“Smith: Wealth of Nations, Book I, Chapters 1-4 | Library of Eeonomies and Liberty TRU IXelo) Tale CZzaunsarawe ‘An Inquiry into the Nature and Causes ofthe Wealth of Nations Introduction and Plan of the Work “tne annual” lebour of every natin I the fund which oninaly supplies iwi all he necessaries andcanverienies of ie" which Droduce of that labour, or in what is purchased with that produce from According therfore, as this produce, or what purchased wth it bears preter or smaiarpropartion fo the numberof tose who are to cansume ithe naan wil be Beta of worse suppl with all he ‘necessaries and convenlancls for whi fas occas.» axe tis proportion must in every nation be regulated by two ‘aimeren dveumstances rst by the sk, exterty, ana judgment with which its labour is generally pple; and," secondly. by the Proportion between the number of thse whe are empoyed In useful Iabour, and tot of those who arena o employed.” whatever Bethe Sol, cimate, or extent of tertary of any parveuar nation, the Sundance or seetiness of ts annual Supply est in that partir ‘ituston, depend upon hase two creurstances. ‘The abundance or scatinest of ths suppl too seems to depend more upon the former of there two circumstances thon onthe Tater. "Among the savage natons of hunters and fishers, every Indvidil who able to werk, Is more oF less employed in useful ‘abour, and endeavours to provide, ab well ase can the necessaries fd conveniences of efor hums "such of his Tari tbe 135 ae ether tao ai, oF tao young, 2 too Infim eo go hundng and Fehing. Such nation, however, are so miserably poor, tht fom mere want, they are equenty reduced, or, at least, tink themselves reduced, to the recessy someumes of recy destroying, and Sometimes of abandoning ter Infans, trer eld people, and these BMicted wit ngenng asease, to perish with hunger, or to be ‘evoured by wild beasts. Among hizes and thrwing nations, onthe ana, though a great number of people donot labour ata, many Sf wham consume the produce oftentimes, frequent of a hundred times mare iabour than whe reste fet of thase who work yet the produce of the whale iaboor of the socey is so great, that all re ttp-/iww.econli.orglibrary/SmithismWN1 tml Page 1 of 23, 13/2201‘Smith: Wealth of Nations, Book I, Chapters 1-4 | Library of Economics and Liberty ten abundantly suppliad, ond 8 workman, even a he lowest end poorest order fhe fe rugal and Industrovs, may esjey ® greater Share of the necessaries and convenienis of ethane posable for ny savage segue The causes” of this improvement In the productive powers of labour, nd the order, accraing to whichis produce it naturally Innp:/Avmw.econlib.orglibrary/Smith/smWNI. ml Page 11 of 25 13/2R018‘Smith: Wealth of Nations, Book I, Chapters 1-4 | Library of Economics and Liberty Inutps/ivww.econii sve this for that'Wnen an animal wants to abtain someting ‘ether of a man of of anther animel, t has a0 other means of fersuason but to goin the favour of those whose service eraqures. A uppy fawns upon is dam, ond 2 spenil endeovours by 2 toveang ‘actions to engage the attengon of Is master who fat inner, ‘then Tenants to be fed by him Man sometimes ses the saree ar ‘nth his bretire, end when he has no other means of engaging them {5 act accoring to hs Incnlons, endeavours by svery serve 99d ‘honing attenin to obtain their good wil. He Rast me, however, 'b'do this upon every occasion. In cized solely he stands al {mes in need af the cooperation and assstonce of teat mule, ile his whole Wei sarc suiclnt te gain the endship af few {Eevsons. In almost every other rae of animals each navi, when ‘grow up to matory, fe eneraly" Independent, and ins nour {fate has pecaion for the assistance of re sterling creature, Bet Iman has amast constant occasion for the hep of hs brtven, and iin vain for him to expec frm Ure benevolence any. He wll be ‘mate ikay to preval if he con interest their selove ins favour and ‘how thom that itis for thelr awn advantage to 3 for him what he ‘quires of them. Whoever offers to another a bargain Of any kid ‘arselves, not to thelr humanity but to Wie selFove, poem N. {well deposed people, Indeed, supplies him wih the whole fund of fis subsstenee. Sut though this prinepie umately provides nih {the necessaries of fe whieh he has oecation for, & nether docs nor {an provide him with them a he has oceasion for them. The grester Bat of his eecasional wants ae supplied inthe same manner ag ase ‘ether people, by Weaty, by barter, and by purchae. Wth the Froney which one man gives Rim he purchases foo. The old loathe Whien another bestows upon fim Re exchanges fr aher old oaths hich Sut him better, or for fodging, ofr food, ar for maney, th Wich ne can buy ‘ether food, dosthe, or lodging, ae ne hee Fasherds a parca person makes bone and arrows, fr example, wth more readiness and destenty than any ater "He reqveryy "xchanges them for cata a for vensan wth his companions; tnd he fds at last that he can ints manner got ore ele rid vena, tan ihe ial went to the ald to catch tem From 9 regard to Mis torn itarest, Uerefore, the making of bows ond rows grows to Be Is thie business, ond he Become 9 sort of armaurer”Anather excels in making the frames and covers af ther ie huts or moveable Toutes. He is accustomed to be of ure in tis way te his neighbours, "ino reward him nthe same manner wth ene and with venison 1 bast he fas this interest to deseate hime enely to ths ‘enployment. and to become 3.ror f hause-carpenter, In the same fmannar'a third becomes a smth or 9 brviery 3 forth tanner or (Gesser of hides or skins, the principal pat ofthe dathing of savoges. Dod thus the certainty of being able to exeNonge a that surplus part, Ftp produce of hs wn labour, which is over and above hs own corg/ibrary/Smith/smWN1 tml Page 12 0f 23 13/2201‘Smit: Wealth of Nations, Book I, Chapters 1-4 | Library of Economics and Liberty Page 13 of 23 consumption, for such pars ofthe produce of ther men's sour ‘se may have occasion fr enaurages evry man fo apply Binet {o 2 pariclr cenpaton, and toate ana bing to seecon watever tan or gos he ay poser for at parteur opel buses “the aiference ot natural talents io aterent men tie anae of athe very rere Se !stngush men of diferent professions, when gran, uy, ant opon many cease to ruts Sse ee ofthe dion of bow The aifrence eS DW hos esse Charade, betvent 3 pMosopher anda conmon seat pot, fot tear, bet ite wok so ach fo nates or ta, tom an eaucauon. When they came ino te wr, on Yor te Ith ale, and nether thar parent nor payline cui peceve ny remacable ference. Abou that ape, or on ater, they coe to be employes m very ferent secon. The derence fle: Comes then toe taken noice sand widens by agree, ast the vent of the psa f wing to sdotoinge seree Soy resembles. Sut nthou the” Sapostson to Wwe bare, _and ‘cetunae ee bat most ae pte to Aad See Saez Sa eoavenancy ot fe rin he wane, Al must have Pad te Soe utes te petorm, andthe sume wort to do and thre oud have Ben se aeons of erm aren 95 lon ve wean fo Sy ores oerence fae As es ths dspostion which forms that ference of talents, <0 remarkable among men of dierent profession, so Is ths some {Aspostion whienrencers hat dfference useful Many tbes of animals fcinonledged to be all of the seme species, derive frm nature © ‘much more remarkable dstncton of genus, than what, antecedent > stom and education, appersto take pace srmong men. By nsture & loser isnot i ‘genus and dspestion hal so ferent om 3 Erect porter, 3: mast is fom a around, ora greyhound from Spanier this ast fom a shepherd's dog. Those arent bes of ‘animals, however, though al ofthe same species, are of scare any Ue to one anether. The strength of Ue mas is not i the east Supported eter by the switness ofthe greyhound, or by the sapacty ‘ofthe span or by the docity of ee shepherd's dog. Me effects of hose aifarent geniuses and talents, for went of te power or {isposion to barter and exchange, cannot be Brought into 8 eomman ‘tock, and do not the last conrbute to the beter accommodation ‘3 converioney of the species. Each asim si blige to support {nd defend tsa, separately and independent, and derives no sor of Sevantage from thot varety of talents with whieh notre es ‘isunguished Is fellows, Among man, on the cantar, the most ‘lsnmior goniises are of ure to one ner the ferent produces at thet respective talents, bythe general sposto to ck, barter, ahd ‘exctange, being brought, ab R were, into a common stock, where talents he os seeasien for ‘Motes for this chapter 4, fe, net the fect of any conscious regulation by the state or focity, like the law of Sesob, that every man shoul fallow the femployment of his other refered ton the corresponding passage in Lsctures p. 168, The dena tha isthe eee oF nil wisdom recognising the advantage of exersng special natal talents comes btp:/Awwweconlib.or library‘Smith/smWNIL html 41322011Smith: Wealth of Nations, Book I, Chapters 1-4 | Library of Economics and Liberty Page 14 of 23° ‘omer down, 1.2.34) ‘2 {tis by no means clear what object there could be in exchanging one bone for for another “5. (sprinted ‘nel in eas. 1-5. Eniely occurs tl lower down in sited) +4, he parooroph it repested from Lectures, p. £69. is founded on Mandevile, Foe oF the Bees, pt. (1729), al vi, pp. 21, 422.) 46, (Lectures, pp, 169-170.) ‘6 This s apparent directs agains Hans, Money and Cans, 5 11, and isin accordance with te view of Hume, who ask readers to ‘consider how neaty equa ll men aren her body force, and even In thee mental powers an facts, ee culated by education"OF the Orginal Contract in Essays, Moral and Poli, 1748, . 291.) 4 (Pechaps i omitted in eos. 23nd 3, and restored in the errata toe. 4) (Lectures, pp. 170-171) nd of Notes Book Cheter It ‘That the Division of Labour i Limited by the Extent ofthe Market [Winen the market 6 very smal_no. person tan hove” any ‘encouragement to deccate hime enrely to one employment, for {stone of te power to exchenge all Ut sure part of Une progute of Is 'own Tabour, which is aver sad above his own consumption, for such parts of the produce of other men's labour as he hor occnson Ur. ‘Tere are some sors of Industry. even ofthe lowest Kind, which can be cared on no where but otter, for example, {find employment and subeetane place. Aviloge i By ‘ren too narron a sphere fo him; even an oranary market town Scarce targe enaugh to aford him constant eccupaten, In te Tone houses and very smal wilages which are scattered about i 30 desert 3 country as the Highlands of Scotian, every farmer must be butshe, baker and brewar for Ms own fami In seh stuations we can searce expect to find even sith,» carpenter, or 2 mason, win lees than twenty res of acther ofthe same tase. "The seatored fares tt lve at eight or ten mes distance from the nearest of them, must lear to perform themselves a great numba of ite pleces of wok, {for which, Im more populous countries, they."moUld all in the assistance of hase workmen, County warkmen are almost. every here obige to apply themselves to al the diferent branches of Industry nat have se much afinty to one another 8s tobe employes about the same sort of materials. A eaunty carpenter deal in every Sort of work that Is made of wood! 9 county stn every sor of Work thats ade of iron. the former is not only a carpenter, but Joiner, 3 cabinet maker, and even a carver In Wo0d, as wel 3s 9 Uwheetaright, a leughoright, 2” cart and woogon maker. The [rmploymenisof te later are sil more various ti imposible there Should be such 9 tage 05 even that ofa nar In the remote and inland parts ofthe Highlands of Seatond. Such 9 workman atthe rte ‘of 2 thousand nals 8 dy, and three hundred working days in the year Intp:iww.econli.org/ibrary/Smith/smWNI tml 1322011“Smith: Wealth of Nations, Book I, Chapters |-4 Library of Eeonomics and Liherty Page 18 of 24 til make three hundred thousand nals Inthe year. But m such 2 tne days work inte year. reat enuconmuntal delermmnse ? [Groad-wneeled waggon, attended by two men, and dann by echt ores, in abet sm weeks time corres ond brings bck Between {Condon and Eanburgh near four ton weight of goods. In about te ‘Same Ume a sp navigated by sx or elght men, and saling between {he ports of Undon and Lath, frequendy caries and bigs back two [hundred ton waght of goods Sin or eight man, therefore, by the help. ‘ef water-cariae, con cary bring Bac nthe same Sethe same ‘Suanty of gcods bebreen London and Edinburg es ity road Steted waguins, attended by 8 hundred men, ané dain By four hundred horses." Upon two hundred tons” af good, therefore, ‘cred by the cheapest and-criege For London to Eanburgh, there ‘rust be charged the maintenance of hundred men forbes Weak, ‘2nd baw" the maintenance, ond, wht is erly eq! to He. ‘maintenance the wear and tear of four hundred hors a well a OF ‘ty great wapgons. whereas, upon the same quanthy of goods ‘Cama by water there is to be charged ony the mamtenance ofS OF ‘Sight men, ard'the wear and tear of 2 ship of two hundred tons Barhen, together withthe value ofthe superior nek or the derenes| fof the insurence between land and water-cariage. Were Bre no ther communication between these two slates, therefore, but BY rd-eorioge, no goods could be transparted from tre one to the ‘ther, except such whose pice was very considerable i peoportion to {her welat, (ey could cary on but smal par of tat commerce ‘which present subsists" between ther, and consequent could ‘ive but 8 sral part of that encouragement which they at present ‘mutually aford ta each others industry. There could te ele or no commerce of ny kind between the stant parts of te word. What ‘Goods could bro the expence of land-carfage between Landon and Caiowus?™" Gri there were"® any 40 oreious 96 be able to ‘Seppore the erpance, wen hat safely couls they te transported "hrough the eto of so many barbarous naions? These wo ces, Fromaver, at prsent cary on avery considerable commerce with each ‘ther and by mutualyaforing © market, give a good deal of ‘Srcouragemen: teach others industry See such therefore ae the advantages of watersaiage, it ‘aural thatthe improvements of ort ana industry shuld be made ‘there ths coneniency spans the whole word for 8 market to te [roduc of evay sor of labour, and tat they should alvays be much ‘tern extending themeies int te inland pars of he country. The frland pars ofthe counzy can fer along time have no other market for the greter part of their goods, but the country whch les round ‘about em, and separates Oem fom the seacoast, and the Qreak 'Savgable river. The exten of their mares, therefore, rust for along ‘Ume bein prosorton to the riches and populousness of that county, ‘and consequery tele improvement must alvoys be posterior to the improvement of tat couny. In aur Nor American eslonies the Blantatons have constantly folowed err the seacoast or the banks ‘oF the. navigble rivers, and hove scarce any whee extended ‘thamselves tomy considerable stance from bot, “The nators tht, according to the best authentates history, ‘op:/vww-econlib.orgibrary’SmithismWN, hunt 13/122011‘Smith: Wealth of Nations, Book I, Chapters 1-4 Library of Economics and Liberty Page 16 of 23» septa ee tet verte tat a dhe cad Weta Se Ta ico be tones i a ea ee ne aa a eee er evil! except such 06" are caused by he wind only," mas, by the slo ato a ew te ie Sc he pointy a ts naghig shares xen frre itt” Seino rowan ofthe wor when, fn tae rrace a he sine ‘compass, men were afraid to quit the view of the coast, and from the lrapertection ofthe at of ship-bulding, to abandon themasives tothe boisterous waves of the ocean. To pass beyond the plas of Heres, {hat is, to sal out of the Streights of Gitar, was, inthe orient ‘wor, long considered as 2 most wonderful and dangeraue explo of favigatan. It nes late Before even the Phencans and Carthaginians the rest slful navigators and ship-buldes of those old mes, [tempted ond they ere fora ong tme the only nations ta de (fall the countrias on the coast of the Messtrranean seo, Egypt seems ‘to have een the frat in. which eter arcane oF ‘manufsctires were cuthated and improved to any ‘considerabie ogres. Upper Eoypt extends sel nowhere above 2 few miles rom the We and in Lawer Egypt that great ver beaks Half into many ‘ferent eanai,"®' whieh, withthe asistane of Ile a7 seem to have sforded & communication by wate-carcage, not only between ail the great towns, but between oll the considerable llages, and {evento many farmehoures in the county; near inthe same manner 835 the Rhine and the maese don Holand ot present. The extent and {zsiness of this inland navigation was probably one of the prnepa ‘Causes ofthe early improvement of Eayee ‘The improvements in agriculture and manufactures seem likewise to have boon of very great anlguty in the provinces of Sengal nthe East Incles, and in some ofthe eastern provinces ef china; toh the great entrtof ths anouty ts not authenisted by any histones ot nase authonty we, in this pert of the wong, are wall assured. tn Bengal the Ganges sna several aver gretrvers form 9 great number of navgablecarais™ in the same manner as the Nie does in Egypt. In the Eastern provinces of China to, several great rivers form, by thal afferent branches, » mulsude of canals, and by communeating with one another sforé an Inland navigation much more extensive than that ether of the Nile or the Gonges, or pemapa than beth of {them put tgether, Ie remarkable that nether the aie Eyptons, nor the Indians, nor the Chinese, encourage foreign commerce, ut Seem all to have devved their great navigation. A the inland ports of fea, and all that part of Asa which Hes ‘any conscerable may north of the Euxine and Caspian 2ea8) the lantlentSoytia, the modern Tartary and Siberia, seam inal ages of {he world to have been in the same barbarous and uncutzed sate \ihich we find them at present. The se of Tortary iste frexen ocean \ihih sdmts of no navigation, and ough some ofthe arestert vers Inthe word run through that courry.~> they ore at too pret» stance fram one another to carry commstee and communcacon ieee ptnough tne greater pare of there aren A r= i iic “and "aviatic seas in Europe, ti oy seo ceeeete Stata frat = st ene we vhich eny nation can Perron 7 means of & river which Ihup. fiw cvoulib.onglibrary’Smitvsem WNL hum 1322011"Smith: Wealth of Nations, Eook I, Chapters 1-4 | Library of Economics and Liberty Page 17 of 23. ot break ise into any great number of branches or canals, and ‘uch rns into arate troy etore reaches the sea, can ever Bevery consicerable; because Is always inte poner of He nations labo possess tat other terry to abstuce the. communicauon between the ypper country and te sea, The navigation ofthe Danube IS of vor Ite use to te diferent sates of Bavaro, Austria ond ungary in comparison of whet te woud be if-any'a of them possesied the whole offs course tl falls na the Black Sea." Notes for this chapter «8 [me suprionty of carriage by sea is nee consierabiy less than in Lecures,p. 172, buts sl probably exaggerates. W. Play, ed of Wath oF Nations, 1805, vol, . 28, sayS 0 waggon of he king described cous carry eight ten, bt ofcourse, some allwance must ‘be made for thity years of road improvement 59 [64.1 reads' whieh sa present carrie on] 51 (Bayar, op. op. 30 says tat equalising the out and home ‘voyages oe0de were cri rom London to Caleta by ea athe ‘Sama pre (125. per et.) a frm Landon to Leeds by land) 52 (ea. treads‘ was") 5) (Ea. 1 reads ‘carry on together a very considerabie commerce) 5 [This shows a cutout bee nthe wavepreducing capacity of the tides} [ony i racer tmes that ue word has become applicable “speialy to artical channels; see Murray, Oxford English Dictionary, avd 56 (Ed. 1 reads break themselves Into many canals 57 [The rea eieuty is that the mths ofthe rvers are inthe Artic Sea, So that they are separated. One ofthe objets ofthe Sterian ratnay isto connect them.) 58 [6a treads ony one’ hee.) [5 [The passge corresponding to this chapters comprise in one aregraph in Lectures. 372.) Endof Note man's wants Which the produce of Ps ‘supplies the far greater part of them by the produce of his ow abou, whch for such ports of the praduce of Tor Every mon thas Wes By 3 merchant andthe socety ‘un inbour ean supR ‘er ond ove hi ‘ther mens ‘changing ‘utp:www-econlib.org ibrary'Smith’smWNI.btml 1322011‘Smith: Wealth of Nations, Book I, Chapters 1-4 Library of Economics and Liberty Page 18 of 23 of, and the ater to purchase, apart of tis superbty. But es later Should chance to nave nothing tht the former stands in mead of no exchange canbe mage bebveen them. The butcher es more mest 15 shop than he himsa can consume, and the brewer and the sul each of ter be wing to purchase a prt af. But they ve aes, andthe butcher lead provided with the of bem thos industry, « certain quan he imagined few people Produce of teiinausey. ‘ought of and employed for Cate oe said to have been Wve fommon instrument of commerce, Sand, though they must have bo47/s most Inconvenient one, yin ok ity valued according tothe number ‘xchange for them, The armour sf ne oxen; But tat of Glavcvs cost 1a: species af sels in sme {at Newfoundland: toboceo in Tadia colonies; hides 0” eressea leater in some ots Lountres; ana\pnere is at this ya village Seotland where fis ht uncammon 1 Sm fle ar 2 warkinan to cart snolrment omy. Hata can {hing elng ifs penshsble thon they are) but they eon, heise, ‘nthe any fss, be aided ito any numb of parts, 3F by Reon ‘hose pars an essiy be reunited again: 2 hualty when no other fs corres noses, ef en ay ar “The man who wanted t9 buy Sot, 12 example, and hed nothing ut eae to give exchange fori, mu Rave been obiged ple te quantity, the vale, to wt of two or vee oxen, oF of two ee sheep. Ion the coniary, intend of sheep or oxen, Ne haa tals 10 give In ‘exchange for, he could easly" proportion the andy the mal tothe ocecee quantity ofthe comes whlch Me hod immediate cecasion fo Diterent metals have been made Use of by diferent nation for this purpose Ion was the common instrament of commerce meng the antlent Spartans: copper among the ant Romans; an 900 ard ver among ll ich ang commerca! nations ‘Tose metals seem originally to have been made use of for this purpose in rade brs, mihout any stamp or conage. Thus we ae tld hp:/worw.econlib.orgilibrary/Smith/smWNI. htm 13122011