re'enue or
military for)e for the su++ort of the )i'il *o'ernment, or the
defen)e of the mother )ountry- The mono+oly is the +rin)i+al
&ad*e of their de+enden)y, and it is the sole fruit (hi)h has
hitherto &een *athered from that de+enden)y- Whate'er e1+ense
6reat .ritain has hitherto laid out in maintainin* this
de+enden)y has really &een laid out in order to su++ort this
mono+oly- The e1+ense of the ordinary +ea)e esta&lishment of the
)olonies amounted, &efore the )ommen)ement of the +resent
distur&an)es, to the +ay of t(enty re*iments of foot/ to the
e1+ense of the artillery, stores, and e1traordinary +ro'isions
(ith (hi)h it (as ne)essary to su++ly them/ and to the e1+ense of
a 'ery )onsidera&le na'al for)e (hi)h (as )onstantly 0e+t u+, in
order to *uard, from the smu**lin* 'essels of other nations, the
immense )oast of North Ameri)a, and that of our West Indian
islands- The (hole e1+ense of this +ea)e esta&lishment (as a
)har*e u+on the re'enue of 6reat .ritain, and (as, at the same
time, the smallest +art of (hat the dominion of the )olonies has
)ost the mother )ountry- If (e (ould 0no( the amount of the
(hole, (e must add to the annual e1+ense of this +ea)e
esta&lishment the interest of the sums (hi)h, in )onsequen)e of
her )onsiderin* her )olonies as +ro'in)es su&2e)t to her
dominion, 6reat .ritain has u+on different o))asions laid out
u+on their defen)e- We must add to it, in +arti)ular, the (hole
e1+ense of the late (ar, and a *reat +art of that of the (ar
(hi)h +re)eded it- The late (ar (as alto*ether a )olony quarrel,
and the (hole e1+ense of it, in (hate'er +art of the (orld it may
ha'e &een laid out, (hether in 6ermany or the $ast Indies, ou*ht
2ustly to &e stated to the a))ount of the )olonies- It amounted
to more than ninety millions sterlin*, in)ludin* not only the ne(
de&t (hi)h (as )ontra)ted, &ut the t(o shillin*s in the +ound
additional land ta1, and the sums (hi)h (ere e'ery year &orro(ed
from the sin0in* fund- The S+anish (ar, (hi)h &e*an in 17BF, (as
+rin)i+ally a )olony quarrel- Its +rin)i+al o&2e)t (as to +re'ent
the sear)h of the )olony shi+s (hi)h )arried on a )ontra&and
trade (ith the S+anish 4ain- This (hole e1+ense is, in reality, a
&ounty (hi)h has &een *i'en in order to su++ort a mono+oly- The
+retended +ur+ose of it (as to en)oura*e the manufa)tures, and to
in)rease the )ommer)e of 6reat .ritain- .ut its real effe)t has
&een to raise the rate of mer)antile +rofit, and to ena&le our
mer)hants to turn into a &ran)h of trade, of (hi)h the returns
are more slo( and distant than those of the *reater +art of other
trades, a *reater +ro+ortion of their )a+ital than they other(ise
(ould ha'e done/ t(o e'ents (hi)h, if a &ounty )ould ha'e
+re'ented, it mi*ht +erha+s ha'e &een 'ery (ell (orth (hile to
*i'e su)h a &ounty-
Under the +resent system of mana*ement, therefore, 6reat
.ritain deri'es nothin* &ut loss from the dominion (hi)h she
assumes o'er her )olonies-
To +ro+ose that 6reat .ritain should 'oluntarily *i'e u+ all
authority o'er her )olonies, and lea'e them to ele)t their o(n
ma*istrates, to ena)t their o(n la(s, and to ma0e +ea)e and (ar
as they mi*ht thin0 +ro+er, (ould &e to +ro+ose su)h a measure as
ne'er (as, and ne'er (ill &e ado+ted, &y any nation in the (orld-
No nation e'er 'oluntarily *a'e u+ the dominion of any +ro'in)e,
ho( trou&lesome soe'er it mi*ht &e to *o'ern it, and ho( small
soe'er the re'enue (hi)h it afforded mi*ht &e in +ro+ortion to
the e1+ense (hi)h it o))asioned- Su)h sa)rifi)es, thou*h they
mi*ht frequently &e a*reea&le to the interest, are al(ays
mortifyin* to the +ride of e'ery nation, and (hat is +erha+s of
still *reater )onsequen)e, they are al(ays )ontrary to the
+ri'ate interest of the *o'ernin* +art of it, (ho (ould there&y
&e de+ri'ed of the dis+osal of many +la)es of trust and +rofit,
of many o++ortunities of a)quirin* (ealth and distin)tion, (hi)h
the +ossession of the most tur&ulent, and, to the *reat &ody of
the +eo+le, the most un+rofita&le +ro'in)e seldom fails to
afford- The most 'isionary enthusiast (ould s)ar)e &e )a+a&le of
+ro+osin* su)h a measure (ith any serious ho+es at least of its
e'er &ein* ado+ted- If it (as ado+ted, ho(e'er, 6reat .ritain
(ould not only &e immediately freed from the (hole annual e1+ense
of the +ea)e esta&lishment of the )olonies, &ut mi*ht settle (ith
them su)h a treaty of )ommer)e as (ould effe)tually se)ure to her
a free trade, more ad'anta*eous to the *reat &ody of the +eo+le,
thou*h less so to the mer)hants, than the mono+oly (hi)h she at
+resent en2oys- .y thus +artin* *ood friends, the natural
affe)tion of the )olonies to the mother )ountry (hi)h, +erha+s,
our late dissensions ha'e (ell ni*h e1tin*uished, (ould qui)0ly
re'i'e- It mi*ht dis+ose them not only to res+e)t, for (hole
)enturies to*ether, that treaty of )ommer)e (hi)h they had
)on)luded (ith us at +artin*, &ut to fa'our us in (ar as (ell as
in trade, and, instead of tur&ulent and fa)tious su&2e)ts, to
&e)ome our most faithful, affe)tionate, and *enerous allies/ and
the same sort of +arental affe)tion on the one side, and filial
res+e)t on the other, mi*ht re'i'e &et(een 6reat .ritain and her
)olonies, (hi)h used to su&sist &et(een those of an)ient 6ree)e
and the mother )ity from (hi)h they des)ended-
In order to render any +ro'in)e ad'anta*eous to the em+ire
to (hi)h it &elon*s, it ou*ht to afford, in time of +ea)e, a
re'enue to the +u&li) suffi)ient not only for defrayin* the (hole
e1+ense of its o(n +ea)e esta&lishment, &ut for )ontri&utin* its
+ro+ortion to the su++ort of the *eneral *o'ernment of the
em+ire- $'ery +ro'in)e ne)essarily )ontri&utes, more or less, to
in)rease the e1+ense of that *eneral *o'ernment- If any
+arti)ular +ro'in)e, therefore, does not )ontri&ute its share
to(ards defrayin* this e1+ense, an unequal &urden must &e thro(n
u+on some other +art of the em+ire- The e1traordinary re'enue,
too, (hi)h e'ery +ro'in)e affords to the +u&li) in time of (ar,
ou*ht, from +arity of reason, to &ear the same +ro+ortion to the
e1traordinary re'enue of the (hole em+ire (hi)h its ordinary
re'enue does in time of +ea)e- That neither the ordinary nor
e1traordinary re'enue (hi)h 6reat .ritain deri'es from her
)olonies, &ears this +ro+ortion to the (hole re'enue of the
.ritish em+ire, (ill readily &e allo(ed- The mono+oly, it has
&een su++osed, indeed, &y in)reasin* the +ri'ate re'enue of the
+eo+le of 6reat .ritain, and there&y ena&lin* them to +ay *reater
ta1es, )om+ensates the defi)ien)y of the +u&li) re'enue of the
)olonies- .ut this mono+oly, I ha'e endea'oured to sho(, thou*h a
'ery *rie'ous ta1 u+on the )olonies, and thou*h it may in)rease
the re'enue of a +arti)ular order of men in 6reat .ritain,
diminishes instead of in)reasin* that of the *reat &ody of the
+eo+le/ and )onsequently diminishes instead of in)reasin* the
a&ility of the *reat &ody of the +eo+le to +ay ta1es- The men,
too, (hose re'enue the mono+oly in)reases, )onstitute a
+arti)ular order, (hi)h it is &oth a&solutely im+ossi&le to ta1
&eyond the +ro+ortion of other orders, and e1tremely im+oliti)
e'en to attem+t to ta1 &eyond that +ro+ortion, as I shall
endea'our to sho( in the follo(in* &oo0- No +arti)ular resour)e,
therefore, )an &e dra(n from this +arti)ular order-
The )olonies may &e ta1ed either &y their o(n assem&lies, or
&y the arliament of 6reat .ritain-
That the )olony assem&lies )an e'er &e so mana*ed as to le'y
u+on their )onstituents a +u&li) re'enue suffi)ient not only to
maintain at all times their o(n )i'il and military esta&lishment,
&ut to +ay their +ro+er +ro+ortion of the e1+ense of the *eneral
*o'ernment of the .ritish em+ire seems not 'ery +ro&a&le- It (as
a lon* time &efore e'en the arliament of $n*land, thou*h +la)ed
immediately under the eye of the so'erei*n, )ould &e &rou*ht
under su)h a system of mana*ement, or )ould &e rendered
suffi)iently li&eral in their *rants for su++ortin* the )i'il and
military esta&lishments e'en of their o(n )ountry- It (as only &y
distri&utin* amon* the +arti)ular 4em&ers of arliament a *reat
+art either of the offi)es, or of the dis+osal of the offi)es
arisin* from this )i'il and military esta&lishment, that su)h a
system of mana*ement )ould &e esta&lished e'en (ith re*ard to the
arliament of $n*land- .ut the distan)e of the )olony assem&lies
from the eye of the so'erei*n, their num&er, their dis+ersed
situation, and their 'arious )onstitutions, (ould render it 'ery
diffi)ult to mana*e them in the same manner, e'en thou*h the
so'erei*n had the same means of doin* it/ and those means are
(antin*- It (ould &e a&solutely im+ossi&le to distri&ute amon*
all the leadin* mem&ers of all the )olony assem&lies su)h a
share, either of the offi)es or of the dis+osal of the offi)es
arisin* from the *eneral *o'ernment of the .ritish em+ire, as to
dis+ose them to *i'e u+ their +o+ularity at home, and to ta1
their )onstituents for the su++ort of that *eneral *o'ernment, of
(hi)h almost the (hole emoluments (ere to &e di'ided amon* +eo+le
(ho (ere stran*ers to them- The una'oida&le i*noran)e of
administration, &esides, )on)ernin* the relati'e im+ortan)e of
the different mem&ers of those different assem&lies, the offen)es
(hi)h must frequently &e *i'en, the &lunders (hi)h must
)onstantly &e )ommitted in attem+tin* to mana*e them in this
manner, seems to render su)h a system of mana*ement alto*ether
im+ra)ti)a&le (ith re*ard to them-
The )olony assem&lies, &esides, )annot &e su++osed the
+ro+er 2ud*es of (hat is ne)essary for the defen)e and su++ort of
the (hole em+ire- The )are of that defen)e and su++ort is not
entrusted to them- It is not their &usiness, and they ha'e no
re*ular means of information )on)ernin* it- The assem&ly of a
+ro'in)e, li0e the 'estry of a +arish, may 2ud*e 'ery +ro+erly
)on)ernin* the affairs of its o(n +arti)ular distri)t/ &ut )an
ha'e no +ro+er means of 2ud*in* )on)ernin* those of the (hole
em+ire- It )annot e'en 2ud*e +ro+erly )on)ernin* the +ro+ortion
(hi)h its o(n +ro'in)e &ears to the (hole em+ire/ or )on)ernin*
the relati'e de*ree of its (ealth and im+ortan)e )om+ared (ith
the other +ro'in)es/ &e)ause those other +ro'in)es are not under
the ins+e)tion and su+erintenden)y of the assem&ly of a
+arti)ular +ro'in)e- What is ne)essary for the defen)e and
su++ort of the (hole em+ire, and in (hat +ro+ortion ea)h +art
ou*ht to )ontri&ute, )an &e 2ud*ed of only &y that assem&ly (hi)h
ins+e)ts and su+erintends the affairs of the (hole em+ire-
It has &een +ro+osed, a))ordin*ly, that the )olonies should
&e ta1ed &y requisition, the arliament of 6reat .ritain
determinin* the sum (hi)h ea)h )olony ou*ht to +ay, and the
+ro'in)ial assem&ly assessin* and le'yin* it in the (ay that
suited &est the )ir)umstan)es of the +ro'in)e- What )on)erned the
(hole em+ire (ould in this (ay &e determined &y the assem&ly
(hi)h ins+e)ts and su+erintends the affairs of the (hole em+ire/
and the +ro'in)ial affairs of ea)h )olony mi*ht still &e
re*ulated &y its o(n assem&ly- Thou*h the )olonies should in this
)ase ha'e no re+resentati'es in the .ritish arliament, yet, if
(e may 2ud*e &y e1+erien)e, there is no +ro&a&ility that the
arliamentary requisition (ould &e unreasona&le- The arliament
of $n*land has not u+on any o))asion sho(n the smallest
dis+osition to o'er&urden those +arts of the em+ire (hi)h are not
re+resented in arliament- The islands of 6uernsey and Aersey,
(ithout any means of resistin* the authority of arliament, are
more li*htly ta1ed than any +art of 6reat .ritain- arliament in
attem+tin* to e1er)ise its su++osed ri*ht, (hether (ell or ill
*rounded, of ta1in* the )olonies, has ne'er hitherto demanded of
them anythin* (hi)h e'en a++roa)hed to a 2ust +ro+ortion to (hat
(as +aid &y their fello( su&2e)ts at home- If the )ontri&ution of
the )olonies, &esides, (as to rise or fall in +ro+ortion to the
rise or fall of the land ta1, arliament )ould not ta1 them
(ithout ta1in* at the same time its o(n )onstituents, and the
)olonies mi*ht in this )ase &e )onsidered as 'irtually
re+resented in arliament-
$1am+les are not (antin* of em+ires in (hi)h all the
different +ro'in)es are not ta1ed, if I may &e allo(ed the
e1+ression, in one mass/ &ut in (hi)h the so'erei*n re*ulates the
sum (hi)h ea)h +ro'in)e ou*ht to +ay, and in some +ro'in)es
assesses and le'ies it as he thin0s +ro+er/ (hile in others, he
lea'es it to &e assessed and le'ied as the res+e)ti'e states of
ea)h +ro'in)e shall determine- In some +ro'in)es of "ran)e, the
0in* not only im+oses (hat ta1es he thin0s +ro+er, &ut assesses
and le'ies them in the (ay he thin0s +ro+er- "rom others he
demands a )ertain sum, &ut lea'es it to the states of ea)h
+ro'in)e to assess and le'y that sum as they thin0 +ro+er-
A))ordin* to the s)heme of ta1in* &y requisition, the arliament
of 6reat .ritain (ould stand nearly in the same situation to(ards
the )olony assem&lies as the %in* of "ran)e does to(ards the
states of those +ro'in)es (hi)h still en2oy the +ri'ile*e of
ha'in* states of their o(n, the +ro'in)es of "ran)e (hi)h are
su++osed to &e the &est *o'erned-
.ut thou*h, a))ordin* to this s)heme, the )olonies )ould
ha'e no 2ust reason to fear that their share of the +u&li)
&urdens should e'er e1)eed the +ro+er +ro+ortion to that of their
fello(8)iti;ens at home/ 6reat .ritain mi*ht ha'e 2ust reason to
fear that it ne'er (ould amount to that +ro+er +ro+ortion- The
arliament of 6reat .ritain has not for some time +ast had the
same esta&lished authority in the )olonies, (hi)h the "ren)h 0in*
has in those +ro'in)es of "ran)e (hi)h still en2oy the +ri'ile*e
of ha'in* states of their o(n- The )olony assem&lies, if they
(ere not 'ery fa'oura&ly dis+osed 9and unless more s0ilfully
mana*ed than they e'er ha'e &een hitherto, they are not 'ery
li0ely to &e so: mi*ht still find many +reten)es for e'adin* or
re2e)tin* the most reasona&le requisitions of arliament- A
"ren)h (ar &rea0s out, (e shall su++ose/ ten millions must
immediately &e raised in order to defend the seat of the em+ire-
This sum must &e &orro(ed u+on the )redit of some arliamentary
fund mort*a*ed for +ayin* the interest- art of this fund
arliament +ro+oses to raise &y a ta1 to &e le'ied in 6reat
.ritain, and +art of it &y a requisition to all the different
)olony assem&lies of Ameri)a and the West Indies- Would +eo+le
readily ad'an)e their money u+on the )redit of a fund, (hi)h
+artly de+ended u+on the *ood humour of all those assem&lies, far
distant from the seat of the (ar, and sometimes, +erha+s,
thin0in* themsel'es not mu)h )on)erned in the e'ent of it> U+on
su)h a fund no more money (ould +ro&a&ly &e ad'an)ed than (hat
the ta1 to &e le'ied in 6reat .ritain mi*ht &e su++osed to ans(er
for- The (hole &urden of the de&t )ontra)ted on a))ount of the
(ar (ould in this manner fall, as it al(ays has done hitherto,
u+on 6reat .ritain/ u+on a +art of the em+ire, and not u+on the
(hole em+ire- 6reat .ritain is, +erha+s, sin)e the (orld &e*an,
the only state (hi)h, as it has e1tended its em+ire, has only
in)reased its e1+ense (ithout on)e au*mentin* its resour)es-
Other states ha'e *enerally dis&urdened themsel'es u+on their
su&2e)t and su&ordinate +ro'in)es of the most )onsidera&le +art
of the e1+ense of defendin* the em+ire- 6reat .ritain has
hitherto suffered her su&2e)t and su&ordinate +ro'in)es to
dis&urden themsel'es u+on her of almost this (hole e1+ense- In
order to +ut 6reat .ritain u+on a footin* of equality (ith her
o(n )olonies, (hi)h the la( has hitherto su++osed to &e su&2e)t
and su&ordinate, it seems ne)essary, u+on the s)heme of ta1in*
them &y arliamentary requisition, that arliament should ha'e
some means of renderin* its requisitions immediately effe)tual,
in )ase the )olony assem&lies should attem+t to e'ade or re2e)t
them/ and (hat those means are, it is not 'ery easy to )on)ei'e,
and it has not yet &een e1+lained-
Should the arliament of 6reat .ritain, at the same time, &e
e'er fully esta&lished in the ri*ht of ta1in* the )olonies, e'en
inde+endent of the )onsent of their o(n assem&lies, the
im+ortan)e of those assem&lies (ould from that moment &e at an
end, and (ith it, that of all the leadin* men of .ritish Ameri)a-
4en desire to ha'e some share in the mana*ement of +u&li) affairs
)hiefly on a))ount of the im+ortan)e (hi)h it *i'es them- U+on
the +o(er (hi)h the *reater +art of the leadin* men, the natural
aristo)ra)y of e'ery )ountry, ha'e of +reser'in* or defendin*
their res+e)ti'e im+ortan)e, de+ends the sta&ility and duration
of e'ery system of free *o'ernment- In the atta)0s (hi)h those
leadin* men are )ontinually ma0in* u+on the im+ortan)e of one
another, and in the defen)e of their o(n, )onsists the (hole +lay
of domesti) fa)tion and am&ition- The leadin* men of Ameri)a,
li0e those of all other )ountries, desire to +reser'e their o(n
im+ortan)e- They feel, or ima*ine, that if their assem&lies,
(hi)h they are fond of )allin* +arliaments, and of )onsiderin* as
equal in authority to the arliament of 6reat .ritain, should &e
so far de*raded as to &e)ome the hum&le ministers and e1e)uti'e
offi)ers of that arliament, the *reater +art of their o(n
im+ortan)e (ould &e at end- They ha'e re2e)ted, therefore, the
+ro+osal of &ein* ta1ed &y arliamentary requisition, and li0e
other am&itious and hi*h8s+irited men, ha'e rather )hosen to dra(
the s(ord in defen)e of their o(n im+ortan)e-
To(ards the de)lension of the Roman re+u&li), the allies of
Rome, (ho had &orne the +rin)i+al &urden of defendin* the state
and e1tendin* the em+ire, demanded to &e admitted to all the
+ri'ile*es of Roman )iti;ens- U+on &ein* refused, the so)ial (ar
&ro0e out- Durin* the )ourse of that (ar, Rome *ranted those
+ri'ile*es to the *reater +art of them one &y one, and in
+ro+ortion as they deta)hed themsel'es from the *eneral
)onfedera)y- The arliament of 6reat .ritain insists u+on ta1in*
the )olonies/ and they refuse to &e ta1ed &y a arliament in
(hi)h they are not re+resented- If to ea)h )olony, (hi)h should
deta)h itself from the *eneral )onfedera)y, 6reat .ritain should
allo( su)h a num&er of re+resentati'es as suited the +ro+ortion
of (hat is )ontri&uted to the +u&li) re'enue of the em+ire, in
)onsequen)e of its &ein* su&2e)ted to the same ta1es, and in
)om+ensation admitted to the same freedom of trade (ith its
fello(8su&2e)ts at home/ the num&er of its re+resentati'es to &e
au*mented as the +ro+ortion of its )ontri&ution mi*ht after(ards
au*ment/ a ne( method of a)quirin* im+ortan)e, a ne( and more
da;;lin* o&2e)t of am&ition (ould &e +resented to the leadin* men
of ea)h )olony- Instead of +iddlin* for the little +ri;es (hi)h
are to &e found in (hat may &e )alled the +altry raffle of )olony
fa)tion/ they mi*ht then ho+e, from the +resum+tion (hi)h men
naturally ha'e in their o(n a&ility and *ood fortune, to dra(
some of the *reat +ri;es (hi)h sometimes )ome from the (heel of
the *reat state lottery of .ritish +olities- Unless this or some
other method is fallen u+on, and there seems to &e none more
o&'ious than this, of +reser'in* the im+ortan)e and of *ratifyin*
the am&ition of the leadin* men of Ameri)a, it is not 'ery
+ro&a&le that they (ill e'er 'oluntarily su&mit to us/ and (e
ou*ht to )onsider that the &lood (hi)h must &e shed in for)in*
them to do so is, e'ery dro+ of it, &lood either of those (ho
are, or of those (hom (e (ish to ha'e for our fello( )iti;ens-
They are 'ery (ea0 (ho flatter themsel'es that, in the state to
(hi)h thin*s ha'e )ome, our )olonies (ill &e easily )onquered &y
for)e alone- The +ersons (ho no( *o'ern the resolutions of (hat
they )all their Continental Con*ress, feel in themsel'es at this
moment a de*ree of im+ortan)e (hi)h, +erha+s, the *reatest
su&2e)ts in $uro+e s)ar)e feel- "rom sho+0ee+ers, tradesmen, and
attornies, they are &e)ome statesmen and le*islators, and are
em+loyed in )ontri'in* a ne( form of *o'ernment for an e1tensi'e
em+ire, (hi)h, they flatter themsel'es, (ill &e)ome, and (hi)h,
indeed, seems 'ery li0ely to &e)ome, one of the *reatest and most
formida&le that e'er (as in the (orld- "i'e hundred different
+eo+le, +erha+s, (ho in different (ays a)t immediately under the
Continental Con*ress/ and fi'e hundred thousand, +erha+s, (ho a)t
under those fi'e hundred, all feel in the same manner a
+ro+ortiona&le rise in their o(n im+ortan)e- Almost e'ery
indi'idual of the *o'ernin* +arty in Ameri)a fills, at +resent in
his o(n fan)y, a station su+erior, not only to (hat he had e'er
filled &efore, &ut to (hat he had e'er e1+e)ted to fill/ and
unless some ne( o&2e)t of am&ition is +resented either to him or
to his leaders, if he has the ordinary s+irit of a man, he (ill
die in defen)e of that station-
It is a remar0 of the +resident #enaut, that (e no( read
(ith +leasure the a))ount of many little transa)tions of the
!i*ue, (hi)h (hen they ha++ened (ere not +erha+s )onsidered as
'ery im+ortant +ie)es of ne(s- .ut e'ery man then, says he,
fan)ied himself of some im+ortan)e/ and the innumera&le memoirs
(hi)h ha'e )ome do(n to us from those times, (ere, the *reater
+art of them, (ritten &y +eo+le (ho too0 +leasure in re)ordin*
and ma*nifyin* e'ents in (hi)h, they flattered themsel'es, they
had &een )onsidera&le a)tors- #o( o&stinately the )ity of aris
u+on that o))asion defended itself, (hat a dreadful famine it
su++orted rather than su&mit to the &est and after(ards to the
most &elo'ed of all the "ren)h 0in*s, is (ell 0no(n- The *reater
+art of the )iti;ens, or those (ho *o'erned the *reater +art of
them, fou*ht in defen)e of their o(n im+ortan)e, (hi)h they
foresa( (as to &e at an end (hene'er the an)ient *o'ernment
should &e re8esta&lished- Our )olonies, unless they )an &e
indu)ed to )onsent to a union, are 'ery li0ely to defend
themsel'es a*ainst the &est of all mother )ountries as
o&stinately as the )ity of aris did a*ainst one of the &est of
0in*s-
The idea of re+resentation (as un0no(n in an)ient times-
When the +eo+le of one state (ere admitted to the ri*ht of
)iti;enshi+ in another, they had no other means of e1er)isin*
that ri*ht &ut &y )omin* in a &ody to 'ote and deli&erate (ith
the +eo+le of that other state- The admission of the *reater +art
of the inha&itants of Italy to the +ri'ile*es of Roman )iti;ens
)om+letely ruined the Roman re+u&li)- It (as no lon*er +ossi&le
to distin*uish &et(een (ho (as and (ho (as not a Roman )iti;en-
No tri&e )ould 0no( its o(n mem&ers- A ra&&le of any 0ind )ould
&e introdu)ed into the assem&lies of the +eo+le, )ould dri'e out
the real )iti;ens, and de)ide u+on the affairs of the re+u&li) as
if they themsel'es had &een su)h- .ut thou*h Ameri)a (ere to send
fifty or si1ty ne( re+resentati'es to arliament, the door0ee+er
of the #ouse of Commons )ould not find any *reat diffi)ulty in
distin*uishin* &et(een (ho (as and (ho (as not a mem&er- Thou*h
the Roman )onstitution, therefore, (as ne)essarily ruined &y the
union of Rome (ith the allied states of Italy, there is not the
least +ro&a&ility that the .ritish )onstitution (ould &e hurt &y
the union of 6reat .ritain (ith her )olonies- That )onstitution,
on the )ontrary, (ould &e )om+leted &y it, and seems to &e
im+erfe)t (ithout it- The assem&ly (hi)h deli&erates and de)ides
)on)ernin* the affairs of e'ery +art of the em+ire, in order to
&e +ro+erly informed, ou*ht )ertainly to ha'e re+resentati'es
from e'ery +art of it That this union, ho(e'er, )ould &e easily
effe)tuated, or that diffi)ulties and *reat diffi)ulties mi*ht
not o))ur in the e1e)ution, I do not +retend- I ha'e yet heard of
none, ho(e'er, (hi)h a++ear insurmounta&le- The +rin)i+al +erha+s
arise, not from the nature of thin*s, &ut from the +re2udi)es and
o+inions of the +eo+le &oth on this and on the other side of the
Atlanti)-
We, on this side of the (ater, are afraid lest the multitude
of Ameri)an re+resentati'es should o'erturn the &alan)e of the
)onstitution, and in)rease too mu)h either the influen)e of the
)ro(n on the one hand, or the for)e of the demo)ra)y on the
other- .ut if the num&er of Ameri)an re+resentati'es (ere to &e
in +ro+ortion to the +rodu)e of Ameri)an ta1ation, the num&er of
+eo+le to &e mana*ed (ould in)rease e1a)tly in +ro+ortion to the
means of mana*in* them/ and the means of mana*in* to the num&er
of +eo+le to &e mana*ed- The monar)hi)al and demo)rati)al +arts
of the )onstitution (ould, after the union, stand e1a)tly in the
same de*ree of relati'e for)e (ith re*ard to one another as they
had done &efore-
The +eo+le on the other side of the (ater are afraid lest
their distan)e from the seat of *o'ernment mi*ht e1+ose them to
many o++ressions- .ut their re+resentati'es in arliament, of
(hi)h the num&er ou*ht from the first to &e )onsidera&le, (ould
easily &e a&le to +rote)t them from all o++ression- The distan)e
)ould not mu)h (ea0en the de+enden)y of the re+resentati'e u+on
the )onstituent, and the former (ould still feel that he o(ed his
seat in arliament, and all the )onsequen)es (hi)h he deri'ed
from it, to the *ood (ill of the latter- It (ould &e the interest
of the former, therefore, to )ulti'ate that *ood (ill &y
)om+lainin*, (ith all the authority of a mem&er of the
le*islature, of e'ery outra*e (hi)h any )i'il or military offi)er
mi*ht &e *uilty of in those remote +arts of the em+ire- The
distan)e of Ameri)a from the seat of *o'ernment, &esides, the
nati'es of that )ountry mi*ht flatter themsel'es, (ith some
a++earan)e of reason too, (ould not &e of 'ery lon* )ontinuan)e-
Su)h has hitherto &een the ra+id +ro*ress of that )ountry in
(ealth, +o+ulation, and im+ro'ement, that in the )ourse of little
more than a )entury, +erha+s, the +rodu)e of Ameri)an mi*ht
e1)eed that of .ritish ta1ation- The seat of the em+ire (ould
then naturally remo'e itself to that +art of the em+ire (hi)h
)ontri&uted most to the *eneral defen)e and su++ort of the (hole-
The dis)o'ery of Ameri)a, and that of a +assa*e to the $ast
Indies &y the Ca+e of 6ood #o+e, are the t(o *reatest and most
im+ortant e'ents re)orded in the history of man0ind- Their
)onsequen)es ha'e already &een 'ery *reat/ &ut, in the short
+eriod of &et(een t(o and three )enturies (hi)h has ela+sed sin)e
these dis)o'eries (ere made, it is im+ossi&le that the (hole
e1tent of their )onsequen)es )an ha'e &een seen- What &enefits or
(hat misfortunes to man0ind may hereafter result from those *reat
e'ents, no human (isdom )an foresee- .y unitin*, in some measure,
the most distant +arts of the (orld, &y ena&lin* them to relie'e
one another=s (ants, to in)rease one another=s en2oyments, and to
en)oura*e one another=s industry, their *eneral tenden)y (ould
seem to &e &enefi)ial- To the nati'es ho(e'er, &oth of the $ast
and West Indies, all the )ommer)ial &enefits (hi)h )an ha'e
resulted from those e'ents ha'e &een sun0 and lost in the
dreadful misfortunes (hi)h they ha'e o))asioned- These
misfortunes, ho(e'er, seem to ha'e arisen rather from a))ident
than from anythin* in the nature of those e'ents themsel'es- At
the +arti)ular time (hen these dis)o'eries (ere made, the
su+eriority of for)e ha++ened to &e so *reat on the side of the
$uro+eans that they (ere ena&led to )ommit (ith im+unity e'ery
sort of in2usti)e in those remote )ountries- #ereafter, +erha+s,
the nati'es of those )ountries may *ro( stron*er, or those of
$uro+e may *ro( (ea0er, and the inha&itants of all the different
quarters of the (orld may arri'e at that equality of )oura*e and
for)e (hi)h, &y ins+irin* mutual fear, )an alone o'era(e the
in2usti)e of inde+endent nations into some sort of res+e)t for
the ri*hts of one another- .ut nothin* seems more li0ely to
esta&lish this equality of for)e than that mutual )ommuni)ation
of 0no(led*e and of all sorts of im+ro'ements (hi)h an e1tensi'e
)ommer)e from all )ountries to all )ountries naturally, or rather
ne)essarily, )arries alon* (ith it-
In the meantime one of the +rin)i+al effe)ts of those
dis)o'eries has &een to raise the mer)antile system to a de*ree
of s+lendour and *lory (hi)h it )ould ne'er other(ise ha'e
attained to- It is the o&2e)t of that system to enri)h a *reat
nation rather &y trade and manufa)tures than &y the im+ro'ement
and )ulti'ation of land, rather &y the industry of the to(ns than
&y that of the )ountry- .ut, in )onsequen)e of those dis)o'eries,
the )ommer)ial to(ns of $uro+e, instead of &ein* the
manufa)turers and )arriers for &ut a 'ery small +art of the (orld
9that +art of $uro+e (hi)h is (ashed &y the Atlanti) O)ean, and
the )ountries (hi)h lie round the .alti) and 4editerranean seas:,
ha'e no( &e)ome the manufa)turers for the numerous and thri'in*
)ulti'ators of Ameri)a, and the )arriers, and in some res+e)ts
the manufa)turers too, for almost all the different nations of
Asia, Afri)a, and Ameri)a- T(o ne( (orlds ha'e &een o+ened to
their industry, ea)h of them mu)h *reater and more e1tensi'e than
the old one, and the mar0et of one of them *ro(in* still *reater
and *reater e'ery day-
The )ountries (hi)h +ossess the )olonies of Ameri)a, and
(hi)h trade dire)tly to the $ast Indies, en2oy, indeed, the (hole
sho( and s+lendour of this *reat )ommer)e- Other )ountries,
ho(e'er, not(ithstandin* all the in'idious restraints &y (hi)h it
is meant to e1)lude them, frequently en2oy a *reater share of the
real &enefit of it- The )olonies of S+ain and ortu*al, for
e1am+le, *i'e more real en)oura*ement to the industry of other
)ountries than to that of S+ain and ortu*al- In the sin*le
arti)le of linen alone the )onsum+tion of those )olonies amounts,
it is said, &ut I do not +retend to (arrant the quantity, to more
than three millions sterlin* a year- .ut this *reat )onsum+tion
is almost entirely su++lied &y "ran)e, "landers, #olland, and
6ermany- S+ain and ortu*al furnish &ut a small +art of it- The
)a+ital (hi)h su++lies the )olonies (ith this *reat quantity of
linen is annually distri&uted amon*, and furnishes a re'enue to
the inha&itants of, those other )ountries- The +rofits of it only
are s+ent in S+ain and ortu*al, (here they hel+ to su++ort the
sum+tuous +rofusion of the mer)hants of Cadi; and !is&on-
$'en the re*ulations &y (hi)h ea)h nation endea'ours to
se)ure to itself the e1)lusi'e trade of its o(n )olonies are
frequently more hurtful to the )ountries in fa'our of (hi)h they
are esta&lished than to those a*ainst (hi)h they are esta&lished-
The un2ust o++ression of the industry of other )ountries falls
&a)0, if I may say so, u+on the heads of the o++ressors, and
)rushes their industry more than it does that of those other
)ountries- .y those re*ulations for e1am+le, the mer)hant of
#am&ur* must send the linen (hi)h he destines for the Ameri)an
mar0et to !ondon, and he must &rin* &a)0 from then)e the to&a))o
(hi)h he destines for the 6erman mar0et, &e)ause he )an neither
send the one dire)tly to Ameri)a nor &rin* &a)0 the other
dire)tly from then)e- .y this restraint he is +ro&a&ly o&li*ed to
sell the one some(hat )hea+er, and to sell the one some(hat
)hea+er, and to &uy the other some(hat dearer than he other(ise
mi*ht ha'e done/ and his +rofits are +ro&a&ly some(hat a&rid*ed
&y means of it- In this trade, ho(e'er, &et(een #am&ur* and
!ondon, he )ertainly re)ei'es the returns of his )a+ital mu)h
more qui)0ly than he )ould +ossi&ly ha'e done in the dire)t trade
to Ameri)a, e'en thou*h (e should su++ose, (hat is &y no means
the )ase, that the +ayments of Ameri)a (ere as +un)tual as those
of !ondon- In the trade, therefore, to (hi)h those re*ulations
)onfine the mer)hant of #am&ur*, his )a+ital )an 0ee+ in )onstant
em+loyment a mu)h *reater quantity of 6erman industry than it
+ossi&ly )ould ha'e done in the trade from (hi)h he is e1)luded-
Thou*h the one em+loyment, therefore, may to him +erha+s &e less
+rofita&le than the other, it )annot &e less ad'anta*eous to his
)ountry- It is quite other(ise (ith the em+loyment into (hi)h the
mono+oly naturally attra)ts, if I may say so, the )a+ital of the
!ondon mer)hant- That em+loyment may, +erha+s, &e more +rofita&le
to him than the *reater +art of other em+loyments, &ut, on
a))ount of the slo(ness of the returns, it )annot &e more
ad'anta*eous to his )ountry-
After all the un2ust attem+ts, therefore, of e'ery )ountry
in $uro+e to en*ross to itself the (hole ad'anta*e of the trade
of its o(n )olonies, no )ountry has yet &een a&le to en*ross
itself anythin* &ut the e1+ense of su++ortin* in time of +ea)e
and of defendin* in time of (ar the o++ressi'e authority (hi)h it
assumes o'er them- The in)on'enien)ies resultin* from the
+ossession of its )olonies, e'ery )ountry has en*rossed to itself
)om+letely- The ad'anta*es resultin* from their trade it has &een
o&li*ed to share (ith many other )ountries-
At first si*ht, no dou&t, the mono+oly of the *reat )ommer)e
of Ameri)a naturally seems to &e an a)quisition of the hi*hest
'alue- To the undis)ernin* eye of *iddy am&ition, it naturally
+resents itself amidst the )onfused s)ram&le of +oliti)s and (ar
as a 'ery da;;lin* o&2e)t to fi*ht for- The da;;lin* s+lendour of
the o&2e)t, ho(e'er, the immense *reatness of the )ommer)e, is
the 'ery quality (hi)h renders the mono+oly of it hurtful, or
(hi)h ma0es one em+loyment, in its o(n nature ne)essarily less
ad'anta*eous to the )ountry than the *reater +art of other
em+loyments, a&sor& a mu)h *reater +ro+ortion of the )a+ital of
the )ountry than (hat (ould other(ise ha'e *one to it-
The mer)antile sto)0 of e'ery )ountry, it has &een sho(n in
the se)ond &oo0, naturally see0s, if one may say so, the
em+loyment most ad'anta*eous to that )ountry- If it is em+loyed
in the )arryin* trade, the )ountry to (hi)h it &elon*s &e)omes
the em+orium of the *oods of all the )ountries (hose trade that
sto)0 )arries on- .ut the o(ner of that sto)0 ne)essarily (ishes
to dis+ose of as *reat a +art of those *oods as he )an at home-
#e there&y sa'es himself the trou&le, ris0, and e1+ense of
e1+ortation, and he (ill u+on that a))ount &e *lad to sell them
at home, not only for a mu)h smaller +ri)e, &ut (ith some(hat a
smaller +rofit than he mi*ht e1+e)t to ma0e &y sendin* them
a&road- #e naturally, therefore, endea'ours as mu)h as he )an to
turn his )arryin* trade into a forei*n trade of )onsum+tion- If
his sto)0, a*ain, is em+loyed in a forei*n trade of )onsum+tion,
he (ill, for the same reason, &e *lad to dis+ose of at home as
*reat a +art as he )an of the home *oods, (hi)h he )olle)ts in
order to e1+ort to some forei*n mar0et, and he (ill thus
endea'our, as mu)h as he )an, to turn his forei*n trade of
)onsum+tion into a home trade- The mer)antile sto)0 of e'ery
)ountry naturally )ourts in this manner the near, and shuns the
distant em+loyment/ naturally )ourts the em+loyment in (hi)h the
returns are frequent, and shuns that in (hi)h they are distant
and slo(/ naturally )ourts the em+loyment in (hi)h it )an
maintain the *reatest quantity of +rodu)ti'e la&our in the
)ountry to (hi)h it &elon*s, or in (hi)h its o(ner resides, and
shuns that in (hi)h it )an maintain there the smallest quantity-
It naturally )ourts the em+loyment (hi)h in ordinary )ases is
most ad'anta*eous, and shuns that (hi)h in ordinary )ases is
least ad'anta*eous to that )ountry-
.ut if in any of those distant em+loyments, (hi)h in
ordinary )ases are less ad'anta*eous to the )ountry, the +rofit
should ha++en to rise some(hat hi*her than (hat is suffi)ient to
&alan)e the natural +referen)e (hi)h is *i'en to nearer
em+loyments, this su+eriority of +rofit (ill dra( sto)0 from
those nearer em+loyments, till the +rofits of all return to their
+ro+er le'el- This su+eriority of +rofit, ho(e'er, is a +roof
that, in the a)tual )ir)umstan)es of the so)iety, those distant
em+loyments are some(hat understo)0ed in +ro+ortion to other
em+loyments, and that the sto)0 of the so)iety is not distri&uted
in the +ro+erest manner amon* all the different em+loyments
)arried on in it- It is a +roof that somethin* is either &ou*ht
)hea+er or sold dearer than it ou*ht to &e, and that some
+arti)ular )lass of )iti;ens is more or less o++ressed either &y
+ayin* more or &y *ettin* less than (hat is suita&le to that
equality (hi)h ou*ht to ta0e +la)e, and (hi)h naturally does ta0e
+la)e amon* all the different )lasses of them- Thou*h the same
)a+ital ne'er (ill maintain the same quantity of +rodu)ti'e
la&our in a distant as in a near em+loyment, yet a distant
em+loyment may &e as ne)essary for the (elfare of the so)iety as
a near one/ the *oods (hi)h the distant em+loyment deals in &ein*
ne)essary, +erha+s, for )arryin* on many of the nearer
em+loyments- .ut if the +rofits of those (ho deal in su)h *oods
are a&o'e their +ro+er le'el, those *oods (ill &e sold dearer
than they ou*ht to &e, or some(hat a&o'e their natural +ri)e, and
all those en*a*ed in the nearer em+loyments (ill &e more or less
o++ressed &y this hi*h +ri)e- Their interest, therefore, in this
)ase requires that some sto)0 should &e (ithdra(n from those
nearer em+loyments, and turned to(ards that distant one, in order
to redu)e its +rofits to their +ro+er le'el, and the +ri)e of the
*oods (hi)h it deals in to their natural +ri)e- In this
e1traordinary )ase, the +u&li) interest requires that some sto)0
should &e (ithdra(n from those em+loyments (hi)h in ordinary
)ases are more ad'anta*eous, and turned to(ards one (hi)h in
ordinary )ases is less ad'anta*eous to the +u&li)/ and in this
e1traordinary )ase the natural interests and in)linations of men
)oin)ide as e1a)tly (ith the +u&li) interest as in all other
ordinary )ases, and lead them to (ithdra( sto)0 from the near,
and to turn it to(ards the distant em+loyment-
It is thus that the +ri'ate interests and +assions of
indi'iduals naturally dis+ose them to turn their sto)0s to(ards
the em+loyments (hi)h in ordinary )ases are most ad'anta*eous to
the so)iety- .ut if from this natural +referen)e they should turn
too mu)h of it to(ards those em+loyments, the fall of +rofit in
them and the rise of it in all others immediately dis+ose them to
alter this faulty distri&ution- Without any inter'ention of la(,
therefore, the +ri'ate interests and +assions of men naturally
lead them to di'ide and distri&ute the sto)0 of e'ery so)iety
amon* all the different em+loyments )arried on in it as nearly as
+ossi&le in the +ro+ortion (hi)h is most a*reea&le to the
interest of the (hole so)iety-
All the different re*ulations of the mer)antile system
ne)essarily deran*e more or less this natural and most
ad'anta*eous distri&ution of sto)0- .ut those (hi)h )on)ern the
trade to Ameri)a and the $ast Indies deran*e it +erha+s more than
any other, &e)ause the trade to those t(o *reat )ontinents
a&sor&s a *reater quantity of sto)0 than any t(o other &ran)hes
of trade- The re*ulations, ho(e'er, &y (hi)h this deran*ement is
effe)ted in those t(o different &ran)hes of trade are not
alto*ether the same- 4ono+oly is the *reat en*ine of &oth/ &ut it
is a different sort of mono+oly- 4ono+oly of one 0ind or another,
indeed, seems to &e the sole en*ine of the mer)antile system-
In the trade to Ameri)a e'ery nation endea'ours to en*ross
as mu)h as +ossi&le the (hole mar0et of its o(n )olonies &y
fairly e1)ludin* all other nations from any dire)t trade to them-
Durin* the *reater +art of the si1teenth )entury, the ortu*uese
endea'oured to mana*e the trade to the $ast Indies in the same
manner, &y )laimin* the sole ri*ht of sailin* in the Indian seas,
on a))ount of the merit of ha'in* first found out the road to
them- The Dut)h still )ontinue to e1)lude all other $uro+ean
nations from any dire)t trade to their s+i)e islands- 4ono+olies
of this 0ind are e'idently esta&lished a*ainst all other $uro+ean
nations, (ho are there&y not only e1)luded from a trade to (hi)h
it mi*ht &e )on'enient for them to turn some +art of their sto)0,
&ut are o&li*ed to &uy the *oods (hi)h that trade deals in
some(hat dearer than if they )ould im+ort them themsel'es
dire)tly from the )ountries (hi)h +rodu)e them-
.ut sin)e the fall of the +o(er of ortu*al, no $uro+ean
nation has )laimed the e1)lusi'e ri*ht of sailin* in the Indian
seas, of (hi)h the +rin)i+al +orts are no( o+en to the shi+s of
all $uro+ean nations- $1)e+t in ortu*al, ho(e'er, and (ithin
these fe( years in "ran)e, the trade to the $ast Indies has in
e'ery $uro+ean )ountry &een su&2e)ted to an e1)lusi'e )om+any-
4ono+olies of this 0ind are +ro+erly esta&lished a*ainst the 'ery
nation (hi)h ere)ts them- The *reater +art of that nation are
there&y not only e1)luded from a trade to (hi)h it mi*ht &e
)on'enient for them to turn some +art of their sto)0, &ut are
o&li*ed to &uy the *oods (hi)h that trade deals some(hat dearer
than if it (as o+en and free to all their )ountrymen- Sin)e the
esta&lishment of the $n*lish $ast India Com+any, for e1am+le, the
other inha&itants of $n*land, o'er and a&o'e &ein* e1)luded from
the trade, must ha'e +aid in the +ri)e of the $ast India *oods
(hi)h they ha'e )onsumed, not only for all the e1traordinary
+rofits (hi)h the )om+any may ha'e made u+on those *oods in
)onsequen)e of their mono+oly, &ut for all the e1traordinary
(aste (hi)h the fraud and a&use, inse+ara&le from the mana*ement
of the affairs of so *reat a )om+any, must ne)essarily ha'e
o))asioned- The a&surdity of this se)ond 0ind of mono+oly,
therefore, is mu)h more manifest than that of the first-
.oth these 0inds of mono+olies deran*e more or less the
natural distri&ution of the sto)0 of the so)iety/ &ut they do not
al(ays deran*e it in the same (ay-
4ono+olies of the first 0ind al(ays attra)t to the
+arti)ular trade in (hi)h they are esta&lished a *reater
+ro+ortion of the sto)0 of the so)iety than (hat (ould *o to that
trade of its o(n a))ord-
4ono+olies of the se)ond 0ind may sometimes attra)t sto)0
to(ards the +arti)ular trade in (hi)h they are esta&lished, and
sometimes re+el it from that trade a))ordin* to different
)ir)umstan)es- In +oor )ountries they naturally attra)t to(ards
that trade more sto)0 than (ould other(ise *o to it- In ri)h
)ountries they naturally re+el from it a *ood deal of sto)0 (hi)h
(ould other(ise *o to it-
Su)h +oor )ountries as S(eden and Denmar0, for e1am+le,
(ould +ro&a&ly ha'e ne'er sent a sin*le shi+ to the $ast Indies
had not the trade &een su&2e)ted to an e1)lusi'e )om+any- The
esta&lishment of su)h a )om+any ne)essarily en)oura*es
ad'enturers- Their mono+oly se)ures them a*ainst all )om+etitors
in the home mar0et, and they ha'e the same )han)e for forei*n
mar0ets (ith the traders of other nations- Their mono+oly sho(s
them the )ertainty of a *reat +rofit u+on a )onsidera&le quantity
of *oods, and the )han)e of a )onsidera&le +rofit u+on a *reat
quantity- Without su)h e1traordinary en)oura*ement, the +oor
traders of su)h +oor )ountries (ould +ro&a&ly ne'er ha'e thou*ht
of ha;ardin* their small )a+itals in so 'ery distant and
un)ertain an ad'enture as the trade to the $ast Indies must
naturally ha'e a++eared to them-
Su)h a ri)h )ountry as #olland, on the )ontrary, (ould
+ro&a&ly, in the )ase of a free trade, send many more shi+s to
the $ast Indies than it a)tually does- The limited sto)0 of the
Dut)h $ast India Com+any +ro&a&ly re+els from that trade many
*reat mer)antile )a+itals (hi)h (ould other(ise *o to it- The
mer)antile )a+ital of #olland is so *reat that it is, as it (ere,
)ontinually o'erflo(in*, sometimes into the +u&li) funds of
forei*n )ountries, sometimes into loans to +ri'ate traders and
ad'enturers of forei*n )ountries, sometimes into the most
round8a&out forei*n trades of )onsum+tion, and sometimes into the
)arryin* trade- All near em+loyments &ein* )om+letely filled u+,
all the )a+ital (hi)h )an &e +la)ed in them (ith any tolera&le
+rofit &ein* already +la)ed in them, the )a+ital of #olland
ne)essarily flo(s to(ards the most distant em+loyments- The trade
to the $ast Indies, if it (ere alto*ether free, (ould +ro&a&ly
a&sor& the *reater +art of this redundant )a+ital- The $ast
Indies offer a mar0et for the manufa)tures of $uro+e and for the
*old and sil'er as (ell as for se'eral other +rodu)tions of
Ameri)a *reater and more e1tensi'e than &oth $uro+e and Ameri)a
+ut to*ether-
$'ery deran*ement of the natural distri&ution of sto)0 is
ne)essarily hurtful to the so)iety in (hi)h it ta0es +la)e/
(hether it &e &y re+ellin* from a +arti)ular trade the sto)0
(hi)h (ould other(ise *o to it, or &y attra)tin* to(ards a
+arti)ular trade that (hi)h (ould not other(ise )ome to it- If,
(ithout any e1)lusi'e )om+any, the trade of #olland to the $ast
Indies (ould &e *reater than it a)tually is, that )ountry must
suffer a )onsidera&le loss &y +art of its )a+ital &ein* e1)luded
from the em+loyment most )on'enient for that +art- And in the
same manner, if, (ithout an e1)lusi'e )om+any, the trade of
S(eden and Denmar0 to the $ast Indies (ould &e less than it
a)tually is, or, (hat +erha+s is more +ro&a&le, (ould not e1ist
at all, those t(o )ountries must li0e(ise suffer a )onsidera&le
loss &y +art of their )a+ital &ein* dra(n into an em+loyment
(hi)h must &e more or less unsuita&le to their +resent
)ir)umstan)es- .etter for them, +erha+s, in their +resent
)ir)umstan)es, to &uy $ast India *oods of other nations, e'en
thou*h they should +ay some(hat dearer, than to turn so *reat a
+art of their small )a+ital to so 'ery distant a trade, in (hi)h
the returns are so 'ery slo(, in (hi)h that )a+ital )an maintain
so small a quantity of +rodu)ti'e la&our at home, (here
+rodu)ti'e la&our is so mu)h (anted, (here so little is done, and
(here so mu)h is to do-
Thou*h (ithout an e1)lusi'e )om+any, therefore, a +arti)ular
)ountry should not &e a&le to )arry on any dire)t trade to the
$ast Indies, it (ill not from then)e follo( that su)h a )om+any
ou*ht to &e esta&lished there, &ut only that su)h a )ountry ou*ht
not in these )ir)umstan)es to trade dire)tly to the $ast Indies-
That su)h )om+anies are not in *eneral ne)essary for )arryin* on
the $ast India trade is suffi)iently demonstrated &y the
e1+erien)e of the ortu*uese, (ho en2oyed almost the (hole of it
for more than a )entury to*ether (ithout any e1)lusi'e )om+any-
No +ri'ate mer)hant, it has &een said, )ould (ell ha'e
)a+ital suffi)ient to maintain fa)tors and a*ents in the
different +orts of the $ast Indies, in order to +ro'ide *oods for
the shi+s (hi)h he mi*ht o))asionally send thither/ and yet,
unless he (as a&le to do this, the diffi)ulty of findin* a )ar*o
mi*ht frequently ma0e his shi+s lose the season for returnin*,
and the e1+ense of so lon* a delay (ould not only eat u+ the
(hole +rofit of the ad'enture, &ut frequently o))asion a 'ery
)onsidera&le loss- This ar*ument, ho(e'er, if it +ro'ed anythin*
at all, (ould +ro'e that no one *reat &ran)h of trade )ould &e
)arried on (ithout an e1)lusi'e )om+any, (hi)h is )ontrary to the
e1+erien)e of all nations- There is no *reat &ran)h of trade in
(hi)h the )a+ital of any one +ri'ate mer)hant is suffi)ient for
)arryin* on all the su&ordinate &ran)hes (hi)h must &e )arried
on, in order to )arry on the +rin)i+al one- .ut (hen a nation is
ri+e for any *reat &ran)h of trade, some mer)hants naturally turn
their )a+itals to(ards the +rin)i+al, and some to(ards the
su&ordinate &ran)hes of it/ and thou*h all the different &ran)hes
of it are in this manner )arried on, yet it 'ery seldom ha++ens
that they are all )arried on &y the )a+ital of one +ri'ate
mer)hant- If a nation, therefore, is ri+e for the $ast India
trade, a )ertain +ortion of its )a+ital (ill naturally di'ide
itself amon* all the different &ran)hes of that trade- Some of
its mer)hants (ill find it for their interest to reside in the
$ast Indies, and to em+loy their )a+itals there in +ro'idin*
*oods for the shi+s (hi)h are to &e sent out &y other mer)hants
(ho reside in $uro+e- The settlements (hi)h different $uro+ean
nations ha'e o&tained in the $ast Indies, if they (ere ta0en from
the e1)lusi'e )om+anies to (hi)h they at +resent &elon* and +ut
under the immediate +rote)tion of the so'erei*n, (ould render
this residen)e &oth safe and easy, at least to the mer)hants of
the +arti)ular nations to (hom those settlements &elon*- If at
any +arti)ular time that +art of the )a+ital of any )ountry (hi)h
of its o(n a))ord tended and in)lined, if I may say so, to(ards
the $ast India trade, (as not suffi)ient for )arryin* on all
those different &ran)hes of it, it (ould &e a +roof that, at that
+arti)ular time, that )ountry (as not ri+e for that trade, and
that it (ould do &etter to &uy for some time, e'en at a hi*her
+ri)e, from other $uro+ean nations, the $ast India *oods it had
o))asion for, than to im+ort them itself dire)tly from the $ast
Indies- What it mi*ht lose &y the hi*h +ri)e of those *oods )ould
seldom &e equal to the loss (hi)h it (ould sustain &y the
distra)tion of a lar*e +ortion of its )a+ital from other
em+loyments more ne)essary, or more useful, or more suita&le to
its )ir)umstan)es and situation, than a dire)t trade to the $ast
Indies-
Thou*h the $uro+eans +ossess many )onsidera&le settlements
&oth u+on the )oast of Afri)a and in the $ast Indies, they ha'e
not yet esta&lished in either of those )ountries su)h numerous
and thri'in* )olonies as those in the islands and )ontinent of
Ameri)a- Afri)a, ho(e'er, as (ell as se'eral of the )ountries
)om+rehended under the *eneral name of the $ast Indies, are
inha&ited &y &ar&arous nations- .ut those nations (ere &y no
means so (ea0 and defen)eless as the misera&le and hel+less
Ameri)ans/ and in +ro+ortion to the natural fertility of the
)ountries (hi)h they inha&ited, they (ere &esides mu)h more
+o+ulous- The most &ar&arous nations either of Afri)a or of the
$ast Indies (ere she+herds/ e'en the #ottentots (ere so- .ut the
nati'es of e'ery +art of Ameri)a, e1)e+t 4e1i)o and eru, (ere
only hunters/ and the differen)e is 'ery *reat &et(een the num&er
of she+herds and that of hunters (hom the same e1tent of equally
fertile territory )an maintain- In Afri)a and the $ast Indies,
therefore, it (as more diffi)ult to dis+la)e the nati'es, and to
e1tend the $uro+ean +lantations o'er the *reater +art of the
lands of the ori*inal inha&itants- The *enius of e1)lusi'e
)om+anies, &esides, is unfa'oura&le, it has already &een
o&ser'ed, to the *ro(th of ne( )olonies, and has +ro&a&ly &een
the +rin)i+al )ause of the little +ro*ress (hi)h they ha'e made
in the $ast Indies- The ortu*uese )arried on the trade &oth to
Afri)a and the $ast Indies (ithout any e1)lusi'e )om+anies, and
their settlements at Con*o, An*ola, and .en*uela on the )oast of
Afri)a, and at 6oa in the $ast Indies, thou*h mu)h de+ressed &y
su+erstition and e'ery sort of &ad *o'ernment, yet &ear some
faint resem&lan)e to the )olonies of Ameri)a, and are +artly
inha&ited &y ortu*uese (ho ha'e &een esta&lished there for
se'eral *enerations- The Dut)h settlements at the Ca+e of 6ood
#o+e and at .ata'ia are at +resent the most )onsidera&le )olonies
(hi)h the $uro+eans ha'e esta&lished either in Afri)a or in the
$ast Indies, and &oth these settlements are +e)uliarly fortunate
in their situation- The Ca+e of 6ood #o+e (as inha&ited &y a ra)e
of +eo+le almost as &ar&arous and quite as in)a+a&le of defendin*
themsel'es as the nati'es of Ameri)a- It is &esides the half(ay
house, if one may say so, &et(een $uro+e and the $ast Indies, at
(hi)h almost e'ery $uro+ean shi+ ma0es some stay, &oth in *oin*
and returnin*- The su++lyin* of those shi+s (ith e'ery sort of
fresh +ro'isions, (ith fruit and sometimes (ith (ine, affords
alone a 'ery e1tensi'e mar0et for the sur+lus +rodu)e of the
)olonists- What the Ca+e of 6ood #o+e is &et(een $uro+e and e'ery
+art of the $ast Indies, .ata'ia is &et(een the +rin)i+al
)ountries of the $ast Indies- It lies u+on the most frequented
road from Indostan to China and Aa+an, and is nearly a&out mid(ay
u+on that road- Almost all the shi+s, too, that sail &et(een
$uro+e and China tou)h at .ata'ia/ and it is, o'er and a&o'e all
this, the )entre and +rin)i+al mart of (hat is )alled the )ountry
trade of the $ast Indies, not only of that +art of it (hi)h is
)arried on &y $uro+eans, &ut of that (hi)h is )arried on &y the
nati'e Indians/ and 'essels na'i*ated &y the inha&itants of China
and Aa+an, of Tonquin, 4ala))a, Co)hin China, and the island of
Cele&es, are frequently to &e seen in its +ort- Su)h ad'anta*eous
situations ha'e ena&led those t(o )olonies to surmount all the
o&sta)les (hi)h the o++ressi'e *enius of an e1)lusi'e )om+any may
ha'e o))asionally o++osed to their *ro(th- They ha'e ena&led
.ata'ia to surmount the additional disad'anta*e of +erha+s the
most un(holesome )limate in the (orld-
The $n*lish and Dut)h )om+anies, thou*h they ha'e
esta&lished no )onsidera&le )olonies, e1)e+t the t(o a&o'e
mentioned, ha'e &oth made )onsidera&le )onquests in the $ast
Indies- .ut in the manner in (hi)h they &oth *o'ern their ne(
su&2e)ts, the natural *enius of an e1)lusi'e )om+any has sho(n
itself most distin)tly- In the s+i)e islands the Dut)h are said
to &urn all the s+i)eries (hi)h a fertile season +rodu)es &eyond
(hat they e1+e)t to dis+ose of in $uro+e (ith su)h a +rofit as
they thin0 suffi)ient- In the islands (here they ha'e no
settlements, they *i'e a +remium to those (ho )olle)t the youn*
&lossoms and *reen lea'es of the )lo'e and nutme* trees (hi)h
naturally *ro( there, &ut (hi)h the sa'a*e +oli)y has no(, it is
said, almost )om+letely e1tir+ated- $'en in the islands (here
they ha'e settlements they ha'e 'ery mu)h redu)ed, it is said,
the num&er of those trees- If the +rodu)e e'en of their o(n
islands (as mu)h *reater than (hat suited their mar0et, the
nati'es, they sus+e)t, mi*ht find means to )on'ey some +art of it
to other nations/ and the &est (ay, they ima*ine, to se)ure their
o(n mono+oly is to ta0e )are that no more shall *ro( than (hat
they themsel'es )arry to mar0et- .y different arts of o++ression
they ha'e redu)ed the +o+ulation of se'eral of the 4olu))as
nearly to the num&er (hi)h is suffi)ient to su++ly (ith fresh
+ro'isions and other ne)essaries of life their o(n insi*nifi)ant
*arrisons, and su)h of their shi+s as o))asionally )ome there for
a )ar*o of s+i)es- Under the *o'ernment e'en of the ortu*uese,
ho(e'er, those islands are said to ha'e &een tolera&ly (ell
inha&ited- The $n*lish )om+any ha'e not yet had time to esta&lish
in .en*al so +erfe)tly destru)ti'e a system- The +lan of their
*o'ernment, ho(e'er, has had e1a)tly the same tenden)y- It has
not &een un)ommon, I am (ell assured, for the )hief, that is, the
first )ler0 of a fa)tory, to order a +easant to +lou*h u+ a ri)h
field of +o++ies and so( it (ith ri)e or some other *rain- The
+reten)e (as, to +re'ent a s)ar)ity of +ro'isions/ &ut the real
reason, to *i'e the )hief an o++ortunity of sellin* at a &etter
+ri)e a lar*e quantity of o+ium, (hi)h he ha++ened then to ha'e
u+on hand- U+on other o))asions the order has &een re'ersed/ and
a ri)h field of ri)e or other *rain has &een +lou*hed u+, in
order to ma0e room for a +lantation of +o++ies/ (hen the )hief
foresa( that e1traordinary +rofit (as li0ely to &e made &y o+ium-
The ser'ants of the )om+any ha'e u+on se'eral o))asions attem+ted
to esta&lish in their o(n fa'our the mono+oly of some of the most
im+ortant &ran)hes, not only of the forei*n, &ut of the inland
trade of the )ountry- #ad they &een allo(ed to *o on, it is
im+ossi&le that they should not at some time or another ha'e
attem+ted to restrain the +rodu)tion of the +arti)ular arti)les
of (hi)h they had thus usur+ed the mono+oly, not only to the
quantity (hi)h they themsel'es )ould +ur)hase, &ut to that (hi)h
they )ould e1+e)t to sell (ith su)h a +rofit as they mi*ht thin0
suffi)ient- In the )ourse of the )entury or t(o, the +oli)y of
the $n*lish )om+any (ould in this manner ha'e +ro&a&ly +ro'ed as
)om+letely destru)ti'e as that of the Dut)h-
Nothin*, ho(e'er, )an &e more dire)tly )ontrary to the real
interest of those )om+anies, )onsidered as the so'erei*ns of the
)ountries (hi)h they ha'e )onquered, than this destru)ti'e +lan-
In almost all )ountries the re'enue of the so'erei*n is dra(n
from that of the +eo+le- The *reater the re'enue of the +eo+le,
therefore, the *reater the annual +rodu)e of their land and
la&our, the more they )an afford to the so'erei*n- It is his
interest, therefore, to in)rease as mu)h as +ossi&le that annual
+rodu)e- .ut if this is the interest of e'ery so'erei*n, it is
+e)uliarly so of one (hose re'enue, li0e that of the so'erei*n of
.en*al, arises )hiefly from a land8rent- That rent must
ne)essarily &e in +ro+ortion to the quantity and 'alue of the
+rodu)e, and &oth the one and the other must de+end u+on the
e1tent of the mar0et- The quantity (ill al(ays &e suited (ith
more or less e1a)tness to the )onsum+tion of those (ho )an afford
to +ay for it, and the +ri)e (hi)h they (ill +ay (ill al(ays &e
in +ro+ortion to the ea*erness of their )om+etition- It is the
interest of su)h a so'erei*n, therefore, to o+en the most
e1tensi'e mar0et for the +rodu)e of his )ountry, to allo( the
most +erfe)t freedom of )ommer)e, in order to in)rease as mu)h as
+ossi&le the num&er and the )om+etition of &uyers/ and u+on this
a))ount to a&olish, not only all mono+olies, &ut all restraints
u+on the trans+ortation of the home +rodu)e from one +art of the
)ountry to another, u+on its e1+ortation to forei*n )ountries, or
u+on the im+ortation of *oods of any 0ind for (hi)h it )an &e
e1)han*ed- It is in this manner most li0ely to in)rease &oth the
quantity and 'alue of that +rodu)e, and )onsequently of his o(n
share of it, or of his o(n re'enue-
.ut a )om+any of mer)hants are, it seems, in)a+a&le of
)onsiderin* themsel'es as so'erei*ns, e'en after they ha'e &e)ome
su)h- Trade, or &uyin* in order to sell a*ain, they still
)onsider as their +rin)i+al &usiness, and &y a stran*e a&surdity
re*ard the )hara)ter of the so'erei*n as &ut an a++endi1 to that
of the mer)hant, as somethin* (hi)h ou*ht to &e made su&ser'ient
to it, or &y means of (hi)h they may &e ena&led to &uy )hea+er in
India, and there&y to sell (ith a &etter +rofit in $uro+e- They
endea'our for this +ur+ose to 0ee+ out as mu)h as +ossi&le all
)om+etitors from the mar0et of the )ountries (hi)h are su&2e)t to
their *o'ernment, and )onsequently to redu)e, at least, some +art
of the sur+lus +rodu)e of those )ountries to (hat is &arely
suffi)ient for su++lyin* their o(n demand, or to (hat they )an
e1+e)t to sell in $uro+e (ith su)h a +rofit as they may thin0
reasona&le- Their mer)antile ha&its dra( them in this manner,
almost ne)essarily, thou*h +erha+s insensi&ly, to +refer u+on all
ordinary o))asions the little and transitory +rofit of the
mono+olist to the *reat and +ermanent re'enue of the so'erei*n,
and (ould *radually lead them to treat the )ountries su&2e)t to
their *o'ernment nearly as the Dut)h treat the 4olu)eas- It is
the interest of the $ast India Com+any, )onsidered as so'erei*ns,
that the $uro+ean *oods (hi)h are )arried to their Indian
dominions should &e sold there as )hea+ as +ossi&le/ and that the
Indian *oods (hi)h are &rou*ht from then)e should &rin* there as
*ood a +ri)e, or should &e sold there as dear as +ossi&le- .ut
the re'erse of this is their interest as mer)hants- As
so'erei*ns, their interest is e1a)tly the same (ith that of the
)ountry (hi)h they *o'ern- As mer)hants their interest is
dire)tly o++osite to that interest-
.ut if the *enius of su)h a *o'ernment, e'en as to (hat
)on)erns its dire)tion in $uro+e, is in this manner essentially
and +erha+s in)ura&ly faulty, that of its administration in India
is still more so- That administration is ne)essarily )om+osed of
a )oun)il of mer)hants, a +rofession no dou&t e1tremely
res+e)ta&le, &ut (hi)h in no )ountry in the (orld )arries alon*
(ith it that sort of authority (hi)h naturally o'era(es the
+eo+le, and (ithout for)e )ommands their (illin* o&edien)e- Su)h
a )oun)il )an )ommand o&edien)e only &y the military for)e (ith
(hi)h they are a))om+anied, and their *o'ernment is therefore
ne)essarily military and des+oti)al- Their +ro+er &usiness,
ho(e'er, is that of mer)hants- It is to sell, u+on their masters=
a))ount, the $uro+ean *oods )onsi*ned to them, and to &uy in
return Indian *oods for the $uro+ean mar0et- It is to sell the
one as dear and to &uy the other as )hea+ as +ossi&le, and
)onsequently to e1)lude as mu)h as +ossi&le all ri'als from the
+arti)ular mar0et (here they 0ee+ their sho+- The *enius of the
administration therefore, so far as )on)erns the trade of the
)om+any, is the same as that of the dire)tion- It tends to ma0e
*o'ernment su&ser'ient to the interest of mono+oly, and
)onsequently to stunt the natural *ro(th of some +arts at least
of the sur+lus +rodu)e of the )ountry to (hat is &arely
suffi)ient for ans(erin* the demand of the )om+any-
All the mem&ers of the administration, &esides, trade more
or less u+on their o(n a))ount, and it is in 'ain to +rohi&it
them from doin* so- Nothin* )an &e more )om+letely foolish than
to e1+e)t that the )ler0s of a *reat )ountin*8house at ten
thousand miles distan)e, and )onsequently almost quite out of
si*ht, should, u+on a sim+le order from their masters, *i'e u+ at
on)e doin* any sort of &usiness u+on their o(n a))ount, a&andon
for e'er all ho+es of ma0in* a fortune, of (hi)h they ha'e the
means in their hands, and )ontent themsel'es (ith the moderate
salaries (hi)h those masters allo( them, and (hi)h, moderate as
they are, )an seldom &e au*mented, &ein* )ommonly as lar*e as the
real +rofits of the )om+any trade )an afford- In su)h
)ir)umstan)es, to +rohi&it the ser'ants of the )om+any from
tradin* u+on their o(n a))ount )an ha'e s)ar)e any other effe)t
than to ena&le the su+erior ser'ants, under +reten)e of e1e)utin*
their masters= order, to o++ress su)h of the inferior ones as
ha'e had the misfortune to fall under their dis+leasure- The
ser'ants naturally endea'our to esta&lish the same mono+oly in
fa'our of their o(n +ri'ate trade as of the +u&li) trade of the
)om+any- If they are suffered to a)t as they )ould (ish, they
(ill esta&lish this mono+oly o+enly and dire)tly, &y fairly
+rohi&itin* all other +eo+le from tradin* in the arti)les in
(hi)h they )hoose to deal/ and this, +erha+s, is the &est and
least o++ressi'e (ay of esta&lishin* it- .ut if &y an order from
$uro+e they are +rohi&ited from doin* this, they (ill,
not(ithstandin*, endea'our to esta&lish a mono+oly of the same
0ind, se)retly and indire)tly, in a (ay that is mu)h more
destru)ti'e to the )ountry- They (ill em+loy the (hole authority
of *o'ernment, and +er'ert the administration of 2usti)e, in
order to harass and ruin those (ho interfere (ith them in any
&ran)h of )ommer)e, (hi)h &y means of a*ents, either )on)ealed,
or at least not +u&li)ly a'o(ed, they may )hoose to )arry on- .ut
the +ri'ate trade of the ser'ants (ill naturally e1tend to a mu)h
*reater 'ariety of arti)les than the +u&li) trade of the )om+any-
The +u&li) trade of the )om+any e1tends no further than the trade
(ith $uro+e, and )om+rehends a +art only of the forei*n trade of
the )ountry- .ut the +ri'ate trade of the ser'ants may e1tend to
all the different &ran)hes &oth of its inland and forei*n trade-
The mono+oly of the )om+any )an tend only to stunt the natural
*ro(th of that +art of the sur+lus +rodu)e (hi)h, in the )ase of
a free trade, (ould &e e1+orted to $uro+e- That of the ser'ants
tends to stunt the natural *ro(th of e'ery +art of the +rodu)e in
(hi)h they )hoose to deal, of (hat is destined for home
)onsum+tion, as (ell as of (hat is destined for e1+ortation/ and
)onsequently to de*rade the )ulti'ation of the (hole )ountry, and
to redu)e the num&er of its inha&itants- It tends to redu)e the
quantity of e'ery sort of +rodu)e, e'en that of the ne)essaries
of life, (hene'er the ser'ants of the )om+any )hoose to deal in
them, to (hat those ser'ants )an &oth afford to &uy and e1+e)t to
sell (ith su)h a +rofit as +leases them-
"rom the nature of their situation, too, the ser'ants must
&e more dis+osed to su++ort (ith ri*orous se'erity their o(n
interest a*ainst that of the )ountry (hi)h they *o'ern than their
masters )an &e to su++ort theirs- The )ountry &elon*s to their
masters, (ho )annot a'oid ha'in* some re*ard for the interest of
(hat &elon*s to them- .ut it does not &elon* to the ser'ants- The
real interest of their masters, if they (ere )a+a&le of
understandin* it, is the same (ith that of the )ountry, and it is
from i*noran)e )hiefly, and the meanness of mer)antile +re2udi)e,
that they e'er o++ress it- .ut the real interest of the ser'ants
is &y no means the same (ith that of the )ountry, and the most
+erfe)t information (ould not ne)essarily +ut an end to their
o++ressions- The re*ulations a))ordin*ly (hi)h ha'e &een sent out
from $uro+e, thou*h they ha'e &een frequently (ea0, ha'e u+on
most o))asions &een (ell8meanin*- 4ore intelli*en)e and +erha+s
less *ood8meanin* has sometimes a++eared in those esta&lished &y
the ser'ants in India- It is a 'ery sin*ular *o'ernment in (hi)h
e'ery mem&er of the administration (ishes to *et out of the
)ountry, and )onsequently to ha'e done (ith the *o'ernment as
soon as he )an, and to (hose interest, the day after he has left
it and )arried his (hole fortune (ith him, it is +erfe)tly
indifferent thou*h the (hole )ountry (as s(allo(ed u+ &y an
earthqua0e-
I mean not, ho(e'er, &y anythin* (hi)h I ha'e here said, to
thro( any odious im+utation u+on the *eneral )hara)ter of the
ser'ants of the $ast India Com+any, and mu)h less u+on that of
any +arti)ular +ersons- It is the system of *o'ernment, the
situation in (hi)h they are +la)ed, that I mean to )ensure, not
the )hara)ter of those (ho ha'e a)ted in it- They a)ted as their
situation naturally dire)ted, and they (ho ha'e )lamoured the
loudest a*ainst them (ould +ro&a&ly not ha'e a)ted &etter
themsel'es- In (ar and ne*otiation, the )oun)ils of 4adras and
Cal)utta ha'e u+on se'eral o))asions )ondu)ted themsel'es (ith a
resolution and de)isi'e (isdom (hi)h (ould ha'e done honour to
the senate of Rome in the &est days of that re+u&li)- The mem&ers
of those )oun)ils, ho(e'er, had &een &red to +rofessions 'ery
different from (ar and +olities- .ut their situation alone,
(ithout edu)ation, e1+erien)e, or e'en e1am+le, seems to ha'e
formed in them all at on)e the *reat qualities (hi)h it required,
and to ha'e ins+ired them &oth (ith a&ilities and 'irtues (hi)h
they themsel'es )ould not (ell 0no( that they +ossessed- If u+on
some o))asions, therefore, it has animated them to a)tions of
ma*nanimity (hi)h )ould not (ell ha'e &een e1+e)ted from them, (e
should not (onder if u+on others it has +rom+ted them to e1+loits
of some(hat a different nature-
Su)h e1)lusi'e )om+anies, therefore, are nuisan)es in e'ery
res+e)t/ al(ays more or less in)on'enient to the )ountries in
(hi)h they are esta&lished, and destru)ti'e to those (hi)h ha'e
the misfortune to fall under their *o'ernment-
C#AT$R 5III
Con)lusion of the 4er)antile System
T#OU6# the en)oura*ement of e1+ortation and the
dis)oura*ement of im+ortation are the t(o *reat en*ines &y (hi)h
the mer)antile system +ro+oses to enri)h e'ery )ountry, yet (ith
re*ard to some +arti)ular )ommodities it seems to follo( an
o++osite +lan3 to dis)oura*e e1+ortation and to en)oura*e
im+ortation- Its ultimate o&2e)t, ho(e'er, it +retends, is al(ays
the same, to enri)h the )ountry &y an ad'anta*eous &alan)e of
trade- It dis)oura*es the e1+ortation of the materials of
manufa)ture, and of the instruments of trade, in order to *i'e
our o(n (or0men an ad'anta*e, and to ena&le them to undersell
those of other nations in all forei*n mar0ets/ and &y
restrainin*, in this manner, the e1+ortation of a fe(
)ommodities, of no *reat +ri)e, it +ro+oses to o))asion a mu)h
*reater and more 'alua&le e1+ortation of others- It en)oura*es
the im+ortation of the materials of manufa)ture in order that our
o(n +eo+le may &e ena&led to (or0 them u+ more )hea+ly, and
there&y +re'ent a *reater and more 'alua&le im+ortation of the
manufa)tured )ommodities- I do not o&ser'e, at least in our
Statute .oo0, any en)oura*ement *i'en to the im+ortation of the
instruments of trade- When manufa)tures ha'e ad'an)ed to a
)ertain +it)h of *reatness, the fa&ri)ation of the instruments of
trade &e)omes itself the o&2e)t of a *reat num&er of 'ery
im+ortant manufa)tures- To *i'e any +arti)ular en)oura*ement to
the im+ortation of su)h instruments (ould interfere too mu)h (ith
the interest of those manufa)tures- Su)h im+ortation, therefore,
instead of &ein* en)oura*ed, has frequently &een +rohi&ited- Thus
the im+ortation of (ool )ards, e1)e+t from Ireland, or (hen
&rou*ht in as (re)0 or +ri;e *oods, (as +rohi&ited &y the Brd of
$d(ard I5/ (hi)h +rohi&ition (as rene(ed &y the BFth of
$li;a&eth, and has &een )ontinued and rendered +er+etual &y
su&sequent la(s-
The im+ortation of the materials of manufa)ture has
sometimes &een en)oura*ed &y an e1em+tion from the duties to
(hi)h other *oods are su&2e)t, and sometimes &y &ounties-
The im+ortation of shee+=s (ool from se'eral different
)ountries, of )otton (ool from all )ountries, of undressed fla1,
of the *reater +art of dyein* dru*s, of the *reater +art of
undressed hides from Ireland or the .ritish )olonies, of
seals0ins from the .ritish 6reenland fishery, of +i* and &ar iron
from the .ritish )olonies, as (ell as of se'eral other materials
of manufa)ture, has &een en)oura*ed &y an e1em+tion from all
duties, if +ro+erly entered at the )ustom house- The +ri'ate
interest of our mer)hants and manufa)turers may, +erha+s, ha'e
e1torted from the le*islature these e1em+tions as (ell as the
*reater +art of our other )ommer)ial re*ulations- They are,
ho(e'er, +erfe)tly 2ust and reasona&le, and if, )onsistently (ith
the ne)essities of the state, they )ould &e e1tended to all the
other materials of manufa)ture, the +u&li) (ould )ertainly &e a
*ainer-
The a'idity of our *reat manufa)turers, ho(e'er, has in some
)ases e1tended these e1em+tions a *ood deal &eyond (hat )an
2ustly &e )onsidered as the rude materials of their (or0- .y the
EGth 6eor*e III, )- G6, a small duty of only one +enny the +ound
(as im+osed u+on the im+ortation of forei*n &ro(n linen yam,
instead of mu)h hi*her duties to (hi)h it had &een su&2e)ted
&efore, 'i;- of si1+en)e the +ound u+on sail yarn, of one
shillin* the +ound u+on all "ren)h and Dut)h yarn, and of t(o
+ounds thirteen shillin*s and four+en)e u+on the hundred(ei*ht of
all s+ru)e or 4us)o'ia yarn- .ut our manufa)turers (ere not lon*
satisfied (ith this redu)tion- .y the EFth of the same 0in*, )-
1H, the same la( (hi)h *a'e a &ounty u+on the e1+ortation of
.ritish and Irish linen of (hi)h the +ri)e did not e1)eed
ei*hteen+en)e the yard, e'en this small duty u+on the im+ortation
of &ro(n linen yarn (as ta0en a(ay- In the different o+erations,
ho(e'er, (hi)h are ne)essary for the +re+aration of linen yarn, a
*ood deal more industry is em+loyed than in the su&sequent
o+eration of +re+arin* linen )loth from linen yarn- To say
nothin* of the industry of the fla18*ro(ers and fla18dressers,
three or four s+inners, at least, are ne)essary in order to 0ee+
one (ea'er in )onstant em+loyment/ and more than four8fifths of
the (hole quantity of la&our ne)essary for the +re+aration of
linen )loth is em+loyed in that of linen yarn/ &ut our s+inners
are +oor +eo+le, (omen )ommonly s)attered a&out in all different
+arts of the )ountry, (ithout su++ort or +rote)tion- It is not &y
the sale of their (or0, &ut &y that of the )om+lete (or0 of the
(ea'ers, that our *reat master manufa)turers ma0e their +rofits-
As it is their interest to sell the )om+lete manufa)ture as dear,
so is it to &uy the materials as )hea+ as +ossi&le- .y e1tortin*
from the le*islature &ounties u+on the e1+ortation of their o(n
linen, hi*h duties u+on the im+ortation of all forei*n linen, and
a total +rohi&ition of the home )onsum+tion of some sorts of
"ren)h linen, they endea'our to sell their o(n *oods as dear as
+ossi&le- .y en)oura*in* the im+ortation of forei*n linen yarn,
and there&y &rin*in* it into )om+etition (ith that (hi)h is made
&y our o(n +eo+le, they endea'our to &uy the (or0 of the +oor
s+inners as )hea+ as +ossi&le- They are as intent to 0ee+ do(n
the (a*es of their o(n (ea'ers as the earnin*s of the +oor
s+inners, and it is &y no means for the &enefit of the (or0man
that they endea'our either to raise the +ri)e of the )om+lete
(or0 or to lo(er that of the rude materials- It is the industry
(hi)h is )arried on for the &enefit of the ri)h and the +o(erful
that is +rin)i+ally en)oura*ed &y our mer)antile system- That
(hi)h is )arried on for the &enefit of the +oor and the indi*ent
is too often either ne*le)ted or o++ressed-
.oth the &ounty u+on the e1+ortation of linen, and the
e1em+tion from duty u+on the im+ortation of forei*n yarn, (hi)h
(ere *ranted only for fifteen years, &ut )ontinued &y t(o
different +rolon*ations, e1+ire (ith the end of the session of
arliament (hi)h shall immediately follo( the EGth of Aune 17?6-
The en)oura*ement *i'en to the im+ortation of the materials
of manufa)ture &y &ounties has &een +rin)i+ally )onfined to su)h
as (ere im+orted from our Ameri)an +lantations-
The first &ounties of this 0ind (ere those *ranted a&out the
&e*innin* of the +resent )entury u+on the im+ortation of na'al
stores from Ameri)a- Under this denomination (ere )om+rehended
tim&er fit for masts, yards, and &o(s+rits/ hem+/ tar, +it)h, and
tur+entine- The &ounty, ho(e'er, of one +ound the ton u+on
mastin*8tim&er, and that of si1 +ounds the ton u+on hem+, (ere
e1tended to su)h as should &e im+orted into $n*land from
S)otland- .oth these &ounties )ontinued (ithout any 'ariation, at
the same rate, till they (ere se'erally allo(ed to e1+ire/ that
u+on hem+ on the 1st of Aanuary 17G1, and that u+on
mastin*8tim&er at the end of the session of arliament
immediately follo(in* the EGth Aune 17?1-
The &ounties u+on the im+ortation of tar, +it)h, and
tur+entine under(ent, durin* their )ontinuan)e, se'eral
alterations- Ori*inally that u+on tar (as four +ounds the ton/
that u+on +it)h the same/ and that u+on tur+entine, three +ounds
the ton- The &ounty of four +ounds the ton u+on tar (as
after(ards )onfined to su)h as had &een +re+ared in a +arti)ular
manner/ that u+on other *ood, )lean, and mer)hanta&le tar (as
redu)ed to t(o +ounds four shillin*s the ton- The &ounty u+on
+it)h (as li0e(ise redu)ed to one +ound/ and that u+on tur+entine
to one +ound ten shillin*s the ton-
The se)ond &ounty u+on the im+ortation of any of the
materials of manufa)ture, a))ordin* to the order of time, (as
that *ranted &y the E1st 6eor*e II, )- BC, u+on the im+ortation
of indi*o from the .ritish +lantations- When the +lantation
indi*o (as (orth three8fourths of the +ri)e of the &est "ren)h
indi*o, it (as &y this a)t entitled to a &ounty of si1+en)e the
+ound- This &ounty, (hi)h, li0e most others, (as *ranted only for
a limited time, (as )ontinued &y se'eral +rolon*ations, &ut (as
redu)ed to four+en)e the +ound- It (as allo(ed to e1+ire (ith the
end of the session of arliament (hi)h follo(ed the EHth 4ar)h
17?1-
The third &ounty of this 0ind (as that *ranted 9mu)h a&out
the time that (e (ere &e*innin* sometimes to )ourt and sometimes
to quarrel (ith our Ameri)an )olonies: &y the Gth 6eor*e III, )-
E6, u+on the im+ortation of hem+, or undressed fla1, from the
.ritish +lantations- This &ounty (as *ranted for t(enty8one
years, from the EGth Aune 176G to the EGth Aune 17?H- "or the
first se'en years it (as to &e at the rate of ei*ht +ounds the
ton, for the se)ond at si1 +ounds, and for the third at four
+ounds- It (as not e1tended to S)otland, of (hi)h the )limate
9althou*h hem+ is sometimes raised there in small quantities and
of an inferior quality: is not 'ery fit for that +rodu)e- Su)h a
&ounty u+on the im+ortation of S)ot)h fla1 into $n*land (ould
ha'e &een too *reat a dis)oura*ement to the nati'e +rodu)e of the
southern +art of the United %in*dom-
The fourth &ounty of this 0ind (as that *ranted &y the Hth
6eor*e III, )- GH, u+on the im+ortation of (ood from Ameri)a- It
(as *ranted for nine years, from the 1st Aanuary 1766 to the 1st
Aanuary 177H- Durin* the first three years, it (as to &e for
e'ery hundred and t(enty *ood deals, at the rate of one +ound,
and for e'ery load )ontainin* fifty )u&i) feet of other squared
tim&er at the rate of t(el'e shillin*s- "or the se)ond three
years, it (as for deals to &e at- the rate of fifteen shillin*s,
and for other squared tim&er at the rate of ei*ht shillin*s/ and
for the third three years, it (as for deals to &e at the rate of
ten shillin*s, and for other squared tim&er at the rate of fi'e
shillin*s-
The fifth &ounty of this 0ind (as that *ranted &y the Fth
6eor*e III, )- B?, u+on the im+ortation of ra( sil0 from the
.ritish +lantations- It (as *ranted for t(enty8one years, from
the 1st Aanuary 177C to the 1st Aanuary 17F1- "or the first se'en
years it (as to &e at the rate of t(enty8fi'e +ounds for e'ery
hundred +ounds 'alue/ for the se)ond at t(enty +ounds/ and for
the third at fifteen +ounds- The mana*ement of the sil0 (orm, and
the +re+aration of sil0, requires so mu)h hand la&our, and la&our
is so 'ery dear in Ameri)a that e'en this *reat &ounty, I ha'e
&een informed, (as not li0ely to +rodu)e any )onsidera&le effe)t-
The si1th &ounty of this 0ind (as that *ranted &y End 6eor*e
III, )- HC, for the im+ortation of +i+e, ho*shead, and &arrel
sta'es and headin* from the .ritish +lantations- It (as *ranted
for nine years, from 1st Aanuary 177E to the 1st Aanuary 17?1-
"or the first three years it (as for a )ertain quantity of ea)h
to &e at the rate of si1 +ounds/ for the se)ond three years at
four +ounds/ and for the third three years at t(o +ounds-
The se'enth and last &ounty of this 0ind (as that *ranted &y
the 1Fth 6eor*e III, )- B7, u+on the im+ortation of hem+ from
Ireland- It (as *ranted in the same manner as that for the
im+ortation of hem+ and undressed fla1 from Ameri)a, for
t(enty8one years, from the EGth Aune 177F to the EGth Aune 1?CC-
This term is di'ided, li0e(ise, into three +eriods of se'en years
ea)h/ and in ea)h of those +eriods the rate of the Irish &ounty
is the same (ith that of the Ameri)an- It does not, ho(e'er, li0e
the Ameri)an &ounty, e1tend to the im+ortation of undressed fla1-
It (ould ha'e &een too *reat a dis)oura*ement to the )ulti'ation
of that +lant in 6reat .ritain- When this last &ounty (as
*ranted, the .ritish and Irish le*islatures (ere not in mu)h
&etter humour (ith one another than the .ritish and Ameri)an had
&een &efore- .ut this &oon to Ireland, it is to &e ho+ed, has
&een *ranted under more fortunate aus+i)es than all those to
Ameri)a-
The same )ommodities u+on (hi)h (e thus *a'e &ounties (hen
im+orted from Ameri)a (ere su&2e)ted to )onsidera&le duties (hen
im+orted from any other )ountry- The interest of our Ameri)an
)olonies (as re*arded as the same (ith that of the mother
)ountry- Their (ealth (as )onsidered as our (ealth- Whate'er
money (as sent out to them, it (as said, )ame all &a)0 to us &y
the &alan)e of trade, and (e )ould ne'er &e)ome a farthin* the
+oorer &y any e1+ense (hi)h (e )ould lay out u+on them- They (ere
our o(n in e'ery res+e)t, and it (as an e1+ense laid out u+on the
im+ro'ement of our o(n +ro+erty and for the +rofita&le em+loyment
of our o(n +eo+le- It is unne)essary, I a++rehend, at +resent to
say anythin* further in order to e1+ose the folly of a system
(hi)h fatal e1+erien)e has no( suffi)iently e1+osed- #ad our
Ameri)an )olonies really &een a +art of 6reat .ritain, those
&ounties mi*ht ha'e &een )onsidered as &ounties u+on +rodu)tion,
and (ould still ha'e &een lia&le to all the o&2e)tions to (hi)h
su)h &ounties are lia&le, &ut to no other-
The e1+ortation of the materials of manufa)ture is sometimes
dis)oura*ed &y a&solute +rohi&itions, and sometimes &y hi*h
duties-
Our (oollen manufa)turers ha'e &een more su))essful than any
other )lass of (or0men in +ersuadin* the le*islature that the
+ros+erity of the nation de+ended u+on the su))ess and e1tension
of their +arti)ular &usiness- They ha'e not only o&tained a
mono+oly a*ainst the )onsumers &y an a&solute +rohi&ition of
im+ortin* (oollen )loths from any forei*n )ountry, &ut they ha'e
li0e(ise o&tained another mono+oly a*ainst the shee+ farmers and
*ro(ers of (ool &y a similar +rohi&ition of the e1+ortation of
li'e shee+ and (ool- The se'erity of many of the la(s (hi)h ha'e
&een ena)ted for the se)urity of the re'enue is 'ery 2ustly
)om+lained of, as im+osin* hea'y +enalties u+on a)tions (hi)h,
ante)edent to the statutes that de)lared them to &e )rimes, had
al(ays &een understood to &e inno)ent- .ut the )ruellest of our
re'enue la(s, I (ill 'enture to affirm, are mild and *entle in
)om+arison of some of those (hi)h the )lamour of our mer)hants
and manufa)turers has e1torted from the le*islature for the
su++ort of their o(n a&surd and o++ressi'e mono+olies- !i0e the
la(s of Dra)o, these la(s may &e said to &e all (ritten in &lood-
.y the ?th of $li;a&eth, )- B, the e1+orter of shee+, lam&s,
or rams (as for the first offen)e to forfeit all his *oods for
e'er, to suffer a year=s im+risonment, and then to ha'e his left
hand )ut off in a mar0et to(n u+on a mar0et day, to &e there
nailed u+/ and for the se)ond offen)e to &e ad2ud*ed a felon, and
to suffer death a))ordin*ly- To +re'ent the &reed of our shee+
from &ein* +ro+a*ated in forei*n )ountries seems to ha'e &een the
o&2e)t of this la(- .y the 1Bth and 1Gth of Charles II, )- 1?,
the e1+ortation of (ool (as made felony, and the e1+orter
su&2e)ted to the same +enalties and forfeitures as a felon-
"or the honour of the national humanity, it is to &e ho+ed
that neither of these statutes (ere e'er e1e)uted- The first of
them, ho(e'er/ so far as I 0no(, has ne'er &een dire)tly
re+ealed, and Ser2eant #a(0ins seems to )onsider it as still in
for)e- It may ho(e'er, +erha+s, &e )onsidered as 'irtually
re+ealed &y the 1Eth of Charles II, )- BE, se)t- B, (hi)h,
(ithout e1+ressly ta0in* a(ay the +enalties im+osed &y former
statutes, im+oses a ne( +enalty, 'i;-, that of t(enty shillin*s
for e'ery shee+ e1+orted, or attem+ted to &e e1+orted, to*ether
(ith the forfeiture of the shee+ and of the o(ner=s share of the
shi+- The se)ond of them (as e1+ressly re+ealed &y the 7th and
?th of William III, )- E?, se)t- G- .y (hi)h it is de)lared that,
@Whereas the statute of the 1Bth and 1Gth of %in* Charles II,
made a*ainst the e1+ortation of (ool, amon* other thin*s in the
said a)t mentioned, doth ena)t the same to &e deemed felony/ &y
the se'erity of (hi)h +enalty the +rose)ution of offenders hath
not &een so effe)tually +ut in e1e)ution3 .e it, therefore,
ena)ted &y the authority aforesaid, that so mu)h of the said a)t,
(hi)h relates to the ma0in* the said offen)e felony, &e re+ealed
and made 'oid-@
The +enalties, ho(e'er, (hi)h are either im+osed &y this
milder statute, or (hi)h, thou*h im+osed &y former statutes, are
not re+ealed &y this one, are still suffi)iently se'ere- .esides
the forfeiture of the *oods, the e1+orter in)urs the +enalty of
three shillin*s for e'ery +ound (ei*ht of (ool either e1+orted or
attem+ted to &e e1+orted, that is a&out four or fi'e times the
'alue- Any mer)hant or other +erson )on'i)ted of this offen)e is
disa&led from requirin* any de&t or a))ount &elon*in* to him from
any fa)tor or other +erson- !et his fortune &e (hat it (ill,
(hether he is or is not a&le to +ay those hea'y +enalties, the
la( means to ruin him )om+letely- .ut as the morals of the *reat
&ody of the +eo+le are not yet so )orru+t as those of the
)ontri'ers of this statute, I ha'e not heard that any ad'anta*e
has e'er &een ta0en of this )lause- If the +erson )on'i)ted of
this offen)e is not a&le to +ay the +enalties (ithin three months
after 2ud*ment, he is to &e trans+orted for se'en years, and if
he returns &efore the e1+iration of that term, he is lia&le to
the +ains of felony, (ithout &enefit of )ler*y- The o(ner of the
shi+, 0no(in* this offen)e, forfeits all his interest in the shi+
and furniture- The master and mariners, 0no(in* this offen)e,
forfeit all their *oods and )hattels, and suffer three months=
im+risonment- .y a su&sequent statute the master suffers si1
months= im+risonment-
In order to +re'ent e1+ortation, the (hole inland )ommer)e
of (ool is laid under 'ery &urdensome and o++ressi'e
restri)tions- It )annot &e +a)0ed in any &o1, &arrel, )as0, )ase,
)hest, or any other +a)0a*e, &ut only in +a)0s of leather or
+a)08)loth, on (hi)h must &e mar0ed on the outside the (ords (ool
or yam, in lar*e letters not less than three in)hes lon*, on +ain
of forfeitin* the same and the +a)0a*e, and three shillin*s for
e'ery +ound (ei*ht, to &e +aid &y the o(ner or +a)0er- It )annot
&e loaden on any horse or )art, or )arried &y land (ithin fi'e
miles of the )oast, &ut &et(een sun8risin* and sun8settin*, on
+ain of forfeitin* the same, the horses and )arria*es- The
hundred ne1t ad2oinin* to the sea8)oast, out of or throu*h (hi)h
the (ool is )arried or e1+orted, forfeits t(enty +ounds, if the
(ool is under the 'alue of ten +ounds/ and if of *reater 'alue,
then tre&le that 'alue, to*ether (ith tre&le )osts, to &e sued
for (ithin the year- The e1e)ution to &e a*ainst any t(o of the
inha&itants, (hom the sessions must reim&urse, &y an assessment
on the other inha&itants, as in the )ases of ro&&ery- And if any
+erson )om+ounds (ith the hundred for less than this +enalty, he
is to &e im+risoned for fi'e years/ and any other +erson may
+rose)ute- These re*ulations ta0e +la)e throu*h the (hole
0in*dom-
.ut in the +arti)ular )ounties of %ent and Susse1, the
restri)tions are still more trou&lesome- $'ery o(ner of (ool
(ithin ten miles of the sea8)oast must *i'en an a))ount in
(ritin*, three days after shearin* to the ne1t offi)er of the
)ustoms, of the num&er of his flee)es, and of the +la)es (here
they are lod*ed- And &efore he remo'es any +art of them he must
*i'e the li0e noti)e of the num&er and (ei*ht of the flee)es, and
of the name and a&ode of the +erson to (hom they are sold, and of
the +la)e to (hi)h it is intended they should &e )arried- No
+erson (ithin fifteen miles of the sea, in the said )ounties, )an
&uy any (ool &efore he enters into &ond to the 0in* that no +art
of the (ool (hi)h he shall so &uy shall &e sold &y him to any
other +erson (ithin fifteen miles of the sea- If any (ool is
found )arryin* to(ards the sea8side in the said )ounties, unless
it has &een entered and se)urity *i'en as aforesaid, it is
forfeited, and the offender also forfeits three shillin*s for
e'ery +ound (ei*ht- If any +erson lays any (ool not entered as
aforesaid (ithin fifteen miles of the sea, it must &e sei;ed and
forfeited/ and if, after su)h sei;ure, any +erson )laim the same,
he must *i'e se)urity to the $1)hequer that if he is )ast u+on
trial he shall +ay tre&le )osts, &esides all other +enalties-
When su)h restri)tions are im+osed u+on the inland trade,
the )oastin* trade, (e may &elie'e, )annot &e left 'ery free-
$'ery o(ner of (ool (ho )arries or )auses to &e )arried any (ool
to any +ort or +la)e on the sea)oast, in order to &e from then)e
trans+orted &y sea to any other +la)e or +ort on the )oast, must
first )ause an entry thereof to &e made at the +ort from (hen)e
it is intended to &e )on'eyed, )ontainin* the (ei*ht, mar0s, and
num&er of the +a)0a*es, &efore he &rin*s the same (ithin fi'e
miles of that +ort, on +ain of forfeitin* the same, and also the
horses, )arts, and other )arria*es/ and also of sufferin* and
forfeitin* as &y the other la(s in for)e a*ainst the e1+ortation
of (ool- This la(, ho(e'er 91st William III, )- BE:, is so 'ery
indul*ent as to de)lare that, @This shall not hinder any +erson
from )arryin* his (ool home from the +la)e of shearin*, thou*h it
&e (ithin fi'e miles of the sea, +ro'ided that in ten days after
shearin*, and &efore he remo'e the (ool, he do under his hand
)ertify to the ne1t offi)er of the )ustoms, the true num&er of
flee)es, and (here it is housed/ and do not remo'e the same,
(ithout )ertifyin* to su)h offi)er, under his hand, his intention
so to do, three days &efore-@ .ond must &e *i'en that the (ool to
&e )arried )oast(ays is to &e landed at the +arti)ular +ort for
(hi)h it is entered out(ards/ and if any +art of it is landed
(ithout the +resen)e of an offi)er, not only the forfeiture of
the (ool is in)urred as in other *oods, &ut the usual additional
+enalty of three shillin*s for e'ery +ound (ei*ht is li0e(ise
in)urred-
Our (oollen manufa)tures, in order to 2ustify their demand
of su)h e1traordinary restri)tions and re*ulations, )onfidently
asserted that $n*lish (ool (as of a +e)uliar quality, su+erior to
that of any other )ountry/ that the (ool of other )ountries )ould
not, (ithout some mi1ture of it, &e (rou*ht u+ into any tolera&le
manufa)ture/ that fine )loth )ould not &e made (ithout it/ that
$n*land, therefore, if the e1+ortation of it )ould &e totally
+re'ented, )ould mono+oli;e to herself almost the (hole (oollen
trade of the (orld/ and thus, ha'in* no ri'als, )ould sell at
(hat +ri)e she +leased, and in a short time a)quire the most
in)redi&le de*ree of (ealth &y the most ad'anta*eous &alan)e of
trade- This do)trine, li0e most other do)trines (hi)h are
)onfidently asserted &y any )onsidera&le num&er of +eo+le, (as,
and still )ontinues to &e, most im+li)itly &elie'ed &y a mu)h
*reater num&er8 &y almost all those (ho are either una)quainted
(ith the (oollen trade, or (ho ha'e not made +arti)ular
inquiries- It is, ho(e'er, so +erfe)tly false that $n*lish (ool
is in any res+e)t ne)essary for the ma0in* of fine )loth that it
is alto*ether unfit for it- "ine )loth is made alto*ether of
S+anish (ool- $n*lish (ool )annot &e e'en so mi1ed (ith S+anish
(ool as to enter into the )om+osition (ithout s+oilin* and
de*radin*, in some de*ree, the fa&ri) of the )loth-
It has &een sho(n in the fore*oin* +art of this (or0 that
the effe)t of these re*ulations has &een to de+ress the +ri)e of
$n*lish (ool, not only &elo( (hat it naturally (ould &e in the
+resent times, &ut 'ery mu)h &elo( (hat it a)tually (as in the
time of $d(ard III- The +ri)e of S)ots (ool, (hen in )onsequen)e
of the union it &e)ame su&2e)t to the same re*ulations, is said
to ha'e fallen a&out one half- It is o&ser'ed &y the 'ery
a))urate and intelli*ent author of the 4emoirs of Wool, the
Re'erend 4r- Aohn Smith, that the +ri)e of the &est $n*lish (ool
in $n*land is *enerally &elo( (hat (ool of a 'ery inferior
quality )ommonly sells for in the mar0et of Amsterdam- To de+ress
the +ri)e of this )ommodity &elo( (hat may &e )alled its natural
and +ro+er +ri)e (as the a'o(ed +ur+ose of those re*ulations/ and
there seems to &e no dou&t of their ha'in* +rodu)ed the effe)t
that (as e1+e)ted from them-
This redu)tion of +ri)e, it may +erha+s &e thou*ht, &y
dis)oura*in* the *ro(in* of (ool, must ha'e redu)ed 'ery mu)h the
annual +rodu)e of that )ommodity, thou*h not &elo( (hat it
formerly (as, yet &elo( (hat, in the +resent state of thin*s, it
+ro&a&ly (ould ha'e &een, had it, in )onsequen)e of an o+en and
free mar0et, &een allo(ed to rise to the natural and +ro+er
+ri)e- I am, ho(e'er, dis+osed to &elie'e that the quantity of
the annual +rodu)e )annot ha'e &een mu)h, thou*h it may +erha+s
ha'e &een a little, affe)ted &y these re*ulations- The *ro(in* of
(ool is not the )hief +ur+ose for (hi)h the shee+ farmer em+loys
his industry and sto)0- #e e1+e)ts his +rofit not so mu)h from
the +ri)e of the flee)e as from that of the )ar)ass/ and the
a'era*e or ordinary +ri)e of the latter must e'en, in many )ases,
ma0e u+ to him (hate'er defi)ien)y there may &e in the a'era*e or
ordinary +ri)e of the former- It has &een o&ser'ed in the
fore*oin* +art of this (or0 that, @Whate'er re*ulations tend to
sin0 the +ri)e, either of (ool or of ra( hides, &elo( (hat it
naturally (ould &e, must, in an im+ro'ed and )ulti'ated )ountry,
ha'e some tenden)y to raise the +ri)e of &ut)her=s meat- The
+ri)e &oth of the *reat and small )attle (hi)h are fed on
im+ro'ed and )ulti'ated land must &e suffi)ient to +ay the rent
(hi)h the landlord, and the +rofit (hi)h the farmer has reason to
e1+e)t from im+ro'ed and )ulti'ated land- If it is not, they (ill
soon )ease to feed them- Whate'er +art of this +ri)e, therefore,
is not +aid &y the (ool and the hide must &e +aid &y the )ar)ass-
The less there is +aid for the one, the more must &e +aid for the
other- In (hat manner this +ri)e is to &e di'ided u+on the
different +arts of the &east is indifferent to the landlords and
farmers, +ro'ided it is all +aid to them- In an im+ro'ed and
)ulti'ated )ountry, therefore, their interest as landlords and
farmers )annot &e mu)h affe)ted &y su)h re*ulations, thou*h their
interest as )onsumers may &y the rise in the +ri)e of
+ro'isions-@ A))ordin* to this reasonin*, therefore, this
de*radation in the +ri)e of (ool is not li0ely, in an im+ro'ed
and )ulti'ated )ountry, to o))asion any diminution in the annual
+rodu)e of that )ommodity, e1)e+t so far as, &y raisin* the +ri)e
of mutton, it may some(hat diminish the demand for, and
)onsequently the +rodu)tion of, that +arti)ular s+e)ies of
&ut)her=s meat- Its effe)t, ho(e'er, e'en in this (ay, it is
+ro&a&le, is not 'ery )onsidera&le-
.ut thou*h its effe)t u+on the quantity of the annual
+rodu)e may not ha'e &een 'ery )onsidera&le, its effe)t u+on the
quality, it may +erha+s &e thou*ht, must ne)essarily ha'e &een
'ery *reat- The de*radation in the quality of $n*lish (ool, if
not &elo( (hat it (as in former times, yet &elo( (hat it
naturally (ould ha'e &een in the +resent state of im+ro'ement and
)ulti'ation, must ha'e &een, it may +erha+s &e su++osed, 'ery
nearly in +ro+ortion to the de*radation of +ri)e- As the quality
de+ends u+on the &reed, u+on the +asture, and u+on the mana*ement
and )leanliness of the shee+, durin* the (hole +ro*ress of the
*ro(th of the flee)e, the attention to these )ir)umstan)es, it
may naturally enou*h &e ima*ined, )an ne'er &e *reater than in
+ro+ortion to the re)om+ense (hi)h the +ri)e of the flee)e is
li0ely to ma0e for the la&our and e1+ense (hi)h that attention
requires- It ha++ens, ho(e'er, that the *oodness of the flee)e
de+ends, in a *reat measure, u+on the health, *ro(th, and &ul0 of
the animal/ the same attention (hi)h is ne)essary for the
im+ro'ement of the )ar)ase is, in some res+e)ts, suffi)ient for
that of the flee)e- Not(ithstandin* the de*radation of +ri)e,
$n*lish (ool is said to ha'e &een im+ro'ed )onsidera&ly durin*
the )ourse e'en of the +resent )entury- The im+ro'ement mi*ht
+erha+s ha'e &een *reater if the +ri)e had &een &etter/ &ut the
lo(ness of +ri)e, thou*h it may ha'e o&stru)ted, yet )ertainly it
has not alto*ether +re'ented that im+ro'ement-
The 'iolen)e of these re*ulations, therefore, seems to ha'e
affe)ted neither the quantity nor the quality of the annual
+rodu)e of (ool so mu)h as it mi*ht ha'e &een e1+e)ted to do
9thou*h I thin0 it +ro&a&le that it may ha'e affe)ted the latter
a *ood deal more than the former:/ and the interest of the
*ro(ers of (ool, thou*h it must ha'e &een hurt in some de*ree,
seems, u+on the (hole, to ha'e &een mu)h less hurt than )ould
(ell ha'e &een ima*ined-
These )onsiderations, ho(e'er, (ill not 2ustify the a&solute
+rohi&ition of the e1+ortation of (ool- .ut they (ill fully
2ustify the im+osition of a )onsidera&le ta1 u+on that
e1+ortation-
To hurt in any de*ree the interest of any one order of
)iti;ens, for no other +ur+ose &ut to +romote that of some other,
is e'idently )ontrary to that 2usti)e and equality of treatment
(hi)h the so'erei*n o(es to all the different orders of his
su&2e)ts- .ut the +rohi&ition )ertainly hurts, in some de*ree,
the interest of the *ro(ers of (ool, for no other +ur+ose &ut to
+romote that of the manufa)turers-
$'ery different order of )iti;ens is &ound to )ontri&ute to
the su++ort of the so'erei*n or )ommon(ealth- A ta1 of fi'e, or
e'en of ten shillin*s u+on the e1+ortation of e'ery ton of (ool
(ould +rodu)e a 'ery )onsidera&le re'enue to the so'erei*n- It
(ould hurt the interest of the *ro(ers some(hat less than the
+rohi&ition, &e)ause it (ould not +ro&a&ly lo(er the +ri)e of
(ool quite so mu)h- It (ould afford a suffi)ient ad'anta*e to the
manufa)turer, &e)ause, thou*h he mi*ht not &uy his (ool
alto*ether so )hea+ as under the +rohi&ition, he (ould still &uy
it, at least, fi'e or ten shillin*s )hea+er than any forei*n
manufa)turer )ould &uy it, &esides sa'in* the frei*ht and
insuran)e, (hi)h the other (ould &e o&li*ed to +ay- It is s)ar)e
+ossi&le to de'ise a ta1 (hi)h )ould +rodu)e any )onsidera&le
re'enue to the so'erei*n, and at the same time o))asion so little
in)on'enien)y to any&ody-
The +rohi&ition, not(ithstandin* all the +enalties (hi)h
*uard it, does not +re'ent the e1+ortation of (ool- It is
e1+orted, it is (ell 0no(n, in *reat quantities- The *reat
differen)e &et(een the +ri)e in the home and that in the forei*n
mar0et +resents su)h a tem+tation to smu**lin* that all the
ri*our of the la( )annot +re'ent it- This ille*al e1+ortation is
ad'anta*eous to no&ody &ut the smu**ler- A le*al e1+ortation
su&2e)t to a ta1, &y affordin* a re'enue to the so'erei*n, and
there&y sa'in* the im+osition of some other, +erha+s, more
&urdensome and in)on'enient ta1es mi*ht +ro'e ad'anta*eous to all
the different su&2e)ts of the state-
The e1+ortation of fuller=s earth or fuller=s )lay, su++osed
to &e ne)essary for +re+arin* and )leansin* the (oolen
manufa)tures, has &een su&2e)ted to nearly the same +enalties as
the e1+ortation of (ool- $'en to&a))o8+i+e )lay, thou*h
a)0no(led*ed to &e different from fuller=s )lay, yet, on a))ount
of their resem&lan)e, and &e)ause fuller=s )lay mi*ht sometimes
&e e1+orted as to&a))o8+i+e )lay, has &een laid under the same
+rohi&itions and +enalties-
.y the 1Bth and 1Gth of Charles II, )- 7, the e1+ortation,
not only of ra( hides, &ut of tanned leather, e1)e+t in the sha+e
of &oots, shoes, or sli++ers, (as +rohi&ited/ and the la( *a'e a
mono+oly to our &ootma0ers and shoema0ers, not only a*ainst our
*ra;iers, &ut a*ainst our tanners- .y su&sequent statutes our
tanners ha'e *ot themsel'es e1em+ted from this mono+oly u+on
+ayin* a small ta1 of only one shillin* on the hundred8(ei*ht of
tanned leather, (ei*hin* one hundred and t(el'e +ounds- They ha'e
o&tained li0e(ise the dra(&a)0 of t(o8thirds of the e1)ise duties
im+osed u+on their )ommodity e'en (hen e1+orted (ithout further
manufa)ture- All manufa)tures of leather may &e e1+orted duty
free/ and the e1+orter is &esides entitled to the dra(&a)0 of the
(hole duties of e1)ise- Our *ra;iers still )ontinue su&2e)t to
the old mono+oly- 6ra;iers se+arated from one another, and
dis+ersed throu*h all the different )orners of the )ountry,
)annot, (ithout *reat diffi)ulty, )om&ine to*ether for the
+ur+ose either of im+osin* mono+olies u+on their fello( )iti;ens,
or of e1em+tin* themsel'es from su)h as may ha'e &een im+osed
u+on them &y other +eo+le- 4anufa)turers of all 0inds, )olle)ted
to*ether in numerous &odies in all *reat )ities, easily )an- $'en
the horns of )attle are +rohi&ited to &e e1+orted/ and the t(o
insi*nifi)ant trades of the horner and )om&ma0er en2oy, in this
res+e)t, a mono+oly a*ainst the *ra;iers-
Restraints, either &y +rohi&itions or &y ta1es, u+on the
e1+ortation of *oods (hi)h are +artially, &ut not )om+letely
manufa)tured, are not +e)uliar to the manufa)ture of leather- As
lon* as anythin* remains to &e done, in order to fit any
)ommodity for immediate use and )onsum+tion, our manufa)turers
thin0 that they themsel'es ou*ht to ha'e the doin* of it- Woolen
yarn and (orsted are +rohi&ited to &e e1+orted under the same
+enalties as (ool- $'en (hite )loths are su&2e)t to a duty u+on
e1+ortation, and our dyers ha'e so far o&tained a mono+oly
a*ainst our )lothiers- Our )lothiers (ould +ro&a&ly ha'e &een
a&le to defend themsel'es a*ainst it, &ut it ha++ens that the
*reater +art of our +rin)i+al )lothiers are themsel'es li0e(ise
dyers- Wat)h8)ases, )lo)0)ases, and dial8+lates for )lo)0s and
(at)hes ha'e &een +rohi&ited to &e e1+orted- Our )lo)08ma0ers and
(at)h8ma0ers are, it seems, un(illin* that the +ri)e of this sort
of (or0manshi+ should &e raised u+on them &y the )om+etition of
forei*ners-
.y some old statutes of $d(ard 4, #enry 5III, and $d(ard 5I,
the e1+ortation of all metals (as +rohi&ited- !ead and tin (ere
alone e1)e+ted +ro&a&ly on a))ount of the *reat a&undan)e of
those metals, in the e1+ortation of (hi)h a )onsidera&le +art of
the trade of the 0in*dom in those days )onsisted- "or the
en)oura*ement of the minin* trade, the Hth of William and 4ary,
)- 17, e1em+ted from the +rohi&ition iron, )o++er, and mundi)
metal made from .ritish ore- The e1+ortation of all sorts of
)o++er &ars, forei*n as (ell as .ritish, (as after(ards +ermitted
&y the Fth and 1Cth of William III, )- E6- The e1+ortation of
unmanufa)tured &rass, of (hat is )alled *un8metal, &ell8metal,
and shroff8metal, still )ontinues to &e +rohi&ited- .rass
manufa)tures of all sorts may &e e1+orted duty free-
The e1+ortation of the materials of manufa)ture, (here it is
not alto*ether +rohi&ited, is in many )ases su&2e)ted to
)onsidera&le duties-
.y the ?th 6eor*e I, )- 1H, the e1+ortation of all *oods,
the +rodu)e or manufa)ture of 6reat .ritain, u+on (hi)h any
duties had &een im+osed &y former statutes, (as rendered duty
free- The follo(in* *oods, ho(e'er, (ere e1)e+ted3 alum, lead,
lead ore, tin, tanned leather, )o++eras, )oals, (ool )ards, (hite
(oolen )loths, la+is )alaminaris, s0ins of all sorts, *lue, )oney
hair or (ool, hares= (ool, hair of all sorts, horses, and
lithar*e of lead- If you e1+e)t horses, all these are either
materials of manufa)ture, or in)om+lete manufa)tures 9(hi)h may
&e )onsidered as materials for still further manufa)ture:, or
instruments of trade- This statute lea'es them su&2e)t to all the
old duties (hi)h had e'er &een im+osed u+on them, the old su&sidy
and one +er )ent out(ards-
.y the same statute a *reat num&er of forei*n dru*s for
dyers= use are e1em+ted from all duties u+on im+ortation- $a)h of
them, ho(e'er, is after(ards su&2e)ted to a )ertain duty, not
indeed a 'ery hea'y one, u+on e1+ortation- Our dyers, it seems,
(hile they thou*ht it for their interest to en)oura*e the
im+ortation of those dru*s, &y an e1em+tion from all duties,
thou*ht it li0e(ise for their interest to thro( some small
dis)oura*ement u+on their e1+ortation- The a'idity, ho(e'er,
(hi)h su**ested this nota&le +ie)e of mer)antile in*enuity, most
+ro&a&ly disa++ointed itself of its o&2e)t- It ne)essarily tau*ht
the im+orters to &e more )areful than they mi*ht other(ise ha'e
&een that their im+ortation should not e1)eed (hat (as ne)essary
for the su++ly of the home mar0et- The home mar0et (as at all
times li0ely to &e more s)antily su++lied/ the )ommodities (ere
at all times li0ely to &e some(hat dearer there than they (ould
ha'e &een had the e1+ortation &een rendered as free as the
im+ortation-
.y the a&o'e8mentioned statute, *um sene*a, or *um ara&i),
&ein* amon* the enumerated dyein* dru*s, mi*ht &e im+orted duty
free- They (ere su&2e)ted, indeed, to a small +ounda*e duty,
amountin* only to three+en)e in the hundred(ei*ht u+on their
re8e1+ortation- "ran)e en2oyed, at that time, an e1)lusi'e trade
to the )ountry most +rodu)ti'e of those dru*s, that (hi)h lies in
the nei*h&ourhood of the Sene*al/ and the .ritish mar0et )ould
not easily &e su++lied &y the immediate im+ortation of them from
the +la)e of *ro(th- .y the EHth 6eor*e II, therefore, *um sene*a
(as allo(ed to &e im+orted 9)ontrary to the *eneral dis+ositions
of the A)t of Na'i*ation: from any +art of $uro+e- As the la(,
ho(e'er, did not mean to en)oura*e this s+e)ies of trade, so
)ontrary to the *eneral +rin)i+les of the mer)antile +oli)y of
$n*land, it im+osed a duty of ten shillin*s the hundred(ei*ht
u+on su)h im+ortation, and no +art of this duty (as to &e
after(ards dra(n &a)0 u+on its e1+ortation- The su))essful (ar
(hi)h &e*an in 17HH *a'e 6reat .ritain the same e1)lusi'e trade
to those )ountries (hi)h "ran)e had en2oyed &efore- Our
manufa)turers, as soon as the +ea)e (as made, endea'oured to
a'ail themsel'es of this ad'anta*e, and to esta&lish a mono+oly
in their o(n fa'our &oth a*ainst the *ro(ers and a*ainst the
im+orters of this )ommodity- .y the Hth 6eor*e III, therefore, )-
B7, the e1+ortation of *um sene*a from his 4a2esty=s dominions in
Afri)a (as )onfined to 6reat .ritain, and (as su&2e)ted to all
the same restri)tions, re*ulations, forfeitures, and +enalties as
that of the enumerated )ommodities of the .ritish )olonies in
Ameri)a and the West Indies- Its im+ortation, indeed, (as
su&2e)ted to a small duty of si1+en)e the hundred(ei*ht, &ut its
re8e1+ortation (as su&2e)ted to the enormous duty of one +ound
ten shillin*s the hundred(ei*ht- It (as the intention of our
manufa)turers that the (hole +rodu)e of those )ountries should &e
im+orted into 6reat .ritain, and, in order that they themsel'es
mi*ht &e ena&led to &uy it at their o(n +ri)e, that no +art of it
should &e e1+orted a*ain &ut at su)h an e1+ense as (ould
suffi)iently dis)oura*e that e1+ortation- Their a'idity, ho(e'er,
u+on this, as (ell as u+on many other o))asions, disa++ointed
itself of its o&2e)t- This enormous duty +resented su)h a
tem+tation to smu**lin* that *reat quantities of this )ommodity
(ere )landestinely e1+orted, +ro&a&ly to all the manufa)turin*
)ountries of $uro+e, +ut +arti)ularly to #olland, not only from
6reat .ritain &ut from Afri)a- U+on this a))ount, &y the 1Gth
6eor*e III, )- 1C, this duty u+on e1+ortation (as redu)ed to fi'e
shillin*s the hundred(ei*ht-
In the &oo0 of rates, a))ordin* to (hi)h the Old Su&sidy (as
le'ied, &ea'er s0ins (ere estimated at si1 shillin*s and
ei*ht+en)e a +ie)e, and the different su&sidies and im+osts,
(hi)h &efore the year 17EE had &een laid u+on their im+ortation,
amounted to one8fifth +art of the rate, or to si1teen+en)e u+on
ea)h s0in/ all of (hi)h, e1)e+t half the Old Su&sidy, amountin*
only to t(o+en)e, (as dra(n &a)0 u+on e1+ortation- This duty u+on
the im+ortation of so im+ortant a material of manufa)ture had
&een thou*ht too hi*h, and in the year 17EE the rate (as redu)ed
to t(o shillin*s and si1+en)e, (hi)h redu)ed the duty u+on
im+ortation to si1+en)e, and of this only one half (as to &e
dra(n &a)0 u+on e1+ortation- The same su))essful (ar +ut the
)ountry most +rodu)ti'e of &ea'er under the dominion of 6reat
.ritain, and &ea'er s0ins &ein* amon* the enumerated )ommodities,
their e1+ortation from Ameri)a (as )onsequently )onfined to the
mar0et of 6reat .ritain- Our manufa)turers soon &ethou*ht
themsel'es of the ad'anta*e (hi)h they mi*ht ma0e of this
)ir)umstan)e, and in the year 176G the duty u+on the im+ortation
of &ea'er8s0in (as redu)ed to one +enny, &ut the duty u+on
e1+ortation (as raised to se'en+en)e ea)h s0in, (ithout any
dra(&a)0 of the duty u+on im+ortation- .y the same la(, a duty of
ei*hteen+en)e the +ound (as im+osed u+on the e1+ortation of
&ea'er(ool or (om&s, (ithout ma0in* any alteration in the duty
u+on the im+ortation of that )ommodity, (hi)h, (hen im+orted &y
.ritain and in .ritish shi++in*, amounted at that time to &et(een
four+en)e and fi'e+en)e the +ie)e-
Coals may &e )onsidered &oth as a material of manufa)ture
and as an instrument of trade- #ea'y duties, a))ordin*ly, ha'e
&een im+osed u+on their e1+ortation, amountin* at +resent 917?B:
to more than fi'e shillin*s the ton, or to more than fifteen
shillin*s the )haldron, Ne()astle measures, (hi)h is in most
)ases more than the ori*inal 'alue of the )ommodity at the )oal
+it, or e'en at the shi++in* +ort for e1+ortation-
The e1+ortation, ho(e'er, of the instruments of trade,
+ro+erly so )alled, is )ommonly restrained, not &y hi*h duties,
&ut &y a&solute +rohi&itions- Thus &y the 7th and ?th of William
III, )- EC, se)t- ?, the e1+ortation of frames or en*ines for
0nittin* *lo'es or sto)0in*s is +rohi&ited under the +enalty, not
only of the forfeiture of su)h frames or en*ines so e1+orted, or
attem+ted to &e e1+orted, &ut of forty +ounds, one half to the
0in*, the other to the +erson (ho shall inform or sue for the
same- In the same manner, &y the 1Gth 6eor*e III, )- 71, the
e1+ortation to forei*n +arts of any utensils made use of in the
)otton, linen, (oollen, and sil0 manufa)tures is +rohi&ited under
the +enalty, not only of the forfeiture of su)h utensils, &ut of
t(o hundred +ounds, to &e +aid &y the +erson (ho shall offend in
this manner, and li0e(ise of t(o hundred +ounds to &e +aid &y the
master of the shi+ (ho shall 0no(in*ly suffer su)h utensils to &e
loaded on &oard his shi+-
When su)h hea'y +enalties (ere im+osed u+on the e1+ortation
of the dead instruments of trade, it )ould not (ell &e e1+e)ted
that the li'in* instrument, the artifi)er, should &e allo(ed to
*o free- A))ordin*ly, &y the Hth 6eor*e I, )- E7, the +erson (ho
shall &e )on'i)ted of enti)in* any artifi)er of, or in any of the
manufa)tures of 6reat .ritain, to *o into any forei*n +arts in
order to +ra)tise or tea)h his trade, is lia&le for the first
offen)e to &e fined in any sum not e1)eedin* one hundred +ounds,
and to three months= im+risonment, and until the fine shall &e
+aid/ and for the se)ond offen)e, to &e fined in any sum at the
dis)retion of the )ourt, and to im+risonment for t(el'e months,
and until the fine shall &e +aid- .y the EBrd 6eor*e II, )- 1B,
this +enalty is in)reased for the first offen)e to fi'e hundred
+ounds for e'ery artifi)er so enti)ed, and to t(el'e months=
im+risonment, and until the fine shall &e +aid/ and for the
se)ond offen)e, to one thousand +ounds, and to t(o years=
im+risonment, and until the fine shall &e +aid-
.y the former of those t(o statutes, u+on +roof that any
+erson has &een enti)in* any artifi)er, or that any artifi)er has
+romised or )ontra)ted to *o into forei*n +arts for the +ur+oses
aforesaid, su)h artifi)er may &e o&li*ed to *i'e se)urity at the
dis)retion of the )ourt that he shall not *o &eyond the seas, and
may &e )ommitted to +rison until he *i'e su)h se)urity-
If any artifi)er has *one &eyond the seas, and is e1er)isin*
or tea)hin* his trade in any forei*n )ountry, u+on (arnin* &ein*
*i'en to him &y any of his 4a2esty=s ministers or )onsuls a&road,
or &y one of his 4a2esty=s Se)retaries of State for the time
&ein*, if he does not, (ithin si1 months after su)h (arnin*,
return into this realm, and from then)eforth a&ide and inha&it
)ontinually (ithin the same, he is from then)eforth de)lared
in)a+a&le of ta0in* any le*a)y de'ised to him (ithin this
0in*dom, or of &ein* e1e)utor or administrator to any +erson, or
of ta0in* any lands (ithin this 0in*dom &y des)ent, de'i)e, or
+ur)hase- #e li0e(ise forfeits to the 0in* all his lands, *oods,
and )hattels, is de)lared an alien in e'ery res+e)t, and is +ut
out of the 0in*=s +rote)tion-
It is unne)essary, I ima*ine, to o&ser'e ho( )ontrary su)h
re*ulations are to the &oasted li&erty of the su&2e)t, of (hi)h
(e affe)t to &e so 'ery 2ealous/ &ut (hi)h, in this )ase, is so
+lainly sa)rifi)ed to the futile interests of our mer)hants and
manufa)turers-
The lauda&le moti'e of all these re*ulations is to e1tend
our o(n manufa)tures, not &y their o(n im+ro'ement, &ut &y the
de+ression of those of all our nei*h&ours, and &y +uttin* an end,
as mu)h as +ossi&le, to the trou&lesome )om+etition of su)h
odious and disa*reea&le ri'als- Our master manufa)turers thin0 it
reasona&le that they themsel'es should ha'e the mono+oly of the
in*enuity of all their )ountrymen- Thou*h &y restrainin*, in some
trades, the num&er of a++renti)es (hi)h )an &e em+loyed at one
time, and &y im+osin* the ne)essity of a lon* a++renti)eshi+ in
all trades, they endea'our, all of them, to )onfine the 0no(led*e
of their res+e)ti'e em+loyments to as small a num&er as +ossi&le/
they are un(illin*, ho(e'er, that any +art of this small num&er
should *o a&road to instru)t forei*ners-
Consum+tion is the sole end and +ur+ose of all +rodu)tion/
and the interest of the +rodu)er ou*ht to &e attended to only so
far as it may &e ne)essary for +romotin* that of the )onsumer-
The ma1im is so +erfe)tly self e'ident that it (ould &e a&surd to
attem+t to +ro'e it- .ut in the mer)antile system the interest of
the )onsumer is almost )onstantly sa)rifi)ed to that of the
+rodu)er/ and it seems to )onsider +rodu)tion, and not
)onsum+tion, as the ultimate end and o&2e)t of all industry and
)ommer)e-
In the restraints u+on the im+ortation of all forei*n
)ommodities (hi)h )an )ome into )om+etition (ith those of our o(n
*ro(th or manufa)ture, the interest of the home )onsumer is
e'idently sa)rifi)ed to that of the +rodu)er- It is alto*ether
for the &enefit of the latter that the former is o&li*ed to +ay
that enhan)ement of +ri)e (hi)h this mono+oly almost al(ays
o))asions-
It is alto*ether for the &enefit of the +rodu)er that
&ounties are *ranted u+on the e1+ortation of some of his
+rodu)tions- The home )onsumer is o&li*ed to +ay, first, the ta1
(hi)h is ne)essary for +ayin* the &ounty, and se)ondly, the still
*reater ta1 (hi)h ne)essarily arises from the enhan)ement of the
+ri)e of the )ommodity in the home mar0et-
.y the famous treaty of )ommer)e (ith ortu*al, the )onsumer
is +re'ented &y hi*h duties from +ur)hasin* of a nei*h&ourin*
)ountry a )ommodity (hi)h our o(n )limate does not +rodu)e, &ut
is o&li*ed to +ur)hase it of a distant )ountry, thou*h it is
a)0no(led*ed that the )ommodity of the distant )ountry is of a
(orse quality than that of the near one- The home )onsumer is
o&li*ed to su&mit to this in)on'enien)y in order that the
+rodu)er may im+ort into the distant )ountry some of his
+rodu)tions u+on more ad'anta*eous terms than he (ould other(ise
ha'e &een allo(ed to do- The )onsumer, too, is o&li*ed to +ay
(hate'er enhan)ement in the +ri)e if those 'ery +rodu)tions this
for)ed e1+ortation may o))asion in the home mar0et-
.ut in the system of la(s (hi)h has &een esta&lished for the
mana*ement of our Ameri)an and West Indian )olonies, the interest
of the home )onsumer has &een sa)rifi)ed to that of the +rodu)er
(ith a more e1tra'a*ant +rofusion than in all our other
)ommer)ial re*ulations- A *reat em+ire has &een esta&lished for
the sole +ur+ose of raisin* u+ a nation of )ustomers (ho should
&e o&li*ed to &uy from the sho+s of our different +rodu)ers all
the *oods (ith (hi)h these )ould su++ly them- "or the sa0e of
that little enhan)ement of +ri)e (hi)h this mono+oly mi*ht afford
our +rodu)ers, the home )onsumers ha'e &een &urdened (ith the
(hole e1+ense of maintainin* and defendin* that em+ire- "or this
+ur+ose, and for this +ur+ose only, in the t(o last (ars, more
than t(o hundred millions ha'e &een s+ent, and a ne( de&t of more
than a hundred and se'enty millions has &een )ontra)ted o'er and
a&o'e all that had &een e1+ended for the same +ur+ose in former
(ars- The interest of this de&t alone is not only *reater than
the (hole e1traordinary +rofit (hi)h it e'er )ould &e +retended
(as made &y the mono+oly of the )olony trade, &ut than the (hole
'alue of that trade, or than the (hole 'alue of the *oods (hi)h
at an a'era*e ha'e &een annually e1+orted to the )olonies-
It )annot &e 'ery diffi)ult to determine (ho ha'e &een the
)ontri'ers of this (hole mer)antile system/ not the )onsumers, (e
may &elie'e, (hose interest has &een entirely ne*le)ted/ &ut the
+rodu)ers, (hose interest has &een so )arefully attended to/ and
amon* this latter )lass our mer)hants and manufa)turers ha'e &een
&y far the +rin)i+al ar)hite)ts- In the mer)antile re*ulations,
(hi)h ha'e &een ta0en noti)e of in this )ha+ter, the interest of
our manufa)turers has &een most +e)uliarly attended to/ and the
interest, not so mu)h of the )onsumers, as that of some other
sets of +rodu)ers, has &een sa)rifi)ed to it-
C#AT$R II
Of the A*ri)ultural Systems, or of those Systems of oliti)al
$)onomy (hi)h re+resent the rodu)e of !and as either the sole or
the +rin)i+al Sour)e of the Re'enue and Wealth e'ery Country
T#$ a*ri)ultural systems of +oliti)al e)onomy (ill not
require so lon* an e1+lanation as that (hi)h I ha'e thou*ht it
ne)essary to &esto( u+on the mer)antile or )ommer)ial system-
That system (hi)h re+resents the +rodu)e of land as the sole
sour)e of the re'enue and (ealth of e'ery )ountry has, so far as
I 0no(, ne'er &een ado+ted &y any nation, and it at +resent
e1ists only in the s+e)ulations of a fe( men of *reat learnin*
and in*enuity in "ran)e- It (ould not, surely, &e (orth (hile to
e1amine at *reat len*th the errors of a system (hi)h ne'er has
done, and +ro&a&ly ne'er (ill do, any harm in any +art of the
(orld- I shall endea'our to e1+lain, ho(e'er, as distin)tly as I
)an, the *reat outlines of this 'ery in*enious system-
4r- Col&ert, the famous minister of !ouis II5, (as a man of
+ro&ity, of *reat industry and 0no(led*e of detail, of *reat
e1+erien)e and a)uteness in the e1amination of +u&li) a))ounts,
and of a&ilities, in short, e'ery (ay fitted for introdu)in*
method and *ood order into the )olle)tion and e1+enditure of the
+u&li) re'enue- That minister had unfortunately em&ra)ed all the
+re2udi)es of the mer)antile system, in its nature and essen)e a
system of restraint and re*ulation, and su)h as )ould s)ar)e fail
to &e a*reea&le to a la&orious and +loddin* man of &usiness, (ho
had &een a))ustomed to re*ulate the different de+artments of
+u&li) offi)es, and to esta&lish the ne)essary )he)0s and
)ontrols for )onfinin* ea)h to its +ro+er s+here- The industry
and )ommer)e of a *reat )ountry he endea'oured to re*ulate u+on
the same model as the de+artments of a +u&li) offi)e/ and instead
of allo(in* e'ery man to +ursue his o(n interest in his o(n (ay,
u+on the li&eral +lan of equality, li&erty, and 2usti)e, he
&esto(ed u+on )ertain &ran)hes of industry e1traordinary
+ri'ile*es, (hile he laid others under as e1traordinary
restraints- #e (as not only dis+osed, li0e other $uro+ean
ministers, to en)oura*e more the industry of the to(ns than that
of the )ountry/ &ut, in order to su++ort the industry of the
to(ns, he (as (illin* e'en to de+ress and 0ee+ do(n that of the
)ountry- In order to render +ro'isions )hea+ to the inha&itants
of the to(ns, and there&y to en)oura*e manufa)tures and forei*n
)ommer)e, he +rohi&ited alto*ether the e1+ortation of )orn, and
thus e1)luded the inha&itants of the )ountry from e'ery forei*n
mar0et for &y far the most im+ortant +art of the +rodu)e of their
industry- This +rohi&ition, 2oined to the restraints im+osed &y
the an)ient +ro'in)ial la(s of "ran)e u+on the trans+ortation of
)orn from one +ro'in)e to another, and to the ar&itrary and
de*radin* ta1es (hi)h are le'ied u+on the )ulti'ators in almost
all the +ro'in)es, dis)oura*ed and 0e+t do(n the a*ri)ulture of
that )ountry 'ery mu)h &elo( the state to (hi)h it (ould
naturally ha'e risen in so 'ery fertile a soil and so 'ery ha++y
a )limate- This state of dis)oura*ement and de+ression (as felt
more or less in e'ery different +art of the )ountry, and many
different inquiries (ere set on foot )on)ernin* the )auses of it-
One of those )auses a++eared to &e the +referen)e *i'en, &y the
institutions of 4r- Col&ert, to the industry of the to(ns a&o'e
that of the )ountry-
If the rod &e &ent too mu)h one (ay, says the +ro'er&, in
order to ma0e it strai*ht you must &end it as mu)h the other- The
"ren)h +hiloso+hers, (ho ha'e +ro+osed the system (hi)h
re+resents a*ri)ulture as the sole sour)e of the re'enue and
(ealth of e'ery )ountry, seem to ha'e ado+ted this +ro'er&ial
ma1im/ and as in the +lan of 4r- Col&ert the industry of the
to(ns (as )ertainly o'er'alued in )om+arison (ith that of the
)ountry/ so in their system it seems to &e as )ertainly
under'alued-
The different orders of +eo+le (ho ha'e e'er &een su++osed
to )ontri&ute in any res+e)t to(ards the annual +rodu)e of the
land and la&our of the )ountry, they di'ide into three )lasses-
The first is the )lass of the +ro+rietors of land- The se)ond is
the )lass of the )ulti'ators, of farmers and )ountry la&ourers,
(hom they honour (ith the +e)uliar a++ellation of the +rodu)ti'e
)lass- The third is the )lass of artifi)ers, manufa)turers, and
mer)hants, (hom they endea'our to de*rade &y the humiliatin*
a++ellation of the &arren or un+rodu)ti'e )lass-
The )lass of +ro+rietors )ontri&utes to the annual +rodu)e
&y the e1+ense (hi)h they may o))asionally lay out u+on the
im+ro'ement of the land, u+on the &uildin*s, drains, en)losures,
and other ameliorations, (hi)h they may either ma0e or maintain
u+on it, and &y means of (hi)h the )ulti'ators are ena&led, (ith
the same )a+ital, to raise a *reater +rodu)e, and )onsequently to
+ay a *reater rent- This ad'an)ed rent may &e )onsidered as the
interest or +rofit due to the +ro+rietor u+on the e1+ense or
)a+ital (hi)h he thus em+loys in the im+ro'ement of his land-
Su)h e1+enses are in this system )alled *round e1+enses 9de+enses
fon)ieres-:
The )ulti'ators or farmers )ontri&ute to the annual +rodu)e
&y (hat are in this system )alled the ori*inal and annual
e1+enses 9de+enses +rimiti'es et de+enses annuelles: (hi)h they
lay out u+on the )ulti'ation of the land- The ori*inal e1+enses
)onsist in the instruments of hus&andry, in the sto)0 of )attle,
in the seed, and in the maintenan)e of the farmer=s family,
ser'ants, and )attle durin* at least a *reat +art of the first
year of his o))u+an)y, or till he )an re)ei'e some return from
the land- The annual e1+enses )onsist in the seed, in the (ear
and tear of the instruments of hus&andry, and in the annual
maintenan)e of the farmer=s ser'ants and )attle, and of his
family too, so far as any +art of them )an &e )onsidered as
ser'ants em+loyed in )ulti'ation- That +art of the +rodu)e of the
land (hi)h remains to him after +ayin* the rent ou*ht to &e
suffi)ient, first, to re+la)e to him (ithin a reasona&le time, at
least durin* the term of his o))u+an)y, the (hole of his ori*inal
e1+enses, to*ether (ith the ordinary +rofits of sto)0/ and,
se)ondly, to re+la)e to him annually the (hole of his annual
e1+enses, to*ether li0e(ise (ith the orderin* +rofits of sto)0-
Those t(o sorts of e1+enses are t(o )a+itals (hi)h the farmer
em+loys in )ulti'ation/ and unless they are re*ularly restored to
him, to*ether (ith a reasona&le +rofit, he )annot )arry on his
em+loyment u+on a le'el (ith other em+loyments/ &ut, from a
re*ard to his o(n interest, must desert it as soon as +ossi&le
and see0 some other- That +art of the +rodu)e of the land (hi)h
is thus ne)essary for ena&lin* the farmer to )ontinue his
&usiness ou*ht to &e )onsidered as a fund sa)red to )ulti'ation,
(hi)h, if the landlord 'iolates, he ne)essarily redu)es the
+rodu)e of his o(n land, and in a fe( years not only disa&les the
farmer from +ayin* this ra)0ed rent, &ut from +ayin* the
reasona&le rent (hi)h he mi*ht other(ise ha'e *ot for his land-
The rent (hi)h +ro+erly &elon*s to the landlord is no more than
the net +rodu)e (hi)h remains after +ayin* in the )om+letest
manner all the ne)essary e1+enses (hi)h must &e +re'iously laid
out in order to raise the *ross or the (hole +rodu)e- It is
&e)ause the la&our of the )ulti'ators, o'er and a&o'e +ayin*
)om+letely all those ne)essary e1+enses, affords a net +rodu)e of
this 0ind that this )lass of +eo+le are in this system +e)uliarly
distin*uished &y the honoura&le a++ellation of the +rodu)ti'e
)lass- Their ori*inal and annual e1+enses are for the same reason
)alled, in this system, +rodu)ti'e e1+enses, &e)ause, o'er and
a&o'e re+la)in* their o(n 'alue, they o))asion the annual
re+rodu)tion of this net +rodu)e-
The *round e1+enses, as they are )alled, or (hat the
landlord lays out u+on the im+ro'ement of his land, are in this
system, too, honoured (ith the a++ellation of +rodu)ti'e
e1+enses- Till the (hole of those e1+enses, to*ether (ith the
ordinary +rofits of sto)0, ha'e &een )om+letely re+aid to him &y
the ad'an)ed rent (hi)h he *ets from his land, that ad'an)ed rent
ou*ht to &e re*arded as sa)red and in'iola&le, &oth &y the )hur)h
and &y the 0in*/ ou*ht to &e su&2e)t neither to tithe nor to
ta1ation- If it is other(ise, &y dis)oura*in* the im+ro'ement of
land the )hur)h dis)oura*es the future in)rease of her o(n
tithes, and the 0in* the future in)rease of his o(n ta1es- As in
a (ell8ordered state of thin*s, therefore, those *round e1+enses,
o'er and a&o'e re+rodu)in* in the )om+letest manner their o(n
'alue, o))asion li0e(ise after a )ertain time a re+rodu)tion of a
net +rodu)e, they are in this system )onsidered as +rodu)ti'e
e1+enses-
The *round e1+enses of the landlord, ho(e'er, to*ether (ith
the ori*inal and the annual e1+enses of the farmer, are the only
three sorts of e1+enses (hi)h in this system are )onsidered as
+rodu)ti'e- All other e1+enses and all other orders of +eo+le,
e'en those (ho in the )ommon a++rehensions of men are re*arded as
the most +rodu)ti'e, are in this a))ount of thin*s re+resented as
alto*ether &arren and un+rodu)ti'e-
Artifi)ers and manufa)turers in +arti)ular, (hose industry,
in the )ommon a++rehensions of men, in)reases so mu)h the 'alue
of the rude +rodu)e of land, are in this system re+resented as a
)lass of +eo+le alto*ether &arren and un+rodu)ti'e- Their la&our,
it is said, re+la)es only the sto)0 (hi)h em+loys them, to*ether
(ith its ordinary +rofits- That sto)0 )onsists in the materials,
tools, and (a*es ad'an)ed to them &y their em+loyer/ and is the
fund destined for their em+loyment and maintenan)e- Its +rofits
are the fund destined for the maintenan)e of their em+loyer-
Their em+loyer, as he ad'an)es to them the sto)0 of materials,
tools, and (a*es ne)essary for their em+loyment, so he ad'an)es
to himself (hat is ne)essary for his o(n maintenan)e, and this
maintenan)e he *enerally +ro+ortions to the +rofit (hi)h he
e1+e)ts to ma0e &y the +ri)e of their (or0- Unless its +ri)e
re+ays to him the maintenan)e (hi)h he ad'an)es to himself, as
(ell as the materials, tools, and (a*es (hi)h he ad'an)es to his
(or0men, it e'idently does not re+ay to him the (hole e1+ense
(hi)h he lays out u+on it- The +rofits of manufa)turin* sto)0
therefore are not, li0e the rent of land, a net +rodu)e (hi)h
remains after )om+letely re+ayin* the (hole e1+ense (hi)h must &e
laid out in order to o&tain them- The sto)0 of the farmer yields
him a +rofit as (ell as that of the master manufa)turer/ and it
yields a rent li0e(ise to another +erson, (hi)h that of the
master manufa)turer does not- The e1+ense, therefore, laid out in
em+loyin* and maintainin* artifi)ers and manufa)turers does no
more than )ontinue, if one may say so, the e1isten)e of its o(n
'alue, and does not +rodu)e any ne( 'alue- It is therefore
alto*ether a &arren and un+rodu)ti'e e1+ense- The e1+ense, on the
)ontrary, laid out in em+loyin* farmers and )ountry la&ourers,
o'er and a&o'e )ontinuin* the e1isten)e of its o(n 'alue,
+rodu)es a ne( 'alue, the rent of the landlord- It is therefore a
+rodu)ti'e e1+ense-
4er)antile sto)0 is equally &arren and un+rodu)ti'e (ith
manufa)turin* sto)0- It only )ontinues the e1isten)e of its o(n
'alue, (ithout +rodu)in* any ne( 'alue- Its +rofits are only the
re+ayment of the maintenan)e (hi)h its em+loyer ad'an)es to
himself durin* the time that he em+loys it, or till he re)ei'es
the returns of it- They are only the re+ayment of a +art of the
e1+ense (hi)h must &e laid out in em+loyin* it-
The la&our of artifi)ers and manufa)turers ne'er adds
anythin* to the 'alue of the (hole annual amount of the rude
+rodu)e of the land- It adds, indeed, *reatly to the 'alue of
some +arti)ular +arts of it- .ut the )onsum+tion (hi)h in the
meantime it o))asions of other +arts is +re)isely equal to the
'alue (hi)h it adds to those +arts/ so that the 'alue of the
(hole amount is not, at any one moment of time, in the least
au*mented &y it- The +erson (ho (or0s the la)e of a +air of fine
ruffles, for e1am+le, (ill sometimes raise the 'alue of +erha+s a
+enny(orth of fla1 to thirty +ounds sterlin*- .ut thou*h at first
si*ht he a++ears there&y to multi+ly the 'alue of a +art of the
rude +rodu)e a&out se'en thousand and t(o hundred times, he in
reality adds nothin* to the 'alue of the (hole annual amount of
the rude +rodu)e- The (or0in* of that la)e )osts him +erha+s t(o
years= la&our- The thirty +ounds (hi)h he *ets for it (hen it is
finished is no more than the re+ayment of the su&sisten)e (hi)h
he ad'an)es to himself durin* the t(o years that he is em+loyed
a&out it- The 'alue (hi)h, &y e'ery day=s, month=s, or year=s
la&our, he adds to the fla1 does no more than re+la)e the 'alue
of his o(n )onsum+tion durin* that day, month, or year- At no
moment of time, therefore, does he add anythin* to the 'alue of
the (hole annual amount of the rude +rodu)e of the land3 the
+ortion of that +rodu)e (hi)h he is )ontinually )onsumin* &ein*
al(ays equal to the 'alue (hi)h he is )ontinually +rodu)in*- The
e1treme +o'erty of the *reater +art of the +ersons em+loyed in
this e1+ensi'e thou*h triflin* manufa)ture may satisfy us that
the +ri)e of their (or0 does not in ordinary )ases e1)eed the
'alue of their su&sisten)e- It is other(ise (ith the (or0 of
farmers and )ountry la&ourers- The rent of the landlord is a
'alue (hi)h, in ordinary )ases, it is )ontinually +rodu)in*, o'er
and a&o'e re+la)in*, in the most )om+lete manner, the (hole
)onsum+tion, the (hole e1+ense laid out u+on the em+loyment and
maintenan)e &oth of the (or0men and of their em+loyer-
Artifi)ers, manufa)turers, and mer)hants )an au*ment the
re'enue and (ealth of their so)iety &y +arsimony only/ or, as it
in this system, &y +ri'ation, that is, &y de+ri'in* themsel'es a
+art of the funds destined for their o(n su&sisten)e- They
annually re+rodu)e nothin* &ut those funds- Unless, therefore,
they annually sa'e some +art of them, unless they annually
de+ri'e themsel'es of the en2oyment of some +art of them, the
re'enue and (ealth of their so)iety )an ne'er &e in the smallest
de*ree au*mented &y means of their industry- "armers and )ountry
la&ourers, on the )ontrary, may en2oy )om+letely the (hole funds
destined for their o(n su&sisten)e, and yet au*ment at the same
time the re'enue and (ealth of their so)iety- O'er and a&o'e (hat
is destined for their o(n su&sisten)e, their industry annually
affords a net +rodu)e, of (hi)h the au*mentation ne)essarily
au*ments the re'enue and (ealth of their so)iety- Nations
therefore (hi)h, li0e "ran)e or $n*land, )onsist in a *reat
measure of +ro+rietors and )ulti'ators )an &e enri)hed &y
industry and en2oyment- Nations, on the )ontrary, (hi)h, li0e
#olland and #am&ur*, are )om+osed )hiefly of mer)hants,
artifi)ers, and manufa)turers )an *ro( ri)h only throu*h
+arsimony and +ri'ation- As the interest of nations so
differently )ir)umstan)ed is 'ery different, so is li0e(ise the
)ommon )hara)ter of the +eo+le3 in those of the former 0ind,
li&erality, fran0ness and *ood fello(shi+ naturally ma0e a +art
of that )ommon )hara)ter3 in the latter, narro(ness, meanness,
and a selfish dis+osition, a'erse to all so)ial +leasure and
en2oyment-
The un+rodu)ti'e )lass, that of mer)hants, artifi)ers, and
manufa)turers, is maintained and em+loyed alto*ether at the
e1+ense of the t(o other )lasses, of that of +ro+rietors, and of
that of )ulti'ators- They furnish it &oth (ith the materials of
its (or0 and (ith the fund of its su&sisten)e, (ith the )orn and
)attle (hi)h it )onsumes (hile it is em+loyed a&out that (or0-
The +ro+rietors and )ulti'ators finally +ay &oth the (a*es of all
the (or0men of the un+rodu)ti'e )lass, and of the +rofits of all
their em+loyers- Those (or0men and their em+loyers are +ro+erly
the ser'ants of the +ro+rietors and )ulti'ators- They are only
ser'ants (ho (or0 (ithout doors, as menial ser'ants (or0 (ithin-
.oth the one and the other, ho(e'er, are equally maintained at
the e1+ense of the same masters- The la&our of &oth is equally
un+rodu)ti'e- It adds nothin* to the 'alue of the sum total of
the rude +rodu)e of the land- Instead of in)reasin* the 'alue of
that sum total, it is a )har*e and e1+ense (hi)h must &e +aid out
of it-
The un+rodu)ti'e )lass, ho(e'er, is not only useful, &ut
*reatly useful to the other t(o )lasses- .y means of the industry
of mer)hants, artifi)ers, and manufa)turers, the +ro+rietors and
)ulti'ators )an +ur)hase &oth the forei*n *oods and the
manufa)tured +rodu)e of their o(n )ountry (hi)h they ha'e
o))asion for (ith the +rodu)e of a mu)h smaller quantity of their
o(n la&our than (hat they (ould &e o&li*ed to em+loy if they (ere
to attem+t, in an a(0(ard and uns0ilful manner, either to im+ort
the one or to ma0e the other for their o(n use- .y means of the
un+rodu)ti'e )lass, the )ulti'ators are deli'ered from many )ares
(hi)h (ould other(ise distra)t their attention from the
)ulti'ation of land- The su+eriority of +rodu)e, (hi)h, in
)onsequen)e of this undi'ided attention, they are ena&led to
raise, is fully suffi)ient to +ay the (hole e1+ense (hi)h the
maintenan)e and em+loyment of the un+rodu)ti'e )lass )osts either
the +ro+rietors or themsel'es- The industry of mer)hants,
artifi)ers, and manufa)turers, thou*h in its o(n nature
alto*ether un+rodu)ti'e, yet )ontri&utes in this manner
indire)tly to in)rease the +rodu)e of the land- It in)reases the
+rodu)ti'e +o(ers of +rodu)ti'e la&our &y lea'in* it at li&erty
to )onfine itself to its +ro+er em+loyment, the )ulti'ation of
land/ and the +lou*h *oes frequently the easier and the &etter &y
means of the la&our of the man (hose &usiness is most remote from
the +lou*h-
It )an ne'er &e the interest of the +ro+rietors and
)ulti'ators to restrain or to dis)oura*e in any res+e)t the
industry of mer)hants, artifi)ers, and manufa)turers- The *reater
the li&erty (hi)h this un+rodu)ti'e )lass en2oys, the *reater
(ill &e the )om+etition in all the different trades (hi)h )om+ose
it, and the )hea+er (ill the other t(o )lasses &e su++lied, &oth
(ith forei*n *oods and (ith the manufa)tured +rodu)e of their o(n
)ountry-
It )an ne'er &e the interest of the un+rodu)ti'e )lass to
o++ress the other t(o )lasses- It is the sur+lus +rodu)e of the
land, or (hat remains after dedu)tin* the maintenan)e, first, of
the )ulti'ators, and after(ards of the +ro+rietors, that
maintains and em+loys the un+rodu)ti'e )lass- The *reater this
sur+lus the *reater must li0e(ise &e the maintenan)e and
em+loyment of that )lass- The esta&lishment of +erfe)t 2usti)e,
of +erfe)t li&erty, and of +erfe)t equality is the 'ery sim+le
se)ret (hi)h most effe)tually se)ures the hi*hest de*ree of
+ros+erity to all the three )lasses-
The mer)hants, artifi)ers, and manufa)turers of those
mer)antile states (hi)h, li0e #olland and #am&ur*, )onsist
)hiefly of this un+rodu)ti'e )lass, are in the same manner
maintained and em+loyed alto*ether at the e1+ense of the
+ro+rietors and )ulti'ators of land- The only differen)e is, that
those +ro+rietors and )ulti'ators are, the *reater +art of them,
+la)ed at a most in)on'enient distan)e from the mer)hants,
artifi)ers, and manufa)turers (hom they su++ly (ith the materials
of their (or0 and the fund of their su&sisten)es8 the inha&itants
of other )ountries and the su&2e)ts of other *o'ernments-
Su)h mer)antile states, ho(e'er, are not only useful, &ut
*reatly useful to the inha&itants of those other )ountries- They
fill u+, in some measure, a 'ery im+ortant 'oid, and su++ly the
+la)e of the mer)hants, artifi)ers, and manufa)turers (hom the
inha&itants of those )ountries ou*ht to find at home, &ut (hom,
from some defe)t in their +oli)y, they do not find at home-
It )an ne'er &e the interest of those landed nations, if I
may )all them so, to dis)oura*e or distress the industry of su)h
mer)antile states &y im+osin* hi*h duties u+on their trade or
u+on the )ommodities (hi)h they furnish- Su)h duties, &y
renderin* those )ommodities dearer, )ould ser'e only to sin0 the
real 'alue of the sur+lus +rodu)e of their o(n land, (ith (hi)h,
or, (hat )omes to the same thin*, (ith the +ri)e of (hi)h those
)ommodities are +ur)hased- Su)h duties )ould ser'e only to
dis)oura*e the in)rease of that sur+lus +rodu)e, and )onsequently
the im+ro'ement and )ulti'ation of their o(n land- The most
effe)tual e1+edient, on the )ontrary, for raisin* the 'alue of
that sur+lus +rodu)e, for en)oura*in* its in)rease, and
)onsequently the im+ro'ement and )ulti'ation of their o(n land
(ould &e to allo( the most +erfe)t freedom to the trade of all
su)h mer)antile nations-
This +erfe)t freedom of trade (ould e'en &e the most
effe)tual e1+edient for su++lyin* them, in due time, (ith all the
artifi)ers, manufa)turers, and mer)hants (hom they (anted at
home, and for fillin* u+ in the +ro+erest and most ad'anta*eous
manner that 'ery im+ortant 'oid (hi)h they felt there-
The )ontinual in)rease of the sur+lus +rodu)e of their land
(ould, in due time, )reate a *reater )a+ital than (hat )ould &e
em+loyed (ith the ordinary rate of +rofit in the im+ro'ement and
)ulti'ation of land/ and the sur+lus +art of it (ould naturally
turn itself to the em+loyment of artifi)ers and manufa)turers at
home- .ut those artifi)ers and manufa)turers, findin* at home
&oth the materials of their (or0 and the fund of their
su&sisten)e, mi*ht immediately e'en (ith mu)h less art and s0ill
&e a&le to (or0 as )hea+ as the li0e artifi)ers and manufa)turers
of su)h mer)antile states (ho had &oth to &rin* from a *reat
distan)e- $'en thou*h, from (ant of art and s0ill, they mi*ht not
for some time &e a&le to (or0 as )hea+, yet, findin* a mar0et at
home, they mi*ht &e a&le to sell their (or0 there as )hea+ as
that of the artifi)ers and manufa)turers of su)h mer)antile
states, (hi)h )ould not &e &rou*ht to that mar0et &ut from so
*reat a distan)e/ and as their art and s0ill im+ro'ed, they (ould
soon &e a&le to sell it )hea+er- The artifi)ers and manufa)turers
of su)h mer)antile states, therefore, (ould immediately &e
ri'alled in the mar0et of those landed nations, and soon after
undersold and 2ostled out of it alto*ether- The )hea+ness of the
manufa)tures of those landed nations, in )onsequen)e of the
*radual im+ro'ements of art and s0ill, (ould, in due time, e1tend
their sale &eyond the home mar0et, and )arry them to many forei*n
mar0ets, from (hi)h they (ould in the same manner *radually
2ostle out many of the manufa)turers of su)h mer)antile nations-
This )ontinual in)rease &oth of the rude and manufa)tured
+rodu)e of those landed nations (ould in due time )reate a
*reater )a+ital than )ould, (ith the ordinary rate of +rofit, &e
em+loyed either in a*ri)ulture or in manufa)tures- The sur+lus of
this )a+ital (ould naturally turn itself to forei*n trade, and &e
em+loyed in e1+ortin* to forei*n )ountries su)h +arts of the rude
and manufa)tured +rodu)e of its o(n )ountry as e1)eeded the
demand of the home mar0et- In the e1+ortation of the +rodu)e of
their o(n )ountry, the mer)hants of a landed nation (ould ha'e an
ad'anta*e of the same 0ind o'er those of mer)antile nations (hi)h
its artifi)ers and manufa)turers had o'er the artifi)ers and
manufa)turers of su)h nations/ the ad'anta*e of findin* at home
that )ar*o and those stores and +ro'isions (hi)h the others (ere
o&li*ed to see0 for at a distan)e- With inferior art and s0ill in
na'i*ation, therefore, they (ould &e a&le to sell that )ar*o as
)hea+ in forei*n mar0ets as the mer)hants of su)h mer)antile
nations/ and (ith equal art and s0ill they (ould &e a&le to sell
it )hea+er- They (ould soon, therefore, ri'al those mer)antile
nations in this &ran)h of forei*n trade, and in due time (ould
2ostle them out of it alto*ether-
A))ordin* to this li&eral and *enerous system, therefore,
the most ad'anta*eous method in (hi)h a landed nation )an raise
u+ artifi)ers, manufa)turers, and mer)hants of its o(n is to
*rant the most +erfe)t freedom of trade to the artifi)ers,
manufa)turers, and mer)hants of all other nations- It there&y
raises the 'alue of the sur+lus +rodu)e of its o(n land, of (hi)h
the )ontinual in)rease *radually esta&lishes a fund, (hi)h in due
time ne)essarily raises u+ all the artifi)ers, manufa)turers, and
mer)hants (hom it has o))asion for-
When a landed nation, on the )ontrary, o++resses either &y
hi*h duties or &y +rohi&itions the trade of forei*n nations, it
ne)essarily hurts its o(n interest in t(o different (ays- "irst,
&y raisin* the +ri)e of all forei*n *oods and of all sorts of
manufa)tures, it ne)essarily sin0s the real 'alue of the sur+lus
+rodu)e of its o(n land, (ith (hi)h, or, (hat )omes to the same
thin*, (ith the +ri)e of (hi)h it +ur)hases those forei*n *oods
and manufa)tures- Se)ondly, &y *i'in* a sort of mono+oly of the
home mar0et to its o(n mer)hants, artifi)ers, and manufa)turers,
it raises the rate of mer)antile and manufa)turin* +rofit in
+ro+ortion to that of a*ri)ultural +rofit, and )onsequently
either dra(s from a*ri)ulture a +art of the )a+ital (hi)h had
&efore &een em+loyed in it, or hinders from *oin* to it a +art of
(hat (ould other(ise ha'e *one to it- This +oli)y, therefore,
dis)oura*es a*ri)ulture in t(o different (ays/ first, &y sin0in*
the real 'alue of its +rodu)e, and there&y lo(erin* the rate of
its +rofit/ and, se)ondly, &y raisin* the rate of +rofit in all
other em+loyments- A*ri)ulture is rendered less ad'anta*eous, and
trade and manufa)tures more ad'anta*eous than they other(ise
(ould &e/ and e'ery man is tem+ted &y his o(n interest to turn,
as mu)h as he )an, &oth his )a+ital and his industry from the
former to the latter em+loyments-
Thou*h, &y this o++ressi'e +oli)y, a landed nation should &e
a&le to raise u+ artifi)ers, manufa)turers, and mer)hants of its
o(n some(hat sooner than it )ould do &y the freedom of trade a
matter, ho(e'er, (hi)h is not a little dou&tful8 yet it (ould
raise them u+, if one may say so, +rematurely, and &efore it (as
+erfe)tly ri+e for them- .y raisin* u+ too hastily one s+e)ies of
industry, it (ould de+ress another more 'alua&le s+e)ies of
industry- .y raisin* u+ too hastily a s+e)ies of industry (hi)h
only re+la)es the sto)0 (hi)h em+loys it, to*ether (ith the
ordinary +rofit, it (ould de+ress a s+e)ies of industry (hi)h,
o'er and a&o'e re+la)in* that sto)0 (ith its +rofit, affords
li0e(ise a net +rodu)e, a free rent to the landlord- It (ould
de+ress +rodu)ti'e la&our, &y en)oura*in* too hastily that la&our
(hi)h is alto*ether &arren and un+rodu)ti'e-
In (hat manner, a))ordin* to this system, the sum total of
the annual +rodu)e of the land is distri&uted amon* the three
)lasses a&o'e mentioned, and in (hat manner the la&our of the
un+rodu)ti'e )lass does no more than re+la)e the 'alue of its o(n
)onsum+tion, (ithout in)reasin* in any res+e)t the 'alue of that
sum total, is re+resented &y 4r- Juesnai, the 'ery in*enious and
+rofound author of this system, in some arithmeti)al formularies-
The first of these formularies, (hi)h &y (ay of eminen)e he
+e)uliarly distin*uishes &y the name of the $)onomi)al Ta&le,
re+resents the manner in (hi)h he su++oses the distri&ution ta0es
+la)e in a state of the most +erfe)t li&erty and therefore of the
hi*hest +ros+erity8 in a state (here the annual +rodu)e is su)h
as to afford the *reatest +ossi&le net +rodu)e, and (here ea)h
)lass en2oys its +ro+er share of the (hole annual +rodu)e- Some
su&sequent formularies re+resent the manner in (hi)h he su++oses
this distri&ution is made in different states of restraint and
re*ulation/ in (hi)h either the )lass of +ro+rietors or the
&arren and un+rodu)ti'e )lass is more fa'oured than the )lass of
)ulti'ators, and in (hi)h either the one or the other en)roa)hes
more or less u+on the share (hi)h ou*ht +ro+erly to &elon* to
this +rodu)ti'e )lass- $'ery su)h en)roa)hment, e'ery 'iolation
of that natural distri&ution, (hi)h the most +erfe)t li&erty
(ould esta&lish, must, a))ordin* to this system, ne)essarily
de*rade more or less, from one year to another, the 'alue and sum
total of the annual +rodu)e, and must ne)essarily o))asion a
*radual de)lension in the real (ealth and re'enue of the so)iety/
a de)lension of (hi)h the +ro*ress must &e qui)0er or slo(er,
a))ordin* to the de*ree of this en)roa)hment, a))ordin* as that
natural distri&ution (hi)h the most +erfe)t li&erty (ould
esta&lish is more or less 'iolated- Those su&sequent formularies
re+resent the different de*rees of de)lension (hi)h, a))ordin* to
this system, )orres+ond to the different de*rees in (hi)h this
natural distri&ution is 'iolated-
Some s+e)ulati'e +hysi)ians seem to ha'e ima*ined that the
health of the human &ody )ould &e +reser'ed only &y a )ertain
+re)ise re*imen of diet and e1er)ise, of (hi)h e'ery, the
smallest, 'iolation ne)essarily o))asioned some de*ree of disease
or disorder +ro+ortioned to the de*ree of the 'iolation-
$1+erien)e, ho(e'er, (ould seem to sho( that the human &ody
frequently +reser'es, to all a++earan)es at least, the most
+erfe)t state of health under a 'ast 'ariety of different
re*imens/ e'en under some (hi)h are *enerally &elie'ed to &e 'ery
far from &ein* +erfe)tly (holesome- .ut the healthful state of
the human &ody, it (ould seem, )ontains in itself some un0no(n
+rin)i+le of +reser'ation, )a+a&le either of +re'entin* or of
)orre)tin*, in many res+e)ts, the &ad effe)ts e'en of a 'ery
faulty re*imen- 4r- Juesnai, (ho (as himself a +hysi)ian, and a
'ery s+e)ulati'e +hysi)ian, seems to ha'e entertained a notion of
the same 0ind )on)ernin* the +oliti)al &ody, and to ha'e ima*ined
that it (ould thri'e and +ros+er only under a )ertain +re)ise
re*imen, the e1a)t re*imen of +erfe)t li&erty and +erfe)t
2usti)e- #e seems not to ha'e )onsidered that, in the +oliti)al
&ody, the natural effort (hi)h e'ery man is )ontinually ma0in* to
&etter his o(n )ondition is a +rin)i+le of +reser'ation )a+a&le
of +re'entin* and )orre)tin*, in many res+e)ts, the &ad effe)ts
of a +oliti)al e)onomy, in some de*ree, &oth +artial and
o++ressi'e- Su)h a +oliti)al e)onomy, thou*h it no dou&t retards
more or less, is not al(ays )a+a&le of sto++in* alto*ether the
natural +ro*ress of a nation to(ards (ealth and +ros+erity, and
still less of ma0in* it *o &a)0(ards- If a nation )ould not
+ros+er (ithout the en2oyment of +erfe)t li&erty and +erfe)t
2usti)e, there is not in the (orld a nation (hi)h )ould e'er ha'e
+ros+ered- In the +oliti)al &ody, ho(e'er, the (isdom of nature
has fortunately made am+le +ro'ision for remedyin* many of the
&ad effe)ts of the folly and in2usti)e of man, in the same manner
as it has done in the natural &ody for remedyin* those of his
sloth and intem+eran)e-
The )a+ital error of this system, ho(e'er, seems to lie in
its re+resentin* the )lass of artifi)ers, manufa)turers, and
mer)hants as alto*ether &arren and un+rodu)ti'e- The follo(in*
o&ser'ations may ser'e to sho( the im+ro+riety of this
re+resentation-
"irst, this )lass, it is a)0no(led*ed, re+rodu)es annually
the 'alue of its o(n annual )onsum+tion, and )ontinues, at least,
the e1isten)e of the sto)0 or )a+ital (hi)h maintains and em+loys
it- .ut u+on this a))ount alone the denomination of &arren or
un+rodu)ti'e should seem to &e 'ery im+ro+erly a++lied to it- We
should not )all a marria*e &arren or un+rodu)ti'e thou*h it
+rodu)ed only a son and a dau*hter, to re+la)e the father and
mother, and thou*h it did not in)rease the num&er of the human
s+e)ies, &ut only )ontinued it as it (as &efore- "armers and
)ountry la&ourers, indeed, o'er and a&o'e the sto)0 (hi)h
maintains and em+loys them, re+rodu)e annually a net +rodu)e, a
free rent to the landlord- As a marria*e (hi)h affords three
)hildren is )ertainly more +rodu)ti'e than one (hi)h affords only
t(o/ so the la&our of farmers and )ountry la&ourers is )ertainly
more +rodu)ti'e than that of mer)hants, artifi)ers, and
manufa)turers- The su+erior +rodu)e of the one )lass, ho(e'er,
does not render the other &arren or un+rodu)ti'e-
Se)ondly, it seems, u+on this a))ount, alto*ether im+ro+er
to )onsider artifi)ers, manufa)turers, and mer)hants in the same
li*ht as menial ser'ants- The la&our of menial ser'ants does not
)ontinue the e1isten)e of the fund (hi)h maintains and em+loys
them- Their maintenan)e and em+loyment is alto*ether at the
e1+ense of their masters, and the (or0 (hi)h they +erform is not
of a nature to re+ay that e1+ense- That (or0 )onsists in ser'i)es
(hi)h +erish *enerally in the 'ery instant of their +erforman)e,
and does not fi1 or reali;e itself in any 'endi&le )ommodity
(hi)h )an re+la)e the 'alue of their (a*es and maintenan)e- The
la&our, on the )ontrary, of artifi)ers, manufa)turers, and
mer)hants naturally does fi1 and reali;e itself in some su)h
'endi&le )ommodity- It is u+on this a))ount that, in the )ha+ter
in (hi)h I treat of +rodu)ti'e and un+rodu)ti'e la&our, I ha'e
)lassed artifi)ers, manufa)turers, and mer)hants amon* the
+rodu)ti'e la&ourers, and menial ser'ants amon* the &arren or
un+rodu)ti'e-
Thirdly, it seems u+on e'ery su++osition im+ro+er to say
that the la&our of artifi)ers, manufa)turers, and mer)hants does
not in)rease the real re'enue of the so)iety- Thou*h (e should
su++ose, for e1am+le, as it seems to &e su++osed in this system,
that the 'alue of the daily, monthly, and yearly )onsum+tion of
this )lass (as e1a)tly equal to that of its daily, monthly, and
yearly +rodu)tion, yet it (ould not from then)e follo( that its
la&our added nothin* to the real re'enue, to the real 'alue of
the annual +rodu)e of the land and la&our of the so)iety- An
artifi)er, for e1am+le, (ho, in the first si1 months after
har'est, e1e)utes ten +ounds= (orth of (or0, thou*h he should in
the same time )onsume ten +ounds= (orth of )orn and other
ne)essaries, yet really adds the 'alue of ten +ounds to the
annual +rodu)e of the land and la&our of the so)iety- While he
has &een )onsumin* a half8yearly re'enue of ten +ounds= (orth of
)orn and other ne)essaries, he has +rodu)ed an equal 'alue of
(or0 )a+a&le of +ur)hasin*, either to himself or some other
+erson, an equal half8yearly re'enue- The 'alue, therefore, of
(hat has &een )onsumed and +rodu)ed durin* these si1 months is
equal, not to ten, &ut to t(enty +ounds- It is +ossi&le, indeed,
that no more than ten +ounds= (orth of this 'alue may e'er ha'e
e1isted at any one moment of time- .ut if the ten +ounds= (orth
of )orn and other ne)essaties, (hi)h (ere )onsumed &y the
artifi)er, had &een )onsumed &y a soldier or &y a menial ser'ant,
the 'alue of that +art of the annual +rodu)e (hi)h e1isted at the
end of the si1 months (ould ha'e &een ten +ounds less than it
a)tually is in )onsequen)e of the la&our of the artifi)er- Thou*h
the 'alue of (hat the artifi)er +rodu)es, therefore, should not
at any one moment of time &e su++osed *reater than the 'alue he
)onsumes, yet at e'ery moment of time the a)tually e1istin* 'alue
of *oods in the mar0et is, in )onsequen)e of (hat he +rodu)es,
*reater than it other(ise (ould &e-
When the +atrons of this system assert that the )onsum+tion
of artifi)ers, manufa)turers, and mer)hants is equal to the 'alue
of (hat they +rodu)e, they +ro&a&ly mean no more than that their
re'enue, or the fund destined for their )onsum+tion, is equal to
it- .ut if they had e1+ressed themsel'es more a))urately, and
only asserted that the re'enue of this )lass (as equal to the
'alue of (hat they +rodu)ed, it mi*ht readily ha'e o))urred to
the reader that (hat (ould naturally &e sa'ed out of this re'enue
must ne)essarily in)rease more or less the real (ealth of the
so)iety- In order, therefore, to ma0e out somethin* li0e an
ar*ument, it (as ne)essary that they should e1+ress themsel'es as
they ha'e done/ and this ar*ument, e'en su++osin* thin*s a)tually
(ere as it seems to +resume them to &e, turns out to &e a 'ery
in)on)lusi'e one-
"ourthly, farmers and )ountry la&ourers )an no more au*ment,
(ithout +arsimony, the real re'enue, the annual +rodu)e of the
land and la&our of their so)iety, than artifi)ers, manufa)turers,
and mer)hants- The annual +rodu)e of the land and la&our of any
so)iety )an &e au*mented only in t(o (ays/ either, first, &y some
im+ro'ement in the +rodu)ti'e +o(ers of the useful la&our
a)tually maintained (ithin it/ or, se)ondly, &y some in)rease in
the quantity of that la&our-
The im+ro'ement in the +rodu)ti'e +o(ers of useful la&our
de+end, first, u+on the im+ro'ement in the a&ility of the
(or0man/ and, se)ondly, u+on that of the ma)hinery (ith (hi)h he
(or0s- .ut the la&our of artifi)ers and manufa)turers, as it is
)a+a&le of &ein* more su&di'ided, and the la&our of ea)h (or0man
redu)ed to a *reater sim+li)ity of o+eration than that of farmers
and )ountry la&ourers, so it is li0e(ise )a+a&le of &oth these
sorts of im+ro'ements in a mu)h hi*her de*ree- In this res+e)t,
therefore, the )lass of )ulti'ators )an ha'e no sort of ad'anta*e
o'er that of artifi)ers and manufa)turers-
The in)rease in the quantity of useful la&our a)tually
em+loyed (ithin any so)iety must de+end alto*ether u+on the
in)rease of the )a+ital (hi)h em+loys it/ and the in)rease of
that )a+ital a*ain must &e e1a)tly equal to the amount of the
sa'in*s from the re'enue, either of the +arti)ular +ersons (ho
mana*e and dire)t the em+loyment of that )a+ital, or of some
other +ersons (ho lend it to them- If mer)hants, artifi)ers, and
manufa)turers are, as this system seems to su++ose, naturally
more in)lined to +arsimony and sa'in* than +ro+rietors and
)ulti'ators, they are, so far, more li0ely to au*ment the
quantity of useful la&our em+loyed (ithin their so)iety, and
)onsequently to in)rease its real re'enue, the annual +rodu)e of
its land and la&our-
"ifthly and lastly, thou*h the re'enue of the inha&itants of
e'ery )ountry (as su++osed to )onsist alto*ether, as this system
seems to su++ose, in the quantity of su&sisten)e (hi)h their
industry )ould +ro)ure to them/ yet, e'en u+on this su++osition,
the re'enue of a tradin* and manufa)turin* )ountry must, other
thin*s &ein* equal, al(ays &e mu)h *reater than that of one
(ithout trade or manufa)tures- .y means of trade and
manufa)tures, a *reater quantity of su&sisten)e )an &e annually
im+orted into a +arti)ular )ountry than (hat its o(n lands, in
the a)tual state of their )ulti'ation, )ould afford- The
inha&itants of a to(n, thou*h they frequently +ossess no lands of
their o(n, yet dra( to themsel'es &y their industry su)h a
quantity of the rude +rodu)e of the lands of other +eo+le as
su++lies them, not only (ith the materials of their (or0, &ut
(ith the fund of their su&sisten)e- What a to(n al(ays is (ith
re*ard to the )ountry in its nei*h&ourhood, one inde+endent state
or )ountry may frequently &e (ith re*ard to other inde+endent
states or )ountries- It is thus that #olland dra(s a *reat +art
of its su&sisten)e from other )ountries/ li'e )attle from
#olstein and Autland, and )orn from almost all the different
)ountries of $uro+e- A small quantity of manufa)tured +rodu)e
+ur)hases a *reat quantity of rude +rodu)e- A tradin* and
manufa)turin* )ountry, therefore, naturally +ur)hases (ith a
small +art of its manufa)tured +rodu)e a *reat +art of the rude
+rodu)e of other )ountries/ (hile, on the )ontrary, a )ountry
(ithout trade and manufa)tures is *enerally o&li*ed to +ur)hase,
at the e1+ense of a *reat +art of its rude +rodu)e, a 'ery small
+art of the manufa)tured +rodu)e of other )ountries- The one
e1+orts (hat )an su&sist and a))ommodate &ut a 'ery fe(, and
im+orts the su&sisten)e and a))ommodation of a *reat num&er- The
other e1+orts the a))ommodation and su&sisten)e of a *reat
num&er, and im+orts that of a 'ery fe( only- The inha&itants of
the one must al(ays en2oy a mu)h *reater quantity of su&sisten)e
than (hat their o(n lands, in the a)tual state of their
)ulti'ation, )ould afford- The inha&itants of the other must
al(ays en2oy a mu)h smaller quantity-
This system, ho(e'er, (ith all its im+erfe)tions is,
+erha+s, the nearest a++ro1imation to the truth that has yet &een
+u&lished u+on the su&2e)t of +oliti)al e)onomy, and is u+on that
a))ount (ell (orth the )onsideration of e'ery man (ho (ishes to
e1amine (ith attention the +rin)i+les of that 'ery im+ortant
s)ien)e- Thou*h in re+resentin* the la&our (hi)h is em+loyed u+on
land as the only +rodu)ti'e la&our, the notions (hi)h it
in)ul)ates are +erha+s too narro( and )onfined/ yet in
re+resentin* the (ealth of nations as )onsistin*, not in the
un)onsuma&le ri)hes of money, &ut in the )onsuma&le *oods
annually re+rodu)ed &y the la&our of the so)iety, and in
re+resentin* +erfe)t li&erty as the only effe)tual e1+edient for
renderin* this annual re+rodu)tion the *reatest +ossi&le, its
do)trine seems to &e in e'ery res+e)t as 2ust as it is *enerous
and li&eral- Its follo(ers are 'ery numerous/ and as men are fond
of +arado1es, and of a++earin* to understand (hat sur+asses the
)om+rehension of ordinary +eo+le, the +arado1 (hi)h it maintains,
)on)ernin* the un+rodu)ti'e nature of manufa)turin* la&our, has
not +erha+s )ontri&uted a little to in)rease the num&er of its
admirers- They ha'e for some years +ast made a +retty
)onsidera&le se)t, distin*uished in the "ren)h re+u&li) of
letters &y the name of The $)onomists- Their (or0s ha'e )ertainly
&een of some ser'i)e to their )ountry/ not only &y &rin*in* into
*eneral dis)ussion many su&2e)ts (hi)h had ne'er &een (ell
e1amined &efore, &ut &y influen)in* in some measure the +u&li)
administration in fa'our of a*ri)ulture- It has &een in
)onsequen)e of their re+resentations, a))ordin*ly, that the
a*ri)ulture of "ran)e has &een deli'ered from se'eral of the
o++ressions (hi)h it &efore la&oured under- The term durin* (hi)h
su)h a lease )an &e *ranted, as (ill &e 'alid a*ainst e'ery
future +ur)haser or +ro+rietor of the land, has &een +rolon*ed
from nine to t(enty8se'en years- The an)ient +ro'in)ial
restraints u+on the trans+ortation of )orn from one +ro'in)e of
the 0in*dom to another ha'e &een entirely ta0en a(ay, and the
li&erty of e1+ortin* it to all forei*n )ountries has &een
esta&lished as the )ommon la( of the 0in*dom in all ordinary
)ases- This se)t, in their (or0s, (hi)h are 'ery numerous, and
(hi)h treat not only of (hat is +ro+erly )alled oliti)al
$)onomy, or of the nature and )auses of the (ealth of nations,
&ut of e'ery other &ran)h of the system of )i'il *o'ernment, all
follo( im+li)itly and (ithout any sensi&le 'ariation, the
do)trine of 4r- Juesnai- There is u+on this a))ount little
'ariety in the *reater +art of their (or0s- The most distin)t and
&est )onne)ted a))ount of this do)trine is to &e found in a
little &oo0 (ritten &y 4r- 4er)ier de la Ri'iere, some time
intendant of 4artini)o, entitled, The Natural and $ssential Order
of oliti)al So)ieties- The admiration of this (hole se)t for
their master, (ho (as himself a man of the *reatest modesty and
sim+li)ity, is not inferior to that of any of the an)ient
+hiloso+hers for the founders of their res+e)ti'e systems- @There
ha'e &een, sin)e the (orld &e*an,@ says a 'ery dili*ent and
res+e)ta&le author, the 4arquis de 4ira&eau, @three *reat
in'entions (hi)h ha'e +rin)i+ally *i'en sta&ility to +oliti)al
so)ieties, inde+endent of many other in'entions (hi)h ha'e
enri)hed and adorned them- The first is the in'ention of (ritin*,
(hi)h alone *i'es human nature the +o(er of transmittin*, (ithout
alteration, its la(s, its )ontra)ts, its annals, and its
dis)o'eries- The se)ond is the in'ention of money, (hi)h &inds
to*ether all the relations &et(een )i'ilised so)ieties- The third
is the $)onomi)al Ta&le, the result of the other t(o, (hi)h
)om+letes them &oth &y +erfe)tin* their o&2e)t/ the *reat
dis)o'ery of our a*e, &ut of (hi)h our +osterity (ill rea+ the
&enefit-@
As the +oliti)al e)onomy of the nations of modern $uro+e has
&een more fa'oura&le to manufa)tures and forei*n trade, the
industry of the to(ns, than to a*ri)ulture, the industry of the
)ountry/ so that of other nations has follo(ed a different +lan,
and has &een more fa'oura&le to a*ri)ulture than to manufa)tures
and forei*n trade-
The +oli)y of China fa'ours a*ri)ulture more than all other
em+loyments- In China the )ondition of a la&ourer is said to &e
as mu)h su+erior to that of an artifi)er as in most +arts of
$uro+e that of an artifi)er is to that of a la&ourer- In China,
the *reat am&ition of e'ery man is to *et +ossession of some
little &it of land, either in +ro+erty or in lease/ and leases
are there said to &e *ranted u+on 'ery moderate terms, and to &e
suffi)iently se)ured to the lessees- The Chinese ha'e little
res+e)t for forei*n trade- 7our &e**arly )ommer)e< (as the
lan*ua*e in (hi)h the 4andarins of e0in used to tal0 to 4r- de
!an*e, the Russian en'oy, )on)ernin* it- $1)e+t (ith Aa+an, the
Chinese )arry on, themsel'es, and in their o(n &ottoms, little or
no forei*n trade/ and it is only into one or t(o +orts of their
0in*dom that they e'en admit the shi+s of forei*n nations-
"orei*n trade therefore is, in China, e'ery (ay )onfined (ithin a
mu)h narro(er )ir)le than that to (hi)h it (ould naturally e1tend
itself, if more freedom (as allo(ed to it, either in their o(n
shi+s, or in those of forei*n nations-
4anufa)tures, as in a small &ul0 they frequently )ontain a
*reat 'alue, and )an u+on that a))ount &e trans+orted at less
e1+ense from one )ountry to another than most +arts of rude
+rodu)e, are, in almost all )ountries, the +rin)i+al su++ort of
forei*n trade- In )ountries, &esides, less e1tensi'e and less
fa'oura&ly )ir)umstan)ed for inferior )ommer)e than China, they
*enerally require the su++ort of forei*n trade- Without an
e1tensi'e forei*n mar0et they )ould not (ell flourish, either in
)ountries so moderately e1tensi'e as to afford &ut a narro( home
mar0et or in )ountries (here the )ommuni)ation &et(een one
+ro'in)e and another (as so diffi)ult as to render it im+ossi&le
for the *oods of any +arti)ular +la)e to en2oy the (hole of that
home mar0et (hi)h the )ountry )ould afford- The +erfe)tion of
manufa)turin* industry, it must &e remem&ered, de+ends alto*ether
u+on the di'ision of la&our/ and the de*ree to (hi)h the di'ision
of la&our )an &e introdu)ed into any manufa)ture is ne)essarily
re*ulated, it has already &een sho(n, &y the e1tent of the
mar0et- .ut the *reat e1tent of the em+ire of China, the 'ast
multitude of its inha&itants, the 'ariety of )limate, and
)onsequently of +rodu)tions in its different +ro'in)es, and the
easy )ommuni)ation &y means of (ater )arria*e &et(een the *reater
+art of them, render the home mar0et of that )ountry of so *reat
e1tent as to &e alone suffi)ient to su++ort 'ery *reat
manufa)tures, and to admit of 'ery )onsidera&le su&di'isions of
la&our- The home mar0et of China is, +erha+s, in e1tent, not mu)h
inferior to the mar0et of all the different )ountries of $uro+e
+ut to*ether- A more e1tensi'e forei*n trade, ho(e'er, (hi)h to
this *reat home mar0et added the forei*n mar0et of all the rest
of the (orld8 es+e)ially if any )onsidera&le +art of this trade
(as )arried on in Chinese shi+s8 )ould s)ar)e fail to in)rease
'ery mu)h the manufa)tures of China, and to im+ro'e 'ery mu)h the
+rodu)ti'e +o(ers of its manufa)turin* industry- .y a more
e1tensi'e na'i*ation, the Chinese (ould naturally learn the art
of usin* and )onstru)tin* themsel'es all the different ma)hines
made use of in other )ountries, as (ell as the other im+ro'ements
of art and industry (hi)h are +ra)tised in all the different
+arts of the (orld- U+on their +resent +lan they ha'e little
o++ortunity e1)e+t that of the Aa+anese-
The +oli)y of an)ient $*y+t too, and that of the 6entoo
*o'ernment of Indostan, seem to ha'e fa'oured a*ri)ulture more
than all other em+loyments-
.oth in an)ient $*y+t and Indostan the (hole &ody of the
+eo+le (as di'ided into different )astes or tri&es, ea)h of (hi)h
(as )onfined, from father to son, to a +arti)ular em+loyment or
)lass of em+loyments- The son of a +riest (as ne)essarily a
+riest/ the son of a soldier, a soldier/ the son of a la&ourer, a
la&ourer/ the son of a (ea'er, a (ea'er/ the son of a tailor, a
tailor, et)- In &oth )ountries, the )aste of the +riests held the
hi*hest ran0, and that of the soldiers the ne1t/ and in &oth
)ountries, the )aste of the farmers and la&ourers (as su+erior to
the )astes of mer)hants and manufa)turers-
The *o'ernment of &oth )ountries (as +arti)ularly attenti'e
to the interest of a*ri)ulture- The (or0s )onstru)ted &y the
an)ient so'erei*ns of $*y+t for the +ro+er distri&ution of the
(aters of the Nile (ere famous in antiquity/ and the ruined
remains of some of them are still the admiration of tra'ellers-
Those of the same 0ind (hi)h (ere )onstru)ted &y the an)ient
so'erei*ns of Indostan for the +ro+er distri&ution of the (aters
of the 6an*es as (ell as of many other ri'ers, thou*h they ha'e
&een less )ele&rated, seem to ha'e &een equally *reat- .oth
)ountries, a))ordin*ly, thou*h su&2e)t o))asionally to dearths,
ha'e &een famous for their *reat fertility- Thou*h &oth (ere
e1tremely +o+ulous, yet, in years of moderate +lenty, they (ere
&oth a&le to e1+ort *reat quantities of *rain to their
nei*h&ours-
The an)ient $*y+tians had a su+erstitious a'ersion to the
sea/ and as the 6entoo reli*ion does not +ermit its follo(ers to
li*ht a fire, nor )onsequently to dress any 'i)tuals u+on the
(ater, it in effe)t +rohi&its them from all distant sea 'oya*es-
.oth the $*y+tians and Indians must ha'e de+ended almost
alto*ether u+on the na'i*ation of other nations for the
e1+ortation of their sur+lus +rodu)e/ and this de+enden)y, as it
must ha'e )onfined the mar0et, so it must ha'e dis)oura*ed the
in)rease of this sur+lus +rodu)e- It must ha'e dis)oura*ed, too,
the in)rease of the manufa)tured +rodu)e more than that of the
rude +rodu)e- 4anufa)tures require a mu)h more e1tensi'e mar0et
than the most im+ortant +arts of the rude +rodu)e of the land- A
sin*le shoema0er (ill ma0e more than three hundred +airs of shoes
in the year/ and his o(n family (ill not, +erha+s, (ear out si1
+airs- Unless therefore he has the )ustom of at least fifty su)h
families as his o(n, he )annot dis+ose of the (hole +rodu)e of
his o(n la&our- The most numerous )lass of artifi)ers (ill
seldom, in a lar*e )ountry, ma0e more than one in fifty or one in
a hundred of the (hole num&er of families )ontained in it- .ut in
su)h lar*e )ountries as "ran)e and $n*land, the num&er of +eo+le
em+loyed in a*ri)ulture has &y some authors &een )om+uted at a
half, &y others at a third, and &y no author that I 0no( of, at
less than a fifth of the (hole inha&itants of the )ountry- .ut as
the +rodu)e of the a*ri)ulture of &oth "ran)e and $n*land is, the
far *reater +art of it, )onsumed at home, ea)h +erson em+loyed in
it must, a))ordin* to these )om+utations, require little more
than the )ustom of one, t(o, or at most, of four su)h families as
his o(n in order to dis+ose of the (hole +rodu)e of his o(n
la&our- A*ri)ulture, therefore, )an su++ort itself under the
dis)oura*ement of a )onfined mar0et mu)h &etter than
manufa)tures- In &oth an)ient $*y+t and Indostan, indeed, the
)onfinement of the forei*n mar0et (as in some measure )om+ensated
&y the )on'enien)y of many inland na'i*ations, (hi)h o+ened, in
the most ad'anta*eous manner, the (hole e1tent of the home mar0et
to e'ery +art of the +rodu)e of e'ery different distri)t of those
)ountries- The *reat e1tent of Indostan, too, rendered the home
mar0et of that )ountry 'ery *reat, and suffi)ient to su++ort a
*reat 'ariety of manufa)tures- .ut the small e1tent of an)ient
$*y+t, (hi)h (as ne'er equal to $n*land, must at all times ha'e
rendered the home mar0et of that )ountry too narro( for
su++ortin* any *reat 'ariety of manufa)tures- .en*al,
a))ordin*ly, the +ro'in)e of Indostan, (hi)h )ommonly e1+orts the
*reatest quantity of ri)e, has al(ays &een more remar0a&le for
the e1+ortation of a *reat 'ariety of manufa)tures than for that
of its *rain- An)ient $*y+t, on the )ontrary, thou*h it e1+orted
some manufa)tures, fine linen in +arti)ular, as (ell as some
other *oods, (as al(ays most distin*uished for its *reat
e1+ortation of *rain- It (as lon* the *ranary of the Roman
em+ire-
The so'erei*ns of China, of an)ient $*y+t, and of the
different 0in*doms into (hi)h Indostan has at different times
&een di'ided, ha'e al(ays deri'ed the (hole, or &y far the most
)onsidera&le +art, of their re'enue from some sort of land ta1 or
land rent- This land ta1 or land rent, li0e the tithe in $uro+e,
)onsisted in a )ertain +ro+ortion, a fifth, it is said, of the
+rodu)e of the land, (hi)h (as either deli'ered in 0ind, or +aid
in money, a))ordin* to a )ertain 'aluation, and (hi)h therefore
'aried from year to year a))ordin* to all the 'ariations of the
+rodu)e- It (as natural therefore that the so'erei*ns of those
)ountries should &e +arti)ularly attenti'e to the interests of
a*ri)ulture, u+on the +ros+erity or de)lension of (hi)h
immediately de+ended the yearly in)rease or diminution of their
o(n re'enue-
The +oli)y of the an)ient re+u&li)s of 6ree)e, and that of
Rome, thou*h it honoured a*ri)ulture more than manufa)tures or
forei*n trade, yet seems rather to ha'e dis)oura*ed the latter
em+loyments than to ha'e *i'en any dire)t or intentional
en)oura*ement to the former- In se'eral of the an)ient states of
6ree)e, forei*n trade (as +rohi&ited alto*ether/ and in se'eral
others the em+loyments of artifi)ers and manufa)turers (ere
)onsidered as hurtful to the stren*th and a*ility of the human
&ody, as renderin* it in)a+a&le of those ha&its (hi)h their
military and *ymnasti) e1er)ises endea'oured to form in it, and
as there&y disqualifyin* it more or less for under*oin* the
fati*ues and en)ounterin* the dan*ers of (ar- Su)h o))u+ations
(ere )onsidered as fit only for sla'es, and the free )iti;ens of
the state (ere +rohi&ited from e1er)isin* them- $'en in those
states (here no su)h +rohi&ition too0 +la)e, as in Rome and
Athens, the *reat &ody of the +eo+le (ere in effe)t e1)luded from
all the trades (hi)h are, no( )ommonly e1er)ised &y the lo(er
sort of the inha&itants of to(ns- Su)h trades (ere, at Athens and
Rome, all o))u+ied &y the sla'es of the ri)h, (ho e1er)ised them
for the &enefit of their masters, (hose (ealth, +o(er, and
+rote)tion made it almost im+ossi&le for a +oor freeman to find a
mar0et for his (or0, (hen it )ame into )om+etition (ith that of
the sla'es of the ri)h- Sla'es, ho(e'er, are 'ery seldom
in'enti'e/ and all the most im+ortant im+ro'ements, either in
ma)hinery, or in the arran*ement and distri&ution of (or0 (hi)h
fa)ilitate and a&rid*e la&our, ha'e &een the dis)o'eries of
freemen- Should a sla'e +ro+ose any im+ro'ement of this 0ind, his
master (ould &e 'ery a+t to )onsider the +ro+osal as the
su**estion of la;iness, and a desire to sa'e his o(n la&our at
the master=s e1+ense- The +oor sla'e, instead of re(ard, (ould
+ro&a&ly meet (ith mu)h a&use, +erha+s (ith some +unishment- In
the manufa)tures )arried on &y sla'es, therefore, more la&our
must *enerally ha'e &een em+loyed to e1e)ute the same quantity of
(or0 than in those )arried on &y freemen- The (or0 of the former
must, u+on that a))ount, *enerally ha'e &een dearer than that of
the latter- The #un*arian mines, it is remar0ed &y 4r-
4ontesquieu, thou*h not ri)her, ha'e al(ays &een (rou*ht (ith
less e1+ense, and therefore (ith more +rofit, than the Tur0ish
mines in their nei*h&ourhood- The Tur0ish mines are (rou*ht &y
sla'es/ and the arms of those sla'es are the only ma)hines (hi)h
the Tur0s ha'e e'er thou*ht of em+loyin*- The #un*arian mines are
(rou*ht &y freemen, (ho em+loy a *reat deal of ma)hinery, &y
(hi)h they fa)ilitate and a&rid*e their o(n la&our- "rom the 'ery
little that is 0no(n a&out the +ri)e of manufa)tures in the times
of the 6ree0s and Romans, it (ould a++ear that those of the finer
sort (ere e1)essi'ely dear- Sil0 sold for its (ei*ht in *old- It
(as not, indeed, in those times a $uro+ean manufa)ture/ and as it
(as all &rou*ht from the $ast Indies, the distan)e of the
)arria*e may in some measure a))ount for the *reatness of +ri)e-
The +ri)e, ho(e'er, (hi)h a lady, it is said, (ould sometimes +ay
for a +ie)e of 'ery fine linen, seems to ha'e &een equally
e1tra'a*ant/ and as linen (as al(ays either a $uro+ean, or at
farthest, an $*y+tian manufa)ture, this hi*h +ri)e )an &e
a))ounted for only &y the *reat e1+ense of the la&our (hi)h must
ha'e &een em+loyed a&out it, and the e1+ense of this la&our a*ain
)ould arise from nothin* &ut the a(0(ardness of the ma)hinery
(hi)h it made use of- The +ri)e of fine (oollens too, thou*h not
quite so e1tra'a*ant, seems ho(e'er to ha'e &een mu)h a&o'e that
of the +resent times- Some )loths, (e are told &y liny, dyed in
a +arti)ular manner, )ost a hundred denarii, or three +ounds si1
shillin*s and ei*ht+en)e the +ound (ei*ht- Others dyed in another
manner )ost a thousand denarii the +ound (ei*ht, or thirty8three
+ounds si1 shillin*s and ei*ht+en)e- The Roman +ound, it must &e
remem&ered, )ontained only t(el'e of our a'oirdu+ois oun)es- This
hi*h +ri)e, indeed, seems to ha'e &een +rin)i+ally o(in* to the
dye- .ut had not the )loths themsel'es &een mu)h dearer than any
(hi)h are made in the +resent times, so 'ery e1+ensi'e a dye
(ould not +ro&a&ly ha'e &een &esto(ed u+on them- The
dis+ro+ortion (ould ha'e &een too *reat &et(een the 'alue of the
a))essory and that of the +rin)i+al- The +ri)e mentioned &y the
same author of some Tri)linaria, a sort of (oollen +illo(s or
)ushions made use of to lean u+on as they re)lined u+on their
)ou)hes at ta&le, +asses all )redi&ility/ some of them &ein* said
to ha'e )ost more than thirty thousand, others more than three
hundred thousand +ounds- This hi*h +ri)e, too, is not said to
ha'e arisen from the dye- In the dress of the +eo+le of fashion
of &oth se1es there seems to ha'e &een mu)h less 'ariety, it is
o&ser'ed &y Do)tor Ar&uthnot, in an)ient than in modern times/
and the 'ery little 'ariety (hi)h (e find in that of the an)ient
statues )onfirms his o&ser'ation- #e infers from this that their
dress must u+on the (hole ha'e &een )hea+er than ours/ &ut the
)on)lusion does not seem to follo(- When the e1+ense of
fashiona&le dress is 'ery *reat, the 'ariety must &e 'ery small-
.ut (hen, &y the im+ro'ements in the +rodu)ti'e +o(ers of
manufa)turin* art and industry, the e1+ense of any one dress
)omes to &e 'ery moderate, the 'ariety (ill naturally &e 'ery
*reat- The ri)h, not &ein* a&le to distin*uish themsel'es &y the
e1+ense of any one dress, (ill naturally endea'our to do so &y
the multitude and 'ariety of their dresses-
The *reatest and most im+ortant &ran)h of the )ommer)e of
e'ery nation, it has already &een o&ser'ed, is that (hi)h is
)arried on &et(een the inha&itants of the to(n and those of the
)ountry- The inha&itants of the to(n dra( from the )ountry the
rude +rodu)e (hi)h )onstitutes &oth the materials of their (or0
and the fund of their su&sisten)e/ and they +ay for this rude
+rodu)e &y sendin* &a)0 to the )ountry a )ertain +ortion of it
manufa)tured and +re+ared for immediate use- The trade (hi)h is
)arried on &et(een these t(o different sets of +eo+le )onsists
ultimately in a )ertain quantity of rude +rodu)e e1)han*ed for a
)ertain quantity of manufa)tured +rodu)e- The dearer the latter,
therefore, the )hea+er the former/ and (hate'er tends in any
)ountry to raise the +ri)e of manufa)tured +rodu)e tends to lo(er
that of the rude +rodu)e of the land, and there&y to dis)oura*e
a*ri)ulture- The smaller the quantity of manufa)tured +rodu)e
(hi)h in any *i'en quantity of rude +rodu)e, or, (hat )omes to
the same thin*, (hi)h the +ri)e of any *i'en quantity of rude
+rodu)e is )a+a&le of +ur)hasin*, the smaller the e1)han*ea&le
'alue of that *i'en quantity of rude +rodu)e, the smaller the
en)oura*ement (hi)h either the landlord has to in)rease its
quantity &y im+ro'in* or the farmer &y )ulti'atin* the land-
Whate'er, &esides, tends to diminish in any )ountry the num&er of
artifi)ers and manufa)turers, tends to diminish the home mar0et,
the most im+ortant of all mar0ets for the rude +rodu)e of the
land, and there&y still further to dis)oura*e a*ri)ulture-
Those systems, therefore, (hi)h, +referrin* a*ri)ulture to
all other em+loyments, in order to +romote it, im+ose restraints
u+on manufa)tures and forei*n trade, a)t )ontrary to the 'ery end
(hi)h they +ro+ose, and indire)tly dis)oura*e that 'ery s+e)ies
of industry (hi)h they mean to +romote- They are so far, +erha+s,
more in)onsistent than e'en the mer)antile system- That system,
&y en)oura*in* manufa)tures and forei*n trade more than
a*ri)ulture, turns a )ertain +ortion of the )a+ital of the
so)iety from su++ortin* a more ad'anta*eous, to su++ort a less
ad'anta*eous s+e)ies of industry- .ut still it really and in the
end en)oura*es that s+e)ies of industry (hi)h it means to
+romote- Those a*ri)ultural systems, on the )ontrary, really and
in the end dis)oura*e their o(n fa'ourite s+e)ies of industry-
It is thus that e'ery system (hi)h endea'ours, either &y
e1traordinary en)oura*ements to dra( to(ards a +arti)ular s+e)ies
of industry a *reater share of the )a+ital of the so)iety than
(hat (ould naturally *o to it, or, &y e1traordinary restraints,
for)e from a +arti)ular s+e)ies of industry some share of the
)a+ital (hi)h (ould other(ise &e em+loyed in it, is in reality
su&'ersi'e of the *reat +ur+ose (hi)h it means to +romote- It
retards, instead of a))eleratin*, the +ro*ress of the so)iety
to(ards real (ealth and *reatness/ and diminishes, instead of
in)reasin*, the real 'alue of the annual +rodu)e of its land and
la&our-
All systems either of +referen)e or of restraint, therefore,
&ein* thus )om+letely ta0en a(ay, the o&'ious and sim+le system
of natural li&erty esta&lishes itself of its o(n a))ord- $'ery
man, as lon* as he does not 'iolate the la(s of 2usti)e, is left
+erfe)tly free to +ursue his o(n interest his o(n (ay, and to
&rin* &oth his industry and )a+ital into )om+etition (ith those
of any other man, or order of men- The so'erei*n is )om+letely
dis)har*ed from a duty, in the attem+tin* to +erform (hi)h he
must al(ays &e e1+osed to innumera&le delusions, and for the
+ro+er +erforman)e of (hi)h no human (isdom or 0no(led*e )ould
e'er &e suffi)ient/ the duty of su+erintendin* the industry of
+ri'ate +eo+le, and of dire)tin* it to(ards the em+loyments most
suita&le to the interest of the so)iety- A))ordin* to the system
of natural li&erty, the so'erei*n has only three duties to attend
to/ three duties of *reat im+ortan)e, indeed, &ut +lain and
intelli*i&le to )ommon understandin*s3 first, the duty of
+rote)tin* the so)iety from 'iolen)e and in'asion of other
inde+endent so)ieties/ se)ondly, the duty of +rote)tin*, as far
as +ossi&le, e'ery mem&er of the so)iety from the in2usti)e or
o++ression of e'ery other mem&er of it, or the duty of
esta&lishin* an e1a)t administration of 2usti)e/ and, thirdly,
the duty of ere)tin* and maintainin* )ertain +u&li) (or0s and
)ertain +u&li) institutions (hi)h it )an ne'er &e for the
interest of any indi'idual, or small num&er of indi'iduals, to
ere)t and maintain/ &e)ause the +rofit )ould ne'er re+ay the
e1+ense to any indi'idual or small num&er of indi'iduals, thou*h
it may frequently do mu)h more than re+ay it to a *reat so)iety-
The +ro+er +erforman)e of those se'eral duties of the
so'erei*n ne)essarily su++oses a )ertain e1+ense/ and this
e1+ense a*ain ne)essarily requires a )ertain re'enue to su++ort
it- In the follo(in* &oo0, therefore, I shall endea'our to
e1+lain, first, (hat are the ne)essary e1+enses of the so'erei*n
or )ommon(ealth/ and (hi)h of those e1+enses ou*ht to &e defrayed
&y the *eneral )ontri&ution of the (hole so)iety/ and (hi)h of
them &y that of some +arti)ular +art only, or of some +arti)ular
mem&ers of the so)iety/ se)ondly, (hat are the different methods
in (hi)h the (hole so)iety may &e made to )ontri&ute to(ards
defrayin* the e1+enses in)um&ent on the (hole so)iety, and (hat
are the +rin)i+al ad'anta*es and in)on'enien)es of ea)h of those
methods/ and thirdly, (hat are the reasons and )auses (hi)h ha'e
indu)ed almost all modern *o'ernments to mort*a*e some +art of this re'enue, or to )ontra)t
de&ts, and (hat ha'e &een the effe)ts of those de&ts u+on the real (ealth, the annual +rodu)e of
the land and la&our of the so)iety- The follo(in* &oo0, therefore,
(ill naturally &e di'ided into three )ha+ters-

.OO% "I5$
O" T#$ R$5$NU$ O" T#$ SO5$R$I6N OR CO44ONW$A!T#
C#AT$R I
Of the $1+enses of the So'erei*n or Common(ealth
ART 1
Of the $1+ense of Defen)e
T#$ first duty of the so'erei*n, that of +rote)tin* the
so)iety from the 'iolen)e and in'asion of other inde+endent
so)ieties, )an &e +erformed only &y means of a military for)e-
.ut the e1+ense &oth of +re+arin* this military for)e in time of
+ea)e, and of em+loyin* it in time of (ar, is 'ery different in
the different states of so)iety, in the different +eriods of
im+ro'ement-
Amon* nations of hunters, the lo(est and rudest state of
so)iety, su)h as (e find it amon* the nati'e tri&es of North
Ameri)a, e'ery man is a (arrior as (ell as a hunter- When he *oes
to (ar, either to defend his so)iety or to re'en*e the in2uries
(hi)h ha'e &een done to it &y other so)ieties, he maintains
himself &y his o(n la&our in the same manner as (hen he li'es at
home- #is so)iety, for in this state of thin*s there is +ro+erly
neither so'erei*n nor )ommon(ealth, is at no sort of e1+ense,
either to +re+are him for the field, or to maintain him (hile he
is in it-
Amon* nations of she+herds, a more ad'an)ed state of
so)iety, su)h as (e find it amon* the Tartars and Ara&s, e'ery
man is, in the same manner, a (arrior- Su)h nations ha'e )ommonly
no fi1ed ha&itation, &ut li'e either in tents or in a sort of
)o'ered (a**ons (hi)h are easily trans+orted from +la)e to +la)e-
The (hole tri&e or nation )han*es its situation a))ordin* to the
different seasons of the year, as (ell as a))ordin* to other
a))idents- When its herds and flo)0s ha'e )onsumed the fora*e of
one +art of the )ountry, it remo'es to another, and from that to
a third- In the dry season it )omes do(n to the &an0s of the
ri'ers/ in the (et season it retires to the u++er )ountry- When
su)h a nation *oes to (ar, the (arriors (ill not trust their
herds and flo)0s to the fee&le defen)e of their old men, their
(omen and )hildren/ and their old men, their (omen and )hildren,
(ill not &e left &ehind (ithout defen)e and (ithout su&sisten)e-
The (hole nation, &esides, &ein* a))ustomed to a (anderin* life,
e'en in time of +ea)e, easily ta0es the field in time of (ar-
Whether it mar)hes as an army, or mo'es a&out as a )om+any of
herdsmen, the (ay of life is nearly the same, thou*h the o&2e)t
+ro+osed &y it &e 'ery different- They all *o to (ar to*ether,
therefore, and e'ery one does as (ell as he )an- Amon* the
Tartars, e'en the (omen ha'e &een frequently 0no(n to en*a*e in
&attle- If they )onquer, (hate'er &elon*s to the hostile tri&e is
the re)om+ense of the 'i)tory- .ut if they are 'anquished, all is
lost, and not only their herds and flo)0s, &ut their (omen and
)hildren, &e)ome the &ooty of the )onqueror- $'en the *reater
+art of those (ho sur'i'e the a)tion are o&li*ed to su&mit to him
for the sa0e of immediate su&sisten)e- The rest are )ommonly
dissi+ated and dis+ersed in the desert-
The ordinary life, the ordinary e1er)ises of a Tartar or
Ara&, +re+are him suffi)iently for (ar- Runnin*, (restlin*,
)ud*el8+layin*, thro(in* the 2a'elin, dra(in* the &o(, et)-, are
the )ommon +astimes of those (ho li'e in the o+en air, and are
all of them the ima*es of (ar- When a Tartar or Ara& a)tually
*oes to (ar, he is maintained &y his o(n herds and flo)0s (hi)h
he )arries (ith him in the same manner as in +ea)e- #is )hief or
so'erei*n, for those nations ha'e all )hiefs or so'erei*ns, is at
no sort of e1+ense in +re+arin* him for the field/ and (hen he is
in it the )han)e of +lunder is the only +ay (hi)h he either
e1+e)ts or requires-
An army of hunters )an seldom e1)eed t(o or three hundred
men- The +re)arious su&sisten)e (hi)h the )hase affords )ould
seldom allo( a *reater num&er to 0ee+ to*ether for any
)onsidera&le time- An army of she+herds, on the )ontrary, may
sometimes amount to t(o or three hundred thousand- As lon* as
nothin* sto+s their +ro*ress, as lon* as they )an *o on from one
distri)t, of (hi)h they ha'e )onsumed the fora*e, to another
(hi)h is yet entire, there seems to &e s)ar)e any limit to the
num&er (ho )an mar)h on to*ether- A nation of hunters )an ne'er
&e formida&le to the )i'ilised nations in their nei*h&ourhood- A
nation of she+herds may- Nothin* )an &e more )ontem+ti&le than an
Indian (ar in North Ameri)a- Nothin*, on the )ontrary, )an &e
more dreadful than Tartar in'asion has frequently &een in Asia-
The 2ud*ment of Thu)ydides, that &oth $uro+e and Asia )ould not
resist the S)ythians united, has &een 'erified &y the e1+erien)e
of all a*es- The inha&itants of the e1tensi'e &ut defen)eless
+lains of S)ythia or Tartary ha'e &een frequently united under
the dominion of the )hief of some )onquerin* horde or )lan, and
the ha'o) and de'astation of Asia ha'e al(ays si*nali;ed their
union- The inha&itants of the inhos+ita&le deserts of Ara&ia, the
other *reat nation of she+herds, ha'e ne'er &een united &ut on)e/
under 4ahomet and his immediate su))essors- Their union, (hi)h
(as more the effe)t of reli*ious enthusiasm than of )onquest, (as
si*nali;ed in the same manner- If the huntin* nations of Ameri)a
should e'er &e)ome she+herds, their nei*h&ourhood (ould &e mu)h
more dan*erous to the $uro+ean )olonies than it is at +resent-
In a yet more ad'an)ed state of so)iety, amon* those nations
of hus&andmen (ho ha'e little forei*n )ommer)e, and no other
manufa)tures &ut those )oarse and household ones (hi)h almost
e'ery +ri'ate family +re+ares for its o(n use, e'ery man, in the
same manner, either is a (arrior or easily &e)omes su)h- They (ho
li'e &y a*ri)ulture *enerally +ass the (hole day in the o+en air,
e1+osed to all the in)lemen)ies of the seasons- The hardiness of
their ordinary life +re+ares them for the fati*ues of (ar, to
some of (hi)h their ne)essary o))u+ations &ear a *reat analo*y-
The ne)essary o))u+ation of a dit)her +re+ares him to (or0 in the
tren)hes, and to fortify a )am+ as (ell as to en)lose a field-
The ordinary +astimes of su)h hus&andmen are the same as those of
she+herds, and are in the same manner the ima*es of (ar- .ut as
hus&andmen ha'e less leisure than she+herds, they are not so
frequently em+loyed in those +astimes- They are soldiers, &ut
soldiers not quite so mu)h masters of their e1er)ise- Su)h as
they are, ho(e'er, it seldom )osts the so'erei*n or )ommon(ealth
any e1+ense to +re+are them for the field-
A*ri)ulture, e'en in its rudest and lo(est state, su++oses a
settlement3 some sort of fi1ed ha&itation (hi)h )annot &e
a&andoned (ithout *reat loss- When a nation of mere hus&andmen,
therefore, *oes to (ar, the (hole +eo+le )annot ta0e the field
to*ether- The old men, the (omen and )hildren, at least, must
remain at home to ta0e )are of the ha&itation- All the men of the
military a*e, ho(e'er, may ta0e the field, and, in small nations
of this 0ind, ha'e frequently done so- In e'ery nation the men of
the military a*e are su++osed to amount to a&out a fourth or a
fifth +art of the (hole &ody of the +eo+le- If the )am+ai*n,
should &e*in after seed8time, and end &efore har'est, &oth the
hus&andman and his +rin)i+al la&ourers )an &e s+ared from the
farm (ithout mu)h loss- #e trusts that the (or0 (hi)h must &e
done in the meantime )an &e (ell enou*h e1e)uted &y the old men,
the (omen, and the )hildren- #e is not un(illin*, therefore, to
ser'e (ithout +ay durin* a short )am+ai*n, and it frequently
)osts the so'erei*n or )ommon(ealth as little to maintain him in
the field as to +re+are him for it- The )iti;ens of all the
different states of an)ient 6ree)e seem to ha'e ser'ed in this
manner till after the se)ond ersian (ar/ and the +eo+le of
elo+onnesus till after the elo+onnesian (ar- The
elo+onnesians, Thu)ydides o&ser'es, *enerally left the field in
the summer, and returned home to rea+ the har'est- The Roman
+eo+le under their 0in*s, and durin* the first a*es of the
re+u&li), ser'ed in the same manner- It (as not till the sie*e of
5eii that they (ho stayed at home &e*an to )ontri&ute somethin*
to(ards maintainin* those (ho (ent to (ar- In the $uro+ean
monar)hies, (hi)h (ere founded u+on the ruins of the Roman
em+ire, &oth &efore and for some time after the esta&lishment of
(hat is +ro+erly )alled the feudal la(, the *reat lords, (ith all
their immediate de+endents, used to ser'e the )ro(n at their o(n
e1+ense- In the field, in the same manner as at home, they
maintained themsel'es &y their o(n re'enue, and not &y any
sti+end or +ay (hi)h they re)ei'ed from the 0in* u+on that
+arti)ular o))asion-
In a more ad'an)ed state of so)iety, t(o different )auses
)ontri&ute to render it alto*ether im+ossi&le that they (ho ta0e
the field should maintain themsel'es at their o(n e1+ense- Those
t(o )auses are, the +ro*ress of manufa)tures, and the im+ro'ement
in the art of (ar-
Thou*h a hus&andman should &e em+loyed in an e1+edition,
+ro'ided it &e*ins after seed8time and ends &efore har'est, the
interru+tion of his &usiness (ill not al(ays o))asion any
)onsidera&le diminution of his re'enue- Without the inter'ention
of his la&our, nature does herself the *reater +art of the (or0
(hi)h remains to &e done- .ut the moment that an artifi)er, a
smith, a )ar+enter, or a (ea'er, for e1am+le, quits his
(or0house, the sole sour)e of his re'enue is )om+letely dried u+-
Nature does nothin* for him, he does all for himself- When he
ta0es the field, therefore, in defen)e of the +u&li), as he has
no re'enue to maintain himself, he must ne)essarily &e maintained
&y the +u&li)- .ut in a )ountry of (hi)h a *reat +art of the
inha&itants are artifi)ers and manufa)turers, a *reat +art of the
+eo+le (ho *o to (ar must &e dra(n from those )lasses, and must
therefore &e maintained &y the +u&li) as lon* as they are
em+loyed in its ser'i)e-
When the art of (ar, too, has *radually *ro(n u+ to &e a
'ery intri)ate and )om+li)ated s)ien)e, (hen the e'ent of (ar
)eases to &e determined, as in the first a*es of so)iety, &y a
sin*le irre*ular s0irmish or &attle, &ut (hen the )ontest is
*enerally s+un out throu*h se'eral different )am+ai*ns, ea)h of
(hi)h lasts durin* the *reater +art of the year, it &e)omes
uni'ersally ne)essary that the +u&li) should maintain those (ho
ser'e the +u&li) in (ar, at least (hile they are em+loyed in that
ser'i)e- Whate'er in time of +ea)e mi*ht &e the ordinary
o))u+ation of those (ho *o to (ar, so 'ery tedious and e1+ensi'e
a ser'i)e (ould other(ise &e far too hea'y a &urden u+on them-
After the se)ond ersian (ar, a))ordin*ly, the armies of Athens
seem to ha'e &een *enerally )om+osed of mer)enary troo+s,
)onsistin*, indeed, +artly of )iti;ens, &ut +artly too of
forei*ners, and all of them equally hired and +aid at the e1+ense
of the state- "rom the time of the sie*e of 5eii, the armies of
Rome re)ei'ed +ay for their ser'i)e durin* the time (hi)h they
remained in the field- Under the feudal *o'ernments the military
ser'i)e &oth of the *reat lords and of their immediate de+endants
(as, after a )ertain +eriod, uni'ersally e1)han*ed for a +ayment
in money, (hi)h (as em+loyed to maintain those (ho ser'ed in
their stead-
The num&er of those (ho )an *o to (ar, in +ro+ortion to the
(hole num&er of the +eo+le, is ne)essarily mu)h smaller in a
)i'ilised than in a rude state of so)iety- In a )i'ilised
so)iety, as the soldiers are maintained alto*ether &y the la&our
of those (ho are not soldiers, the num&er of the former )an ne'er
e1)eed (hat the latter )an maintain, o'er and a&o'e maintainin*,
in a manner suita&le to their res+e)ti'e stations, &oth
themsel'es and the other offi)ers of *o'ernment and la( (hom they
are o&li*ed to maintain- In the little a*rarian states of an)ient
6ree)e, a fourth or a fifth +art of the (hole &ody of the +eo+le
)onsidered themsel'es as soldiers, and (ould sometimes, it is
said, ta0e a field- Amon* the )i'ilised nations of modern $uro+e,
it is )ommonly )om+uted that not more than one8hundredth +art of
the inha&itants in any )ountry )an &e em+loyed as soldiers
(ithout ruin to the )ountry (hi)h +ays the e1+enses of their
ser'i)e-
The e1+ense of +re+arin* the army for the field seems not to
ha'e &e)ome )onsidera&le in any nation till lon* after that of
maintainin* it in the field had de'ol'ed entirely u+on the
so'erei*n or )ommon(ealth- In all the different re+u&li)s of
an)ient 6ree)e, to learn his military e1er)ises (as a ne)essary
+art of edu)ation im+osed &y the state u+on e'ery free )iti;en-
In e'ery )ity there seems to ha'e &een a +u&li) field, in (hi)h,
under the +rote)tion of the +u&li) ma*istrate, the youn* +eo+le
(ere tau*ht their different e1er)ises &y different masters- In
this 'ery sim+le institution )onsisted the (hole e1+ense (hi)h
any 6re)ian state seems e'er to ha'e &een at in +re+arin* its
)iti;ens for (ar- In an)ient Rome the e1er)ises of the Cam+us
4artius ans(ered the same +ur+ose (ith those of the 6ymnasium in
an)ient 6ree)e- Under the feudal *o'ernments, the many +u&li)
ordinan)es that the )iti;ens of e'ery distri)t should +ra)tise
ar)hery as (ell as se'eral other military e1er)ises (ere intended
for +romotin* the same +ur+ose, &ut do not seem to ha'e +romoted
it so (ell- $ither from (ant of interest in the offi)ers
entrusted (ith the e1e)ution of those ordinan)es, or from some
other )ause, they a++ear to ha'e &een uni'ersally ne*le)ted/ and
in the +ro*ress of all those *o'ernments, military e1er)ises seem
to ha'e *one *radually into disuse amon* the *reat &ody of the
+eo+le-
In the re+u&li)s of an)ient 6ree)e and Rome, durin* the
(hole +eriod of their e1isten)e, and under the feudal *o'ernments
for a )onsidera&le time after their first esta&lishment, the
trade of a soldier (as not a se+arate, distin)t trade, (hi)h
)onstituted the sole or +rin)i+al o))u+ation of a +arti)ular
)lass of )iti;ens- $'ery su&2e)t of the state, (hate'er mi*ht &e
the ordinary trade or o))u+ation &y (hi)h he *ained his
li'elihood, )onsidered himself, u+on all ordinary o))asions, as
fit li0e(ise to e1er)ise the trade of a soldier, and u+on many
e1traordinary o))asions as &ound to e1er)ise it-
The art of (ar, ho(e'er, as it is )ertainly the no&lest of
all arts, so in the +ro*ress of im+ro'ement it ne)essarily
&e)omes one of the most )om+li)ated amon* them- The state of the
me)hani)al, as (ell as of some other arts, (ith (hi)h it is
ne)essarily )onne)ted, determines the de*ree of +erfe)tion to
(hi)h it is )a+a&le of &ein* )arried at any +arti)ular time- .ut
in order to )arry it to this de*ree of +erfe)tion, it is
ne)essary that it should &e)ome the sole or +rin)i+al o))u+ation
of a +arti)ular )lass of )iti;ens, and the di'ision of la&our is
as ne)essary for the im+ro'ement of this, as of e'ery other art-
Into other arts the di'ision of la&our is naturally introdu)ed &y
the +ruden)e of indi'iduals, (ho find that they +romote their
+ri'ate interest &etter &y )onfinin* themsel'es to a +arti)ular
trade than &y e1er)isin* a *reat num&er- .ut it is the (isdom of
the state only (hi)h )an render the trade of a soldier a
+arti)ular trade se+arate and distin)t from all others- A +ri'ate
)iti;en (ho, in time of +rofound +ea)e, and (ithout any
+arti)ular en)oura*ement from the +u&li), should s+end the
*reater +art of his time in military e1er)ises, mi*ht, no dou&t,
&oth im+ro'e himself 'ery mu)h in them, and amuse himself 'ery
(ell/ &ut he )ertainly (ould not +romote his o(n interest- It is
the (isdom of the state only (hi)h )an render it for his interest
to *i'e u+ the *reater +art of his time to this +e)uliar
o))u+ation3 and states ha'e not al(ays had this (isdom, e'en (hen
their )ir)umstan)es had &e)ome su)h that the +reser'ation of
their e1isten)e required that they should ha'e it-
A she+herd has a *reat deal of leisure/ a hus&andman, in the
rude state of hus&andry, has some/ an artifi)er or manufa)turer
has none at all- The first may, (ithout any loss, em+loy a *reat
deal of his time in martial e1er)ises/ the se)ond may em+loy some
+art of it/ &ut the last )annot em+loy a sin*le hour in them
(ithout some loss, and his attention to his o(n interest
naturally leads him to ne*le)t them alto*ether- These
im+ro'ements in hus&andry too, (hi)h the +ro*ress of arts and
manufa)tures ne)essarily introdu)es, lea'e the hus&andman as
little leisure as the artifi)er- 4ilitary e1er)ises )ome to &e as
mu)h ne*le)ted &y the inha&itants of the )ountry as &y those of
the to(n, and the *reat &ody of the +eo+le &e)omes alto*ether
un(arli0e- That (ealth, at the same time, (hi)h al(ays follo(s
the im+ro'ements of a*ri)ulture and manufa)tures, and (hi)h in
reality is no more than the a))umulated +rodu)e of those
im+ro'ements, +ro'o0es the in'asion of all their nei*h&ours- An
industrious, and u+on that a))ount a (ealthy nation, is of all
nations the most li0ely to &e atta)0ed/ and unless the state
ta0es some ne( measures for the +u&li) defen)e, the natural
ha&its of the +eo+le render them alto*ether in)a+a&le of
defendin* themsel'es-
In these )ir)umstan)es there seem to &e &ut t(o methods &y
(hi)h the state )an ma0e any tolera&le +ro'ision for the +u&li)
defen)e-
It may either, first, &y means of a 'ery ri*orous +oli)e,
and in s+ite of the (hole &ent of the interest, *enius, and
in)linations of the +eo+le, enfor)e the +ra)ti)e of military
e1er)ises, and o&li*e either all the )iti;ens of the military
a*e, or a )ertain num&er of them, to 2oin in some measure the
trade of a soldier to (hate'er other trade or +rofession they may
ha++en to )arry on-
Or, se)ondly, &y maintainin* and em+loyin* a )ertain num&er
of )iti;ens in the )onstant +ra)ti)e of military e1er)ises, it
may render the trade of a soldier a +arti)ular trade, se+arate
and distin)t from all others-
If the state has re)ourse to the first of those t(o
e1+edients, its military for)e is said to )onsist in a militia/
if to the se)ond, it is said to )onsist in a standin* army- The
+ra)ti)e of military e1er)ises is the sole or +rin)i+al
o))u+ation of the soldiers of a standin* army, and the
maintenan)e or +ay (hi)h the state affords them is the +rin)i+al
and ordinary fund of their su&sisten)e- The +ra)ti)e of military
e1er)ises is only the o))asional o))u+ation of the soldiers of a
militia, and they deri'e the +rin)i+al and ordinary fund of their
su&sisten)e from some other o))u+ation- In a militia, the
)hara)ter of the la&ourer, artifi)er, or tradesman, +redominates
o'er that of the soldier/ in a standin* army, that of the soldier
+redominates o'er e'ery other )hara)ter3 and in this distin)tion
seems to )onsist the essential differen)e &et(een those t(o
different s+e)ies of military for)e-
4ilitias ha'e &een of se'eral different 0inds- In some
)ountries the )iti;ens destined for defendin* the states seem to
ha'e &een e1er)ised only, (ithout &ein*, if I may say so,
re*imented/ that is, (ithout &ein* di'ided into se+arate and
distin)t &odies of troo+s, ea)h of (hi)h +erformed its e1er)ises
under its o(n +ro+er and +ermanent offi)ers- In the re+u&li)s of
an)ient 6ree)e and Rome, ea)h )iti;en, as lon* as he remained at
home, seems to ha'e +ra)tised his e1er)ises either se+arately and
inde+endently, or (ith su)h of his equals as he li0ed &est, and
not to ha'e &een atta)hed to any +arti)ular &ody of troo+s till
he (as a)tually )alled u+on to ta0e the field- In other
)ountries, the militia has not only &een e1er)ised, &ut
re*imented- In $n*land, in S(it;erland, and, I &elie'e, in e'ery
other )ountry of modern $uro+e (here any im+erfe)t military for)e
of this 0ind has &een esta&lished, e'ery militiaman is, e'en in
time of +ea)e, atta)hed to a +arti)ular &ody of troo+s, (hi)h
+erforms its e1er)ises under its o(n +ro+er and +ermanent
offi)ers-
.efore the in'ention of firearms, that army (as su+erior in
(hi)h the soldiers had, ea)h indi'idually, the *reatest s0ill and
de1terity in the use of their arms- Stren*th and a*ility of &ody
(ere of the hi*hest )onsequen)e, and )ommonly determined the
state of &attles- .ut this s0ill and de1terity in the use of
their arms )ould &e a)quired only, in the same manner as fen)in*
is at +resent, &y +ra)tisin*, not in *reat &odies, &ut ea)h man
se+arately, in a +arti)ular s)hool, under a +arti)ular master, or
(ith his o(n +arti)ular equals and )om+anions- Sin)e the
in'ention of firearms, stren*th and a*ility of &ody, or e'en
e1traordinary de1terity and s0ill in the use of arms, thou*h they
are far from &ein* of no )onsequen)e, are, ho(e'er, of less
)onsequen)e- The nature of the (ea+on, thou*h it &y no means +uts
the a(0(ard u+on a le'el (ith the s0ilful, +uts him more nearly
so than he e'er (as &efore- All the de1terity and s0ill, it is
su++osed, (hi)h are ne)essary for usin* it, )an &e (ell enou*h
a)quired &y +ra)tisin* in *reat &odies-
Re*ularity, order, and +rom+t o&edien)e to )ommand are
qualities (hi)h, in modern armies, are of more im+ortan)e to(ards
determinin* the fate of &attles than the de1terity and s0ill of
the soldiers in the use of their arms- .ut the noise of firearms,
the smo0e, and the in'isi&le death to (hi)h e'ery man feels
himself e'ery moment e1+osed as soon as he )omes (ithin
)annon8shot, and frequently a lon* time &efore the &attle )an &e
(ell said to &e en*a*ed, must render it 'ery diffi)ult to
maintain any )onsidera&le de*ree of this re*ularity, order, and
+rom+t o&edien)e, e'en in the &e*innin* of a modern &attle- In an
an)ient &attle there (as no noise &ut (hat arose from the human
'oi)e/ there (as no smo0e, there (as no in'isi&le )ause of (ounds
or death- $'ery man, till some mortal (ea+on a)tually did
a++roa)h him, sa( )learly that no su)h (ea+on (as near him- In
these )ir)umstan)es, and amon* troo+s (ho had some )onfiden)e in
their o(n s0ill and de1terity in the use of their arms, it must
ha'e &een a *ood deal less diffi)ult to +reser'e some de*ree
re*ularity and order, not only in the &e*innin*, &ut throu*h the
(hole +ro*ress of an an)ient &attle, and till one of the t(o
armies (as fairly defeated- .ut the ha&its of re*ularity, order,
and +rom+t o&edien)e to )ommand )an &e a)quired only &y troo+s
(hi)h are e1er)ised in *reat &odies-
A militia, ho(e'er, in (hate'er manner it may &e either
dis)i+lined or e1er)ised, must al(ays &e mu)h inferior to a
(ell8dis)i+lined and (ell8e1er)ised standin* army-
The soldiers (ho are e1er)ised only on)e a (ee0, or on)e a
month, )an ne'er &e so e1+ert in the use of their arms as those
(ho are e1er)ised e'ery day, or e'ery other day/ and thou*h this
)ir)umstan)e may not &e of so mu)h )onsequen)e in modern as it
(as in an)ient times, yet the a)0no(led*ed su+eriority of the
russian troo+s, o(in*, it is said, 'ery mu)h to their su+erior
e1+ertness in their e1er)ise, may satisfy us that it is, e'en at
this day, of 'ery )onsidera&le )onsequen)e-
The soldiers (ho are &ound to o&ey their offi)er only on)e a
(ee0 or on)e a month, and (ho are at all other times at li&erty
to mana*e their o(n affairs their o(n (ay, (ithout &ein* in any
res+e)t a))ounta&le to him, )an ne'er &e under the same a(e in
his +resen)e, )an ne'er ha'e the same dis+osition to ready
o&edien)e, (ith those (hose (hole life and )ondu)t are e'ery day
dire)ted &y him, and (ho e'ery day e'en rise and *o to &ed, or at
least retire to their quarters, a))ordin* to his orders- In (hat
is )alled dis)i+line, or in the ha&it of ready o&edien)e, a
militia must al(ays &e still more inferior to a standin* army
than it may sometimes &e in (hat is )alled the manual e1er)ise,
or in the mana*ement and use of its arms- .ut in modern (ar the
ha&it of ready and instant o&edien)e is of mu)h *reater
)onsequen)e than a )onsidera&le su+eriority in the mana*ement of
arms-
Those militias (hi)h, li0e the Tartar or Ara& militia, *o to
(ar under the same )hieftains (hom they are a))ustomed to o&ey in
+ea)e are &y far the &est- In res+e)t for their offi)ers, in the
ha&it of ready o&edien)e, they a++roa)h nearest to standin*
armies- The hi*hland militia, (hen it ser'ed under its o(n
)hieftains, had some ad'anta*e of the same 0ind- As the
hi*hlanders, ho(e'er, (ere not (anderin*, &ut stationary
she+herds, as they had all a fi1ed ha&itation, and (ere not, in
+ea)ea&le times, a))ustomed to follo( their )hieftain from +la)e
to +la)e, so in time of (ar they (ere less (illin* to follo( him
to any )onsidera&le distan)e, or to )ontinue for any lon* time in
the field- When they had a)quired any &ooty they (ere ea*er to
return home, and his authority (as seldom suffi)ient to detain
them- In +oint of o&edien)e they (ere al(ays mu)h inferior to
(hat is re+orted of the Tartars and Ara&s- As the hi*hlanders
too, from their stationary life, s+end less of their time in the
o+en air, they (ere al(ays less a))ustomed to military e1er)ises,
and (ere less e1+ert in the use of their arms than the Tartars
and Ara&s are said to &e-
A militia of any 0ind, it must &e o&ser'ed, ho(e'er, (hi)h
has ser'ed for se'eral su))essi'e )am+ai*ns in the field, &e)omes
in e'ery res+e)t a standin* army- The soldiers are e'ery day
e1er)ised in the use of their arms, and, &ein* )onstantly under
the )ommand of their offi)ers, are ha&ituated to the same +rom+t
o&edien)e (hi)h ta0es +la)e in standin* armies- What they (ere
&efore they too0 the field is of little im+ortan)e- They
ne)essarily &e)ome in e'ery res+e)t a standin* army after they
ha'e +assed a fe( )am+ai*ns in it- Should the (ar in Ameri)a dra*
out throu*h another )am+ai*n, the Ameri)an militia may &e)ome in
e'ery res+e)t a mat)h for that standin* army of (hi)h the 'alour
a++eared, in the last (ar, at least not inferior to that of the
hardiest 'eterans of "ran)e and S+ain-
This distin)tion &ein* (ell understood, the history of all
a*es, it (ill &e found, &ears testimony to the irresisti&le
su+eriority (hi)h a (ell8re*ulated standin* army has o'er a
militia-
One of the first standin* armies of (hi)h (e ha'e any
distin)t a))ount, in any (ell authenti)ated history, is that of
hili+ of 4a)edon- #is frequent (ars (ith the Thra)ians,
Illyrians, Thessalians, and some of the 6ree0 )ities in the
nei*h&ourhood of 4a)edon, *radually formed his troo+s, (hi)h in
the &e*innin* (ere +ro&a&ly militia, to the e1a)t dis)i+line of a
standin* army- When he (as at +ea)e, (hi)h he (as 'ery seldom,
and ne'er for any lon* time to*ether, he (as )areful not to
dis&and that army- It 'anquished and su&dued, after a lon* and
'iolent stru**le, indeed, the *allant and (ell e1er)ised militias
of the +rin)i+al re+u&li)s of an)ient 6ree)e, and after(ards,
(ith 'ery little stru**le, the effeminate and ill8e1er)ised
militia of the *reat ersian em+ire- The fall of the 6ree0
re+u&li)s and of the ersian em+ire (as the effe)t of the
irresisti&le su+eriority (hi)h a standin* army has o'er e'ery
sort of militia- It is the first *reat re'olution in the affairs
of man0ind of (hi)h history has +reser'ed any distin)t or
)ir)umstantial a))ount-
The fall of Cartha*e, and the )onsequent ele'ation of Rome,
is the se)ond- All the 'arieties in the fortune of those t(o
famous re+u&li)s may 'ery (ell &e a))ounted for from the same
)ause-
"rom the end of the first to the &e*innin* of the se)ond
Cartha*inian (ar the armies of Cartha*e (ere )ontinually in the
field, and em+loyed under three *reat *enerals, (ho su))eeded one
another in the )ommand3 #amil)ar, his son8in8la( #asdru&al, and
his son #anni&al/ first in )hastisin* their o(n re&ellious
sla'es, after(ards in su&duin* the re'olted nations of Afri)a,
and, lastly, in )onquerin* the *reat 0in*dom of S+ain- The army
(hi)h #anni&al led from S+ain into Italy must ne)essarily, in
those different (ars, ha'e &een *radually formed to the e1a)t
dis)i+line of a standin* army- The Romans, in the meantime,
thou*h they had not &een alto*ether at +ea)e, yet they had not,
durin* this +eriod, &een en*a*ed in any (ar of 'ery *reat
)onsequen)e, and their military dis)i+line, it is *enerally said,
(as a *ood deal rela1ed- The Roman armies (hi)h #anni&al
en)ountered at Tre&ia, Thrasymenus, and Cannae (ere militia
o++osed to a standin* army- This )ir)umstan)e, it is +ro&a&le,
)ontri&uted more than any other to determine the fate of those
&attles-
The standin* army (hi)h #anni&al left &ehind him in S+ain
had the li0e su+eriority o'er the militia (hi)h the Romans sent
to o++ose it, and in a fe( years, under the )ommand of his
&rother, the youn*er #asdru&al, e1+elled them almost entirely
from that )ountry-
#anni&al (as ill su++lied from home- The Roman militia,
&ein* )ontinually in the field, &e)ame in the +ro*ress of the (ar
a (ell dis)i+lined and (ell8e1er)ised standin* army, and the
su+eriority of #anni&al *re( e'ery day less and less- #asdru&al
2ud*ed it ne)essary to lead the (hole, or almost the (hole of the
standin* army (hi)h he )ommanded in S+ain, to the assistan)e of
his &rother in Italy- In this mar)h he is said to ha'e &een
misled &y his *uides, and in a )ountry (hi)h he did not 0no(, (as
sur+rised and atta)0ed &y another standin* army, in e'ery res+e)t
equal or su+erior to his o(n, and (as entirely defeated-
When #asdru&al had left S+ain, the *reat S)i+io found
nothin* to o++ose him &ut a militia inferior to his o(n- #e
)onquered and su&dued that militia, and, in the )ourse of the
(ar, his o(n militia ne)essarily &e)ame a (ell8dis)i+lined and
(ell8e1er)ised standin* army- That standin* army (as after(ards
)arried to Afri)a, (here it found nothin* &ut a militia to o++ose
it- In order to defend Cartha*e it &e)ame ne)essary to re)all the
standin* army of #anni&al- The disheartened and frequently
defeated Afri)an militia 2oined it, and, at the &attle of Mama,
)om+osed the *reater +art of the troo+s of #anni&al- The e'ent of
that day determined the fate of the t(o ri'al re+u&li)s-
"rom the end of the se)ond Cartha*inian (ar till the fall of
the Roman re+u&li), the armies of Rome (ere in e'ery res+e)t
standin* armies- The standin* army of 4a)edon made some
resistan)e to their arms- In the hei*ht of their *randeur it )ost
them t(o *reat (ars, and three *reat &attles, to su&due that
little 0in*dom, of (hi)h the )onquest (ould +ro&a&ly ha'e &een
still more diffi)ult had it not &een for the )o(ardi)e of its
last 0in*- The militias of all the )i'ilised nations of the
an)ient (orld, of 6ree)e, of Syria, and of $*y+t, made &ut a
fee&le resistan)e to the standin* armies of Rome- The militias of
some &ar&arous nations defended themsel'es mu)h &etter- The
S)ythian or Tartar militia, (hi)h 4ithridates dre( from the
)ountries north of the $u1ine and Cas+ian seas, (ere the most
formida&le enemies (hom the Romans had to en)ounter after the
se)ond Cartha*inian (ar- The arthian and 6erman militias, too,
(ere al(ays res+e)ta&le, and u+on se'eral o))asions *ained 'ery
)onsidera&le ad'anta*es o'er the Roman armies- In *eneral,
ho(e'er, and (hen the Roman armies (ere (ell )ommanded, they
a++ear to ha'e &een 'ery mu)h su+erior/ and if the Romans did not
+ursue the final )onquest either of arthia or 6ermany, it (as
+ro&a&ly &e)ause they 2ud*ed that it (as not (orth (hile to add
those t(o &ar&arous )ountries to an em+ire (hi)h (as already too
lar*e- The an)ient arthians a++ear to ha'e &een a nation of
S)ythian or Tartar e1tra)tion, and to ha'e al(ays retained a *ood
deal of the manners of their an)estors- The an)ient 6ermans (ere,
li0e the S)ythians or Tartars, a nation of (anderin* she+herds,
(ho (ent to (ar under the same )hiefs (hom they (ere a))ustomed
to follo( in +ea)e- Their militia (as e1a)tly of the same 0ind
(ith that of the S)ythians or Tartars, from (hom, too, they (ere
+ro&a&ly des)ended-
4any different )auses )ontri&uted to rela1 the dis)i+line of
the Roman armies- Its e1treme se'erity (as, +erha+s, one of those
)auses- In the days of their *randeur, (hen no enemy a++eared
)a+a&le of o++osin* them, their hea'y armour (as laid aside as
unne)essarily &urdensome, their la&ourious e1er)ises (ere
ne*le)ted as unne)essarily toilsome- Under the Roman em+erors,
&esides, the standin* armies of Rome, those +arti)ularly (hi)h
*uarded the 6erman and annonian frontiers, &e)ame dan*erous to
their masters, a*ainst (hom they used frequently to set u+ their
o(n *enerals- In order to render them less formida&le, a))ordin*
to some authors, Dio)lesian, a))ordin* to others, Constantine,
first (ithdre( them from the frontier, (here they had al(ays
&efore &een en)am+ed in *reat &odies, *enerally of t(o or three
le*ions ea)h, and dis+ersed them in small &odies throu*h the
different +ro'in)ial to(ns, from (hen)e they (ere s)ar)e e'er
remo'ed &ut (hen it &e)ame ne)essary to re+el an in'asion- Small
&odies of soldiers quartered, in tradin* and manufa)turin* to(ns,
and seldom remo'ed from those quarters, &e)ame themsel'es
tradesmen, artifi)ers, and manufa)turers- The )i'il )ame to
+redominate o'er the military )hara)ter, and the standin* armies
of Rome *radually de*enerated into a )orru+t, ne*le)ted, and
undis)i+lined militia, in)a+a&le of resistin* the atta)0 of the
6erman and S)ythian militias, (hi)h soon after(ards in'aded the
(estern em+ire- It (as only &y hirin* the militia of some of
those nations to o++ose to that of others that the em+erors (ere
for some time a&le to defend themsel'es- The fall of the (estern
em+ire is the third *reat re'olution in the affairs of man0ind of
(hi)h an)ient history has +reser'ed any distin)t or
)ir)umstantial a))ount- It (as &rou*ht a&out &y the irresisti&le
su+eriority (hi)h the militia of a &ar&arous has o'er that of a
)i'ilised nation/ (hi)h the militia of a nation of she+herds has
o'er that of a nation of hus&andmen, artifi)ers, and
manufa)turers- The 'i)tories (hi)h ha'e &een *ained &y militias
ha'e *enerally &een, not o'er standin* armies, &ut o'er other
militias in e1er)ise and dis)i+line inferior to themsel'es- Su)h
(ere the 'i)tories (hi)h the 6ree0 militia *ained o'er that of
the ersian em+ire/ and su)h too (ere those (hi)h in later times
the S(iss militia *ained o'er that of the Austrians and
.ur*undians-
The military for)e of the 6erman and S)ythian nations (ho
esta&lished themsel'es u+on the ruins of the (estern em+ire
)ontinued for some time to &e of the same 0ind in their ne(
settlements as it had &een in their ori*inal )ountry- It (as a
militia of she+herds and hus&andmen, (hi)h, in time of (ar, too0
the field under the )ommand of the same )hieftains (hom it (as
a))ustomed to o&ey in +ea)e- It (as, therefore, tolera&ly (ell
e1er)ised, and tolera&ly (ell dis)i+lined- As arts and industry
ad'an)ed, ho(e'er, the authority of the )hieftains *radually
de)ayed, and the *reat &ody of the +eo+le had less time to s+are
for military e1er)ises- .oth the dis)i+line and the e1er)ise of
the feudal militia, therefore, (ent *radually to ruin, and
standin* armies (ere *radually introdu)ed to su++ly the +la)e of
it- When the e1+edient of a standin* army, &esides, had on)e &een
ado+ted &y one )i'ilised nation, it &e)ame ne)essary that all its
nei*h&ours should follo( their e1am+le- They soon found that
their safety de+ended u+on their doin* so, and that their o(n
militia (as alto*ether in)a+a&le of resistin* the atta)0 of su)h
an army-
The soldiers of a standin* army, thou*h they may ne'er ha'e
seen an enemy, yet ha'e frequently a++eared to +ossess all the
)oura*e of 'eteran troo+s and the 'ery moment that they too0 the
field to ha'e &een fit to fa)e the hardiest and most e1+erien)ed
'eterans- In 17H6, (hen the Russian army mar)hed into oland, the
'alour of the Russian soldiers did not a++ear inferior to that of
the russians, at that time su++osed to &e the hardiest and most
e1+erien)ed 'eterans in $uro+e- The Russian em+ire, ho(e'er, had
en2oyed a +rofound +ea)e for near t(enty years &efore, and )ould
at that time ha'e 'ery fe( soldiers (ho had e'er seen an enemy-
When the S+anish (ar &ro0e out in 17BF, $n*land had en2oyed a
+rofound +ea)e for a&out ei*ht8and8t(enty years- The 'alour of
her soldiers, ho(e'er, far from &ein* )orru+ted &y that lon*
+ea)e, (as ne'er more distin*uished than in the attem+t u+on
Cartha*ena, the first unfortunate e1+loit of that unfortunate
(ar- In a lon* +ea)e the *enerals, +erha+s, may sometimes for*et
their s0ill/ &ut, (here a (ell8re*ulated standin* army has &een
0e+t u+, the soldiers seem ne'er to for*et their 'alour-
When a )i'ilised nation de+ends for its defen)e u+on a
militia, it is at all times e1+osed to &e )onquered &y any
&ar&arous nation (hi)h ha++ens to &e in its nei*h&ourhood- The
frequent )onquests of all the )i'ilised )ountries in Asia &y the
Tartars suffi)iently demonstrates the natural su+eriority (hi)h
the militia of a &ar&arous has o'er that of a )i'ilised nation- A
(ell8re*ulated standin* army is su+erior to e'ery militia- Su)h
an army, as it )an &est &e maintained &y an o+ulent and )i'ilised
nation, so it )an alone defend su)h a nation a*ainst the in'asion
of a +oor and &ar&arous nei*h&our- It is only &y means of a
standin* army, therefore, that the )i'ili;ation of any )ountry
)an &e +er+etuated, or e'en +reser'ed for any )onsidera&le time-
As it is only &y means of a (ell8re*ulated standin* army
that a )i'ilised )ountry )an &e defended, so it is only &y means
of it that a &ar&arous )ountry )an &e suddenly and tolera&ly
)i'ilised- A standin* army esta&lishes, (ith an irresisti&le
for)e, the la( of the so'erei*n throu*h the remotest +ro'in)es of
the em+ire, and maintains some de*ree of re*ular *o'ernment in
)ountries (hi)h )ould not other(ise admit of any- Whoe'er
e1amines, (ith attention, the im+ro'ements (hi)h eter the 6reat
introdu)ed into the Russian em+ire, (ill find that they almost
all resol'e themsel'es into the esta&lishment of a (ell re*ulated
standin* army- It is the instrument (hi)h e1e)utes and maintains
all his other re*ulations- That de*ree of order and internal
+ea)e (hi)h that em+ire has e'er sin)e en2oyed is alto*ether
o(in* to the influen)e of that army-
4en of re+u&li)an +rin)i+les ha'e &een 2ealous of a standin*
army as dan*erous to li&erty- It )ertainly is so (here'er the
interest of the *eneral and that of the +rin)i+al offi)ers are
not ne)essarily )onne)ted (ith the su++ort of the )onstitution of
the state- The standin* army of Caesar destroyed the Roman
re+u&li)- The standin* army of Crom(ell turned the !on*
arliament out of doors- .ut (here the so'erei*n is himself the
*eneral, and the +rin)i+al no&ility and *entry of the )ountry the
)hief offi)ers of the army, (here the military for)e is +la)ed
under the )ommand of those (ho ha'e the *reatest interest in the
su++ort of the )i'il authority, &e)ause they ha'e themsel'es the
*reatest share of that authority, a standin* army )an ne'er &e
dan*erous to li&erty- On the )ontrary, it may in some )ases &e
fa'oura&le to li&erty- The se)urity (hi)h it *i'es to the
so'erei*n renders unne)essary that trou&lesome 2ealousy, (hi)h,
in some modern re+u&li)s, seems to (at)h o'er the minutest
a)tions, and to &e at all times ready to distur& the +ea)e of
e'ery )iti;en- Where the se)urity of the ma*istrate, thou*h
su++orted &y the +rin)i+al +eo+le of the )ountry, is endan*ered
&y e'ery +o+ular dis)ontent/ (here a small tumult is )a+a&le of
&rin*in* a&out in a fe( hours a *reat re'olution, the (hole
authority of *o'ernment must &e em+loyed to su++ress and +unish
e'ery murmur and )om+laint a*ainst it- To a so'erei*n, on the
)ontrary, (ho feels himself su++orted, not only &y the natural
aristo)ra)y of the )ountry, &ut &y a (ell8re*ulated standin*
army, the rudest, the most *roundless, and the most li)entious
remonstran)es )an *i'e little distur&an)e- #e )an safely +ardon
or ne*le)t them, and his )ons)iousness of his o(n su+eriority
naturally dis+oses him to do so- That de*ree of li&erty (hi)h
a++roa)hes to li)entiousness )an &e tolerated only in )ountries
(here the so'erei*n is se)ured &y a (ell8re*ulated standin* army-
It is in su)h )ountries only that the +u&li) safety does not
require that the so'erei*n should &e trusted (ith any
dis)retionary +o(er for su++ressin* e'en the im+ertinent
(antonness of this li)entious li&erty-
The first duty of the so'erei*n, therefore, that of
defendin* the so)iety from the 'iolen)e and in2usti)e of other
inde+endent so)ieties, *ro(s *radually more and more e1+ensi'e as
the so)iety ad'an)es in )i'ili;ation- The military for)e of the
so)iety, (hi)h ori*inally )ost the so'erei*n no e1+ense either in
time of +ea)e or in time of (ar, must, in the +ro*ress of
im+ro'ement, first &e maintained &y him in time of (ar, and
after(ards e'en in time of +ea)e-
The *reat )han*e introdu)ed into the art of (ar &y the
in'ention of firearms has enhan)ed still further &oth the e1+ense
of e1er)isin* and dis)i+linin* any +arti)ular num&er of soldiers
in time of +ea)e, and that of em+loyin* them in time of (ar- .oth
their arms and their ammunition are &e)ome more e1+ensi'e- A
mus0et is a more e1+ensi'e ma)hine than a 2a'elin or a &o( and
arro(s/ a )annon or a mortar than a &alista or a )ata+ulta- The
+o(der (hi)h is s+ent in a modern re'ie( is lost irre)o'era&ly,
and o))asions a 'ery )onsidera&le e1+ense- The 2a'eline and
arro(s (hi)h (ere thro(n or shot in an an)ient one )ould easily
&e +i)0ed u+ a*ain, and (ere &esides of 'ery little 'alue- The
)annon and the mortar are not only mu)h dearer, &ut mu)h hea'ier
ma)hines than the &alista or )ata+ulta, and require a *reater
e1+ense, not only to +re+are them for the field, &ut to )arry
them to it- As the su+eriority of the modern artillery too o'er
that of the an)ients is 'ery *reat, it has &e)ome mu)h more
diffi)ult, and )onsequently mu)h more e1+ensi'e, to fortify a
to(n so as to resist e'en for a fe( (ee0s the atta)0 of that
su+erior artillery- In modern times many different )auses
)ontri&ute to render the defen)e of the so)iety more e1+ensi'e-
The una'oida&le effe)ts of the natural +ro*ress of im+ro'ement
ha'e, in this res+e)t, &een a *ood deal enhan)ed &y a *reat
re'olution in the art of (ar, to (hi)h a mere a))ident, the
in'ention of *un+o(der, seems to ha'e *i'en o))asion-
In modern (ar the *reat e1+ense of firearms *i'es an e'ident
ad'anta*e to the nation (hi)h )an &est afford that e1+ense, and
)onsequently to an o+ulent and )i'ilised o'er a +oor and
&ar&arous nation- In an)ient times the o+ulent and )i'ilised
found it diffi)ult to defend themsel'es a*ainst the +oor and
&ar&arous nations- In modern times the +oor and &ar&arous find it
diffi)ult to defend themsel'es a*ainst the o+ulent and )i'ilised-
The in'ention of firearms, an in'ention (hi)h at first si*ht
a++ears to &e so +erni)ious, is )ertainly fa'oura&le &oth to the
+ermanen)y and to the e1tension of )i'ili;ation-
ART E
Of the $1+ense of Austi)e
T#$ se)ond duty of the so'erei*n, that of +rote)tin*, as far
as +ossi&le, e'ery mem&er of the so)iety from the in2usti)e or
o++ression of e'ery other mem&er of it, or the duty of
esta&lishin* an e1a)t administration of 2usti)e, requires, too,
'ery different de*rees of e1+ense in the different +eriods of
so)iety-
Amon* nations of hunters, as there is s)ar)e any +ro+erty,
or at least none that e1)eeds the 'alue of t(o or three days=
la&our, so there is seldom any esta&lished ma*istrate or any
re*ular administration of 2usti)e- 4en (ho ha'e no +ro+erty )an
in2ure one another only in their +ersons or re+utations- .ut (hen
one man 0ills, (ounds, &eats, or defames another, thou*h he to
(hom the in2ury is done suffers, he (ho does it re)ei'es no
&enefit- It is other(ise (ith the in2uries to +ro+erty- The
&enefit of the +erson (ho does the in2ury is often equal to the
loss of him (ho suffers it- $n'y, mali)e, or resentment are the
only +assions (hi)h )an +rom+t one man to in2ure another in his
+erson or re+utation- .ut the *reater +art of men are not 'ery
frequently under the influen)e of those +assions, and the 'ery
(orst of men are so only o))asionally- As their *ratifi)ation
too, ho( a*reea&le soe'er it may &e to )ertain )hara)ters, is not
attended (ith any real or +ermanent ad'anta*e, it is in the
*reater +art of men )ommonly restrained &y +rudential
)onsiderations- 4en may li'e to*ether in so)iety (ith some
tolera&le de*ree of se)urity, thou*h there is no )i'il ma*istrate
to +rote)t them from the in2usti)e of those +assions- .ut a'ari)e
and am&ition in the ri)h, in the +oor the hatred of la&our and
the lo'e of +resent ease and en2oyment, are the +assions (hi)h
+rom+t to in'ade +ro+erty, +assions mu)h more steady in their
o+eration, and mu)h more uni'ersal in their influen)e- Where'er
there is *reat +ro+erty there is *reat inequality- "or one 'ery
ri)h man there must &e at least fi'e hundred +oor, and the
affluen)e of the fe( su++oses the indi*en)e of the many- The
affluen)e of the ri)h e1)ites the indi*nation of the +oor, (ho
are often &oth dri'en &y (ant, and +rom+ted &y en'y, to in'ade
his +ossessions- It is only under the shelter of the )i'il
ma*istrate that the o(ner of that 'alua&le +ro+erty, (hi)h is
a)quired &y the la&our of many years, or +erha+s of many
su))essi'e *enerations, )an slee+ a sin*le ni*ht in se)urity- #e
is at all times surrounded &y un0no(n enemies, (hom, thou*h he
ne'er +ro'o0ed, he )an ne'er a++ease, and from (hose in2usti)e he
)an &e +rote)ted only &y the +o(erful arm of the )i'il ma*istrate
)ontinually held u+ to )hastise it- The a)quisition of 'alua&le
and e1tensi'e +ro+erty, therefore, ne)essarily requires the
esta&lishment of )i'il *o'ernment- Where there is no +ro+erty, or
at least none that e1)eeds the 'alue of t(o or three days=
la&our, )i'il *o'ernment is not so ne)essary-
Ci'il *o'ernment su++oses a )ertain su&ordination- .ut as
the ne)essity of )i'il *o'ernment *radually *ro(s u+ (ith the
a)quisition of 'alua&le +ro+erty, so the +rin)i+al )auses (hi)h
naturally introdu)e su&ordination *radually *ro( u+ (ith the
*ro(th of that 'alua&le +ro+erty-
The )auses or )ir)umstan)es (hi)h naturally introdu)e
su&ordination, or (hi)h naturally, and ante)edent to any )i'il
institution, *i'e some men some su+eriority o'er the *reater +art
of their &rethren, seem to &e four in num&er-
The first of those )auses or )ir)umstan)es is the
su+eriority of +ersonal qualifi)ations, of stren*th, &eauty, and
a*ility of &ody/ of (isdom and 'irtue, of +ruden)e, 2usti)e,
fortitude, and moderation of mind- The qualifi)ations of the
&ody, unless su++orted &y those of the mind, )an *i'e little
authority in any +eriod of so)iety- #e is a 'ery stron* man, (ho,
&y mere stren*th of &ody, )an for)e t(o (ea0 ones to o&ey him-
The qualifi)ations of the mind )an alone *i'e a 'ery *reat
authority- They are, ho(e'er, in'isi&le qualities/ al(ays
dis+uta&le, and *enerally dis+uted- No so)iety, (hether &ar&arous
or )i'ilised, has e'er found it )on'enient to settle the rules of
+re)eden)y of ran0 and su&ordination a))ordin* to those in'isi&le
qualities/ &ut a))ordin* to somethin* that is more +lain and
+al+a&le-
The se)ond of those )auses or )ir)umstan)es is the
su+eriority of a*e- An old man, +ro'ided his a*e is not so far
ad'an)ed as to *i'e sus+i)ion of dota*e, is e'ery(here more
res+e)ted than a youn* man of equal ran0, fortune, and a&ilities-
Amon* nations of hunters, su)h as the nati'e tri&es of North
Ameri)a, a*e is the sole foundation of ran0 and +re)eden)y- Amon*
them, father is the a++ellation of a su+erior/ &rother, of an
equal/ and son, of an inferior- In the most o+ulent and )i'ilised
nations, a*e re*ulates ran0 amon* those (ho are in e'ery other
res+e)t equal, and amon* (hom, therefore, there is nothin* else
to re*ulate it- Amon* &rothers and amon* sisters, the eldest
al(ays ta0es +la)e/ and in the su))ession of the +aternal estate
e'erythin* (hi)h )annot &e di'ided, &ut must *o entire to one
+erson, su)h as a title of honour, is in most )ases *i'en to the
eldest- A*e is a +lain and +al+a&le quality (hi)h admits of no
dis+ute-
The third of those )auses or )ir)umstan)es is the
su+eriority of fortune- The authority of ri)hes, ho(e'er, thou*h
*reat in e'ery a*e of so)iety, is +erha+s *reatest in the rudest
a*e of so)iety (hi)h admits of any )onsidera&le inequality of
fortune- A Tartar )hief, the in)rease of (hose herds and sto)0s
is suffi)ient to maintain a thousand men, )annot (ell em+loy that
in)rease in any other (ay than in maintainin* a thousand men- The
rude state of his so)iety does not afford him any manufa)tured
+rodu)e, any trin0ets or &au&les of any 0ind, for (hi)h he )an
e1)han*e that +art of his rude +rodu)e (hi)h is o'er and a&o'e
his o(n )onsum+tion- The thousand men (hom he thus maintains,
de+endin* entirely u+on him for their su&sisten)e, must &oth o&ey
his orders in (ar, and su&mit to his 2urisdi)tion in +ea)e- #e is
ne)essarily &oth their *eneral and their 2ud*e, and his
)hieftainshi+ is the ne)essary effe)t of the su+eriority of his
fortune- In an o+ulent and )i'ilised so)iety, a man may +ossess a
mu)h *reater fortune and yet not &e a&le to )ommand a do;en
+eo+le- Thou*h the +rodu)e of his estate may &e suffi)ient to
maintain, and may +erha+s a)tually maintain, more than a thousand
+eo+le, yet as those +eo+le +ay for e'erythin* (hi)h they *et
from him, as he *i'es s)ar)e anythin* to any&ody &ut in e1)han*e
for an equi'alent, there is s)ar)e any&ody (ho )onsiders himself
as entirely de+endent u+on him, and his authority e1tends only
o'er a fe( menial ser'ants- The authority of fortune, ho(e'er, is
'ery *reat e'en in an o+ulent and )i'ilised so)iety- That it is
mu)h *reater than that either of a*e or of +ersonal qualities has
&een the )onstant )om+laint of e'ery +eriod of so)iety (hi)h
admitted of any )onsidera&le inequality of fortune- The first
+eriod of so)iety, that of hunters, admits of no su)h inequality-
Uni'ersal +o'erty esta&lishes their uni'ersal equality, and the
su+eriority either of a*e or of +ersonal qualities are the fee&le
&ut the sole foundations of authority and su&ordination- There is
therefore little or no authority or su&ordination in this +eriod
of so)iety- The se)ond +eriod of so)iety, that of she+herds,
admits of 'ery *reat inequalities of fortune, and there is no
+eriod in (hi)h the su+eriority of fortune *i'es so *reat
authority to those (ho +ossess it- There is no +eriod a))ordin*ly
in (hi)h authority and su&ordination are more +erfe)tly
esta&lished- The authority of an Ara&ian sherif is 'ery *reat/
that of a Tartar 0han alto*ether des+oti)al-
The fourth of those )auses or )ir)umstan)es is the
su+eriority of &irth- Su+eriority of &irth su++oses an an)ient
su+eriority of fortune in the family of the +erson (ho )laims it-
All families are equally an)ient/ and the an)estors of the
+rin)e, thou*h they may &e &etter 0no(n, )annot (ell &e more
numerous than those of the &e**ar- Antiquity of family means
e'ery(here the antiquity either of (ealth, or of that *reatness
(hi)h is )ommonly either founded u+on (ealth, or a))om+anied (ith
it- U+start *reatness is e'ery(here less res+e)ted than an)ient
*reatness- The hatred of usur+ers, the lo'e of the family of an
an)ient monar)h, are, in a *reat measure, founded u+on the
)ontem+t (hi)h men naturally ha'e for the former, and u+on their
'eneration for the latter- As a military offi)er su&mits (ithout
relu)tan)e to the authority of a su+erior &y (hom he has al(ays
&een )ommanded, &ut )annot &ear that his inferior should &e set
o'er his head, so men easily su&mit to a family to (hom they and
their an)estors ha'e al(ays su&mitted/ &ut are fired (ith
indi*nation (hen another family, in (hom they had ne'er
a)0no(led*ed any su)h su+eriority, assumes a dominion o'er them-
The distin)tion of &irth, &ein* su&sequent to the inequality
of fortune, )an ha'e no +la)e in nations of hunters, amon* (hom
all men, &ein* equal in fortune, must li0e(ise &e 'ery nearly
equal in &irth- The son of a (ise and &ra'e man may, indeed, e'en
amon* them, &e some(hat more res+e)ted than a man of equal merit
(ho has the misfortune to &e the son of a fool or a )o(ard- The
differen)e, ho(e'er, (ill not &e 'ery *reat/ and there ne'er (as,
I &elie'e, a *reat family in the (orld (hose illustration (as
entirely deri'ed from the inheritan)e of (isdom and 'irtue-
The distin)tion of &irth not only may, &ut al(ays does ta0e
+la)e amon* nations of she+herds- Su)h nations are al(ays
stran*ers to e'ery sort of lu1ury, and *reat (ealth )an s)ar)e
e'er &e dissi+ated amon* them &y im+ro'ident +rofusion- There are
no nations a))ordin*ly (ho a&ound more in families re'ered and
honoured on a))ount of their des)ent from a lon* ra)e of *reat
and illustrious an)estors, &e)ause there are no nations amon*
(hom (ealth is li0ely to )ontinue lon*er in the same families-
.irth and fortune are e'idently the t(o )ir)umstan)es (hi)h
+rin)i+ally set one man a&o'e another- They are the t(o *reat
sour)es of +ersonal distin)tion, and are therefore the +rin)i+al
)auses (hi)h naturally esta&lish authority and su&ordination
amon* men- Amon* nations of she+herds &oth those )auses o+erate
(ith their full for)e- The *reat she+herd or herdsman, res+e)ted
on a))ount of his *reat (ealth, and of the *reat num&er of those
(ho de+end u+on him for su&sisten)e, and re'ered on a))ount of
the no&leness of his &irth, and of the immemorial antiquity of
his illustrious family, has a natural authority o'er all the
inferior she+herds or herdsmen of his horde or )lan- #e )an
)ommand the united for)e of a *reater num&er of +eo+le than any
of them- #is military +o(er is *reater than that of any of them-
In time of (ar they are all of them naturally dis+osed to muster
themsel'es under his &anner, rather than under that of any other
+erson, and his &irth and fortune thus naturally +ro)ure to him
some sort of e1e)uti'e +o(er- .y )ommandin*, too, the united
for)e of a *reater num&er of +eo+le than any of them, he is &est
a&le to )om+el any one of them (ho may ha'e in2ured another to
)om+ensate the (ron*- #e is the +erson, therefore, to (hom all
those (ho are too (ea0 to defend themsel'es naturally loo0 u+ for
+rote)tion- It is to him that they naturally )om+lain of the
in2uries (hi)h they ima*ine ha'e &een done to them, and his
inter+osition in su)h )ases is more easily su&mitted to, e'en &y
the +erson )om+lained of, than that of any other +erson (ould &e-
#is &irth and fortune thus naturally +ro)ure him some sort of
2udi)ial authority-
It is in the a*e of she+herds, in the se)ond +eriod of
so)iety, that the inequality of fortune first &e*ins to ta0e
+la)e, and introdu)es amon* men a de*ree of authority and
su&ordination (hi)h )ould not +ossi&ly e1ist &efore- It there&y
introdu)es some de*ree of that )i'il *o'ernment (hi)h is
indis+ensa&ly ne)essary for its o(n +reser'ation3 and it seems to
do this naturally, and e'en inde+endent of the )onsideration of
that ne)essity- The )onsideration of that ne)essity )omes no
dou&t after(ards to )ontri&ute 'ery mu)h to maintain and se)ure
that authority and su&ordination- The ri)h, in +arti)ular, are
ne)essarily interested to su++ort that order of thin*s (hi)h )an
alone se)ure them in the +ossession of their o(n ad'anta*es- 4en
of inferior (ealth )om&ine to defend those of su+erior (ealth in
the +ossession of their +ro+erty, in order that men of su+erior
(ealth may )om&ine to defend them in the +ossession of theirs-
All the inferior she+herds and herdsmen feel that the se)urity of
their o(n herds and flo)0s de+ends u+on the se)urity of those of
the *reat she+herd or herdsman/ that the maintenan)e of their
lesser authority de+ends u+on that of his *reater authority, and
that u+on their su&ordination to him de+ends his +o(er of 0ee+in*
their inferiors in su&ordination to them- They )onstitute a sort
of little no&ility, (ho feel themsel'es interested to defend the
+ro+erty and to su++ort the authority of their o(n little
so'erei*n in order that he may &e a&le to defend their +ro+erty
and to su++ort their authority- Ci'il *o'ernment, so far as it is
instituted for the se)urity of +ro+erty, is in reality instituted
for the defen)e of the ri)h a*ainst the +oor, or of those (ho
ha'e some +ro+erty a*ainst those (ho ha'e none at all-
The 2udi)ial authority of su)h a so'erei*n, ho(e'er, far
from &ein* a )ause of e1+ense, (as for a lon* time a sour)e of
re'enue to him- The +ersons (ho a++lied to him for 2usti)e (ere
al(ays (illin* to +ay for it, and a +resent ne'er failed to
a))om+any a +etition- After the authority of the so'erei*n, too,
(as thorou*hly esta&lished, the +erson found *uilty, o'er and
a&o'e the satisfa)tion (hi)h he (as o&li*ed to ma0e to the +arty,
(as li0e(ise for)ed to +ay an amer)ement to the so'erei*n- #e had
*i'en trou&le, he had distur&ed, he had &ro0e the +ea)e of his
lord the 0in*, and for those offen)es an amer)ement (as thou*ht
due- In the Tartar *o'ernments of Asia, in the *o'ernments of
$uro+e (hi)h (ere founded &y the 6erman and S)ythian nations (ho
o'erturned the Roman em+ire, the administration of 2usti)e (as a
)onsidera&le sour)e of re'enue, &oth to the so'erei*n and to all
the lesser )hiefs or lords (ho e1er)ised under him any +arti)ular
2urisdi)tion, either o'er some +arti)ular tri&e or )lan, or o'er
some +arti)ular territory or distri)t- Ori*inally &oth the
so'erei*n and the inferior )hiefs used to e1er)ise this
2urisdi)tion in their o(n +ersons- After(ards they uni'ersally
found it )on'enient to dele*ate it to some su&stitute, &ailiff,
or 2ud*e- This su&stitute, ho(e'er, (as still o&li*ed to a))ount
to his +rin)i+al or )onstituent for the +rofits of the
2urisdi)tion- Whoe'er reads the instru)tions (hi)h (ere *i'en to
the 2ud*es of the )ir)uit in the time of #enry II (ill see
)learly that those 2ud*es (ere a sort of itinerant fa)tors, sent
round the )ountry for the +ur+ose of le'yin* )ertain &ran)hes of
the 0in*=s re'enue- In those days the administration of 2usti)e
not only afforded a )ertain re'enue to the so'erei*n, &ut to
+ro)ure this re'enue seems to ha'e &een one of the +rin)i+al
ad'anta*es (hi)h he +ro+osed to o&tain &y the administration of
2usti)e-
This s)heme of ma0in* the administration of 2usti)e
su&ser'ient to the +ur+oses of re'enue )ould s)ar)e fail to &e
+rodu)ti'e of se'eral 'ery *ross a&uses- The +erson (ho a++lied
for 2usti)e (ith a lar*e +resent in his hand (as li0ely to *et
somethin* more than 2usti)e/ (hile he (ho a++lied for it (ith a
small one (as li0ely to *et somethin* less- Austi)e, too, mi*ht
frequently &e delayed in order that this +resent mi*ht &e
re+eated- The amer)ement, &esides, of the +erson )om+lained of,
mi*ht frequently su**est a 'ery stron* reason for findin* him in
the (ron*, e'en (hen he had not really &een so- That su)h a&uses
(ere far from &ein* un)ommon the an)ient history of e'ery )ountry
in $uro+e &ears (itness-
When the so'erei*n or )hief e1er)ised his 2udi)ial authority
in his o(n +erson, ho( mu)h soe'er he mi*ht a&use it, it must
ha'e &een s)ar)e +ossi&le to *et any redress, &e)ause there )ould
seldom &e any&ody +o(erful enou*h to )all him to a))ount- When he
e1er)ised it &y a &ailiff, indeed, redress mi*ht sometimes &e
had- If it (as for his o(n &enefit only that the &ailiff had &een
*uilty of any a)t of in2usti)e, the so'erei*n himself mi*ht not
al(ays &e un(illin* to +unish him, or to o&li*e him to re+air the
(ron*- .ut if it (as for the &enefit of his so'erei*n, if it (as
in order to ma0e )ourt to the +erson (ho a++ointed him and (ho
mi*ht +refer him, that he had )ommitted any a)t of o++ression,
redress (ould u+on most o))asions &e as im+ossi&le as if the
so'erei*n had )ommitted it himself- In all &ar&arous *o'ernments,
a))ordin*ly, in all those an)ient *o'ernments of $uro+e in
+arti)ular (hi)h (ere founded u+on the ruins of the Roman em+ire,
the administration of 2usti)e a++ears for a lon* time to ha'e
&een e1tremely )orru+t, far from &ein* quite equal and im+artial
e'en under the &est monar)hs, and alto*ether +rofli*ate under the
(orst-
Amon* nations of she+herds, (here the so'erei*n or )hief is
only the *reatest she+herd or herdsman of the horde or )lan, he
is maintained in the same manner as any of his 'assals or
su&2e)ts, &y the in)rease of his o(n herds or flo)0s- Amon* those
nations of hus&andmen (ho are &ut 2ust )ome out of the she+herd
state, and (ho are not mu)h ad'an)ed &eyond that state, su)h as
the 6ree0 tri&es a++ear to ha'e &een a&out the time of the Tro2an
(ar, and our 6erman and S)ythian an)estors (hen they first
settled u+on the ruins of the (estern em+ire, the so'erei*n or
)hief is, in the same manner, only the *reatest landlord of the
)ountry, and is maintained, in the same manner as any other
landlord, &y a re'enue deri'ed from his o(n +ri'ate estate, or
from (hat, in modern $uro+e, (as )alled the demesne of the )ro(n-
#is su&2e)ts, u+on ordinary o))asions, )ontri&uted nothin* to his
su++ort, e1)e+t (hen, in order to +rote)t them from the
o++ression of some of their fello(8su&2e)ts, they stand in need
of his authority- The +resents (hi)h they ma0e him u+on su)h
o))asions )onstitute the (hole ordinary re'enue, the (hole of the
emoluments (hi)h, e1)e+t +erha+s u+on some 'ery e1traordinary
emer*en)ies, he deri'es from his dominion o'er them- When
A*amemnon, in #omer, offers to A)hilles for his friendshi+ the
so'erei*nty of se'en 6ree0 )ities, the sole ad'anta*e (hi)h he
mentions as li0ely to &e deri'ed from it (as that the +eo+le
(ould honour him (ith +resents- As lon* as su)h +resents, as lon*
as the emoluments of 2usti)e, or (hat may &e )alled the fees of
)ourt, )onstituted in this manner the (hole ordinary re'enue
(hi)h the so'erei*n deri'ed from his so'erei*nty, it )ould not
(ell &e e1+e)ted, it )ould not e'en de)ently &e +ro+osed, that he
should *i'e them u+ alto*ether- It mi*ht, and it frequently (as
+ro+osed, that he should re*ulate and as)ertain them- .ut after
they had &een so re*ulated and as)ertained, ho( to hinder a
+erson (ho (as all8+o(erful from e1tendin* them &eyond those
re*ulations (as still 'ery diffi)ult, not to say im+ossi&le-
Durin* the )ontinuan)e of this state of thin*s, therefore, the
)orru+tion of 2usti)e, naturally resultin* from the ar&itrary and
un)ertain nature of those +resents, s)ar)e admitted of any
effe)tual remedy-
.ut (hen from different )auses, )hiefly from the )ontinually
in)reasin* e1+enses of defendin* the nation a*ainst the in'asion
of other nations, the +ri'ate estate of the so'erei*n had &e)ome
alto*ether insuffi)ient for defrayin* the e1+ense of the
so'erei*nty, and (hen it had &e)ome ne)essary that the +eo+le
should, for their o(n se)urity, )ontri&ute to(ards this e1+ense
&y ta1es of different 0inds, it seems to ha'e &een 'ery )ommonly
sti+ulated that no +resent for the administration of 2usti)e
should, under any +reten)e, &e a))e+ted either &y the so'erei*n,
or &y his &ailiffs and su&stitutes, the 2ud*es- Those +resents,
it seems to ha'e &een su++osed, )ould more easily &e a&olished
alto*ether than effe)tually re*ulated and as)ertained- "i1ed
salaries (ere a++ointed to the 2ud*es, (hi)h (ere su++osed to
)om+ensate to them the loss of (hate'er mi*ht ha'e &een their
share of the an)ient emoluments of 2usti)e, as the ta1es more
than )om+ensated to the so'erei*n the loss of his- Austi)e (as
then said to &e administered *ratis-
Austi)e, ho(e'er, ne'er (as in reality administered *ratis
in any )ountry- !a(yers and attorneys, at least, must al(ays &e
+aid &y the +arties/ and, if they (ere not, they (ould +erform
their duty still (orse than they a)tually +erform it- The fees
annually +aid to la(yers and attorneys amount, in e'ery )ourt, to
a mu)h *reater sum than the salaries of the 2ud*es- The
)ir)umstan)e of those salaries &ein* +aid &y the )ro(n )an
no(here mu)h diminish the ne)essary e1+ense of a la(8suit- .ut it
(as not so mu)h to diminish the e1+ense, as to +re'ent the
)orru+tion of 2usti)e, that the 2ud*es (ere +rohi&ited from
re)ei'in* any +resent or fee from the +arties-
The offi)e of 2ud*e is in itself so 'ery honoura&le that men
are (illin* to a))e+t of it, thou*h a))om+anied (ith 'ery small
emoluments- The inferior offi)e of 2usti)e of +ea)e, thou*h
attended (ith a *ood deal of trou&le, and in most )ases (ith no
emoluments at all, is an o&2e)t of am&ition to the *reater +art
of our )ountry *entlemen- The salaries of all the different
2ud*es, hi*h and lo(, to*ether (ith the (hole e1+ense of the
administration and e1e)ution of 2usti)e, e'en (here it is not
mana*ed (ith 'ery *ood e)onomy, ma0es, in any )i'ilised )ountry,
&ut a 'ery in)onsidera&le +art of the (hole e1+ense of
*o'ernment-
The (hole e1+ense of 2usti)e, too, mi*ht easily &e defrayed
&y the fees of )ourt/ and, (ithout e1+osin* the administration of
2usti)e to any real ha;ard of )orru+tion, the +u&li) re'enue
mi*ht thus &e dis)har*ed from a )ertain, thou*h, +erha+s, &ut a
small in)um&ran)e- It is diffi)ult to re*ulate the fees of )ourt
effe)tually (here a +erson so +o(erful as the so'erei*n is to
share in them, and to deri'e any )onsidera&le +art of his re'enue
from them- It is 'ery easy (here the 2ud*e is the +rin)i+al
+erson (ho )an rea+ any &enefit from them- The la( )an 'ery
easily o&li*e the 2ud*e to res+e)t the re*ulation, thou*h it
mi*ht not al(ays &e a&le to ma0e the so'erei*n res+e)t it- Where
the fees of )ourt are +re)isely re*ulated and as)ertained, (here
they are +aid all at on)e, at a )ertain +eriod of e'ery +ro)ess,
into the hands of a )ashier or re)ei'er, to &e &y him distri&uted
in )ertain 0no(n +ro+ortions amon* the different 2ud*es after the
+ro)ess is de)ided, and not till it is de)ided, there seems to &e
no more dan*er of )orru+tion than (here su)h fees are +rohi&ited
alto*ether- Those fees, (ithout o))asionin* any )onsidera&le
in)rease in the e1+ense of a la(suit, mi*ht &e rendered fully
suffi)ient for defrayin* the (hole e1+ense of 2usti)e- .y not
&ein* +aid to the 2ud*es till the +ro)ess (as determined, they
mi*ht &e some in)itement to the dili*en)e of the )ourt in
e1aminin* and de)idin* it- In )ourts (hi)h )onsisted of a
)onsidera&le num&er of 2ud*es, &y +ro+ortionin* the share of ea)h
2ud*e to the num&er of hours and days (hi)h he had em+loyed in
e1aminin* the +ro)ess, either in the )ourt or in a )ommittee &y
order of the )ourt, those fees mi*ht *i'e some en)oura*ement to
the dili*en)e of ea)h +arti)ular 2ud*e- u&li) ser'i)es are ne'er
&etter +erformed than (hen their re(ard )omes only in )onsequen)e
of their &ein* +erformed, and is +ro+ortioned to the dili*en)e
em+loyed in +erformin* them- In the different +arliaments of
"ran)e, the fees of )ourt 9)alled e+i)es and 'a)ations:
)onstitute the far *reater +art of the emoluments of the 2ud*es-
After all dedu)tions are made, the net salary +aid &y the )ro(n
to a )ounsellor or 2ud*e in the arliament of Toulouse, in ran0
and di*nity the se)ond +arliament of the 0in*dom, amounts only to
a hundred and fifty li'res, a&out si1 +ounds ele'en shillin*s
sterlin* a year- A&out se'en years a*o that sum (as in the same
+la)e the ordinary yearly (a*es of a )ommon footman- The
distri&ution of those e+i)es, too, is a))ordin* to the dili*en)e
of the 2ud*es- A dili*ent 2ud*e *ains a )omforta&le, thou*h
moderate, re'enue &y his offi)e3 an idle one *ets little more
than his salary- Those arliaments are +erha+s, in many res+e)ts,
not 'ery )on'enient )ourts of 2usti)e/ &ut they ha'e ne'er &een
a))used, they seem ne'er e'en to ha'e &een sus+e)ted, of
)orru+tion-
The fees of )ourt seem ori*inally to ha'e &een the +rin)i+al
su++ort of the different )ourts of 2usti)e in $n*land- $a)h )ourt
endea'oured to dra( to itself as mu)h &usiness as it )ould, and
(as, u+on that a))ount, (illin* to ta0e )o*nisan)e of many suits
(hi)h (ere not ori*inally intended to fall under its
2urisdi)tion- The Court of %in*=s .en)h, instituted for the trial
of )riminal )auses only, too0 )o*nisan)e of )i'il suits/ the
+laintiff +retendin* that the defendant, in not doin* him
2usti)e, had &een *uilty of some tres+ass or misdemeanour- The
Court of $1)hequer, instituted for the le'yin* of the 0in*=s
re'enue, and for enfor)in* the +ayment of su)h de&ts only as (ere
due to the 0in*, too0 )o*nisan)e of all other )ontra)t de&ts/ the
+laintiff alle*in* that he )ould not +ay the 0in* &e)ause the
defendant (ould not +ay him- In )onsequen)e of su)h fi)tions it
)ame, in many )ases, to de+end alto*ether u+on the +arties &efore
(hat )ourt they (ould )hoose to ha'e their )ause tried/ and ea)h
)ourt endea'oured, &y su+erior dis+at)h and im+artiality, to dra(
to itself as many )auses as it )ould- The +resent admira&le
)onstitution of the )ourts of 2usti)e in $n*land (as, +erha+s,
ori*inally in a *reat measure formed &y this emulation (hi)h
an)iently too0 +la)e &et(een their res+e)ti'e 2ud*es/ ea)h 2ud*e
endea'ourin* to *i'e, in his o(n )ourt, the s+eediest and most
effe)tual remedy (hi)h the la( (ould admit for e'ery sort of
in2usti)e- Ori*inally the )ourts of la( *a'e dama*es only for
&rea)h of )ontra)t- The Court of Chan)ery, as a )ourt of
)ons)ien)e, first too0 u+on it to enfor)e the s+e)ifi)
+erforman)e of a*reements- When the &rea)h of )ontra)t )onsisted
in the non8+ayment of money, the dama*e sustained )ould &e
)om+ensated in no other (ay than &y orderin* +ayment, (hi)h (as
equi'alent to a s+e)ifi) +erforman)e of the a*reement- In su)h
)ases, therefore, the remedy of the )ourts of la( (as suffi)ient-
It (as not so in others- When the tenant sued his lord for ha'in*
un2ustly outed him of his lease, the dama*es (hi)h he re)o'ered
(ere &y no means equi'alent to the +ossession of the land- Su)h
)auses, therefore, for some time, (ent all to the Court of
Chan)ery, to the no small loss of the )ourts of la(- It (as to
dra( &a)0 su)h )auses to themsel'es that the )ourts of la( are
said to ha'e in'ented the artifi)ial and fi)titious Writ of
$2e)tment, the most effe)tual remedy for an un2ust outer or
dis+ossession of land-
A stam+8duty u+on the la( +ro)eedin*s of ea)h +arti)ular
)ourt, to &e le'ied &y that )ourt, and a++lied to(ards the
maintenan)e of the 2ud*es and other offi)ers &elon*in* to it,
mi*ht, in the same manner, afford re'enue suffi)ient for
defrayin* the e1+ense of the administration of 2usti)e, (ithout
&rin*in* any &urden u+on the *eneral re'enue of the so)iety- The
2ud*es indeed mi*ht, in this )ase, &e under the tem+tation of
multi+lyin* unne)essarily the +ro)eedin*s u+on e'ery )ause, in
order to in)rease, as mu)h as +ossi&le, the +rodu)e of su)h a
stam+8duty- It has &een the )ustom in modern $uro+e to re*ulate,
u+on most o))asions, the +ayment of the attorneys and )ler0s of
)ourt a))ordin* to the num&er of +a*es (hi)h they had o))asion to
(rite/ the )ourt, ho(e'er, requirin* that ea)h +a*e should
)ontain so many lines, and ea)h line so many (ords- In order to
in)rease their +ayment, the attorneys and )ler0s ha'e )ontri'ed
to multi+ly (ords &eyond all ne)essity, to the )orru+tion of the
la( lan*ua*e of, I &elie'e, e'ery )ourt of 2usti)e in $uro+e- A
li0e tem+tation mi*ht +erha+s o))asion a li0e )orru+tion in the
form of la( +ro)eedin*s-
.ut (hether the administration of 2usti)e &e so )ontri'ed as
to defray its o(n e1+ense, or (hether the 2ud*es &e maintained &y
fi1ed salaries +aid to them from some other fund, it does not
seem ne)essary that the +erson or +ersons entrusted (ith the
e1e)uti'e +o(er should &e )har*ed (ith the mana*ement of that
fund, or (ith the +ayment of those salaries- That fund mi*ht
arise from the rent of landed estates, the mana*ement of ea)h
estate &ein* entrusted to the +arti)ular )ourt (hi)h (as to &e
maintained &y it- That fund mi*ht arise e'en from the interest of
a sum of money, the lendin* out of (hi)h mi*ht, in the same
manner, &e entrusted to the )ourt (hi)h (as to &e maintained &y
it- A +art, thou*h indeed &ut a small +art, of the salary of the
2ud*es of the Court of Session in S)otland arises from the
interest of a sum of money- The ne)essary insta&ility of su)h a
fund seems, ho(e'er, to render it an im+ro+er one for the
maintenan)e of an institution (hi)h ou*ht to last for e'er-
The se+aration of the 2udi)ial from the e1e)uti'e +o(er
seems ori*inally to ha'e arisen from the in)reasin* &usiness of
the so)iety, in )onsequen)e of its in)reasin* im+ro'ement- The
administration of 2usti)e &e)ame so la&orious and so )om+li)ated
a duty as to require the undi'ided attention of the +ersons to
(hom it (as entrusted- The +erson entrusted (ith the e1e)uti'e
+o(er not ha'in* leisure to attend to the de)ision of +ri'ate
)auses himself, a de+uty (as a++ointed to de)ide them in his
stead- In the +ro*ress of the Roman *reatness, the )onsul (as too
mu)h o))u+ied (ith the +oliti)al affairs of the state to attend
to the administration of 2usti)e- A +raetor, therefore, (as
a++ointed to administer it in his stead- In the +ro*ress of the
$uro+ean monar)hies (hi)h (ere founded u+on the ruins of the
Roman em+ire, the so'erei*ns and the *reat lords )ame uni'ersally
to )onsider the administration of 2usti)e as an offi)e &oth too
la&orious and too i*no&le for them to e1e)ute in their o(n
+ersons- They uni'ersally, therefore, dis)har*ed themsel'es of it
&y a++ointin* a de+uty, &ailiff, or 2ud*e-
When the 2udi)ial is united to the e1e)uti'e +o(er, it is
s)ar)e +ossi&le that 2usti)e should not frequently &e sa)rifi)ed
to (hat is 'ul*arly )alled +olities- The +ersons entrusted (ith
the *reat interests of the state may, e'en (ithout any )orru+t
'ie(s, sometimes ima*ine it ne)essary to sa)rifi)e to those
interests the ri*hts of a +ri'ate man- .ut u+on the im+artial
administration of 2usti)e de+ends the li&erty of e'ery
indi'idual, the sense (hi)h he has of his o(n se)urity- In order
to ma0e e'ery indi'idual feel himself +erfe)tly se)ure in the
+ossession of e'ery ri*ht (hi)h &elon*s to him, it is not only
ne)essary that the 2udi)ial should &e se+arated from the
e1e)uti'e +o(er, &ut that it should &e rendered as mu)h as
+ossi&le inde+endent of that +o(er- The 2ud*e should not &e
lia&le to &e remo'ed from his offi)e a))ordin* to the )a+ri)e of
that +o(er- The re*ular the *ood8(ill or e'en u+on the *ood
e)onomy +ayment of his salary should not de+end u+on of that
+o(er-
ART B
Of the $1+ense of u&li) Wor0s and u&li) Institutions
T#$ third and last duty of the so'erei*n or )ommon(ealth is
that of ere)tin* and maintainin* those +u&li) institutions and
those +u&li) (or0s, (hi)h, thou*h they may &e in the hi*hest
de*ree ad'anta*eous to a *reat so)iety, are, ho(e'er, of su)h a
nature that the +rofit )ould ne'er re+ay the e1+ense to any
indi'idual or small num&er of indi'iduals, and (hi)h it therefore
)annot &e e1+e)ted that any indi'idual or small num&er of
indi'iduals should ere)t or maintain- The +erforman)e of this
duty requires, too, 'ery different de*rees of e1+ense in the
different +eriods of so)iety-
After the +u&li) institutions and +u&li) (or0s ne)essary for
the defen)e of the so)iety, and for the administration of
2usti)e, &oth of (hi)h ha'e already &een mentioned, the other
(or0s and institutions of this 0ind are )hiefly those for
fa)ilitatin* the )ommer)e of the so)iety, and those for +romotin*
the instru)tion of the +eo+le- The institutions for instru)tion
are of t(o 0inds3 those for the edu)ation of youth, and those for
the instru)tion of +eo+le of all a*es- The )onsideration of the
manner in (hi)h the e1+ense of those different sorts of +u&li),
(or0s and institutions may &e most +ro+erly defrayed (ill di'ide
this third +art of the +resent )ha+ter into three different
arti)les-
ARTIC!$ 1
Of the u&li) Wor0s and Institutions for fa)ilitatin* the
Commer)e of the So)iety
And, first, of those (hi)h are ne)essary for fa)ilitatin*
Commer)e in *eneral-
That the ere)tion and maintenan)e of the +u&li) (or0s (hi)h
fa)ilitate the )ommer)e of any )ountry, su)h as *ood roads,
&rid*es, na'i*a&le )anals, har&ours, et)-, must require 'ery
different de*rees of e1+ense in the different +eriods of so)iety
is e'ident (ithout any +roof- The e1+ense of ma0in* and
maintainin* the +u&li) roads of any )ountry must e'idently
in)rease (ith the annual +rodu)e of the land and la&our of that
)ountry, or (ith the quantity and (ei*ht of the *oods (hi)h it
&e)omes ne)essary to fet)h and )arry u+on those roads- The
stren*th of a &rid*e must &e suited to the num&er and (ei*ht of
the )arria*es (hi)h are li0ely to +ass o'er it- The de+th and the
su++ly of (ater for a na'i*a&le )anal must &e +ro+ortioned to the
num&er and tonna*e of the li*hters (hi)h are li0ely to )arry
*oods u+on it/ the e1tent of a har&our to the num&er of the
shi++in* (hi)h are li0ely to ta0e shelter in it-
It does not seem ne)essary that the e1+ense of those +u&li)
(or0s should &e defrayed from that +u&li) re'enue, as it is
)ommonly )alled, of (hi)h the )olle)tion and a++li)ation is in
most )ountries assi*ned to the e1e)uti'e +o(er- The *reater +art
of su)h +u&li) (or0s may easily &e so mana*ed as to afford a
+arti)ular re'enue suffi)ient for defrayin* their o(n e1+ense,
(ithout &rin*in* any &urden u+on the *eneral re'enue of the
so)iety-
A hi*h(ay, a &rid*e, a na'i*a&le )anal, for e1am+le, may in
most )ases &e &oth made and maintained &y a small toll u+on the
)arria*es (hi)h ma0e use of them3 a har&our, &y a moderate
+ort8duty u+on the tonna*e of the shi++in* (hi)h load or unload
in it- The )oina*e, another institution for fa)ilitatin*
)ommer)e, in many )ountries, not only defrays its o(n e1+ense,
&ut affords a small re'enue or sei*nora*e to the so'erei*n- The
+ost8offi)e, another institution for the same +ur+ose, o'er and
a&o'e defrayin* its o(n e1+ense, affords in almost all )ountries
a 'ery )onsidera&le re'enue to the so'erei*n-
When the )arria*es (hi)h +ass o'er a hi*h(ay or a &rid*e,
and the li*hters (hi)h sail u+on a na'i*a&le )anal, +ay toll in
+ro+ortion to their (ei*ht or their tonna*e, they +ay for the
maintenan)e of those +u&li) (or0s e1a)tly in +ro+ortion to the
(ear and tear (hi)h they o))asion of them- It seems s)ar)e
+ossi&le to in'ent a more equita&le (ay of maintainin* su)h
(or0s- This ta1 or toll too, thou*h it is ad'an)ed &y the
)arrier, is finally +aid &y the )onsumer, to (hom it must al(ays
&e )har*ed in the +ri)e of the *oods- As the e1+ense of )arria*e,
ho(e'er, is 'ery mu)h redu)ed &y means of su)h +u&li) (or0s, the
*oods, not(ithstandin* the toll )ome )hea+er to the )onsumer than
the/ )ould other(ise ha'e done/ their +ri)e not &ein* so mu)h
raised &y the toll as it is lo(ered &y the )hea+ness of the
)arria*e- The +erson (ho finally +ays this ta1, therefore, *ains
&y the a++li)ation more than he loses &y the +ayment of it- #is
+ayment is e1a)tly in +ro+ortion to his *ain- It is in reality no
more than a +art of that *ain (hi)h he is o&li*ed to *i'e u+ in
order to *et the rest- It seems im+ossi&le to ima*ine a more
equita&le method of raisin* a ta1-
When the toll u+on )arria*es of lu1ury u+on )oa)hes,
+ost8)haises, et)-, is made some(hat hi*her in +ro+ortion to
their (ei*ht than u+on )arria*es of ne)essary use, su)h as )arts,
(a**ons, et)-, the indolen)e and 'anity of the ri)h is made to
)ontri&ute in a 'ery easy manner to the relief of the +oor, &y
renderin* )hea+er the trans+ortation of hea'y *oods to all the
different +arts of the )ountry-
When hi*h roads, &rid*es, )anals, et)-, are in this manner
made and su++orted &y the )ommer)e (hi)h is )arried on &y means
of them, they )an &e made only (here that )ommer)e requires them,
and )onsequently (here it is +ro+er to ma0e them- Their e1+enses
too, their *randeur and ma*nifi)en)e, must &e suited to (hat that
)ommer)e )an afford to +ay- They must &e made )onsequently as it
is +ro+er to ma0e them- A ma*nifi)ent hi*h road )annot &e made
throu*h a desert )ountry (here there is little or no )ommer)e, or
merely &e)ause it ha++ens to lead to the )ountry 'illa of the
intendant of the +ro'in)e, or to that of some *reat lord to (hom
the intendant finds it )on'enient to ma0e his )ourt- A *reat
&rid*e )annot &e thro(n o'er a ri'er at a +la)e (here no&ody
+asses, or merely to em&ellish the 'ie( from the (indo(s of a
nei*h&ourin* +ala)e3 thin*s (hi)h sometimes ha++en in )ountries
(here (or0s of this 0ind are )arried on &y any other re'enue than
that (hi)h they themsel'es are )a+a&le of affordin*-
In se'eral different +arts of $uro+e the ton or lo)08duty
u+on a )anal is the +ro+erty of +ri'ate +ersons, (hose +ri'ate
interest o&li*es them to 0ee+ u+ the )anal- If it is not 0e+t in
tolera&le order, the na'i*ation ne)essarily )eases alto*ether,
and alon* (ith it the (hole +rofit (hi)h they )an ma0e &y the
tolls- If those tolls (ere +ut under the mana*ement of
)ommissioners, (ho had themsel'es no interest in them, they mi*ht
&e less attenti'e to the maintenan)e of the (or0s (hi)h +rodu)ed
them- The )anal of !an*uedo) )ost the %in* of "ran)e and the
+ro'in)e u+(ards of thirteen millions of li'res, (hi)h 9at
t(enty8ei*ht li'res the mar0 of sil'er, the 'alue of "ren)h money
in the end of the last )entury: amounted to u+(ards of nine
hundred thousand +ounds sterlin*- When that *reat (or0 (as
finished, the most li0ely method, it (as found, of 0ee+in* it in
)onstant re+air (as to ma0e a +resent of the tolls to Riquet the
en*ineer, (ho +lanned and )ondu)ted the (or0- Those tolls
)onstitute at +resent a 'ery lar*e estate to the different
&ran)hes of the family of that *entleman, (ho ha'e, therefore, a
*reat interest to 0ee+ the (or0 in )onstant re+air- .ut had those
tolls &een +ut under the mana*ement of )ommissioners, (ho had no
su)h interest, they mi*ht +erha+s ha'e &een dissi+ated in
ornamental and unne)essary e1+enses, (hile the most essential
+arts of the (or0 (ere allo(ed to *o to ruin-
The tolls for the maintenan)e of a hi*h road )annot (ith any
safety &e made the +ro+erty of +ri'ate +ersons- A hi*h road,
thou*h entirely ne*le)ted, does not &e)ome alto*ether im+assa&le,
thou*h a )anal does- The +ro+rietors of the tolls u+on a hi*h
road, therefore, mi*ht ne*le)t alto*ether the re+air of the road,
and yet )ontinue to le'y 'ery nearly the same tolls- It is
+ro+er, therefore, that the tolls for the maintenan)e of su)h a
(or0 should &e +ut under the mana*ement of )ommissioners or
trustees-
In 6reat .ritain, the a&uses (hi)h the trustees ha'e
)ommitted in the mana*ement of those tolls ha'e in many )ases
&een 'ery 2ustly )om+lained of- At many turn+i0es, it has &een
said, the money le'ied is more than dou&le of (hat is ne)essary
for e1e)utin*, in the )om+letest manner, the (or0 (hi)h is often
e1e)uted in 'ery slo'enly manner, and sometimes not e1e)uted at
all- The system of re+airin* the hi*h roads &y tolls of this
0ind, it must &e o&ser'ed, is not of 'ery lon* standin*- We
should not (onder, therefore, if it has not yet &een &rou*ht to
that de*ree of +erfe)tion of (hi)h it seems )a+a&le- If mean and
im+ro+er +ersons are frequently a++ointed trustees, and if +ro+er
)ourts of ins+e)tion and a))ount ha'e not yet &een esta&lished
for )ontrollin* their )ondu)t, and for redu)in* the tolls to (hat
is &arely suffi)ient for e1e)utin* the (or0 to &e done &y them,
the re)en)y of the institution &oth a))ounts and a+olo*i;es for
those defe)ts, of (hi)h, &y the (isdom of arliament, the *reater
+art may in due time &e *radually remedied-
The money le'ied at the different turn+i0es in 6reat .ritain
is su++osed to e1)eed so mu)h (hat is ne)essary for re+airin* the
roads, that the sa'in*s, (hi)h, (ith +ro+er e)onomy, mi*ht &e
made from it, ha'e &een )onsidered, e'en &y some ministers, as a
'ery *reat resour)e (hi)h mi*ht at some time or another &e
a++lied to the e1i*en)ies of the state- 6o'ernment, it has &een
said, &y ta0in* the mana*ement of the turn+i0es into its o(n
hands, and &y em+loyin* the soldiers, (ho (ould (or0 for a 'ery
small addition to their +ay, )ould 0ee+ the roads in *ood order
at a mu)h less e1+ense than it )an &e done &y trustees, (ho ha'e
no other (or0men to em+loy &ut su)h as deri'e their (hole
su&sisten)e from their (a*es- A *reat re'enue, half a million
+erha+s,L it has &een +retended, mi*ht in this manner &e *ained
(ithout layin* any ne( &urden u+on the +eo+le/ and the turn+i0e
roads mi*ht &e made to )ontri&ute to the *eneral e1+ense of the
state, in the same manner as the +ost offi)e does at +resent-
L Sin)e +u&lishin* the t(o first editions of this &oo0, I ha'e
*ot *ood reasons to &elie'e that all the turn+i0e tolls le'ied in
6reat .ritain do not +rodu)e a net re'enue that amounts to half a
million/ a sum (hi)h, under the mana*ement of 6o'ernment, (ould
not &e suffi)ient to 0ee+ in re+air fi'e of the +rin)i+al roads
in the 0in*dom-
That a )onsidera&le re'enue mi*ht &e *ained in this manner I
ha'e no dou&t, thou*h +ro&a&ly not near so mu)h as the +ro2e)tors
of this +lan ha'e su++osed- The +lan itself, ho(e'er, seems
lia&le to se'eral 'ery im+ortant o&2e)tions-
"irst, if the tolls (hi)h are le'ied at the turn+i0es should
e'er &e )onsidered as one of the resour)es for su++lyin* the
e1i*en)ies of the state, they (ould )ertainly &e au*mented as
those e1i*en)ies (ere su++osed to require- A))ordin* to the
+oli)y of 6reat .ritain, therefore, they (ould +ro&a&ly &e
au*mented 'ery fast- The fa)ility (ith (hi)h a *reat re'enue
)ould &e dra(n from them (ould +ro&a&ly en)oura*e administration
to re)ur 'ery frequently to this resour)e- Thou*h it may,
+erha+s, &e more than dou&tful (hether half a million )ould &y
any e)onomy &e sa'ed out of the +resent tolls, it )an s)ar)e &e
dou&ted &ut that a million mi*ht &e sa'ed out of them if they
(ere dou&led3 and +erha+s t(o millions if they (ere tri+led-L
This *reat re'enue, too, mi*ht &e le'ied (ithout the a++ointment
of a sin*le ne( offi)er to )olle)t and re)ei'e it- .ut the
turn+i0e tolls &ein* )ontinually au*mented in this manner,
instead of fa)ilitatin* the inland )ommer)e of the )ountry as at
+resent, (ould soon &e)ome a 'ery *reat in)um&ran)e u+on it- The
e1+ense of trans+ortin* all hea'y *oods from one +art of the
)ountry to another (ould soon &e so mu)h in)reased, the mar0et
for all su)h *oods, )onsequently, (ould soon &e so mu)h narro(ed,
that their +rodu)tion (ould &e in a *reat measure dis)oura*ed,
and the most im+ortant &ran)hes of the domesti) industry of the
)ountry annihilated alto*ether- L I ha'e no( *ood reasons to
&elie'e that all these )on2e)tural sums are &y mu)h too lar*e-
Se)ondly, a ta1 u+on )arria*es in +ro+ortion to their
(ei*ht, thou*h a 'ery equal ta1 (hen a++lied to the sole +ur+ose
of re+airin* the roads, is a 'ery unequal one (hen a++lied to any
other +ur+ose, or to su++ly the )ommon e1i*en)ies of the state-
When it is a++lied to the sole +ur+ose a&o'e mentioned, ea)h
)arria*e is su++osed to +ay e1a)tly for the (ear and tear (hi)h
that )arria*e o))asions of the roads- .ut (hen it is a++lied to
any other +ur+ose, ea)h )arria*e is su++osed to +ay for more than
that (ear and tear, and )ontri&utes to the su++ly of some other
e1i*en)y of the state- .ut as the turn+i0e toll raises the +ri)e
of *oods in +ro+ortion to their (ei*ht, and not to their 'alue,
it is )hiefly +aid &y the )onsumers of )oarse and &ul0y, not &y
those of +re)ious and li*ht, )ommodities- Whate'er e1i*en)y of
the state therefore this ta1 mi*ht &e intended to su++ly, that
e1i*en)y (ould &e )hiefly su++lied at the e1+ense of the +oor,
not the ri)h/ at the e1+ense of those (ho are least a&le to
su++ly it, not of those (ho are most a&le-
Thirdly, if *o'ernment should at any time ne*le)t the
re+aration of the hi*h roads, it (ould &e still more diffi)ult
than it is at +resent to )om+el the +ro+er a++li)ation of any
+art of the turn+i0e tolls- A lar*e re'enue mi*ht thus &e le'ied
u+on the +eo+le (ithout any +art of it &ein* a++lied to the only
+ur+ose to (hi)h a re'enue le'ied in this manner ou*ht e'er to &e
a++lied- If the meanness and +o'erty of the trustees of turn+i0e
roads render it sometimes diffi)ult at +resent to o&li*e them to
re+air their (ron*, their (ealth and *reatness (ould render it
ten times more so in the )ase (hi)h is here su++osed-
In "ran)e, the funds destined for the re+aration of hi*h
roads are under the immediate dire)tion of the e1e)uti'e +o(er-
Those funds )onsist +artly in a )ertain num&er of days= la&our
(hi)h the )ountry +eo+le are in most +arts of $uro+e o&li*ed to
*i'e to the re+aration of the hi*h(ays, and +artly in su)h a
+ortion of the *eneral re'enue of the state as the 0in* )hooses
to s+are from his other e1+enses-
.y the an)ient la( of "ran)e, as (ell as &y that of most
other +arts of $uro+e, the la&our of the )ountry +eo+le (as under
the dire)tion of a lo)al or +ro'in)ial ma*istra)y, (hi)h had no
immediate de+enden)y u+on the 0in*=s )oun)il- .ut &y the +resent
+ra)ti)e &oth the la&our of the +eo+le, and (hate'er other fund
the 0in* may )hoose to assi*n for the re+aration of the hi*h
roads in any +arti)ular +ro'in)e or *enerality, are entirely
under the mana*ement of the intendant/ an offi)er (ho is
a++ointed and remo'ed &y the 0in*=s )oun)il, and (ho re)ei'es his
orders from it, and is in )onstant )orres+onden)e (ith it- In the
+ro*ress of des+otism the authority of the e1e)uti'e +o(er
*radually a&sor&s that of e'ery other +o(er in the state, and
assumes to itself the mana*ement of e'ery &ran)h of re'enue (hi)h
is destined for any +u&li) +ur+ose- In "ran)e, ho(e'er, the *reat
+ost8roads, the roads (hi)h ma0e the )ommuni)ation &et(een the
+rin)i+al to(ns of the 0in*dom, are in *eneral 0e+t in *ood
order, and in some +ro'in)es are e'en a *ood deal su+erior to the
*reater +art of the turn+i0e roads of $n*land- .ut (hat (e )all
the )ross8roads, that is, the far *reater +art of the roads in
the )ountry, are entirely ne*le)ted, and are in many +la)es
a&solutely im+assa&le for any hea'y )arria*e- In some +la)es it
is e'en dan*erous to tra'el on horse&a)0, and mules are the only
)on'eyan)es (hi)h )an safely &e trusted- The +roud minister of an
ostentatious )ourt may frequently ta0e +leasure in e1e)utin* a
(or0 of s+lendour and ma*nifi)en)e, su)h as a *reat hi*h(ay,
(hi)h is frequently seen &y the +rin)i+al no&ility, (hose
a++lauses not only flatter his 'anity, &ut e'en )ontri&ute to
su++ort his interest at )ourt- .ut to e1e)ute a *reat num&er of
little (or0s, in (hi)h nothin* that )an &e done )an ma0e any
*reat a++earan)e, or e1)ite the smallest de*ree of admiration in
any tra'eller, and (hi)h, in short, ha'e nothin* to re)ommend
them &ut their e1treme utility, is a &usiness (hi)h a++ears in
e'ery res+e)t too mean and +altry to merit the attention of so
*reat a ma*istrate- Under su)h an administration, therefore, su)h
(or0s are almost al(ays entirely ne*le)ted-
In China, and in se'eral other *o'ernments of Asia, the
e1e)uti'e +o(er )har*es itself &oth (ith the re+aration of the
hi*h roads and (ith the maintenan)e of the na'i*a&le )anals- In
the instru)tions (hi)h are *i'en to the *o'ernor of ea)h
+ro'in)e, those o&2e)ts, it is said, are )onstantly re)ommended
to him, and the 2ud*ment (hi)h the )ourt forms of his )ondu)t is
'ery mu)h re*ulated &y the attention (hi)h he a++ears to ha'e
+aid to this +art of his instru)tions- This &ran)h of +u&li)
+oli)e a))ordin*ly is said to &e 'ery mu)h attended to in all
those )ountries, &ut +arti)ularly in China, (here the hi*h roads,
and still more the na'i*a&le )anals, it is +retended, e1)eed 'ery
mu)h e'erythin* of the same 0ind (hi)h is 0no(n in $uro+e- The
a))ounts of those (or0s, ho(e'er, (hi)h ha'e &een transmitted to
$uro+e, ha'e *enerally &een dra(n u+ &y (ea0 and (onderin*
tra'ellers/ frequently &y stu+id and lyin* missionaries- If they
had &een e1amined &y more intelli*ent eyes, and if the a))ounts
of them had &een re+orted &y more faithful (itnesses, they (ould
not, +erha+s, a++ear to &e so (onderful- The a))ount (hi)h
.ernier *i'es of some (or0s of this 0ind in Indostan falls 'ery
mu)h short of (hat had &een re+orted of them &y other tra'ellers,
more dis+osed to the mar'ellous than he (as- It may too, +erha+s,
&e in those )ountries, as in "ran)e, (here the *reat roads, the
*reat )ommuni)ations (hi)h are li0ely to &e the su&2e)ts of
)on'ersation at the )ourt and in the )a+ital, are attended to,
and all the rest ne*le)ted- In China, &esides, in Indostan, and
in se'eral other *o'ernments of Asia, the re'enue of the
so'erei*n arises almost alto*ether from a land ta1 or land rent,
(hi)h rises or falls (ith the rise and fall of the annual +rodu)e
of the land- The *reat interest of the so'erei*n, therefore, his
re'enue, is in su)h )ountries ne)essarily and immediately
)onne)ted (ith the )ulti'ation of the land, (ith the *reatness of
its +rodu)e, and (ith the 'alue of its +rodu)e- .ut in order to
render that +rodu)e &oth as *reat and as 'alua&le as +ossi&le, it
is ne)essary to +ro)ure to it as e1tensi'e a mar0et as +ossi&le,
and )onsequently to esta&lish the freest, the easiest, and the
least e1+ensi'e )ommuni)ation &et(een all the different +arts of
the )ountry/ (hi)h )an &e done only &y means of the &est roads
and the &est na'i*a&le )anals- .ut the re'enue of the so'erei*n
does not, in any +art of $uro+e, arise )hiefly from a land ta1 or
land rent- In all the *reat 0in*doms of $uro+e, +erha+s, the
*reater +art of it may ultimately de+end u+on the +rodu)e of the
land3 &ut that de+enden)y is neither so immediate, nor so
e'ident- In $uro+e, therefore, the so'erei*n does not feel
himself so dire)tly )alled u+on to +romote the in)rease, &oth in
quantity and 'alue, of the +rodu)e of the land, or, &y
maintainin* *ood roads and )anals, to +ro'ide the most e1tensi'e
mar0et for that +rodu)e- Thou*h it should &e true, therefore,
(hat I a++rehend is not a little dou&tful, that in some +arts of
Asia this de+artment of the +u&li) +oli)e is 'ery +ro+erly
mana*ed &y the e1e)uti'e +o(er, there is not the least
+ro&a&ility that, durin* the +resent state of thin*s, it )ould &e
tolera&ly mana*ed &y that +o(er in any +art of $uro+e-
$'en those +u&li) (or0s (hi)h are of su)h a nature that they
)annot afford any re'enue for maintainin* themsel'es, &ut of
(hi)h the )on'enien)y is nearly )onfined to some +arti)ular +la)e
or distri)t, are al(ays &etter maintained &y a lo)al or
+ro'in)ial re'enue, under the mana*ement of a lo)al or +ro'in)ial
administration, than &y the *eneral re'enue of the state, of
(hi)h the e1e)uti'e +o(er must al(ays ha'e the mana*ement- Were
the streets of !ondon to &e li*hted and +a'ed at the e1+ense of
the treasury, is there any +ro&a&ility that they (ould &e so (ell
li*hted and +a'ed as they are at +resent, or e'en at so small an
e1+ense> The e1+ense, &esides, instead of &ein* raised &y a lo)al
ta1 u+on the inha&itants of ea)h +arti)ular street, +arish, or
distri)t in !ondon, (ould, in this )ase, &e defrayed out of the
*eneral re'enue of the state, and (ould )onsequently &e raised &y
a ta1 u+on all the inha&itants of the 0in*dom, of (hom the
*reater +art deri'e no sort of &enefit from the li*htin* and
+a'in* of the streets of !ondon-
The a&uses (hi)h sometimes )ree+ into the lo)al and
+ro'in)ial administration of a lo)al and +ro'in)ial re'enue, ho(
enormous soe'er they may a++ear, are in reality, ho(e'er, almost
al(ays 'ery triflin* in )om+arison of those (hi)h )ommonly ta0e
+la)e in the administration and e1+enditure of the re'enue of a
*reat em+ire- They are, &esides, mu)h more easily )orre)ted-
Under the lo)al or +ro'in)ial administration of the 2usti)es of
the +ea)e in 6reat .ritain, the si1 days= la&our (hi)h the
)ountry +eo+le are o&li*ed to *i'e to the re+aration of the
hi*h(ays is not al(ays +erha+s 'ery 2udi)iously a++lied, &ut it
is s)ar)e e'er e1a)ted (ith any )ir)umstan)es of )ruelty or
o++ression- In "ran)e, under the administration of the
intendants, the a++li)ation is not al(ays more 2udi)ious, and the
e1a)tion is frequently the most )ruel and o++ressi'e- Su)h
Cor'ees, as they are )alled, ma0e one of the +rin)i+al
instruments of tyranny &y (hi)h those offi)ers )hastise any
+arish or )ommunaute (hi)h has had the misfortune to fall under
their dis+leasure-
Of the u&li) Wor0s and Institutions (hi)h are ne)essary for
fa)ilitatin* +arti)ular .ran)hes of Commer)e-
The o&2e)t of the +u&li) (or0s and institutions a&o'e
mentioned is to fa)ilitate )ommer)e in *eneral- .ut in order to
fa)ilitate some +arti)ular &ran)hes of it, +arti)ular
institutions are ne)essary, (hi)h a*ain require a +arti)ular and
e1traordinary e1+ense-
Some +arti)ular &ran)hes of )ommer)e, (hi)h are )arried on
(ith &ar&arous and un)i'ilised nations, require e1traordinary
+rote)tion- An ordinary store or )ountin*8house )ould *i'e little
se)urity to the *oods of the mer)hants (ho trade to the (estern
)oast of Afri)a- To defend them from the &ar&arous nati'es, it is
ne)essary that the +la)e (here they are de+osited should &e, in
some measure, fortified- The disorders in the *o'ernment of
Indostan ha'e &een su++osed to render a li0e +re)aution ne)essary
e'en amon* that mild and *entle +eo+le/ and it (as under +reten)e
of se)urin* their +ersons and +ro+erty from 'iolen)e that &oth
the $n*lish and "ren)h $ast India Com+anies (ere allo(ed to ere)t
the first forts (hi)h they +ossessed in that )ountry- Amon* other
nations, (hose 'i*orous *o'ernment (ill suffer no stran*ers to
+ossess any fortified +la)e (ithin their territory, it may &e
ne)essary to maintain some am&assador, minister, or )ounsel, (ho
may &oth de)ide, a))ordin* to their o(n )ustoms, the differen)es
arisin* amon* his o(n )ountrymen, and, in their dis+utes (ith the
nati'es, may, &y means of his +u&li) )hara)ter, interfere (ith
more authority, and afford them a more +o(erful +rote)tion, than
they )ould e1+e)t from any +ri'ate man- The interests of )ommer)e
ha'e frequently made it ne)essary to maintain ministers in
forei*n )ountries (here the +ur+oses, either of (ar or allian)e,
(ould not ha'e required any- The )ommer)e of the Tur0ey Com+any
first o))asioned the esta&lishment of an ordinary am&assador at
Constantino+le- The first $n*lish em&assies to Russia arose
alto*ether from )ommer)ial interests- The )onstant interferen)e
(hi)h those interests ne)essarily o))asioned &et(een the su&2e)ts
of the different states of $uro+e, has +ro&a&ly introdu)ed the
)ustom of 0ee+in*, in all nei*h&ourin* )ountries, am&assadors or
ministers )onstantly resident e'en in the time of +ea)e- This
)ustom, un0no(n to an)ient times, seems not to &e older than the
end of the fifteenth or &e*innin* of the si1teenth )entury/ that
is, than the time (hen )ommer)e first &e*an to e1tend itself to
the *reater +art of the nations of $uro+e, and (hen they first
&e*an to attend to its interests-
It seems not unreasona&le that the e1traordinary e1+ense
(hi)h the +rote)tion of any +arti)ular &ran)h of )ommer)e may
o))asion should &e defrayed &y a moderate ta1 u+on that
+arti)ular &ran)h/ &y a moderate fine, for e1am+le, to &e +aid &y
the traders (hen they first enter into it, or, (hat is more
equal, &y a +arti)ular duty of so mu)h +er )ent u+on the *oods
(hi)h they either im+ort into, or e1+ort out of, the +arti)ular
)ountries (ith (hi)h it is )arried on- The +rote)tion of trade in
*eneral, from +irates and free&ooters, is said to ha'e *i'en
o))asion to the first institution of the duties of )ustoms- .ut,
if it (as thou*ht reasona&le to lay a *eneral ta1 u+on trade, in
order to defray the e1+ense of +rote)tin* trade in *eneral, it
should seem equally reasona&le to lay a +arti)ular ta1 u+on a
+arti)ular &ran)h of trade, in order to defray the e1traordinary
e1+ense of +rote)tin* that &ran)h-
The +rote)tion of trade in *eneral has al(ays &een
)onsidered as essential to the defen)e of the )ommon(ealth, and,
u+on that a))ount, a ne)essary +art of the duty of the e1e)uti'e
+o(er- The )olle)tion and a++li)ation of the *eneral duties of
)ustoms, therefore, ha'e al(ays &een left to that +o(er- .ut the
+rote)tion of any +arti)ular &ran)h of trade is a +art of the
*eneral +rote)tion of trade/ a +art, therefore, of the duty of
that +o(er/ and if nations al(ays a)ted )onsistently, the
+arti)ular duties le'ied for the +ur+oses of su)h +arti)ular
+rote)tion should al(ays ha'e &een left equally to its dis+osal-
.ut in this res+e)t, as (ell as in many others, nations ha'e not
al(ays a)ted )onsistently/ and in the *reater +art of the
)ommer)ial states of $uro+e, +arti)ular )om+anies of mer)hants
ha'e had the address to +ersuade the le*islature to entrust to
them the +erforman)e of this +art of the duty of the so'erei*n,
to*ether (ith all the +o(ers (hi)h are ne)essarily )onne)ted (ith
it-
These )om+anies, thou*h they may, +erha+s, ha'e &een useful
for the first introdu)tion of some &ran)hes of )ommer)e, &y
ma0in*, at their o(n e1+ense, an e1+eriment (hi)h the state mi*ht
not thin0 it +rudent to ma0e, ha'e in the lon* run +ro'ed,
uni'ersally, either &urdensome or useless, and ha'e either
mismana*ed or )onfined the trade-
When those )om+anies do not trade u+on a 2oint sto)0, &ut
are o&li*ed to admit any +erson, +ro+erly qualified, u+on +ayin*
a )ertain fine, and a*reein* to su&mit to the re*ulations of the
)om+any, ea)h mem&er tradin* u+on his o(n sto)0, and at his o(n
ris0, they are )alled re*ulated )om+anies- When they trade u+on a
2oint sto)0, ea)h mem&er sharin* in the )ommon +rofit or loss in
+ro+ortion to his share in this sto)0, they are )alled 2oint
sto)0 )om+anies- Su)h )om+anies, (hether re*ulated or 2oint
sto)0, sometimes ha'e, and sometimes ha'e not, e1)lusi'e
+ri'ile*es-
Re*ulated )om+anies resem&le, in e'ery res+e)t, the
)or+orations of trades so )ommon in the )ities and to(ns of all
the different )ountries of $uro+e, and are a sort of enlar*ed
mono+olies of the same 0ind- As no inha&itant of a to(n )an
e1er)ise an in)or+orated trade (ithout first o&tainin* his
freedom in the )or+oration, so in most )ases no su&2e)t of the
state )an la(fully )arry on any &ran)h of forei*n trade, for
(hi)h a re*ulated )om+any is esta&lished, (ithout first &e)omin*
a mem&er of that )om+any- The mono+oly is more or less stri)t
a))ordin* as the terms of admission are more or less diffi)ult/
and a))ordin* as the dire)tors of the )om+any ha'e more or less
authority, or ha'e it more or less in their +o(er to mana*e in
su)h a manner as to )onfine the *reater +art of the trade to
themsel'es and their +arti)ular friends- In the most an)ient
re*ulated )om+anies the +ri'ile*es of a++renti)eshi+ (ere the
same as in other )or+orations, and entitled the +erson (ho had
ser'ed his time to a mem&er of the )om+any to &e)ome himself a
mem&er, either (ithout +ayin* any fine, or u+on +ayin* a mu)h
smaller one than (hat (as e1a)ted of other +eo+le- The usual
)or+oration s+irit, (here'er the la( does not restrain it,
+re'ails in all re*ulated )om+anies- When they ha'e &een allo(ed
to a)t a))ordin* to their natural *enius, they ha'e al(ays, in
order to )onfine the )om+etition to as small a num&er of +ersons
as +ossi&le, endea'oured to su&2e)t the trade to many &urden some
re*ulations- When the la( has restrained them from doin* this,
they ha'e &e)ome alto*ether useless and insi*nifi)ant-
The re*ulated )om+anies for forei*n )ommer)e (hi)h at
+resent su&sist in 6reat .ritain are the an)ient mer)hant
ad'enturers= )om+any, no( )ommonly )alled the #am&ur* Com+any,
the Russia Com+any, the $astland Com+any, the Tur0ey Com+any, and
the Afri)an Com+any-
The terms of admission into the #am&ur* Com+any are no( said
to &e quite easy, and the dire)tors either ha'e it not their
+o(er to su&2e)t the trade to any &urdensome restraint or
re*ulations, or, at least, ha'e not of late e1er)ised that +o(er-
It has not al(ays &een so- A&out the middle of the last )entury,
the fine for admission (as fifty, and at one time one hundred
+ounds, and the )ondu)t of the )om+any (as said to &e e1tremely
o++ressi'e- In 16GB, in 16GH, and in 1661, the )lothiers and free
traders of the West of $n*land )om+lained of them to arliament
as of mono+olists (ho )onfined the trade and o++ressed the
manufa)tures of the )ountry- Thou*h those )om+laints +rodu)ed an
A)t of arliament, they had +ro&a&ly intimidated the )om+any so
far as to o&li*e them to reform their )ondu)t- Sin)e that time,
at least, there has &een no )om+laints a*ainst them- .y the 1Cth
and 11th of William III, )- 6, the fine for admission into the
Russia Com+any (as redu)ed to fi'e +ounds/ and &y the EHth of
Charles II, )- 7, that for admission into the $astland Com+any to
forty shillin*s, (hile, at the same time, S(eden, Denmar0, and
Nor(ay, all the )ountries on the north side of the .alti), (ere
e1em+ted from their e1)lusi'e )harter- The )ondu)t of those
)om+anies had +ro&a&ly *i'en o))asion to those t(o A)ts of
arliament- .efore that time, Sir Aosiah Child had re+resented
&oth these and the #am&ur* Com+any as e1tremely o++ressi'e, and
im+uted to their &ad mana*ement the lo( state of the trade (hi)h
(e at that time )arried on to the )ountries )om+rehended (ithin
their res+e)ti'e )harters- .ut thou*h su)h )om+anies may not, in
the +resent times, &e 'ery o++ressi'e, they are )ertainly
alto*ether useless- To &e merely useless, indeed, is +erha+s the
hi*hest eulo*y (hi)h )an e'er 2ustly &e &esto(ed u+on a re*ulated
)om+any/ and all the three )om+anies a&o'e mentioned seem, in
their +resent state, to deser'e this eulo*y-
The fine for admission into the Tur0ey Com+any (as formerly
t(enty8fi'e +ounds for all +ersons under t(enty8si1 years of a*e,
and fifty +ounds for all +ersons a&o'e that a*e- No&ody &ut mere
mer)hants )ould &e admitted/ a restri)tion (hi)h e1)luded all
sho+0ee+ers and retailers- .y a &ye8la(, no .ritish manufa)tures
)ould &e e1+orted to Tur0ey &ut in the *eneral shi+s of the
)om+any/ and as those shi+s sailed al(ays from the +ort of
!ondon, this restri)tion )onfined the trade to that e1+ensi'e
+ort, and the traders to those (ho li'ed in !ondon and in its
nei*h&ourhood- .y another &ye8la(, no +erson li'in* (ithin t(enty
miles of !ondon, and not free of the )ity, )ould &e admitted a
mem&er/ another restri)tion (hi)h, 2oined to the fore*oin*,
ne)essarily e1)luded all &ut the freemen of !ondon- As the time
for the loadin* and sailin* of those *eneral shi+s de+ended
alto*ether u+on the dire)tors, they )ould easily fill them (ith
their o(n *oods and those of their +arti)ular friends, to the
e1)lusion of others, (ho, they mi*ht +retend, had made their
+ro+osals too late- In this state of thin*s, therefore, this
)om+any (as in e'ery res+e)t a stri)t and o++ressi'e mono+oly-
Those a&uses *a'e o))asion to the a)t of the E6th of 6eor*e II,
)- 1?, redu)in* the fine for admission to t(enty +ounds for all
+ersons, (ithout any distin)tion of a*es, or any restri)tion,
either to mere mer)hants, or to the freemen of !ondon/ and
*rantin* to all su)h +ersons the li&erty of e1+ortin*, from all
the +orts of 6reat .ritain to any +ort in Tur0ey, all .ritish
*oods of (hi)h the e1+ortation (as not +rohi&ited/ and of
im+ortin* from then)e all Tur0ish *oods of (hi)h the im+ortation
(as not +rohi&ited, u+on +ayin* &oth the *eneral duties of
)ustoms, and the +arti)ular duties assessed for defrayin* the
ne)essary e1+enses of the )om+any/ and su&mittin*, at the same
time, to the la(ful authority of the .ritish am&assador and
)onsuls resident in Tur0ey, and to the &ye la(s of the )om+any
duly ena)ted- To +re'ent any o++ression &y those &ye8la(s, it (as
&y the same a)t ordained, that if any se'en mem&ers of the
)om+any )on)ei'ed themsel'es a**rie'ed &y any &ye8la( (hi)h
should &e ena)ted after the +assin* of this a)t, they mi*ht
a++eal to the .oard of Trade and lantations 9to the authority of
(hi)h a )ommittee of the ri'y Coun)il has no( su))eeded:,
+ro'ided su)h a++eal (as &rou*ht (ithin t(el'e months after the
&ye8la( (as ena)ted/ and that if any se'en mem&ers )on)ei'ed
themsel'es a**rie'ed &y any &ye8la( (hi)h had &een ena)ted &efore
the +assin* of this a)t, they mi*ht &rin* a li0e a++eal, +ro'ided
it (as (ithin t(el'e months after the day on (hi)h this a)t (as
to ta0e +la)e- The e1+erien)e of one year, ho(e'er, may not
al(ays &e suffi)ient to dis)o'er to all the mem&ers of a *reat
)om+any, the +erni)ious tenden)y of a +arti)ular &ye8la(/ and if
se'eral of them should after(ards dis)o'er it, neither the .oard
of Trade, nor the )ommittee of )oun)il, )an afford them any
redress- The o&2e)t, &esides, of the *reater +art of the &ye8la(s
of all re*ulated )om+anies, as (ell as of all other )or+orations,
is not so mu)h to o++ress those (ho are already mem&ers, as to
dis)oura*e others from &e)omin* so/ (hi)h may &e done, not only
&y a hi*h fine, &ut &y many other )ontri'an)es- The )onstant 'ie(
of su)h )om+anies is al(ays to raise the rate of their o(n +rofit
as hi*h as they )an/ to 0ee+ the mar0et, &oth for the *oods (hi)h
they e1+ort, and for those (hi)h they im+ort, as mu)h
understo)0ed as they )an3 (hi)h )an &e done only &y restrainin*
the )om+etition, or &y dis)oura*in* ne( ad'enturers from enterin*
into the trade- A fine e'en of t(enty +ounds, &esides, thou*h it
may not +erha+s &e suffi)ient to dis)oura*e any man from enterin*
into the Tur0ey trade (ith an intention to )ontinue in it, may &e
enou*h to dis)oura*e a s+e)ulati'e mer)hant from ha;ardin* a
sin*le ad'enture in it- In all trades, the re*ular esta&lished
traders, e'en thou*h not in)or+orated, naturally )om&ine to raise
+rofits, (hi)h are no(ay so li0ely to &e 0e+t, at all times, do(n
to their +ro+er le'el, as &y the o))asional )om+etition of
s+e)ulati'e ad'enture- The Tur0ey trade, thou*h in some measure
laid o+en &y this A)t of arliament, is still )onsidered &y many
+eo+le as 'ery far from &ein* alto*ether free- The Tur0ey Com+any
)ontri&ute to maintain an am&assador and t(o or three )onsuls,
(ho, li0e other +u&li) ministers, ou*ht to &e maintained
alto*ether &y the state, and the trade laid o+en to all his
4a2esty=s su&2e)ts- The different ta1es le'ied &y the )om+any,
for this and other )or+oration +ur+oses, mi*ht afford a'enue mu)h
more than suffi)ient to ena&le the state to maintain su)h
ministers-
Re*ulated )om+anies, it (as o&ser'ed &y Sir Aosiah Child,
thou*h they had frequently su++orted +u&li) ministers, had ne'er
maintained any forts or *arrisons in the )ountries to (hi)h they
traded/ (hereas 2oint sto)0 )om+anies frequently had- And in
reality the former seem to &e mu)h more unfit for this sort of
ser'i)e than the latter- "irst, the dire)tors of a re*ulated
)om+any ha'e no +arti)ular interest in the +ros+erity of the
*eneral trade of the )om+any for the sa0e of (hi)h su)h forts and
*arrisons are maintained- The de)ay of that *eneral trade may
e'en frequently )ontri&ute to the ad'anta*e of their o(n +ri'ate
trade/ as &y diminishin* the num&er of their )om+etitors it may
ena&le them &oth to &uy )hea+er, and to sell dearer- The
dire)tors of a 2oint sto)0 )om+any, on the )ontrary, ha'in* only
their share in the +rofits (hi)h are made u+on the )ommon sto)0
)ommitted to their mana*ement, ha'e no +ri'ate trade of their o(n
of (hi)h the interest )an &e se+arated from that of the *eneral
trade of the )om+any- Their +ri'ate interest is )onne)ted (ith
the +ros+erity of the *eneral trade of the )om+any, and (ith the
maintenan)e of the forts and *arrisons (hi)h are ne)essary for
its defen)e- They are more li0ely, therefore, to ha'e that
)ontinual and )areful attention (hi)h that maintenan)e
ne)essarily requires- Se)ondly, the dire)tors of a 2oint sto)0
)om+any ha'e al(ays the mana*ement of a lar*e )a+ital, the 2oint
sto)0 of the )om+any, a +art of (hi)h they may frequently em+loy,
(ith +ro+riety, in &uildin*, re+airin*, and maintainin* su)h
ne)essary forts and *arrisons- .ut the dire)tors of a re*ulated
)om+any, ha'in* the mana*ement of no )ommon )a+ital, ha'e no
other fund to em+loy in this (ay &ut the )asual re'enue arisin*
from the admission fines, and from the )or+oration duties im+osed
u+on the trade of the )om+any- Thou*h they had the same interest,
therefore, to attend to the maintenan)e of su)h forts and
*arrisons, they )an seldom ha'e the same a&ility to render that
attention effe)tual- The maintenan)e of a +u&li) minister
requirin* s)ar)e any attention, and &ut a moderate and limited
e1+ense, is a &usiness mu)h more suita&le &oth to the tem+er and
a&ilities of a re*ulated )om+any-
!on* after the time of Sir Aosiah Child, ho(e'er, in 17HC, a
re*ulated )om+any (as esta&lished, the +resent )om+any of
mer)hants tradin* to Afri)a, (hi)h (as e1+ressly )har*ed at first
(ith the maintenan)e of all the .ritish forts and *arrisons that
lie &et(een Ca+e .lan) and the Ca+e of 6ood #o+e, and after(ards
(ith that of those only (hi)h lie &et(een Ca+e Rou*e and the Ca+e
of 6ood #o+e- The a)t (hi)h esta&lishes this )om+any 9the EBrd of
6eor*e II, )- B: seems to ha'e had t(o distin)t o&2e)ts in 'ie(/
first, to restrain effe)tually the o++ressi'e and mono+oli;in*
s+irit (hi)h is natural to the dire)tors of a re*ulated )om+any/
and se)ondly, to for)e them, as mu)h as +ossi&le, to *i'e an
attention, (hi)h is not natural to them, to(ards the maintenan)e
of forts and *arrisons-
"or the first of these +ur+oses the fine for admission is
limited to forty shillin*s- The )om+any is +rohi&ited from
tradin* in their )or+orate )a+a)ity, or u+on a 2oint sto)0/ from
&orro(in* money u+on )ommon seal, or from layin* any restraints
u+on the trade (hi)h may &e )arried on freely from all +la)es,
and &y all +ersons &ein* .ritish su&2e)ts, and +ayin* the fine-
The *o'ernment is in a )ommittee of nine +ersons (ho meet at
!ondon, &ut (ho are )hosen annually &y the freemen of the )om+any
at !ondon, .ristol, and !i'er+ool/ three from ea)h +la)e- No
)ommittee8man )an &e )ontinued in offi)e for more than three
years to*ether- Any )ommittee8man mi*ht &e remo'ed &y the .oard
of Trade and lantations, no( &y a )ommittee )oun)il, after &ein*
heard in his o(n defen)e- The )ommittee are for&id to e1+ort
ne*roes from Afri)a, or to im+ort any Afri)an *oods into 6reat
.ritain- .ut as they are )har*ed (ith the maintenan)e of forts
and *arrisons, they may, for that +ur+ose, e1+ort from 6reat
.ritain to Afri)a *oods and stores of different 0inds- Out of the
monies (hi)h they shall re)ei'e from the )om+any, they are
allo(ed a sum not e1)eedin* ei*ht hundred +ounds for the salaries
of their )ler0s and a*ents at !ondon, .ristol, and !i'er+ool, the
house rent of their offi)e at !ondon, and all other e1+enses of
mana*ement, )ommission, and a*en)y in $n*land- What remains of
this sum, after defrayin* these different e1+enses, they may
di'ide amon* themsel'es, as )om+ensation for their trou&le, in
(hat manner they thin0 +ro+er- .y this )onstitution, it mi*ht
ha'e &een e1+e)ted that the s+irit of mono+oly (ould ha'e &een
effe)tually restrained, and the first of these +ur+oses
suffi)iently ans(ered- It (ould seem, ho(e'er, that it had not-
Thou*h &y the Gth of 6eor*e III, )- EC, the fort of Sene*al, (ith
all its de+enden)ies, had &een 'ested in the )om+any of mer)hants
tradin* to Afri)a, yet in the year follo(in* 9&y the Hth of
6eor*e III, )- GG: not only Sene*al and its de+enden)ies, &ut the
(hole )oast from the +ort of Sallee, in south .ar&ary, to Ca+e
Rou*e, (as e1em+ted from the 2urisdi)tion of that )om+any, (as
'ested in the )ro(n, and the trade to it de)lared free to all his
4a2esty=s su&2e)ts- The )om+any had &een sus+e)ted of restrainin*
the trade, and of esta&lishin* some sort of im+ro+er mono+oly- It
is not, ho(e'er, 'ery easy to )on)ei'e ho(, under the re*ulations
of the EBrd of 6eor*e II, they )ould do so- In the +rinted
de&ates of the #ouse of Commons, not al(ays the most authenti)
re)ords of truth, I o&ser'e, ho(e'er, that they ha'e &een a))used
of this- The mem&ers of the )ommittee of nine, &ein* all
mer)hants, and the *o'ernors and fa)tors, in their different
forts and settlements, &ein* all de+endent u+on them, it is not
unli0ely that the latter mi*ht ha'e *i'en +e)uliar attention to
the )onsi*nments and )ommissions of the former (hi)h (ould
esta&lish a real mono+oly-
"or the se)ond of these, +ur+oses, the maintenan)e of the
forts and *arrisons, an annual sum has &een allotted to them &y
arliament, *enerally a&out !1B,CCC- "or the +ro+er a++li)ation
of this sum, the )ommittee is o&li*ed to a))ount annually to the
Cursitor .aron of $1)hequer/ (hi)h a))ount is after(ards to &e
laid &efore arliament- .ut arliament, (hi)h *i'es so little
attention to the a++li)ation of millions, is not li0ely to *i'e
mu)h to that of !1B,CCC a year/ and the Cursitor .aron of
$1)hequer, from his +rofession and edu)ation, is not li0ely to &e
+rofoundly s0illed in the +ro+er e1+ense of forts and *arrisons-
The )a+tains of his 4a2esty=s na'y, indeed, or any other
)ommissioned offi)ers a++ointed &y the .oard of Admiralty, may
inquire into the )ondition of the forts and *arrisons, and re+ort
their o&ser'ations to that &oard- .ut that &oard seems to ha'e no
dire)t 2urisdi)tion o'er the )ommittee, nor any authority to
)orre)t those (hose )ondu)t it may thus inquire into/ and the
)a+tains of his 4a2esty=s na'y, &esides, are not su++osed to &e
al(ays dee+ly learned in the s)ien)e of fortifi)ation- Remo'al
from an offi)e (hi)h )an &e en2oyed only for the term of three
years, and of (hi)h the la(ful emoluments, e'en durin* that term,
are so 'ery small, seems to &e the utmost +unishment to (hi)h any
)ommittee8man is lia&le for any fault, e1)e+t dire)t
mal'ersation, or em&e;;lement, either of the +u&li) money, or of
that of the )om+any/ and the fear of that +unishment )an ne'er &e
a moti'e of suffi)ient (ei*ht to for)e a )ontinual and )areful
attention to a &usiness to (hi)h he has no other interest to
attend- The )ommittee are a))used of ha'in* sent out &ri)0s and
stones from $n*land for the re+aration of Ca+e Coast Castle on
the )oast of 6uinea, a &usiness for (hi)h arliament had se'eral
times *ranted an e1traordinary sum of money- These &ri)0s and
stones too, (hi)h had thus &een sent u+on so lon* a 'oya*e, (ere
said to ha'e &een of so &ad a quality that it (as ne)essary to
re&uild from the foundation the (alls (hi)h had &een re+aired
(ith them- The forts and *arrisons (hi)h lie north of Ca+e Rou*e
are not only maintained at the e1+ense of the state, &ut are
under the immediate *o'ernment of the e1e)uti'e +o(er/ and (hy
those (hi)h lie south of that Ca+e, and (hi)h are, in +art at
least, maintained at the e1+ense of the state, should &e under a
different *o'ernment, it seems not 'ery easy e'en to ima*ine a
*ood reason- The +rote)tion of the 4editerranean trade (as the
ori*inal +ur+ose of +reten)e of the *arrisons of 6i&raltar and
4inor)a, and the maintenan)e and *o'ernment of those *arrisons
has al(ays &een, 'ery +ro+erly, )ommitted, not to the Tur0ey
Com+any, &ut to the e1e)uti'e +o(er- In the e1tent of its
dominion )onsists, in a *reat measure, the +ride and di*nity of
that +o(er/ and it is not 'ery li0ely to fail in attention to
(hat is ne)essary for the defen)e of that dominion- The *arrisons
at 6i&raltar and 4inor)a, a))ordin*ly, ha'e ne'er &een ne*le)ted/
thou*h 4inor)a has &een t(i)e ta0en, and is no( +ro&a&ly lost for
e'er, that disaster (as ne'er e'en im+uted to any ne*le)t in the
e1e)uti'e +o(er- I (ould not, ho(e'er, &e understood to insinuate
that either of those e1+ensi'e *arrisons (as e'er, e'en in the
smallest de*ree, ne)essary for the +ur+ose for (hi)h they (ere
ori*inally dismem&ered from the S+anish monar)hy- That
dismem&erment, +erha+s, ne'er ser'ed any other real +ur+ose than
to alienate from $n*land her natural ally the %in* of S+ain, and
to unite the t(o +rin)i+al &ran)hes of the house of .our&on in a
mu)h stri)ter and more +ermanent allian)e than the ties of &lood
)ould e'er ha'e united them-
Aoint sto)0 )om+anies, esta&lished &y Royal Charter or &y
A)t of arliament, differ in se'eral res+e)ts, not only from
re*ulated )om+anies, &ut from +ri'ate )o+artneries-
"irst, in a +ri'ate )o+artnery, no +artner, (ithout the
)onsent of the )om+any, )an transfer his share to another +erson,
or introdu)e a ne( mem&er into the )om+any- $a)h mem&er, ho(e'er,
may, u+on +ro+er (arnin*, (ithdra( from the )o+artnery, and
demand +ayment from them of his share of the )ommon sto)0- In a
2oint sto)0 )om+any, on the )ontrary, no mem&er )an demand
+ayment of his share from the )om+any/ &ut ea)h mem&er )an,
(ithout their )onsent, transfer his share to another +erson, and
there&y introdu)e a ne( mem&er- The 'alue of a share in a 2oint
sto)0 is al(ays the +ri)e (hi)h it (ill &rin* in the mar0et/ and
this may &e either *reater or less, in any +ro+ortion, than the
sum (hi)h its o(ner stands )redited for in the sto)0 of the
)om+any-
Se)ondly, in a +ri'ate )o+artnery, ea)h +artner is &ound for
the de&ts )ontra)ted &y the )om+any to the (hole e1tent of his
fortune- In a 2oint sto)0 )om+any, on the )ontrary, ea)h +artner
is &ound only to the e1tent of his share-
The trade of a 2oint sto)0 )om+any is al(ays mana*ed &y a
)ourt of dire)tors- This )ourt, indeed, is frequently su&2e)t, in
many res+e)ts, to the )ontrol of a *eneral )ourt of +ro+rietors-
.ut the *reater +art of those +ro+rietors seldom +retend to
understand anythin* of the &usiness of the )om+any, and (hen the
s+irit of fa)tion ha++ens not to +re'ail amon* them, *i'e
themsel'es no trou&le a&out it, &ut re)ei'e )ontentedly su)h
half8yearly or yearly di'idend as the dire)tors thin0 +ro+er to
ma0e to them- This total e1em+tion from trou&le and from ris0,
&eyond a limited sum, en)oura*es many +eo+le to &e)ome
ad'enturers in 2oint sto)0 )om+anies, (ho (ould, u+on no a))ount,
ha;ard their fortunes in any +ri'ate )o+artnery- Su)h )om+anies,
therefore, )ommonly dra( to themsel'es mu)h *reater sto)0s than
any +ri'ate )o+artnery )an &oast of- The tradin* sto)0 of the
South Sea Com+any, at one time, amounted to u+(ards of
thirty8three millions ei*ht hundred thousand +ounds- The di'ided
)a+ital of the .an0 of $n*land amounts, at +resent, to ten
millions se'en hundred and ei*hty thousand +ounds- The dire)tors
of su)h )om+anies, ho(e'er, &ein* the mana*ers rather of other
+eo+le=s money than of their o(n, it )annot (ell &e e1+e)ted that
they should (at)h o'er it (ith the same an1ious 'i*ilan)e (ith
(hi)h the +artners in a +ri'ate )o+artnery frequently (at)h o'er
their o(n- !i0e the ste(ards of a ri)h man, they are a+t to
)onsider attention to small matters as not for their master=s
honour, and 'ery easily *i'e themsel'es a dis+ensation from
ha'in* it- Ne*li*en)e and +rofusion, therefore, must al(ays
+re'ail, more or less, in the mana*ement of the affairs of su)h a
)om+any- It is u+on this a))ount that 2oint sto)0 )om+anies for
forei*n trade ha'e seldom &een a&le to maintain the )om+etition
a*ainst +ri'ate ad'enturers- They ha'e, a))ordin*ly, 'ery seldom
su))eeded (ithout an e1)lusi'e +ri'ile*e, and frequently ha'e not
su))eeded (ith one- Without an e1)lusi'e +ri'ile*e they ha'e
)ommonly mismana*ed the trade- With an e1)lusi'e +ri'ile*e they
ha'e &oth mismana*ed and )onfined it-
The Royal Afri)an Com+any, the +rede)essors of the +resent
Afri)an Com+any, had an e1)lusi'e +ri'ile*e &y )harter, &ut as
that )harter had not &een )onfirmed &y A)t of arliament, the
trade, in )onsequen)e of the De)laration of Ri*hts, (as, soon
after the re'olution, laid o+en to all his 4a2esty=s su&2e)ts-
The #udson=s .ay Com+any are, as to their le*al ri*hts, in the
same situation as the Royal Afri)an Com+any- Their e1)lusi'e
)harter has not &een )onfirmed &y A)t of arliament- The South
Sea Com+any, as lon* as they )ontinued to &e a tradin* )om+any,
had an e1)lusi'e +ri'ile*e )onfirmed &y A)t of arliament/ as
ha'e li0e(ise the +resent United Com+any of 4er)hants tradin* to
the $ast Indies-
The Royal Afri)an Com+any soon found that they )ould not
maintain the )om+etition a*ainst +ri'ate ad'enturers, (hom,
not(ithstandin* the De)laration of Ri*hts, they )ontinued for
some time to )all interlo+ers, and to +erse)ute as su)h- In 16F?,
ho(e'er, the +ri'ate ad'enturers (ere su&2e)ted to a duty of ten
+er )ent u+on almost all the different &ran)hes of their trade,
to &e em+loyed &y the )om+any in the maintenan)e of their forts
and *arrisons .ut, not(ithstandin* this hea'y ta1, the )om+any
(ere still una&le to maintain the )om+etition- Their sto)0 and
)redit *radually de)lined- In 171E, their de&ts had &e)ome so
*reat that a +arti)ular A)t of arliament (as thou*ht ne)essary,
&oth for their se)urity and for that of their )reditors- It (as
ena)ted that the resolution of t(o8thirds of these )reditors in
num&er and 'alue should &ind the rest, &oth (ith re*ard to the
time (hi)h should &e allo(ed to the )om+any for the +ayment of
their de&ts, and (ith re*ard to any other a*reement (hi)h it
mi*ht &e thou*ht +ro+er to ma0e (ith them )on)ernin* those de&ts-
In 17BC, their affairs (ere in so *reat disorder that they (ere
alto*ether in)a+a&le of maintainin* their forts and *arrisons,
the sole +ur+ose and +rete1t of their institution- "rom that
year, till their final dissolution, the arliament 2ud*ed it
ne)essary to allo( the annual sum of ten thousand +ounds for that
+ur+ose- In 17BE, after ha'in* &een for many years losers &y the
trade of )arryin* ne*roes to the West Indies, they at last
resol'ed to *i'e it u+ alto*ether/ to sell to the +ri'ate traders
to Ameri)a the ne*roes (hi)h they +ur)hased u+on the )oast/ and
to em+loy their ser'ants in a trade to the inland +arts of Afri)a
for *old dust, ele+hants= teeth, dyein* dru*s, et)- .ut their
su))ess in this more )onfined trade (as not *reater than in their
former e1tensi'e one- Their affairs )ontinued to *o *radually to
de)line, till at last, &ein* in e'ery res+e)t a &an0ru+t )om+any,
they (ere dissol'ed &y A)t of arliament, and their forts and
*arrisons 'ested in the +resent re*ulated )om+any of mer)hants
tradin* to Afri)a- .efore the ere)tion of the Royal Afri)an
Com+any, there had &een three other 2oint sto)0 )om+anies
su))essi'ely esta&lished, one after another, for the Afri)an
trade- They (ere all equally unsu))essful- They all, ho(e'er, had
e1)lusi'e )harters, (hi)h, thou*h not )onfirmed &y A)t of
arliament, (ere in those days su++osed to )on'ey a real
e1)lusi'e +ri'ile*e-
The #udson=s .ay Com+any, &efore their misfortunes in the
late (ar, had &een mu)h more fortunate than the Royal Afri)an
Com+any- Their ne)essary e1+ense is mu)h smaller- The (hole
num&er of +eo+le (hom they maintain in their different
settlements and ha&itations, (hi)h they ha'e honoured (ith the
name of forts, is said not to e1)eed a hundred and t(enty
+ersons- This num&er, ho(e'er, is suffi)ient to +re+are
&eforehand the )ar*o of furs and other *oods ne)essary for
loadin* their shi+s, (hi)h, on a))ount of the i)e, )an seldom
remain a&o'e si1 or ei*ht (ee0s in those seas- This ad'anta*e of
ha'in* a )ar*o ready +re+ared )ould not for se'eral years &e
a)quired &y +ri'ate ad'enturers, and (ithout it there seems to &e
no +ossi&ility of tradin* to #udson=s .ay- The moderate )a+ital
of the )om+any, (hi)h, it is said, does not e1)eed one hundred
and ten thousand +ounds, may &esides &e suffi)ient to ena&le them
to en*ross the (hole, or almost the (hole, trade and sur+lus
+rodu)e of the misera&le, thou*h e1tensi'e )ountry, )om+rehended
(ithin their )harter- No +ri'ate ad'enturers, a))ordin*ly, ha'e
e'er attem+ted to trade to that )ountry in )om+etition (ith them-
This )om+any, therefore, ha'e al(ays en2oyed an e1)lusi'e trade
in fa)t, thou*h they may ha'e no ri*ht to it in la(- O'er and
a&o'e all this, the moderate )a+ital of this )om+any is said to
&e di'ided amon* a 'ery small num&er of +ro+rietors- .ut a 2oint
sto)0 )om+any, )onsistin* of a small num&er of +ro+rietors, (ith
a moderate )a+ital, a++roa)hes 'ery nearly to the nature of a
+ri'ate )o+artnery, and may &e )a+a&le of nearly the same de*ree
of 'i*ilan)e and attention- It is not to &e (ondered at,
therefore, if, in )onsequen)e of these different ad'anta*es, the
#udson=s .ay Com+any had, &efore the late (ar, &een a&le to )arry
on their trade (ith a )onsidera&le de*ree of su))ess- It does not
seem +ro&a&le, ho(e'er, that their +rofits e'er a++roa)hed to
(hat the late 4r- Do&&s ima*ined them- A mu)h more so&er and
2udi)ious (riter, 4r- Anderson, author of The #istori)al and
Chronolo*i)al Dedu)tion of Commer)e, 'ery 2ustly o&ser'es that,
u+on e1aminin* the a))ounts of (hi)h 4r- Do&&s himself (as *i'en
for se'eral years to*ether of their e1+orts and im+orts, and u+on
ma0in* +ro+er allo(an)es for their e1traordinary ris0 and
e1+ense, it does not a++ear that their +rofits deser'e to &e
en'ied, or that they )an mu)h, if at all, e1)eed the ordinary
+rofits of trade-
The South Sea Com+any ne'er had any forts or *arrisons to
maintain, and therefore (ere entirely e1em+ted from one *reat
e1+ense to (hi)h other 2oint sto)0 )om+anies for forei*n trade
are su&2e)t- .ut they had an immense )a+ital di'ided amon* an
immense num&er of +ro+rietors- It (as naturally to &e e1+e)ted,
therefore, that folly, ne*li*en)e, and +rofusion should +re'ail
in the (hole mana*ement of their affairs- The 0na'ery and
e1tra'a*an)e of their sto)082o&&in* +ro2e)ts are suffi)iently
0no(n, and the e1+li)ation of them (ould &e forei*n to the
+resent su&2e)t- Their mer)antile +ro2e)ts (ere not mu)h &etter
)ondu)ted- The first trade (hi)h they en*a*ed in (as that of
su++lyin* the S+anish West Indies (ith ne*roes, of (hi)h 9in
)onsequen)e of (hat (as )alled the Assiento )ontra)t *ranted them
&y the Treaty of Utre)ht: they had the e1)lusi'e +ri'ile*e- .ut
as it (as not e1+e)ted that mu)h +rofit )ould &e made &y this
trade, &oth the ortu*uese and "ren)h )om+anies, (ho had en2oyed
it u+on the same terms &efore them, ha'in* &een ruined &y it,
they (ere allo(ed, as )om+ensation, to send annually a shi+ of a
)ertain &urden to trade dire)tly to the S+anish West Indies- Of
the ten 'oya*es (hi)h this annual shi+ (as allo(ed to ma0e, they
are said to ha'e *ained )onsidera&ly &y one, that of the Royal
Caroline in 17B1, and to ha'e &een losers, more or less, &y
almost all the rest- Their ill su))ess (as im+uted, &y their
fa)tors and a*ents, to the e1tortion and o++ression of the
S+anish *o'ernment/ &ut (as, +erha+s, +rin)i+ally o(in* to the
+rofusion and de+redations of those 'ery fa)tors and a*ents, some
of (hom are said to ha'e a)quired *reat fortunes e'en in one
year- In 17BG, the )om+any +etitioned the 0in* that they mi*ht &e
allo(ed to dis+ose of the trade and tonna*e of their annual shi+,
on a))ount of the little +rofit (hi)h they made &y it, and to
a))e+t su)h equi'alent as they )ould o&tain from the of S+ain-
In 17EG, this )om+any had underta0en the (hale8fishery- Of
this, indeed, they had no mono+oly/ &ut as lon* as they )arried
it on, no other .ritish su&2e)ts a++ear to ha'e en*a*ed in it- Of
the ei*ht 'oya*es (hi)h their shi+s made to 6reenland, they (ere
*ainers &y one, and losers &y all the rest- After their ei*hth
and last 'oya*e, (hen they had sold their shi+s, stores, and
utensils, they found that their (hole loss, u+on this &ran)h,
)a+ital and interest in)luded, amounted to u+(ards of t(o hundred
and thirty8se'en thousand +ounds-
In 17EE, this )om+any +etitioned the arliament to &e
allo(ed to di'ide their immense )a+ital of more than thirty8three
millions ei*ht hundred thousand +ounds, the (hole of (hi)h had
&een lent to *o'ernment, into t(o equal +arts3 The one half, or
u+(ards of si1teen millions nine hundred thousand +ounds, to &e
+ut u+on the same footin* (ith other *o'ernment annuities, and
not to &e su&2e)t to the de&ts )ontra)ted, or losses in)urred, &y
the dire)tors of the )om+any in the +rose)ution of their
mer)antile +ro2e)ts/ the other half to remain, as &efore, a
tradin* sto)0, and to &e su&2e)t to those de&ts and losses- The
+etition (as too reasona&le not to &e *ranted- In 17BB, they
a*ain +etitioned the arliament that three8fourths of their
tradin* sto)0 mi*ht &e turned into annuity sto)0, and only
one8fourth remain as tradin* sto)0, or e1+osed to the ha;ards
arisin* from the &ad mana*ement of their dire)tors- .oth their
annuity and tradin* sto)0s had, &y this time, &een redu)ed more
than t(o millions ea)h &y se'eral different +ayments from
*o'ernment/ so that this fourth amounted only to !B,66E,7?G ?s-
6d- In 17G?, all the demands of the )om+any u+on the %in* of
S+ain, in )onsequen)e of the Assiento )ontra)t, (ere, &y the
Treaty of Ai18la8Cha+elle, *i'en u+ for (hat (as su++osed an
equi'alent- An end (as +ut to their trade (ith the S+anish West
Indies, the remainder of their tradin* sto)0 (as turned into an
annuity sto)0, and the )om+any )eased in e'ery res+e)t to &e a
tradin* )om+any-
It ou*ht to &e o&ser'ed that in the trade (hi)h the South
Sea Com+any )arried on &y means of their annual shi+, the only
trade &y (hi)h it e'er (as e1+e)ted that they )ould ma0e any
)onsidera&le +rofit, they (ere not (ithout )om+etitors, either in
the forei*n or in the home mar0et- At Cartha*ena, orto .ello,
and !a 5era Cru;, they had to en)ounter the )om+etition of the
S+anish mer)hants, (ho &rou*ht from Cadi;, to those mar0ets,
$uro+ean *oods of the same 0ind (ith the out(ard )ar*o of their
shi+/ and in $n*land they had to en)ounter that of the $n*lish
mer)hants, (ho im+orted from Cadi; *oods of the S+anish West
Indies of the same 0ind (ith the in(ard )ar*o- The *oods &oth of
the S+anish and $n*lish mer)hants, indeed, (ere, +erha+s, su&2e)t
to hi*her duties- .ut the loss o))asioned &y the ne*li*en)e,
+rofusion, and mal'ersation of the ser'ants of the )om+any had
+ro&a&ly &een a ta1 mu)h hea'ier than all those duties- That a
2oint sto)0 )om+any should &e a&le to )arry on su))essfully any
&ran)h of forei*n trade, (hen +ri'ate ad'enturers )an )ome into
any sort of o+en and fair )om+etition (ith them, seems )ontrary
to all e1+erien)e-
The old $n*lish $ast India Com+any (as esta&lished in 16CC
&y a )harter from Jueen $li;a&eth- In the first t(el'e 'oya*es
(hi)h they fitted out for India, they a++ear to ha'e traded as a
re*ulated )om+any, (ith se+arate sto)0s, thou*h only in the
*eneral shi+s of the )om+any- In 161E, they united into a 2oint
sto)0- Their )harter (as e1)lusi'e, and thou*h not )onfirmed &y
A)t of arliament, (as in those days su++osed to )on'ey a real
e1)lusi'e +ri'ile*e- "or many years, therefore, they (ere not
mu)h distur&ed &y interlo+ers- Their )a+ital, (hi)h ne'er
e1)eeded se'en hundred and forty8four thousand +ounds, and of
(hi)h fifty +ounds (as a share, (as not so e1or&itant, nor their
dealin*s so e1tensi'e, as to afford either a +rete1t for *ross
ne*li*en)e and +rofusion, or a )o'er to *ross mal'ersation-
Not(ithstandin* some e1traordinary losses, o))asioned +artly &y
the mali)e of the Dut)h $ast India Com+any, and +artly &y other
a))idents, they )arried on for many years a su))essful trade- .ut
in +ro)ess of time, (hen the +rin)i+les of li&erty (ere &etter
understood, it &e)ame e'ery day more and more dou&tful ho( far a
Royal Charter, not )onfirmed &y A)t of arliament, )ould )on'ey
an e1)lusi'e +ri'ile*e- U+on this question the de)isions of the
)ourts of 2usti)e (ere not uniform, &ut 'aried (ith the authority
of *o'ernment and the humours of the times- Interlo+ers
multi+lied u+on them, and to(ards the end of the rei*n of Charles
II, throu*h the (hole of that of Aames II and durin* a +art of
that of William III, redu)ed them to *reat distress- In 16F?, a
+ro+osal (as made to arliament of ad'an)in* t(o millions to
*o'ernment at ei*ht +er )ent, +ro'ided the su&s)ri&ers (ere
ere)ted into a ne( $ast India Com+any (ith e1)lusi'e +ri'ile*es-
The old $ast India Com+any offered se'en hundred thousand +ounds,
nearly the amount of their )a+ital, at four +er )ent u+on the
same )onditions- .ut su)h (as at that time the state of +u&li)
)redit, that it (as more )on'enient for *o'ernment to &orro( t(o
millions at ei*ht +er )ent than se'en hundred thousand +ounds at
four- The +ro+osal of the ne( su&s)ri&ers (as a))e+ted, and a ne(
$ast India Com+any esta&lished in )onsequen)e- The old $ast India
Com+any, ho(e'er, had a ri*ht to )ontinue their trade till 17C1-
They had, at the same time, in the name of their treasurer,
su&s)ri&ed, 'ery artfully, three hundred and fifteen thousand
+ounds into the sto)0 of the ne(- .y a ne*li*en)e in the
e1+ression of the A)t of arliament (hi)h 'ested the $ast India
trade in the su&s)ri&ers to this loan of t(o millions, it did not
a++ear e'ident that they (ere all o&li*ed to unite into a 2oint
sto)0- A fe( +ri'ate traders, (hose su&s)ri+tions amounted only
to se'en thousand t(o hundred +ounds, insisted u+on the +ri'ile*e
of tradin* se+arately u+on their o(n sto)0s and at their o(n
ris0- The old $ast India Com+any had a ri*ht to a se+arate trade
u+on their old sto)0 till 17C1/ and they had li0e(ise, &oth
&efore and after that +eriod, a ri*ht, li0e that of other +ri'ate
traders, to a se+arate trade u+on the three hundred and fifteen
thousand +ounds (hi)h they had su&s)ri&ed into the sto)0 of the
ne( )om+any- The )om+etition of the t(o )om+anies (ith the
+ri'ate traders, and (ith one another, is said to ha'e (ell8ni*h
ruined &oth- U+on a su&sequent o))asion, in 17BC, (hen a +ro+osal
(as made to arliament for +uttin* the trade under the mana*ement
of a re*ulated )om+any, and there&y layin* it in some measure
o+en, the $ast India Com+any, in o++osition to this +ro+osal,
re+resented in 'ery stron* terms (hat had &een, at this time, the
misera&le effe)ts, as they thou*ht them, of this )om+etition- In
India, they said, it raised the +ri)e of *oods so hi*h that they
(ere not (orth the &uyin*/ and in $n*land, &y o'ersto)0in* the
mar0et, it sun0 their +ri)e so lo( that no +rofit )ould &e made
&y them- That &y a more +lentiful su++ly, to the *reat ad'anta*e
and )on'enien)y of the +u&li), it must ha'e redu)ed, 'ery mu)h,
the +ri)e of Indian *oods in the $n*lish mar0et, )annot (ell &e
dou&ted/ &ut that it should ha'e raised 'ery mu)h their +ri)e in
the Indian mar0et seems not 'ery +ro&a&le, as all the
e1traordinary demand (hi)h that )om+etition )ould o))asion must
ha'e &een &ut as a dro+ of (ater in the immense o)ean of Indian
Commer)e- The in)rease of demand, &esides, thou*h in the
&e*innin* it may sometimes raise the +ri)e of *oods, ne'er fails
to lo(er it in the run- It en)oura*es +rodu)tion, and there&y
in)reases the )om+etition of the +rodu)ers, (ho, in order to
undersell one another, ha'e re)ourse to ne( di'isions of la&our
and ne( im+ro'ements of art (hi)h mi*ht ne'er other(ise ha'e &een
thou*ht of- The misera&le effe)ts of (hi)h the )om+any )om+lained
(ere the )hea+ness of )onsum+tion and the en)oura*ement *i'en to
+rodu)tion, +re)isely the t(o effe)ts (hi)h it is the *reat
&usiness of +oliti)al e)onomy to +romote- The )om+etition,
ho(e'er, of (hi)h they *a'e this doleful a))ount, had not &een
allo(ed to &e of lon* )ontinuan)e- In 17CE, the t(o )om+anies
(ere, in some measure, united &y an indenture tri+artite, to
(hi)h the queen (as the third +arty/ and in 17C?, they (ere, &y
A)t of arliament, +erfe)tly )onsolidated into one )om+any &y
their +resent name of the The United Com+any of 4er)hants tradin*
to the $ast Indies- Into this a)t it (as thou*ht (orth (hile to
insert a )lause allo(in* the se+arate traders to )ontinue their
trade till 4i)haelmas 1711, &ut at the same time em+o(erin* the
dire)tors, u+on three years= noti)e, to redeem their little
)a+ital of se'en thousand t(o hundred +ounds, and there&y to
)on'ert the (hole sto)0 of the )om+any into a 2oint sto)0- .y the
same a)t, the )a+ital of the )om+any, in )onsequen)e of a ne(
loan to *o'ernment, (as au*mented from t(o millions to three
millions t(o hundred thousand +ounds- In 17GB, the )om+any
ad'an)ed another million to *o'ernment- .ut this million &ein*
raised, not &y a )all u+on the +ro+rietors, &ut &y sellin*
annuities and )ontra)tin* &ond8de&ts, it did not au*ment the
sto)0 u+on (hi)h the +ro+rietors )ould )laim a di'idend- It
au*mented, ho(e'er, their tradin* sto)0, it &ein* equally lia&le
(ith the other three millions t(o hundred thousand +ounds to the
losses sustained, and de&ts )ontra)ted, &y the )om+any in
+rose)ution of their mer)antile +ro2e)ts- "rom 17C?, or at least
from 1711, this )om+any, &ein* deli'ered from all )om+etitors,
and fully esta&lished in the mono+oly of the $n*lish )ommer)e to
the $ast Indies, )arried on a su))essful trade, and from their
+rofits made annually a moderate di'idend to their +ro+rietors-
Durin* the "ren)h (ar, (hi)h &e*an in 17G1, the am&ition of 4r-
Du+lei1, the "ren)h *o'ernor of ondi)herry, in'ol'ed them in the
(ars of the Carnati), and in the +oliti)s of the Indian +rin)es-
After many si*nal su))esses, and equally si*nal losses, they at
last lost 4adras, at that time their +rin)i+al settlement in
India- It (as restored to them &y the Treaty of Ai18la8Cha+elle/
and a&out this time the s+irit of (ar and )onquest seems to ha'e
ta0en +ossession of their ser'ants in India, and ne'er sin)e to
ha'e left them- Durin* the "ren)h (ar, (hi)h &e*an in 17HH, their
arms +artoo0 of the *eneral *ood fortune of those of 6reat
.ritain- They defended 4adras, too0 ondi)herry, re)o'ered
Cal)utta, and a)quired the re'enues of a ri)h and e1tensi'e
territory, amountin*, it (as then said, to u+(ards of three
millions a year- They remained for se'eral years in quiet
+ossession of this re'enue3 &ut in 1767, administration laid
)laim to their territorial a)quisitions, and the re'enue arisin*
from them, as of ri*ht &elon*in* to the )ro(n/ and the )om+any,
in )om+ensation for this )laim, a*reed to +ay the *o'ernment four
hundred thousand +ounds a year- They had &efore this *radually
au*mented their di'idend from a&out si1 to ten +er )ent/ that is,
u+on their )a+ital of three millions t(o hundred thousand +ounds
they had in)reased it &y a hundred and t(enty8ei*ht thousand
+ounds, or had raised it from one hundred and ninety8t(o thousand
to three hundred and t(enty thousand +ounds a year- They (ere
attem+tin* a&out this time to raise it still further, to t(el'e
and a half +er )ent, (hi)h (ould ha'e made their annual +ayments
to their +ro+rietors equal to (hat they had a*reed to +ay
annually to *o'ernment, or to four hundred thousand +ounds a
year-
.ut durin* the t(o years in (hi)h their a*reement (ith
*o'ernment (as to ta0e +la)e, they (ere restrained from any
further in)rease of di'idend &y t(o su))essi'e A)ts of
arliament, of (hi)h the o&2e)t (as to ena&le them to ma0e a
s+eedier +ro*ress in the +ayment of their de&ts, (hi)h (ere at
this time estimated at u+(ards of si1 or se'en millions sterlin*-
In 176F, they rene(ed their a*reement (ith *o'ernment for fi'e
years more, and sti+ulated that durin* the )ourse of that +eriod
they should &e allo(ed *radually to in)rease their di'idend to
t(el'e and a half +er )ent/ ne'er in)reasin* it, ho(e'er, more
than one +er )ent in one year- This in)rease of di'idend,
therefore, (hen it had risen to its utmost hei*ht, )ould au*ment
their annual +ayments, to their +ro+rietors and *o'ernment
to*ether, &ut &y si1 hundred and ei*ht thousand +ounds &eyond
(hat they had &een &efore their late territorial a)quisitions-
What the *ross re'enue of those territorial a)quisitions (as
su++osed to amount to has already &een mentioned/ and &y an
a))ount &rou*ht &y the Cruttenden $ast Indiaman in 176?, the net
re'enue, )lear of all dedu)tions and military )har*es, (as stated
at t(o millions forty8ei*ht thousand se'en hundred and
forty8se'en +ounds- They (ere said at the same time to +ossess
another re'enue, arisin* +artly from lands, &ut )hiefly from the
)ustoms esta&lished at their different settlements, amountin* to
four hundred and thirty8nine thousand +ounds- The +rofits of
their trade too, a))ordin* to the e'iden)e of their )hairman
&efore the #ouse of Commons, amounted at this time to at least
four hundred thousand +ounds a year, a))ordin* to that of their
a))ountant, to at least fi'e hundred thousand/ a))ordin* to the
lo(est a))ount, at least equal to the hi*hest di'idend that (as
to &e +aid to their +ro+rietors- So *reat a re'enue mi*ht
)ertainly ha'e afforded an au*mentation of si1 hundred and ei*ht
thousand +ounds in their annual +ayments, and at the same time
ha'e left a lar*e sin0in* fund suffi)ient for the s+eedy
redu)tion of their de&ts- In 177B, ho(e'er, their de&ts, instead
of &ein* redu)ed, (ere au*mented &y an arrear to the treasury in
the +ayment of the four hundred thousand +ounds, &y another to
the )ustom8house for duties un+aid, &y a lar*e de&t to the &an0
for money &orro(ed, and &y a fourth for &ills dra(n u+on them
from India, and (antonly a))e+ted, to the amount of u+(ards of
t(el'e hundred thousand +ounds- The distress (hi)h these
a))umulated )laims &rou*ht u+on them, o&li*ed them not only to
redu)e all at on)e their di'idend to si1 +er )ent, &ut to thro(
themsel'es u+on the mer)y of *o'ernment, and to su++li)ate,
first, a release from further +ayment of the sti+ulated four
hundred thousand +ounds a year/ and, se)ondly, a loan of fourteen
hundred thousand, to sa'e them from immediate &an0ru+t)y- The
*reat in)rease of their fortune had, it seems, only ser'ed to
furnish their ser'ants (ith a +rete1t for *reater +rofusion, and
a )o'er for *reater mal'ersation, than in +ro+ortion e'en to that
in)rease of fortune- The )ondu)t of their ser'ants in India, and
the *eneral state of their affairs &oth in India and in $uro+e,
&e)ame the su&2e)t of a arliamentary inquiry, in )onsequen)e of
(hi)h se'eral 'ery im+ortant alternations (ere made in the
)onstitution of their *o'ernment, &oth at home and a&road- In
India their +rin)i+al settlements of 4adras, .om&ay, and
Cal)utta, (hi)h had &efore &een alto*ether inde+endent of one
another, (ere su&2e)ted to a *o'ernor8*eneral, assisted &y a
)oun)il of four assessors, arliament assumin* to itself the
first nomination of this *o'ernor and )oun)il (ho (ere to reside
at Cal)utta/ that )ity ha'in* no( &e)ome, (hat 4adras (as &efore,
the most im+ortant of the $n*lish settlements in India- The Court
of the 4ayor of Cal)utta, ori*inally instituted for the trial of
mer)antile )auses (hi)h arose in )ity and nei*h&ourhood, had
*radually e1tended its 2urisdi)tion (ith the e1tension of the
em+ire- It (as no( redu)ed and )onfined to the ori*inal +ur+ose
of its institution- Instead of it a ne( su+reme )ourt of
2udi)ature (as esta&lished, )onsistin* of a )hief 2usti)e and
three 2ud*es to &e a++ointed &y the )ro(n- In $uro+e, the
qualifi)ation ne)essary to entitle a +ro+rietor to 'ote at their
*eneral )ourts (as raised from fi'e hundred +ounds, the ori*inal
+ri)e of a share in the sto)0 of the )om+any, to a thousand
+ounds- In order to 'ote u+on this qualifi)ation too, it (as
de)lared ne)essary that he should ha'e +ossessed it, if a)quired
&y his o(n +ur)hase, and not &y inheritan)e, for at least one
year, instead of si1 months, the term requisite &efore- The )ourt
of t(enty8four dire)tors had &efore &een )hosen annually/ &ut it
(as no( ena)ted that ea)h dire)tor should, for the future, &e
)hosen for four years/ si1 of them, ho(e'er, to *o out of offi)e
&y rotation e'ery year, and not to &e )a+a&le of &ein* re8)hosen
at the ele)tion of the si1 ne( dire)tors for the ensuin* year- In
)onsequen)e of these alterations, the )ourts, &oth of the
+ro+rietors and dire)tors, it (as e1+e)ted, (ould &e li0ely to
a)t (ith more di*nity and steadiness than they had usually done
&efore- .ut it seems im+ossi&le, &y any alterations, to render
those )ourts, in any res+e)t, fit to *o'ern, or e'en to share in
the *o'ernment of a *reat em+ire/ &e)ause the *reater +art of
their mem&ers must al(ays ha'e too little interest in the
+ros+erity of that em+ire to *i'e any serious attention to (hat
may +romote it- "requently a man of *reat, sometimes e'en a man
of small fortune, is (illin* to +ur)hase a thousand +ounds= share
in India sto)0 merely for the influen)e (hi)h he e1+e)ts to
a)quire &y a 'ote in the )ourt of +ro+rietors- It *i'es him a
share, thou*h not in the +lunder, yet in the a++ointment of the
+lunderers of India/ the )ourt of dire)tors, thou*h they ma0e
that a++ointment, &ein* ne)essarily more or less under the
influen)e of the +ro+rietors, (ho not only ele)t those dire)tors,
&ut sometimes o'errule the a++ointments of their ser'ants in
India- ro'ided he )an en2oy this influen)e for a fe( years, and
there&y +ro'ide for a )ertain num&er of his friends, he
frequently )ares little a&out the di'idend, or e'en a&out the
'alue of the sto)0 u+on (hi)h his 'ote is founded- A&out the
+ros+erity of the *reat em+ire, in the *o'ernment of (hi)h that
'ote *i'es him a share, he seldom )ares at all- No other
so'erei*ns e'er (ere, or, from the nature of thin*s, e'er )ould
&e, so +erfe)tly indifferent a&out the ha++iness or misery of
their su&2e)ts, the im+ro'ement or (aste of their dominions, the
*lory or dis*ra)e of their administration, as, from irresisti&le
moral )auses, the *reater +art of the +ro+rietors of su)h a
mer)antile )om+any are, and ne)essarily must &e- This
indifferen)e, too, (as more li0ely to &e in)reased than
diminished &y some of the ne( re*ulations (hi)h (ere made in
)onsequen)e of the arliamentary inquiry- .y a resolution of the
#ouse of Commons, for e1am+le, it (as de)lared, that (hen the
fourteen hundred thousand +ounds lent to the )om+any &y
*o'ernment should &e +aid, and their &ond8de&ts &e redu)ed to
fifteen hundred thousand +ounds, they mi*ht then, and not till
then, di'ide ei*ht +er )ent u+on their )a+ital/ and that (hate'er
remained of their re'enues and net +rofits at home should &e
di'ided into four +arts/ three of them to &e +aid into the
e1)hequer for the use of the +u&li), and the fourth to &e
reser'ed as a fund either for the further redu)tion of their
&ond8de&ts, or for the dis)har*e of other )ontin*ent e1i*en)ies
(hi)h the )om+any mi*ht la&our under- .ut if the )om+any (ere &ad
ste(ards, and &ad so'erei*ns, (hen the (hole of their net re'enue
and +rofits &elon*ed to themsel'es, and (ere at their o(n
dis+osal, they (ere surely not li0ely to &e &etter (hen
three8fourths of them (ere to &elon* to other +eo+le, and the
other fourth, thou*h to &e laid out for the &enefit of the
)om+any, yet to &e so under the ins+e)tion and (ith the
a++ro&ation of other +eo+le-
It mi*ht &e more a*reea&le to the )om+any that their o(n
ser'ants and de+endants should ha'e either the +leasure of
(astin* or the +rofit of em&e;;lin* (hate'er sur+lus mi*ht remain
after +ayin* the +ro+osed di'idend of ei*ht +er )ent than that it
should )ome into the hands of a set of +eo+le (ith (hom those
resolutions )ould s)ar)e fail to set them, in some measure, at
'arian)e- The interest of those ser'ants and de+endants mi*ht so
far +redominate in the )ourt of +ro+rietors as sometimes to
dis+ose it to su++ort the authors of de+redations (hi)h had &een
)ommitted in dire)t 'iolation of its o(n authority- With the
ma2ority of +ro+rietors, the su++ort e'en of the authority of
their o(n )ourt mi*ht sometimes &e a matter of less )onsequen)e
than the su++ort of those (ho had set that authority at defian)e-
The re*ulations of 177B, a))ordin*ly, did not +ut an end to
the disorders of the )om+any=s *o'ernment in India-
Not(ithstandin* that, durin* a momentary fit of *ood )ondu)t,
they had at one time )olle)ted into the treasury of Cal)utta more
than three millions sterlin*/ not(ithstandin* that they had
after(ards e1tended, either their dominion, or their
de+redations, o'er a 'ast a))ession of some of the ri)hest and
most fertile )ountries in India, all (as (asted and destroyed-
They found themsel'es alto*ether un+re+ared to sto+ or resist the
in)ursion of #yder Ali/ and, in )onsequen)e of those disorders,
the )om+any is no( 917?G: in *reater distress than e'er/ and, in
order to +re'ent immediate &an0ru+t)y, is on)e more redu)ed to
su++li)ate the assistan)e of *o'ernment- Different +lans ha'e
&een +ro+osed &y the different +arties in arliament for the
&etter mana*ement of its affairs- And all those +lans seem to
a*ree insu++osin*, (hat (as indeed al(ays a&undantly e'ident,
that it is alto*ether unfit to *o'ern its territorial
+ossessions- $'en the )om+any itself seems to &e )on'in)ed of its
o(n in)a+a)ity so far, and seems, u+on that a))ount, (illin* to
*i'e them u+ to *o'ernment-
With the ri*ht of +ossessin* forts and *arrisons in distant
and &ar&arous )ountries is ne)essarily )onne)ted the ri*ht of
ma0in* +ea)e and (ar in those )ountries- The 2oint sto)0
)om+anies (hi)h ha'e had the one ri*ht ha'e )onstantly e1er)ised
the other, and ha'e frequently had it e1+ressly )onferred u+on
them- #o( un2ustly, ho( )a+ri)iously, ho( )ruelly they ha'e
)ommonly e1er)ised it, is too (ell 0no(n from re)ent e1+erien)e-
When a )om+any of mer)hants underta0e, at their o(n ris0 and
e1+ense, to esta&lish a ne( trade (ith some remote and &ar&arous
nation, it may not &e unreasona&le to in)or+orate them into a
2oint sto)0 )om+any, and to *rant them, in )ase of their su))ess,
a mono+oly of the trade for a )ertain num&er of years- It is the
easiest and most natural (ay in (hi)h the state )an re)om+ense
them for ha;ardin* a dan*erous and e1+ensi'e e1+eriment, of (hi)h
the +u&li) is after(ards to rea+ the &enefit- A tem+orary
mono+oly of this 0ind may &e 'indi)ated u+on the same +rin)i+les
u+on (hi)h a li0e mono+oly of a ne( ma)hine is *ranted to its
in'entor, and that of a ne( &oo0 to its author- .ut u+on the
e1+iration of the term, the mono+oly ou*ht )ertainly to
determine/ the forts and *arrisons, if it (as found ne)essary to
esta&lish any, to &e ta0en into the hands of *o'ernment, their
'alue to &e +aid to the )om+any, and the trade to &e laid o+en to
all the su&2e)ts of the state- .y a +er+etual mono+oly, all the
other su&2e)ts of the state are ta1ed 'ery a&surdly in t(o
different (ays3 first, &y the hi*h +ri)e of *oods, (hi)h, in the
)ase of a free trade, they )ould &uy mu)h )hea+er/ and, se)ondly,
&y their total e1)lusion from a &ran)h of &usiness (hi)h it mi*ht
&e &oth )on'enient and +rofita&le for many of them to )arry on-
It is for the most (orthless of all +ur+oses, too, that they are
ta1ed in this manner- It is merely to ena&le the )om+any to
su++ort the ne*li*en)e, +rofusion, and mal'ersation of their o(n
ser'ants, (hose disorderly )ondu)t seldom allo(s the di'idend of
the )om+any to e1)eed the ordinary rate of +rofit in trades (hi)h
are alto*ether free, and 'ery frequently ma0es it fall e'en a
*ood deal short of that rate- Without a mono+oly, ho(e'er, a
2oint sto)0 )om+any, it (ould a++ear from e1+erien)e, )annot lon*
)arry on any &ran)h of forei*n trade- To &uy in one mar0et, in
order to sell, (ith +rofit, in another, (hen there are many
)om+etitors in &oth, to (at)h o'er, not only the o))asional
'ariations in the demand, &ut the mu)h *reater and more frequent
'ariations in the )om+etition, or in the su++ly (hi)h that demand
is li0ely to *et from other +eo+le, and to suit (ith de1terity
and 2ud*ment &oth the quantity and quality of ea)h assortment of
*oods to all these )ir)umstan)es, is a s+e)ies of (arfare of
(hi)h the o+erations are )ontinually )han*in*, and (hi)h )an
s)ar)e e'er &e )ondu)ted su))essfully (ithout su)h an unremittin*
e1ertion of 'i*ilan)e and attention as )annot lon* &e e1+e)ted
from the dire)tors of a 2oint sto)0 )om+any- The $ast India
Com+any, u+on the redem+tion of their funds, and the e1+iration
of their e1)lusi'e +ri'ile*e, ha'e ri*ht, &y A)t of arliament,
to )ontinue a )or+oration (ith a 2oint sto)0, and to trade in
their )or+orate )a+a)ity to the $ast Indies in )ommon (ith the
rest of their fello(8su&2e)ts- .ut in this situation, the
su+erior 'i*ilan)e and attention of +ri'ate ad'enturers (ould, in
all +ro&a&ility, soon ma0e them (eary of the trade-
An eminent "ren)h author, of *reat 0no(led*e in matters of
+oliti)al e)onomy, the A&&e 4orellet, *i'es a list of fifty8fi'e
2oint sto)0 )om+anies for forei*n trade (hi)h ha'e &een
esta&lished in different +arts of $uro+e sin)e the year 16CC, and
(hi)h, a))ordin* to him, ha'e all failed from mismana*ement,
not(ithstandin* they had e1)lusi'e +ri'ile*es- #e has &een
misinformed (ith re*ard to the history of t(o or three of them,
(hi)h (ere not 2oint sto)0 )om+anies and ha'e not failed- .ut, in
)om+ensation, there ha'e &een se'eral 2oint sto)0 )om+anies (hi)h
ha'e failed, and (hi)h he has omitted-
The only trades (hi)h it seems +ossi&le for a 2oint sto)0
)om+any to )arry on su))essfully (ithout an e1)lusi'e +ri'ile*e
are those of (hi)h all the o+erations are )a+a&le of &ein*
redu)ed to (hat is )alled a Routine, or to su)h a uniformity of
method as admits of little or no 'ariation- Of this 0ind is,
first, the &an0in* trade/ se)ondly, the trade of insuran)e from
fire, and from sea ris0 and )a+ture in time of (ar/ thirdly, the
trade of ma0in* and maintainin* a na'i*a&le )ut or )anal/ and,
fourthly, the similar trade of &rin*in* (ater for the su++ly of a
*reat )ity-
Thou*h the +rin)i+les of the &an0in* trade may a++ear
some(hat a&struse, the +ra)ti)e is )a+a&le of &ein* redu)ed to
stri)t rules- To de+art u+on any o))asion from those rules, in
)onsequen)e of some flatterin* s+e)ulation of e1traordinary *ain,
is almost al(ays e1tremely dan*erous, and frequently fatal, to
the &an0in* )om+any (hi)h attem+ts it- .ut the )onstitution of
2oint sto)0 )om+anies renders them in *eneral more tena)ious of
esta&lished rules than any +ri'ate )o+artnery- Su)h )om+anies,
therefore, seem e1tremely (ell fitted for this trade- The
+rin)i+al &an0in* )om+anies in $uro+e, a))ordin*ly, are 2oint
sto)0 )om+anies, many of (hi)h mana*e their trade 'ery
su))essfully (ithout any e1)lusi'e +ri'ile*e- The .an0 of $n*land
has no other e1)lusi'e +ri'ile*e e1)e+t that no other &an0in*
)om+any in $n*land shall )onsist of more than si1 +ersons- The
t(o &an0s of $din&ur*h are 2oint sto)0 )om+anies (ithout any
e1)lusi'e +ri'ile*e-
The 'alue of the ris0, either from fire, or from loss &y
sea, or &y )a+ture, thou*h it )annot, +erha+s, &e )al)ulated 'ery
e1a)tly, admits, ho(e'er, of su)h a *ross estimation as renders
it, in some de*ree, redu)i&le to stri)t rule and method- The
trade of insuran)e, therefore, may &e )arried on su))essfully &y
a 2oint sto)0 )om+any (ithout any e1)lusi'e +ri'ile*e- Neither
the !ondon Assuran)e nor the Royal $1)han*e Assuran)e )om+anies
ha'e any su)h +ri'ile*e-
When a na'i*a&le )ut or )anal has &een on)e made, the
mana*ement of it &e)omes quite sim+le and easy, and it is
redu)i&le to stri)t rule and method- $'en the ma0in* of it is so
as it may &e )ontra)ted for (ith underta0ers at so mu)h a mile,
and so mu)h a lo)0- The same thin* may &e said of a )anal, an
aquedu)t, or a *reat +i+e for &rin*in* (ater to su++ly a *reat
)ity- Su)h underta0in*s, therefore, may &e, and a))ordin*ly
frequently are, 'ery su))essfully mana*ed &y 2oint sto)0
)om+anies (ithout any e1)lusi'e +ri'ile*e-
To esta&lish a 2oint sto)0 )om+any, ho(e'er, for any
underta0in*, merely &e)ause su)h a )om+any mi*ht &e )a+a&le of
mana*in* it su))essfully/ or to e1em+t a +arti)ular set of
dealers from some of the *eneral la(s (hi)h ta0e +la)e (ith
re*ard to all their nei*h&ours, merely &e)ause they mi*ht &e
)a+a&le of thri'in* if they had su)h an e1em+tion, (ould
)ertainly not &e reasona&le- To render su)h an esta&lishment
+erfe)tly reasona&le, (ith the )ir)umstan)e of &ein* redu)i&le to
stri)t rule and method, t(o other )ir)umstan)es ou*ht to )on)ur-
"irst, it ou*ht to a++ear (ith the )learest e'iden)e that the
underta0in* is of *reater and more *eneral utility than the
*reater +art of )ommon trades/ and se)ondly, that it requires a
*reater )a+ital than )an easily &e )olle)ted into a +ri'ate
)o+artnery- If a moderate )a+ital (ere suffi)ient, the *reat
utility of the underta0in* (ould not &e a suffi)ient reason for
esta&lishin* a 2oint sto)0 )om+any/ &e)ause, in this )ase, the
demand for (hat it (as to +rodu)e (ould readily and easily &e
su++lied &y +ri'ate ad'entures- In the four trades a&o'e
mentioned, &oth those )ir)umstan)es )on)ur-
The *reat and *eneral utility of the &an0in* trade (hen
+rudently mana*ed has &een fully e1+lained in the se)ond, &oo0 of
this Inquiry- .ut a +u&li) &an0 (hi)h is to su++ort +u&li)
)redit, and u+on +arti)ular emer*en)ies to ad'an)e to *o'ernment
the (hole +rodu)e of a ta1, to the amount, +erha+s, of se'eral
millions, a year or t(o &efore it )omes in, requires a *reater
)a+ital than )an easily &e )olle)ted into any +ri'ate )o+artnery-
The trade of insuran)e *i'es *reat se)urity to the fortunes
of +ri'ate +eo+le, and &y di'idin* amon* a *reat many that loss
(hi)h (ould ruin an indi'idual, ma0es it fall li*ht and easy u+on
the (hole so)iety- In order to *i'e this se)urity, ho(e'er, it is
ne)essary that the insurers should ha'e a 'ery lar*e )a+ital-
.efore the esta&lishment of the t(o 2oint sto)0 )om+anies for
insuran)e in !ondon, a list, it is said, (as laid &efore the
attorney8*eneral of one hundred and fifty +ri'ate insurers (ho
had failed in the )ourse of a fe( years-
That na'i*a&le )uts and )anals, and the (or0s (hi)h are
sometimes ne)essary for su++lyin* a *reat )ity (ith (ater, are of
*reat and *eneral utility, (hile at the same time they frequently
require a *reater e1+ense than suits the fortunes of +ri'ate
+eo+le, is suffi)iently o&'ious-
$1)e+t the four trades a&o'e mentioned, I ha'e not &een a&le
to re)olle)t any other in (hi)h all the three )ir)umstan)es
requisite for renderin* reasona&le the esta&lishment of a 2oint
sto)0 )om+any )on)ur- The $n*lish )o++er )om+any of !ondon, the
lead smeltin* )om+any, the *lass *rindin* )om+any, ha'e not e'en
the +rete1t of any *reat or sin*ular utility in the o&2e)t (hi)h
they +ursue/ nor does the +ursuit of that o&2e)t seem to require
any e1+ense unsuita&le to the fortunes of many +ri'ate men-
Whether the trade (hi)h those )om+anies )arry on is redu)i&le to
su)h stri)t rule and method as to render it fit for the
mana*ement of a 2oint sto)0 )om+any, or (hether they ha'e any
reason to &oast of their e1traordinary +rofits, I do not +retend
to 0no(- The mine8ad'enturers= )om+any has &een lon* a*o
&an0ru+t- A share in the sto)0 of the .ritish !inen Com+any of
$din&ur*h sells, at +resent, 'ery mu)h &elo( +ar, thou*h less so
that it did some years a*o- The 2oint sto)0 )om+anies (hi)h are
esta&lished for the +u&li)8s+irited +ur+ose of +romotin* some
+arti)ular manufa)ture, o'er and a&o'e mana*in* their o(n affairs
ill, to the dimunition of the *eneral sto)0 of the so)iety, )an
in other res+e)ts s)ar)e e'er fail to do more harm than *ood-
Not(ithstandin* the most u+ri*ht intentions, the una'oida&le
+artiality of their dire)tors to +arti)ular &ran)hes of the
manufa)ture of (hi)h the underta0ers mislead and im+ose u+on them
is a real dis)oura*ement to the rest, and ne)essarily &rea0s,
more or less, that natural +ro+ortion (hi)h (ould other(ise
esta&lish itself &et(een 2udi)ious industry and +rofit, and
(hi)h, to the *eneral industry of the )ountry, is of all
en)oura*ements the *reatest and the most effe)tual-
ARTIC!$ II
Of the $1+ense of the Institutions for the $du)ation of
7outh
The institutions for the edu)ation of the youth may, in the
same manner, furnish a re'enue suffi)ient for defrayin* their o(n
e1+ense- The fee or honorary (hi)h the s)holar +ays to the master
naturally )onstitutes a re'enue of this 0ind-
$'en (here the re(ard of the master does not arise
alto*ether from this natural re'enue, it still is not ne)essary
that it should &e deri'ed from that *eneral re'enue of the
so)iety, of (hi)h the )olle)tion and a++li)ation is, in most
)ountries, assi*ned to the e1e)uti'e +o(er- Throu*h the *reater
+art of $uro+e, a))ordin*ly, the endo(ment of s)hools and
)olle*es ma0es either no )har*e u+on that *eneral re'enue, or &ut
a 'ery small one- It e'ery(here arises )hiefly from some lo)al or
+ro'in)ial re'enue, from the rent of some landed estate, or from
the interest of some sum of money allotted and +ut under the
mana*ement of trustees for this +arti)ular +ur+ose, sometimes &y
the so'erei*n himself, and sometimes &y some +ri'ate donor-
#a'e those +u&li) endo(ments )ontri&uted in *eneral to
+romote the end of their institution> #a'e they )ontri&uted to
en)oura*e the dili*en)e and to im+ro'e the a&ilities of the
tea)hers> #a'e they dire)ted the )ourse of edu)ation to(ards
o&2e)ts more useful, &oth to the indi'idual and to the +u&li),
than those to (hi)h it (ould naturally ha'e *one of its o(n
a))ord> It should not seem 'ery diffi)ult to *i'e at least a
+ro&a&le ans(er to ea)h of those questions-
In e'ery +rofession, the e1ertion of the *reater +art of
those (ho e1er)ise it is al(ays in +ro+ortion to the ne)essity
they are under of ma0in* that e1ertion- This ne)essity is
*reatest (ith those to (hom the emoluments of their +rofession
are the only sour)e from (hi)h they e1+e)t their fortune, or e'en
their ordinary re'enue and su&sisten)e- In order to a)quire this
fortune, or e'en to *et this su&sisten)e, they must, in the
)ourse of a year, e1e)ute a )ertain quantity of (or0 of a 0no(n
'alue/ and, (here the )om+etition is free, the ri'alshi+ of
)om+etitors, (ho are all endea'ourin* to 2ustle one another out
of em+loyment, o&li*es e'ery man to endea'our to e1e)ute his (or0
(ith a )ertain de*ree of e1a)tness- The *reatness of the o&2e)ts
(hi)h are to &e a)quired &y su))ess in some +arti)ular
+rofessions may, no dou&t, sometimes animate the e1ertion of a
fe( men of e1traordinary s+irit and am&ition- 6reat o&2e)ts,
ho(e'er, are e'idently not ne)essary in order to o))asion the
*reatest e1ertions- Ri'alshi+ and emulation render e1)ellen)y,
e'en in mean +rofessions, an o&2e)t of am&ition, and frequently
o))asion the 'ery *reatest e1ertions- 6reat o&2e)ts, on the
)ontrary, alone and unsu++orted &y the ne)essity of a++li)ation,
ha'e seldom &een suffi)ient to o))asion any )onsidera&le
e1ertion- In $n*land, su))ess in the +rofession of the la( leads
to some 'ery *reat o&2e)ts of am&ition/ and yet ho( fe( men, &orn
to easy fortunes, ha'e e'er in this )ountry &een eminent in that
+rofession<
The endo(ments of s)hools and )olle*es ha'e ne)essarily
diminished more or less the ne)essity of a++li)ation in the
tea)hers- Their su&sisten)e, so far as it arises from their
salaries, is e'idently deri'ed from a fund alto*ether inde+endent
of their su))ess and re+utation in their +arti)ular +rofessions-
In some uni'ersities the salary ma0es &ut a +art, and
frequently &ut a small +art, of the emoluments of the tea)her, of
(hi)h the *reater +art arises from the honoraries or fees of his
+u+ils- The ne)essity of a++li)ation, thou*h al(ays more or less
diminished, is not in this )ase entirely ta0en a(ay- Re+utation
in his +rofession is still of some im+ortan)e to him, and he
still has some de+enden)y u+on the affe)tion, *ratitude, and
fa'oura&le re+ort of those (ho ha'e attended u+on his
instru)tions/ and these fa'oura&le sentiments he is li0ely to
*ain in no (ay so (ell as &y deser'in* them, that is, &y the
a&ilities and dili*en)e (ith (hi)h he dis)har*es e'ery +art of
his duty-
In other uni'ersities the tea)her is +rohi&ited from
re)ei'in* any honorary or fee from his +u+ils, and his salary
)onstitutes the (hole of the re'enue (hi)h he deri'es from his
offi)e- #is interest is, in this )ase, set as dire)tly in
o++osition to his duty as it is +ossi&le to set it- It is the
interest of e'ery man to li'e as mu)h at his ease as he )an/ and
if his emoluments are to &e +re)isely the same, (hether he does
or does not +erform some 'ery la&orious duty, it is )ertainly his
interest, at least as interest is 'ul*arly understood, either to
ne*le)t it alto*ether, or, if he is su&2e)t to some authority
(hi)h (ill not suffer him to do this, to +erform it in as
)areless and slo'enly a manner as that authority (ill +ermit- If
he is naturally a)ti'e and a lo'er of la&our, it is his interest
to em+loy that a)ti'ity in any (ay from (hi)h he )an deri'e some
ad'anta*e, rather than in the +erforman)e of his duty, from (hi)h
he )an deri'e none-
If the authority to (hi)h he is su&2e)t resides in the &ody
)or+orate, the )olle*e, or uni'ersity, of (hi)h he himself is a
mem&er, and (hi)h the *reater +art of the other mem&ers are, li0e
himself, +ersons (ho either are or ou*ht to &e tea)hers, they are
li0ely to ma0e a )ommon )ause, to &e all 'ery indul*ent to one
another, and e'ery man to )onsent that his nei*h&our may ne*le)t
his duty, +ro'ided he himself is allo(ed to ne*le)t his o(n- In
the uni'ersity of O1ford, the *reater +art of the +u&li)
+rofessors ha'e, for these many years, *i'en u+ alto*ether e'en
the +reten)e of tea)hin*-
If the authority to (hi)h he is su&2e)t resides, not so mu)h
in the &ody )or+orate of (hi)h he is a mem&er, as in some other
e1traneous +ersons8 in the &isho+ of the dio)ese, for e1am+le/ in
the *o'ernor of the +ro'in)e/ or, +erha+s, in some minister of
state it is not indeed in this )ase 'ery li0ely that he (ill &e
suffered to ne*le)t his duty alto*ether- All that su)h su+eriors,
ho(e'er, )an for)e him to do, is to attend u+on his +u+ils a
)ertain num&er of hours, that is, to *i'e a )ertain num&er of
le)tures in the (ee0 or in the year- What those le)tures shall &e
must still de+end u+on the dili*en)e of the tea)her/ and that
dili*en)e is li0ely to &e +ro+ortioned to the moti'es (hi)h he
has for e1ertin* it- An e1traneous 2urisdi)tion of this 0ind,
&esides, is lia&le to &e e1er)ised &oth i*norantly and
)a+ri)iously- In its nature it is ar&itrary and dis)retionary,
and the +ersons (ho e1er)ise it, neither attendin* u+on the
le)tures of the tea)her themsel'es, nor +erha+s understandin* the
s)ien)es (hi)h it is his &usiness to tea)h, are seldom )a+a&le of
e1er)isin* it (ith 2ud*ment- "rom the insolen)e of offi)e, too,
they are frequently indifferent ho( they e1er)ise it, and are
'ery a+t to )ensure or de+ri'e him of his offi)e (antonly, and
(ithout any 2ust )ause- The +erson su&2e)t to su)h 2urisdi)tion
is ne)essarily de*raded &y it, and, instead of &ein* one of the
most res+e)ta&le, is rendered one of the meanest and most
)ontem+ti&le +ersons in the so)iety- It is &y +o(erful +rote)tion
only that he )an effe)tually *uard himself a*ainst the &ad usa*e
to (hi)h he is at all times e1+osed/ and this +rote)tion he is
most li0ely to *ain, not &y a&ility or dili*en)e in his
+rofession, &ut &y o&sequiousness to the (ill of his su+eriors,
and &y &ein* ready, at all times, to sa)rifi)e to that (ill the
ri*hts, the interest, and the honour of the &ody )or+orate of
(hi)h he is a mem&er- Whoe'er has attended for any )onsidera&le
time to the administration of a "ren)h uni'ersity must ha'e had
o))asion to remar0 the effe)ts (hi)h naturally result from an
ar&itrary and e1traneous 2urisdi)tion of this 0ind-
Whate'er for)es a )ertain num&er of students to any )olle*e
or uni'ersity, inde+endent of the merit or re+utation of the
tea)hers, tends more or less to diminish the ne)essity of that
merit or re+utation-
The +ri'ile*es of *raduates in arts, in la(, +hysi), and
di'inity, (hen they )an &e o&tained only &y residin* a )ertain
num&er of years in )ertain uni'ersities, ne)essarily for)e a
)ertain num&er of students to su)h uni'ersities, inde+endent of
the merit or re+utation of the tea)hers- The +ri'ile*es of
*raduates are a sort of statutes of a++renti)eshi+, (hi)h ha'e
)ontri&uted to the im+ro'ement of edu)ation, 2ust as the other
statutes of a++renti)eshi+ ha'e to that of arts, and
manufa)tures-
The )harita&le foundations of s)holarshi+s, e1hi&itions,
&ursaries, et)-, ne)essarily atta)h a )ertain num&er of students
to )ertain )olle*es, inde+endent alto*ether of the merit of those
+arti)ular )olle*es- Were the students u+on su)h )harita&le
foundations left free to )hoose (hat )olle*e they li0ed &est,
su)h li&erty mi*ht +erha+s )ontri&ute to e1)ite some emulation
amon* different )olle*es- A re*ulation, on the )ontrary, (hi)h
+rohi&ited e'en the inde+endent mem&ers of e'ery +arti)ular
)olle*e from lea'in* it and *oin* to any other, (ithout lea'e
first as0ed and o&tained of that (hi)h they meant to a&andon,
(ould tend 'ery mu)h to e1tin*uish that emulation-
If in ea)h )olle*e the tutor or tea)her, (ho (as to instru)t
ea)h student in all arts and s)ien)es, should not &e 'oluntarily
)hosen &y the student, &ut a++ointed &y the head of the )olle*e/
and if, in )ase of ne*le)t, ina&ility, or &ad usa*e, the student
should not &e allo(ed to )han*e him for another, (ithout lea'e
first as0ed and o&tained, su)h a re*ulation (ould not only tend
'ery mu)h to e1tin*uish all emulation amon* the different tutors
of the same )olle*e, &ut to diminish 'ery mu)h in all of them the
ne)essity of dili*en)e and of attention to their res+e)ti'e
+u+ils- Su)h tea)hers, thou*h 'ery (ell +aid &y their students,
mi*ht &e as mu)h dis+osed to ne*le)t them as those (ho are not
+aid &y them at all, or (ho ha'e no other re)om+ense &ut their
salary-
If the tea)her ha++ens to &e a man of sense, it must &e an
un+leasant thin* to him to &e )ons)ious, (hile he is le)turin*
his students, that he is either s+ea0in* or readin* nonsense, or
(hat is 'ery little &etter than nonsense- It must, too, &e
un+leasant to him to o&ser'e that the *reater +art of his
students desert his le)tures, or +erha+s attend u+on them (ith
+lain enou*h mar0s of ne*le)t, )ontem+t, and derision- If he is
o&li*ed, therefore, to *i'e a )ertain num&er of le)tures, these
moti'es alone, (ithout any other interest, mi*ht dis+ose him to
ta0e some +ains to *i'e tolera&ly *ood ones- Se'eral different
e1+edients, ho(e'er, may &e fallen u+on (hi)h (ill effe)tually
&lunt the ed*e of all those in)itements to dili*en)e- The
tea)her, instead of e1+lainin* to his +u+ils himself the s)ien)e
in (hi)h he +ro+oses to instru)t them, may read some &oo0 u+on
it/ and if this &oo0 is (ritten in a forei*n and dead lan*ua*e,
&y inter+retin* it to them into their o(n/ or, (hat (ould *i'e
him still less trou&le, &y ma0in* them inter+ret it to him, and
&y no( and then ma0in* an o))asional remar0 u+on it, he may
flatter himself that he is *i'in* a le)ture- The sli*htest de*ree
of 0no(led*e and a++li)ation (ill ena&le him to do this (ithout
e1+osin* himself to )ontem+t or derision, or sayin* anythin* that
is really foolish, a&surd, or ridi)ulous- The dis)i+line of the
)olle*e, at the same time, may ena&le him to for)e all his +u+ils
to the most re*ular attendan)e u+on this sham le)ture, and to
maintain the most de)ent and res+e)tful &eha'iour durin* the
(hole time of the +erforman)e-
The dis)i+line of )olle*es and uni'ersities is in *eneral
)ontri'ed, not for the &enefit of the students, &ut for the
interest, or more +ro+erly s+ea0in*, for the ease of the masters-
Its o&2e)t is, in all )ases, to maintain the authority of the
master, and (hether he ne*le)ts or +erforms his duty, to o&li*e
the students in all )ases to &eha'e to him, as if he +erformed it
(ith the *reatest dili*en)e and a&ility- It seems to +resume
+erfe)t (isdom and 'irtue in the one order, and the *reatest
(ea0ness and folly in the other- Where the masters, ho(e'er,
really +erform their duty, there are no e1am+les, I &elie'e, that
the *reater +art of the students e'er ne*le)t theirs- No
dis)i+line is e'er requisite to for)e attendan)e u+on le)tures
(hi)h are really (orth the attendin*, as is (ell 0no(n (here'er
any su)h le)tures are *i'en- "or)e and restraint may, no dou&t,
&e in some de*ree requisite in order to o&li*e )hildren, or 'ery
youn* &oys, to attend to those +arts of edu)ation (hi)h it is
thou*ht ne)essary for them to a)quire durin* that early +eriod of
life/ &ut after t(el'e or thirteen years of a*e, +ro'ided the
master does his duty, for)e or restraint )an s)ar)e e'er &e
ne)essary to )arry on any +art of edu)ation- Su)h is the
*enerosity of the *reater +art of youn* men, that, so far from
&ein* dis+osed to ne*le)t or des+ise the instru)tions of their
master, +ro'ided he sho(s some serious intention of &ein* of use
to them, they are *enerally in)lined to +ardon a *reat deal of
in)orre)tness in the +erforman)e of his duty, and sometimes e'en
to )on)eal from the +u&li) a *ood deal of *ross ne*li*en)e-
Those +arts of edu)ation, it is to &e o&ser'ed, for the
tea)hin* of (hi)h there are no +u&li) institutions, are *enerally
the &est tau*ht- When a youn* man *oes to a fen)in* or a dan)in*
s)hool, he does not indeed al(ays learn to fen)e or to dan)e 'ery
(ell/ &ut he seldom fails of learnin* to fen)e or to dan)e- The
*ood effe)ts of the ridin* s)hool are not )ommonly so e'ident-
The e1+ense of a ridin* s)hool is so *reat, that in most +la)es
it is a +u&li) institution- The three most essential +arts of
literary edu)ation, to read, (rite, and a))ount, it still
)ontinues to &e more )ommon to a)quire in +ri'ate than in +u&li)
s)hools/ and it 'ery seldom ha++ens that any&ody fails of
a)quirin* them to the de*ree in (hi)h it is ne)essary to a)quire
them-
In $n*land the +u&li) s)hools are mu)h less )orru+ted than
the uni'ersities- In the s)hools the youth are tau*ht, or at
least may &e tau*ht, 6ree0 and !atin/ that is, e'erythin* (hi)h
the masters +retend to tea)h, or (hi)h, it is e1+e)ted, they
should tea)h- In the uni'ersities the youth neither are tau*ht,
nor al(ays )an find any +ro+er means of &ein* tau*ht, the
s)ien)es (hi)h it is the &usiness of those in)or+orated &odies to
tea)h- The re(ard of the s)hoolmaster in most )ases de+ends
+rin)i+ally, in some )ases almost entirely, u+on the fees or
honoraries of his s)holars- S)hools ha'e no e1)lusi'e +ri'ile*es-
In order to o&tain the honours of *raduation, it is not ne)essary
that a +erson should &rin* a )ertifi)ate of his ha'in* studied a
)ertain num&er of years at a +u&li) s)hool- If u+on e1amination
he a++ears to understand (hat is tau*ht there, no questions are
as0ed a&out the +la)e (here he learnt it-
The +arts of edu)ation (hi)h are )ommonly tau*ht in
uni'ersities, it may, +erha+s, &e said are not 'ery (ell tau*ht-
.ut had it not &een for those institutions they (ould not ha'e
&een )ommonly tau*ht at all, and &oth the indi'idual and the
+u&li) (ould ha'e suffered a *ood deal from the (ant of those
im+ortant +arts of edu)ation-
The +resent uni'ersities of $uro+e (ere ori*inally, the
*reater +art of them, e))lesiasti)al )or+orations, instituted for
the edu)ation of )hur)hmen- They (ere founded &y the authority of
the o+e, and (ere so entirely under his immediate +rote)tion,
that their mem&ers, (hether masters or students, had all of them
(hat (as then )alled the &enefit of )ler*y, that is, (ere
e1em+ted from the )i'il 2urisdi)tion of the )ountries in (hi)h
their res+e)ti'e uni'ersities (ere situated, and (ere amena&le
only to the e))lesiasti)al tri&unals- What (as tau*ht in the
*reater +art of those uni'ersities (as suita&le to the end of
their institution, either theolo*y, or somethin* that (as merely
+re+aratory to theolo*y-
When Christianity (as first esta&lished &y la(, a )orru+ted
!atin had &e)ome the )ommon lan*ua*e of all the (estern +arts of
$uro+e- The ser'i)e of the )hur)h a))ordin*ly, and the
translation of the .i&le (hi)h (as read in )hur)hes, (ere &oth in
that )orru+ted !atin/ that is, in the )ommon lan*ua*e of the
)ountry- After the irru+tion of the &ar&arous nations (ho
o'erturned the Roman em+ire, !atin *radually )eased to &e the
lan*ua*e of any +art of $uro+e- .ut the re'eren)e of the +eo+le
naturally +reser'es the esta&lished forms and )eremonies of
reli*ion lon* after the )ir)umstan)es (hi)h first introdu)ed and
rendered them reasona&le are no more- Thou*h !atin, therefore,
(as no lon*er understood any(here &y the *reat &ody of the
+eo+le, the (hole ser'i)e of the )hur)h still )ontinued to &e
+erformed in that lan*ua*e- T(o different lan*ua*es (ere thus
esta&lished in $uro+e, in the same manner as in an)ient $*y+t/ a
lan*ua*e of the +riests, and a lan*ua*e of the +eo+le/ a sa)red
and a +rofane/ a learned and an unlearned lan*ua*e- .ut it (as
ne)essary that the +riests should understand somethin* of that
sa)red and learned lan*ua*e in (hi)h they (ere to offi)iate/ and
the study of the !atin lan*ua*e therefore made, from the
&e*innin*, an essential +art of uni'ersity edu)ation-
It (as not so (ith that either of the 6ree0 or of the #e&re(
lan*ua*e- The infalli&le de)rees of the )hur)h had +ronoun)ed the
!atin translation of the .i&le, )ommonly )alled the !atin
5ul*ate, to ha'e &een equally di)tated &y di'ine ins+iration, and
therefore of equal authority (ith the 6ree0 and #e&re( ori*inals-
The 0no(led*e of those t(o lan*ua*es, therefore, not &ein*
indis+ensa&ly requisite to a )hur)hman, the study of them did not
for a lon* time ma0e a ne)essary +art of the )ommon )ourse of
uni'ersity edu)ation- There are some S+anish uni'ersities, I am
assured, in (hi)h the study of the 6ree0 lan*ua*e has ne'er yet
made any +art of that )ourse- The first reformers found the 6ree0
te1t of the Ne( Testament, and e'en the #e&re( te1t of the Old,
more fa'ora&le to their o+inions than the 5ul*ate translation,
(hi)h, as mi*ht naturally &e su++osed, had &een *radually
a))ommodated to su++ort the do)trines of the Catholi) Chur)h-
They set themsel'es, therefore, to e1+ose the many errors of that
translation, (hi)h the Roman Catholi) )ler*y (ere thus +ut under
the ne)essity of defendin* or e1+lainin*- .ut this )ould not (ell
&e done (ithout some 0no(led*e of the ori*inal lan*ua*es, of
(hi)h the study (as therefore *radually introdu)ed into the
*reater +art of uni'ersities, &oth of those (hi)h em&ra)ed, and
of those (hi)h re2e)ted, the do)trines of the Reformation- The
6ree0 lan*ua*e (as )onne)ted (ith e'ery +art of that )lassi)al
learnin* (hi)h, thou*h at first +rin)i+ally )ulti'ated &y
Catholi)s and Italians, ha++ened to )ome into fashion mu)h a&out
the same time that the do)trines of the Reformation (ere set on
foot- In the *reater +art of uni'ersities, therefore, that
lan*ua*e (as tau*ht +re'ious to the study of +hiloso+hy, and as
soon as the student had made some +ro*ress in the !atin- The
#e&re( lan*ua*e ha'in* no )onne)tion (ith )lassi)al learnin*,
and, e1)e+t the #oly S)ri+tures, &ein* the lan*ua*e of not a
sin*le &oo0 in any esteem, the study of it did not )ommonly
)ommen)e till after that of +hiloso+hy, and (hen the student had
entered u+on the study of theolo*y-
Ori*inally the first rudiments &oth of the 6ree0 and !atin
lan*ua*es (ere tau*ht in uni'ersities, and in some uni'ersities
they still )ontinue to &e so- In others it is e1+e)ted that the
student should ha'e +re'iously a)quired at least the rudiments of
one or &oth of those lan*ua*es, of (hi)h the study )ontinues to
ma0e e'ery(here a 'ery )onsidera&le +art of uni'ersity edu)ation-
The an)ient 6ree0 +hiloso+hy (as di'ided into three *reat
&ran)hes/ +hysi)s, or natural +hiloso+hy/ ethi)s, or moral
+hiloso+hy/ and lo*i)- This *eneral di'ision seems +erfe)tly
a*reea&le to the nature of thin*s-
The *reat +henomena of nature8 the re'olutions of the
hea'enly &odies, e)li+ses, )omets/ thunder, li*htnin*, and other
e1traordinary meteors/ the *eneration, the life, *ro(th, and
dissolution of +lants and animals8 are o&2e)ts (hi)h, as they
ne)essarily e1)ite the (onder, so they naturally )all forth the
)uriosity, of man0ind to inquire into their )auses- Su+erstition
first attem+ted to satisfy this )uriosity, &y referrin* all those
(onderful a++earan)es to the immediate a*en)y of the *ods-
hiloso+hy after(ards endea'oured to a))ount for them from more
familiar )auses, or from su)h as man0ind (ere &etter a)quainted
(ith, than the a*en)y of the *ods- As those *reat +henomena are
the first o&2e)ts of human )uriosity, so the s)ien)e (hi)h
+retends to e1+lain them must naturally ha'e &een the first
&ran)h of +hiloso+hy that (as )ulti'ated- The first +hiloso+hers,
a))ordin*ly, of (hom history has +reser'ed any a))ount, a++ear to
ha'e &een natural +hiloso+hers-
In e'ery a*e and )ountry of the (orld men must ha'e attended
to the )hara)ters, desi*ns, and a)tions of one another, and many
re+uta&le rules and ma1ims for the )ondu)t of human life must
ha'e &een laid do(n and a++ro'ed of &y )ommon )onsent- As soon as
(ritin* )ame into fashion, (ise men, or those (ho fan)ied
themsel'es su)h, (ould naturally endea'our to in)rease the num&er
of those esta&lished and res+e)ted ma1ims, and to e1+ress their
o(n sense of (hat (as either +ro+er or im+ro+er )ondu)t,
sometimes in the more artifi)ial form of a+olo*ues, li0e (hat are
)alled the fa&les of Aeso+/ and sometimes in the more sim+le one
of a+o+hthe*ms, or (ise sayin*s, li0e the ro'er&s of Solomon,
the 'erses of Theo*nis and ho)yllides, and some +art of the
(or0s of #esiod- They mi*ht )ontinue in this manner for a lon*
time merely to multi+ly the num&er of those ma1ims of +ruden)e
and morality, (ithout e'en attem+tin* to arran*e them in any 'ery
distin)t or methodi)al order, mu)h less to )onne)t them to*ether
&y one or more *eneral +rin)i+les from (hi)h they (ere all
dedu)i&le, li0e effe)ts from their natural )auses- The &eauty of
a systemati)al arran*ement of different o&ser'ations )onne)ted &y
a fe( )ommon +rin)i+les (as first seen in the rude essays of
those an)ient times to(ards a system of natural +hiloso+hy-
Somethin* of the same 0ind (as after(ards attem+ted in morals-
The ma1ims of )ommon life (ere arran*ed in some methodi)al order,
and )onne)ted to*ether &y a fe( )ommon +rin)i+les, in the same
manner as they had attem+ted to arran*e and )onne)t the +henomena
of nature- The s)ien)e (hi)h +retends to in'esti*ate and e1+lain
those )onne)tin* +rin)i+les is (hat is +ro+erly )alled moral
+hiloso+hy-
Different authors *a'e different systems &oth of natural and
moral +hiloso+hy- .ut the ar*uments &y (hi)h they su++orted those
different systems, for from &ein* al(ays demonstrations, (ere
frequently at &est &ut 'ery slender +ro&a&ilities, and sometimes
mere so+hisms, (hi)h had no other foundation &ut the ina))ura)y
and am&i*uity of )ommon lan*ua*e- S+e)ulati'e systems ha'e in all
a*es of the (orld &een ado+ted for reasons too fri'olous to ha'e
determined the 2ud*ment of any man of )ommon sense in a matter of
the smallest +e)uniary interest- 6ross so+histry has s)ar)e e'er
had any influen)e u+on the o+inions of man0ind, e1)e+t in matters
of +hiloso+hy and s+e)ulation/ and in these it has frequently had
the *reatest- The +atrons of ea)h system of natural and moral
+hiloso+hy naturally endea'oured to e1+ose the (ea0ness of the
ar*uments addu)ed to su++ort the systems (hi)h (ere o++osite to
their o(n- In e1aminin* those ar*uments, they (ere ne)essarily
led to )onsider the differen)e &et(een a +ro&a&le and a
demonstrati'e ar*ument, &et(een a falla)ious and a )on)lusi'e
one3 and !o*i), or the s)ien)e of the *eneral +rin)i+les of *ood
and &ad reasonin*, ne)essarily arose out of the o&ser'ations
(hi)h a s)rutiny of this 0ind *a'e o))asion to- Thou*h in its
ori*in +osterior &oth to +hysi)s and to ethi)s, it (as )ommonly
tau*ht, not indeed in all, &ut in the *reater +art of the an)ient
s)hools of +hiloso+hy, +re'iously to either of those s)ien)es-
The student, it seems to ha'e &een thou*ht, to understand (ell
the differen)e &et(een *ood and &ad reasonin* &efore he (as led
to reason u+on su&2e)ts of so *reat im+ortan)e-
This an)ient di'ision of +hiloso+hy into three +arts (as in
the *reater +art of the uni'ersities of $uro+e )han*ed for
another into fi'e-
In the an)ient +hiloso+hy, (hate'er (as tau*ht )on)ernin*
the nature either of the human mind or of the Deity, made a +art
of the system of +hysi)s- Those &ein*s, in (hate'er their essen)e
mi*ht &e su++osed to )onsist, (ere +arts of the *reat system of
the uni'erse, and +arts, too, +rodu)ti'e of the most im+ortant
effe)ts- Whate'er human reason )ould either )on)lude or
)on2e)ture )on)ernin* them, made, as it (ere, t(o )ha+ters,
thou*h no dou&t t(o 'ery im+ortant ones, of the s)ien)e (hi)h
+retended to *i'e an a))ount of the ori*in and re'olutions of the
*reat system of the uni'erse- .ut in the uni'ersities of $uro+e,
(here +hiloso+hy (as tau*ht only as su&ser'ient to theolo*y, it
(as natural to d(ell lon*er u+on these t(o )ha+ters than u+on any
other of the s)ien)e- They (ere *radually more and more e1tended,
and (ere di'ided into many inferior )ha+ters, till at last the
do)trine of s+irits, of (hi)h so little )an &e 0no(n, )ame to
ta0e u+ as mu)h room in the system of +hiloso+hy as the do)trine
of &odies, of (hi)h so mu)h )an &e 0no(n- The do)trines
)on)ernin* those t(o su&2e)ts (ere )onsidered as ma0in* t(o
distin)t s)ien)es- What are )alled 4eta+hysi)s or neumati)s (ere
set in o++osition to hysi)s, and (ere )ulti'ated not only as the
more su&lime, &ut, for the +ur+oses of a +arti)ular +rofession,
as the more useful s)ien)e of the t(o- The +ro+er su&2e)t of
e1+eriment and o&ser'ation, a su&2e)t in (hi)h a )areful
attention is )a+a&le of ma0in* so many useful dis)o'eries, (as
almost entirely ne*le)ted- The su&2e)t in (hi)h, after a fe( 'ery
sim+le and almost o&'ious truths, the most )areful attention )an
dis)o'er nothin* &ut o&s)urity and un)ertainty, and )an
)onsequently +rodu)e nothin* &ut su&tleties and so+hisms, (as
*reatly )ulti'ated-
When those t(o s)ien)es had thus &een set in o++osition to
one another, the )om+arison &et(een them naturally *a'e &irth to
a third, to (hat (as )alled Ontolo*y, or the s)ien)e (hi)h
treated of the qualities and attri&utes (hi)h (ere )ommon to &oth
the su&2e)ts of the other t(o s)ien)es- .ut if su&tleties and
so+hisms )om+osed the *reater +art of the 4eta+hysi)s or
neumati)s of the s)hools, they )om+osed the (hole of this )o&(e&
s)ien)e of Ontolo*y, (hi)h (as li0e(ise sometimes )alled
4eta+hysi)s-
Wherein )onsisted the ha++iness and +erfe)tion of a man,
)onsidered not only as an indi'idual, &ut as the mem&er of a
family, of a state, and of the *reat so)iety of man0ind, (as the
o&2e)t (hi)h the an)ient moral +hiloso+hy +ro+osed to
in'esti*ate- In that +hiloso+hy the duties of human life (ere
treated as su&ser'ient to the ha++iness and +erfe)tion of human
life- .ut (hen moral, as (ell as natural +hiloso+hy, )ame to &e
tau*ht only as su&ser'ient to theolo*y, the duties of human life
(ere treated of as )hiefly su&ser'ient to the ha++iness of a life
to )ome- In the an)ient +hiloso+hy the +erfe)tion of 'irtue (as
re+resented as ne)essarily +rodu)ti'e, to the +erson (ho
+ossessed it, of the most +erfe)t ha++iness in this life- In the
modern +hiloso+hy it (as frequently re+resented as *enerally, or
rather as almost al(ays, in)onsistent (ith any de*ree of
ha++iness in this life/ and hea'en (as to &e earned only &y
+enan)e and mortifi)ation, &y the austerities and a&asement of a
mon0/ not &y the li&eral, *enerous, and s+irited )ondu)t of a
man- Casuistry and an as)eti) morality made u+, in most )ases,
the *reater +art of the moral +hiloso+hy of the s)hools- .y far
the most im+ortant of all the different &ran)hes of +hiloso+hy
&e)ame in this manner &y far the most )orru+ted-
Su)h, therefore, (as the )ommon )ourse of +hiloso+hi)al
edu)ation in the *reater +art of the uni'ersities in $uro+e-
!o*i) (as tau*ht first3 Ontolo*y )ame in the se)ond +la)e3
neumatolo*y, )om+rehendin* the do)trine )on)ernin* the nature of
the human soul and of the Deity, in the third3 in the fourth
follo(ed a de&ased system of moral +hiloso+hy (hi)h (as
)onsidered as immediately )onne)ted (ith the do)trines of
neumatolo*y, (ith the immortality of the human soul, and (ith
the re(ards and +unishments (hi)h, from the 2usti)e of the Deity,
(ere to &e e1+e)ted in a life to )ome3 a short and su+erfi)ial
system of hysi)s usually )on)luded the )ourse-
The alterations (hi)h the uni'ersities of $uro+e thus
introdu)ed into the an)ient )ourse of +hiloso+hy (ere all meant
for the edu)ation of e))lesiasti)s, and to render it a more
+ro+er introdu)tion to the study of theolo*y- .ut the additional
quantity of su&tlety and so+histry, the )asuistry and the as)eti)
morality (hi)h those alterations introdu)ed into it, )ertainly
did not render it more +ro+er for the edu)ation of *entlemen or
men of the (orld, or more li0ely either to im+ro'e the
understandin*, or to mend the heart-
This )ourse of +hiloso+hy is (hat still )ontinues to &e
tau*ht in the *reater +art of the uni'ersities of $uro+e, (ith
more or less dili*en)e, a))ordin* as the )onstitution of ea)h
+arti)ular uni'ersity ha++ens to render dili*en)e more or less
ne)essary to the tea)hers- In some of the ri)hest and &est
endo(ed uni'ersities, the tutors )ontent themsel'es (ith tea)hin*
a fe( un)onne)ted shreds and +ar)els of this )orru+ted )ourse/
and e'en these they )ommonly tea)h 'ery ne*li*ently and
su+erfi)ially-
The im+ro'ements (hi)h, in modern times, ha'e &een made in
se'eral different &ran)hes of +hiloso+hy ha'e not, the *reater
+art of them, &een made in uni'ersities, thou*h some no dou&t
ha'e- The *reater +art of uni'ersities ha'e not e'en &een 'ery
for(ard to ado+t those im+ro'ements after they (ere made/ and
se'eral of those learned so)ieties ha'e )hosen to remain, for a
lon* time, the san)tuaries in (hi)h e1+loded systems and o&solete
+re2udi)es found shelter and +rote)tion after they had &een
hunted out of e'ery other )orner of the (orld- In *eneral, the
ri)hest and &est endo(ed uni'ersities ha'e &een the slo(est in
ado+tin* those im+ro'ements, and the most a'erse to +ermit any
)onsidera&le )han*e in the esta&lished +lan of edu)ation- Those
im+ro'ements (ere more easily introdu)ed into some of the +oorer
uni'ersities, in (hi)h the tea)hers, de+endin* u+on their
re+utation for the *reater +art of their su&sisten)e, (ere
o&li*ed to +ay more attention to the )urrent o+inions of the
(orld-
.ut thou*h the +u&li) s)hools and uni'ersities of $uro+e
(ere ori*inally intended only for the edu)ation of a +arti)ular
+rofession, that of )hur)hmen/ and thou*h they (ere not al(ays
'ery dili*ent in instru)tin* their +u+ils e'en in the s)ien)es
(hi)h (ere su++osed ne)essary for that +rofession, yet they
*radually dre( to themsel'es the edu)ation of almost all other
+eo+le, +arti)ularly of almost all *entlemen and men of fortune-
No &etter method, it seems, )ould &e fallen u+on of s+endin*,
(ith any ad'anta*e, the lon* inter'al &et(een infan)y and that
+eriod of life at (hi)h men &e*in to a++ly in *ood earnest to the
real &usiness of the (orld, the &usiness (hi)h is to em+loy them
durin* the remainder of their days- The *reater +art of (hat is
tau*ht in s)hools and uni'ersities, ho(e'er, does not seem to &e
the most +ro+er +re+aration for that &usiness-
In $n*land it &e)omes e'ery day more and more the )ustom to
send youn* +eo+le to tra'el in forei*n )ountries immediately u+on
their lea'in* s)hool, and (ithout sendin* them to any uni'ersity-
Our youn* +eo+le, it is said, *enerally return home mu)h im+ro'ed
&y their tra'els- A youn* man (ho *oes a&road at se'enteen or
ei*hteen, and returns home at one and t(enty, returns three or
four years older than he (as (hen he (ent a&road/ and at that a*e
it is 'ery diffi)ult not to im+ro'e a *ood deal in three or four
years- In the )ourse of his tra'els he *enerally a)quires some
0no(led*e of one or t(o forei*n lan*ua*es/ a 0no(led*e, ho(e'er,
(hi)h is seldom suffi)ient to ena&le him either to s+ea0 or (rite
them (ith +ro+riety- In other res+e)ts he )ommonly returns home
more )on)eited, more un+rin)i+led, more dissi+ated, and more
in)a+a&le of any serious a++li)ation either to study or to
&usiness than he )ould (ell ha'e &e)ome in so short a time had he
li'ed at home- .y tra'ellin* so 'ery youn*, &y s+endin* in the
most fri'olous dissi+ation the most +re)ious years of his life,
at a distan)e from the ins+e)tion and )ontrol of his +arents and
relations, e'ery useful ha&it (hi)h the earlier +arts of his
edu)ation mi*ht ha'e had some tenden)y to form in him, instead of
&ein* ri'eted and )onfirmed, is almost ne)essarily either
(ea0ened or effa)ed- Nothin* &ut the dis)redit into (hi)h the
uni'ersities are allo(in* themsel'es to fall )ould e'er ha'e
&rou*ht into re+ute so 'ery a&surd a +ra)ti)e as that of
tra'ellin* at this early +eriod of life- .y sendin* his son
a&road, a father deli'ers himself at least for some time, from so
disa*reea&le an o&2e)t as that of a son unem+loyed, ne*le)ted,
and *oin* to ruin &efore his eyes-
Su)h ha'e &een the effe)ts of some of the modern
institutions for edu)ation-
Different +lans and different institutions for edu)ation
seem to ha'e ta0en +la)e in other a*es and nations-
In the re+u&li)s of an)ient 6ree)e, e'ery free )iti;en (as
instru)ted, under the dire)tion of the +u&li) ma*istrate, in
*ymnasti) e1er)ises and in musi)- .y *ymnasti) e1er)ises it (as
intended to harden his &ody, to shar+en his )oura*e, and to
+re+are him for the fati*ues and dan*ers of (ar/ and as the 6ree0
militia (as, &y all a))ounts, one of the &est that e'er (as in
the (orld, this +art of their +u&li) edu)ation must ha'e ans(ered
)om+letely the +ur+ose for (hi)h it (as intended- .y the other
+art, musi), it (as +ro+osed, at least &y the +hiloso+hers and
historians (ho ha'e *i'en us an a))ount of those institutions, to
humani;e the mind, to soften the tem+er, and to dis+ose it for
+erformin* all the so)ial and moral duties &oth of +u&li) and
+ri'ate life-
In an)ient Rome the e1er)ises of the Cam+us 4artius ans(ered
the +ur+ose as those of the 6ymnasium in an)ient 6ree)e, and they
seem to ha'e ans(ered it equally (ell- .ut amon* the Romans there
(as nothin* (hi)h )orres+onded to the musi)al edu)ation of the
6ree0s- The morals of the Romans, ho(e'er, &oth in +ri'ate and
+u&li) life, seem to ha'e &een not only equal, &ut, u+on the
(hole, a *ood deal su+erior to those of the 6ree0s- That they
(ere su+erior in +ri'ate life, (e ha'e the e1+ress testimony of
oly&ius and of Dionysius of #ali)arnassus, t(o authors (ell
a)quainted (ith &oth nations/ and the (hole tenor if the 6ree0
and Roman history &ears (itness to the su+eriority of the +u&li)
morals of the Romans- The *ood tem+er and moderation of
)ontendin* fa)tions seems to &e the most essential )ir)umstan)es
in the +u&li) morals of a free +eo+le- .ut the fa)tions of the
6ree0s (ere almost al(ays 'iolent and san*uinary/ (hereas, till
the time of the 6ra))hi, no &lood had e'er &een shed in any Roman
fa)tion/ and from the time of the 6ra))hi the Roman re+u&li) may
&e )onsidered as in reality dissol'ed- Not(ithstandin*,
therefore, the 'ery res+e)ta&le authority of lato, Aristotle,
and oly&ius, and not(ithstandin* the 'ery in*enious reasons &y
(hi)h 4r- 4ontesquieu endea'ours to su++ort that authority, it
seems +ro&a&le that the musi)al edu)ation of the 6ree0s had no
*reat effe)t in mendin* their morals, sin)e, (ithout any su)h
edu)ation, those of the Romans (ere u+on the (hole su+erior- The
res+e)t of those an)ient sa*es for the institutions of their
an)estors had +ro&a&ly dis+osed them to find mu)h +oliti)al
(isdom in (hat (as, +erha+s, merely an an)ient )ustom, )ontinued
(ithout interru+tion from the earliest +eriod of those so)ieties
to the times in (hi)h they had arri'ed at a )onsidera&le de*ree
of refinement- 4usi) and dan)in* are the *reat amusements of
almost all &ar&arous nations, and the *reat a))om+lishments (hi)h
are su++osed to fit any man for entertainin* his so)iety- It is
so at this day amon* the ne*roes on the )oast of Afri)a- It (as
so amon* the an)ient Celts, amon* the an)ient S)andina'ians, and,
as (e may learn from #omer, amon* the an)ient 6ree0s in the times
+re)edin* the Tro2an (ar- When the 6ree0 tri&es had formed
themsel'es into little re+u&li)s, it (as natural that the study
of those a))om+lishments should, for a lon* time, ma0e a +art of
the +u&li) and )ommon edu)ation of the +eo+le-
The masters (ho instru)ted the youn* +eo+le, either in musi)
or in military e1er)ises, do not seem to ha'e &een +aid, or e'en
a++ointed &y the state, either in Rome or e'en in Athens, the
6ree0 re+u&li) of (hose la(s and )ustoms (e are the &est
informed- The state required that e'ery free )iti;en should fit
himself for defendin* it in (ar, and should, u+on that a))ount,
learn his military e1er)ises- .ut it left him to learn them of
su)h masters as he )ould find, and it seems to ha'e ad'an)ed
nothin* for this +ur+ose &ut a +u&li) field or +la)e of e1er)ise
in (hi)h he should +ra)tise and +erform them-
In the early a*es &oth of the 6ree0 and Roman re+u&li)s, the
other +arts of edu)ation seem to ha'e )onsisted in learnin* to
read, (rite, and a))ount a))ordin* to the arithmeti) of the
times- These a))om+lishments the ri)her )iti;ens seem frequently
to ha'e a)quired at home &y the assistan)e of some domesti)
+eda*o*ue, (ho (as *enerally either a sla'e or a freed8man/ and
the +oorer )iti;ens, in the s)hools of su)h masters as made a
trade of tea)hin* for hire- Su)h +arts of edu)ation, ho(e'er,
(ere a&andoned alto*ether to the )are of the +arents or *uardians
of ea)h indi'idual- It does not a++ear that the state e'er
assumed any ins+e)tion or dire)tion of them- .y a la( of Solon,
indeed, the )hildren (ere a)quitted from maintainin* those
+arents in their old a*e (ho had ne*le)ted to instru)t them in
some +rofita&le trade or &usiness-
In the +ro*ress of refinement, (hen +hiloso+hy and rhetori)
)ame into fashion, the &etter sort of +eo+le used to send their
)hildren to the s)hools of +hiloso+hers and rhetori)ians, in
order to &e instru)ted in these fashiona&le s)ien)es- .ut those
s)hools (ere not su++orted &y the +u&li)- They (ere for a lon*
time &arely tolerated &y it- The demand for +hiloso+hy and
rhetori) (as for a lon* time so small that the first +rofessed
tea)hers of either )ould not find )onstant em+loyment in any one
)ity, &ut (ere o&li*ed to tra'el a&out from +la)e to +la)e- In
this manner li'ed Meno of $lea, rota*oras, 6or*ias, #i++ias, and
many others- As the demand in)reased, the s)hools &oth of
+hiloso+hy and rhetori) &e)ame stationary/ first in Athens, and
after(ards in se'eral other )ities- The state, ho(e'er, seems
ne'er to ha'e en)oura*ed them further than &y assi*nin* some of
them a +arti)ular +la)e to tea)h in, (hi)h (as sometimes done,
too, &y +ri'ate donors- The state seems to ha'e assi*ned the
A)ademy to lato, the !y)eum to Aristotle, and the orti)o to
Meno of Citta, the founder of the Stoi)s- .ut $+i)urus &equeathed
his *ardens to his o(n s)hool- Till a&out the time of 4ar)us
Antonius, ho(e'er, no tea)her a++ears to ha'e had any salary from
the +u&li), or to ha'e had any other emoluments &ut (hat arose
from the honoraries or fees of his s)holars- The &ounty (hi)h
that +hiloso+hi)al em+eror, as (e learn from !u)ian, &esto(ed
u+on one of the tea)hers of +hiloso+hy, +ro&a&ly lasted no lon*er
than his o(n life- There (as nothin* equi'alent to the +ri'ile*es
of *raduation, and to ha'e attended any of those s)hools (as not
ne)essary, in order to &e +ermitted to +ra)tise any +arti)ular
trade or +rofession- If the o+inion of their o(n utility )ould
not dra( s)holars to them, the la( neither for)ed any&ody to *o
to them nor re(arded any&ody for ha'in* *one to them- The
tea)hers had no 2urisdi)tion o'er their +u+ils, nor any other
authority &esides that natural authority, (hi)h su+erior 'irtue
and a&ilities ne'er fail to +ro)ure from youn* +eo+le to(ards
those (ho are entrusted (ith any +art of their edu)ation-
At Rome, the study of the )i'il la( made a +art of the
edu)ation, not of the *reater +art of the )iti;ens, &ut of some
+arti)ular families- The youn* +eo+le, ho(e'er, (ho (ished to
a)quire 0no(led*e in the la(, had no +u&li) s)hool to *o to, and
had no other method of studyin* it than &y frequentin* the
)om+any of su)h of their relations and friends as (ere su++osed
to understand it- It is +erha+s (orth (hile to remar0, that
thou*h the !a(s of the T(el'e Ta&les (ere, many of them, )o+ied
from those of some an)ient 6ree0 re+u&li)s, yet la( ne'er seems
to ha'e *ro(n u+ to &e a s)ien)e in any re+u&li) of an)ient
6ree)e- In Rome it &e)ame a s)ien)e 'ery early, and *a'e a
)onsidera&le de*ree of illustration to those )iti;ens (ho had the
re+utation of understandin* it- In the re+u&li)s of an)ient
6ree)e, +arti)ularly in Athens, the ordinary )ourts of 2usti)e
)onsisted of numerous, and therefore disorderly, &odies of
+eo+le, (ho frequently de)ided almost at random, or as )lamour,
fa)tion, and +arty s+irit ha++ened to determine- The i*nominy of
an un2ust de)ision, (hen it (as to &e di'ided amon* fi'e hundred,
a thousand, or fifteen hundred +eo+le 9for some of their )ourts
(ere so 'ery numerous:, )ould not fall 'ery hea'y u+on any
indi'idual- At Rome, on the )ontrary, the +rin)i+al )ourts of
2usti)e )onsisted either of a sin*le 2ud*e or of a small num&er
of 2ud*es, (hose )hara)ters, es+e)ially as they deli&erated
al(ays in +u&li), )ould not fail to &e 'ery mu)h affe)ted &y any
rash or un2ust de)ision- In dou&tful )ases su)h )ourts, from
their an1iety to a'oid &lame, (ould naturally endea'our to
shelter themsel'es under the e1am+le or +re)edent of the 2ud*es
(ho had sat &efore them, either in the same or in some other
)ourt- This attention to +ra)ti)e and +re)edent ne)essarily
formed the Roman la( into that re*ular and orderly system in
(hi)h it has &een deli'ered do(n to us/ and the li0e attention
has had the li0e effe)ts u+on the la(s of e'ery other )ountry
(here su)h attention has ta0en +la)e- The su+eriority of
)hara)ter in the Romans o'er that of the 6ree0s, so mu)h remar0ed
&y oly&ius and Dionysius of #ali)arnassus, (as +ro&a&ly more
o(in* to the &etter )onstitution of their )ourts of 2usti)e than
to any of the )ir)umstan)es to (hi)h those authors as)ri&e it-
The Romans are said to ha'e &een +arti)ularly distin*uished for
their su+erior res+e)t to an oath- .ut the +eo+le (ho (ere
a))ustomed to ma0e oath only &efore some dili*ent and
(ell8informed )ourt of 2usti)e (ould naturally &e mu)h more
attenti'e to (hat they s(ore than they (ho (ere a))ustomed to do
the same thin* &efore mo&&ish and disorderly assem&lies-
The a&ilities, &oth )i'il and military, of the 6ree0s and
Romans (ill readily &e allo(ed to ha'e &een at least equal to
those of any modern nation- Our +re2udi)e is +erha+s rather to
o'errate them- .ut e1)e+t in (hat related to military e1er)ises,
the state seems to ha'e &een at no +ains to form those *reat
a&ilities, for I )annot &e indu)ed to &elie'e that the musi)al
edu)ation of the 6ree0s )ould &e of mu)h )onsequen)e in formin*
them- 4asters, ho(e'er, had &een found, it seems, for instru)tin*
the &etter sort of +eo+le amon* those nations in e'ery art and
s)ien)e in (hi)h the )ir)umstan)es of their so)iety rendered it
ne)essary or )on'enient for them to &e instru)ted- The demand for
su)h instru)tion +rodu)ed (hat it al(ays +rodu)es8 the talent for
*i'in* it/ and the emulation (hi)h an unrestrained )om+etition
ne'er fails to e1)ite, a++ears to ha'e &rou*ht that talent to a
'ery hi*h de*ree of +erfe)tion- In the attention (hi)h the
an)ient +hiloso+hers e1)ited, in the em+ire (hi)h they a)quired
o'er the o+inions and +rin)i+les of their auditors, in the
fa)ulty (hi)h they +ossessed of *i'in* a )ertain tone and
)hara)ter to the )ondu)t and )on'ersation of those auditors, they
a++ear to ha'e &een mu)h su+erior to any modern tea)hers- In
modern times, the dili*en)e of +u&li) tea)hers is more or less
)orru+ted &y the )ir)umstan)es (hi)h render them more or less
inde+endent of their su))ess and re+utation in their +arti)ular
+rofessions- Their salaries, too, +ut the +ri'ate tea)her, (ho
(ould +retend to )ome into )om+etition (ith them, in the same
state (ith a mer)hant (ho attem+ts to trade (ithout a &ounty in
)om+etition (ith those (ho trade (ith a )onsidera&le one- If he
sells his *oods at nearly the same +ri)e, he )annot ha'e the same
+rofit, and at least, if not &an0ru+t)y and ruin, (ill infalli&ly
&e his lot- If he attem+ts to sell them mu)h dearer, he is li0ely
to ha'e so fe( )ustomers that his )ir)umstan)es (ill not &e mu)h
mended- The +ri'ile*es of *raduation, &esides, are in many
)ountries ne)essary, or at least e1tremely )on'enient, to most
men of learned +rofessions, that is, to the far *reater +art of
those (ho ha'e o))asion for a learned edu)ation- .ut those
+ri'ile*es )an &e o&tained only &y attendin* the le)tures of the
+u&li) tea)hers- The most )areful attendan)e u+on the a&lest
instru)tions of any +ri'ate tea)her )annot al(ays *i'e any title
to demand them- It is from these different )auses that the
+ri'ate tea)her of any of the s)ien)es (hi)h are )ommonly tau*ht
in uni'ersities is in modern times *enerally )onsidered as in the
'ery lo(est order of men of letters- A man of real a&ilities )an
s)ar)e find out a more humiliatin* or a more un+rofita&le
em+loyment to turn them to- The endo(ment of s)hools and )olle*es
ha'e, in this manner, not only )orru+ted the dili*en)e of +u&li)
tea)hers, &ut ha'e rendered it almost im+ossi&le to ha'e any *ood
+ri'ate ones-
Were there no +u&li) institutions for edu)ation, no system,
no s)ien)e (ould &e tau*ht for (hi)h there (as not some demand,
or (hi)h the )ir)umstan)es of the times did not render it either
ne)essary, or )on'enient, or at least fashiona&le, to learn- A
+ri'ate tea)her )ould ne'er find his a))ount in tea)hin* either
an e1+loded and antiquated system of a s)ien)e a)0no(led*ed to &e
useful, or a s)ien)e uni'ersally &elie'ed to &e a mere useless
and +edanti) hea+ of so+histry and nonsense- Su)h systems, su)h
s)ien)es, )an su&sist no(here, &ut in those in)or+orated
so)ieties for edu)ation (hose +ros+erity and re'enue are in a
*reat measure inde+endent of their re+utation and alto*ether
inde+endent of their industry- Were there no +u&li) institutions
for edu)ation, a *entleman, after *oin* throu*h (ith a++li)ation
and a&ilities the most )om+lete )ourse of edu)ation (hi)h the
)ir)umstan)es of the times (ere su++osed to afford, )ould not
)ome into the (orld )om+letely i*norant of e'erythin* (hi)h is
the )ommon su&2e)t of )on'ersation amon* *entlemen and men of the
(orld-
There are no +u&li) institutions for the edu)ation of (omen,
and there is a))ordin*ly nothin* useless, a&surd, or fantasti)al
in the )ommon )ourse of their edu)ation- They are tau*ht (hat
their +arents or *uardians 2ud*e it ne)essary or useful for them
to learn, and they are tau*ht nothin* else- $'ery +art of their
edu)ation tends e'idently to some useful +ur+ose/ either to
im+ro'e the natural attra)tions of their +erson, or to form their
mind to reser'e, to modesty, to )hastity, and to e)onomy/ to
render them &oth li0ely to &e)ome the mistresses of a family, and
to &eha'e +ro+erly (hen they ha'e &e)ome su)h- In e'ery +art of
her life a (oman feels some )on'enien)y or ad'anta*e from e'ery
+art of her edu)ation- It seldom ha++ens that a man, in any +art
of his life, deri'es any )on'enien)y or ad'anta*e from some of
the most la&orious and trou&lesome +arts of his edu)ation-
Ou*ht the +u&li), therefore, to *i'e no attention, it may &e
as0ed, to the edu)ation of the +eo+le> Or if it ou*ht to *i'e
any, (hat are the different +arts of edu)ation (hi)h it ou*ht to
attend to in the different orders of the +eo+le> and in (hat
manner ou*ht it to attend to them>
In some )ases the state of the so)iety ne)essarily +la)es
the *reater +art of indi'iduals in su)h situations as naturally
form in them, (ithout any attention of *o'ernment, almost all the
a&ilities and 'irtues (hi)h that state requires, or +erha+s )an
admit of- In other )ases the state of the so)iety does not +la)e
the +art of indi'iduals in su)h situations, and some attention of
*o'ernment is ne)essary in order to +re'ent the almost entire
)orru+tion and de*enera)y of the *reat &ody of the +eo+le-
In the +ro*ress of the di'ision of la&our, the em+loyment of
the far *reater +art of those (ho li'e &y la&our, that is, of the
*reat &ody of the +eo+le, )omes to &e )onfined to a fe( 'ery
sim+le o+erations, frequently to one or t(o- .ut the
understandin*s of the *reater +art of men are ne)essarily formed
&y their ordinary em+loyments- The man (hose (hole life is s+ent
in +erformin* a fe( sim+le o+erations, of (hi)h the effe)ts are
+erha+s al(ays the same, or 'ery nearly the same, has no o))asion
to e1ert his understandin* or to e1er)ise his in'ention in
findin* out e1+edients for remo'in* diffi)ulties (hi)h ne'er
o))ur- #e naturally loses, therefore, the ha&it of su)h e1ertion,
and *enerally &e)omes as stu+id and i*norant as it is +ossi&le
for a human )reature to &e)ome- The tor+or of his mind renders
him not only in)a+a&le of relishin* or &earin* a +art in any
rational )on'ersation, &ut of )on)ei'in* any *enerous, no&le, or
tender sentiment, and )onsequently of formin* any 2ust 2ud*ment
)on)ernin* many e'en of the ordinary duties of +ri'ate life- Of
the *reat and e1tensi'e interests of his )ountry he is alto*ether
in)a+a&le of 2ud*in*, and unless 'ery +arti)ular +ains ha'e &een
ta0en to render him other(ise, he is equally in)a+a&le of
defendin* his )ountry in (ar- The uniformity of his stationary
life naturally )orru+ts the )oura*e of his mind, and ma0es him
re*ard (ith a&horren)e the irre*ular, un)ertain, and ad'enturous
life of a soldier- It )orru+ts e'en the a)ti'ity of his &ody, and
renders him in)a+a&le of e1ertin* his stren*th (ith 'i*our and
+erse'eran)e in any other em+loyment than that to (hi)h he has
&een &red- #is de1terity at his o(n +arti)ular trade seems, in
this manner, to &e a)quired at the e1+ense of his intelle)tual,
so)ial, and martial 'irtues- .ut in e'ery im+ro'ed and )i'ilised
so)iety this is the state into (hi)h the la&ourin* +oor, that is,
the *reat &ody of the +eo+le, must ne)essarily fall, unless
*o'ernment ta0es some +ains to +re'ent it-
It is other(ise in the &ar&arous so)ieties, as they are
)ommonly )alled, of hunters, of she+herds, and e'en of hus&andmen
in that rude state of hus&andry (hi)h +re)edes the im+ro'ement of
manufa)tures and the e1tension of forei*n )ommer)e- In su)h
so)ieties the 'aried o))u+ations of e'ery man o&li*e e'ery man to
e1ert his )a+a)ity and to in'ent e1+edients for remo'in*
diffi)ulties (hi)h are )ontinually o))urrin*- In'ention is 0e+t
ali'e, and the mind is not suffered to fall into that dro(sy
stu+idity (hi)h, in a )i'ilised so)iety, seems to &enum& the
understandin* of almost all the inferior ran0s of +eo+le- In
those &ar&arous so)ieties, as they are )alled, e'ery man, it has
already &een o&ser'ed, is a (arrior- $'ery man, too, is in some
measure a statesman, and )an form a tolera&le 2ud*ment )on)ernin*
the interest of the so)iety and the )ondu)t of those (ho *o'ern
it- #o( far their )hiefs are *ood 2ud*es in +ea)e, or *ood
leaders in (ar, is o&'ious to the o&ser'ation of almost e'ery
sin*le man amon* them- In su)h a so)iety, indeed, no man )an (ell
a)quire that im+ro'ed and refined understandin* (hi)h a fe( men
sometimes +ossess in a more )i'ilised state- Thou*h in a rude
so)iety there is a *ood deal of 'ariety in the o))u+ations of
e'ery indi'idual, there is not a *reat deal in those of the (hole
so)iety- $'ery man does, or is )a+a&le of doin*, almost e'ery
thin* (hi)h any other man does, or is )a+a&le of doin*- $'ery man
has a )onsidera&le de*ree of 0no(led*e, in*enuity, and in'ention3
&ut s)ar)e any man has a *reat de*ree- The de*ree, ho(e'er, (hi)h
is )ommonly +ossessed, is *enerally suffi)ient for )ondu)tin* the
(hole sim+le &usiness of the so)iety- In a )i'ilised state, on
the )ontrary, thou*h there is little 'ariety in the o))u+ations
of the *reater +art of indi'iduals, there is an almost infinite
'ariety in those of the (hole so)iety- These 'aried o))u+ations
+resent an almost infinite 'ariety of o&2e)ts to the
)ontem+lation of those fe(, (ho, &ein* atta)hed to no +arti)ular
o))u+ation themsel'es, ha'e leisure and in)lination to e1amine
the o))u+ations of other +eo+le- The )ontem+lation of so *reat a
'ariety of o&2e)ts ne)essarily e1er)ises their minds in endless
)om+arisons and )om&inations, and renders their understandin*s,
in an e1traordinary de*ree, &oth a)ute and )om+rehensi'e- Unless
those fe(, ho(e'er, ha++en to &e +la)ed in some 'ery +arti)ular
situations, their *reat a&ilities, thou*h honoura&le to
themsel'es, may )ontri&ute 'ery little to the *ood *o'ernment or
ha++iness of their so)iety- Not(ithstandin* the *reat a&ilities
of those fe(, all the no&ler +arts of the human )hara)ter may &e,
in a *reat measure, o&literated and e1tin*uished in the *reat
&ody of the +eo+le-
The edu)ation of the )ommon +eo+le requires, +erha+s, in a
)i'ilised and )ommer)ial so)iety the attention of the +u&li) more
than that of +eo+le of some ran0 and fortune- eo+le of some ran0
and fortune are *enerally ei*hteen or nineteen years of a*e
&efore they enter u+on that +arti)ular &usiness, +rofession, or
trade, &y (hi)h they +ro+ose to distin*uish themsel'es in the
(orld- They ha'e &efore that full time to a)quire, or at least to
fit themsel'es for after(ards a)quirin*, e'ery a))om+lishment
(hi)h )an re)ommend them to the +u&li) esteem, or render them
(orthy of it- Their +arents or *uardians are *enerally
suffi)iently an1ious that they should &e so a))om+lished, and
are, in most )ases, (illin* enou*h to lay out the e1+ense (hi)h
is ne)essary for that +ur+ose- If they are not al(ays +ro+erly
edu)ated, it is seldom from the (ant of e1+ense laid out u+on
their edu)ation, &ut from the im+ro+er a++li)ation of that
e1+ense- It is seldom from the (ant of masters, &ut from the
ne*li*en)e and in)a+a)ity of the masters (ho are to &e had, and
from the diffi)ulty, or rather from the im+ossi&ility, (hi)h
there is in the +resent state of thin*s of findin* any &etter-
The em+loyments, too, in (hi)h +eo+le of some ran0 or fortune
s+end the *reater +art of their li'es are not, li0e those of the
)ommon +eo+le, sim+le and uniform- They are almost all of them
e1tremely )om+li)ated, and su)h as e1er)ise the head more than
the hands- The understandin*s of those (ho are en*a*ed in su)h
em+loyments )an seldom *ro( tor+id for (ant of e1er)ise- The
em+loyments of +eo+le of some ran0 and fortune, &esides, are
seldom su)h as harass them from mornin* to ni*ht- They *enerally
ha'e a *ood deal of leisure, durin* (hi)h they may +erfe)t
themsel'es in e'ery &ran)h either of useful or ornamental
0no(led*e of (hi)h they may ha'e laid the foundation, or for
(hi)h they may ha'e a)quired some taste in the earlier +art of
life-
It is other(ise (ith the )ommon +eo+le- They ha'e little
time to s+are for edu)ation- Their +arents )an s)ar)e afford to
maintain them e'en in infan)y- As soon as they are a&le to (or0
they must a++ly to some trade &y (hi)h they )an earn their
su&sisten)e- That trade, too, is *enerally so sim+le and uniform
as to *i'e little e1er)ise to the understandin*, (hile, at the
same time, their la&our is &oth so )onstant and so se'ere, that
it lea'es them little leisure and less in)lination to a++ly to,
or e'en to thin0 of, anythin* else-
.ut thou*h the )ommon +eo+le )annot, in any )i'ilised
so)iety, &e so (ell instru)ted as +eo+le of some ran0 and
fortune, the most essential +arts of edu)ation, ho(e'er, to read,
(rite, and a))ount, )an &e a)quired at so early a +eriod of life
that the *reater +art e'en of those (ho are to &e &red to the
lo(est o))u+ations ha'e time to a)quire them &efore they )an &e
em+loyed in those o))u+ations- "or a 'ery small e1+ense the
+u&li) )an fa)ilitate, )an en)oura*e, and )an e'en im+ose u+on
almost the (hole &ody of the +eo+le the ne)essity of a)quirin*
those most essential +arts of edu)ation-
The +u&li) )an fa)ilitate this a)quisition &y esta&lishin*
in e'ery +arish or distri)t a little s)hool, (here )hildren may
&e tau*ht for a re(ard so moderate that e'en a )ommon la&ourer
may afford it/ the master &ein* +artly, &ut not (holly, +aid &y
the +u&li), &e)ause, if he (as (holly, or e'en +rin)i+ally, +aid
&y it, he (ould soon learn to ne*le)t his &usiness- In S)otland
the esta&lishment of su)h +arish s)hools has tau*ht almost the
(hole )ommon +eo+le to read, and a 'ery *reat +ro+ortion of them
to (rite and a))ount- In $n*land the esta&lishment of )harity
s)hools has had an effe)t of the same 0ind, thou*h not so
uni'ersally, &e)ause the esta&lishment is not so uni'ersal- If in
those little s)hools the &oo0s, &y (hi)h the )hildren are tau*ht
to read, (ere a little more instru)ti'e than they )ommonly are,
and if, instead of a little smatterin* of !atin, (hi)h the
)hildren of the )ommon +eo+le are sometimes tau*ht there, and
(hi)h )an s)ar)e e'er &e of any use to them, they (ere instru)ted
in the elementary +arts of *eometry and me)hani)s, the literary
edu)ation of this ran0 of +eo+le (ould +erha+s &e as )om+lete as
it )an &e- There is s)ar)e a )ommon trade (hi)h does not afford
some o++ortunities of a++lyin* to it the +rin)i+les of *eometry
and me)hani)s, and (hi)h (ould not therefore *radually e1er)ise
and im+ro'e the )ommon +eo+le in those +rin)i+les, the ne)essary
introdu)tion to the most su&lime as (ell as to the most useful
s)ien)es-
The +u&li) )an en)oura*e the a)quisition of those most
essential +arts of edu)ation &y *i'in* small +remiums, and little
&ad*es of distin)tion, to the )hildren of the )ommon +eo+le (ho
e1)el in them-
The +u&li) )an im+ose u+on almost the (hole &ody of the
+eo+le the ne)essity of a)quirin* those most essential +arts of
edu)ation, &y o&li*in* e'ery man to under*o an e1amination or
+ro&ation in them &efore he )an o&tain the freedom in any
)or+oration, or &e allo(ed to set u+ any trade either in a
'illa*e or to(n )or+orate-
It (as in this manner, &y fa)ilitatin* the a)quisition of
their military and *ymnasti) e1er)ises, &y en)oura*in* it, and
e'en &y im+osin* u+on the (hole &ody of the +eo+le the ne)essity
of learnin* those e1er)ises, that the 6ree0 and Roman re+u&li)s
maintained the martial s+irit of their res+e)ti'e )iti;ens- They
fa)ilitated the a)quisition of those e1er)ises &y a++ointin* a
)ertain +la)e for learnin* and +ra)tisin* them, and &y *rantin*
to )ertain masters the +ri'ile*e of tea)hin* in that +la)e- Those
masters do not a++ear to ha'e had either salaries or e1)lusi'e
+ri'ile*es of any 0ind- Their re(ard )onsisted alto*ether in (hat
they *ot from their s)holars/ and a )iti;en (ho had learnt his
e1er)ises in the +u&li) *ymnasia had no sort of le*al ad'anta*e
o'er one (ho had learnt them +ri'ately, +ro'ided the latter had
learnt them equally (ell- Those re+u&li)s en)oura*ed the
a)quisition of those e1er)ises &y &esto(in* little +remiums and
&ad*es of distin)tion u+on3 those (ho e1)elled in them- To ha'e
*ained a +ri;e in the Olym+i), Isthmian, or Nemaean *ames, *a'e
illustration, not only to the +erson (ho *ained it, &ut to his
(hole family and 0indred- The o&li*ation (hi)h e'ery )iti;en (as
under to ser'e a )ertain num&er of years, if )alled u+on, in the
armies of the re+u&li), suffi)iently im+osed the ne)essity of
learnin* those e1er)ises, (ithout (hi)h he )ould not &e fit for
that ser'i)e-
That in the +ro*ress of im+ro'ement the +ra)ti)e of military
e1er)ises, unless *o'ernment ta0es +ro+er +ains to su++ort it,
*oes *radually to de)ay, and, to*ether (ith it, the martial
s+irit of the *reat &ody of the +eo+le, the e1am+le of modern
$uro+e suffi)iently demonstrates- .ut the se)urity of e'ery
so)iety must al(ays de+end, more or less, u+on the martial s+irit
of the *reat &ody of the +eo+le- In the +resent times, indeed,
that martial s+irit alone, and unsu++orted &y a (ell8dis)i+lined
standin* army, (ould not +erha+s &e suffi)ient for the defen)e
and se)urity of any so)iety- .ut (here e'ery )iti;en had the
s+irit of a soldier, a smaller standin* army (ould surely &e
requisite- That s+irit, &esides, (ould ne)essarily diminish 'ery
mu)h the dan*ers to li&erty, (hether real or ima*inary, (hi)h are
)ommonly a++rehended from a standin* army- As it (ould 'ery mu)h
fa)ilitate the o+erations of that army a*ainst a forei*n in'ader,
so it (ould o&stru)t them as mu)h if, unfortunately, they should
e'er &e dire)ted a*ainst the )onstitution of the state-
The an)ient institutions of 6ree)e and Rome seem to ha'e
&een mu)h more effe)tual for maintainin* the martial s+irit of
the *reat &ody of the +eo+le than the esta&lishment of (hat are
)alled the militias of modern times- They (ere mu)h more sim+le-
When they (ere on)e esta&lished they e1e)uted themsel'es, and it
required little or no attention from *o'ernment to maintain them
in the most +erfe)t 'i*our- Whereas to maintain, e'en in
tolera&le e1e)ution, the )om+le1 re*ulations of any modern
militia, requires the )ontinual and +ainful attention of
*o'ernment, (ithout (hi)h they are )onstantly fallin* into total
ne*le)t and disuse- The influen)e, &esides, of the an)ient
institutions (as mu)h more uni'ersal- .y means of them the (hole
&ody of the +eo+le (as )om+letely instru)ted in the use of arms-
Whereas it is &ut a 'ery small +art of them (ho )an e'er &e so
instru)ted &y the re*ulations of any modern militia, e1)e+t,
+erha+s, that of S(it;erland- .ut a )o(ard, a man in)a+a&le
either of defendin* or of re'en*in* himself, e'idently (ants one
of the most essential +arts of the )hara)ter of a man- #e is as
mu)h mutilated and deformed in his mind as another is in his
&ody, (ho is either de+ri'ed of some of its most essential
mem&ers, or has lost the use of them- #e is e'idently the more
(ret)hed and misera&le of the t(o/ &e)ause ha++iness and misery,
(hi)h reside alto*ether in the mind, must ne)essarily de+end more
u+on the healthful or unhealthful, the mutilated or entire state
of the mind, than u+on that of the &ody- $'en thou*h the martial
s+irit of the +eo+le (ere of no use to(ards the defen)e of the
so)iety, yet to +re'ent that sort of mental mutilation,
deformity, and (ret)hedness, (hi)h )o(ardi)e ne)essarily in'ol'es
in it, from s+readin* themsel'es throu*h the *reat &ody of the
+eo+le, (ould still deser'e the most serious attention of
*o'ernment, in the same manner as it (ould deser'e its most
serious attention to +re'ent a le+rosy or any other loathsome and
offensi'e disease, thou*h neither mortal nor dan*erous, from
s+readin* itself amon* them, thou*h +erha+s no other +u&li) *ood
mi*ht result from su)h attention &esides the +re'ention of so
*reat a +u&li) e'il-
The same thin* may &e said of the *ross i*noran)e and
stu+idity (hi)h, in a )i'ilised so)iety, seem so frequently to
&enum& the understandin*s of all the inferior ran0s of +eo+le- A
man (ithout the +ro+er use of the intelle)tual fa)ulties of a
man, is, if +ossi&le, more )ontem+ti&le than e'en a )o(ard, and
seems to &e mutilated and deformed in a still more essential +art
of the )hara)ter of human nature- Thou*h the state (as to deri'e
no ad'anta*e from the instru)tion of the inferior ran0s of
+eo+le, it (ould still deser'e its attention that they should not
&e alto*ether uninstru)ted- The state, ho(e'er, deri'es no
in)onsidera&le ad'anta*e from their instru)tion- The more they
are instru)ted the less lia&le they are to the delusions of
enthusiasm and su+erstition, (hi)h, amon* i*norant nations,
frequently o))asion the most dreadful disorders- An instru)ted
and intelli*ent +eo+le, &esides, are al(ays more de)ent and
orderly than an i*norant and stu+id one- They feel themsel'es,
ea)h indi'idually, more res+e)ta&le and more li0ely to o&tain the
res+e)t of their la(ful su+eriors, and they are therefore more
dis+osed to res+e)t those su+eriors- They are more dis+osed to
e1amine, and more )a+a&le of seein* throu*h, the interested
)om+laints of fa)tion and sedition, and they are, u+on that
a))ount, less a+t to &e misled into any (anton or unne)essary
o++osition to the measures of *o'ernment- In free )ountries,
(here the safety of *o'ernment de+ends 'ery mu)h u+on the
fa'oura&le 2ud*ment (hi)h the +eo+le may form of its )ondu)t, it
must surely &e of the hi*hest im+ortan)e that they should not &e
dis+osed to 2ud*e rashly or )a+ri)iously )on)ernin* it-
ARTIC!$ III Of the $1+ense of the
Institutions for the Instru)tion of
eo+le of all A*es
The institutions for the instru)tion of +eo+le of all a*es
are )hiefly those for reli*ious instru)tion- This is a s+e)ies of
instru)tion of (hi)h the o&2e)t is not so mu)h to render the
+eo+le *ood )iti;ens in this (orld, as to +re+are them for
another and a &etter (orld in a life to )ome- The tea)hers of the
do)trine (hi)h )ontains this instru)tion, in the same manner as
other tea)hers, may either de+end alto*ether for their
su&sisten)e u+on the 'oluntary )ontri&utions of their hearers, or
they may deri'e it from some other fund to (hi)h the la( of their
)ountry may entitle them/ su)h as a landed estate, a tithe or
land ta1, an esta&lished salary or sti+end- Their e1ertion, their
;eal and industry, are li0ely to &e mu)h *reater in the former
situation than in the latter- In this res+e)t the tea)hers of ne(
reli*ions ha'e al(ays had a )onsidera&le ad'anta*e in atta)0in*
those an)ient and esta&lished systems of (hi)h the )ler*y,
re+osin* themsel'es u+on their &enefi)es, had ne*le)ted to 0ee+
u+ the fer'our of faith and de'otion in the *reat &ody of the
+eo+le, and ha'in* *i'en themsel'es u+ to indolen)e, (ere &e)ome
alto*ether in)a+a&le of ma0in* any 'i*orous e1ertion in defen)e
e'en of their o(n esta&lishment- The )ler*y of an esta&lished and
(ell8endo(ed reli*ion frequently &e)ome men of learnin* and
ele*an)e, (ho +ossess all the 'irtues of *entlemen, or (hi)h )an
re)ommend them to the esteem of *entlemen3 &ut they are a+t
*radually to lose the qualities, &oth *ood and &ad, (hi)h *a'e
them authority and influen)e (ith the inferior ran0s of +eo+le,
and (hi)h had +erha+s &een the ori*inal )auses of the su))ess and
esta&lishment of their reli*ion- Su)h a )ler*y, (hen atta)0ed &y
a set of +o+ular and &old, thou*h +erha+s stu+id and i*norant
enthusiasts, feel themsel'es as +erfe)tly defen)eless as the
indolent, effeminate, and full8fed nations of the southern +arts
of Asia (hen they (ere in'aded &y the a)ti'e, hardy, and hun*ry
Tartars of the North- Su)h a )ler*y, u+on su)h an emer*en)y, ha'e
)ommonly no other resour)e than to )all u+on the )i'il ma*istrate
to +erse)ute, destroy or dri'e out their ad'ersaries, as
distur&ers of the +u&li) +ea)e- It (as thus that the Roman
Catholi) )ler*y )alled u+on the )i'il ma*istrates to +erse)ute
the rotestants, and the Chur)h of $n*land to +erse)ute the
Dissenters/ and that in *eneral e'ery reli*ious se)t, (hen it has
on)e en2oyed for a )entury or t(o the se)urity of a le*al
esta&lishment, has found itself in)a+a&le of ma0in* any 'i*orous
defen)e a*ainst any ne( se)t (hi)h )hose to atta)0 its do)trine
or dis)i+line- U+on su)h o))asions the ad'anta*e in +oint of
learnin* and *ood (ritin* may sometimes &e on the side of the
esta&lished )hur)h- .ut the arts of +o+ularity, all the arts of
*ainin* +roselytes, are )onstantly on the side of its
ad'ersaries- In $n*land those arts ha'e &een lon* ne*le)ted &y
the (ell8endo(ed )ler*y of the esta&lished )hur)h, and are at
+resent )hiefly )ulti'ated &y the Dissenters and &y the
4ethodists- The inde+endent +ro'isions, ho(e'er, (hi)h in many
+la)es ha'e &een made for dissentin* tea)hers &y means of
'oluntary su&s)ri+tions, of trust ri*hts, and other e'asions of
the la(, seem 'ery mu)h to ha'e a&ated the ;eal and a)ti'ity of
those tea)hers- They ha'e many of them &e)ome 'ery learned,
in*enious, and res+e)ta&le men/ &ut they ha'e in *eneral )eased
to &e 'ery +o+ular +rea)hers- The 4ethodists, (ithout half the
learnin* of the Dissenters, are mu)h more in 'o*ue-
In the Chur)h of Rome, the industry and ;eal of the inferior
)ler*y are 0e+t more ali'e &y the +o(erful moti'e of
self8interest than +erha+s in any esta&lished rotestant )hur)h-
The +aro)hial )ler*y deri'e, many of them, a 'ery )onsidera&le
+art of their su&sisten)e from the 'oluntary o&lations of the
+eo+le/ a sour)e of re'enue (hi)h )onfession *i'es them many
o++ortunities of im+ro'in*- The mendi)ant orders deri'e their
(hole su&sisten)e from su)h o&lations- It is (ith them as (ith
the hussars and li*ht infantry of some armies/ no +lunder, no
+ay- The +aro)hial )ler*y are li0e those tea)hers (hose re(ard
de+ends +artly u+on their salary, and +artly u+on the fees or
honoraries (hi)h they *et from their +u+ils, and these must
al(ays de+end more or less u+on their industry and re+utation-
The mendi)ant orders are li0e those tea)hers (hose su&sisten)e
de+ends alto*ether u+on the industry- They are o&li*ed,
therefore, to use e'ery art (hi)h )an animate the de'otion of the
)ommon +eo+le- The esta&lishment of the t(o *reat mendi)ant
orders of St- Domini) and St- "ran)is, it is o&ser'ed &y
4a)hia'el, re'i'ed, in the thirteenth and fourteenth )enturies,
the lan*uishin* faith and de'otion of the Catholi) Chur)h- In
Roman Catholi) )ountries the s+irit of de'otion is su++orted
alto*ether &y the mon0s and &y the +oorer +aro)hial )ler*y- The
*reat di*nitaries of the )hur)h, (ith all the a))om+lishments of
*entlemen and men of the (orld, and sometimes (ith those of men
of learnin*, are )areful enou*h to maintain the ne)essary
dis)i+line o'er their inferiors, &ut seldom *i'e themsel'es any
trou&le a&out the instru)tion of the +eo+le-
@4ost of the arts and +rofessions in a state,@ says &y far
the most illustrious +hiloso+her and historian of the +resent
a*e, @are of su)h a nature that, (hile they +romote the interests
of the so)iety, they are also useful or a*reea&le to some
indi'iduals/ and in that )ase, the )onstant rule of the
ma*istrate, e1)e+t +erha+s on the first introdu)tion of any art,
is to lea'e the +rofession to itself, and trust its en)oura*ement
to the indi'iduals (ho rea+ the &enefit of it- The artisans,
findin* their +rofits to rise &y the fa'our of their )ustomers,
in)rease as mu)h as +ossi&le their s0ill and industry/ and as
matters are not distur&ed &y any in2udi)ious tam+erin*, the
)ommodity is al(ays sure to &e at all times nearly +ro+ortioned
to the demand-
@.ut there are also some )allin*s, (hi)h, thou*h useful and
e'en ne)essary in a state, &rin* no ad'anta*e or +leasure to any
indi'idual, and the su+reme +o(er is o&li*ed to alter its )ondu)t
(ith re*ard to the retainers of those +rofessions- It must *i'e
them +u&li) en)oura*ement in order to their su&sisten)e, and it
must +ro'ide a*ainst that ne*li*en)e to (hi)h they (ill naturally
&e su&2e)t, either &y anne1in* +arti)ular honours to the
+rofession, &y esta&lishin* a lon* su&ordination of ran0s and a
stri)t de+enden)e, or &y some other e1+edient- The +ersons
em+loyed in the finan)es, fleets, and ma*istra)y, are instan)es
of this order of men-
@It may naturally &e thou*ht, at first si*ht, that the
e))lesiasti)s &elon* to the first )lass, and that their
en)oura*ement, as (ell as that of la(yers and +hysi)ians, may
safely &e entrusted to the li&erality of indi'iduals, (ho are
atta)hed to their do)trines, and (ho find &enefit or )onsolation
from their s+iritual ministry and assistan)e- Their industry and
'i*ilan)e (ill, no dou&t, &e (hetted &y su)h an additional
moti'e/ and their s0ill in the +rofession, as (ell as their
address in *o'ernin* the minds of the +eo+le, must re)ei'e daily
in)rease from their in)reasin* +ra)ti)e, study, and attention-
@.ut if (e )onsider the matter more )losely, (e shall find
that this interested dili*en)e of the )ler*y is (hat e'ery (ise
le*islator (ill study to +re'ent/ &e)ause in e'ery reli*ion
e1)e+t the true it is hi*hly +erni)ious, and it has e'en a
natural tenden)y to +er'ert the true, &y infusin* into it a
stron* mi1ture of su+erstition, folly, and delusion- $a)h *hostly
+ra)titioner, in order to render himself more +re)ious and sa)red
in the eyes of his retainers, (ill ins+ire them (ith the most
'iolent a&horren)e of all other se)ts, and )ontinually endea'our,
&y some no'elty, to e1)ite the lan*uid de'otion of his audien)e-
No re*ard (ill &e +aid to truth, morals, or de)en)y in the
do)trines in)ul)ated- $'ery tenet (ill &e ado+ted that &est suits
the disorderly affe)tions of the human frame- Customers (ill &e
dra(n to ea)h )on'enti)le &y ne( industry and address in
+ra)tisin* on the +assions and )redulity of the +o+ula)e- And in
the end, the )i'il ma*istrate (ill find that he has dearly +aid
for his +retended fru*ality, in sa'in* a fi1ed esta&lishment for
the +riests/ and that in reality the most de)ent and ad'anta*eous
)om+osition (hi)h he )an ma0e (ith the s+iritual *uides, is to
&ri&e their indolen)e &y assi*nin* stated salaries to their
+rofession, and renderin* it su+erfluous for them to &e farther
a)ti'e than merely to +re'ent their flo)0 from strayin* in quest
of ne( +astures- And in this manner e))lesiasti)al
esta&lishments, thou*h )ommonly they arose at first from
reli*ious 'ie(s, +ro'e in the end ad'anta*eous to the +oliti)al
interests of so)iety-@
.ut (hate'er may ha'e &een the *ood or &ad effe)ts of the
inde+endent +ro'ision of the )ler*y, it has, +erha+s, &een 'ery
seldom &esto(ed u+on them from any 'ie( to those effe)ts- Times
of 'iolent reli*ious )ontro'ersy ha'e *enerally &een times of
equally 'iolent +oliti)al fa)tion- U+on su)h o))asions, ea)h
+oliti)al +arty has either found it, or ima*ined it, for its
interest to lea*ue itself (ith some one or other of the
)ontendin* reli*ious se)ts- .ut this )ould &e done only &y
ado+tin*, or at least &y fa'ourin*, the tenets of that +arti)ular
se)t- The se)t (hi)h had the *ood fortune to &e lea*ued (ith the
)onquerin* +arty ne)essarily shared in the 'i)tory of its ally,
&y (hose fa'our and +rote)tion it (as soon ena&led in some de*ree
to silen)e and su&due all its ad'ersaries- Those ad'ersaries had
*enerally lea*ued themsel'es (ith the enemies of the )onquerin*
+arty, and (ere therefore the enemies of that +arty- The )ler*y
of this +arti)ular se)t ha'in* thus &e)ome )om+lete masters of
the field, and their influen)e and authority (ith the *reat &ody
of the +eo+le &ein* in its hi*hest 'i*our, they (ere +o(erful
enou*h to o'era(e the )hiefs and leaders of their o(n +arty, and
to o&li*e the )i'il ma*istrate to res+e)t their o+inions and
in)linations- Their first demand (as *enerally that he should
silen)e and su&due an their ad'ersaries3 and their se)ond, that
he should &esto( an inde+endent +ro'ision on themsel'es- As they
had *enerally )ontri&uted a *ood deal to the 'i)tory, it seemed
not unreasona&le that they should ha'e some share in the s+oil-
They (ere (eary, &esides, of humourin* the +eo+le, and of
de+endin* u+on their )a+ri)e for a su&sisten)e- In ma0in* this
demand, therefore, they )onsulted their o(n ease and )omfort,
(ithout trou&lin* themsel'es a&out the effe)t (hi)h it mi*ht ha'e
in future times u+on the influen)e and authority of their order-
The )i'il ma*istrate, (ho )ould )om+ly (ith this demand only &y
*i'in* them somethin* (hi)h he (ould ha'e )hosen mu)h rather to
ta0e, or to 0ee+ to himself, (as seldom 'ery for(ard to *rant it-
Ne)essity, ho(e'er, al(ays for)ed him to su&mit at last, thou*h
frequently not till after many delays, e'asions, and affe)ted
e1)uses-
.ut if +oliti)s had ne'er )alled in the aid of reli*ion, had
the )onquerin* +arty ne'er ado+ted the tenets of one se)t more
than those of another (hen it had *ained the 'i)tory, it (ould
+ro&a&ly ha'e dealt equally and im+artially (ith all the
different se)ts, and ha'e allo(ed e'ery man to )hoose his o(n
+riest and his o(n reli*ion as he thou*ht +ro+er- There (ould in
this )ase, no dou&t= ha'e &een a *reat multitude of reli*ious
se)ts- Almost e'ery different )on*re*ation mi*ht +ro&a&ly ha'e
made a little se)t &y itself, or ha'e entertained some +e)uliar
tenets of its o(n- $a)h tea)her (ould no dou&t ha'e felt himself
under the ne)essity of ma0in* the utmost e1ertion and of usin*
e'ery art &oth to +reser'e and to in)rease the num&er of his
dis)i+les- .ut as e'ery other tea)her (ould ha'e felt himself
under the same ne)essity, the su))ess of no one tea)her, or se)t
of tea)hers, )ould ha'e &een 'ery *reat- The interested and
a)ti'e ;eal of reli*ious tea)hers )an &e dan*erous and
trou&lesome only (here there is either &ut one se)t tolerated in
the so)iety, or (here the (hole of a lar*e so)iety is di'ided
into t(o or three *reat se)ts/ the tea)hers of ea)h a)tin* &y
)on)ert, and under a re*ular dis)i+line and su&ordination- .ut
that ;eal must &e alto*ether inno)ent (here the so)iety is
di'ided into t(o or three hundred, or +erha+s into as many
thousand small se)ts, of (hi)h no one )ould &e )onsidera&le
enou*h to distur& the +u&li) tranquility- The tea)hers of ea)h
se)t, seein* themsel'es surrounded on all sides (ith more
ad'ersaries than friends, (ould &e o&li*ed to learn that )andour
and moderation (hi)h is so seldom to &e found amon* the tea)hers
of those *reat se)ts (hose tenets, &ein* su++orted &y the )i'il
ma*istrate, are held in 'eneration &y almost all the inha&itants
of e1tensi'e 0in*doms and em+ires, and (ho therefore see nothin*
round them &ut follo(ers, dis)i+les, and hum&le admirers- The
tea)hers of ea)h little se)t, findin* themsel'es almost alone,
(ould &e o&li*ed to res+e)t those of almost e'ery other se)t, and
the )on)essions (hi)h they (ould mutually find it &oth )on'enient
and a*reea&le to ma0e to one another, mi*ht in time +ro&a&ly
redu)e the do)trine of the *reater +art of them to that +ure and
rational reli*ion, free from e'ery mi1ture of a&surdity,
im+osture, or fanati)ism, su)h as (ise men ha'e in all a*es of
the (orld (ished to see esta&lished/ &ut su)h as +ositi'e la( has
+erha+s ne'er yet esta&lished, and +ro&a&ly ne'er (ill esta&lish,
in any )ountry3 &e)ause, (ith re*ard to reli*ion, +ositi'e la(
al(ays has &een, and +ro&a&ly al(ays (ill &e, more or less
influen)ed &y +o+ular su+erstition and enthusiasm- This +lan of
e))lesiasti)al *o'ernment, or more +ro+erly of no e))lesiasti)al
*o'ernment, (as (hat the se)t )alled Inde+endents, a se)t no
dou&t of 'ery (ild enthusiasts, +ro+osed to esta&lish in $n*land
to(ards the end of the )i'il (ar- If it had &een esta&lished,
thou*h of a 'ery un+hiloso+hi)al ori*in, it (ould +ro&a&ly &y
this time ha'e &een +rodu)ti'e of the most +hiloso+hi)al *ood
tem+er and moderation (ith re*ard to e'ery sort of reli*ious
+rin)i+le- It has &een esta&lished in ennsyl'ania, (here, thou*h
the Jua0ers ha++en to &e the most numerous, the la( in reality
fa'ours no one se)t more than another, and it is there said to
ha'e &een +rodu)ti'e of this +hiloso+hi)al *ood tem+er and
moderation-
.ut thou*h this equality of treatment should not &e
+rodu)ti'e of this *ood tem+er and moderation in all, or e'en in
the *reater +art of the reli*ious se)ts of a +arti)ular )ountry,
yet +ro'ided those se)ts (ere suffi)iently numerous, and ea)h of
them )onsequently too small to distur& the +u&li) tranquillity,
the e1)essi'e ;eal of ea)h for its +arti)ular tenets )ould not
(ell &e +rodu)ti'e of any 'ery harmful effe)ts, &ut, on the
)ontrary, of se'eral *ood ones3 and if the *o'ernment (as
+erfe)tly de)ided &oth to let them all alone, and to o&li*e them
all to let alone one another, there is little dan*er that they
(ould not of their o(n a))ord su&di'ide themsel'es fast enou*h so
as soon to &e)ome suffi)iently numerous-
In e'ery )i'ilised so)iety, in e'ery so)iety (here the
distin)tion of ran0s has on)e &een )om+letely esta&lished, there
ha'e &een al(ays t(o different s)hemes or systems of morality
)urrent at the same time/ of (hi)h the one may &e )alled the
stri)t or austere/ the other the li&eral, or, if you (ill, the
loose system- The former is *enerally admired and re'ered &y the
)ommon +eo+le3 the latter is )ommonly more esteemed and ado+ted
&y (hat are )alled +eo+le of fashion- The de*ree of
disa++ro&ation (ith (hi)h (e ou*ht to mar0 the 'i)es of le'ity,
the 'i)es (hi)h are a+t to arise from *reat +ros+erity, and from
the e1)ess of *aiety and *ood humour, seems to )onstitute the
+rin)i+al distin)tion &et(een those t(o o++osite s)hemes or
systems- In the li&eral or loose system, lu1ury, (anton and e'en
disorderly mirth, the +ursuit of +leasure to some de*ree of
intem+eran)e, the &rea)h of )hastity, at least in one of the t(o
se1es, et)-, +ro'ided they are not a))om+anied (ith *ross
inde)en)y, and do not lead to falsehood or in2usti)e, are
*enerally treated (ith a *ood deal of indul*en)e, and are easily
either e1)used or +ardoned alto*ether- In the austere system, on
the )ontrary, those e1)esses are re*arded (ith the utmost
a&horren)e and detestation- The 'i)es of le'ity are al(ays
ruinous to the )ommon +eo+le, and a sin*le (ee0=s thou*htlessness
and dissi+ation is often suffi)ient to undo a +oor (or0man for
e'er, and to dri'e him throu*h des+air u+on )ommittin* the most
enormous )rimes- The (iser and &etter sort of the )ommon +eo+le,
therefore, ha'e al(ays the utmost a&horren)e and detestation of
su)h e1)esses, (hi)h their e1+erien)e tells them are so
immediately fatal to +eo+le of their )ondition- The disorder and
e1tra'a*an)e of se'eral years, on the )ontrary, (ill not al(ays
ruin a man of fashion, and +eo+le of that ran0 are 'ery a+t to
)onsider the +o(er of indul*in* in some de*ree of e1)ess as one
of the ad'anta*es of their fortune, and the li&erty of doin* so
(ithout )ensure or re+roa)h as one of the +ri'ile*es (hi)h &elon*
to their station- In +eo+le of their o(n station, therefore, they
re*ard su)h e1)esses (ith &ut a small de*ree of disa++ro&ation,
and )ensure them either 'ery sli*htly or not at all-
Almost all reli*ious se)ts ha'e &e*un amon* the )ommon
+eo+le, from (hom they ha'e *enerally dra(n their earliest as
(ell as their most numerous +roselytes- The austere system of
morality has, a))ordin*ly, &een ado+ted &y those se)ts almost
)onstantly, or (ith 'ery fe( e1)e+tions/ for there ha'e &een
some- It (as the system &y (hi)h they )ould &est re)ommend
themsel'es to that order of +eo+le to (hom they first +ro+osed
their +lan of reformation u+on (hat had &een &efore esta&lished-
4any of them, +erha+s the *reater +art of them, ha'e e'en
endea'oured to *ain )redit &y refinin* u+on this austere system,
and &y )arryin* it to some de*ree of folly and e1tra'a*an)e/ and
this e1)essi'e ri*our has frequently re)ommended them more than
anythin* else to the res+e)t and 'eneration of the )ommon +eo+le-
A man of ran0 and fortune is &y his station the
distin*uished mem&er of a *reat so)iety, (ho attend to e'ery +art
of his )ondu)t, and (ho there&y o&li*e him to attend to e'ery
+art of it himself- #is authority and )onsideration de+end 'ery
mu)h u+on the res+e)t (hi)h this so)iety &ears to him- #e dare
not do anythin* (hi)h (ould dis*ra)e or dis)redit him in it, and
he is o&li*ed to a 'ery stri)t o&ser'ation of that s+e)ies of
morals, (hether li&eral or austere, (hi)h the *eneral )onsent of
this so)iety +res)ri&es to +ersons of his ran0 and fortune- A man
of lo( )ondition, on the )ontrary, is far from &ein* a
distin*uished mem&er of any *reat so)iety- While he remains in a
)ountry 'illa*e his )ondu)t may &e attended to, and he may &e
o&li*ed to attend to it himself- In this situation, and in this
situation only, he may ha'e (hat is )alled a )hara)ter to lose-
.ut as soon as he )omes into a *reat )ity he is sun0 in o&s)urity
and dar0ness- #is )ondu)t is o&ser'ed and attended to &y no&ody,
and he is therefore 'ery li0ely to ne*le)t it himself, and to
a&andon himself to e'ery sort of lo( +rofli*a)y and 'i)e- #e
ne'er emer*es so effe)tually from this o&s)urity, his )ondu)t
ne'er e1)ites so mu)h the attention of any res+e)ta&le so)iety,
as &y his &e)omin* the mem&er of a small reli*ious se)t- #e from
that moment a)quires a de*ree of )onsideration (hi)h he ne'er had
&efore- All his &rother se)taries are, for the )redit of the
se)t, interested to o&ser'e his )ondu)t, and if he *i'es o))asion
to any s)andal, if he de'iates 'ery mu)h from those austere
morals (hi)h they almost al(ays require of one another, to +unish
him &y (hat is al(ays a 'ery se'ere +unishment, e'en (here no
)i'il effe)ts attend it, e1+ulsion or e1)ommuni)ation from the
se)t- In little reli*ious se)ts, a))ordin*ly, the morals of the
)ommon +eo+le ha'e &een almost al(ays remar0a&ly re*ular and
orderly/ *enerally mu)h more so than in the esta&lished )hur)h-
The morals of those little se)ts, indeed, ha'e frequently &een
rather disa*reea&ly ri*orous and unso)ial-
There are t(o 'ery easy and effe)tual remedies, ho(e'er, &y
(hose 2oint o+eration the state mi*ht, (ithout 'iolen)e, )orre)t
(hate'er (as unso)ial or disa*reea&ly ri*orous in the morals of
all the little se)ts into (hi)h the )ountry (as di'ided-
The first of those remedies is the study of s)ien)e and
+hiloso+hy, (hi)h the state mi*ht render almost uni'ersal amon*
all +eo+le of middlin* or more than middlin* ran0 and fortune/
not &y *i'in* salaries to tea)hers in order to ma0e them
ne*li*ent and idle, &ut &y institutin* some sort of +ro&ation,
e'en in the hi*her and more diffi)ult s)ien)es, to &e under*one
&y e'ery +erson &efore he (as +ermitted to e1er)ise any li&eral
+rofession, or &efore he )ould &e re)ei'ed as a )andidate for any
honoura&le offi)e of trust or +rofit- If the state im+osed u+on
this order of men the ne)essity of learnin*, it (ould ha'e no
o))asion to *i'e itself any trou&le a&out +ro'idin* them (ith
+ro+er tea)hers- They (ould soon find &etter tea)hers for
themsel'es than any (hom the state )ould +ro'ide for them-
S)ien)e is the *reat antidote to the +oison of enthusiasm and
su+erstition/ and (here all the su+erior ran0s of +eo+le (ere
se)ured from it, the inferior ran0s )ould not &e mu)h e1+osed to
it-
The se)ond of those remedies is the frequen)y and *aiety of
+u&li) di'ersions- The state, &y en)oura*in*, that is &y *i'in*
entire li&erty to all those (ho for their o(n interest (ould
attem+t (ithout s)andal or inde)en)y, to amuse and di'ert the
+eo+le &y +aintin*, +oetry, musi), dan)in*/ &y all sorts of
dramati) re+resentations and e1hi&itions, (ould easily dissi+ate,
in the *reater +art of them, that melan)holy and *loomy humour
(hi)h is almost al(ays the nurse of +o+ular su+erstition and
enthusiasm- u&li) di'ersions ha'e al(ays &een the o&2e)ts of
dread and hatred to all the fanati)al +romoters of those +o+ular
fren;ies- The *aiety and *ood humour (hi)h those di'ersions
ins+ire (ere alto*ether in)onsistent (ith that tem+er of mind
(hi)h (as fittest for their +ur+ose, or (hi)h they )ould &est
(or0 u+on- Dramati) re+resentations, &esides, frequently e1+osin*
their artifi)es to +u&li) ridi)ule, and sometimes e'en to +u&li)
e1e)ration, (ere u+on that a))ount, more than all other
di'ersions, the o&2e)ts of their +e)uliar a&horren)e-
In a )ountry (here the la( fa'oured the tea)hers of no one
reli*ion more than those of another, it (ould not &e ne)essary
that any of them should ha'e any +arti)ular or immediate
de+enden)y u+on the so'erei*n or e1e)uti'e +o(er/ or that he
should ha'e anythin* to do either in a++ointin* or in dismissin*
them from their offi)es- In su)h a situation he (ould ha'e no
o))asion to *i'e himself any )on)ern a&out them, further than to
0ee+ the +ea)e amon* them in the same manner as amon* the rest of
his su&2e)ts/ that is, to hinder them from +erse)utin*, a&usin*,
or o++ressin* one another- .ut it is quite other(ise in )ountries
(here there is an esta&lished or *o'ernin* reli*ion- The
so'erei*n )an in this )ase ne'er &e se)ure unless he has the
means of influen)in* in a )onsidera&le de*ree the *reater +art of
the tea)hers of that reli*ion-
The )ler*y of e'ery esta&lished )hur)h )onstitute a *reat
in)or+oration- They )an a)t in )on)ert, and +ursue their interest
u+on one +lan and (ith one s+irit, as mu)h as if they (ere under
the dire)tion of one man/ and they are frequently, too, under
su)h dire)tion- Their interest as an in)or+orated &ody is ne'er
the same (ith that of the so'erei*n, and is sometimes dire)tly
o++osite to it- Their *reat interest is to maintain their
authority (ith the +eo+le/ and this authority de+ends u+on the
su++osed )ertainty and im+ortan)e of the (hole do)trine (hi)h
they in)ul)ate, and u+on the su++osed ne)essity of ado+tin* e'ery
+art of it (ith the most im+li)it faith, in order to a'oid
eternal misery- Should the so'erei*n ha'e the im+ruden)e to
a++ear either to deride or dou&t himself of the most triflin*
+art of their do)trine, or from humanity attem+t to +rote)t those
(ho did either the one or the other, the +un)tilious honour of a
)ler*y (ho ha'e no sort of de+enden)y u+on him is immediately
+ro'o0ed to +ros)ri&e him as a +rofane +erson, and to em+loy all
the terrors of reli*ion in order to o&li*e the +eo+le to transfer
their alle*ian)e to some more orthodo1 and o&edient +rin)e-
Should he o++ose any of their +retensions or usur+ations, the
dan*er is equally *reat- The +rin)es (ho ha'e dared in this
manner to re&el a*ainst the )hur)h, o'er and a&o'e this )rime of
re&ellion ha'e *enerally &een )har*ed, too, (ith the additional
)rime of heresy, not(ithstandin* their solemn +rotestations of
their faith and hum&le su&mission to e'ery tenet (hi)h she
thou*ht +ro+er to +res)ri&e to them- .ut the authority of
reli*ion is su+erior to e'ery other authority- The fears (hi)h it
su**ests )onquer all other fears- When the authori;ed tea)hers of
reli*ion +ro+a*ate throu*h the *reat &ody of the +eo+le do)trines
su&'ersi'e of the authority of the so'erei*n, it is &y 'iolen)e
only, or &y the for)e of a standin* army, that he )an maintain
his authority- $'en a standin* army )annot in this )ase *i'e him
any lastin* se)urity/ &e)ause if the soldiers are not forei*ners,
(hi)h )an seldom &e the )ase, &ut dra(n from the *reat &ody of
the +eo+le, (hi)h must almost al(ays &e the )ase, they are li0ely
to &e soon )orru+ted &y those 'ery do)trines- The re'olutions
(hi)h the tur&ulen)e of the 6ree0 )ler*y (as )ontinually
o))asionin* at Constantino+le, as lon* as the eastern em+ire
su&sisted/ the )on'ulsions (hi)h, durin* the )ourse of se'eral
)enturies, the tur&ulen)e of the Roman )ler*y (as )ontinually
o))asionin* in e'ery +art of $uro+e, suffi)iently demonstrate ho(
+re)arious and inse)ure must al(ays &e the situation of the
so'erei*n (ho has no +ro+er means of influen)in* the )ler*y of
the esta&lished and *o'ernin* reli*ion of his )ountry-
Arti)les of faith, as (ell as all other s+iritual matters,
it is e'ident enou*h, are not (ithin the +ro+er de+artment of a
tem+oral so'erei*n, (ho, thou*h he may &e 'ery (ell qualified for
+rote)tin*, is seldom su++osed to &e so for instru)tin* the
+eo+le- With re*ard to su)h matters, therefore, his authority )an
seldom &e suffi)ient to )ounter&alan)e the united authority of
the )ler*y of the esta&lished )hur)h- The +u&li) tranquillity,
ho(e'er, and his o(n se)urity, may frequently de+end u+on the
do)trines (hi)h they may thin0 +ro+er to +ro+a*ate )on)ernin*
su)h matters- As he )an seldom dire)tly o++ose their de)ision,
therefore, (ith +ro+er (ei*ht and authority, it is ne)essary that
he should &e a&le to influen)e it/ and &e )an influen)e it only
&y the fears and e1+e)tations (hi)h he may e1)ite in the *reater
+art of the indi'iduals of the order- Those fears and
e1+e)tations may )onsist in the fear of de+ri'ation or other
+unishment, and in the e1+e)tation of further +referment-
In all Christian )hur)hes the &enefi)es of the )ler*y are a
sort of freeholds (hi)h they en2oy, not durin* +leasure, &ut
durin* life or *ood &eha'iour- If they held them &y a more
+re)arious tenure, and (ere lia&le to &e turned out u+on e'ery
sli*ht diso&li*ation either of the so'erei*n or of his ministers,
it (ould +erha+s &e im+ossi&le for them to maintain their
authority (ith the +eo+le, (ho (ould then )onsider them as
mer)enary de+endents u+on the )ourt, in the se)urity of (hose
instru)tions they )ould no lon*er ha'e any )onfiden)e- .ut should
the so'erei*n attem+t irre*ularly, and &y 'iolen)e, to de+ri'e
any num&er of )ler*ymen of their freeholds, on a))ount, +erha+s,
of their ha'in* +ro+a*ated, (ith more than ordinary ;eal, some
fa)tious or seditious do)trine, he (ould only render, &y su)h
+erse)ution, &oth them and their do)trine ten times more +o+ular,
and therefore ten times more trou&lesome and dan*erous, than they
had &een &efore- "ear is in almost all )ases a (ret)hed
instrument of *o'ernment, and ou*ht in +arti)ular ne'er to &e
em+loyed a*ainst any order of men (ho ha'e the smallest
+retensions to inde+enden)y- To attem+t to terrify them ser'es
only to irritate their &ad humour, and to )onfirm them in an
o++osition (hi)h more *entle usa*e +erha+s mi*ht easily indu)e
them either to soften or to lay aside alto*ether- The 'iolen)e
(hi)h the "ren)h *o'ernment usually em+loyed in order to o&li*e
all their +arliaments, or so'erei*n )ourts of 2usti)e, to
enre*ister any un+o+ular edi)t, 'ery seldom su))eeded- The means
)ommonly em+loyed, ho(e'er, the im+risonment of all the
refra)tory mem&ers, one (ould thin0 (ere for)i&le enou*h- The
+rin)es of the house of Ste(art sometimes em+loyed the li0e means
in order to influen)e some of the mem&ers of the arliament of
$n*land/ and they *enerally found them equally intra)ta&le- The
arliament of $n*land is no( mana*ed in another manner/ and a
'ery small e1+eriment (hi)h the Du0e of Choiseul made a&out
t(el'e years a*o u+on the arliament of aris, demonstrated
suffi)iently that all the +arliaments of "ran)e mi*ht ha'e &een
mana*ed still more easily in the same manner- That e1+eriment (as
not +ursued- "or thou*h mana*ement and +ersuasion are al(ays the
easiest and the safest instruments of *o'ernments, as for)e and
'iolen)e are the (orst and the most dan*erous, yet su)h, it
seems, is the natural insolen)e of man that he almost al(ays
disdains to use the *ood instrument, e1)e+t (hen he )annot or
dare not use the &ad one- The "ren)h *o'ernment )ould and durst
use for)e, and therefore disdained to use mana*ement and
+ersuasion- .ut there is no order of men, it a++ears, I &elie'e,
from the e1+erien)e of all a*es, u+on (hom it is so dan*erous, or
rather so +erfe)tly ruinous, to em+loy for)e and 'iolen)e, as
u+on the res+e)ted )ler*y of any esta&lished )hur)h- The ri*hts,
the +ri'ile*es, the +ersonal li&erty of e'ery indi'idual
e))lesiasti) (ho is u+on *ood terms (ith his o(n order are, e'en
in the most des+oti) *o'ernments, more res+e)ted than those of
any other +erson of nearly equal ran0 and fortune- It is so in
e'ery *radation of des+otism, from that of the *entle and mild
*o'ernment of aris to that of the 'iolent and furious *o'ernment
of Constantino+le- .ut thou*h this order of men )an s)ar)e e'er
&e for)ed, they may &e mana*ed as easily as any other/ and the
se)urity of the so'erei*n, as (ell as the +u&li) tranquillity,
seems to de+end 'ery mu)h u+on the means (hi)h he has of mana*in*
them/ and those means seem to )onsist alto*ether in the
+referment (hi)h he has to &esto( u+on them-
In the an)ient )onstitution of the Christian )hur)h, the
&isho+ of ea)h dio)ese (as ele)ted &y the 2oint 'otes of the
)ler*y and of the +eo+le of the e+is)o+al )ity- The +eo+le did
not lon* retain their ri*ht of ele)tion/ and (hile they did
retain it, they almost al(ays a)ted under the influen)e of the
)ler*y, (ho in su)h s+iritual matters a++eared to &e their
natural *uides- The )ler*y, ho(e'er, soon *re( (eary of the
trou&le of mana*in* them, and found it easier to ele)t their o(n
&isho+s themsel'es- The a&&ot, in the same manner, (as ele)ted &y
the mon0s of the monastery, at least in the *reater +art of the
a&&a)ies- All the inferior e))lesiasti)al &enefi)es )om+rehended
(ithin the dio)ese (ere )ollated &y the &isho+, (ho &esto(ed them
u+on su)h e))lesiasti)s as he thou*ht +ro+er- All )hur)h
+referments (ere in this manner in the dis+osal of the )hur)h-
The so'erei*n, thou*h he mi*ht ha'e some indire)t influen)e in
those ele)tions, and thou*h it (as sometimes usual to as0 &oth
his )onsent to ele)t and his a++ro&ation of the ele)tion, yet had
no dire)t or suffi)ient means of mana*in* the )ler*y- The
am&ition of e'ery )ler*yman naturally led him to +ay )ourt not so
mu)h to his so'erei*n as to his o(n order, from (hi)h only he
)ould e1+e)t +referment-
Throu*h the *reater +art of $uro+e the o+e *radually dre(
to himself first the )ollation of almost all &isho+ri)s and
a&&a)ies, or of (hat (ere )alled Consistorial &enefi)es, and
after(ards, &y 'arious ma)hinations and +reten)es, of the *reater
+art of inferior &enefi)es )om+rehended (ithin ea)h dio)ese/
little more &ein* left to the &isho+ than (hat (as &arely
ne)essary to *i'e him a de)ent authority (ith his o(n )ler*y- .y
this arran*ement the )ondition of the so'erei*n (as still (orse
than it had &een &efore- The )ler*y of all the different
)ountries of $uro+e (ere thus formed into a sort of s+iritual
army, dis+ersed in different quarters, indeed, &ut of (hi)h all
the mo'ements and o+erations )ould no( &e dire)ted &y one head,
and )ondu)ted u+on one uniform +lan- The )ler*y of ea)h
+arti)ular )ountry mi*ht &e )onsidered as a +arti)ular deta)hment
of that army, or (hi)h the o+erations )ould easily &e su++orted
and se)onded &y all the other deta)hments quartered in the
different )ountries round a&out- $a)h deta)hment (as not only
inde+endent of the so'erei*n of the )ountry in (hi)h it (as
quartered, and &y (hi)h it (as maintained, &ut de+endent u+on a
forei*n so'erei*n, (ho )ould at any time turn its arms a*ainst
the so'erei*n of that +arti)ular )ountry, and su++ort them &y the
arms of all the other deta)hments-
Those arms (ere the most formida&le that )an (ell &e
ima*ined- In the an)ient state of $uro+e, &efore the
esta&lishment of arts and manufa)tures, the (ealth of the )ler*y
*a'e them the same sort of influen)e o'er the )ommon +eo+le (hi)h
that of the *reat &arons *a'e them o'er their res+e)ti'e 'assals,
tenants, and retainers- In the *reat landed estates (hi)h the
mista0en +iety &oth of +rin)es and +ri'ate +ersons had &esto(ed
u+on the )hur)h, 2urisdi)tions (ere esta&lished of the same 0ind
(ith those of the *reat &arons, and for the same reason- In those
*reat landed estates, the )ler*y, or their &ailiffs, )ould easily
0ee+ the +ea)e (ithout the su++ort or assistan)e either of the
0in* or of any other +erson/ and neither the 0in* nor any other
+erson )ould 0ee+ the +ea)e there (ithout the su++ort and
assistan)e of the )ler*y- The 2urisdi)tions of the )ler*y,
therefore, in their +arti)ular &aronies or manors, (ere equally
inde+endent, and equally e1)lusi'e of the authority of the 0in*=s
)ourts, as those of the *reat tem+oral lords- The tenants of the
)ler*y (ere, li0e those of the *reat &arons, almost all tenants
at (ill, entirely de+endent u+on their immediate lords, and
therefore lia&le to &e )alled out at +leasure in order to fi*ht
in any quarrel in (hi)h the )ler*y mi*ht thin0 +ro+er to en*a*e
them- O'er and a&o'e the rents of those estates, the )ler*y
+ossessed in the tithes, a 'ery lar*e +ortion of the rents of all
the other estates in e'ery 0in*dom of $uro+e- The re'enues
arisin* from &oth those s+e)ies of rents (ere, the *reater +art
of them, +aid in 0ind, in )orn, (ine, )attle +oultry, et)- The
quantity e1)eeded *reatly (hat the )ler*y )ould themsel'es
)onsume/ and there (ere neither arts nor manufa)tures for the
+rodu)e of (hi)h they )ould e1)han*e the sur+lus- The )ler*y
)ould deri'e ad'anta*e from this immense sur+lus in no other (ay
than &y em+loyin* it, as the *reat &arons em+loyed the li0e
sur+lus of their re'enues, in the most +rofuse hos+itality, and
in the most e1tensi'e )harity- .oth the hos+itality and the
)harity of the an)ient )ler*y, a))ordin*ly, are said to ha'e &een
'ery *reat- They not only maintained almost the (hole +oor of
e'ery 0in*dom, &ut many 0ni*hts and *entlemen had frequently no
other means of su&sisten)e than &y tra'ellin* a&out from
monastery to monastery, under +reten)e of de'otion, &ut in
reality to en2oy the hos+itality of the )ler*y- The retainers of
some +arti)ular +relates (ere often as numerous as those of the
*reatest lay8lords/ and the retainers of all the )ler*y ta0en
to*ether (ere, +erha+s, more numerous than those of all the
lay8lords- There (as al(ays mu)h more union amon* the )ler*y than
amon* the lay8lords- The former (ere under a re*ular dis)i+line
and su&ordination to the +a+al authority- The latter (ere under
no re*ular dis)i+line or su&ordination, &ut almost al(ays equally
2ealous of one another, and of the 0in*- Thou*h the tenants and
retainers of the )ler*y, therefore, had &oth to*ether &een less
numerous than those of the *reat lay8lords, and their tenants
(ere +ro&a&ly mu)h less numerous, yet their union (ould ha'e
rendered them more formida&le- The hos+itality and )harity of the
)ler*y, too, not only *a'e them the )ommand of a *reat tem+oral
for)e, &ut in)reased 'ery mu)h the (ei*ht of their s+iritual
(ea+ons- Those 'irtues +ro)ured them the hi*hest res+e)t and
'eneration amon* all the inferior ran0s of +eo+le, of (hom many
(ere )onstantly, and almost all o))asionally, fed &y them-
$'erythin* &elon*in* or related to so +o+ular an order, its
+ossessions, its +ri'ile*es, its do)trines, ne)essarily a++eared
sa)red in the eyes of the )ommon +eo+le, and e'ery 'iolation of
them, (hether real or +retended, the hi*hest a)t of sa)rile*ious
(i)0edness and +rofaneness- In this state of thin*s, if the
so'erei*n frequently found it diffi)ult to resist the )onfedera)y
of a fe( of the *reat no&ility, (e )annot (onder that he should
find it still more so to resist the united for)e of the )ler*y of
his o(n dominions, su++orted &y that of the )ler*y of all the
nei*h&ourin* dominions- In su)h )ir)umstan)es the (onder is, not
that he (as sometimes o&li*ed to yield, &ut that he e'er (as a&le
to resist-
The +ri'ile*e of the )ler*y in those an)ient times 9(hi)h to
us (ho li'e in the +resent times a++ear the most a&surd:, their
total e1em+tion from the se)ular 2urisdi)tion, for e1am+le, or
(hat in $n*land (as )alled the &enefit of the )ler*y, (ere the
natural or rather the ne)essary )onsequen)es of this state of
thin*s- #o( dan*erous must it ha'e &een for the so'erei*n to
attem+t to +unish a )ler*yman for any )rime (hate'er, if his o(n
order (ere dis+osed to +rote)t him, and to re+resent either the
+roof as insuffi)ient for )on'i)tin* so holy a man, or the
+unishment as too se'ere to &e infli)ted u+on one (hose +erson
had &een rendered sa)red &y reli*ion> The so'erei*n )ould, in
su)h )ir)umstan)es, do no &etter than lea'e him to &e tried &y
the e))lesiasti)al )ourts, (ho, for the honour of their o(n
order, (ere interested to restrain, as mu)h as +ossi&le, e'ery
mem&er of it from )ommittin* enormous )rimes, or e'en from *i'in*
o))asion to su)h *ross s)andal as mi*ht dis*ust the minds of the
+eo+le-
In the state in (hi)h thin*s (ere throu*h the *reater +art
of $uro+e durin* the tenth, ele'enth, t(elfth, and thirteenth
)enturies, and for some time &oth &efore and after that +eriod,
the )onstitution of the Chur)h of Rome may &e )onsidered as the
most formida&le )om&ination that e'er (as formed a*ainst the
authority and se)urity of )i'il *o'ernment, as (ell as a*ainst
the li&erty, reason, and ha++iness of man0ind, (hi)h )an flourish
only (here )i'il *o'ernment is a&le to +rote)t them- In that
)onstitution the *rossest delusions of su+erstition (ere
su++orted in su)h a manner &y the +ri'ate interests of so *reat a
num&er of +eo+le as +ut them out of all dan*er from any assault
of human reason3 &e)ause thou*h human reason mi*ht +erha+s ha'e
&een a&le to un'eil, e'en to the eyes of the )ommon +eo+le, some
of the delusions of su+erstition, it )ould ne'er ha'e dissol'ed
the ties of +ri'ate interest- #ad this )onstitution &een atta)0ed
&y no other enemies &ut the fee&le efforts of human reason, it
must ha'e endured for e'er- .ut that immense and (ell8&uilt
fa&ri), (hi)h all the (isdom and 'irtue of man )ould ne'er ha'e
sha0en, mu)h less ha'e o'erturned, (as &y the natural )ourse of
thin*s, first (ea0ened, and after(ards in +art destroyed, and is
no( li0ely, in the )ourse of a fe( )enturies more, +erha+s, to
)rum&le into ruins alto*ether-
The *radual im+ro'ements of arts, manufa)tures, and
)ommer)e, the same )auses (hi)h destroyed the +o(er of the *reat
&arons, destroyed in the same manner, throu*h the *reater +art of
$uro+e, the (hole tem+oral +o(er of the )ler*y- In the +rodu)e of
arts, manufa)tures, and )ommer)e, the )ler*y, li0e the *reat
&arons, found somethin* for (hi)h they )ould e1)han*e their rude
+rodu)e, and there&y dis)o'ered the means of s+endin* their (hole
re'enues u+on their o(n +ersons, (ithout *i'in* any )onsidera&le
share of them to other +eo+le- Their )harity &e)ame *radually
less e1tensi'e, their hos+itality less li&eral or less +rofuse-
Their retainers &e)ame )onsequently less numerous, and &y de*rees
d(indled a(ay alto*ether- The )ler*y too, li0e the *reat &arons,
(ished to *et a &etter rent from their landed estates, in order
to s+end it, in the same manner, u+on the *ratifi)ation of their
o(n +ri'ate 'anity and folly- .ut this in)rease of rent )ould &e
*ot only &y *rantin* leases to their tenants, (ho there&y &e)ame
in a *reat measure inde+endent of them- The ties of interest
(hi)h &ound the inferior ran0s of +eo+le to the )ler*y (ere in
this manner *radually &ro0en and dissol'ed- They (ere e'en &ro0en
and dissol'ed sooner than those (hi)h &ound the same ran0s of
+eo+le to the *reat &arons3 &e)ause the &enefi)es of the )hur)h
&ein*, the *reater +art of them, mu)h smaller than the estates of
the *reat &arons, the +ossessor of ea)h &enefi)e (as mu)h sooner
a&le to s+end the (hole of its re'enue u+on his o(n +erson-
Durin* the *reater +art of the fourteenth and fifteenth )enturies
the +o(er of the *reat &arons (as, throu*h the *reater +art of
$uro+e, in full 'i*our- .ut the tem+oral +o(er of the )ler*y, the
a&solute )ommand (hi)h they had on)e had o'er the *reat &ody of
the +eo+le, (as 'ery mu)h de)ayed- The +o(er of the )hur)h (as &y
that time 'ery nearly redu)ed throu*h the *reater +art of $uro+e
to (hat arose from her s+iritual authority/ and e'en that
s+iritual authority (as mu)h (ea0ened (hen it )eased to &e
su++orted &y the )harity and hos+itality of the )ler*y- The
inferior ran0s of +eo+le no lon*er loo0ed u+on that order, as
they had done &efore, as the )omforters of their distress, and
the relie'ers of their indi*en)e- On the )ontrary, they (ere
+ro'o0ed and dis*usted &y the 'anity, lu1ury, and e1+ense of the
ri)her )ler*y, (ho a++eared to s+end u+on their o(n +leasures
(hat had al(ays &efore &een re*arded as the +atrimony of the
+oor-
In this situation of thin*s, the so'erei*ns in the different
states of $uro+e endea'oured to re)o'er the influen)e (hi)h they
had on)e had in the dis+osal of the *reat &enefi)es of the
)hur)h, &y +ro)urin* to the deans and )ha+ters of ea)h dio)ese
the restoration of their an)ient ri*ht of ele)tin* the &isho+,
and to the mon0s of ea)h a&&a)y that of ele)tin* the a&&ot- The
re8esta&lishin* of this an)ient order (as the o&2e)t of se'eral
statutes ena)ted in $n*land durin* the )ourse of the fourteenth
)entury, +arti)ularly of (hat is )alled the Statute of ro'isors/
and of the ra*mati) San)tion esta&lished in "ran)e in the
fifteenth )entury- In order to render the ele)tion 'alid, it (as
ne)essary that the so'erei*n should &oth )onsent to it
&eforehand, and after(ards a++ro'e of the +erson ele)ted/ and
thou*h the ele)tion (as still su++osed to &e free, he had,
ho(e'er, all the indire)t means (hi)h his situation ne)essarily
afforded him of influen)in* the )ler*y in his o(n dominions-
Other re*ulations of a similar tenden)y (ere esta&lished in other
+arts of $uro+e- .ut the +o(er of the +o+e in the )ollation of
the *reat &enefi)es of the )hur)h seems, &efore the Reformation,
to ha'e &een no(here so effe)tually and so uni'ersally restrained
as in "ran)e and $n*land- The Con)ordat after(ards, in the
si1teenth )entury, *a'e to the 0in*s of "ran)e the a&solute ri*ht
of +resentin* to all the *reat, or (hat are )alled the
)onsistorial, &enefi)es of the 6alli)an Chur)h-
Sin)e the esta&lishment of the ra*mati) San)tion and of the
Con)ordat, the )ler*y of "ran)e ha'e in *eneral sho(n less
res+e)t to the de)rees of the +a+al )ourt than the )ler*y of any
other Catholi) )ountry- In all the dis+utes (hi)h their so'erei*n
has had (ith the +o+e, they ha'e almost )onstantly ta0en +arty
(ith the former- This inde+enden)y of the )ler*y of "ran)e u+on
the )ourt of Rome seems to &e +rin)i+ally founded u+on the
ra*mati) San)tion and the Con)ordat- In the earlier +eriods of
the monar)hy, the )ler*y of "ran)e a++ear to ha'e &een as mu)h
de'oted to the +o+e as those of any other )ountry- When Ro&ert,
the se)ond +rin)e of the Ca+etian ra)e, (as most un2ustly
e1)ommuni)ated &y the )ourt of Rome, his o(n ser'ants, it is
said, thre( the 'i)tuals (hi)h )ame from his ta&le to the do*s,
and refused to taste anythin* themsel'es (hi)h little &een
+olluted &y the )onta)t of a +erson in his situation- They (ere
tau*ht to do so, it may 'ery safely &e +resumed, &y the )ler*y of
his o(n dominions-
The )laim of )ollatin* to the *reat &enefi)es of the )hur)h,
a )laim in defen)e of (hi)h the )ourt of Rome had frequently
sha0en, and sometimes o'erturned the thrones of some of the
*reatest so'erei*ns in Christendom, (as in this manner either
restrained or modified, or *i'en u+ alto*ether, in many different
+arts of $uro+e, e'en &efore the time of the Reformation- As the
)ler*y had no( less influen)e o'er the +eo+le, so the state had
more influen)e o'er the )ler*y- The )ler*y, therefore, had &oth
less +o(er and less in)lination to distur& the state-
The authority of the Chur)h of Rome (as in this state of
de)lension (hen the dis+utes (hi)h *a'e &irth to the Reformation
&e*an in 6ermany, and soon s+read themsel'es throu*h e'ery +art
of $uro+e- The ne( do)trines (ere e'ery(here re)ei'ed (ith a hi*h
de*ree of +o+ular fa'our- They (ere +ro+a*ated (ith all that
enthusiasti) ;eal (hi)h )ommonly animates the s+irit of +arty
(hen it atta)0s esta&lished authority- The tea)hers of those
do)trines, thou*h +erha+s in other res+e)ts not more learned than
many of the di'ines (ho defended the esta&lished )hur)h, seem in
*eneral to ha'e &een &etter a)quainted (ith e))lesiasti)al
history, and (ith the ori*in and +ro*ress of that system of
o+inions u+on (hi)h the authority of the )hur)h (as esta&lished,
and they had there&y some ad'anta*e in almost e'ery dis+ute- The
austerity of their manners *a'e them authority (ith the )ommon
+eo+le, (ho )ontrasted the stri)t re*ularity of their )ondu)t
(ith the disorderly li'es of the *reater +art of their o(n
)ler*y- They +ossessed, too, in a mu)h hi*her de*ree than their
ad'ersaries all the arts of +o+ularity and of *ainin* +roselytes,
arts (hi)h the lofty and di*nified sons of the )hur)h had lon*
ne*le)ted as &ein* to them in a *reat measure useless- The reason
of the ne( do)trines re)ommended them to some, their no'elty to
many/ the hatred and )ontem+t of the esta&lished )ler*y to a
still *reater num&er/ &ut the ;ealous, +assionate, and fanati)al,
thou*h frequently )oarse and rusti), eloquen)e (ith (hi)h they
(ere almost e'ery(here in)ul)ated, re)ommended them to &y far the
*reatest num&er-
The su))ess of the ne( do)trines (as almost e'ery(here so
*reat that the +rin)es (ho at that time ha++ened to &e on &ad
terms (ith the )ourt of Rome (ere &y means of them easily
ena&led, in their o(n dominions, to o'erturn the )hur)h, (hi)h,
ha'in* lost the res+e)t and 'eneration of the inferior ran0s of
+eo+le, )ould ma0e s)ar)e any resistan)e- The )ourt of Rome had
diso&li*ed some of the smaller +rin)es in the northern +arts of
6ermany, (hom it had +ro&a&ly )onsidered as too insi*nifi)ant to
&e (orth the mana*in*- They uni'ersally, therefore, esta&lished
the Reformation in their o(n dominions- The tyranny of Christian
II and of Troll, Ar)h&isho+ of U+sala, ena&led 6usta'us 5asa to
e1+el them &oth from S(eden- The +o+e fa'oured the tyrant and the
ar)h&isho+, and 6usta'us 5asa found no diffi)ulty in esta&lishin*
the Reformation in S(eden- Christian II (as after(ards de+osed
from the throne of Denmar0, (here his )ondu)t had rendered him as
odious as in S(eden- The +o+e, ho(e'er, (as still dis+osed to
fa'our him, and "rederi)0 of #olstein, (ho had mounted the throne
in his stead, re'en*ed himself &y follo(in* the e1am+le of
6usta'us 5asa- The ma*istrates of .erne and Muri)h, (ho had no
+arti)ular quarrel (ith the +o+e, esta&lished (ith *reat ease the
Reformation in their res+e)ti'e )antons, (here 2ust &efore some
of the )ler*y had, &y an im+osture some(hat *rosser than
ordinary, rendered the (hole order &oth odious and )ontem+ti&le-
In this )riti)al situation of its affairs, the +a+al )ourt
(as at suffi)ient +ains to )ulti'ate the friendshi+ of the
+o(erful so'erei*ns of "ran)e and S+ain, of (hom the latter (as
at that time $m+eror of 6ermany- With their assistan)e it (as
ena&led, thou*h not (ithout *reat diffi)ulty and mu)h &loodshed,
either to su++ress alto*ether or to o&stru)t 'ery mu)h the
+ro*ress of the Reformation in their dominions- It (as (ell
enou*h in)lined, too, to &e )om+laisant to the %in* of $n*land-
.ut from the )ir)umstan)es of the times, it )ould not &e so
(ithout *i'in* offen)e to a still *reater so'erei*n, Charles 5,
%in* of S+ain and $m+eror of 6ermany- #enry 5III a))ordin*ly,
thou*h he did not em&ra)e himself the *reater +art of the
do)trines of the Reformation, (as yet ena&led, &y their *eneral
+re'alen)e, to su++ress all the monasteries, and to a&olish the
authority of the Chur)h of Rome in his dominions- That he should
*o so far, thou*h he (ent no further, *a'e some satisfa)tion to
the +atrons of the Reformation, (ho ha'in* *ot +ossession of the
*o'ernment in the rei*n of his son and su))essor, )om+leted
(ithout any diffi)ulty the (or0 (hi)h #enry 5III had &e*un-
In some )ountries, as in S)otland, (here the *o'ernment (as
(ea0, un+o+ular, and not 'ery firmly esta&lished, the Reformation
(as stron* enou*h to o'erturn, not only the )hur)h, &ut the state
li0e(ise for attem+tin* to su++ort the )hur)h-
Amon* the follo(ers of the Reformation dis+ersed in all the
different )ountries of $uro+e, there (as no *eneral tri&unal
(hi)h, li0e that of the )ourt of Rome, or an oe)umeni)al )oun)il,
)ould settle all dis+utes amon* them, and (ith irresisti&le
authority +res)ri&e to all of them the +re)ise limits of
orthodo1y- When the follo(ers of the Reformation in one )ountry,
therefore, ha++ened to differ from their &rethren in another, as
they had no )ommon 2ud*e to a++eal to, the dis+ute )ould ne'er &e
de)ided/ and many su)h dis+utes arose amon* them- Those
)on)ernin* the *o'ernment of the )hur)h, and the ri*ht of
)onferrin* e))lesiasti)al &enefi)es, (ere +erha+s the most
interestin* to the +ea)e and (elfare of )i'il so)iety- They *a'e
&irth a))ordin*ly to the t(o +rin)i+al +arties of se)ts amon* the
follo(ers of the Reformation, the !utheran and Cal'inisti) se)ts,
the only se)ts amon* them of (hi)h the do)trine and dis)i+line
ha'e e'er yet &een esta&lished &y la( in any +art of $uro+e-
The follo(ers of !uther, to*ether (ith (hat is )alled the
Chur)h of $n*land, +reser'ed more or less of the e+is)o+al
*o'ernment, esta&lished su&ordination amon* the )ler*y, *a'e the
so'erei*n the dis+osal of all the &isho+ri)s and other
)onsistorial &enefi)es (ithin his dominions, and there&y rendered
him the real head of the )hur)h/ and (ithout de+ri'in* the &isho+
of the ri*ht of )ollatin* to the smaller &enefi)es (ithin his
dio)ese, they, e'en to those &enefi)es, not only admitted, &ut
fa'oured the ri*ht of +resentation &oth in the so'erei*n and in
all other lay8+atrons- This system of )hur)h *o'ernment (as from
the &e*innin* fa'oura&le to +ea)e and *ood order, and to
su&mission to the )i'il so'erei*n- It has ne'er, a))ordin*ly,
&een the o))asion of any tumult or )i'il )ommotion in any )ountry
in (hi)h it has on)e &een esta&lished- The Chur)h of $n*land in
+arti)ular has al(ays 'alued herself, (ith *reat reason, u+on the
une1)e+tiona&le loyalty of her +rin)i+les- Under su)h a
*o'ernment the )ler*y naturally endea'our to re)ommend themsel'es
to the so'erei*n, to the )ourt, and to the no&ility and *entry of
the )ountry, &y (hose influen)e they )hiefly e1+e)t to o&tain
+referment- They +ay )ourt to those +atrons sometimes, no dou&t,
&y the 'ilest flattery and assentation, &ut frequently, too, &y
)ulti'atin* all those arts (hi)h &est deser'e, and (hi)h are
therefore most li0ely to *ain them the esteem of +eo+le of ran0
and fortune/ &y their 0no(led*e in all the different &ran)hes of
useful and ornamental learnin*, &y the de)ent li&erality of their
manners, &y the so)ial *ood humour of their )on'ersation, and &y
their a'o(ed )ontem+t of those a&surd and hy+o)riti)al
austerities (hi)h fanati)s in)ul)ate and +retend to +ra)tise, in
order to dra( u+on themsel'es the 'eneration, and u+on the
*reater +art of men of ran0 and fortune, (ho a'o( that they do
not +ra)tise them, the a&horren)e of the )ommon +eo+le- Su)h a
)ler*y, ho(e'er, (hile they +ay their )ourt in this manner to the
hi*her ran0s of life, are 'ery a+t to ne*le)t alto*ether the
means of maintainin* their influen)e and authority (ith the
lo(er- They are listened to, esteemed, and res+e)ted &y their
su+eriors/ &ut &efore their inferiors they are frequently
in)a+a&le of defendin*, effe)tually and to the )on'i)tion of su)h
hearers, their o(n so&er and moderate do)trines a*ainst the most
i*norant enthusiast (ho )hooses to atta)0 them-
The follo(ers of M(in*li, or more +ro+erly those of Cal'in,
on the )ontrary, &esto(ed u+on the +eo+le of ea)h +arish,
(hene'er the )hur)h &e)ame 'a)ant, the ri*ht of ele)tin* their
o(n +astor, and esta&lished at the same time the most +erfe)t
equality amon* the )ler*y- The former +art of this institution,
as lon* as it remained in 'i*our, seems to ha'e &een +rodu)ti'e
of nothin* &ut disorder and )onfusion, and to ha'e tended equally
to )orru+t the morals &oth of the )ler*y and of the +eo+le- The
latter +art seems ne'er to ha'e had any effe)ts &ut (hat (ere
+erfe)tly a*reea&le-
As lon* as the +eo+le of ea)h +arish +reser'ed the ri*ht of
ele)tin* their o(n +astors, they a)ted almost al(ays under the
influen)e of the )ler*y, and *enerally of the most fa)tious and
fanati)al of the order- The )ler*y, in order to +reser'e their
influen)e in those +o+ular ele)tions, &e)ame, or affe)ted to
&e)ome, many of them, fanati)s themsel'es, en)oura*ed fanati)ism
amon* the +eo+le, and *a'e the +referen)e almost al(ays to the
most fanati)al )andidate- So small a matter as the a++ointment of
a +arish +riest o))asioned almost al(ays a 'iolent )ontest, not
only in one +arish, &ut in all the nei*h&ourin* +arishes, (ho
seldom failed to ta0e +art in the quarrel- When the +arish
ha++ened to &e situated in a *reat )ity, it di'ided all the
inha&itants into t(o +arties/ and (hen that )ity ha++ened either
to )onstitute itself a little re+u&li), or to &e the head and
)a+ital of a little re+u&li), as is the )ase (ith many of the
)onsidera&le )ities in S(it;erland and #olland, e'ery +altry
dis+ute of this 0ind, o'er and a&o'e e1as+eratin* the animosity
of all their other fa)tions, threatened to lea'e &ehind it &oth a
ne( s)hism in the )hur)h, and a ne( fa)tion in the state- In
those small re+u&li)s, therefore, the ma*istrate 'ery soon found
it ne)essary, for the sa0e of +reser'in* the +u&li) +ea)e, to
assume to himself the ri*ht of +resentin* to all 'a)ant
&enefi)es- In S)otland, the most e1tensi'e )ountry in (hi)h this
res&yterian form of )hur)h *o'ernment has e'er &een esta&lished,
the ri*hts of +atrona*e (ere in effe)t a&olished &y the a)t (hi)h
esta&lished res&ytery in the &e*innin* of the rei*n of William
III- That a)t at least +ut it in the +o(er of )ertain )lasses of
+eo+le in ea)h +arish to +ur)hase, for a 'ery small +ri)e, the
ri*ht of ele)tin* their o(n +astor- The )onstitution (hi)h this
a)t esta&lished (as allo(ed to su&sist for a&out t(o8and8t(enty
years, &ut (as a&olished &y the 1Cth of Jueen Anne, )- 1E, on
a))ount of the )onfusions and disorders (hi)h this more +o+ular
mode of, ele)tion had almost e'ery(here o))asioned- In so
e1tensi'e a )ountry as S)otland, ho(e'er, a tumult in a remote
+arish (as not so li0ely to *i'e distur&an)e to *o'ernment as in
a smaller state- The 1Cth of Jueen Anne restored the ri*hts of
+atrona*e- .ut thou*h in S)otland the la( *i'es the &enefi)e
(ithout any e1)e+tion to the +erson +resented &y the +atron, yet
the )hur)h requires sometimes 9for she has not in this res+e)t
&een 'ery uniform in her de)isions: a )ertain )on)urren)e of the
+eo+le &efore she (ill )onfer u+on the +resentee (hat is )alled
the )ure of souls, or the e))lesiasti)al 2urisdi)tion in the
+arish- She sometimes at least, from an affe)ted )on)ern for the
+ea)e of the +arish, delays the settlement till this )on)urren)e
)an &e +ro)ured- The +ri'ate tam+erin* of some of the
nei*h&ourin* )ler*y, sometimes to +ro)ure, &ut more frequently to
+re'ent, this )on)urren)e, and the +o+ular arts (hi)h they
)ulti'ate in order to ena&le them u+on su)h o))asions to tam+er
more effe)tually, are +erha+s the )auses (hi)h +rin)i+ally 0ee+
u+ (hate'er remains of the old fanati)al s+irit, either in the
)ler*y or in the +eo+le of S)otland-
The equality (hi)h the res&yterian form of )hur)h
*o'ernment esta&lishes amon* the )ler*y, )onsists, first, in the
equality of authority or e))lesiasti)al 2urisdi)tion/ and,
se)ondly, in the equality of &enefi)e- In all res&yterian
)hur)hes the equality of authority is +erfe)t3 that of &enefi)e
is not so- The differen)e, ho(e'er, &et(een one &enefi)e and
another is seldom so )onsidera&le as )ommonly to tem+t the
+ossessor e'en of the small one to +ay )ourt to his +atron &y the
'ile arts of flattery and assentation in order to *et a &etter-
In all the res&yterian )hur)hes, (here the ri*hts of +atrona*e
are thorou*hly esta&lished, it is &y no&ler and &etter arts that
the esta&lished )ler*y in *eneral endea'our to *ain the fa'our of
their su+eriors/ &y their learnin*, &y the irre+roa)ha&le
re*ularity of their life, and &y the faithful and dili*ent
dis)har*e of their duty- Their +atrons e'en frequently )om+lain
of the inde+enden)y of their s+irit, (hi)h they are a+t to
)onstrue into in*ratitude for +ast fa'ours, &ut (hi)h at (orst,
+erha+s, is seldom any more than that indifferen)e (hi)h
naturally arises from the )ons)iousness that no further fa'ours
of the 0ind are e'er to &e e1+e)ted- There is s)ar)e +erha+s to
&e found any(here in $uro+e a more learned, de)ent, inde+endent,
and res+e)ta&le set of men than the *reater +art of the
res&yterian )ler*y of #olland, 6ene'a, S(it;erland, and
S)otland-
Where the )hur)h &enefi)es are all nearly equal, none of
them )an &e 'ery *reat, and this medio)rity of &enefi)e, thou*h
it may no dou&t &e )arried, too far, has, ho(e'er, some 'ery
a*reea&le effe)ts- Nothin* &ut the most e1em+lary morals )an *i'e
di*nity to a man of small fortune- The 'i)es of le'ity and 'anity
ne)essarily render him ridi)ulous, and are, &esides, almost as
ruinous to him as they are to the )ommon +eo+le- In his o(n
)ondu)t, therefore, he is o&li*ed to follo( that system of morals
(hi)h the )ommon +eo+le res+e)t the most- #e *ains their esteem
and affe)tion &y that +lan of life (hi)h his o(n interest and
situation (ould lead him to follo(- The )ommon +eo+le loo0 u+on
him (ith that 0indness (ith (hi)h (e naturally re*ard one (ho
a++roa)hes some(hat to our o(n )ondition, &ut (ho, (e thin0,
ou*ht to &e in a hi*her- Their 0indness naturally +ro'o0es his
0indness- #e &e)omes )areful to instru)t them, and attenti'e to
assist and relie'e them- #e does not e'en des+ise the +re2udi)es
of +eo+le (ho are dis+osed to &e so fa'oura&le to him, and ne'er
treats them (ith those )ontem+tuous and arro*ant airs (hi)h (e so
often meet (ith in the +roud di*nitaries of o+ulent and
(ell8endo(ed )hur)hes- The res&yterian )ler*y, a))ordin*ly, ha'e
more influen)e o'er the minds of the )ommon +eo+le than +erha+s
the )ler*y of any other esta&lished )hur)h- It is a))ordin*ly in
res&yterian )ountries only that (e e'er find the )ommon +eo+le
)on'erted, (ithout +erse)ution, )om+letely, and almost to a man,
to the esta&lished )hur)h-
In )ountries (here )hur)h &enefi)es are the *reater +art of
them 'ery moderate, a )hair in a uni'ersity is *enerally a &etter
esta&lishment than a )hur)h &enefi)e- The uni'ersities ha'e, in
this )ase, the +i)0in* and )hoosin* of their mem&ers from all the
)hur)hmen of the )ountry, (ho, in e'ery )ountry, )onstitute &y
far the most numerous )lass of men of letters- Where )hur)h
&enefi)es, on the )ontrary, are many of them 'ery )onsidera&le,
the )hur)h naturally dra(s from the uni'ersities the *reater +art
of their eminent men of letters, (ho *enerally find some +atron
(ho does himself honour &y +ro)urin* them )hur)h +referment- In
the former situation (e are li0ely to find the uni'ersities
filled (ith the most eminent men of letters that are to &e found
in the )ountry- In the latter (e are li0ely to find fe( eminent
men amon* them, and those fe( amon* the youn*est mem&ers of the
so)iety, (ho are li0ely, too, to &e drained a(ay from it &efore
they )an ha'e a)quired e1+erien)e and 0no(led*e enou*h to &e of
mu)h use to it- It is o&ser'ed &y 4r- de 5oltaire, that "ather
orrie, a Aesuit of no *reat eminen)e in the re+u&li) of letters,
(as the only +rofessor they had e'er had in "ran)e (hose (or0s
(ere (orth the readin*- In a )ountry (hi)h has +rodu)ed so many
eminent men of letters, it must a++ear some(hat sin*ular that
s)ar)e one of them should ha'e &een a +rofessor in a uni'ersity-
The famous 6assendi (as, in the &e*innin* of his life, a
+rofessor in the Uni'ersity of Ai1- U+on the first da(nin* of his
*enius, it (as re+resented to him that &y *oin* into the )hur)h
he )ould easily find a mu)h more quiet and )omforta&le
su&sisten)e, as (ell as a &etter situation for +ursuin* his
studies/ and he immediately follo(ed the ad'i)e- The o&ser'ation
of 4r- de 5oltaire may &e a++lied, I &elie'e, not only to "ran)e,
&ut to all other Roman Catholi) )ountries- We 'ery rarely find,
in any of them, an eminent man of letters (ho is a +rofessor in a
uni'ersity, e1)e+t, +erha+s, in the +rofessions of la( and
+hysi)/ +rofessions from (hi)h the )hur)h is not so li0ely to
dra( them- After the Chur)h of Rome, that of $n*land is &y far
the ri)hest and &est endo(ed )hur)h in Christendom- In $n*land,
a))ordin*ly, the )hur)h is )ontinually drainin* the uni'ersities
of all their &est and a&lest mem&ers/ and an old )olle*e tutor,
(ho is 0no(n and distin*uished in $uro+e as an eminent man of
letters, is as rarely to &e found there as in any Roman Catholi)
)ountry- In 6ene'a, on the )ontrary, in the rotestant )antons of
S(it;erland, in the rotestant )ountries of 6ermany, in #olland,
in S)otland, in S(eden, and Denmar0, the most eminent men of
letters (hom those )ountries ha'e +rodu)ed, ha'e, not all indeed,
&ut the far *reater +art of them, &een +rofessors in
uni'ersities- In those )ountries the uni'ersities are )ontinually
drainin* the )hur)h of all its most eminent men of letters-
It may, +erha+s, &e (orth (hile to remar0 that, if (e e1+e)t
the +oets, a fe( orators, and a fe( historians, the far *reater
+art of the other eminent men of letters, &oth of 6ree)e and
Rome, a++ear to ha'e &een either +u&li) or +ri'ate tea)hers/
*enerally either of +hiloso+hy or of rhetori)- This remar0 (ill
&e found to hold true from the days of !ysias and Iso)rates, of
lato and Aristotle, do(n to those of lutar)h and $+i)tetus, of
Suetonius and Juintilian- To im+ose u+on any man the ne)essity of
tea)hin*, year after year, any +arti)ular &ran)h of s)ien)e,
seems, in reality, to &e the most effe)tual method for renderin*
him )om+letely master of it himself- .y &ein* o&li*ed to *o e'ery
year o'er the same *round, if he is *ood for anythin*, he
ne)essarily &e)omes, in a fe( years, (ell a)quainted (ith e'ery
+art of it3 and if u+on any +arti)ular +oint he should form too
hasty an o+inion one year, (hen he )omes in the )ourse of his
le)tures to re)onsider the same su&2e)t the year thereafter, he
is 'ery li0ely to )orre)t it- As to &e a tea)her of s)ien)e is
)ertainly the natural em+loyment of a mere man of letters, so is
it li0e(ise, +erha+s, the edu)ation (hi)h is most li0ely to
render him a man of solid learnin* and 0no(led*e- The medio)ity
of )hur)h &enefi)es naturally tends to dra( the *reater +art of
men of letters, in the )ountry (here it ta0es +la)e, to the
em+loyment in (hi)h they )an &e the most useful to the +u&li),
and, at the same time, to *i'e them the &est edu)ation, +erha+s,
they are )a+a&le of re)ei'in*- It tends to render their learnin*
&oth as solid as +ossi&le, and as useful as +ossi&le-
The re'enue of e'ery esta&lished )hur)h, su)h +arts of it
e1)e+ted as may arise from +arti)ular lands or manors, is a
&ran)h, it ou*ht to &e o&ser'ed, of the *eneral re'enue of the
state (hi)h is thus di'erted to a +ur+ose 'ery different from the
defen)e of the state- The tithe, for e1am+le, is a real land8ta1,
(hi)h +uts it out of the +o(er of the +ro+rietors of land to
)ontri&ute so lar*ely to(ards the defen)e of the state as they
other(ise mi*ht &e a&le to do- The rent of land, ho(e'er, is,
a))ordin* to some, the sole fund, and, a))ordin* to others, the
+rin)i+al fund, from (hi)h, in all *reat monar)hies, the
e1i*en)ies of the state must &e ultimately su++lied- The more of
this fund that is *i'en to the )hur)h, the less, it is e'ident,
)an &e s+ared to the state- It may &e laid do(n as a )ertain
ma1im that, all other thin*s &ein* su++osed equal, the ri)her the
)hur)h, the +oorer must ne)essarily &e, either the so'erei*n on
the one hand, or the +eo+le on the other/ and, in all )ases, the
less a&le must the state &e to defend itself- In se'eral
rotestant )ountries, +arti)ularly in all the rotestant )antons
of S(it;erland, the re'enue (hi)h an)iently &elon*ed to the Roman
Catholi) Chur)h, the tithes and )hur)h lands, has &een found a
fund suffi)ient, not only to afford )om+etent salaries to the
esta&lished )ler*y, &ut to defray, (ith little or no addition,
all the other e1+enses of the state- The ma*istrates of the
+o(erful )anton of .erne, in +arti)ular, ha'e a))umulated out of
the sa'in*s from this fund a 'ery lar*e sum, su++osed to amount
to se'eral millions, +art of (hi)h is de+osited in a +u&li)
treasure, and +art is +la)ed at interest in (hat are )alled the
+u&li) funds of the different inde&ted nations of $uro+e/ )hiefly
in those of "ran)e and 6reat .ritain- What may &e the amount of
the (hole e1+ense (hi)h the )hur)h, either of .erne, or of any
other rotestant )anton, )osts the state, I do not +retend to
0no(- .y a 'ery e1a)t a))ount it a++ears that, in 17HH, the (hole
re'enue of the )ler*y of the Chur)h of S)otland, in)ludin* their
*le&e or )hur)h lands, and the rent of their manses or
d(ellin*8houses, estimated a))ordin* to a reasona&le 'aluation,
amounted only to !6?,H1G 1s- H 1D1Ed- This 'ery moderate re'enue
affords a de)ent su&sisten)e to nine hundred and forty8four
ministers- The (hole e1+ense of the )hur)h, in)ludin* (hat is
o))asionally laid out for the &uildin* and re+aration of
)hur)hes, and of the manses of ministers, )annot (ell &e su++osed
to e1)eed ei*hty or ei*hty8fi'e thousand +ounds a year- The most
o+ulent )hur)h in Christendom does not maintain &etter the
uniformity of faith, the fer'our of de'otion, the s+irit of
order, re*ularity, and austere morals in the *reat &ody of the
+eo+le, than this 'ery +oorly endo(ed Chur)h of S)otland- All the
*ood effe)ts, &oth )i'il and reli*ious, (hi)h an esta&lished
)hur)h )an &e su++osed to +rodu)e, are +rodu)ed &y it as
)om+letely as &y any other- The *reater +art of the rotestant
)hur)hes of S(it;erland, (hi)h in *eneral are not &etter endo(ed
than the Chur)h of S)otland, +rodu)e those effe)ts in a still
hi*her de*ree- In the *reater +art of the rotestant )antons
there is not a sin*le +erson to &e found (ho does not +rofess
himself to &e of the esta&lished )hur)h- If he +rofesses himself
to &e of any other, indeed, the la( o&li*es him to lea'e the
)anton- .ut so se'ere, or rather indeed so o++ressi'e a la(,
)ould ne'er ha'e &een e1e)uted in su)h free )ountries had not the
dili*en)e of the )ler*y &eforehand )on'erted to the esta&lished
)hur)h the (hole &ody of the +eo+le, (ith the e1)e+tion of,
+erha+s, a fe( indi'iduals only- In some +arts of S(it;erland,
a))ordin*ly, (here, from the a))idental union of a rotestant and
Roman Catholi) )ountry, the )on'ersion has not &een so )om+lete,
&oth reli*ions are not only tolerated &ut esta&lished &y la(-
The +ro+er +erforman)e of e'ery ser'i)e seems to require
that its +ay or re)om+ense should &e, as e1a)tly as +ossi&le,
+ro+ortioned to the nature of the ser'i)e- If any ser'i)e is 'ery
mu)h under+aid, it is 'ery a+t to suffer &y the meanness and
in)a+a)ity of the *reater +art of those (ho are em+loyed in it-
If it is 'ery mu)h o'er+aid, it is a+t to suffer, +erha+s, still
more &y their ne*li*en)e and idleness- A man of a lar*e re'enue,
(hate'er may &e his +rofession, thin0s he ou*ht to li'e li0e
other men of lar*e re'enues, and to s+end a *reat +art of his
time in festi'ity, in 'anity, and in dissi+ation- .ut in a
)ler*yman this train of life not only )onsumes the time (hi)h
ou*ht to &e em+loyed in the duties of his fun)tion, &ut in the
eyes of the )ommon +eo+le destroys almost entirely that san)tity
of )hara)ter (hi)h )an alone ena&le him to +erform those duties
(ith +ro+er (ei*ht and authority-
ART G
Of the $1+ense of Su++ortin* the Di*nity of the So'erei*n
O'er and a&o'e the e1+enses ne)essary for ena&lin* the
so'erei*n to +erform his se'eral duties, a )ertain e1+ense is
requisite for the su++ort of his di*nity- This e1+ense 'aries
&oth (ith the different +eriods of im+ro'ement, and (ith the
different forms of *o'ernment-
In an o+ulent and im+ro'ed so)iety, (here all the different
orders of +eo+le are *ro(in* e'ery day more e1+ensi'e in their
houses, in their furniture, in their ta&les, in their dress, and
in their equi+a*e, it )annot (ell &e e1+e)ted that the so'erei*n
should alone hold out a*ainst the fashion- #e naturally,
therefore, or rather ne)essarily, &e)omes more e1+ensi'e in all
those different arti)les too- #is di*nity e'en seems to require
that he should &e)ome so-
As in +oint of di*nity a monar)h is more raised a&o'e his
su&2e)ts than the )hief ma*istrate of any re+u&li) is e'er
su++osed to &e a&o'e his fello(8)iti;ens, so a *reater e1+ense is
ne)essary for su++ortin* that hi*her di*nity- We naturally e1+e)t
more s+lendour in the )ourt of a 0in* than in the mansion8house
of a do*e or &ur*omaster-
CONC!USION
The e1+ense of defendin* the so)iety, and that of su++ortin*
the di*nity of the )hief ma*istrate, are &oth laid out for the
*eneral &enefit of the (hole so)iety- It is reasona&le,
therefore, that they should &e defrayed &y the *eneral
)ontri&ution of the (hole so)iety, all the different mem&ers
)ontri&utin*, as nearly as +ossi&le, in +ro+ortion to their
res+e)ti'e a&ilities-
The e1+ense of the administration of 2usti)e, too, may, no
dou&t, &e )onsidered as laid out for the &enefit of the (hole
so)iety- There is no im+ro+riety, therefore, in its &ein*
defrayed &y the *eneral )ontri&ution of the (hole so)iety- The
+ersons, ho(e'er, (ho *a'e o))asion to this e1+ense are those
(ho, &y their in2usti)e in one (ay or another, ma0e it ne)essary
to see0 redress or +rote)tion from the )ourts of 2usti)e- The
+ersons a*ain most immediately &enefited &y this e1+ense are
those (hom the )ourts of 2usti)e either restore to their ri*hts
or maintain in their ri*hts- The e1+ense of the administration of
2usti)e, therefore, may 'ery +ro+erly &e defrayed &y the
+arti)ular )ontri&ution of one or other, or &oth, of those t(o
different sets of +ersons, a))ordin* as different o))asions may
require, that is, &y the fees of )ourt- It )annot &e ne)essary to
ha'e re)ourse to the *eneral )ontri&ution of the (hole so)iety,
e1)e+t for the )on'i)tion of those )riminals (ho ha'e not
themsel'es any estate or fund suffi)ient for +ayin* those fees-
Those lo)al or +ro'in)ial e1+enses of (hi)h the &enefit is
lo)al or +ro'in)ial 9(hat is laid out, for e1am+le, u+on the
+oli)e of a +arti)ular to(n or distri)t: ou*ht to &e defrayed &y
a lo)al or +ro'in)ial re'enue, and ou*ht to &e no &urden u+on the
*eneral re'enue of the so)iety- It is un2ust that the (hole
so)iety should )ontri&ute to(ards an e1+ense of (hi)h the &enefit
is )onfined to a +art of the so)iety-
The e1+ense of maintainin* *ood roads and )ommuni)ations is,
no dou&t, &enefi)ial to the (hole so)iety, and may, therefore,
(ithout any in2usti)e- &e defrayed &y the *eneral )ontri&ution of
the (hole so)iety- This e1+ense, ho(e'er, is most immediately and
dire)tly &enefi)ial to those (ho tra'el or )arry *oods from one
+la)e to another, and to those (ho )onsume su)h *oods- The
turn+i0e tolls in $n*land, and the duties )alled +ea*es in other
)ountries, lay it alto*ether u+on those t(o different sets of
+eo+le, and there&y dis)har*e the *eneral re'enue of the so)iety
from a 'ery )onsidera&le &urden-
The e1+ense of the institutions for edu)ation and reli*ious
instru)tion is li0e(ise, no dou&t, &enefi)ial to the (hole
so)iety, and may, therefore, (ithout in2usti)e, &e defrayed &y
the *eneral )ontri&ution of the (hole so)iety- This e1+ense,
ho(e'er, mi*ht +erha+s (ith equal +ro+riety, and e'en (ith some
ad'anta*e, &e defrayed alto*ether &y those (ho re)ei'e the
immediate &enefit of su)h edu)ation and instru)tion, or &y the
'oluntary )ontri&ution of those (ho thin0 they ha'e o))asion for
either the one or the other-
When the institutions or +u&li) (or0s (hi)h are &enefi)ial
to the (hole so)iety either )annot &e maintained alto*ether, or
are not maintained alto*ether &y the )ontri&ution of su)h
+arti)ular mem&ers of the so)iety as are most immediately
&enefited &y them, the defi)ien)y must in most )ases &e made u+
&y the *eneral )ontri&ution of the (hole so)iety- The *eneral
re'enue of the so)iety, o'er and a&o'e defrayin* the e1+ense of
defendin* the so)iety, and of su++ortin* the di*nity of the )hief
ma*istrate, must ma0e u+ for the defi)ien)y of many +arti)ular
&ran)hes of re'enue- The sour)es of this *eneral or +u&li)
re'enue I shall endea'our to e1+lain in the follo(in* )ha+ter-
C#AT$R II Of the Sour)es of the
6eneral or u&li) Re'enue of the So)iety
T#$ re'enue (hi)h must defray, not only the e1+ense of
defendin* the so)iety and of su++ortin* the di*nity of the )hief
ma*istrate, &ut all the other ne)essary e1+enses of *o'ernment
for (hi)h the )onstitution of the state has not +ro'ided any
+arti)ular re'enue, may &e dra(n either, first, from some fund
(hi)h +e)uliarly &elon*s to the so'erei*n or )ommon(ealth, and
(hi)h is inde+endent of the re'enue of the +eo+le/ or, se)ondly,
from the re'enue of the +eo+le-
ART 1
Of the "unds or Sour)es of Re'enue (hi)h may +e)uliarly
&elon* to the So'erei*n or Common(ealth
T#$ funds or sour)es of re'enue (hi)h may +e)uliarly &elon*
to the so'erei*n or )ommon(ealth must )onsist either in sto)0 or
in land-
The so'erei*n, li0e any other o(ner of sto)0, may deri'e a
re'enue from it, either &y em+loyin* it himself, or &y lendin*
it- #is re'enue is in the one )ase +rofit, in the other interest-
The re'enue of a Tartar or Ara&ian )hief )onsists in +rofit-
It arises +rin)i+ally from the mil0 and in)rease of his o(n herds
and flo)0s, of (hi)h he himself su+erintends the mana*ement, and
is the +rin)i+al she+herd or herdsman of his o(n horde or tri&e-
It is, ho(e'er, in this earliest and rudest state of )i'il
*o'ernment only that +rofit has e'er made the +rin)i+al +art of
the +u&li) re'enue of a monar)hial state-
Small re+u&li)s ha'e sometimes deri'ed a )onsidera&le
re'enue from the +rofit of mer)antile +ro2e)ts- The re+u&li) of
#am&ur* is said to do so from the +rofits of a +u&li) (ine )ellar
and a+othe)ary=s sho+- The state )annot &e 'ery *reat of (hi)h
the so'erei*n has leisure to )arry on the trade of a (ine
mer)hant or a+othe)ary- The +rofit of a +u&li) &an0 has &een a
sour)e of re'enue to more )onsidera&le states- It has &een so not
only to #am&ur*, &ut to 5eni)e and Amsterdam- A re'enue of this
0ind has e'en &y some +eo+le &een thou*ht not &elo( the attention
of so *reat an em+ire as that of 6reat .ritain- Re)0onin* the
ordinary di'idend of the .an0 of $n*land at fi'e and a half +er
)ent and its )a+ital at ten millions se'en hundred and ei*hty
thousand +ounds, the net annual +rofit, after +ayin* the e1+ense
of mana*ement, must amount, it is said, to fi'e hundred and
ninety8t(o thousand nine hundred +ounds- 6o'ernment, it is
+retended, )ould &orro( this )a+ital at three +er )ent interest,
and &y ta0in* the mana*ement of the &an0 into its o(n hands,
mi*ht ma0e a )lear +rofit of t(o hundred and si1ty8nine thousand
fi'e hundred +ounds a year- The orderly, 'i*ilant, and
+arsimonious administration of su)h aristo)ra)ies as those of
5eni)e and Amsterdam is e1tremely +ro+er, it a++ears from
e1+erien)e, for the mana*ement of a mer)antile +ro2e)t of this
0ind- .ut (hether su)h a *o'ernment as that of $n*land8 (hi)h,
(hate'er may &e its 'irtues, has ne'er &een famous for *ood
e)onomy/ (hi)h, in time of +ea)e, has *enerally )ondu)ted itself
(ith the slothful and ne*li*ent +rofusion that is +erha+s natural
to monar)hies/ and in time of (ar has )onstantly a)ted (ith all
the thou*htless e1tra'a*an)e that demo)ra)ies are a+t to fall
into8 )ould &e safely trusted (ith the mana*ement of su)h a
+ro2e)t, must at least &e *ood deal more dou&tful-
The +ost offi)e is +ro+erly a mer)antile +ro2e)t- The
*o'ernment ad'an)es the e1+ense of esta&lishin* the different
offi)es, and of &uyin* or hirin* the ne)essary horses or
)arria*es, and is re+aid (ith a lar*e +rofit &y the duties u+on
(hat is )arried- It is +erha+s the only mer)antile +ro2e)t (hi)h
has &een su))essfully mana*ed &y, I &elie'e, e'ery sort of
*o'ernment- The )a+ital to &e ad'an)ed is not 'ery )onsidera&le-
There is no mystery in the &usiness- The returns are not only
)ertain, &ut immediate-
rin)es, ho(e'er, ha'e frequently en*a*ed in many other
mer)antile +ro2e)ts, and ha'e &een (illin*, li0e +ri'ate +ersons,
to mend their fortunes &y &e)omin* ad'enturers in the )ommon
&ran)hes of trade- They ha'e s)ar)e e'er su))eeded- The +rofusion
(ith (hi)h the affairs of +rin)es are al(ays mana*ed renders it
almost im+ossi&le that they should- The a*ents of a +rin)e re*ard
the (ealth of their master as ine1hausti&le/ are )areless at (hat
+ri)e they &uy/ are )areless at (hat +ri)e they sell/ are
)areless at (hat e1+ense they trans+ort his *oods from one +la)e
to another- Those a*ents frequently li'e (ith the +rofusion of
+rin)es, and sometimes too, in s+ite of that +rofusion, and &y a
+ro+er method of ma0in* u+ their a))ounts, a)quire the fortunes
of +rin)es- It (as thus, as (e are told &y 4a)hia'el, that the
a*ents of !oren;o of 4edi)is, not a +rin)e of mean a&ilities,
)arried on his trade- The re+u&li) of "loren)e (as se'eral times
o&li*ed to +ay the de&t into (hi)h their e1tra'a*an)e had
in'ol'ed him- #e found it )on'enient, a))ordin*ly, to *i'e u+ the
&usiness of mer)hant, the &usiness to (hi)h his family had
ori*inally o(ed their fortune, and in the latter +art of his life
to em+loy &oth (hat remained of that fortune, and the re'enue of
the state of (hi)h he had the dis+osal, in +ro2e)ts and e1+enses
more suita&le to his station-
No t(o )hara)ters seem more in)onsistent than those of
trader and so'erei*n- If the tradin* s+irit of the $n*lish $ast
India Com+any renders them 'ery &ad so'erei*ns, the s+irit of
so'erei*nty seems to ha'e rendered them equally &ad traders-
While they (ere traders only they mana*ed their trade
su))essfully, and (ere a&le to +ay from their +rofits a moderate
di'idend to the +ro+rietors of their sto)0- Sin)e they &e)ame
so'erei*ns, (ith a re'enue (hi)h, it is said, (as ori*inally more
than three millions sterlin*, they ha'e &een o&li*ed to &e*
e1traordinary assistan)e of *o'ernment in order to a'oid
immediate &an0ru+t)y- In their former situation, their ser'ants
in India )onsidered themsel'es as the )ler0s of mer)hants3 in
their +resent situation, those ser'ants )onsider themsel'es as
the ministers of so'erei*ns-
A state may sometimes deri'e some +art of its +u&li) re'enue
from the interest of money, as (ell as from the +rofits of sto)0-
If it has amassed a treasure, it may lend a +art of that treasure
either to forei*n states, or to its o(n su&2e)ts-
The )anton of .erne deri'es a )onsidera&le re'enue &y
lendin* a +art of its treasure to forei*n states/ that is, &y
+la)in* it in the +u&li) funds of the different inde&ted nations
of $uro+e, )hiefly in those of "ran)e and $n*land- The se)urity
of this re'enue must de+end, first, u+on the se)urity of the
funds in (hi)h it is +la)ed, or u+on the *ood faith of the
*o'ernment (hi)h has the mana*ement of them/ and, se)ondly, u+on
the )ertainty or +ro&a&ility of the )ontinuan)e of +ea)e (ith the
de&tor nation- In the )ase of a (ar, the 'ery first a)t of
hostility, on the +art of the de&tor nation, mi*ht &e the
forfeiture of the funds of its )reditor- This +oli)y of lendin*
money to forei*n states is, so far as I 0no(, +e)uliar to the
)anton of .erne-
The )ity of #am&ur* has esta&lished a sort of +u&li)
+a(nsho+, (hi)h lends money to the su&2e)ts of the state u+on
+led*es at si1 +er )ent interest- This +a(nsho+ or !om&ard, as it
is )alled, affords a re'enue, it is +retended, to the state of a
hundred and fifty thousand )ro(ns, (hi)h, at four and si1+en)e
the )ro(n, amounts to !BB,7HC sterlin*-
The *o'ernment of ennsyl'ania, (ithout amassin* any
treasure, in'ented a method of lendin*, not money indeed, &ut
(hat is equi'alent to money, to its su&2e)ts- .y ad'an)in* to
+ri'ate +eo+le at interest, and u+on land se)urity to dou&le the
'alue, +a+er &ills of )redit to &e redeemed fifteen years after
their date, and in the meantime made transfera&le from hand to
hand li0e &an0 notes, and de)lared &y a)t of assem&ly to &e a
le*al tender in all +ayments from one inha&itant of the +ro'in)e
to another, it raised a moderate re'enue, (hi)h (ent a
)onsidera&le (ay to(ards defrayin* an annual e1+ense of a&out
!GHCC, the (hole ordinary e1+ense of that fru*al and orderly
*o'ernment- The su))ess of an e1+edient of this 0ind must ha'e
de+ended u+on three different )ir)umstan)es/ first, u+on the
demand for some other instrument of )ommer)e &esides *old and
sil'er money/ or u+on the demand for su)h a quantity of
)onsuma&le sto)0 as )ould not &e had (ithout sendin* a&road the
*reater +art of their *old and sil'er money in order to +ur)hase
it/ se)ondly, u+on the *ood )redit of the *o'ernment (hi)h made
use of this e1+edient/ and, thirdly, u+on the moderation (ith
(hi)h it (as used, the (hole 'alue of the +a+er &ills of )redit
ne'er e1)eedin* that of the *old and sil'er money (hi)h (ould
ha'e &een ne)essary for )arryin* on their )ir)ulation had there
&een no +a+er &ills of )redit- The same e1+edient (as u+on
different o))asions ado+ted &y se'eral other Ameri)an )olonies3
&ut, from (ant of this moderation, it +rodu)ed, in the *reater
+art of them, mu)h more disorder than )on'enien)y-
The unsta&le and +erisha&le nature of sto)0 and )redit,
ho(e'er, render them unfit to &e trusted to as the +rin)i+al
funds of that sure, steady, and +ermanent re'enue (hi)h )an alone
*i'e se)urity and di*nity to *o'ernment- The *o'ernment of no
*reat nation that (as ad'an)ed &eyond the she+herd state seems
e'er to ha'e deri'ed the *reater +art of its +u&li) re'enue from
su)h sour)es-
!and is a fund of a more sta&le and +ermanent nature/ and
the rent of +u&li) lands, a))ordin*ly, has &een the +rin)i+al
sour)e of the +u&li) re'enue of many a *reat nation that (as mu)h
ad'an)ed &eyond the she+herd state- "rom the +rodu)e or rent of
the +u&li) lands, the an)ient re+u&li)s of 6ree)e and Italy
deri'ed, for a lon* time, the *reater +art of that re'enue (hi)h
defrayed the ne)essary e1+enses of the )ommon(ealth- The rent of
the )ro(n lands )onstituted for a lon* time the *reater +art of
the re'enue of the an)ient so'erei*ns of $uro+e-
War and the +re+aration for (ar are the t(o )ir)umstan)es
(hi)h in modern times o))asion the *reater +art of the ne)essary
e1+ense of all *reat states- .ut in the an)ient re+u&li)s of
6ree)e and Italy e'ery )iti;en (as a soldier, (ho &oth ser'ed and
+re+ared himself for ser'i)e at his o(n e1+ense- Neither of those
t(o )ir)umstan)es, therefore, )ould o))asion any 'ery
)onsidera&le e1+ense to the state- The rent of a 'ery moderate
landed estate mi*ht &e fully suffi)ient for defrayin* all the
other ne)essary e1+enses of *o'ernment-
In the an)ient monar)hies of $uro+e, the manners and )ustoms
of the times suffi)iently re+ared the *reat &ody of the +eo+le
for (ar/ and (hen they too0 the field, they (ere, &y the
)ondition of their feudal tenures, to &e maintained either at
their o(n e1+ense, or at that of their immediate lords, (ithout
&rin*in* any ne( )har*e u+on the so'erei*n- The other e1+enses of
*o'ernment (ere, the *reater +art of them, 'ery moderate- The
administration of 2usti)e, it has &een sho(n, instead of &ein* a
)ause of e1+ense, (as a sour)e of re'enue- The la&our of the
)ountry +eo+le, for three days &efore and for three days after
har'est, (as thou*ht a fund suffi)ient for ma0in* and maintainin*
all the &rid*es, hi*h(ays, and other +u&li) (or0s (hi)h the
)ommer)e of the )ountry (as su++osed to require- In those days
the +rin)i+al e1+ense of the so'erei*n seems to ha'e )onsisted in
the maintenan)e of his o(n family and household- The offi)ers of
his household, a))ordin*ly, (ere then the *reat offi)ers of
state- The lord treasurer re)ei'ed his rents- The lord ste(ard
and lord )ham&erlain loo0ed after the e1+ense of his family- The
)are of his sta&les (as )ommitted to the lord )onsta&le and the
lord marshal- #is houses (ere all &uilt in the form of )astles,
and seem to ha'e &een the +rin)i+al fortresses (hi)h he
+ossessed- The 0ee+ers of those houses or )astles mi*ht &e
)onsidered as a sort of military *o'ernors- They seem to ha'e
&een the only military offi)ers (hom it (as ne)essary to maintain
in time of +ea)e- In these )ir)umstan)es the rent of a *reat
landed estate mi*ht, u+on ordinary o))asions, 'ery (ell defray
all the ne)essary e1+enses of *o'ernment-
In the +resent state of the *reater +art of the )i'ilised
monar)hies of $uro+e, the rent of all the lands in the )ountry,
mana*ed as they +ro&a&ly (ould &e if they all &elon*ed to one
+ro+rietor, (ould s)ar)e +erha+s amount to the ordinary re'enue
(hi)h they le'y u+on the +eo+le e'en in +ea)ea&le times- The
ordinary re'enue of 6reat .ritain, for e1am+le, in)ludin* not
only (hat is ne)essary for defrayin* the )urrent e1+ense of the
year, &ut for +ayin* the interest of the +u&li) de&ts, and for
sin0in* a +art of the )a+ital of those de&ts, amounts to u+(ards
of ten millions a year- .ut the land8ta1, at four shillin*s in
the +ound, falls short of t(o millions a year- This land8ta1, as
it is )alled, ho(e'er, is su++osed to &e one8fifth, not only of
the rent of all the land, &ut of that of all the houses, and of
the interest of all the )a+ital sto)0 of 6reat .ritain, that +art
of it only e1)e+ted (hi)h is either let to the +u&li), or
em+loyed as farmin* sto)0 in the )ulti'ation of land- A 'ery
)onsidera&le +art of the +rodu)e of this ta1 arises from the rent
of houses, and the interest of )a+ital sto)0- The land8ta1 of the
)ity of !ondon, for e1am+le, at four shillin*s in the +ound,
amounts to !1EB,BFF 6s- 7d- That of the )ity of Westminster, to
!6B,CFE 1s- Hd- That of the +ala)es of Whitehall and St- Aames=s,
to !BC,7HG 6s- Bd- A )ertain +ro+ortion of the land8ta1 is in the
same manner assessed u+on all the other )ities and to(ns
)or+orate in the 0in*dom, and arises almost alto*ether, either
from the rent of houses, or from (hat is su++osed to &e the
interest of tradin* and )a+ital sto)0- A))ordin* to the
estimation, therefore, &y (hi)h 6reat .ritain is rated to the
land8ta1, the (hole mass of re'enue arisin* from the rent of all
the lands, from that of all the houses, and from the interest of
all the )a+ital sto)0, that +art of it only e1)e+ted (hi)h is
either lent to the +u&li), or em+loyed in the )ulti'ation of
land, does not e1)eed ten millions sterlin* a year, the ordinary
re'enue (hi)h *o'ernment le'ies u+on the +eo+le e'en in +ea)ea&le
times- The estimation &y (hi)h 6reat .ritain is rated to the
land8ta1 is, no dou&t, ta0in* the (hole 0in*dom at an a'era*e,
'ery mu)h &elo( the real 'alue/ thou*h in se'eral +arti)ular
)ounties and distri)ts it is said to &e nearly equal to that
'alue- The rent of the lands alone, e1)lusi'ely of that of
houses, and of the interest of sto)0, has &y many +eo+le &een
estimated at t(enty millions, an estimation made in a *reat
measure at random, and (hi)h, I a++rehend, is as li0ely to &e
a&o'e as &elo( the truth- .ut if the lands of 6reat .ritain, in
the +resent state of their )ulti'ation, do not afford a rent of
more than t(enty millions a year, they )ould not (ell afford the
half, most +ro&a&ly not the fourth +art of that rent, if they all
&elon*ed to a sin*le +ro+rietor, and (ere +ut under the
ne*li*ent, e1+ensi'e, and o++ressi'e mana*ement of his fa)tors
and a*ents- The )ro(n lands of 6reat .ritain do not at +resent
afford the fourth +art of the rent (hi)h )ould +ro&a&ly &e dra(n
from them if they (ere the +ro+erty of +ri'ate +ersons- If the
)ro(n lands (ere more e1tensi'e, it is +ro&a&le they (ould &e
still (orse mana*ed-
The re'enue (hi)h the *reat &ody of the +eo+le deri'es from
land is in +ro+ortion, not to the rent, &ut to the +rodu)e of the
land- The (hole annual +rodu)e of the land of e'ery )ountry, if
(e e1)e+t (hat is reser'ed for seed, is either annually )onsumed
&y the *reat &ody of the +eo+le, or e1)han*ed for somethin* else
that is )onsumed &y them- Whate'er 0ee+s do(n the +rodu)e of the
land &elo( (hat it (ould other(ise rise to 0ee+s do(n the re'enue
of the *reat &ody of the +eo+le still more than it does that of
the +ro+rietors of land- The rent of land, that +ortion of the
+rodu)e (hi)h &elon*s to the +ro+rietors, is s)ar)e any(here in
6reat .ritain su++osed to &e more than a third +art of the (hole
+rodu)e- If the land (hi)h in one state of )ulti'ation affords a
rent of ten millions sterlin* a year (ould in another afford a
rent of t(enty millions, the rent &ein*, in &oth )ases, su++osed
a third +art of the +rodu)e, the re'enue of the +ro+rietors (ould
&e less than it other(ise mi*ht &e &y ten millions a year only/
&ut the re'enue of the *reat &ody of the +eo+le (ould &e less
than it other(ise mi*ht &e &y thirty millions a year, dedu)tin*
only (hat (ould &e ne)essary for seed- The +o+ulation of the
)ountry (ould &e less &y the num&er of +eo+le (hi)h thirty
millions a year, dedu)tin* al(ays the seed, )ould maintain
a))ordin* to the +arti)ular mode of li'in* and e1+ense (hi)h
mi*ht ta0e +la)e in the different ran0s of men amon* (hom the
remainder (as distri&uted-
Thou*h there is not at +resent, in $uro+e, any )i'ilised
state of any 0ind (hi)h deri'es the *reater +art of its +u&li)
re'enue from the rent of lands (hi)h are the +ro+erty of the
state, yet in all the *reat monar)hies of $uro+e there are still
many lar*e tra)ts of land (hi)h &elon* to the )ro(n- They are
*enerally forest/ and sometimes forest (here, after tra'ellin*
se'eral miles, you (ill s)ar)e find a sin*le tree/ a mere (aste
and loss of )ountry in res+e)t &oth of +rodu)e and +o+ulation- In
e'ery *reat monar)hy of $uro+e the sale of the )ro(n lands (ould
+rodu)e a 'ery lar*e sum of money, (hi)h, if a++lied to the
+ayment of the +u&li) de&ts, (ould deli'er from mort*a*e a mu)h
*reater re'enue than any (hi)h those lands ha'e e'er afforded to
the )ro(n- In )ountries (here lands, im+ro'ed and )ulti'ated 'ery
hi*hly, and yieldin* at the time of sale as *reat a rent as )an
easily &e *ot from them, )ommonly sell at thirty years= +ur)hase,
the unim+ro'ed, un)ulti'ated, and lo(8rented )ro(n lands mi*ht
(ell &e e1+e)ted to sell at forty, fifty, or si1ty years=
+ur)hase- The )ro(n mi*ht immediately en2oy the re'enue (hi)h
this *reat +ri)e (ould redeem from mort*a*e- In the )ourse of a
fe( years it (ould +ro&a&ly en2oy another re'enue- When the )ro(n
lands had &e)ome +ri'ate +ro+erty, they (ould, in the )ourse of a
fe( years, &e)ome (ell im+ro'ed and (ell )ulti'ated- The in)rease
of their +rodu)e (ould in)rease the +o+ulation of the )ountry &y
au*mentin* the re'enue and )onsum+tion of the +eo+le- .ut the
re'enue (hi)h the )ro(n deri'es from the duties of )ustoms and
e1)ise (ould ne)essarily in)rease (ith the re'enue and
)onsum+tion of the +eo+le-
The re'enue (hi)h, in any )i'ilised monar)hy, the )ro(n
deri'es from the )ro(n lands, thou*h it a++ears to )ost nothin*
to indi'iduals, in reality )osts more to the so)iety than +erha+s
any other equal re'enue (hi)h the )ro(n en2oys- It (ould, in all
)ases, &e for the interest of the so)iety to re+la)e this re'enue
to the )ro(n &y some other equal re'enue, and to di'ide the lands
amon* the +eo+le, (hi)h )ould not (ell &e done &etter, +erha+s,
than &y e1+osin* them to +u&li) sale-
!ands for the +ur+oses of +leasure and ma*nifi)en)e8 +ar0s,
*ardens, +u&li) (al0s, et)-, +ossessions (hi)h are e'ery(here
)onsidered as )auses of e1+ense, not as sour)es of re'enue8 seem
to &e the only lands (hi)h, in a *reat and )i'ilised monar)hy,
ou*ht to &elon* to the )ro(n-
u&li) sto)0 and +u&li) lands, therefore, the t(o sour)es of
re'enue (hi)h may +e)uliarly &elon* to the so'erei*n or
)ommon(ealth, &ein* &oth im+ro+er and insuffi)ient funds for
defrayin* the ne)essary e1+ense of any *reat and )i'ilised state,
it remains that this e1+ense must, the *reater +art of it, &e
defrayed &y ta1es of one 0ind or another/ the +eo+le )ontri&utin*
a +art of their o(n +ri'ate re'enue in order to ma0e u+ a +u&li)
re'enue to the so'erei*n or )ommon(ealth-
ART E
Of Ta1es
T#$ +ri'ate re'enue of indi'iduals, it has &een sho(n in the
first &oo0 of this Inquiry, arises ultimately from three
different sour)es3 Rent, rofit, and Wa*es- $'ery ta1 must
finally &e +aid from some one or other of those three different
sorts of re'enue, or from all of them indifferently- I shall
endea'our to *i'e the &est a))ount I )an, first, of those ta1es
(hi)h, it is intended, should fall u+on rent/ se)ondly, of those
(hi)h, it is intended, should fall u+on +rofit/ thirdly, of those
(hi)h, it is intended, should fall u+on (a*es/ and, fourthly, of
those (hi)h, it is intended, should fall indifferently u+on all
those three different sour)es of +ri'ate re'enue- The +arti)ular
)onsideration of ea)h of these four different sorts of ta1es (ill
di'ide the se)ond +art of the +resent )ha+ter into four arti)les,
three of (hi)h (ill require se'eral other su&di'isions- 4any of
those ta1es, it (ill a++ear from the follo(in* re'ie(, are not
finally +aid from the fund, or sour)e of re'enue, u+on (hi)h it
(as intended they should fall-
.efore I enter u+on the e1amination of +arti)ular ta1es, it
is ne)essary to +remise the four follo(in* ma1ims (ith re*ard to
ta1es in *eneral-
I- The su&2e)ts of e'ery state ou*ht to )ontri&ute to(ards
the su++ort of the *o'ernment, as nearly as +ossi&le, in
+ro+ortion to their res+e)ti'e a&ilities/ that is, in +ro+ortion
to the re'enue (hi)h they res+e)ti'ely en2oy under the +rote)tion
of the state- The e1+ense of *o'ernment to the indi'iduals of a
*reat nation is li0e the e1+ense of mana*ement to the 2oint
tenants of a *reat estate, (ho are all o&li*ed to )ontri&ute in
+ro+ortion to their res+e)ti'e interests in the estate- In the
o&ser'ation or ne*le)t of this ma1im )onsists (hat is )alled the
equality or inequality of ta1ation- $'ery ta1, it must &e
o&ser'ed on)e for all, (hi)h falls finally u+on one only of the
three sorts of re'enue a&o'e mentioned, is ne)essarily unequal in
so far as it does not affe)t the other t(o- In the follo(in*
e1amination of different ta1es I shall seldom ta0e mu)h further
noti)e of this sort of inequality, &ut shall, in most )ases,
)onfine my o&ser'ations to that inequality (hi)h is o))asioned &y
a +arti)ular ta1 fallin* unequally e'en u+on that +arti)ular sort
of +ri'ate re'enue (hi)h is affe)ted &y it-
II- The ta1 (hi)h ea)h indi'idual is &ound to +ay ou*ht to
&e )ertain, and not ar&itrary- The time of +ayment, the manner of
+ayment, the quantity to &e +aid, ou*ht all to &e )lear and +lain
to the )ontri&utor, and to e'ery other +erson- Where it is
other(ise, e'ery +erson su&2e)t to the ta1 is +ut more or less in
the +o(er of the ta18*athered, (ho )an either a**ra'ate the ta1
u+on any o&no1ious )ontri&utor, or e1tort, &y the terror of su)h
a**ra'ation, some +resent or +erquisite to himself- The
un)ertainty of ta1ation en)oura*es the insolen)e and fa'ours the
)orru+tion of an order of men (ho are naturally un+o+ular, e'en
(here they are neither insolent nor )orru+t- The )ertainty of
(hat ea)h indi'idual ou*ht to +ay is, in ta1ation, a matter of so
*reat im+ortan)e that a 'ery )onsidera&le de*ree of inequality,
it a++ears, I &elie'e, from the e1+erien)e of all nations, is not
near so *reat an e'il as a 'ery small de*ree of un)ertainty-
III- $'ery ta1 ou*ht to &e le'ied at the time, or in the
manner, in (hi)h it is most li0ely to &e )on'enient for the
)ontri&utor to +ay it- A ta1 u+on the rent of land or of houses,
+aya&le at the same term at (hi)h su)h rents are usually +aid, is
le'ied at the time (hen it is most li0ely to &e )on'enient for
the )ontri&utor to +ay/ or, (hen he is most li0ely to ha'e
(here(ithal to +ay- Ta1es u+on su)h )onsuma&le *oods as are
arti)les of lu1ury are all finally +aid &y the )onsumer, and
*enerally in a manner that is 'ery )on'enient for him- #e +ays
them &y little and little, as he has o))asion to &uy the *oods-
As he is at li&erty, too, either to &uy, or not to &uy, as he
+leases, it must &e his o(n fault if he e'er suffers any
)onsidera&le in)on'enien)y from su)h ta1es-
I5- $'ery ta1 ou*ht to &e so )ontri'ed as &oth to ta0e out
and to 0ee+ out of the +o)0ets of the +eo+le as little as
+ossi&le o'er and a&o'e (hat it &rin*s into the +u&li) treasury
of the state- A ta1 may either ta0e out or 0ee+ out of the
+o)0ets of the +eo+le a *reat deal more than it &rin*s into the
+u&li) treasury, in the four follo(in* (ays- "irst, the le'yin*
of it may require a *reat num&er of offi)ers, (hose salaries may
eat u+ the *reater +art of the +rodu)e of the ta1, and (hose
+erquisites may im+ose another additional ta1 u+on the +eo+le-
Se)ondly, it may o&stru)t the industry the +eo+le, and dis)oura*e
them from a++lyin* to )ertain &ran)hes of &usiness (hi)h mi*ht
*i'e maintenan)e and unem+loyment to *reat multitudes- While it
o&li*es the +eo+le to +ay, it may thus diminish, or +erha+s
destroy, some of the funds (hi)h mi*ht ena&le them more easily to
do so- Thirdly, &y the forfeitures and other +enalties (hi)h
those unfortunate indi'iduals in)ur (ho attem+t unsu))essfully to
e'ade the ta1, it may frequently ruin them, and there&y +ut an
end to the &enefit (hi)h the )ommunity mi*ht ha'e re)ei'ed from
the em+loyment of their )a+itals- An in2udi)ious ta1 offers a
*reat tem+tation to smu**lin*- .ut the +enalties of smu**lin*
must rise in +ro+ortion to the tem+tation- The la(, )ontrary to
all the ordinary +rin)i+les of 2usti)e, first )reates the
tem+tation, and then +unishes those (ho yield to it/ and it
)ommonly enhan)es the +unishment, too, in +ro+ortion to the 'ery
)ir)umstan)e (hi)h ou*ht )ertainly to alle'iate it, the
tem+tation to )ommit the )rime- "ourthly, &y su&2e)tin* the
+eo+le to the frequent 'isits and the odious e1amination of the
ta18*atherers, it may e1+ose them to mu)h unne)essary trou&le,
'e1ation, and o++ression/ and thou*h 'e1ation is not, stri)tly
s+ea0in*, e1+ense, it is )ertainly equi'alent to the e1+ense at
(hi)h e'ery man (ould &e (illin* to redeem himself from it- It is
in some one or other of these four different (ays that ta1es are
frequently so mu)h more &urdensome to the +eo+le than they are
&enefi)ial to the so'erei*n-
The e'ident 2usti)e and utility of the fore*oin* ma1ims ha'e
re)ommended them more or less to the attention of all nations-
All nations ha'e endea'oured, to the &est of their 2ud*ment, to
render their ta1es as equal as they )ould )ontri'e/ as )ertain,
as )on'enient to the )ontri&utor, &oth in the time and in the
mode of +ayment, and, in +ro+ortion to the re'enue (hi)h they
&rou*ht to the +rin)e, as little &urdensome to the +eo+le- The
follo(in* short re'ie( of some of the +rin)i+al ta1es (hi)h ha'e
ta0en +la)e in different a*es and )ountries (ill sho( that the
endea'ours of all nations ha'e not in this res+e)t &een equally
su))essful-
ARTIC!$ I
Ta1es u+on Rent- Ta1es u+on the Rent of !and
A ta1 u+on the rent of land may either e'ery distri)t &ein*
'alued at a )ertain rent, &e im+osed a))ordin* to a )ertain
)anon, (hi)h 'aluation is not after(ards to &e altered, or it may
&e im+osed in su)h a manner as to 'ary (ith e'ery 'ariation in
the real rent of the land, and to rise or fall (ith the
im+ro'ement or de)lension of its )ulti'ation-
A land8ta1 (hi)h, li0e that of 6reat .ritain, is assessed
u+on ea)h distri)t a))ordin* to a )ertain in'aria&le )anon,
thou*h it should &e equal at the time of its first esta&lishment,
ne)essarily &e)omes unequal in +ro)ess of time, a))ordin* to the
unequal de*rees of im+ro'ement or ne*le)t in the )ulti'ation of
the different +arts of the )ountry- In $n*land, the 'aluation
a))ordin* to (hi)h the different )ountries and +arishes (ere
assessed to the land8ta1 &y the Gth of William and 4ary (as 'ery
unequal e'en at its first esta&lishment- This ta1, therefore, so
far offends a*ainst the first of the four ma1ims a&o'e mentioned-
It is +erfe)tly a*reea&le to the other three- It is +erfe)tly
)ertain- The time of +ayment for the ta1, &ein* the same as that
for the rent, is as )on'enient as it )an &e to the )ontri&utor
thou*h the landlord is in all )ases the real )ontri&utor, the ta1
is )ommonly ad'an)ed &y the tenant, to (hom the landlord is
o&li*ed to allo( it in the +ayment of the rent- This ta1 is
le'ied &y a mu)h smaller num&er of offi)ers than any other (hi)h
affords nearly the same re'enue- As the ta1 u+on ea)h distri)t
does not rise (ith the rise of the rent, the so'erei*n does not
share in the +rofits of the landlord=s im+ro'ements- Those
im+ro'ements sometimes )ontri&ute, indeed, to the dis)har*e of
the other landlords of the distri)t- .ut the a**ra'ation of the
ta1 (hi)h may sometimes o))asion u+on a +arti)ular estate is
al(ays so 'ery small that it ne'er )an dis)oura*e those
im+ro'ements, nor 0ee+ do(n the +rodu)e of the land &elo( (hat it
(ould other(ise rise to- As it has no tenden)y to diminish the
quantity, it )an ha'e none to raise the +ri)e of that +rodu)e- It
does not o&stru)t the industry of the +eo+le- It su&2e)ts the
landlord to no other in)on'enien)y &esides the una'oida&le one of
+ayin* the ta1-
The ad'anta*e, ho(e'er, (hi)h the landlord has deri'ed from
the in'aria&le )onstan)y of the 'aluation &y (hi)h all the lands
of 6reat .ritain are rated to the land8ta1, has &een +rin)i+ally
o(in* to some )ir)umstan)es alto*ether e1traneous to the nature
of the ta1-
It has &een o(in* in +art to the *reat +ros+erity of almost
e'ery +art of the )ountry, the rents of almost all the estates of
6reat .ritain ha'in*, sin)e the time (hen this 'aluation (as
first esta&lished, &een )ontinually risin*, and s)ar)e any of
them ha'in* fallen- The landlords, therefore, ha'e almost all
*ained the differen)e &et(een the ta1 (hi)h they (ould ha'e +aid
a))ordin* to the +resent rent of their estates, and that (hi)h
they a)tually +ay a))ordin* to the an)ient 'aluation- #ad the
state of the )ountry &een different, had rents &een *radually
fallin* in )onsequen)e of the de)lension of )ulti'ation, the
landlords (ould almost all ha'e lost this differen)e- In the
state of thin*s (hi)h has ha++ened to ta0e +la)e sin)e the
re'olution, the )onstan)y of the 'aluation has &een ad'anta*eous
to the landlord and hurtful to the so'erei*n- In a different
state of thin*s it mi*ht ha'e &een ad'anta*eous to the so'erei*n
and hurtful to the landlord-
As the ta1 is made +aya&le in money, so the 'aluation of the
land is e1+ressed in money- Sin)e the esta&lishment of this
'aluation the 'alue of sil'er has &een +retty uniform, and there
has &een no alteration in the standard of the )oin either as to
(ei*ht or fineness- #ad sil'er risen )onsidera&ly in its 'alue,
as it seems to ha'e done in the )ourse of the t(o )enturies (hi)h
+re)eded the dis)o'ery of the mines of Ameri)a, the )onstan)y of
the 'aluation mi*ht ha'e +ro'ed 'ery o++ressi'e to the landlord-
#ad sil'er fallen )onsidera&ly in its 'alue, as it )ertainly did
for a&out a )entury at least after the dis)o'ery of those mines,
the same )onstan)y of 'aluation (ould ha'e redu)ed 'ery mu)h this
&ran)h of the re'enue of the so'erei*n- #ad any )onsidera&le
alteration &een made in the standard of the money, either &y
sin0in* the same quantity of sil'er to a lo(er denomination, or
&y raisin* it to a hi*her/ had an oun)e of sil'er, for e1am+le,
instead of &ein* )oined into fi'e shillin*s and t(o+en)e, &een
)oined either into +ie)es (hi)h &ore so lo( a denomination as t(o
shillin*s and se'en+en)e, or into +ie)es (hi)h &ore so hi*h a one
as ten shillin*s and four+en)e, it (ould in the one )ase ha'e
hurt the re'enue of the +ro+rietor, in the other that of the
so'erei*n-
In )ir)umstan)es, therefore, some(hat different from those
(hi)h ha'e a)tually ta0en +la)e, this )onstan)y of 'aluation
mi*ht ha'e &een a 'ery *reat in)on'enien)y, either to the
)ontri&utors, or to the )ommon(ealth- In the )ourse of a*es su)h
)ir)umstan)es, ho(e'er, must, at some time or other, ha++en- .ut
thou*h em+ires, li0e all the other (or0s of men, ha'e all
hitherto +ro'ed mortal, yet e'ery em+ire aims at immortality-
$'ery )onstitution, therefore, (hi)h it is meant should &e as
+ermanent as the em+ire itself, ou*ht to &e )on'enient, not in
)ertain )ir)umstan)es only, &ut in all )ir)umstan)es/ or ou*ht to
&e suited, not to those )ir)umstan)es (hi)h are transitory,
o))asional, or a))idental, &ut to those (hi)h are ne)essary and
therefore al(ays the same-
A ta1 u+on the rent of land (hi)h 'aries (ith e'ery
'ariation of the rent, or (hi)h rises and falls a))ordin* to the
im+ro'ement or ne*le)t of )ulti'ation, is re)ommended &y that
se)t of men of letters in "ran)e (ho )all themsel'es The
$)onomists as the most equita&le of all ta1es- All ta1es, they
+retend, fall ultimately u+on the rent of land, and ou*ht
therefore to &e im+osed equally u+on the fund (hi)h must finally
+ay them- That all ta1es ou*ht to fall as equally as +ossi&le
u+on the fund (hi)h must finally +ay them is )ertainly true- .ut
(ithout enterin* into the disa*reea&le dis)ussion of the
meta+hysi)al ar*uments &y (hi)h they su++ort their 'ery in*enious
theory, it (ill suffi)iently a++ear, from the follo(in* re'ie(,
(hat are the ta1es (hi)h fall finally u+on the rent of the land,
and (hat are those (hi)h fall finally u+on some other fund-
In the 5enetian territory all the ara&le lands (hi)h are
*i'en in lease to farmers are ta1ed at a tenth of the rent- The
leases are re)orded in a +u&li) re*ister (hi)h is 0e+t &y the
offi)ers of re'enue in ea)h +ro'in)e or distri)t- When the
+ro+rietor )ulti'ates his o(n lands, they are 'alued a))ordin* to
an equita&le estimation, and he is allo(ed a dedu)tion of
one8fifth of the ta1, so that for su)h lands he +ays only ei*ht
instead of ten +er )ent of the su++osed rent-
A land8ta1 of this 0ind is )ertainly more equal than the
land8ta1 of $n*land- It mi*ht not, +erha+s, &e alto*ether so
)ertain, and the assessment of the ta1 mi*ht frequently o))asion
a *ood deal more trou&le to the landlord- It mi*ht, too, &e a
*ood deal more e1+ensi'e in the le'yin*-
Su)h a system of administration, ho(e'er, mi*ht +erha+s &e
)ontri'ed as (ould, in a *reat measure, &oth +re'ent this
un)ertainty and moderate this e1+ense-
The landlord and tenant, for e1am+le, mi*ht 2ointly &e
o&li*ed to re)ord their lease in a +u&li) re*ister- ro+er
+enalties mi*ht &e ena)ted a*ainst )on)ealin* or misre+resentin*
any of the )onditions/ and if +art of those +enalties (ere to &e
+aid to either of the t(o +arties (ho informed a*ainst and
)on'i)ted the other of su)h )on)ealment or misre+resentation, it
(ould effe)tually deter them from )om&inin* to*ether in order to
defraud the +u&li) re'enue- All the )onditions of the lease mi*ht
&e suffi)iently 0no(n from su)h a re)ord-
Some landlords, instead of raisin* the rent, ta0e a fine for
the rene(al of the lease- This +ra)ti)e is in most )ases the
e1+edient of a s+endthrift, (ho for a sum of ready money sells a
future re'enue of mu)h *reater 'alue- It is in most )ases,
therefore, hurtful to the landlords- It is frequently hurtful to
the tenant, and it is al(ays hurtful to the )ommunity- It
frequently ta0es from the tenant so *reat a +art of his )a+ital,
and there&y diminishes so mu)h his a&ility to )ulti'ate the land,
that he finds it more diffi)ult to +ay a small rent than it (ould
other(ise ha'e &een to +ay a *reat one- Whate'er diminishes his
a&ility to )ulti'ate, ne)essarily 0ee+s do(n, &elo( (hat it (ould
other(ise ha'e &een, the most im+ortant +art of the re'enue of
the )ommunity- .y renderin* the ta1 u+on su)h fines a *ood deal
hea'ier than u+on the ordinary rent, this hurtful +ra)ti)e mi*ht
&e dis)oura*ed, to the no small ad'anta*e of all the different
+arties )on)erned, of the landlord, of the tenant, of the
so'erei*n, and of the (hole )ommunity-
Some leases +res)ri&e to the tenant a )ertain mode of
)ulti'ation and a )ertain su))ession of )ro+s durin* the (hole
)ontinuan)e of the lease- This )ondition, (hi)h is *enerally the
effe)t of the landlord=s )on)eit of his o(n su+erior 0no(led*e 9a
)on)eit in most )ases 'ery ill founded:, ou*ht al(ays to &e
)onsidered as an additional rent/ as a rent in ser'i)e instead of
a rent in money- In order to dis)oura*e the +ra)ti)e, (hi)h is
*enerally a foolish one, this s+e)ies of rent mi*ht &e 'alued
rather hi*h, and )onsequently ta1ed some(hat hi*her than )ommon
money rents-
Some landlords, instead of a rent in money, require a rent
in 0ind, in )orn, )attle, +oultry, (ine, oil, et)-/ others,
a*ain, require a rent in ser'i)e- Su)h rents are al(ays more
hurtful to the tenant than &enefi)ial to the landlord- They
either ta0e more or 0ee+ more out of the +o)0et of the former
than they +ut into that of the latter- In e'ery )ountry (here
they ta0e +la)e the tenants are +oor and &e**arly, +retty mu)h
a))ordin* to the de*ree in (hi)h they ta0e +la)e- .y 'aluin*, in
the same manner, su)h rents rather hi*h, and )onsequently ta1in*
them some(hat hi*her than )ommon money rents, a +ra)ti)e (hi)h is
hurtful to the (hole )ommunity mi*ht +erha+s &e suffi)iently
dis)oura*ed-
When the landlord )hose to o))u+y himself a +art of his o(n
lands, the rent mi*ht &e 'alued a))ordin* to an equita&le
ar&itration of the farmers and landlords in the nei*h&ourhood,
and a moderate a&atement of the ta1 mi*ht &e *ranted to him, in
the same manner as in the 5enetian territory, +ro'ided the rent
of the lands (hi)h he o))u+ied did not e1)eed a )ertain sum- It
is of im+ortan)e that the landlord should &e en)oura*ed to
)ulti'ate a +art of his o(n land- #is )a+ital is *enerally
*reater than that of the tenant, and (ith less s0ill he )an
frequently raise a *reater +rodu)e- The landlord )an afford to
try e1+eriments, and is *enerally dis+osed to do so- #is
unsu))essful e1+eriments o))asion only a moderate loss to
himself- #is su))essful ones )ontri&ute to the im+ro'ement and
&etter )ulti'ation of the (hole )ountry- It mi*ht &e of
im+ortan)e, ho(e'er, that the a&atement of the ta1 should
en)oura*e him to )ulti'ate to a )ertain e1tent only- If the
landlords should, the *reater +art of them, &e tem+ted to farm
the (hole of their o(n lands, the )ountry 9instead of so&er and
industrious tenants, (ho are &ound &y their o(n interest to
)ulti'ate as (ell as their )a+ital and s0ill (ill allo( them:
(ould &e filled (ith idle and +rofli*ate &ailiffs, (hose a&usi'e
mana*ement (ould soon de*rade the )ulti'ation and redu)e the
annual +rodu)e of the land, to the diminution, not only of the
re'enue of their masters, &ut of the most im+ortant +art of that
of the (hole so)iety-
Su)h a system of administration mi*ht, +erha+s, free a ta1
of this 0ind from any de*ree of un)ertainty (hi)h )ould o))asion
either o++ression or in)on'enien)y of the )ontri&utor/ and mi*ht
at the same time ser'e to introdu)e into the )ommon mana*ement of
land su)h a +lan or +oli)y as mi*ht )ontri&ute a *ood deal to the
*eneral im+ro'ement and *ood )ulti'ation of the )ountry-
The e1+ense of le'yin* a land8ta1 (hi)h 'aried (ith e'ery
'ariation of the rent (ould no dou&t &e some(hat *reater than
that of le'yin* one (hi)h (as already rated a))ordin* to a fi1ed
'aluation- Some additional e1+ense (ould ne)essarily &e in)urred
&oth &y the different re*ister offi)es (hi)h it (ould &e +ro+er
to esta&lish in the different distri)ts of the )ountry, and &y
the different 'aluations (hi)h mi*ht o))asionally &e made of the
lands (hi)h the +ro+rietor )hose to o))u+y himself- The e1+ense
of all this, ho(e'er, mi*ht &e 'ery moderate, and mu)h &elo( (hat
is in)urred in the le'yin* of many other ta1es (hi)h afford a
'ery in)onsidera&le re'enue in )om+arison of (hat mi*ht easily &e
dra(n from a ta1 of this 0ind-
The dis)oura*ement (hi)h a 'aria&le land8ta1 of this 0ind
mi*ht *i'e to the im+ro'ement of land seems to &e the most
im+ortant o&2e)tion (hi)h )an &e made to it- The landlord (ould
)ertainly &e less dis+osed to im+ro'e (hen the so'erei*n, (ho
)ontri&uted nothin* to the e1+ense, (as to share in the +rofit of
the im+ro'ement- $'en this o&2e)tion mi*ht +erha+s &e o&'iated &y
allo(in* the landlord, &efore he &e*an his im+ro'ement, to
as)ertain, in )on2un)tion (ith the offi)ers of re'enue, the
a)tual 'alue of his lands a))ordin* to the equita&le ar&itration
of a )ertain num&er of landlords and farmers in the nei*h&orhood,
equally )hosen &y &oth +arties, and &y ratin* him a))ordin* to
this 'aluation for su)h a num&er of years as mi*ht &e fully
suffi)ient for his )om+lete indemnifi)ation- To dra( the
attention of the so'erei*n to(ards the im+ro'ement of the land,
from a re*ard to the in)rease of his o(n re'enue, is one of the
+rin)i+al ad'anta*es +ro+osed &y this s+e)ies of land8ta1- The
term, therefore, allo(ed for the indemnifi)ation of the landlord
ou*ht not to &e a *reat deal lon*er than (hat (as ne)essary for
that +ur+ose, lest the remoteness of the interest should
dis)oura*e too mu)h this attention- It had &etter, ho(e'er, &e
some(hat too lon* than in any res+e)t too short- No in)itement to
the attention of the so'erei*n )an e'er )ounter&alan)e the
smallest dis)oura*ement to that of the landlord- The attention of
the so'erei*n )an &e at &est &ut a 'ery *eneral and 'a*ue
)onsideration of (hat is li0ely to )ontri&ute to the &etter
)ulti'ation of the *reater +art of his dominions- The attention
of the landlord is a +arti)ular and minute )onsideration of (hat
is li0ely to &e the most ad'anta*eous a++li)ation of e'ery in)h
of *round u+on his estate- The +rin)i+al attention of the
so'erei*n ou*ht to &e to en)oura*e, &y e'ery means in his +o(er,
the attention &oth of the landlord and of the farmer, &y allo(in*
&oth to +ursue their o(n interest in their o(n (ay and a))ordin*
to their o(n 2ud*ment/ &y *i'in* to &oth the most +erfe)t
se)urity that they shall en2oy the full re)om+ense of their o(n
industry/ and &y +ro)urin* to &oth the most e1tensi'e mar0et for
e'ery +art of their +rodu)e, in )onsequen)e of esta&lishin* the
easiest and safest )ommuni)ations &oth &y land and &y (ater
throu*h e'ery +art of his o(n dominions as (ell as the most
un&ounded freedom of e1+ortation to the dominions of all other
+rin)es-
If &y su)h a system of administration a ta1 of this 0ind
)ould &e so mana*ed as to *i'e, not only no dis)oura*ement, &ut,
on the )ontrary, some en)oura*ement to the im+ro'ement of land,
it does not a++ear li0ely to o))asion any other in)on'enien)y to
the landlord, e1)e+t al(ays the una'oida&le one of &ein* o&li*ed
to +ay the ta1-
In all the 'ariations of the state of the so)iety, in the
im+ro'ement and in the de)lension of a*ri)ulture/ in all the
'ariations in the 'alue of sil'er, and in all those in the
standard of the )oin, a ta1 of this 0ind (ould, of its o(n a))ord
and (ithout any attention of *o'ernment, readily suit itself to
the a)tual situation of thin*s, and (ould &e equally 2ust and
equita&le in all those different )han*es- It (ould, therefore, &e
mu)h more +ro+er to &e esta&lished as a +er+etual and unaltera&le
re*ulation, or as (hat is )alled a fundamental la( of the
)ommon(ealth, than any ta1 (hi)h (as al(ays to &e le'ied
a))ordin* to a )ertain 'aluation-
Some states, instead of the sim+le and o&'ious e1+edient of
a re*ister of leases, ha'e had re)ourse to the la&orious and
e1+ensi'e one of an a)tual sur'ey and 'aluation of all the lands
in the )ountry- They ha'e sus+e)ted, +ro&a&ly, that the lessor
and lessee, in order to defraud the +u&li) re'enue, mi*ht )om&ine
to )on)eal the real terms of the lease- Domesday8.oo0 seems to
ha'e &een the result of a 'ery a))urate sur'ey of this 0ind-
In the an)ient dominions of the %in* of russia, the
land8ta1 is assessed a))ordin* to an a)tual sur'ey and 'aluation,
(hi)h is re'ie(ed and altered from time to time- A))ordin* to
that 'aluation, the lay +ro+rietors +ay from t(enty to
t(enty8fi'e +er )ent of their re'enue- $))lesiasti)s from forty
to forty8fi'e +er )ent- The sur'ey and 'aluation of Silesia (as
made &y order of the +resent 0in*/ it is said (ith *reat
a))ura)y- A))ordin* to that 'aluation, the lands &elon*in* to the
.isho+ of .resla( are ta1ed at t(enty8fi'e +er )ent of their
rent- The other re'enues of the e))lesiasti)s of &oth reli*ions,
at fifty +er )ent- The )ommanderies of the Teutoni) order, and of
that of 4alta, at forty +er )ent- !ands held &y a no&le tenure,
at thirty8ei*ht and one8third +er )ent- !ands held &y a &ase
tenure, at thirty8fi'e and one8third +er )ent-
The sur'ey and 'aluation of .ohemia is said to ha'e &een the
(or0 of more than a hundred years- It (as not +erfe)ted till
after the +ea)e of 17G?, &y the orders of the +resent em+ress
queen- The sur'ey of the du)hy of 4ilan, (hi)h (as &e*un in the
time of Charles 5I, (as not +erfe)ted till after 176C- It is
esteemed one of the most a))urate that has e'er &een made- The
sur'ey of Sa'oy and iedmont (as e1e)uted under the orders of the
late %in* of Sardinia-
In the dominions of the %in* of russia the re'enue of the
)hur)h is ta1ed mu)h hi*her than that of lay +ro+rietors- The
re'enue of the )hur)h is, the *reater +art of it, a &urden u+on
the rent of land- It seldom ha++ens that any +art of it is
a++lied to(ards the im+ro'ement of land, or is so em+loyed as to
)ontri&ute in any res+e)t to(ards in)reasin* the re'enue of the
*reat &ody of the +eo+le- #is russian 4a2esty had +ro&a&ly, u+on
that a))ount, thou*ht it reasona&le that it should )ontri&ute a
*ood deal more to(ards relie'in* the e1i*en)ies of the state- In
some )ountries the lands of the )hur)h are e1em+ted from all
ta1es- In others they are ta1ed more li*htly than other lands- In
the du)hy of 4ilan, the lands (hi)h the )hur)h +ossessed &efore
1H7H are rated to the ta1 at a third only of their 'alue-
In Silesia, lands held &y a no&le tenure are ta1ed three +er
)ent hi*her than those held &y a &ase tenure- The honours and
+ri'ile*es of different 0inds anne1ed to the former, his russian
4a2esty had +ro&a&ly ima*ined, (ould suffi)iently )om+ensate to
the +ro+rietor a small a**ra'ation of the ta1/ (hile at the same
time the humiliatin* inferiority of the latter (ould &e in some
measure alle'iated &y &ein* ta1ed some(hat more li*htly- In other
)ountries, the system of ta1ation, instead of alle'iatin*,
a**ra'ates this inequality- In the dominions of the %in* of
Sardinia, and in those +ro'in)es of "ran)e (hi)h are su&2e)t to
(hat is )alled the real or +redial taille, the ta1 falls
alto*ether u+on the lands held &y a &ase tenure- Those held &y a
no&le one are e1em+ted-
A land8ta1 assessed a))ordin* to a *eneral sur'ey and
'aluation, ho( equal soe'er it may &e at first, must, in the
)ourse of a 'ery moderate +eriod of time, &e)ome unequal- To
+re'ent its &e)omin* so (ould require the )ontinual and +ainful
attention of *o'ernment to all the 'ariations in the state and
+rodu)e of e'ery different farm in the )ountry- The *o'ernments
of russia, of .ohemia, of Sardinia, and of the du)hy of 4ilan
a)tually e1ert an attention of this 0ind/ an attention so
unsuita&le to the nature of *o'ernment that it is not li0ely to
&e of lon* )ontinuan)e, and (hi)h, if it is )ontinued, (ill
+ro&a&ly in the lon*8run o))asion mu)h more trou&le and 'e1ation
than it )an +ossi&ly &rin* relief to the )ontri&utors-
In 1666, the *enerality of 4ontau&an (as assessed to the
real or +redial taille a))ordin*, it is said, to a 'ery e1a)t
sur'ey and 'aluation- .y 17E7, this assessment had &e)ome
alto*ether unequal- In order to remedy this in)on'enien)y,
*o'ernment has found no &etter e1+edient than to im+ose u+on the
(hole *enerality an additional ta1 of a hundred and t(enty
thousand li'res- This additional ta1 is rated u+on all the
different distri)ts su&2e)t to the taille a))ordin* to the old
assessment- .ut it is le'ied only u+on those (hi)h in the a)tual
state of thin*s are &y that assessment underta1ed, and it is
a++lied to the relief of those (hi)h &y the same assessment are
o'erta1ed- T(o distri)ts, for e1am+le, one of (hi)h ou*ht in the
a)tual state of thin*s to &e ta1ed at nine hundred, the other at
ele'en hundred li'res, are &y the old assessment &oth ta1ed at a
thousand li'res- .oth these distri)ts are &y the additional ta1
rated at ele'en hundred li'res ea)h- .ut this additional ta1 is
le'ied only u+on the distri)t under)har*ed, and it is a++lied
alto*ether to the relief of that o'er)har*ed, (hi)h )onsequently
+ays only nine hundred li'res- The *o'ernment neither *ains nor
loses &y the additional ta1, (hi)h is a++lied alto*ether to
remedy the inequalities arisin* from the old assessment- The
a++li)ation is +retty mu)h re*ulated a))ordin* to the dis)retion
of the intendant of the *enerality, and must, therefore, &e in a
*reat measure ar&itrary-
Ta1es (hi)h are +ro+ortioned, not to the Rent, &ut to the
rodu)e of !and
Ta1es u+on the +rodu)e of land are in reality ta1es u+on the
rent/ and thou*h they may &e ori*inally ad'an)ed &y the farmer,
are finally +aid &y the landlord- When a )ertain +ortion of the
+rodu)e is to &e +aid a(ay for a ta1, the farmer )om+utes, as
(ell as he )an, (hat the 'alue of this +ortion is, one year (ith
another, li0ely to amount to, and he ma0es a +ro+ortiona&le
a&atement in the rent (hi)h he a*rees to +ay to the landlord-
There is no farmer (ho does not )om+ute &eforehand (hat the
)hur)h tithe, (hi)h is a land8ta1 of this 0ind, is, one year (ith
another, li0ely to amount to-
The tithe, and e'ery other land8ta1 of this 0ind, under the
a++earan)e of +erfe)t equality, are 'ery unequal ta1es/ a )ertain
+ortion of the +rodu)e &ein*, in different situations, equi'alent
to a 'ery different +ortion of the rent- In some 'ery ri)h lands
the +rodu)e is so *reat that the one half of it is fully
suffi)ient to re+la)e to the farmer his )a+ital em+loyed in
)ulti'ation, to*ether (ith the ordinary +rofits of farmin* sto)0
in the nei*h&ourhood- The other half, or, (hat )omes to the same
thin*, the 'alue of the other half, he )ould afford to +ay as
rent to the landlord, if there (as no tithe- .ut if a tenth of
the +rodu)e is ta0en from him in the (ay of tithe, he must
require an a&atement of the fifth +art of his rent, other(ise he
)annot *et &a)0 his )a+ital (ith the ordinary +rofit- In this
)ase the rent of the landlord, instead of amountin* to a half or
fi'e8tenths of the (hole +rodu)e, (ill amount only to four8tenths
of it- In +oorer lands, on the )ontrary, the +rodu)e is sometimes
so small, and the e1+ense of )ulti'ation so *reat, that it
requires four8fifths of the (hole +rodu)e to re+la)e to the
farmer his )a+ital (ith the ordinary +rofit- In this )ase, thou*h
there (as no tithe, the rent of the landlord )ould amount to no
more than one8fifth or t(o8tenths of the (hole +rodu)e- .ut if
the farmer +ays one8tenth of the +rodu)e in the (ay of tithe, he
must require an equal a&atement of the rent of the landlord,
(hi)h (ill thus &e redu)ed to one8tenth only of the (hole
+rodu)e- U+on the rent of ri)h lands, the tithe may sometimes &e
a ta1 of no more than one8fifth +art, or four shillin*s in the
+ound/ (hereas u+on that of +oorer lands, it may sometimes &e a
ta1 of one8half, or of ten shillin*s in the +ound-
The tithe, as it is frequently a 'ery unequal ta1 u+on the
rent, so it is al(ays a *reat dis)oura*ement &oth to the
im+ro'ements of the landlord and to the )ulti'ation of the
farmer- The one )annot 'enture to ma0e the most im+ortant, (hi)h
are *enerally the most e1+ensi'e im+ro'ements, nor the other to
raise the most 'alua&le, (hi)h are *enerally too the most
e1+ensi'e )ro+s, (hen the )hur)h, (hi)h lays out no +art of the
e1+ense, is to share so 'ery lar*ely in the +rofit- The
)ulti'ation of madder (as for a lon* time )onfined &y the tithe
to the United ro'in)es, (hi)h, &ein* res&yterian )ountries, and
u+on that a))ount e1em+ted from this destru)ti'e ta1, en2oyed a
sort of mono+oly of that useful dyein* dru* a*ainst the rest of
$uro+e- The late attem+ts to introdu)e the )ulture of this +lant
into $n*land ha'e &een made only in )onsequen)e of the statute
(hi)h ena)ted that fi'e shillin*s an a)re should &e re)ei'ed in
lieu of all manner of tithe u+on madder-
As throu*h the *reater +art of $uro+e the )hur)h, so in many
different )ountries of Asia the state, is +rin)i+ally su++orted
&y a land8ta1, +ro+ortioned, not to the rent, &ut to the +rodu)e
of the land- In China, the +rin)i+al re'enue of the so'erei*n
)onsists in a tenth +art of the +rodu)e of all lands of the
em+ire- This tenth +art, ho(e'er, is estimated so 'ery moderately
that, in many +ro'in)es, it is said not to e1)eed a thirtieth
+art of the ordinary +rodu)e- The land8ta1 or land8rent (hi)h
used to &e +aid to the 4ahometan *o'ernment of .en*al, &efore
that )ountry fell into the hands of the $n*lish $ast India
Com+any, is said to ha'e amounted to a&out a fifth +art of the
+rodu)e- The land8ta1 of an)ient $*y+t is said li0e(ise to ha'e
amounted to a fifth +art-
In Asia, this sort of land8ta1 is said to interest the
so'erei*n in the im+ro'ement and )ulti'ation of land- The
so'erei*ns of China, those of .en*al (hile under the 4ahometan
*o'ernment, and those of an)ient $*y+t, are said a))ordin*ly to
ha'e &een e1tremely attenti'e to the ma0in* and maintainin* of
*ood roads and na'i*a&le )anals, in order to in)rease, as mu)h as
+ossi&le, &oth the quantity and 'alue of e'ery +art of the
+rodu)e of the land, &y +ro)urin* to e'ery +art of it the most
e1tensi'e mar0et (hi)h their o(n dominions )ould afford- The
tithe of the )hur)h is di'ided into su)h small +ortions that no
one of its +ro+rietors )an ha'e any interest of this 0ind- The
+arson of a +arish )ould ne'er find his a))ount in ma0in* a road
or )anal to a distant +art of the )ountry, in order to e1tend the
mar0et for the +rodu)e of his o(n +arti)ular +arish- Su)h ta1es,
(hen destined for the maintenan)e of the state, ha'e some
ad'anta*es (hi)h may ser'e in some measure to &alan)e their
in)on'enien)y- When destined for the maintenan)e of the )hur)h,
they are attended (ith nothin* &ut in)on'enien)y-
Ta1es u+on the +rodu)e of land may &e le'ied either in 0ind,
or, a))ordin* to a )ertain 'aluation, in money-
The +arson of a +arish, or a *entleman of small fortune (ho
li'es u+on his estate, may sometimes, +erha+s, find some
ad'anta*e in re)ei'in*, the one his tithe, and the other his
rent, in 0ind- The quantity to &e )olle)ted, and the distri)t
(ithin (hi)h it is to &e )olle)ted, are so small that they &oth
)an o'ersee, (ith their o(n eyes, the )olle)tion and dis+osal of
e'ery +art of (hat is due to them- A *entleman of *reat fortune,
(ho li'ed in the )a+ital, (ould &e in dan*er of sufferin* mu)h &y
the ne*le)t, and more &y the fraud of his fa)tors and a*ents, if
the rents of an estate in a distant +ro'in)e (ere to &e +aid to
him in this manner- The loss of the so'erei*n from the a&use and
de+redation of his ta18*atherers (ould ne)essarily &e mu)h
*reater- The ser'ants of the most )areless +ri'ate +erson are,
+erha+s, more under the eye of their master than those of the
most )areful +rin)e/ and a +u&li) re'enue (hi)h (as +aid in 0ind
(ould suffer so mu)h from the mismana*ement of the )olle)tors
that a 'ery small +art of (hat (as le'ied u+on the +eo+le (ould
e'er arri'e at the treasury of the +rin)e- Some +art of the
+u&li) re'enue of China, ho(e'er, is said to &e +aid in this
manner- The mandarins and other ta18*atherers (ill, no dou&t,
find their ad'anta*e in )ontinuin* the +ra)ti)e of a +ayment
(hi)h is so mu)h more lia&le to a&use than any +ayment in money-
A ta1 u+on the +rodu)e of land (hi)h is le'ied in money may
&e le'ied either a))ordin* to a 'aluation (hi)h 'aries (ith all
the 'ariations of the mar0et +ri)e, or a))ordin* to a fi1ed
'aluation, a &ushel of (heat, for e1am+le, &ein* al(ays 'alued at
one and the same money +ri)e, (hate'er may &e the state of the
mar0et- The +rodu)e of a ta1 le'ied in the former (ay (ill 'ary
only a))ordin* to the 'ariations in the real +rodu)e of the land,
a))ordin* to the im+ro'ement or ne*le)t of )ulti'ation- The
+rodu)e of a ta1 le'ied in the latter (ay (ill 'ary, not only
a))ordin* to the 'ariations in the +rodu)e of the land, &ut
a))ordin* to &oth those in the 'alue of the +re)ious metals and
those in the quantity of those metals (hi)h is at different times
)ontained in )oin of the same denomination- The +rodu)e of the
former (ill al(ays &ear the same +ro+ortion to the 'alue of the
real +rodu)e of the land- The +rodu)e of the latter may, at
different times, &ear 'ery different +ro+ortions to that 'alue-
When, instead either of a )ertain +ortion of the +rodu)e of
land, or of the +ri)e of a )ertain +ortion, a )ertain sum of
money is to &e +aid in full )om+ensation for all ta1 or tithe,
the ta1 &e)omes, in this )ase, e1a)tly of the same nature (ith
the land8ta1 of $n*land- It neither rises nor falls (ith the rent
of the land- It neither en)oura*es nor dis)oura*es im+ro'ement-
The tithe in the *reater +art of those +arishes (hi)h +ay (hat is
)alled a 4odus in lieu of all other tithe is a ta1 of this 0ind-
Durin* the 4ahometan *o'ernment of .en*al, instead of the +ayment
in 0ind of a fifth +art of the +rodu)e, a modus, and, it is said,
a 'ery moderate one, (as esta&lished in the *reater +art of the
distri)ts or ;emindaries of the )ountry- Some of the ser'ants of
the $ast India Com+any, under +reten)e of restorin* the +u&li)
re'enue to its +ro+er 'alue, ha'e, in some +ro'in)es, e1)han*ed
this modus for a +ayment in 0ind- Under their mana*ement this
)han*e is li0ely &oth to dis)oura*e )ulti'ation, and to *i'e ne(
o++ortunities for a&use in the )olle)tion of the +u&li) re'enue
(hi)h has fallen 'ery mu)h &elo( (hat it (as said to ha'e &een
(hen it first fell under the mana*ement of the )om+any- The
ser'ants of the )om+any may, +erha+s, ha'e +rofited &y this
)han*e, &ut at the e1+ense, it is +ro&a&le, &oth of their masters
and of the )ountry-
Ta1es u+on the Rent of #ouse-
The rent of a house may &e distin*uished into t(o +arts, of
(hi)h the one may 'ery +ro+erly &e )alled the .uildin*8rent/ the
other is )ommonly )alled the 6round8rent-
The &uildin*8rent is the interest or +rofit of the )a+ital
e1+ended in &uildin* the house- In order to +ut the trade of a
&uilder u+on a le'el (ith other trades, it is ne)essary that this
rent should &e suffi)ient, first, to +ay him the same interest
(hi)h he (ould ha'e *ot for his )a+ital if he had lent it u+on
*ood se)urity/ and, se)ondly, to 0ee+ the house in )onstant
re+air, or, (hat )omes to the same thin*, to re+la)e, (ithin a
)ertain term of years, the )a+ital (hi)h had &een em+loyed in
&uildin* it- The &uildin*8rent, or the ordinary +rofit of
&uildin*, is, therefore, e'ery(here re*ulated &y the ordinary
interest of money- Where the mar0et rate of interest is four +er
)ent the rent of a house (hi)h, o'er and a&o'e +ayin* the
*round8rent, affords si1 or si1 and a half +er )ent u+on the
(hole e1+ense of &uildin*, may +erha+s afford a suffi)ient +rofit
to the &uilder- Where the mar0et rate of interest is fi'e +er
)ent, it may +erha+s require se'en or se'en and a half +er )ent-
If, in +ro+ortion to the interest of money, the trade of the
&uilder affords at any time a mu)h *reater +rofit than this, it
(ill soon dra( so mu)h )a+ital from other trades as (ill redu)e
the +rofit to its +ro+er le'el- If it affords at any time mu)h
less than this, other trades (ill soon dra( so mu)h )a+ital from
it as (ill a*ain raise that +rofit-
Whate'er +art of the (hole rent of a house is o'er and a&o'e
(hat is suffi)ient for affordin* this reasona&le +rofit naturally
*oes to the *round8rent/ and (here the o(ner of the *round and
the o(ner of the &uildin* are t(o different +ersons, is, in most
)ases, )om+letely +aid to the former- This sur+lus rent is the
+ri)e (hi)h the inha&itant of the house +ays for some real or
su++osed ad'anta*e of the situation- In )ountry houses at a
distan)e from any *reat to(n, (here there is +lenty of *round to
)hoose u+on, the *round8rent is s)ar)e anythin*, or no more than
(hat the *round (hi)h the house stands u+on (ould +ay if em+loyed
in a*ri)ulture- In )ountry 'illas in the nei*h&orhood of some
*reat to(n, it is sometimes a *ood deal hi*her, and the +e)uliar
)on'enien)y or &eauty of situation is there frequently 'ery (ell
+aid for- 6round8rents are *enerally hi*hest in the )a+ital, and
in those +arti)ular +arts of it (here there ha++ens to &e the
*reatest demand for houses, (hate'er &e the reason of that
demand, (hether for trade and &usiness, for +leasure and so)iety,
or for mere 'anity and fashion-
A ta1 u+on house8rent, +aya&le &y the tenant and
+ro+ortioned to the (hole rent of ea)h house, )ould not, for any
)onsidera&le time at least, affe)t the &uildin*8rent- If the
&uilder did not *et his reasona&le +rofit, he (ould &e o&li*ed to
quit the trade/ (hi)h, &y raisin* the demand for &uildin*, (ould
in a short time &rin* &a)0 his +rofit to its +ro+er le'el (ith
that of other trades- Neither (ould su)h a ta1 fall alto*ether
u+on the *round8rent/ &ut it (ould di'ide itself in su)h a manner
as to fall +artly u+on the inha&itant of the house, and +artly
u+on the o(ner of the *round-
!et us su++ose, for e1am+le, that a +arti)ular +erson 2ud*es
that he )an afford for house8rent an e1+ense of si1ty +ounds a
year/ and let us su++ose, too, that a ta1 of four shillin*s in
the +ound, or of one8fifth, +aya&le &y the inha&itant, is laid
u+on house8rent- A house of si1ty +ounds rent (ill in this )ase
)ost him se'enty8t(o +ounds a year, (hi)h is t(el'e +ounds more
than he thin0s he )an afford- #e (ill, therefore, )ontent himself
(ith a (orse house, or a house of fifty +ounds rent, (hi)h, (ith
the additional ten +ounds that he must +ay for the ta1, (ill ma0e
u+ the sum of si1ty +ounds a year, the e1+ense (hi)h he 2ud*es he
)an afford/ and in order to +ay the ta1 he (ill *i'e u+ a +art of
the additional )on'enien)y (hi)h he mi*ht ha'e had from a house
of ten +ounds a year more rent- #e (ill *i'e u+, I say, a +art of
this additional )on'enien)y/ for he (ill seldom &e o&li*ed to
*i'e u+ the (hole, &ut (ill, in )onsequen)e of the ta1, *et a
&etter house for fifty +ounds a year than he )ould ha'e *ot if
there had &een no ta1- "or as a ta1 of this 0ind &y ta0in* a(ay
this +arti)ular )om+etitor, must diminish the )om+etition for
houses of si1ty +ounds rent, so it must li0e(ise diminish it for
those of fifty +ounds rent, and in the same manner for those of
all other rents, e1)e+t the lo(est rent, for (hi)h it (ould for
some time in)rease the )om+etition- .ut the rents of e'ery )lass
of houses for (hi)h the )om+etition (as diminished (ould
ne)essarily &e more or less redu)ed- As no +art of this
redu)tion, ho(e'er, )ould, for any )onsidera&le time at least,
affe)t the &uildin*8rent, the (hole of it must in the lon*8run
ne)essarily fall u+on the *round8rent- The final +ayment of this
ta1, therefore, (ould fall +artly u+on the inha&itant of the
house, (ho, in order to +ay his share, (ould &e o&li*ed to *i'e
u+ a +art of his )on'enien)y, and +artly u+on the o(ner of the
*round, (ho, in order to +ay his share, (ould &e o&li*ed to *i'e
u+ a +art of his re'enue- In (hat +ro+ortion this final +ayment
(ould &e di'ided &et(een them it is not +erha+s 'ery easy to
as)ertain- The di'ision (ould +ro&a&ly &e 'ery different in
different )ir)umstan)es, and a ta1 of this 0ind mi*ht, a))ordin*
to those different )ir)umstan)es, affe)t 'ery unequally &oth the
inha&itant of the house and the o(ner of the *round-
The inequality (ith (hi)h a ta1 of this 0ind mi*ht fall u+on
the o(ners of different *round8rents (ould arise alto*ether from
the a))idental inequality of this di'ision- .ut the inequality
(ith (hi)h it mi*ht fall u+on the inha&itants of different houses
(ould arise not only from this, &ut from another )ause- The
+ro+ortion of the e1+ense of house8rent to the (hole e1+ense of
li'in* is different in the different de*rees of fortune- It is
+erha+s hi*hest in the hi*hest de*ree, and it diminishes
*radually throu*h the inferior de*rees, so as in *eneral to &e
lo(est in the lo(est de*ree- The ne)essaries of life o))asion the
*reat e1+ense of the +oor- They find it diffi)ult to *et food,
and the *reater +art of their little re'enue is s+ent in *ettin*
it- The lu1uries and 'anities of life o))asion the +rin)i+al
e1+ense of the ri)h, and a ma*nifi)ent house em&ellishes and sets
off to the &est ad'anta*e all the other lu1uries and 'anities
(hi)h they +ossess- A ta1 u+on house8rents, therefore, (ould in
*eneral fall hea'iest u+on the ri)h/ and in this sort of
inequality there (ould not, +erha+s, &e anythin* 'ery
unreasona&le- It is not 'ery unreasona&le that the ri)h should
)ontri&ute to the +u&li) e1+ense, not only in +ro+ortion to their
re'enue, &ut somethin* more than in that +ro+ortion-
The rent of houses, thou*h it in some res+e)ts resem&les the
rent of land, is in one res+e)t essentially different from it-
The rent of land is +aid for the use of a +rodu)ti'e su&2e)t- The
land (hi)h +ays it +rodu)es it- The rent of houses is +aid for
the use of an un+rodu)ti'e su&2e)t- Neither the house nor the
*round (hi)h it stands u+on +rodu)e anythin*- The +erson (ho +ays
the rent, therefore, must dra( it from some other sour)e of
re'enue distin)t from the inde+endent of this su&2e)t- A ta1 u+on
the rent of houses, so far as it falls u+on the inha&itants, must
&e dra(n from the same sour)e as the rent itself, and must &e
+aid from their re'enue, (hether deri'ed from the (a*es of
la&our, the +rofits of sto)0, or the rent of land- So far as it
falls u+on the inha&itants, it is one of those ta1es (hi)h fall,
not u+on one only, &ut indifferently u+on all the three different
sour)es of re'enue, and is in e'ery res+e)t of the same nature as
a ta1 u+on any other sort of )onsuma&le )ommodities- In *eneral
there is not, +erha+s, any one arti)le of e1+ense or )onsum+tion
&y (hi)h the li&erality or narro(ness of a man=s (hole e1+ense
)an &e &etter 2ud*ed of than &y his house8rent- A +ro+ortional
ta1 u+on this +arti)ular arti)le of e1+ense mi*ht, +erha+s,
+rodu)e a more )onsidera&le re'enue than any (hi)h has hitherto
&een dra(n from it in any +art of $uro+e- If the ta1 indeed (as
'ery hi*h, the *reater +art of +eo+le (ould endea'our to e'ade
it, as mu)h as they )ould, &y )ontentin* themsel'es (ith smaller
houses, and &y turnin* the *reater +art of their e1+ense into
some other )hannel-
The rent of houses mi*ht easily &e as)ertained (ith
suffi)ient a))ura)y &y a +oli)y of the same 0ind (ith that (hi)h
(ould &e ne)essary for as)ertainin* the ordinary rent of land-
#ouses not inha&ited ou*ht to +ay no ta1- A ta1 u+on them (ould
fall alto*ether u+on the +ro+rietor, (ho (ould thus &e ta1ed for
a su&2e)t (hi)h afforded him neither )on'enien)y nor re'enue-
#ouses inha&ited &y the +ro+rietor ou*ht to &e rated, not
a))ordin* to the e1+ense (hi)h they mi*ht ha'e )ost in &uildin*,
&ut a))ordin* to the rent (hi)h an equita&le ar&itration mi*ht
2ud*e them li0ely to &rin* if leased to a tenant- If rated
a))ordin* to the e1+ense (hi)h they may ha'e )ost in &uildin*, a
ta1 of three or four shillin*s in the +ound, 2oined (ith other
ta1es, (ould ruin almost all the ri)h and *reat families of this,
and, I &elie'e, of e'ery other )i'ilised )ountry- Whoe'er (ill
e1amine, (ith attention, the different to(n and )ountry houses of
some of the ri)hest and *reatest families in this )ountry (ill
find that, at the rate of only si1 and a half or se'en +er )ent
u+on the ori*inal e1+ense of &uildin*, their house8rent is nearly
equal to the (hole net rent of their estates- It is the
a))umulated e1+ense of se'eral su))essi'e *enerations, laid out
u+on o&2e)ts of *reat &eauty and ma*nifi)an)e, indeed/ &ut, in
+ro+ortion to (hat they )ost, of 'ery small e1)han*ea&le 'alue-
6round8rents are a still more +ro+er su&2e)t of ta1ation
than the rent of houses- A ta1 u+on *round8rents (ould not raise
the rents of houses- It (ould fall alto*ether u+on the o(ner of
the *round8rent, (ho a)ts al(ays as a mono+olist, and e1a)ts the
*reatest rent (hi)h )an &e *ot for the use of his *round- 4ore or
less )an &e *ot for it a))ordin* as the )om+etitors ha++en to &e
ri)her or +oorer, or )an afford to *ratify their fan)y for a
+arti)ular s+ot of *round at a *reater or smaller e1+ense- In
e'ery )ountry the *reatest num&er of ri)h )om+etitors is in the
)a+ital, and it is there a))ordin*ly that the hi*hest
*round8rents are al(ays to &e found- As the (ealth of those
)om+etitors (ould in no res+e)t &e in)reased &y a ta1 u+on
*round8rents, they (ould not +ro&a&ly &e dis+osed to +ay more for
the use of the *round- Whether the ta1 (as to &e ad'an)ed &y the
inha&itant, or &y the o(ner of the *round, (ould &e of little
im+ortan)e- The more the inha&itant (as o&li*ed to +ay for the
ta1, the less he (ould in)line to +ay for the *round/ so that the
final +ayment of the ta1 (ould fall alto*ether u+on the o(ner of
the *round8rent- The *round8rents of uninha&ited houses ou*ht to
+ay no ta1-
.oth *round8rents and the ordinary rent of land are a
s+e)ies of re'enue (hi)h the o(ner, in many )ases, en2oys (ithout
any )are or attention of his o(n- Thou*h a +art of this re'enue
should &e ta0en from him in order to defray the e1+enses of the
state, no dis)oura*ement (ill there&y &e *i'en to any sort of
industry- The annual +rodu)e of the land and la&our of the
so)iety, the real (ealth and re'enue of the *reat &ody of the
+eo+le, mi*ht &e the same after su)h a ta1 as &efore-
6round8rents and the ordinary rent of land are, therefore,
+erha+s, the s+e)ies of re'enue (hi)h )an &est &ear to ha'e a
+e)uliar ta1 im+osed u+on them-
6round8rents seem, in this res+e)t, a more +ro+er su&2e)t of
+e)uliar ta1ation than e'en the ordinary rent of land- The
ordinary rent of land is, in many )ases, o(in* +artly at least to
the attention and *ood mana*ement of the landlord- A 'ery hea'y
ta1 mi*ht dis)oura*e too, mu)h this attention and *ood
mana*ement- 6round8rents, so far as they e1)eed the ordinary rent
of land, are alto*ether o(in* to the *ood *o'ernment of the
so'erei*n, (hi)h, &y +rote)tin* the industry either of the (hole
+eo+le, or of the inha&itants of some +arti)ular +la)e, ena&les
them to +ay so mu)h more than its real 'alue for the *round (hi)h
they &uild their houses u+on/ or to ma0e to its o(ner so mu)h
more than )om+ensation for the loss (hi)h he mi*ht sustain &y
this use of it- Nothin* )an &e more reasona&le than that a fund
(hi)h o(es its e1isten)e to the *ood *o'ernment of the state
should &e ta1ed +e)uliarly, or should )ontri&ute somethin* more
than the *reater +art of other funds, to(ards the su++ort of that
*o'ernment-
Thou*h, in many different )ountries of $uro+e, ta1es ha'e
&een im+osed u+on the rent of houses, I do not 0no( of any in
(hi)h *round8rents ha'e &een )onsidered as a se+arate su&2e)t of
ta1ation- The )ontri'ers of ta1es ha'e, +ro&a&ly, found some
diffi)ulty in as)ertainin* (hat +art of the rent ou*ht to &e
)onsidered as *round8rent, and (hat +art ou*ht to &e )onsidered
as &uildin*8rent- It should not, ho(e'er, seem 'ery diffi)ult to
distin*uish those t(o +arts of the rent from one another-
In 6reat .ritain the rent of houses is su++osed to &e ta1ed
in the same +ro+ortion as the rent of land &y (hat is )alled the
annual land8ta1- The 'aluation, a))ordin* to (hi)h ea)h different
+arish and distri)t is assessed to this ta1, is al(ays the same-
It (as ori*inally e1tremely unequal, and it still )ontinues to &e
so- Throu*h the *reater +art of the 0in*dom this ta1 falls still
more li*htly u+on the rent of houses than u+on that of land- In
some fe( distri)ts only, (hi)h (ere ori*inally rated hi*h, and in
(hi)h the rents of houses ha'e fallen )onsidera&ly, the land8ta1
of three or four shillin*s in the +ound is said to amount to an
equal +ro+ortion of the real rent of houses- Untenanted houses,
thou*h &y la( su&2e)t to the ta1, are, in most distri)ts,
e1em+ted from it &y the fa'our of the assessors/ and this
e1em+tion sometimes o))asions some little 'ariation in the rate
of +arti)ular houses, thou*h that of the distri)t is al(ays the
same- Im+ro'ements of rent, &y ne( &uildin*s, re+airs, et)-, *o
to the dis)har*e of the distri)t, (hi)h o))asions still further
'ariations in the rate of +arti)ular houses-
In the +ro'in)e of #olland e'ery house is ta1ed at t(o and a
half +er )ent of its 'alue, (ithout any re*ard either to the rent
(hi)h it a)tually +ays, or to the )ir)umstan)es of its &ein*
tenanted or untenanted- There seems to &e a hardshi+ in o&li*in*
the +ro+rietor to +ay a ta1 for an untenanted house, from (hi)h
he )an deri'e no re'enue, es+e)ially so 'ery hea'y a ta1- In
#olland, (here the mar0et rate of interest does not e1)eed three
+er )ent, t(o and a half +er )ent u+on the (hole 'alue of the
house must, in most )ases, amount to more than a third of the
&uildin*8rent, +erha+s of the (hole rent- The 'aluation, indeed,
a))ordin* to (hi)h the houses are rated, thou*h 'ery unequal, is
said to &e al(ays &elo( the real 'alue- When a house is re&uilt,
im+ro'ed, or enlar*ed, there is a ne( 'aluation, and the ta1 is
rated a))ordin*ly-
The )ontri'ers of the se'eral ta1es (hi)h in $n*land ha'e,
at different times, &een im+osed u+on houses, seem to ha'e
ima*ined that there (as some *reat diffi)ulty in as)ertainin*,
(ith tolera&le e1a)tness, (hat (as the real rent of e'ery house-
They ha'e re*ulated their ta1es, therefore, a))ordin* to some
more o&'ious )ir)umstan)es, su)h as they had +ro&a&ly ima*ined
(ould, in most )ases, &ear some +ro+ortion to the rent-
The first ta1 of this 0ind (as hearth8money, or a ta1 of t(o
shillin*s u+on e'ery hearth- In order to as)ertain ho( many
hearths (ere in the house, it (as ne)essary that the ta18*atherer
should enter e'ery room in it- This odious 'isit rendered the ta1
odious- Soon after the re'olution, therefore, it (as a&olished as
a &ad*e of sla'ery-
The ne1t ta1 of this 0ind (as a ta1 of t(o shillin*s u+on
e'ery d(ellin*8house inha&ited- A house (ith ten (indo(s to +ay
four shillin*s more- A house (ith t(enty (indo(s and u+(ards to
+ay ei*ht shillin*s- This ta1 (as after(ards so far altered that
houses (ith t(enty (indo(s, and (ith less than thirty, (ere
ordered to +ay ten shillin*s, and those (ith thirty (indo(s and
u+(ards to +ay t(enty shillin*s- The num&er of (indo(s )an, in
most )ases, &e )ounted from the outside, and, in all )ases,
(ithout enterin* e'ery room in the house- The 'isit of the
ta18*atherer, therefore, (as less offensi'e in this ta1 than in
the hearth8money-
This ta1 (as after(ards re+ealed, and in the room of it (as
esta&lished the (indo(8ta1, (hi)h has under*one, too, se'eral
alterations and au*mentations- The (indo(8ta1, as it stands at
+resent 9Aanuary 177H:, o'er and a&o'e the duty of three
shillin*s u+on e'ery house in $n*land, and of one shillin* u+on
e'ery house in S)otland, lays a duty u+on e'ery (indo(, (hi)h, in
$n*land, au*ments *radually from t(o+en)e, the lo(est rate, u+on
houses (ith not more than se'en (indo(s, to t(o shillin*s, the
hi*hest rate, u+on houses (ith t(enty8fi'e (indo(s and u+(ards-
The +rin)i+al o&2e)tion to all su)h ta1es of the (orst is
their inequality, an inequality of the (orst 0ind, as they must
frequently fall mu)h hea'ier u+on the +oor than u+on the ri)h- A
house of ten +ounds rent in a )ountry to(n may sometimes ha'e
more (indo(s than a house of fi'e hundred +ounds rent in !ondon/
and thou*h the inha&itant of the former is li0ely to &e a mu)h
+oorer man than that of the latter, yet so far as his
)ontri&ution is re*ulated &y the (indo(8ta1, he must )ontri&ute
more to the su++ort of the state- Su)h ta1es are, therefore,
dire)tly )ontrary to the first of the four ma1ims a&o'e
mentioned- They do not seem to offend mu)h a*ainst any of the
other three-
The natural tenden)y of the (indo(8ta1, and of all other
ta1es u+on houses, is to lo(er rents- The more a man +ays for the
ta1, the less, it is e'ident, he )an afford to +ay for the rent-
Sin)e the im+osition of the (indo(8ta1, ho(e'er, the rents of
houses ha'e u+on the (hole risen, more or less, in almost e'ery
to(n and 'illa*e of 6reat .ritain (ith (hi)h I am a)quainted-
Su)h has &een almost e'ery(here the in)rease of the demand for
houses, that it has raised the rents more than the (indo(8ta1
)ould sin0 them/ one of the many +roofs of the *reat +ros+erity
of the )ountry, and of the in)reasin* re'enue of its inha&itants-
#ad it not &een for the ta1, rents (ould +ro&a&ly ha'e risen
still hi*her-
ARTIC!$ II
Ta1es on rofit, or u+on the Re'enue arisin* from Sto)0
The re'enue or +rofit arisin* from sto)0 naturally di'ides
itself into t(o +arts/ that (hi)h +ays the interest, and (hi)h
&elon*s to the o(ner of the sto)0, and that sur+lus +art (hi)h is
o'er and a&o'e (hat is ne)essary for +ayin* the interest-
This latter +art of +rofit is e'idently a su&2e)t not
ta1a&le dire)tly- It is the )om+ensation, and in most )ases it is
no more than a 'ery moderate )om+ensation, for the ris0 and
trou&le of em+loyin* the sto)0- The em+loyer must ha'e this
)om+ensation, other(ise he )annot, )onsistently (ith his o(n
interest, )ontinue the em+loyment- If he (as ta1ed dire)tly,
therefore, in +ro+ortion to the (hole +rofit, he (ould &e o&li*ed
either to raise the rate of his +rofit, or to )har*e the ta1 u+on
the interest of money/ that is, to +ay less interest- If he
raised the rate of his +rofit in +ro+ortion to the ta1, the (hole
ta1, thou*h it mi*ht &e ad'an)ed &y him, (ould &e finally +aid &y
one or other of t(o different sets of +eo+le, a))ordin* to the
different (ays in (hi)h he mi*ht em+loy the sto)0 of (hi)h he had
the mana*ement- If he em+loyed it as a farmin* sto)0 in the
)ulti'ation of land, he )ould raise the rate of his +rofit only
&y retainin* a *reater +ortion, or, (hat )omes to the same thin*,
the +ri)e of a *reater +ortion of the +rodu)e of the land/ and as
this )ould &e done only &y a redu)tion of rent, the final +ayment
of the ta1 (ould fall u+on the landlord- If he em+loyed it as a
mer)antile or manufa)turin* sto)0, he )ould raise the rate of his
+rofit only &y raisin* the +ri)e of his *oods/ in (hi)h )ase the
final +ayment of the ta1 (ould fall alto*ether u+on the )onsumers
of those *oods- If he did not raise the rate of his +rofit, he
(ould &e o&li*ed to )har*e the (hole ta1 u+on that +art of it
(hi)h (as allotted for the interest of money- #e )ould afford
less interest for (hate'er sto)0 he &orro(ed, and the (hole
(ei*ht of the ta1 (ould in this )ase fall ultimately u+on the
interest of money- So far as he )ould not relie'e himself from
the ta1 in the one (ay, he (ould &e o&li*ed to relie'e himself in
the other-
The interest of money seems at first si*ht a su&2e)t equally
)a+a&le of &ein* ta1ed dire)tly as the rent of land- !i0e the
rent of land, it is a net +rodu)e (hi)h remains after )om+letely
)om+ensatin* the (hole ris0 and trou&le of em+loyin* the sto)0-
As a ta1 u+on the rent of land )annot raise rents/ &e)ause the
net +rodu)e (hi)h remains after re+la)in* the sto)0 of the
farmer, to*ether (ith his reasona&le +rofit, )annot &e *reater
after the ta1 than &efore it, so, for the same reason, a ta1 u+on
the interest of money )ould not raise the rate of interest/ the
quantity of sto)0 or money in the )ountry, li0e the quantity of
land, &ein* su++osed to remain the same after the ta1 as &efore
it- The ordinary rate of +rofit, it has &een sho(n in the first
&oo0, is e'ery(here re*ulated &y the quantity of sto)0 to &e
em+loyed in +ro+ortion to the quantity of the em+loyment, or of
the &usiness (hi)h must &e done &y it- .ut the quantity of the
em+loyment, or of the &usiness to &e done &y sto)0, )ould neither
&e in)reased nor diminished &y any ta1 u+on the interest of
money- If the quantity of the sto)0 to &e em+loyed, therefore,
(as neither in)reased nor diminished &y it, the ordinary rate of
+rofit (ould ne)essarily remain the same- .ut the +ortion of this
+rofit ne)essary for )om+ensatin* the ris0 and trou&le of the
em+loyer (ould li0e(ise remain the same, that ris0 and trou&le
&ein* in no res+e)t altered- The residue, therefore, that +ortion
(hi)h &elon*s to the o(ner of the sto)0, and (hi)h +ays the
interest of money, (ould ne)essarily remain the same too- At
first si*ht, therefore, the interest of money seems to &e a
su&2e)t as fit to &e ta1ed dire)tly as the rent of land-
There are, ho(e'er, t(o different )ir)umstan)es (hi)h render
the interest of money a mu)h less +ro+er su&2e)t of dire)t
ta1ation than the rent of land-
"irst, the quantity and 'alue of the land (hi)h any man
+ossesses )an ne'er &e a se)ret, and )an al(ays &e as)ertained
(ith *reat e1a)tness- .ut the (hole amount of the )a+ital sto)0
(hi)h he +ossesses is almost al(ays a se)ret, and )an s)ar)e e'er
&e as)ertained (ith tolera&le e1a)tness- It is lia&le, &esides,
to almost )ontinual 'ariations- A year seldom +asses a(ay,
frequently not a month, sometimes s)ar)e a sin*le day, in (hi)h
it does not rise or fall more or less- An inquisition into e'ery
man=s +ri'ate )ir)umstan)es, and an inquisition (hi)h, in order
to a))ommodate the ta1 to them, (at)hed o'er all the flu)tuations
of his fortunes, (ould &e a sour)e of su)h )ontinual and endless
'e1ation as no +eo+le )ould su++ort-
Se)ondly, land is a su&2e)t (hi)h )annot &e remo'ed/ (hereas
sto)0 easily may- The +ro+rietor of land is ne)essarily a )iti;en
of the +arti)ular )ountry in (hi)h his estate lies- The
+ro+rietor of sto)0 is +ro+erly a )iti;en of the (orld, and is
not ne)essarily atta)hed to any +arti)ular )ountry- #e (ould &e
a+t to a&andon the )ountry in (hi)h he (as e1+osed to a 'e1atious
inquisition, in order to &e assessed to a &urdensome ta1, and
(ould remo'e his sto)0 to some other )ountry (here he )ould
either )arry on his &usiness, or en2oy his fortune more at his
ease- .y remo'in* his sto)0 he (ould +ut an end to all the
industry (hi)h it had maintained in the )ountry (hi)h he left-
Sto)0 )ulti'ates land/ sto)0 em+loys la&our- A ta1 (hi)h tended
to dri'e a(ay sto)0 from any +arti)ular )ountry (ould so far tend
to dry u+ e'ery sour)e of re'enue &oth to the so'erei*n and to
the so)iety- Not only the +rofits of sto)0, &ut the rent of land
and the (a*es of la&our (ould ne)essarily &e more or less
diminished &y its remo'al-
The nations, a))ordin*ly, (ho ha'e attem+ted to ta1 the
re'enue arisin* from sto)0, instead of any se'ere inquisition of
this 0ind, ha'e &een o&li*ed to )ontent themsel'es (ith some 'ery
loose, and, therefore, more or less ar&itrary, estimation- The
e1treme inequality and un)ertainty of a ta1 assessed in this
manner )an &e )om+ensated only &y its e1treme moderation, in
)onsequen)e of (hi)h e'ery man finds himself rated so 'ery mu)h
&elo( his real re'enue that he *i'es himself little distur&an)e
thou*h his nei*h&our should &e rated some(hat lo(er-
.y (hat is )alled the land8ta1 in $n*land, it (as intended
that sto)0 should &e ta1ed in the same +ro+ortion as land- When
the ta1 u+on land (as at four shillin*s in the +ound, or at
one8fifth of the su++osed rent, it (as intended that sto)0 should
&e ta1ed at one8fifth of the su++osed interest- When the +resent
annual land8ta1 (as first im+osed, the le*al rate of interest (as
si1 +er )ent- $'ery hundred +ounds sto)0, a))ordin*ly, (as
su++osed to &e ta1ed at t(enty8four shillin*s, the fifth +art of
si1 +ounds- Sin)e the le*al rate of interest has &een redu)ed to
fi'e +er )ent e'ery hundred +ounds sto)0 is su++osed to &e ta1ed
at t(enty shillin*s only- The sum to &e raised &y (hat is )alled
the land8ta1 (as di'ided &et(een the )ountry and the +rin)i+al
to(ns- The *reater +art of it (as laid u+on the )ountry/ and of
(hat (as laid u+on the to(ns, the *reater +art (as assessed u+on
the houses- What remained to &e assessed u+on the sto)0 or trade
of the to(ns 9for the sto)0 u+on the land (as not meant to &e
ta1ed: (as 'ery mu)h &elo( the real 'alue of that sto)0 or trade-
Whate'er inequalities, therefore, there mi*ht &e in the ori*inal
assessment *a'e little distur&an)e- $'ery +arish and distri)t
still )ontinues to &e rated for its land, its houses, and its
sto)0, a))ordin* to the ori*inal assessment/ and the almost
uni'ersal +ros+erity of the )ountry, (hi)h in most +la)es has
raised 'ery mu)h the 'alue of all these, has rendered those
inequalities of still less im+ortan)e no(- The rate, too, u+on
ea)h distri)t )ontinuin* al(ays the same, the un)ertainty of this
ta1 so far as it mi*ht &e assessed u+on the sto)0 of any
indi'idual, has &een 'ery mu)h diminished, as (ell as rendered of
mu)h less )onsequen)e- If the *reater +art of the lands of
$n*land are not rated to the land8ta1 at half their a)tual 'alue,
the *reater +art of the sto)0 of $n*land is, +erha+s, s)ar)e
rated at the fiftieth +art of its a)tual 'alue- In some to(ns the
(hole land8ta1 is assessed u+on houses, as in Westminster, (here
sto)0 and trade are free- It is other(ise in !ondon-
In all )ountries a se'ere inquisition into the )ir)umstan)es
of +ri'ate +ersons has &een )arefully a'oided-
At #am&ur* e'ery inha&itant is o&li*ed to +ay to the state
one8fourth +er )ent of all that he +ossesses/ and as the (ealth
of the +eo+le of #am&ur* )onsists +rin)i+ally in sto)0, this ta1
may &e )onsidered as a ta1 u+on sto)0- $'ery man assesses
himself, and, in the +resen)e of the ma*istrate, +uts annually
into the +u&li) )offer a )ertain sum of money (hi)h he de)lares
u+on oath to &e one8fourth +er )ent of all that he +ossesses, &ut
(ithout de)larin* (hat it amounts to, or &ein* lia&le to any
e1amination u+on that su&2e)t- This ta1 is *enerally su++osed to
&e +aid (ith *reat fidelity- In a small re+u&li), (here the
+eo+le ha'e entire )onfiden)e in their ma*istrates, are )on'in)ed
of the ne)essity of the ta1 for the su++ort of the state, and
&elie'e that it (ill &e faithfully a++lied to that +ur+ose, su)h
)ons)ientious and 'oluntary +ayment may sometimes &e e1+e)ted- It
is not +e)uliar to the +eo+le of #am&ur*-
The )anton of Unter(ald in S(it;erland is frequently ra'a*ed
&y storms and inundations, and is there&y e1+osed to
e1traordinary e1+enses- U+on su)h o))asions the +eo+le assem&le,
and e'ery one is said to de)lare (ith the *reatest fran0ness (hat
he is (orth in order to &e ta1ed a))ordin*ly- At Muri)h the la(
orders that, in )ases of ne)essity, e'ery one should &e ta1ed in
+ro+ortion to his re'enue8 the amount of (hi)h he is o&li*ed to
de)lare u+on oath- They ha'e no sus+i)ion, it is said, that any
of their fello(8)iti;ens (ill de)ei'e them- At .asel the
+rin)i+al re'enue of the state arises from a small )ustom u+on
*oods e1+orted- All the )iti;ens ma0e oath that they (ill +ay
e'ery three months all the ta1es im+osed &y the la(- All
mer)hants and e'en all inn0ee+ers are trusted (ith 0ee+in*
themsel'es the a))ount of the *oods (hi)h they sell either (ithin
or (ithout the territory- At the end of e'ery three months they
send this a))ount to the treasurer (ith the amount of the ta1
)om+uted at the &ottom of it- It is not sus+e)ted that the
re'enue suffers &y this )onfiden)e-
To o&li*e e'ery )iti;en to de)lare +u&li)ly u+on oath the
amount of his fortune must not, it seems, in those S(iss )antons
&e re)0oned a hardshi+- At #am&ur* it (ould &e re)0oned the
*reatest- 4er)hants en*a*ed in the ha;ardous +rote)ts of trade
all trem&le at the thou*hts of &ein* o&li*ed at all to e1+ose the
real state of their )ir)umstan)es- The ruin of their )redit and
the mis)arria*e of their +ro2e)ts, they foresee, (ould too often
&e the )onsequen)e- A so&er and +arsimonious +eo+le, (ho are
stran*ers to all su)h +ro2e)ts, do not feel that they ha'e
o))asion for any su)h )on)ealment-
In #olland, soon after the e1altation of the late rin)e of
Oran*e to the stadtholdershi+, a ta1 of t(o +er )ent, or the
fiftieth +enny, as it (as )alled, (as im+osed u+on the (hole
su&stan)e of e'ery )iti;en- $'ery )iti;en assessed himself and
+aid his ta1 in the same manner as at #am&ur*, and it (as in
*eneral su++osed to ha'e &een +aid (ith *reat fidelity- The
+eo+le had at that time the *reatest affe)tion for their ne(
*o'ernment, (hi)h they had 2ust esta&lished &y a *eneral
insurre)tion- The ta1 (as to &e +aid &ut on)e, in order to
relie'e the state in a +arti)ular e1i*en)y- It (as, indeed, too
hea'y to &e +ermanent- In a )ountry (here the mar0et rate of
interest seldom e1)eeds three +er )ent, a ta1 of t(o +er )ent
amounts to thirteen shillin*s and four+en)e in the +ound u+on the
hi*hest net re'enue (hi)h is )ommonly dra(n from sto)0- It is a
ta1 (hi)h 'ery fe( +eo+le )ould +ay (ithout en)roa)hin* more or
less u+on their )a+itals- In a +arti)ular e1i*en)y the +eo+le
may, from *reat +u&li) ;eal, ma0e a *reat effort, and *i'e u+
e'en a +art of their )a+ital in order to relie'e the state- .ut
it is im+ossi&le that they should )ontinue to do so for any
)onsidera&le time/ and if they did, the ta1 (ould ruin them so
)om+letely as to render them alto*ether in)a+a&le of su++ortin*
the state-
The ta1 u+on sto)0 im+osed &y the !and8ta1 .ill in $n*land,
thou*h it is +ro+ortioned to the )a+ital, is not intended to
diminish or ta0e a(ay any +art of that )a+ital- It is meant only
to &e a ta1 u+on the interest of money +ro+ortioned to that u+on
the rent of land, so that (hen the latter is at four shillin*s in
the +ound, the former may &e at four shillin*s in the +ound too-
The ta1 at #am&ur* and the still more moderate ta1 of Unter(ald
and Muri)h are meant, in the same manner, to &e ta1es, not u+on
the )a+ital, &ut u+on the interest or net re'enue of sto)0- That
of #olland (as meant to &e a ta1 u+on the )a+ital-
Ta1es u+on as rofit of +arti)ular $m+loyments
In some )ountries e1traordinary ta1es are im+osed u+on the
+rofits of sto)0, sometimes (hen em+loyed in +arti)ular &ran)hes
of trade, and sometimes (hen em+loyed in a*ri)ulture-
Of the former 0ind are in $n*land the ta1 u+on ha(0ers and
+edlars, that u+on ha)0ney )oa)hes and )hairs, and that (hi)h the
0ee+ers of ale8houses +ay for a li)en)e to retail ale and
s+irituous liquors- Durin* the late (ar, another ta1 of the same
0ind (as +ro+osed u+on sho+s- The (ar ha'in* &een underta0en, it
(as said, in defen)e of the trade of the )ountry, the mer)hants,
(ho (ere to +rofit &y it, ou*ht to )ontri&ute to(ards the su++ort
of it-
A ta1, ho(e'er, u+on the +rofits of sto)0 em+loyed in any
+arti)ular &ran)h of trade )an ne'er fall finally u+on the
dealers 9(ho must in all ordinary )ases ha'e their reasona&le
+rofit, and (here the )om+etition is free )an seldom ha'e more
than that +rofit:, &ut al(ays u+on the )onsumers, (ho must &e
o&li*ed to +ay in the +ri)e of the *oods the ta1 (hi)h the dealer
ad'an)es/ and *enerally (ith some o'er)har*e-
A ta1 of this 0ind (hen it is +ro+ortioned to the trade of
the dealer is finally +aid &y the )onsumer, and o))asions no
o++ression to the dealer- When it is not so +ro+ortioned, &ut is
the same u+on all dealers, thou*h in this )ase, too, it is
finally +aid &y the )onsumer, yet it fa'ours the *reat, and
o))asions some o++ression to the small dealer- The ta1 of fi'e
shillin*s a (ee0 u+on e'ery ha)0ney )oa)h, and that of ten
shillin*s a year u+on e'ery ha)0ney )hair, so far as it is
ad'an)ed &y the different 0ee+ers of su)h )oa)hes and )hairs, is
e1a)tly enou*h +ro+ortioned to the e1tent of their res+e)ti'e
dealin*s- It neither fa'ours the *reat, nor o++resses the smaller
dealer- The ta1 of t(enty shillin*s a year for a li)en)e to sell
ale/ of forty shillin*s for a li)en)e to sell s+irituous liquors/
and of forty shillin*s more for a li)en)e to sell (ine, &ein* the
same u+on all retailers, must ne)essarily *i'e some ad'anta*e to
the *reat, and o))asion some o++ression to the small dealers- The
former must find it more easy to *et &a)0 the ta1 in the +ri)e of
their *oods than the latter- The moderation of the ta1, ho(e'er,
renders this inequality of less im+ortan)e, and it may to many
+eo+le a++ear not im+ro+er to *i'e some dis)oura*ement to the
multi+li)ation of little ale8houses- The ta1 u+on sho+s, it (as
intended, should &e the same u+on all sho+s- It )ould not (ell
ha'e &een other(ise- It (ould ha'e &een im+ossi&le to +ro+ortion
(ith tolera&le e1a)tness the ta1 u+on a sho+ to the e1tent of the
trade )arried on in it (ithout su)h an inquisition as (ould ha'e
&een alto*ether insu++orta&le in a free )ountry- If the ta1 had
&een )onsidera&le, it (ould ha'e o++ressed the small, and for)ed
almost the (hole retail trade into the hands of the *reat
dealers- The )om+etition of the former &ein* ta0en a(ay, the
latter (ould ha'e en2oyed a mono+oly of the trade, and li0e all
other mono+olists (ould soon ha'e )om&ined to raise their +rofits
mu)h &eyond (hat (as ne)essary for the +ayment of the ta1- The
final +ayment, instead of fallin* u+on the sho+0ee+er, (ould ha'e
fallen u+on the )onsumer, (ith a )onsidera&le o'er)har*e to the
+rofit of the sho+0ee+er- "or these reasons the +ro2e)t of a ta1
u+on sho+s (as laid aside, and in the room of it (as su&stituted
the su&sidy, 17HF-
What in "ran)e is )alled the +ersonal taille is, +erha+s,
the most im+ortant ta1 u+on the +rofits of sto)0 em+loyed in
a*ri)ulture that is le'ied in any +art of $uro+e-
In the disorderly state of $uro+e durin* the +re'alen)e of
the feudal *o'ernment, the so'erei*n (as o&li*ed to )ontent
himself (ith ta1in* those (ho (ere too (ea0 to refuse to +ay
ta1es- The *reat lords, thou*h (illin* to assist him u+on
+arti)ular emer*en)ies, refused to su&2e)t themsel'es to any
)onstant ta1, and he (as not stron* enou*h to for)e them- The
o))u+iers of land all o'er $uro+e (ere, the *reater +art of them,
ori*inally &ondmen- Throu*h the *reater +art of $uro+e they (ere
*radually eman)i+ated- Some of them a)quired the +ro+erty of
landed estates (hi)h they held &y some &ase or i*no&le tenure,
sometimes under the 0in*, and sometimes under some other *reat
lord, li0e the an)ient )o+y8holders of $n*land- Others (ithout
a)quirin* the +ro+erty, o&tained leases for terms of years of the
lands (hi)h they o))u+ied under their lord, and thus &e)ame less
de+endent u+on him- The *reat lords seem to ha'e &eheld the
de*ree of +ros+erity and inde+enden)y (hi)h this inferior order
of men had thus )ome to en2oy (ith a mali*nant and )ontem+tuous
indi*nation, and (illin*ly )onsented that the so'erei*n should
ta1 them- In some )ountries this ta1 (as )onfined to the lands
(hi)h (ere held in +ro+erty &y an i*no&le tenure/ and, in this
)ase, the taille (as said to &e real- The land8ta1 esta&lished &y
the late %in* of Sardinia, and the taille in the +ro'in)es of
!an*uedo), ro'en)e, Dau+hine, and .rittany, in the *enerality of
4ontau&an, and in the ele)tions of A*en and Comdom, as (ell as in
some other distri)ts of "ran)e, are ta1es u+on lands held in
+ro+erty &y an i*no&le tenure- In other )ountries the ta1 (as
laid u+on the su++osed +rofits of all those (ho held in farm or
lease lands &elon*in* to other +eo+le, (hate'er mi*ht &e the
tenure &y (hi)h the +ro+rietor held them/ and in this )ase the
taille (as said to &e +ersonal- In the *reater +art of those
+ro'in)es of "ran)e (hi)h are )alled the Countries of $le)tions
the taille is of this 0ind- The real taille, as it is im+osed
only u+on a +art of the lands of the )ountry, is ne)essarily an
unequal, &ut it is not al(ays an ar&itrary ta1, thou*h it is so
u+on some o))asions- The +ersonal taille, as it is intended to &e
+ro+ortioned to the +rofits of a )ertain )lass of +eo+le (hi)h
)an only &e *uessed at, is ne)essarily &oth ar&itrary and
unequal-
In "ran)e the +ersonal taille at +resent 9177H: annually
im+osed u+on the t(enty *eneralities )alled the Countries of
$le)tions amounts to GC,1C7,EBF li'res, 16 sous- The +ro+ortion
in (hi)h this sum is assessed u+on those different +ro'in)es
'aries from year to year a))ordin* to the re+orts (hi)h are made
to the 0in*=s )oun)il )on)ernin* the *oodness or &adness of the
)ro+s, as (ell as other )ir)umstan)es (hi)h may either in)rease
or diminish their res+e)ti'e a&ilities to +ay- $a)h *enerality it
di'ided into a )ertain num&er of ele)tions, and the +ro+ortion in
(hi)h the sum im+osed u+on the (hole *enerality is di'ided amon*
those different ele)tions 'aries li0e(ise from year to year
a))ordin* to the re+orts made to the )oun)il )on)ernin* their
res+e)ti'e a&ilities- It seems im+ossi&le that the )oun)il, (ith
the &est intentions, )an e'er +ro+ortion (ith tolera&le e1a)tness
either of those t(o assessments to the real a&ilities of the
+ro'in)e or distri)t u+on (hi)h they are res+e)ti'ely laid-
I*noran)e and misinformation must al(ays, more or less, mislead
the most u+ri*ht )oun)il- The +ro+ortion (hi)h ea)h +arish ou*ht
to su++ort of (hat is assessed u+on the (hole ele)tion, and that
(hi)h ea)h indi'idual ou*ht to su++ort of (hat is assessed u+on
his +arti)ular +arish, are &oth in the same manner 'aried, from
year to year, a))ordin* as )ir)umstan)es are su++osed to require-
These )ir)umstan)es are 2ud*ed of, in the one )ase, &y the
offi)ers of the ele)tion, in the other &y those of the +arish,
and &oth the one and the other are, more or less, under the
dire)tion and influen)e of the intendant- Not only i*noran)e and
misinformation, &ut friendshi+, +arty animosity, and +ri'ate
resentment are said frequently to mislead su)h assessors- No man
su&2e)t to su)h a ta1, it is e'ident, )an e'er &e )ertain, &efore
he is assessed, of (hat he is to +ay- #e )annot e'en &e )ertain
after he is assessed- If any +erson has &een ta1ed (ho ou*ht to
ha'e &een e1em+ted, or if any +erson has &een ta1ed &eyond his
+ro+ortion, thou*h &oth must +ay in the meantime, yet if they
)om+lain, and ma0e *ood their )om+laints, the (hole +arish is
reim+osed ne1t year in order to reim&urse them- If any of the
)ontri&utors &e)ome &an0ru+t or insol'ent, the )olle)tor is
o&li*ed to ad'an)e his ta1, and the (hole +arish is reim+osed
ne1t year in order to reim&urse the )olle)tor- If the )olle)tor
himself should &e)ome &an0ru+t, the +arish (hi)h ele)ts him must
ans(er for his )ondu)t to the re)ei'er *eneral of the ele)tion-
.ut, as it mi*ht &e trou&lesome for the re)ei'er to +rose)ute the
(hole +arish, he ta0es at his )hoi)e fi'e or si1 of the ri)hest
)ontri&utors and o&li*es them to ma0e *ood (hat had &een lost &y
the insol'en)y of the )olle)tor- The +arish is after(ards
reim+osed in order to reim&urse those fi'e or si1- Su)h
reim+ositions are al(ays o'er and a&o'e the taille of the
+arti)ular year in (hi)h they are laid on-
When a ta1 is im+osed u+on the +rofits of sto)0 in a
+arti)ular &ran)h of trade, the traders are all )areful to &rin*
no more *oods to mar0et than (hat they )an sell at a +ri)e
suffi)ient to reim&urse them for ad'an)in* the ta1- Some of them
(ithdra( a +art of their sto)0s from the trade, and the mar0et is
more s+arin*ly su++lied than &efore- The +ri)e of the *oods
rises, and the final +ayment of the ta1 falls u+on the )onsumer-
.ut (hen a ta1 is im+osed u+on the +rofits of sto)0 em+loyed in
a*ri)ulture, it is not the interest of the farmers to (ithdra(
any +art of their sto)0 from that em+loyment- $a)h farmer
o))u+ies a )ertain quantity of land, for (hi)h hi +ays rent- "or
the +ro+er )ulti'ation of this land a )ertain quantity of sto)0
is ne)essary, and &y (ithdra(in* any +art of this ne)essary
quantity, the farmer is not li0ely to &e more a&le to +ay either
the rent or the ta1- In order to +ay the ta1, it )an ne'er &e his
interest to diminish the quantity of his +rodu)e, nor
)onsequently to su++ly the mar0et more s+arin*ly than &efore- The
ta1, therefore, (ill ne'er ena&le him to raise the +ri)e of his
+rodu)e so as to reim&urse himself &y thro(in* the final +ayment
u+on the )onsumer- The farmer, ho(e'er, must ha'e his reasona&le
+rofit as (ell as e'ery other dealer, other(ise he must *i'e u+
the trade- After the im+osition of a ta1 of this 0ind, he )an *et
this reasona&le +rofit only &y +ayin* less rent to the landlord-
The more he is o&li*ed to +ay in the (ay of ta1 the less he )an
afford to +ay in the (ay of rent- A ta1 of this 0ind im+osed
durin* the )urren)y of a lease may, no dou&t, distress or ruin
the farmer- U+on the rene(al of the lease it must al(ays fall
u+on the landlord-
In the )ountries (here the +ersonal taille ta0es +la)e, the
farmer is )ommonly assessed in +ro+ortion to the sto)0 (hi)h he
a++ears to em+loy in )ulti'ation- #e is, u+on this a))ount,
frequently afraid to ha'e a *ood team of horses or o1en, &ut
endea'ours to )ulti'ate (ith the meanest and most (ret)hed
instruments of hus&andry that he )an- Su)h is his distrust in the
2usti)e of his assessors that he )ounterfeits +o'erty, and (ishes
to a++ear s)ar)e a&le to +ay anythin* for fear of &ein* o&li*ed
to +ay too mu)h- .y this misera&le +oli)y he does not, +erha+s,
al(ays )onsult his o(n interest in the most effe)tual manner, and
he +ro&a&ly loses more &y the diminution of his +rodu)e than he
sa'es &y that of his ta1- Thou*h, in )onsequen)e of this (ret)hed
)ulti'ation, the mar0et is, no dou&t, some(hat (orse su++lied,
yet the small rise of +ri)e (hi)h may o))asion, as it is not
li0ely e'en to indemnify the farmer for the diminution of his
+rodu)e, it is still less li0ely to ena&le him to +ay more rent
to the landlord- The +u&li), the farmer, the landlord, all suffer
more or less &y this de*raded )ulti'ation- That the +ersonal
taille tends, in many different (ays, to dis)oura*e )ulti'ation,
and )onsequently to dry u+ the +rin)i+al sour)e of the (ealth of
e'ery *reat )ountry, I ha'e already had o))asion to o&ser'e in
the third &oo0 of this Inquiry-
What are )alled +oll8ta1es in the southern +ro'in)es of
North Ameri)a, and in the West Indian Islands annual ta1es of so
mu)h a head u+on e'ery ne*ro, are +ro+erly ta1es u+on the +rofits
of a )ertain s+e)ies of sto)0 em+loyed in a*ri)ulture- As the
+lanters are, the *reater +art of them, &oth farmers and
landlords, the final +ayment of the ta1 falls u+on them in their
quality of landlords (ithout any retri&ution-
Ta1es of so mu)h a head u+on the &ondmen em+loyed in
)ulti'ation seem an)iently to ha'e &een )ommon all o'er $uro+e-
There su&sists at +resent a ta1 of this 0ind in the em+ire of
Russia- It is +ro&a&ly u+on this a))ount that +oll8ta1es of all
0inds ha'e often &een re+resented as &ad*es of sla'ery- $'ery
ta1, ho(e'er, is to the +erson (ho +ays it a &ad*e, not of
sla'ery, &ut of li&erty- It denotes that he is su&2e)t to
*o'ernment, indeed, &ut that, as he has some +ro+erty, he )annot
himself &e the +ro+erty of a master- A +oll8ta1 u+on sla'es is
alto*ether different from a +oll8ta1 u+on freemen- The latter is
+aid &y the +ersons u+on (hom it is im+osed/ the former &y a
different set of +ersons- The latter is either alto*ether
ar&itrary or alto*ether unequal, and in most )ases is &oth the
one and the other/ the former, thou*h in some res+e)ts unequal,
different sla'es &ein* of different 'alues, is in no res+e)t
ar&itrary- $'ery master (ho 0no(s the num&er of his o(n sla'es
0no(s e1a)tly (hat he has to +ay- Those different ta1es, ho(e'er,
&ein* )alled &y the same name, ha'e &een )onsidered as of the
same nature-
The ta1es (hi)h in #olland are im+osed u+on men8 and
maid8ser'ants are ta1es, not u+on sto)0, &ut u+on e1+ense, and so
far resem&le the ta1es u+on )onsuma&le )ommodities- The ta1 of a
*uinea a head for e'ery man8ser'ant (hi)h has lately &een im+osed
in 6reat .ritain is of the same 0ind- It falls hea'iest u+on the
middlin* ran0- A man of t(o hundred a year may 0ee+ a sin*le
manser'ant- A man of ten thousand a year (ill not 0ee+ fifty- It
does not affe)t the +oor-
Ta1es u+on the +rofits of sto)0 in +arti)ular em+loyments
)an ne'er affe)t the interest of money- No&ody (ill lend his
money for less interest to those (ho e1er)ise the ta1ed than to
those (ho e1er)ise the unta1ed em+loyments- Ta1es u+on the
re'enue arisin* from sto)0 in all em+loyments (here the
*o'ernment attem+ts to le'y them (ith any de*ree of e1a)tness,
(ill, in many )ases, fall u+on the interest of money- The
5in*tieme, or t(entieth +enny, in "ran)e is a ta1 of the same
0ind (ith (hat is )alled the land8ta1 in $n*land, and is
assessed, in the same manner, u+on the re'enue arisin* from land,
houses, and sto)0- So far as it affe)ts sto)0 it is assessed,
thou*h not (ith *reat ri*our, yet (ith mu)h more e1a)tness than
that +art of the land8ta1 of $n*land (hi)h is im+osed u+on the
same fund- It, in many )ases, falls alto*ether u+on the interest
of money- 4oney is frequently sun0 in "ran)e u+on (hat are )alled
Contra)ts for the )onstitution of a rent/ that is, +er+etual
annuities redeema&le at any time &y the de&tor u+on re+ayment of
the sum ori*inally ad'an)ed, &ut of (hi)h this redem+tion is not
e1i*i&le &y the )reditor e1)e+t in +arti)ular )ases- The
5in*tieme, seems not to ha'e raised the rate of those annuities,
thou*h it is e1a)tly le'ied u+on them all-
A++endi1 to ARTIC!$S I and II-
Ta1es u+on the Ca+ital 5alue of !and, #ouses, and Sto)0
While +ro+erty remains in the +ossession of the same +erson,
(hate'er +ermanent ta1es may ha'e &een im+osed u+on it, they ha'e
ne'er &een intended to diminish or ta0e a(ay any +art of its
)a+ital 'alue, &ut only some +art of the re'enue arisin* from it-
.ut (hen +ro+erty )han*es hands, (hen it is transmitted either
from the dead to the li'in*, or from the li'in* to the li'in*,
su)h ta1es ha'e frequently &een im+osed u+on it as ne)essarily
ta0e a(ay some +art of its )a+ital 'alue-
The transferen)e of all sorts of +ro+erty from the dead to
the li'in*, and that of immo'a&le +ro+erty, of lands and houses,
from the li'in* to the li'in*, are transa)tions (hi)h are in
their nature either +u&li) and notorious, or su)h as )annot &e
lon* )on)ealed- Su)h transa)tions, therefore, may &e ta1ed
dire)tly- The transferen)e of sto)0, or mo'a&le +ro+erty, from
the li'in* to the li'in*, &y the lendin* of money, is frequently
a se)ret transa)tion, and may al(ays &e made so- It )annot
easily, therefore, &e ta1ed dire)tly- It has &een ta1ed
indire)tly in t(o different (ays/ first, &y requirin* that the
deed )ontainin* the o&li*ation to re+ay should &e (ritten u+on
+a+er or +ar)hment (hi)h had +aid a )ertain stam+8duty, other(ise
not to &e 'alid/ se)ondly, &y requirin*, under the li0e +enalty
of in'alidity, that it should &e re)orded either in a +u&li) or
se)ret re*ister, and &y im+osin* )ertain duties u+on su)h
re*istration- Stam+8duties and duties of re*istration ha'e
frequently &een im+osed li0e(ise u+on the deeds transferrin*
+ro+erty of all 0inds from the dead to the li'in*, and u+on those
transferrin* immo'a&le +ro+erty from the li'in* to the li'in*,
transa)tions (hi)h mi*ht easily ha'e &een ta1ed dire)tly-
The 5i)esima #ereditatum, the t(entieth +enny of
inheritan)es im+osed &y Au*ustus u+on the an)ient Romans, (as a
ta1 u+on the transferen)e of +ro+erty from the dead to the
li'in*- Dion Cassius, the author (ho (rites )on)ernin* it the
least indistin)tly, says that it (as im+osed u+on all
su))essions, le*a)ies, and donations in )ase of death, e1)e+t
u+on those to the nearest relations and to the +oor-
Of the same 0ind is the Dut)h ta1 u+on su))essions-
Collateral su))essions are ta1ed, a))ordin* to the de*ree of
relation, from fi'e to thirty +er )ent u+on the (hole 'alue of
the su))ession- Testamentary donations, or le*a)ies to
)ollaterals, are su&2e)t to the li0e duties- Those from hus&and
to (ife, or from (ife to hus&and, to the fiftieth +enny- The
!u)tuosa #ereditas, the mournful su))ession of as)endants to
des)endants, to the t(entieth +enny only- Dire)t su))essions, or
those of des)endants to as)endants, +ay no ta1- The death of a
father, to su)h of his )hildren as li'e in the same house (ith
him, is seldom attended (ith any in)rease, and frequently (ith a
)onsidera&le diminution of re'enue, &y the loss of his industry,
of his offi)e, or of some life8rent estate of (hi)h he may ha'e
&een in +ossession- That ta1 (ould &e )ruel and o++ressi'e (hi)h
a**ra'ated their loss &y ta0in* from them any +art of his
su))ession- It may, ho(e'er, sometimes &e other(ise (ith those
)hildren (ho, in the lan*ua*e of the Roman la(, are said to &e
eman)i+ated/ in that of the S)ot)h la(, to &e forisfamiliated/
that is, (ho ha'e re)ei'ed their +ortion, ha'e *ot families of
their o(n, and are su++orted &y funds se+arate and inde+endent of
those of their father- Whate'er +art of his su))ession mi*ht )ome
to su)h )hildren (ould &e a real addition to their fortune, and
mi*ht therefore, +erha+s, (ithout more in)on'enien)y than (hat
attends all duties of this 0ind, &e lia&le to some ta1-
The )asualties of the feudal la( (ere ta1es u+on the
transferen)e of land, &oth from the dead to the li'in*, and from
the li'in* to the li'in*- In an)ient times they )onstituted in
e'ery +art of $uro+e one of the +rin)i+al &ran)hes of the re'enue
of the )ro(n-
The heir of e'ery immediate 'assal of the )ro(n +aid a
)ertain duty, *enerally a year=s rent, u+on re)ei'in* the
in'estiture of the estate- If the heir (as a minor, the (hole
rents of the estate durin* the )ontinuan)e of the minority
de'ol'ed to the su+erior (ithout any other )har*e &esides the
maintenan)e of the minor, and the +ayment of the (ido(=s do(er
(hen there ha++ened to &e a do(a*er u+on the land- When the minor
)ame to &e of a*e, another ta1, )alled Relief, (as still due to
the su+erior, (hi)h *enerally amounted li0e(ise to a year=s rent-
A lon* minority, (hi)h in the +resent times so frequently
dis&urdens a *reat estate of all its in)um&ran)es and restores
the family to their an)ient s+lendour, )ould in those times ha'e
no su)h effe)t- The (aste, and not the disin)um&ran)e of the
estate, (as the )ommon effe)t of a lon* minority-
.y the feudal la( the 'assal )ould not alienate (ithout the
)onsent of his su+erior, (ho *enerally e1torted a fine or
)om+osition for *rantin* it- This fine, (hi)h (as at first
ar&itrary, )ame in many )ountries to &e re*ulated at a )ertain
+ortion of the +ri)e of the land- In some )ountries (here the
*reater +art of the other feudal )ustoms ha'e *one into disuse,
this ta1 u+on the alienation of land still )ontinues to ma0e a
'ery )onsidera&le &ran)h of the re'enue of the so'erei*n- In the
)anton of .erne it is so hi*h as a si1th +art of the +ri)e of all
no&le fiefs, and a tenth +art of that of all i*no&le ones- In the
)anton of !u)erne the ta1 u+on the sale of lands is not
uni'ersal, and ta0es +la)e only in )ertain distri)ts- .ut if any
+erson sells his land in order to remo'e out of the territory, he
+ays ten +er )ent u+on the (hole +ri)e of the sale- Ta1es of the
same 0ind u+on the sale either of all lands, or of lands held &y
)ertain tenures, ta0e +la)e in many other )ountries, and ma0e a
more or less )onsidera&le &ran)h of the re'enue of the so'erei*n-
Su)h transa)tions may &e ta1ed indire)tly &y means either of
stam+8duties, or of duties u+on re*istration, and those duties
either may or may not &e +ro+ortioned to the 'alue of the su&2e)t
(hi)h is transferred-
In 6reat .ritain the stam+8duties are hi*her or lo(er, not
so mu)h a))ordin* to the 'alue of the +ro+erty transferred 9an
ei*hteen+enny or half8)ro(n stam+ &ein* suffi)ient u+on a &ond
for the lar*est sum of money: as a))ordin* to the nature of the
deed- The hi*hest do not e1)eed si1 +ounds u+on e'ery sheet of
+a+er or s0in of +ar)hment, and these hi*h duties fall )hiefly
u+on *rants from the )ro(n, and u+on )ertain la( +ro)eedin*s,
(ithout any re*ard to the 'alue of the su&2e)t- There are in
6reat .ritain no duties on the re*istration of deeds or (ritin*s,
e1)e+t the fees of the offi)ers (ho 0ee+ the re*ister, and these
are seldom more than a reasona&le re)om+ense for their la&our-
The )ro(n deri'es no re'enue from them-
In #olland there are &oth stam+8duties and duties u+on
re*istration, (hi)h in some )ases are, and in some are not,
+ro+ortioned to the 'alue of the +ro+erty transferred- All
testaments must &e (ritten u+on stam+ed +a+er of (hi)h the +ri)e
is +ro+ortioned to the +ro+erty dis+osed of, so that there are
stam+s (hi)h )ost from three+en)e, or three sti'ers a sheet, to
three hundred florins, equal to a&out t(enty8se'en +ounds ten
shillin*s of our money- If the stam+ is of an inferior +ri)e to
(hat the testator ou*ht to ha'e made use of, his su))ession is
)onfis)ated- This is o'er and a&o'e all their other ta1es on
su))ession- $1)e+t &ills of e1)han*e, and some other mer)antile
&ills, all other deeds, &onds, and )ontra)ts are su&2e)t to a
stam+8duty- This duty, ho(e'er, does not rise in +ro+ortion to
the 'alue of the su&2e)t- All sales of land and of houses, and
all mort*a*es u+on either, must &e re*istered, and, u+on
re*istration, +ay a duty to the state of t(o and a half +er )ent
u+on the amount of the +ri)e or of the mort*a*e- This duty is
e1tended to the sale of all shi+s and 'essels of more than t(o
tons &urden, (hether de)0ed or unde)0ed- These, it seems, are
)onsidered as a sort of houses u+on the (ater- The sale of
mo'a&les, (hen it is ordered &y a )ourt of 2usti)e, is su&2e)t to
the li0e duty of t(o and a half +er )ent-
In "ran)e there are &oth stam+8duties and duties u+on
re*istration- The former are )onsidered as a &ran)h of the aides
or e1)ise, and in the +ro'in)es (here those duties ta0e +la)e are
le'ied &y the e1)ise offi)ers- The latter are )onsidered as a
&ran)h of the domain of the )ro(n, and are le'ied &y a different
set of offi)ers-
Those modes of ta1ation, &y stam+8duties and &y duties u+on
re*istration, are of 'ery modern in'ention- In the )ourse of
little more than a )entury, ho(e'er, stam+8duties ha'e, in
$uro+e, &e)ome almost uni'ersal, and duties u+on re*istration
e1tremely )ommon- There is no art (hi)h one *o'ernment sooner
learns of another than that of drainin* money from the +o)0ets of
the +eo+le-
Ta1es u+on the transferen)e of +ro+erty from the dead to the
li'in* fall finally as (ell as immediately u+on the +erson to
(hom the +ro+erty is transferred- Ta1es u+on the sale of land
fall alto*ether u+on the seller- The seller is almost al(ays
under the ne)essity of sellin*, and must, therefore, ta0e su)h a
+ri)e as he )an *et- The &uyer is s)ar)e e'er under the ne)essity
of &uyin*, and (ill, therefore, only *i'e su)h a +ri)e as he
li0es- #e )onsiders (hat the land (ill )ost him in ta1 and +ri)e
to*ether- The more he is o&li*ed to +ay in the (ay of ta1, the
less he (ill &e dis+osed to *i'e in the (ay of +ri)e- Su)h ta1es,
therefore, fall almost al(ays u+on a ne)essitous +erson, and
must, therefore, &e frequently 'ery )ruel and o++ressi'e- Ta1es
u+on the sale of ne(8&uilt houses, (here the &uildin* is sold
(ithout the *round, fall *enerally u+on the &uyer, &e)ause the
&uilder must *enerally ha'e his +rofit, other(ise he must *i'e u+
the trade- If he ad'an)es the ta1, therefore, the &uyer must
*enerally re+ay it to him- Ta1es u+on the sale of old houses, for
the same reason as those u+on the sale of land, fall *enerally
u+on the seller, (hom in most )ases either )on'enien)y or
ne)essity o&li*es to sell- The num&er of ne(8&uilt houses that
are annually &rou*ht to mar0et is more or less re*ulated &y the
demand- Unless the demand is su)h as to afford the &uilder his
+rofit, after +ayin* all e1+enses, he (ill &uild no more houses-
The num&er of old houses (hi)h ha++en at any time to )ome to
mar0et is re*ulated &y a))idents of (hi)h the *reater +art ha'e
no relation to the demand- T(o or three *reat &an0ru+t)ies in a
mer)antile to(n (ill &rin* many houses to sale (hi)h must &e sold
for (hat )an &e *ot for them- Ta1es u+on the sale of *round8rents
fall alto*ether u+on the seller, for the same reason as those
u+on the sale of land- Stam+8duties, and duties u+on the
re*istration of &onds and )ontra)ts for &orro(ed money, fall
alto*ether u+on the &orro(er, and, in fa)t, are al(ays +aid &y
him- Duties of the same 0ind u+on la( +ro)eedin*s fall u+on the
suitors- They redu)e to &oth the )a+ital 'alue of the su&2e)t in
dis+ute- The more it )osts to a)quire any +ro+erty, the less must
&e the net 'alue of it (hen a)quired-
All ta1es u+on the transferen)e of +ro+erty of e'ery 0ind,
so far as they diminish the )a+ital 'alue of that +ro+erty, tend
to diminish the funds destined for the maintenan)e of +rodu)ti'e
la&our- They are all more or less unthrifty ta1es that in)rease
the re'enue of the so'erei*n, (hi)h seldom maintains any &ut
un+rodu)ti'e la&ourers, at the e1+ense of the )a+ital of the
+eo+le, (hi)h maintains none &ut +rodu)ti'e-
Su)h ta1es, e'en (hen they are +ro+ortioned to the 'alue of
the +ro+erty transferred, are still unequal, the frequen)y of
transferen)e not &ein* al(ays equal in +ro+erty of equal 'alue-
When they are not +ro+ortioned to this 'alue, (hi)h is the )ase
(ith the *reater +art of the stam+8duties and duties of
re*istration, they are still more so- They are in no res+e)t
ar&itrary, &ut are or may &e in all )ases +erfe)tly )lear and
)ertain- Thou*h they sometimes fall u+on the +erson (ho is not
'ery a&le to +ay, the time of +ayment is in most )ases
suffi)iently )on'enient for him- When the +ayment &e)omes due, he
must in most )ases ha'e the money to +ay- They are le'ied at 'ery
little e1+ense, and in *eneral su&2e)t the )ontri&utors to no
other in)on'enien)y &esides al(ays the una'oida&le one of +ayin*
the ta1-
In "ran)e the stam+8duties are not mu)h )om+lained of- Those
of re*istration, (hi)h they )all the Controle, are- They *i'e
o))asion, it is +retended, to mu)h e1tortion in the offi)ers of
the farmers8*eneral (ho )olle)t the ta1, (hi)h is in a *reat
measure ar&itrary and un)ertain- In the *reater +art of the
li&els (hi)h ha'e &een (ritten a*ainst the +resent system of
finan)es in "ran)e the a&uses of the Controle ma0e a +rin)i+al
arti)le- Un)ertainty, ho(e'er, does not seem to &e ne)essarily
inherent in the nature of su)h ta1es- If the +o+ular )om+laints
are (ell founded, the a&use must arise, not so mu)h from the
nature of the ta1 as from the (ant of +re)ision and distin)tness
in the (ords of the edi)ts or la(s (hi)h im+ose it-
The re*istration of mort*a*es, and in *eneral of all ri*hts
u+on immo'a&le +ro+erty, as it *i'es *reat se)urity &oth to
)reditors and +ur)hasers, is e1tremely ad'anta*eous to the
+u&li)- That of the *reater +art of deeds of other 0inds is
frequently in)on'enient and e'en dan*erous to indi'iduals,
(ithout any ad'anta*e to the +u&li)- All re*isters (hi)h, it is
a)0no(led*ed, ou*ht to &e 0e+t se)ret, ou*ht )ertainly ne'er to
e1ist- The )redit of indi'iduals ou*ht )ertainly ne'er to de+end
u+on so 'ery slender a se)urity as the +ro&ity and reli*ion of
the inferior offi)ers of re'enue- .ut (here the fees of
re*istration ha'e &een made a sour)e of re'enue to the so'erei*n,
re*ister offi)es ha'e )ommonly &een multi+lied (ithout end, &oth
for the deeds (hi)h ou*ht to &e re*istered, and for those (hi)h
ou*ht not- In "ran)e there are se'eral different sorts of se)ret
re*isters- This a&use, thou*h not +erha+s a ne)essary, it must &e
a)0no(led*ed, is a 'ery natural effe)t of su)h ta1es-
Su)h stam+8duties as those in $n*land u+on )ards and di)e,
u+on ne(s+a+ers and +eriodi)al +am+hlets, et)-, are +ro+erly
ta1es u+on )onsum+tion/ the final +ayment falls u+on the +ersons
(ho use or )onsume su)h )ommodities- Su)h stam+8duties as those
u+on li)en)es to retail ale, (ine, and s+irituous liquors, thou*h
intended, +erha+s, to fall u+on the +rofits of the retailers, are
li0e(ise finally +aid &y the )onsumers of those liquors- Su)h
ta1es, thou*h )alled &y the same name, and le'ied &y the same
offi)ers and in the same manner (ith the stam+8duties a&o'e
mentioned u+on the transferen)e of +ro+erty, are, ho(e'er, of a
quite different nature, and fall u+on quite different funds-
ARTIC!$ III
Ta1es u+on the Wa*es of !a&our
The (a*es of the inferior )lasses of (or0men, I ha'e
endea'oured to sho( in the first &oo0, are e'ery(here ne)essarily
re*ulated &y t(o different )ir)umstan)es/ the demand for la&our,
and the ordinary or a'era*e +ri)e of +ro'isions- The demand for
la&our, a))ordin* as it ha++ens to &e either in)reasin*,
stationary, or de)linin*, or to require an in)reasin*,
stationary, or de)linin* +o+ulation, re*ulates the su&sisten)e of
the la&ourer, and determines in (hat de*ree it shall &e, either
li&eral, moderate, or s)anty- The ordinary or a'era*e +ri)e of
+ro'isions determines the quantity of money (hi)h must &e +aid to
the (or0man in order to ena&le him, one year (ith another, to
+ur)hase this li&eral, moderate, or s)anty su&sisten)e- While the
demand for la&our and the +ri)e of +ro'isions, therefore, remain
the same, a dire)t ta1 u+on the (a*es of la&our )an ha'e no other
effe)t than to raise them some(hat hi*her than the ta1- !et us
su++ose, for e1am+le, that in a +arti)ular +la)e the demand for
la&our and the +ri)e of +ro'isions (ere su)h as to render ten
shillin*s a (ee0 the ordinary (a*es of la&our, and that a ta1 of
one8fifth, or four shillin*s in the +ound, (as im+osed u+on
(a*es- If the demand for la&our and the +ri)e of +ro'isions
remained the same, it (ould still &e ne)essary that the la&ourer
should in that +la)e earn su)h a su&sisten)e as )ould &e &ou*ht
only for ten shillin*s a (ee0 free (a*es- .ut in order to lea'e
him su)h free (a*es after +ayin* su)h a ta1, the +ri)e of la&our
must in that +la)e soon rise, not to t(el'e shillin*s a (ee0
only, &ut to t(el'e and si1+en)e/ that is, in order to ena&le him
to +ay a ta1 of one8fifth, his (a*es must ne)essarily soon rise,
not one8fifth +art only, &ut one8fourth- Whate'er (as the
+ro+ortion of the ta1, the (a*es of la&our must in all )ases
rise, not only in that +ro+ortion, &ut in a hi*her +ro+ortion- If
the ta1, for e1am+le, (as one8tenth, the (a*es of la&our must
ne)essarily soon rise, not one8tenth +art only, &ut one8ei*hth-
A dire)t ta1 u+on the (a*es of la&our, therefore, thou*h the
la&ourer mi*ht +erha+s +ay it out of his hand, )ould not +ro+erly
&e said to &e e'en ad'an)ed &y him/ at least if tile demand for
la&our and the a'era*e +ri)e of +ro'isions remained the same
after the ta1 as &efore it- In all su)h )ases, not only the ta1
&ut somethin* more than the ta1 (ould in reality &e ad'an)ed &y
the +erson (ho immediately em+loyed him- The final +ayment (ould
in different )ases fall u+on different +ersons- The rise (hi)h
su)h a ta1 mi*ht o))asion in the (a*es of manufa)turin* la&our
(ould &e ad'an)ed &y the master manufa)turer, (ho (ould &oth &e
entitled and o&li*ed to )har*e it, (ith a +rofit, u+on the +ri)e
of his *oods- The final +ayment of this rise of (a*es, therefore,
to*ether (ith the additional +rofit of the master manufa)turer,
(ould fall u+on the )onsumer- The rise (hi)h su)h a ta1 mi*ht
o))asion in the (a*es of )ountry la&our (ould &e ad'an)ed &y the
farmer, (ho, in order to maintain the same num&er of la&ourers as
&efore, (ould &e o&li*ed to em+loy a *reater )a+ital- In order to
*et &a)0 this *reater )a+ital, to*ether (ith the ordinary +rofits
of sto)0, it (ould &e ne)essary that he should retain a lar*er
+ortion, or (hat )omes to the same thin*, the +ri)e of a lar*er
+ortion, of the +rodu)e of the land, and )onsequently that he
should +ay less rent to the landlord- The final +ayment of this
rise of (a*es, therefore, (ould in this )ase fall u+on the
landlord, to*ether (ith the additional +rofit of the farmer (ho
had ad'an)ed it- In all )ases a dire)t ta1 u+on the (a*es of
la&our must, in the lon*8run, o))asion &oth a *reater redu)tion
in the rent of land, and a *reater rise in the +ri)e of
manufa)tured *oods, than (ould ha'e follo(ed from the +ro+er
assessment of a sum equal to the +rodu)e of the ta1 +artly u+on
the rent of land, and +artly u+on )onsuma&le )ommodities-
If dire)t ta1es u+on the (a*es of la&our ha'e not al(ays
o))asioned a +ro+ortiona&le rise in those (a*es, it is &e)ause
they ha'e *enerally o))asioned a )onsidera&le fall in the demand
for la&our- The de)lension of industry, the de)rease of
em+loyment for the +oor, the diminution of the annual +rodu)e of
the land and la&our of the )ountry, ha'e *enerally &een the
effe)ts of su)h ta1es- In )onsequen)e of them, ho(e'er, the +ri)e
of la&our must al(ays &e hi*her than it other(ise (ould ha'e &een
in the a)tual state of the demand3 and this enhan)ement of +ri)e,
to*ether (ith the +rofit of those (ho ad'an)e it, must al(ays &e
finally +aid &y the landlords and )onsumers-
A ta1 u+on the (a*es of )ountry la&our does not raise the
+ri)e of the rude +rodu)e of land in +ro+ortion to the ta1, for
the same reason that a ta1 u+on the farmer=s +rofit does not
raise that +ri)e in that +ro+ortion-
A&surd and destru)ti'e as su)h ta1es are, ho(e'er, they ta0e
+la)e in many )ountries- In "ran)e that +art of the taille (hi)h
is )har*ed u+on the industry of (or0men and day8la&ourers in
)ountry 'illa*es is +ro+erly a ta1 of this 0ind- Their (a*es are
)om+uted a))ordin* to the )ommon rate of the distri)t in (hi)h
they reside, and that they may &e as little lia&le as +ossi&le to
any o'er)har*e, their yearly *ains are estimated at no more than
t(o hundred (or0in* days in the year- The ta1 of ea)h indi'idual
is 'aried from year to year a))ordin* to different )ir)umstan)es,
of (hi)h the )olle)tor or the )ommissary (hom the intendant
a++oints to assist him are the 2ud*es- In .ohemia, in )onsequen)e
of the alteration in the system of finan)es (hi)h (as &e*un in
17G?, a 'ery hea'y ta1 is im+osed u+on the industry of
artifi)ers- They are di'ided into four )lasses- The hi*hest )lass
+ay a hundred florins a year (hi)h, at t(o8and8t(enty +en)e
half+enny a florin, amounts to !F 7s- 6d- The se)ond )lass are
ta1ed at se'enty/ the third at fifty/ and the fourth,
)om+rehendin* artifi)ers in 'illa*es, and the lo(est )lass of
those in to(ns, at t(enty8fi'e florins-
The re)om+ense of in*enious artists and of men of li&eral
+rofessions, I ha'e endea'oured to sho( in the first &oo0,
ne)essarily 0ee+s a )ertain +ro+ortion to the emoluments of
inferior trades- A ta1 u+on this re)om+ense, therefore, )ould
ha'e no other effe)t than to raise it some(hat hi*her than in
+ro+ortion to the ta1- If it did not rise in this manner, the
in*enious arts and the li&eral +rofessions, &ein* no lon*er u+on
a le'el (ith other trades, (ould &e so mu)h deserted that they
(ould soon return to that le'el-
The emoluments of offi)es are not, li0e those of trades and
+rofessions, re*ulated &y the free )om+etition of the mar0et, and
do not, therefore, al(ays &ear a 2ust +ro+ortion to (hat the
nature of the em+loyment requires- They are, +erha+s, in most
)ountries, hi*her than it requires/ the +ersons (ho ha'e the
administration of *o'ernment &ein* *enerally dis+osed to re(ard
&oth themsel'es and their immediate de+endants rather more than
enou*h- The emoluments of offi)es, therefore, )an in most )ases
'ery (ell &ear to &e ta1ed- The +ersons, &esides, (ho en2oy
+u&li) offi)es, es+e)ially the more lu)rati'e, are in all
)ountries the o&2e)ts of *eneral en'y, and a ta1 u+on their
emoluments, e'en thou*h it should &e some(hat hi*her than u+on
any other sort of re'enue, is al(ays a 'ery +o+ular ta1- In
$n*land, for e1am+le, (hen &y the land8ta1 e'ery other sort of
re'enue (as su++osed to &e assessed at four shillin*s in the
+ound, it (as 'ery +o+ular to lay a real ta1 of fi'e shillin*s
and si1+en)e in the +ound u+on the salaries of offi)es (hi)h
e1)eeded a hundred +ounds a year, the +ensions of the youn*er
&ran)hes of the royal family, the +ay of the offi)ers of the army
and na'y, and a fe( others less o&no1ious to en'y e1)e+ted- There
are in $n*land no other dire)t ta1es u+on the (a*es of la&our-
ARTIC!$ I5 Ta1es (hi)h, it is
intended, should fall indifferently u+on e'ery
different S+e)ies of Re'enue
The ta1es (hi)h, it is intended, should fall indifferently
u+on e'ery different s+e)ies of re'enue, are )a+itation ta1es,
and ta1es u+on )onsuma&le )ommodities- These must &e +aid
indifferently from (hate'er re'enue the )ontri&utors may +ossess/
from the rent of their land, from the +rofits of their sto)0, or
from the (a*es of their la&our-
Ca+itation Ta1es
Ca+itation ta1es, if it is attem+ted to +ro+ortion them to
the fortune or re'enue of ea)h )ontri&utor, &e)ome alto*ether
ar&itrary- The state of a man=s fortune 'aries from day to day,
and (ithout an inquisition more intolera&le than any ta1, and
rene(ed at least on)e e'ery year, )an only &e *uessed at- #is
assessment, therefore, must in most )ases de+end u+on the *ood or
&ad humour of his assessors, and must, therefore, &e alto*ether
ar&itrary and un)ertain-
Ca+itation ta1es, if they are +ro+ortioned not to the
su++osed fortune, &ut to the ran0 of ea)h )ontri&utor, &e)ome
alto*ether unequal, the de*rees of fortune &ein* frequently
unequal in the same de*ree of ran0-
Su)h ta1es, therefore, if it is attem+ted to render them
equal, &e)ome alto*ether ar&itrary and un)ertain, and if it is
attem+ted to render them )ertain and not ar&itrary, &e)ome
alto*ether unequal- !et the ta1 &e li*ht or hea'y, un)ertainty is
al(ays a *reat *rie'an)e- In a li*ht ta1 a )onsidera&le de*ree of
inequality may &e su++orted/ in a hea'y one it is alto*ether
intolera&le-
In the different +oll8ta1es (hi)h too0 +la)e in $n*land
durin* the rei*n of William III the )ontri&utors (ere, the
*reater +art of them, assessed a))ordin* to the de*ree of their
ran0/ as du0es, marquisses, earls, 'is)ounts, &arons, esquires,
*entlemen, the eldest and youn*est sons of +eers, et)- All
sho+0ee+ers and tradesmen (orth more than three hundred +ounds,
that is, the &etter sort of them, (ere su&2e)t to the same
assessment, ho( *reat soe'er mi*ht &e the differen)e in their
fortunes- Their ran0 (as more )onsidered than their fortune-
Se'eral of those (ho in the first +oll8ta1 (ere rated a))ordin*
to their su++osed fortune (ere after(ards rated a))ordin* to
their ran0- Ser2eants, attorneys, and +ro)tors at la(, (ho in the
first +oll8ta1 (ere assessed at three shillin*s in the +ound of
their su++osed in)ome, (ere after(ards assessed as *entlemen- In
the assessment of a ta1 (hi)h (as not 'ery hea'y, a )onsidera&le
de*ree of inequality had &een found less insu++orta&le than any
de*ree of un)ertainty-
In the )a+itation (hi)h has &een le'ied in "ran)e (ithout
any interru+tion sin)e the &e*innin* of the +resent )entury, the
hi*hest orders of +eo+le are rated a))ordin* to their ran0 &y an
in'aria&le tariff/ the lo(er orders of +eo+le, a))ordin* to (hat
is su++osed to &e their fortune, &y an assessment (hi)h 'aries
from year to year- The offi)ers of the 0in*=s )ourt, the 2ud*es
and other offi)ers in the su+erior )ourts of 2usti)e, the
offi)ers of the troo+s, et)-, are assessed in the first manner-
The inferior ran0s of +eo+le in the +ro'in)es are assessed in the
se)ond- In "ran)e the *reat easily su&mit to a )onsidera&le
de*ree of inequality in a ta1 (hi)h, so far as it affe)ts them,
is not a 'ery hea'y one, &ut )ould not &roo0 the ar&itrary
assessment of an intendant- The inferior ran0s of +eo+le must, in
that )ountry, suffer +atiently the usa*e (hi)h their su+eriors
thin0 +ro+er to *i'e them-
In $n*land the different +oll8ta1es ne'er +rodu)ed the sum
(hi)h had &een e1+e)ted from them, or (hi)h, it (as su++osed,
they mi*ht ha'e +rodu)ed, had they &een e1a)tly le'ied- In "ran)e
the )a+itation al(ays +rodu)es the sum e1+e)ted from it- The mild
*o'ernment of $n*land, (hen it assessed the different ran0s of
+eo+le to the +oll8ta1, )ontented itself (ith (hat that
assessment ha++ened to +rodu)e, and required no )om+ensation for
the loss (hi)h the state mi*ht sustain either &y those (ho )ould
not +ay, or &y those (ho (ould not +ay 9for there (ere many
su)h:, and (ho, &y the indul*ent e1e)ution of the la(, (ere not
for)ed to +ay- The more se'ere *o'ernment of "ran)e assesses u+on
ea)h *enerality a )ertain sum, (hi)h the intendant must find as
he )an- If any +ro'in)e )om+lains of &ein* assessed too hi*h, it
may, in the assessment of ne1t year, o&tain an a&atement
+ro+ortioned to the o'er)har*e of the year &efore- .ut it must
+ay in the meantime- The intendant, in order to &e sure of
findin* the sum assessed u+on his *enerality, (as em+o(ered to
assess it in a lar*er sum that the failure or ina&ility of some
of the )ontri&utors mi*ht &e )om+ensated &y the o'er)har*e of the
rest, and till 176H the fi1ation of this sur+lus assessment (as
left alto*ether to his dis)retion- In that year, indeed, the
)oun)il assumed this +o(er to itself- In the )a+itation of the
+ro'in)es, it is o&ser'ed &y the +erfe)tly (ell8informed author
of the 4emoires u+on the im+ositions in "ran)e, the +ro+ortion
(hi)h falls u+on the no&ility, and u+on those (hose +ri'ile*es
e1em+t them from the taille, is the least )onsidera&le- The
lar*est falls u+on those su&2e)t to the taille, (ho are assessed
to the )a+itation at so mu)h a +ound of (hat they +ay to that
other ta1-
Ca+itation ta1es, so far as they are le'ied u+on the lo(er
ran0s of +eo+le, are dire)t ta1es u+on the (a*es of la&our, and
are attended (ith all the in)on'enien)es of su)h ta1es-
Ca+itation ta1es are le'ied at little e1+ense, and, (here
they are ri*orously e1a)ted, afford a 'ery sure re'enue to the
state- It is u+on this a))ount that in )ountries (here the ease,
)omfort, and se)urity of the inferior ran0s of +eo+le are little
attended to, )a+itation ta1es are 'ery )ommon- It is in *eneral,
ho(e'er, &ut a small +art of the +u&li) re'enue (hi)h, in a *reat
em+ire, has e'er &een dra(n from su)h ta1es, and the *reatest sum
(hi)h they ha'e e'er afforded mi*ht al(ays ha'e &een found in
some other (ay mu)h more )on'enient to the +eo+le-
Ta1es u+on Consuma&le Commodities
The im+ossi&ility of ta1in* the +eo+le, in +ro+ortion to
their re'enue, &y any )a+itation, seems to ha'e *i'en o))asion to
the in'ention of ta1es u+on )onsuma&le )ommodities- The state,
not 0no(in* ho( to ta1, dire)tly and +ro+ortiona&ly, the re'enue
of its su&2e)ts, endea'ours to ta1 it indire)tly &y ta1in* their
e1+ense, (hi)h, it is su++osed, (ill in most )ases &e nearly in
+ro+ortion to their re'enue- Their e1+ense is ta1ed &y ta1in* the
)onsuma&le )ommodities u+on (hi)h it is laid out-
Consuma&le )ommodities are either ne)essaries or lu1uries-
.y ne)essaries I understand not only the )ommodities (hi)h
are indis+ensa&ly ne)essary for the su++ort of life, &ut (hate'er
the )ustom of the )ountry renders it inde)ent for )redita&le
+eo+le, e'en of the lo(est order, to &e (ithout- A linen shirt,
for e1am+le, is, stri)tly s+ea0in*, not a ne)essary of life- The
6ree0s and Romans li'ed, I su++ose, 'ery )omforta&ly thou*h they
had no linen- .ut in the +resent times, throu*h the *reater +art
of $uro+e, a )redita&le day8la&ourer (ould &e ashamed to a++ear
in +u&li) (ithout a linen shirt, the (ant of (hi)h (ould &e
su++osed to denote that dis*ra)eful de*ree of +o'erty (hi)h, it
is +resumed, no&ody )an (ell fall into (ithout e1treme &ad
)ondu)t- Custom, in the same manner, has rendered leather shoes a
ne)essary of life in $n*land- The +oorest )redita&le +erson of
either se1 (ould &e ashamed to a++ear in +u&li) (ithout them- In
S)otland, )ustom has rendered them a ne)essary of life to the
lo(est order of men/ &ut not to the same order of (omen, (ho may,
(ithout any dis)redit, (al0 a&out &arefooted- In "ran)e they are
ne)essaries neither to men nor to (omen, the lo(est ran0 of &oth
se1es a++earin* there +u&li)ly, (ithout any dis)redit, sometimes
in (ooden shoes, and sometimes &arefooted- Under ne)essaries,
therefore, I )om+rehend not only those thin*s (hi)h nature, &ut
those thin*s (hi)h the esta&lished rules of de)en)y ha'e rendered
ne)essary to the lo(est ran0 of +eo+le- All other thin*s I )all
lu1uries, (ithout meanin* &y this a++ellation to thro( the
smallest de*ree of re+roa)h u+on the tem+erate use of them- .eer
and ale, for e1am+le, in 6reat .ritain, and (ine, e'en in the
(ine )ountries, I )all lu1uries- A man of any ran0 may, (ithout
any re+roa)h, a&stain totally from tastin* su)h liquors- Nature
does not render them ne)essary for the su++ort of life, and
)ustom no(here renders it inde)ent to li'e (ithout them-
As the (a*es of la&our are e'ery(here re*ulated, +artly &y
the demand for it, and +artly &y the a'era*e +ri)e of the
ne)essary arti)les of su&sisten)e, (hate'er raises this a'era*e
+ri)e must ne)essarily raise those (a*es so that the la&ourer may
still &e a&le to +ur)hase that quantity of those ne)essary
arti)les (hi)h the state of the demand for la&our, (hether
in)reasin*, stationary, or de)linin*, requires that he should
ha'e- A ta1 u+on those arti)les ne)essarily raises their +ri)e
some(hat hi*her than the amount of the ta1, &e)ause the dealer,
(ho ad'an)es the ta1, must *enerally *et it &a)0 (ith a +rofit-
Su)h a ta1 must, therefore, o))asion a rise in the (a*es of
la&our +ro+ortiona&le to this rise of +ri)e-
It is thus that a ta1 u+on the ne)essaries of life o+erates
e1a)tly in the same manner as a dire)t ta1 u+on the (a*es of
la&our- The la&ourer, thou*h he may +ay it out of his hand,
)annot, for any )onsidera&le time at least, &e +ro+erly said e'en
to ad'an)e it- It must al(ays in the lon*8run &e ad'an)ed to him
&y his immediate em+loyer in the ad'an)ed rate of his (a*es- #is
em+loyer, if he is a manufa)turer, (ill )har*e u+on the +ri)e of
his *oods this rise of (a*es, to*ether (ith a +rofit/ so that the
final +ayment of the ta1, to*ether (ith this o'er)har*e, (ill
fall u+on the )onsumer- If his em+loyer is a farmer, the final
+ayment, to*ether (ith a li0e o'er)har*e, (ill fall u+on the rent
of the landlord-
It is other(ise (ith ta1es u+on (hat I )all lu1uries, e'en
u+on those of the +oor- The rise in the +ri)e of the ta1ed
)ommodities (ill not ne)essarily o))asion any rise in the (a*es
of la&our- A ta1 u+on to&a))o, for e1am+le, thou*h a lu1ury of
the +oor as (ell as of the ri)h, (ill not raise (a*es- Thou*h it
is ta1ed in $n*land at three times, and in "ran)e at fifteen
times its ori*inal +ri)e, those hi*h duties seem to ha'e no
effe)t u+on the (a*es of la&our- The same thin* may &e said of
the ta1es u+on tea and su*ar, (hi)h in $n*land and #olland ha'e
&e)ome lu1uries of the lo(est ran0s of +eo+le, and of those u+on
)ho)olate, (hi)h in S+ain is said to ha'e &e)ome so- The
different ta1es (hi)h in 6reat .ritain ha'e in the )ourse of the
+resent )entury &een im+osed u+on s+irituous liquors are not
su++osed to ha'e had any effe)t u+on the (a*es of la&our- The
rise in the +ri)e of +orter, o))asioned &y an additional ta1 of
three shillin*s u+on the &arrel of stron* &eer, has not raised
the (a*es of )ommon la&our in !ondon- These (ere a&out ei*hteen
+en)e and t(enty +en)e a day &efore the ta1, and they are not
more no(-
The hi*h +ri)e of su)h )ommodities does not ne)essarily
diminish the a&ility of the inferior ran0s of +eo+le to &rin* u+
families- U+on the so&er and industrious +oor, ta1es u+on su)h
)ommodities a)t as sum+tuary la(s, and dis+ose them either to
moderate, or to refrain alto*ether from the use of su+erfluities
(hi)h they )an no lon*er easily afford- Their a&ility to &rin* u+
families, in )onsequen)e of this for)ed fru*ality, instead of
&ein* diminished, is frequently, +erha+s, in)reased &y the ta1-
It is the so&er and industrious +oor (ho *enerally &rin* u+ the
most numerous families, and (ho +rin)i+ally su++ly the demand for
useful la&our- All the +oor, indeed, are not so&er and
industrious, and the dissolute and disorderly mi*ht )ontinue to
indul*e themsel'es in the use of su)h )ommodities after this rise
of +ri)e in the same manner as &efore (ithout re*ardin* the
distress (hi)h this indul*en)e mi*ht &rin* u+on their families-
Su)h disorderly +ersons, ho(e'er, seldom rear u+ numerous
families, their )hildren *enerally +erishin* from ne*le)t,
mismana*ement, and the s)antiness or un(holesomeness of their
food- If &y the stren*th of their )onstitution they sur'i'e the
hardshi+s to (hi)h the &ad )ondu)t of their +arents e1+oses them,
yet the e1am+le of that &ad )ondu)t )ommonly )orru+ts their
morals, so that, instead of &ein* useful to so)iety &y their
industry, they &e)ome +u&li) nuisan)es &y their 'i)es and
disorders- Thou*h the ad'an)ed +ri)e of the lu1uries of the +oor,
therefore, mi*ht in)rease some(hat the distress of su)h
disorderly families, and there&y diminish some(hat their a&ility
to &rin* u+ )hildren, it (ould not +ro&a&ly diminish mu)h the
useful +o+ulation of the )ountry-
Any rise in the a'era*e +ri)e of ne)essaries, unless it is
)om+ensated &y a +ro+ortiona&le rise in the (a*es of la&our, must
ne)essarily diminish more or less the a&ility of the +oor to
&rin* u+ numerous families, and )onsequently to su++ly the demand
for useful la&our, (hate'er may &e the state of that demand,
(hether in)reasin*, stationary, or de)linin*, or su)h as requires
an in)reasin*, stationary, or de)linin* +o+ulation-
Ta1es u+on lu1uries ha'e no tenden)y to raise the +ri)e of
any other )ommodities e1)e+t that of the )ommodities ta1ed- Ta1es
u+on ne)essaries, &y raisin* the (a*es of la&our, ne)essarily
tend to raise the +ri)e of all manufa)tures, and )onsequently to
diminish the e1tent of their sale and )onsum+tion- Ta1es u+on
lu1uries are finally +aid &y the )onsumers of the )ommodities
ta1ed (ithout any retri&ution- They fall indifferently u+on e'ery
s+e)ies of re'enue, the (a*es of la&our, the +rofits of sto)0,
and the rent of land- Ta1es u+on ne)essaries, so far as they
affe)t the la&ourin* +oor, are finally +aid, +artly &y landlords
in the diminished rent of their lands, and +artly &y ri)h
)onsumers, (hether landlords or others, in the ad'an)ed +ri)e of
manufa)tured *oods, and al(ays (ith a )onsidera&le o'er)har*e-
The ad'an)ed +ri)e of su)h manufa)tures as are real ne)essaries
of life, and are destined for the )onsum+tion of the +oor, of
)oarse (oollens, for e1am+le, must &e )om+ensated to the +oor &y
a further ad'an)ement of their (a*es- The middlin* and su+erior
ran0s of +eo+le, if they understand their o(n interest, ou*ht
al(ays to o++ose all ta1es u+on the ne)essaries of life, as (ell
as all dire)t ta1es u+on the (a*es of la&our- The final +ayment
of &oth the one and the other falls alto*ether u+on themsel'es,
and al(ays (ith a )onsidera&le o'er)har*e- They fall hea'iest
u+on the landlords, (ho al(ays +ay in a dou&le )a+a)ity/ in that
of landlords &y the redu)tion of their rent, and in that of ri)h
)onsumers &y the in)rease of their e1+ense- The o&ser'ation of
Sir 4atthe( De)0er, that )ertain ta1es are, in the +ri)e of
)ertain *oods, sometimes re+eated and a))umulated four or fi'e
times, is +erfe)tly 2ust (ith re*ard to ta1es u+on the
ne)essaries of life- In the +ri)e of leather, for e1am+le, you
must +ay not only for the ta1 u+on the leather of your o(n shoes,
&ut for a +art of that u+on those of the shoema0er and the
tanner- 7ou must +ay, too, for the ta1 u+on the salt, u+on the
soa+, and u+on the )andles (hi)h those (or0men )onsume (hile
em+loyed in your ser'i)e, and for the ta1 u+on the leather (hi)h
the salt8ma0er, the soa+8ma0er, and the )andle8ma0er )onsume
(hile em+loyed in their ser'i)e-
In 6reat .ritain, the +rin)i+al ta1es u+on the ne)essaries
of life are those u+on the four )ommodities 2ust no( mentioned,
salt, leather, soa+, and )andles-
Salt is a 'ery an)ient and a 'ery uni'ersal su&2e)t of
ta1ation- It (as ta1ed amon* the Romans, and it is so at +resent
in, I &elie'e, e'ery +art of $uro+e- The quantity annually
)onsumed &y any indi'idual is so small, and may &e +ur)hased so
*radually, that no&ody, it seems to ha'e &een thou*ht, )ould feel
'ery sensi&ly e'en a +retty hea'y ta1 u+on it- It is in $n*land
ta1ed at three shillin*s and four+en)e a &ushel8 a&out three
times the ori*inal +ri)e of the )ommodity- In some other
)ountries the ta1 is still hi*her- !eather is a real ne)essary of
life- The use of linen renders soa+ su)h- In )ountries (here the
(inter ni*hts are lon*, )andles are a ne)essary instrument of
trade- !eather and soa+ are in 6reat .ritain ta1ed at three
half+en)e a +ound, )andles at a +enny/ ta1es (hi)h, u+on the
ori*inal +ri)e of leather, may amount to a&out ei*ht or ten +er
)ent/ u+on that of soa+ to a&out t(enty or fi'e8and8t(enty +er
)ent/ and u+on that of )andles to a&out fourteen or fifteen +er
)ent/ ta1es (hi)h, thou*h li*hter than that u+on salt, are still
'ery hea'y- As all those four )ommodities are real ne)essaries of
life, su)h hea'y ta1es u+on them must in)rease some(hat the
e1+ense of the so&er and industrious +oor, and must )onsequently
raise more or less the (a*es of their la&our-
In a )ountry (here the (inters are so )old as in 6reat
.ritain, fuel is, durin* that season, in the stri)test sense of
the (ord, a ne)essary of life, not only for the +ur+ose of
dressin* 'i)tuals, &ut for the )omforta&le su&sisten)e of many
different sorts of (or0men (ho (or0 (ithin doors/ and )oals are
the )hea+est of all fuel- The +ri)e of fuel has so im+ortant an
influen)e u+on that of la&our that all o'er 6reat .ritain
manufa)tures ha'e )onfined themsel'es +rin)i+ally to the )oal
)ountries, other +arts of the )ountry, on a))ount of the hi*h
+ri)e of this ne)essary arti)le, not &ein* a&le to (or0 so )hea+-
In some manufa)tures, &esides, )oal is a ne)essary instrument of
trade, as in those of *lass, iron, and all other metals- If a
&ounty )ould in any )ase &e reasona&le, it mi*ht +erha+s &e so
u+on the trans+ortation of )oals from those +arts of the )ountry
in (hi)h they a&ound to those in (hi)h they are (anted- .ut the
le*islature, instead of a &ounty, has im+osed a ta1 of three
shillin*s and three+en)e a ton u+on )oal )arried )oast(ays, (hi)h
u+on most sorts of )oal is more than si1ty +er )ent of the
ori*inal +ri)e at the )oal8+it- Coals )arried either &y land or
&y inland na'i*ation +ay no duty- Where they are naturally )hea+,
they are )onsumed duty free3 (here they are naturally dear, they
are loaded (ith a hea'y duty-
Su)h ta1es, thou*h they raise the +ri)e of su&sisten)e, and
)onsequently the (a*es of la&our, yet they afford a )onsidera&le
re'enue to *o'ernment (hi)h it mi*ht not &e easy to find in any
other (ay- There may, therefore, &e *ood reasons for )ontinuin*
them- The &ounty u+on the e1+ortation of )orn, so far as it tends
in the a)tual state of tilla*e to raise the +ri)e of that
ne)essary arti)le, +rodu)es all the li0e &ad effe)ts, and instead
of affordin* any re'enue, frequently o))asions a 'ery *reat
e1+ense to *o'ernment- The hi*h duties u+on the im+ortation of
forei*n )orn, (hi)h in years of moderate +lenty amount to a
+rohi&ition, and the a&solute +rohi&ition of the im+ortation
either of li'e )attle or of salt +ro'isions, (hi)h ta0es +la)e in
the ordinary state of the la(, and (hi)h, on a))ount of the
s)ar)ity, is at +resent sus+ended for a limited time (ith re*ard
to Ireland and the .ritish +lantations, ha'e all the &ad effe)ts
of ta1es u+on the ne)essaries of life, and +rodu)e no re'enue to
*o'ernment- Nothin* seems ne)essary for the re+eal of su)h
re*ulations &ut to )on'in)e the +u&li) of the futility of that
system in )onsequen)e of (hi)h they ha'e &een esta&lished-
Ta1es u+on the ne)essaries of life are mu)h hi*her in many
other )ountries than in 6reat .ritain- Duties u+on flour and meal
(hen *round at the mill, and u+on &read (hen &a0ed at the o'en,
ta0e +la)e in many )ountries- In #olland the money +ri)e of the
&read )onsumed in to(ns is su++osed to &e dou&led &y means of
su)h ta1es- In lieu of a +art of them, the +eo+le (ho li'e in the
)ountry +ay e'ery year so mu)h a head a))ordin* to the sort of
&read they are su++osed to )onsume- Those (ho )onsume (heaten
&read +ay three *uilders fifteen sti'ers8 a&out si1 shillin*s and
nine+en)e half+enny- These, and some other ta1es of the same
0ind, &y raisin* the +ri)e of la&our, are said to ha'e ruined the
*reater +art of the manufa)tures of #olland- Similar ta1es,
thou*h not quite so hea'y, ta0e +la)e in the 4ilanese, in the
states of 6enoa, in the du)hy of 4odena, in the du)hies of arma,
la)entia, and 6uastalla, and in the e))lesiasti)al state- A
"ren)h author of some note has +ro+osed to reform the finan)es of
his )ountry &y su&stitutin* in the room of the *reater +art of
other ta1es this most ruinous of all ta1es- There is nothin* so
a&surd, says Ci)ero, (hi)h has not sometimes &een asserted &y
+hiloso+hers-
Ta1es u+on &ut)hers= meat are still more )ommon than those
u+on &read- It may indeed &e dou&ted (hether &ut)hers= meat is
any(here a ne)essary of life- 6rain and other 'e*eta&les, (ith
the hel+ of mil0, )heese, and &utter, or oil (here &utter is not
to &e had, it is 0no(n from e1+erien)e, )an, (ithout any
&ut)hers= meat, afford the most +lentiful, the most (holesome,
the most nourishin*, and the most in'i*oratin* diet- De)en)y
no(here requires that any man should eat &ut)hers= meat, as it in
most +la)es requires that he should (ear a linen shirt or a +air
of leather shoes-
Consuma&le )ommodities, (hether ne)essaries or lu1uries, may
&e ta1ed in t(o different (ays- The )onsumer may either +ay an
annual sum on a))ount of his usin* or )onsumin* *oods of a
)ertain 0ind, or the *oods may &e ta1ed (hile they remain in the
hands of the dealer, and &efore they are deli'ered to the
)onsumer- The )onsuma&le *oods (hi)h last a )onsidera&le time
&efore they are )onsumed alto*ether are most +ro+erly ta1ed in
the one (ay/ those of (hi)h the )onsum+tion is either immediate
or more s+eedy, in the other- The )oa)h8ta1 and +late8ta1 are
e1am+les of the former method of im+osin*3 the *reater +art of
the other duties of e1)ise and )ustoms, of the latter-
A )oa)h may, (ith *ood mana*ement, last ten or t(el'e years-
It mi*ht &e ta1ed, on)e for all, &efore it )omes out of the hands
of the )oa)hma0er- .ut it is )ertainly more )on'enient for the
&uyer to +ay four +ounds a year for the +ri'ile*e of 0ee+in* a
)oa)h than to +ay all at on)e forty or forty8ei*ht +ounds
additional +ri)e to the )oa)hma0er, or a sum equi'alent to (hat
the ta1 is li0ely to )ost him durin* the time he uses the same
)oa)h- A ser'i)e of +late, in the same manner, may last more than
a )entury- It is )ertainly easier for the )onsumer to +ay fi'e
shillin*s a year for e'ery hundred oun)es of +late, near one +er
)ent of the 'alue, than to redeem this lon* annuity at
fi'e8and8t(enty or thirty years= +ur)hase, (hi)h (ould enhan)e
the +ri)e at least fi'e8and8t(enty or thirty +er )ent- The
different ta1es (hi)h affe)t houses are )ertainly more
)on'eniently +aid &y moderate annual +ayments than &y a hea'y ta1
of equal 'alue u+on the first &uildin* or sale of the house-
It (as the (ell80no(n +ro+osal of Sir 4atthe( De)0er that
all )ommodities, e'en those of (hi)h the )onsum+tion is either
immediate or 'ery s+eedy, should &e ta1ed in this manner, the
dealer ad'an)in* nothin*, &ut the )onsumer +ayin* a )ertain
annual sum for the li)en)e to )onsume )ertain *oods- The o&2e)t
of his s)heme (as to +romote all the different &ran)hes of
forei*n trade, +arti)ularly the )arryin* trade, &y ta0in* a(ay
all duties u+on im+ortation and e1+ortation, and there&y ena&lin*
the mer)hant to em+loy his (hole )a+ital and )redit in the
+ur)hase of *oods and the frei*ht of shi+s, no +art of either
&ein* di'erted to(ards the ad'an)in* of ta1es- The +ro2e)t,
ho(e'er, of ta1in*, in this manner, *oods of immediate or s+eedy
)onsum+tion seems lia&le to the four follo(in* 'ery im+ortant
o&2e)tions- "irst, the ta1 (ould &e more unequal, or not so (ell
+ro+ortioned to the e1+ense and )onsum+tion of the different
)ontri&utors as in the (ay in (hi)h it is )ommonly im+osed- The
ta1es u+on ale, (ine, and s+irituous liquors, (hi)h are ad'an)ed
&y the dealers, are finally +aid &y the different )onsumers
e1a)tly in +ro+ortion to their res+e)ti'e )onsum+tion- .ut if the
ta1 (ere to &e +aid &y +ur)hasin* a li)en)e to drin0 those
liquors, the so&er (ould, in +ro+ortion to his )onsum+tion, &e
ta1ed mu)h more hea'ily than the drun0en )onsumer- A family (hi)h
e1er)ised *reat hos+itality (ould &e ta1ed mu)h more li*htly than
one (ho entertained fe(er *uests- Se)ondly, this mode of
ta1ation, &y +ayin* for an annual, half8yearly, or quarterly
li)en)e to )onsume )ertain *oods, (ould diminish 'ery mu)h one of
the +rin)i+al )on'enien)es of ta1es u+on *oods of s+eedy
)onsum+tion the +ie)emeal +ayment- In the +ri)e of three+en)e
half+enny, (hi)h is at +resent +aid for a +ot of +orter, the
different ta1es u+on malt, ho+s, and &eer, to*ether (ith the
e1traordinary +rofit (hi)h the &re(er )har*es for ha'in* ad'an)ed
them, may +erha+s amount to a&out three half+en)e- If a (or0man
)an )on'eniently s+are those three half+en)e, he &uys a +ot of
+orter- If he )annot, he )ontents himself (ith a +int, and, as a
+enny sa'ed is a +enny *ot, he thus *ains a farthin* &y his
tem+eran)e- #e +ays the ta1 +ie)emeal as he )an afford to +ay it,
and (hen he )an afford to +ay it, and e'ery a)t of +ayment is
+erfe)tly 'oluntary, and (hat he )an a'oid if he )hooses to do
so- Thirdly, su)h ta1es (ould o+erate less as sum+tuary la(s-
When the li)en)e (as on)e +ur)hased, (hether the +ur)haser dran0
mu)h or dran0 little, his ta1 (ould &e the same- "ourthly, if a
(or0man (ere to +ay all at on)e, &y yearly, half8yearly, or
quarterly +ayments, a ta1 equal to (hat he at +resent +ays, (ith
little or no in)on'enien)y, u+on all the different +ots and +ints
of +orter (hi)h he drin0s in any su)h +eriod of time, the sum
mi*ht frequently distress him 'ery mu)h- This mode of ta1ation,
therefore, it seems e'ident, )ould ne'er, (ithout the most
*rie'ous o++ression, +rodu)e a re'enue nearly equal to (hat is
deri'ed from the +resent mode (ithout any o++ression- In se'eral
)ountries, ho(e'er, )ommodities of an immediate or 'ery s+eedy
)onsum+tion are ta1ed in this manner- In #olland +eo+le +ay so
mu)h a head for a li)en)e to drin0 tea- I ha'e already mentioned
a ta1 u+on &read, (hi)h, so far as it is )onsumed in farm8houses
and )ountry 'illa*es, is there le'ied in the same manner-
The duties of e1)ise are im+osed &riefly u+on *oods of home
+rodu)e destined for home )onsum+tion- They are im+osed only u+on
a fe( sorts of *oods of the most *eneral use- There )an ne'er &e
any dou&t either )on)ernin* the *oods (hi)h are su&2e)t to those
duties, or )on)ernin* the +arti)ular duty (hi)h ea)h s+e)ies of
*oods is su&2e)t to- They fall almost alto*ether u+on (hat I )all
lu1uries, e1)e+tin* al(ays the four duties a&o'e mentioned, u+on
salt soa+, leather, )andles, and, +erha+s, that u+on *reen *lass-
The duties of )ustoms are mu)h more an)ient than those of
e1)ise- They seem to ha'e &een )alled )ustoms as denotin*
)ustomary +ayments (hi)h had &een in use from time immemorial-
They a++ear to ha'e &een ori*inally )onsidered as ta1es u+on the
+rofits of mer)hants- Durin* the &ar&arous times of feudal
anar)hy, mer)hants, li0e all the other inha&itants of &ur*hs,
(ere )onsidered as little &etter than eman)i+ated &ondmen, (hose
+ersons (ere des+ised, and (hose *ains (ere en'ied- The *reat
no&ility, (ho had )onsented that the 0in* should talla*e the
+rofits of their o(n tenants, (ere not un(illin* that he should
talla*e li0e(ise those of an order of men (hom it (as mu)h less
their interest to +rote)t- In those i*norant times it (as not
understood that the +rofits of mer)hants are a su&2e)t not
ta1a&le dire)tly, or that the final +ayment of all su)h ta1es
must fall, (ith a )onsidera&le o'er)har*e, u+on the )onsumers-
The *ains of alien mer)hants (ere loo0ed u+on more
unfa'oura&ly than those of $n*lish mer)hants- It (as natural,
therefore, that those of the former should &e ta1ed more hea'ily
than those of the latter- This distin)tion &et(een the duties
u+on aliens and those u+on $n*lish mer)hants, (hi)h (as &e*un
from i*noran)e, has &een )ontinued from the s+irit of mono+oly,
or in order to *i'e our o(n mer)hants an ad'anta*e &oth in the
home and in the forei*n mar0et-
With this distin)tion, the an)ient duties of )ustoms (ere
im+osed equally u+on all sorts of *oods, ne)essaries as (ell as
lu1uries, *oods e1+orted as (ell as *oods im+orted- Why should
the dealers in one sort of *oods, it seems to ha'e &een thou*ht,
&e more fa'oured than those in another> or (hy should the
mer)hant e1+orter &e more fa'oured than the mer)hant im+orter>
The an)ient )ustoms (ere di'ided into three &ran)hes- The
first, and +erha+s the most an)ient of all those duties, (as that
u+on (ool and leather- It seems to ha'e &een )hiefly or
alto*ether an e1+ortation duty- When the (oollen manufa)ture )ame
to &e esta&lished in $n*land, lest the 0in* should lose any +art
of his )ustoms u+on (ool &y the e1+ortation of (oollen )loths, a
li0e duty (as im+osed u+on them- The other t(o &ran)hes (ere,
first, a duty u+on (ine, (hi)h, &ein* im+osed at so mu)h a ton,
(as )alled a tonna*e, and, se)ondly, a duty u+on all other *oods,
(hi)h, &ein* im+osed at so mu)h a +ound of their su++osed 'alue,
(as )alled a +ounda*e- In the forty8se'enth year of $d(ard III a
duty of si1+en)e in the +ound (as im+osed u+on all *oods e1+orted
and im+orted, e1)e+t (ools, (ool8fells, leather, and (ines, (hi)h
(ere su&2e)t to +arti)ular duties- In the fourteenth of Ri)hard
II this duty (as raised to one shillin* in the +ound, &ut three
years after(ards it (as a*ain redu)ed to si1+en)e- It (as raised
to ei*ht+en)e in the se)ond year of #enry I5, and in the fourth
year of the same +rin)e to one shillin*- "rom this time to the
ninth year of William III this duty )ontinued at one shillin* in
the +ound- The duties of tonna*e and +ounda*e (ere *enerally
*ranted to the 0in* &y one and the same A)t of arliament, and
(ere )alled the Su&sidy of Tonna*e and ounda*e- The Su&sidy of
ounda*e ha'in* )ontinued for so lon* a time at one shinin* in
the +ound, or at fi'e +er )ent, a su&sidy )ame, in the lan*ua*e
of the )ustoms, to denote a *eneral duty of this 0ind of fi'e +er
)ent- This su&sidy, (hi)h is no( )alled the Old Su&sidy, still
)ontinues to &e le'ied a))ordin* to the &oo0 of rates esta&lished
in the t(elfth of Charles II- The method of as)ertainin*, &y a
&oo0 of rates, the 'alue of *oods su&2e)t to this duty is said to
&e older than the time of Aames I- The Ne( Su&sidy im+osed &y the
ninth and tenth of William III (as an additional fi'e +er )ent
u+on the *reater +art of *oods- The One8third and the T(o8third
Su&sidy made u+ &et(een them another fi'e +er )ent of (hi)h they
(ere +ro+ortiona&le +arts- The Su&sidy of 17G7 made a fourth fi'e
+er )ent u+on the *reater +art of *oods/ and that of 17HF a fifth
u+on some +arti)ular sorts of *oods- .esides those fi'e
su&sidies, a *reat 'ariety of other duties ha'e o))asionally &een
im+osed u+on +arti)ular sorts of *oods, in order sometimes to
relie'e the e1i*en)ies of the state, and sometimes to re*ulate
the trade of the )ountry a))ordin* to the +rin)i+les of the
mer)antile system-
That system has )ome *radually more and more into fashion-
The Old Su&sidy (as im+osed indifferently u+on e1+ortation as
(ell as im+ortation- The four su&sequent su&sidies, as (ell as
the other duties (hi)h ha'e &een o))asionally im+osed u+on
+arti)ular sorts of *oods ha'e, (ith a fe( e1)e+tions, &een laid
alto*ether u+on im+ortation- The *reater +art of the an)ient
duties (hi)h had &een im+osed u+on the e1+ortation of the *oods
of home +rodu)e and manufa)ture ha'e either &een li*htened or
ta0en a(ay alto*ether- In most )ases they ha'e &een ta0en a(ay-
.ounties ha'e e'en &een *i'en u+on the e1+ortation of some of
them- Dra(&a)0s too, sometimes of the (hole, and, in most )ases,
of a +art of the duties (hi)h are +aid u+on the im+ortation of
forei*n *oods, ha'e &een *ranted u+on their e1+ortation- Only
half the duties im+osed &y the Old Su&sidy u+on im+ortation are
dra(n &a)0 u+on e1+ortation3 &ut the (hole of those im+osed &y
the latter su&sidies and other im+osts are, u+on the *reater +art
of *oods, dra(n &a)0 in the same manner- This *ro(in* fa'our of
e1+ortation, and dis)oura*ement of im+ortation, ha'e suffered
only a fe( e1)e+tions, (hi)h )hiefly )on)ern the materials of
some manufa)tures- These our mer)hants and manufa)turers are
(illin* should )ome as )hea+ as +ossi&le to themsel'es, and as
dear as +ossi&le to their ri'als and )om+etitors in other
)ountries- "orei*n materials are, u+on this a))ount, sometimes
allo(ed to &e im+orted duty free/ S+anish (ool, for e1am+le,
fla1, and ra( linen yarn- The e1+ortation of the materials of
home +rodu)e, and of those (hi)h are the +arti)ular +rodu)e of
our )olonies, has sometimes &een +rohi&ited, and sometimes
su&2e)ted to hi*her duties- The e1+ortation of $n*lish (ool has
&een +rohi&ited- That of &ea'er s0ins, of &ea'er (ool, and of *um
Sene*a has &een su&2e)ted to hi*her duties- 6reat .ritain, &y the
)onquest of Canada and Sene*al, ha'in* *ot almost the mono+oly of
those )ommodities-
That the mer)antile system has not &een 'ery fa'oura&le to
the re'enue of the *reat &ody of the +eo+le, to the annual
+rodu)e of the land and la&our of the )ountry, I ha'e endea'oured
to sho( in the fourth &oo0 of this Inquiry- It seems not to ha'e
&een more fa'oura&le to the re'enue of the so'erei*n, so far at
least as that re'enue de+ends u+on the duties of )ustoms-
In )onsequen)e of that system, the im+ortation of se'eral
sorts of *oods has &een +rohi&ited alto*ether- This +rohi&ition
has in some )ases entirely +re'ented, and in others has 'ery mu)h
diminished the im+ortation of those )ommodities &y redu)in* the
im+orters to the ne)essity of smu**lin*- It has entirely
+re'ented the im+ortation of forei*n (oollens, and it has 'ery
mu)h diminished that of forei*n sil0s and 'el'ets- In &oth )ases
it has entirely annihilated the re'enue of )ustoms (hi)h mi*ht
ha'e &een le'ied u+on su)h im+ortation-
The hi*h duties (hi)h ha'e &een im+osed u+on the im+ortation
of many different sorts of forei*n *oods, in order to dis)oura*e
their )onsum+tion in 6reat .ritain, ha'e in many )ases ser'ed
only to en)oura*e smu**lin*, and in all )ases ha'e redu)ed the
re'enue of the )ustoms &elo( (hat more moderate duties (ould ha'e
afforded- The sayin* of Dr- S(ift, that in the arithmeti) of the
)ustoms t(o and t(o, instead of ma0in* four, ma0e sometimes only
one, holds +erfe)tly true (ith re*ard to su)h hea'y duties (hi)h
ne'er )ould ha'e &een im+osed had not the mer)antile system
tau*ht us, in many )ases, to em+loy ta1ation as an instrument,
not of re'enue, &ut of mono+oly-
The &ounties (hi)h are sometimes *i'en u+on the e1+ortation
of home +rodu)e and manufa)tures, and the dra(&a)0s (hi)h are
+aid u+on the re8e1+ortation of the *reater +art of forei*n
*oods, ha'e *i'en o))asion to many frauds, and to a s+e)ies of
smu**lin* more destru)ti'e of the +u&li) re'enue than any other-
In order to o&tain the &ounty or dra(&a)0, the *oods, it is (ell
0no(n, are sometimes shi++ed and sent to sea, &ut soon after(ards
)landestinely relanded in some other +art of the )ountry- The
defal)ation of the re'enue of )ustoms o))asioned &y the &ounties
and dra(&a)0s, of (hi)h a *reat +art are o&tained fraudulently,
is 'ery *reat- The *ross +rodu)e of the )ustoms in the year (hi)h
ended on the Hth of Aanuary 17HH amounted to !H,C6?,CCC- The
&ounties (hi)h (ere +aid out of this re'enue, thou*h in that year
there (as no &ounty u+on )orn, amounted to !167,?CC- The
dra(&a)0s (hi)h (ere +aid u+on de&entures and )ertifi)ates, to
!E,1H6,?CC- .ounties and dra(&a)0s to*ether amounted to
!E,BEG,6CC- In )onsequen)e of these dedu)tions the re'enue of the
)ustoms amounted only to !E,7GB,GCC3 from (hi)h, dedu)tin*
!E?7,FCC for the e1+ense of mana*ement in salaries and other
in)idents, the net re'enue of the )ustoms for that year )omes out
to &e !E,GHH,HCC- The e1+ense of mana*ement amounts in this
manner to &et(een fi'e and si1 +er )ent u+on the *ross re'enue of
the )ustoms, and to somethin* more than ten +er )ent u+on (hat
remains of that re'enue after dedu)tin* (hat is +aid a(ay in
&ounties and dra(&a)0s-
#ea'y duties &ein* im+osed u+on almost all *oods im+orted,
our mer)hant im+orters smu**le as mu)h and ma0e entry of as
little as they )an- Our mer)hant e1+orters, on the )ontrary, ma0e
entry of more than they e1+ort/ sometimes out of 'anity, and to
+ass for *reat dealers in *oods (hi)h +ay no duty, and sometimes
to *ain a &ounty or a dra(&a)0- Our e1+orts, in )onsequen)e of
these different frauds, a++ear u+on the )ustomhouse &oo0s *reatly
to o'er&alan)e our im+orts, to the uns+ea0a&le )omfort of those
+oliti)ians (ho measure the national +ros+erity &y (hat they )all
the &alan)e of trade-
All *oods im+orted, unless +arti)ularly e1em+ted, and su)h
e1em+tions are not 'ery numerous, are lia&le to some duties of
)ustoms- If any *oods are im+orted not mentioned in the &oo0 of
rates, they are ta1ed at Gs- F FDECd- for e'ery t(enty shillin*s
'alue, a))ordin* to the oath of the im+orter, that is, nearly at
fi'e su&sidies, or fi'e +ounda*e duties- The &oo0 of rates is
e1tremely )om+rehensi'e, and enumerates a *reat 'ariety of
arti)les, many of them little used, and therefore not (ell 0no(n-
It is u+on this a))ount frequently un)ertain under (hat arti)le a
+arti)ular sort of *oods ou*ht to &e )lassed, and )onsequently
(hat duty they ou*ht to +ay- 4ista0es (ith re*ard to this
sometimes ruin the )ustom8house offi)er, and frequently o))asion
mu)h trou&le, e1+ense, and 'e1ation to the im+orter- In +oint of
+ers+i)uity, +re)ision, and distin)tness, therefore, the duties
of )ustoms are mu)h more inferior to those of e1)ise-
In order that the *reater +art of the mem&ers of any so)iety
should )ontri&ute to the +u&li) re'enue in +ro+ortion to their
res+e)ti'e e1+ense, it does not seem ne)essary that e'ery sin*le
arti)le of that e1+ense should &e ta1ed- The re'enue (hi)h is
le'ied &y the duties of e1)ise is su++osed to fall as equally
u+on the )ontri&utors as that (hi)h is le'ied &y the duties of
)ustoms, and the duties of e1)ise are im+osed u+on a fe( arti)les
only of the most *eneral use and )onsum+tion- It has &een the
o+inion of many +eo+le that, &y +ro+er mana*ement, the duties of
)ustoms mi*ht li0e(ise, (ithout any loss to the +u&li) re'enue,
and (ith *reat ad'anta*e to forei*n trade, &e )onfined to a fe(
arti)les only-
The forei*n arti)les of the most *eneral use and )onsum+tion
in 6reat .ritain seem at +resent to )onsist )hiefly in forei*n
(ines and &randies/ in some of the +rodu)tions of Ameri)a and the
West Indies8 su*ar, rum, to&a))o, )o)oanuts, et)-/ and in some of
those of the $ast Indies8 tea, )offee, )hina8(are, s+i)eries of
all 0inds, se'eral sorts of +ie)e8*oods, et)- These different
arti)les afford, +erha+s, at +resent, the *reater +art of the
re'enue (hi)h is dra(n from the duties of )ustoms- The ta1es
(hi)h at +resent su&sist u+on forei*n manufa)tures, if you e1)e+t
those u+on the fe( )ontained in the fore*oin* enumeration, ha'e
the *reater +art of them &een im+osed for the +ur+ose, not of
re'enue, &ut of mono+oly, or to *i'e our o(n mer)hants an
ad'anta*e in the home mar0et- .y remo'in* all +rohi&itions, and
&y su&2e)tin* all forei*n manufa)tures to su)h moderate ta1es as
it (as found from e1+erien)e afforded u+on ea)h arti)le the
*reatest re'enue to the +u&li), our o(n (or0men mi*ht still ha'e
a )onsidera&le ad'anta*e in the home mar0et, and many arti)les,
some of (hi)h at +resent afford no re'enue to *o'ernment, and
others a 'ery in)onsidera&le one, mi*ht afford a 'ery *reat one-
#i*h ta1es, sometimes &y diminishin* the )onsum+tion of the
ta1ed )ommodities, and sometimes &y en)oura*in* smu**lin*,
frequently afford a smaller re'enue to *o'ernment than (hat mi*ht
&e dra(n from more moderate ta1es-
When the diminution of re'enue is the effe)t of the
diminution of )onsum+tion there )an &e &ut one remedy, and that
is the lo(erin* of the ta1-
When the diminution of the re'enue is the diminution of the
re'enue is the effe)t of the en)oura*ement *i'en to smu**lin*, it
may +erha+s &e remedied in t(o (ays/ either &y diminishin* the
tem+tation to smu**le, or &y in)reasin* the diffi)ulty of
smu**lin*- The tem+tation to smu**le )an &e diminished only &y
the lo(erin* of the ta1, and the diffi)ulty of smu**lin* )an &e
in)reased only &y esta&lishin* that system of administration
(hi)h is most +ro+er for +re'entin* it-
The e1)ise la(s, it a++ears, I &elie'e, from e1+erien)e,
o&stru)t and em&arrass the o+erations of the smu**ler mu)h more
effe)tually than those of the )ustoms- .y introdu)in* into the
)ustoms a system of administration as similar to that of the
e1)ise as the nature of the different duties (ill admit, the
diffi)ulty of smu**lin* mi*ht &e 'ery mu)h in)reased- This
alteration, it has &een su++osed &y many +eo+le, mi*ht 'ery
easily &e &rou*ht a&out-
The im+orter of )ommodities lia&le to any duties of )ustoms,
it has &een said, mi*ht as his o+tion &e allo(ed either to )arry
them to his o(n +ri'ate (arehouse, or to lod*e them in a
(arehouse +ro'ided either at his o(n e1+ense or at that of the
+u&li), &ut under the 0ey of the )ustom8house offi)er, and ne'er
to &e o+ened &ut in his +resen)e- If the mer)hant )arried them to
his o(n +ri'ate (arehouse, the duties to &e immediately +aid, and
ne'er after(ards to &e dra(n &a)0, and that (arehouse to &e at
all times su&2e)t to the 'isit and e1amination of the
)ustom8house offi)er, in order to as)ertain ho( far the quantity
)ontained in it )orres+onded (ith that for (hi)h the duty had
&een +aid- If he )arried them to the +u&li) (arehouse, no duty to
&e +aid till they (ere ta0en out for home )onsum+tion- If ta0en
out for e1+ortation, to &e duty free, +ro+er se)urity &ein*
al(ays *i'en that they should &e so e1+orted- The dealers in
those +arti)ular )ommodities, either &y (holesale or retail, to
&e at all times su&2e)t to the 'isit and e1amination of the
)ustom8house offi)er, and to &e o&li*ed to 2ustify &y +ro+er
)ertifi)ates the +ayment of the duty u+on the (hole quantity
)ontained in their sho+s or (arehouses- What are )alled the
e1)ise8duties u+on rum im+orted are at +resent le'ied in this
manner, and the same system of administration mi*ht +erha+s &e
e1tended to all duties u+on *oods im+orted, +ro'ided al(ays that
those duties (ere, li0e the duties of e1)ise, )onfined to a fe(
sorts of *oods of the most *eneral use and )onsum+tion- If they
(ere e1tended to almost all sorts of *oods, as at +resent, +u&li)
(arehouses of suffi)ient e1tent )ould not easily &e +ro'ided, and
*oods of a 'ery deli)ate nature, or of (hi)h the +reser'ation
required mu)h )are and attention, )ould not safely &e trusted &y
the mer)hant in any (arehouse &ut his o(n-
If &y su)h a system of administration smu**lin*, to any
)onsidera&le e1tent, )ould &e +re'ented e'en under +retty hi*h
duties, and if e'ery duty (as o))asionally either hei*htened or
lo(ered a))ordin* as it (as most li0ely, either the one (ay or
the other, to afford the *reatest re'enue to the state, ta1ation
&ein* al(ays em+loyed as an instrument of re'enue and ne'er of
mono+oly, it seems not im+ro&a&le that a re'enue at least equal
to the +resent net re'enue of the )ustoms mi*ht &e dra(n from
duties u+on the im+ortation of only a fe( sorts of *oods of the
most *eneral use and )onsum+tion, and that the duties of )ustoms
mi*ht thus &e &rou*ht to the same de*ree of sim+li)ity,
)ertainty, and +re)ision as those of e1)ise- What the re'enue at
+resent loses &y dra(&a)0s u+on the re8e1+ortation of forei*n
*oods (hi)h are after(ards relanded and )onsumed at home (ould
under this system &e sa'ed alto*ether- If to this sa'in*, (hi)h
(ould alone &e 'ery )onsidera&le, (ere added the a&olition of all
&ounties u+on the e1+ortation of home +rodu)e in all )ases in
(hi)h those &ounties (ere not in reality dra(&a)0s of some duties
of e1)ise (hi)h had &efore &een ad'an)ed, it )annot (ell &e
dou&ted &ut that the net re'enue of )ustoms mi*ht, after an
alteration of this 0ind, &e fully equal to (hat it had e'er &een
&efore-
If &y su)h a )han*e of system the +u&li) re'enue suffered no
loss, the trade and manufa)tures of the )ountry (ould )ertainly
*ain a 'ery )onsidera&le ad'anta*e- The trade in the )ommodities
not ta1ed, &y far the *reatest num&er, (ould &e +erfe)tly free,
and mi*ht &e )arried on to and from all +arts of the (orld (ith
e'ery +ossi&le ad'anta*e- Amon* those )ommodities (ould &e
)om+rehended all the ne)essaries of life and all the materials of
manufa)ture- So far as the free im+ortation of the ne)essaries of
life redu)ed their a'era*e money +ri)e in the home mar0et it
(ould redu)e the money +ri)e of la&our, &ut (ithout redu)in* in
any res+e)t its real re)om+ense- The 'alue of money is in
+ro+ortion to the quantity of the ne)essaries of life (hi)h it
(ill +ur)hase- That of the ne)essaries of life is alto*ether
inde+endent of the quantity of money (hi)h )an &e had for them-
The redu)tion in the money +ri)e of la&our (ould ne)essarily &e
attended (ith a +ro+ortiona&le one in that of all home
manufa)tures, (hi)h (ould there&y *ain some ad'anta*e in all
forei*n mar0ets- The +ri)e of some manufa)tures (ould &e redu)ed
in a still *reater +ro+ortion &y the free im+ortation of the ra(
materials- If ra( sil0 )ould &e im+orted from China and Indostan
duty free, the sil0 manufa)turers in $n*land )ould *reatly
undersell those of &oth "ran)e and Italy- There (ould &e no
o))asion to +rohi&it the im+ortation of forei*n sil0s and
'el'ets- The )hea+ness of their *oods (ould se)ure to our o(n
(or0men not only the +ossession of the home, &ut a 'ery *reat
)ommand of the forei*n mar0et- $'en the trade in the )ommodities
ta1ed (ould &e )arried on (ith mu)h more ad'anta*e than at
+resent- If those )ommodities (ere deli'ered out of the +u&li)
(arehouse for forei*n e1+ortation, &ein* in this )ase e1em+ted
from all ta1es, the trade in them (ould &e +erfe)tly free- The
)arryin* trade in all sorts of *oods (ould under this system
en2oy e'ery +ossi&le ad'anta*e- If those )ommodities (ere
deli'ered out for home )onsum+tion, the im+orter not &ein*
o&li*ed to ad'an)e the ta1 till he had an o++ortunity of sellin*
his *oods, either to some dealer, or to some )onsumer, he )ould
al(ays afford to sell them )hea+er than if he had &een o&li*ed to
ad'an)e it at the moment of im+ortation- Under the same ta1es,
the forei*n trade of )onsum+tion e'en in the ta1ed )ommodities
mi*ht in this manner &e )arried on (ith mu)h more ad'anta*e than
it )an &e at +resent-
It (as the o&2e)t of the famous e1)ise s)heme of Sir Ro&ert
Wal+ole to esta&lish, (ith re*ard to (ine and to&a))o, a system
not 'ery unli0e that (hi)h is here +ro+osed- .ut thou*h the &ill
(hi)h (as then &rou*ht into arliament )om+rehended those t(o
)ommodities, only it (as *enerally su++osed to &e meant as an
introdu)tion to a more e1tensi'e s)heme of the same 0ind,
fa)tion, )om&ined (ith the interest of smu**lin* mer)hants,
raised so 'iolent, thou*h so un2ust, a )lamour a*ainst that &ill,
that the minister thou*ht +ro+er to dro+ it, and from a dread of
e1)itin* a )lamour of the same 0ind, none of his su))essors ha'e
dared to resume the +ro2e)t-
The duties u+on forei*n lu1uries im+orted for home
)onsum+tion, thou*h they sometimes fall u+on the +oor, fall
+rin)i+ally u+on +eo+le of middlin* or more than middlin*
fortune- Su)h are, for e1am+le, the duties u+on forei*n (ines,
u+on )offee, )ho)olate, tea, su*ar, et)-
The duties u+on the )hea+er lu1uries of home +rodu)e
destined for home )onsum+tion fall +retty equally u+on +eo+le of
all ran0s in +ro+ortion to their res+e)ti'e e1+ense- The +oor +ay
the duties u+on malt, ho+s, &eer, and ale, u+on their o(n
)onsum+tion3 the ri)h, u+on &oth their o(n )onsum+tion and that
of their ser'ants-
The (hole )onsum+tion of the inferior ran0s of +eo+le, or of
those &elo( the middlin* ran0, it must &e o&ser'ed, is in e'ery
)ountry mu)h *reater, not only in quantity, &ut in 'alue, than
that of the middlin* and of those a&o'e the middlin* ran0- The
(hole e1+ense of the inferior is mu)h *reater than that of the
su+erior ran0s- In the first +la)e, almost the (hole )a+ital of
e'ery )ountry is annually distri&uted amon* the inferior ran0s of
+eo+le as the (a*es of +rodu)ti'e la&our- Se)ondly, a *reat +art
of the re'enue arisin* from &oth the rent of land and the +rofits
of sto)0 is annually distri&uted amon* the same ran0 in the (a*es
and maintenan)e of menial ser'ants, and other un+rodu)ti'e
la&ourers- Thirdly, some +art of the +rofits of sto)0 &elon*s to
the same ran0 as a re'enue arisin* from the em+loyment of their
small )a+itals- The amount of the +rofits annually made &y small
sho+0ee+ers, tradesmen, and retailers of all 0inds is e'ery(here
'ery )onsidera&le, and ma0es a 'ery )onsidera&le +ortion of the
annual +rodu)e- "ourthly, and lastly, some +art e'en of the rent
of land &elon*s to the same ran0, a )onsidera&le +art of those
(ho are some(hat &elo( the middlin* ran0, and a small +art e'en
to the lo(est ran0, )ommon la&ourers sometimes +ossessin* in
+ro+erty an a)re or t(o of land- Thou*h the e1+ense of those
inferior ran0s of +eo+le, therefore, ta0in* them indi'idually, is
'ery small, yet the (hole mass of it, ta0in* them )olle)ti'ely,
amounts al(ays to &y mu)h the lar*est +ortion of the (hole
e1+ense of the so)iety/ (hat remains of the annual +rodu)e of the
land and la&our of the )ountry for the )onsum+tion of the
su+erior ran0s &ein* al(ays mu)h less, not only in quantity, &ut
in 'alue- The ta1es u+on e1+ense, therefore, (hi)h fall )hiefly
u+on that of the su+erior ran0s of +eo+le, u+on the smaller
+ortion of the annual +rodu)e, are li0ely to &e mu)h less
+rodu)ti'e than either those (hi)h fall indifferently u+on the
e1+ense of all ran0s, or e'en those (hi)h fall )hiefly u+on that
of the inferior ran0s/ than either those (hi)h fall indifferently
u+on the (hole annual +rodu)e, or those (hi)h fall )hiefly u+on
the lar*er +ortion of it- The e1)ise u+on the materials and
manufa)ture of home8made fermented and s+irituous liquors is
a))ordin*ly, of all the different ta1es u+on e1+ense, &y far the
most +rodu)ti'e/ and this &ran)h of the e1)ise falls 'ery mu)h,
+erha+s +rin)i+ally, u+on the e1+ense of the )ommon +eo+le- In
the year (hi)h ended on the Hth of Auly 177H, the *ross +rodu)e
of this &ran)h of the e1)ise amounted to !B,BG1,?B7 Fs- Fd-
It must al(ays &e remem&ered, ho(e'er, that it is the
lu1urious and not the ne)essary e1+ense of the inferior ran0s of
+eo+le that ou*ht e'er to &e ta1ed- The final +ayment of any ta1
u+on their ne)essary e1+ense (ould fall alto*ether u+on the
su+erior ran0s of +eo+le/ u+on the smaller +ortion of the annual
+rodu)e, and not u+on the *reater- Su)h a ta1 must in all )ases
either raise the (a*es of la&our, or lessen the demand for it- It
)ould not raise the (a*es of la&our (ithout thro(in* the final
+ayment of the ta1 u+on the su+erior ran0s of +eo+le- It )ould
not lessen the demand for la&our (ithout lessenin* the annual
+rodu)e of the land and la&our of the )ountry, the fund from
(hi)h all ta1es must &e finally +aid- Whate'er mi*ht &e the state
to (hi)h a ta1 of this 0ind redu)ed the demand for la&our, it
must al(ays raise (a*es hi*her than they other(ise (ould &e in
that state, and the final +ayment of this enhan)ement of (a*es
must in all )ases fall u+on the su+erior ran0s of +eo+le-
"ermented liquors &re(ed, and s+irituous liquors distilled,
not for sale, &ut for +ri'ate use, are not in 6reat .ritain
lia&le to any duties of e1)ise- This e1em+tion, of (hi)h the
o&2e)t is to sa'e +ri'ate families from the odious 'isit and
e1amination of the ta18*atherer, o))asions the &urden of those
duties to fall frequently mu)h li*hter u+on the ri)h than u+on
the +oor- It is not, indeed, 'ery )ommon to distil for +ri'ate
use, thou*h it is done sometimes- .ut in the )ountry many
middlin* and almost all ri)h and *reat families &re( their o(n
&eer- Their stron* &eer, therefore, )osts them ei*ht shillin*s a
&arrel less than it )osts the )ommon &re(er, (ho must ha'e his
+rofit u+on the ta1 as (ell as u+on all the other e1+ense (hi)h
he ad'an)es- Su)h families, therefore, must drin0 their &eer at
least nine or ten shillin*s a &arrel )hea+er than any liquor of
the same quality )an &e drun0 &y the )ommon +eo+le, to (hom it is
e'ery(here more )on'enient to &uy their &eer, &y little and
little, from the &re(ery or the alehouse- 4alt, in the same
manner, that is made for the use of a +ri'ate family is not
lia&le to the 'isit or e1amination of the ta18*atherer/ &ut in
this )ase the family must )om+ound at se'en shillin*s and
si1+en)e a head for the ta1- Se'en shillin*s and si1+en)e are
equal to the e1)ise u+on ten &ushels of malt8 a quantity fully
equal to (hat all the different mem&ers of any so&er family, men,
(omen, and )hildren, are at an a'era*e li0ely to )onsume- .ut in
ri)h and *reat families, (here )ountry hos+itality is mu)h
+ra)tised, the malt liquors )onsumed &y the mem&ers of the family
ma0e &ut a small +art of the )onsum+tion of the house- $ither on
a))ount of this )om+osition, ho(e'er, or for other reasons, it is
not near so )ommon to malt as to &re( for +ri'ate use- It is
diffi)ult to ima*ine any equita&le reason (hy those (ho either
&re( or distil for +ri'ate use should not &e su&2e)t to a
)om+osition of the same 0ind-
A *reater re'enue than (hat is at +resent dra(n from all the
hea'y ta1es u+on malt, &eer, and ale mi*ht &e raised, it has
frequently &een said, &y a mu)h li*hter ta1 u+on malt, the
o++ortunities of defraudin* the re'enue &ein* mu)h *reater in a
&re(ery than in a malt8house, and those (ho &re( for +ri'ate use
&ein* e1em+ted from all duties or )om+osition for duties, (hi)h
is not the )ase (ith those (ho malt for +ri'ate use-
In the +orter &re(ery of !ondon a quarter of malt is
)ommonly &re(ed into more than t(o &arrels and a half, sometimes
into three &arrels of +orter- The different ta1es u+on malt
amount to si1 shillin*s a quarter, those u+on stron* &eer and ale
to ei*ht shillin*s a &arrel- In the +orter &re(ery, therefore,
the different ta1es u+on malt, &eer, and ale amount to &et(een
t(enty8si1 and thirty shillin*s u+on the +rodu)e of a quarter of
malt- In the )ountry &re(ery for )ommon )ountry sale a quarter of
malt is seldom &re(ed into less than t(o &arrels of stron* and
one &arrel of small &eer, frequently into t(o &arrels and a half
of stron* &eer- The different ta1es u+on small &eer amount to one
shillin* and four+en)e a &arrel- In the )ountry &re(ery,
therefore, the different ta1es u+on malt, &eer, and ale seldom
amount to less than t(enty8three shillin*s and four+en)e,
frequently to t(enty8si1 shillin*s, u+on the +rodu)e of a quarter
of malt- Ta0in* the (hole 0in*dom at an a'era*e, therefore, the
(hole amount of the duties u+on malt, &eer, and ale )annot &e
estimated at less than t(enty8four or t(enty8fi'e shillin*s u+on
the +rodu)e of a quarter of malt- .ut &y ta0in* off all the
different duties u+on &eer and ale, and &y tri+lin* the malt8ta1,
or &y raisin* it from si1 to ei*hteen shillin*s u+on the quarter
of malt, a *reater re'enue, it is said, mi*ht &e raised &y this
sin*le ta1 than (hat is at +resent dra(n from all those hea'ier
ta1es-
Under the old malt ta1, indeed, is )om+rehended a ta1 of
four shillin*s u+on the ho*shead of )yder, and another of ten
shillin*s u+on the &arrel of mum- In 177G, the ta1 u+on )yder
+rodu)ed only !BC?B 6s- ?d- It +ro&a&ly fell some(hat short of
its usual amount, all the different ta1es u+on )yder ha'in*, that
year, +rodu)ed less than ordinary- The ta1 u+on mum, thou*h mu)h
hea'ier, is still less +rodu)ti'e, on a))ount of the smaller
)onsum+tion of that liquor- .ut to &alan)e (hate'er may &e the
ordinary amount of those t(o ta1es, there is )om+rehended under
(hat is )alled the )ountry e1)ise, first, the old e1)ise of si1
shillin*s and ei*ht+en)e u+on the ho*shead of )yder/ se)ondly, a
li0e ta1 of si1 shillin*s and ei*ht+en)e u+on the ho*shead of
'er2ui)e/ thirdly, another of ei*ht shillin*s and nine+en)e u+on
the ho*shead of 'ine*ar/ and, lastly, a fourth ta1 of ele'en+en)e
u+on the *allon of mead or methe*lin3 the +rodu)e of those
different ta1es (ill +ro&a&ly mu)h more than )ounter&alan)e that
of the duties im+osed &y (hat is )alled the annual malt ta1 u+on
)yder and mum-
! s-
d- In 177E, the old malt8ta1 +rodu)ed 7EE,CEB 11
11
The additional BH6,776 7
F BDG In 177B, the old ta1 +rodu)ed H61,6E7
B 7 1DE
The additional E7?,6HC 1H
B BDG In 177G, the old ta1 +rodu)ed 6EG,61G
17 H BDG
The additional B1C,7GH E
? 1DE In 177H, the old ta1 +rodu)ed 6H7,BH7
C ? 1DG
The additional BEB,7?H 1E
6 1DG

888888888888888888888888888
G:B,?BH,H?C 1E
C BDG

888888888888888888888888888
A'era*e of these four years FH?,?FH B
C BD16

888888888888888888888888888 In 177E, the )ountry e1)ise
+rodu)ed 1,EGB,1E? H B
The !ondon &re(ery GC?,E6C 7
E BDG In 177B, the )ountry e1)ise 1,EGH,?C?
B B
The !ondon &re(ery GCH,GC6 17
1C 1DE In 177G, the )ountry e1)ise 1,EG6,B7B
1G H 1DE
The !ondon &re(ery BEC,6C1 1?
C 1DG In 177H, the )ountry e1)ise 1,E1G,H?B
6 1
The !ondon &re(ery G6B,67C 7
C 1DG

888888888888888888888888888
G:6,HG7,?BE 1F
E 1DG

888888888888888888888888888
A'era*e of these four years 1,6B6,FH? G
F 1DE To (hi)h addin* the a'era*e malt8ta1, or FH?,?FH
B C BD16 The (hole amount of those different
ta1es )omes out to &e E,HFH,?HB 7 F
11D1F

888888888888888888888888888 .ut &y tri+lin* the malt8ta1, or &y
raisin* it from si1 to ei*hteen
shillin*s u+on the quarter of malt,
that sin*le ta1 (ould +rodu)e E,?76,6?H F
C FD16 A sum (hi)h e1)eeds the fore*oin* &y E?C,?BE
1 E 1GD16
4alt is )onsumed not only in the &re(ery of &eer and ale,
&ut in the manufa)ture of (ines and s+irits- If the malt ta1 (ere
to &e raised to ei*hteen shillin*s u+on the quarter, it mi*ht &e
ne)essary to ma0e some a&atement in the different e1)ises (hi)h
are im+osed u+on those +arti)ular sorts of lo( (ines and s+irits
of (hi)h malt ma0es any +art of the materials- In (hat are )alled
malt s+irits it ma0es )ommonly &ut a third +art of the materials,
the other t(o8thirds &ein* either ra( &arley, or one8third &arley
and one8third (heat- In the distillery of malt s+irits, &oth the
o++ortunity and the tem+tation to smu**le are mu)h *reater than
either in a &re(ery or in a malt8house/ the o++ortunity on
a))ount of the smaller &ul0 and *reater 'alue of the )ommodity,
and the tem+tation on a))ount of the su+erior hei*ht of the
duties, (hi)h amount to Bs- 1C EDBd-L u+on the *allon of s+irits-
.y in)reasin* the duties u+on malt, and redu)in* those u+on the
distillery, &oth the o++ortunities and the tem+tation to smu**le
(ould &e diminished, (hi)h mi*ht o))asion a still further
au*mentation of re'enue- L Thou*h the duties dire)tly im+osed
u+on +roof s+irits amount only to Es- 6d- +er *allon, these added
to the duties u+on the lo( (ines, from (hi)h they are distilled,
amount to Bs- 1C EDBd- .oth lo( (ines and +roof s+irits are, to
+re'ent frauds, no( rated a))ordin* to (hat they *au*e in the
(ash-
It has for some time +ast &een the +oli)y of 6reat .ritain
to dis)oura*e the )onsum+tion of s+irituous liquors, on a))ount
of their su++osed tenden)y to ruin the health and to )orru+t the
morals of the )ommon +eo+le- A))ordin* to this +oli)y, the
a&atement of the ta1es u+on the distillery ou*ht not to &e so
*reat as to redu)e, in any res+e)t, the +ri)e of those liquors-
S+irituous liquors mi*ht remain as dear as e'er, (hile at the
same time the (holesome and in'i*oratin* liquors of &eer and ale
mi*ht &e )onsidera&ly redu)ed in their +ri)e- The +eo+le mi*ht
thus &e in +art relie'ed from one of the &urdens of (hi)h they at
+resent )om+lain the most, (hile at the same time the re'enue
mi*ht &e )onsidera&ly au*mented-
The o&2e)tions of Dr- Da'enant to this alteration in the
+resent system of e1)ise duties seem to &e (ithout foundation-
Those o&2e)tions are, that the ta1, instead of di'idin* itself as
at +resent +retty equally u+on the +rofit of the maltster, u+on
that of the &re(er, and u+on that of the retailer, (ould, so far
as it affe)ted +rofit, fall alto*ether u+on that of the maltster/
that the maltster )ould not so easily *et &a)0 the amount of the
ta1 in the ad'an)ed +ri)e of his malt as the &re(er and retailer
in the ad'an)ed +ri)e of their liquor/ and that so hea'y a ta1
u+on malt mi*ht redu)e the rent and +rofit of &arley land-
No ta1 )an e'er redu)e, for any )onsidera&le time, the rate
of +rofit in any +arti)ular trade (hi)h must al(ays 0ee+ its
le'el (ith other trades in the nei*h&ourhood- The +resent duties
u+on malt, &eer, and ale do not affe)t the +rofits of the dealers
in those )ommodities, (ho all *et &a)0 the ta1 (ith an additional
+rofit in the enhan)ed +ri)e of their *oods- A ta1, indeed, may
render the *oods u+on (hi)h it is im+osed so dear as to diminish
the )onsum+tion of them- .ut the )onsum+tion of malt is in malt
liquors, and a ta1 of ei*hteen shillin*s u+on the quarter of malt
)ould not (ell render those liquors dearer than the different
ta1es, amountin* to t(enty8four or t(enty8fi'e shillin*s, do at
+resent- Those liquors, on the )ontrary, (ould +ro&a&ly &e)ome
)hea+er, and the )onsum+tion of them (ould &e more li0ely to
in)rease than to diminish-
It is not 'ery easy to understand (hy it should &e more
diffi)ult for the maltster to *et &a)0 ei*hteen shillin*s in the
ad'an)ed +ri)e of his malt than it is at +resent for the &re(er
to *et &a)0 t(enty8four or t(enty8fi'e, sometimes thirty,
shillin*s in that of his liquor- The maltster, indeed, instead of
a ta1 of si1 shillin*s, (ould &e o&li*ed to ad'an)e one of
ei*hteen shillin*s u+on e'ery quarter of malt- .ut the &re(er is
at +resent o&li*ed to ad'an)e a ta1 of t(enty8four or
t(enty8fi'e, sometimes thirty, shillin*s u+on e'ery quarter of
malt (hi)h he &re(s- It )ould not &e more in)on'enient for the
maltster to ad'an)e a li*hter ta1 than it is at +resent for the
&re(er to ad'an)e a hea'ier one- The maltster doth not al(ays
0ee+ in his *ranaries a sto)0 of malt (hi)h it (ill require a
lon*er time to dis+ose of than the sto)0 of &eer and ale (hi)h
the &re(er frequently 0ee+s in his )ellars- The former,
therefore, may frequently *et the returns of his money as soon as
the latter- .ut (hate'er in)on'enien)y mi*ht arise to the
maltster from &ein* o&li*ed to ad'an)e a hea'ier ta1, it )ould
easily &e remedied &y *rantin* him a fe( months= lon*er )redit
than is at +resent )ommonly *i'en to the &re(er-
Nothin* )ould redu)e the rent and +rofit of &arley land
(hi)h did not redu)e the demand for &arley- .ut a )han*e of
system (hi)h redu)ed the duties u+on a quarter of malt &re(ed
into &eer and ale from t(enty8four and t(enty8fi'e shillin*s to
ei*hteen shillin*s (ould &e more li0ely to in)rease than diminish
that demand- The rent and +rofit of &arley land, &esides, must
al(ays &e nearly equal to those of other equally fertile and
equally (ell8)ulti'ated land- If they (ere less, some +art of the
&arley land (ould soon &e turned to some other +ur+ose/ and if
they (ere *reater, more land (ould soon &e turned to the raisin*
of &arley- When the ordinary +ri)e of any +arti)ular +rodu)e of
land is at (hat may &e )alled a mono+oly +ri)e, a ta1 u+on it
ne)essarily redu)es the rent and +rofit of the land (hi)h *ro(s
it- A ta1 u+on the +rodu)e of those +re)ious 'ineyards of (hi)h
the (ine falls so mu)h short of the effe)tual demand that its
+ri)e is al(ays a&o'e the natural +ro+ortion to that of the
+rodu)e of other equally fertile and equally (ell )ulti'ated land
(ould ne)essarily redu)e the rent and +rofit of those 'ineyards-
The +ri)e of the (ines &ein* already the hi*hest that )ould &e
*ot for the quantity )ommonly sent to mar0et, it )ould not &e
raised hi*her (ithout diminishin* that quantity, and the quantity
)ould not &e diminished (ithout still *reater loss, &e)ause the
lands )ould not &e turned to any other equally 'alua&le +rodu)e-
The (hole (ei*ht of the ta1, therefore, (ould fall u+on the rent
and +rofit8 +ro+erly u+on the rent of the 'ineyard- When it has
&een +ro+osed to lay any ne( ta1 u+on su*ar, our su*ar +lanters
ha'e frequently )om+lained that the (hole (ei*ht of su)h ta1es
fell, not u+on the )onsumer, &ut u+on the +rodu)er, they ne'er
ha'in* &een a&le to raise the +ri)e of their su*ar after the ta1
hi*her than it (as &efore- The +ri)e had, it seems, &efore the
ta1 &een a mono+oly +ri)e, and the ar*ument addu)ed to sho( that
su*ar (as an im+ro+er su&2e)t of ta1ation demonstrated, +erha+s,
that it (as a +ro+er one, the *ains of mono+olists, (hene'er they
)an &e )ome at, &ein* )ertainly of all su&2e)ts the most +ro+er-
.ut the ordinary +ri)e of &arley has ne'er &een a mono+oly +ri)e,
and the rent and +rofit of &arley land ha'e ne'er &een a&o'e
their natural +ro+ortion to those of other equally fertile and
equally (ell8)ulti'ated land- The different ta1es (hi)h ha'e &een
im+osed u+on malt, &eer, and ale ha'e ne'er lo(ered the +ri)e of
&arley, ha'e ne'er redu)ed the rent and +rofit of &arley land-
The +ri)e of malt to the &re(er has )onstantly risen in
+ro+ortion to the ta1es im+osed u+on it, and those ta1es,
to*ether (ith the different duties u+on &eer and ale, ha'e
)onstantly either raised the +ri)e, or (hat )omes to the same
thin*, redu)ed the quality of those )ommodities to the )onsumer-
The final +ayment of those ta1es has fallen )onstantly u+on the
)onsumer, and not u+on the +rodu)er-
The only +eo+le li0ely to suffer &y the )han*e of system
here +ro+osed are those (ho &re( for their o(n +ri'ate use- .ut
the e1em+tion (hi)h this su+erior ran0 of +eo+le at +resent en2oy
from 'ery hea'y ta1es (hi)h are +aid &y the +oor la&ourer and
artifi)er is surely most un2ust and unequal, and ou*ht to &e
ta0en a(ay, e'en thou*h this )han*e (as ne'er to ta0e +la)e- It
has +ro&a&ly &een the interest of this su+erior order of +eo+le,
ho(e'er, (hi)h has hitherto +re'ented a )han*e of system that
)ould not (ell fail &oth to in)rease the re'enue and to relie'e
the +eo+le-
.esides su)h duties as those of )ustoms and e1)ise a&o'e
mentioned, there are se'eral others (hi)h affe)t the +ri)e of
*oods more unequally and more indire)tly- Of this 0ind are the
duties (hi)h in "ren)h are )alled ea*es, (hi)h in old Sa1on
times (ere )alled Duties of assa*e, and (hi)h seem to ha'e &een
ori*inally esta&lished for the same +ur+ose as our turn+i0e
tolls, or the tolls u+on our )anals and na'i*a&le ri'ers, for the
maintenan)e of the road or of the na'i*ation- Those duties, (hen
a++lied to su)h +ur+oses, are most +ro+erly im+osed a))ordin* to
the &ul0 or (ei*ht of the *oods- As they (ere ori*inally lo)al
and +ro'in)ial duties, a++li)a&le to lo)al and +ro'in)ial
+ur+oses, the administration of them (as in most )ases entrusted
to the +arti)ular to(n, +arish, or lordshi+ in (hi)h they (ere
le'ied, su)h )ommunities &ein* in some (ay or other su++osed to
&e a))ounta&le for the a++li)ation- The so'erei*n, (ho is
alto*ether una))ounta&le, has in many )ountries assumed to
himself the administration of those duties, and thou*h he has in
most )ases enhan)ed 'ery mu)h the duty, he has in many entirely
ne*le)ted the a++li)ation- If the turn+i0e tolls of 6reat .ritain
should e'er &e)ome one of the resour)es of *o'ernment, (e may
learn, &y the e1am+le of many other nations, (hat (ould +ro&a&ly
&e the )onsequen)e- Su)h tolls are no dou&t finally +aid &y the
)onsumer/ &ut the )onsumer is not ta1ed in +ro+ortion to his
e1+ense (hen he +ays, not a))ordin* to the 'alue, &ut a))ordin*
to the &ul0 or (ei*ht of (hat he )onsumes- When su)h duties are
im+osed, not a))ordin* to the &ul0 or (ei*ht, &ut a))ordin* to
the su++osed 'alue of the *oods, they &e)ome +ro+erly a sort of
inland )ustoms or e1)ises (hi)h o&stru)t 'ery mu)h the most
im+ortant of all &ran)hes of )ommer)e, the interior )ommer)e of
the )ountry-
In some small states duties similar to those +assa*e duties
are im+osed u+on *oods )arried a)ross the territory, either &y
land or &y (ater, from one forei*n )ountry to another- These are
in some )ountries )alled transit8duties- Some of the little
Italian states (hi)h are situated u+on the o and the ri'ers
(hi)h run into it deri'e some re'enue from duties of this 0ind
(hi)h are +aid alto*ether &y forei*ners, and (hi)h, +erha+s, are
the only duties that one state )an im+ose u+on the su&2e)ts of
another (ithout o&stru)tin* in any res+e)t the industry or
)ommer)e of its o(n- The most im+ortant transit8duty in the (orld
is that le'ied &y the %in* of Denmar0 u+on all mer)hant shi+s
(hi)h +ass throu*h the Sound-
Su)h ta1es u+on lu1uries as the *reater +art of the duties
of )ustoms and e1)ise, thou*h they all fall indifferently u+on
e'ery different s+e)ies of re'enue, and are +aid finally, or
(ithout any retri&ution, &y (hoe'er )onsumes the )ommodities u+on
(hi)h they are im+osed, yet they do not al(ays fall equally or
+ro+ortiona&ly u+on the re'enue of e'ery indi'idual- As e'ery
man=s humour re*ulates the de*ree of his )onsum+tion, e'ery man
)ontri&utes rather a))ordin* to his humour than in +ro+ortion to
his re'enue/ the +rofuse )ontri&ute more, the +arsimonious less,
than their +ro+er +ro+ortion- Durin* the minority of a man of
*reat fortune he )ontri&utes )ommonly 'ery little, &y his
)onsum+tion, to(ards the su++ort of that state from (hose
+rote)tion he deri'es a *reat re'enue- Those (ho li'e in another
)ountry )ontri&ute nothin*, &y their )onsum+tion, to(ards the
su++ort of the *o'ernment of that )ountry in (hi)h is situated
the sour)e of their re'enue- If in this latter )ountry there
should &e no land8ta1, nor any )onsidera&le duty u+on the
transferen)e either of mo'a&le or of immo'a&le +ro+erty, as is
the )ase in Ireland, su)h a&sentees may deri'e a *reat re'enue
from the +rote)tion of a *o'ernment to the su++ort of (hi)h they
do not )ontri&ute a sin*le shillin*- This inequality is li0ely to
&e *reatest in a )ountry of (hi)h the *o'ernment is in some
res+e)ts su&ordinate and de+endent u+on that of some other- The
+eo+le (ho +ossess the most e1tensi'e +ro+erty in the de+endent
(ill in this )ase *enerally )hoose to li'e in the *o'ernin*
)ountry- Ireland is +re)isely in this situation, and (e )annot,
therefore, (onder that the +ro+osal of a ta1 u+on a&sentees
should &e so 'ery +o+ular in that )ountry- It mi*ht, +erha+s, &e
a little diffi)ult to as)ertain either (hat sort or (hat de*ree
of a&sen)e (ould su&2e)t a man to &e ta1ed as an a&sentee, or at
(hat +re)ise time the ta1 should either &e*in or end- If you
e1)e+t, ho(e'er, this 'ery +e)uliar situation, any inequality in
the )ontri&ution of indi'iduals (hi)h )an arise from su)h ta1es
is mu)h more than )om+ensated &y the 'ery )ir)umstan)e (hi)h
o))asions that inequality8 the )ir)umstan)e that e'ery man=s
)ontri&ution is alto*ether 'oluntary, it &ein* alto*ether in his
+o(er either to )onsume or not to )onsume the )ommodity ta1ed-
Where su)h ta1es, therefore, are +ro+erly assessed, and u+on
+ro+er )ommodities, they are +aid (ith less *rum&lin* than any
other- When they are ad'an)ed &y the mer)hant or manufa)turer,
the )onsumer, (ho finally +ays them, soon )omes to )onfound them
(ith the +ri)e of the )ommodities, and almost for*ets that he
+ays any ta1-
Su)h ta1es are or may &e +erfe)tly )ertain, or may &e
assessed so as to lea'e no dou&t )on)ernin* either (hat ou*ht to
&e +aid, or (hen it ou*ht to &e +aid/ )on)ernin* either the
quantity or the time of +ayment- Whate'er un)ertainty there may
sometimes &e, either in the duties of )ustoms in 6reat .ritain,
or in other duties of the same 0ind in other )ountries, it )annot
arise from the nature of those duties, &ut from the ina))urate or
uns0ilful manner in (hi)h the la( that im+oses them is e1+ressed-
Ta1es u+on lu1uries *enerally are, and al(ays may &e, +aid
+ie)emeal, or in +ro+ortion as the )ontri&utors ha'e o))asion to
+ur)hase the *oods u+on (hi)h they are im+osed- In the time and
mode of +ayment they are, or may &e, of all ta1es the most
)on'enient- U+on the (hole, su)h ta1es, are, +erha+s, as
a*reea&le to the three first of the four *eneral ma1ims
)on)ernin* ta1ation as any other- They offend in e'ery res+e)t
a*ainst the fourth-
Su)h ta1es, in +ro+ortion to (hat they &rin* into the +u&li)
treasury of the state, al(ays ta0e out or 0ee+ out of the +o)0ets
of the +eo+le more than almost any other ta1es- They seem to do
this in all the four different (ays in (hi)h it is +ossi&le to do
it-
"irst, the le'yin* of su)h ta1es, e'en (hen im+osed in the
most 2udi)ious manner, requires a *reat num&er of )ustom8house
and e1)ise offi)ers, (hose salaries and +erquisites are a real
ta1 u+on the +eo+le, (hi)h &rin*s nothin* into the treasury of
the state- This e1+ense, ho(e'er, it must &e a)0no(led*ed, is
more moderate in 6reat .ritain than in most other )ountries- In
the year (hi)h ended on the Hth of Auly 177H, the *ross +rodu)e
of the different duties, under the mana*ement of the
)ommissioners of e1)ise in $n*land, amounted to !H,HC7,BC? 1?s- ?
1DGd-, (hi)h (as le'ied at an e1+ense of little more than fi'e
and a half +er )ent- "rom this *ross +rodu)e, ho(e'er, there must
&e dedu)ted (hat (as +aid a(ay in &ounties and dra(&a)0s u+on the
e1+ortation of e1)isa&le *oods, (hi)h (ill redu)e the net +rodu)e
&elo( fi'e millions-L The le'yin* of the salt duty, an e1)ise
duty, &ut under a different mana*ement, is mu)h more e1+ensi'e-
The net re'enue of the )ustoms does not amount to t(o millions
and a half, (hi)h is le'ied at an e1+ense of more than ten +er
)ent in the salaries of offi)ers, and other in)idents- .ut the
+erquisites of )ustom8house offi)ers are e'ery(here mu)h *reater
than their salaries/ at some +orts more than dou&le or tri+le
those salaries- If the salaries of offi)ers, and other in)idents,
therefore, amount to more than ten +er )ent u+on the net re'enue
of the )ustoms, the (hole e1+ense of le'yin* that re'enue may
amount, in salaries and +erquisites to*ether, to more than t(enty
or thirty +er )ent- The offi)ers of e1)ise re)ei'e fe( or no
+erquisites, and the administration of that &ran)h of the
re'enue, &ein* of more re)ent esta&lishment, is in *eneral less
)orru+ted than that of the )ustoms, into (hi)h len*th of time has
introdu)ed and authori;ed many a&uses- .y )har*in* u+on malt the
(hole re'enue (hi)h is at +resent le'ied &y the different duties
u+on malt and malt liquors, a sa'in*, it is su++osed, of more
than fifty thousand +ounds mi*ht &e made in the annual e1+ense of
the e1)ise- .y )onfinin* the duties of )ustoms to a fe( sorts of
*oods, and &y le'yin* those duties a))ordin* to the e1)ise la(s,
a mu)h *reater sa'in* mi*ht +ro&a&ly &e made in the annual
e1+ense of the )ustoms- L The net +rodu)e of that year, after
dedu)tin* all e1+enses and allo(an)es, amounted to !G,F7H,6HE
1Fs- 6d-
Se)ondly, su)h ta1es ne)essarily o))asion some o&stru)tion
or dis)oura*ement to )ertain &ran)hes of industry- As they al(ays
raise the +ri)e of the )ommodity ta1ed, they so far dis)oura*e
its )onsum+tion, and )onsequently its +rodu)tion- If it is a
)ommodity of home *ro(th or manufa)ture, less la&our )omes to &e
em+loyed in raisin* and +rodu)in* it- If it is a forei*n
)ommodity of (hi)h the ta1 in)reases in this manner the +ri)e,
the )ommodities of the same 0ind (hi)h are made at home may
there&y, indeed, *ain some ad'anta*e in the home mar0et, and a
*reater quantity of domesti) industry may there&y &e turned
to(ard +re+arin* them- .ut thou*h this rise of +ri)e in a forei*n
)ommodity may en)oura*e domesti) industry in one +arti)ular
&ran)h, it ne)essarily dis)oura*es that industry in almost e'ery
other- The dearer the .irmin*ham manufa)turer &uys his forei*n
(ine, the )hea+er he ne)essarily sells that +art of his hard(are
(ith (hi)h, or, (hat )omes to the same thin*, (ith the +ri)e of
(hi)h he &uys it- That +art of his hard(are, therefore, &e)omes
of less 'alue to him, and he has less en)oura*ement to (or0 at
it- The dearer the )onsumers in one )ountry +ay for the sur+lus
+rodu)e of another, the )hea+er they ne)essarily sell that +art
of their o(n sur+lus +rodu)e (ith (hi)h, or, (hat )omes to the
same thin*, (ith the +ri)e of (hi)h they &uy it- That +art of
their o(n sur+lus +rodu)e &e)omes of less 'alue to them, and they
ha'e less en)oura*ement to in)rease its quantity- All ta1es u+on
)onsuma&le )ommodities, therefore, tend to redu)e the quantity of
+rodu)ti'e la&our &elo( (hat it other(ise (ould &e, either in
+re+arin* the )ommodities ta1ed, if they are home )ommodities, or
in +re+arin* those (ith (hi)h they are +ur)hased, if they are
forei*n )ommodities- Su)h ta1es, too, al(ays alter, more or less,
the natural dire)tion of national industry, and turn it into a
)hannel al(ays different from, and *enerally less ad'anta*eous
than that in (hi)h it (ould ha'e run of its o(n a))ord-
Thirdly, the ho+e of e'adin* su)h ta1es &y smu**lin* *i'es
frequent o))asion to forfeitures and other +enalties (hi)h
entirely ruin the smu**ler/ a +erson (ho, thou*h no dou&t hi*hly
&lama&le for 'iolatin* the la(s of his )ountry, is frequently
in)a+a&le of 'iolatin* those of natural 2usti)e, and (ould ha'e
&een, in e'ery res+e)t, an e1)ellent )iti;en had not the la(s of
his )ountry made that a )rime (hi)h nature ne'er meant to &e so-
In those )orru+ted *o'ernments (here there is at least a *eneral
sus+i)ion of mu)h unne)essary e1+ense, and *reat misa++li)ation
of the +u&li) re'enue, the la(s (hi)h *uard it are little
res+e)ted- Not many +eo+le are s)ru+ulous a&out smu**lin* (hen,
(ithout +er2ury, they )an find any easy and safe o++ortunity of
doin* so- To +retend to ha'e any s)ru+le a&out &uyin* smu**led
*oods, thou*h a manifest en)oura*ement to the 'iolation of the
re'enue la(s, and to the +er2ury (hi)h almost al(ays attends it,
(ould in most )ountries &e re*arded as one of those +edanti)
+ie)es of hy+o)risy (hi)h, instead of *ainin* )redit (ith
any&ody, ser'e only to e1+ose the +erson (ho affe)ts to +ra)tise
them to the sus+i)ion of &ein* a *reater 0na'e than most of his
nei*h&ours- .y this indul*en)e of the +u&li), the smu**ler is
often en)oura*ed to )ontinue a trade (hi)h he is thus tau*ht to
)onsider as in some measure inno)ent, and (hen the se'erity of
the re'enue la(s is ready to fall u+on him, he is frequently
dis+osed to defend (ith 'iolen)e (hat he has &een a))ustomed to
re*ard as his 2ust +ro+erty- "rom &ein* at first, +erha+s, rather
im+rudent than )riminal, he at last too often &e)omes one of the
hardiest and most determined 'iolators of the la(s of so)iety- .y
the ruin of the smu**ler, his )a+ital, (hi)h had &efore &een
em+loyed in maintainin* +rodu)ti'e la&our, is a&sor&ed either in
the re'enue of the state or in that of the re'enue offi)er, and
is em+loyed in maintainin* un+rodu)ti'e, to the diminution of the
*eneral )a+ital of the so)iety and of the useful industry (hi)h
it mi*ht other(ise ha'e maintained-
"ourthly, su)h ta1es, &y su&2e)tin* at least the dealers in
the ta1ed )ommodities to the frequent 'isits and odious
e1amination of the ta18*atherers, e1+ose them sometimes, no
dou&t, to some de*ree of o++ression, and al(ays to mu)h trou&le
and 'e1ation/ and thou*h 'e1ation, as has already &een said, is
not, stri)tly s+ea0in*, e1+ense, it is )ertainly equi'alent to
the e1+ense at (hi)h e'ery man (ould &e (illin* to redeem himself
from it- The la(s of e1)ise, thou*h more effe)tual for the
+ur+ose for (hi)h they (ere instituted, are, in this res+e)t,
more 'e1atious than those of the )ustoms- When a mer)hant has
im+orted *oods su&2e)t to )ertain duties of )ustoms, (hen he has
+aid those duties, and lod*ed the *oods in his (arehouse, he is
not in most )ases lia&le to any further trou&le or 'e1ation from
the )ustom8house offi)er- It is other(ise (ith *oods su&2e)t to
duties of e1)ise- The dealers ha'e no res+ite from the )ontinual
'isits and e1amination of the e1)ise offi)ers- The duties of
e1)ise are, u+on this a))ount, more un+o+ular than those of the
)ustoms/ and so are the offi)ers (ho le'y them- Those offi)ers,
it is +retended, thou*h in *eneral, +erha+s, they do their duty
fully as (ell as those of the )ustoms, yet as that duty o&li*es
them to &e frequently 'ery trou&lesome to some of their
nei*h&ours, )ommonly )ontra)t a )ertain hardness of )hara)ter
(hi)h the others frequently ha'e not- This o&ser'ation, ho(e'er,
may 'ery +ro&a&ly &e the mere su**estion of fraudulent dealers
(hose smu**lin* is either +re'ented or dete)ted &y their
dili*en)e-
The in)on'enien)ies, ho(e'er, (hi)h are, +erha+s, in some
de*ree inse+ara&le from ta1es u+on )onsuma&le )ommodities, fall
as li*ht u+on the +eo+le of 6reat .ritain as u+on those of any
other )ountry of (hi)h the *o'ernment is nearly as e1+ensi'e- Our
state is not +erfe)t, and mi*ht &e mended, &ut it is as *ood or
&etter than that of most of our nei*h&ours-
In )onsequen)e of the notion that duties u+on )onsuma&le
*oods (ere ta1es u+on the +rofits of mer)hants, those duties
ha'e, in some )ountries, &een re+eated u+on e'ery su))essi'e sale
of the *oods- If the +rofits of the mer)hant im+orter or mer)hant
manufa)turer (ere ta1ed, equality seemed to require that those of
all the middle &uyers (ho inter'ened &et(een either of them and
the )onsumer should li0e(ise &e ta1ed- The famous al)a'ala of
S+ain seems to ha'e &een esta&lished u+on this +rin)i+le- It (as
at first a ta1 of ten +er )ent, after(ards of fourteen +er )ent,
and is at +resent of only si1 +er )ent u+on the sale of e'ery
sort of +ro+erty (hether mo'a&le or immo'a&le, and it is re+eated
e'ery time the +ro+erty is sold- The le'yin* of this ta1 requires
a multitude of re'enue offi)ers suffi)ient to *uard the
trans+ortation of *oods, not only from one +ro'in)e to another,
&ut from one sho+ to another- It su&2e)ts not only the dealers in
some sorts of *oods, &ut those in all sorts, e'ery farmer, e'ery
manufa)turer, e'ery mer)hant and sho+0ee+er, to the )ontinual
'isits and e1amination of the ta18*atherers- Throu*h the *reater
+art of a )ountry in (hi)h a ta1 of this 0ind is esta&lished
nothin* )an &e +rodu)ed for distant sale- The +rodu)e of e'ery
+art of the )ountry must &e +ro+ortioned to the )onsum+tion of
the nei*h&orhood- It is to the al)a'ala, a))ordin*ly, that
Ustarit; im+utes the ruin of the manufa)tures of S+ain- #e mi*ht
ha'e im+uted to it li0e(ise the de)lension of a*ri)ulture, it
&ein* im+osed not only u+on manufa)tures, &ut u+on the rude
+rodu)e of the land-
In the 0in*dom of Na+les there is a similar ta1 of three +er
)ent u+on the 'alue of all )ontra)ts, and )onsequently u+on that
of all )ontra)ts of sale- It is &oth li*hter than the S+anish
ta1, and the *reater +art of to(ns and +arishes are allo(ed to
+ay a )om+osition in lieu of it- They le'y this )om+osition in
(hat manner they +lease, *enerally in a (ay that *i'es no
interru+tion to the interior )ommer)e of the +la)e- The
Nea+olitan ta1, therefore, is not near so ruinous as the S+anish
one-
The uniform system of ta1ation (hi)h, (ith a fe( e1)e+tions
of no *reat )onsequen)e, ta0es +la)e in all the different +arts
of the United %in*dom of 6reat .ritain, lea'es the interior
)ommer)e of the )ountry, the inland and )oastin* trade, almost
entirely free- The inland trade is almost +erfe)tly free, and the
*reater +art of *oods may &e )arried from one end of the 0in*dom
to the other (ithout requirin* any +ermit or let8+ass, (ithout
&ein* su&2e)t to question, 'isit, or e1amination from the re'enue
offi)ers- There are a fe( e1)e+tions, &ut they are su)h as )an
*i'e no interru+tion to any im+ortant &ran)h of the inland
)ommer)e of the )ountry- 6oods )arried )oast(ise, indeed, require
)ertifi)ates or )oast8)o)0ets- If you e1)e+t )oals, ho(e'er, the
rest are almost all duty8free- This freedom of interior )ommer)e,
the effe)t of the uniformity of the system of ta1ation, is
+erha+s one of the +rin)i+al )auses of the +ros+erity of 6reat
.ritain, e'ery *reat )ountry &ein* ne)essarily the &est and most
e1tensi'e mar0et for the *reater +art of the +rodu)tions of its
o(n industry- If the same freedom, in )onsequen)e of the same
uniformity, )ould &e e1tended to Ireland and the +lantations,
&oth the *randeur of the state and the +ros+erity of e'ery +art
of the em+ire (ould +ro&a&ly &e still *reater than at +resent-
In "ran)e, the different re'enue la(s (hi)h ta0e +la)e in
the different +ro'in)es require a multitude of re'enue offi)ers
to surround not only the frontiers of the 0in*dom, &ut those of
almost ea)h +arti)ular +ro'in)e, in order either to +re'ent the
im+ortation of )ertain *oods, or to su&2e)t it to the +ayment of
)ertain duties, to the no small interru+tion of the interior
)ommer)e of the )ountry- Some +ro'in)es are allo(ed to )om+ound
for the *a&elle or salt8ta1- Others are e1em+ted from it
alto*ether- Some +ro'in)es are e1em+ted from the e1)lusi'e sale
of to&a))o, (hi)h the farmers8*eneral en2oy throu*h the *reater
+art of the 0in*dom- The aides, (hi)h )orres+ond to the e1)ise in
$n*land, are 'ery different in different +ro'in)es- Some
+ro'in)es are e1em+ted from them, and +ay a )om+osition or
equi'alent- In those in (hi)h they ta0e +la)e and are in farm
there are many lo)al duties (hi)h do not e1tend &eyond a
+arti)ular to(n or distri)t- The traites, (hi)h )orres+ond to our
)ustoms, di'ide the 0in*dom into three *reat +arts/ first, the
+ro'in)es su&2e)t to the tariff of 166G, (hi)h are )alled the
+ro'in)es of the fi'e *reat farms, and under (hi)h are
)om+rehended i)ardy, Normandy, and the *reater +art of the
interior +ro'in)es of the 0in*dom/ se)ondly, the +ro'in)es
su&2e)t to the tariff of 1667, (hi)h are )alled the +ro'in)es
re)0oned forei*n, and under (hi)h are )om+rehended the *reater
+art of the frontier +ro'in)es/ and, thirdly, those +ro'in)es
(hi)h are said to &e treated as forei*n, or (hi)h, &e)ause they
are allo(ed a free )ommer)e (ith forei*n )ountries, are in their
)ommer)e (ith other +ro'in)es of "ran)e su&2e)ted to the same
duties as other forei*n )ountries- These are Alsa)e, the three
&isho+ri)s of 4et;, Toul, and 5erdun, and the three )ities of
Dun0ir0, .ayonne, and 4arseilles- .oth in the +ro'in)es of the
fi'e *reat farms 9)alled so on a))ount of an an)ient di'ision of
the duties of )ustoms into fi'e *reat &ran)hes, ea)h of (hi)h (as
ori*inally the su&2e)t of a +arti)ular farm, thou*h they are no(
all united into one:, and in those (hi)h are said to &e re)0oned
forei*n, there are many lo)al duties (hi)h do not e1tend &eyond a
+arti)ular to(n or distri)t- There are some su)h e'en in the
+ro'in)es (hi)h are said to &e treated as forei*n, +arti)ularly
in the )ity of 4arseilles- It is unne)essary to o&ser'e ho( mu)h
&oth the restraints u+on the interior )ommer)e of the )ountry and
the num&er of the re'enue offi)ers must &e multi+lied in order to
*uard the frontiers of those different +ro'in)es and distri)ts
(hi)h are su&2e)t to su)h different systems of ta1ation-
O'er and a&o'e the *eneral restraints arisin* from this
)om+li)ated system of re'enue la(s, the )ommer)e of (ine, after
)orn +erha+s the most im+ortant +rodu)tion of "ran)e, is in the
*reater +art of the +ro'in)es su&2e)t to +arti)ular restraints,
arisin* from the fa'our (hi)h has &een sho(n to the 'ineyards of
+arti)ular +ro'in)es and distri)ts, a&o'e those of others- The
+ro'in)es most famous for their (ines, it (ill &e found, I
&elie'e, are those in (hi)h the trade in that arti)le is su&2e)t
to the fe(est restraints of this 0ind- The e1tensi'e mar0et (hi)h
su)h +ro'in)es en2oy, en)oura*es *ood mana*ement &oth in the
)ulti'ation of their 'ineyards, and in the su&sequent +re+aration
of their (ines-
Su)h 'arious and )om+li)ated re'enue la(s are not +e)uliar
to "ran)e- The little du)hy of 4ilan is di'ided into si1
+ro'in)es, in ea)h of (hi)h there is a different system of
ta1ation (ith re*ard to se'eral different sorts of )onsuma&le
*oods- The still smaller territories of the Du0e of arma are
di'ided into three or four, ea)h of (hi)h has, in the same
manner, a system of its o(n- Under su)h a&surd mana*ement,
nothin* &ut the *reat fertility of the soil and ha++iness of the
)limate )ould +reser'e su)h )ountries from soon rela+sin* into
the lo(est state of +o'erty and &ar&arism-
Ta1es u+on )onsuma&le )ommodities may either &e le'ied &y an
administration of (hi)h the offi)ers are a++ointed &y *o'ernment
and are immediately a))ounta&le to *o'ernment, of (hi)h the
re'enue must in this )ase 'ary from year to year a))ordin* to the
o))asional 'ariations in the +rodu)e of the ta1, or they may &e
let in farm for a rent )ertain, the farmer &ein* allo(ed to
a++oint his o(n offi)ers, (ho, thou*h o&li*ed to le'y the ta1 in
the manner dire)ted &y the la(, are under his immediate
ins+e)tion, and are immediately a))ounta&le to him- The &est and
most fru*al (ay of le'yin* a ta1 )an ne'er &e &y farm- O'er and
a&o'e (hat is ne)essary for +ayin* the sti+ulated rent, the
salaries of the offi)ers, and the (hole e1+ense of
administration, the farmer must al(ays dra( from the +rodu)e of
the ta1 a )ertain +rofit +ro+ortioned at least to the ad'an)e
(hi)h he ma0es, to the ris0 (hi)h he runs, to the trou&le (hi)h
he is at, and to the 0no(led*e and s0ill (hi)h it requires to
mana*e so 'ery )om+li)ated a )on)ern- 6o'ernment, &y esta&lishin*
an administration under their o(n immediate ins+e)tion of the
same 0ind (ith that (hi)h the farmer esta&lishes, mi*ht at least
sa'e this +rofit, (hi)h is almost al(ays e1or&itant- To farm any
)onsidera&le &ran)h of the +u&li) re'enue requires either a *reat
)a+ital or a *reat )redit/ )ir)umstan)es (hi)h (ould alone
restrain the )om+etition for su)h an underta0in* to a 'ery small
num&er of +eo+le- Of the fe( (ho ha'e this )a+ital or )redit, a
still smaller num&er ha'e the ne)essary 0no(led*e or e1+erien)e/
another )ir)umstan)e (hi)h restrains the )om+etition still
further- The 'ery fe(, (ho are in )ondition to &e)ome
)om+etitors, find it more for their interest to )om&ine to*ether/
to &e)ome )o8+artners instead of )om+etitors, and (hen the farm
is set u+ to au)tion, to offer no rent &ut (hat is mu)h &elo( the
real 'alue- In )ountries (here the +u&li) re'enues are in farm,
the farmers are *enerally the most o+ulent +eo+le- Their (ealth
(ould alone e1)ite the +u&li) indi*nation, and the 'anity (hi)h
almost al(ays a))om+anies su)h u+start fortunes, the foolish
ostentation (ith (hi)h they )ommonly dis+lay that (ealth, e1)ites
that indi*nation still more-
The farmers of the +u&li) re'enue ne'er find the la(s too
se'ere (hi)h +unish any attem+t to e'ade the +ayment of a ta1-
They ha'e no &o(els for the )ontri&utors, (ho are not their
su&2e)ts, and (hose uni'ersal &an0ru+t)y, if it should ha++en the
day after their farm is e1+ired, (ould not mu)h affe)t their
interest- In the *reatest e1i*en)ies of the state, (hen the
an1iety of the so'erei*n for the e1a)t +ayment of his re'enue is
ne)essarily the *reatest, they seldom fail to )om+lain that
(ithout la(s more ri*orous than those (hi)h a)tually ta0e +la)e,
it (ill &e im+ossi&le for them to +ay e'en the usual rent- In
those moments of +u&li) distress their demands )annot &e
dis+uted- The re'enue la(s, therefore, &e)ome *radually more and
more se'ere- The most san*uinary are al(ays to &e found in
)ountries (here the *reater +art of the +u&li) re'enue is in
farm/ the mildest, in )ountries (here it is le'ied under the
immediate ins+e)tion of the so'erei*n- $'en a &ad so'erei*n feels
more )om+assion for his +eo+le than )an e'er &e e1+e)ted from the
farmers of his re'enue- #e 0no(s that the +ermanent *randeur of
his family de+ends u+on the +ros+erity of his +eo+le, and he (ill
ne'er 0no(in*ly ruin that +ros+erity for the sa0e of any
momentary interest of his o(n- It is other(ise (ith the farmers
of his re'enue, (hose *randeur may frequently &e the effe)t of
the ruin, and not of the +ros+erity of his +eo+le-
A ta1 is sometimes not only farmed for a )ertain rent, &ut
the farmer has, &esides, the mono+oly of the )ommodity ta1ed- In
"ran)e, the duties u+on to&a))o and salt are le'ied in this
manner- In su)h )ases the farmer, instead of one, le'ies t(o
e1or&itant +rofits u+on the +eo+le/ the +rofit of the farmer, and
the still more e1or&itant one of the mono+olist- To&a))o &ein* a
lu1ury, e'ery man is allo(ed to &uy or not to &uy as he )hooses-
.ut salt &ein* a ne)essary, e'ery man is o&li*ed to &uy of the
farmer a )ertain quantity of it/ &e)ause, if he did not &uy this
quantity of the farmer, he (ould, it is +resumed, &uy it of some
smu**ler- The ta1es u+on &oth )ommodities are e1or&itant- The
tem+tation to smu**le )onsequently is to many +eo+le
irresisti&le, (hile at the same time the ri*our of the la(, and
the 'i*ilan)e of the farmer=s offi)ers, render the yieldin* to
that tem+tation almost )ertainly ruinous- The smu**lin* of salt
and to&a))o sends e'ery year se'eral hundred +eo+le to the
*alleys, &esides a 'ery )onsidera&le num&er (hom it sends to the
*i&&et- Those ta1es le'ied in this manner yield a 'ery
)onsidera&le re'enue to *o'ernment- In 1767, the farm of to&a))o
(as let for t(enty8t(o millions fi'e hundred and forty8one
thousand t(o hundred and se'enty8ei*ht li'res a year- That of
salt, for thirty8si1 millions four hundred and ninety8four
thousand four hundred and four li'res- The farm in &oth )ases (as
to )ommen)e in 176?, and to last for si1 years- Those (ho
)onsider the &lood of the +eo+le as nothin* in )om+arison (ith
the re'enue of the +rin)e, may +erha+s a++ro'e of this method of
le'yin* ta1es- Similar ta1es and mono+olies of salt and to&a))o
ha'e &een esta&lished in many other )ountries/ +arti)ularly in
the Austrian and russian dominions, and in the *reater +art of
the states of Italy-
In "ran)e, the *reater +art of the a)tual re'enue of the
)ro(n is deri'ed from ei*ht different sour)es/ the taille, the
)a+itation, the t(o 'in*tiemes, the *a&elles, the aides, the
traites, the domaine, and the farm of to&a))o- The fi'e last are,
in the *reater +art of the +ro'in)es, under farm- The three first
are e'ery(here le'ied &y an administration under the immediate
ins+e)tion and dire)tion of *o'ernment, and it is uni'ersally
a)0no(led*ed that, in +ro+ortion to (hat they ta0e out of the
+o)0ets of the +eo+le, they &rin* more into the treasury of the
+rin)e than the other fi'e, of (hi)h the administration is mu)h
more (asteful and e1+ensi'e-
The finan)es of "ran)e seem, in their +resent state, to
admit of three 'ery o&'ious reformations- "irst, &y a&olishin*
the taille and the )a+itation, and &y in)reasin* the num&er of
'in*tiemes, so as to +rodu)e an additional re'enue equal to the
amount of those other ta1es, the re'enue of the )ro(n mi*ht &e
+reser'ed/ the e1+ense of )olle)tion mi*ht &e mu)h diminished/
the 'e1ation of the inferior ran0s of +eo+le, (hi)h the taille
and )a+itation o))asion, mi*ht &e entirely +re'ented/ and the
su+erior ran0s mi*ht not &e more &urdened than the *reater +art
of them are at +resent- The 'in*tieme, I ha'e already o&ser'ed,
is a ta1 'ery nearly of the same 0ind (ith (hat is )alled the
land8ta1 of $n*land- The &urden of the taille, it is
a)0no(led*ed, falls finally u+on the +ro+rietors of land/ and as
the *reater +art of the )a+itation is assessed u+on those (ho are
su&2e)t to the taille at so mu)h a +ound of that other ta1, the
final +ayment of the *reater +art of it must li0e(ise fall u+on
the same order of +eo+le- Thou*h the num&er of the 'in*tiemes,
therefore, (as in)reased so as to +rodu)e an additional re'enue
equal to the amount of &oth those ta1es, the su+erior ran0s of
+eo+le mi*ht not &e more &urdened than they are at +resent- 4any
indi'iduals no dou&t (ould, on a))ount of the *reat inequalities
(ith (hi)h the taille is )ommonly assessed u+on the estates and
tenants of different indi'iduals- The interest and o++osition of
su)h fa'oured su&2e)ts are the o&sta)les most li0ely to +re'ent
this or any other reformation of the same 0ind- Se)ondly, &y
renderin* the *a&elle, the aides, the traites, the ta1es u+on
to&a))o, all the different )ustoms and e1)ises, uniform in all
the different +arts of the 0in*dom, those ta1es mi*ht &e le'ied
at mu)h less e1+ense, and the interior )ommer)e of the 0in*dom
mi*ht &e rendered as free as that of $n*land- Thirdly, and
lastly, &y su&2e)tin* all those ta1es to an administration under
the immediate ins+e)tion and dire)tion of *o'ernment, the
e1or&itant +rofits of the farmers8*eneral mi*ht &e added to the
re'enue of the state- The o++osition arisin* from the +ri'ate
interest of indi'iduals is li0ely to &e as effe)tual for
+re'entin* the t(o last as the first8mentioned s)heme of
reformation-
The "ren)h system of ta1ation seems, in e'ery res+e)t,
inferior to the .ritish- In 6reat .ritain ten millions sterlin*
are annually le'ied u+on less than ei*ht millions of +eo+le
(ithout its &ein* +ossi&le to say that any +arti)ular order is
o++ressed- "rom the )olle)tions of the A&&e $1+illy, and the
o&ser'ations of the author of the $ssay u+on le*islation and
)ommer)e of )orn, it a++ears +ro&a&le that "ran)e, in)ludin* the
+ro'in)es of !orraine and .ar, )ontains a&out t(enty8three or
t(enty8four millions of +eo+le three times the num&er +erha+s
)ontained in 6reat .ritain- The soil and )limate of "ran)e are
&etter than those of 6reat .ritain- The )ountry has &een mu)h
lon*er in a state of im+ro'ement and )ulti'ation, and is, u+on
that a))ount, &etter sto)0ed (ith all those thin*s (hi)h it
requires a lon* time to raise u+ and a))umulate, su)h as *reat
to(ns, and )on'enient and (ell8&uilt houses, &oth in to(n and
)ountry- With these ad'anta*es it mi*ht &e e1+e)ted that in
"ran)e a re'enue of thirty millions mi*ht &e le'ied for the
su++ort of the state (ith as little in)on'enien)y as a re'enue of
ten millions is in 6reat .ritain- In 176H and 1766, the (hole
re'enue +aid into the treasury of "ran)e, a))ordin* to the &est,
thou*h, I a)0no(led*e, 'ery im+erfe)t, a))ounts (hi)h I )ould *et
of it, usually run &et(een BC? and BEH millions of li'res/ that
is, it did not amount to fifteen millions sterlin*/ not the half
of (hat mi*ht ha'e &een e1+e)ted had the +eo+le )ontri&uted in
the same +ro+ortion to their num&ers as the +eo+le of 6reat
.ritain- The +eo+le of "ran)e, ho(e'er, it is *enerally
a)0no(led*ed, are mu)h more o++ressed &y ta1es than the +eo+le of
6reat .ritain- "ran)e, ho(e'er, is )ertainly the *reat em+ire in
$uro+e (hi)h, after that of 6reat .ritain, en2oys the mildest and
most indul*ent *o'ernment-
In #olland the hea'y ta1es u+on the ne)essaries of life ha'e
ruined, it is said, their +rin)i+al manufa)tures, and are li0ely
to dis)oura*e *radually e'en their fisheries and their trade in
shi+&uildin*- The ta1es u+on the ne)essaries of life are
in)onsidera&le in 6reat .ritain, and no manufa)ture has hitherto
&een ruined &y them- The .ritish ta1es (hi)h &ear hardest on
manufa)tures are some duties u+on the im+ortation of ra(
materials, +arti)ularly u+on that of ra( sil0- The re'enue of the
states8*eneral and of the different )ities, ho(e'er, is said to
amount to more than fi'e millions t(o hundred and fifty thousand
+ounds sterlin*/ and as the inha&itants of the United ro'in)es
)annot (ell &e su++osed to amount to more than a third +art of
those of 6reat .ritain, they must, in +ro+ortion to their num&er,
&e mu)h more hea'ily ta1ed-
After all the +ro+er su&2e)ts of ta1ation ha'e &een
e1hausted, if the e1i*en)ies of the state still )ontinue to
require ne( ta1es, they must &e im+osed u+on im+ro+er ones- The
ta1es u+on the ne)essaries of life, therefore, the (isdom of that
re+u&li) (hi)h, in order to a)quire and to maintain its
inde+enden)y, has, in s+ite of its *reat fru*ality, &een in'ol'ed
in su)h e1+ensi'e (ars as ha'e o&li*ed it to )ontra)t *reat
de&ts- The sin*ular )ountries of #olland and Meeland, &esides,
require a )onsidera&le e1+ense e'en to +reser'e their e1isten)e,
or to +re'ent their &ein* s(allo(ed u+ &y the sea, (hi)h must
ha'e )ontri&uted to in)rease )onsidera&ly the load of ta1es in
those t(o +ro'in)es- The re+u&li)an form of *o'ernment seems to
&e the +rin)i+al su++ort of the +resent *randeur of #olland- The
o(ners of *reat )a+itals, the *reat mer)antile families, ha'e
*enerally either some dire)t share or some indire)t influen)e in
the administration of that *o'ernment- "or the sa0e of the
res+e)t and authority (hi)h they deri'e from this situation, they
are (illin* to li'e in a )ountry (here their )a+ital, if they
em+loy it themsel'es, (ill &rin* them less +rofit, and if they
lend it to another, less interest/ and (here the 'ery moderate
re'enue (hi)h they )an dra( from it (ill +ur)hase less of the
ne)essaries and )on'enien)es of life than in any other +art of
$uro+e- The residen)e of su)h (ealthy +eo+le ne)essarily 0ee+s
ali'e, in s+ite of all disad'anta*es, a )ertain de*ree of
industry in the )ountry- Any +u&li) )alamity (hi)h should destroy
the re+u&li)an form of *o'ernment, (hi)h should thro( the (hole
administration into the hands of no&les and of soldiers, (hi)h
should annihilate alto*ether the im+ortan)e of those (ealthy
mer)hants, (ould soon render it disa*reea&le to them to li'e in a
)ountry (here they (ere no lon*er li0ely to &e mu)h res+e)ted-
They (ould remo'e &oth their residen)es and their )a+itals to
some other )ountry, and the industry and )ommer)e of #olland
(ould soon follo( the )a+itals (hi)h su++orted them-
Cha+ter III
Of u&li) De&ts
IN that rude state of so)iety (hi)h +re)edes the e1tension
of )ommer)e and the im+ro'ement of manufa)tures, (hen those
e1+ensi'e lu1uries (hi)h )ommer)e and manufa)tures )an alone
introdu)e are alto*ether un0no(n, the +erson (ho +ossesses a
lar*e re'enue, I ha'e endea'oured to sho( in the third &oo0 of
this Inquiry, )an s+end or en2oy that re'enue in no other (ay
than &y maintainin* nearly as many +eo+le as it )an maintain- A
lar*e re'enue may at all times &e said to )onsist in the )ommand
of a lar*e quantity of the ne)essaries of life- In that rude
state of thin*s it is )ommonly +aid in a lar*e quantity of those
ne)essaries, in the materials of +lain food and )oarse )lothin*,
in )orn and )attle, in (ool and ra( hides- When neither )ommer)e
nor manufa)tures furnish anythin* for (hi)h the o(ner )an
e1)han*e the *reater +art of those materials (hi)h are o'er and
a&o'e his o(n )onsum+tion, he )an do nothin* (ith the sur+lus &ut
feed and )lothe nearly as many +eo+le as it (ill feed and )lothe-
A hos+itality in (hi)h there is no lu1ury, and a li&erality in
(hi)h there is no ostentation, o))asion, in this situation of
thin*s, the +rin)i+al e1+enses of the ri)h and the *reat- .ut
these, I ha'e li0e(ise endea'oured to sho( in the same &oo0, are
e1+enses &y (hi)h +eo+le are not 'ery a+t to ruin themsel'es-
There is not, +erha+s, any selfish +leasure so fri'olous of (hi)h
the +ursuit has not sometimes ruined e'en sensi&le men- A +assion
for )o)08fi*htin* has ruined many- .ut the instan)es, I &elie'e,
are not 'ery numerous of +eo+le (ho ha'e &een ruined &y a
hos+itality or li&erality of this 0ind, thou*h the hos+itality of
lu1ury and the li&erality of ostentation ha'e ruined many- Amon*
our feudal an)estors, the lon* time durin* (hi)h estates used to
)ontinue in the same family suffi)iently demonstrates the *eneral
dis+osition of +eo+le to li'e (ithin their in)ome- Thou*h the
rusti) hos+itality )onstantly e1er)ised &y the *reat land8holders
may not, to us in the +resent times, seem )onsistent (ith that
order (hi)h (e are a+t to )onsider as inse+ara&ly )onne)ted (ith
*ood e)onomy, yet (e must )ertainly allo( them to ha'e &een at
least so far fru*al as not )ommonly to ha'e s+ent their (hole
in)ome- A +art of their (ool and ra( hides they had *enerally an
o++ortunity of sellin* for money- Some +art of this money,
+erha+s, they s+ent in +ur)hasin* the fe( o&2e)ts of 'anity and
lu1ury (ith (hi)h the )ir)umstan)es of the times )ould furnish
them/ &ut some +art of it they seem )ommonly to ha'e hoarded-
They )ould not (ell, indeed, do anythin* else &ut hoard (hate'er
money they sa'ed- To trade (as dis*ra)eful to a *entleman, and to
lend money at interest, (hi)h at that time (as )onsidered as
usury and +rohi&ited &y la(, (ould ha'e &een still more so- In
those times of 'iolen)e and disorder, &esides, it (as )on'enient
to ha'e a hoard of money at hand, that in )ase they should &e
dri'en from their o(n home they mi*ht ha'e somethin* of 0no(n
'alue to )arry (ith them to some +la)e of safety- The same
'iolen)e (hi)h made it )on'enient to hoard made it equally
)on'enient to )on)eal the hoard- The frequen)y of treasure8tro'e,
or of treasure found of (hi)h no o(ner (as 0no(n, suffi)iently
demonstrates the frequen)y in those times &oth of hoardin* and of
)on)ealin* the &oard- Treasure8tro'e (as then )onsidered as an
im+ortant &ran)h of the re'enue of the so'erei*n- All the
treasure8tro'e of the 0in*dom (ould s)ar)e +erha+s in the +resent
times ma0e an im+ortant &ran)h of the re'enue of a +ri'ate
*entleman of a *ood estate-
The same dis+osition to sa'e and to hoard +re'ailed in the
so'erei*n as (ell as in the su&2e)ts- Amon* nations to (hom
)ommer)e and manufa)tures are little 0no(n, the so'erei*n, it has
already &een o&ser'ed in the fourth &oo0, is in a situation (hi)h
naturally dis+oses him to the +arsimony requisite for
a))umulation- In that situation the e1+ense e'en of a so'erei*n
)annot &e dire)ted &y that 'anity (hi)h deli*hts in the *audy
finery of a )ourt- The i*noran)e of the times affords &ut fe( of
the trin0ets in (hi)h that finery )onsists- Standin* armies are
not then ne)essary, so that the e1+ense e'en of a so'erei*n, li0e
that of any other *reat lord, )an &e em+loyed in s)ar)e anythin*
&ut &ounty to his tenants and hos+itality to his retainers- .ut
&ounty and hos+itality 'ery seldom lead to e1tra'a*an)e/ thou*h
'anity almost al(ays does- All the an)ient so'erei*ns of $uro+e
a))ordin*ly, it has already &een o&ser'ed, had treasures- $'ery
Tartar )hief in the +resent times is said to ha'e one-
In a )ommer)ial )ountry a&oundin* (ith e'ery sort of
e1+ensi'e lu1ury, the so'erei*n, in the same manner as almost all
the *reat +ro+rietors in his dominions, naturally s+ends a *reat
+art of his re'enue in +ur)hasin* those lu1uries- #is o(n and the
nei*h&ourin* )ountries su++ly him a&undantly (ith all the )ostly
trin0ets (hi)h )om+ose the s+lendid &ut insi*nifi)ant +a*eantry
of a )ourt- "or the sa0e of an inferior +a*eantry of the same
0ind, his no&les dismiss their retainers, ma0e their tenants
inde+endent, and &e)ome *radually themsel'es as insi*nifi)ant as
the *reater +art of the (ealthy &ur*hers in his dominions- The
same fri'olous +assions (hi)h influen)e their )ondu)t influen)e
his- #o( )an it &e su++osed that he should &e the only ri)h man
in his dominions (ho is insensi&le to +leasures of this 0ind> If
he does not, (hat he is 'ery li0ely to do, s+end u+on those
+leasures so *reat a +art of his re'enue as to de&ilitate 'ery
mu)h the defensi'e +o(er of the state, it )annot (ell &e e1+e)ted
that he should not s+end u+on them all that +art of it (hi)h is
o'er and a&o'e (hat is ne)essary for su++ortin* that defensi'e
+o(er- #is ordinary e1+ense &e)omes equal to his ordinary
re'enue, and it is (ell if it does not frequently e1)eed it- The
amassin* of treasure )an no lon*er &e e1+e)ted, and (hen
e1traordinary e1i*en)ies require e1traordinary e1+enses, he must
ne)essarily )all u+on his su&2e)ts for an e1traordinary aid- The
+resent and the late 0in* of russia are the only *reat +rin)es
of $uro+e (ho, sin)e the death of #enry I5 of "ran)e in 161C, are
su++osed to ha'e amassed any )onsidera&le treasure- The +arsimony
(hi)h leads to a))umulation has &e)ome almost as rare in
re+u&li)an as in monar)hi)al *o'ernments- The Italian re+u&li)s,
the United ro'in)es of the Netherlands, are all in de&t- The
)anton of .erne is the sin*le re+u&li) in $uro+e (hi)h has
amassed any )onsidera&le treasure- The other S(iss re+u&li)s ha'e
not- The taste for some sort of +a*eantry, for s+lendid
&uildin*s, at least, and other +u&li) ornaments, frequently
+re'ails as mu)h in the a++arently so&er senate8house of a little
re+u&li) as in the dissi+ated )ourt of the *reatest 0in*-
The (ant of +arsimony in time of +ea)e im+oses the ne)essity
of )ontra)tin* de&t in time of (ar- When (ar )omes, there is no
money in the treasury &ut (hat is ne)essary for )arryin* on the
ordinary e1+ense of the +ea)e esta&lishment- In (ar an
esta&lishment of three of four times that e1+ense &e)omes
ne)essary for the defen)e of the state, and )onsequently a
re'enue three or four times *reater than the +ea)e re'enue-
Su++osin* that the so'erei*n should ha'e, (hat he s)ar)e e'er
has, the immediate means of au*mentin* his re'enue in +ro+ortion
to the au*mentation of his e1+ense, yet still the +rodu)e of the
ta1es, from (hi)h this in)rease of re'enue must &e dra(n, (ill
not &e*in to )ome into the treasury till +erha+s ten or t(el'e
months after they are im+osed- .ut the moment in (hi)h (ar
&e*ins, or rather the moment in (hi)h it a++ears li0ely to &e*in,
the army must &e au*mented, the fleet must &e fitted out, the
*arrisoned to(ns must &e +ut into a +osture of defen)e/ that
army, that fleet, those *arrisoned to(ns must &e furnished (ith
arms, ammunition, and +ro'isions- An immediate and *reat e1+ense
must &e in)urred in that moment of immediate dan*er, (hi)h (ill
not (ait for the *radual and slo( returns of the ne( ta1es- In
this e1i*en)y *o'ernment )an ha'e no other resour)e &ut in
&orro(in*-
The same )ommer)ial state of so)iety (hi)h, &y the o+eration
of moral )auses, &rin*s *o'ernment in this manner into the
ne)essity of &orro(in*, +rodu)es in the su&2e)ts &oth an a&ility
and an in)lination to lend- If it )ommonly &rin*s alon* (ith it
the ne)essity of &orro(in*, it li0e(ise &rin*s alon* (ith it the
fa)ility of doin* so-
A )ountry a&oundin* (ith mer)hants and manufa)turers
ne)essarily a&ounds (ith a set of +eo+le throu*h (hose hands not
only their o(n )a+itals, &ut the )a+itals of all those (ho either
lend them money, or trust them (ith *oods, +ass as frequently, or
more frequently, than the re'enue of a +ri'ate man, (ho, (ithout
trade or &usiness, li'es u+on his in)ome, +asses throu*h his
hands- The re'enue of su)h a man )an re*ularly +ass throu*h his
hands only on)e in a year- .ut the (hole amount of the )a+ital
and )redit of a mer)hant, (ho deals in a trade of (hi)h the
returns are 'ery qui)0, may sometimes +ass throu*h his hands t(o,
three, or four times a year- A )ountry a&oundin* (ith mer)hants
and manufa)turers, therefore, ne)essarily a&ounds (ith a set of
+eo+le (ho ha'e it at all times in their +o(er to ad'an)e, if
they )hoose to do so, a 'ery lar*e sum of money to *o'ernment-
#en)e the a&ility in the su&2e)ts of a )ommer)ial state to lend-
Commer)e and manufa)tures )an seldom flourish lon* in any
state (hi)h does not en2oy a re*ular administration of 2usti)e,
in (hi)h the +eo+le do not feel themsel'es se)ure in the
+ossession of their +ro+erty, in (hi)h the faith of )ontra)ts is
not su++orted &y la(, and in (hi)h the authority of the state is
not su++osed to &e re*ularly em+loyed in enfor)in* the +ayment of
de&ts from all those (ho are a&le to +ay- Commer)e and
manufa)tures, in short, )an seldom flourish in any state in (hi)h
there is not a )ertain de*ree of )onfiden)e in the 2usti)e of
*o'ernment- The same )onfiden)e (hi)h dis+oses *reat mer)hants
and manufa)turers, u+on ordinary o))asions, to trust their
+ro+erty to the +rote)tion of a +arti)ular *o'ernment, dis+oses
them, u+on e1traordinary o))asions, to trust that *o'ernment (ith
the use of their +ro+erty- .y lendin* money to *o'ernment, they
do not e'en for a moment diminish their a&ility to )arry on their
trade and manufa)tures- On the )ontrary, they )ommonly au*ment
it- The ne)essities of the state render *o'ernment u+on most
o))asions (illin* to &orro( u+on terms e1tremely ad'anta*eous to
the lender- The se)urity (hi)h it *rants to the ori*inal )reditor
is made transfera&le to any other )reditor, and, from the
uni'ersal )onfiden)e in the 2usti)e of the state, *enerally sells
in the mar0et for more than (as ori*inally +aid for it- The
mer)hant or monied man ma0es money &y lendin* money to
*o'ernment, and instead of diminishin*, in)reases his tradin*
)a+ital- #e *enerally )onsiders it as a fa'our, therefore, (hen
the administration admits him to a share in the first
su&s)ri+tion for a ne( loan- #en)e the in)lination or (illin*ness
in the su&2e)ts of a )ommer)ial state to lend-
The *o'ernment of su)h a state is 'ery a+t to re+ose itself
u+on this a&ility and (illin*ness of its su&2e)ts to lend it
their money on e1traordinary o))asions- It foresees the fa)ility
of &orro(in*, and therefore dis+enses itself from the duty of
sa'in*-
In a rude state of so)iety there are no *reat mer)antile or
manufa)turin* )a+itals- The indi'iduals (ho hoard (hate'er money
they )an sa'e, and (ho )on)eal their hoard, do so from a distrust
of the 2usti)e of *o'ernment, from a fear that if it (as 0no(n
that they had a hoard, and (here that hoard (as to &e found, they
(ould qui)0ly &e +lundered- In su)h a state of thin*s fe( +eo+le
(ould &e a&le, and no&ody (ould &e (illin*, to lend their money
to *o'ernment on e1traordinary e1i*en)ies- The so'erei*n feels
that he must +ro'ide for su)h e1i*en)ies &y sa'in* &e)ause he
foresees the a&solute im+ossi&ility of &orro(in*- This foresi*ht
in)reases still further his natural dis+osition to sa'e-
The +ro*ress of the enormous de&ts (hi)h at +resent o++ress,
and (ill in the lon*8run +ro&a&ly ruin, all the *reat nations of
$uro+e has &een +retty uniform- Nations, li0e +ri'ate men, ha'e
*enerally &e*un to &orro( u+on (hat may &e )alled +ersonal
)redit, (ithout assi*nin* or mort*a*in* any +arti)ular fund for
the +ayment of the de&t/ and (hen this resour)e has failed them,
they ha'e *one on to &orro( u+on assi*nments or mort*a*es of
+arti)ular funds-
What is )alled the unfunded de&t of 6reat .ritain is
)ontra)ted in the former of those t(o (ays- It )onsists +artly in
a de&t (hi)h &ears, or is su++osed to &ear, no interest, and
(hi)h resem&les the de&ts that a +ri'ate man )ontra)ts u+on
a))ount, and +artly in a de&t (hi)h &ears interest, and (hi)h
resem&les (hat a +ri'ate man )ontra)ts u+on his &ill or
+romissory note- The de&ts (hi)h are due either for e1traordinary
ser'i)es, or for ser'i)es either not +ro'ided for, or not +aid at
the time (hen they are +erformed, +art of the e1trordinaries of
the army, na'y, and ordnan)e, the arrears of su&sidies to forei*n
+rin)es, those of seamen=s (a*es, et)-, usually )onstitute a de&t
of the first 0ind, sometimes in +ayment of a +art of su)h Na'y
and e1)hequer &ills, (hi)h are issued sometimes in +ayment of a
+art of su)h de&ts and sometimes for other +ur+oses, )onstitute a
de&t of the se)ond 0ind8 e1)hequer &ills &earin* interest from
the day on (hi)h they are issued, and na'y &ills si1 months after
they are issued- The .an0 of $n*land, either &y 'oluntarily
dis)ountin* those &ills at their )urrent 'alue, or &y a*reein*
(ith *o'ernment for )ertain )onsiderations to )ir)ulate e1)hequer
&ills, that is, to re)ei'e them at +ar, +ayin* the interest (hi)h
ha++ens to &e due u+on them, 0ee+s u+ their 'alue and fa)ilitates
their )ir)ulation, and there&y frequently ena&les *o'ernment to
)ontra)t a 'ery lar*e de&t of this 0ind- In "ran)e, (here there
is no &an0, the state &ills 9&illets d=etat: ha'e sometimes sold
at si1ty and se'enty +er )ent dis)ount- Durin* the *reat
re)oina*e in %in* William=s time, (hen the .an0 of $n*land
thou*ht +ro+er to +ut a sto+ to its usual transa)tions, e1)hequer
&ills and tallies are said to ha'e sold from t(enty8fi'e to si1ty
+er )ent dis)ount/ o(in* +artly, no dou&t, to the su++osed
insta&ility of the ne( *o'ernment esta&lished &y the Re'olution,
&ut +artly, too, to the (ant of the su++ort of the .an0 of
$n*land-
When this resour)e is e1hausted, and it &e)omes ne)essary,
in order to raise money, to assi*n or mort*a*e some +arti)ular
&ran)h of the +u&li) re'enue for the +ayment of the de&t,
*o'ernment has u+on different o))asions done this in t(o
different (ays- Sometimes it has made this assi*nment or mort*a*e
for a short +eriod of time only, a year, or a fe( years, for
e1am+le/ and sometimes for +er+etuity- In the one )ase the fund
(as su++osed suffi)ient to +ay, (ithin the limited time, &oth
+rin)i+al and interest of the money &orro(ed- In the other it (as
su++osed suffi)ient to +ay the interest only, or a +er+etual
annuity equi'alent to the interest, *o'ernment &ein* at li&erty
to redeem at any time this annuity u+on +ayin* &a)0 the +rin)i+al
sum &orro(ed- When money (as raised in the one (ay, it (as said
to &e raised &y anti)i+ation/ (hen in the other, &y +er+etual
fundin*, or, more shortly, &y fundin*-
In 6reat .ritain the land and malt ta1es are re*ularly
anti)i+ated e'ery year, &y 'irtue of a &orro(in* )lause
)onstantly inserted into the a)ts (hi)h im+ose them- The .an0 of
$n*land *enerally ad'an)es at an interest, (hi)h sin)e the
Re'olution has 'aried from ei*ht to three +er )ent, the sums for
(hi)h those ta1es are *ranted, and re)ei'es +ayment as their
+rodu)e *radually )omes in- If there is a defi)ien)y, (hi)h there
al(ays is, it is +ro'ided for in the su++lies of the ensuin*
year- The only )onsidera&le &ran)h of the +u&li) re'enue (hi)h
yet remains unmort*a*ed is thus re*ularly s+ent &efore it )omes
in- !i0e an im+ro'ident s+endthrift, (hose +ressin* o))asions
(ill not allo( him to (ait for the re*ular +ayment of his
re'enue, the state is in the )onstant +ra)ti)e of &orro(in* of
its o(n fa)tors and a*ents, and of +ayin* interest for the use of
its o(n money-
In the rei*n of %in* William, and durin* a *reat +art of
that of Jueen Anne, &efore (e had &e)ome so familiar as (e are
no( (ith the +ra)ti)e of +er+etual fundin*, the *reater +art of
the ne( ta1es (ere im+osed &ut for a short +eriod of time 9for
four, fi'e, si1, or se'en years only:, and a *reat +art of the
*rants of e'ery year )onsisted in loans u+on anti)i+ations of the
+rodu)e of those ta1es- The +rodu)e &ein* frequently insuffi)ient
for +ayin* (ithin the limited term the +rin)i+al and interest of
the money &orro(ed, defi)ien)ies arose, to ma0e *ood (hi)h it
&e)ame ne)essary to +rolon* the term-
In 16F7, &y the ?th of William III, )- EC, the defi)ien)ies
of se'eral ta1es (ere )har*ed u+on (hat (as then )alled the first
*eneral mort*a*e or fund, )onsistin* of a +rolon*ation to the
first of Au*ust 17C6 of se'eral different ta1es (hi)h (ould ha'e
e1+ired (ithin a shorter term, and of (hi)h the +rodu)e (as
a))umulated into one *eneral fund- The defi)ien)ies )har*ed u+on
this +rolon*ed term amounted to !H,16C,GHF 1Gs- F 1DGd-
In 17C1, those duties, (ith some others, (ere still further
+rolon*ed for the li0e +ur+oses till the first of Au*ust 171C,
and (ere )alled the se)ond *eneral mort*a*e or fund- The
defi)ien)ies )har*ed u+on it amounted to !E,CHH,FFF 7s- 11 1DEd-
In 17C7, those duties (ere still further +rolon*ed, as a
fund for ne( loans, to the first of Au*ust 171E, and (ere )alled
the third *eneral mort*a*e or fund- The sum &orro(ed u+on it (as
!F?B,EHG 11s- F 1DGd-
In 17C?, those duties (ere all 9e1)e+t the Old Su&sidy of
Tonna*e and ounda*e, of (hi)h one moiety only (as made a +art of
this fund, and a duty u+on the im+ortation of S)ot)h linen, (hi)h
had &een ta0en off &y the Arti)les of Union: still further
)ontinued, as a fund for ne( loans, to the first of Au*ust 171G,
and (ere )alled the fourth *eneral mort*a*e or fund- The sum
&orro(ed u+on it (as !FEH,176 Fs- E 1DGd-
In 17CF, those )ities (ere all 9e1)e+t the Old Su&sidy of
Tonna*e and ounda*e, (hi)h (as no( left out of this fund
alto*ether: still further )ontinued for the same +ur+ose to the
first of Au*ust 1716, and (ere )alled the fifth *eneral mort*a*e
or fund- The sum &orro(ed u+on it (as !FEE,CEF 6s-
In 171C, those duties (ere a*ain +rolon*ed to the first of
Au*ust 17EC, and (ere )alled the si1th *eneral mort*a*e or fund-
The sum &orro(ed u+on it (as !1,EF6,HHE Fs- 11 BDGd-
In 1711, the same duties 9(hi)h at this time (ere thus
su&2e)t to four different anti)i+ations: to*ether (ith se'eral
others (ere )ontinued for e'er, and made a fund for +ayin* the
interest of the )a+ital of the South Sea Com+any, (hi)h had that
year ad'an)ed to *o'ernment, for +ayin* de&ts and ma0in* *ood
defi)ien)ies, the sum of !F,177,F67 1Hs- Gd-/ the *reatest loan
(hi)h at that time had e'er &een made-
.efore this +eriod, the +rin)i+al, so far as I ha'e &een
a&le to o&ser'e, the only ta1es (hi)h in order to +ay the
interest of a de&t had &een im+osed for +er+etuity, (ere those
for +ayin* the interest of the money (hi)h had &een ad'an)ed to
*o'ernment &y the .an0 and the $ast India Com+any, and of (hat it
(as e1+e)ted (ould &e ad'an)ed, &ut (hi)h (as ne'er ad'an)ed, &y
a +ro2e)ted land &an0- The &an0 fund at this time amounted to
!B,B7H,CE7 17s- 1C 1DEd-, for (hi)h (as +aid an annuity or
interest of !EC6,HC1 1Bs- Hd- The $ast India fund amounted to
!B,ECC,CCC, for (hi)h (as +aid an annuity or interest of
!16C,CCC8 the &an0 fund &ein* at si1 +er )ent, the $ast India
fund at fi'e +er )ent interest-
In 171H, &y the 1st of 6eor*e I, )- 1E, the different ta1es
(hi)h had &een mort*a*ed for +ayin* the &an0 annuity, to*ether
(ith se'eral others (hi)h &y this a)t (ere li0e(ise rendered
+er+etual, (ere a))umulated into one )ommon fund )alled The
A**re*ate "und, (hi)h (as )har*ed not only (ith the +ayments of
the &an0 annuity, &ut (ith se'eral other annuities and &urdens of
different 0inds- This fund (as after(ards au*mented &y the Brd of
6eor*e I, )- ?, and &y the Hth of 6eor*e I, )- B, and the
different duties (hi)h (ere then added to it (ere li0e(ise
rendered +er+etual-
In 1717, &y the Brd of 6eor*e I, )- 7, se'eral other ta1es
(ere rendered +er+etual, and a))umulated into another )ommon
fund, )alled The 6eneral "und, for the +ayment of )ertain
annuities, amountin* in the (hole to !7EG,?GF 6s- 1C 1DEd-
In )onsequen)e of those different a)ts, the *reater +art of
the ta1es (hi)h &efore had &een anti)i+ated only for a short term
of years (ere rendered +er+etual as a fund for +ayin*, not the
)a+ital, &ut the interest only, of the money (hi)h had &een
&orro(ed u+on them &y different su))essi'e anti)i+ations-
#ad money ne'er &een raised &ut &y anti)i+ation, the )ourse
of a fe( years (ould ha'e li&erated the +u&li) re'enue (ithout
any other attention of *o'ernment &esides that of not o'erloadin*
the fund &y )har*in* it (ith more de&t than it )ould +ay (ithin
the limited term, and of not anti)i+atin* a se)ond time &efore
the e1+iration of the first anti)i+ation- .ut the *reater +art of
$uro+ean *o'ernments ha'e &een in)a+a&le of those attentions-
They ha'e frequently o'erloaded the fund e'en u+on the first
anti)i+ation, and (hen this ha++ened not to &e the )ase, they
ha'e *enerally ta0en )are to o'erload it &y anti)i+atin* a se)ond
and a third time &efore the e1+iration of the first anti)i+ation-
The fund &e)omin* in this manner alto*ether insuffi)ient for
+ayin* &oth +rin)i+al and interest of the money &orro(ed u+on it,
it &e)ame ne)essary to )har*e it (ith the interest only, or a
+er+etual annuity equal to the interest, and su)h un+ro'ident
anti)i+ations ne)essarily *a'e &irth to the more ruinous +ra)ti)e
of +er+etual fundin*- .ut thou*h this +ra)ti)e ne)essarily +uts
off the li&eration of the +u&li) re'enue from a fi1ed +eriod to
one so indefinite that it is not 'ery li0ely e'er to arri'e, yet
as a *reater sum )an in all )ases &e raised &y this ne( +ra)ti)e
than &y the old one of anti)i+ations, the former, (hen men ha'e
on)e &e)ome familiar (ith it, has in the *reat e1i*en)ies of the
state &een uni'ersally +referred to the latter- To relie'e the
+resent e1i*en)y is al(ays the o&2e)t (hi)h +rin)i+ally interests
those immediately )on)erned in the administration of +u&li)
affairs- The future li&eration of the +u&li) re'enue they lea'e
to the )are of +osterity-
Durin* the rei*n of Jueen Anne, the mar0et rate of interest
had fallen from si1 to fi'e +er )ent, and in the t(elfth year of
her rei*n fi'e +er )ent (as de)lared to &e the hi*hest rate (hi)h
)ould la(fully &e ta0en for money &orro(ed u+on +ri'ate se)urity-
Soon after the *reater +art of the tem+orary ta1es of 6reat
.ritain had &een rendered +er+etual, and distri&uted into the
A**re*ate, South Sea, and 6eneral "unds, the )reditors of the
+u&li), li0e those of +ri'ate +ersons, (ere indu)ed to a))e+t of
fi'e +er )ent for the interest of their money, (hi)h o))asioned a
sa'in* of one +er )ent u+on the )a+ital of the *reater +art of
the de&ts (hi)h had &een thus funded for +er+etuity, or of
one8si1th of the *reater +art of the annuities (hi)h (ere +aid
out of the three *reat funds a&o'e mentioned- This sa'in* left a
)onsidera&le sur+lus in the +rodu)e of the different ta1es (hi)h
had &een a))umulated into those funds o'er and a&o'e (hat (as
ne)essary for +ayin* the annuities (hi)h (ere no( )har*ed u+on
them, and laid the foundation of (hat has sin)e &een )alled the
Sin0in* "und- In 1717, it amounted to !BEB,GBG 7s- 7 1DEd- In
17E7, the interest of the *reater +art of the +u&li) de&ts (as
still further redu)ed to four +er )ent/ and in 17HB and 17H7, to
three and a half and three +er )ent/ (hi)h redu)tions still
further au*mented the sin0in* fund-
A sin0in* fund, thou*h instituted for the +ayment of old,
fa)ilitates 'ery mu)h the )ontra)tin* of ne( de&ts- It is a
su&sidiary fund al(ays at hand to &e mort*a*ed in aid of any
other dou&tful fund u+on (hi)h money is +ro+osed to &e raised in
an e1i*en)y of the state- Whether the sin0in* fund of 6reat
.ritain has &een more frequently a++lied to the one or to the
other of those t(o +ur+oses (ill suffi)iently a++ear &y and &y-
.esides those t(o methods of &orro(in*, &y anti)i+ations and
&y +er+etual fundin*, there are t(o other methods (hi)h hold a
sort of middle +la)e &et(een them- These are, that of &orro(in*
u+on annuities for terms of years, and that of &orro(in* u+on
annuities for li'es-
Durin* the rei*ns of %in* William and Jueen Anne, lar*e sums
(ere frequently &orro(ed u+on annuities for terms of years, (hi)h
(ere sometimes lon*er and sometimes shorter- In 16FB, an a)t (as
+assed for &orro(in* one million u+on an annuity of fourteen +er
)ent, or of !1GC,CCC a year for si1teen years- In 16F1, an a)t
(as +assed for &orro(in* a million u+on annuities for li'es, u+on
terms (hi)h in the +resent times (ould a++ear 'ery ad'anta*eous-
.ut the su&s)ri+tion (as not filled u+- In the follo(in* year the
defi)ien)y (as made *ood &y &orro(in* u+on annuities for li'es at
fourteen +er )ent, or at little more than se'en years= +ur)hase-
In 16FH, the +ersons (ho had +ur)hased those annuities (ere
allo(ed to e1)han*e them for others of ninety8si1 years u+on
+ayin* into the $1)hequer si1ty8three +ounds in the hundred/ that
is, the differen)e &et(een fourteen +er )ent for life, and
fourteen +er )ent for ninety8si1 years, (as sold for si1ty8three
+ounds, or for four and a half years= +ur)hase- Su)h (as the
su++osed insta&ility of *o'ernment that e'en these terms +ro)ured
fe( +ur)hasers- In the rei*n of Jueen Anne money (as u+on
different o))asions &orro(ed &oth u+on annuities for li'es, and
u+on annuities for terms of thirty8t(o, of ei*hty8nine, of
ninety8ei*ht, and of ninety8nine years- In 171F, the +ro+rietors
of the annuities for thirty8t(o years (ere indu)ed to a))e+t in
lieu of them South Sea sto)0 to the amount of ele'en and a half
years= +ur)hase of the annuities, to*ether (ith an additional
quantity of sto)0 equal to the arrears (hi)h ha++ened then to &e
due u+on them- In 17EC, the *reater +art of the other annuities
for terms of years &oth lon* and short (ere su&s)ri&ed into the
same fund- The lon* annuities at that time amounted to !666,?E1
?s- B 1DEd- a year- On the Hth of Aanuary 177H, the remainder of
them, or (hat (as not su&s)ri&ed at that time, amounted only to
!1B6,GHB 1Es- ?d-
Durin* the t(o (ars (hi)h &e*an in 17BF and in 17HH, little
money (as &orro(ed either u+on annuities for terms of years, or
u+on those for li'es- An annuity for ninety8ei*ht or ninety8nine
years, ho(e'er, is (orth nearly as mu)h money as a +er+etuity,
and should, therefore, one mi*ht thin0, &e a fund for &orro(in*
nearly as mu)h- .ut those (ho, in order to ma0e family
settlements, and to +ro'ide for remote futurity, &uy into the
+u&li) sto)0s, (ould not )are to +ur)hase into one of (hi)h the
'alue (as )ontinually diminishin*/ and su)h +eo+le ma0e a 'ery
)onsidera&le +ro+ortion &oth of the +ro+rietors and +ur)hasers of
sto)0- An annuity for a lon* term of years, therefore, thou*h its
intrinsi) 'alue may &e 'ery nearly the same (ith that of a
+er+etual annuity, (ill not find nearly the same num&er of
+ur)hasers- The su&s)ri&ers to a ne( loan, (ho mean *enerally to
sell their su&s)ri+tions as soon as +ossi&le, +refer *reatly a
+er+etual annuity redeema&le &y arliament to an irredeema&le
annuity for a lon* term of years of only equal amount- The 'alue
of the former may &e su++osed al(ays the same, or 'ery nearly the
same, and it ma0es, therefore, a more )on'enient transfera&le
sto)0 than the latter-
Durin* the t(o last8mentioned (ars, annuities, either for
terms of years or for li'es, (ere seldom *ranted &ut as +remiums
to the su&s)ri&ers to a ne( loan o'er and a&o'e the redeema&le
annuity or interest u+on the )redit of (hi)h the loan (as
su++osed to &e made- They (ere *ranted, not as the +ro+er fund
u+on (hi)h the money (as &orro(ed, &ut as an additional
en)oura*ement to the lender-
Annuities for li'es ha'e o))asionally &een *ranted in t(o
different (ays/ either u+on se+arate li'es, or u+on lots of
li'es, (hi)h in "ren)h are )alled Tontines, from the name of
their in'entor- When annuities are *ranted u+on se+arate li'es,
the death of e'ery indi'idual annuitant dis&urthens the +u&li)
re'enue so far as it (as affe)ted &y his annuity- When annuities
are *ranted u+on tontines, the li&eration of the +u&li) re'enue
does not )ommen)e till the death of all annuitants )om+rehended
in one lot, (hi)h may sometimes )onsist of t(enty or thirty
+ersons, of (hom the sur'i'ors su))eed to the annuities of all
those (ho die &efore them, the last sur'i'or su))eedin* to the
annuities of the (hole lot- U+on the same re'enue more money )an
al(ays &e raised &y tontines than &y annuities for se+arate
li'es- An annuity, (ith a ri*ht of sur'i'orshi+, is really (orth
more than an equal annuity for a se+arate life, and from the
)onfiden)e (hi)h e'ery man naturally has in his o(n *ood fortune,
the +rin)i+le u+on (hi)h is founded the su))ess of all lotteries,
su)h an annuity *enerally sells for somethin* more than it is
(orth- In )ountries (here it is usual for *o'ernment to raise
money &y *rantin* annuities, tontines are u+on this a))ount
*enerally +referred to annuities for se+arate li'es- The
e1+edient (hi)h (ill raise most money is almost al(ays +referred
to that (hi)h is li0ely to &rin* a&out in the s+eediest manner
the li&eration of the +u&li) re'enue-
In "ran)e a mu)h *reater +ro+ortion of the +u&li) de&ts
)onsists in annuities for li'es than in $n*land- A))ordin* to a
memoir +resented &y the arliament of .ordeau1 to the 0in* in
176G, the (hole +u&li) de&t of "ran)e is estimated at t(enty8four
hundred millions of li'res, of (hi)h the )a+ital for (hi)h
annuities for li'es had &een *ranted is su++osed to amount to
three hundred millions, the ei*hth +art of the (hole +u&li) de&t-
The annuities themsel'es are )om+uted to amount to thirty
millions a year, the fourth +art of one hundred and t(enty
millions, the su++osed interest of that (hole de&t- These
estimations, I 0no( 'ery (ell, are not e1a)t, &ut ha'in* &een
+resented &y so 'ery res+e)ta&le a &ody as a++ro1imations to the
truth, they may, I a++rehend, &e )onsidered as su)h- It is not
the different de*rees of an1iety in the t(o *o'ernments of "ran)e
and $n*land for the li&eration of the +u&li) re'enue (hi)h
o))asions this differen)e in their res+e)ti'e modes of &orro(in*-
It arises alto*ether from the different 'ie(s and interests of
the lenders-
In $n*land, the seat of *o'ernment &ein* in the *reatest
mer)antile )ity in the (orld, the mer)hants are *enerally the
+eo+le (ho ad'an)e money to *o'ernment- .y ad'an)in* it they do
not mean to diminish, &ut, on the )ontrary, to in)rease their
mer)antile )a+itals, and unless they e1+e)ted to sell (ith some
+rofit their share in the su&s)ri+tion for a ne( loan, they ne'er
(ould su&s)ri&e- .ut if &y ad'an)in* their money they (ere to
+ur)hase, instead of +er+etual annuities, annuities for li'es
only, (hether their o(n or those of other +eo+le, they (ould not
al(ays &e so li0ely to sell them (ith a +rofit- Annuities u+on
their o(n li'es they (ould al(ays sell (ith loss, &e)ause no man
(ill *i'e for an annuity u+on the life of another, (hose a*e and
state of health are nearly the same (ith his o(n, the same +ri)e
(hi)h he (ould *i'e for one u+on his o(n- An annuity u+on the
life of a third +erson, indeed, is, no dou&t, of equal 'alue to
the &uyer and the seller/ &ut its real 'alue &e*ins to diminish
from the moment it is *ranted, and )ontinues to do so more and
more as lon* as it su&sists- It )an ne'er, therefore, ma0e so
)on'enient a transfera&le sto)0 as a +er+etual annuity, of (hi)h
the real 'alue may &e su++osed al(ays the same, or 'ery nearly
the same-
In "ran)e, the seat of *o'ernment not &ein* in a *reat
mer)antile )ity, mer)hants do not ma0e so *reat a +ro+ortion of
the +eo+le (ho ad'an)e money to *o'ernment- The +eo+le )on)erned
in the finan)es, the farmers *eneral, the re)ei'ers of the ta1es
(hi)h are not in farm, the )ourt &an0ers, et)-, ma0e the *reater
+art of those (ho ad'an)e their money in all +u&li) e1i*en)ies-
Su)h +eo+le are )ommonly men of mean &irth, &ut of *reat (ealth,
and frequently of *reat +ride- They are too +roud to marry their
equals, and (omen of quality disdain to marry them- They
frequently resol'e, therefore, to li'e &a)helors, and ha'in*
neither any families of their o(n, nor mu)h re*ard for those of
their relations, (hom they are not al(ays 'ery fond of
a)0no(led*in*, they desire only to li'e in s+lendour durin* their
o(n time, and are not un(illin* that their fortune should end
(ith themsel'es- The num&er of ri)h +eo+le, &esides, (ho are
either a'erse to marry, or (hose )ondition of life renders it
either im+ro+er or in)on'enient for them to do so, is mu)h
*reater in "ran)e than in $n*land- To su)h +eo+le, (ho ha'e
little or no )are for +osterity, nothin* )an &e more )on'enient
than to e1)han*e their )a+ital for a re'enue (hi)h is to last
2ust as lon*, and no lon*er, than they (ish it to do-
The ordinary e1+ense of the *reater +art of modern
*o'ernments in time of +ea)e &ein* equal or nearly equal to their
ordinary re'enue, (hen (ar )omes they are &oth un(illin* and
una&le to in)rease their re'enue in +ro+ortion to the in)rease of
their e1+ense- They are un(illin* for fear of offendin* the
+eo+le, (ho, &y so *reat and so sudden an in)rease of ta1es,
(ould soon &e dis*usted (ith the (ar/ and they are una&le from
not (ell 0no(in* (hat ta1es (ould &e suffi)ient to +rodu)e the
re'enue (anted- The fa)ility of &orro(in* deli'ers them from the
em&arrassment (hi)h this fear and ina&ility (ould other(ise
o))asion- .y means of &orro(in* they are ena&led, (ith a 'ery
moderate in)rease of ta1es, to raise, from year to year, money
suffi)ient for )arryin* on the (ar, and &y the +ra)ti)e of
+er+etually fundin* they are ena&led, (ith the smallest +ossi&le
in)rease of ta1es, to raise annually the lar*est +ossi&le sum of
money- In *reat em+ires the +eo+le (ho li'e in the )a+ital, and
in the +ro'in)es remote from the s)ene of a)tion, feel, many of
them, s)ar)e any in)on'enien)y from the (ar/ &ut en2oy, at their
ease, the amusement of readin* in the ne(s+a+ers the e1+loits of
their o(n fleets and armies- To them this amusement )om+ensates
the small differen)e &et(een the ta1es (hi)h they +ay on a))ount
of the (ar, and those (hi)h they had &een a))ustomed to +ay in
time of +ea)e- They are )ommonly dissatisfied (ith the return of
+ea)e, (hi)h +uts an end to their amusement, and to a thousand
'isionary ho+es of )onquest and national *lory from a lon*er
)ontinuan)e of the (ar-
The return of +ea)e, indeed, seldom relie'es them from the
*reater +art of the ta1es im+osed durin* the (ar- These are
mort*a*ed for the interest of the de&t )ontra)ted in order to
)arry it on- If, o'er and a&o'e +ayin* the interest of this de&t,
and defrayin* the ordinary e1+ense of *o'ernment, the old
re'enue, to*ether (ith the ne( ta1es, +rodu)e some sur+lus
re'enue, it may +erha+s &e )on'erted into a sin0in* fund for
+ayin* off the de&t- .ut, in the first +la)e, this sin0in* fund,
e'en su++osin* it should &e a++lied to no other +ur+ose, is
*enerally alto*ether inadequate for +ayin*, in the )ourse of any
+eriod durin* (hi)h it )an reasona&ly &e e1+e)ted that +ea)e
should )ontinue, the (hole de&t )ontra)ted durin* the (ar/ and,
in the se)ond +la)e, this fund is almost al(ays a++lied to other
+ur+oses-
The ne( ta1es (ere im+osed for the sole +ur+ose of +ayin*
the interest of the money &orro(ed u+on them- If they +rodu)e
more, it is *enerally somethin* (hi)h (as neither intended nor
e1+e)ted, and is therefore seldom 'ery )onsidera&le- Sin0in*
funds ha'e *enerally arisen not so mu)h from any sur+lus of the
ta1es (hi)h (as o'er and a&o'e (hat (as ne)essary for +ayin* the
interest or annuity ori*inally )har*ed u+on them, as from a
su&sequent redu)tion of that interest- That of #olland in 16HH,
and that of the e))lesiasti)al state in 16?H, (ere &oth formed in
this manner- #en)e the usual insuffi)ien)y of su)h funds-
Durin* the most +rofound +ea)e 'arious e'ents o))ur (hi)h
require an e1traordinary e1+ense, and *o'ernment finds it al(ays
more )on'enient to defray this e1+ense &y misa++lyin* the sin0in*
fund than &y im+osin* a ne( ta1- $'ery ne( ta1 is immediately
felt more or less &y the +eo+le- It o))asions al(ays some murmur,
and meets (ith some o++osition- The more ta1es may ha'e &een
multi+lied, the hi*her they may ha'e &een raised u+on e'ery
different su&2e)t of ta1ation/ the more loudly the +eo+le
)om+lain of e'ery ne( ta1, the more diffi)ult it &e)omes, too,
either to find out ne( su&2e)ts of ta1ation, or to raise mu)h
hi*her the ta1es already im+osed u+on the old- A momentary
sus+ension of the +ayment of de&t is not immediately felt &y the
+eo+le, and o))asions neither murmur nor )om+laint- To &orro( of
the sin0in* fund is al(ays an o&'ious and easy e1+edient for
*ettin* out of the +resent diffi)ulty- The more the +u&li) de&ts
may ha'e &een a))umulated, the more ne)essary it may ha'e &e)ome
to study to redu)e them, the more dan*erous, the more ruinous it
may &e to misa++ly any +art of the sin0in* fund/ the less li0ely
is the +u&li) de&t to &e redu)ed to any )onsidera&le de*ree, the
more li0ely, the more )ertainly is the sin0in* fund to &e
misa++lied to(ards defrayin* all the e1traordinary e1+enses (hi)h
o))ur in time of +ea)e- When a nation is already o'er&urdened
(ith ta1es, nothin* &ut the ne)essities of a ne( (ar, nothin* &ut
either the animosity of national 'en*ean)e, or the an1iety for
national se)urity, )an indu)e the +eo+le to su&mit, (ith
tolera&le +atien)e, to a ne( ta1- #en)e the usual misa++li)ation
of the sin0in* fund-
In 6reat .ritain, from the time that (e had first re)ourse
to the ruinous e1+edient of +er+etual fundin*, the redu)tion of
the +u&li) de&t in time of +ea)e has ne'er &orne any +ro+ortion
to its a))umulation in time of (ar- It (as in the (ar (hi)h &e*an
in 16??, and (as )on)luded &y the Treaty of Rys(i)0 in 16F7, that
the foundation of the +resent enormous de&t of 6reat .ritain (as
first laid-
On the B1st of De)em&er 16F7, the +u&li) de&ts of 6reat
.ritain, funded and unfunded, amounted to !E1,H1H,7GE 1Bs- ?
1DEd- A *reat +art of those de&ts had &een )ontra)ted u+on short
anti)i+ations, and some +art u+on annuities for li'es, so that
&efore the B1st of De)em&er 17C1, in less than four years, there
had +artly &een +aid off, and +artly re'erted to the +u&li), the
sum of !H,1E1,CG1 1Es- C BDGd-/ a *reater redu)tion of the +u&li)
de&t than has e'er sin)e &een &rou*ht a&out in so short a +eriod
of time- The remainin* de&t, therefore, amounted only to
!16,BFG,7C1 1s- 7 1DGd-
In the (ar (hi)h &e*an in 17CF-, and (hi)h (as )on)luded &y
the Treaty of Utre)ht, the +u&li) de&ts (ere still more
a))umulated- On the B1st of De)em&er 171G, they amounted to
!HB,6?1,C76 Hs- 6 1DEd- The su&s)ri+tion into the South Sea fund
of the short and lon* annuities in)reased the )a+ital of the
+u&li) de&ts, so that on the B1st of De)em&er 17EE it amounted to
!HH,E?E,F7? 1s- B HD6d- The redu)tion of the de&t &e*an in 17EB,
and (ent on so slo(ly that, on the B1st of De)em&er 17BF, durin*
se'enteen years of +rofound +ea)e, the (hole sum +aid off (as no
more than !?,BE?,BHG 17s- 11 BD1Ed-, the )a+ital of the +u&li)
de&t at that time amountin* to !G6,FHG,6EB Bs- G 7D1Ed-
The S+anish (ar, (hi)h &e*an in 17BF, and the "ren)h (ar
(hi)h soon follo(ed it o))asioned further in)rease of the de&t,
(hi)h, on the B1st of De)em&er 17G?, after the (ar had &een
)on)luded &y the Treaty of Ai18la8Cha+elle, amounted to
!7?,EFB,B1B 1s- 1C BDGd- The most +rofound +ea)e of se'enteen
years )ontinuan)e had ta0en no more than !?,BE?,BHG 17s- 11
BD1Ed- from it- A (ar of less than nine years= )ontinuan)e added
!B1,BB?,6?F 1?s- 6 1D6d- to it-
Durin* the administration of 4r- elham, the interest of the
+u&li) de&t (as redu)ed, or at least measures (ere ta0en for
redu)in* it, from four to three +er )ent/ the sin0in* fund (as
in)reased, and some +art of the +u&li) de&t (as +aid off- In
17HH, &efore the &rea0in* out of the late (ar, the funded de&t of
6reat .ritain amounted to !7E,E?F,67B- On the Hth of Aanuary
176B, at the )on)lusion of the +ea)e, the funded de&t amounted to
!1EE,6CB,BB6 ?s- E 1DGd- The unfunded de&t has &een stated at
!1B,FE7,H?F Es- Ed- .ut the e1+ense o))asioned &y the (ar did not
end (ith the )on)lusion of the +ea)e, so that thou*h, on the Hth
of Aanuary 176G, the funded de&t (as in)reased 9+artly &y a ne(
loan, and +artly &y fundin* a +art of the unfunded de&t: to
!1EF,H?6,7?F 1Cs- 1 BDGd-, there still remained 9a))ordin* to the
'ery (ell informed author of the Considerations on the Trade and
"inan)es of 6reat .ritain: an unfunded de&t (hi)h (as &rou*ht to
a))ount in that and the follo(in* year of !F,F7H,C17 1Es- E
1HDGGd- In 176G, therefore, the +u&li) de&t of 6reat .ritain,
funded and unfunded to*ether, amounted, a))ordin* to this author,
to !1BF,H16,?C7 Es- Gd- The annuities for li'es, too, (hi)h had
&een *ranted as +remiums to the su&s)ri&ers to the ne( loans in
17H7, estimated at fourteen years= +ur)hase, (ere 'alued at
!G7E,HCC/ and the annuities for lon* terms of years, *ranted as
+remiums li0e(ise in 1761 and 176E, estimated at t(enty8se'en and
a half years= +ur)hase, (ere 'alued at !6,?E6,?7H- Durin* a +ea)e
of a&out se'en years= )ontinuan)e, the +rudent and truly +atriot
administration of 4r- elham (as not a&le to +ay off an old de&t
of si1 millions- Durin* a (ar of nearly the same )ontinuan)e, a
ne( de&t of more than se'enty8fi'e millions (as )ontra)ted-
On the Hth of Aanuary 177H, the funded de&t of 6reat .ritain
amounted to !1EG,FF6,C?6 1s- 6 1DGd- The unfunded, e1)lusi'e of a
lar*e )i'il list de&t, to !G,1HC,E6B Bs- 11 7D?d- .oth to*ether,
to !1EF,1G6,BEE Hs- 6d- A))ordin* to this a))ount the (hole de&t
+aid off durin* ele'en years= +rofound +ea)e amounted only to
!1C,G1H,G7G 16s- F 7D?d- $'en this small redu)tion of de&t,
ho(e'er, has not &een all made from the sa'in*s out of the
ordinary re'enue of the state- Se'eral e1traneous sums,
alto*ether inde+endent of that ordinary re'enue, ha'e )ontri&uted
to(ards it- Amon*st these (e may re)0on an additional shillin* in
the +ound land8ta1 for three years/ the t(o millions re)ei'ed
from the $ast India Com+any as indemnifi)ation for their
territorial a)quisitions/ and the one hundred and ten thousand
+ounds re)ei'ed from the &an0 for the rene(al of their )harter-
To these must &e added se'eral other sums (hi)h, as they arose
out of the late (ar, ou*ht +erha+s to &e )onsidered as dedu)tions
from the e1+enses of it- The +rin)i+al are,
! s-
d- The +rodu)e of "ren)h +ri;es 6FC,GGF 1?
F Com+osition for "ren)h +risoners 67C,CCC C
C What has &een re)ei'ed from the sale
of the )eded islands FH,HCC C
C If (e add to this sum the &alan)e of the $arl of Chatham=s and
4r- Cal)raft=s a))ounts, and other army sa'in*s of the same 0ind,
to*ether (ith (hat has &een re)ei'ed from the &an0, the $ast
India Com+any, and the additional shillin* in the +ound land8ta1,
the (hole must &e a *ood deal more than fi'e millions- The de&t,
therefore, (hi)h sin)e the +ea)e has &een +aid out of the sa'in*s
the ordinary re'enue of the state, has not, one year (ith
another, amounted to half a million a year- The sin0in* fund has,
no dou&t, &een )onsidera&ly au*mented sin)e the +ea)e, &y the
de&t (hi)h has &een +aid off, &y the redu)tion of the redeema&le
four +er )ents to three +er )ents, and &y the annuities for li'es
(hi)h ha'e fallen in, and, if +ea)e (ere to )ontinue, a million,
+erha+s, mi*ht no( &e annually s+ared out of it to(ards the
dis)har*e of the de&t- Another million, a))ordin*ly, (as +aid in
the )ourse of last year/ &ut, at the same time, a ne( )i'il list
de&t (as left un+aid, and (e are no( in'ol'ed in a ne( (ar (hi)h,
in its +ro*ress, may +ro'e as e1+ensi'e as any of our former
(ars-L The ne( de&t (hi)h (ill +ro&a&ly &e )ontra)ted &efore the
end of the ne1t )am+ai*n may +erha+s &e nearly equal to all the
old de&t (hi)h has &een +aid off from the sa'in*s out of the
ordinary re'enue of the state- It (ould &e alto*ether )himeri)al,
therefore, to e1+e)t that the +u&li) de&t should e'er &e
)om+letely dis)har*ed &y any sa'in*s (hi)h are li0ely to &e made
from that ordinary re'enue as it stands at +resent- L It has
+ro'ed more e1+ensi'e than all of our former (ars/ and has
in'ol'ed us in an additional de&t of more than one hundred
millions- Durin* a +rofound +ea)e of ele'en years, little more
than ten millions of de&t (as +aid/ durin* a (ar of se'en years,
more than one hundred millions (as )ontra)ted-
The +u&li) funds of the different inde&ted nations of
$uro+e, +arti)ularly those of $n*land, ha'e &y one author &een
re+resented as the a))umulation of a *reat )a+ital su+eradded to
the other )a+ital of the )ountry, &y means of (hi)h its trade is
e1tended, its manufa)tures multi+lied, and its lands )ulti'ated
and im+ro'ed mu)h &eyond (hat they )ould ha'e &een &y means of
that other )a+ital only- #e does not )onsider that the )a+ital
(hi)h the first )reditors of the +u&li) ad'an)ed to *o'ernment
(as, from the moment in (hi)h they ad'an)ed it, a )ertain +ortion
of the annual +rodu)e turned a(ay from ser'in* in the fun)tion of
a )a+ital to ser'e in that of a re'enue/ from maintainin*
+rodu)ti'e la&ourers to maintain un+rodu)ti'e ones, and to &e
s+ent and (asted, *enerally in the )ourse of the year, (ithout
e'en the ho+e of any future re+rodu)tion- In return for the
)a+ital (hi)h they ad'an)ed they o&tained, indeed, an annuity in
the +u&li) funds in most )ases of more than equal 'alue- This
annuity, no dou&t, re+la)ed to them their )a+ital, and ena&led
them to )arry on their trade and &usiness to the same or +erha+s
to a *reater e1tent than &efore/ that is, they (ere ena&led
either to &orro( of other +eo+le a ne( )a+ital u+on the )redit of
this annuity, or &y sellin* it to *et from other +eo+le a ne(
)a+ital of their o(n equal or su+erior to that (hi)h they had
ad'an)ed to *o'ernment- This ne( )a+ital, ho(e'er, (hi)h they in
this manner either &ou*ht or &orro(ed of other +eo+le, must ha'e
e1isted in the )ountry &efore, and must ha'e &een em+loyed, as
all )a+itals are, in maintainin* +rodu)ti'e la&our- When it )ame
into the hands of those (ho had ad'an)ed their money to
*o'ernment, thou*h it (as in some res+e)ts a ne( )a+ital to them,
it (as not so to the )ountry, &ut (as only a )a+ital (ithdra(n
from )ertain em+loyments in or to &e turned to(ards others-
Thou*h it re+la)ed to them (hat they had ad'an)ed to *o'ernment,
it did not re+la)e it to the )ountry- #ad they not ad'an)ed this
)a+ital to *o'ernment, there (ould ha'e &een in the )ountry t(o
)a+itals, t(o +ortions of the annual +rodu)e, instead of one,
em+loyed in maintainin* +rodu)ti'e la&our-
When for defrayin* the e1+ense of *o'ernment a re'enue is
raised (ithin the year from the +rodu)e of free or unmort*a*ed
ta1es, a )ertain +ortion of the re'enue of +ri'ate +eo+le is only
turned a(ay from maintainin* one s+e)ies of un+rodu)ti'e la&our
to(ards maintainin* another- Some +art of (hat they +ay in those
ta1es mi*ht no dou&t ha'e &een a))umulated into )a+ital, and
)onsequently em+loyed in maintainin* +rodu)ti'e la&our/ &ut the
*reater +art (ould +ro&a&ly ha'e &een s+ent and )onsequently
em+loyed in maintainin* un+rodu)ti'e la&our- The +u&li) e1+ense,
ho(e'er, (hen defrayed in this manner, no dou&t hinders more or
less the further a))umulation of ne( )a+ital/ &ut it does not
ne)essarily o))asion the destru)tion of any a)tually e1istin*
)a+ital-
When the +u&li) e1+ense is defrayed &y fundin*, it is
defrayed &y the annual destru)tion of some )a+ital (hi)h had
&efore e1isted in the )ountry/ &y the +er'ersion of some +ortion
of the annual +rodu)e (hi)h had &efore &een destined for the
maintenan)e of +rodu)ti'e la&our to(ards that of un+rodu)ti'e
la&our- As in this )ase, ho(e'er, the ta1es are li*hter than they
(ould ha'e &een had a re'enue suffi)ient for defrayin* the same
e1+ense &een raised (ithin the year, the +ri'ate re'enue of
indi'iduals is ne)essarily less &urdened, and )onsequently their
a&ility to sa'e and a))umulate some +art of that re'enue into
)a+ital is a *ood deal less im+aired- If the method of fundin*
destroys more old )a+ital, it at the same time hinders less the
a))umulation or a)quisition of ne( )a+ital than that of defrayin*
the +u&li) e1+ense &y a re'enue raised (ithin the year- Under the
system of fundin*, the fru*ality and industry of +ri'ate +eo+le
)an more easily re+air the &rea)hes (hi)h the (aste and
e1tra'a*an)e of *o'ernment may o))asionally ma0e in the *eneral
)a+ital of the so)iety-
It is only durin* the )ontinuan)e of (ar, ho(e'er, that the
system of fundin* has this ad'anta*e o'er the other system- Were
the e1+ense of (ar to &e defrayed al(ays &y a re'enue raised
(ithin the year, the ta1es from (hi)h that e1traordinary re'enue
(as dra(n (ould last no lon*er than the (ar- The a&ility of
+ri'ate +eo+le to a))umulate, thou*h less durin* the (ar, (ould
ha'e &een *reater durin* the +ea)e than under the system of
fundin*- War (ould not ne)essarily ha'e o))asioned the
destru)tion of any old )a+itals, and +ea)e (ould ha'e o))asioned
the a))umulation of many more ne(- Wars (ould in *eneral &e more
s+eedily )on)luded, and less (antonly underta0en- The +eo+le
feelin*, durin* the )ontinuan)e of the (ar, the )om+lete &urden
of it, (ould soon *ro( (eary of it, and *o'ernment, in order to
humour them, (ould not &e under the ne)essity of )arryin* it on
lon*er than it (as ne)essary to do so- The foresi*ht of the hea'y
and una'oida&le &urdens of (ar (ould hinder the +eo+le from
(antonly )allin* for it (hen there (as no real or solid interest
to fi*ht for- The seasons durin* (hi)h the a&ility of +ri'ate
+eo+le to a))umulate (as some(hat im+aired (ould o))ur more
rarely, and &e of shorter )ontinuan)e- Those, on the )ontrary,
durin* (hi)h the a&ility (as in the hi*hest 'i*our (ould &e of
mu)h lon*er duration than they )an (ell &e under the system of
fundin*-
When fundin*, &esides, has made a )ertain +ro*ress, the
multi+li)ation of ta1es (hi)h it &rin*s alon* (ith it sometimes
im+airs as mu)h the a&ility of +ri'ate +eo+le to a))umulate e'en
in time of +ea)e as the other system (ould in time of (ar- The
+ea)e re'enue of 6reat .ritain amounts at +resent to more than
ten millions a year- If free and unmort*a*ed, it mi*ht &e
suffi)ient, (ith +ro+er mana*ement and (ithout )ontra)tin* a
shillin* of ne( de&t, to )arry on the most 'i*orous (ar- The
+ri'ate re'enue of the inha&itants of 6reat .ritain is at +resent
as mu)h en)um&ered in time of +ea)e, their a&ility to a))umulate
is as mu)h im+aired as it (ould ha'e &een in the time of the most
e1+ensi'e (ar had the +erni)ious system of fundin* ne'er &een
ado+ted-
In the +ayment of the interest of the +u&li) de&t, it has
&een said, it is the ri*ht hand (hi)h +ays the left- The money
does not *o out of the )ountry- It is only a +art of the re'enue
of one set of the inha&itants (hi)h is transferred to another,
and the nation is not a farthin* the +oorer- This a+olo*y is
founded alto*ether in the so+histry of the mer)antile system, and
after the lon* e1amination (hi)h I ha'e already &esto(ed u+on
that system, it may +erha+s &e unne)essary to say anythin*
further a&out it- It su++oses, &esides, that the (hole +u&li)
de&t is o(in* to the inha&itants of the )ountry, (hi)h ha++ens
not to &e true/ the Dut)h, as (ell as se'eral other forei*n
nations, ha'in* a 'ery )onsidera&le share in our +u&li) funds-
.ut thou*h the (hole de&t (ere o(in* to the inha&itants of the
)ountry, it (ould not u+on that a))ount &e less +erni)ious-
!and and )a+ital sto)0 are the t(o ori*inal sour)es of all
re'enue &oth +ri'ate and +u&li)- Ca+ital sto)0 +ays the (a*es of
+rodu)ti'e la&our, (hether em+loyed in a*ri)ulture, manufa)tures,
or )ommer)e- The mana*ement of those t(o ori*inal sour)es of
re'enue &elon* to t(o different sets of +eo+le/ the +ro+rietors
of land, and the o(ners or em+loyers of )a+ital sto)0-
The +ro+rietor of land is interested for the sa0e of his o(n
re'enue to 0ee+ his estate in as *ood )ondition as he )an, &y
&uildin* and re+airin* his tenants= houses, &y ma0in* and
maintainin* the ne)essary drains and en)losures, and all those
other e1+ensi'e im+ro'ements (hi)h it +ro+erly &elon*s to the
landlord to ma0e and maintain- .ut &y different land8ta1es the
re'enue of the landlord may &e so mu)h diminished, and &y
different duties u+on the ne)essaries and )on'enien)es of life
that diminished re'enue may &e rendered of so little real 'alue,
that he may find himself alto*ether una&le to ma0e or maintain
those e1+ensi'e im+ro'ements- When the landlord, ho(e'er, )eases
to do his +art, it is alto*ether im+ossi&le that the tenant
should )ontinue to do his- As the distress of the landlord
in)reases, the a*ri)ulture of the )ountry must ne)essarily
de)line-
When, &y different ta1es u+on the ne)essaries and
)on'enien)es of life, the o(ners and em+loyers of )a+ital sto)0
find that (hate'er re'enue they deri'e from it (ill not, in a
+arti)ular )ountry, +ur)hase the same quantity of those
ne)essaries and )on'enien)es (hi)h an equal re'enue (ould in
almost any other, they (ill &e dis+osed to remo'e to some other-
And (hen, in order to raise those ta1es, all or the *reater +art
of mer)hants and manufa)turers, that is, all or the *reater +art
of the em+loyers of *reat )a+itals, )ome to &e )ontinually
e1+osed to the mortifyin* and 'e1atious 'isits of the
ta18*atherers, the dis+osition to remo'e (ill soon &e )han*ed
into an a)tual remo'al- The industry of the )ountry (ill
ne)essarily fall (ith the remo'al of the )a+ital (hi)h su++orted
it, and the ruin of trade and manufa)tures (ill follo( the
de)lension of a*ri)ulture-
To transfer from the o(ners of those t(o *reat sour)es of
re'enue, land and )a+ital sto)0, from the +ersons immediately
interested in the *ood )ondition of e'ery +arti)ular +ortion of
land, and in the *ood mana*ement of e'ery +arti)ular +ortion of
)a+ital sto)0, to another set of +ersons 9the )reditors of the
+u&li), (ho ha'e no su)h +arti)ular interest:, the *reater +art
of the re'enue arisin* from either must, in the lon*8run,
o))asion &oth the ne*le)t of land, and the (aste or remo'al of
)a+ital sto)0- A )reditor of the +u&li) has no dou&t a *eneral
interest in the +ros+erity of the a*ri)ulture, manufa)tures, and
)ommer)e of the )ountry, and )onsequently in the *ood )ondition
of its lands, and in the *ood mana*ement of its )a+ital sto)0-
Should there &e any *eneral failure or de)lension in any of these
thin*s, the +rodu)e of the different ta1es mi*ht no lon*er &e
suffi)ient to +ay him the annuity or interest (hi)h is due to
him- .ut a )reditor of the +u&li), )onsidered merely as su)h, has
no interest in the *ood )ondition of any +arti)ular +ortion of
land, or in the *ood mana*ement of any +arti)ular +ortion of
)a+ital sto)0- As a )reditor of the +u&li) he has no 0no(led*e of
any su)h +arti)ular +ortion- #e has no ins+e)tion of it- #e )an
ha'e no )are a&out it- Its ruin may in some )ases &e un0no(n to
him, and )annot dire)tly affe)t him-
The +ra)ti)e of fundin* has *radually enfee&led e'ery state
(hi)h has ado+ted it- The Italian re+u&li)s seem to ha'e &e*un
it- 6enoa and 5eni)e, the only t(o remainin* (hi)h )an +retend to
an inde+endent e1isten)e, ha'e &oth &een enfee&led &y it- S+ain
seems to ha'e learned the +ra)ti)e from the Italian re+u&li)s,
and 9its ta1es &ein* +ro&a&ly less 2udi)ious than theirs: it has,
in +ro+ortion to its natural stren*th, &een still more enfee&led-
The de&ts of S+ain are of 'ery old standin*- It (as dee+ly in
de&t &efore the end of the si1teenth )entury, a&out a hundred
years &efore $n*land o(ed a shillin*- "ran)e, not(ithstandin* all
its natural resour)es, lan*uishes under an o++ressi'e load of the
same 0ind- The re+u&li) of the United ro'in)es is as mu)h
enfee&led &y its de&ts as either 6enoa or 5eni)e- Is it li0ely
that in 6reat .ritain alone a +ra)ti)e (hi)h has &rou*ht either
(ea0ness or desolation into e'ery other )ountry should +ro'e
alto*ether inno)ent>
The system of ta1ation esta&lished in those different
)ountries, it may &e said, is inferior to that of $n*land- I
&elie'e it is so- .ut it ou*ht to &e remem&ered that, (hen the
(isest *o'ernment has e1hausted all the +ro+er su&2e)ts of
ta1ation, it must, in )ases of ur*ent ne)essity, ha'e re)ourse to
im+ro+er ones- The (ise re+u&li) of #olland has u+on some
o))asions &een o&li*ed to ha'e re)ourse to ta1es as in)on'enient
as the *reater +art of those of S+ain- Another (ar &e*un &efore
any )onsidera&le li&eration of the +u&li) re'enue had &een
&rou*ht a&out, and *ro(in* in its +ro*ress as e1+ensi'e as the
last (ar, may, from irresisti&le ne)essity, render the .ritish
system of ta1ation as o++ressi'e as that of #olland, or e'en as
that of S+ain- To the honour of our +resent system of ta1ation,
indeed, it has hitherto *i'en so little em&arrassment to industry
that, durin* the )ourse e'en of the most e1+ensi'e (ars, the
fru*ality and *ood )ondu)t of indi'iduals seem to ha'e &een a&le,
&y sa'in* and a))umulation, to re+air all the &rea)hes (hi)h the
(aste and e1tra'a*an)e of *o'ernment had made in the *eneral
)a+ital of the so)iety- At the )on)lusion of the late (ar, the
most e1+ensi'e that 6reat .ritain e'er (a*ed, her a*ri)ulture (as
as flourishin*, her manufa)turers as numerous and as fully
em+loyed, and her )ommer)e as e1tensi'e as they had e'er &een
&efore- The )a+ital, therefore, (hi)h su++orted all those
different &ran)hes of industry must ha'e &een equal to (hat it
had e'er &een &efore- Sin)e the +ea)e, a*ri)ulture has &een still
further im+ro'ed, the rents of houses ha'e risen in e'ery to(n
and 'illa*e of the )ountry8 a +roof of the in)reasin* (ealth and
re'enue of the +eo+le/ and the annual amount the *reater +art of
the old ta1es, of the +rin)i+al &ran)hes of the e1)ise and
)ustoms in +arti)ular, has &een )ontinually in)reasin*8 an
equally )lear +roof of an in)reasin* )onsum+tion, and
)onsequently of an in)reasin* +rodu)e (hi)h )ould alone su++ort
that )onsum+tion- 6reat .ritain seems to su++ort (ith ease a
&urden (hi)h, half a )entury a*o, no&ody &elie'ed her )a+a&le of
su++ortin*- !et us not, ho(e'er, u+on this a))ount rashly
)on)lude that she is )a+a&le of su++ortin* any &urden, nor e'en
&e too )onfident that she )ould su++ort, (ithout *reat distress,
a &urden a little *reater than (hat has already &een laid u+on
her-
When national de&ts ha'e on)e &een a))umulated to a )ertain
de*ree, there is s)ar)e, I &elie'e, a sin*le instan)e of their
ha'in* &een fairly and )om+letely +aid- The li&eration of the
+u&li) re'enue, if it has e'er &een &rou*ht a&out &y &an0ru+t)y/
sometimes &y an a'o(ed one, &ut al(ays &y a real one, thou*h
frequently &y a +retended +ayment-
The raisin* of the denomination of the )oin has &een the
most usual e1+edient &y (hi)h a real +u&li) &an0ru+t)y has &een
dis*uised under the a++earan)e of a +retended +ayment- If a
si1+en)e, for e1am+le, should either &y A)t of arliament or
Royal ro)lamation &e raised to the denomination of a shillin*,
and t(enty si1+en)es to that of a +ound sterlin*, the +erson (ho
under the old denomination had &orro(ed t(enty shillin*s, or near
four oun)es of sil'er, (ould, under the ne(, +ay (ith t(enty
si1+en)es, or (ith somethin* less than t(o oun)es- A national
de&t of a&out a hundred and t(enty8ei*ht millions, nearly the
)a+ital of the funded and unfunded de&t of 6reat .ritain, mi*ht
in this manner &e +aid (ith a&out si1ty8four millions of our
+resent money- It (ould indeed &e a +retended +ayment only, and
the )reditors of the +u&li) (ould really &e defrauded of ten
shillin*s in the +ound of (hat (as due to them- The )alamity,
too, (ould e1tend mu)h further than to the )reditors of the
+u&li), and those of e'ery +ri'ate +erson (ould suffer a
+ro+ortiona&le loss/ and this (ithout any ad'anta*e, &ut in most
)ases (ith a *reat additional loss, to the )reditors of the
+u&li)- If the )reditors of the +u&li), indeed, (ere *enerally
mu)h in de&t to other +eo+le, they mi*ht in some measure
)om+ensate their loss &y +ayin* their )reditors in the same )oin
in (hi)h the +u&li) had +aid them- .ut in most )ountries the
)reditors of the +u&li) are, the *reater +art of them, (ealthy
+eo+le, (ho stand more in the relation of )reditors than in that
of de&tors to(ards the rest of their fello(8)iti;ens- A +retended
+ayment of this 0ind, therefore, instead of alle'iatin*,
a**ra'ates in most )ases the loss of the )reditors of the +u&li),
and (ithout any ad'anta*e to the +u&li), e1tends the )alamity to
a *reat num&er of other inno)ent +eo+le- It o))asions a *eneral
and most +erni)ious su&'ersion of the fortunes of +ri'ate +eo+le,
enri)hin* in most )ases the idle and +rofuse de&tor at the
e1+ense of the industrious and fru*al )reditor, and trans+ortin*
a *reat +art of the national )a+ital from the hands (hi)h (ere
li0ely to in)rease and im+ro'e it to those (hi)h are li0ely to
dissi+ate and destroy it- When it &e)omes ne)essary for a state
to de)lare itself &an0ru+t, in the same manner as (hen it &e)omes
ne)essary for an indi'idual to do so, a fair, o+en, and a'o(ed
&an0ru+t)y is al(ays the measure (hi)h is &oth least
dishonoura&le to the de&tor and least hurtful to the )reditor-
The honour of a state is surely 'ery +oorly +ro'ided for (hen, in
order to )o'er the dis*ra)e of a real &an0ru+t)y, it has re)ourse
to a 2u**lin* tri)0 of this 0ind, so easily seen throu*h, and at
the same time so e1tremely +erni)ious-
Almost all states, ho(e'er, an)ient as (ell as modern, (hen
redu)ed to this ne)essity ha'e, u+on some o))asions, +layed this
'ery 2u**lin* tri)0- The Romans, at the end of the first uni)
(ar, redu)ed the As, the )oin or denomination &y (hi)h they
)om+uted the 'alue of all their other )oins, from )ontainin*
t(el'e oun)es of )o++er to )ontain only t(o oun)es/ that is, they
raised t(o oun)es of )o++er to a denomination (hi)h had al(ays
&efore e1+ressed the 'alue of t(el'e oun)es- The re+u&li) (as, in
this manner, ena&led to +ay the *reat de&ts (hi)h it had
)ontra)ted (ith the si1th +art of (hat it really o(ed- So sudden
and so *reat a &an0ru+t)y, (e should in the +resent times &e a+t
to ima*ine, must ha'e o))asioned a 'ery 'iolent +o+ular )lamour-
It does not a++ear to ha'e o))asioned any- The la( (hi)h ena)ted
it (as, li0e all other la(s relatin* to the )oin, introdu)ed and
)arried throu*h the assem&ly of the +eo+le &y a tri&une, and (as
+ro&a&ly a 'ery +o+ular la(- In Rome, as in all the other an)ient
re+u&li)s, the +oor +eo+le (ere )onstantly in de&t to the ri)h
and the *reat, (ho in order to se)ure their 'otes at the annual
ele)tions, used to lend them money at e1or&itant interest, (hi)h,
&ein* ne'er +aid, soon a))umulated into a sum too *reat either
for the de&tor to +ay, or for any&ody else to +ay for him- The
de&tor, for fear of a 'ery se'ere e1e)ution, (as o&li*ed, (ithout
any further *ratuity, to 'ote for the )andidate (hom the )reditor
re)ommended- In s+ite of all the la(s a*ainst &ri&ery and
)orru+tion, the &ounty of the )andidates, to*ether (ith the
o))asional distri&utions of )orn (hi)h (ere ordered &y the
senate, (ere the +rin)i+al funds from (hi)h, durin* the latter
times of the Roman re+u&li), the +oorer )iti;ens deri'ed their
su&sisten)e- To deli'er themsel'es from this su&2e)tion to their
)reditors, the +oorer )iti;ens (ere )ontinually )allin* out
either for an entire a&olition of de&ts, or for (hat they )alled
Ne( Ta&les/ that is, for a la( (hi)h should entitle them to a
)om+lete a)quittan)e u+on +ayin* only a )ertain +ro+ortion of
their a))umulated de&ts- The la( (hi)h redu)ed the )oin of all
denominations to a si1th +art of its former 'alue, as it ena&led
them to +ay their de&ts (ith a si1th +art of (hat they really
o(ed, (as equi'alent to the most ad'anta*eous Ne( Ta&les- In
order to satisfy the +eo+le, the ri)h and the *reat (ere, u+on
se'eral different o))asions, o&li*ed to )onsent to la(s &oth for
a&olishin* de&ts, and for introdu)in* Ne( Ta&les/ and they
+ro&a&ly (ere indu)ed to )onsent to this la( +artly for the same
reason, and +artly that, &y li&eratin* the +u&li) re'enue, they
mi*ht restore 'i*our to that *o'ernment of (hi)h they themsel'es
had the +rin)i+al dire)tion- An o+eration of this 0ind (ould at
on)e redu)e a de&t of a hundred and t(enty8ei*ht millions to
t(enty8one millions three hundred and thirty8three thousand three
hundred and thirty8three +ounds si1 shillin*s and ei*ht+en)e- In
the )ourse of the se)ond uni) (ar the As (as still further
redu)ed, first, from t(o oun)es of )o++er to one oun)e, and
after(ards from one oun)e to half an oun)e/ that is, to the
t(enty8fourth +art of its ori*inal 'alue- .y )om&inin* the three
Roman o+erations into one, a de&t of a hundred and t(enty8ei*ht
millions of our +resent money mi*ht in this manner &e redu)ed all
at on)e to a de&t of fi'e millions three hundred and thirty8three
thousand three hundred and thirty8three +ounds si1 shillin*s and
ei*ht+en)e- $'en the enormous de&ts of 6reat .ritain mi*ht in
this manner soon &e +aid-
.y means of su)h e1+edients the )oin of, I &elie'e, all
nations has &een *radually redu)ed more and more &elo( its
ori*inal 'alue, and the same nominal sum has &een *radually
&rou*ht to )ontain a smaller and a smaller quantity of sil'er-
Nations ha'e sometimes, for the same +ur+ose, adulterated
the standard of their )oin/ that is, ha'e mi1ed a *reater
quantity of alloy in it- If in the +ound (ei*ht of our sil'er
)oin, for e1am+le, instead of ei*hteen +enny(ei*ht, a))ordin* to
the +resent standard, there (as mi1ed ei*ht oun)es of alloy, a
+ound sterlin*, or t(enty shillin*s of su)h )oin, (ould &e (orth
little more than si1 shillin*s and ei*ht+en)e of our +resent
money- The quantity of sil'er )ontained in si1 shillin*s and
ei*ht+en)e of our +resent money (ould thus &e raised 'ery nearly
to the denomination of a +ound sterlin*- The adulteration of the
standard has e1a)tly the same effe)t (ith (hat the "ren)h )all an
au*mentation, or a dire)t raisin* of the denomination of the
)oin-
An au*mentation, or a dire)t raisin* of the )oin, al(ays is,
and from its nature must &e, an o+en and a'o(ed o+eration- .y
means of it +ie)es of a smaller (ei*ht and &ul0 are )alled &y the
same name (hi)h had &efore &een *i'en to +ie)es of a *reater
(ei*ht and &ul0- The adulteration of the standard, on the
)ontrary, has *enerally &een a )on)ealed o+eration- .y means of
it +ie)es (ere issued from the mint of the same denominations,
and, as nearly as )ould &e )ontri'ed, of the same (ei*ht, &ul0,
and a++earan)e (ith +ie)es (hi)h had &een )urrent &efore of mu)h
*reater 'alue- When %in* Aohn of "ran)e, in order to +ay his
de&ts, adulterated his )oin, all the offi)ers of his mint (ere
s(orn to se)re)y- .oth o+erations are un2ust- .ut a sim+le
au*mentation is an in2usti)e of o+en 'iolen)e, (hereas the
adulteration is an in2usti)e of trea)herous fraud- This latter
o+eration, therefore, as soon as it has &een dis)o'ered, and it
)ould ne'er &e )on)ealed 'ery lon*, has al(ays e1)ited mu)h
*reater indi*nation than the former- The )oin after any
)onsidera&le au*mentation has 'ery seldom &een &rou*ht &a)0 to
its former (ei*ht/ &ut after the *reater adulterations it has
almost al(ays &een &rou*ht &a)0 to its former fineness- It has
s)ar)e e'er ha++ened that the fury and indi*nation of the +eo+le
)ould other(ise &e a++eased-
In the end of the rei*n of #enry 5III and in the &e*innin*
of that of $d(ard 5I the $n*lish )oin (as not only raised in its
denomination, &ut adulterated in its standard- The li0e frauds
(ere +ra)tised in S)otland durin* the minority of Aames 5I- They
ha'e o))asionally &een +ra)tised in most other )ountries-
That the +u&li) re'enue of 6reat .ritain )an ne'er &e
)om+letely li&erated, or e'en that any )onsidera&le +ro*ress )an
e'er &e made to(ards that li&eration, (hile the sur+lus of that
re'enue, or (hat is o'er and a&o'e defrayin* the annual e1+ense
of the +ea)e esta&lishment, is so 'ery small, it seems alto*ether
in 'ain to e1+e)t- That li&eration, it is e'ident, )an ne'er &e
&rou*ht a&out (ithout either some 'ery )onsidera&le au*mentation
of the +u&li) re'enue, or some equally )onsidera&le redu)tion of
the +u&li) e1+ense-
A more equal land8ta1, a more equal ta1 u+on the rent of
houses, and su)h alterations in the +resent system of )ustoms and
e1)ise as those (hi)h ha'e &een mentioned in the fore*oin*
)ha+ter mi*ht, +erha+s, (ithout in)reasin* the &urden of the
*reater +art of the +eo+le, &ut only distri&utin* the (ei*ht of
it more equally u+on the (hole, +rodu)e a )onsidera&le
au*mentation of re'enue- The most san*uine +ro2e)tor, ho(e'er,
)ould s)ar)e flatter himself that any au*mentation of this 0ind
(ould &e su)h as )ould *i'e any reasona&le ho+es either of
li&eratin* the +u&li) re'enue alto*ether, or e'en of ma0in* su)h
+ro*ress to(ards that li&eration in time of +ea)e as either to
+re'ent or to )om+ensate the further a))umulation of the +u&li)
de&t in the ne1t (ar-
.y e1tendin* the .ritish system of ta1ation to all the
different +ro'in)es of the em+ire inha&ited &y +eo+le of either
.ritish or $uro+ean e1tra)tion, a mu)h *reater au*mentation of
re'enue mi*ht &e e1+e)ted- This, ho(e'er, )ould s)ar)e, +erha+s,
&e done, )onsistently (ith the +rin)i+les of the .ritish
)onstitution, (ithout admittin* into the .ritish arliament, or
if you (ill into the states *eneral of the .ritish em+ire, a fair
and equal re+resentation of all those different +ro'in)es, that
of ea)h +ro'in)e &earin* the same +ro+ortion to the +rodu)e of
its ta1es as the re+resentation of 6reat .ritain mi*ht &ear to
the +rodu)e of the ta1es le'ied u+on 6reat .ritain- The +ri'ate
interest of many +o(erful indi'iduals, the )onfirmed +re2udi)es
of *reat &odies of +eo+le seem, indeed, at +resent, to o++ose to
so *reat a )han*e su)h o&sta)les as it may &e 'ery diffi)ult,
+erha+s alto*ether im+ossi&le, to surmount- Without, ho(e'er,
+retendin* to determine (hether su)h a union &e +ra)ti)a&le or
im+ra)ti)a&le, it may not, +erha+s, &e im+ro+er, in a s+e)ulati'e
(or0 of this 0ind, to )onsider ho( far the .ritish system of
ta1ation mi*ht &e a++li)a&le to all the different +ro'in)es of
the em+ire, (hat re'enue mi*ht &e e1+e)ted from it if so a++lied,
and in (hat manner a *eneral union of this 0ind mi*ht &e li0ely
to affe)t the ha++iness and +ros+erity of the different +ro'in)es
)om+rehended (ithin it- Su)h a s+e)ulation )an at (orst &e
re*arded &ut as a ne( Uto+ia, less amusin* )ertainly, &ut not
more useless and )himeri)al than the old one-
The land8ta1, the stam+8duties, and the different duties of
)ustoms and e1)ise )onstitute the four +rin)i+al &ran)hes of the
.ritish ta1es-
Ireland is )ertainly as a&le, and our Ameri)an and West
Indian +lantations more a&le to +ay a land8ta1 than 6reat
.ritain- Where the landlord is su&2e)t neither to tithe nor
+oor8rate, he must )ertainly &e more a&le to +ay su)h a ta1 than
(here he is su&2e)t to &oth those other &urdens- The tithe, (here
there is no modus, and (here it is le'ied in 0ind, diminishes
more (hat (ould other(ise &e the rent of the landlord than a
land8ta1 (hi)h really amounted to fi'e shillin*s in the +ound-
Su)h a tithe (ill &e found in most )ases to amount to more than a
fourth +art of the real rent of the land, or of (hat remains
after re+la)in* )om+letely the )a+ital of the farmer, to*ether
(ith his reasona&le +rofit- If all moduses and all im+ro+riations
(ere ta0en a(ay, the )om+lete )hur)h tithe of 6reat .ritain and
Ireland )ould not (ell &e estimated at less than si1 or se'en
millions- If there (as no tithe either in 6reat .ritain or
Ireland, the landlords )ould afford to +ay si1 or se'en millions
additional land8ta1 (ithout &ein* more &urdened than a 'ery *reat
+art of them are at +resent- Ameri)a +ays no tithe, and )ould
therefore 'ery (ell afford to +ay a land8ta1- The lands in
Ameri)a and the West Indies, indeed, are in *eneral not tenanted
nor leased out to farmers- They )ould not therefore &e assessed
a))ordin* to any rent8roll- .ut neither (ere the lands of 6reat
.ritain, in the Gth of William and 4ary, assessed a))ordin* to
any rent8roll, &ut a))ordin* to a 'ery loose and ina))urate
estimation- The lands in Ameri)a mi*ht &e assessed either in the
same manner, or a))ordin* to an equita&le 'aluation in
)onsequen)e of an a))urate sur'ey li0e that (hi)h (as lately made
in the 4ilanese, and in the dominions of Austria, russia, and
Sardinia-
Stam+8duties, it is e'ident, mi*ht &e le'ied (ithout any
'ariation in all )ountries (here the forms of la( +ro)ess, and
the deeds &y (hi)h +ro+erty &oth real and +ersonal is
transferred, are the same or nearly the same-
The e1tension of the )ustom8house la(s of 6reat .ritain to
Ireland and the +lantations, +ro'ided it (as a))om+anied, as in
2usti)e it ou*ht to &e, (ith an e1tension of the freedom of
trade, (ould &e in the hi*hest de*ree ad'anta*eous to &oth- All
the in'idious restraints (hi)h at +resent o++ress the trade of
Ireland, the distin)tion &et(een the enumerated and
non8enumerated )ommodities of Ameri)a, (ould &e entirely at an
end- The )ountries north of Ca+e "inisterre (ould &e as o+en to
e'ery +art of the +rodu)e of Ameri)a as those south of that Ca+e
are to some +arts of that +rodu)e at +resent- The trade &et(een
all the different +arts of the .ritish em+ire (ould, in
)onsequen)e of this uniformity in the )ustom8house la(s, &e as
free as the )oastin* trade of 6reat .ritain is at +resent- The
.ritish em+ire (ould thus afford (ithin itself an immense
internal mar0et for e'ery +art of the +rodu)e of all its
different +ro'in)es- So *reat an e1tension of mar0et (ould soon
)om+ensate &oth to Ireland and the +lantations all that they
)ould suffer from the in)rease of the duties of )ustoms-
The e1)ise is the only +art of the .ritish system of
ta1ation (hi)h (ould require to &e 'aried in any res+e)t
a))ordin* as it (as a++lied to the different +ro'in)es of the
em+ire- It mi*ht &e a++lied to Ireland (ithout any 'ariation, the
+rodu)e and )onsum+tion of that 0in*dom &ein* e1a)tly of the same
nature (ith those of 6reat .ritain- In its a++li)ation to Ameri)a
and the West Indies, of (hi)h the +rodu)e and )onsum+tion are so
'ery different from those of 6reat .ritain, some modifi)ation
mi*ht &e ne)essary in the same manner as in its a++li)ation to
the )yder and &eer )ounties of $n*land-
A fermented liquor, for e1am+le, (hi)h is )alled &eer, &ut
(hi)h, as it is made of molasses, &ears 'ery little resem&lan)e
to our &eer, ma0es a )onsidera&le +art of the )ommon drin0 of the
+eo+le in Ameri)a- This liquor, as it )an &e 0e+t only for a fe(
days, )annot, li0e our &eer, &e +re+ared and stored u+ for sale
in *reat &re(eries/ &ut e'ery +ri'ate family must &re( it for
their o(n use, in the same manner as they )oo0 their 'i)tuals-
.ut to su&2e)t e'ery +ri'ate family to the odious 'isits and
e1amination of the ta18*atherers, in the same manner as (e
su&2e)t the 0ee+ers of alehouses and the &re(ers for +u&li) sale,
(ould &e alto*ether in)onsistent (ith li&erty- If for the sa0e of
equality it (as thou*ht ne)essary to lay a ta1 u+on this liquor,
it mi*ht &e ta1ed &y ta1in* the material of (hi)h it is made,
either at the +la)e of manufa)ture, or, if the )ir)umstan)es of
the trade rendered su)h an e1)ise im+ro+er, &y layin* a duty u+on
its im+ortation into the )olony in (hi)h it (as to &e )onsumed-
.esides the duty of one +enny a *allon im+osed &y the .ritish
arliament u+on the im+ortation of molasses into Ameri)a, there
is a +ro'in)ial ta1 of this 0ind u+on their im+ortation into
4assa)husetts .ay, in shi+s &elon*in* to any other )olony, of
ei*ht+en)e the ho*shead/ and another u+on their im+ortation, from
the northern )olonies into South Carolina, of fi'e+en)e the
*allon- Or if neither of these methods (as found )on'enient, ea)h
family mi*ht )om+ound for its )onsum+tion of this liquor, either
a))ordin* to the num&er of +ersons of (hi)h it )onsisted, in the
same manner as +ri'ate families )om+ound for the malt8ta1 in
$n*land/ or a))ordin* to the different a*es and se1es of those
+ersons, in the same manner as se'eral different ta1es are le'ied
in #olland/ or nearly as Sir 4atthe( De)0er +ro+oses that all
ta1es u+on )onsuma&le )ommodities should &e le'ied in $n*land-
This mode of ta1ation, it has already &een o&ser'ed, (hen a++lied
to o&2e)ts of a s+eedy )onsum+tion is not a 'ery )on'enient one-
It mi*ht &e ado+ted, ho(e'er, in )ases (here no &etter )ould &e
done-
Su*ar, rum, and to&a))o are )ommodities (hi)h are no(here
ne)essaries of life, (hi)h are &e)ome o&2e)ts of almost uni'ersal
)onsum+tion, and (hi)h are therefore e1tremely +ro+er su&2e)ts of
ta1ation- If a union (ith the )olonies (ere to ta0e +la)e, those
)ommodities mi*ht &e ta1ed either &efore they *o out of the hands
of the manufa)turer or *ro(er, or if this mode of ta1ation did
not suit the )ir)umstan)es of those +ersons, they mi*ht &e
de+osited in +u&li) (arehouses &oth at the +la)e of manufa)ture,
and at all the different +orts of the em+ire to (hi)h they mi*ht
after(ards &e trans+orted, to remain there, under the 2oint
)ustody of the o(ner and the re'enue offi)er, till su)h time as
they should &e deli'ered out either to the )onsumer, to the
mer)hant retailer for home )onsum+tion, or to the mer)hant
e1+orter, the ta1 not to &e ad'an)ed till su)h deli'ery- When
deli'ered out for e1+ortation, to *o duty free u+on +ro+er
se)urity &ein* *i'en that they should really &e e1+orted out of
the em+ire- These are +erha+s the +rin)i+al )ommodities (ith
re*ard to (hi)h a union (ith the )olonies mi*ht require some
)onsidera&le )han*e in the +resent system of .ritish ta1ation-
What mi*ht &e the amount of the re'enue (hi)h this system of
ta1ation e1tended to all the different +ro'in)es of the em+ire
mi*ht +rodu)e, it must, no dou&t, &e alto*ether im+ossi&le to
as)ertain (ith tolera&le e1a)tness- .y means of this system there
is annually le'ied in 6reat .ritain, u+on less than ei*ht
millions of +eo+le, more than ten millions of re'enue- Ireland
)ontains more than t(o millions of +eo+le, and a))ordin* to the
a))ounts laid &efore the )on*ress, the t(el'e asso)iated
+ro'in)es of Ameri)a )ontain more than three- Those a))ounts,
ho(e'er, may ha'e &een e1a**erated, in order, +erha+s, either to
en)oura*e their o(n +eo+le, or to intimidate those of this
)ountry, and (e shall su++ose, therefore, that our North Ameri)an
and West Indian )olonies ta0en to*ether )ontain no more than
three millions/ or that the (hole .ritish em+ire, in $uro+e and
Ameri)a, )ontains no more than thirteen millions of inha&itants-
If u+on less than ei*ht millions of inha&itants this system of
ta1ation raises a re'enue of more than ten millions sterlin*, it
ou*ht u+on thirteen millions of inha&itants to raise a re'enue of
more than si1teen millions t(o hundred and fifty thousand +ounds
sterlin*- "rom this re'enue, su++osin* that this system )ould
+rodu)e it, must &e dedu)ted the re'enue usually raised in
Ireland and the +lantations for defrayin* the e1+ense of their
res+e)ti'e )i'il *o'ernments- The e1+ense of the )i'il and
military esta&lishment of Ireland, to*ether (ith the interest of
the +u&li) de&t, amounts, at a medium of the t(o years (hi)h
ended 4ar)h 177H, to somethin* less than se'en hundred and fifty
thousand +ounds a year- .y a 'ery e1a)t a))ount of the re'enue of
the +rin)i+al )olonies of Ameri)a and the West Indies, it
amounted, &efore the )ommen)ement of the +resent distur&an)es, to
a hundred and forty8one thousand ei*ht hundred +ounds- In this
a))ount, ho(e'er, the re'enue of 4aryland, of North Carolina, and
of all our late a)quisitions &oth u+on the )ontinent and in the
islands is omitted, (hi)h may +erha+s ma0e a differen)e of thirty
or forty thousand +ounds- "or the sa0e of e'en num&ers,
therefore, let us su++ose that the re'enue ne)essary for
su++ortin* the )i'il *o'ernment of Ireland and the +lantations
may amount to a million- There (ould remain )onsequently a
re'enue of fifteen millions t(o hundred and fifty thousand +ounds
to &e a++lied to(ards defrayin* the *eneral e1+ense of the
em+ire, and to(ards +ayin* the +u&li) de&t- .ut if from the
+resent re'enue of 6reat .ritain a million )ould in +ea)ea&le
times &e s+ared to(ards the +ayment of that de&t, si1 millions
t(o hundred and fifty thousand +ounds )ould 'ery (ell &e s+ared
from this im+ro'ed re'enue- This *reat sin0in* fund, too, mi*ht
&e au*mented e'ery year &y the interest of the de&t (hi)h had
&een dis)har*ed the year &efore, and mi*ht in this manner
in)rease so 'ery ra+idly as to &e suffi)ient in a fe( years to
dis)har*e the (hole de&t, and thus to restore )om+letely the at
+resent de&ilitated and lan*uishin* 'i*our of the em+ire- In the
meantime the +eo+le mi*ht &e relie'ed from some of the most
&urdensome ta1es/ from those (hi)h are im+osed either u+on the
ne)essaries of life, or u+on the materials of manufa)ture- The
la&ourin* +oor (ould thus &e ena&led to li'e &etter, to (or0
)hea+er, and to send their *oods )hea+er to mar0et- The )hea+ness
of their *oods (ould in)rease the demand for them, and
)onsequently for the la&our of those (ho +rodu)ed them- This
in)rease in the demand for la&our (ould &oth in)rease the num&ers
and im+ro'e the )ir)umstan)es of the la&ourin* +oor- Their
)onsum+tion (ould in)rease, and to*ether (ith it the re'enue
arisin* from all those arti)les of their )onsum+tion u+on (hi)h
the ta1es mi*ht &e allo(ed to remain-
The re'enue arisin* from this system of ta1ation, ho(e'er,
mi*ht not immediately in)rease in +ro+ortion to the num&er of
+eo+le (ho (ere su&2e)ted to it- 6reat indul*en)e (ould for some
time &e due to those +ro'in)es of the em+ire (hi)h (ere thus
su&2e)ted to &urdens to (hi)h they had not &efore &een
a))ustomed, and e'en (hen the same ta1es )ame to &e le'ied
e'ery(here as e1a)tly as +ossi&le, they (ould not e'ery(here
+rodu)e a re'enue +ro+ortioned to the num&ers of the +eo+le- In a
+oor )ountry the )onsum+tion of the +rin)i+al )ommodities su&2e)t
to the duties of )ustoms and e1)ise is 'ery small, and in a
thinly inha&ited )ountry the o++ortunities of smu**lin* are 'ery
*reat- The )onsum+tion of malt liquors amon* the inferior ran0s
of +eo+le in S)otland is 'ery small, and the e1)ise u+on malt,
&eer, and ale +rodu)es less there than in $n*land in +ro+ortion
to the num&ers of the +eo+le and the rate of the duties, (hi)h
u+on malt is different on a))ount of a su++osed differen)e of
quality- In these +arti)ular &ran)hes of the e1)ise there is not,
I a++rehend, mu)h more smu**lin* in the one )ountry than in the
other- The duties u+on the distillery, and the *reater +art of
the duties of )ustoms, in +ro+ortion to the num&ers of +eo+le in
the res+e)ti'e )ountries, +rodu)e less in S)otland than in
$n*land, not only on a))ount of the smaller )onsum+tion of the
ta1ed )ommodities, &ut of the mu)h *reater fa)ility of smu**lin*-
In Ireland the inferior ran0s of +eo+le are still +oorer than in
S)otland, and many +arts of the )ountry are almost as thinly
inha&ited- In Ireland, therefore, the )onsum+tion of the ta1ed
)ommodities mi*ht, in +ro+ortion to the num&er of the +eo+le, &e
still less than S)otland, and the fa)ility of smu**lin* nearly
the same- In Ameri)a and the West Indies the (hite +eo+le e'en of
the lo(est ran0 are in mu)h &etter )ir)umstan)es than those of
the same ran0 in $n*land, and their )onsum+tion of all the
lu1uries in (hi)h they usually indul*e themsel'es is +ro&a&ly
mu)h *reater- The &la)0s, indeed, (ho ma0e the *reater +art of
the inha&itants &oth of the southern )olonies u+on the )ontinent
and of the West India islands, as they are in a state of sla'ery,
are, no dou&t, in a (orse )ondition than the +oorest +eo+le
either in S)otland or Ireland- We must not, ho(e'er, u+on that
a))ount, ima*ine that they are (orse fed, or that their
)onsum+tion of arti)les (hi)h mi*ht &e su&2e)ted to moderate
duties is less than that e'en of the lo(er ran0s of +eo+le in
$n*land- In order that they may (or0 (ell, it is the interest of
their master that they should &e fed (ell and 0e+t in *ood heart
in the same manner as it is his interest that his (or0in* )attle
should &e so- The &la)0s a))ordin*ly ha'e almost e'ery(here their
allo(an)e of rum and molasses or s+ru)e &eer in the same manner
as the (hite ser'ants, and this allo(an)e (ould not +ro&a&ly &e
(ithdra(n thou*h those arti)les should &e su&2e)ted to moderate
duties- The )onsum+tion of the ta1ed )ommodities, therefore, in
+ro+ortion to the num&er of inha&itants, (ould +ro&a&ly &e as
*reat in Ameri)a and the West Indies as in any +art of the
.ritish em+ire- The o++ortunities of smu**lin*, indeed, (ould &e
mu)h *reater/ Ameri)a, in +ro+ortion to the e1tent of the
)ountry, &ein* mu)h more thinly inha&ited than either S)otland or
Ireland- If the re'enue, ho(e'er, (hi)h is at +resent raised &y
the different duties u+on malt and malt liquors (ere to &e le'ied
&y a sin*le duty u+on malt, the o++ortunity of smu**lin* in the
most im+ortant &ran)h of the e1)ise (ould &e almost entirely
ta0en a(ay3 and if the duties of )ustoms, instead of &ein*
im+osed u+on almost all the different arti)les of im+ortation,
(ere )onfined to a fe( of the most *eneral use and )onsum+tion,
and if the le'yin* of those duties (ere su&2e)ted to the e1)ise
la(s, the o++ortunity of smu**lin*, thou*h not so entirely ta0en
a(ay, (ould &e 'ery mu)h diminished- In )onsequen)e of those t(o,
a++arently, 'ery sim+le and easy alterations, the duties of
)ustoms and e1)ise mi*ht +ro&a&ly +rodu)e a re'enue as *reat in
+ro+ortion to the )onsum+tion of the most thinly inha&ited
+ro'in)e as they do at +resent in +ro+ortion to that of the most
+o+ulous-
The Ameri)ans, it has &een said, indeed, ha'e no *old or
sil'er money/ the interior )ommer)e of the )ountry &ein* )arried
on &y a +a+er )urren)y, and the *old and sil'er (hi)h
o))asionally )ome amon* them &ein* all sent to 6reat .ritain in
return for the )ommodities (hi)h they re)ei'e from us- .ut
(ithout *old and sil'er, it is added, there is no +ossi&ility of
+ayin* ta1es- We already *et all the *old and sil'er (hi)h they
ha'e- #o( is it +ossi&le to dra( from them (hat they ha'e not>
The +resent s)ar)ity of *old and sil'er money in Ameri)a is
not the effe)t of the +o'erty of that )ountry, or of the
ina&ility of the +eo+le there to +ur)hase those metals- In a
)ountry (here the (a*es of la&our are so mu)h hi*her, and the
+ri)e of +ro'isions so mu)h lo(er than in $n*land, the *reater
+art of the +eo+le must surely ha'e (here(ithal to +ur)hase a
*reater quantity if it (ere either ne)essary or )on'enient for
them to do so- The s)ar)ity of those metals, therefore, must &e
the effe)t of )hoi)e, and not of ne)essity-
It is for transa)tin* either domesti) or forei*n &usiness
that *old and sil'er money is either ne)essary or )on'enient-
The domesti) &usiness of e'ery )ountry, it has &een sho(n in
the se)ond &oo0 of this Inquiry, may, at least in +ea)ea&le
times, &e transa)ted &y means of a +a+er )urren)y (ith nearly the
same de*ree of )on'enien)y as &y *old and sil'er money- It is
)on'enient for the Ameri)ans, (ho )ould al(ays em+loy (ith +rofit
in the im+ro'ement of their lands a *reater sto)0 than they )an
easily *et, to sa'e as mu)h as +ossi&le the e1+ense of so )ostly
an instrument of )ommer)e as *old and sil'er, and rather to
em+loy that +art of their sur+lus +rodu)e (hi)h (ould &e
ne)essary for +ur)hasin* those metals in +ur)hasin* the
instruments of trade, the materials of )lothin*, se'eral +arts of
household furniture, and the iron(or0 ne)essary for &uildin* and
e1tendin* their settlements and +lantations/ in +ur)hasin*, not
dead sto)0, &ut a)ti'e and +rodu)ti'e sto)0- The )olony
*o'ernments find it for their interest to su++ly the +eo+le (ith
su)h a quantity of +a+ermoney as is fully suffi)ient and
*enerally more than suffi)ient for transa)tin* their domesti)
&usiness- Some of those *o'ernments, that of ennsyl'ania
+arti)ularly, deri'e a re'enue from lendin* this +a+er8money to
their su&2e)ts at an interest of so mu)h +er )ent- Others, li0e
that of 4assa)husetts .ay, ad'an)e u+on e1traordinary emer*en)ies
a +a+er8money of this 0ind for defrayin* the +u&li) e1+ense, and
after(ards, (hen it suits the )on'enien)y of the )olony, redeem
it at the de+re)iated 'alue to (hi)h it *radually falls- In 17G7,
that )olony +aid, in this manner, the *reater +art of its +u&li)
de&ts (ith the tenth +art of the money for (hi)h its &ills had
&een *ranted- It suits the )on'enien)y of the +lanters to sa'e
the e1+ense of em+loyin* *old and sil'er money in their domesti)
transa)tions, and it suits the )on'enien)y of the )olony
*o'ernments to su++ly them (ith a medium (hi)h, thou*h attended
(ith some 'ery )onsidera&le disad'anta*es, ena&les them to sa'e
that e1+ense- The redundan)y of +a+er8money ne)essarily &anishes
*old and sil'er from the domesti) transa)tions of the )olonies,
for the same reason that it has &anished those metals from the
*reater +art of the domesti) transa)tions in S)otland/ and in
&oth )ountries it is not the +o'erty, &ut the enter+risin* and
+ro2e)tin* s+irit of the +eo+le, their desire of em+loyin* all
the sto)0 (hi)h they )an *et as a)ti'e and +rodu)ti'e sto)0,
(hi)h has o))asioned this redundan)y of +a+er8money- In the
e1terior )ommer)e (hi)h the different )olonies )arry on (ith
6reat .ritain, *old and sil'er are more or less em+loyed e1a)tly
in +ro+ortion as they are more or less ne)essary- Where those
metals are not ne)essary they seldom a++ear- Where they are
ne)essary they are *enerally found-
In the )ommer)e &et(een 6reat .ritain and the to&a))o
)olonies the .ritish *oods are *enerally ad'an)ed to the
)olonists at a +retty lon* )redit, and are after(ards +aid for in
to&a))o, rated at a )ertain +ri)e- It is more )on'enient for the
)olonists to +ay in to&a))o than in *old and sil'er- It (ould &e
more )on'enient for any mer)hant to +ay for the *oods (hi)h his
)orres+ondents had sold to him in some other sort of *oods (hi)h
he mi*ht ha++en to deal in than in money- Su)h a mer)hant (ould
ha'e no o))asion to 0ee+ any +art of his sto)0 &y him unem+loyed,
and in ready money, for ans(erin* o))asional demands- #e )ould
ha'e, at all times, a lar*er quantity of *oods in his sho+ or
(arehouse, and he )ould deal to a *reater e1tent- .ut it seldom
ha++ens to &e )on'enient for all the )orres+ondents of a mer)hant
to re)ei'e +ayment for the *oods (hi)h they sell to him in *oods
of some other 0ind (hi)h he ha++ens to deal in- The .ritish
mer)hants (ho trade to 5ir*inia and 4aryland ha++en to &e a
+arti)ular set of )orres+ondents, to (hom it is more )on'enient
to re)ei'e +ayment for the *oods (hi)h they sell to those
)olonies in to&a))o than in *old and sil'er- They e1+e)t to ma0e
a +rofit &y the sale of the to&a))o- They )ould ma0e none &y that
of the *old and sil'er- 6old and sil'er, therefore, 'ery seldom
a++ear in the )ommer)e &et(een 6reat .ritain and the to&a))o
)olonies- 4aryland and 5ir*inia ha'e as little o))asion for those
metals in their forei*n as in their domesti) )ommer)e- They are
said, a))ordin*ly, to ha'e less *old and sil'er money than any
other )olonies in Ameri)a- They are re)0oned, ho(e'er, as
thri'in*, and )onsequently as ri)h, as any of their nei*h&ours-
In the northern )olonies, ennsyl'ania, Ne( 7or0, Ne(
Aersey, the four *o'ernments of Ne( $n*land, et)-, the 'alue of
their o(n +rodu)e (hi)h they e1+ort to 6reat .ritain is not equal
to that of the manufa)tures (hi)h they im+ort for their o(n use,
and for that of some of the other )olonies to (hi)h they are the
)arriers- A &alan)e, therefore, must &e +aid to the mother
)ountry in *old and sil'er, and this &alan)e they *enerally find-
In the su*ar )olonies the 'alue of the +rodu)e annually
e1+orted to 6reat .ritain is mu)h *reater than that of all the
*oods im+orted from then)e- If the su*ar and rum annually sent to
the mother )ountry (ere +aid for in those )olonies, 6reat .ritain
(ould &e o&li*ed to send out e'ery year a 'ery lar*e &alan)e in
money, and the trade to the West Indies (ould, &y a )ertain
s+e)ies of +oliti)ians, &e )onsidered as e1tremely
disad'anta*eous- .ut it so ha++ens that many of the +rin)i+al
+ro+rietors of the su*ar +lantations reside in 6reat .ritain-
Their rents are remitted to them in su*ar and rum, the +rodu)e of
their estates- The su*ar and rum (hi)h the West India mer)hants
+ur)hase in those )olonies u+on their o(n a))ount are not equal
in 'alue to the *oods (hi)h they annually sell there- A &alan)e,
therefore, must ne)essarily &e +aid to them in *old and sil'er,
and this &alan)e, too, is *enerally found-
The diffi)ulty and irre*ularity of +ayment from the
different )olonies to 6reat .ritain ha'e not &een at all in
+ro+ortion to the *reatness or smallness of the &alan)es (hi)h
(ere res+e)ti'ely due from them- ayments ha'e in *eneral &een
more re*ular from the northern than from the to&a))o )olonies,
thou*h the former ha'e *enerally +aid a +retty lar*e &alan)e in
money, (hile the latter ha'e either +aid no &alan)e, or a mu)h
smaller one- The diffi)ulty of *ettin* +ayment from our different
su*ar )olonies has &een *reater or less in +ro+ortion, not so
mu)h to the e1tent of the &alan)es res+e)ti'ely due from them, as
to the quantity of un)ulti'ated land (hi)h they )ontained/ that
is, to the *reater or smaller tem+tation (hi)h the +lanters ha'e
&een under of o'ertradin*, or of underta0in* the settlement and
+lantation of *reater quantities of (aste land than suited the
e1tent of their )a+itals- The returns from the *reat island of
Aamai)a, (here there is still mu)h un)ulti'ated land, ha'e, u+on
this a))ount, &een in *eneral more irre*ular and un)ertain than
those from the smaller islands of .ar&adoes, Anti*ua, and St-
Christo+hers, (hi)h ha'e for these many years &een )om+letely
)ulti'ated, and ha'e, u+on that a))ount, afforded less field for
the s+e)ulations of the +lanter- The ne( a)quisitions of 6renada,
To&a*o, St- 5in)ents, and Domini)a ha'e o+ened a ne( field for
s+e)ulations of this 0ind, and the returns from those islands
ha'e of late &een as irre*ular and un)ertain as those from the
*reat island of Aamai)a-
It is not, therefore, the +o'erty of the )olonies (hi)h
o))asions, in the *reater +art of them, the +resent s)ar)ity of
*old and sil'er money- Their *reat demand for a)ti'e and
+rodu)ti'e sto)0 ma0es it )on'enient for them to ha'e as little
dead sto)0 as +ossi&le, and dis+oses them u+on that a))ount to
)ontent themsel'es (ith a )hea+er thou*h less )ommodious
instrument of )ommer)e than *old and sil'er- They are there&y
ena&led to )on'ert the 'alue of that *old and sil'er into the
instruments of trade, into the materials of )lothin*, into
household furniture, and into the iron(or0 ne)essary for &uildin*
and e1tendin* their settlements and +lantations- In those
&ran)hes of &usiness (hi)h )annot &e transa)ted (ithout *old and
sil'er money, it a++ears that they )an al(ays find the ne)essary
quantity of those metals/ and if they frequently do not find it,
their failure is *enerally the effe)t, not of their ne)essary
+o'erty, &ut of their unne)essary and e1)essi'e enter+rise- It is
not &e)ause they are +oor that their +ayments are irre*ular and
un)ertain, &ut &e)ause they are too ea*er to &e)ome e1)essi'ely
ri)h- Thou*h all that +art of the +rodu)e of the )olony ta1es
(hi)h (as o'er and a&o'e (hat (as ne)essary for defrayin* the
e1+ense of their o(n )i'il and military esta&lishments (ere to &e
remitted to 6reat .ritain in *old and sil'er, the )olonies ha'e
a&undantly (here(ithal to +ur)hase the requisite quantity of
those metals- They (ould in this )ase &e o&li*ed, indeed, to
e1)han*e a +art of their sur+lus +rodu)e, (ith (hi)h they no(
+ur)hase a)ti'e and +rodu)ti'e sto)0, for dead sto)0- In
transa)tin* their domesti) &usiness they (ould &e o&li*ed to
em+loy a )ostly instead of a )hea+ instrument of )ommer)e, and
the e1+ense of +ur)hasin* this )ostly instrument mi*ht dam+
some(hat the 'i'a)ity and ardour of their e1)essi'e enter+rise in
the im+ro'ement of land- It mi*ht not, ho(e'er, &e ne)essary to
remit any +art of the Ameri)an re'enue in *old and sil'er- It
mi*ht &e remitted in &ills dra(n u+on and a))e+ted &y +arti)ular
mer)hants or )om+anies in 6reat .ritain to (hom a +art of the
sur+lus +rodu)e of Ameri)a had &een )onsi*ned, (ho (ould +ay into
the treasury the Ameri)an re'enue in money, after ha'in*
themsel'es re)ei'ed the 'alue of it in *oods/ and the (hole
&usiness mi*ht frequently &e transa)ted (ithout e1+ortin* a
sin*le oun)e of *old or sil'er from Ameri)a-
It is not )ontrary to 2usti)e that &oth Ireland and Ameri)a
should )ontri&ute to(ards the dis)har*e of the +u&li) de&t of
6reat .ritain- That de&t has &een )ontra)ted in su++ort of the
*o'ernment esta&lished &y the Re'olution, a *o'ernment to (hi)h
the rotestants of Ireland o(e, not only the (hole authority
(hi)h they at +resent en2oy in their o(n )ountry, &ut e'ery
se)urity (hi)h they +ossess for their li&erty, their +ro+erty,
and their reli*ion/ a *o'ernment to (hi)h se'eral of the )olonies
of Ameri)a o(e their +resent )harters, and )onsequently their
+resent )onstitution, and to (hi)h all the )olonies of Ameri)a
o(e the li&erty, se)urity, and +ro+erty (hi)h they ha'e e'er
sin)e en2oyed- That +u&li) de&t has &een )ontra)ted in the
defen)e, not of 6reat .ritain alone, &ut of all the different
+ro'in)es of the em+ire/ the immense de&t )ontra)ted in the late
(ar in +arti)ular, and a *reat +art of that )ontra)ted in the (ar
&efore, (ere &oth +ro+erly )ontra)ted in defen)e of Ameri)a-
.y a union (ith 6reat .ritain, Ireland (ould *ain, &esides
the freedom of trade, other ad'anta*es mu)h more im+ortant, and
(hi)h (ould mu)h more than )om+ensate any in)rease of ta1es that
mi*ht a))om+any that union- .y the union (ith $n*land the
middlin* and inferior ran0s of +eo+le in S)otland *ained a
)om+lete deli'eran)e from the +o(er of an aristo)ra)y (hi)h had
al(ays &efore o++ressed them- .y a union (ith 6reat .ritain the
*reater +art of the +eo+le of all ran0s in Ireland (ould *ain an
equally )om+lete deli'eran)e from a mu)h more o++ressi'e
aristo)ra)y/ an aristo)ra)y not founded, li0e that of S)otland,
in the natural and res+e)ta&le distin)tions of &irth and fortune,
&ut in the most odious of all distin)tions, those of reli*ious
and +oliti)al +re2udi)es/ distin)tions (hi)h, more than any
other, animate &oth the insolen)e of the o++ressors and the
hatred and indi*nation of the o++ressed, and (hi)h )ommonly
render the inha&itants of the same )ountry more hostile to one
another than those of different )ountries e'er are- Without a
union (ith 6reat .ritain the inha&itants of Ireland are not
li0ely for many a*es to )onsider themsel'es as one +eo+le-
No o++ressi'e aristo)ra)y has e'er +re'ailed in the
)olonies- $'en they, ho(e'er, (ould, in +oint of ha++iness and
tranquility, *ain )onsidera&ly &y a union (ith 6reat .ritain- It
(ould, at least, deli'er them from those ran)orous and 'irulent
fa)tions (hi)h are inse+ara&le from small demo)ra)ies, and (hi)h
ha'e so frequently di'ided the affe)tions of their +eo+le, and
distur&ed the tranquillity of their *o'ernments, in their form so
nearly demo)rati)al- In the )ase of a total se+aration from 6reat
.ritain, (hi)h, unless +re'ented &y a union of this 0ind, seems
'ery li0ely to ta0e +la)e, those fa)tions (ould &e ten times more
'irulent than e'er- .efore the )ommen)ement of the +resent
distur&an)es, the )oer)i'e +o(er of the mother )ountry had al(ays
&een a&le to restrain those fa)tions from &rea0in* out into
anythin* (orse than *ross &rutality and insult- If that )oer)i'e
+o(er (ere entirely ta0en a(ay, they (ould +ro&a&ly soon &rea0
out into o+en 'iolen)e and &loodshed- In all *reat )ountries
(hi)h are united under one uniform *o'ernment, the s+irit of
+arty )ommonly +re'ails less in the remote +ro'in)es than in the
)entre of the em+ire- The distan)e of those +ro'in)es from the
)a+ital, from the +rin)i+al seat of the *reat s)ram&le of fa)tion
and am&ition, ma0es them enter less into the 'ie(s of any of the
)ontendin* +arties, and renders them more indifferent and
im+artial s+e)tators of the )ondu)t of all- The s+irit of +arty
+re'ails less in S)otland than in $n*land- In the )ase of a union
it (ould +ro&a&ly +re'ail less in Ireland than in S)otland, and
the )olonies (ould +ro&a&ly soon en2oy a de*ree of )on)ord and
unanimity at +resent un0no(n in any +art of the .ritish em+ire-
.oth Ireland and the )olonies, indeed, (ould &e su&2e)ted to
hea'ier ta1es than any (hi)h they at +resent +ay- In )onsequen)e,
ho(e'er, of a dili*ent and faithful a++li)ation of the +u&li)
re'enue to(ards the dis)har*e of the national de&t, the *reater
+art of those ta1es mi*ht not &e of lon* )ontinuan)e, and the
+u&li) re'enue of 6reat .ritain mi*ht soon &e redu)ed to (hat (as
ne)essary for maintainin* a moderate +ea)e esta&lishment-
The territorial a)quisitions of the $ast India Com+any, the
undou&ted ri*ht of the )ro(n, that is, of the state and +eo+le of
6reat .ritain, mi*ht &e rendered another sour)e of re'enue more
a&undant, +erha+s, than all those already mentioned- Those
)ountries are re+resented as more fertile, more e1tensi'e, and,
in +ro+ortion to their e1tent, mu)h ri)her and more +o+ulous than
6reat .ritain- In order to dra( a *reat re'enue from them, it
(ould not +ro&a&ly &e ne)essary to introdu)e any ne( system of
ta1ation into )ountries (hi)h are already suffi)iently and more
than suffi)iently ta1ed- It mi*ht, +erha+s, &e more +ro+er to
li*hten than to a**ra'ate the &urden of those unfortunate
)ountries, and to endea'our to dra( a re'enue from them, not &y
im+osin* ne( ta1es, &ut &y +re'entin* the em&e;;lement and
misa++li)ation of the *reater +art of those (hi)h they already
+ay-
If it should &e found im+ra)ti)a&le for 6reat .ritain to
dra( any )onsidera&le au*mentation of re'enue from any of the
resour)es a&o'e mentioned, the only resour)e (hi)h )an remain to
her is a diminution of her e1+ense- In the mode of )olle)tin* and
in that of e1+endin* the +u&li) re'enue, thou*h in &oth there may
&e still room for im+ro'ement, 6reat .ritain seems to &e at least
as e)onomi)al as any of her nei*h&ours- The military
esta&lishment (hi)h she maintains for her o(n defen)e in time of
+ea)e is more moderate than that of any $uro+ean state (hi)h )an
+retend to ri'al her either in (ealth or in +o(er- None of those
arti)les, therefore, seem to admit of any )onsidera&le redu)tion
of e1+ense- The e1+ense of the +ea)e esta&lishment of the
)olonies (as, &efore the )ommen)ement of the +resent
distur&an)es, 'ery )onsidera&le, and is an e1+ense (hi)h may, and
if no re'enue )an &e dra(n from them ou*ht )ertainly to &e sa'ed
alto*ether- This )onstant e1+ense in time of +ea)e, thou*h 'ery
*reat, is insi*nifi)ant in )om+arison (ith (hat the defen)e of
the )olonies has )ost us in time of (ar- The last (ar, (hi)h (as
underta0en alto*ether on a))ount of the )olonies, )ost 6reat
.ritain, it has already &een o&ser'ed, u+(ards of ninety
millions- The S+anish (ar of 17BF (as +rin)i+ally underta0en on
their a))ount, in (hi)h, and in the "ren)h (ar that (as the
)onsequen)e of it, 6reat .ritain s+ent u+(ards of forty millions,
a *reat +art of (hi)h ou*ht 2ustly to &e )har*ed to the )olonies-
In those t(o (ars the )olonies )ost 6reat .ritain mu)h more than
dou&le the sum (hi)h the national de&t amounted to &efore the
)ommen)ement of the first of them- #ad it not &een for those (ars
that de&t mi*ht, and +ro&a&ly (ould &y this time, ha'e &een
)om+letely +aid/ and had it not &een for the )olonies, the former
of those (ars mi*ht not, and the latter )ertainly (ould not ha'e
&een underta0en- It (as &e)ause the )olonies (ere su++osed to &e
+ro'in)es of the .ritish em+ire that this e1+ense (as laid out
u+on them- .ut )ountries (hi)h )ontri&ute neither re'enue nor
military for)e to(ards the su++ort of the em+ire )annot &e
)onsidered as +ro'in)es- They may +erha+s &e )onsidered as
a++enda*es, as a sort of s+lendid and sho(y equi+a*e of the
em+ire- .ut if the em+ire )an no lon*er su++ort the e1+ense of
0ee+in* u+ this equi+a*e, it ou*ht )ertainly to lay it do(n/ and
if it )annot raise its re'enue in +ro+ortion to its e1+ense, it
ou*ht, at least, to a))ommodate its e1+ense to its re'enue- If
the )olonies, not(ithstandin* their refusal to su&mit to .ritish
ta1es, are still to &e )onsidered as +ro'in)es of the .ritish
em+ire, their defen)e in some future (ar may )ost 6reat .ritain
as *reat an e1+ense as it e'er has done in any former (ar- The
rulers of 6reat .ritain ha'e, for more than a )entury +ast,
amused the +eo+le (ith the ima*ination that they +ossessed a
*reat em+ire on the (est side of the Atlanti)- This em+ire,
ho(e'er, has hitherto e1isted in ima*ination only- It has
hitherto &een, not an em+ire, &ut the +ro2e)t of an em+ire/ not a
*old mine, &ut the +ro2e)t of a *old mine/ a +ro2e)t (hi)h has
)ost, (hi)h )ontinues to )ost, and (hi)h, if +ursued in the same
(ay as it has &een hitherto, is li0ely to )ost, immense e1+ense,
(ithout &ein* li0ely to &rin* any +rofit/ for the effe)ts of the
mono+oly of the )olony trade, it has &een sho(n, are, to the
*reat &ody of the +eo+le, mere loss instead of +rofit- It is
surely no( time that our rulers should either reali;e this *olden
dream, in (hi)h they ha'e &een indul*in* themsel'es, +erha+s, as
(ell as the +eo+le, or that they should a(a0e from it themsel'es,
and endea'our to a(a0en the +eo+le- If the +ro2e)t )annot &e
)om+leted, it ou*ht to &e *i'en u+- If any of the +ro'in)es of
the .ritish em+ire )annot &e made to )ontri&ute to(ards the
su++ort of the (hole em+ire, it is surely time that 6reat .ritain
should free herself from the e1+ense of defendin* those +ro'in)es
in time of (ar, and of su++ortin* any +art of their )i'il or
military esta&lishments in time of +ea)e, and endea'our to
a))ommodate her future 'ie(s and desi*ns to the real medio)rity
of her )ir)umstan)es- A$NDII
A++endi1
The t(o follo(in* a))ounts are su&2oined in order to illustrate
and )onfirm (hat is said in the fifth )ha+ter of the fourth &oo0,
)on)ernin* the tonna*e &ounty to the (hite8herrin* fishery- The
reader, I &elie'e, may de+end u+on the a))ura)y of &oth a))ounts-
An a))ount of .usses fitted out in S)otland for $le'en 7ears,
(ith the Num&er of $m+ty .arrels )arried out, and the Num&er of
.arrels of #errin*s )au*ht/ also the .ounty at a 4edium on ea)h
.arrel of Seastee0s, and on ea)h .arrel (hen fully +a)0ed-
$m+ty .arrels
Num&er of .arrels of #errin*s .ounty
+aid on 7ears .usses )arried out )au*ht
the .usses
! s-
d- 1771 EF HFG? E?BE EC?H
C C
177E 16? G1B16 EEEB7 11CHH 7
6
177B 1FC GEBBB GECHH 1EH1C ?
6
177G EG? HFBCB H6B6H 16FHE E
6
177H E7H 6F1GG HE?7F 1FB1H 1H
C
1776 EFG 76BEF H1?6B E1EFC 7
6
1777 EGC 6E67F GBB1B 17HFE E
6
177? EEC H6BFC GCFH? 16B16 E
6
177F EC6 HH1FG EFB67 1HE?7 C
C
17?C 1?1 G?B1H 1F??H 1BGGH 1E
6
17?1 1BH BBFFE 16HFB F61B 1E
6
8888 888888 888888 888888 88
8
Total E1?6 HHCFGB B7?BG7 1HHG6B 11
C
Seastee0s B7?,BG7 .ounty at a medium for
ea)h
&arrel of seastee0s
!C ? E
1DG
.ut a &arrel of seastee0s
&ein*
only re)0oned t(o8thirds of
a
&arrel fully +a)0ed,
one8third is
dedu)ted, (hi)h &rin*s the
&ounty
to !C 1E B
BDG 1DB dedu)ted 1E6,11H EDB
88888888888
.arrels fully +a)0ed EHE,EB1 1DB
And if the herrin*s are e1+orted, there is, &esides, a +remium of
C E ?
88888888888888
So that the &ounty +aid &y 6o'ernment in money for ea)h &arrel is
!C 1G 11 BDG
.ut if to this the duty of the salt usually ta0en )redit for as
e1+ended in )urin* ea)h &arrel, (hi)h at a medium is of forei*n,
one &ushel and one8fourth of a &ushel, at 1Cs- a &ushel, &e
added, 'i;- C 1E 6

88888888888888
The &ounty on ea)h &arrel (ould amount to !1 7
H BDG
If the herrin*s are )ured (ith .ritish salt, it (ill stand thus,
'i;- .ounty as &efore !C 1G
11 BDG
.ut if to this &ounty the duty on t(o &ushels of S)ots salt at
1s- 6d- +er &ushel, su++osed to &e the quantity at a medium used
in )urin* ea)h &arrel is added, to (it C
B C
88888888888888
The &ounty on ea)h &arrel (ill amount to !C 17 11 BDG
And, When &uss herrin*s are entered for home )onsum+tion in
S)otland, and +ay the shillin* a &arrel of duty, the &ounty
stands thus, to (it as &efore
!C 1E B BDG
"rom (hi)h the 1s- a &arrel is to &e dedu)ted C 1 C

88888888888888
C 11 B
BDG
.ut to that there is to &e added a*ain the duty of the forei*n
salt used in )urin* a &arrel of herrin*s, 'i;-
C 1E 6
88888888888888
So that the +remium allo(ed for ea)h &arrel of herrin* entered
for home )onsum+tion is !1 B F BDG
If the herrin*s are )ured (ith .ritish salt, it (ill stand as
follo(s, 'i;- .ounty on ea)h &arrel &rou*ht in &y the &usses as
a&o'e !C 1E B
BDG
"rom (hi)h dedu)t the 1s- a &arrel +aid at the time they are
entered for home )onsum+tion C 1 C
88888888888888
!C 11 B
BDG
.ut if to the &ounty the duty on t(o &ushels of S)ots salt at
1s- 6d- +er &ushel, su++osed to &e the quantity at a medium used
in )urin* ea)h &arrel, is added, to (it
C B C

88888888888888
The +remium for ea)h &arrel entered for home )onsum+tion (ill
&e !C 1G B BDG
Thou*h the loss of duties u+on herrin*s e1+orted )annot,
+erha+s +ro+erly &e )onsidered as &ounty/ that u+on herrin*s
entered for home )onsum+tion )ertainly may-
An A))ount of the Juantity of "orei*n Salt im+orted in S)otland, and of S)ots Salt deli'ered
Duty free from the Wor0s there for the "ishery, from the Hth of A+ril 1771 to the Hth of A+ril 17?E,
(ith a 4edium of &oth for one 7ear-
S)ots Salt
"orei*n Salt deli'ered from
eriod Im+orted the Wor0s
.ushels .ushels
"rom the Hth of A+ril 1771
to the Hth of A+ril 17?E FB6,F7G 16?,EE6
4edium for one 7ear ?H,17F HD11 1H,EFB BD11
It is to &e o&ser'ed that the .ushel of "orei*n Salt (ei*hts ?G l&-, that of .ritish Salt H6 l&- only-
T#$ $ND