>vf

^ibrarp,
IN

THE CUSTODY OF THE BOSTON PUBLIC LIBRARY.

SHELF N°

ADAMS
N(.\

AN
I

N

CL U
INTO THE

I

R

Y

Nature

and
OF THE

Caufes

WEALTH
By

OF

NATIONS.
LL.D.
and
F. R. S.

ADAM
IN

SMITH,

Formerly ProfefTor of Moral Philofophy in the Univerfity of

Glasgow.

TWO VOLUMES,
V O
L.
I^

THE SECOND EDITION.

LONDON:
PRINTED FOR W. STRAHAN; AND T. CADELL, IN THE STRAND.
MDCCLXXVIII.

CONTENTS
O
F

TH

E

FIRST VOLUME.
Introduction and Plan of the

Work
I.

—*

Page

i

BOOK
Of
the Caufes of

Improvement
Produce

in the produdlive

Powers of Labour, and of the Order according to which
its
is

naturally diftributed

among

the different

Ranks of the People

5

C Of
the Divl/ion of Labour

H A

P.

I.


II.

ibid.

CHAP.
Of the

Principle ivhith gives occafion to the divifton of Labour

16

CHAP.
That the Divifion of Labour
Market
is

IV.

limited by the Extent


A
2

of the
21

CONTENTS.
CHAP.
Of the
Origin and Ufe of Money

IV.


V.

Page 27

CHAP.
Of
the
real

Price in

and nominal Price of Commodities, Labour, and their Price in Money

or of their

35

C
Of

H A

P.

VL
<

the component Parts of the Price of Commodities

56

CHAP.
Of

vir.

the natural and market Price of Commodities




of Labour

66

CHAP.
Of the Wages
of Labour

viir.


CHAP.
IX.

•—

76

Of

the Profits of Stock


P.

108

C
Of Wages and
and Stock
Profit in

HA

X.

the different Ejnployments

I2i

Part

ift.

Inequality in
different

Wages and

Profit arifing

from the

Nature of the

Employments of both

i s2

Part

2d.

Inequalities occaftoncd by the Policy of

Europe

147

Of

the

Rent of Land

CHAP. XI. — —

179

CONTENTS.
Part
Rent
ift.

Of

the Produce of

^

_

Land

'voh'ich

always

affords

_ —

_
does^

Page 182

Part

2(1.

Of the

Produce of Land zvhich fometmes

and
202

fonietimes does not, afford

Rent

Part

5d.

Of

the Variations in the Proportion

betiveen the

refpt^ive Values of that
affords Rent,

Sort

of Produce ivhich always
does^

and of that ivhich fometimes

andfometimes

does not afford Rent


lajl


Centuries.

2ig

Digrefjion concerning the Variations in the Value of Silver du-

ring the Courfe of the Four
Firji Period

—-


Second Period

Third Period
Variations
in the

— —

— — —
— —

222

240
242

Proportion betiveen the refpeSlive Values of

Gold and Silver


.—

264

Grounds of the Stfpicion that the Value of Silver fill continues
to decreafe

270

Different EffeSls of the Progrefs of Improvement upon the real

Price of three
Firjl Sort

different Sorts

of rude Produce

Second Sort

Third Sort

— — —

— —
-

— — —

271

272

274 286
the

Conclufon of the Digreffton concerning the Variations
Value of Silver

in


— —

29^

Effe^s of the Progrefs of Improvement upon the real Price of

Manufadures

Conchfion of the Chapter

— —

— —

306
312

CONTENTS,
B O O
Of
the

K

II.

Nature,

Accumulation,
Stock.

and

Employment

of

Introduction

Of

the D'wifion of Stock

— CHAP. — CHAP.


I.

Page 327


II.

~~

*

330

Of Money
of the
Capital

conftdered as a particular

Branch of the general Stock

Society^ or

of the Expence of inaintaming the National

— CHAP.

_

2^.1

III.

Of the

Accumidatiott of capital, or of produ^ive and unproduc-

tive Labour

400

CHAP.
Of
Stock lent at hiterefl

IV.


CHAP.
V.

— —

— —

426

Of

the different Employments of Capitals

437

to the Hotv the Commerce of the Towns contributed — Improvement — — 494 .CONTENTS. Progrefs of Opulence in different Nations. of Agriculture in the antient State of Europe after the Fall of the Roman Empire — 466 CHAP. -r- — Page 459 CHAP. Of the the III. BOOK Of the different III. Of the Dfcoiiragement II. Of the natural Progrefs of Opulence I. CHAP. after the Fall of Roman Empire — — — 480 CHAP. Rife and Progrefs of Cities and Toivns. of the Country IV.

I. Price 6 s. A DISSERTATION on the Origin of Language. lo'^d. and afterwards of themfelves..i-> II. Page 241.TuhliJJjed by the fame Author. of their Neighbours. 413. TO WHICH IS ADDEP. for millions. 1. . Vol. THE THEORY OF MORAL SENTIMENTS: An Essay towards an Analyfis of Men naturally judge concerning the firft the Principles by which Conduct and CharaQer. 13. ior thirty. • line 17. 6d. read tiventy. The Fourth Edition. Vo. read millions *. for zs. ERRATA. read 3^. 520.

as this is purchafed thofe •with bears a greater or fmaller proportion to the it. muft in every nation be regulated by two firft. and which confift always either in the immediate produce of that labour. or purciiafed with that produce in. this proportion .AN I N Q^ U AND I R Y INTO THE NATURE CAUSES OF THE WEALTH . THE of ris annual labour of" every nation it is the fund which ori-» ginally fupplies life with all the necefiaries and conveniencies which it annually confumes. produce. different circumftances I. But :^'GL. number of who with are to con fume all the nation will be better or worfe fupplied it the neceifaries and conveniencies for which has occafion. therefore. or what . dexterity and judgment with B . OF NATIONS. INTRODUCTION AND PLAN OF THE WORK. According it. what from other nations. by the fkill.

and thofe afBided or to be with lingering difeafes. or. for himfelf. or extent of territory of its any particular nation. and fometimes of abandoning their infants. on the contrary. abundance or fcantinefs of annual fupply muft. is more or lefs employed in ufeful labour. think themfelves reduced. the loweft and pooreft order. if he frugal and may life enjoy a greater Ihare of the neceffaries and con- veniencies of than it is poffible for any favage to acquire. or too young. to perifh with. at leaft. and. climate. Such nations. however. fecondly. according to which its produce is naturally diftributed . and endeavours to provide. hunger. fifhing. are miferably poor. is fociety is fo great.. devoured by wild beafls. depend upon thofe two circumflances. yet the produce of the whole labour of the often abundantly fupplied.THE NATURE AND CAUSES OF Introduaion. from mere want. frequently of a hundred times more labour than the greater part of thofe who work . though a great number of people do not labour at all. their old people. in the produdive powers of labour. that all are and a workman. or fuch of his family or. even of induftrious. they are frequently reduced. every work. individual Among the who is able favage nations of hunters and to fifliers. fcantinefs The abundance or of this fupply too feems to de- pend more upon the former of thofe two circumflances than upon the latter. old. as well as he can» the necelTariea and conveniencies of tribe as are either too life. The caufes of this improvement. to the neceflity fometimes of diredly deftroying. in that- particular fituation. by the are proportion between the ful labour. Among civilized and thriving nations. and the order. many of whom confume the produce of ten times. or too infirm to go a fo hunting and that. Whatever be the the foil. number of who fo employed in ufe- and that of thofe who are not employed. ^Jt^ whlch Its labour is generally applied thofe .

treats of the nature of capital flock. therefore. The number of employed in it is ufeful and productive labourers. is every fl:ock where in proportion to the fetting quantity of capital which in is them to work. Since the downfal of the Roman arts. upon the proportion between the number of who are annually employed in ufeful labour. The circumftances which feem to have introduced a«d eftablifhed this policy are explained in the Third Book. during the con- tinuance of that thofe flate. and that of thofe who are not fo it employed. •diftrlbuted 5 l"fc^"^'""in the fociety. have followed very different it . Scarce any nation has and impartially with every fort of induftry. the induftry of the country. man- ner in which tities it is gradually accumulated. firft introduced by the private interefts and prejudices of particular orders of men.THE WEALTH OF NATIONS. will hereafter appear. according to the different ways which it is employed. and to the particular way which fo employed. in tolerably well advanced as to fkill. be the adual is Whatever or fcantinefs of flate of the fkill. to manufac- and commerce. The policy of fome nations has given exti'aordinary encouragement . plans in the general conduct or diredlion of and thofe plans its have not all been equally favourable to the greatnefs of produce. Though thofe different plans were. dexterity. among the different ranks and conditions of men make the fubjed of the Firll Book of this Inquiry. perhaps. and of the different quanit of labour which in puts into motion. dexterity. The Second of the Book. the induftry of towns than to agriculture. more favourable . with- B 2 out . to the induflry of the country that of others to the induftry dealt equally of towns. and judg- ment with which labour its applied in any nation. the abundance annual fupply muft depend. and judg- the application of labour. empire* the policy of Europe has been tures. Nations ment.

have endeavoured to {how . of. To explain in what has confifted the revenue of the great bbdy of the people. but upon the opinions of men of learnI upon the puhlic condufb of princes and fovereign Rates. thofe different and dif- theories. treats of the revenue of the fovereign. or what has been the nature of thofe funds. The what . I In this Book ought ciety. thirdly and laflly. Book .. what are the be differentJ methods in which the whole foctety may made to contribute towards defraying the expences incumbeat on the whole fociety. and the principal effects. E N A T U R E A N D C A U S ^ut any regard to. oc of fome particular members of fecondly. and what are the principal advantages and inconveniencies of each of thofe methods and. what have been the of thofe debts upon the real wealth. tindlly as I can. what are the rea-r : fons and caufes to which have induced almoft this revenue. as fully have endeavoured. are the neceffary. to explain. of political ceconomy is of which fome magnify the importance of that induftry which that carried on in towns. have fupplied their annual confumption. which. ex- pences of the fovereign. their confequences general welfare of the fociety different theories yet they have given occafion to very . in different ages is and nations. firft. or commonwealth. others of which is carried on in the country.•4 Introduftion. not only ing. in the fourth Book. Thofe theories have had a confiderable influence. the foci etyi annual produce of the land and labour of the BOOK . by fome particular part only. Fifth and lafl the objed of thefe Four firft Books. or all modern governments and mortgage fome part of effedls to contrail debts. or commonwealth to be defrayed which of thofe expences fo- by the general contribution of the whole that of it : and which of them. which they have produced in different ages and nations. T H. E S O F upon th*" or forefight .

by confidering in what comones^ othersare. and placed at onceimder the view of the fpec— In thofe great manufadluree.THE WE'ALTH OF NATIONS. the whole number of workmen in every different xnufl neceffarily be fmall . THE The fociety. branch of the work can often be collededir fame workhoufe.and employed into the tator.. C H A P. in the general bufinefs o€' will it be mare eafily underflood. People. boar. feem to have been the effeds of the divifioa of labour. and the greater part of the fkiU. people.: every different branch of the work employs io number cf workmen^. greateft improvement any where in the produdlve powers of La- BOOK c H a P. BOOK of tlie L to Caufes of Improvement in the producflive Powers of tlie Labour. on the contrary. or applied. which are? deftined to fupply the great wants of the great body of the great a people. and of Order according which its Pro- duce of is naturally didributcd among the different Ranks the. and judganent with which it is directed. dexterity. but in thofe trifling mar^ufadlures which deftined to fupply the fmall wants of but a fmall number of . . i: Of' the Dhnjlvn of Labour. tliofe. It is monly fuppofed not perhaps that be carried furtheft in fome very really is carried further in trifling them than in of more importance':. efFefts of the divifion- of labour. manner operates in to it fome particular manufactures.

when they make among them about twelve . than in thofe of a more nature. from a very trifling manufacnot edu- but one in which the divifion of labour has been very often of. than thofe employed in one fingle branch. which in fome manu- performed by diftin£l hands. and certainly could not But in the way in which this bufinefs is now carried work is on. and where fome of them confequently performed two or three diftindt operations. make into a twenty. To ture . fore but indifferently they could. a workman cated to this buHnefs (which the divifion of labour has rendered a dlftind trade). itfelf whiten the pins is another . not only the whole a peculiar trade. to put on. perhaps. the divifion not near fo obvious. houfe. and has accordirrgly been much lefs obferved. Though trifling in fuch manufadures. But though they were very poor. exerted themfelves. it is even a trade by to put them into the paper is. with his utmofl. induftry. though in others the fame man fmall will fometimes perform two or three of them. the greater work may really be divided into a much number of is parts. at one time. of which the greater part are likewife it» peculiar trades. and thereaccommodated with the neceffary machinery. make one pin in a day. could fcarce. and the important bufinefs of making a pin vided into about eighteen factories are all difl:in£t in this manner. another ftraights a fifth grinds it a third cuts it. this I -have feen a manufadory of kind where ten men only were employed. that it is impoflible to colled them all into the fame work- We can feldom fee more. take an example. therefore. taken notice the trade of the pin-maker . at the top for re- ceiving the head to it make is the head requires two or three diflind to operations. nor acquainted with the ufe of the machinery (to the employed in it invention of which the fame divifion of labour has probably given occafion). a peculiar bufihefs. but it is divided number of branches. therefore.THE NATURE AND CAUSES OF workmen. it. One man draws a fourth points . di- operations. out the wire.

is The laboui. There are fize. in confequence of a proper divifion and combination of their. in to what they are in this very trifling one •. in an improved one. being generally that of feveral. make among them upwards of forty. a proportionable increafe of the labour. But if they had all wrought feparately and independently. in a pound upwards of four thoufand pins of a middling fore. and the wool. could Thofe ten perfons. How many employed in each branch of the linen and v/oollen manufadures. In every other art and manufacture. twelve pounds of pins in a day. many of them. to the different trades are bleachers .eight thoufand pins Each perfon. made twenty. the labour can neither be fo divided. feems to have taken place. might be confidered of them have is. perhaps not one pin in a day. however. in confequence of This feparation too is generally carried furtheft thofe countries provement . that certainly. in a rude ftate of fociety. the effeds of the divifion of labour are fimilar though. the farmer is generally nothing but a farmer manufadurer. therefore. nothing but a manufadurer. The di- can be introduced. they certainly could not each eight thoufand pins. fo far as it much fubof operation. perhaps not the four thoufand eight hundredth part of what they are at prefent capable of per- forming. nor reduced to fo great a firaplicity vifion of labour. which enjoy the higheft degree of induffry aad imwhat is the work of one man. advantage. making a tenth part of fortyas making four thoufand eight hundred pins in a day. different operations. from the growers of the flax. occafions in every art. there- in a day.THE WEALTH OF NATIONS. a great always divided among number of hands. not the two hundred and fortieth.too is which almoft' neceffary to produce any one complete manufadure. and without any of them having been educated to this peculiar bufmefs. The feparation of different produdive powers of trades and employments from this in- one another. imthe proved fociety. In every .

produce more propor- the extent and natural fertility of the ground. does not admit of fo -many fubdivifions of labour. as it in manufadures. the labour of the rich country of the poor . but the ploughman. at leaft. or to the dyers of the cloth The nature of agriculture. ncr of fo complete a feparation of one •bufinefs from another. of the carpenter fpinner is It is impoflible to feparate r£o entirely. will not always. the harrower. The years corn of France is. fully as good. . in the fame degree of goodnefs. notvvithftanding the fuperior opulence and improvement of the latter country. The corn of the rich country.be conftantly employfo ^ed in any one of them. Their lands are in general and having more in «bour and expence beftowed tion to upon them.. generally excel -Agriculture as well as in all their neighbours in manufadures . The mofl opulent nations. indeed. are often the fame.and entire a feparation of is the different branches of labour the reafon in emnot ployed in agriculture. come cheaper market than that of the poor. as cheap as that of France. it is never fo much more produdive.and the reaper of the corn.weaver. The occafions for thofe different forts of labour returning with the different feafons of • the year. thereis not always fore. commonly to is much more produdtive than that or. and in moil . is The corn of Poland. but they are commonly morc la- diflinguifhed by their fuperiority in the latter than in the former* better cultivated. as manufactures. is as the trade commonly feparated diftincft from that of the ffmith.always keep pace with their improvement in manufadures. This impofTibility of making all complete . -racnt of tl^e productive perhaps why the improve- powers of labour this art. is But this fuperiority of produce feldom much more than in proportion to the fuperiority of labour and expence. does . it is impolTible that one man fhould.8 TH :4jleachers E NAT U RiE A^^N D C A 17 S ES 'OF and dreffers BOOK and finoothcrs of the ! linen. the bufinefs of the grazier from that of the corn-farmer. indeed. in the corn provinces. the fower of the feed. In agriculture. i-n the fan>e degree of goodnefs. The almoft always a perfon from the -.

and man to do the work of many. fituation of the rich country. years nearly in about the fame price with the corn of England.THE WEALTH OF NATIONS. capable of performing. But the hardware and the coarfe woollens of England are beyond rifon fuperior to thofe all compa- of France. firft. perhaps in- England. the improvement of the dexterity of the v?orkman neceflTarily increafes the quantity of the work he can perform. and by making operation the fole em- ployment of his life. under the prefent high duties upon the importation of raw fillc. vation. to the faving of the time which is commonly loft in pafling from one fpeciesof work to another. to the invention of a great number of machines which enable one facilitate and abridge labour.of . ferior to opulence and improvement. fecondly. can pretend to no fuch competition in manufadures and at leaft if thofe manufadtures fuit the foil. by reducing every man's bufinefs to fome one fmiple operation. fadtures of In Poland there are be fcarce any manu- any kind. But though its the poor country. can. are better cultivated than thofe of France. climate. becaufe the at leaft manufadure. The filks of France are better filk and cheaper than thofe of England. without which no country can well This great increafe of the quantity of work. I. and the corn-lands of France are faid to be much better cultivated than thofe of Poland. and much cheaper too in the fame faid to degree of goodnefs. neceflarily increafes very much the dexterity Vol. C . and laftly. a few of thofe coarfer houfhold manufadtures fubfift. which. excepted. France is though. and this the divifion of labour. First. the fame to number of people are is owing three different circumftances to the increafe of dexterity in every particular workman. in confe- quence of the divifion of labour. The corn-lands of England. corn. in notwithftanding the inferiority of culti- fome meafure. does not fo well fuit the climate of England as that of France. it rival the rich in the cheapnefs and its goodnefs of its . however.

and the dexterity life it of the perfon. occafion. muft good deal of time to in pafling from his loom to the field. could make. Secondly. who. I am affured. heats or mends the as there is the iron. and thofe too very bad ones. though accuftomed to handle the hammer. When the two trades can be carried . fire fame perfon blows the bellows. OF nails. and from the his loom. never exer- any other trade but that of making and who. will fcarce. exceeds the what human hand by thofe who had never feen them. be fup- pofed capable of acquiring. are of them much more fimple. of whofe them. is and forges every part of the obliged to change his tools. nailer. is much greater than we fliould at firft view be apt to imagine it. is by no means one of the ftirs The making of a The fimpleft operations. nail: In forging the head too he operations into is The different which the making of a all pin. that [is carried on in a different place. It is impoffible to pafs very quickly from one kind of work to another. however.10 THENATURE AND CAUSES of the workman. if A common fmith. I feen feveral boys under twenty years of age who had nails. be able to make above two or three hundred nails in a day. has never been ufed to make upon fome particular occafion he is obliged to attempt it. in a day. when they exerted themfelves. the advantage which is gained by faving the time commonly loft in paffmg from one fort of work to another. but whofe fole or principal bufmefs has not can feldom with his utmoft diligence . is has been the fole bufinefs to perform ufually much could. greater. lofe a A field country weaver. make have more than cifed eight hundred or a thoufand nails in a day. or of a metal button. and with quite differ- ent tools. who cultivates a fmall farm. The rapidity with which fome of the operations of thofe manufaftures are performed. upwards of nails two thoufand three hundred nail. A fmith who has been accuf- tomed to make been that of a nails. fubdivided. each of them.

n Chap. and incapable of any vigorous application even on Independent. however. this caufe alone muft always reduce capable of perform- confiderably the quantity of ing. the this lofs of time is no doubt much It is even in cafe. . unneceiTary to give any example. every body muft be fenfible how much only ob- facilitated It is and abridged by the application of proper maI fhall chinery. very confiderable. the invention of all thofe machines by which to labour is fo much facilitated and abridged. he firft begins the new work he feldom very keen and hearty to it. the whole of every man's attention comes naturally to be directed towards fome one very fimple fore. commonly is faunters a little in turning his hand from one of employment go to another.THE WEALTH OF NATIONS. therefore. A man fort on in the fame workhoufe. that ferve. than when it is diffipated among things. that objedl. trifle^ as they fay. to apply his hand in twenty different . plication. does not and for fome time he rather than applies to good carelefs purpofe. his mind. ways almoft every day of ful his life renders him almoft always floth- and lazy. The habit of is fauntering and of indolent or is ap- which naturally. feems of labour. wherever the nature C 2. It is naturally to be expeded. there- fome one or other of thofe who are employed in each particular branch of labour ftiould foon find out eafier and readier methods of performing their own particular work. When . have been originally owing to the divifion Men is are much more obje<ft> likely to difcover eafier and readier methods of attaining any when the whole attention of their minds diredled towards that a great variety of fingle objedl. the moft prefling occafions. and labour is laftly. of his de- ficiency in point of dexterity. rather neceflarily acquired by every country workman who and obliged to change his work and his tools every half hour. work which he is Thirdly. But in confequence of the divifion of labour. rled iefs. therefore.

towards finding out eafier and it. being each of them employed naturally turned their thoughts readier Ibme very fimple operation. upon that account. One of thofe boys. is. valve at would open and fhut without his afliftance. are often capable of combining together the powers of the moft diftant and fociety. diffimilar objefts. muft frequently have quicken their been fliewn very pretty machines. not to do any thing. when to make them became the bufinefs of a peculiar trade. according as the pifton either afcended or defcended. of the makers of the machines. which were the inventions of fuch workmen. All the improvements in machinery. methods of performing to vifit Whoever has been much accuftomed fuch manufadtures. in order to facilitate and own particular part of the work. who play with his companions. In the firft fire-engines. j^ . moft were originally the inventions of in common workmen. A great part of the is machines made ufe of in thofe manufadures in which labour fubdivided. and fome are called by that of thofe who it philofophers or men of fpeculation. like every other employment. who. however. to fave hL» was in this manner the difcovery of a boy who wanted ©wn labour. was firft invented. have by no means been the inventions of thofe who had occafion to ufe the Many improvements have been made by the ingenuity machines. a boy was conftantly employed to open and fhut alternately the communiloved to cation between the boiler and the cylinder. the handle of the obferved that. and leave him liberty to divert himfelf with his play-fellows. by tying a ftring from to valve which opened this the communication another part of the machine. whofe trade . has been One of this the greateft improvements that fince it made upon machine. In the progrefs of philofophy or fpeculation becomes. but to obferve every thing and who.12 THE NATUREANDCAUSES OF nature of it admits of fuch improvement.

affords occupation to a peculiar tribe or clafs of pliilofophers this and fubdivifion of employment in philofophy.THE WEALTH OF NATIONS. Every workman of beyond what he has a great quantity of his himfelf has occafion for in the fame fituation. and the quantity of fcience increafed by it. the forter of the wool. all the different arts. It '^is the great multiplication of the in confequence of produdions of labour. the divifion of which which occafions in a well governed fociety that univerfal opulence extends itfelf to the lowefl ranks of the people. through all the different ranks of the Observe perceive the accommodation of the mofl common artificer or day-labourer in a civilized that and thriving country. He fupplies them abundantly with what they have accommodate him as and they and a amply with what he has itfelf occafion for. . general plenty difFufes fociety. day-labourer. Like every other employment is fub- divided into a great number of different branches. of his own goods for a great quantity. has all though but a fmall been employed in procuring him computation. is Each indivi- dual becomes more expert in his is own more work confiderably done upon the whole. The fhepherd. and you will part. ployment. to the fame thing. it chap. improves dexterity and faves time. of citizens. each of which . peculiar branch. accommodation exceeds example. for the coarfe and rough may appear. as well as in every other bufinefs. what comes occafion for. for the price of a great quantity of theirs. own work to difpofe and every other workman being exadly he is enabled to exchange a great quantity or. the principal or clafs fole trade 13 and occupation of a particular too. is the produce of the joint labour of a great multitude of workmen. the . this the number of people of whofe induflry a part. which covers as it The as woollen coat.

fail-makers. how many rope-makers. on. the fhears with which the fhepherd clips the wool. the upon which he ferves up and divides different hands employed in preparing his bread and . the earthen or pewter plates his vidiials. muft have been employed in order to bring together the different drugs made ufe of by the dyer. which often come from the remoteft corners of the world in order to produce ! What a variety of labour too is neceffary the tools of the meaneft of thofe workmen let To fay nothing of fuch complicated machines as the fhip of the failor. failors. the mill of the fuller. to be made ufe of the in the fmelting brick-layer. the fplnner. the builder of the furnace for fmeltthe burner of the charcoal houfe. and the kitchen grate at which he prepares his viduals. the brick-maker. in the houftiold his fkin. join their the dyer. the fuller.•14 THE NATURE AND CAUSES OF the wool-comber or carder. muft have been employed in tranfporting the materials from fome of thofe workmen ! of the country cular. dug from the bowels of the earth. produdlion. of his kitchen. the ent arts in order to fmith. the drefler. the mill- wright. or even the loom of the weaver. who often live in a very diftant part how much commerce and navigation in partiothers fhip-builders. and brought to him perhaps by a long fea and a long land carriage. the forger. muft of them join their differto produce them. with in many others. is us confider only what a variety of labour requifite in order to form that very fimple machine. How many to merchants and befides. muft all different arts order to complete even this homely carriers. all the different parts of his drefs and linen fhirt the coarfe which he wears next lies the fhoes which cover his feet. the bed which he the different parts which compofe it. the ing the ore. the weaver. the knives and forks. the fcribbler. all fame manner. furniture. the feller of the timber. workmen who attend all the furnace. all all the other utenfils the furniture of his table. The miner. Were we examine. the coals which he makes ufe of for that purpofe.

THE WEALTH OF NATIONS. . is in producing thofc different conveniencies. what we very is falfely ner in which he commonly accommodated. the glafs 15 window which lets in the heat and the light. mufl no doubt appear extremely fimple and eafy true perhaps that the accommodation of an accommodation it and yet may be European prince does not always as the fo much exceed that of an induflrious and frugal peafant. all and keeps out the wind and the rain. his . things. we alTiflance be fenfible that without the and co-operation of many thoufands. Compared. even according to. all thefe and confider what a variety fhall of labour employed about each of them. we examine. the eafy and fimple man- meaneft perfon in a civilized country could not be provided. latter accommodation of the exceeds that of many an African king. and his beer. together with the tools of ferent if all the dif- workmen employed I fay. indeed. with the knowledge and art requlfite for preparing that beautiful and happy invention. the very imagine. the abfolute mailer of the lives and liberties of ten thoufand . with- out which thefe northern parts of the world could fcarce have afforded a very comfortable habitation.naked favages. with the more extravagant luxury of the great.

or endeavours to intercept her when is his companion turns her towards himfelf. the propenfity to truck. of which no further account can be given . as feems more probable. and ex- change one thing for another. not the of any contraft. that yours . ivhich gives Occafion to the Divifion of Labour.and a fpaniel endeavours by a A puppy thoufand attradlions . T HIS divifion of labour. barter. It is which it gives the neceflary. fame objed fair at that Nobody ever faw a dog make a and deliberate dog. It is common to all men.i6 THE NATURE AND CAUSES OF C Of the Principle H A P. have fometimes the appearance of acfling in fome fort of concert. is from which derived. though very flow and gradual con- fequence of a certain propenfity in human nature which has in view no fuch extenfive utility . not originally the effect many advantages are of any human wifdom. which feem to know neither this nor any other fpecies of contradts. this that. I am willing to give this for When an annimal wants to obtain fomething either of a it man or of another animal. exchange of one bone for another with another geftures and natural ever faw one animal by its another. Each turns her towards his companion. be the neceflary confequence it of the faculties of reafon and fpeech. fo v?hich forefees and intends that general opulence to occafion. but to gain the favour of fawns upon its dam. Whether in this propenfity be one of thofe original principle^ or human nature. Two greyhounds in running down the fame hare. and to be found in no other race of animals. however.. but of the accithe dental concurrence of their paflTions in particular time. belongs not to our prefent fubjed to enquire. has no other means of perfuafion thofe whofe fervice it requires. eff^e£l This. II. is Nobody cries fignify to mine. it whether.

endeavours by every fervile and fawning attention to obtain their good will. the brewer. " mafter who is at C H A v^ p. offers to another a bargain that of any kind. it neither I. He will be more likely to prevail. Man fometimes ufes the fame — with his brethren. however. meaning of every fuch offer. and to when he has no other means of en- gaging them ad according to his inclinations. and it is in this manner that we obtain from one an- other the far greater part of thofe in need of. propofes to do Give is me the which I want and you fliall have this which you want. He and In civil- ized fociety he ftands at all times in need of the co-operation affiftance ficient to of great multitudes. attradions to engage the attention of its 17 dinner. or the baker. life is fcarce fuf- In almoft every is other race Is of animals each individual. it grown up But to maturhy. all But though this principle ultimately provides him with for. and is vain for him to exped that it from their benevolence only. entirely. does which he has occafion nor can provide him with them as he has life the necelTaries of Vol. indeed. D r occahon . not to their humanity but to their felf-love. fupplics him with the whole fund bf his fubfiftence. to do this upon every occafion. •' when arts it wants to be fed by him. and in its natural 'ftate has oc- cafion for the affiftance of no other living creature.THEWEALTHOFNATIONS. and never talk offices good We to them of our own Nobody but a beggar chufes to depend chiefly upon the benevolence of his fellow-dtiEven a beggar does not depend upon it zens. when intirely independent. neceffities but of their advantages. that we exped our dinner. Whoever this. has not time. while his whole gain the friendfhip of a few perfons. The charity of well-difpofed people. if it he can intereft their felf-love in his and fhew them is for their own favour advantage to do for him what he requires of them. but from 'their regard to their own intereft. It is which we ftand not from the benevolence of the butcher. addrefs ourfelves. man it has in almoft conftant occafion for the help of his brethren.

i8 THENATUTvEAND CAUSES occafion for them. by barter. reward him in the fame manner with at laft cattle and with venifon. therefore. In a originally gives occafion to the divifion of hunters or fhepherds a particular perfon makes bows and arrows. that we obtain part it from one another the greater of thofe mutual good this offices which we which tribe ftand in need of. and he finds he can in man- ner get more cattle and venifon. a fourth a tan- the principal part of the clothing all of favages. In the fame manner a third becomes a fmith or a ner or drefler of hides or flcins. With the money which one man which another bewhich fiiit gives him he The old cloaths ftows upon him he exchanges for other old cloaths him better. or for food. than if he himfelf went to the field to catch them. or for lodging. or lodging. with more readinefs and dexterity than any other. OF by treaty. as he has occafion. And his thus the certainty of being able to exchange that furplus part of the produce of his own labour. little be his chief bufinefs. fo is fame trucking difpofition of labour. As it is by treaty.'_ _. for example. purchafes food. and by purchafe. the making of bows and arrows grows of armourer. and and . or for money. encourages every to cultivate man to apply himfelf to a particular occupation. for fuch parts of the produce of other men's labour as he may have occafion for. cloaths. fupplied in the fame manner by barter. . and he becomes a Another excels in making the frames and covers of their is huts or moveable houfes. and become a of houfe-carpenter. BOOK 1^ The greater part of his occafional wants are as thofe of other people. brazier. He frequently exchanges them for at laft that cattle or for venifon this with his companions. From fort a regard to his own to intereft. He who till accuftomed to be of ufe in this way to his neighbours. which is over and above own confumption. and by purchafe. with which he can buy either food. he finds it his to intereft to dedicate himfelf entirely to this fort employment.

About that age or foon after. and parents nor play-fellows could perceive any remarkable difference. lefs than we to are aware of. OF NATIONS. barter. and existence. derive from much more remarkable nature a philofopher dillindiion of genius. feems to not fo much they from nature. and there could have been no fuch difference of employment as could alone give occafion to any great difference of talents. as from habit. fo it talents. appears to take place among half men. diftinguifli and the very different genius of different profeffions. is not upon many when much the difference the effeft of the divifion of labour. change. he 19 for talent or genius may poffefs chap. every man muft life have procured to himfelf every neceffary All muff have had the and conveniency of fame duties to which he wanted. between a philofopher and arife common ftreet porter. they come to be employed in very difference of talents till different occupations.THE WEALTH and bring to perfedlon whatever that particular fpecies of bufuiefs. The comes then to the vanity be taken notice of. is remarkable among men of this fame difpofition which renders that difference of animals acknowledged to be nature a all Many tribes of the fame fpecies. for example. As fo it is this difpofition which forms that difference of different profeffions. perform. The between the moft a diffimilar charaders. and the fame work to do. or eight When neither came into the world. occafions fo which appears men grown up caufe. ufeful. The much difference of natural talents in different men is. cuftom. willing to acknowledge difpofition to fcarce any refemand ex- But without the truck. in reality. than what. By is not in genius and difpofition D 2 . and widens by degrees. for the firft fix years of their their they were very much alike. and education. antecedent to cuftom and education. is at laft of the philofopher blance. as to maturity.

Thofe different tribes of animals. dilTimilar geniufes are of ufe one another the different produces of their refpedive talents. fpaniel. the mofl . fpecies. are is of fcarce any ufe to one another. as it were. barter and exchange. into a common flock. where every man may purchafe whatever part of the produce of other men's talents he has occafion for. talents. and independently. by the general difpofition to truck. however tho' all of the fame fpecies. leafl cannot be brought into a tribute to the better common and do not in the con- accommodation and conveniency of the obliged to fupport and defend itfelf. The ftrength of fwiftnefs the maftiff not. or a greyhound from a dog. and derives no fort of advantage from its of talents with which nature has diftinguifhed Among men.20 B o o K \^q\£ {*q THE NATURE AND CAUSES OF different from a flreet porter. or by the docility of the fhepherd's dog. to on the contrary. or this laft from a fhepherd's . Each animal riety is flill feparately that vafellows. want of the power or and exchange. for The efFeds of thofe different geniufes and difpofition to barter flock. as a maftifF is from a grey- hound. or by the fagacity of the fpaniel. fupported either by the of the greyhound. being brought. . in the leaft.

fo the extent of this divifion mufl always be limited by the extent of that power. the extent of the market. which Is over and above his own confumptlon. or a mafon. baker and brewer for his own family. even an ordinary market town conftant fcarce large enough to afford him occupation. even of the lowefl: kind. they would in the afliftance of thofe workmen. In fuch fituations we can within fcarce expedt to find lefs even a fmith. muft learn to perform themfelves a great number of little pieces of work. which can be for example. for which. • limited by the Extent of the Market. 21 CHAP. in other words. for want of the power to exchange all that furplus part of the produce of his own labour. The fcattered families that live at eight or ten miles diftance from the neareft of them. in call more populous countries. or. a carpenter. for fuch parts of the produce of other men's labour as he has occafion for.THE WEALTH OF NATIONS. place. A him can find employment and fubfiftence in no other is A village by much too narrow is a fphere for . than twenty miles of another of the fame trade. In the lone houfes and very fmall villages which are fcattered about in fo defart a country as the Highlands of Scotland. carried on no where but in a great town. AS it is the power of exchanging that gives occafion to the divifion of labour. That the Divl/ion of Laborer is III. by When the market is very fmall. Country workmen are almoft every where obliged to all apply themfelves to the different branches of induftry that have fo . no perfon can have any encouragement to dedicate himfelf entirely to one employment. every farmer mull be butcher. There are fome forts of induflry. porter.

and drawn Upon two hundred land-carriage from tons of goods. Such a workman at the rate of a thoufand nails a day. and between the ports of London and Leith. can Six or eight men. impoffible there fhould be fuch a trade as even that of a nailer in the remote and inland parts ' of the Highlands of Scotland. attended by a hundred men. A broad-wheeled waggon. but a joiner. a cabi- net-maker. as well as a wheel-wright. nails in the year. that induftry of every kind naturally begins to fubdivide and improve itfelf. and it is frequently not till a long time after that thofe improvements extend themfelves to the inland parts of the country. fo it is upon the and along the banks of navi- gable rivers. water-carriage a As by means of opened afford to every fort it. there muft be charged the . a plough-v/right. therefore. quently carries and brings back two hundred ton weight of goods. a country fmith in every fort of is work made The former not only a carpenter. In about the fame time a failing navigated by fix or eight fre- men. by the fame quantity of goods carry and bring back in the fame time the between London and Edinburgh as fifty broad-wheeled waggons. that is. attended by two horfes. carried by the chcapeft London to Edinburgh.22 THE NATURE AND CAUSES fo OB of work that that is is BOOK «i much afEnlty to one another as to be employed about the fame fort of materials. and even a carver in wood. and three hundred working days in the year. by four hundred horfes. more extenfive market i IS of induftry than what land-carriage alone can fea-coaft. of one day's work in the year. therefore. a cart and waggon maker. in about fix men and and drawn by eight brings back between weeks time carries London and Edinburgh fliip near four ton weight of goods. But in fuch a •will make three hundred thoufand fituation it would be impoifible to difpofe of one thoufand. It is The employments of the latter are ftill more various. A country carpenter deals : in every fort made of wood of iron. help of water-carriage.

confiderable in proportion they could carry on but a fmall part of that commerce which at prefent fubfifts between them. Were there no other communication between thofe two carriage. as places. two however. Since fuch. the as wear and waggons. and both the CHAP. therefore. there to be charged only the maintenance of fix or eight tear men. art natural that the improvements of and induftry ftiould be made where this conveniency opens the whole world for a market to the produce of every fort of labour. and the wear and of a fhip of two hundred tons burden. with what fafety could they be tranf- ported through the territories of fo many barbarous nations . it is therefore. . and by mutually affording a market. together with the value of the fuperior rifk. give a cities. little There could be of the or no commerce of any kind between the diftant parts world. and confequently could give but a fmall part of that encouragement which they at prefent mutually afford to each other's induftry. for a long time have The country can their no other market for the greater part of goods.3 maintenance. but by landto the no goods could be tranfported from the one other except fuch whofe price was very to their weight. or the difference of the infurance between land and water-carriage. firft are the advantages of water-carriage. tear of four hundred horfes well as of ufty great carried Whereas upon the fame quantity of goods is by water.THE WEALTH OF NATIONS. the maintenance of a hundred 2. and that they fhould always be much later in extending themfelves into the ininland parts of the land parts of the country. at prefent carry on a very confiderable good deal of encouragement to each other's induftry.•' Thofe commerce with each other. ^'i' is nearly equal to the mamtenance. What goods Calcutta could bear the expence of land carriage between ^ London and Or if there were any fo precious as to be able to fupport this expence. \what 11- men for three weeks. and.

but the country which lies OF The extent BOOK round about them. fea. It was before even the Phenicians and Carthaginians. its are caufed as its furface. by well as by the multitude of its neighbouring fhores.24 THE NATURE AND CAUSES goods. from their ignorance of the compafs. feems to have been the cultivated in which or manufadures were and improved any confiderable degree. and the great navigable rivers. the moft navigators Ikilful it. tempt Of E"-ypt all the countries on the coaft of firft the Mediterranean either agriculture to fea. and fhip-builders of thofe old times. and confequently their improvement muft always be pofterior to the improvement of that In our North American colonies the plantations have concountry. in the antient world. ftantly followed either the fea-coaft or the banks of the navigable rivers. the coaft of the Mediterranean inlet that is That by far the greateft known in the world. and have fcarce any where extended themfelves to any confi- derable diftance from both. muft for a long time be in proportion to the riches and populoufnefs of that country. extremely . attempted and they were for a long time the only nations that did atit. To pafs beyond the pillars of Hercules. to men were afraid to quit the art view of and from the imperfedlion of the to the boifterous of fhip-building. were thofe that dwelt round fea. as a late was. to fail out of the Streights of Gibraltar. therefore. long confidered moft wonderful and dangerous exploit of navigation. that is. the coaft. and feparates them from the fea-coaft. by the wind only. abandon themfelves waves of the ocean. . having no tides. was. of their market. and the proximity of favourable to the infant navigation of the world when. The nations that. according to the beft authenticated hiftory. firft appear to have been civilized. nor confequently as any waves except fuch the fmoothnefs of iflands.

of a have afforded a communication by water-carriage. but feem have derived their great opulence from this inland navigation. the modern Tartary and Siberia. a multitude of canals. in In Bengal the of the world. feveral great rivers canals in the fame manner form. and lies all ages of the world to have ftate in been in the fame barbarous find and of uncivilized which we them at prefent. The wife to improvements in agriculture and manufadures feem likehave been of very great antiquity In the provinces of Bengal and in in the Eaft Indies. Ganges and feveral other great rivers form a great number of navigable by in Egypt. h E Tartary . fome of the eaflern provinces of China this antiquity is not authenticated this part * though the great extent of hiflories by any of whofe authority we. not only between all the great towns. their different branches. degree. from the into art. 25 Upper Egypt extends Nile. are well affured. all that part of Afia which any confiderable way north of the Euxine and Cafpian . and in Lower Egypt that great river breaks with the affiftance many feem to different canals. The fea Vol.feas. the antient Scythia. itfelf no where above a few miles itfelf little CHAP. encouraged It is all to foreign commerce. as the Nile does In the eaftern provinces of China too. or perhaps than both of them put together. The extent and eafmefs of this inland navigation was probably one of the principal caufes of the early improvement of Egypt.THE WEALTH OF NATIONS. which. antient Egyptians. but between all the confiderable villages. and by communicating with one another afford an inland navigation much more extenfive than that either of the Nile or the Ganges. nor the Chinefe. and even to many farm-houfes in the country j nearly in the fame manner as the Rhine and the Maefe do in Holland at prefent. remarkable that neither the nor the Indians. feem in All the inland parts of Africa.

.ft6 THE NATURE AND CAUSES OF Tartary Is the frozen ocean which admits of no navigation. in comparifon of its what till would into be if any of them poflefTed the whole of courfe it falls the Black Sea. to carry Perfia. The coma river merce befides which any nation can carry on by means of which does not break itfelf into any great number of branches it or canals. Bengal. parts of that maritime com- merce into the interior great continent: and the great rivers of Africa are at too great a diftance to give occafion to from one another any confiderable inland navigation. they are greateft rivers in the at too great a diftance from one another ta fuch as the carry commerce and communication through the greater part of it. Baltic Europe. and world run through that though fome of the country. can never be very confiderable. becaufe it reaches is always in the obftrud the power of the nations who gation of the Bavaria. and the gulphs of Arabia. India. and Siam. There are in Africa none of thofe great and Adriatic in feas in inlets. in Afia. and which runs into another territory before the fea. communication between the upper country and the The it navi- Danube is of very little ufe to the different ftates of" Auftria and Hungary. the Mediterranean and Eux- ine feas both Europe and Afia. pofTefs that other territory to fea.

produdions of their refpecall and the butcher is already provided with for. He all cannot be their merchant. while another has to difpofe of. the bread and beer which he has immediate occafion in this cafe. we has more of a certain commodity than he himfelf has occafion^ for. IV. and the brewer and the baker would each of them be willing to purchafe a part of it. lefs. be No exchange can. that the former ftands in need no exchange can be made between them. In order to avoid the inconreniency E 2 of . The butcher has more meat in his fhop than he hlmfclf can confume. is but a very fmall part of a man's wants which the produce of greater part of his own labour can fupply. One man. a part of But if this latter fhould chance to have nothing of. The former latter confequently would be glad this fuperfluity. the Origin and Ufe of Money. operations. for fuch parts of the produce of other men's labour as produce of his own which is over and above his he has occafion for. But when the divifion of labour firft began have to take place. that furplus part of the own confumption. and they are ferviceable to of them thus mutually one another. H A 27 C Of P. But they have nothing to offer in exchange. lefs nor they his cuftomers . Every man thus lives by exchanging. TTJHEN VV far the divifion of labour has been once it thoroughly eftablifhed. fociety itfelf or beto comes in fome meafure a merchant. made between them. and the grows be what is properly a commercial fociety.^ THE WEALTH OF NATIONS. He fupplies the them by exchanging labour. and the to purchafe. this power of exchanging muft frequently its been very much fhall clogged and embarraffed in fuppofe. except the different tive trades.

this were fucceffively both thought of and employed for ages of fociety. and. to carry nails inftead of money to the baker's fliop or the In all countries. parts. dried Newfoundland ginia. however. only nine oxen. is but that of Glaucus coft an hundred oxen. coft we find things cattle were frequently number of which had been given fays The armour of Diomed. after eftablifhment of the divifion of labour. fome parts of the tobacco in Vir- India . India colonies. for a workman alehoufe. as to have endeavoured to manage have at all times in fuch a by him. without any lofs. for this em- to metals above other cemmodity. yet in old times Valued according to the in exchange for them. though they muft have been a moft in- convenient one. a certain quantity of as he imagined fome one commodity or likely to refufe in other. fugar in fome of our Weft . Metals can not only be kept with as little lofs as any other commodity. am told. Homer.2|8 THE NATURE AND CAUSES OF of fuch fituations. Salt faid to be the common cod at inftrument of commerce and exfliells changes in Abyffmia. affairs muft naturally manner. quality 9 . fcarce any thing being lefs perifhable than they are. cattle are faid purpofe. Many different commodities.' befides the peculiar produce of his own induilry. fuch few people would be exchange for the produce of their induftry. irrefiftible men feem every at laft to have been deter- mined by ployment. but they can likewife. reafons to give the preference. it is probable. every prudent the firft BOOK man his in every period of fociety. In the rude inftru- to have been the common mentof commerce. coaft of a fpecies of in . be divided into any number of a as by fufion thofe parts can eafily be reunited again. is I hides or dreffed leather in village fome other countries it and there at this day a in Scotland where is not uncommon.

was attended with two with the trouble confiderable inconveniencies. inftrument of com- among Romans and merce . buy double or triple the quantity. poflefs. an antient hiftorian. The very ufe of metals in this rude ftate firft.j The man who wanted cattle to give fait to buy fait. the antient Spartans filver copper all among the antient gold and among rich and commercial nations. was the common . v which more than any other quality renders them inrtruments of commerce and circulation. and. but made ufe of unftampcd bars of copper to purchafe whatever they for. la lib. Hift. fame reafons. exchange for it. that of aflaying them. He it could feldom buy becaufe what he was if give for to could feldom be divided for the without lofs. cap. or of two or three fheep. Those metals feem originally to have been made ufe of for this purare told pofe in rude bars without any ftamp or coinage. or a whole than this. Thus we by Pliny*. to buy the value of a lefs whole ox. he muft. Different for this metals have been Iron made ufe of by different nations purpofe. of weighing. the . 33. to wit. of If. and had nothing but to in ex- change for muft have been obliged flieep at a time. till the time of Servius TuUius.THE WEALTH quality OF NATIONS. had metals to give on the contrary. it. for example. the Romans had no coined money. 3. and he had a mind to buy more. performed at this lime the funiiion of money. • Plin. upon the authority of Timseus. with Nat. therefore. had occafion Thefe rude bars. two or three oxen. that. fecondly. he in he could eafily proportion the quantity of the metal to the precife quantity of the commodity which he had immediate occafion for. to to be the -^—. inftead of fheep or oxen. fit 29 and which no other equally durable commodities CHAP. have been obliged the value.

find lefs it accuracy would. inftitutions exadly of thofe of the aulnagers and flampmallers of woollen and linen cloth. no doubt. be neceffary. it has been found neceflary. leaft very accurate weights is and The weighing of little gold in particular an operation of fome nicety. of coined money. indeed. proper diffol vents. and of thofe publick the fame nature with offices called mints. the quantity and uniform goodnefs of thofe different dities commo- when brought market. by means of a publick ftamp. All of them are equally meant to to afcertain. unlefs they went through ration. with it. adulterated might exchange for their goods. of a pound weight of pure in or pure copper. more tedious. were in thofe countries commonly made ufe of to purchafe goods. which had. where a fmall error be of confequence. in all made any as confiderable advances towards improvement. unlefs a part of the metal fairly melted in the crucible. a publick ftamp upon certain quantities of fuch particular metals. even at the bufinefs of weigh- with proper exa£lnefs. Hence the origin of coined money. where a fmall difference in the quantity /- makes ing. requires fcales. flill The ope- more is difficult. people and difficult ope- muft always have been liable to the groffeft frauds filver. he was obHged ration of affaying flill weigh the farthing. however. all forts facilitate ex- changes.30 THE NATURE AND CAUSES OV the ' BOOK ' precious metals. and impofitions. been to made to To prevent fuch abufes. and. The . and thereby to encourage of induflry and comcountries that have to affix merce. however. and inftead receive. outward appearance. refemble thofe metals. an compofition of the in their coarfefl and cheapefl materials. a great difference in the value. v/ould In the coarfer metals. time a poor Yet we Ihould excelhvely troublefome if every man had is occafion either to to buy or fell a farthing's worth of goods. any conclufion Before the that can be inftitution this tedious drawn from is extremely uncertain.

and yet are received by weight and not by in the fame manner as ingots of gold and bars of filver are at prefent. or the Spanifh mark which fometimes affixed fide to ingots of gold. without the trouble of weighing. not in money but in kind.THE WEALTH The firft OF NATIONS. too. feem it in many cafes have been intended to »^ »— J what was both moft difficult and moft important to and to the goodnefs or finenefs of the metal. who the firft coined money as at Rome. but the weight of Such coins. have refembled the fterling mark which is at prefent affixed is to plate and bars of filvcr. William the Conqueror This money. however. The denominations of thofe coins feem originally to have In' exprefled the weight or quantity of metal contained in them. received at the exchequer. the fine- but not the weight of the metal. afcertain. - current metals. and not covering the whole furface. covering entirely both fides of the piece and fometimes the edges was fuppofed the metah to afcertain not only the finenefs. the merchant. for a long time. of which the ftamp. were received by tale as at prefent. afcertain. C to 31 publick ftamps of this kind that were affixed to the HA P. Troyes poundj the Roman As It or podo contained a in Roman pound our of good copper. therefore. The revenues of the antient Saxon kings of England is. nefs. that in viduals and provifions of all forts. was divided fame manner . are faid to have been paid. was. They the current money of tale. introduced the cuftom of paying them in money. and which being ftruck only upon one afcertains of the piece. by weight' and not by tale. the time of Servius Tullius. fhekels of filver Abraham weighs ta Ephron the four hundred to which he had agreed are faid however to be pay for the field of Machpelah. The inconveniency and difficulty of weighing thofe metals with exadtnefs gave occafion to the inftitution of coins.

32 THE NATURE AND CAUSES OF pound. the fhilling. The proof a far thing JJj all nveigh eleven Jlnllings portion. appears upon different occafions to have pennies. land in till laft was not introduced into the mint of Eng- 8th of Henry VIII. I. and forty Among the antient Saxons a fhilling appears is at one time to have contained it only five pennies. Troyes weight. however. ftcrling. and the at that time frequented by the nations of weights and meafures of fo famous a market were generally known and efteemed. contained a pound. a from the time of Alexander the filver that of Robert Bruce. of them originally a real pennyweight of part of filver. and it not improbable that may have been. fays an antient When wheat is ftatute of Henry theti ivajlel bread and four pence. denomination of a weight. in the time of filver Edward finenefs. the twentieth part an ounce. and the too two hundred and fortieth of a pound. of of a known The Tower pound feems to have been fomething more lels than the Roman This the 1 pound. The French in livre contained filver the time of Charlemagne a pound. as variable amoqg them WiUi^fflii as among their neighbours. the proportion betweea the pound. The Scots firft money pound to contained. feems not to have been fo conftant and uniform firfl as that between the penny and France. From the time of Charlemagne among the French. of of a known finenefs. and the penny. pound of of the fame weight and finenefs with the Englifh pound contained all Englifh. and from that of the Conqueror among the Englifh. each of which contained a of good copper. twelve. into twelve ounces. French and Scots pennies too. During the fhilling race of the kings of the French fou or contained five. The fhilling feems originally to have been the at tivelve Jljillings the III. or the pound on the other. feems to . twenty. Tower weight. real ounce The Engllih pound fteiUng. The fair all of Troyes Champaign was Europe. the pound. between the fhilling and either the penny on the one hand. the antient Franks. quarter. and fomething than the Troyes pound.

the Republick. or exchanged for What them Vol. flates. all kinds are bought and fold. have always proved favourable to the debtor. and might pay with the fame nominal fum of the new and debafed coin whatever they had borrowed in the old. The third pound and penny contain Scots prefent about a . in appearance. only the pound and penny about a thirty-fixth fixty-fixth and the French pound and penny about a part of their original value. which had been originally contained in their coins. came to weigh Englifh . It is in this manner that money has become in all civilized nations the univerfal inftrument of commerce. was indeed appearance only for their were really defrauded of a part ftate of what was due to them. engagements with have been creditors pay their debts filver a fmaller quantity It of in than would otherwife . to 33 have been uniformly the fame as difterent. of each has been very world. inftead of weighing a pound. By means of and thofe ope- rations the princes and fovereign to ftates which performed them to fulfil their were enabled. by the intervention of which goods of one another. the avarice and of princes and fovereign abufing the conGdence of their fubjeds. The Roman As. All other debtors in the were allowed the fame privilege. though the vakie CHAP. are the rules which men naturally obferve or for one another. have by degrees real diminifhed the quantity of metal. I in exchanging proceed to either for money Ihall now F . I. I For in injuftice every country of the believe.THE WEALTH OF NATIONS. and. Such operations. therefore. than could been occafioned by a very great publick calamity. and ruinous to the creditor. and have fometimes produced a greater and more unihave verfal revolution in the fortunes of private perfons. to in the latter ages of was reduced the twenty-fourth part of its original value. at prefent. only at half an ounce. requifite.

The word value. from coinciding exactly their natural price. what are compofed or made up. for which I mufl . A diamond. as fully and diftindtly $s lean. thofe three fubjeds in the three following chapters. which fometimes hinder the market price. or. ** The one may be called. " value in ufe. laftly. and fometimes the power of purchafmg other goods which the poffeffion *' of that objed conveys. any thing any thing can be had has fcarce in exchange for ufe . on the contrary. ings. value in exchange. thofe which have the greateft value in exchange is ." The things which have the greateft value in ufe have frequently little or no value in exchange . the adual price of commodities. and or. it is to be obferved. with what may be called 1 SHALL endeavour to explain. endeavour First. And. what that are the caufcs is. any value in but a very great quantity of other goods may frequently be had in ex- change for it. fometimes fink them below their natural or ordinary rate. what wherein is the real meafure of this exchangeable value. confifts the real price of all commodities. Nothing more fcarce ufeful than water: but it fcarce it. the difFerent parts of which this real price what are the difFerent circumflances which fome- times raife fome or all of thefe difFerent parts of price above." the other. is Secondly.34 THE NATURE AND CAUSES OF to examine. and. has two difFerent meanutility and fometimes expreffes the of fome particular objeft. In order to inveftigate the principles I fhall which regulate the exchangeto fhew. BOOK Thefe rules determine what may be called the relative or exchangeable value of goods. have frequently little or no value in will purchafe ufe. able value of commodities. on the contrary.

V. all is the real meafure of the exchangeable value of commodities. conveniencies. but to exchange it for other commodities. amufements of human with which a man's part of But it after the divifion of labour has thefe once thoroughly taken place. to purchafe or equal to the quantity of labour which enables command. fome obfcurity its may appear to remain upon a fubjed in own nature extremely abflradted. or which he can and it The value of any commodity. appear flill in fome I am always willing to run feme hazard of being to be fure that I am perfpicuous. perhaps. niufi: very earneftly entreat both the patience and attention of the : reader his patience in order to examine a detail . tedious in order am capable of giving of it. Labour. F 2 The . The far greater them he muft derive from the labour of other people. EVERY man rich or poor according to the degree In to which and he can afford enjoy the neceflaries. therefore. is but a very fmall part of own labour can fupply him. which may perand his attention fiilleft haps in fome places appear unneceflarily tedious in order to cation underftand what may. and rich or poor he muft be according to the quantity of that labour afford to purchafe.THE WEALTH OF NATIONS. therefore. the real and nominal Price of Commodities^ or of their Price in LabourJ and their Price is in Money. C Of H A P. after the I expli- which degree obfcure. life. and after taking I the utmofl: pains that flill can to be perfpicuous. to the perfon who poflefTes it who means him not to ufe or confume is it himfelf. which he can command.

all the wealth of the world was originally purchafed •who polTefs is it and its value. is the toil and trouble of acWhat every thing is really worth to the man who quiring it. that . It is fome allowance commonly made for both. and of ingenuity exercifed. however. adjufted. elfe. There may be more labour in an hour's hard . was not by gold and by filver. thofe goods indeed fave us this certain quantity of labour own body. They contain for much That money what is or the value of a which we exchange fuppofed at the time to contain the value of an equal quantity.o6 THE NATURE AND CAUSES OF The the real price of every thing. has acquired it. But it is not eafy to find any accurate meafure either of hardfhip or ingenuity. and who wants to difpofe of it or exchange it for fomething felf. than in a month's induftry at an ordinary and obvious employment. it precifely equal to the quantity of labour which can enable them to purchafe or command. eflimated. what every thing really cofts to man who wants to acquire it. different In exchanging indeed the produdions of different is forts of labour for one another. work than in two hours it eafy bufinefs or in an hour's application to a trade which coft ten years labour to learn. mufi: likewife be taken into account. is What is bought as with money or with goods purchafed by labour as what we acquire by the toil of our toil. to thofe who want to exchange it for fome new produdions. is it the toil and trouble which it can fave to hira^ and which can impofe upon other people. . in two different forts of proportion. Labour was all the firft price. real But value of though labour be the all meafure of the exchangeable is commodities. The time fpent work will not always alone determine this The different degrees of hardihip endured. It it is not that by which their value difficult commonly is often to afcertain the pro- portion between two different quantities of labour. but by labour. the It original purchafe-money that was paid for or "things.

which. to eflimate its exchangeable value by that of the labour the quantity of fome other commodity than by which better it can purchafe. and thereby compared with. and afterwards exchanges beer. intervention of butcher's that it another commodity is and rather to fay that his meat worth threepence or fourpence a pound. other commodities than with labour. and money has become the every particular common is commerce. than by a quantity of labour. Hence it comes to pafs that the exchangeable . but he carries them to the market. according to that fort of rough equality which. the commodities for that of bread and which he can exchange them. therefore. than is worlh three or four pounds of bread. more natural. to efli- mate their value by the quantity of money. in order to exchange them for bread or for beer. therefore. than by beer. that money for bread and for The quantity of money which he to gets for them regulates too the quantity of bread and beer which he can afterwards purchafe. 37 ^ ^^ '^ not by any accurate meafure. is The greater part of people too underfland particular what meant by a quantity of a commodity. though intelligibly. The butcher feldom carries his beef or his mutton to the baker. where he exchanges them for money. It is more natural and obvious him. only by the . is more frequently exchanged for. though not exadt. But when inflrument of frequently barter ceafes. the it other an abflradt notion. ever. the commodity for which he immediately exchanges them.THE WEALTH OF NATIONS. Every commodity It is befides. or the brewer. is on the bufinefs of common life. or three or four quarts of fmall beer. The one is a plain palpable objedl. but by the higgling and fufficient for carrying ^' bargaining of the market. is can be made fufficiently not altogether fo natural and obvious. commodity more exchanged for money than for any other commodity.

indeed. be known about the time when fuch exchanges The difcovery of the abundant mines of America reduced. Gold of eafier however. it may fometimes and his happinefs. are fometimes cheaper and fometimes dearer. its fathom. at all times and places. though perhaps the greateft. is by no means the only one of which hiftory gives fome as a meafure of quantity. the value of gold and filver in Europe lefs to about a third of what it had been before. like every other cotnmodity. in the fixteenth century. The will quantity of labour which any particular quantity of them can purchafe or command. always lay down the fame portion of his eafe. command labour and this revolution in their value. . is account. vary in their value. Of thefe. fometimes a fmaller quantity. mufl. can never be an accurate meafure of the value of other commodities. fpirits . in it. which tity. he his liberty. The price which he pays mufl: always be the fame. Equal quantities of labour.«8 o THENATUREANDCAUSESOF a5ie value of every BOOK commodity is more frequently eflimated by the exchange for quantity of money. but it is which not that of the labour which purchafes them. In his ordinary of health. than by the quantity either of labour or of any other commodity which can be had and filver. fometimes difficult and fometimes of more purchafe. But fuch as the natural foot. or for. purchafe a greater their value and varies. whatever may be the quantity of goods which he receives in return for it. things fo a commodity which is itfelf continually varying in own may value. flate be faid to be of equal value to the labourer. and dexterity. As it coft labour to bring thofe metals from the mine to the market. fo when Jefs they were brought thither they could purchafe or . ftrength and in the ordinary degree of his fkill. the quantity of other goods which fertility or it exchange depends always upon the to barrennefs of the mines which happen are made. or handful. continually varying in own quanits can never be an accurate meafure of the quantity of other .

is well or rewarded. if it is it is therefore. them. of importance family in whofe favour I it is referved. price In be this popular fenfe. like may faid life faid to have a real and a nominal price. him It the price of labour feems to vary like appears to him dear it is in the one cafe. yet to the perfon who employs him they appear fome- times to be of greater and fometimes of fmaller value. never varying in its real ftandard own value. ill The labourer rich or poor. But though equal quantities of labour are always of equal value to the labourer. is all times and places that it is dear which . but may fometimes be of confiderable ufe in practice. Labour alone therefore. The fame is real price is but on account of the variations in the the fame nominal price fometimes of is very different values. intended that this to the rent fhould always be of the fame value. not a matter of mere fpeculation. come or which had cofts much labour to acquire little is and that cheap which to be eafily.THE WEALTH OF NATIONS. real The diftlndtion between the is and the nominal price of com- modities and labour. and to that of all other things. its nominal price. fold with a refervatlon of a perpetual rent. not to the nominal price of his labour. labour. and cheap in the other. . chafes He pur- them fometimes with a greater and fometimes with a fmaller quantity of goods. that it fliould not confift in a particular . In reality. therefore. the goods which are and dear in the other. all alone the ultimate and at all j by which the value of commodities can times and places be eftimated and compared. always of the fame value value of gold and filver. commodities. it is difficult ^ ^ ^ P. is It is their real price money their nominal price only. 39 to At at. When a landed eftate. in the quantity of money. or with very labour. Its real may be to confift in the quantity of the neceffaries and conveniencies of which are given for is it . in proportion- to the real. however. cheap in the one cafe.

of two different kinds firft. This diminution. had a temporary diminifh the quantity of pure metal contained in their coins but they feldom have fancied that they had any to augment of it. Such variations therefore tend almoft always to diminifh the value of a money rent. apprehend.40 THE NATURE AND CAUSES OF a particular to variations BOOK fum of money. without any certain proof. and. either In kind. been almoft conti- nually diminifliing. I believe. it is commonly fupis ftill pofed. even where the denomination of the coin has not been altered. By of the all i8th of Elizabeth it was enadled. Its value would in this cafe be liable . Princes and fovereign flates have frequently fancied that they intereft to . or according to the current prices at the neareft publick market. is going on gradually. and hardly ever augmenting. though. The quantity of metal contained in the coins. and likely to continue to do fo for a long time. not in fuch a quantity of coined money of fuch a denomination. all nations has. The value rents which have been referved better in corn have preferved their much than thofe which have been referved in money. for example) but in many ounces either of pure or of filver of a certain ftandard. to thofe which arife from the different values of equal quantities of gold and filver at different times. accordingly. fterling. to thofe which arife from at the different quantities of gold and filver different times in coin of the which are contained fame denomination. even though fhould be ftipulated to be paid. Upon it this fuppofition. fecondly. fuch variations are more likely to diminifh. That a third of the rent college leafes (hould be referved in corn. . The difcovery of the mines of America diminifhed the value of filver in I gold and Europe. to be paid. fo many pounds filver. therefore. than to augment the value of a money (in fo rent.

commonly near double of what the other two-thirds. as I. from muft. have in this manner been reduced almoft to nothing. has arifen altogether from the degradation in the value of filver. or enable the pofleflbr to purchafe or command more They it nearly the fame quantity of the labour of other people. and the fame number of pounds. or perhaps therefore. frequently la Scotland. or the real price of labour. real will. where it has undergone flill ever did in Scotland. the fubfiftence of the labourer. The I fubfhall of the labourer. j more nearly than equal quantities of almoft any other commodity for even equal quantities of corn will not do fiftence exactly. and pence have contained very nearly the fame quantity filver. market. fome antient rents. than with equal quantities of gold and filver. 4T The money arifing from is this corn rent. will do this.THE WEALTH OF NATIONS. be more nearly of the fame value. V. G endeavour . where the denomination of the coin has undergone greater alterations much than it ever did in England. Dodtor Blackftone. though onginally according to arifes CHAP. of pure This degradation. therefore. or are worth more than a fourth part But fmce the reign of the corn which they were formerly worth. When the the degradation in the value of filver it is combined with the coin of greater. The old money little rents of colleges according to thi§ account. in the value of the money rents of colleges. Equal quantities of corn. at diftant times. greater than it and in France. diminution of the quantity of the lofs is contained in ftill the fame denomination. I fay. but a third of the whole. EQ. originally of confiderable value. in the prefent times. Vol. of Philip and Mary the denomination of the Englifh coin has undergone fliillings little or no alteration.UAL quantities of labour will at diftant times be purchafed more nearly with equal of quantities of corn. have funk almoft to a fourth part of their ancient value . any other commodity.

how- ^ever. a therefore. The ordinary or average fo money price of corn. not only to the variations in the quantity of labour which any particular quantity of corn can purchafe. in order to bring any particular quantity of filver from the mine it to the market. Every other commodity. one that in ftanding and in one that is ftanding ftill than one that is going backwards. but to the average or ordinary price life. feldom varies much from year. fhall likewife endeavour to fhow hereafter. is But a rent referved in any other commodity liable. fions. to A rent therefore referved in (Corn is liable only the variations in the quantity of labour which a certain quantity of corn can purchafe. continue . and confequently of corn which muft be confumed.42 THE NATURE AND CAUSES OF endeavour to fhow hereafter. Though money rent. does not fluduate from year to year with the money price of corn. or by the quantity of labour which muft be employed. but frequently continues the fame or very nearly the fame for half a century or a century together. it is to be obferved however. may. during long a period. but to the variations in the quantity of corn which can be purchafed by any particular quantity of that commodity. feems to be every where accommodated. is BOOK- very different upon different occa- more is liberal in ftill a fociety advancing to opulence than in . as I filver. The money but price of labour. of that neceffary of Is The average or ordinary price of corn again regulated. the real value of a corn rent. by the value of by the richnefs or barrennefs of the mines which fupply the market with that metal. varies it much lefs from century to century than that of a varies much more from year to year. though fometimes varies year to from century to century. as I fhall endeavour to fhow hereafter. greatly But the value of filver. not to the temporary or occafional. will at any particular time purchafe a greater or fmaller quantity of labour in proportion to the quantity of fubfiftence which it can purchafe at that time.

in the fame or nearly in the fame condition. of what it had been the to year before. not only the nominal. From year corn. or will command double of other it quantity . may fifty frequently be double. In the mean time the temporary and occafional price of corn. and along with ^ ^ -'^ ^' the money price of labour. one year. therefore. century. with the greateft accuracy. or fludtuate. But when corn is at the latter price. corn is a better meafure than filver. for example. We cannot eflimate from year to year by the quantities of corn. and along with all that of moft other things.THE WEALTH OF NATIONS. allowed. We cannot eftimate. it may be of ufe to diftinguifh between real and G 2 nominal . either of labour or of the greater part commodities the money price of labour. is the only univerfal. to From century becaufe. the real value of different commodities from century to century by the quantities of filver it which were given for them. it appears evidently. as well as the only accurate raeafure of value. but the real value of a corn rent will be double of what the it is when at the former. will more nearly command the fame quantity of But though in eftabliPning perpetual rents. efti- mate it both from century to century and from year to year. filver it is a better meafure than becaufe equal quantities of labour. continuing the fame during tuations. continue the fame or very nearly the fame too. or the only flandard different by which we can compare the values of at all times commodities it is and at all places. the fociety con\- tinues. from century the to century equal quantities of corn will command fame quantity of labour more nearly than equal quantities of filver. from five and twenty {hillings the quarter. to year. on the contrary. By the quantities of labour we can. it 4J. provided. or even in letting very long leafes. thefe fluc- Labour. in other refpedls. at lead.

London . jufl as much as if an ounce of filver was at London exadly of the fame value as at Canton. he gains a hundred per cent by the bargain. however. than a commodity which it for an ounce London a to the man who poffeffes at at London. yet the goods from the one to the other has nothing merchant who carries to confider but their money price. At all the fame time and place the real and the nominal price of conimodities are exadly in proportion to lefs one another. which fells an ounce of real filver Canton may there be really dearer. at the fame time and place only. of labour and of the necef^ and conveniencies of than an ounce at London. there is no regular proportion and the money price of commodities. for half A at commodity. the more or labour it will at that time and place enable you time and place. lefs London market. in the The more or money you to get for any commodity. real purchafe or command. more common and ordinary tranfa£lions of human life. At the fame the therefore. If a London merchant. for example. however.4^ THENATURE AND CAUSES nominal price . and that for which he is likely to fell them. Half an ounce of filver at Canton in China may command faries a greater quantity both life. Though between the at real diftant places. exchangeable value of all commodities. can buy Canton for half an ounce of fell commodity which he can afterwards at London for an ounce. OF the BOOK it is of none in buying and felling. of more importance to the fells man who at pofleffes is it there. money is the exa£t meafure of It is fo. therefore. or the difference between the quantity of filver for which he buys them. filver. at It is of no importance to him that half an ounce of filver Canton would have given him the command of more labour and of a greater quantity of the neceflaries and conveAn ounce at niencies of life than an ounce can do at London.

As falcs.THE WEALTH OF NATIONS. I ihall hereafter have occafion to kind. though. In fuch a work as to this. con- tent ourfelves with them. are in general frequently taken notice of known and have been more by hiftorians and other writers. therefore. however. andcopper orr . We muft generally. this have given to thofe who as poffcffed We muft in of cafe comit pare. commercial nations have found convenient to coin feveral different metals into it money. or the different degrees it it. therefore. have been much more attended to than the real price. not as being always exadlly in the fame proportion as the current prices of labour. we cannot wonder that fhould. Thofe of corn. not fo much the different quantities filver for which was commonly fold. it Is the nominal or money price of goods. make feveral comparlfons of this In the progrefs of induftry. gold for larger payments. But the current prices of labour at diftant times and places can fcarce ever be known with any degree of exa£tnefs. the different quantities of labour which thofe different quantities of filver could have purchafed. upon different occafions. London t>f all 45 ^ ^ ^^ P« will always give him the command of double the quantity there. thefe which half an ounce could have done and this is precifely what he wants. all which finally determines the prudence or imprudence of purchafes and and thereby regulates almoft the whole bufinefs of common it life in which price fo is concerned. filver for purchafes of moderate value. the labour of other people which may. it may fometimes be of ufe compare the different real values of a particular commodity at of power over different times and places. they have in better few places been regularly recorded. but as being the nearefl' approximation which can commonly be had to that proportion.

when they firft within five years before the to firfl began coin filver. however. Copper. its The word SefThough the Sejlertius. all and for the fame reafon. The Romans till are faid to have had nothing but copper money Punic war *. till that of James I. feem to have had beginning of their fettlements. thofe They have more and always. we feldom mention the. c. and not to or copper coins for feveral ages thereafter. for thofe of ftill OF metals as fmaller confideratlon. and the value of to have been computed either in J[j]es or in Sejlertii. all At Rome all eftatcs accounts appear to have been kept. appears to have con- tinued always the meafure of value in that republick. which they muft have done when they had no other money. Having once begun as their ftandard.THE NATURE AND CAUSES or fome other coarfe metal. number of lib. value was eftimated in copper. nor any copper therefore. I In England. other modern nations of Europe. coin. was have a great deal of other people's copper. faid to At Rome. but there was gold coined the time of Edward in III. northern nations The of the who eftablifhed themfelves filver upon the ruins Roman empire. was always a filver coin. therefore. in money from the firft have known either gold There were filver coins little England till in the time of the Saxons. * Pliny. 3. confidered one of peculiarly the meafure of value thaa any of the other two this preference feems generally to have been given to the metal firft which they happened to make to ufe ufe of as it the inftrument of commerce. they have generally continued to do fo even when the neceiTity was not the fame. one who owed a great deal of money.. . therefore. all accounts are kept and the value of generally computed in filver : goods and of all eftates and when we mean to exprefs the amount of a perfon's fortune. The As was always the denomination of a copper tertius fignifies two JJfes and a half. of Great Britain. all is believe. xxxiii.

be- comes little more than a nominal In confequence of any change. In this {hillings.flate change of the fmaller filver coins. has. I believe. In procefs of time. of guineas. fhould exchange for one and twenty amount. of fuch a weight and finenefs. money was left to not fixed by any publick law or pro- but was be fettled by the market. In this of things the diftindion between the metal which was the ftandard. in tion. I believe. however. or accept of it at fuch a valuation of the gold and his debtor could agree upon. and during the continuance of any this kind. in moft countries. or at leaft feeras to become. except in the . the diftin<51ion is one regulated proportion of metal which is between the the ftandard and that which diftindion.THE WEALTH OF NATIONS. in all countries. Originally. and confequently better acquainted with the proportion between it their refpedive values. but the number of pounda flerling 47 which we fuppofe ^ ^^ P« would be given for it. The proportion between the values of filver . and as people became gradually more familiar with the ufe of the different metals in coin. been found convenient to afcer- tain this proportion. for example. Copper is not at prefent a legal tender. the creditor might either rejeft fuch pay- ment as he altogether. was fomething more than a nominal diftinCtion. and that which was not the ftandard. and to declare by a publick law that a guinea. a legal tender of in the coin pay- ment could be made only liarly confidered as of that metal. not the ftandard. which was pecuIn England it the ftandard or meafure of value. fomething more . this diftinCtion this regulated propor- becomes. gold was not confidered as a legal tender for a long time after was coined gold and clamation offered into money. or ftate be a legal tender for a debt of that of things. If a debtor payment in gold.

and not filver. either If the regulated value of a guinea. of gold as before. a greater in the one Silver Silver cafe. gold would not appear to meafure the value of The value of gold would feem to depend upon the quantity of filver which and the value of filver would not feem it would exchange for . but with very different quantities of In the payment of fuch a note. gold would appear to be more Gold would appear to meainvariable in its value than filver. after an alteration of this five and twenty or ftill fifty guineas kind. but would require very different quantities of gold money. to depend upon the for. and filver. tity be payable with the fame quanfilver. was and twenty again. during the continuance of any one regulated different pro- portion between the refpedive values of the metals in coin » . would be confidered or meafure of value. to meafure the value of gold. fhould ever become general.^8 THE NATURE AND CAUSES OF more than nominal for example. gold. expreflTing this If the cuftom of keeping accounts. would appear would appear to be more invariable in value than gold. and a fmaller in its the other. for and of in promiflfory notes and other obligations money manner. would. to reduced to twenty. the greater part of payments could in either cafe be made with the fame quantity of filver money as before . all accounts being kept and almoft all obli- gations for debt being expreffed in filver money. be payable with five It and twenty or fifty guineas in the fame manner as before. of Mr. Drummond's notes for would. and of expreffing the amount of all One great and fmall fums rather in filver than in gold money. and filver would not appear to meafure the value of gold. quantity of gold which it would exchange This difference however would be altogether owing to the cuflom of keeping accounts. as the metal which was peculiarly the flandard Im reality. or raifed two fhillings. fure the value of filver. after fuch an alteration.

the gold. they are in the market confidered as worth a and a late (hilling can at any time be had for them. to a guinea. late was worn and defaced but feldom fo much fo. In the Englifla mint a pound weight of gold is coined into fortyfliillings four guineas and a half. loJ. one and twenty (hillings ftill of this degraded confidered as worth a guinea of this excellent gold coin. avoirdupois. were equivalent too. which at one and twenty guinea. before as is coined. enforced. feldom worth fevenpence in filver. 49 the value of the mofl precious metal regulates the value a pound.THE WEALTH OF NATIONS. however. «- of the whole coin. 17 is j. is the equal to forty-fix pounds fourteen (hillings and fixpence. The its regulations have brought the gold it is coin as near perhaps to ftandard weight as poffible to bring the current coin of any nation . which. In the market. filver. chap. and the order. But by the regulation twelve fuch pence are ordered to {hilling. ftandard weight than the greater part of the defaced fliillings. therefore. L H . it Twelve copper pence contain half of not the beft ^—j of copper.t In England no duty or feignorage paid upon the ftandard coinage. worth 3/. is quality. is An in ounce of fuch gold coin. The of the reformation of the gold coin has evidently ralfed the value filver coin which can be exchanged for it. coin. Even before the reformation of the gold coin of Great Britain. was in general lefs degraded filver. that it part of at leaft which circulated in London and below its its neighbour- hood. which perhaps. and he who carries a pound weight or an ounce weight of Vo L. likely to preferve that order The filver coin ftill continues in the fame worn and degraded filver coin are ftate as before the reformation of the gold coin. is to receive it no fo gold at the publick as long as offices is but by weight. One and twenty worn and confidered as however. exchange for a fliilling. indeed.

or the mint gives in faid to be the the quantity of gold coin which return for ftandard gold bullion. many years been upwards of 4/'. therefore. the market price was always more or the above mint price. may not be fo diftindl and lenfiblc. probable. in the worn and degraded gold coin. containing. Five {hillings and two pence filver an ounce. ijs. Since that reformation. The late reformation of the gold coin. a pound weight of ftandard filver. and probably too in proportion to all other commodities. 19J. ation of the gold coin. the rife in the value either of gold or filver coin proportion to them. the market price of ftandard gold bullion feldom exceeds 3/. without any dedudion. price. Before the reformation lefs of the gold coin. has raifed not only the value of the gold coin. mint price of gold in England. Before 3/. upon different . though the price of the greater part of other commodities being influenced by fo many itt other caufes. feldom Since the reform- containing more than an ounce of ftandard gold. yd. but likewife that of the filver coin in pro^ portion to gold bullion. an ounce. is faid to be the mint price of in England. the market price of ftandard bullion was. the price of ftandard gold bullion in the market had for 8 J. and very frequently an ounce j that fum. the market price has been conftantly below the mint is But that market price the fame whether it is paid in gold or in filver coin. of Three ^ ^_i an ounce weight of gold in coin. 1 the reformation of the gold coin. Before the reformation of the filver gpld coin. in the fame manner. is fhillings and ten-pence halfpenny an ounce. In the Engliih mint a pound weight of ftandard is filver bullion coined into fixty-two fliillings. gets back a pound weight. pounds feventeen therefore. or the quantity of filver coin which the mint gives in return for ftandard filver bullion. therefore.p BOOK n_ THE NATURE AND CAUSES OF ftandard gold bullion to the mint. fometimes it is 3/.

five five (hillings and CHAP. and to the prohibition of ex- porting filver coin. the reformation of the filver coin in the reign of William flill the price of filver bullion continued to be fomewhat above this the mint prite. fo the price of filver is not funk by the low rate of filver in Engli{h coin. much above its real value. is. five ftiillings fliillings and feven- pence. which price it has fcarce ever exceeded..> — . for exchanges for about Is fifteen ounces. Since the reformation of the gold coin.THE WEALTH OF NATIONS. This permiffion of exporting. (lifFerent occafions. the filver market price of flandard five bullion has fallen occafionally to five {hillings and three-pence. that more filver than it worth according to the common is eflimation of Europe. proper prop ortion Upon III. in the French coin and in the Dutch coin. Locke imputed high price to the per- miflSon of exporting filver bullion. for the fame reafon that copper in bars preferves to filver. as copper is is rated very it. even in England. and laft five {hillings and five-pence an ounce. an ounce of fine gold exfilver. and very often and eight-pence an ounce. he faid.j five-pence. Five {hillings and feven-pence. 51 five fliillings and four-pence. it In the Engliih. fo filver rated fomewhat below In the market of Europe. In the proportion between the diff'erent metals in the Englifli coin. has not fallen fo low as the mint price. fallen Though the market price of filver bullion has it confiderably fince the reformation of the gold coin. Mr. But as the price of copper in bars price not. however. ftill Silver in bullion preferves its proper proportion to gold its . and four-pence.. five {hillings and fix-pence. rendered the demand for filver bullion greater than the demand for H 2 . raifed by the high in bullion of copper in Engli{h coin. v-. changes for about fourteen ounces of fine coin. feems to have been the moft common fliillings price.

there would in this be a profit in for gold coin. the bullion and afterwards melted exchange this gold coin for filver coin to be down in the fame manner. No this . firft. according coin than its to the prefent proportion. it exchange for more filver in would purchafe ftandard it in bullion. filver As the reformation of the coin did not then reduce the price of filver bullion to the price. Were weight as the filver coin brought back as near to it its ftandard the gold. would. is probable. in the fame manner as copper is not a legal tender creditor could in more than the change of a fiiilling.^2 THE NATURE AND CAUSES OF for filver coin. like prohibi- tion of exporting gold coin and yet the price of gold bullion has fallen below the mint price. the real value of the whole coin. as well as now. under-rated at to gold and the gold coin (which that time too was not fup- pofed to require any reformation) regulated then. The inconveniency perhaps would be lefs if filver was rated in it the coin as much above it . furely much greater than that of thofe who want filver bullion either for the ufe of exportation or for any other ufe. fent a like permifTion There fubfifts at pre- of exporting gold bullion and a . Some alteration in the prefent proportion feems to be the only method of preventing this inconveniency. in the fame . to in order. for the But the number of people who want ufes of filver coin is common buying and felliqg at home. a guinea. it is mint fo not very probable that a like reformation will do now. The to fell filver coin cafe containing full weight. melting down. manner as now. But in the Englifli coin filver in proportion was then. its proper proportion to gold as it is at prefent rated below provided was at the fame time enadled that filver fhould not be a legal tender for more than the change of a guinea for .

This delay equivalent to a fmall duty. and they would be precluded by this regulation from this difcreditable method of evad- ing immediate payment.THE WEALTH this cafe OF NATIONS. But gold in coin is more convenient than gold the coinage is in and though. even in our prefent excellent gold coin. dard bullion. filvcr « ^3 be cheated in confequence of the high valuation of as C H A p. ing to its If in the Englifli coin filver proper proportion to gold. can feldom be returned in coin to th^ owner till after a delay of feveral it weeks. and renders gold in coin fomewhat more valuable than an equal quantity was rated accord- of gold in bullion. could not b£ returned is after a delay of feveral months. and though it might no doubt be a confiderable inconat the veniency to them. A SMALL feignorage or duty upon the coinage of both gold and ftill fUver would probably increafe more the fuperiority of thofe metals . Three (the pounds feventeen fliillings and ten-pence halfpenny mint price of gold) certainly does not contain. yet the: gold which carried in bullion to the mint. the price of filver bullion would fall probably below the mint price even without any reformation of . this regulation. no creditor can at prefent be cheated in confequence of the high valuation of copper. till In the prefent hurry of the mint. the filver coin filver coin the valUe even of the prefent worn and defaced being regulated by the value of the excellent gold coin it for which can be changed. bullion. ' in coin . fhould not purchafe more ftan- and it may be thought. more than an ounce of ftandard gold. When a The bankers only would fuffer by run comes upon them they fometimes endeavour to gain time by paying in fixpences. to They would be obliged in confequence cafli keep at all times in their coffers a greater quantity of this than at prefent. would fame time be a confiderable fecu- rity to their creditors. therefore. in England. is free.

likely to be the immediate demand. on the other hand. and would it difcourage exportation. in bringing it home again. when exported. in of coin. to fuit we may endeavour. In ibon return again of France a feignorage of about eight per cent. for the fame reafon that the fafhion Increafes the value of plate in propor- tion to the price of that fafhion. other merchants. a continual importation in order to repair this lofs and this wafte. the greater part its it would own accord. If upon any publick exigency of fhould become neceflary to export the coin. lefs When. . coinage. BOOK The coinage would in this cafe increafe the value of the to the extent metal coined in proportion of this fmall duty . they import than is wanted. Abroad it could fell only for At home it would buy more than that weight. and fometimes under-do is When they import more bullion than wanted. require. rather than incur the rifk and trouble of exporting a part of it it again. There would be a profit. they are fometimes willing to lefs fell for fomething than the ordinary or average price. accidents The lace frequent of thofe metals from various by fea and by land. they judge. porters. bullion would prevent the melting its The fuperiority of coin above down of the coin. they get fomething more than this price. and in that of plate. again of its is impofed upon the return is faid to home own accord. its weight in bullion. like all The merchant imbelieve. to as well as they can. the continual wafte of and embroidery. is their occafional importations what. in countries which poffefs no mines of their own. and the French coin.54 THE NATURE AND CAUSES OF metals in coin above an equal quantity of either of them in bullion. in the wear all them and in gilding tear and plating. it. The that of occafional fluduations in the market price of gold and in filver bullion arife all from the fame caufes as the like fluduations lofs other commodities. therefore. With however. they fometimes over do the bufinefs. all their attention.

however. renders a certain lefs quantity of coin either of more value or of value than the precife quantity of bullion which it ought to contain. price. But if.THE WEALTH OF NATIONS. either more or lefs above. 55 market ^ But when. lefs forty-four guineas and a half generally contain than a pound weight of ftandard gold . not to the quantity of pure gold or iilver which the coin Vol. being greater in fome pieces than in others. under all thofe occafional fluQuations. The conftancy and fteadinefs of the effect. The money of any and place. In confcquence of a like diforder in the coin 'the price of goods comes. or contains more or exadly the of pure gold or pure filver which it ought to contain. the meafure of value comes to be liable to the fame fort of uncertainty to which it all other weights and meafures are commonly expofed. H4 . the ha p. forty-four guineas and a half contained exadlly a pound weight of ftandard gold. not to what thofe weights and meafures ought finds to be. If in England. we may be affured that this fleady and conftant* either fuperiority or inferiority in the ftate of price. by rubbing and wearing. the diminution. at any particular time more or is lefs an accurate meafure of value according as lefs the current coin more or lefs exactly agreeable to precife quantity its ftandard. upon an average. but to what. the merchant adjufts the price of his goods. for example. is the effedl of fomething of the coin. As rarely happens that thefe are exadlly agreeable to their ftandard. as well as he can. by experience they adually are. in the fame to be adjufted. which. price either of gold or filver bullion continues for feveral years toge- ther fteadily and conflantly. he manner. particular country is. at that time. I. or more or lefs below the mint price. or eleven ounces of alloy. the gold coin fine gold and one ounce of of England would be as accurate a meafure of the adual value of goods at any particular time and place as the nature of the thing would admit. fuppofes a proportionable conftancy and fteadinefs in the caufe.

for example. fold. as the fame of Edward I confider money-price with a pound fterling in the prefent times becaufe it contained. in the time fliillings and eight-pence. is fliould be worth double of what hour's labour. fome allowance will naturally be made for this fuperior hardship and . I- OF it is BOOK upon an average. CHAP. found by experience. as nearly as we can judge. it is to be obferved. for example. denomination of the coin. the fame quantity of pure filver. the componetit Parts of the Price of Commodities. ufually the produce natural that what is of two days or two hours labour. the proacquiring portion between the quantities of labour neceflary for different objects feems to be the only circumftance which can afford If any rule for exchanging them for one another. it among a nation of hunters.55 THE NATURE AND CAUSES coin ought to contain. ufually the produce of one day's or one If the one fpecies of labour fhould be more fevere than the other. By the money-price of goods. I underftand always the quantity of pure gold or without any regard to the filver for which they are Six I. does to kill one beaver fhould naturally It is exchange for or be worth two deer. Of vr. but to that which. beaver which it ufually cofls twice the labour to kill a a deer. that early rude INaccumulation and flock of ftate of fociety which precedes both the and the appropriation of land. it adually does contain.

In the advanced of fociety.THE WEALTH and the produce of one hour's labour OF NATIONS. ought commonly command. fome- thing muft be given for the profits of the undertaker of the work Vo L. or for other goods. In ex- changing the complete manufafture either for money. in the 57 frequently one way may chap. and the quantity of labour commonly employed is in acquiring or producing any commodity. will naturally give a value uncommon degree which men have for fuch produce. it. I. As foon as flock has accumulated in the hands of particular perfons. and fomething of the and rudeft fame kind muft probably have taken place period. in its earlieft In this ftate of things. and the wages of the workmen. Or if the one fpecies of labour requires an of dexterity and ingenuity. for fuperior hardlhip and fuperior are commonly made in the wages of labour . fome of them people. will naturally employ it in fetting to work induftrious whom they will fupply with materials and fubfiftence. to their fuperior to what would be due to the time employed about Such talents can feldom be acquired but in confequence of long application. for labour. the only circumftance it which can regulate the quantity of labour which to purchafe. exchange for that of two hours labour in the other. or by what their labour adds to the value of the materials. over and above what may be fufficient to pay the price of the materials. in order to make a profit by the fale of their work. and the fuperior value of their produce may frequently be no more than a reafonable compenfatlon for the time and labour which ftate muft be fpent in acquiring them. fkill. the efteem talents. the whole produce of labour belongs to the labourer. allowances of this kind. I vvho . or exchange for.

and bear no proportion to the quantity. therefore. unlefs he expeded from the of their work fomething . "^ At the rate of per cent. pofe too. in tha one will in that this cafe amount only one thoufand pounds to- whereas three employed in the other will amount ten. there are two different art manufadures. more than what was fufficient to replace his ftock to him and he could have no intereft to employ a great ftock rather than a fmall one. that in fome particular place. altogether by quite different principles. where the common are annual profits of manufacturing ftock are ten per cent. unlefs his profits were to bear fome proportion to the extent of his ftock. and are greater or proportion to the extent of this ftock. refolves this two parts. or the ingenuity of this fuppofed labour of infpedlion and diredion. The to capital annually employed . are only a fort name for the wages of a particular of labour. of which the one pays their wages. therefore. Let us fuppofe. to The value which the itfelf in workmen add cafe into profits the materials. altogether fraaller in They are regulated by the value of the ftock employed. in each of which twenty workmen employed the rate of fifteen pounds a year each.58 THE NATURE AND CAUSES OF who hazards his ftock in this adventure. He could have no intereft to employ fale them. the labour of infpeftion and direition. The different profits of ftock. or at the ex- pence of three hundred a year in each manufadory. are regulated They are. {even thoufand hundred pounds. different. the unyearly profit dertaker of the one will expedt an of about one hunJred . however. it may perhaps be thought. coft Let us fup- that the coarfe materials annually wrought up in the one only feven hundred pounds. while the finer materials in the other coft feven thoufand. the other the of their employer upon the whole ftock of materials and wages which he advanced. for example. the hardfhip.

or exchange for. it is evident. the tity He muft in moft cafes fliare is it with owner of the ftock which employs him. though he is thus difcharged of almoft labour. and regulated by quite different principles.THE WEALTH hundred pounds only . yet they never bear any regular proportion to the capital of which he overfees the management . An additional quantity. and the owner of all this capital. their labour of infpediion and direction may be either altogether or very nearly the fame. like other men. But though their profits are fo ^9 ^ ^. In this ftate of things. 2 only . OF NATIONS. Though in fettling them fome regard had commonly. the whole produce of labour does not always belong to the labourer. very different. it. and demand a rent even for natural produce. almoft the whole labour of this kind clerk. all The wood of the foreft. therefore. mnft be due for the profits of the ftock which advanced the wages and furnilhed the materials of that labour. the grafs of the field. is committed fome principal of inis His wages properly exprefs the value of this labour fpedion and diredlion. not only is to his labour and fkill.^ P- while that of the other will expedl about feven hundred and thirty pounds. In many to great works. when land was in I common. the only circumftance which can regulate the quantity which it ought commonly to purchafe. As foon as the land of any country has all all become private peo- perty. the profits of ftock conftiiute a component part altogether different from the wages of labour. command. but to the truft which repofed in him. which. Neither the quan- of labour commonly employed in acquiring or producing any commodity. and the natural fruits coft the labourer of the earth. love to reap where they its never fowed. ftill expeds that his profits fhould bear a regular proportion to }« the price of commodities. the landlords.

it muft be obferved. The real value of is all the different component parts of price. for example. and in the price of the greater part of commodities makes a third component part. Thefe three parts feem either immethe whole price of corn. is diately or ultimately to part. rent. each of them. or for compenfating the wear and tear of his labouring cattle. BOOK upon them. neceflary for replacing the flock of the farmer. come. the labour of tending and ^ rearing . and other Inftruments of hufbandry. In the price of corn. But it muft be confidered that the price of any inftrument of hufbandry. or.Co THENATUREANDCAUSESOF only the trouble of gathering them. to have an: additional price fixed to gather I. fuch as a labouring horfe. is itfelf made up of is the fame three parts . it make up A fourth may perhaps be thought. This portion. and muft give up colle£ls to the landlord a portion of what his labour either or produces. the rent of the land upon which he reared. as compo- nent parts. purchafe or command. into the price of the far -greater part of commodities. conftitutes the- rent of land. one part pays the rent of the landlord. He muft then pay for the licence them . or all all of thofe three parts . the three enter more or lefs. Labour meafures the itfelf into labour. even to him. another pays the wages or maintenance of the labourers in producing it. meafured by the quantity of labour which they can. and of that which re- In every fociety the price of every commodity finally refolves itfelf into fome one or other. ^lue not only of that part of price which refolves itfelf into but of that which refolves folves itfelf into profit. the price of this portion. and labouring the profit cattle employed and the third pays of the farmer. and in every improved fociety. what comes to the fame thing..

and profit. and the labour of wages of fervants. mufl be greater than that not . his the profits of the baker. together with the profits of their refpedtive em- As any comes rent. labour. and in the price of both. The capital which employs the weavers. the whole price refolves itfelf either im- mediately or ultimately into the fame three parts of rent. price of flax refolves itfelf into the fame three parts as that In the price of linen flax-dreffer. which employs the fpinners . the corn. may pay the price as well as the mainteftill nance of the horfe. of the fpinner. we mufl: add to this price the wages of the bleacher. and the wages of this labour. who advance the wages of that The of corn. wages and profit. rearing him.hich refolves itfelf into to be greater in proportion to that which refolves itfelf into In the progrefs of the manufadture. therefore. not only the is number of profits increafe. rent of this land. becaufe the capital from which derived muft always be greater. we mufl add to the price his of the profits of the miller. for example. In the price of flour or meal. but every fubfequent profit it is greater than the foregoing. in the price of bread. becaufe it. and the wages of the fer- vants . and from that of the miller to that of the baker. that part of the price v. ployers. of the &c. particular commodity comes to be more manufadured. gether with the profits of thofe labour. Though the price of the corn. and the profits of the farmer Cx who advances both the chap.THE WEALTH OF NATIONS. of the weaver. tranfporting the corn from the houfe of the farmer to that of to- the miller.

BOO but pays. and bringing it to market. make any part But the whole price of every commodity muft all ftill finally re- folve itfelf into fome one or other or it of thofe three parts. there are always a few commodities of which the only. The of it. taken feparately. Rent very feldom makes any part of as I fliall does fometimes. price which paid to them by the ftone-cutter neither rent nor profit altogether the wages of their labour. labour of the fifhermen. befides the wages of the weavers portion to the capital. It is other- wife. at lead: through the greater part of Europe.s fome one or other or of thofe three parts . it cannot well be called the as well as makes a part of the price of a falmon wages and profit. however. muft neceffarily be profit to fomebody. and the other the profits employed though it in the fifliery. . As the price or exchangeable value of every itfelf into all particular commoall dity. price refolves itfelf into profits two parts and a ftill the wages of labour. as whatever y art of remains after paying the rent of the land. fhew hereafter. for example. one part pays the of the capital it. fo that of the commodities which compofe the . fmaller labour. number in which it altogether in the wages of In the price of fea-fifh. though rent of land. A falmon fiihery pays a rent. r>. and the profits muft always bear fome pro- In the moft improved focieties. and the price of the whole labour employed in raifing. along the variegated ftones thofe little commonly known by is the name of Scotch is Pebbles. In fome parts of Scotland a few poor fea-fliore.'olvi. and the confifts of ftock. manufacturing. people make a trade of gathering.6a THE NATURE AND CAUSES OF not only replaces that capital with its profits. and rent. in river filheries.

its different members. fociety. and be either out among different inhabitants of wages of their labour. unlefs perhaps the borrower tra£ts a fecond debt a fpendthrifr. That deit. land is . or from The revenue from ftock. derived To him. complexly. for the profit which he has an opportunity of making Part of that profit naturally belongs to" by the ufe of the money. partly from his labour. it. the compenfation which the borrower pays to the lender. which. is his own. called rent.. who to runs the rifk and takes the trouble of employing and part who affords him is the opportunity of making this profit. the whole price of it. The whole of what is annually either colleded or produced by the labour of every thing. all Wages. profit. if the ufe of the not paid from the profit which made by con- money. the lender. Whoever muft draw land. are the three original fources of All other revenue revenue as well as of all exchangeultimately derived from fome one is or other of thefe. or what comes to the fame is in this manner originally diftributed profit. and' is The revenue of and partly from his the farmer ftock. in order to pay the of the is The revenue which proceeds altogether from land. his- from from is his ftock. among fome of able value. parcelled as the muft refolve itfelf into the fame three parts. or the rent of their land. taken 63: chap. The it is intereft of money always a derivative is revenue. the whole annual produce of the labour of every country. and rent. is called the ufe of money. belongs to the landlord. muft be paid from fome other fource of is revenue. rived called by the perfon who manages or employs it is That derived from it by the perfon who does not the intereft or employ himfelf. it derived from labour called wages. the country. it derives his either revenue from a fund which his labour. the profits of their ftock. but lends It is to another. the borrower. intereft who firft.THE WEALTH OF NATIONS.

lead in common language. A GENTLEMAN who farms a part of his own eftate. North American and Weft Indian planters are farm. after paying the expence of cultivation.64. his He The their is apt to denominate. Common farmers feldom employ any overfeer to dired the a general operations of the farm. . fhould gain both the rent of the land- lord and the profit of the farmer. they are readily diftlnguilhed but when they belong at to the . 6'^. All taxes. however. all and all the revenue which is founded upon them. What remains of the crop after paying the rent. and to make the profits of this flock. therefore. the profits of or the rent of land. Whatever remains. but frequently of profit. THE NATURE AND CAUSES ° ^ ' OB ^ ' °j " is only the inftrument which enables him to earn the wages of this labour. as ploughmen. and annuities of every kind. falaries. deal with their They generally too work good own hands. ftock. howprofit* whole gain. but pay them the wages which are due to them. at leaft in common language. both as labourers and overfeers. the greater part of them. When thofe three different forts of revenue belong to different . harrowers. and thus confounds rent with greater part of our in this eftates. fhould not only replace to them their ftock employed in cultivation. They its own and accordingly we feldom hear of the rent of a plantation. profit. fame they are fometimes confounded with one another. perfons. fituation. are ultimately derived from fome one or other of thofe three original fources of revenue. and are paid either immediately or mediately from the wages of labour. ever. together with its ordinary profits. penfions.

A GARHENER who farmer. faving thefe wages. as the quantity of labour would increafe greatly every year. who has flock enough both to till purchafe materials and to maintain himfelf to he can carry his market. and bringing that produce to market. confounded with wages. As in a civilized country there are but few commodities of which rent and profit fo the the exchangeable value arifes from labour only. are in this cafe confounded with profit. however. commonly confidered as the earnings of his labour. by therefore. is called chap. muft neceflarlly gain them. and the which "that mafter makes by the fale of the journeyman's work. firfl. the profit of the fecond. K . annual produce of or its labour will always be fufficient to purchafe command a much greater quantity of labour than what was emwhich can ployed in raifing. An work independent manufadturer. after paying the rent and keeping up the profit. and wages confounded Vv^ith profit. is and the The whole. The farmer. His whole gains. fhould pay him the rent of the wages of the third. Cultivates his own garden with his own hands. however. contributing largely to that of the far greater part of them. But wages evidently make a part of it. in But there is no country which the vs'hole annual produce is employed in maintaining the induflrious. preparing. unites in his landlord. His produce. in this cafe too. Wages.THE WEALTH OF NATIONS. however. Vol. in this cafe. are are. Both rent and profit are. therefore. commonly called profit. of and labourer. If the fociety was annually to employ all "the labour it annually purchafe. fo the produce of every fucceeding year would be of vaflly greater value than that of the foregoing. own perfon the three different charadlers. fhould gain both the wages of a journeyman profit who works under a mafter. 6^ flock. I.

or average value mufl either annually increafe. and according to the different proportions in which it is its annually ordinary divided between thofe two different orders of people.66 THE NATURE AND CAUSES OF Induftrious. in every fociety or neighbourhood an ordinary or THERE as I Ihall fociety. may be called the natural rates and rent. . The idle every where confume a great part of it. There hereafter. CHAP. natural and market Price of Commodities. . or continue the fame from one year to another. ordinary or average rates profit. or declining condition and partly by the particular nature of each- employment. partly by the general circumflances of the their their riches or poverty. fhow hereafter. the wages of the labour. is likewife in every fociety or neighbourhood an ordinary is or average rate of rent. which partly regulated too. fociety neighbourhood in which the land tural or and partly by the improved fertility of the land. Of the VII. advancing. at the time and place in which they com- monly prevail. or diminifh. is average rate both of wages and profit in every different em- ployment of labour and flock. as I fhall fhow or na^- by the general circumflances of the is fituated. This rate is naturally regulated. When than what the price of is any commodity Is neither more nor lefs fufhcient to pay the rent of the land. ftationary. These of wages.

what in really cofts the perfon who is brings it to market coft for though common language what it called the profit prime of any commodity does not comprehend the to fell it of the perfon who ig again. his flock in fome other way is he might have made that His profit. As. is then fold for what may be called natural The or for commodity it is then fold precifely for what it is worth. a lofer evidently by the trade.. . fmce by employing profit. according natural its rates. Unlefs they yield him this therefore. therefore. may fometimes his is likely to is fell them for any con- fiderable time at leafl where there he perfe£t liberty. while he is preparing and bringing the goods to market. their ^' ^J^ 1 and bringing the commodity price. it is the price. is fell not always the loweft at which a dealer the lowefl at which he . preparing. or exadlly the fame with its natural price. it to market. which is generally fuitable which he may reafonably expedt from the fale of his his profit. profit own fubfiflence. in the fame the manner. to goods. they do not repay to him what they may very him. K s The . which leaves him this profit. or where he may change his trade as often as pleafes. or below. or their fubfiflence . bcfides. fo he advances to himfelf. 'properly be faid have really cofl Though goods. may either be above. employed to in raifing. labour. he advances to his workmen their wages. and the profits of the flock 67 ^ ^ . yet if he fells at a price which does not allow him he is the ordinary rate of profit in his neighbourhood. his revenue.THE WEALTH OF NATIONS. The called its adual price at which any commodity It is commonly fold is market price. the proper fund of his fubfiflence.

Rather than want altogether. like to but his demand not an demand. commodity can never be brought to market in order to fatisfy When market the quantity of any commodity which all Is brought to falls fliort of the effedual demand. Some part muft be fold to thofe who are . and the demand of thofe who are wilHng to pay the natural price of the profit. which muft: be paid thither. in fome have have a demand for is a coach and fix effedlual he might as the it. to it. thofe who are wil- ling to pay the whole value of the rent. or to the wealth and wanton luxury of the competitors lefs happen animate more or the eagernefs of the competition. commodity. cannot be fupplied it with the quantity which they want. fenfe. according as either the greatnefs of the deficiency. demand demand fince to may be It fufficient to efFeftuate the is bringing of the commodity market. A competition will immediately will rife begin among them.68 THENATUREANDCAUSESOF The market price of every particular commodity is regulated by the proportion between the quantity which is adually brought to market. them will be willing to give more. wages and profit. Such people the eftedlual may be called the cffedual demanders. wages. the it When demand. which fome of muft be paid in order to bring it thither. and profit. A very poor man may . and which mud be it paid in order to bring it thither. Hence the exorbitant price of the neceffaries of life during the blockade of a town or in a famine. and the market price more or lefs above the natural price. different from the abfolute demand. and their . Among competitors of equal wealth and luxury the fame deficiency will generally occafion a as the acquifition more or lefs eager competition. according lefs of the commodity happens to be of more or importance to them. labour. or the whole value of the rent. be faid. quantity brought to market exceeds the all eff"e£lual cannot be fold to thofe who are willing to pay the whole value of the in order to bring it rent.

but does not oblige them of The quantity of every commodity brought to market naturally effedual demand. and the low price which they give for r ^ HA \ il. p. lefs happens to be more or important to them immediately rid of the commodity.THE WEALTH OF NATIONS. price. and if it is profit. and cannot be difpofed of for dealers The competition of obliges to them accept to accept of this price. When comes the quantity brought to market is juft fufficient to fupply the effedual demand and no more. to be either exadly. and the intereft of all other people that never fhould fall fhort of that demand. in bringing any commodity that the quantity never fhould exceed it is the effedlual deit mand . the intereft of the labourers in the one cafe. It is fuits itfelf to the the intereft of all thofe who employ their land. the intereft of the landlords will to prompt them wages or withdraw a part of their land . will occafion a petition than in that of durable commodities . muft reduce the price of the whole. its If at any time it fome of the component parts of rate. lefs. price muft be paid below their natural immediately If it is rent. lab6ur. The market price will fink more or lefs below the natural price. or ftock. all The whole the different quantity upon hand price. exceeds the effedual demand. or as nearly as can be judged the fame with the natural can be difpofed of for more. to market. lefs according as the greatnefs of the excefs increafes more or or according as to get it the competition of the fellers. The fame excefs in much greater comin the importation of oranges. are willing to ' ©9 it pay lefs. for example. will prompt them withdraw a part . this the market price naturally of. and to of their employers in the other. the importation of perifhable. than in that of old iron.

all is.70 THE NATURE AND CAUSES OF a part of their labour BOOK or ftock from this employment. fometlmes keep them fufpended a good Different accidents deal above it. If. the central price. But . at on the contrary. prices therefore. will foon different parts of price fink to their natural and the whole price to its natural price. The to natural price. naturally aims at bringing to always that precife quantity thither which may be fufficient fupply. the intereft of other landlords will naturally prompt for the raifing of this them is to prepare more land commodity. conftantly tending towards The manner whole quantity of Induftry annually employed in order this to bring any commodity to market. fufficient its fupply the effedlual demand. The its quantity brought to market will foon be no more than fufficient to fupply the efFedual demand. as It were. All the different parts of price will rife to their natural rate. may and fometlmes force them down even fomewhat obftacles below it. the fall fhort its <juantity brought to market fhould any time of the effedual demand. that demand. the intereft of all other labourers and dealers ftock in pre- will foon prompt them it to employ more labour and paring and bringing will foon be to market. they are it. and no more than fupply. It naturally fults iifelf in to the effedual demand. all rent. which the of commodities are continually gravitating. if it wages or profit. and the whole price to its natural price. fome of the comIf it ponent parts of is price mufl: rife above their natural rate. to The quantity brought thither All the rate. But whatever may be the which hinder them from fettling in this center of repofe and continuance.

demand : That of not only with the variations in the demand. quantity of the commodities brought to market will fometimes exceed a good deal. produce of equal quantities of it being always the fame or very nearly the fame. Even though their that demand therefore fhould to continue great always the fame. . But the fame number of fpinners and weavers produce the fame or very nearly the fame quantity cloth.^ ^' in different years produce very different quantities of commodities nearly will. and fometimes fpecies a good deal above the their natural price. of labourers in hufbandry in different years. In the other labour of induftry. exaftly fuited to the effectual demand.. rife fometimes a good deal below. or as nearly as price. The. It is will every year of linen and woollen only the average produce of the one fpecies of induftry which can be fuited in any refpe£t to the effectual demand j and as its adual produce than its is frequently much the greater and frequently much lefs average produce. and be either altogether. of. But in fome 71 will employments the fame quantity of induftry ^ ^. The price of the one fpecies of com- modities varies only with the variations in the the other varies. but with the much is greater and more frequent variations to in the quantity of what brought market in order to fupply that demand. while in others the fame. and fometimes effed. the to market price of the commodities likely to do fo too.THE WEALTH OF NATIONS. wine. hops. will market price will be fall liable fiudtuations. produce very different quantities of corn. every man's experience will inform him. is can be more While that demand con- therefore. it will produce always the fame. oil.ual fall fhort a good deal of the demand. can be judged the fame with the natural is That the price of linen and woollen cloth liable neither to fuch frequent nor to fuch great variations as the price of corn. tinues the fame. or very The fame number &c.

with work the wages of journeyM'ith done. for more work to be done than can be had. not with work to be done. is It raifes men There taylors. but to not to temporary and occafional. or with work raifes to be done. The occafional itfelf into is rent is lefs afFefled by them. by them landlord in its yearly rate. its no doubt affedled in yearly value by all the occafional and temporary : fluftuations in the market price of that rude produce but it is ieldom affedled leafe. It finks too the wages of the workmen employed in preparing Aach commodities. adjuft that rate. It finks the price of coloured filks and cloths. In fettling the terms of the the and farmer endeavour.ya THE NATURE AND CAUSES OF and temporary fludluations in the market price of any commodity fall chiefly upon thofe parts of its price which That part which refolves refolve themfelves into wages and profit. with work done. A rent which confifts either in a certain proportion or is in a certain quantity of the rude produce. an effedual demand for more labour. to the average and ordinary price of the produce. for which a all demand is flopped for fix mouths. Such fluiluations afFe£t both the value and the rate either of profit. is The market here under-ftocked labour. and thereby reduces the profits of the merchants who have any confiderable quantity of them upon hand. peihaps for a twelvemonth. A rent certain in rate or money in its not in the lead affeded by them either in its value. under-ftocked upon fuch pofTefs occafions) and augments the of the merchants who any confiderable quantity of It has no efFed upon the wages of the weavers. according the to their beft judge- ment. wages or of according as the market happens to be either over-ftocked or under-ftocked with commodities or with labour . The market with labour. A publick mourning is the price of black cloth (with which the market almoft always profits it. . not is under-ftocked with commodities.

it muft be acknowledged. yet fometimes particular accidents. it as a legacy to his pofterity. When by an increafe in the effectual demand. His extraordinary gains L .I. many new employ their flocks in the that. with good managelives. profit lafl can feldom be long kept. they may new can fometimes be able to keep the fo fecret for feveral years together. for a long time together. fometimes police.C HA V XI* p. a good deal above the natural price. fo If it was commonly known. the market price would foon be reperhaps for fome time even natural price. very little longer than they Secrets in manufadures are capable of being longer kept than fecrets in trade. keep up the market price. is and below it. the market price to rife a of fome particular commodity happens the natural price. ment. twelvemonth. and may long enjoy their extraSecrets of this ordinary profits without any rivals. natural caufes. rivals to their great profit would tempt fame way. if one may fay {o. and with labour. and fometimes particular regulations of may. thofe good deal above who employ their flocks in fupplying that market are generally careful to conceal this change.THE WEALTH OF NATIONS. A dyer who has found the means of pro- ducing a particular colour with the price of thofe materials ufe of. towards the natural price. which coft only half commonly made may. But is though the market price of every particular commodity this in manner continually gravitating. the effedlual demand being duced to the fully fupplied. dlties 73 The market is here overflocked both with commo. kind however. If the market at a great diftance from the refidence of thofe who fupply it. enjoy the advantage of his difcovery as long as he and even leave V'o L. in many commodities. and the extraordinary are kept.

that all the land in a great country. may not be fufficient to fupply the effedlual demand. and the of the flock which were em- ployed in preparing and bringing them to market. and as their whole amount bears. They properly confift in the high wages of that labour. according to their natural rates. Some natural productions require fuch a fingularity of foil and fituation. may' be is dif- pofcd of to thofe who are willing to give more than what fufficient pay the rent of the land which produced them. upon that account. Such commodities may continue . The wages of the labour and the of the flock employed ia bringing fuch commodities to market. however. are feldom out of their natural proportion to thofe of the other employments of labour and flock in their neighbourhood. The whole to quantity brought to market. The rent of the land like foil which affords fuch fingular and efleemed produdions. Such enhancements of of particular accidents. But as they are repeated upon every part of his ftock. the operation may fometimes laft for many years together. rent of fome vineyards in France of a peculiarly happy fituation. they are commonly confidered as extraordinary profits of flock. together with the profits wages of the labour. which is fit for pro- ducing them. the market price are evidently the efFeds of which. a regular proportion to it. on the contrary. Such effeft enchancements of the market price are evidently the of natural caufes which may hinder the effedlual demand from . bears fertile the and no regular proportion to the rent of other equally and equally well-cultivated land profits in its neighbourhood. therefore. for whole centuries it together to be fold at this high price refolves itfelf into the rent of land is is and that part of which in this cafe the part which generally paid above its natural rate.74 THE NATURE AND CAUSES OF gains arife from the high price which is BOOK paid for his private labour.

company has the fame efFed monopolifts. therefore. from ever being fully fupplied. number than might otherwife go in a lefs degree. have the fame tendency. A MONOPOLY The dities granted either to an individual or to a trading as a fecret in trade or manufactures. The fliip. The one upon every other occafion the higheft it which can be fqueezed out of the buyers. for ages to- gether and In whole claflies of employments. much above whether they ral rate. The is natural price. they will confent to give the fellers can The the loweft which commonly afford to take. y^ c and which may continue. or the price of free competition. but for is any confiderable time together. fully by never by keeping the market conftantly underftocked. and at the fame time continue their bufinefs. confift in wages or profit. greatly above their natu- The price of monopoly Is upon every occafion the higheft which on upon every can be got. fell their commothe natural price. the contrary. indeed. exclufive privileges of corporations. fupplying the efFe£tual demand. L 2 The . and may frequently. and raife their emoluments. though They are a fort of enlarged monopolies. tain both and main- the wages of the labour and the profits of the ftock their natural rate. or which. keep up the market price of particular commodities above the natural price. ha p. not occafion.THE WEALTH OF NATIONS. ftatutes of apprentlceall and thofe laws which reftrain. is is fuppofed. to operate for ever. the loweft which can be taken. employed about them fomewhat above Such enhancements of regulations of police the market price to may laft as long as the which give occafion them. in particular employments. the competition to a fmaller into them.

the perfons whofe intereft afFedled the lofs. This at leaft would be the where there was perfect The fame ftatutes of apprenticeflilp and other corporation laws a manufacture Is indeed. can feldom continue long below its natural price. from being employed about it. fo and would immediately withdraw either fo much land. employment. profits fmk wages of labour or the of flock below their natural 5 This . though it may continue long above. liberty. as in raifing them above their natural rate. therefore. demand. The of fuch regulations. when in profperity. and for feveral generations together. Is employments. to let them down a good As in the fo cafe they exclude many people from his employment. to and was fuppofed it commit the moft horrid in facrilege if for another) which can any particular either the rate. the number of thofe who are afterwards educated to the trade will natu- rally fult Itfelf to the effedual demand. would cafe foon rife to the natural price.7<5 THE NATURE AND CAUSES The OF market price of any particular cominodity. or fo much flock. can laft no longer than the lives of fome of the the bufinefs in the time of its workmen who were bred to profperity. when one it decays. in the other they exclude efFeit him from many however. When they are gone. Whatever part of it it was paid below the natural would immediately feel rate. Their operation In the one way but in the other it may endure for many centuries. or labour. enable the rate. workman deal below to raife his wages a good deal above their natural fometimes oblige him. The police muft be as violent as that of Indoftan or antient Egypt (where every man was bound he changed by a principle of religion to follow the occupation of his father. it. market much that the quantity brought to market would foon be no more than fufficient to fupply the efFedlual Its price. which. not near fo durable in finking the workman's wages below.

ing to their riches or poverty. ing the deviations. and in what manner riches or poverty. diff"erent in the employments of labour and yet a certain propor- tion feems commonly in it to take place between both the pecuniary wages niary in all the profits different all employments of labour. will appear hereafter. whether occafional or permanent. of the market price of commodities from the natural price. proportion feems to be little affeded by the riches or . endeavour and diftindlly as I can. I fiiall endeavour to explain what are the circumftances which naturally determine the thofe circumftances are affe£led rate of wages. and in aff"edl:ed what manner too thofe circumftances are by the like variations in the ftate of the fociety. Though different pecuniary wages and profit are very ftock . to explain. as fully variations. in the four following chapters. the caufes of thofe different First. by the by the ad- vancing. and the pecuthe different employments of ftock. This is all 77 that I think neceflary to beobferved at prefent concern- CHAP. clining condition. or declining ftate of the fociety. of component this of wages. The its natural price Itfelf varies with the natural rate of each parts. \ii. Secondly. fociety in and partly upon the different laws and policy of the which they are carried on. But though in many refpeds dependant upon the laws and this policy. profit. which I (hall endeavour to ftiow what are the circumftances naturally determine the rate of profit. and rent. and in every accordor de- fociety rate varies according to their circumftances. ftatlonary. nature of the different employments. This depends partly upon the proportion. ftationary. I fliall.THE WEALTH OF NATIONS. their advancing.

or de- clining but to remain the fame or very nearly the I fhall. Of the vm. and as the commodities produced quantities of by equal labour of things . ftationary. He has neither landlord nor Had this ftate continued. all in the third place. mafter to fhare with him. to All things would which the divifion of occafion. and which either raife or lower the real price of all the different fubftances which it produces. of things. TH E produce of labour conftitutes the natural recompence or wages of labour. en- deavour to explain this proportion. which precedes both the appro- In that original ftate priation of land and the accumulation of ftock.^8 THE NATURE AND CAUSES OF . the all wages of labour would have augits mented with thofe improvements in labour gives produdive powers. all by its advancing. fame in thofe different ftates. the whole produce of labour belongs to the labourer. Wages of Labour. the different circumftances which regulate In the fourth and laft place I fhall endeavour to (how what are the circumftances which regulate the rent of land. gradually have become cheaper. They would have been produced would naturally in this ftate by a fmaller quantity of labour.or BOOK poverty of that fociety . condition. CHAP.

But firft this original ftate of things. The ac- would be twice as eafy as before. In reality. tea times the original quantity of work in them would it. therefore. but that in a particular to double. as cheap. able was at an end. the landlord demands a' {hare of almoft the produce which the labourer can either raife. that in the greater part of employ- ments the productive powers of labour had been improved fold. Any particular therefore. for that of a day's labour in this particular one. long before the moft confider- improvements were made in the productive powers of labour. a pound weight. would appear to be it five times dearer than before. or though all things would have become cheaper in reality. however. In exchanging the produce of a day's labour in the greater part of employments. emhad ployment they had been improved only or that a day's it labour could produce only twice the quantity of work which done before. could not laft beyond the introdudion of the appropriation of land and the accumulation It of ftock. it and would be to no purpofe to trace farther what might have been its cffedts upon the recompeace or wages of as land all labour. they 79 would have been pur- chap. Let us fuppofe. As foon becomes private property. therefore. to tea- or that a day's labour could produce ten times the quantity it of work which had done originally . It quantity of other goods to purchafe it would require only half it. required five times the would be twice Though it. But fore. for example. things be exchanged for one another. purchafe only twice the original quantity in quantity in it. chafed likewife with the produce of a fmaller quantity. the quantity of labour either to purchafe or to produce quifition.THE WEALTH OF NATIONS. in appearance many things might have become dearer than be- have been exchanged for a greater quantity of other goods. or col- . in which the labourer enjoyed the whole produce of his own labour. for example.

unlefs he was to fhare in the produce of his a profit. and enjoys the whole produce of his own labour. Such cafes. indeed. It feldom happens that the perfon who wherewithal to maintain himfelf till tills the ground has he reaps the harveft. produce of almoft profit. twenty independant . are not very frequent. His of a maintenance is generally advanced to him from and the ftock mafter. the farmer intereft to who employs him. labour. however.So THE NATURE AND CAUSES OF \qQ_ BOOK from it. to maintain himfelf till it be compleated. or in the it adds to the materials upon which is beftowed and in this fliare confifts his profit. It fometimes happens. and the wages of labour. His rent makes the is firft dedudion from the produce of the labour which employed upon land. workmen ferve under a mafter for one that is and the wages of labour are every where underllood to . or unlefs his flock was to be replaced to This profit is makes a fecond deduction Irom the produce of the labour which employed upon land. belonging two diflind perfons. who would him with have no employ him. He is both mailer and workman. the profits of llock. to It includes what are ufijally two diflin£t revenues. and in every part of Europe. and their advance them the till wages and maintenance it be compleated. that a fingle independant work- man and has ilock fufficient both to purchafe the materials of his work. The all other labour is liable to the like dedudion of In all arts and manufadures the greater part to of the workmen ftand in need of a mailer materials of their work. value which He it (hares in the produce of their labour. or the whole value which it adds to the materials upon which it is bellowed.

8i what they ufually are. when the labourer is one perfon. can combine much more and the law. In We have no ads of parliament againfl: combining to raife to it. — >---> What are the common wages of labour depends every where parties. it has been faid.THE WEALTH OF NATIONS. but conftant and uniform combination. not to Vol. . though they did not live a employ a the ftocks workman. and ^ ^- HA p. . or at lead does not prohibit it their combinations. The eafily being fewer in number. defire to get as much. It is not. We upon rarely hear. But whoever imagines. In the long-run the is workman . as ignorant of the world as of the fubjed. to be. any a year without employment. mafters. a far- mafter manufadurer. fubfift a Many workmen month. and fcarce could not fubfift a week. upon pute. could generally few could year or two upon which they have already acquired. is that mafters rarely combine. the mafters as little as The former are difpofed to combine in order to raife. may be as neceftary to his mafter as his mafter is to him but the neceflity notfo immediate. fingle or merchant. difficult to forefee which of the two parties muft. Mafters are always and every where m a fort of tacit.1. to give The workmen poffible. all ordinary occafions. M raifc . have the advantage in the dif- and force the other into a compliance with their terms. while prohibits thofe of the workmen. upon the contrail ufually made between thofe two interefts are whofe by no means the fame. authorifes. though frequently of thofe of workmen. the owner of the ftock which employs him another. however. the latter in order to lower the wages of labour. this account. but many againft combining fuch dif- putes the mafters can hold out a much longer. lower the price of all work mer. befides. of the combinations of mafters . A landlord.

they Such combinations. hear of this combination. vifions . raife the price of their la- Their ufual pretences fometimes the great fometimes. labourers. partly from the neceflity which the greater part of the workmen are under of fub. partly from the interpofition of the civil magiftrate. they In order to bring the point to the loudeft cla- have always recourfe mour. indeed. To. the natural ftate of things which nobody ever Mafters too fometimes enter into particular combina- to fink the wages of labour even below filence this rate. which. without refiftance. tions fay. partly from the fuperior fteadinefs of the mafters. But whether their combinations be ofFenfive or defenfive of. The mafters upon thefe occafions are juft as clamorous upon the other fide. very feldom derive any from the violence of thofe tumultuous combinations. though feverely are never heard of by other people. TV^^fe till are always conduced with the utmoft execution. and a fort of reproach to a mafter among his neighbours and equals. as they felt fome- times do. without any provocation of this kind. however.82 THE NATURE AND CAUSES OF ralfe the BOOK wages of labour above is their actual rate. and one may hears of. the high price of pro- profit which their mafters make by their work. mitting . or frighten their mafters into an immediate compliance with their demands. accordingly. They are defpetate. and journeymen. becaufe it We is the ufual. who fometimes too. by a contrary defenfive combination of the workmen bour. and the rigorous execution of thofe laws which have been enaded with fo much feverity againft the combinations of fervants. they are always abundantly heard to a fpeedy decifion. and never ceafe to call aloud for the afliftance of the civil magiftrate. advantage The workmen. violate this combination every where a moft unpopular adion. feldom. who muft either ftarve. che moment of when the workmen yield. combine of their own accord to are. and a£t with the folly and extravagance of defperate men. are frequently refifted by them. and fometimes to the moft fhocking violence and outrage. . and and fecrecy.

But which it though in difputes with tlieir is workmen. up a family. may be enabled to bring up two the labour of the wife. generally end in nothing. 83 C II A P. muft. But one-half the children born. but the punishment or ruin of the ringleaders. it is com- puted. Mr. to generation. there hov?ever a certain rate below for feems impoffible to reduce. attempt to rear at leaft four children. They muft even upon moft it occa- fomewhat more other wife would be impoffible for him laft to bring up a family. the labour of the hufband and wife together muft. mlttlng for the fake of prefent fubfiftence. one with another. of manhood. therefore. even in the loweft fpecies of common labour. on account of her tendance on the children. Thus far at leaft feems certain. is The labour of an able-bodied flave. Cantillon feems. die before the age The pooreft labourers. in neceflary at- order that one with another they children . . be able to earn fomething more than what is precifely necefl^ary for their own maintenance J but in what proportion. upon double their this ac- fuppofe that the loweft fpecies of at leaft muft every where earn common labourers own maintenance. to be computed worth double maintenance . matters muft any confiderable time. in order that two may have an equal chance of living four children. it to is that age. . the ordinary wages even of the lowefl: fpecies of labour. the fame author adds. being fuppofed no more than fufficient to provide for herfelf. and his wages muft at leaft fufficient to maintain him. whether in that above M 2 mentioned. in order meaneft labourer. generally have the advantage. he thinks. and that of the than that of that. A MAN be fions be muft always live by his work. may his be nearly equal to that of on« man.THE WEALTH OF NATIONS. firft and the race of fuch workmen could not beyond the count. But the neceffary maintenance of fuppofed. cannot be worth lefs an able-bodied to bring flave. according to this account.

and enable them to their is wages confiderably above confiftent with this rate . cannot increafe but in proportion to the increafe of the funds which are payment of wages. or monied man. who to bid againft one another in order to get workmen. I fhall BOOK not take upon me to deter- There are certain circiimftances. fuch as a weaver is or fhoe- maker. or in any other. naturally increafe the Increafe this furplus. independant workman.. When the landlord. he employs either the whole or a part of the furplus maintaining one or more menial fervants. for thofe who live by wages. fecondly. continually infor a creafing . when every year furniflies employment greater number than had been employed have no occafion fcarcity to the year before. annuitant. over and above what the ftock which neceflTary for the maintenance and. number of When an. and thus voluntarily raife break through the natural combination of mafters not wages- The demand deftined for the firft. mine. in any country the demand who is live by wages j journeymen. and he wilL thofe fervants. however. has got more ftock than what fufEcient to purchafe the . for thofe When labourers.84 THE NATURE AND CAUSES OF mentioned. it is evident. of hands occafions a competition among mafters. evidently the loweft which common humanity. fervants of every kind. over and above what is neceffary for the employment of their mafters. has a greater maintain his in revenue than what he judges fufficient to own family. the to raife their combine in order workmen The wages. which fometimes raife give the labourers an advantage. is Thefe funds are of two kinds j is is the revenue which .

a much richer country than any part of North America* The wages of labour. increafe. * This was written in 1773. the materials of his B^ till own work. The demand try. or in thofe which are growing higheft. than in England. a day. equal to four journeymen taylors. can difpofe of it. rich the fafteft. naturally increafes with the increafe of national wealth. ten (hillings and fixpence currency. theydifturbances. equal to two fhillings fterling. equal to about two fhillings and ten pence fterling. fixpence fterling. It tinual It is is not the a£lual greatnefs of national wealth. who live by wages. for thofe who live by wages. accordingly. prices. and cannot poffibly increafe with- out it. and to to maintain himfelf he CHAP. neceflarily increafes with the increafe of the revenue and ftock of every coun- and cannot poffibly increafe wi-thout is and ftock thofe the increafe of national The increafe of revenue wealth. therefore. fhip carpenters. Increafe furplus.. but its con- which occafions a rife in the wages of labour. and wages are faid to be as high is- ia the other colonies as in New York. England is in the prefeni. {hillings currency. The demand for it. before the commencement of thtprefent have- . five fhillings currency. common labourers earn * three fhillings and fixpence currency. with equal in all to fix a pint of rum worth fterling. therefore. A known In the worft feafons. in order this make a profit by their work. in the richeft countries. are all Thefe above the London price . thriving.THE WEALTH OF NATIONS. he naturally employs one or more journeymen with the furplus. wages of labour are times. however. The price of provifions every where in North America dearth has never been much lower there. that the^ certainly. are much higher in North America In the province of New York. and he will naturally increafe the number of his journeymen. but in the moft not. eight and fixpence fterling. than in any part of England. fliillings and fixpence houfe carpenters fliillings> and bricklayers.

In Great Britain and moft other European countries lefs they are not fuppofed to double in than it five hundred years. But though North America is not yet fo rich as England. wonder that the people in North America fhould generally marry very young. is. therefore. In the Britifh colonies in North America. among the middling or little of people in Europe.86 THE NATURE AND CAUSES i^^yg OF lefs for BOOK always had a fufEciency for themfelves. be higher than its real any where in the mother country. Labour is there fo well rewarded that a numerous family of children. fource of opulence and inftead of being a burthen. muft be higher in a ftill life which it conveys greater proportion. before it can leave their houfe. money price of labour. The value of children is the greateft of all encouragements to marriage. tbat they double in twenty or prefent times is five and twenty years. is a profperity to the parents. the real command to the of the neceffaries and conveniencies of labourer. deftined for maintaining them. would have fo is chance for a fecond hufband. new inhabitants. who. has been found. by fuch Notwithftanding the great increafe occafioned is early marriages. there a continual complaint of the fcarcity for labourers. frequently fee there from fifty to a hundred. Though . iprofperity of The moft decifive mark of the any country is the increafe of the number of its inhabitants. defcend- own body. We cannot. ftill fafter than . though If the exporit tation. therefore. computed be worth a hundred pounds clear gain to them. The demand increafe. and advancing with much greater rapidity to the further acquifition of riches. faid. feems. and fometimes ants from their many more. it is much more thriving. Nor in the this increafe principally owing to the continual importation of the fpecies. is The to labour of each child.they can find labourers to employ. price. the funds it of hands in North America. five A young widow with four or inferior ranks young children. but to the great multiplication of it is Thofe who live to old age. there frequently courted as a fort of fortune.

to have been long ftationary. induftry and populoufnefs. which is with that common humanity. almoft in the fame terms fcribed travellers in the prefent times. would. chap. the number of labourers employed every year could eafdy fupply. has been long ftationary. and up in the difficulty which a labourer finds in bringing a family in China. and even more than fupply. may be they have continued for feveral cen- of the fame. defcribes cultivation. the number wanted the following year. China has been long fertile. on the contrary.THE WEALTH OF NATIONS. by digging the ground a of rice in is. naturally multiply beyond their employment. the competition of the of the mafters would foon reduce them to confiftent richeft. ' . is. The all travellers. There could feldom be any fcarcity of hands. heft cultivated. Marco its Polo. the revenue and of the greatcft extent. There would be a conftant fcarcity of to bid againft employment. many If other refpefts. whole day he can get what the evening. It feems. in the world. poflible. Inftead of waiting indolently in their workhcufesj * . who vifited it more than by five hundred years ago. The condition of artificers if worfe. ftill will purchafe a fmall quantity he is contented. one of the one of the moft moft induftrious and moft populous countries however. The hands. or very nearly of the fame extent. It in which they are de- had perhaps even long before his time acquired that full complement of riches which the nature of accounts of in the its laws and inftitutions permits inconfiftent in it to acquire. one another in If in fuch a country the fufficient to wages of labour had ever labourers and this loweft been more than to bring intereft maintain the labourer and to enable him the rate up a family./ for the pay- ment of wages. nor could the mafters be obliged to bid againft one another in order to get them. agree low wages of labour. Though if It 8y yet the < the wealth of a country fhould be very great. in this cafe. and the labourers would be obliged order to get it. but turies if inhabitants. wages of labour very high in we muft not exped it. The funds deftined ftock of its to find .

In the faid. negle£ted. as the though half piUrid and {linking. expofed in the ftreet or drowned is like puppies in the water. however. for the calls BOOK . therefore. The which they naftieft fo fcanty that they are eager to fifl-Ti up the garbage thrown overboard from any European fliip. offering their fervice. about the ftreets as ia Europe. but live little conftantly in fubfiftence fifhing boats find there upon the is rivers and canals. the carcafe of a dead is dog or to cat. Its towns are no-where deferted by their are inhabitants. all Every year the different clafles demand for fervanls and labourers would. neighbourhood of Canton many hundred. for example. notwithftanding their fcanty fubfiftence. it is commonly many thoufand families have no habitation on the land. fliift muft fome way or another make to keep up their ufual numbers. and the funds deftined for main- taining clafs it muft not. The performance of this horrid office even faid to be the avowed bufinefs by which fome people earn their fubfiftence. of their cuftomers. The poverty of the lower ranks of people in China far furpafles that of the moft beggarly nations in Europe. does not backwards. not by the profitablenefs of children. China.88 THE NATURE AND CAUSES OF houfes. Marriage is couraged in China. and as it were begging employment. though feem to <^o it may perhaps ftand ftlll. to continue their race fo far as But the It would be otherwlfe in a country where the funds deftined for the maintenance of labour were fenfibly decaying. as welcome them moft en- wholefome food to the people of other countries. tools they are ^' continually running with the of their refpedive trades. Any carrion. be fenfibly diminiftied. The loweft of labourers. The lands which had once been cultivated The fame or very nearly the fame annual nowhere labour muft therefore continue to be performed. in 3 . confequently. but by the In all great towns feveral are every night liberty of deftroying them.

conftitution The which difi'erence between the genius of the Britllh protedls and governs opprcfles iliuf- North America. or by the perpetration perhaps greatefl: enormities. • Vol. Many would terms. number of inhabitants in the country was reduced to what could eafily be maintained by the revenue and ftock which remained in either the tyranny or calamity it. the natural fymptom that things are at a ftand. and where. fo fymptdm of increafing national wealth. the neceflary The The is liberal it is reward of labour. cannot perhaps be better trated than by the diff'erent ftate of thofe countries. as the natural it is efFed. Many who find loweft. would be glad in the The loweft clafs being not only overftocked with all its own the workmen. faft and their ftar- vlng condition that they are going backwards. be lefs than it had been the year before. or feek a fubfiftence either by begging. and of fome other of the Englifli fettlements in the Eaft Indies. three or four hundred thoufand people die of hunger in one year. fcanty maintenance of the labouring poor. CHAP. we may be afl"ured that the funds deftined for the maintenance of the faft labouring poor are decaying. but with the overflowings of the other clafles. "but not be able to find employment even be driven to upon of the thefe hard would either ftarve. fliould not be very difficult. notwithftanding. clafTes 89 of employments. it. and which had efcaped refl:.THE WEALTH OF NATIONS. and mortality would clafs. on the other hand. Want. till immediately prevail in that to all and from thence extend themfelves the the fuperior claflles. therefore. In a fertile country con- which had before been much depopulated. and that of the mercantile company which and domineers in the Eaft Indies. N In . clafles. had been bred in the fupeiior their not being able to to feek it employment in own bufinefs. competition for employment would be fo great in as to reduce the wages of labour to the mofl: miferable and fcanty fubfiftence of the labourer. where fubfiftence. famine. which had deftroyed the Thig perhaps is nearly the prefent ftate of Bengal. fequently. I.

to be evidently more than what is precifely neceflary to enable the fatisfy ourfelves labourer to bring up a family. ought to fave part of his his winter expence . in the prefent times. is First. There are many plain fymptoms that the in this wages of labour are nowhere lowefl rate country regulated by this which is confiftent with common humanity. however. therefore. the labouring If in thefe places. Thefe vary everywhere from to frequently from price of month month. and in afliuence in thofe of extraordinary cheapnefs. between fummer and winter wages. But in many the money labour remains uniformly the fame fometimes for half a century together. is neceflary to maintain his family through the whole A flave.90 THE NATURE AND CAUSES OE In Great Britain the wages of labour feem. Secondly. fore. being when expence is is loweft. Summer wages are always higheft. provifions during thefe ten years paft has not 8 The high price of in many parts of the kingdom . or one abfolutely dependent on us for im- mediate fubfiftence. they muft be at their eafe in times of moderate plenty. it feems evident that they are . A labourer. almofl: every part of Great Britain there a dif- even in the loweft fpecies of labour. not regulated by what tity neceffary for this expence but by the quanit and fuppofed value of the work. places the wages of labour do not in Great Britain fluc- tuate with the price of provifions. the maintenance of a family higheft is moft expenfive in winter. this Wages. fubfiftence His daily would be proportioned to his daily necefFities. this In order to upon point it will not be neceflary to enter into any tedious or doubtful calculation of what it is may be the loweft fum upon which poflible to do this. may be faid indeed. in tindion. fummer wages in order to defray and that through the whole year they do not exceed what year. But on account of the extraordinary expence of fewel. there- poor can maintain their families in dear years. would not be treated in this manner. year to year.

not only from one parilh to another. fenfible rife in . but from one end of the to the other. Thirdly. gi kingdom been accompanied with any has. as all kingdom. as the price of provifions varies more from year to fo. in to the increafe of the the money C H a p. on the other hand. labour through the greater part of the low country of Scot- where it varies a good deal it lefs than in England. indeed. for reafons which cafion to fhall have oc- explain hereafter. appears evi- dently from experience that a man is all forts of luggage the moft difficult N 2 . to The prices of bread and butcher's meat are generally the fame or very nearly the fame through the greater part of the united kingdom. faid would After that has been it of the levity and inconftancy of human of nature. the wages place than the price of pro- of labour vary more from place vifions. are generally fully as cheap or cheaper in great towns than in the I remoter parts of the country. the way which the labouring poor buy all things. its At falls its to fourteen and Ten-pence may be reckoned price in Edinburgh and neighbourhood. fome owing probably more demand for labour than to that of the price of provifions. Thefe and moll other things which are fold in by retail. its But the wages of labour in a great fifth part. which feems not always fufficient tranfport a cafion fo man from one parifti to another. neighbourhood are frequently a fourth or a five and twenty per cent higher than at a few miles the a Eighteen pence a day may be reckoned common few miles price of labour in diftance it London and its neighbourhood. At a few miles diftance it falls to eight pence. the ufual price of com- mon land. fifteen pence. town and twenty or diftance. year than the wages of labour. would neceflarily octhe moft great a tranfportation of bulky commodities. almoft from one end of the world foon reduce them more nearly to a level. is Such a to dift'erence of prices.THE WEALTH price of labour. It OF NATIONS.

Grain. to be tranfported. or in proportion its to its quality. If the labouring poor. but the effect of the dlfFerence I wages . muft be in affluence Oatmeal indeed fupplies the common people in Scotland with the greateft and the beft part of their food. can maintain their families in the one part of the united kingdom. the country fromrn proportion to its quality . can maintain their families in thofe parts of the kingdom where the price of labour is loweft. Fourthly.the it. of their fubfiftence in their This difference. than in England. they mull be in affluence where it is higheft. or even to the meafure of weight. which it comes . by a ftrange mifapprehenfion. on the contrary. The of labour. It is have fre- quently heard it not becaufe one man keeps a coach while his neighbour walks a-foot. however. the variations in the price of labour not only do not correfpond either in place or time with thofe in the price of provifions. But Englifli corn muft be fold dearer in Scotland. or fure of its meaprice bulk. whence Scotland receives almoft every year very large fupplies. that. the country to which it is brought. therefore. in the mode not the caufe.92 THENATUREANDCAUSESOF difficult BOOK I. and it cannot be fold dearer in Scotland than Scotch corn that comes to the fame market in competition with The fo quality of grain depends chiefly it upon the quantity of flour or meal is which yields at the mill. that the 4 one . which is in general much is inferior to that of their neighbours of the fame rank in England. Is dearer in Scotland than in England. though. the food of the common people. it is generally cheaper in reality. is dearer in England than in Scotland* therefore. reprefented as the caufe. and in this refped Englifh grain much fuperior to the Scotch. If the labouring poor. but they are frequently quite oppofite. they in the other. in proportion to the though often dearer in appearance.

fometimes a fhilling about Edinburgh. they muft be much more at their eafe century.THE WEALTH OF NATIONS. cannot it is. ten-pence. one is 93 rich and the other poor . This is a matter of fadt which . flill Three fhillings a week. manufa(3:ures and commerce began much earlier. could bring their families lafl: then. fiars. the mofl ufual day-wages of common labour through the greater part of Scotland were fixpence in fummer and five-pence in winter. But though it certain that in both parts of the united kingdom grain was fomewhat it dearer in the lafl century than in the prefent. Ayr-fliire. In England the improvements of agriculture. of grain in every different county of Scotland. If the labouring poor. is equally certain that labour was up now. and probably in mofl: other parts of Europe. and becaufe the other is poor he walks a-foot. much In the cheaper. in the counties which border upon England. there is With is regard to France the clearefl proof. therefore. very nearly. in rife probably on account places of that neighbourhood. more with regard to Scotland than with regard to England. of the different If fuch it. in Scotland fupported by the evi- dence of the publick according to the forts annual valuations made upon all oath. and a few in the other where there has lately been a confiderable demand for labour. acStual ftate of the markets. the fame price continues to be paid in fome parts of the Higheight- lands and Weftern Iflands. than . &c. a coach. but becaufe the one is rich he keeps CHAP. dire£l proof I could require any collateral evidence to confirm would obfcrve that this has likewife been the cafe in France. taking one year with grain was dearer in both parts of the united kingdom proof of than during that of the prefent. Carron. about Glafgow. the courfe of the lafl century. During another. now admit of any ftill reafonable doubt decifive It is and the if poffible. Through the greater part of the low country the moft ufual wages of common labour are now pence a day .

it mufl. it If they cannot earn this by mull make up. and confequently its price. and mother. they fteallng. Both fuppofe the weekly expence of fuch families to be about twenty-pence a head. In the century. The demand for labour. to afcertain how much. though. which he fuppofed perfons. They have it is rifen too confiderably fince that time. who wrote in the time computes the neceflary expence of a labourer's family. in Burn's Hiftory of the Poor-laws. therefore. on account of the greater more difficult variety of wages paid there in different places. cannot be afcertained very accurately any where.94 THE NATURE AND CAUSES OF than in Scotland. though different in appearance. as well as in the prefent. * See his different prices fcheme for the maintenance of the Poor. the wages of labour were higher in England than in Scotland. be obferved. correfponds very nearly at bottom with that of judge Hales. being . of three and a half His calculation. one with another. in fome fcarce places fo more. to confifl:. fix and two not able. whofe extolled fldll in political arithmetick is by Dodor Davenant. or twentytheir labour. Both the pecuniary income and expence of fuch families have increafed confiderably fince that time through the greater part of the kingdom . Lord Chief Juftice Hales. either by begging or He much la- appears to have enquired very carefully into this fubjedl *. two children able week. The price of labour. laft mufl neceflarily have increafed with thofe improvements. Gregory King. fo Mr. the father to do fomething. he fuppofes. at ten fhillings a pounds a year. of Charles II. In i688. as and in fome lefs though perhaps accounts of the any where much fome exaggerated lately prefent wages of labour have reprefented them to the publick. the pay of a foot foldier was the fame as in the prefent times. it In 1614. confifling of fix perfons. the rank of people are commonly drawn. computed the ordinary income of bourers and out-fervants to be fifteen pounds a year to a family. eight pence a day. accordingly. firfl When it was eflablifhed would naturally be regulated by the ufual wages of from which foot foldiers common labourers.

and thofe in the manufa£lures of the and better inftruments of with cheaper agreeable fait. which the labouring is fo poor are under any necefTity of confuming. do not at prefent. fome variety of food. The greater part of the apples and even of the onions confumed in Great Britain were in the laft century imported from Flanders. during the courfe of the prefent perhaps in a ftill greater proportion than its money price. leather. p. being often paid at the gj C h a ^- fame place and for the fame abilities fort of labour. has often pretended The cefTaries real recompence of labour. cabbages. that we can pretend to deterto fliow that mine is what are the moft ufual . can- and fermented liquors have. but the mafters. coft half the price which they ufed to do thirty or forty years ago. from the taxes which have been however. through the greater part of the kingdom. The quantity of thefe. All of garden has become cheaper. but many other things from which the induftrious poor derive an agreeable and wholePotatoes.THE WEALTH OF NATIONS. — i^— — or hardnefs of all Where wages are not regulated by law. as well as with many Soap. and experience feems it law can never regulate them properly. the conveniencies of life real quantity it of the ne- and which can procure to the century. have become for example. The great im- provements in the coarfer manufadlures of both linen and woollen cloth furnifh the labourers with cheaper and better cloathing coarfer metals. though to do fo. but fort things which were formerly never raifed but by the which are now commonly fluff too raifed by the plough. laid upon them. fpade. dles. has. very fmall that the . not only according to the different according to the eafinefs of the workmen. a great deal cheaper. carrots. trade. Not only grain has become fomewhat cheaper. and convenient pieces of houfliold furniture. The fame thing may be faid of turnips. indeed. chiefly become a good deal dearer. increafed labourer.

feems always to weaken and frequently deftroy altogether the powers of generation. cloath and lodge the whole body of the people. fo thofe of in- frequent among women Luxury of fafhion. Barrennefs. No fociety can furely be flouriftiing and happy. Ihould have fuch a fhare of the produce of their own labour as to be thenjfelves tolerably well fed. Is this improvement in the circumftances of the lower ranks of the people to be regarded as an advantage or as an inconveniency to the fociety labourers The anfwer feems at firft fight abundantly plain. may convince not the money price of labour only. but equity. make up the far greater ? part of every great political fociety. cloath- ing and lodging which us that it is fatisfied them in former times. and is generally exhaufted by two or three. ftances But what improves the circumas of the greater part can never be regarded an inconveniency to the whole. though It it no doubt difcourages. prevent marriage. that they who feed. befides. does not always to generation.96 THENATUREANDCAUSESOF i\yQ BOOK Increafe in their price does not compenfate the diminution in that fo of many itfelf other things. The common complaint that luxury ex- tends even to the lowed ranks of the people. and that the la- bouring poor will not now be contented with the fame food. while a woman frequently bears more than twenty incapable of bearing pampered fine lady is often any. is very rare it among ferior ftation. and workmen of different kinds. But . feems even to be favourable A half ftarved Highland children. while enflames perhaps the to paflion for enjoyment. of which the It is far greater part of the members are poor and miferable. but its real recom- pence which has augmented. in the fair fex. cloathed and lodged. Servants. Poverty.

C H a . In foundling hofpitals. a fmaller proportion of their children arrive at maturity. p. and confequently to bring up a greater number. extrcainly unfavourable to the rearing of children.THE WEALTH OF NATIONS. they have never been able to fupply with drums and it. but in fo cold a It is and fo fevere a climate. and no fociety fpecies it can ever multhe beyond But in civilized is only among inferior ranks of people that limits to the the fcantinefs of fubfiftence can fet further multiplication of the human fpecies . and among ftill the children greater than brought up by parifh charities. feems. though it does not prevent the generation. is feldom feen anywhere than it about a barrack of foldiers. foon I withers and dies. told. the mortality is among thofe of the common people. however. who than cannot afford to tend them with the fame care as thofe of better flation. This great mortality. however. But plant is 97 is poverty. and it can do fo in no other children way than by deftroying a great part of the which their fruitful marriages produce. where be found chiefly among the children of the common more people. by enabling them to provide better for their children. have been frequently Highlands of Scotland to mother who has borne Several officers of great recruiting their regi- twenty children not have two experience have aflured me. naturally Vol. means of it. in the not uncommon. Every to the tiply fpecies of animals naturally multiplies in proportion their fubfiftence. Very few of them. The liberal reward of labour. O . In fome places one half the . that fo far from it ment. foil The tender _ ^ j produced. arrive age of thirteen or fourteen. I. and in al in many- mod all places before will every they are nine or ten. for a alive. Though their marriages are generally fruitful thofe of people of fafliion. fifes from all the foldlers children that were born in A greater number of at the fine children. children born die before they are four years of age places before they are feven.

lefs If the reward fliould at any time be than what was requifite for this purpofe. to continue the race of journeymen and fervants. according as the increafing. and altogether flationary in the lafl. whiclx renders it rapidly progrefhve in the firft. neceflarily it the production of quickens it when faft. ©f his matter. and in China. as much expence of his mafler as that of the former. but that of a free fervant is at his is. much underftocked with labour in the one and its fo much It is overftocked in the other. the deficiency of hands would foon raife it and if it fhould at any time be more. flow and gradual in the fecond. But though the wear and s tear of a free fervant be equally at the expence of . is at the expence expence. reward of labour muft neceflarily encourage in fuch a manner the marriage and multiplication of labourers. any other commodity. in reality. it their exceffive multiplication would foon lower be fo to this neceffary rate. in North America. diminifhing. as tinually increafing may enable them to fupply that con- demand by a continually increafmg population. It deferve& ^ remarked in the too. and flops it men when it of advances too It is this demand which all regulates and deter- mines the of propagation in the different countries the world. as would foon force back price to that proper rate in this which the circumftances of the that the fociety required. however. or ftationary demand of the fociety may happen to require. The wages paid to journeymen and fervants of every kind mufl: be fuch as may enable them. fl:ate goes on too flowly. If this demand continually increafing. one with another. The wear and tear of a flave. that neceflarily does this as nearly as pof- proportion is which the demand for the labour requires. own The wear and at the tear of the latter. The market would cafe.98 THE NATURE AND CAUSES OF naturally tends to be fible BOOK v__-^!— to widen and extend thofe it limits. in Europe. it has been faid. like that for manner demand regulates for men.

diforders which generally introduce ceconomy of the naturally : themfelves into the management of the former attention of The ftrid frugality eftablifli and parfimoniou* in the poor as naturally different themfelves that of the latter. as it is it is the effed of increafing wealth. declining. that the work done by freemen comes cheaper by flaves. perhaps. I from the experience of all ages and nain tions.THE WEALTH of his mafter. It is hard prothe the in the ftationary. effect To complain of it is to lament over the necelfary and caufe of the greateft publick profperity. and Philadelphia. melancholy. pofe muft require very different degrees of expence to execute It appears. It is the end than that performed found to do fo even at Bofton. and mifcrable in the declining ftate. free managed by the prevail in the man himfelf. if I may fay -. The liberal reward of labour. therefore. fo. '_r the wear and tear of the flave. fo the caufe of increafmg population. to be remarked. New York. where the wages of common labour are fo very high. flave. believe. of the great body of the people. its full rather than when it has acquired complement of riches. The rich. feems to be the happieft and the moft comfortable. The ftationary O 8 The . that is it i« in the progreffive while the fociety advancing to the further acquifition. him much is 99 generally cofts lefs than that of a chap. accordingly. Under fuch management. That ing the fame office with regard to the free man. It deferves ftate. commonly managed by a deftined for performis negligent mafter or carelefs overfeer. the fame purit. that the condition of the labouring poor. ' The fund deftined for replacing or repairing. it OF NATIONS. The dull greffive ftate is in reality the chearful and the hearty ftate to all is . the different orders of the fociety.

is means the with the greater part. cordingly. their officers have frequently been obliged with the undertaker. are paid by the piece . of artificers is fubjed to fome peculiar infirmity occafioned culiar fpecies by exceffive application to their peItalian phyfician. quality. We do not us. diligent. in the neighbourhood of great towns.. and to ruin their health and conftitution in a is few not A carpenter in London. and foldiers have been employed in fome particular of liberally paid to ftipulate by the piece. an eminent has written a particular book concerning fuch difeafes. however. than in remote country places. on the contrary. of work. in England.lOO THE NATURE AND CAUSES OF The fo it liberal reward of labour. and of ending his days perhaps in eafe and plenty.work themfelves. for example. acworkmen more adlive. people. animates him to- exert that ftrength to the utmoft. than where they are low. This. Some* thing of the fame kind happens in many other trades. Till this ftipulation was made. and in fome other places. in which the workmen fadlures. and expeditious. which. Workmen. than in Scotland. wherever wages are higher Almoft every clafs than ordinary. improves in proportion to the encouragement fubfiftence increafes the A plentiful bodily ftrength of the labourer. Ramuzzini. according to the jate at which they were paid. Some workmen. indeed. when by no they can earn in four days what will maintain them through the week. that they fhould not be allowed to earn above a certain fum every day. increafes the induftry of the common The wages of it labour are the encouragement of induftry. they are liberally paid by the piece. fiippofed to laft in hh utmoft vigour above eight years. like every other human receives. mutual . we ftiall always find the Where wages are high. reckon our foldiers the moft induftrious fet of people among forts Yet when work. as they generally are in manu- and even in country labour. and the comfortable hope of bettering his condition. are very apt to over. as it encourages the propagation. will be idle the cafe other three. when years.

quences are often dangerous. continued for days together. and a fcanty one quickens induftry. it is pretended. it A tiful fubfiftence. almofl always. and fometimes fatal. by force or by fome flrong neceflity. it is to be obferved. men in than when they they are in good general fhould are well fed. is frequently the real caufe of the idlenefs of the other of. which requires but not complied be relieved by fome indulgence. which. as to be able to work conftantly. In cheap years. therefore. is almofl: irto It is the call of nature. when they are frequently fick than when. feems not very probable. If it is fometimes too of with. three. of dearth. relaxes. bi-ing on the peculiar infirmity of If mafters would always liften to the didlates of reafon and humanity. fo much and fo loudly complained feveral Great labour. the trade. if not reftrained refiftible. will in every fort of trade. the confeas and diverfion. not only preferves his health the longeft. mutual emulation and the ed defire of greater gain. is either of mind or body. their has been concluded. Years are generally they are generally in good health. and fuch fooner or later. workmen are generally more plen- and in dear ones more induftrious than ordinary. men naturally followed by a great defire of relaxation. diffipation fometimes of eafe only. work when they are ill fed when they are difheartened than when. application during week. among the common people . in moft. That a little more plenty than ordinary may it render fome workmen better idle. frequently loi prompt- ^ *? A P« them to over-work themfelves. greateft quantity of work. fpirits. that the man who works executes the moderately. be found. I believe. It than to animate the application of many of their workmen. Idle. Exceffive and to hurt their health by four days of the exceffive labour. but that fhould have this efFedl upon the greater part. fo they have frequently occafion rather to moderate.THE WEALTtI OF NATIONS. in the courfe of the year. cannot well be doubted or that . but.

commend the former as befides. More employment than can eafily get it . and truft their fubfiftence to what they can make by provifions. and find them more humble and dependant in the former than in the latter. frequently rifes in cheap years. deftined for the maintenance of fervants. . The demand for fervants increafes. Masters of all forts. Farmers upon fuch occafions expedl more profit from their corn by maintaining a few more labouring fervants. have another reafon for being pleafed with dear years. difpofes mafters rather to diminifh than to increafe the number of thofe they have. more favourable largeft to induftry. two of the of mafters. Landlords and farmers. by diminifliing the funds deftined for the maintenance of fervants. But the fame cheapnefs of is by increafing the fund which encourages mafters. many are willing to take upon lower terms than ordinary. to farmers employ a greater number. efpecially. therefore. But the high price of provifions. the difficulty and uncertainty of fubfiftence make all fuch people eager to return to fervice. their own induftry. They clafles naturally. poor independant little workmen frequently confume the flocks with which they had people want it ufed to fupply themfelves with the materials of their work. labour. frequently make better bar- gains with their feirvants in dear than in cheap years. fail to diminlfli BOOK In years of plenty. than by felling it at a low price in the market. In years of fcarcity.102 THE NATURE AND CAUSES OF people years of ficknefs and mortality. therefore. while the number of The price of thofe who off"er to fupply that demand diminifhes. In dear years too. and the wages of both fervants and journeymen frequently fink in dear years. fervants frequently leave their mafters. and are obliged to become journeymen for fubfiftence. therefore. which cannot the produce of their induftry.

by comparing the quantity and value of the goods made manufadures. is likely to be flill greater. to year. than to imagine that men in general fliould work lefs when they work for themfelves. in Mr. one of linen. All the three feem to be ftationary manufadures. fervants of kinds. Cheap years tend to to increafe the proportion of inall dependant workmen journeymen and it. and that has always been greateft in the and leaft in the deareft years. in his feparate. The rents of the one and the profits of the other depend very much upon the price of provifions. Nothing can be more abfurd. and another of upon thofe different occafions in three different at of coarfe woollens carried on filk. MeUance. thofe three manufadures has generally been greater it in cheap than cheapefl:>.. however. which copied from the regifters of the public offices. Etienne. The fuperiority of the independant workman much over thofe fervants who are hired by the month or by the year. endeavours to fliow that the poor do more work in cheap than in dear years. or which. in dear years. is lefs liable to the temptations of bad company.THE WEALTH OF NATIONS. years. indeother fhares it with his mafter. both which extend through the whole generality of Rouen. 103 ^ ^^ ^ P* pendant ftate. that the quantity and value of the goods all made in. than when they work for other people. which in large manufadlories fo frequently ruin the morals of the other. receiver the eledion of St. . and whole wages and mainor tenance are the fame whether they do do little. and dear years to diminifh A French author of of the great tallies knowledge and ingenuity. A poor independant workman will generally be more induftrious than even a journeyman who works by the The one enjoys the whole produce of his own induftry the piece. The one. though their produce may vary fomewhat from year forwards. is It appears from his account. one Elbeuf . are upon the whole neither going backwards nor The .

a year of great fcarcity. declined. upon peace rival or war. but are employed by fome of their neighbours in manufactures for family ufe. all great manufactures for diftant fale muft nc- not fo much upon demand the dearnefs or cheapnefs of the feafons in the countries where they are carried on. which publick regifters probably done in cheap years. is A great part of the extra- ordinary work. appear to have declined very confiderably. The v/omen return to their parents. quantity and value. I have not been able that variations have had any fons. produce did not rife to it what year it greatly exceeded what fince. and it has continued to advance ever The ceffarily produce of depend. the accounts which hare been publifhed of to obferve duce. The produce of their labour. befides. and commonly fpin in order to make of manufactures. therefore. the Scotch manufadlure made more than ordi- nary advances. and had been in 1755 till 1766. fenfible connection with the dearnefs or cheapnefs of the fea- In 1740. But in 1756. upon the profperity or clenfion of other manufactures. never The men fervants who leave their mafters become independant labourers. howtheir annual pro- ever. it had ever been before. are growing manufadures. and that of coarfe woolJens in the weft riding of Yorkfhire. its The Yorkfhire manufacture. both manufadures. another year of great fcarcity. and upon the good or bad humour of enters the their principal cuftomers.104 THE NATURE AND CAUSES OF The manufaQure of linen in Scotland. frequently makes no figure in thofe publick regifters of which the records are fometim-es publifhed . though with fome variations. indeed. of which the produce increafing both in is generally. Upon its examining. cloaths for themfelves and their families. Even the independant workmen do not always work for publick fale. after In that and the following the repeal of the American ftamp a£t. as upon the de- circumftances which affeCl the are in the countries where they confumed . indeed.

and from which our merchants and to C HA P.THE WEALTH OF NATIONS. population. if the price of provifions was high. to maintain and employ a greater number of induftrious people than had been employed the year before. and the price of the for labour. and fmks in the other. neceflaries the demand to for labour. high where the price of provifions the low. and conveniencies of it The demand or declining according as or to require happens be increafing. llflied 105 with fo much parade. The money price of labour is necelTarily regulated by two circumftanccs. and this extraordinary therefore. In a year of fudden and extraordinary plenty. it would be ftill demand continuing the fame. ber cannot always be had. P which . life. life an increafing. determines the quantity of the neceflaries and conveniencies of which muft be given labour tity. num- Thofe mafters. ftationary. rifes in and diminifhes in thofe of fudden and the money price of labour fometimes the one. is fometimes higher. therefore. manufadurers would often vainly pretend or declenfion of the greatefl empires. ima- gine that the price of provifions has no influence upon that of labour. ftationary. is and the money price of quan- determined by what the requifite for purchafing this is Though money price of labour. not only do not always correfpond with thofe in the price of provifions. bid againft one another. in order to Vol. we muft not. extraordinary fcarcity. It is becaufe the demand that for labour increafes in years of fudden and extraordinary plenty. or declining. in the there are funds fufficient hands of many of the employers of induftry. is to the labourer. upon this account. I. announce the profperlty Though the variations in the price of labour. but are frequently quite oppofite. who want get them^ more workmen.

a fmaller quantity of the labour flock produce a greater quantity of work. who bid againft one another get it. raifes BOOK both the real and the money price of their The contrary of this happens in a year of fudden and extraordinary fcarcity.1^6 THE NATURE AND CAUSES OF which fometimes labour. for his own advantage. many people were years of willing to plenty. its price. fo far tends to diminifh their concaufe. a year of extraordinary fcarcity. was more difficult to get labourers and fervants. by increafing that part of into at which wages. by diminifhing the demand for labour. The it. which fometimes lowers both the and the money price of labour. it In the fucceeding work for bare fubfiftence. to make fuch a proper divifion to and diflribution of employment. fumption both home and abroad. fcarcity of a'dear year. the and to increafe of flock. much more fteady and permanent than the The price of refolves increafe in the wages of labour and neceffarily increafes the it many itfelf commodities. neceffarily en- deavours. tends of labour. The fame make however. on the contrary. A confiderable number of people are in order to real thrown out of employment. tends to lower as the high price of provifions tends to raife The plenty of a cheap year. that they may be enabled pro- duce . tends to which raifes the its wages of labour. which probably in part the reafon why the wages of labour are every where fo price of provifions. as the cheapnefs of pro- vifions tends to lower In the ordinary variations of the price of to counter-balance provifions. The owner of which employs a great number of labourers. increafe produdive powers. by increafing the to raife the price it. In 1740. The funds deftined for employing induftry are lefs than they had been the year before. thofe two oppofite caufes feem is one another . demand.

More heads to be are occupied in inventing moft there- proper machinery for executing the fore.THE WEALTH OF NATIONS. in confequence of thefe improvements. are and it more likely invented. thofe of a great fociety. f < he endeavours to fupply of. them with the beft machinery which either y he or they can think What The takes place among the labourers in a particular workhoufe. takes place. therefore. work of There each. 107 For the fame reafon. come to be its produced by price is fo much lefs labour than before. for the fame reafon. which. P <? . many commodities. that the increafe of its more than compenfated by the diminution of quantity. among greater their number. naturally divide themfelves into different clafles and fubdivifions of employment. the more they the is. p. ' ^ HA . . duce the greateft quantity of work poffible.

but thofe The increafe of flock. When the flocks of many rich merchants are trade. not only by every variation of price in the in. to afcertain place. and by a thoufand other accidents . the . It is tell you himfelf what the average of his annual affeded. Profits of Stock. that the perfon of flock. fame competition mufl produce the fame effea in them It is not eafy. which ralfes wages. Of the IX. Profit is who is carries on a particular trade cannot always profit. commodities which he deals both of his rivals but by the good or bad fortune and of his cuftomers. profits But even this can fo feldom be done with regard to the very fluduating. what at are the average wages of labour even in a particular and a particular time. BOOK ' j"^ HE rife and fall in the profits of flock depend upon the fame in- jL caufes with the rife and fall in the wages of labour. it has already been obferved. feldom determine more than what are the mofl ufual wages. even in this cafe. their tends to lower profit. turned into the fame to mutual competition naturally tends is lower its profit. and when there carried a like increafe of flock in all the different trades on in the fame fociety. the all.xoB THE NATURE AND CAUSES OF CHAP. creafing or declining ftate of the wealth of the fociety caufes affed the one and the other very differently. We can.

muft fink finks. By the 37th of Henry VIII. may be laid down as a maxim. was declared unlawful. and rife as it The progrefs of intereft. or in antient times. intereft. The till ftatute of Henry VIII was James I. accidents to 109 which goods when carried either liable. To to afcertain what is the average profit of all the different trades carried difficult. or in precifion. 8. ' even when flored in a warehoufe. to have produced no effedt. feems. and probably rather increafed than diminiihed the evil of ufury. continued to be the legal rate of intereft of when it was reftrided to eight per cent. of flock. had fometimes been religious zeal prolike all others In the reign of Edward VI. faid of the fame kind. and judge of what may have remote periods of time. by fea or by land. may lead us to form fome notion of the progrefs of profit. and ten the 21ft per cent. the ufual market rate of afTured that the ordinary as it intereft varies in any country. hibited all More. either fome notion may be formed of It them from the intereft of money. lefs as commonly be According. little commonly be given can be made by it. with any degree profits of precifion. any degree of mufl be al- But though it may be impoffible to determine. however. chap. ->-^^ » not only from year to year.THE WEALTH OF NATIONS. therefore. revived by the 13th of Elizabeth cap. therefore. It was reduced to . mufl be much more been formerly. what are or were the average in the prefent. with together impoffible. profits of ftock muft vary with rifes. or therefore. is This prohibition. taken before that. a great deal and that wherever given for it. but from day to day. on in a great it kingdom. we may be it. that wherever a great deal can be will made by for the will the ufe of ufe of it money. are It varies. all it intereft above ten per cent. and almoft from hour to hour.

foon after the refloration. and in the greater part of the different branches of trade and manu- fedlures the profits of flock have been diminifhing. in the courfe of their progrefs. credit in the capital. . They feem. and four and a half per cent. per cent. and bid againfl one another in order to get as raifes the many as they can. who therefore bid againfl one another in order . the government borrowed at three per cent. to five and by the I2th of Queen Anne. But the wages of labour are generally In a thriving flocks to higher in a great town than in a country village. their pace feems rather to have been gradually acce- lerated than retarded. frequently cantherefore workmen they want. to They feem borrowed. town the people who have great not get the number of employ. lations to per cent. and lowers the is profits of flock. remote parts of the country there to frequently not flock fufficient employ all the people. have foUovped and not have gone before the market rate of credit ufually intereft. but to have been going on fafter and fafler. not only to have been going on.110 THE NATURE AND CAUSES OF to fix BOOK per cent. employed in every branch of trade. feems to have been rather above than below the market rate. and people of good and in many other parts of the kingdom. generally reduce the rate of profit in the former below what it is in the latter. four. The wages of labour have been continually increafing during the fame period. Before the late war. the wealth and revenue of the country have been continually advancing. Since the time of Henry VIII. which In the wages of labour. and. All thefe different flatutary regu- feem to have been made with great propriety. and the The great flocks number of rich com- petitors. It generally trade in a great requires a greater flock to carry on any fort of town than in a country village. or the rate at which people of good five Since the time of Queen Anne. a' three and a half.

during the adminiftration of Mr. People of the beft feldom borrow under five per cent. which lowers the wages of labour. or from thirtieth two per 3^- cent. or to five per cent. The wages of labour. been always regulated by the market rate *. the market rate credit there is rather higher. In Scotland. during the courfe of the prefent century. England. France . Article des Interets. of which payment pleafure. 1720 intereft was reduced from the twentieth five to to the fiftieth penny. or to four per cent. though the legal rate of intereft is the fame as ia England. is perhaps in the prefent times not a country as England and though the Taux ' legal rate iii.THE WEALTH OF NATIONS. was again raifed to the twentieth penny. Laverdy. The it country not only much poorer. to the old rate of five The Abbe Terray raifed it afterwards cent. ia 4 ^ . it The common rate of profit. Even private bankers in Edinburgh give four per cent. of ratereft has * See Denifart. torn. 1A. feem to be much more tardy. per it was reduced to the twenty-fifth penny. are lower in Scotland than in England. either in whole or in part may be de- manded for the at Private bankers in is London give no intereft money which depofited with them. or to per cent. The In legal rate of intereft in France has not. thofe violent redudions of was to prepare the way for reducing that of the public debts a purpofe which has fometime3 fo rich been executed. In 1724 In 1725 In it it was raifed to the penny. too is muft be been has already obferved. order to get employment. but the fteps by it is which advances to a better condition. iy66. p. The fuppofed purpofe of many of intereft . 18. There are few trades which cannot be in carried on with a fmaller flock in Scotland than therefore. fomewhat greater. upon their promiffory notes.« of ftock. for flower and evidently advancing. and raifcs the profits iii CHAP.

who fees the now and who faw it twenty or thirty years ago. they have feveral very profits fafe and eafy methods of evading the law. and it may But perhaps be true thefe fome particular branches of to indicate are fo. The than wages of labour are and the Dutch. The province of Holland. the market rate has generally been higher. but which nobody can country pofiibly entertain with regard to Scotland. well knowA. traded in both countries. When you go from Scotland England. and private people of good faid to is credit at three. it be higher in Holland than in England. an opinion which. It is a common and even a popular opinion in the country that is ill it is going backwards . France.112 B THE NATURE AND CAUSES OF jn^ O O K France frequently been lower than in England. trade upon lower it profits any people in Europe. is fymptoms feem fufficiently that there no general decay. than in one where highly refpeded. The wages of labour are to lower in France than in England. that The is trade of Holland. I have been alTured by merchants who had . feems not to be going forward fo fall. merchants are very apt is complain that trade depro- cays. Britifli The and of trade. to When its profit diminifhes. are higher in France than in England it is no doubt upon this account that many Britifh fubjefts chufe rais ther to employ their capitals in a it is country where trade in difgrace. it has been pre- decaying. as in other countries. tended by fome people. and the number of its in proportion to the extent of territory people. The government there borrow at two per cent. though the diminution of profit the natural effedof fperity . though no doubt a richer country than Scotland. the difference which you may remark between the drefs and countenance of the common people greater in the one country and in the other. contraft is ftill The when you return from France. is a richer country than England. fufficiently indicates the difference in their condition. for there. its on the other hand. I apprehend founded even with regard to France.

of which they ftill retain a very large fhare. Stock employed in the yield a very large profit. are circumftances which no doubt demonftrate the reit dundancy of their ftock. They have more land is than they have ftock to cultivate. Such land too its Is frequently purchafed at a price below the value even of natural produce. to eight High wages of labour and high profits of ftock. In the different colonies fix both the legal and the market rate of intereft run from per cent. not only the wages of labour. are higher than in England. however. except in the peculiar circumftances of for new colonies. which go together. In our North American and Weft Indian colonies. and confequently the of ftock. . As the capital of a private man. or that has increafed beyond what they can employ with tolerable profit in the proper bufinefs of their country : own but they do not demonftrate that that bufinefs has decreafed. fo may likewife the capital of a great nation. fcarce ever are things. Its rai)id purchafeandimprovementoffuch lands muft and confequently afford mulation in fo profitable to pay a very large intereft. in proportion to the extent of its ftock. perhaps. The great property which they millions. but the profits intereft of money. applied to the cultivation only of what What is they have. or of a greater ftock being 113 employed in it than before. perity. may increafe beyond what he can employ in it. the lands near the fea fhore. accu- an employment enables the planter to increafe Vo L. I. about forty in the latter. therefore. and along the banks of navigable rivers.THE WEALTH OF NATIONS. (in which I fufpeit. and yet that trade continue to increafe too. than the greater part of other countries. fertile moft and moft favour- ably fituated. though acquired by a particular trade. Dur- ing the late war the Dutch gained the whole carrying trade of France. is it poflefs is both in the French and Englifh funds. there to a confiderable exaggeration) the great fums rate which they lend is private people in countries their where the of intereft higher than in own. however. faid. in A new colony muft always its fome time be more underftocked and more underpeopled proportion to the extent of territory. Q^ the .

but will be explained more fully hereafter in treating of the accumulation of ftock. fays the proverb. lefs profit can be made by the cultivation of what is inferior both in ftock and is fituation. with induftrious nations who are advancing in the acquifition of riches. The great difficulty get that The connexion between demand the increafe of ftock and that of in- duftry. and after thefe are diminifhed. even in a country which faft advancing in the acquifition of riches. the profits of ftock gradually di- When foil the moft fertile and heft fituated lands have been all occupied. and with them the is in- of money. number of his hands Thofe fafter than he can find them in a new fettle- ment. and turned withprofitable into fome of the new and more . As has improvement. which fuch it is acquifitions prefent is to the different people among whom which divided. therefore. ac- cordingly. and lefs intereft can be afforded for the which fo employed. but to increafe much fafter than before. though with fmall than a fmall ftock with great profits. applied to thofe particular branches only afford the greateft profit. The may tereft acquifition of raife new territory. or of the for ufeful labour. When you have got a is to it is often eafy to get more. are very hberally re- As the colony increafes. as with induftrious individuals.- Money. ftock may not only It is continue to increafe. fometimes the profits of ftock. for the The ftock of the country not being fufficient whole acceffion of bufinefs. in other trades. both the legal and the market rate of intereft have been confiderably reduced during the courfe of the prefent century. and population have increafed. makes money. whom he can find. intereft declined. In the greater part of our colonies. minlfh. riches. little. or of new branches of trade.114 THE NATURE AND CAUSES OF the ' BOOK V. has partly been explained already. generally increafes fafter A great ftock. warded.. The wages of labour do not fink with the profits of ftock. The demand for labour increafes with the increafe of ftock whatever be its profits. . profits. little. is neceffarily Part of what had before been employed drawn from them.

as the vvages of labour are very low. will fufficiently account for this. lowers the wages of labour. So great an acmuft necef- new bufinefs to be carried on by the old ftock.THE WEALTH OF NATIONS. raifes the profits of ftock. lowered. without fuppofing any diminution ceflion of farily in the capital ftock of the fociety. and they get more for them. For fome time after the conclufion of the late war. being augmented at both ends. by our acquifitions in North America and the Weft Indies. or of the as it funds deftined for the maintenance of induftry. profit to thofe to be lefs fully fupplied with many diiferent or lefs. commonly borrowed at five per cent. 115 In all thofe old trades. The acquired in Bengal and the other Britifh fettlements in the Eaft Indies. table ones. coft them lefs. but fome of the greateft companies in London. in which the competition being I lefs. and confequently the intereft of money. not only private people of the beft credit. more than four. and lefs being employed in fupplying the market than before. therefore. The intereft of 0^2 money . reafons fhall hereafter have occafion to mention the which difpofe me to believe that the capital ftock of Great late Britain was not diminifhed even by the enormous expence of the war. Their goods therefore. have diminiftied the quantity employed in a great number of particular branches. can well great fortunes fo fuddenly and fo eafily afford a large intereft. they can them dearer. fo the pro- of ftock are very high in thofe ruined countries. afford to borrow at a higher intereft. therefore. the competition comes ^ H^A P. The market comes of goods. The diminution of the capital ftock of the fociety. Their profits. who can. and four and a half per The great acceflion both of territory and trade. forts Their price neceflarily rifes more and yields a greater who deal in them. to be lei's than before. the profits muft have been greater. who before that had not been ufed to pay cent. may fits fatisfy us that. fo it however. the owners of what ftock By the wages of labour being the fociety remains in can ftock fell bring their goods cheaper to market than before.

the country being already fully In a country peopled. and. as we learn from the Before the fall of the letters of Cicero. the competition for employment would neceflarily be fo great as to reduce the wages of labour to what was barely fufficient to keep the up number of labourers. advance no further. and confe- quently the ordinary profit as low as poffible. therefore. fo fuch enormous ufijry muft in profits. therefore. . is and fixty per cent. In a country which had acquired that full complement of riches which the nature of refpe£l to its foil and climate and it its fituation with other countries allowed to acquire. which could.iiG THE NATURE AND CAUSES OF money crop Is BOOK proportlonably fo. under the ruinous adminiftration of their proconfuls. But perhaps no country has ever yet arrived at this degree of opulence. turn eat up the greater part of thofe Roman republick. The virtuous Brutus lent money in Cyprus at eight and forty per cent. with other laws and inflitutions. all flocked in proportion to the bufinefs it had to tranfad. money is frequently lent to the farmers at forty. China feems to have been long flationary. and which was not going back- wards. to In a country fully peopled in proportion what either its territory could maintain or its flock employ. would every where be as great. fifty. In Bengal. that fully number could never be augmented. and the fucceeding mortgaged for the payment. as great a quantity of flock would be employed in every particular branch as the nature and extent of the trade would admit. As the profits which can afford fuch an intereft mud eat up almoft the whole its rent of the landlord. The competition. a ufury of the fame kind feems to have been common in the provinces. full and had probably long ago acquired that is complement of riches which this confiflent with the nature of its laws and inflitutions. both the wages of labour and the profits of flock would probably be very low. But complement may be much inferior to what.

In a country too.interefl altogether. be fufficient to aflbrd this large intereft. When Many the law prohibits. and fituation might admit chap. weftern provinces trads was left for Among the barbarous of the Roman empire. cannot tranfad the fame quantity of bufinefs difTerent laws which and inflitutions. require. of. ftitiuions. The courts of juflice of their kings feldom intermeddled in interefl: high rate of which took place in thofe antient times The may perhaps be partly accounted for from this caufe. to be pillaged and plundered ftock at any time by the inferior mandarines. will be able to is make very large Twelve per cent. where. eftablifli the poor mufl fing the profits. the poor or the owners of fmall capitals enjoy fcarce any. and veffels which admits the might do with of foreign nations into one or two of its it ports only. people mufl borrow. it as to wealth would When puts all the law does not enforce the per- formance of contrads. it does not prevent it.THE WEALTH OF NATIONS. tereft the monopoly of the rich. by engrof- whole trade to themfelves. The uncertainty of recovering his is money makes over-run the the lender exaQ the fame ufurious interefl which ufually required from bankrupts. borrowers nearly upon the fame footing with bankrupts or people of doubtful credit in better regulated countries. A country which negleels or defpifes foreign commerce. 117 the nature of its foil. the quantity of employed it. who. it. A DEFECT or poverty. though the rich or the owners of large capitals enjoy a good deal of fecurity. many nations who the performance of con- ages to the faith of the contrading parties. in the law may fometimes raife the rate of interefl confiderably above what the condition of the country. and the ordinary profits of flock mufl. climate. the oppreflion of bufinefs might admit. accordingly faid to be the common in- of money in China. in all the different branches of bufinefs tranfafled Vxrlthin can never be equal to what the nature and extent of that In every different branch. under the pretence of juflice. but are liable. and nobody will lend without fuch a confideration .

It is own flocks. is The high rate of among all Mahometan nations accounted for by Mr. and partly from the difficulty of recovering the money. like other people. is It is this furplus only which neat or clear profit.Ii8 THE NATURE AND CAUSES fideratlon for the ufe of their OF BOOK ti money as is fultable. but what retained fqr compenfating fuch extraordinary to lofTes. quantity of ftock that could be employed in clear profit as the ordinary rate of would be very fmall. and cuftom every where regulates is it. man to be fo. not to be ployed. in the fame manner. not from their poverty.. As em- ridiculous not to drefs. The loweft ordinary rate of intereft muft. charity or friendftiip could be the only motives for lending. where . In a country which had acquired its full complement of riches. even with tolerable prudence. Montefquieu. in every particular branch of bufinefs there was the greateft it. not only to what ^i. The loweft ordinary rate of profit muft always be fomething is more than what fufficient to compenfate the occafional is lofles to which every employment of ftock is expofed. market rate of intereft it which could be afforded out of poffible for would be fo low as to render im- any but the very wealthieft people to live upon the intereft of their money.^-y can be made by the ufe of it. The intereft v/hich the borrower can afford pay is in proportion to the clear profit only. or engage in fome fort man Ihould be a The province of trade. Neceffity makes ufual for almoft faffiion. fo the ufual it. Were it not more. expofed. be fufficient to fomething more than compenfate the occafional is loffes to •which lending. As a man of a civil profeffion feems aukward .v. but to the difficulty and danger of evadintereft ing the law. fo in fome meafure. not only this furplus. What called grofs profit is comprehends fre- quently. but part- ly from this. man of buof Holland feems to be approaching near to this not to be a every it is there unfafliionable it man of bufinefs. All people of fmall or middling fortunes would be obliged to fupcrintend themfelves the It employment of their would be neceffary that almoft every finefs. ftate.

merchants good. or a good deal higher. moderate.' THEWEALTH in a OF NATIONS. is In a country where the ordinary rate of clear profit cent. Double a intereft is in Great Britain reckoned. The rifes proportion which the ufual market rate of intereft ought to bear to the ordinary rate of clear profit. it perhaps could not be afi"orded for intereft forded if it and more might be af- were a good deal higher. But the propor- tion between intereft tries might not be the fame in coun- where the ordinary of profit was either a good deal lower. If it were a good deal lower. it The fl:ock is of the borrower. it eight or ten per may be reafonable that one half of is fhould go to intereft wherever bufinefs at the rifk carried on with borrowed money. what the . who. may rilk in the greater part of trades. and a compence for the trouble of employing the clear profit rate flock. call. one half of . and leaves only what is fufEcient to the labour of preparing and bringing them to market. according to the lowed rate at which labour can any where be paid. reafonable profit terms which I apprehend mean no more than a common and it ufual profit. the bare fubfiftence of the labourer. compenfate the high 4 wages . 4}e both fufficient re- a fufficient profit upon the and of this infurance. is 119 aukward camp or a gairifon. fed in fome way or other while he was about the work not always have been paid. in the price of many commodities. infures it to the lender. the low rate of may. and four or per cent. fo docs an idle man among men of may be fuch The go higbefl ordinary rate of profit the price of the greater part of commodities. eats up the whole of to the rent what fhould pay of the land. faft In countries which are profit advancing to riches. but the landlord may fervants of the Eaft India The profits of the trade which the Company carry on in Bengal may not per- haps be very far from this rate. and even in fome danger of being bufinefs. as. neceffarily varies as profit or falls. as five were. in defpifed there. The workman muft always have been .

In reality high profits tend much more to raife the price of work than high wages. And the em- ployer of the weavers would require a like five per cent. multiplied by the number of days during which they had been fo employed. both the advanced and upon the wages of the fpinners. it all of them. upon the whole value of the materials and wages to his which he advanced price cJ^ the flax workmen.bt. rife only in arithmetical rife proportion to this of wages. for example. are filent with regard to the pernicious effeds of their own They complain only of thofe of other people. In raifing the price of commodities the of wages opeaccumulation intereft. The em- ployer of the flax-dreffers would in felling his flax require an additional five per cent. through the different ftages of the manufadture. fhould. through rife the different flage of the rife manufadure. in geometrical proportion to this of profit. the flax-dreffers. among whom the wages of labour may be lower. The employer of upon the fpin- ners would require an additional five per cent. But if the profits of all the dif- ferent employers of thofe cent. rates in the fame manner rife as fimple intereft does in the of d. If in the linen manufadure. be advanced two pence a day: would be neceffary to heighten the price of a piece of linen only by a number of two pences equal to the number of people that had been employed about it. wages of the different working people ners. They gains.I20 THE NATURE AND CAUSES OF -^ages of labour. vi'ould. itfelf into That part of the price of the commodity which refolved all wages would. and enable thofe countries to fell BOOK as cheap as their lefs thriving neighbours. that part working people fhould be raifed five per itfelf of the price of the commodity which refolved all into profit. the bad effeds of high profits. The of profit operates like compound Our merchants and mafter-manufadurers complain much of the bad cffeds of high wages in raifing the price. . &c. and thereby leffening the fale of They fay nothing concerning their goods both at home and abroad. the fpin- the weavers. the . both upon the advanced price of the linen yarn and upon the wages of the rife weavers.

perfe<3: where there was liberty. fo many defert level people would crowd into it in the one cafe. are every where in Eu- rope extremely different according to the different employments But this difference arlfes partly from certain circumftances in the employments themfelves. in the fame be either perfedly equal or continually tending the fame neighbourhood. This at leaft would be the cafe in a fociety where things were left to follow their natural courfe. Every man's and to intereft would prompt him fhun the difadvantage- ous employments Pecuniary wages and of labour and ftock. in ment evidently either more or it lefs advantageous than the reft. ferent employments of labour and flock muft. to feek the advantageous. indeed. that its advantages would foon return of other employments. Vol. which. there was any employ- A- neighbourhood. which no where leaves things at perfect liberty. or at leaft in the imaginations of men. and where every man was perfedlly free both to chufe what occupation he thought proper. If. X. R The . whole of the advantages and difadvantages of the dif" C HA P. THE to equality. 121 C H A P. either really. and to change it as often as he thought proper. and counter-balance a great one and partly from the policy of Europe.THE WEALTH OF NATIONS. I. Employments of Labour and Of Wages and Proft in the different Stock. niary gain fome. and fo many would to the in the other. in make up for a fmall pecuin others. profit.

make up for a fmall pecu- niary gain in fome employments. as I fliall endeavour to fhow by and by. and carried on in day-light. PART inequalities arifmg I. the eafinefs and cheapnefs. or the diffi- culty and expence of learning them. . the conftancy or in- conftancy of employment in them fourthly. does in eight. thirdly. To far as I have been able to obferve. 'TT^ HE five following are the principal circumftances which. ments themfelves fecondly. artificer. in others : and counter-balance a great one firft. lefs dangerous..^^ circumftances and of that policy will divide this chapter into two parts.122 THE NATURE AND CAUSES The particular confideration of thofe OT BOOK x. is feldom earns much is twelve hours as a who only a is labourer. the cleanlinefs dirtinefs. the The wages of or labour vary with the eafe or hardfliip. but is much cleanlier. and. honourablenefs in or difhonour- ablenefs of the employment. the probability or improbability of fuccefs in them. in though an collier. a great part of the reward of all honourable pro- In point of pecuniary gain. fifthly. things confidered. fo A journeyman blackfmlth. Difgrace has the contrary efFed. His work is not quite fo dirty. His work not always eafier. The trade of a butcher . Honour makes feffions. A journeyman weaver earns is than it a journeyman fmith. they are generally under-recompenfed. the agreeablenefs or difagreeablenefs of the employ.^.. and above all ground. from the Nature of the Ewphyvients thcmfel'ves. lefs His work is much eafier... the fmall or great truft exercife which mufl: be repofed in thofe who them . First. a journeyman taylor earns lefs than a journeyman weaver. take the year round. Thus moft places.

DisAGREEABLENESS and in the difgrace affed the profits of ftock fame manner as the wages of labour. work done. A poacher Tery poor the law man in Great Britain. better paid than any commoa Hunting mankind their and fifhing. in proportion to to to afford any thing but the moft fcanty fubfiftence to the labourers. who is never mafter of his The keeper of an own houfe. The moft is <— v deteftable of all employments. that of public executioner. R 2 When . fcarce any common trade in which a fmall ftock yields fo great a profit. and they purfue for pleafure In the advanced ftate what they once followed from of fociety. butcher is 123 a brutal and an odious bufinefs . Secondly. exercifes neither a very agreeable nor a very creditable bufinefs. the licenfed hunter not in a much and better condition. * See Idyllium xxi. The natural tafte for thofe live employments makes quantity. comes al- more people follow them than can ways too cheap market comfortably by them. what other people purfue Fifhermen have every where a' been fo fince the time of * Theocritus. but it is in moft places ^ ^J^ P' more profitable than the greater part of common trades. inn or tavern. its the produce of their labour. or the difficulty and expence of learning the bufinefs. neceffity. they are all very poor people as a paftime. become advanced ftate moft agreeable amufements. In countries where the rigour of is fuff"ers no poachers. The wages of labour vary with the eafinefs and cheapnefs.THE WEALTH OF NATIONS. and who is But there is expofed to the brutality of every drunkard. therefore. who is follow as a trade. in pro- portion to the quantity of trade whatever. the moft important employments of in its in the rude ftate of fociety.

before worn upon nnift be ex- peded. During the continuance of the the whole labour of the apprentice belongs to his mafter. In the mean time he mufl.124 THE NATURE AND CAUSES When work to be OF extraordinary it any expenfive machine performed by it is it ereded. body. The policy of Europe ponfiders the labour of all mechanicks. in order to qualify any perfon for exercifing the one fpecies of labour. in the fame manner more certain duration of the machine. The common difference between the wages of founded upon {killed labour and thofe of labour. though with difi^erent degrees of rigour in diiferent places. The laws and cuftoms of Europe. feems to fuppofe that of the former to be of a more nice and delicate nature than that of the it is latter. Som. dexterity and be compared to one of thofe expenfive learns to •machines. They who . It is fo perhaps in fome cafes. as {killed It labour. in a reafonable time. will replace the •ordinary profits. as I fhall hut in the greater part quite otherwife.e and in almoft is cafes muft be cloathed by them. and that of country labourers as common labour. regard muft do this too being had to the very uncertain duration as to the of human life. with at leafl: the ordinary profits of an equally valuable capital. is this principle. therefore. it muft be will expefted. They leave the other free and open to every apprenticefliip. impofe the neceffity of an apprenticefliip. be maintained by his parents or relations. replace to the whole expence of his education. is the out. all artificers and manufadurers. with at leaft the A man may educated at the expence of much labour and time to any of thofe employments which require extraordinary flcill. endeavour to fhew by and by. money too commonly given to the mafter for teaching him his trade. capital laid out it. The work which he him perform. in many all cafes. over and above the ufual wages of common It labour.

not a'lways advantageous to the mafter. to be almoft equally and equally . while he learns the em- ployed about the eafier. and manufacturers. in moft more than the day wages of common is labourers. is fufficient compenfate the fuperior expence of « Education fions. who is 125 cannot give money. more fteady and uniform. reafonable. is flill in the ingenious arts and in the liberal profef- more tedious and expenfive. artificers. ought to be ingly. painters The and it pecuniary re- compence. give time. Europe the wages of mechanicks. It feems to evidently. be no greater than what their education. a confideration which. more difficult parts all of his bufinefs. are. on account of the ufual idlcnefs of apprentices. in All the different ways in which flock great is commonly employed eafy towns feem. however. is This fuperiority. taking the may be fomewhat greater. to fuperiority of their earnings. on the contrary. computed at an average. therefore. very little cloth. and his own labour maintains It is him through the different flages that in of his employment. in reality. therefore. much more liberal: fo accord- The profits of ftock feem to be very little affeded by the eafiit nefs or difficulty of learning the trade in which is employed. indeed. and their fuperior jx^ins make them in moft places be confidercd as a fuperior rank of people. the daily or weekly earnings of journeymen in the more common forts of manufa£lures. fuch as thofe of plain linen and woollen places. of lawyers and is phyficians.THE WEALTH OF NATIONS. generally very fmall . of and fculptors. They are fo accordingly. Their employment. fhould be fomewhat higher than thofe of common^ labourers. and the whole year together. or become bound for more though it than the ufual number of years. however. the labourer. is always difadvantageous to the apprentice. is In country labour.

to learn No fpecies {killed labour. feems more eafy than that of mafons and bricklayers. to be frequently without is What he earns. neither in hard froft nor in foul at all and his employ- other times depends upon the occafional calls of his cufis tomers. he employed. accordingly. BOOK cannot well One branch either of foreign or domefbe a much more intricate bufmefs thaa another. a journeyman may can be pretty fure of employment almoft every day in the year that he is able to work. are nearly upon a level with the day wages of common la- bourers. labourers earn mafons and bricklayers frequently the latter often ten. Employment others. precarious a fituation Where the computed earnings of the greater part of manufadurers. Thirdly. while is idle. therefore. therefore. Chairmen fometimes to in London. as the compenfation for the inconftancy of their employment. in confequence. Where common fix. mud not only maintain him while he for thofe anxious fo but make him fome compenfation and defponding moments which the thought of mufl fometimes occafion.126 THE NATURE AND CAUSES OF equally difficult to learn. tick trade. work ment any. as in earn feven and eight earn nine and ten . four and five {hillings a week. A mafon or bricklayer. . is much more conftant in fome trades than in In the greater part of manufadures. A HOUSE . The high wages recompence of of thofe workmen. weather. He liable. during the fum- mer feafon. thofe of mafons and bricklayers are generally from one- half more to double thofe wages. The wages of labour in different occupalions vary with the conftancy or inconftancy of employment. on the contrary. the of latter commonly earn fifteen and eighteen. are not fo much the their {kill. however. are faid be employed as bricklayers. where the former earn and where the former earn nine and London.

day-labourers in The journeymen taylors. it In moft places. His employ- ment. but parti- London they are often many weeks without employment. and difagreeablethe almoft equals that of colliers and from unavoidable irregularity 9 . thofe of tificers common to day. When hardfliip. When happen the trades which generally afford conftant employment. His high wages arife from the hardfhip. raifes the the inconftancy of employment dirtinefs is combined it with the difagreeablenefs and of the work. not univerfally fo. fometimes wages of the moft common labour above thofe of the moft fkilful artificers. however. though eighteen-pence may be reckoned the wages of labour. His employment may. exercife a trade which in hardfhip. In London to almofi. ingenious trade than a mafon. in the fame manner as loweft order of artificers. the wages of journey- men in taylors frequently fcarce equal thofe of common labour.. accordingly. though depends much. The coal-heavers in Lon- don nefs. the wages of the workjourneymen ar- men always a good deal above their ordinary proportion to labour. does not depend fo entirely upon . the occafional calls of his cuftomers and it is not liable to be inter- rupted by the weather. at parts of Newcaftle. rather a nicer and for 127 exerclfe more it ^ ^^ a P- A. dirtinefs . upon moft oc- cafions. common In fmall towns and country villages. and in is fuppofed.THE WEALTH A HOUSE carpenter feems to OF NATIONS. cularly during the fummer. be as conftant as he pleafes. A collier working by the piece double. in a particular place not to rife do fo. difagreeablenefs and dirtinefs of his work. week. to earn commonly about altogether many Scotland about three times the wages of common labour. all are liable to be called upon and difmifled by their mafters from day and from week other places. earn there half a crown a-day. is his day-wages are fomewhat lower.

would quickly reduce them to a lower a The conftancy or inconftancy of employment cannot afFedfc Whether the the ordinary profits of flock in any particular trade. paid. of appear. it feem unreafonable that coal-heavers fhould times thofe wages. The wages of great trufl: labour vary according to the fmall or in the which muft be repofed workmen. not upon the trade-. but the trader. number of competitors as. Six {hillings are about four times the wages common labour in London. if they were more than fufficient to compenfatc all the difagreeable circumftances of the fo bufinefs. greater part of therefore. the loweft common earnings may always be confidered as thofe of the How extravagant foever thofe earnings may far greater number. not only of equal. Such confidence . fometimes earn four and made into their condition a few years ago. them is neceflarily very inconftant. our fortune and fome- times our life and reputation to the lawyer and attorney. in a trade which has exclufive privilege. We truft our health to the phyfician. but of much fuperior ingenuity on account of the precious materials with which they are intrufted. workmen. commonly earn double and ought not to five triple the wages of common In the enquiry that at labour. Fourthly. there would foon be great no rate. and in every particular trade. it was found the rate at which they were then they could earn from fix to ten {hillings a day. The to thofe wages of goldfmiths and jewellers are every where fuperior of many other .128 THE NATURE AND CAUSES O? irregularity in the arrivals of coal fhips. the employment of the If colliers. ftock is or is not conftantly employed depends.

further the price of their la- When no truft . confidence could not fafely be repofed In people of a very 129 mean or ^ ^^ J^ P- low condition. profit. therefore. trade. probability that any particular perfon fhall ever is be qualified employment occupations. branches of cannot traders. greater mechanick is alraoft certain but very uncertain in the liberal profefto Put your fon apprentice to a fhoemaker. I. therefore. that profefTion to gain where twenty all one that fuccecc's. one ought that fliould have been gained V'o L. by the unfuccefsful twenty. laid The long time and in the great expence which muft be with this cir- out their education. different The different trade. it make him a pair of flioes to But fend him to is at leaft twenty to one if ever he makes fuch In a perto gain all proficiency as will enable fectly fair lottery.THE WEALTH OF NATIONS. arife from the different degrees of truft repofed in the Fifthly. The wages i of labour in different employments vary according to the probability or improbability of fuccefs in The for the different fuccefs fions. when combined ftill cumftance. S The counfcllor . them. the prizes thofe loft by fail thofe for who draw who draw ought In a the blanks. a perfon employs only his and the credit which he own ftock in may get from trade. neceffarily enhance bour. not upon the nature of his nion rates but upon their opi- of of his fortune. to which he In the . is educated. as may give them that rank in the fociety which fo important a trufl requires. that is live by the bufinefs. probity in and the prudence. part of very different in trades. there is other people. : there is little doubt of his learning ftudy the law. depends. Their reward muft be iuch.

can well be done. but in his own good To excel In any profeffion. that. notwithftanding thefe difcouragements. Two in different caufes contribute to recommend them. ought to receive the retribu- tidtn. is the moft decifive mark of what called genius or fuperior talents. begins make fomething by not only of his his profeffion. the defire of the reputation which attends upon fuperior excellence any of them.gains bear but a very expence. retribution is never equal likely to be ail Compute any particular is place.I30 THE NATURE AND CAUSES OF counfellor at to BOOK law who. therefore. and the latter as low. even though you rate as fmall proportion to their annual the former as high. in which but few is arrive at medio- crity. with other occu-«' all pations. Those profeffions keep their level. fuch as that by the workmen latter. How in extravagant foever the fees of counfellors at their law may fometimes appear. but of that of more than twenty others who real are never likely to make any thing by it. what is annually gained. and what different likely to be annually fpent. however. a perfedly The lottery of the law. and you will find that their annual . Firft. from being fair lottery and are. the natural confidence which every has more or fortune. perhaps. and. The pubiick admiration which attends upon fuch dif- tinguiihed . In point of pecuniary recompenced. fecondly. in the different inns of court. as well as many other liberal and honouable gain. and. lefs. is very far . in any common will of fhoemakers or weavers. and you find that the former fum will generally to exceed the all But make the fame computation with regard all the counfellors and ftudents of law. evidently under- profeffions. own fo tedious and expenfive education. at near forty years of age. trade. man not only in his own abilities. to this. liberal fpirits are the moft generous and eager to crowd into them.

who to exercife them in this manner. we muft of neceffity alter do the other. a greater It . opera^dancers. whether from reafon or prejudice. but is of which the exercife for the fake of gain confidered. in poetry and philofophy it makes almoft the whole. not only pay for the time. Many people this ufe them and in great perfedion. muft be therefore. if any thing could be made honourably by them.THE WEALTH OF NATIONS. and the competition would quickly their reduce the price of labour. There are feme very agreeable and beautiful talents of which the poffefTion commands a certain fort of admiration. 131 makes always it is a part of their reward. 1 a confiderable part of that reward in the profeffion of phyfick greater perhaps in that of law . or fmaller in proportion as higher or lower in degree. tinguifhed abilities. are by no means pofTefs fo rare as imagined. however. . but for the difcredit which attends employment of them as the means of fubfiftence. over-weening conceit which the greater part of The of their men have own abilities. Such is talents. the rarity and beauty of the this and the difcredit of employing them in manner. More people would apply to them. though far from being common. makes a ftill u— >. evil remarked by the philofoprefumption in their phers and morallfts of all Their abfurd S z . It feems abfurd yet reward at firft fight that we fliould defpife their perfons. their pecuniary recompence would quickly diminifh. The pecuniary re- com pence. many more are capable of acquiring them. Should the publick opinion or prejudice ever with regard to fuch occupations. &c. and their talents with the moft profufe While we do the one. labour and expence of acquiring the the talents. opera-fingers. as a fort of publick proftitution. ^ II A p. of thofe fufficient. liberality. is an antient ages. The exor- bitant rewards of players. who difdain to make of them . are founded upon thofe two principles talents.

prizes. Tliere is no man living who. In the ftate lotteries the tickets are is really not worth the price which fell paid by the original fubfcribers. ever. which the whole gain compenfated the whole lofs becaufe the undertaker could make nothing by it. of your tickets the nearer you approach That . however. and you lofe for certain and the greater the number to this certainty. Adventure upon . nor ever will fee. and others. and fometimes forty per cent. or one in . and by fpirits. for and yet commonly in the market twenty. nearer to a perfedly fair one than the there common lot- would not be the fame demand fome of the great for tickets. The vain hope of gaining fome of the great prizes fobereft people fcarce is the fole caufe of this demand. a perfedlly fair lottery. know that even that fmall is fum is perhaps twenty or thirty per In a lottery in which no prize refpe£ts it more than the chance worth. the tickets in the lottery. in tolerable health and fpirits. the all more likely you are to be a lofer. That the chance of gain fuccefs is naturally lotteries. has not fome fhare of lefs The chance of is gain is by every man more or and over-valued. how~. In order to have a better chance for fome people ftill purchafe feveral tickets. any man. has been lefs taken notice of. if pofTible.I3S THE NATURE AND CAUSES OF their BOOK own good fortune. There is not. thirty. when it. fmall fhares in a greater number. a more certain propofition in tickets mathematicks than that the more you adventure upon. fcarce and the chance of lofs is by moft men under-valued. ftill It is. advance. though they cent. who it is in tolerable health valued more than worth. it look upon as a folly to pay a fmall The fum for the chance of gaining ten or twenty thoufand pounds. we may neither learn from the univerfal of The world ever faw. overvalued. more univerfal. exceeded twenty pounds. though in other approached ftate much teries.

nineteen houfes are twenty. infure one another. This may fometimes. defpife the rifk much Taking the whole kingdom at an average. but of mere thoughtlefs rafh. be done without any imprudence. That moderate the chance of lofs is 133 frequently undervalued. perhaps. chant. with- out any infurance. however. is. very few have made a great fortune. and fcarce ^ HA P. any common trade. to pay the expence of management. as the premium of too infurance care to make fortunes. Moderate. in moft effedt of no fuch nice calculation. either at all. The contempt of rifle and the prefumptuous hope of adlivc than at the age at fuccefs. however. and the prois portion of fhips infured at all to thole not infured much greater. courfe of in chances. When a great company. or the loweft price at which he can reafonably expedl to infure it. or even they may. ever valued more than it is profit of infurers.nefs and prefumptuous contempt of the rifk. the manner as upon houfes. and from it deration alone profit feems evident enough that the ordinary balance of not more advantageous in this than in other fo and lofs is com- mon trades by which many to people however. the common premium mufl: be worth.THE WEALTH OF NATIONS. commonly is. may more than compenfate fuch the they are likely to meet with in neglecCl common cafes. the fame The of infurance upon flilpping. a great as it merwere. and from an equal fuch a profit as might have been drawn perfoii capital employed this. rifk is not infured from Sea more alarming to the greater part of people. fufficient compenfate the to afford common in lofles. has twenty or thirty fhips at fea. rifle. The who pays no more than evidently pays no more than the real value of the rifk. feafons and even in time of war. But though many people have made a little money by this confi- infurance. many people pay in it. The premium lofTes as faved upon them all. are in no period of life more which young people . from fire or lea to a trade we may learn from the very In order to make infurance. Many fail. or rather perfire. haps ninety-nine in a hundred.

any of is his making any thing by object the The great admiral lefs the of publick admiration than the great general. The fon of a creditable labourer . appears in the more evidently foldiers readinefs of the common people to enlift as or to go to fea. and in adlual fervice their fatigues are much greater. in have fcarce any chance of preferment. they figure their youthful fancies. The fame ment in the lefs. Common is failors. than in the eagernefs of thofe of better fafluon to enter into what are called the liberal profeflions. more frequently foldiers . Withenlift out regarding the danger. What fo a common foldier may lofe is obvious enough. As the great prizes in the lottery are the finaller ones muft be more numerous. is BOOK How little the fear of misfortune ftill then capable of balancing the hope of good luck. and though they to themfelves. difference runs through all the inferior degrees of prefer- in both. Other people :• fome chance of his making fomething by the one trade fees Nobody but himfelf other. is always without it. young volunteers never readily as at the beginning of a new war .134 THENATURE AND CAUSESOF people chufe their profefflons. By the rules of precedency a captain in the : navy ranks with a colonel in the army but he does not rank with him common eftimation. get fome fortune and preferment than common and the hope of thofe prizes trade. Thefe romantick hopes make the is lefs whole price of their blood. however. The may lottery of the fea is not altogether fo dlfadvantageous as or artificer if that of the army. what principally -recommends the Though their ikill and dexterity are much fuperior 4 . frequently go to fea with his father's confent it but fee he enlifts as a foldier. and the higheft fuccefs in the fea fervice promifes a lefs brilliant fortune and reputation than equal fuccefs in the land. Their pay than that of common labourers. a thoufand occafions of acquiring honour and diftindion which never occur.- therefore.

over and above his pay. and though the it fometimes fhould. the excefs will not be clear gain to becaufe he cannot (hare it failor. may earn in the calendar Tailor. may not perhaps always exceed the difthat of the ference between pay and common labourer . fupplied with provifions. The indeed. they receive fcarce any other recompence but the pleafure of exercifing the one and of furmounting the other. and the difference In time of peace. feem frequently to recom- trade to them» A tender mother. among the inferior ranks . at the rate of nine or ten fliillings a week. whom he muft maintain out of his wages at home.THE WEALTH OF NATIONS. inftead of difheartening young people. month from however. his forty to five and is forty fhillings. fuperlor to that of almofl: any artificers. more nearly upon a level than that of any other to workmen in thofe different places. who fail from the London feldom earn above thofe three or four (hillings a month more than is who . greatefl: all and the rate of the port and from which the regulates that of the number fail. all this dexterity and for all thofe hardfliips and dangers. with his wife and family. A common London. of Their wages are not greater than thofe common labourers at the port which regulates the from rate of fea- mens wages. yet for (kill. the fervice. the As they are continually going from port to port. Their value. while they remain in the condition of common failors. that is the port of London. dangers and hair-breadth efcapes of a The mend a life of adventures-. and though their whole life is 135 one continual fcene of hardfliip and danger. and in the merchant is frequently not fo great. At London the wages of the greater part of the different clafTcs of workmen But the are about double thofe failors of the fame port of claffes at Edinburgh.'ail from the port of Leith. fail monthly pay of thofe who is all the different ports of Great Britain. London the price from a guinea to about feven and labourer in twenty fliillings calendar month. reft.

the infallible bankruptcy. The rifk. however. is to extricate ourfelves by courage and raife not difagreeable to us. and It is does not the wages of labour in any employment. that competition rifk. left is BOOK often afraid to fend her fon to fchool at a feafliips the fight of the Tailors and the converfation and adventures of the diftant fliould entice him to go to fea. the ordinary rate of profit varies more or lefs with the certainty or uncertainty of the uncertain in the inland than in returns Thefe are in general lefs the foreign trade. as The prefumptuous hope their of fuccefs feems to ad here upon all other occafions. not only to make up for all but to afford a furplus profit to the adventurers of the fame nature returns were fufficient with the profit of infurers. it is that of a fmuggler. and to entice fo many adventurers into the profit it thofe hazardous trades. to Jamaica. over and above the ordioccafional loffes. port town. the does not. reduces below what is fufficient to compenfate the To compenfate compleatly. In trades which are known effeds to be very unwholefome. Unwholefomnefs a fpecies are to of difagreeablenefs. otherwife with thofe in which courage and addrefs can be of no avail. ordinary rate of profit always It more or lefs with to it. the common returns ought. than in that rifes rife in the trade to North America. The profped of hazards. The moft though when the is hazardous adventure road to fucceeds likewife the moft profitable. of all trades. Bankruptcies are nioft frequent in the moft hazardous trades. and its upon the wages of labour be ranked under that general head. the wages is of labour are always remarkably high. and in fome others . from which we can hope addrefs. But if the common . feem to In proportion or fo as to compenfate it compleatly. nary profits of ftock. branches of foreign trade than in for example.136 THE NATURE AND CAUSES OF ranks of people. In all the different employments of flock.

with the rifk. thefe than in other trades. more frequent in 1^7 this. and of the rich when the or danger fuitable is not very great. This great apparent profit. between the ordinary profits in any two different branches of trade. and it arifes generally from the price at Vol. rife in though it rifes it. The difference. and the rifk or fecurity with it is which attended. He is the phyfician of the diflrefs poor in all cafes. is The apparent difference. Apothecaries profit is become a bye-word. therefore. is frequently no more than the is reafonable wages of labour. which vary the wages of the agreeablenefs or labour. The (kill of an apothecary a much more trufl delicate matter than that of any in artificer whatever and the which is repofed him is of much greater importance. ought to be to and I. however. difagreeablenefs of the bufinefs. his trufl. generally a deception arifing from our not always diflin- guifhing what ought to be confidered as v/ages. therefore. in the fame neighbourhood. befides. In point of agreeablenefs or difagreeablenefs. bankruptcies would not be C ha r.THE WEALTH fcient for all OF NATIONS. two only afFed the profits of flock. is evidently much greater. They are fo accordingly. than that. but a great deal in thofe of labour. denoting fomething uncommonly extravagant. different the average and ordinary rates of profit in the employments of flock o*- fhould be more nearly upon a level than the pecuniary wages the different forts of labour. T which . from what ought to be confidered as profit. the far greater part of the different c employments of always feem to this. between the earnings of a common labourer and thofe of a well employed lawyer or phyfician. Of the five circumftances. nicer and . there in is little or no difference flock. in the profits of different trades. his (kill His reward. and the ordinary profit of flock. does not all proportion to fociety or It fhould follow from that.

The greater part of the apparent in this cafe too. profits and little will remain. fiderable while a con- wholefale merchant in the fame place will fcarce make eight or ten per cent. much lefs in the capital than in fmall .t is. therefore. and muft be a tolerable judge their prices> too of. Though he (houkl them. muft it not by fuitably to the qualifications capital. and account. upon the price of of the apparent profit is way in which The greater part profit. perhaps. for three or four hundred. Dedud more this from the feemingly great profits of his capital. But the whole drugs which the market town. He muft have merchant. real wages difguifed in the garb of In a fmall fea-port town. in a large in a year. fifty or fixty different forts of goods. the knowledge. which it requires. real wages. The trade of the grocer may be necefTary for the conveni^ncy of the inhabitants. upon a flock of ten thoufand. The difference between the apparent is profit of the retail and that of the wholefale trade. thoufand per cent. but live The man. Befides pofleffing a little he muft be able to read. in the only his drugs. Thirty or forty pounds a year cannot be confidered as too great a recompence for the labour of a perfon fo accomplifhed. perhaps. write. reafonable may frequently be no more than the wages of his labour charged. upon a ftock of a fingle hundred pounds. will fell beft employed apothecary. and the narrownefs of the market may not admit the employment of a larger capital in the bufinefs. in fhort. he can charge them.338 THE NATURE AND CAUSES OF which he fells BOOK his drugs. may not perhaps coft fell him above this thirty or forty pounds. however. qualities. and the markets where they are all to be is had cheapeft. of ftock. that neceflary for a great which nothing hinders him from becoming but the want of a fufficient capital. than the ordinary profi. or at a profit. only live by his trade. a little grocer will make forty or fifty per cent.

increafes fame caufe. coft. 139 Where ten thoufand pounds can be employed in the grocery trade. labour great a the wages of the grocer's make but a very trifling addition to the real prolits of fo The apparent profits of the wealthy retailer. thereftock. and fcarce ever in the latter. they are cheapefl where the leaft profit is charged upon them. therefore. diminifhes apparent profit. in the and though the there. part of them muft be coft brought from a much greater The prime of grocery goods. Grocery goods. the In fuch articles and butcher's-meat. through the greater part of Though the profits of ftock both in the wholefale and retail lefs trade are generally in the capital than in fmall towns and country villages. It upon this account that goods fold by are generally as cheap and frequently in fmall towns much cheaper in the capital than for and country villages. are generally as cheap. thofe of bread and butcher's-meat are generally very nearly the fame it. apparent profit. 'own than to the country village but it cofls a great deal more to bring corn and cattle. are there a level with thofe of the wholefale retail merchant. as the greater diftance. prime to The extent of by giving employment greater flocks. fmall towns and country villages. greater in the great profit is lefs. which diminifhes the market. in moft cafes. yet great fortunes are frequently acquired from fmall beginnings in the former. being the fame in both places. therefore. . coft. though the prices of corn and cattle are commonly very different in different parts of the kingdom. it but by requiring fupplies from a greater diftance. example. is The prime town than cofl: of bread and butcher's-meat country village not . which is probably the reafon that. nearly to counter-balance one another. more nearly upon is fore.THE WEALTH OF NATIONS. they are always as cheaper bread but often equally cheap. In T 2 fmall . much cheaper no more bread and butcher's-meat frequently to It cofts bring grocery goods to the great . increafes prime This diminution of the one and increafe of the other feem.

are fometimes made is fuch places by what culative called the trade of fpeculation. happens. occafion . known branch of is A bold adventurer may fometimes acquire a confiderable juft as likely fortune by two or three fuccefsful fpeculations.be only in places of the carried on no where but in great towns. that great fortunes eftablifhed. The five circumftances above mentioned. His profits and lofTes. or tea merchant He enters into every trade when he forefees that it it likely to be more than commonly its profitable. tobacco. bufinefs. but to lofe one by two or three unfuccefsful ones. and a wine merchant the next. fmall towns and country villages. is He is a corn merchant this year. frugality. and he quits when he forefees that profits are likely to return to the level of other trades. towns by any one regular. therefore. and a fugar. however. profits therefore. the fum or amount of them can never be very great. though they occafion confiderable inequalities in the wages of labour and profits of ftock. or well known branch of the year after. This trade can . His trade the extended in pro- portion to the profits amount of both. nor confequently that of his annual accumulation. though the I'ate of a particular perfon's may be very high. of the market. can bear no regular proportion to thofe of any one eftablifhed and well bufinefs. increafes. The fpe- merchant exercifes bufinefs. great towns. Sudden fortunes. eftablifhed.140 THE NATIJRE ANt) CAUSES' OF on account of the narrownefs' as ftbck extends. trade cannot always be extended In fuch places. It is moft extenfive commerce and correfpondence that the intelligence requifite for it can be had. indeed. no one regular. the credit of trade can be extended as flock thriving is and a frugal and man in- creafes much is fafter than his flock. but in confequence made even in great and well known branch of are life of a long of induftry. and fum or amount' of his in proportion to the extent of his trade. In on the contrary. and his It annual feldom accumulation in proportion to the amount of his profits. in and attention.

they muft be the fo!e or principal em- ployments of thofe who occupy them. three things are requifite even where there raufl: is the moft perfed freedom. chap. and feldom be confidered as old eftablifhed manufaflures. real r4r. this equality can take place only in thofe employments eftablifhed in the which are well known. the employments be well known and long eftablifhed in the neighbourhood fecondly. or than the nature of his work would time muft pafs otherwife require. are continually changing. and the fame form or fabrick may continue in demand for whole centuries together. The wages of labour. thirdly. that this equality may take place in the whole of their advantages or difadvantages. of the different employments of either. he muft entice his work- men from other employments by higher wages than they can either eara in their own to trades. one in In order. for lefs Thofe. than 3 . trary. and have been long neighbourhood. Where higher in eftablifti all other circumftances are equal. they muft be in their ordinary. First. however. Firft. therefore. and. and counter-balance a great others. and a confiderable away before he can venture tures for reduce them to the common laft level. are likely to be higher in manufadures of the former. that they make up fmall pecuniary gain in fome. occafion none in the whole of the advantages and difadvantages. on the conneceffity. Manufac- which the demand arifes altogether from fafhion and long enough to fancy. or what may be called their natural flate . new than When at a proje£tor attempts to firft a new manufacture. are which the demand to arifes chiefly from ufe or liable change. or imaginary.THE WEALTH OF NATIONS. wages are generally in old trades. is The for a nature of thofe circumftances fuch.

they are commonly at firfl When the trade or pradice becomes thoroughly eflablifhed to the level of other and well known. of the year and wages rife with the demand. fpeculation. above. for merchant neceffarily rifes with their rife and their wages upon fuch occafions fhillings. nufadlures of the former kind. they neighbourhood. perhaps. or of any new pradice in agriculture. the demand fcarcity. when fliips forty or fifty thoufand failors are forced from the merchant failors to fervice into that of the king. are faid to be fuitable to this difference in the nature of their manufadurcs. the competition reduces them trades. The eftablifhment of any new manufadure. to commonly from a guinea and feven and twenty In a de- forty (hillings and three pounds a month. Secondly. or what ftate may be called the natural of thofe employments. are quite otherwife . 7 caying . . can take place only in the ordinary. is fometimes greater and fometimes than ufual. always a from which the projector promifeshimfelf extraordinary profits Thefe fometimes are very great. this equality in the whole of the advantages and dlf- advantages of the different employments of labour and flock. than during the greater part In time of war. they bear no regular proportion to thofe of other old trades in the If the projed fucceeds. rife In the one* in the other the advantages of the fall employment level. Sheffield in thofe of the latter the wages of labour in thofe different places. they is below the common The demand for country labour greater at hay-time and harvefl:. very high. OF maand Birmingham two deals chiefly in .142 THE NATURE AND CAUSES than in thofe of the latter kind. and fometimes. The demand cafe for almofl every different lefs fpecies of labour. but in general more frequently. of any new branch is of commerce. profits.

all but fome much more fo than others. diff'erent years. in diff"erent quantities produce very of corn. it. or very nearly the fame quantity of commodities. The fame The quantity of induftry. rifes above the ordinary or average rate. In fome employments. fugar.THE WEALTH OF NATIONS. the fame number of hands will annually work up very nearly the fame quantity of linen and woollen cloth. has already been obferved. varies not only with the variations of demand. &c. In the linen or woollen manufaftures. tobacco. than quit their 143 rather on the contrary. therefore. is confequently ex- But the profit of fome of the dealers muft neceffarily . can only from fome accidental variation in the demand. will. that the average annual may. hops. for example. and tremely fludluating. the ftock that is the profits of at lead fome part of employed and as lefs it in bringing it to rife above their proper level. price of fuch commodities. the fame quantity of in- duftry will always produce the fame. caying manufadlure. are contented with fmaller fuitable to the nature wages than _/ would otherwife be of their employment. As the price of any commodity market. many workmen. A publick for is mourning moft forts raifes the price of black cloth. wine. But there are other employments which the fame quantity of induftry will not always produce the fame quantity of commodities. v -y- old trade. for example. as nearly be equal to the average annual it confumption. tions in the The variaarife market price of fuch commodities. The . chap. the ployed is In commodities which are pro- quantity of induftry annually emas - neceffarily regulated by the annual demand. fo likewife the price. but with the much greater and more frequent variations of quantity. But is as the demand in of plain linen and woollen cloth pretty uniform.which profits of ftock vary with the price of the commodities in it is employed. duced by human induftry. falls they fink below All com- modities are more or are liable to variations of price. produce in fuch a manner poffible. therefore.

and. perhaps. little a great part of the year he has or no occafion for pofTeffion is their labour. though they were more frequent fome years ago than they are now. When their mafter has occafion for their labour. an acre or two of bad arable land. as much grafs as will feed a cow. There ftill fubfifts in many parts of Scotland a fet of people called Cotters or Cottagers. worth about fixteen-pence fterling.144 "^^^ NATURE AND CAUSES OF with the price of the commodities. two pecks of oatmeal During a week. they are faid to have been willing to give their fpare time for a very fmall recompence to any body. The ufual reward which they receive from their mafters is a houfe. When fuch occupiers were more nu- merous than they are at prefent. is He endeavours to buy them up likely to rife. a fmall garden for pot-herbs. befides. can take place only in fuch as are the fole or principal employments of thofe who occupy them. In antient and to have wrought for lefs wages than other labourers. They are a fort of out-fervants of the landlords and farmers. that their price to fall. . in the interfor to work at another wages than would otherwife fuit the nature of the employ- ment. When a perfon derives his fubfiftence from one employment. he gives them. and to fell when he forefeqs them when it is likely Thirdly. his which does not occupy the greater part of vals of his leifure he is often willing lefs time . This equality in the whole of the advantages 3nd difadvantages of the different employments of labour and ftock. and the cultivation of their is own little not fufficient to occupy the time which left at their own difpofal. neceflarily flu£luate The ope- rations of the fpeculative merchant are principally employed aboHt fuch commodities.

howit. a common price of common In the fame iflands they knit worfted {lockings to the value of a guinea a pair and upwards. a confiderable part ever. U In . They earn but a very fcanty fub- who endeavour to get their whole livelihood by either of is thofe trades. which country labour feafons. The fpinning of linen yarn is carried on in Scotland nearly in the fame way as the knitting of ftockings. labour. countries cultivated and worfe inhabited. They work of their fervants and la- who derive the principal part of fubfiftence from fome other employment. tlent 145 In times they feem to have been ill common all over Europe. I. The daily or weekly recompence which fuch their mafters. fiftence. and who have taken pleafure in reprefenting both as wonderfully low. feems to Their fmall tenement made of it. the fmall I capital of the Shetland is ten-pence a day. In moft parts of Scotland fhe - a good fpinner who can earn twenty -pence a week. the greater part of landlords and farmers could not otherwife provide themfelves with requires the extraordinary at certain number of hands. Vol. Stockings in many much cheaper than they can any where are the be wrought upon the loom. iflands. have been af- fured. At Learwick. This daily or weekly recompence. chap. bourers. of which the price from five-pence to feven-pence a pair. labourers occafionally received from was evidently not the whole price of their labour. The produce of fuch labour comes frequently cheaper to market its than would otherwife be fuitable to parts of Scotland are knit nature. have been confidered as the whole of by many writers who have colleded the prices of labour and provifions in antient times.. More than a thoufand pair of Shetland ftockings are annually imported is into Leith. by fervants who are chiefly hired for other purpofes.THE WEALTH OF NATIONS.

the people other means of fubfiftence who lodgings. is There is no city in Europe.46 THE NATURE AND CAUSES * OF ftock of. occur chiefly in poor countries. than can be country. not only from thofe caufes which render the dearnefs of labour. all materials of building. it In France. upon the groundand he endeavours middle ftories to and he and his family deep in the garret to pay a part of his houfe-rent to by letting the txvo lodgers. the- The dearnefs of houfe-rent in it London arifes.only cheap* it Lodging is much cheaper in London than in Paris. Paris and Edinburgh. but it had for a hundred of the beft in the arifes in part from the peculiar manners and cufloms of the people. the dearnefs of dear the in all great capitals. and yet know no fo capital which a furnifhed apartment can be hired not. which oblige every mafter of a family to hire a whole houfe from top to bottom. and not at by his let lodgers. and frequently exadling ^ higher rent for a fingle acre of bad land in a town. I I believe. that any one trade thofe is fufficient to it. Whereas. the dearnefs of houfe-rcnt caufe of the cheapnefs of lodging. of the town where his cuflomers floor. have I commonly no and . The is following inftance> to however. is contained under the fame of Europe.. great diftance. is A tradefman in London obliged to hire a whole houfe in that part live. which all mufl: generally be brought from a and above the dearnefs of ground-rent. and fame time deriving fome another. much cheaper than in Edinburgh of the fame degree of goodnefs is and what may feem extraordinary. of fomething of the fame kind capital be found in the of a very rich one. in which houfe-rent in is dearer than in London. and many other parts frequently means no more than a fingle ftory. employ the whole labour and who occupy at the Inftances of people's living little by one employadvantage from ment. every landlord ailing the part of a monopolifl. A dwelling-houfe in England means every thing that roof. Scotland. He expeds maintain his family by his trade. His fhop is . In opulent countries the market is generally fo extenfive.

muft pay. It does this chiefly in the three following ways. by not leaving things at perfedl liberty. not only the rent of the houfe. it in others beyond what free it naturally would be labour and thirdly. to U 2 thofe . Eut the policy of Europe. but the whole expence of the family. by obftruding the circulation of both from employment to employment and from place to place. M7 chap. SUCH are the inequalities in the difadvantages of the different whole of the advantages and employments of labour and flock. requifites which the defe£l of any of the three muft oceafion. Inequalities occafioned by the Policy of Europe. cccafions other inequalities of much greater importance. even where there is above mentioned the moft perfed liberty. by increafing and. ^" and the price of the lodging P A R T II. number than might The it exclufive privileges of corporations are the principal ufe means makes of for this purpofe. by re- ftraining the competition in fome employments to a fmaller .THE WEALTH OF NATIONS. Firfl. employments of labour and by reftraining the competition in fome employments to a fmaller otherwife be difpofed to enter into them. town where eftablifhed. The reftrains exclufive privilege of in the an incorporated trade necefTarily it is the competition.. First. flock. num- ber than would otherwife be difpofed to enter into them fecondly. The policy of Europe occafions a very important ine- quality in the different whole of the advantages and difadvantages of the ftock.

under pain of forfeiting five pounds a month. obliged to ferve. who fhall fue in any Both thefe regulations. In Sheffield no mafter cutler can have more than one apprentice at a time. which indeed the proper Latin name for any incorporation whatever. though they have beea confirmed by a publick law of the kingdom. hatter can have No mafter more than two apprentices any where in England. eftabliflied all over Europe. The univerfity of fmlths. It required a particular ad of parliament to refcind this bye-law. but as efFedually. under pain of forfeiting five pounds a month to the king. and half to him court of record. fpirit which enacted the bye-law of Shef- The filk weavers in London had fcarce been incorporated a. are evidently didated by the fame corporation field. tation of the by increafing the expence of education. commonly the The bye-laws cf is the corporation regulate fometimes the number of apprentices which any mafter is allowed to have. number of apprentices reftrains it diredly... To this have ferved an apprenticefhlp in the town. A long term of apprenticefhlp reftrains it more indiredly. In Norfolk and Nor- wich no mafter weaver can have more than two apprentices. or in the Englifli plantations. year when they enaded a bye-law reftraining any mafter from having more than two apprentices at a time. under a mafter properly qualified. by a bye-law of the corporation.^ the imiverfity of taylors. &c. the term for the duration of apprenticefhips in the greater part of incorporated trades. half to the king. All fiach is incorporations were antiently called univerfities. is and almoft always the number of years which each apprentice The intention of both regulations is to reftrain the competition to a much fmaller Jiumber The limithan might otherwife be difpofed to enter into the trade.148 THE NATURE AND CAUSES OF thofe ' BOOK V^ who are free of the trade. neceflary requifite for obtaining freedom. Seven ufual years feem antlently to have been. are expreflions which we commonly meet .

in order obtain the degree of mafter of arts. and feem plainly to its by interpretation it operation has been limited to market towns. qualified. it commonly that called the Statute of Ap- prenticelhip. the words of the ftatute are very general. By the 5th of Elizabeth. arts. and the number of people frequently not being fuflacient to fupply each with a particular fett of hands. meet with ticular in the old charters 149 thofe par- of antient towns. of which the incorporations were much more- As to have wrought fevcn years under a mafter properly in order to intitle was neceflary to any perfon to become a fo to mafter and have himfelf apprentices in a common trade. or myftery at that time exercifed in to it England. craft. liberal teacher. include the whole kingdom. they being neceflary for the conveniency of the inhabitants. was ne- him to become in a mafter. the to now pecuUarly called univerfities were firft term of years which was neceflary to ftudy. 3 . have ftudied feven years under a mafter properly ceflary to entitle qualified. trades. all became on in in England the general and For though publick law of" trades carried market towns. and what before had been the bye-law of many particular corporations. or dodor to (words antiently fynonimous) the and have fcholars or apprentices (words likewife originally fynonimous) to ftudy under him. villages a perfon having been held that In country may exercife feveral different trades. though he has not ferved a feven years apprenticeftiip to each. appears evidently to have been copied from the term of apprenticefhip in common antient. When it ^ ^ .^ P- A incorporations which are eftablifhed. a ftridt interpretation of the By words too the operation of this ftatute has been limited to thofe trades which were eftabliftied in.THE WEALTH OF NATIONS. unlefs he had previoufly ferved feven years at leaft . no perfon ihould for the future an apprenticeftiip of any trade. exercife was enaded.

the ftatute Elizabeth.I50 JB THE NATURE AND CAUSES in OF o o K England before the 5th of Elizabeth. may exercife their trades in any town . as the principal manufadures of them. itfelf is called his com- In Scotland there is no general law which regulates univerfally the duration of apprenticeihips. wheel-wright. is different in is dif- In Paris. in to exercife the trade as a mafler. In moft towns too a very fmall fine purchafe the freedom of any corporation. The manufadures are of Manchefter. five years many of them. &c. five years the term qualified required in a great number. term he is ferve called more as a journeyman. either himfelf make or employ journeymen to make ftatute. The weato vers of linen and hempen cloth. appear as foolifli as can well be It has been adjudged. During this latter the companion of his mafter. this latter trade havBut a ing been exercifed in England before the 5th of Elizabeth. not within not having been exercifed in England before the 5th of In France. the country.. This limitation has given occafion to feveral diftindions which. the duration of apprenticefhips ferent towns and in different trades. for example. and the term panionfliip. . Where it is long. The term is different in different a part of it may generally be redeemed is by paying a fmall fufficicnt to fine. that a coach-maker can neither himfelf make nor employ journeymen to make his coach-wheels' but muft buy them of a mafler wheel-wright . and has never been extended to fuch as have been introduced fince that time. well as all other artificers fubfervient wheel-makers. reel makers. but before any perfon can be he muft. may . Wolverhampton. fidered as rules of police. upon this account. corporations. conimagined. though he has never ferved an apprenticefliip to a coach-maker. Birmingham. coaches the trade of a coach-maker not being within the becaufe not exercifed in England at the time when it was and made. many of them.

it is evidently impertinent as opprefTive. give the purchafer much greater fecurity than at thefe. Quite different regulations are neceffary to prevent The fterling mark upon plate. moft facred property.THE WEALTH OF NATIONS. and the longeft apprenticefhip can give no fecurity againfE this fraud. abufe. He generally looks but never thinks worth while to enquire whether the -workman had ferved a feven years apprenticefliip. hinders the others from employing whom whofe To judge whether he is fit to be em- ployed. and of thofe who might be difpofed to employ him. and the ftamps upon linen and woollen cloth. any ftatute it of apprenticefhip. The fale. fo The the facred property which every man has in his own fo labour. The afFedted anxiety of the is law-giver as- they fhould employ an improper perfon. fo they think proper. The . is the moft and inviolable. Iii all towns corporate ^ ^ '^ P- perfons are free to fell butcher's-meat upon any lawful day of is the week. Three years in Scotland a common term of apI prenticefhip even in fome very nice trades. and not of inability. as it it is original foundation of all other property. juft It is a manifeft encroachment upon the' liberty both of the workman. of a poor man lies in the ftrength and dexterity of his and to hinder him from employing this ftrength and dexterity in is what manner he thinks a plain violation of this proper without injury to his neighbour. and in general know little of no country in Europe in which corporation laws are cppreiTive. inftitution of long apprenticefliips can give no fecurity that infufHcient workmanftiip fhall not frequently be expofed to publick When this is done it is generally the efFe£t of fraud. may left furely it be trufted to the difcretion of the employers intereft fo much concerns. town corporate without paying any all 151 fine. As it it hinders the one from working at what he thinks proper. The patrimony hands.

upon condition that the mafter him that Long which are apprenticeftiips are altogether unneceiTary. the fweets of labour are altogether in the recompence of labour. The reciprocal duties of mafter and apprentice make a confiderable The Roman law is perfedly filent article in every modern code. becaufe he has no immediate intereft to be In the inferior employments. and to acquire the early habit A young man naturally conceives an averfion to labour. The invention of fuch beautiful ma- chines. much fuperior to common firft of making clocks and watches. and even that of fome of the inftruments employed the in making them. muft. have been work of deep thought and long time. trades. with regard to them. and they generally turn out very idle and worthlefs. long time he receives no benefit from when for a The boys who are put more out apprentices from publick charities are generally bound for than the ufual number of years. and almoft always otherwife. A journeyman who An apprentice is works by the piece from every likely to be induftrious. it. fooneft in a condition to enjoy the fweets of are likely fooneft to conceive a relifli for it. a particular trade for the benefit of a mafter. likely to be idle. fuch as thofe The arts. no doubt. to aflert that there is none) to the vv'ord which exprefles the a fervant we now annex at Apprentice. indeed. confift is fo. contain no fuch myflery as to require a long courfe of inftru£tion. becaufe he derives a benefit exertion of his induftry. it. altogether unknown to the antients. during a (hall teach term of years. I know no Greek or Latin word (I might venture. They who of induftry. and may juftly be confidered as among the happieft .152 THENATUREANDCAUSESOF The is inftitulion of long apprenticefhips has no tendency to form young people to induftry. idea I Apprenticeships were believe. bound to work trade.

which he perhaps. way be more effedlual. lofer. The dexterity of hand. lefs tedious and expenfive. indeed. would be much The fame increafe of competition would reduce the mafters as well as the wages of the crafts. X In .THE WEALTH OF NATIONS. the apprentice himfelf would be a In a trade fo eafily learnt his he would have more competitors. if from the beginning he wrought little as a journeyman. profits of the workman. workmen. But a young man would pradlife with much more fufficient. diligence and attention. indeed. and the greater part of cor* poration laws. being paid in proportion to the work which he which he His could execute. In order to eredt a corporation. fairly invented and are well underftood. coming The trades. any young man. this education would generally in always a lofer. together. I. But the public would in this be a gainer. have been eftablifhed. by reftraining that free competition it. to be a compleat and wages. the myfteries. feven years end. and paying fpoil in his turn for the materials might fometimes through awkwardnefs and inexperience. But when both have been to explain to chap. cannot be acquired without much pradice and experience. and The mafter. requifite in it no other authority in antient times was many was parts of Europe. in the compleateft to how to apply the inftruments and how conftrud the machines. thofe of a few days might certainly be fufficient. In the He would for lofe all the wages of the apprentice. Vol. happlefl: efl'orts of 153 human ingenuity. the work of cheaper to market. the would all all be lofers. even in common trades. lefs when he came than at prefent. now faves. but that of the town corporate in which eftablifhed. artificers way much It and is to prevent this redu£lion of price. and confequently of wages profit. which would moft certainly occafion that all corporations. cannot well require more than the of a few weeks In the : leflbns perhaps thofe of a few days might be common mechanick trades. manner. would be.

not from the king. * See in p. dearer. were not always disfranchifed upon that account^ but obliged to fine annually to the king for permiffion to exercife their ufurped privileges*. pro- ceeded commonly. each clafs was obliged to buy the goods they had occafion for from every other within the town. the charter feems generally to have been readily clafs and when any particular of artificers or traders proper to as they ad as a corporation without a charter. The immediate infpe6tion of all corporations. and whatever difcipline was exercifed over them. But for this prerogative of the crown feems to have been referved rather the fubjeft. a charter from the king was likewife neceflary. but from that greater incorporation of which thofe fubordinate ones were only parts or members. Each clafs was eager it to eftablifli regulations to this purpofe. belonged to the town corporate in which they were eftablifhed . fo that fo they were enabled to far it fell their own jufl: as . much was as broad as long.. with the Madox Firma country . none of them But Burgi. were lofers by thefc regulations. indeed. of fuch regulations.154 THE NATURE AND CAUSES OF In England. provided was allowed do fo. corporate was altogether manifefl: in the and it was the intereft of of them. and. with their keep it own particular induftry . Sic. Upon paying a thought fine to the king. The government hands of traders and every particular clafs of towns artificers. as they fpecies of commonly which is exprels it. indeed. fuch adulterine guilds^ were called. was willing ta In confequence confent that every other clafs fliould do the fame. in reality to always underproper for ftocked.. than for the defence of the extorting money from common granted j liberty againft fuch oppreffive monopolies. as they fay and in the dealings of the different claffes within the town with one another. to prevent the market from being Qverftocked. But in recompence. fomewhat dearer than they otherwife might have done. and of the bye-laws which they might think proper to enadl for their own o-overnment. their dealings 26.

with a fmaller quantity of labour. In what gained upon the the advantage firft of thofe two branches of commerce.THE WEALTH OF NATIONS. country they were all 155 great gainers . of the workmen. ways firft. of their to it maflers or immediate employers: by fending a part both of the rude and manufaftured produce. By means of lefs to thofe is given to the inhabitants of the town than would otherwife fall to them . tend to enable the its purchafe. by fending back to country a part of thofe in materials is wrought up and manufactured which cafe their price profits augmented by the wages of the workmen. It and all the materials of induftry. orof diftant parts of the fame country. They give the traders and artificers in the town an advantage over the landlords. in which cafe too the price of thofe goods is augmented by the wages of the fits carriers or failors. The wages ployers. imported into the original town . and break down that natural equality which would otherwife take on between them. farmers* and labourers in the country. therefore. Whattown tQ ever regulations. and the fecondly. the produce of a greater quantity of the labour of the country. and in thefe latter deal- ^ ^J^ '-' P* ings confifts the whole trade which fupports and enriches every < ^ town. and the profits of their different em- make up the whole of what is gained upon both. fociety is place in the commerce which is carried The whole annual produce of the labour of the fets annually divided between thofe two different thofe regulations a greater fhare of it of people. and a of the country. pays for thefe chiefly in two the . : from the country. either of other countries. The . X 2 . which the town makes by manufadtures its in what is gained upon the fecond. the advantage of inland and foreign trade. Every town draws its its whole fubfiftence. and by the prois of the merchants who employ its them. tend to increafe thofe vp-ages and profits beyond what they otherwife would be. confifts .

and that of the country lefs advantageous. and often teach them. the raifing of rude produce by the improvement and cultivation of land- Induftry. by voluntary aflbciations and agree- ments. The induftry of the town becomes more. are neceflary keep a thoufand fpinners and . at leaft. and even where they have never been incorporated. the induftry which properly belongs to towns. run moft eafily into fuch combinations. muft be better rewarded. feme place or other. or to communicate the fecret of their trade. and ma- annually imported into is the quantity of it. therefore. the averfion to take apprentices. caa combine together. yet the corporation fpirit. The trades which employ but a fmall number of hands. every where in Eui'ope. fatisfy ourfelves we may In by one very fimple and obvious obfervatlon. The moft in infignificant trades carried on in towns have accordingly. the jealoufy of ftrangers. for one •who has done fo by that which properly belongs to the country. The dearer the latter are fold. perhaps. to Half a dozen wool-combers. being colleded into one place. been incorporated. But ftock and labour naturally feek the moft ad- vantageous employment.laws. The eafily inhabitants of a town. and defert the country. therefore.155 THE NATURE AND CAUSES OF The terials price which the town really pays for the provifions it. a hundred people who have acquired great fortunes from fmall beginnings by trade and manufadlures. hibit to prevent that free competition which they cannot pro- by bye. every country of Europe we find. without entering into any very nice computations. manufadures and other goods annually exported from the cheaper the former are bought. generally prevail ia them. refort as muck town. as they can to the They naturally. the wages of labour and the profits of ftock muft evidently be greater in the one fituatioa than in the other. more advantageous than that which carried on in the •country. That the Induftry which is carried on in towns is is.

fhall in And from is thofe volumes its we vain attempt to colIe£l that knowledge of various and complicated operations. There is fcarce any common mechanick trade. illuftrated by figures to explain them. the great trade of the country. By combining ^- can not only engrofs the employment. cannot eafily combine together. and the liberal profeflions. After are called the fine arts. Not . however* is perhaps no trade which requires fo great a variety of know- ledge and experience.THE WEALTH and weavers at OF NATIONS. how contemptuoufly foever the very contemptible may fome times affedt to fpeak of him. befides. The diredion of ope- raticiis. of which all the operations may not be as compleatly and diftindly authors of fome of them explained in a pamphlet of a very few pages.. as it is poffible for words arts. is and raife the of their labour much above what due to the nature of their work. In the hiflory of the now publlfhing by the French academy of fciences. nearly the fame. difperfed in diftant places. incorporated. written upon wifeft it in all The innumerable volumes which have been languages. They have fpirit not only never been but the corporation never has prcailcd necefl'ary among them. but reduce the whole manuprice fadure into a fort of flavery to themfelves. which commonly poffefled even by the common farmer. on the contrary. has never been regarded as a all matter very eafily underftood. fcveral of them are adlually explained in this manner. may fatisfy us. requires much more judgment and difcretion. that among the it and moft learned nations. not to take apprentices they 157 ^ ^iL '^ work. what there No apprenticefhip has ever been thought to qualify for hufbandry. which mult be varied with every change of the weather^ than that of thofe which are always the fame or very as well as with many other accidents. The inhabitants of the country.

works with inftruments of which the health. being accuftomed to confider variety of objedts. well known to every man whom both. is generally much fuperior to that of the other* till whofe whole attention from morning night is commonly oc- cupied in performing one or two very fimple operations. But the man who ploughs the ground with a team of horfes or oxen. The man who works upon and works with inftruments and upon materials of which the temper is always the fame. materials and temper are condition of the The which he works upon too is as variable as that of the inftruments which he works with. focial intercourfe He is lefs accuftomed. if corporation lav/s and the corporation did not pre- The where in fuperiority which the induftry of the towns has every that of the country. vent it. is Europe over not altogether owing to t . many branches of country labour require much more (kill and experience than the greater brafs part of mechanick trades. How either much the lower ranks of people in the country are really fuperior is to thofe of the town. indeed. His voice and language are more uncouth and to them. They would probably be fo every fpirit where. however.158 THE NATURE AND CAUSES OF Not only the art of the farmer. but the general diredion of the inferior operations of hufbandry. to lives in a than the mechanick who town. a greater more difficult to be underftood by thofe who are not ufed His underftanding. iron. of flupidity and ignorance. and both require to be managed with much judgment and difcretion. very different upon different occafions. ftrength. bufinefs or curiofity has led to converfe much with In China and Indoftan accordingly both the rank and the wages of country labourers are faid to be fuperior to thofe of the greater part of artificers and manufacturers. though generally regarded is as the pattern feldom defedive in this judgment and difcretion. or very nearly the fame. The common ploughman.

who have feldora They have com. and by belli g. than they are faid to have done in the century. other regulations. That induftry has ftock. can no- longer be employed with the antient profit in that fpecics of induftry which is peculiar to them. farmers. as the necefiary. It is fupported by many C li A p. monly neither inclination nor fitnefs to enter into combinations and the clamour and fophiftry of merchants and manufadlurers eafily perfuade them that the private intereft of a part. and the profits- of ftock employed in agriculture of trading and manulaft fadluring ftock. or in the beginning of the prefent. oppofed the eftablifhment of fuch monopolies. by creating a wages. This change may be regarded towns. and the increafe of by increafing the com- petition. have been greater formerly of country labour ap- than in the prefent The wages to thofe proach nearer to thofe of manufaifluring labour. neceflfarily reduces the profit. tend to the fame purpofe. itfelf. without fearing to be under-fold by the free competition of their fecure own countrymen. and labourers of the country. The enhancement of price occafioned by both every where finally paid by the landlords. its limits like every other. It new demand then rpreads neceffarily raifes if I may fay fo.THE WEALTH OF NATIONS. . The lowering of its profit in the town forces out ftock to the country. it where. The high duties upon foreign manufadlures all and upon all goods imported by alien merchants. In Great Britain the over that of the fuperiority of to the induftry of the townS' country. over the face of the land. is the general intereft of the whole. that though very to late confequence of the extraordinary encouragement given the induftry of the fo The it ftock accumulated in them comes in time to be great. Corporation laws enable the inhabitants of towns to raife their prices. to corporations 159 and corporation laws. for country labour.. is Thofe other regulations them equally againft that of foreigners. and of a fubordinate part of the fociety. feems times.

greatefl That every where Europe the to improvements of the country have been owing in fuch overflowings of the (lock originally accumulated 1 fhall the towns". fuch aflemblies . but the converfation ends in a confpiracy againft the publick.i6o THE NATURE AND CAUSES OF being employed in agriculture at is BOOK in part reftored to it the country. liable be difturbed and interrupted by innumerable and in every refpeit contrary to the order interefts. endeavour to explain as fully and diRindly enquiry. and every man of the trade a direction where to find every other of it. by any law which with liberty and would be confiftent But though the law cannot hinder people of the fame it trade from fometimes aflembling together. even for diverfion. or in fome contrivance to ralfe prices. man A REGULATION . the expeace of which. much lefs to render them ne- A REGULATION which town to regifter. and at the fame time de- monftrate. or juftice. that though fome countries have by this courfe attained to a confiderable degree of opulence. had originally in been accumulated in the town. facilitate ought to do no- thing to ceflary. uncertain. of nature and of reafon. either could be executed. accidents. I fliall laws and cuftoms which have given occafion to it. in a great meafure. to it is in itfelf neceflarily flow. I can in the third and fourth books of this People of merriment and the fame trade feldom meet together. to endeavour to fhow hereafter. places of abode in a It publick duals gives facilitates fuch connedts indivi- who might never otherwife be known to one another. The as prejudices. obliges all thofe of the fame trade in a particular enter their names and afl*emblies. It is impoflible indeed to prevent fuch meetings.

their their widows and orphans. common intereft to manage. A REGULATION vvhich enables tliofe of the i6i to fame trade fick. is The It is real is difcipline which exercifed over a workman. let A large particular fet of workIt is men upon mull: then this be employed. you would have your work muft be done in the fuburbs. An exclufive corporation weakens the force of this difcipline. even in fome of the moft neceftolerably executed. enacSt a The majority of a corporation can bye-law with proper penalties. by reflralning the competition in fome employments to a fmaller number than would Vol. which will limit the competition more efFedually and more durably than any voluntary combination whatever. where the workmen having no to exclufive have nothing but their charadler it depend well as upon. In a free trade an efFedtual combination cannot be eftablifhed but by the unanimous evei-y confent of fingle trader. Y . not that of his corporation. tax ^ «> J^ ^A • P* themfelves in order to provide for their poor. and it cannot laft longer than every fingle trader continues of the fame mind. renders An aft incorporation not only renders them necefTary. and you muft then fmuggle into the town as you can. The and pretence that corporations is are necefTary for the better government of the efFedual trade. fear of lofing their but that of his cuftomers. by giving them a fuch aflfemblies neccflary. I. fary it trades. It is in this manner that the policy of Europe. reftrains the employment which his frauds and neceflarily correds his negligence. without any foundation. account many incorporated towns no tolerable workmen If are to be found. privilege. but makes the of the majority binding upon the whole. that in them behave well or ill.THE WEALTH OF NATIONS.

paid for their work according their to the contrail: they may happen to make with refpedive fuperiors. The tition in policy of Europe. their own expence. fcholarfhips. either a trade. It has been confidered as of fo much importance that a proper number of young people fhould be educated fions. in order to accept employment. and fometimes the piety of penfions. The long» therefore.i62 THE NATURE AND CAUSES OF would otherwife be difpofed to enter into BOOK them. are willing of a much fmaller recompence than entitled what fuch an eduand in this cation would otherwife have them to . for this purpofe. many ex^ &c. is the education of the greater part of churchmen paid for in this manner. five after the middle of the fourteenth century. compare curate or a chaplain with a journeyman in any of a curate or chaplain. of thofe who are. manner the competition of the poor takes It away to the reward of the rich. occafions a very im- portant inequality in the whole of the advantages and difadvantages of the different employments of labour and flock. containing about . burfaries. merks. They which Till are. which draw many more people into thofe trades than could otherwife pretend to follow them. to get the church being crowded with people who. as common The pay may very properly be confidered of the fame nature with the wages of a journeyman. I believe. would be indecent. In all chriflian countries. fometimes the publick. by increafing the compeit fome employments beyond what naturally would be» oc- cafions another inequality of an oppofite kind in the whole of the advantages and difad vantages of the different employments of laboup and flock. Secondly. however. no doubt. all three. private founders have eflabliflied hibitions. for certain profef- that. at Very few of them are educated altogether tedious and expenfive education. will not always procure them a fultable reward.

is fum indeed does not exceed what labourers in frequently earned by com- mon many country parifhes. that of a journeyman fuppofing to mafon. eqjai to nine-pence of our prefent money. The wages of both thefe labourers. were much fuperior thofe of the curate. much it filver as ten pounds of our prefent money. them to have been conftantly employed. the matter mafon. the cures have in feveral places been meanly the bilhop is.THE WEALTH about as OF NATIONS. fuppofing the year. it is fully equalled By the I2th of Queen Anne." Forty pounds a year reckoned at this prefent very good pay for a curate. and three-pence a day. main- declared. But the law has upon many occafions attempted to the wages of curates. not exceeding fifty and not is than twenty pounds a year. Whenever it the law has attempted to regulate the wages of workmen. 25 Y 2 feems . rather to lower has always been them than to raife raife them. filver containing the fame quantity of as a fliilling of our prefent money. parifli prieft. therefore. to oblige the pariflies give them more than the wretched maintenance which they themfelves might be willing to accept of. therefore. IIL law • See the Statute of J-abourers. The wages of them. " That whereas fupplied. and notwithftandmg a€t of parliament. year. him c. and there kind in that metropolis laft an induftrious workman of any who does not earn more than twenty. empowlefs " ** *' ered to appoint by writing under his hand and feal a fufficient certain ftipend or allowance. to have been without employment one-third of would have 12. was declared to be the pay of a matter mafon. At the fame period four-pence a day. as kJj p. was in C H a England the ufual pay of a curate or ftipendiaiy we find regulated by the decrees of feveral different national councils. for want of fufEcient " tenance and encouragement *' to curates. And in both cafes the Ed. redlors of and for to the dignity of the chufch. there are many is curacies under twenty in pounds a There are journeymen fhoe-makers fcarce London who earn forty This pounds a year.

phyfick. entire degradation of the now refpedable profeffions of law and phyfick. on account of the indigence of their fituation and the multitude of their competitors . and in is countries. to fink thofe it of labourers to the degree that was intended either the one becaufe has never been able to hinder from being willing to accept of lefs than the legal al- lowance. and of feveral other proteftant churches. The example of the churches of Scotland. fink very the competition would foon be fo great. the lottery of the church in reality Roman Catholick much more advanmay is tageous than is neceflary. on account of the contrary competition of thofe either profit or pleafure who expeded to derive from employing them. to might then not be worth abandoned any man's while his educate his fon to either of thofe profeffions at own expence. or the other from receiving more. and has never either been able to raife the BOOK wages of curates or .i64 THE NATURE AND CAUSES OF feems to have been equally inefFedual. whole numbers and would oblige them in general to content themfelves with a to the very miferable recompence. In England. that in fo us creditable a profeflion. The to refpeCt paid to the profeflion for the all makes fome compcnfation even them pecuniary recompence. in which education fo eafily procured. as to It much their pecuniary reward. fatisfy of Geneva. That . They would be entirely to fuch as had been educated by thofe publick neceflities charities. The great benefices and other ecclefiaftlcal dignities fupport the honour of the church. if fuch as law and at an equal proportion of people were educated the publick expence. decent. notwithflanding the mean circumftances meannefs of their of fome of too its inferior members. and refpedable men into holy orders. In profeffions in which there are no benefices. the hopes of fufficient much more moderate benefices will draw a number of learned.

of The time and what is the genius^ knowledge. to more ufeful.ufeful acquired himfelf: which he had a- And this is ftill more honourable. would un- than letters it is. therefore. been educated at their own. and their numbers are every where fo great as commonly to reduce the price of their labour to a very paultry recompence. fmall as doubtedly be indigent lefs may appear. the only a employment his talents. with indigent people who have been brought up to it at the publick expence . TiiAT unprofperous letters. profitable employment art than that other of writing for a bookfeller. and application of the requifite to qualify an eminent teacher fciences. a fcholar and a beggar feem have been terms very nearly fynonimous. becaufe the trade of the one i& crowded. Before the invention of the art of printing. Before by which was the invention of the art of printing. printing has which the ftudy. but have been hindered different reafons from entering into holy orders. But the ufual reward of the emi- nent teacher bears no proportion to that of the lawyer or phyfician . . whereas thofe of the other two are incumbered with very few who have not: however. of publick and private teachers. or by communicating to other people the curious and. are 165 race of men commonly called men of C v II A ^. The ufual it recompence. and in general even a more given occafion. They have generally. man of letters could make any thing by knowledge furely a that of a publick or private teacher.THE WEALTH OF NATIONS. The dif-- ferent governors of the univerfities before that time appear to have In often granted licences to their fcholars to beg. are at leaft equal to necefTary for the greatefl praditioners in law and phyfick. p: 1 pretty much in the fituation which lawyers and phyfifuppofition. been educated at the publick expence. cians probably would be in upon the foregoing by In every part of Europe the greater part of them have been educated for the church. if the competition of thofe yet more men of to who write for bread was not taken out of the market.

time the moft fafhionable of therefore. Something not of thofe two fums. he faid to have had an hundred fcholars. to fell fuch a bargain for fuch a pnce. ought certainly to be wife themfelves. faid by Plutarch another place. have been much more confiderable. underftand attended will this to be the number call whom he taught at one time. He is muft have made. lefs He certainly does and we may be affiired : was not than he reprefents fix fliillings it. fuppofe that was . reproaches the teachers of his own times with inconto " They make the mofl magnificent promifes and undertake juft. fciences. who all taught too what was at that rhetorick. therefore. happy. Gorgias made a prefent to the temple of Delphi of his I own it ftatue in folid gold.i65 THE NATURE AND CAUSES OF In antient timesj before any charities of this kind had been eftabliflied for the education of indigent people to the learned profefto fions. or thirty-three pounds fix and eight pence. to have been his Didadron or ufual price of teaching. or a who what we would one courfe of ledtures. Four minse were equal five thirteen pounds and eight pence minas to fixteen lefs pounds than the thirteen largefl: fhillings and four pence. their to be fcholars. When he taught at I Athens. We 6 muft not. have been ufually paid Ifocrates himfelf fhillings the mofl eminent ten demanded mince. 8d. They who he would not that to continues he. a thoufand minae. in A thou- fand minae. and to be and in retura for fo five important a fervice they ftipulate the paultry reward of four or teach wifdom. accordingly. fays he. fiftency. minx. but if any man was be convidled of the moft evident folly. to muft at that time teachers at Athens. Many other eminent teachers in thofe times appear to have acquired great fortunes. or 3333/. to teach them to be wife. 6s. from each is fcholar. in what is called his difcourfe againft the fophifts. number which not appear extraordinary from fo great a city to fo famous a teacher." mean here it to exaggerate the reward. by each courfe of ledlures. prefume. the rewards of eminent teachers appear Ifocrates.

faid to have lived with a good deal of magnificence.. thought to Athens. when the competition their labour had probably fomewhat reduced both the price of the admiration for their and perfons. however. was as 167 large as the life. appear always have enjoyed a degree of confideration like much fuperior The Athenians ftoick. Plato himfelf Ariftotle. fent Carneades the academick. returu refume the teaching of his lefs Teachers than they of the fciences were probably in thofe times common came to be in an age or two afterwards. in which education is carried on. and though it had then declined from former grandeur. but the cheapnefsof literary education furely an advantage which greatly over-balances ftill this trifling incon- veniency. as well as that of CHAP. is eminent teachers of to thofe repreiented is by Plato fplendid even oftentation. notwithftanding. to any of the profeflion in the prefent times. times. may fomewhat degrade the profefis lion of a publick teacher. it.^' . Hippias and Protagoras. was more reafonable than it is at prefent through the greater part of Europe. His way of two other as living. both by him and to his father Philip. The lation policy of Europe. fchool. and. their confideration for him muft have been very inequality great. birth. and Diogenes the their . by obftruding the to free circu- of labour and ftock both from employment employment. was ftill an independent and confiderable republick.city upon a folemn embaffy to its Rome. in order to worth while. if the conftitution of thofe fchools and colleges. perhaps* It rather advantageous than hurtful to the publick. The publick too might derive greater benefit from . Carneades too was a Babylonian by and as there never was a people more jealous of admitting foreigners to publick offices than the Athenians. This is upon the whole. is it univerfally agreed.THE WEALTH OF NATIONS. to after having been tutor as it Alexander and moft munifi- cently rewarded. to The moft eminent of them. Thirdly.

abfurd laws not hinder them. cafe. different manufaftures. a continual demand for new hands : The is in a declining ftate. find a refource in . and fometimes in the fame neighbourhood. however. for example. even in the fame employment. but as it is much tivaled . ©pen body. Thofe two manufadlures may lend the leaft aififtance to one fometimes be in the fame town. were decaying. thofe in obliged to in an ad- content themfelves with bare fubfiftence. nor fmk low in the decaying manuis. are almoft entirely is That of weaving is plain woollen that fomewhat different but the difference fo infignificant either a linen or a filk weaver might become a tolerable workman in a very few days. not by a cul- particular flatute. BOOK occafions in feme cafes a very inconvenient inequality in the whole of the advantages and difadvantages of their employments. other is therefore. it The to €xclufive privileges of corporations obftru(3: other. therefore. The flatute of apprenticefhip obftrudts the free circulation of to another. the operations are fo much of alike. fadure. ftate. If any of the thofe three capital manufadlures. workmen might in a one of the other two which was rife more profperous condition and too their wages would neither too high in the thriving. to The ftatute of apprenticefliip may oppofe it in the one and both that and an exclufive corporation in the other. without being able another. that if the thofe workmen could eafily change trades with one andid filk. In many other. m from one place an- It frequently happens that while high wages are given another are to the workmen vancing in one manufadlure.i6S THE NATURE AND CAUSES OF and from place different to place. The linen rnanufadlure to every indeed in England. The one is and has. and the fuper-abundance of hands continually increafing. The arts weaving plain linen and plain the fame. la- bour from one employment even in the fame place.

may be worth while to give fome account of the progrefs. or even in being allowed to exercife his induftry in any parifh but that to which he belongs. corporate. Z - . to another.THE WEALTH OF NATIONS. wherever the ftatute of apprenticefhip takes place. every where much eafier for a Vvrealthy merchant to obtain the privilege of trading in.When . It confifts in the difficulty which a poor man the cir- finds in obtaining a fettlement. it I believe. Whatever employment tity obftrufts the free circulation of labour from one . for come upon the parifli. to every part is. and prefent flate of this diforder. obftruded by obtaining fettlements obftruds even that The difficulty of of common labour.. the greateft perhaps of any in the Vol. obftruds that of flock likewife the quan- of flock which can be employed in any branch of bufinefs depending very much upon that of the labour which can be employed in it. I. police of England. have no other choice but either to common qualified labourers. Corporation laws. tlvated through the greater part of the country. by tlieir habits. give lefs obftrudtion to the free circulation of flock It is from one place to another than to that of labour. therefore. peculiar to England. They chufe to come upon the parifh. It is labour of culation artificers is and manufacturers only of which the free corporation laws. That which is given to by the poor laws fo far as I knov/. blance to their ov/n. It rife. who. which. a town it. than for a poor artificer to obtain that of working in The obflrudlon which corporation laws give to the free circu-' is lation of labour common. of Europe. they fort or to are work as much worfe than for any of manufadure that bears any refemgenerally. however. it 1C9 can afford no general refourcc to the workmen of other decaying manufadurcs.

laft after fome variation. Who confidered as the poor of each parifh. wardens or overfeers of the parifh where he came BC7T . to the difcharge of that to which they properly belonged. v. ift It was enadted. that the forty days undiflurbed refidence any perfon neceffary from the time of his abode to gain a fettlement. a queftioa of fome importance. . its c. fhould be accounted only his delivering notice in writing. therefore.170 THE NATURE AND CAUSES OF I. and by keeping themfelves con- cealed for forty days to gain a fettlement there. or could parifla give fuch fecurity for the difcharge of the living. who. it is faid. therefore. upon complaint th. By the neceflity of providing for their parifh. his family. it was enaded by the 43d of Elizabeth. with. as thofe juftices fhould where he was then judge fufficient. that every pariQi fhould be bound to provide fop own poor and that overfeers of the poor fhould be annually^ appointed.ere committed in confequence of thiff parifh officers fometimes bribing their own poor to go clandeftinely to another parifh. competent fums for this flatute this purpofe. II. refidence fhould gain perfon a fettlement in any parifh fliould be but that within that time lawful for two juflices of the peace. rate. When 2. of by the of James II. became. frauds. fhould raife by a parifh.e made by church -wardens or overfeers of the poor. to the parifh to remove j- any new inhabitant where he was laft legally fettled unlefs he either rented a tenement of ten pounds a year. Some ftatute. to of the place of and the number of one of the churchto dwell. own were poor to be was indifpenfably impofed upon every This queflion. ' BOOK by the deftrudlion of monafterles the poor had beem deprived of the charity of thofe religious houfes. the churchwardens. was it at determined by the 13th and 14th of Charles that when was any^ it enabled forty days undiflurbed . after fome other ineffedual attempts for their relief.

by removing him. fays Dodor Burn. to try the right. " '* After all. was fuppofed have an to prevent as it much as poffible their being burdened by fuch intruders. and taking no proper parifli. it by being eleded into an annual parifli office and ferving in a year^ the third. As every inierefl: perfon in a therefore. if a perfon's fuch. by forty days inhabitancy. *' very feldom obtained . fettlement llflied. appointed four other ways by which a might be gained without any notice delivered or pubThe firfl: was. But parifliea. was further enaded by the 3d of William that the forty days refidence fliould be accounted only from the publication of fuch notice in writing on Sunday in the church immediately after divine fervice. fteps in confequence of to it. were not always more lionefl: with other ^ HA P. this kind of fettlement. by being taxed to parifli rates and paying them .THE WEALTH OF NATIONS. by ferving an 2i apprenticefliip in the parifli 2 . receiving the notice. regard to their own. and the defign of the ads as for is not fo much by But is " for gaining of fettlements. the fecond. than they had been with regard to and fometimes connived at fuch intrufions. rendered it almofl: impradicable for a man to gain a new it fettlement in the old way. therefore. . : perfons coming into a parifh clandeftinely notice is for to the giving of ^ " '** only putting a force upon the fituation is parifli remove. that fliall it is doubtful whether he notice adually removeable or not. by is continuing forty days after publication of notice in writing. ij-i parifh officers. III. it feems. he the parifli either to allow by giving of compel him a fettlement uncontefted. '^ the avoiding of them. by fuf- " fering him *^ to continue forty days or." This poor flatute. But that might not appear pariflli to preclude altogether eftablifliing the common people of one it from ever themfelves with fecurity in another.

whether labourer or artificer. firfl: ways» but by the publick deed of the whole aware of the confequences to adopt who are too well. how healthy and induftrious overfeer. re- No Ihip or independent workman. a thing impoffible for one who has nothing but his labour to live by . >but his labour to fupport him. that even at this day. that no married fervant fhall gain any fettlement by being hired for a year. by being hired fame fervice into fervice there for a year. and continuing in the during the whole of Nobody can gain a fettlement by either of the two parifli. any new comer who has nothing him to parifli rates. and fervants are not always willing to laft be fo hired. it. the law intends that every fervant hired for a year. they might thereby lofe their original fettlement in the habitation of their parents and the places of their nativity. No tvvfo married man can well gain any fettlement in either of the is lafi: ways.172 THE NATURE AND CAUSES OF parifh . and it is exprefsly enaded. or could give fuch fecurity for the difcharge of the parifh as two . therefore. becaufe as every fettlement difcharges all the fore- going. is it is evident. fettlement by fervice. BOOK the fourth. unlefs foever. if no particular term is agreed upon. any new fettlement either by apprenticefuch a perfon. But mafters are not always willing to give their fervants a fettlement by hiring them in this manner . has been to put out in % great meafure the old fafhion of hiring for a year. either by taxing or by eledlng him into a parifh office. which before had been fo cuftomary. the caprice of any churchwarden or he either rented a tenement of ten pounds a year. lations. An apprentice fcarce ever married. carried his inliable to by When at duftry to a new parifh. is in England. he was be removed. The principal efFe£t of introducing. likely to gain fervice.

one • whole year and confequently neither by nor by paying flat. 18. but they cannot well require lefs than thirty pounds.THE WEALTH OF NATIONS. that if any perfon fhould bring laft from the parifh where he was legally fettled. being rity fufficient for the difcharge. In order to reftore in fome meafure that free circulation of labour which thofe different ftatutes had almoft entirely taken away. parifli rates. And in order to give the certificated mofl perfe£t fecurity fhould to it the parifh where fuch man come to refide. How . and that then the parifh which granted the certificate fhould be obliged to pay the expence both of his maintenance and of his removal. that he fhould not be removeable merely upon acbut only upon count of his being likely to become chargeable. fliould is judge fufEcIent. his own account in an annual parifh notice. tenement of ten pounds a year^ or by office for upon . two they jufticcs 173 fecurity of the peace indeed. that he fliould gain no fettlement there except either by renting a ferving by any means whatever. By the 8-th and 9th of a certi- William ficate III. left altogether to their difcretion. What it chap.of the But this is a fecu- which fcarce is any man who lives by labour can give. the invention of certificates was fallen upon. it was enacted. and allowed by two juftices of the to receive peace. By the iqth that i. certificated neither the fervants nor apprentices of fuch man fhould gain any fettlement in the parifh where he refided under fuch certificate. that every other parifli fhould be obliged him . and much- greater fecurity frequently demanded. c. it was further enaded. nor by apprenticefhip. his becoming adually chargeable. as not parifh. of Queen Anne too. fhall require. was further enadled by the fame fiatute. fubfcribed by the churchwardens and overfeers of the poor. not gain any perfon a fettlement. thirty that the purchafe fliall even of a fi'eehold eftate than pounds value. having been of lefs enaded. nor by fervice.

" have the certificated this perfons again. and that the parifli " and cannot be removed. " It is obvious. that perfons refiding them can gain no fervice." Though a certificate carries along with it no teftlmonial of . neither by apprentlcefliip. " by putting *' in the life . fays he. power of officer. namely. that there are comunder to fettle in " divers good reafons for requiring certificates with perfons " ing *' *' any place. certainly known whither if remove and for fall fick. and certifies nothing but that the perfon belongs to . nor by paying fettle that " they can neither it apprentices is nor fervants that if they to "become *' chargeable.1^4 "THE How away. and in The moral of to refide. them. that certificates ought always to be re- quired by the parifli where any poor man comes by that and that they ought very feldom to be granted which he proin this matter pofes to leave. fettlcment. they ^' maintenance in the mean time. to it imprifon a man as it were for however incon- " venicnt *' may be for him to continue at that place where he is has had the misfortune to acquire what called a fettlement. " There fays is fomewhat of fame very hardfliip " of certificates. by nor by giving notice. ordinary cafes. their and the parifli fhall be paid for the removal. vation NATUHE AND CAUSES invention has reftored that free O^ circulation of entirely far this labour which the preceding ftatutes had ahnoft taken we may learn from the following very judicious obferof Dodor Burn. is far more " than an '* but that they will a worfe condition. or " whatever advantage he may propofe *' to himfelf by living elfe- where. *' which gave the certificate muft maintain them tificate." the intelligent it author in his a parifh Hiftory of the Poor Laws. . nor parifli rates . obfervation feeras to be.good behaviour. : None of all which can be without a cerproportionably for pariflies for it " *' Which reafons will hold not granting certificates in equal chance.

it is altogether difcreit. to the parifli to 175 which he really does belong. conftantly in Scotland. fays Doctor Burn. a little In fuch countries. yet we never wages meet with thofe fudden and unaccountable differences in the in of neighbouring places which v/e fometimes find it is England. may fometimes but a by fufferance without one man in with a wife and family who fhould attempt to do foy fingle. who is healthy J and induftrious. cannot as it isi always be relieved by their fuper-abundance in another.THE WEALTH OF NATIONS. carry his induftry from one parifh to another without a A. or wherever in the neighbourhood of a great la- elfe there is an extraordinary demand for bour. I believe. to a poor man who would certificate. would moft parifhes be fure of being removed.fingle refide man. The fcarcity of hands in one parifh. he would generally be removed likewife. and if the man fhould afterwards marry. and fink gradually as the diflance from fuch places increafes. tionary in the parifh officers either to grant or torefufe A man- damus was once moved wardens and overfeers for. Bench rejected the motion as a very flrange attempt. therefore. where often more difficult for a poor man to pafs the artificial boundary of a parifh. The England very unequal price of labour which in places at we frequently find is ir» no great diflance from one another. an evident violation of naturaL . till they fall back to the common rate of the country . indeed. in all other countries where there is no difficulty of rife fettlement. thougb wages may fometimes town. pro- bably owing to the obftrudllon which the law of fettlements gives. to compel the churchbut the court of King's to fign a certificate. To remove a man who has committed no mlfdemeanour fromis the parifh where he chufes to refide. diftindtly different- natural boundaries rates of which fometimes feparate very wages in other countries. and. than an arm of the fea or a ridge of high mountains.

lay afide in all its Dodor Burn. fhillings workmen from * accepting. their and miles round from giving. all matter taylors in London. " there would be no emulation. . feems time to " *' endeavours to bring under UnOi regulations. There will is fcarce a poor venture to fay. I who has not in fome part of his life felt fettle- himfelf moft cruelly opprefTed by this ill-contrived law of jnents. man in England of forty years of age. and afterwards by particular orders of " By the experience of it the juftices of peace in every particular county. the 8th of George III.J76 THE NATURE AND CAUSES fural liberty and juftlce. con- have now for more than a century toget|ier fuffered them- felves to be expofed to this oppreffion without a remedy. I SHALL it conclude this long chapter with obferving. ftill attempt fome- times to regulate wages in particular trades and in particular places. firft by general laws extending over the whole kingdom. what : own nature feems incapable of minute limitation for if " perfons in the fame kind of work were to receive equal left for wages. that general a warrants. fo jealous of their liberty. as an abufive to pradlice undoubtedly." Particular Thus and a£ts of parliament. OF people of it BOOK The common people of England. how- ever. fays above four hundred years. both thefe practices ^' have now gone all entirely into difufe. however. more than two and feven- . and no room •*' induftry or ingenuity. prohibits five under heavy penalties it. but like the common moft other countries never rightly underftanding wherein fifts. but fuch one was not likely occafion any general oppreffion. that though anciently was ufual to rate wages. Though been the againft men of refledlion too have fometimes complained of the law of yet it fettlements as a publick grievance. obje£l of has fuch never as any general popular clamour.

price of the firft it ancient ufage. Whenever the legiflature attempts to regulate the differences their /—— between mafters and mafters. provifions and other The affize of bread is. Thus the law which obliges in the mafters in feveral different trades to pay their workmen It mo- ney and not real hardlhip in goods. juft therefore. When mafters combine together in order to reduce the wages of their workmen. enforces by law that very regulation which fometimes attempt to eftablifh it by fuch combinations. in favour of the workmen. Were the workmen to enter into a contrary combination of the fame kind. This law III. not to give more than a certain wage under a certain penalty. wife always and equitable. 177 ^ ' HA P.THE WEALTH OF NATIONS. The method Vol. the only remnant of this an exclufive corporation. I. A a . is is in favour of the workmen but the 8th of George in favour of the mafters. But the 8th of mafters George III. which they pretended to pay. is quite juft and equitable. they commonly enter into a private bond or agreement. except in the cafe of a general mourning. But where there better than none. workmen. would treat the mafters in the fame manner. the competition will regulate much any affize. In antient times too profits it was ufual to attem]pt to regulate the of merchants and other dealers. feems perfedly well founded. not to accept of a certain wage under a certain penalty. Where is there may it perhaps be proper to regulate the neceflary of life. feven-pence halfpenny a day. fo far as I is know. by rating the price both of goods. The complaint of the workmen. It impofes no upon the mafters^ only obliges them to pay that value in money. the law would punifh them very feverely it and if it dealt impartially. its counfellors are always is the When it is the regulation. in goods. . but it is fometimes other- when in favour of the mafters. that puts the ableft and moft induftrious upon the fame footing with an ordinary workman. but did not always really pay.

The proportion between them. at leafl for any by any fuch revolutions. the advancing. has produced no fenfible advan- In the greater part of the towns of Scotland. however. . as has already been obferved.178 B THE NATURE AND CAUSES OF K method of George II. altered. and the eftablifliment of one. feems not to be much affeded. there an incorporation of bakers ftri£tly who claim exclufive privileges. till This defe£t was not remedied affize the gd of George III. which does not exift there. The want of an occafioned no fenfible inconveniency. is where it has yet taken place. 00 fixing the aflize of bread eftablifhed by the 31ft of could not be put in pradice in Scotland. in the few places tage. or declining ftateof the fociety. though they affed the general affedl wages and muft in the end them equally in employments. Such revolutions rates both of all different in the publlck welfare. muft remain the fame. on account of a its defedt in the law. therefore. ftationary. profit. and cannot well be confiderable time. The profit proportion between the different rates both of wages and the different in employments of labour and flock. though they are not very guarded. by the riches or poverty. execution depending upon the office of clerk of the market.

or the rent for which it is meant that land fhould for the moft part be lett. makes him accept of too. The lord cafe rent of land. no doubt. the liberality.ore circumftances of the land. over and above this fhare. pays the labour. which evidently the higheft the tenant can afford to pay in the adual m. the ordinary profits of farming ftock in the neighbourhood. fomewhat lefs than this portion . This. leafe. the landlord In adjufling the terms of the endeavours to leave him no greater ihare of the is produce than what furnifhes fufficient to keep up the ftock from which he the feed. CHAP. This is evidently the fmalleft fliare with which the tenant can content himfelf to leave without being a lofer. it may be thought. he naturally is endeavours to referve to himfelf as the rent of his land. frequently the ignorance.THE WEALTH OF NATIONS. and fometimes though more to rarely. may ftill be confidered as the natural rent of naturally land. or ordinary profits to content himfelf with than the of farming ftock in the neighbourhood. confidered as the price paid for the ufe of land. is RENT. Of XI. portion. of the landlord. whatever part of its price. Whatever part of the produce. and the landlord feldom means him any more. Sometimes. however. the ignorance of the tenant makes him undertake fomewhat lefs pay This fomewhat more. is what is the fame thing. . it may be partly the upon fome occafions for can fcarce ever be more than partly the A a 2 . or. naturally the higheft which the tenant can afford to pay in the adual circumftances of the land.79 the Rent of Land. is frequently no more laid than a reafonable profit or intereft for the ftock out by the land- upon its improvement. . and purchafes and maintogether with tains the cattle and other inftruments of hufbandry. indeed.

demands a rent for as much his corn fields.i8o THE NATURE AND CAUSES OF the cafe. are not always made by the flock of the landlord. making glafs. befides. It is partly paid in fea fifh. The fea in the neighbourhood of the fifh. as if they had been made by his own. and one of the very a part of the price of that few inftances in is which rent makes com- modity. whofe eftate it is bounded as for a kelp fhore of this kind. human by The landlord. BOOK The landlord demands a rent even for unimproved land intereft or profit and the fuppofed is upon the expence of improvement Thofe improvements. naturally a monopoly price. not to what the farme^ the land can make by the land. yields an alkaline fait. which make a great part of the fub- But in order to profit by the produce of land. which. and of which the produce. they muft have a habitation upon the neighbouring The rent of the landlord is in proportion. laid It is not at all proportioned to what the landlord may have out upon the improvement . but fome- times by that of the tenant. the landlord commonly demands the fame augmentation of rent. He fometimes demands rent for what is altogether incapable of human improvement. however. When all the leafe comes to be renewed. therefore. The rent of land. which are twice every day covered with the fea. iflands of Shetland is more than commonly abundant in fiftence of their inhabitants. particularly in Scotland. upon fuch rocks only as lie within the high water mark. ufeful for when and Great burnt. foap. purpofes. to be found in that country. the water. but to what he can make both by and the water. was never augmented by induftry. for feveral other Kelp is a fpecies of fea-weed. however. generally an addition to this original rent. therefore. is confidered as the price paid for the ufe of the land. It grows in feveral parts of Britain.

therefore. according to different circumftances. or a low rent. or no more. the ftock which muft be employed in bringing them is with its ordinary profits. Rent. price is high or low. enters into the compo- of the price of commodities in a different way from wageg It is and profit. and there are others for which price. fecondly. Whether or more. affords a high rent. the price is. that is its . or to i8i . of becaufe high or low wages and profit muft be paid. But it is be- price high or low a great deal more. in order to bring a particular commodity caufe its to market. If it is not more. High or low wages and is profit. high or low rent the effeO. There is are fome parts of the produce of land for which the than what demand mufl always be fuch fufficient it as to afford a greater price to bring them to market. or low price. though the commodity afford may be brought to market. firfl. The former mufl always The fometimes may. of thofe which fometimes . depends upon the demand.THE WEALTH OF NATIONS. it If the ordinary price more than the it is furplus part of will naturally go to the rent of the land. or very little more. what the farmer can afford to give. of thofe parts of the produce- of land which always afford fome rent. together this. at all. latter either may or may not be fuch as to afford this greater afford a rent to the landlord. that it than what is fufhcient to pay thofe wages and or no rent profit. and fometimes may not. what he can afford to take but to chap. can not no rent to the landlord. are the caufes of high it. iition it is to be obferved. Such broguht parts only to of the produce of land can is commonly be market of which the ordinary price fufRcient to replace thither. The particular confideration. improvement of the land.

in the different periods of improvement. will divide PARTI. therefore. AS in men. and fomebody can always be found who is willing to do fomething in order to obtain labour. food is always. The furplus too always more than together fufficient to replace the ftock which employed that labour. produces a greater quantity all of food than what for bringing it fufficieut to maintain the labour neceffary to market. a greater or fmaller quantity of labour. Norway and Scotland produce fome of pafture for J X of which the milk and the increafe are always . thirdly. more or lefs. with its profits. Of the Produce of Land which always affords Rent. and with this chapter into three parts. and. naturally take place. commonly main- But land. is not always equal to what could maintain. in the moft liberal way Is in which that labour is ever maintained. on account of the high wages which are fometimes given to labour. it But can always purchafe fuch a quantity of labour as is it can maintain. can always purchafe or command it. if managed in the moft osconomical manner. The fort moft defart moors in cattle. Something. manufactured commodities. indeed. •— v^ of the variations which. when compared both with one another.i82 THE NATURE AND CAUSES OF fometimes ' BOOK may and fometimes may not afford rent . according to the rate at which that fort of labour tained in the neighbourhood. naturally multiply in proportion means of It their fubfiflence. demand. in the relative value of thofe two different forts of rude produce. in almoft is any fituation. always remains for a rent to the landlord. to the like all other animals. it The quantity of which it can purchafe.

by breaking down the monopoly of the country neighbourhood. A fmaller proportion of this diminiftied furplus. fertile in a diftant part gives a greater rent than land equally of the country. to bring muft always coft more and the produce of the diftant land to market. as has already been fhown. and to pay the ordinary . the furplus. Though it it may cofi: no more labour to cultivate the one than the other.. Land in the neighbourhood of a town. They are advantageous to in its the town.THE WEALTH OF NATIONS. which muft always be the moft extenfive circle of the country. and navigable rivers. They encourage the cultivation of the remote. its whatever be its pro^ duce. canals. 183 the labour not only to maintain all CHAP. muft belon<^ to the landlord. therefore. the produce. always more than fufEcient. and to collect their produce.- . muft be diminiftied. therefore. But in remote parts of the country the rate of profit. The rent of land varies with its fituation. its fertility. neceflaxy for tending them. and with whatever be fertility. of all They upon improvements. labour becomes requifite to tend them. nefs of the pafture. A greater it . is generally higher than in the neighbourhood of a large town. The landlord gains both ways. maintains a greater number of lefs but as they are brought within a fmaller compafs. but to afford fome fmall the good- The rent increafes in proportion to The fame extent of ground not only cattle. profit to the farmer or owner of the herd or flock rent to the landlord. put the remote parts of the country more upon are a level with thofe in the that account the greateft neighbourhood of the town. by diminifliing the expence of carriage. Good nearly roads. quantity of labour. by the increafe of and by the diminution of the labour which muft be maintained out of it. from muft be maintained out of profit which are drawn both the of the farmer and the rent of the landlord.

have and their cultivation has been improved fince that time. are all then occupy to cattle. old market. Monopoly. this greater furplus would every where be of greater value. are very different in the different periods of agriculture. is a great enemy to good management. Thofe remoter counties. however. its cultivation requires much more feed labour. But the relative values of thofe two different fpecies of food. cultivation. and 7 . tioned the parliament againft the extenfion of the turnpike roads into the remoter counties. Though labour. the unimproved wilds. was never fuppofed worth more than a pound of bread. •which In its rude beginnings. fund both for the It and conftitute a greater profit of the farmer fo univerfally and the rent of the landlord. their rents rifen.184 THE NATURE AND CAUSES OF neighbourhood. befides. bread and butcher's-meat. would be able their grafs and corn cheaper in the London market than and ruin their themfelves. BOOK They are advantageous even to that part of the Though they introduce fome rival commodities into the country. from the cheapnefs of labour. the far greater part of the country.hich remains after replacing the is and maintaining that likewife much greater. abandoned There is more butcher's-meat than bread. to they preiell tended. in the rude beginnings feems to have done of agriculture. It is to have recourfe fifty to for the fake of felf- not more than years ago peti- that fome of the counties in the neighbourhood of London. to be If a pound of butcher's meat. and Their would thereby reduce rents. which can never be univerfally eftablifhed but in confequcnce of that free and univerfal competition it which forces every body defence. than' the beft pafture of equal extent. therefore. they open many new markets to its produce. A CORN field of moderate fertility produces a much greater quantity of food for man. yet the furplus all v.

probably becaufe he it. the ordinary price of an ox. a century ago that in not more than many parts of the highlands of Scotland. At Buenos Ayres. the market of England to the high- VoL. at that time the direct which Europe lies upon the road from to the filver mines of Potofi. but the rent which the landlord and the the moft uncultivated moors. found nothing remarkable about little An ox there. be fufficient to pay. we twenty pence halfpenny by Ulloa. competition. in profit which the farmer could have drawn from fuch land employed in tillage. years ago. the fame market. The to cattle bred upon when brought moft. price. infufficient to the unimproved wilds become fupply the demand for butcher's-meat.THE WEALTH and bread. He fays nothing of the price of bread. A great part of the cultivated lands muft be employed in rearing and fattening cattle. the It is money price of labour is could not be very cheap. otherwife when cultivation is ex- tended over the greater part of the country. butcher's meat was as cheap or cheaper than even bread made of land oatmeal. chofen from a herd of two or three hundred. and of their land in proportion to the price of their cattle. not only the labour neceftary for tending them. raifed where be But corn can no without a great deal of labour. and in a country river Plate. OF NATIONS. B b . four was. fold at the fame price as thofe which are reared upon the moors profit improved land. muft. raife the rent It is The proprietors of thofe by it. proportion to their weight or goodnefs. therefore. By the extenfion befides of cultivation. which there Is 185 the greatefl. The union opened I. The competition changes its and the price of butcher's meat becomes greater than the price of bread. he fays. of which the price. is the food for and which confequently brings the are told greatefl: reals. forty or fifty one and flerling. cofts more than the labour of catching him. are. therefore. There then more direction bread than butcher's-meat.

BOOK Their ordinary price is at prefent about three times greater than at the beginning of the century. however. in the prefent times. more corn land would be turned into pafture if it and w^as not compenfated. Thus in the neighbourhood of a great town. of the land of which the immediate produce is food and of that of which the immediate produce food for men . beft generally vv^orth . and thefe again by the is Corn an annual crop. land. It is thus that in the progrefs of improvement the rent and profit to is of unimproved pafture come the rent and profit of what rent and profit of corn. and the rent and profit of grafs are much fuperior to what can be made by corn. a crop which requires four or five years to grow. In almoft every part of Great Britain a pound of the beft butcher's- meat is. This equality. . the inferiority of the quantity muft be compenfated by the fuperiority of the price. to raife the value of grafs above what may be called its natural proportion to that ot corn. compenfated. will As an acre of produce a much fmaller quantity of the one fpecies of food than of the other. muft be underftood to take place only through the greater In fome particular part of the improved lands of a great country. demand for milk and for forage together with the high price of butcher's-meat. Butcher's-meat. frequently contribute. If it was more than . between the rent and profit of grafs and is thofe of corn for cattle. the to horfes. part of what was in pafture woulcT be brought back into corn. more than twa it is pounds of the white bread and in plentiful years fome- times worth three or four pounds. and the rents of many highland eftates have been tripled and quadrupled in the fame time. This local .i86 THE NATURE AND CAUSES OF land cattle. local fituations it is quite otherwife. be regulated in fome meafure by improved. therefore.

P- at a diftance. of which the principal produce is corn. in that part of antient which lay in the neighbourhood of Rome. Holland is at prefent in this fituation. and . that the whole territory. in the the third. either gratuitoufly. Particular circumflances have fometimes rendered fome countries fo populous. Their lands. old Cato faid. was the firft and moft profitable thing in the management of and to feed ill. which cannot be from foreign fo eafily brought from a great diftance and corn. muft have been very much difcouraged by the diftributions of corn which were freto quently price. local advantage. a private eftate to feed tolerably well. the fecond. its or the antient cultivation in Rome. of feveral. about fixpence a peck. feems to have been fo during feed well. Italy Tillage. we are told by Cicero. muft neceffarily have funk the price of v/hat could be brought to the territory of Roman market from Latium. indeed. as Romans. therefore. To . the food of the great body of the people. and a confiderable part of antient ^the profperity of the Italy. cannot be communicated to the lands ^ . To plough. like the lands in the neighbourhood of a great town. he ranked only fourth place of profit and advantage. which inftead of taxes. and muft have difcouraged that country. a well-enclofed piece of grafs will frequently rent higher than any B b 2 corn . has been chiefly imported countries. has not been fufficient to produce both the grafs and the corn neceflary for the fubfiftence of their inhabitants.a XI. In an open country too. or at a very low- This corn was brought from the conquered provinces. it is 187 ^ evident. grafs. to the The low price at which this corn was diftrlbuted people. made the people.THE WEALTH OF NATIONS. were obliged to furnifh a tenth part of their produce at a ftated price. the have been principally em* ployed in the produ£tion of more bulky commodity. to the republick.

an improved country. The advantage of enclo- greater for pafture than for corn. muft naturally regulate. It is convenient for the mainte-cultivation of the corn. The ufe of the artificial grafles. of turjiips. cattle is. The prefent high rent of enclofed land in Scotland feems owing to the fcarcity of enclofure. if ever the neighbouring lands are compleatly enclofed.i88 B O o THE NATURE AND CAUSES OF K corn field in its neighbourhood. Do£tor Birch has given us an account of the prices of butcher's meat as com- monly paid by 5 that prince. It faves the labour of guardliable to ing the which feed better too when they are not be difturbed by their keeper or his dog. fallen carrots. as from that of the corn lands which are cultiit. fhould fuperiority fomewhat reduce. the price of It the which. the rent and of corn. butcher's-meat naturally has over that of bread. not fo properly paid from the value of its own produce. that the four quarters of . at leaft . But profit where there is no local advantage of the this kind. cabbages. upon the land which for pro- ducing it. vated by means of It is likely to fall. cordingly to have done fo that. the rent and profit of pafture. cattle. or whatever elfe is common vegetable food of the is fit people. It is there faid. in might be expeded. and the other expedients which have been equal quantity of land feed a greater in upon cattle to make an number of it than when natural grafs. the is meat in proportion the price of bread it a good deal lower in the prefent tury. feems ac- and there is fome reafon for believing price of butcher's in to the London market. nance of the its employed in the and high rent in this cafe. and wilt probably fure is lafl no longer than that fcarcity. times than was in the beginning of the laft cen- In the appendix to the Life of prince Henry.

During . ten fliillings or thereabouts. four and eight-pence it is cheaper than the ordinary price paid by prince Henry. In March. of an o^: 189 weighing fix hundred pounds ufually that is.THE WEALTH OF NATIONS. however. Prince Henry of November. or ^d. coarfeand choice pieces taken together. thirty-one fliillings pence per hundred pounds weight. there was a parliamentary enquiry into the It caufes of the high price of provifions at that time. . But even Hill a good deal cheaper than what we can well fup- pofe the ordinary retail price to have been in the time of prince Henry. diftant voyages. at that rate the choice pieces lefs could not have been fold by retail than 44^. coft him nine pounds and eight died on the 6th CHAP. In the parliamentary enquiry in 1764. the pound . it the muft be obferved. given in evidence by a Virginia merchant. and 4^<^. that in March. was then. the witnefles ftated the price of the choice pieces of the beft beef to be to the confumer 4^. whereas. 1763. in that dear year fort'. the pound. among other proof to the fame purpofe. 1764. and beft beef only.. which is fit to be falted for thofe- The and for price paid by prince Henry amounts to ^±d. per pound weight of the whole carcafe. and 2^d. 16 iz.1. and this they fort was in high half-penny dearer than the fame fold in of pieces had this the month of March. he had vidtualed his fhips for twenty-four or twenty-five iKillings the hundred weight of beef. to faid be from feven farthings to general one ufually been price is 2. which he confidered as the ordinary price fhillings is. and the coarfe pieces in general d. m the nineteenth year of his age. he had paid twenty-feven for the fame weight and fliillings This high price in 1764.

price of the beft wheat at the Windfor market was iSj-. in corn or pafture and if any afforded more* to would foon be turned Those produdlons. the other a greater This fuperiority. a kitchen garden. wheat appears to have been a good deal cheaper.^. are generally greater than in a corn or grafs But to bring the ground into this . including that year. years preceding 1764. and butcher's meat a good deal dearer than in the twelve that year. will feldom be found to amount to more than a reafonable intereft or compenfation for this fuperior expence. which require either a greater original expence of improvement. both the and the * profit field. rent of the landlord. i /. however. the average price of the fame meafure of the beft wJieat at the fame market was 2/. But in the twelve years preceding 1764. If any particular produce afforded . indeed.190 THE NATURE AND CAUSES OF During the twelve firft BOOK years of the lafl: century. therefore. the quarter of nine Winchefter bufhels. In a hop garden. 9'^. including In all great countries the greater part of the cultivated lands are either food for employed in producing men or food for cattle. or fit a greater annual expence of cultivation. all The other rent and profit of thefe cultivated land. in order to afford. regulate the rent and profit of lefs. the land would foon be turned into corn or paflure fome part of the lands that produce. the average \l. Lv the twelve firfl: years of the laft century. than corn or pafture. a fruit garden. of the farmer. appear commonly to profit one a greater rent. the the land for them. 34.

is all more rance. and always moderate. and bricks (he meant. this condition ipi requires more expence. " comes due llcilful to the landlord. therefore. The ficient advantage which the landlord derives from fuch improveat ments feems to no time to have been greater than what was fufIn compenfate the original expence of making them. . after the vineyard. price.r— — '. not controvert a who it. Their delightful art is pradifed by fo many rich people for amufement. that it little . was not commonly known the time of Democritus. reports this judgment of which. hedge of brambles and he had found by experience to be both a laftlng and an . Democritus. requires more and the . compenfating profit occafional muft afford fomething the of infu- The circumftances of gardeners. who and wrote upon hufbandry about two thoufand years ago. generally mean. a well watered kitchen garden feems to have been the part of the farm which was fup- pofed to yield the moil valuable produce. Palladius adopts opinion of Columella. Its in the hop and befides like fruit garden. But Democritus. he faid. would not compenfate the expence of a ftone I wall. It Hence too a profit a greater rent beattentive to chap. bricks baked in the fun) mouldered with the continual repairs. fupply themfelves with all moft precious produdtions. •was who artj- regarded by the antients as one of the fathers of the thought they did not a£t wifely who enclofed a kitcheji garden. management. the antient hufbandry. and the winter florm. The profit. precarious.. fuppofe. method of enclofing with he fays. rain. Hence at a greater leafl becomes due farmer.THE WEALTH OF NATIONS. and required Columella. The crop too. impenetrable fence Sn the but which.. it feems. does but propofes a very frugal briars. may fatisfy us that their great ingenuity is not commonly over-recompenfed. advantage is to be made by thofe who pradife for profit becaufe the perfons who (hould their naturally be their beft cuftomers. lofFes.

when properly planted and brought to perfedion. Had the gain adlually made by it fucli plantations been commonly a§ great as he imagined it. for proper. we to learn from Colucultivation. are hov>?ever. which thus enjoys the benefit of an enclofure which own produce could feldom pay for. to have the command of a ftream ceuld be conduftcd to every bed in the garden. cannot be brought to perfedion but by the afTiftance of a Their price. feems to have as it been an undoubted the maxim all in the antient agriculture. projedls. finer In Great Britain. like a true lover of all curious in favour of the vineyard.2 THE NATURE AND CAUSES OF ^ Varro. which as in the prefent. that was a moll advantageous improvement. is in modern through the wine countries. a kitchen garden is not at prefent fuppofed to deferve a better enclofure than that recommended by Columella. kitchen garden had. in thofe times in countries fo near the fun. Through the greater part of Europe. was the moft valuable part of the farm. in fuch countries muft be fufficient to pay the expence of building and maintaining what they cannot be had without. there could have been no difpute about point is The fame freq[uently at this day a matter of controverfy in . Such comparifons. which had before been recommended by the produce of a the judgment of thofe antient improvers. by a com- parifon of the profit and expence. But whether it was advantageous to plant a new vineyard. might have been. He decides. fruits and fome other northern countries. profit and expence of new in nothing commonly very and more fo than in agriculture. the wall. therefore. v/as as a matter of difpute among mella. it was thought of water. between the fallacious. That the vineyard. The fruit-wall frequently furrounds the kitchen garits den. it BOOK J-_ feems. In Columella. and endeavours it fhow. the antient Italian hufbandmen. been little more than fufficient to pay the extraordinary culture and the expence of watering.

It at the fame time. Vol. and that it was incapable of any other But had The real. without any order of council. furely a moft unpromifing the policy expedient for encouraging the cultivation of corn. mined the land. that he had exaculture. It is like which would promote agriculture by difcouraging manufadures. the lovers and promoters of high cultivation. it fuper-abundance been would. and this the fuper-abundance of wine. that this fuperior profit can no longer than the laws which the vine. With regard to the fuppofed fcarcity of corn corii is occafioned by the multiplication of vineyards. the one fpecies of cultivation affording a ready market for The numerous hands employed neceffarily its encourage the other. is To dirainlfli the number of thofe who are capable of paying for it. feems to favour their opinion. by reducing the profits of this fpecies of cultivation below their natural -proportion to thofe of corn and pafture. for to two years. C c The . they obtained an order of council prohibiting both the planting of new vineyards. by produce. in Burgundy. I. laft is at prefent more than any other.THE WEALTH OF NATIONS. have the experience. in and the Upper Languedoc. ia the 193 wine countries. without a particular permiflion from information be granted only in confequence of an certifying from the intcndant of the province. howfree to indicate another opinion. and to indicate a confcioufnefs in thofe who feems mufl. pretence of this order was the fcarcity of corn and paflure. as where the land is fit for producing it. feem generally difpofed to decide with Columella in favour of the vineyard. Their writers on agriculture. in France no where more carefully cultivated than in the wine provinces. have efFedually prevented the plantation of newvineyards. and the renewal of thofe old ones of which the cultivation had been interrupted the king. in that country that this fpecies of cultivation profitable ever. at prefent reftrain the cultivation of In 1731.' Guienne. In France the anxiety of the proprietors of the old vineyards to prevent the planting of any new ones. indeed.

muft be underftood to take place only with regard to thofe vineyards which produce nothing but good almoft any where common light. It is recommend but ftrength and wholefome- with fuch vineyards only that the . therefore. fuch as can be raifed or fandy foil. or a greater annual expence of cultito thofe vation. cultivation may commonly. and the greater part of this exccfs landlord. for indeed. but may exceed in almoft any degree . yet when they do no more crops. upon any to gravelly. 4 The .194 THE NATURE AND CAUSES OF The to fit rent and profit of thofe produftlons. than compenfate fuch extraordinary expence. are in reality regulated by the rent and profit of thofe common It fometimes happens. wages and profit ne- cefliiry for raifing rates. too fmall to fupply the effedual demand. that the quantity is of land which can be fitted fome particular produce. it this cafe. profit for example. rates at according to their are paid natural or according to the which they in the greater part of other cultivated land. though often much fuperior of corn and pafture. between the of wine and thofe of corn and pafture. it wine. its and which has nothing nefs. which require either a greater original expence of improvement in order the land for them. and bringing to market. and bear no regular proportion to the like furplus in corn or pafture. pofed of to thofe The whole produce to can be dif- who are willing give fomewhat more than what is fufficient to pay the whole it rent. common land of the country can be brought into competition quality it is for with thofe of a peculiar evident that it cannot. The in furplus part of the price which remains after defraying the whole expence of improvement and in this cafe only. naturally goes to the rent of the The rent and ufual and natural proportion.

Xi. and can be difpofed of to thofe is who are willing to give profit more than what preparing fufficient to pay the whole rent. is fufficient to pay the wages of the cultivation. can be difpofed of to thofe farily raifes the is who are willing to pay more. A fmall part of this high price.THE WEALTH The or OF NATIONS. is cultivated than mofl: others. not fo much the eff"ed. Jarge province. is it fometimes peculiar to the produce of extends through the greater part of a few vineyards fometimes a fmall dlftrid. as the caufe of this careful lofs In fo valuable a produce the occafioned by negligence fo great as to force even the mofl: carelefs to attention. . the greater part of it goes to the rent of the land- For though fuch vineyards are in general more carefully the high price of the wine feems to cultivation. it derives a flavour which no cuUure other. and wages neceflary for C c 2 . therefore. it be. be. or according to the rate at which paid in common vineyards. to and fometimes through a confiderable part of a The whole fliort quantity of fuch wines that or the is brought market falls of the effectual demand. management can equals real or it is fuppofed. extraordinary labour profits beflowed upon their and the into of the extraordinary flock which puts that labour motion. Whatever lord. may be compared to thofe precious vineyards. according they are to the ordinary rate. therefore. demand of profit thofe who would be willing to pay the whole rent. difFerence of foils 195 than vine is more afFeded by the any This CHAP. upon any flavour. price above that common The difFerence greater or lefs according as the fafhionablenefs and fcarcity of the lefs wine render the competition of the buyers more or eager. which necefwine. other fruit tree. From fome imaginary. The Weft fugar colonies pofl'efl'ed by the European nations in the Their Indies. whole produce falls fliort of the efFedtual demand of Europe. and wages neceflary for preparing and bringing them thither. The whole of quantity.

If this pretend not to as if a corn farmer expeifted to defray the expence of his cultivation with the chaff and the ftraw. fells In Cochin-china the fineft white fugar commonly for three piafters the quintal. But in our fugar colonies the price of fugar bears no fuch proportion or corn field either in to that of the produce of a rice faid Europe or in America. which reduces the to about eight fliillings hundred weight Englifh fourth part of what fugars is is fterling. and fugar. fhould be affirm it. We fee frequently focieties of merchants in London and other trading towns. the molaffes fliould defray the whole expence of his cultivation. according to what is ufually the original expence of improvement and the annual expence of cultivation. and that for I fugar all it is clear profit. not a commonly paid for the brown or mufkavada imported from our colonies. our .to the rate at which they are commonly paid by any other produce. we are told by * Mr. or a from a hundred and five fifty to two hundred pounds at a hundred and feventyprice of the Paris medium. and not a fixth part of what paid for the fineft white fugar. or in that which naturally takes place in the different crops of the greater part of cultivated land. careful obferver of the agriculture of that What is there called the quintal weighs Paris pounds. and which recompences the landlord and farmer. as about thirteen fhillings and fispence of our money. The refpedlive prices of corn. are there probably in the natural proportion. lands in Cochin-china are employed in producing corn and the food of the great body of the people. according . and that the grain fhould be in all clear profit. Poivre. purchafe wafte lands * Voyages d'un Philofophe. a very country. as nearly as can be computed. rice. that the It is commonly his that a fugar planter experts rum and be true.196 ^ -THE NATURE AND CAUSES OF it BOOK preparing and bringing to market. The greater part of the culti- vated J^ice.

fort which it necelTarily gives a . that w^as have never even heard of any tobacco plantation capital of improved and cultivated by the merchants colonies fend quently arrive who relided in Great Britain. which they expedl to improve and cultivate with. fugar colonies. though with fome competitors. than levy one upon importation at the cuftom-houfe. the more In ferred. this plant it might happen be to would be more its has been fuppofed. prefent price probably more than fufficient to pay the whole rent. however. of monopoly to the countries where is allowed and as Virtheyfhare this ginia and largely. wages and profit . the it Tobacco might be cultivated with advantage through greater part of Eu- rope. I feems not to advantageous as that of fugar. The cultiva- tion of tobacco has upon this account been moft abfurdly prohi- bited through the greater part of Europe. Virginia and Maryland as the cultivation of tobacco to is pre- more profitable. in the advantage of monopoly. and agents . juftice in from the defective adminiftration of thofe countries. where difficult. but in almoft every part of iiurope ' has become a printax cipal fubjedl of taxation. more exa£t adminiftration of julHce regular returns might be expedled. profit CHAP. : probably more nearly of tobacco than that for fugar And though the. it' would appear demand of Europe is for fo is tobacco is not compleatly fupplied. or the corn provinces of North America. and to colledl a from every difto ferent farm in the country cultivated. and our tobacco us home no luch wealthy planters as we fee frefrom our fugar iflands. Maryland produce the greateft quantity of it. notvvithflanding the great diftance and the uncertain returns. Nobody the v^-ill attempt fertile to improve and cultivate in the fame manner moft lands of Scotland. that of corn. Ireland. Though from the preference that the efFedtual it given in thofe colonies to the cultivation of tobacco above that of corn. 19. be fo The cultivation of tobacco.THE WEALTH by means of fa<ftors OF NATIONS. though from in thefe countries.

France nor the olive plantations of * Douglas's Summary. is the principal produce of land which food. they in have fometimes. 373. p. fufpedt he has been informed) * burnt a certain quantity in of tobacco for every negro. ferves human Except in particular fituations. are faid to do of fpices. the fuperior advantage of culture over that of corn. it is becaufe the quantity of land which can be fitted for it is too fmall to fupply the effe£tual demand. can manage. Britain need envy neither the vineyards of Italy. according . the rent of corn land regulates in Europe that of all other cultivated land. which the proprietors of the old vineyards in France have of the fuper-abundance of wine. to the rate at which ihey are commonly paid in corn land as the it muft not be fo much more prefent price of fugar. over and above this quantity of tobacco. will not probably be of long continuance. of aflembly fuppofed cultivation to fix thoufand plants. To prevent the market from being overflocked too. have fhewn the fame fear of the fuper-abun- dance of tobacco. Such a negro. fituations. of which the produce human the food. (I plentiful years.15)8 THE NATURE AND CAUSES OF profit neceflary for BOOK preparing and bringing it to market. they reckon. land. vol. No particular produce can long to becaufe : land would immediately be turned another ufe And if any particular produce commonly affords more. Our tobacco planters. thoufand weight of tobacco. . regulates the rent of the greater part of other cultivated afford lefs . Douglas. In Europe corn immediately for therefore. they have retrained to yield a its By afl. It is in this manner is that the rent of the cultivated land. accordingly. for every negro between fixty years fixteen and of age. ii. if it lull has any. Except in particular 372. ill we are told by Dr. four acres of Indian corn. the fame manner as the "Dutch to its If fuch violent methods are neceffary keep up the prefent price of tobacco.

as in other Britifh colonies. produced a the moft fertile does of corn. where the planters. ordinary produce of an Though therefore> requires all more labour. If in any country the the people fhould be common and favourite vegetable food of drawn from a plant of which the moft com- mon larnl. much greater quantity of food than the fertile corn Two crops in the the year from thirty to fixty bufliels acre. the value 199 which of thefe is is regulated by that of corn. a much greater furplus remains after maintaining is that labour. Whatever was the which labour was comr always monly maintained in that country. therefore. would be much A RICE mofl field produces a field. this greater furplus could it. where the maintained with a greater fhare of this greater furplus fhould belong to the landlord than in corn countries. and it. rally are geneis both farmers and landlords. life The command it. and where rent confequently profit. In thofe rice countries. or the furplus quantity of food which would him. in CHAP. where rice favourite vegetable food of the are chiefly the common and cultivators people. each. of the neceffaries and conveniencies of with which the labour necefTarily of other people could fupply him. fituations. In Carolina. greater. power and authority. rent of the landlord. its are faid to be cultivation. confounded with the cultivation of rice is found to be more profitable .THE WEALTH OF NATIONS. would necefTarily be rate at much greater. with the fame or nearly much greater quantity than the remain to the fame culture. maintain a greater quantity of landlord to purchafe or real value and confequently enable the a greater command his real quantity of his of his rent. after paying the labour and replacing the ftock of its the farmer together with ordinary profits. the fertility of Britain not much inferior to that of either of thofe two countries.

for any other vegetable produce fit that is very ufeful are not fit to men : And the lands which are for thofe purpofes. the fame quantity of cultivated . like rice in Should become any part of Europe. inplants. and though. thofe two not altogether in proportion to their weight. the common forts and favourite vegetable food of the people. or pafture. deed. though their fields produce only one prevalence of the cuftoms crop in the year. is Twelve thoufand weight of not a greater produce than two potatoes from an acre of land thoufand weight of wheat. three times the quantity produced by the acre of wheat. fame proportion of the lands in of grain for tillage fo as to occupy the which wheat and other human food do at prefent. indeed. A GOOD bo"- rice field is a bog It at all feafons. or. therefore. a very large allowance. half the weight of this to water. rice is not there the common and favourite vegetable of food of the people.2pOB THE NATURE AND CAUSES OF profitable o OK I. unfit either for corn. from the Europe. more than compenfating the hoeing and other extraordinary culture this root ever which in is always given to potatoes. is which can be drawn from each of Allowing. fuch an acre of potaftill produce fix thoufand weight of folid nourifhment. The food or folid nourilhment. which can never be turned The is food produced by a field of potatoes rice. Even in the rice countries. for rice. An acre of potatoes is cultivated with lefs expence than an acre of wheat the fallow which generally precedes the fowing of wheat. on account of the watery nature of potatoes. root to go toes will however. the rent of rice lands cannot regulate the rent of the other cultivated land to that produce. or vineyard. than that of corn. is and at one feafon a covered with water. is not inferior in quan- tity to that produced by a field field of and much fuperior to what produced by a of wheat. fome rice countries.

however. The chairmen. in the fame manner. neither work fo well. with wheaten bread. who are fed fo well . they would regulate. and rents would much beyond what at prefent. after ^ ^^ P- and the labourers a greater furplus would remain all replacing all the ftock and main- taining the labour employed in cultivation. land. are In general neither nor handfome fame rank of people in England. live and thofe unfortunate women who wothe greater by proftitution. fo ftrong. feems to be otherwlfe with potatoes. nor look and as there Is not the fame difference between the people of fafliion In the two coun- experience would feem to fhow. Is fit for almoft every other culti- nfeful vegetable. are part of them. who cifive are generally fed with this root. The land which is fit for potatoes. porters. people in Scotland Is that the food of the comBut mon it not fo fuitable to the human conftitution as that of their neighbours of the fame rank in England. Population they arc would increafe. held in Scotland. the rent of the greater part of other cultivated In fome parts of Lancafliire that bread of oatmeal is it is pretended. If they occupied the fame proportion of vated land which corn does at prefent. the ftrongcft men and the moft beautiful fald to be. and coalheavers in London. of it. vated 201 land would maintain a much greater number of people. I have been told. The common who fo are fed with oatas the meal. They tries. A greater fhare of this furplus too would belong rife to the landlord. I. D d . a heartier food for labouring people than wheaten bread. being generally fed with potatoes. from the loweft rank of people in Ireland. fomevvhat doubtful of the truth people in Scotland. men perhaps in the Brltifh dominions. and I I have frequently heard the fame dodrine am.THE WEALTH OF NATIONS. No food can afford a more de- \'oL.

upon that account. which neceffarily augments their value.202 THE NATURE AND CAUSES cifive OF BOOK proof of its nourifliing quality. for two or three years together. like corn. ftate. not. in them before they rot. It is difficult to preferve potatoes through the year. the different ranks of the people. cloathing and lodging are the two great wants of Land feed. the principal vegetable food of all any great country. in its original rude flate can afford the materials of cloathit ing and lodging to a In its much greater it number of people than thofe can improved Rate than it can fometimes feed a greater inaterials . ac- Other of produce fometimes may and fometimes may cording to different circumflances. always a fuper- abundance of thofe materials. In the other there is often a fcarcity. and impof- fible to ftore them. and are willing there is pay for them. After mankind. numleaft ber of people in the can fupply with at to way in which they require them. food. Land ivhich fometmcs does^ and fome times does noty afford Rent. of little or no value. perhaps. PART Of the Produce of II. which are frequently. difcourages their and is. UMAN »^ food feems to be the only produce of land which affords ^ always and neceffarily forts fome rent to the landlord. or of its being peculiarly fuitable to the health of the human conftitution. fell The fear of not being able to cultivation. the chief obftacle to their ever becoming like bread. In the one ftate a great pare . In the one therefore.

can fome rent to the landlord. nations of North This was probably the America. by providing himfelf with food.hier neighbours fuch a for all the materials of cloithing. price. with whom they now exchange of the peltry. therefore. found D . which at in old times could neither be confumed nor wrought up d 2 home. and brandy. every man. In the for other they are made ufe of. In the prefent commercial I known world. among whom demand land property elublifhed. as raifes their price above what It cof^s to fend them to thofe wealthier neighbours. fire-arms. and there frequently a demand more than can be had. have fome foreign t'leir commerce of this kind. and what they were exchanged for afforded fome addition to the rent of the highland cflates. provides himfelf with the materials of more cloathing than he can wear. whofe food confifls chiefly in the of thofe animals. The wool of England. mofl barbarous nations. ftate which gives fome the is value.ry. and find among weal. The fkins of the larger animals were the original materials of fliepherds. confidcred as equal only to the labour and expence of fitting it ufe. all afford no rent to is the landlord. therefore. therefore. which their land at produces. for blankets. and which can neither be wrought up nor confumed it home. cafe among the hunting before their country was difcovered their furplus it by the Europeans. If there was no foreign commerce. for every part Somebody Their is always willing to give more of them than what is fufficicnt to pay the expence of always afford bringing them to market. the greater part of them would be thrown away as things of no value. affords. cloathing. When own the greater part of the the exportation of highland were confumed on their hills. fome rent cattle to the landlord. and the price of what ufed for ^ ^A P.THE WEALTH OF NATIONS. their hides made the mofl confiderable article of the commerce of that coun. part of them is 203 is is thrown away as ufelefs. Among nations of hunters and flefli therefore. and can. believe.

forded . fometimes enables him to get a rent for The paving of the ftreets of London has enabled the owners of fome barren rocks on the coaft of Scotland to draw a rent from what never afj. In countries not better cultivated than Eng- land was then. many parts of Scotland is and "Wales it affoi-ds Barren timber for building cultivated country. who generally grants the ufe of it. The left to rot upon the ground. It affords it no rent the landlord. that they are of no value to the landlord. that a great part of them would be thrown away as landlord. When they are it fufre- per-abundant country in which prefent produces them. and no part could afford any rent to the The fo materials of lodging cannot always be tranfported to fo great a diftance as objedl in thofe of cloathing. of Scotland the bark is the only part of the wood which. to whoever takes the trouble of alking The demand of wealthier nations. ufe of worth only the labour and expence of fitting to for that ufe. the materials of cloathing would evidently be To fuper-abundant. fiderable rent. A good ftone a quarry in the neighbourhood of London In would afford connone. and its price afforded Ibmething to the rent of the land which produced it. . is can be fent to market. or than the highlands of Scotland are now. ufelefs. fiderable rent. it. OF BOOK I found a market in the then weahhier and more induftrious country of Flanders. however. ftate quently happens.ao4 THE NATURE AND CAUSES . and do not readily become an of the foreign commerce. of great value in a populous and wellit. the part it When made the materials of lodging is are fo fuper-abundant. and which had no foreign commerce. for want timber of roads and water-carriage. even the commercial of the world. and the land which produces in affords a con- But many to parts of North America the land- lord would be much obliged any body who would carry away In fome parts of the highlands the greater part of his large trees.

is fome parts even of the Britilh dominions what called A Houfe. and thereby afford fome rent to their proprietors. market in many parts of Great Britain which they could not find at home. may often be difficult to find food. But when fociety by the improvement and cultivation of land the la- bour of one family can provide food for two. can employed in providing other things. But though In thefe are at hand. When food is pro- eafy to find the neceffary cloathing and lodging. requires fomewhat more labour to drefs and prepare them for ufe. or in fatisfying the other wants and fancies of mankind. but in pro- portion to that of thofe vided. compare . They do however. the Baltick. fpecies may be built by one day's labour of one man. will be fufficient to provide them with fuch cloathAll the ing and lodging as fatisfy the greater part of the people. other ninety-nine parts are frequently no more than enough to provide them with food. therefore. or at lead the greater part of them. the {kins of animals. his poor neighbour. a Among favage and a hundredth barbarous nations. In quality may more But fele<Sl and prepare it is may require but in quantity very nearly the fame. houfehold fur- and what is called Equipage. not in proportion to the number' whom their produce can cloath and lodge. The not.y and of the coafts of CHAP. find a 205 The woods of Norwa. c are the principal objeds of the greater part of thofe wants and fancies. the labour of half the becomes fufficient to provide food for the whole. Countries of people are populous. forded any before. fimpleft of cloathing. niture.THE WEALTH OF NATIONS. Cloathing and lodging. The it rich man it con- fumes no more food than be very diiferent. The be other half. require a great deal. hundredth or little more than part of the labour of the whole year. it is whom it it can feed. and to labour and art .

are always willing to exchange the furplus. the bowels of the ftones. the . foffils and minerals contained in earth the precious metals. fatisfied. they vie v/ith one another in the cheapin- nefs and perfedion of their work. confume. quantity of materials which they can greater work up. the price of for gratifications of this kind. in order to obtain food. The poor. Thofe. exert themfelves to gratify thofe fancies of the rich. feems to have no limit or certain boundary.tion of land. given for the amufement of thofe defires which cannot be but feem to be altogether endlefs. or ornamentally in building. with the hovel and the few rags of the other. what other is the fame thing. improvement and their the nature of the bufinefs admits of the utmoft fubdivifions of labour. derives that part of its value from the improvement of the powers of labour in producing food by means of the improvement and cultiva. The defire of food limited in every . creafes The number of workmen and as with the increafing quantity of food. houfhold furniture. drefs. it. increafes in a arifes a much proportion than their numbers. man by the narrow capacity of the human ftomach but the defire of the conveniencies and drefs. Those . for equipage. What is over and above fatisfying the limited defire. not only the original fource of rent. therefore.2o6 THE NATURE AND CAUSES OF compare the fpacious palace and great wardrobe of the one. but every other part of the produce of land which afterwards affords rent. is lodging and it is houfe- hold furniture. and to obtain it more certainly. Hence demand or for every fort of material either ufefully which human invention can employ. who is have the command of more food than they themfelves can or. equipage. almofl: is as great in quantity as in quality. ornaments of building. and houfhold furniture. or with the growing cultivation of the lands. that BOOK \mm~^-^j and you will be fenfible the difference between their cloathing. and the precious Food is in this manner.

The landlord will allow no body elfe to rent. can afford any rent. Some coal-mines advantageoufly fituated. Even is in improved demand what is for them not always fuch as to afford a greater price than replace. the flock which mufl be to employed in bringing them market. and replace. A MINE of any kind may be faid to be either fertile or barren. The produce does not pay the expence. depends upon different circumftances. however. capital who being gets the ordinary profit of the which he employs in this in it. Whether partly a coal-mine. and partly upon fituation. _» afterwards afford rent. acit cording as the quantity of mineral which can be brought from a certain quantity of labour. There flock are fome of which the produce its is barely fufficient to pay the labour.- p. cannot be wrought oa account of their barrennefs. and with its ordinary profits. Whether it is or is not fuch. the always. Those and other parts of the 207 which \ produce of it land. is by greater or lefs than what can be brought by an equal quantity from the greater part of other mines of the fame kind. depends its upon its fertility. the employed in working them. together with ordinary profits. They afford fome profit to the undertaker of the work. and can be wrought no other. himfelf undertaker of the work. work them without paying fome and no body can afford to pay any. do not afford cultivated countries. Many coal-mines in Scotland are in wrought manner. together fufficient to pay the labour. Other . but no rent to the landlord. They can be wrought advantageoufly by nobody but the landlord. They can afford neither profit nor rent.THE WEALTH OF NATIONS. for example. C H a .

from coming up. fufficient to A quantity of mineral could defray the expence of working. all fecure them in the free enjoyment of that fhe provides. Thefe. who would gladly give to any body for the cutting. hinder any young ones a century or two the raifes its though they do not deftroy the old trees. the woods are partly cleared by the progrefs of tillage. whole foreft fo that in the courfe of goes to ruin. multiply under the care and protection of the feafon of plenty what may maintain them who through the whole year furnifh with a greater quantity of food than uncultivated nature provides for them. though they do not increafe in the fame proportion as corn« which is altogether the acquifition of human induftry. and partly go to decay in confequence of the increafed number of cattle. nearly in the fame manner. Coals be lefs are a lefs agreeable fewel than wood: they are faid too to wholefome. yet men. deflroying and extirpating their enemies. that of mufl: generally be fomewhat lefs than wood. Nu- merous herds of when allowed to wander through the woods. this quantity could and without either good roads or water-carriage. The price of wood again In varies with the flate of agriculture. thinly inhabited. and who by cattle. not be fold. As agriculture advances. or even quantity of labour : than the ordinary But in an inland country.ac8 THE NATURE AND CAUSES OF Other coal-mines in the fame country fufficiently fertile. at the place where they are confumed. and exadlly for the fame reafon. as the price of cattle. can- not be wrought on account of their fituation. lefs be brought from the mine by the ordinary. its rude beginnings is the greater part of every country is covered with wood. The expence of coals. . which then a mere incumbrance of it no value to the landlord. The fcarcity of wood then price. who ftore up in them in that of fcarcity. therefore.

If they were not. either by land or by water. thefe could afford it the landlord derives from planting. and in thefe circumflances. perhaps. and in an inland country which quently not fall highly cultivated. there not. they could not bear the expence of a diftant carriage. will fre- much fhort of this rent. can for at leaft any confiderable time. Whatever may we may be the price of wood. are every Coals. where much below this highefl price.THE WEALTH OF NATIONS. even in the fires of the common people. It feems to be fome of the inland parts of England. only could be it A fmall quantity fold. it may fometimes be cheaper to bring barren timber for cultivated foreign countries. than a fmall quantity at the highefl. be very great. Upon the fea-coaft of a well improved country. and the coal maflers and coal proprietors find fell more for their interefl to a great quantity at a price fome- what above the lowell. where the profit of planting is found to be equal to that of either corn or pafture. The inofl Vol. the rent which is him . if coals can conveniently be had for fewel. to mix coals and wood together. is if that of coals is fuch one. within thefe few years. particularly in Oxfordfhire. indeed. a fingle flick of Scotch timber. therefore. The advantage which no where exceed. price. in the coal countries. and the landlord fomeilmes lands ^ ^J^ P' that he can fcarce employ his befl: more advantageoufly than ^——v profit in growing barren often timber. I. It 209 finds affords a good rent. where it is ufiial. compenfates the latenefs of This feems in the prefent times to be nearly the ftate of things in feveral parts of Great Britain. that at that place. than to raife built it building from lefs at home. of which the greatnefs of the the returns. that the expence of a coal -fire nearly equal to that of a wood fo in be affured. In the is new town of Edinburgh. is the price of coals as high as it can be. and where the difference in the expence of thofe two forts of fewel cannot. E e .

is In coal-mines a fifth of the grofs produce' a very great rent . has generally a fmaller than in that of moft other parts of the rude prorent of duce of land. and it is feldom a in rent certain. the one that he can get a greater rent. both their rent and together . and can be wrought only by proprietor. but depends upon the fo great. together with ftock ordinary profits. others can afford no rent. At a^ coal-mine for which the landlord can get no rent. its the price which is barely fufficient to replace. The is an eftate above ground. Both the proprietor and the by fomewhat unand undertaker of the work find. The time.2IO B THE NATURE AND CAUSES OF mofl fertile O O K coal-mine too. regulates the price of coals at its all the other mines in neighbourhood. and it is generally a rent certain and independent of the occafional variations in the crop. regarded as a good price for that of a coal-mine. even where fliare in their price afford one. a tenth the common rent. the to which muft be employed In bringing them market. though they cannot fo well afford it though always diminiflies. and fometimes takes away altogether their profit. The . occafional variations the produce. the other that he can get a greater profit. this price. Thefe are is that in a country where thirty years purchafe confidered as a moderate price for the property of a ten years purchafe is landed eftate. the price of muft generally be nearly about coals Rent. commonly amounts to what fuppofed to be a third of the grofs produce. to fell at Their neighbours are foon obliged' it. but which he muft coals either work himfelf or let it alone altogether. Some works are abandoned althe. derfelling all their neighbours. the fame price. is loweft price at which coals can be fold for any confiderablelike that of all other commodities.

or replace. and in fad commonly are. mine depends more upon fertility. affed their price at every The its price of copper in Japan muft have fome influ- ence upon filver in price at the copper mines in Europe. But the produdlions of the mod. with a lodging and other neccflaries which were confumed in that operation. fo The value of filver was much reduced that their produce could no longer pay the expence profit. St." not only at the mines of Europe. the food. at the moft fertile lefs mines in the world. muft neceffarily more or other in it. of the coarfe. is Their market not confined to the countries in the neighbourhood of the mine. and Peru. L E e 2 Tns: . deaths. The price. The price of Peru. but extends to the whole world. Lionnois can have none The productions of fuch diftant coal-mines can never be brought into competition with one another. diftant metallick mines frequently may. and evca of thofe of Potofi. and lefs That of a upon its metallick fituation. This was the cafe too with the mines of Cuba and Domingo. therefore. the greater part of them. not only to Europe.THE WEx^LTH OF NATIONS. and ftill more that of the precious metals. the filver mines of Europe Were. diftant Tea carriage. when feparated from the ore. article The copper of Japan makes an the iron of Spain in that of Chiliits of commerce in Europe . The efFe£t price of coals in Weflmorland or Shropfhire can have and their price in rfie little on their price at Newcaftle. after the difcovery Vol. and of the mofi. abandoned. After the difcovery of the mines of Peru. with the antient mines of Peru. but thofe of China. The to filver of Peru finds way. and ftill more the precious metals. The coarfe. The as 211 value of a coal-mine to the proprietor frequently depends its much upon fituation as its upon its fertility. are fo valuable that tl. or the quantity either of labour or of other goods which it will purchafe there. of working them. but from Europe China.ey can generally bear the expehce of a very long land. filver muft have fome influence on at its price. at all.

the richeft. if tin ryill it and whatever may be his pro- would naturally too belong free. paying mine. and many mines might have been wrought which could not then be wrought. afford Some. proprietor frequently exads no other acknowledgment from that he will the undertaker of the his mill.twentieth tin to one-fixth.. If there had been no tax. The tax of the duke of Cornwall upon tin Is fuppofed to amount to more than five per cent. indeed. feems at fmall fhare in the price of the afford a very high rent to the landlord. as we are told by the Reverend Mr. or one-twentieih part of the value portion.212 THE NATURE AND CAUSES OF The lated in price of every metal at every mine. Borlace. was . can at the greater part more than pay the expence of working. was duty But if you add one. you find that the whole average rent of the mines of Cornwall. we are told by Frezier and Ulloa*.. Till 1736. A fixth part of the grofs produce the rent too of fcveral very fertile lead mines in Scotland. him the ordinary multure or price of grinding. this fifth would naturally have belonged to the landlord. the greater part of mines to have coarfe. to the proprietor of the mine. Labour and make up SIXTH the greater part of both.. being regu- feme meafure by is its price at it the mofl fertile mine in the of mines do world that very little adually wrought. profit 1)ut a and a flill fmaller in that of the precious metals. he afford more. therefore. but grind the ore as. vice -warden ©f the ftanrmries. which have been known in the world. A part of the grofs produce may be reckoned the average rent of the tin mines of Cornwall. and fome do not is fomuch. becaufe they could not afford this tax.. fays.. . accordingly. In the the filver mines of Peru. the moft fertile that are known in the world. which till then might be confidered as the filver real rent of the greater part of the mines of Peru. and can feldom Rent. the tax of the king of Spain amounted to fifth one- of the flandard filver..

as thirteen a p.3. was even to the 213 C Fi whole low averajre rent filver of the filver mines of Peru. Whoever difcovers a nev/ mine. as a lottery in which the do not compenfate the blanks. He . upon and fmuggling muft be much eafier in the precious than in the is bulky commodity.than ia.to throw away their fortunes in fuch unprofperous- projeds. that when any he is is refpedable and well perfon undertakes to work a new mine in Peru. the precious metal. and that of the it duke of Cornwall very well. and upon that account is fhunned and avoided by every body.. As the fovereign. tin at the probable. in 1736. together with fits. and half as much in breadth. of ones. than does of filver at the mofl fertile filver mines inthe world. to twelve. in the Mining. the law in Peru gives every poffible encouragement to the difcovery and working.. it feems. however. confidered there prizes fame light as here. derives filver a confiderablepart'of his-- revenue from the produce of mines.THE WEALTH OF NATIONS. therefore. makes a greater part of the it price of moft fertile tin mines. reduced from one-fifth to one-tenth. this But the rent.. new off. mines of Peru are not filver now able to pay- and the tax upon was. to be very ill The tax is of the king of Spain accordingly faid paid.. according to what he fiip-- be the direQion of the vein. informed authors acquaint The fame moft us. Even this tax upon filver too gives niore temptation to fmuggling than the tax of one-twentieth tin. Rent. though the greatnefs of fome tempts many adventurers. is entitled to meafure iwo hundred and forty-fix pofcs to feet in length. XI. Ee. Neither are the profits of the undertakersof filver mines in com- monly very great Peru. ordinary proit the refidue which remains to the proprietor is greater feems in the coarfe. univerfally looked upon as a man deftined to bankruptcy and ruin. After replacing the ftock employits ed in working thofe different mines.

Frezier and Ulloa. The fame encouragement is . work could not bear even the loweft of thefe two taxes. on the contrary. given in Peru to the difcovery and working of new gold mines and afterwards ever. to whom. In wafte and uninclofed lands any perfou who comes the felf.ES OF He becomes proprietor of this portion of the mine. but on account of the peculiar Silver is is way in y\?hich nature produces it.214 THE NATURE AND CAUT. is almoft always found virgin. but it was once a fifth. it. in which cannot well be carried on but workhoufes erefted for the purpofe. as in filver. is This twentieth part feems part of the gold liable to to whole rent which Chili and Peru. paid by the greater is mines in Gold too much more be fmuggled than even filver . a tenth.other body. but by a very laborious and tedious operation. was found If to find that the rare. It is fometimes . a very fmall acknowledgment be paid upon working In both regulations the facred rights of to the private property are facrificed fuppoled interefirs of publick revenue. it is ftill a perfon has made his fortune by a has done fo much rarer to find who one who be the by a gold mine. without the confent of the owner mufl: of the land. mr4y xertain extent. filver. and can BOOK V ^^— work it . like mofl other metals. and therefore expofed to the infpedion of the king's officers. however. but. fay the and in gold the king's tax amounts It only to a twentieth part of the ftandard metal. without paying any acknowledgment to the landlord. generally mineralized with feme . not only on account of the fuperior value of the metal its in proportion to bulk. The bounder beeither real proprietor it of the mine. very feldom found virgin. ft is how- fame authors. it from which it is impoflible to feparate in fuch quantities as will pay for the expence. The intereft of the duke of Cornwall has given occafion to a regulation nearly of the fame kind in that antient dutchy. and may work it him- or give in leafe to another. difcovers a is tin mine. Gold. which called bounding a mark out its limits to a mine.

it is any private who is poffelTed of a fmall quantity of meris If the king's tax. in fmall and almofl infenfible particles with fand.THE WEALTH OF NATIONS. which muft commonly be confijmed bringing at leaft • them from the mine be to the market. Their higheft price. fometimes found In pieces of fome bulk. and mufi: make of a much fmaller part of the price of gold. Increafe the fcarcity it to a certain degree. principles is regulated all by the fame' other goods. it can be feparated from them by a very ihort in and fimple operation. a diamond. therefore. however. and the fmalleft bit of may become. earth. in the It is of thofe metals not determined by that of any other as the price of coals is commowood. dity. and exchange for a greater quantity The partly demand for thofe metals arifes partly from their utility. perhaps. they are more ufeful' ruft' than. with the ordinary profits. cloaths in and lodging. feems not to be neceffarily deter^ fcarcity or plenty mined by any thing but the adual themfelves. but ill paid upon rent filver. As they are lefs liable . and even 215 when mixed and other chap. any other metal. likely to be much worfe paid upon gold. the food. fame manner fcarcity by that of beyond which no of gold can ever ralfe it. more precious than of other goods. It muft fufficient to replace that ftoclr. or- the fmallefl: quantity of other goods for which they can be ex- changed during any confiderable time. The lowefl price at which the precious metals can be fdld. and from their beauty. they can more * eafily be kept clean and the utenfils . If you except iron. determine it. than even of that filver. which can be carried on houfe by any body cury. to and impurity. which fix the loweft ordinary price of The ftock which muft commonly be employed. extraneous bodies.

The beauty. a labour which no body can to afford to Such objeds they are willing purchafe at a higher price than things ufeful.2i6 THE NATURE AND CAUSES OF fj}s ' BOOK * \i either of the table or the kitchen are often upon that account more agreeable when made of them. -of their beauty is greatly enhanced by their fcarcity. are the original foundation or of the of the high price of thofe metals. however. may have afterwards contributed to keep up or increafe their value. quantity of other goods for which they can every where be exchanged. however. The merit With the greater fiRf in part of rich people. requires colleft any confiderable quantity of pay but themfelves. and merit of their greatly enhanced by their fcarcity. the merit beautiful. in any other way. A filver boiler is more Their or tin one. and by dimini(hing the quantity which could be employed ment. is In their eyes ufeful in any degree fcarcity. demand for the precious ftones arifes altogether from their the They beauty are of is no ufe. beauty. This value was antecedent to and independent of their being employed as coin. would render a gold boiler better than a principal merit. No paint or dye can give fo fplendid a colour as gilding. as which to in their eyes is pleat when they appear of an objed which is poflefs thofe decifive marks of opulence which nobody can poflefs but themfelves. Wages and . cleanly than a lead. or by the difficulty and expeace of getting them from the mine. ftill and the fame quality filver one. the chief enjoyment of riches connever fo com- the parade of riches. copper. arifes from their beauty. but as ornaments. by occafioning a new demand. and was the quality which fitted them for that employ- That employment. either or greatly it enhanced by to its or by the great labour which it. much more lities beautiful and but more common. which renders them peculiarly fit for the ornaments of drefs and furniture. and fcarcity. great Thefe qua- of utility.

the value even the mines of of filver might be much degraded fertile as to render Potofi not worth the working. the mines in Europe may have afforded as great a rent to their proprietor as the richeft mines in Peru do at prefent. A proi<3 duce of which the value principally derived from its fcarcity. The others. almoft the in but for a very fmall fhare fertile . it might have exchanged for an equal quantity of other goods. or to its fuperiority over other the fame kind. except thofe which yielded the largefl and fineft ftones. Chap. w—„—«_/ frequently for no fhare confiderable rent. he was informed that the fovereign of the country. but to what may be mines of relative fertility. and the proprietor's might have enabled him to purchafe or com- mand an equal quantity either of labour or of commodities. Vol. were to the proprietor not worth the working. F f neceffarily . for whofe benefit they were wrought. moft Before the difcovery of the Spanifh Weft Indies. of them to be fhut up. upon moft occafions. I. the real revenue which they afforded both to the publick a^id to the proprietor. have been the fame. The might value both of the produce and of the rent. all over the world by their price at the mofl mine is the rent which a mine of its either can afford to its proprietor called its in proportion.THE WEALTH OF NATIONS. Rent comes and the moft Tavernier. Though fliare the quantity of filver was much lefs. mines only afford any vlfited When a jeweller. not to abfblute. If new mines were were fuperior fo difcovered as to thofe much fuperior to thofe. it feems. the dia- mond mines of Golconda and had ordered all Vifiapour. The moft abundant mines either of the precious metals or of the little to Is precious ftones could add the wealth of the world. whole of their high price. . of Potofi as they of Europe. and profit accordingly 217 make up. As ftones fertile the price both of the precious metals and of the precious is regulated in it.

which they >could never have found among thofe whom their own produce could maintain. can always feed. the great caufe of the demand both for the precious metals and the precious ftones. and whatever may be it the proportion of the landlord. of which.2i8 THE NATURE AND CAUSES OF neceffarily degraded BOOK by its abundance. the moft barren lands the moft fertile. or for a fmaller quantity of com- modities . and not to their relative fertility. in confequence of the improvement of land. could be purchafed for a fmaller quantity of labour. and lodge a certain number of people. by creating a new demand for their produce. The great number of people maintained by the fertile lands afford a market to many parts of the produce of the barren. Whatever ment is increafes the fertility of land in producing food. as well as for every other conveniency and ornament of drefs. generally increafed by it. cloaths. increafes not only the value of the lands upon which the improve- beftowed. and in this would confift the fole advantage which the world could derive from that abundance. Food not only it is conftitutes the principal part of the riches of the world. It is otherwife in eflates above ground. A fervice of plate. but the abundance of food which gives * the . houfhold furniture. but contributes likewife to increafe that of many That other lands. lodging. is The value of not diminifhed by the neighbourhood of it is On the contrary. and the other frivolous ornaments of drefs and furniture. and of the com- modities with which that labour can fupply him. and equipage. The land which produces a certain quantity cloath. felves many people have the difpofal beyond what they themis can confume. The value both of their produce and of their rent is in proportion to their abfolute. of food. abundance of food. and lodging. tionable will always give him a propor" command of the labour of thofe people.

in confequence mull: of in- creafing improvement and cultivation. the principal part of their value to 219 ^ many to other forts of riches. might therefore be expelled. but not worth the refufing to any body who They gave them They were to their new guefts at the firft requeft. values of there fhould be only one variation in the comparative two different forts of produce. Domingo. without feeming to think that they had made them any very valuable prefent. to confider them the picking up. PART Of III. The firft poor inhabitants of Cuba and difcovered St. Spaniards to obtain them and had no notion that there could any where be a country fo great a fuperfluity in which many people had the difpofal of of food. and of that ivhich fometimes does and fometimes does not afford Rent. In the whole progrefs of improvement. when they were wear little bits by the Spaniards. HA p. fhould conAantly rife in proportion to that which always affords fome rent. aftonifhed to obferve the rage of the . ufed of gold as ornaments in their hair and other parts of their feemed to value drefs. the paflioa of the Spaniards would not have furprifed them. that for a very fmall quantity of thofe glittering baubles they would willingly give as years. The value of that fort which fometimes does and fometimes does not a&brd rent. neceflarily inis creafe the demand for every part of the produce of land which not and which can be applied either to ufe or to it ornament. and them.THE WEALTH OF NATIONS. fo fcanty always among themfelves. the Variations in the Proportion betiveen the refpeHive Values of that Sort of Produce luhich always affords Rent. thofe E increafing abundance of food. TH food. They worth afked them as we would do any little pebbles of fomeas juft what more than ordinary beauty. much as might maintain a whole family for many Could they have been made to underftand this. F f q As .

even though it. the precious metals ing. it. Even though the world its in general were improving. much more fertile known before. fhould gradually be- come dearer and the cafe with all dearer. and the demand mufl: generally be in proportion to the improvement ands population of that fmall diftri£l. dif- yet. that the fall . the materials of cloathing and lodgof the earth. the demand for filver might not be at all increafed by the improvement even of a large country in the neighbourhood of the mine. might gradually it. fhould gradually exchange for a greater and'a^ This accordingly has been the cafe greater quantity of food. of them upon all and would have been occafions. for example. there fhould not be another within a thoufand miles of neceflarlly increafe it is will not with the improvement of the country in whichfor the produce of a free-ftone fituated. might gradually purchafe . if particular accidents had not upon fome occafions increafed the fupply of fome of them in a ftill greater proportion than the demand. though the demand for price of that metal filver would neceffarily increafe. the world in general. a pound weight of for example. market for the produce Unlefs of a filver mine may extend over the whole known world.220 THE NATURE AND CAUSES OF As and induftry advance. will neceflarlly increafe with the increafing improvement and population of it the- country round about the neighbourhood. The market quarry can feldom extend more than a few miles round about it. therefore. the ufeful foffils and minerals and the precious ftones fliould gradually come to be more and' art more in demand. But the. any given quantity. The value of a free-flone quarry. with' moft of thefe things upon moft occafions. be advancing in improvement and population. if in the courfe of improvement. new mines fhould be than any which had been covered. that is. or in other words. efpecially if fliould be the filver only one in- But the value of a mine. yet the fupply might increafe in fo real much a greater proportion.

gradually become dearer and dearer^ But if. the average money would gradually. for a greater Any given quantity of filver . become cheaper and cheaper.of improvements. that metal would gradually become cheaper and cheaper. in fpite. The great market for filver is the commercial and civilized part of the world. in other words.THE WEALTH OF NATIONS. or exchange for a fmaller and a fmaller quantity of corn. and the average money price of corn would. each of thofe takea . on the contrary. the principal part of the fubfiflence of the labourer. If by the general progrefs of improvement the demand of increafe. if we may judge by what has happened both in France and Great three different combinations feem to have Britain.^ ^" command a fmaller and a fmaller quantity of labour. w^hile at the this market fhould fame time the fupply did not increafe in the fame proportion. nearly in the fame proportion as the demand. the value of filver rife in would gradually proportion to that of corn. all money price of corn would. the average or. in fpite of all improvements> continue very nearly the fame. If. the fupply by fome accident fhould increafe- for many years together in a greater proportion than the demand. events which can happen in the progrefs of improvement and during the courfe of the four centuries preceding the prefent. on the other hand. These three feem to exhaufl: all the pofllble combinations o£ . the fupply of the metal fhould it increafe. in other words. would exchange and a greater quantity of corn price of corn or. would continue to purchafe or exchange for nearly the fame quantity of corn. purchafe or 221 ^ ^.

equal fhillings to about twenty of our prefent money. First Period. III. Tower. fince it required a particular ilatute to oblige fervants to accept of it in e. in the at which we at find it it eftimated beginning of the fixteenth century. had in the 25th of Edward III. and for feme time before. and nearly in the fame order have here fet them down. In the preamble complains much of the infolence of fervants. not only cloaths. this price it feems to have fliillings fallen gradually to two ounces of the price equal to about ten of our prefent money. being the 25th of Edward . was enaded what it is The ftatute of labourers. the average price of the quarter of wheat in England feems not to have been eftimated lower than four ounces of filver. Ten-pence a buftiel. that upon this account their livery wheat fhould no where be eftimated higher and that it than ten-pence a bufliel. but provifions) which they had been accuftomed to receive in the 20th year of the king. and the four preceding years. From filver.222 THE NATURE AND CAUSES too in v^hich I OF BOOK taken place In the European market. fhould always be in the option of the mafter to deliver them either the wheat or the money. IN 1350. It who endeavoured to raife their all wages upon wages and therefore ordains. been reckoned a very moderate price of wheat.xchange for their . their mafters. therefore. Digrefflon concerning the Variations in the Value of Silver during the Courfe of the Four laji Cetituries. that fervants and labourers fhculd for the future be contented with the fame liveries (liveries in thofe times fignified. In 1350. and to be eftimated till which feems to have continued about 1570.called.weight.

and that of other grain in proportion. crown of our prefent money. it is difficult to form any judgment con- may have been the ordinary price. befides. Auguftine's. or four (hillings a quarter. or feven and two- pence a quarter. other reafons for believing that in the beginning of the fourteenth century. equal to fix fliillings and to half a eight-pence of the lings of that money of thofe times. or fix ihillings a quarter. or in the i6th year of the king. cerning what therefore. III.. There are. Four Tower-weight. to which coft four pounds. This ticular ftatute is furely a better evidence of what was reckoned in fome par- thofe times a moderate price of grain. equal to about one and twenty (hillings and fixpence of our prefent money: adly. In that feaft were confumed. the common price of wheat was not lefs than four ounces of filver the quarter. the term to which the ftatute refers. which coft feventeen pounds ten (hillings. But in the i6th year of Edward filver. Fifty-eight quarters of mair. than the prices of years. price for the quarter of eight buftiels. and to near twenty fhil— of the prefeut. not only the particulars. In 1309. therefore. Ralph de Born. bill of which William Thorn but the prices of many> ift. and was nearly equal ounces of filver. muft have been reckoned a moderate. their ufual livery 223 C H A Xf. which have generally been recorded by hiftorians and other writers on account of their extraordinary dearnefs or cheapnefs and from which. Twenty quarters of oats. which nineteen pounds. and for fome time before. of fare. The . has preferved. of provifions . p.THE WEALTH OF NATIONS. and it had been reckoned a reafonable price ten years before that. prior of St. coft fifty-three quartersfliillings of wheat. Canterbury gave a feaft upon his inftallation day. equal about twelve (liillings of our prefent money. ten-pence contained about half an ounce of Tower-weight. equal to about eighteen (hillings of our prefent money: 3dly.

but are mentioned accidentally as the prices actually paid for large quantities of grain confumed at a feafl which was famous for its magnificence. which. the average or ordinary price of . and muft have continued to be fo in the Ill.224 THE NATURE AND CAUSES Xhe prices O. or than fix and eight. have been reckoned the this ftatute middle price of the quarter of wheat when was firft enabled. muft. dearnefs or cheapnefs. for a confiderable time before. being the ilatutc called. grandfather Henry II. therefore. was revived an ancient of his progenitors fomeas old at lead The AJfize of Bread and Ale. from one {hilling to twenty of the money of thofe times. as the time of his probably. money of thofe times. These prices are not recorded on account of their extraordinary . and equal to about thirty fhillings of our prefent money. price. the king fays in the times in the preamble. that about the middle of the fourteenth century. therefore.pence of the filver. Ten fhillings. upon this fuppofition.kin^s of England. 51(1 of Henry III.^ BOOK of malt and oats feem here to be higher than their ordi- nary proportion to the price of wheat. and may have been as old as the conqueft. containing fix ounces of Tower-weight. But ftatutes of all this kind are generally prefumed to provide with equal care for deviations from the middle it. we feem to have fome reafon to conclude. for thofe below it as well as for thofe above filver. therefore. In 1262. It regulates the price of bread according as the prices of wheat fhillings the quarter may happen to be. containing four ounces of Tower-weight. had been made It is time. From and thefe different fads. 51ft of Henry- We cannot therefore be very wrong in fuppofing that the lefs middle price was not this ftatute than one-third of the higheft price at which flfillings regulates the price of bread.

fix {hillings and eight-pence contained only two ounces of to filver Tower-weight. to the beginning of the reign of years. In the houfhold book of Henry. that the ordinary or average price of wheat. It equal to about ten {hillings of our prefent this price till money. the diminution of the quantity of it But it feems. is had continued to be confidered as is called the moderate and reafonable. From about the middle of the fourteenth to the beginning of the fixteenth century. of the quarter of wheat was not fuppofed to be of filver lefs 225 than four ounces ^ ^j^ p. fo far compenfated / contained in the fame nominal it fum. continued to be eftimated at about 1570. in con- fequence of fome alterations which were made in the coin. . the fifth earl of Northumber- drawn upin 1512. this price. Tower-weight. it appears from feveral different ftatutes. and were equal about ten {hillings of our prefent money. I. this period. however. From {hillings the 25th of Edward III. The quantity of filver. during the fpace of more than two hundred what and eight-pence. In 15 1 2. contained in that nominal fum was. that the legiflature did not think this worth while to attend to circum fiance.THE WEALTH OF NATIONS. funk gradually to about one-half of fallen to about fo as at laft to have two ounces of filver Tower-weight. fix Elizabeth. land. during the courfe of continually diminifhing. there are two different eftimatlons of wheat. that is the what was reckoned the reafonable and modefeems to have ordinary or average price of wheat. In one of them it is computed at fix {hillings and eight pence the quarter In the other at five {hillings and eight-pence only. rate. G g ^ Thus . the increafe of the value of filver had. Vol.

and in 1558. that when the price of impor- was that fo low. the exportation of wheat was allowed from certain ports whenever the price of the quarter fhould not exceed ten fliillings. was. But had foon been found that to reftrain the exportation of wheat the price till was fo very low. In 1554. containing about four-pence of the lame quantity of filver as thirteen fhillings and our prefent money. but higher. That in France the average price of grain was. agrees nearly with the eftimation of the Northumberland book in 15 12. much lower in the end of the the fixteenth century. been . been confidered as what It is the moderate and reafonable price of wheat. fifteenth in the fame manner.). price it that wheat might be exported fo without a Ucence eight-pence: when the And in 1463 the price was low as fix fhilHngs and was enadted. price This called had at this time. In 1562. therefore. therefore. by the 5th of Elizabeth. if was not above and eight-pence The it legiflature had imagined. by the ift of Elizabeth. and beginning of has than in the two centuries preceding. it when rofe became prudent to allow tation.226 / THE NATURE AND CAUSES OF Thus in o o K 2^ J 1436 it was enaded. in reality. there could be no inconveniency in exportation. by the ift and 2d of Philip and Mary. (one. the exportation of wheat was in the fame price of the quarter fhould exceed manner prohibited. therefore. whenever the fix fhillings and eight-pence.third part lefs than the fame nominal fum contained in the time of fidered as Edward III. which did not then contain two penny filver worth more it than the fame nominal fum does at prefent. that no fix fhillings wheat fliould be imported the quarter. Six fhillings and eight-pence. to prohibit it altoge- ther. had in thofe times been con- what is called the moderate and reafonable price of wheat. containing nearly the f^ime quantity of filver as the like nominal fum does at prefent.

to fuppole too. and a greater number of rich people would require a It is greater quantity of plate and other ornaments of filver. and have become more expenfive working. might be a good in the deal ex- haufted. from the Conqueft. fdver in proportion to that of corn. as well as for every other and ornament. of the greater part of thofe who have that. written upon the prices of commodities the in antient times. and by the elegant Its price. may have been owing altogether to the gradual diminution of the fupply. the greater part of Europe was approaching towards a more it fettled form of go- vernment than fecurity had enjoyed for feveral ages before. natural that the greater part of the mines which then fup- plied the European market with filver. Dupre de St. They had been wrought many of them from the time of the Romans. during the fame period. perhaps from invafion of Julius O g 2 . In the end of the fifteenth and beginning of the fixteenth centuries. author of the Eflay on the police of grain. This rife in the value of may either have been owing tivation. -been obferved both 227 C by Mr. the greater part of the mines which were then known in the Vv'orld. in confequence of increafing improvement and the the fupply in the the mean time continuing fame as it before : Or.THE V/EALTH OF NATIONS. however. The increafe of luxury would naturally increafe induflry and improvement. It has been the opinion. ha p. demand continuing the fame as before. being much exhaufted. Maur. would naturally increafe with the increafe of riches. A greater annual produce would require a greater quantity of coin to circulate it. had probably funk in the fame manner through the greater part of Europe. altogether to the increafe of the demand cul- for that metal. and confequently the expence of working Or it may have been owing partly to the them much increafed : one and partly to the other of thofe two circumftances. and the demand for the precious metals.

In many much above one-half of this this price. three different circumftancesj feem frequently to have mifled them. it is above the not average market price. all rents were paid &c. accordingly. increafes. that the converfion price fhould rather be below than places. that naturally increafes quantity of filver in every country with the increafe of wealth. the rude produce of land as and partly by the popular notion. partly This opinion they feem to have been led to by the obfervations which they had occafion make upon the the prices both of corn and of fome other parts of . fafe for the tenant. It and in fome places with regard to take place might probably have continued to too with fiars regard corn. to convert .228 THE NATURE AND CAUSES OF Julius Csefar till BOOK the difcovery of the mines of America. cattle. according the market price it in every different county. the value of filver was continually into. First. payment price at in kind. had not the inftitution of the publick ations. it. put an end to Thcfe are annual valuan affize. to and of aftual ferent qualities of each. that the landlord would tenant. according to the judgment of all of the all average the dif- price of the different forts of grain. or a certain fum of money was in this The which the payment manner exchanged the converfion to take either the for a certain price. diminiflTiing. fometimes that happened. to cattle. This inflitution rendered fufficiently and much more convenient for the landlord. In antlent times almoft in a certain quantity of corn. is in Scotland called As the option the price. ftipulate. fo its value diminilhes as its quantity In their obfervations upon the prices of corn. however. It in kind j poultry. he fhould be at liberty to demand of in kind is the either the annual inftead of it. always in the landlord fubftance or it is neceflary for the fafety of the tenant. fum of money. Through the greater part of Scotland cuftom flill continues with regard to poultry.

price. OF NATIONS. and to have proceeded gradually to determine what thofe it ought to be. according as the prices of rife two forts of grain fhould gradually above this lowefi. Fleetwood acknowledges* upon one occafion. wheat. and fuppofe. As he wrote his book. to copy the regulation as far as the three or four . it con- tained no more than the fame nominal fum does milled Secondly. by the iTovenly manner iii ftatutes of affize had been fometimes tranfcribed. This fum 42 3. But the tranfcribers of thofe ftatutes feem frequently to have thought firft it fufficient. what {hould happen any to at 229 the corn rent. the year at which he ends with at prefent. in till after tranfcribing this converfion price fifteen The 1 price is eight fhillings at the quarter of it. it. that he had made this miftake. But the writers who have colleded the prices of corn in antient times. of the 51ft of Henry III. feem frequently to have niiftaken what is called in Scotland the converfion price for the actual market price. for a particular purpofe. Thus in the aflize of bread and ale. and loweft prices judging. however. than certain fixed price. rather at be the price of the fiars of each year.THE WEALTH convert. the year which he begins with contained the fame quantity of filver as fixteen {hillings of our prefent money. . and fometimes perhaps adtualLy compofed by the The antient flatutes of affize feem to have begun always with de- termining what ought to be the price of bread and ale when the price of wheat and barley were at the loweft. as they call it. They have been which fome antient by lazy copiers legiflature. that this was enough Ihow what proportion^ ought to be obferved in all higher prices. he does not think proper to make this acknowledgement times. But in 1562. the price of bread was regulated according to the different prices of wheat. . I faving in this manner to' their own labour.

were equal to about nine {l. this regulation be- were printed. from one fhllliog to twenty fliillings BOOK the quarter. the price of rife in the price of barley. and that thefe prices to were only given all as an example of the proportion which ought lower. equal to about eighteen {hillings of our prefent money. preceding that of Mr. That four {hillings. of the money of thofe times. therefore. being mifled by this faulty tranfcription. an old Scotch law book. in which the price of all regulated according to the different prices of wheat.iillings . But in the manufcripts from which all the different editions of the ftatutes. In the flatute of Tumbrel and Pillory. enaded nearly about the ale is regulated according to every fixpence fame time. *' be obferved in infer other prices.2^0 THE NATURE AND CAUSES OF wheat. was the ordinary or average price of wheat at that time. the copiers had never tranfcribed yond the middle price of twelve {hillings. RufFhead." In the compofition of this or in the price of {latute the legiflature itfelf feems to have been as negligent as the copiers were in the tranfcription of the other. is but the in this meaning to is plain enough That the price of ale manner rife be increafed or dir fall " minifhed according to every fixpence " barley. " et fie deinceps crefcetur vel diminuetur per fex denarios. boll. there is a {latute of afhze. affize is Three {liillings Scotch. very naturally concluded that the price." The ex- prefTion *' very flovenly. the time when this fuppofed to have been enafted. In an bread antient manufcript of the is Regiam Majeflatem. from ten-pence to three {hillings the Scotch equal to about half aa at Engli{h quarter. Several writers. however. from two {hillings to four {hillings the quarter. whether higher or we may is from the lafl: words of the ftatute . was not confidered as the rife in higheft price to which barley might frequently thofe times. or Ox {hillings the quarter.

that three fhillings Mr. and that ten-pence. however. antient times. varies moft in thofe turin bulent and diforderly focieties. prjefcripta habendo refpedum ad pretium bladi." cafes according to " You fhall judge of the remaining what is above written' " having a refped to the price of corn. and to that its as its lowefl. is had ever much above. a prices. which the interruption of all commerce and communication hinders the plenty of one country from relieving the fcarcity of another." Thirdly. ordinary price mufl. No price can be found end of the fifteenth. however. to which wheat ever rofe in thofe times. or beginning of the fixteenth century to the which approaches though at all extravagance of thefe. that thefo prices are only fet to be obferved down as examples of the proportion which ought " reliqua judicabis fecundum between the refpedive prices of wheat and bread. equal to nineteen pounds four in the fhillings of our prefent money. Rudiman feems * was the higheft price conclude from this. were the ordinary it Upon conail fulting the manufcript. till who governed from about the middle of the twelfth. ftate part of the In the diforderly it of England under the Plantagenets. The one is of thofe times. times liable to variations. The price of corn. its They might have found. likewife have that in thofe been much lower. equal to fourteen pounds prefent . century. fhillings of that of the the other fix pounds eight fhillings. was below any thing in 1270. highefl price was fully as that lowefl price times. fhilling or at moft two fhillings. fliilHngs fterling 231 to of our prefent money. ftatute The *' *' lafl: words of the are. later in very aniient times . They feem price at to have been milled too by the very low fold which wheat was fometimes have imagined. towards the end of the fifteenth • See his preface to Anderfon's Diplomata Scotia. appears evidently. as its been known in later money Thus Fleetwood gives us two prices of the quarter four pounds fixteen fhillings of the e: 'it of wheat. price was then much lower than in times.THE WEALTH OF NATIONS. .

have added. The prices. the one might not be able to give the leaft aflillance to the other. and It is the only addition which have made. it and that towards the end of the fixteenth century begins to rife again. one dlftrid might be in plenty. digefted by Fleetwood from 1202 1597. however. out the lafl: twelve years.232 THE NATURE AND CAUSES OF century. dare to difturb the publick The reader will find at the end of this chapter coIle£ted all the prices of to wheat which have been both inclufive. that during 7 all this period the value . might be the horrors of a famine. and through the whole of the fixteenth century. and I do not pretend that any very certain conSo far. indeed. therefore. no baron was powerful enough fecurity. and of according to the order of time. fo I that four years are wanting to make 60 1. Fleetwood himfelf. 1600. feem to have been thofe chiefly which were remarkable for extraordinary dearnefs or cheapnefs . divifions twelve years each. give. with mod other writers. from the 1598. into feven too. to have believed. clufion can be drawn from them. who governed England to during the latter part of the fifteenth. the average price of each twelve years grows gradually lower and lower. BOOK by having its crop deftroyed either by feme accident of the feafons. which Fleetwood has been able to colled. At the end of each divifion it he will find In that the average price of the twelve years of which confifts. Under the vigorous ad- miniftration of the Tudors. and yet if the lands of fuflering hoflile all fome lord were interpofed between them. accounts of Eton college. Fleetwood has been able to colledi the prices of no more than eighty years. reduced to the money of the prefent times. while another at no great diftance. 1 the prices of I 1599. long period of time. The till reader will fee that from the beginning of the thirteenth after the middle of the fixteenth century. however. to they confirm the account which have been enfeems. or by the incurfion of fome neighbouring baron. as they prove I any thing deavouring at all.

H h . at the expence of a long carriage both by land and by fea.r—— colleded. fo far have colleded. was. however. But this undoubtedly fil- cheapnefs was not the efFedl of the high value of It ver. we are told price many years ago. St. fomewhat curious their fa£ts. Bifhop Fleetwood and Mr. but filver of the low value of thofe commodities. game of all kinds. I fuppofe. part of unmanufactured commodities fuch as poultry. were proportionably much cheaper than corn. much dearer in proportion than the greater part of other commodities.. though their opinions are fo very different. I.THE WEALTH OF NATIONS. Buenos Ayres. that the mod judicious writers have inferred the great value of filver in thofe very antient times. certainly do not agree with this opinion. Maur. not however.'^ ''• continually diinini(hing. was not becaufe of would in fuch times purchafe or reprefent a greater quantity labour. The prices of corn which he himfelf has u— -. Corn. . as they relate to the price of corn at leaft. value of filver. That in thofe times of poverty and barbarifra is thefe true. being a fort of manufadure. Dupre de to Maur the two authors who feem the that. 233 in confequence of its increafing abundance. but becaufe fuch commodities would purchafe or reprefent a fmaller quantity than in times of much more opulence and imAmerica produced. of an ox chofen twenty pence halfpenny was. of a freight and an infurance. in thofe rude ages. They agree perfedly with that of Mr. was ^ ^. country to which country where it is is brought. Silver muft certainly be cheaper in Spanifh in the it than in Europe. It . in with the greateft diligence and fidelity. is not. Dupre de are St. at One and by Ulloa. &c. as from thatof fome other parts of the rude produce of land. than the greater cattle. than in the provement. fo much from the low price of corn. it is meant. the Vol. fterling. It is prices of things antient times. it has been faid. and with that which I have been endeavouring to explain. fliould coincide fo very exadtly.

as fo cattle. &c. at an average. tions of in countries almoft wafte. &c. which the try. more or lefs exadly. as they are the fpontaneous produc- fo fhe frequently produces them in much greater In fuch quantities than the confumption of the inhabitants requires. befides. or be. cattle. therefore. the continual increafe . equivalent quantities of labour. all is the real meafure of the value and of other commodities. Labour. : Sixteen fhillings we are told by Mr. altogether uncultivated.'the raifing of equal quantities of corn in the fame foil and climate. is ho proof the real value of there very high. or but thinly inhabited. very different In every ftate of fociety. but that the real value of thofe commodities is very low. fuch commodities will reprefent. far greater part all In a country naturally is fertile. corn is the produdlion of human induflry. But poultry. will. fterling. in different ftages of improvement. . was the price of a good horfe but of in the capital of Chili. The low money that which they may be fold. to. a flate of things the fupply commonly exceeds the demand In dif- ferent ftates of fociety. Byron. all kinds. But the average produce of every fort of induftry is alvv^ays . the require nearly equal quantities of labour or what comes to fame thing. in every ftage of improvement. command filver is but a very fmall quantity. game of nature. fuited.234 THE NATURE AND CAUSES OF chofen from a herd of three or four hundred. both of it muft always be remembered. and not any particular fett commodity or filver of commodities. poula game of kinds. In every different ftage of improvement. to the average confumption the average fupply to the average demand. they can be acquired with they will purchafe or price for very fmall quantity of labour. the price of nearly equal quantities.

or Butcher's-meat. In all thofe different ftages. equal quantities of labour. or whatever elfe is the common and labourer. or be equivalent to. is. therefore. it by comparing with corn. in every ftate of fociety. of his poultry makes a fmaller part of Scotland. we may reft affured. we can of com- judge better of the real value of than by comparing modities. a more accurate meafure of value than any other commodity or therefore. the and game no part of labour is In France. it fett of commodities. lives and the labourer every where food that is chiefly upon the wholefome except cheapeft and moft abundant. than upon that of butcheifcs-meat. with any other commodity. where labour part moft highly fubfiftence it. accordingly. being more or lefs counter-balanced by the continually incrcafing price of cattle. creafe of the 235 ftate produdive powers of labour in an improving of C H A P. except upon holidays. the principal part of the fubfiftence of the In confe- quence of the extenfion of agriculture. price of and extraordi- nary occafions. Upon all thefe accounts. is in the moft thriving countries. fubfiftence of the labourer. therefore.THE WEALTH OF NATIONS. The money labour. filver. in every civilized country. the principal inftruments of agriculture. befides. rewarded. and even in where fomewhat feldom eaj- better rewarded than in France. that equal ftage quantities of corn will. more nearly reprefent. in every of improvement. The real value of H h 2 gold . labouring poor other butcher's-meat. than equal quantities of any other part of the has already been ob- rude produce of land. or of any other part of the rude produce of land. Corn. makes but an ftill infignificant it. cultivation. ferved. it in all the diff"erent ftages of wealth and improvement. produces a the land of every country much greater quantity of vegetable than of animal food. conftitutes. favourite vegetable food of the people. or fett Corn. dethe pends much more upon the average money price of'corn.

therefore. it is neceflarily connedled When. and the quantity of life the neceflaries and conveniencies of for which they mufl: be exchanged being the fame as before. upon the prices either of corn fo or of other commodities. with the diminution of the value of the precious metals fecond is . but the not. OF BOOK I. however. dance of the mines which fupply or. the wealth of any country its increafes. from the increafed wealth of the people. When more abundant mines is are difcovered. a greater quantity to of the precious metals brought market. by the popular notion. equal quantities of the metals mufl. than upon purchafe or produce of land. when on the contrary. firfl.236 THE NATURE AND CAUSES gold and filver. as the increafe of the quantity of the precious metals in any country arifes from the increafed abundance of the mines. The quantity of the precious metals diflFerent caufes: may increafe in any country from two either. feems diminiflies as its quantity increafes. er's-meat. from the increafed abunfecondly. So far. the annual produce of labour becomes gradually greater 4 and . would not probably have mifled at the many had they not been influenced. the real quantity of labour which they can command. to be altogether groundlefs. or any other part of the rude Such flight obfervations. therefore. intelligent authors. be exchanged for fmaller quantities of commodities. fo its value This notion. however. it . with fome diminution of their value. that creafes in of filver naturally in- every country with the increafe of wealth. from the increafed produce of their annual The firfl: of thefe caufes is no doubt necefl'arily conneded labour. depends much more upon the quantity of that of butchcorn which they can purchafe or command. as the quantity fame time.

and greater. But as and painters are not likely to be worfe rewarded in times of poverty and depreffion. to give for it. to circulate a greater quantity and the people. is at times naturally higher in a rich than in a filver. likely to increafe among them. pidures. ^ H A p.'ith price of gold and filver. the money price of labour proportion that of the fubfiftence of the labourer. a greater quantity 237 in order of coin becomes neceflary of commodities . are at a great diftance. as ihey have more commodities purchale a greater and a greater quantity of plate.THE WEALTH OF NATIONS. na- market where the is beft price is given for them. than filver are in times fo gold and not likely to be worfe paid for. muft be remembered. fubfiftence. whatever be the of the mines. fmaller. turally feek the Gold and like all other commodities. becaufe in this cafe . as they can afford will naturally "it. The v. vv'ill The quantity of their coin increafe from neceffity . the difference will a leJel in both. or from the fame reafon that the quantity of fine is ftatues. and of every other luxury and ftatuaries curiofity. in a country which abounds with plied with it. the quantity of their plate from vanity and oRentation. is the ultimate price is which is paid for every thing. than in one which is but indifferently fiip- If the two countries . as it naturally rifes ftate every country. of w'^ealth and profperity. and the beft price commonly given afford it. the dif- ference fly may be very great to the becaufe though the metals naturally it from the worfe better market. But gold and filver will naturally exchange for a greater quantity of fubfiftence in a rich than in a poor country. and in countries where labour will be in equally well to rewarded. poor country. when it the accidental difcovery of more abundant mines does not keep the wealth of it down. yet may be difficult to tranfport them in fuch quantities as to bring their price nearly to If the countries are near. all fo. be and may fometimes be fcarce perceptible . ' for every thing in the country it which can beft Labour.

ftationary. corn in perceptible.238 THE NATURE AND CAUSES OF cafe BOOK the tranfportation will be eafy. or declining condition. emigration from Scotland. it is certainly fome-^ what plies dearer. it cannot commonly be fold higher there than it. Scotch corn generally appears to be a good deal cheaper than Englifh . Gold . China is a much richer coun- try than any part of hurope. the Scotch corn which comes to market in competition with The in difference is ftill between the money price of labour in China and greater than that between the Europe. and the difference between the price of fubfiflence in is is China and in Europe is is very great. much lower. Scotland receives almofl: every year very large fup-. not by their a£lual wealth or po- by their advancing. in Europe. Rice in China much cheaper a than wheat any where . the greater part of Europe being in an flill. muft be re- membered. but is naturally regulated. therefore. verty. in Scotland than in England. while China feems to be flanding is The mo- ney price of labour lower in Scotland than in England. and yet in proportion or to the quantity and goodnefs of the flour or meal which can' be made from it. muft be dearer to its quality. though advancing much more flowly than is England. thofe two countries proportion to much fmaller. in it and every the commodity muft commonly be it fomewhat dearer that country to which is brought than in from which comes. ftate. becaufe the real recompence of labour advancing to greater wealth. becaufe in the real recompence of labour higher in Europe than improving China. Englifli corn. The proportion between it the real recompence of labour in different countries. and but jufl In the quantity or meafure. but in proportion to its quality. rity The frequency of from England. money is price of fubfiflence. Scotland. and the ra- of is it fufficlently prove that the demand for la- bour very different in the two countries. from England. England much" richer country than Scotland but the difference between is the money is price of.

labour to bring filver to a great deal Amfterdam than bring corn. : the real opulence either of Holland or of the while the number of their inhabitants remain the fame diminifh . other wife . it muft be brought to them from diftant to its by an addition It price. accompany this de^ caufe or as are in will rife to the price of a famine. they are of any In great towns corn the country. They do not produce enough to maintain their inhabitants. lefs pay for the carriage from thofe countries. its which muft its necefiarily effe£t. their pov/er of fupplying themfelves from diftant countries and the price of corn.orn muft be very different. however. are rich in the induftry and fkill of in every fort in fhipping. parts of the country but it cofts a great deal more to bring corn. territory Diminifh of Genoa. fcarce among the pooreft Among value. to does not coft . Vv^hich the value. as countries. favages.THE WEALTH OF NATIONS. is as Hol- land and the territory of Genoa. as 239 they are naturally of the greateft value among ^ ^- ^\f^ the richeft. and manufacturers and abridge labour of machinery which can facilitate j and in all the : other inftruments and means of carriage and commerce but they are poor in corn. When we of fo it want of neceffaries as it we muft part with all fupcrfluities. finks in times of poverty and diftrefs. fuch In feme very rich and commercial countries. inftead of finking with that diminution in the quantity of their clenfion either as filver. the pooreft of all nations. is always dearer than in remote parts of is This. vifes in times of opulence It is and profperity. corn that it is dear for the fame reafon dear in great towns. real coft of filver muft be nearly the fame in both places but that of . their artificers They . but of the real dearnefs of corn. lefs does not coft labour to bring filver to the great town than to the remote . GoLT> and filver. muft. which. fo they are naturally of the leaft value nations. the efFe£t. not of the real cheapIt nefs of filver. Dantzick but it cofts more to The .

no reafon to infer the thofe who have colleded this prices of things in ancient times. Whatever. to diminifh could have or the no tendency in their value either in Great Britain. from any obfervations which they had made upon the prices either of corn or of other commodities. Second Period. had. may have and that been the increafe in the quan- of the precious metals. diftrefs. therefcye. times of times poverty and fperity. they had ftill lefs reafon to infer it from any fuppofed increafe of wealth and improvement. during the period between the fourteenth middle of the arofe of the fixteenth it century> from the increafe of wealth and improvement. and finks in opulence . If any other part of Europe. during a period of about fe- venty years. From filver about i^fyo to about 1640. Silver funk la- in its real value. pe- diminution of the value of filver. held a quite oppofite courfe. filver is only a fuperfluity. during riod.240 THE NATURE ANDCAUSES OF otherwlfe BOOK *- —— V with neceflaries. BU T how this firft various foever may have been the opinions of the learned concerning the progrefs of the value of filver during period. or would exchange for a fmailer quantity of rofe in its bour than before . the variation in the proportion between the value of and that of corn. is a neceffary. and corn nominal price. which. and pro- for they which are always times of great abundance Corn could not otherwife be times of opulence and profperity. they are unanimous concerning it during the fecond. tity therefore. the rifes quantity in of of J labour which tliey can purchafe or command. and inflead of . Their real price.

though even the mines of Potofi had been difcovered more than thirty years' before. or about thirty and forty and eight ounces of lings filver fliil- of our prefent money. or about the caufe of The greater part of Europe was. T-'-j-. 6d. or about fix ounces and one-third of an ounce of filver. negleding likewife the fra£lion. or 4s. fcems to have fole caufe been the of this diminution in the value of It . the price of the 1 1.THE WEALTH OF NATIONS. comes out have been 16s. 4. came to be fold for the quarter. the price of the middle wheat comes out to have been about 1 1. Vol. yd. of being commonly or about ten fold 241 for about two ounces of filver the quarter. filver in pro- portion to that of corn. I. The difcovery of the abundant mines of America. fix CHAP. is accounted for accordingly in the fame manner by every body and there never has been any difpute it. fo far exceeded that of the demand. to to be obferved. negleding to the fradion. fliillings of our prefent money. advancing in induftry filver and im- provement. -'-. or for the difference 4s. both inclufive. 12 s. From which fum. id. From pears. is. that the value of that metal it funk is The difcovery of the mines of America. the average price of the quarter of nine bufhels of the beft wheat at Windfor market. muft confequently have been fupply had. From . it increafe of the feems. and the demand for increafing. 1595 to 1620. does not feem have had any very fenfible effedt upon the prices of things in England till after 1570. -i. during But the this period. quarter of eight bufhels -^. lod. And from beft this fum. between the price of the wheat and that of the middle wheat. and deducing a ninth. ap- from the accounts of Eton College. 1 i . anddeduding a ninth. confiderably. either about the fadt. to have been 2I. 8d.

and which. BETWEEN 1630 and 1640.. iis. Thibd Period. being the fixty-four laft laft century. dearer than it have been ql. The firft of thefe events was the civil war. los. appears. 6d. and it had probably begun to do fo even fome time before the end of the laft. or about 1636. 4 had been during the fixteen years before. both inclufive. od. from which making the like deduc- tions as in the foregoing cafe. the average price of the fame at the meafure of the beft wheat fame market. from the od. But in the courfe of thefe fixty-four years there happened two events which muft have produced a much greater fcarcity of corn than what the courfe of the feafoas would otherwife have occafioned. -i. 19 s. the average price of the quarter of nine at of the beft wheat to Windfor market. both inclufive. and the value of that metal feems never to have funk lower in proportion to that of corn than it was about that time. fame accounts. muft have raifed the price of . to have been 2I. appears. without fuppofing any further redudion in the value of filver.ot about feven ounces and two-thirds of an ounce of filver. the effedof the- difcovery of the mines of America in reducing the value of filver» appears to have been compleated. from the fame accounts. therefore. It feems to have rifen fomewhat in the courfe of the prefent century. From 1637 years of the bufliels to 1700. by difcourag* ing tillage and interrupting commerce. which. the average price of the quarter of eight buftiels of middle wheat comes out to have been 1 1. which is only i 3.242 THE NATURE AND CAUSES OF From 1621 to 1636. will much more than account for this very fmall en- hancement of price.

and. to raife the price in the home-market. muft have been fomewhat enhanced by the bounty. In 1648. In 1699. from the fame accounts. accordingly. to 1699. the price of wheat at Windfor market. lof 243 corn much above what the courfe of the feafons would otherwlfe It mufl: have occafioncd. are Thefe. had not time produce any fuchefFed:. have had this efFedt more or lefs at all the different markets in the kingdom. and thereby hindering the abundance of one year from compenfating the fcarcity of another. the neighbourhood of London. though no doubt principally owing to the badnefs of the ieafons.. and confequently a greater cheapnefs of corn in the home-market than what would otherwife have taken place there. though the by no means the only high prices which feem to have been occafioned by the civil wars. appears. tillage. During this fhort period its only effed muft have been. however. The excefs of thofe two years above 2 is 10 s.' The people. by encouraging the exportation of the furplus produce of every year. the quarter of 1. 5s. The fcarcity which prevailed in England from 1693 ^^^^ inclufive. fecond event was the bounty upon the exportation of corn granted in 1688. of years. 5s. it has been thought by in a long courfe many by encouraging may. nine bufhels. that between 1688 and 1700. accordingly. which will among the fixty-four laft years of the laft century. extending through a confiderable part of Europe. (the average price of the fixteen years preceding 1637) divided 3I. The bounty. I fliall examine hereafter. have occafioned a greater abundance. higheft. alone very nearly account for that fmall enhancement of price which feems to have taken place in them. but particularly at thofe in to be fupplied which require from the the beft greateft diftance. and 1649 t° ^^'^'^ been 4I. I i 8 There . the further exportation of corn was prohibited for nine months. efFedt at How far the bounty could produce this any time.THE WEALTH OF NATIONS. in to have been 4I. it I fhall only obferve at to prefent. therefore.

the coin. and five-pence common *. the worn and dipt Before the late re-coinage of the gold. therefore. had begun in the reign of Charles till and had gone on continually increafing 1695- . In the courfe of the prefent century.... 68. therefore. in the real quantity of filver any augmentation it. the any time been more below its filver coin it is has not at at prefent. though could not occafion any fcarcity of corn. which the but five-pence above the mint price. five ftiillings the price of filver bullion was feldom higher than is and feven-pence an ounce. according to the ftandard. Even beand fore the late re -coinage of the gold. ought be contained in contained in as that which. its value has been kept up by that of the gold coin for which it is exchanged. filver . the gold coin lefs fo was a good deal defaced too. it. For though before the late re-coinage. than when near to ftandard value. But the nominal fum which conflitutes the market price of every {o commodity by is neceffarily regulated. at which time. the value of the filver coin was not kept up by the gold coin for thirty Shillings of a guinea then commonly exchanging filver. which. is necef- higher when the coin its much debafed by clipping and wear- ing. nor.244 THE NATURE AND CAUSES OF" There was period. it is found by experience. . at an average. not much by to is the quantity of filver. perhaps. below its ftandard value. * Lowndes's Effay on the Silver Coin.. gold p. near five and twenty per cent. Lowndes. the- current filver coin was.5. which was ufually paid for in the muft neceffarily have occafioned fome aug- mentation nominal fum. This event was the great debafeThis evil ment of the filver coin. But in 1695. is adually farily This nominal fum. In i6. price of filver bullion was fix ftiillings an ounce which is fifteen-pence above the mint price. it was than the filver. ftandard weight than But though very much defaced. on the contrary. as we may learn from Mr. by clipping and wearing. II. it. a third event which occurred it in the courfe of the fame and which.

upon the principles of a fyftem which I ftialt explain and examine hereafter. appears. as in of this century the bounty efFe£ls had full time to to produce courage the the good commonly imputed to to it. According to this account. below In five ftandard value. that is But in the be- ginning of the prefent century. fliillings and fixpence. to 1695. In the of the century too there has tlie civil been no great publick calamity. on the had been fuppofed near and twenty per cent. the greater part of the ftill coin it is nearer to courfe its ftandard prefent weight than prefent. price of the quarter of nine buftiels of the beft wheat Windfor market. as well as to other. it bullion. either difcourage tillage or fuch as interrupt war. or more than diaring five and twenty per laft cheaper than laft it had been and about fix• the fixty-four years of the century nine {hillings and fix-pence cheaper than teen years preceding 1636. its was not fupbe pofed to be more than eight per cent. the in And though the bounty. it . tha average: . which could the interior commerce of the country. It is firft raife it the by many people fuppofed to have done more. otherwife would be the courfe all the adual ftate yet. -i^. which is about ten cent. by the accounts of Eton College. of America about one may be fuppofed to have produced cheaper than it and ftailling had been in the twenty-fix years preceding 1620. be fuppofed to have done fomething to lower the price of that commodity the one way. below that value. great re-coinage current filver in immediately after the King William's muft have been at time. OF NATIONS.THE WEALTH filver together. before that difcovery can well be fuppofed to have produced its full efFedl. and thereby it increafe the quantity of corn home market. Inthefixtythe average at four years of the prefent century accordingly. had been during the when the difcovery of the abundant mines its full eft'ect . it price of corn fomewhat higher than of has tillage . filver 245 when compared with contrary. may. 6d. this which has taken place through the greater part of muft always raife century. to have been: 2K OS. enirt tillage.

pence and trouble of marketing. Before courfe of bad feafons. therefore. of this kind. or the price at which a farmer contra(fts for a certain number of years to deliver a certain quantity of corn to As a contrail of this kind faves the farmer the exa dealer.S46 THE NATURE AND CAUSES OE average price of middle wheat. a man famous for ledge in matters know6d. Gregory King. er's price I The grow- underftand to be the fame with what is fometlmes called the contrad price. who then compofed a proportion of the legiHature than they do at prefent. 2d. the price of the quarter of nine bufhels of the beft wheat at Windfor market was 1 1. Hill greater The country gentlemen. King had judged be at that eight and twenty the quarter to time the ordinary contrail price in years of moderate the fcarcity occafioned by the late extraordinary it plenty. his In 1688. the loweft price at which it had ever been from 1595. comes out {hillings the quarter to have been about thirty-two of eight bufhels. In 1688 was granted the parliamentary bounty upon the exportation of corn. the bufhel. I had . or eight and twenty fhillings the quarter. lower than the contrail price is generally what is fuppofed to be the average market price. ellimated the average price of wheat in years of moderate plenty to be to the grower 3 s. feems to The and the it value of filver. trait price in all was. I have been affured. 5s. Mr. had probably begun to do fo even fome time before the end of laft. have rifen fomewhat in proportion to that of corn during the courfe of the prefent century. cluring thefe fixty-four firft BOOK years of the prefent century. the ordinary con- common years. In 1687. fliillings Mr.

chap. in proportion to that of corn. time be except in years of extraordinary fcarcity. till and II. rife fenfible In by occafioning an extraordinary price exportation. To encourage tillage.THE WEALTH OF NATIONS. In years of great been fufpended. The bounty I. that is fhillings. than Mr. It was wheat was twenty fo high as forty-eight or -^ths dearer ihillings the quarter . however. eight and forty fhillings the quarter was a price which. King had in that very year efllmated the grower's price to be in times of moderate plenty. was an expedient it artificially to the high price at which had' frequently been fold in the times of Charles to take place. therefore. therefore. from whom it was foliciting the firft eftablifh- ment of the annual land-tax. fomewhat before the end of the laft century. It fcarcity. had felt 247 that the money to raife price of corn it was falling. neceffarily raifes from being fo the adual ftate of tillage. But the It government of King William was not then fully in was no condition to refufe at that any thing very time to the country gentlemen. and it feems to have continued to do fo during the courfe of the greater part of the prefent . the bounty has generally mufl. If his calculations deferve any part of the reputation which they have obtained very univerfally. fettled. though the neceflary operation of had probably rifen the bounty muft have hindered that as it otherwife would have been in plentiful years the bounty. by keep- ing up the price of corn even in the moft plentiful ycarsj was the avowed end of the inftitution. have had fome efFedt even upon the prices of many of thofe years. without at that fome fuch expedient as the bounty. The value of filver. could not expected. indeed. the of corn above what it otherwife would be in thofe years. By the extraordinary exportatioa .

by three very faithful. value of I fhall only obferve at prefent. has not been peculiar to England. the the price of corn above If. Mr. much more had not been But without the bounty. and laborious St. Mr.54g THE NATURE AND CAUSES exportation <t}uently OF it BOOK ^' which it occafions in years of plenty. it it muft. during the fixty-four years of the prefent century. has been obferved to have taken place in France during the fame period. MelTance. muft fre- hinder the plenty of one year from compenfating the fcarcity of another. proportion It that this rife in the filver. have been for this operation of the bounty. it effefts would not have been the fame. Both bounty in years of plenty and in years of fcarcity. therefore. notwithftanding this prohibition. therefore. fhould in another be owing to the extraordinary encouragement given to exportation. portion too. But in and the author of the Eflay on the police of grain. fo. It would be more proper perhaps in the average to confider this variation money price of corn as the effect rather of fome the gradual rife in the real value of filver in European market. Dupre de Maur. than . than during the fixty-four laft the average price has been lower laft years of the century. France. I fhall endeavour to explain hereafter. of this inftitution upon the agriculture of the country. in to that of corn. col- ledors of the prices of corn. when I come to treat particularly may be faid. in the fame ftate of tillage. till 1764. raifes what it naturally would be firft in the adual (late of tillage. the exportation of grain was by law pro. and nearly in the fame prodiligent. hibited and it is fomewhat difficult to fuppofe that nearly the fame diminution of price which took place in one country. the ftate of What may have been the tillage of bounties.

THE WEALTH than of any fall in OF NATIONS. The feafons for thefe ten or twelve years paft have been . not to any fall in the real value of corn. are not plenty. at dlftant periods filver of time a more accurate <—— ——^ meafure of value than either dity. in and the all dis- much increafed the fcarcity in thofc dear years. From 1741 to 1750. it 249 has the real average value of corn. unfavourable through the . not as a permanent. rife this was univerfally afcribed. feems evidently to have been the effedt of the extra- ordinary unfavourablenefs of the feafons. the average price of the quarter of Vol. is of bad feafons. the average it money price of corn has fallen fomewhat belovv what greater part of the laft century.greater part of Europe orders of Poland have very countries. its corn rofe to three and four times former money price. may very laft be fet in oppofition to high price during thefe eight or ten years. however. and ought therefore to be regarded. courfe ufed to be fupplied from that market. Ten years of extraordinary fcarcity. If during the fixty-four years of the prefent century. therefore. both inclufive. had been during the fame manner im- we fliould in the pute this change. already been obferved. So long a event. though not a very . but to fome life in the real value of filver in the European market. This high price of corn. befides. not to fall any in the real value of corn» but to a firft in the real value of filver. more wonderful than ten years of extraordinary price of corn The low well from 1741 its to 1750. L K k nine . has occafioned a fufpicion that the real value of filver continues to fall in the European market. but as a tranfitory and occafional event. will be at no lofs to recoiled: fcveral other examples of the fame kind. or perhaps any other commochange When after the difcovery of the abundant mines of America. ftill The high price of corn during thefe ten or twelve years indeed. common enquired by no means a fingular one and whoever has much into the hiftory of the prices of corn in former times. part. is C H A » p. which. Corn.

during thefe ten years. to have been.514. Mr. from He will find there too the particular is account of the preceding ten years. no During it thefe ten quantity of all forts of grain exported. bufhels of The average price of the quarter of eight out.2^0 THE NATURE AND CAUSES OF nine bufliels of the befl wheat at Windfor market. 17 s. and in the following year he might have had In that fingle year the bounty 324. to lefs appears from the cuf- tom-houfe books. may As the * Sec Trafls on the Corn Trade j Tradt . amounted nine thoufand one than eight millions twentyquarters hundred and for this fifty-fix one bufhel. in oppofition to the twenty preceding 1 770. however. The year 1740. comes according to this account 1 1.963!.1761. Between as it 1741 and 175^. 10 s. only 6s. the bounty muft have hindered the price of corn from falling fo low in the naturally home market years the would have done. obferved to the Houfe of ceding. of which the average not fo likewife below. 44-d» In 1749 accordingly. Pelham. which firft nearly 6s. 9^d. middle wheat. that for the three years prevery extraordinary fum had been paid as bounty for the exportation of corn. at that time prime minifter. was a year of extraordinary fcarcity. 13 s. It is unneceffary to obferve how much forced exportation muft have raifed the price of corn above it what otherwife would have been in the home market. The bounty paid amounted to 1. vatlon. it BOOK appears from is was only i 1. a Commons. the general average of the years of the century. however. 3d. At the the end of the accounts annexed to this chapter the reader will find the particular account of thofe ten years feparated reft. the accounts of Eton College. 8d. tho' fixty-four firft much below. He had good reafon to make to this ftill obferbetter. •very well be fet Thefe twenty years preceding 1750. paid amounted no lefs than this 6d*. below the average price of the fixty-four years of the prefent century. 3d.

but of a in the real Vox. been obferved fmk the gradually laft with the money price of corn. k z- Brice. to The change has in the evidently been too fudden to be afcribed any change value of lilver. little a meafure more than four Winchefter recompence of labour. of any diminution of the value of rife general market of Europe. « century. notwithflanding the Intervention of one or two dear years. tfie 25^ former were a good deal below the general average of the ' CHAP. has increafed confiderably during. for example. the accidental variation of the feafons. life quantities- of the necelTaries and convenicncies of which are given to the labourer. and almoil univerfal profperity of the country. I. notwithflanding the If intervention of one or tv^o cheap one's. The fuddenncfb* of the efFedt can be accounted for only by a caufe which can operate fuddenly. rifcri' duting the courfe of the prefent century.THE WEALTH OF NATIONS. The money be the in the efFedt. price of labour in Great Britain.. the former have not been as latter have been above it. arifing from the great. it bufliels. . Both in century and in the prefent. hovi^ever. fo the latter ' have been a good deal above it. The not rife in its money price feems to have been the filver in the effecl. fo In Francej a country not altogether fince profperous. which contains a In Great Britain the the real real" has already been fliown. K. of 1759. feems tO in the value in the much of any diminution as of filver European market.wages of common labour are there faid to ave>- have been pretty uniformly about the tvientieth part of the rage price of the feptler of wheat. we ought probably to impute it which is as the to the bounty. of an increafe demand fot labour in Great Britain. not fo This. the courfe of the prefent century. the day. laft the money price of labour has. to the middle of the average century. much below the general average. has indeed. always flow and gradual.

it has already been obferved. at former. ftill and at laft to a tenth. it feems. and the rent of the land. would foon find that the whole annual importation could not be difpofcd of at . For fome time continue to fell after the its firft difcovery of America. the moft fertile in all America. it This then to In that tax was originally a half. much above their natural Thofe who imported that metal into Europe. the tax of the king of Spain. the whole rent of the land. and rate. owing the peculiarly happy circumftances of the country. which were once very high. had time of fufficient to produce their as full effed. filver would price. Silver would gradually Jts exchange for a fmaller and a fmaller quantity of goods. or before 1636. the wages of the labour. according to their natural rates. the date In the courfe of ninety of the difcovery of the mines of Potofi.2=:z THE NATURE AND CAUSES price of labour in the particular 1 1 OF to BOOK « / market of Great Britain. amounting to a tenth of the grofs produce. or to reduce the value fall. eats up. or to what was jufl: fufficient to pay. which muft be paid in order to bring filver it from the mine to the market. the profits of the ftock. years. together with its ordinary profits.this high price. it . however. foon afterwards at fell it to a third. or not much below its former The profits of mining would for fome time be very great. remains after replacing the ftock of the undertaker of the work. which rate continues. In the greater part of the mines of Peru. and it Teems to be univerfally ac- knowledged that thefe profits. thefe mines. price would fink gradually lower and lower till it fell to its natural price. filver in the European market low as ii. is all the greater part of the filver mines of Peru this. vol. it could well while * Soloj-zano. The tax of the king of Spain was reduced to a fifth part of the regiftered filver in 1504*. confiftently with carrying on the works. are now as low as they can well be. a fifth. one and forty years before 1545.

fufficient to its time reduce any commodity. have gone backwards. and it. perhaps. to natural price. and the declcndon of Spain K. Spain and Portugal. is is have gone backwards. however. part of Europe. Portugal. but has perhaps even raifed it fomewhat higher than it was about the middle of the laft century. The market of Europe has. or to the loweft price at which. and which has not only kept up the value of in the European market. Denmark. time feems rather to have are fuppofcd to recovered a little. and and in have all adItaly manufadures. First. or to give up working the greater part of the American mines which wrought. fo great k 3 . even Sweden. it can continue to pays a particular time together. might have become neceflary duce the tax upon not only to one tenth. Holland. as in 1736. become gradually more and England. or the tiie gradual enlargement of the market for the produce of filver mines of America.. indeed. while tax.THE it WEALTH OF NATIONS. are now- The gradual increafe of the demand for filver. more extcnfive. the greater part of Europe has been much improved. but to one twentieth. but a very fmall not. Ruffia. of which there no monoit poly. Since that. Since the of its firft difcovery of America. vanced confiderably both feems not to in agriculture and Germany. is probably the caufe vvhich has prevented this filver from happening. The it fall of Italy preceded the conqueft of Peru. be fold for any confidcrable The fallen price of filver in the it European market might perhaps have either to re- flill lower. in the fame manner as that upon gold. France. Ninety years is is s^S continued to pay this tax to the king of Spain. Since the difcovery of America. the market for the produce filver mines has been growing gradually more and more extenfive.

culture. S in arts. Spain was a very poor country. but was wanting The of increafing produce of the agriculture and manufaflures of Eu- rope muft neceffarily have required a gradual increafe filver coin to circulate it. will evidently difcern that. the difcovery and conqueft. and population. certainly altogether new markets. After all the wonderful tales which have been publifhed concern- ing the fplendid reads. A confiderable degree df both. as Even Mexico and. America is itfelf a new market for the produce of its own filver mines. their inhabitants were much more ignorant than . abounded in France. has now been introduced into all of them. who had neither arts nor agriculture. agri- and commerce. partly for coin v and partly for filver plate.«54 THE NATURE AND CAUSES OF great as is commonly imagined. who had travelled fo frequently through both countries. fo In t?ie beginning of tlie fixteenth century. the Yucatan. and the Brazils were. are much more ftate extenfive ones than they ever were before. with of thofe countries in antient times. which has been much improved fmce that time. The greater part too of the Spanifh and Portuguefe colonies are altogether new markets. •which. The Englifh colonies are altogether a new market. Paraguay. eveii in comparifon with France. m the quantity and the increafmg number of wealthy individuals muft have required the like increafe in the quantity of their plate and other ornaments of filver. It was the well-known remark of the Emperor Charles V. requires a continually. and as its advances in agriculture. Peru. inhabited by favage nations. New Gra-- nada. augmenting fupply of through a great continent where there never was any demand before. Secondly. are much more rapid than thofe of the moft thriving countries in Europe. induftry. before difco-- vered by the Europeans. that every thing. that every thing in Spain. though they cannot be confidered. its demand muft increafe much more rapidly. whoever hiftory of their firft* any degree of fober judgment.

make own among them. and the priefts. though they fcarce ever exceeded five hundred men. faid to The few among them All the have been all maintained by the fovereign. reprefents Lima as containing Ulloa* between twenty. government many refpe(Sts lefs favourable to agriculthat of all improvement and population. barter. artificers and inftruments of agriculture. than the Englifh colonies. their own clothes. fhoes. more civilized nation of the two. They feem. Thofe to build their own houfes.THE WEALTH OF NATIONS. many defeats in government. than the Tartars of the Ukraine are at prefent. is. Their whole commerce was carried on by accordingly fcarce any divifion of labour and there wa$ who to cultivated the their ground were obliged houfliold furniture. a cumftance common vifited to all new colonies. though they made ufe ' — "-. thefe much and cir- more rapidly than any country happy climate. and frequently did not half that number.five and twenty-eight thoufand Inhabitants. the nobles> their fervai ts or flaves. fo great an civil advantage as to compenfate Frezier. who fents refided in it the fame country between 1740 and 1746. who Peru in 171 3. furniftied one fmgle manufacture to The Spanifh armies. the great In a fertile foil abundance and cheapnefs of land. vlans. in The Spanifh colonies are under a ture. however.^ of gold and filver as ornaments. are. in countries too which at the fame time are reprefented fufficiently as very populous and well cult^vated^ demonftrate that the ftory of this populoufnefs and high is cultivation in a great meafure fabulous. it feems. the ^55 the Peru- Even C HA t P. had no coined money of any kind. repre- as containing more than fifty thoufand. amount to found almoft every where great difficulty in procuring fubfiftence. and were probably ancient arts of Mexico and Peru have never Europe. The difference in their accounts of the populoufnefs of is feveral other principal towns in Chili aaU Peru nearly the famej and as there feems to be no reafon S . to be advancing in in Europe. The famines which they are faid to have occafioned almoft wherever they went.

The Eaft-India trade of the Swedes and Danes began xovites in the courfe of the prefent century. increafe which is fcarce inferior to that of America. Thirdly. and in a few years expelled them from their principal During [the greater part of the laft century fettlements in India. but has been greatly augmented in the the prefent. In the laft years of that century the Dutch began to encroach upon this monopoly. it marks an reafon to doubt of the good information of the Englifli colonies. has been continually augmenting. filver is a for the produce of increafe its own mines. fixteenth century. Even the MufEaft- now trade regularly with Siberia China by a fort of caravans which CO over land through India trade of all and Tartary to Pekin. as to afford a gradual increafe . has been alraoft con- tinually augmenting. taking off a greater and a greater quantity of Since that time the dired trade between America and the Eaft-Indies. The thefe nations. the trade of the Dutch continually augmenting in a ftill greater proportion than that of the Portuguefe thofe . if we except that of the French. which is carried on by ra-eans of the Acapulco fhips. of which the demand muft much more rapidly tlun that of the moft thriving country in Europe. and the indired intercourfe by the way of Europe During the has been augmenting in a ftill greater proportion. which the laft war had well nigh annihilated. and a market which. has been continually filver. two nations divided the moft confiderable part of the EaftIndia trade between them. The it increafing confumption of Eaft-India fo great goods in Europe is. The laft Englifla and French carried on fome trade with it India in the courfe of century.declined.-z^G THE NATURE AND CAUSES new market OF BOOK ^' either. the Portuguefe were the only European nation who carried on any regular trade to the Eaft-Indies. The of the filver Eaft-Indies is another market for the produce mines of America. from the fir ft time of the difcovery of thofe mines. feems. therefore.

At prefent the value of the imported by the Englifli their ov. Tea. coaft from Gottenburg as the ia Sweden. of which they in Europe. the abundance of food mufl: extent. have means of purchafing a much greater quantity of the labour of other people. the value of the precious metals. of the piece has increafed all goods of Bengal. enables them to give a greater quantity of it thofe fmgular and rare produdions I. XI. for the ufe of countrymen. creafe ^57 of employment to them all. But in the Eaft-Indies. continues to be fo. The confumption of articles. very little ufed in Europe before the middle of the tea annually century. particularly in China and Tndoftan. much more populous. was much greater thaa that of the Englifli Eaft-India Company before the late redudion of their fhipping. accordingly of the European {hipping employed in the Eaft-India trade at any one time during the laft century. porcelain of China. be much greater than in any corn country of equal Such countries are accordingly rich. which generally yield two. and even not enough a great deal more being conftantly fmuggled to . In rice countries. which nature furniflics Vol.-n Eaft-India Company. much more numerous and i|Dlendid than that of the richeft fubjeds The fame fupcr-abundance of food. for example. and of innumerable other very nearly in a like proportion. is. tiful each of them more plen- than any common crop of corn. perhaps. have the for all difpofal. this amounts is more than a million and a half a year . The all retinue of a grandee in China or Indoftan accordingly by accounts. of the fpiceries of the Moluccas. it ftill u as when the Europeans firfl began much higher than in Europe and . was a drug laft Chap. The tonnage not. fometimes three crops in the year. and from the Eaft-Indla of France too as long French the Company was in profperity. into the country from the ports of Holland.THE WEALTH OF NATIONS. In them too the having a greater fuper-abundance of food the to difpofe of beyond what they themfelves can confume. LI but . to trade to thofe countries.

and of the low price of that food.aj8 THE NATURE AND CAUSES OF but in very fmall quantities . than is through the greater part of Europe. Though had been the mines. the two great markets of India. therefore. than the mines which fupplied the European. whicli fupphed the Indian market abundant as thofe which fupplied the European. lower both it in China and Indoftan. and real price is that of food. The wages of . as therefore. The money would be a price diamonds. firfl fomewhat lower. But the life of labour. It cofts more labour. the money price of the greater part of manufatftures will be in proportion to the money price of labour. and in manu- fadturing art and induftry. But the^ mines which fupplied the India nmarket with the precious metals feem tohave been a good deal lefs abundant. the labourer the will there purchafe a fmaller quantity of food and as price of food is much is lower in India than in Europe. The for precious metals.ill account both of the fmall quantity of food which purchafe. But in countries of equal art and induftry. the lower money money upon price of labour there upon a double it account. fuch commodities would naturally exchange for a greater quantity of food in India than in Europe. The money price of the greater part of manufaftures. v. the great objeds of the competition of the rich. the of alb neceffaries. tho' inferior. would naturally exchange flones. Through the greater part of Europe too the expence of land. the real it quantity of the neceffaries of is which given to the labourer. and thofe which fupplied deal it with the precious flonesa good more fo. China and Indoftan. will naturally be much lower in thofe great empires than it is any where in Europe. great deal lower in the one country than in the other. and therefore more money. BOOK fuch as the precious metals and tiie precious ftones. to bring . has already been obferved. the greateft of all fuperfluities.carriage increafes very much both the real and nominal price of moft manufadlures. feem not to be much inferior to any part of Europe.. therefore. in India fomewhat a greater quantity of the predous greater quantity of food than in and for a much of Europe.

In Chma and Indoftan the extent and variety of inland — -> navigations fave the greater part of this labour. and fine gold it is is but as ten. all Upon it thefe accounts. but to repair that all continual wafte and confumption of filver which takes place in countries where that metal is v. command a greater quantity of labour and commodities It is more advantageous too to carry filver thither than gold . becaufe in China. There is any commodity Europe. of the greater part of fail European fliips which to India.THE WEALTH OF NATIONS. will which brings a better price there or which. fifteen to one. ounces of filver will purchafe an ounce In of gold: in Europe it requires from fourteen to fifteen ounces. and confequently of this money. therefore. the moft valuable article in the Acapulco fhips which fail to Manilla. The filver of the new continent feems in this manner to be one of the principal commodities by which the commerce between the two extremities of the old one is carried on. to carry and continues to be. the quan- In order to fupply tity fo very widely extended a market. ten. extremely advantageous fcarce from Europe to India. . in a great meafiare. L 1 2 The . the cargoes.fed. whereas in Europe as fourteen Or In China. of filver annually brought from the mines muft not only be fupport that continual increafe both of coin and of fufficient to plate which is required in all thriving countries. to one. and the greater part of the other markets filver of India. diftant and it is by means of it. and thereby reduce ftill lower both the real and the nominal price of the greater part of their manufaftures. in proportion to the it quantity of labour and commodities which cofts in purchafe or in India. bring firft 259 C H A v_—-v p. that thofe parts of the world are conneded with one another. the proportion between fine or at moft as twelve. the materials. and the greater part of the other markets of India. or at moft twelve. filver has generally It is been one of the moft valuable ar- ticles. the precious ftill metals are a commodity which always has been. and afterwards the compleat manufa£ture to market.

as it is gradual confumption. muft. fame kind with thofe of Birmingham. of which the knowledge frequently dies with the perfon occafion the lofs of a ftill who makes the concealment. to be found in Pofifcript was not which has never had a few copies It correfls : feveral errors in the book. greater quantity. J748' . at an average of fix years. according to the to beft accountSj about fix millions fterling a year. metals in fome particular greater The confumption of thofe manufadures.:6o THE NATURE AND CAUSES ing. OF The continual confumption of the precious metals in coin by wearand in plate both by wearing and cleaning. According to Mr. or in fluffs. I5 and 16. but what may be fuppofed to be fmuggled) amounts. The quantity of gold and filver imported at both Cadiz and Lifbon (including not only what comes under regifter. however. embroideries. much more much more In the manufadlures filver of Birmingham alone. the quantity of gold and terwards appearing in the fhape of thofe metals. is very fenfible. annually em- ployed in gilding and plating. * Poflfcript to the Univerfal Merchant. The poftfcript is. and thereby difquallfied from ever afis faid to amount to more than fifty thoufand pounds fterling. We may from thence formin all the dif- fome notion how great muft be the annual confumption ferent parts of the world. furniture^ &c. loft A confiderable quantity too muft be annually in tranfporting thofe metals from one place to another both by fea and by land. Meggens * the annual importation of the viz. and in commodities of which the ufe is fo very widely extended. gold and filver the gilding of books. leccnd edition. This 1756. the almoft univerfal cuftom of con- cealing treafures in the bowels of the earth. though it may not perhaps be this upon the whole than fenfible. precious metals into Spain. either in manufactures of the laces.. therefore. three years after the publication of the book. is. printed till from p. rapid. would alone require a very great annual fupply. In the greater part of the governments of Afiaj befides.

The account of what was imported under regifter. 4s. into Spain. each of them afforded. 1748 to 261. an average of eleven from 1754 to 1764. fterling.333. well informed eftablifla- author of the Philofophical and Political Hiftory of the the Europeans in the filver two Indies. fterling. equal to about tWO' . I753» both inclufive. and into Portugal. we might value it at eighteen millions of cruzadoes. which may have amounted 6d. to He in- forms us too. at forty-four guineas fterling. is to feventeen millions equal to 3. viz. p. amounted 1.0001. that if we were judge of the quantity of gold annually imported from the Brazils into Lifbon by the amount of the tax paid to the king of Portugal. and in gold to 49. according to the each of them afforded.825. He gives us the the particular places from which the gold and filver were brought. which it feems is one-fifth of the ftandard metal. amounts 103. los.107 pounds weight.8781. the piaftre. The to gold. is Both amount to 5. or forty-five millions of French livres. at an average of C H a A I* feven years.185 4 piaftres of ten reals. the whole annual importation. and a half the pound Troy. and of the particular quantity of each metal.413. at 4s. at weight. According ment of years. he detail of affures us exad:.4461. pofes. to the eloquent and. which ac- He makes an allowmay have ance too for the quantity of each metal which he fuppofes been fmuggled. amounts together 2.4311.THE WEALTH OF NATIONS. and of the particular quantities of each metal regifter. both inclufive. The great experience of this judicious merchant renders his opinion of confiderable weight. fterling.940 pounds filver. fometimes. in filver to from 1747 to ^753> both inclufive. The fixty-two IhilUngs the pound Troy. however.101. amounted to account of what may have he fupof piaftres. On been fmuggled.984. the annual importation at of regiftered gold and viz. He gives the detail too of the particular places filver from which the gold and were brought. 14 s.746. which. 13. cording to the regifter.

filver befides. fo that the whole will amount to 2. On account of what may have been he fays. of fifty pounds a year. fhips to Manilla.000!. colonies carry part. is equal to the hundred and twentieth part of this at the rate annual importation of fix millions a year. by far the moft all abundant. is produce. not equal to the whole annual produce of the mines of America.000!. may even have fallen fo far fliort of this demand . therefore.0001. on with thofe of other European in the country. by no means the only gold and They are. fmuggled. flerling. therefore in are ufed. acknowBut the thoufand infignificant. and the far greater part of ledged. tho' manufcript. mines in the world. fterling. agree in making at whole annual importation . rate confumptlon of Birmingham alone. accounts. is The produce of it is the other mines which are in comparifon it is known. and fome no doubt. fometimes a little lefs. whole annual or 250.250. fterling. add to this fum an eighth more. the importation of the precious metals into both Spain and Portugal* amounts to about 6. all The whole the different annual confumption of gold and countries of the world filver where thofe metals may perhaps be nearly equal to the whole annual produce. this have been aflured. we may fafely. fterling. remains are The mines of America. Several I other very well authenticated. however. likewife annually imported into Cadiz at the and Lifbon.a62 THE NATURE AND CAUSES OF two millions however. The annual importation of the precious metals into Cadiz and is Liftjon. indeed. Some part is is fent annually by the Acapulco in the fome part employed contraband trade which the Spanifh nations . According to ihi« account.075. amount little an average to about fix millions fterling fometimes a more. The remainder may all be no more than fufficient to It fupply the increafing demand of thriving countries. acknowledged. their with theirs.

s fome\ raife 263 in the price of thofe metals the chap. The durablenefs of metals the foundation of this extraordinary fteadinefs of price. varies lefs from year to year than that of almoft any . gold and We do not. in different years The different mafles of corn which muft fupply the confumption of the world. all The all corn which was brought to market laft year. though liable to flow and gradual variations. The price of all metals. other part of the is rude even produce of land lefs liable to and the price of the precious metals fudden variations than that of is the coarfe ones. demand as fomewhat to . Why do fo ? fliould we and imagine that the precious metals are likely metals indeed. to the refpedtive will always be nearly in proportion produce of different thofe different years. will be or almoft confumed long before the end of this year. upon imagine that thofe coarfe metals are likely to multiply beyond the demand. 1 • European market. may be ftill in and perhaps fome part of the gold which was brought from two or three thoufand years ago. are put to as they are to The coarfe much harder ufes. The mine to quantity of the market filver. though harder. from the mine ufe. any more than they. or to become gradually cheaper and cheaper. it tv/o But fome part of the iron which was brought or three hundred years ago. however. but are liable too to be wafted. The precious metals. brafs is and iron annually brought from the all out of proportion greater than that of this account. A. of lefs value. are not neceflarily immortal loft. and confumed in a great variety of ways. lefs care is employed in their prefervation. will be very little affeQed by any accidental difference in the produce of the iron mines of thofe two years j and the proportion between the maffes . But the proportion between the maffes of iron which may be in ufe in two different years.THE WEALTH OF NATIONS. however.

therefore. upon the price of the one fpecies of commodities. more from thofe vari- year to year than that of the greater part of corn ations have not the fame efFe£l fields. for it. Variations in the Proportion hetnveen the refpe^ive Values of Gold and Silver. was fuppofed worth from ten laft twelve ounces of fine it About the middle of the century came to be regulated. an ounce of fine gold came to be fup- pofed worth between fourteen and fifteen ounces of fine filver filver. exceeded in fertility all thofe which had ever been known it the fertility of the filver mines had. between the proportions of one to fourteen . but funk more Though both the gold and filver mines of America before. the value of gold to fine filver was regulated in the different mints of to ten to be Europe. The gi'eat quantities of filver carried annually from Europe to India. In the mint of Calcutta. between the proportions of one that is. and one to fifteen that is.2&4^ THE NATURE AND CAUSES OF inafles BOOK of gold will be ftill lefs afFeded by any fuch difference in tbe produce of the gold mines. flill feems. or in the quantity of which was given than gold. BEFORE the difcovery of the mines of fine America. Though the produce of the greater ftill part of metallick mines. perhaps. Gold rofe in its nominal value. in feme of the Englifh ' fettlements. Both metals funk in their real value. gradually reduced .the value of that I metal in proportion to gold. . have. as upon that of the other. filver or in the quantity of labour which they could purchafe. varies. and one to twelve to an ounce of fine gold filver. been proportionably greater than that of the gold ones.

ounce of gold there filver. it in the »_ CHAP. according to as Mr. much Vol. neceflarily be the fame to as that between their quantities.. the quantities of thofe metals to the proportion of their values. fine G. that there are : commonly threefcore lambs for one ox and it would be jufl as abfurd to infer. the proportion of gold continues as one to ten. is The price of an p '' ox.. that there are commonly in the market only fourteen or fifteen ounces of filver for one ounce of gold. it and would therefore be as one twenty-two. it is probable. however. be as one to eight. flill In China. The is proportion between the quantities of gold and filver an- nually imported into Europe. about threefcore times the price of a Iamb. 6d. he feems to think. Meggens's account. one to twenty-two nearly. he fuppofes. for one are imported a more than twenty-twa ounces of which remain The great quantity of filver fent annually to the Eaft Indies. in Europe one to fourteen or fifteen. in tue fame manner Europe._f mint perhaps rated too high for the value which bears in the to filver market of Bengal.old is fiippofed as in to be worth It is ounces of fine filver. reckoned at ten guineas.THE WEALTH OF NATIONS. greater in proportion to that of gold. — . The Is quantity of filver commonly in the market. thaa the value of a certain L M nx . in the market to infer from thence. mufi. In Japan it is faid to. Calcutta. It would be abfurd. were not for this greater exportation of filver* But tities the ordinary proportion between the refpedive values of is two commodities not neceflarily the fame as that between the quan- of them which are commonly in the market. XI. that little is. z6s fifteen an ounce of . or one to twelve. reckoned at 3 s. reduces. becaufe fifteen an ounce of gold will commonly purchafe from fourteen to ounces of filver. the proportion of The proportion between their values.

In France. who has a of both. in the market. and gold a dear commodity. filver is a cheap. and . not only the quantity. of the cheap commodity muft commonly be greater in proportion to the whole quantity of the dear one. not only greater. not only a greater quantity of it. therefore. The whole quantity. In the Britifh coin. is In the coin of fome coun- tries the value of the two metals nearly equal. com- pare his own filver with his gold plate. that. indeed. of which the whole amount is feldom of great value. which. but a greater value of little than of gold. and he will probably find.266 THE NATURE AND CAUSES OF certain quantity of gold is BOOK to that of an equal quantity of to whole quantity of a cheap commodity brought market. but of greater value than the whole quantity of the whole quantity of butcher's-meat. than the value of a certain quantity of the dear one. When we compare the precious metals with one another. have a good who have no gold plate. is to the value of an equal quantity of the cheap one. and fuch like trinkets. * See Ruddiman's Preface to Anderfon's Diplomata. that. There are fo many more purchafer^ for the cheap than for the dear commodity. fnuff-boxes. but of greater value. than the whole quantity of wild fowl. The is commonly filver. In the Scotch coin. before the little. the largeft fiims are commonly paid in that Scotia?. latter. not only greater. but the value of the former greatly exceeds that of the deal of filver Many people. Let any man. &c. even with thofe who have it. is The whole . union with England. is generally confined to watch cafes. In the coin of many countries the filver preponderates. than the whole quantity of a dear one. quantity of bread annually brought to market. filver not only a greater quantity. butcher's-meat than the whole quantity of poultry and the whole quantity of poultry. the gold preponderated very did though it fomewhat *. but a greater value can commonly be difpofed of. as it appears by the accounts of the mint. metal. befides. the value of the gold preponderates greatly. therefore. that there ihould always be We ought naturally to expeil. but it is not fo in that of all countries. .

ftate and probably always another fenfe. loweft price which barely which replaces.. of the / ^ platp above that of the gold. part. commodity price affords nothing to the landlord. filver always has been. be. A commodity may be faid to be dear or cheap. but of which rent makes not any component itfelf which refolves altogether into wages and profit. with a moderate the (lock which thither. I. will much more than compenfate filver. in the prefent flate of the Spanifh market. than gold. is But. in general. to the loweft: the Spanifh market. or five per cent. ' carry about in your pocket. and it is 267 there difBcult to get more gold than what is neceffary to chap. or to In thefe taxes too. whole rent of the greater part of the gold and filver mines of Spanifii America and that upon gold is ftill worfe paid than that upon filver. the preponderancy of in the gold coin above the countries. filver whereas his tax upon ten per cent. filver The fuperior value. the prefent of the Spanifli marker. muft. perhaps. which takes place in all countries. as muft. in one fenfe will of the word. of Spanifti gold. not only according to its the abfolute greatnefs or fmallnefs of as that price to bring it ufual price.THE WEALTH OF NATIONS. is certainly fomewhat nearer to this o-old The tax of the King of Spain upon only one-twentieth part of the ftandard metal. gold much cheaper in yet in may. as they more rarely make a fortune. but according it is is more or lefs above the lowed for which poflible to is market for any confiderable time together. be faid'to be fomewhat cheaper than filver. in it The afi'ords both lefs rent and lefs profit. gold loweft price than filver. be ftill more price moderate than thofe of the undertakers of filver mines. which takes place only fome Though. therefore. however. has already been obferved. The profits of the undertakers of goU mines . * Mm 2 ^uce . be fomewhat nearer Vol. confifts the amounts to it one-tenth part of it. It is mud the be employed in bringing the. that This profit. too.

Spain upon the ftandard metal. the whole quanin of the one metal. would feem.^6^ price for THE NATURE AND CAUSES OF which it is poiTible to hring all it !t thither. carry on account of the greater depths and of fupplying them with ledged by every body is neceflary to on the works. neral market of the fame with the ancient tax of the King of filver It of Mexico and Peru . all That the mines of Spaniffi America. tity When expences arc computed. than the whole mafs of American filver. is flatc acknowof thofe who has enquired into the mines. be difpofed of fo advantageoufly as the whole quantity of the other. other mines. that any part of a tax. than the prlie ot' Spanifli filver. poffible to pay it. which Is not only impofed upon one of the moft proper fubje£ls of taxation. perhaps. q These . The tax. the SpaniHi mar- ket. in 1736 made in neceffary to reduce it from one-fifth it flill to one- may time as make it neceffiiry to reduce it further. but which affords fo very important a revenue. in the fame manner made neceflary to reduce the tax filver upon gold like to one-twentieth. is of the King of Portugal upon the gold of the Brazils. will ever be given up as long as it. be uncertain whether to the geat Europe the whole mafs of American gold comes it is a price nearer to the lowed for which poffible to bring it thither. and of the greater expence of drawing out the frefti air at water thofe depths. cr one-fifth part of ther may. The be fiill price of diamonds and other precious fiones may. it yet the fame impoffibility of paying it which tenth. a mere luxury and fiiperfluity. indeed. Though it Is not very probable. it is nearer to the lowefl price at which poffible to bring them to market. as the tax upon it is filver. than even the price of gold. become gradually at more expenfive which it in the working. therefore. cannot.

be compenfated alto. gether by proportionable increafe in the price of the metal Gondly. upon filver. muft certainly retard more or filver in the the- of the value of ftich European market. In confequence' of redudions. rife during the courfe of the prefent century. becaufe they could not afford tax . th« fads and arguments which have been ^ Mm 3 alledgedl . or. firft. than it would have. pay the old- and the quantity of annually brought to market muft always be fomewhat greater. and. begun to fomev/hat in the European market. In confequence of the redudion in 1736. These filver 269 fcarcity cauies. many mines maybe wrought which to filver could not he wrought before.. therefore. prevent altogether. the value of filver has. than it otherwife would have been.proportion to filver. thirdly. fo filver might rife in its price in proportion to labour the. ^'hkh are equivalent faid to to a growing fcarcer of beit) (for a commodity may be difficult grow when it comes more and expenfive to cnlledt a certain quantity of muft. and commodities. lower . ten per cent. and partly by the other of thofe two expedients. though they lefs. however. As gold rofe in its price in . notwithftanding this redudlon. it muft be compenfated partly by the one.. is. third event is This very pofTible. the value of any given quantity fomew-hat lefs. notwithftanding an equal diminution of Such may not rife fucceffive reductions of the tax. it or. tax. fe- muft be compensated altogether by a proportionable dimi- nution: of the tax upon filver . had the Court of Spain continued to > exaft the old tax* That. the value of filver in the European market.THE WEALTH OF NATIONS. though before that redudion. it may not at this day be lower than at leaft probably. notwithftanding a great diminution of the tax upon gold. been. produce one or other of the three following events. in time. The increafe of the espence muft either.

or whether the value continue to fall of filver may not in the European market. It is the which attrads them. they neceflarily ceafe to thither.270 THE NATURE AND CAUSES OF alledged above. difpofe BOOK ' me to believe. as the quantity with the increafe of wealth. that after all that has been faid. foflils poultry. has to no tendency to diminifh their value. deferves the can form upon this fubjedt name of belief. it may. The to rife. indeed. for the beft opinion which fcarce. for the Gold and filver naturally refort to a rich country. perhaps. and go as foon as that fupe- riority ceafes. and the popular notion of the precious metals naturally increafes fo their JL that. perhaps. not only whether this event has aflually taken place but whe- ther the contrary may ftill not have taken place. tity increafes. or becaufe a better price fuperiority of price Is given for them. or I more properly to fufpefl and V ' conjecture. tain. fame leafon not becaufe that all forts of luxuries and curiofities refort to it. If you except corn and fuch other vegetables as are raifed altogether by cattle. value ftill continues to European market and the flill gradually incrcafing price of many parts of the rude produce of land may confirm them ftill further in this opinion. which any country from the I increafe of wealth. perhaps. they are cheaper there than in poorer countries. game of kinds. Grounds of the Sujpicion that the value of Silver to decreafet * /till continues '" 1"^ HE increafe of the wealth of Europe. value diminifhes as their quan- may. fup- pofing there has been any. fall difpofe in the many people to belieye that their . That arifes in that Increafe in the quantity of the preciouS' metals. appear many people uncer. human induftry. have endeavoured fhow already. that all all other forts of rude produce. has hitherto been fo very fmall. but becaufe they are deafer. the ufeful and minerals of the .

the efFedl. or will purchafe more labour than their real price before. come to exchange for a greater quantity of filver than before. Different EffeSfs of the Progrefs of Improvement upon three different Sorts of rude Produce. but which rifes in is the progrefs of improvement. it which can multiply in proportion to the demand. not of any degradation of the but of the rife in their real price. 'T^HESE •* in the thofc different forts of rude produce may be divided into three claffes. the earth. but that fuch commodities have become really dearer. Though filver fuch commodities. The rife of their nominal price value of filver. The firfl comprehends thofe which it is fcarce power of human induftry to multiply at all. naturally 271 grow dearer as the fociety advances In wealth chap. It is not their nominal price only. I have endeavoured to fliow already. yet in the fame degree of improvement to fall. &c. therefore. price of the In the progrefs of wealth and improvement. The fecond. lefs. in multiplying this fort of rude produce. ccfsful. it will not from thence follow that has become really cheaper. The or third. \ and improvement. though it may rife greatly. not to be limited it by any That of the fecond. That of the third. and feems certain boundary. and fometimes more or according as different accidents render the efforts of human induflry. firft the real may rife to any degree of extravagance. or will purchafe lefs labour than before.THE WEALTH OF NATIONS. however. thofe in which the efficacy of induflry is either limited uncertain. may fometimes happen to rife even fometimes to continue the fame. though its natural tendency is to rife in the progrefs it of improvement. has. a certain boundary beyond which cannot well pafs for any confiderable time together. more or lefs fuc- Firfl .

or nearly the fame. was . The real value of was higher at Rome. woodcocks fhould become a- fo fafhionable as to fell for twenty guineas piece. Three feftertii. and feems not to be limited by any certain boundary. but of the high value of fuch rarities and curiofitles as human filver induftry could not multiply at pleafure. Thefe were not the of the low value of filver in thofe times. all birds of paffage in particular. it When of wealth and the luxury which accomfor thefe is increafe. while the competition to purchafe tinually increafing. and no fupply human it induftry may be able to increafe the much beyond what was before this increafe of the demand. prices in the time of their greatefl: in this effects grandeur. remaining the fame. This price. in certain quantities. as well many panies other things. at prefent. it is and which being impoffible to accumulate together the produce of many different feafons. it is The high price paid by the Romans. as- wild. their price them is con- may rife to any degree of extravaIf gance. no effort of human induftry could increafe the number of at prefent^ thofe brought to market. much beyond what fifhes. however.fowl. the effort demand likely to increafe with them. The quantity of fuch commodities.. about ^fixpence was the price which the republic paid for the modius the tithe or peck of wheat of Sicil)^. it for feme time before and after the fall of the republic. Such are the greater part of rare and fingular birds and almoft all many different forts of game. that which it is fcarce in the in power of things induftry to multiply at all. fifhes. It confifts thofe which nature produces only of a very perifliable nature. CAUSES OF The human firft fort of rude produce of which the price is rifes in the progrefs of improvement. for rare birds and may manner eafily be accounted for. than is through the greater part equal tO' of Europe fterling.272 THENATUREAND Fitji Sort. therefore.

ix. capitulation to pay for the furplus at the rate of four this is. 17. that Seius * bought a white nightingale. which in quality generally fells and for a lower price in the European market. N n What . therefore. Seius gave for the nightingale the fubfiftence. price. as a prefent for the emprefs Agrippina. therefore. value in the prefent. When the Romans. The three value of to its filver. 273 was probably below the average market wheat the obligation to CHAP. notlefs withftanding. f purchafed of eight thoufand equal to about fixty-fix pounds thirteen and four-pence of our prefent money. I. 13 . therefore. the quantity of labour and fubfiftence which their was given away nominal price is for them. Vol. in thofe antient times. as three to four inverfely. muft have been is. and had probably the ordinary been reckoned the moderate and reafonable. equal to about fifty pounds of our prefent a furmullet at the price money: and fhillings that Afinius Celer feftertii. is apt. that filver would then have purchafed the fame quantity of labour and commodities which four ounces will do at prefent. that or average contrail price of thofe times . order more corn than the tithe of wheat amounted they were bound by feftertii. would purchafe. command of s. of thofe how much foever it may furprife us. 29. late years Eight and twenty of fcarcity. prefent times and Afinius Celer gave for the furmullet the com- mand of a quantity equal to * Lib. what 881. at the price of fix thoufand feftertii. a quantity of labour and equal to what 661. it is equal to about one and fliillings the twenty fhillings the quarter. the extravagance prices. had occafion to. at this rate being confid^red as a tax upon the to farmers. or eight-pence fterling the 'peck. s. 4d. was about one-third more than apt to exprefs to us in the prefent times. would purchafe in the 9 jd. to appear to us about one-third than it really was. ounces of When we read in Pliny. X.THE WEALTH deliver their Sicilian OF NATIONS. Their real price. c. before the the ordinary contradl price inferior to the Sicilian. of Englifh wheat. c. 17 t Lib. is quarter was.

the quantity of thefe diminifliing. Romans had the difpofal. as in order to raife food for man. diminifhes the quantity of butcher's-mcat which the country naturally produces without labour or cultivation. Second Sort. as cultivation advances. gradually gets fo high as to render elfe them as profitable a produce as anyraife thing which human induftry can upon the moft it fertile and beft cultivated land.-74 THE NATURE AND CAUSES OF What much occafioned the extravagance of thofe high prices was. The extenfion of by diminifhing the quantity of wild pafture. When it has got fo high cannot well go higher. more land and more induftry would foon be employed to increafe their quantity. while at the ally increafing. that they are of or no value. During a long period is in the progrefs of improvement. beyond what was neceflary for their own ufe. It confifts plants and animals. in that which. If it did. the real quantity of larifes. and which. The tiply fecond fort of rude produce of which the price is rifes in the progrefs of improvement. for example. human induftry can in thofe mulufeful proportion to the demand. which. The quantity of filver.of thofe . are therefore forced to give place to fome more profitable produce. more corn land would foon be turned into pafture. it cannot well go higher. was a good deal lefs than what the command of the fame quantity of labour and fubfiftence would have procured to them in the prefent times. rifes fo high that it is as profitable to cultivate land in order to raife food for them. If it did. continually is fame time the demand for them continur- Their real value. tillage. When the price of cattle. in uncultivated countries. and by inaeafing the uumber. till at laft bour which they it will purchafe or command. therefore. as the abundance of labour and fubfiftence. of which they had the difpofal. not fo the BOOK abundance of of which thofe filver. nature prolittle duces with fuch profufe abundance.

perhaps. however. can be completely In all farms too diftant from any town to carry manure from N n 2 that . had not got to height in any part of Scotland before the union. their price muft be continually rifing. the price of corn. fcarce poflible. to have got to this height later about the beginning of the it laft century . itj capable of the higheft cultivation. In England. it ing them. in fome of which.THE WEALTH OF NATIONS. of The price of butcher's-meat. Had the Scotch cattle been always confined to the market in a country in of Scotland. may is. that of firft rifes which the height. have either corn. fo is what can be applied to other purpofes. to the fame thing. indeed. which is it can be applied to no other purpofe but the feeding of great in proportion to cattle. fcarce yet Of all the different fubftances.yet got to this height. that their price could ever have rifen fo high as to render it profitable to cultivate land for the fake of feedcattle. far extended as to and till it has got to this height. perhaps. which the quantity of land. has got to this height. fome parts of Europe It in which the price of this cattle has not . it feems fcarce poiFible that the greater part. in the neighbourhood of London. got to it through the greater part of the it remoter counties got to it. price. feems. mull gradually gets high that becomes as profitable. the country is advancing at all. which com- pofe this fecond fort of rude produce. the price of has already been obferved. cattle perhaps. fo and confequently it cattle. rife till it therefore. ^ even of thofe lands which are cultivated. thofe "«\-ho 27. to employ the moft fertile and befl: cultivated lands in it raifing food for late in them as in railing corn. But muft always be fo the progrefs raife of improvement before tillage can be the price of cattle to this height if . to or. perhaps. give in exchange increafes the de- manJ. to this Till the price of cattle. but it was much have probably before . in the progrefs of improvement. There are. what comes for it.

therefore. BOOK in the far greater part of thofe of every extenfive country. circumftances. that price will be it ftill lefs fufficient to pay for that produce when muft be colleded with a good deal of In thefe ini additional labour. therefore. be- caufe to colledl the fcanty and fcattered produce of wafte and un- improved lands would require too much labour and be too exIf the price of the cattle. keep alive a few ftraggling. The reft will. afford to pafture them upon It is and he can ftill lefs afford to feed them in the flable. when they are allowed to pafture it. neighbourhood of the farm-yard. no more cattle can. it. will be kept fit for to tillage. half-ftarved cattle the farm. be fed the ftable than what are neceifary for tillage. though its much com- underftocked in proportion to what would be necelTary for plete cultivation. is not fufficient to penfive. with profit. it will naturally be re- ferved for the lands to which can be moft advantageoufly or in the conveniently applied . conftantly in good condition and Thefe. What they afford being infufficient for the whole farm. juft fufficient to . being very frequently overHocked in proportion to its . pay for the produce of improved and cultivated land. the moft fertile. therefore. or thofe. and from thence carrying out cattle their dung it. and this again muft be in proportion to the ftock of cattle which are maintained cattle upon it. be allowed He wafte. The to is manured either by pafturing the upon or by feeding them in the ftable. perhaps. the quantity of well-cultivated land muft be in proportion to the quantity of manure which the farm land itfelf produces . with the produce of improved and cattle cultivated land only. and brought into the ftable to them. that can be fed in the ftable. afford all But thefe can never manure enough for keeping conftantly in good condition^ the lands which' they are capable of cultivating. the greater part of them. producing fcarce any thing but fome miferable pafture.276 THE NATURE AND CAUSES OF xh^it is. But unlefs the price of the and profit be fufficient to pay both the rent of cultivated land. the farmer cannot it .

A portion of this wafte land. could produce but in comparifon of what it may be capable of producing. to their not having yet had time to acquire a ftock of cattle fiifiicient to cultivate rife their lands it it more completely. But how difadvantageous foever this fyftem may rife appear. and. rendering more for them to ac- quire it. notwith— Uuder this fyftem of management. almoft unavoidit ftill notwithftanding a great in their price. oats. no doubt. feldom exceeded a. .THE WEALTH OF NATIONS. yet before the union it the low price of cattle feems to have rendered able. the fame difficult of price which would render advantageous for them to main- tain a greater ftock. all Such accordingly was the general fyftem of management Scotland the union. properly. after this having been paftured in together. however. and fometimes did not fiantly well manured and amount to a fifth or a fixth part of it. owing in many places. Its 277 adual produce. as mufl: be refted and paftured again to before. a poor crop or two of bad of feme other coarfe grain. to their not having yet had time to put their lands in condition to maintain this greater ftock it. or it when it will yield. nured. in over the low country of The lands which were kept con- good condition. to ignorance and attachment to eld cuftoms. third or a fourth part of the whole farm. If. the poverty of the tenants. fecondly. but a certain portion of them was in ftanding. perhaps. conit is tinues to prevail through a confiderable part of the country. The reft its were never maturn. being entirely exhaufted. land which is it is evident. acquiring The increafe of ftock.. and then. and another portion ploughed up be in the fame manner exhaufted and before refted again in its turn. fuppofing they were capable of. but in moft places to the unavoidable obftrudions to which the natural courfe of things oppofes fpeedy eftablifliment of a better fyftem: the immediate or to firft. wretched manner for fix or feven years may be ploughed up. even that part of the lands of Scotlittle capable of good cultivation. regularly cultivated and exhaufted.

which years be applied to no other purpofe but the feed- ing of foon renders them is extremely abundant. Though there. which Scotland has derived from the union with England. Without forae increafc of (lock. wild in the woods without any owner It thinking worth while to claim them. -country. profitable to feed cattle upon the produce of the cultivated The fame proportion caufes. they foon multifo little much it and became of value. muft pafs away before the old fyftem. eftates. there can be fcarce any improvement of of flock but land.-278 THE NATURE AND CAUSES OF flock and the BOOK improvement of land are two events which muft go hand in hand. are likely to introduce there a fyftem. perhaps. the greateft. and the land which is deftined to cultivate. colonies the great quantity of wafte land. and of which the one can no where much out-run the other. all the cattle of the European colonies in carried America were originally plied fo from Europe. been the principal caufe of the improvement of the low In all ^an far new many cattle. that even horfes were allowed to run. cannot be re- tnoved but by a long courfe of frugality and induftry . but there can be no confiderable increafe in confequence of a confiderable improvement of land it. muft be a long time it after the firft eftablifhmeut of fuch colonies before can become land. It this rife in the price of all cattle is. therefore. however. and the difemployed in cultivation. and half a century or a century more. perhaps. perhaps. of hufljandry not unlike that which ftill continues to take . can be completely aboliflied through the different parts of the country. Of all commercial advantages. which all is wearing out gradually. has not only raifed the value of highland but it has. and in every thing great cheapnefs the neceffary confequence of great abundance. between the ftock it want of manure. becaufe otherwife the land could not maintain Thefe natural obftrudions to the eftabliihment of a better fyftem.

in the progrefs of improvement" it before cattle can biing fuch a price as to render profitable tot.to rife three or four A piece of ground which. and . and which ed through the greater part of the nowfo much mendlow country. in his opinion. obferves. cropping. he fays . many parts of Scotland. fettled they ufed to grow high. p. which de- generated fenfibly from one generation probably not unlike that ftunted breed They were which was common all over. rot fo much by a. have maintained four. The poornsfs of the pafture had. former times. The annual there. iau Though it is late. take place In fo traveller. that he can with difhculty difcover there nation. when he wrote. accordingly. he was affured.^ t Kalm's travels. 343. proceed Their cattle are allowed to wander through the vs^ooda .. for their corn fields. vol. . the heft natural graffes in that part of North firft America and when the Europeans very thick. Kalm. therefore. they and cultivate and when that is exhaufted. 344. They make fcarce any manure but when one piece of ground has clear been exhaufted by continual another piece of frefh land to a third. as it in 1749. as by a more plentiful method of feeding them. before they had time to or to fhed their flowers. each of which would have given four times the quantity of milk. could not maintain one cow. occafioned the degradation of their cattle. them feems. Scotland thirty or forty years ago. fo the charadler of the Englifh well (killed in all the different branches of agriculture. though that expedient has been employed fome places. and other uncultivated grounds. which would in that one was capable of giving.". too early in the fpring. feet graffes were. the Swedlfh ^ ^^A he found when he gives an account of the hufbandry of feme of the Englifli colonies in North America. is change of the breed. Mr. where they are half ftarved ving long ago extirpated almoft all ha- the annual graffes by cropping form their it . cultivatfti . to another.. i. 279J P. feeds f.THE WEALTH OF NATIONS.

in the courfe of which many their highefl: other price. the feeding of deer of would foon become an article common farming . lean In the country. height the price of fo neceflary an article as to it the price and that which brings is of fuch a fuperflulty as venifon. If venifon continues in fafhion. If it was otherwife. fo perhaps venifon Is among it the laft parts of this fort of rude produce which bring this price. according to diiferent circum- ftances. is is not near fuflicient to compenfate the expence of a deer well park. price of venifon in Great Britain. how who extravagant foever The may appear. and the wealth Britain increafe as they have done for and luxury of Great time paft. in the fame manner as the feeding of thofe fmall birds called Turdi was among it the antient Romans. it which bring this price they bring feems impoifible that improvement can be brought near even it to that degree of perfedion to which has arrived in many parts of Europe. * Thefe. Thus In every farm the offals of the barn and ftables will maintain a certain number of poultry. Between brings to its that period In the progrefs of improvement which cattle. as they are fed with . As cattle are among the firft. they becaufe till are perhaps the it. its price fome is may very probably rife ftlU higher than it at prefent. birds of paf- which arrive. Varro and Columella affure us that was a fome moft profitable fage article. as known to all thofe have had any experience in the feeding of deer.2§o ^THE ferent parts NATURE AND CAUSES the fake of feeding this fecond OU all cultivate land fdr them fort . The fattening of Ortolans. . there a very long interval. forts of rude produce gradually arrive at fome fooner and fome later. is faid to be fo in parts of France. yet of the dif- which compofe firfl of rude produce.

Almoft all that he gets pure gain. In the progrefs of improvement. with what would otherwife be loft. But the whole quantity of poultry. I. in confequence of vation. they are often as cheap as butcher's-meat. and profitable to encourage the corn and farmer to raife a confiderable quantity of Indian buck wheat for this purpofe. till at laft it gets fo high that it becomes pi-ofitable it to cul- tivate land this height. and their price can fcarce be fo low as to difcourage ill him from feed- ing this number. is with only nearly equal merit. always preferred to what therefore. the poultry. confidered as a very important article fufficiently ceconomy. which are thus raifed without expence. XI. but thinly inhabited. fort which every particular cultivating land of animal food is deareft. in in yard. England than in France. more land would foon be turned to this purpofe. In this of things. - 381 are a fo mere fave-all . For fome time before Vol. he can afford is them for very little. A middling farmer will there fometimes his have four hundred fowls importance in England. and. the feeding of poultry in rural is In feveral provinces of France. therefore. practice of it. But in countries cultivated. the price of poultry gradually rifes above that of butcher's meat. for the fake of feeding it them. and as to fell chap. they coft the farmer fcarce any thmg. mufl: na- turally be that which immediately precedes the general for the fake of raifing . As wealth and luxury improvement and culti- increafe. which the farm in this manner produces whole it. England receives confiderable fupthe period plies at from France. The feeding of poultry fo feems fcarce yet to be gen-erally confidered as a matter of much dearer They as are certainly. therefore. without expence. O o .THE WEALTH OF NATIONS. however. If it When did. are often fully fufficient ftate to fupply the whole demand. common. muft always be is much reared fmaller than the quantity of butcher's-meat which upon and in times of wealth and luxury what is is rare. or any other fort of animal food. has got to cannot well go higher.

beef. carrots. The .meat the London market fomewhat below what the lafl was about the beginning of century. as the nature to of the country. raife the price. and the ftate of its happen render the feeding of hogs more or other cattle. according agriculture. things rejedled by every other ufeful animal. is lefs expenfive than that of In France. fell that to The plenty not only obliges him cheaper. the price neceffarlly rifes. like poultry. has in contributed to fmk the common price of it butcher's. As long as the number of fuch is ani^ fully mals. demand. the plenty would not be of long continuance. &c. OF feed- BOOK the fcarcity muft neceflarilj After it has become general. cabbages. But when the it demand rifes beyond what the fame quantity can fupply. which enable the farmer to raife upon the fame quantity of ground a much greater quantity of particular fort of animal food. that finds his food among ordure. and becomes propor- tionably either higher or lower than that of other butcher's-meat. new methods of ing are commonly fallen upon. when becomes neceffary to in food on purpofe for feeding and as for feeding fattening hogs. originally kept as a fave-all. for if he could not afford It it.282 THE NATURE AND CAUSES before this pradice becomes general. The many hog. and greedily devours is. this fort of butcher's-meat comes market at a much lower raife price than this any other. the price of pork equal that of In moft parts of Great Britain is at prefent fomewhat higher. turnips. which can thus be reared at fufEcient to fupply the to little or no expence. but in confequence of thefe improvements he can afford fell to cheaper . has been probably in this manner that the introdudlion of clover. Buffon. manner and fatten- ing other cattle. nearly it according to to Mr.

in the progrefs of improvement* rifen to the muft any rate . is But ot all the milk perhaps the moft periftiable. The great rife in 083 C H A X la P. little offals very little. the quantity of this is of provifions which thus produced at little or no expence. than it would otherwife have of land can commonly at the pooreft family can often maintain a cat or a dog. produce more milk than either the rearing of their own young. By diminifliing the number of fort thofe fmall occupiers. it than it would otherwife have Sooner or at later. the price both of hogs and poultry has in Great Britain been frequently imputed to the diminution of the number of which has cottagers and other fmall occupiers of land. when it is moft abundant. originally carried on as a fave-all. the one particular feafon. muft certainly have been a good deal diminiftied. and butter-milk. and they find the reft in the neighbouring fields without doing any fenfible damage to any body. fo the pooreft occupiers without any expence.THE WEALTH OF NATIONS. have or utmoft height to which it is capable of rifing to the price which pays the labour and expence of cultivating the land which furniflies them with food as well as thefe are paid upon the greater part of other cultivated land. an event in every part of Europe been the immediate fore-runner but which at of improvement and better cultivation. fkimmed milk. or the confumption of the farmer's family requires. In warm feafon. The is bufinefs of the dairy^ like the feeding of hogs and poultry. both fafter fomewhat fooner and fomewhat rifen. time the fame may have As contributed to ralfe the price of thofe articles. The of their own table. or a fow and a few pigs. their whey. and their fafter price muft confequently have been raifed both fooner and rifen. fupply thofe animals with a part of their food. The cattle neceflarily kept upon the farm. it will fcarce keep four O o 2 . however. maintain a few poultry. therefore. at and they produce moft prcdudlions of land.

care.284 THE NATURE AND CAUSES four and twenty hours. and to will fcarce perhaps think it worth while it. have a particular room or building on purpofe for fufFer but filth. in confequence of the improvement of the country. in this where much good land If it commonly employed manner. it has got to this height. for a ftores a fmall part by making it into frefh week by making it into : butter. feems not yet to have got to this height any where in Scotland. 4 . It If it more land would foon be turned to this feems to have got height is through the greater part of England. he will be likely to manage his dairy in a very flovenly and dirty manner. that of the produce of the that of butcher's- which the price naturally conneQs with the meat. and as the cafe raife of many of them ftill. of raife. and which can thither If it low as to difcourage him from fending whatis ever is over and above the ufe of his own family. and cleanlinefs. and the quality of The price at laft gets fo high that it fertile becomes worth while to employ fome of the moft and heft cultivated lands in feeding cattle merely for the purpofe of the dairy. The fame caufes which gradually the price of butcher's-meat. attention. butter. and all naftinefs of his own kitchen. dairy. the increafe of the demand. in the fame manner. and. where . fait OF BOOK The of it farmer. it cannot well go higher. will the bufmefs to be carried on amidft the fmoke. The The increafe of price pays for more labour. to this purpofe. dairy beIts comes more worthy of the farmer's produce gradually improves. indeed. you except the neighbourhood of a few confiderable towns. as was the cafe of almofl: the farmers dairies in Scotland thirty is or forty years ago. and when did. in order to find the bell price fcarce be fo which to be had. for a year : and by making it into cheefe. is The goes to market. very low. he ftores is a much greater part of it for feveral years. Part of reft all thefe referved for the ufe of his own family. or with expence of feeding cattle. the diminution of the quantity which can be fed at little or no expence.

it is probable. Through the greater part of Engis notwithftanding the fuperiority of price. be difpofed of at a much better price . fecondly. In order to do fufEcient. firft. inferiority of the quality. the produce. would not pay the expence of the land and labour neceffary for pro- ducing a much better land. can ever be completely cultivated and improved. or the fattening of cattle. the greater part of what brought to market could not. which induftry is obliged to raife upon them. Englifh dairies. riority indeed. other words. The The But price of though probably it has rifen very confiderably within thefe too few years. and the prefent price. quality. where common farmers feldom employ much good land food for cattle merely for the purpofe of the dairy. rather the effedl of this lownefs of it. is compared with that of the produce of this fully equal to that of the price. is ftill low to admit of it. in. the dairy not reckoned a more profitable employment of land than the raifing of corn. price than the caufe of Though is the quality was much I better. in the prefent circumftances of the country. to replace with the ordinary profits the ftock which- he employs about This rife in the price of each particular produce. the price of each particular produce muft be to pay the rent of good corn land. it cannot yet be fo profitable. cultivated and. appre- hend. or. has got fo high as pay for the expence of complete improvement and this. The human to lands of no country. Through even the greater part of Scotland. to pay the labour and expence of the farmer as well as they are commonly paid upon good corn it. Gain is the end . in ralfing ^285 C HA P. as it is that which regulates the rent of the greater part of other land . is. therefore. infe- of quality perhaps.THE WEALTH OF NATIONS. the two great objeds of agriculture. muft evidently be previous to the improvement and cultiTation of the land which ' is deftined for raifing it. once the price of every produce. land . cultivation. till it is evident.

There . But the neceffary confequence of improving land forthe fake of a pro- duce of which the price could never bring back the expence. the greateft of all publick advantages. in augmenting the quantity. according forts of as different accidents happen to render the ef- human induftry more or lefs fuccefsful in augmenting the quantity. yet. but of a rife in their real price. not only a greater quantity of filver. and fome- more or the fame period. They have but a greater cofts a greater become worth. that in which the is of human induftry. price of all thofe different of rude produce has been the not of any degradation in the value of filver. quantity of labour and fubfiftence than before. This forts rife too in the nominal or money effedl. the complete improvement and cultivation of the country be. they reprefent or are equivalent to a greater quantity. fomctimes to continue the fame times to rife in very different periods lefs in of improvement. either limited or uncertain. fo when they are brought thither. Though the real price of this fort of rude rife in produce. The efficacy third and laft fort of rude produce. and nothing could deferve name of muft be which lofs was to be the neceffary confequence. it If as moft certainly is. therefore. this rife in the price of all thofe different forts of rude produce.286 THE NATURE AND CAUSES end of all OF that lofs BOOK improvement. it may happen fometimes even to fall. inftead of being confidered as a publick calamity. of which the price is naturally rifes in the progrefs of improvement. Third Sort. naturally tends to the progrefs of improve- ment. As it quantity of labour and fubfiftence to bring them to markec. ought to be regarded as the neceffary fore-runner and attendant of the greateft of all publick advantages.

diftant countries. I believe. narrow bounds is as that for the But the extent of their refpedive markets commonly ex- tremely different. caufes. flaould have the fame effedl. They can eafily be tranfported to wool without any preparation. if in the rude beginnings of improvement the market for the as latter commodities was confined within former. is in the rude beginnings of improvement very feldom confined to the country which produces them. America indeed. and as they are the materials of many manufadure8» the induftry of other countries may occafion a demand for them. again neceffarily deter* mine this number. probably would be fo. The market for wool and raw hides. though . carry on a confiderable they are.THE WEALTH OF NATIONS. in the progrefs of improvement. There are 287 fome forts of rude produce which nature has renr . and the nature of its agriculture. upon the prices of wool and raw hides. The market for butcher's-meat is almofl every where confined to the country which produces it. The of its im- provement. CHAP. or which export any confiderable part of their butcher's-meat. the trade in fait provifions but only countries in the commercial world which to other countries do fo. and fome part of Britifh . for example. it bei:hought. and raife It them too nearly in the fame proportion. gra^ dually raife the price of butcher's-meat. afford. and raw hides with very little . on the contrary. The quantity of wool or of raw hides. Ireland. f The may fame which. forts is . fo that the quantity of neceilarily limited by that of the other. or- dered a kind of appendages to other the one which any country can afford. is which any country can of great and fmall neceffarily limited by the number ftate cattle that are kept in it.

and therefore but thinly inhabited. carcafe. than in countries where. the price of the wool and the hide bears always a much greater proportion to that of the whole beaft. BOOK In countries ill cultivated. im- provement and population being further advanced. Mr. the of the carcafe whole be beaft neceflarily rifes. that in the the fleece was eftimated this at two-fifths of the value of the its whole fheep. while it This too ufed to happen almoft conftantly was infefted by the Buccaneers. of fociety confined always neceffarily be country which produces to muft extended in proportion the improvement and . and populoufnefs of the French plantations (which now extend round the coaft of almoft the whole weftern half of the ifland) had given fome value to the cattle of the Spaniards. yet the price this rife to wool and the ftate much more affedted by The market for the hide. to the than that of the being in the rude it. not only the eaftern part of the coaft. for butcher's-meat. who ftlll continue to poffefs. If this fometimes Chili. I have been affrequently killed merely for the fake 6f the fleece carcafe is and the tallow. but the whole inland and mountainous part of the country. The often left to rot upon the ground. Hume obferves. and that prefent eftimation. at or to be devoured by beafts and birds of prey. fured. there is more Saxoa demand times. happens even in Spain.288 THE NATURE AND CAUSES OF though that of the country which produces them might not occafion any. and horned many other parts of Spanifh America. in Hifpaniola. in it happens almoft conftantly in Buenos Ayres. the fheep is was much above the proportion of In fome provinces of Spain. improvement. and before the fettlement. where the cattle are almoft conftantly killed merely for the fake of the hide and the tallow. Though price of the is likely in the progrefs of improvement and population.

THE WEALTH OF NATIONS. proportion. P p price . brought much nearer growth than before might at leaft and the price of thofe materials be increafed by what had ufually been the expence of tranfporting them to diftant countries. and population of that country. as before. in confequence of them. 6. may remain the fame or very It improvements. or about 1339) what was reckoned the moderate and reafonable price of the tod or twenty. 176. fomewhat. in the natural courfe of things rather upon the whole be fomewhat extended efpecially. Vol. to rife ought naturally fall. would the place of at leaft be . There are many authentick records which demonftrate that during the reign of that prince (towards the middle of the fourteenth century. equal In the prefent to about thirty fhillings of our prefent times. rife Though it might not it therefore in the fame proportion as that of butcher's-meat.eight pounds of Englifti wool fhillings of the was not lefs than ten money of thofe times *. and it ought certainly not to In England. ii. ounces of filver Tower-weight. r. of which thofe commodities are the materials. however. and twenty ftiillings the tod c. the fhould ever come market. one money. may be 'reckoned a good alfo. notwithftandlng the flourifhing its ftate of woollen manufacture. though it might to not be much enlarged. to flourifh in the country. containing. however. and 75 c. But the market for the wool and the hides even of a barbarous country often extending to the whole commercial world. at the rate of fix twenty-pence the ounce. the price of English wool has fallen very confiderably fmce the time of Edward III. vol. 5. If the manufadlures. * See Smith's Memoirs of Wool. i. vol. fhould. It can very feldom be enlarged in the fame The ftate of the whole commercial world can feldom particular country be much affected by the improvement of any afier fuch and the market for fuch commodities nearly the fame.

and to are. good Engliih wool. ftiU greater.o THE NATURE AND CAUSES OF price for very BOOK 1. quently twice the quantity of labour. Secondly. where the wool of it. therefore. As manu- fadures too of Ireland are fully as ent with juflice and fair dealing. The money-price was to its its real of wool. I HAVE .. money-price in the price prefent times as ten to feven. inflead of being fomewhat ex-» tended in confequence of the improvement of England. At the fiiillings rate of twenty-eight fnillings the quarter. ter. of the permiffion of importing from all other countries duty free. the only market they are allowed. of the prohibition of exporting it from Ireland. confined to the is has been home market. Thirdly. could never have happened in confequence of the natural courfe of It has accordingly been the effect of violence and artifice :. obliged to fend a greater proportion of Great Britain. the market for Englifh wool. or as two to one. In confequence of thefe regulato any other country but England. therefore. in the prefent times the price of fix The proportion between the real prices of ancient is and modern times. is one and twenty bufhels only. This things. Firft. In thofe antient times a tod of wool would have purchafed twice the and confequantity of fubfiftence which it will purchafe at prefent . tions. of the abfolute prohibition of exporting wool from England it . The fuperioriiy of was At the rate of fix {hillings and eight-pence the quartimes the price of twelve ten fiiillings was in thole antient bufhels of wheat. degradation both in the real and nominal value of wool. in the time of Edward III. if the real recompence of labour had been the fame in both periods.2c. as twelve to fix. all other countries allowed to come into competition with is and where that of the woollen Ireland forced into competition with it. therefore. fmall part of their much difcouraged as is confifl- the Irifh can work up but a own wool at it home.

which at this moment (February. five ox hides at twelve fhillings five cow hides at feven (hillings old at nine and fliil- three-pence lings. 4d. therefore. would in the prefent times cofl: 51 s. however. upon . we cannot fuppofe that they were of a very large flone of fixteen fize. Though its nominal price. at three and fix-pence the bufhel. In 1425. than at prefent. Wool was comits monly But paid as a fubfidy to the king. that particular occafion viz. is it v^'^as higher in the prefent than in thofe ancient times. -I^ths account valued at the fame quantity of Its as of our prefent money. when the cattle were half flarved during the greater part of the winter. In thofe antient times. I 291 HAVE not been able to find any fuch authentlck records con- cerning the price of raw hides in antient times. thirty-fix flieeps (kins of two years fixteen calves fkins at two fhillings. Jeaft at as it v^^as ftated. An ox hide.THE WEALTH OF NATIONS. . therefore. fuch a hide would at prefent fhillings. therefore. v>'ould in thofe times have purchafed as corn as ten fhillings and three-pence would Its purchafe at prefent. real value was equal to ten fliillings and three pence of our prefent money. from an account 1425. the quarter. filver was in 4s. : Burcefter Oxford and one of his canons. An is ox hide which weighs four pounds averdupois. and leafl: its valuation in that fubfidy afcertains. between the prior of gives us their price. at this in fome degree. which. and in not in the prefent times reckoned a bad one.pence twelve fhillings would in thofe times have purchafed fourteen bufhels and four-fifths of a bufhel of wheat. at half a But crown the ftone. hides. thofe ancient times would probably have been reckoned a very good one. 1773) I underfiand to be the coft only ten common price. its real P p 2 price. what was ordinary price. nominal price was a good deal lower rate But at the of fix fhillings and eight. . An ox much hide. twelve fhil- lings contained about the fhillings this fame quantity of filver as four and twenty of our prefent money. Fleet- feems not to have been the cafe with in raw wood.

as was the which cafe in Scotland twenty or thirty years ago. and necelTarily for a lower price. for. Our tanners befides have not been quite fo fuccefsful as our clothiers in con- vincing the wifdora of the nation that the fafety of the commonwealth . In countries where the price very low. it will purchafe or hides. which was done in 1769. are generally killed very It young . It muft have fome tendency it to fmk their and It to raife in an improved and manuto fa£luring country. but obliged to export them. owing probably Ireland and to the taking off the duty upon to the allowing. the real quantity is of fubfiftence which lower. hides. feal flcins.292 THE NATURE AND CAUSES OF price. and comparatively to raife that of thofe produced in a country which does manufacture them. which are not intended to be reared in order to keep up the flock. fuffers more by keeping. the calves. therefore. are commonly good for The than it price of raw hides and Is a good deal lower at prefent was a few years ago. as command. their price would not pay little. for a limited time. ox That of fheep greatly below a good deal above They had of cattle is probably been fold with the wool. on the contrary. that of rather fomewhat is The is price of cow ftated in the above account. fells A faked hide is reckoned inferior to a frefh one. price in a barbarous. nearly in the fkins common That of proportion to it. their real price has probably been fomewhat higher than it was it in thofe ancient times. This clrcumftance muft have fome ten- dency to fink the price of raw hides produced in a country which is does not manufadure them. The nature of the commodity renders not quite fo proper for being tranfIt ported to diftant markets as wool. Take prefent century at an average. faves the milk. the importation of raw hides from from the plantations the whole of the duty free. Their fkins. muft have had fome tendency therefore to raife it fmk it in ancient. calves fkins. and in modern times. is it.

has been fubjefted to a duty and though this duty has been taken off from (for the limited thofe of Ireland and the plantations time of five years only) yet Ireland has not been confined to the market of Great Britain for the fale of its furplus hides. muft be 'paid by the carcafe. 293 CHAP. or of thofe which are not manufadlured at home. cattle. therefore. in an. muft. Whatever regulations tend to fink the price either of wool it or of raw hides below what naturally would be. would be quite otherwife. muft be profit fufficlent to pay the rent which the landlord. intereft as and farmers cannot be much alfeded by fuch regulatheir intereft as It though confumers may. and the expe£l from improved which the farmer has reafon to land. this the more muft be paid for the other. The lefs there is paid for the one. indifferent to the landlords and farmers.meat. " They have fance accordhigly been indeed. provided it is all paid to them. in an unimproved . is to In what manner is price be divided upon the different parts of the beaft. however. commerce of Ireland been in this cafe opprefTed hitherto in order to fupport the manufadlures of Great Britain. and declared a nuicountries but their importation from foreign . have fome tendency price of butcher's.THE WEALTH OF NATIONS. is Whatever part of this price. The exportation ' . by the rife in the price of provifions. therefore. they will foon ceafe to feed them. and cultivated If it is not. improved and cultivated country. : been prohibited. of raw hides has. The hides of common cattle have but within thefe few years been put dities among the enumerated to the commomother which the plantations can fend nowhere but neither has the country. not paid by the wool and the hide. landlords tions. wealth depends upon the profperity of their particular manufacture. to raife the The price both of the great and fmall which are fed on improved and cultivated land. much lefs favoured. their In an improved and cultivated country.

The the price of the wool and the hide. ftill butcher's-meat would come to The fame quantity of The demand for it market.294 THE NATURE AND CAUSES tinimproved and uncultivated country. Its price. The value of the greater part of the lands in the fouthern counties of Scotland. but by reducing the price of the mofl: important fpecies of fmall cattle. would. * As . was the principal produce. The wool of Scotland fell very confiderably in its price in confe- <juence of the union with England. but very afcribed to Edward III. and farmers would in this cafe be very deeply affeded by fuch regulations. of the greater part of the lands of the country. the fame number would continue to be fed. The whole price of cattle would and along with cattle it both the rent and the profit of all thofe lands of which that is. and where the wool and the hide made the principal part of Their interefl as landlords the value of thofe cattle. in the then circumftances of the country. would be fall. would have been very deeply affeded by rife this event. would be no greater than the fame as before. The perpetual prohibition of the exportation falfely. carcafe . OF BOOK where the greater part of the lands could be applied to no other purpofe but the feeding of cattle. before. it would have retarded very much its fubfequent improvement. It would not only have reduced the adlual value of the greater part of the lands of the kingdom. which are chiefly a fheep country. and fall in their interefl: as confumers very little. therefore. and confined to narrow one of Great Britain. of wool which is commonly. would not in this cafe raife the price of the becaufe the greater part of the lands of the country being to applicable no other purpofe but the feeding of ftill cattle. have been the moft deftrudive regulation which could well have been thought of. had not the in the price of butcher's-meat fully compenfated the fall in the price of wool. by which it was excluded from the the great market of Europe.

gether independent of domeftic induftry.THE WEALTH OF NATIONS. In multiplying another very important quantity of filh fort of rude produce. comes thoufand ton of fiffi. in increafing the quantity is CHAP. limited by the local fituation of the country. A market which from requiring only one thoufand. As the either of efficacy ^9S of human induilry. fo they neceffarily render tlie efficacy of its efforts more or lefs uncertain. they do not manufadlure and upon the reflraints which they may or may not think proper to impofe upon the exportation as they are alto- of this fort of rude produce. It is is likewife both limited and uncertain.cacy of human induftry is not only limited. not much upon the quantity which they produce. lakes rivers. but uncertain. therefore. fo far as it it depends upon uncertain fo It fo the produce of the country where far as it is exerted . as . to But it will generally be impoffible fupply the great and extended quantity of labour greater than in quifite for fupplying the market without employing a proportion to what had been re narrow and confined one. wool or of raw hides. what is the fame thing. As population increafes. The fifh muft generally be fought for a greater . as the annual produce of the land and labour of the country grows- greater and greater. and by what and may be called the or barrennefs of thofe feas. as to this fort of rude produce. there come to be more buyers of fifh. In multiplying this fort of rude produce. Thefe circumfiances. fo it is depends upon fo t!ic produce of other countries. the it that is brought to market. far de- pends. limited. or. by the proximity or diftance of fea^ its different provinces from the by the number of fertility its lakes and rivers. to buy with. and thofe buyers too have a greater quantity and variety of other goods. upon that which. to require annually ten can feldom be fupplied without employing' more than ten times the quantity of labour which had before been at fufficient to fupply it. the eff. the price of a greater quantity and variety of other goods.

is fo. The as quantity of the precious metals which is is to be found in any country the not limited by any thing in or barrennefs of in its its local fituation. fuch fertility own mines. but to be altogether uncertain. than upon the as of Its wealth and inthe duftry . the efficacy of human induftry feems not to be limited. I believe. In increafing the quantity of the different minerals and metals v/hich are drawn from the bowels of the earth. country. upon its the of its induftry. the general efficacy of induftry in bringing a certain quantity of fifli to market. the local fituation of the country being fuppofed. upon the annual produce of it land and la- bour. upon this account it may in different countries be fame in very different periods of improvement.296 THE NATURE AND CAUSES OF greater diftance. and local no doubt. or of feveral is years together. its connexion with the this fort of improvement I uncertain. larger veflels muft be employed. yet. firft. it certain enough . Thofe metals 1 heir frequently abound countries which poftefs no mines. It in the progrefs of improve- has accordingly done fo. and five BOOK more expenof this machinery of every kind made ufe rifes of. and it is of of uncertainty that am here fpeaklng. therefore. may perhaps be thought. taking the courfe it of a year. naturally ment. upon the ftate fituation of the country. As depends more. that of the more precious ones particularly. and very different ftate in the is fame period . however. upon its power of purchafing. The real price commodity. in confequence of which 5 can afford to employ a greater o^ . more or lefs in every Though the fuccefs of a particular day's fifhing may be a very uncertain matter. quantity in every particular country feems to depend upon two different circumftances ftate . it.

in bringing or purchafing fuch fuperfluities as gold and either from its own any mines or from thofe of other countries fertility and. than countries which have lels to fpare. is likely to rife with the wealth to fall with its poverty and improvement of the country. rife no doubt. So far as their quantity in any particular country depends upon the latter of thofe two circumftances (the fertility or barrennefs of the mines which happen to fupply the real price. affedted by the So far as their quantity in any particular country depends upon the former of thofe two circumftances (the power of purchafing) their real price. of their fmall bulk and great value. however. fink more or lefs in proportion to the and in proportion to the barrennefs of thofe mines. quantity of thofe metals in the countries moft remote from the mines. the real commercial world) their quantity of labour and fubfiftence which they for. muft be more or lefs afFeded by this fertility or barren- on account of the eafy and cheap tranfportation of thofe metals. Vol. . or a fmaller quantity 297 of labour and fubfiftence iilver. and Countries which have a and depreflion.THE WEALTH OF NATIONS. great quantity of labour and fubfiftence to fpare. The nefs. can afford to purchafe any particular quantity of thofe metals at the expence of a greater quantity of labour and fubfiftence. Their quantity in lefs China and Indoftan muft have been more or abundance of the mines of America. like that of all other luxuries and fuperfluities. any particular time to fupply the commercial world. fecondly. will. upon the at or barrennefs of the mines which may happen particular time to fupply the commercial world with thofe metals. The happen fertility or barrennefs of the mines. which may is at I. will purchafe or exchange fertility. Qji .

are doubtful. be very different. command. ftate it is evident. or even of its In feem to be no certain limits either to the pofTible fuccefs. In the courfe of a century or two. however. the quantity of gold and filver by which of annual produce could be expreffed or reprefented. and fuch it no human cnfure. this Its nominal value. a better chance for being fuccefsful. and in the other he who had a penny he Q would . the fearch for new mines. of induftry in a particular country. feems even to have no very neceflary connection with that of the world in As arts and commerce. real value to of the annual produce of the land and labour of man- kind. All indications. being extended over a v/ider furface. Whether the one or the other is of thofe two events may happen to take place. But in the one cafe who had a fliilling in his pocket. indeed. gradually fpread themfelves over a greater and a greater part of the earth. it could purchafe or A a fhilling might in the . real value. alone afcertain the reality of this fearch there its value. as is a matter of the or induftry can greateft uncertainty. than fomewhat may have when confined within narrower bounds. is come to be gradually exhaufted. would. of very little imthe portance to the real wealth and profperity of the world. or to the poflible human induftry. it is poffible that new mines may be difcovered more fertile than any that have ever yet been known and it is juft equally poffible that the moft fertile mine then known may be more barren than any that was wrought before the difdifappointment of covery of the mines of America. as the old ones The difcovery of new fkill mines.ore la- bour than penny does at prefent fliilling penny in the other might reprefent as much as a does now. would be one cafe reprefent no and a precifely m. no but its doubt. and the adlual difcovery and fuccefsful working of a new mine can exiftence. would be no richer than he who has a penny at prefent. the real quantity labour which the fame. may have no fort of coiiIt ' nedion with the general.298 THE NATURE AND CAUSES OF is BOOK ^— a circumftance which. acknowledged.

much richer than is any part of Eu- rope. only obferve at prefent. and of goods in general. a fyftem which endeavour this and examine I fhall at great length in the fourth book of enquiry. not only of the fcarcity of thofe metals. It is a proof only of the barrennefs of the mines which happened time to fupply the commercial world. latter. and the dearnefs and fcarcity of thofe trifling fuperfluities the only inconveniency it could fufFer from the other.THE WEALTH OF NATIONS. at that: A little poor country. fo the value Qj] 2 of . in other words. not likely to be higher in the former than in the a country In China. This notion is con- nedted with the fyftem of political ceconomy which reprefents naand national poverty I (hall tional wealth as confifting in the abundance. afford to as it cannot afford to buy more. feem have confidered the or. the value of the precious metals much higher than in any part of Europe. filver. pay dearer for gold and filver than a rich one therefore. As the wealth of Europe. The greater part of the writers in antient who have colleded the money to prices of things times. The fole and abundance of gold and filver plate. fo it can as . indeed. has increafed greatly fince the difcovery of the mines of America. the high value of gold and as a proof. Conclufion of the DigreJJion concerning the Vaiiations hi the Value of Silver. would be juft as rich as 299 cheapnefs he who has a flillling now. would be the advantage which the world could derive from the one event. but of the poverty and barbarifm of the country at the time when it took place. low money price of corn. is and the value of thofe metals. in the fcarcity of gold to explain and filver. that the high value of the precious metals can be no proof of the poverty or barbarifm of any particular country at the time when it took place.

The one has arifen from a mere accident. has not. this day as beggarly a country as it was before the difcovery of America. yet have arifen from very different caufes. The increafe of the quantity of gold its filver in Europe. or fubjedted to a duty. has not been owing to the increafe of the its wealth of Europe. Their quantity. not only with a freight and an infurance. and the increafe of tv»^o culture. at where the feudal fyflem continues to take place. the only encouragement it which fruits it requires. however. has the real value of the precious metals has fallen as in other parts in Poland. in the fame manner of Europe. but to the accidental difcovery of more abundant mines than manufadtures and agri- any and that were known before. real filver has gradually dimlnifhed. This diminution of however. is fhall enjoy the flill of own Poland. but with the expence of fmuggling. to -the annual produce of its This increafe of the quantity of thofe metals. The money price of corn. the countries which poffefs the mines. In their exportation being either prohibited. in which neither prudence nor policy either had or could have any fhare the fall : The other from of the feudal fyftem. has neither improved the manufadures and agriculture of the country. rifen . proportion . The value of the precious metals. feems. inhabitants. increafed that annual produce. loaded. mufl have increafed there as in other places. and nearly in the fame proportion land and labour. therefore. are events which. its nor mended the circumftances of tugal. it however. its fome tolerable fecurity that labour. after Poland. however. and have fcarce any natural connection with one another. the two mofl: beggarly countries in Europe. muft be lower in Spain and . perhaps.30O THE NATURE AND CAUSES OF of gold and their value. and from the eflablifhment of a government which afforded to induflry. though they have happened nearly about the fame time. of the annual produce of land and la- bour. Spain and Porare. Portugal than in any other part of Europe thofe countries to all as they come from other parts of Europe.

are poorer than the greater part of Europe. game of all kinds. which they commonly do at that in civilized countries. demonftrates. has not been fucceeded by a much better. is money price of fome particular forts of poultry. fc eitherits wealth and neither is of the country where their high value. But from the high or low money of fome forts . or of corn in particular. the low fuch as cattle. &c. to thaf of corn. their quantity 301 there- ^ HA P. As the low value of gold and flouriiliing ftate filver. any proof of of goods- in general.THE WEALTH OF NATIONS. and confequently the great extent of the land which they occupied in proportion to what was occupied by corn unimproved It . firft. fociety was time. their great abundance in proportion to that of corn. however. and confequently the uncultivated and ftate of the far greater part of the lands of the country. or of corn in particular. fecondly. and. its and that infancy. but in From the high or low money price either of goods in general. or poverty and\ barbarifm. happened fertile to fupply gold and were or barren. not that the country was price rich or poor. be no proof of the poverty or barbarifm of the times. abolifhed in Though it the feudal fyftem has been' Spain and Portugal. therefore. and in that country. we can infer only that the mines the commercial world with which at that time filver. proportion to the annual produce of the land and labour. a moft decifive one. is it no proof of the takes place. or the low money price of corn in particular. the low value of this land in proportion to that of corn land. ' muft be greater : in thofe countries than in any '——v other pajt of Europe Thofe countries. in proportion It clearly goods. But though the low money price either of goods in general. fore. clearly demonftrates that the ftock and poputo the lation of the country did not bear the fame proportion ex- tent of its territory.

even by thofe filver. in the price of thofe other forts of provifions. Any the money and part price of goods which proceeded altogether would afFedl all forts from the degradation of the value of of goods equally. forts of provifions equally. during the fixty-four firft years of the prefent century. is acknowledged. having recourfe to the fuppofed degradation of the value of fufficiently explain this rife in thofe particular forts of provifions to of which the price has adually corn. that rich or poor. •fo which has been the fubjed of does not affedl all much reafoning and converfation. or a to or a fifth higher. Taking the courfe of the it prefent century at an average. been fomewhat lower than four laft It was during the This fadl is fixty- years of the preceding century. and before the late extraordinary courfe of bad feafons. and thofe which have been above perhaps. therefore. not only by the accounts of Windfor market. their price univerfally a third. the price of corn. raife filver. or a fourth. But the rife in the price of provifions.30S THE NATURE AND CAUSES OF K foftg BOO of goods In proportion to that of others. it has. Some other caufes muft be taken into the account. who The account for this rife by the degradation of the value of forts has rifen rife much lefs than that of feme other of provifions. will. fourth. attefted. and by the accounts of . that the greater part of its was lands were improved or lefs unimproved. affigned. according as filver part of its happened lofe^ third. we can infer with a it degree of probability that approaches almofl to certainty. or a fifth former value. but by the publick fiars of all the different counties of Scotland. without filver. and that or in a it was eitlier in a more or barbarous ftate^ more or rife in lefs civihzed one. ejnnot be owing altogether to the degradation of the value of filver. rifen in proportion that of As to the price of corn itfelf.

The evidence been expeded in a matter which afcertained. It may not. can be fufficiently accounted for from the badnefs of the feafons. upon that account be alto- gether ufelefs. with great diligence and de St. which can be of no of fervice to the man who has only a certain quantity of filver to I go to market with. .THE WEALTH OF NATIONS. or a certain fixed revenue in money. or upon thofe of other provi' The fame quantity of purchafe a it filver. It may be ef fome ufe of fome value of to the public by affording an eafy proof of the profperous condition of the country. feveral forts of laft provifions than would have done during fome part of the this century. and by Mr. be faid. by Mr. Dupre more compleat than could well have is Maur.the pried fall of provifions be owing altogether to a it in the filver. which have been colleftcd fidelity is ^ « HA P. upon the of corn. perhaps. and to afcertain whether change be owing to" is a rife in the value of thofe goods. without fuppofing any degradation in the value of The its opinion. much fmaller quantity of. filver. certainly do not pretend that the knowledge of to this diftindion will enable him buy cheaper. to eftabliih a vain only fort- and ufelefs diftin£tion. Meffance. prices either fions. that filver is continually finking in value. of feveral different 303 markets in France. forts If the rife in . however. naturally fo very difficult to be As it to the high price of corn during thefe laft ten or twelve years.r—J. even according to the account which has been here given. is owing to a circumftance from which nothing can . will in the prefent times. it may. or to a fall in the value of filver. feems not to be founded upon any good obfervations. therefore.

BOOK .

rifes. If in the progrefs of improve- ment. befides. which the agriculture of Europe. or venifon. much diftrefled by any rife in the price of poul- wild-fowl. But in times of moderate plenty. the rude of agriculture are confined to the kitchen garden. as they muft be relieved by the fall in that of potatoes. OF NATIONS. the real price of one fpecies of food neceffarily it that of another as neceflarily falls. feems to have done through a rife great part of England. can- much affedt the circumftances of the inferior ranks of people. &c. Such are potatoes and maize.. perhaps. which Europe has received from the great extenfion of tion. it of corn land. I. ftate to and raifed only by the fpade. that of hogs flefh. lowers the price of fertility becaufe by increafing the of the land. carrots. more than a century ago) any fort which can afterwards happen in that of any other not of animal food. or called Indian corn. perhaps.TFIE illy WEALTH I . believe. the two mofl: important improvements itfelf. The try. with regard to every except. which. come and in its improved be intro: duced into common to be raifed by the plough fuch as turnips. fields. meat has once got to its height. its commerce and navigawhich in IVlany ftate forts of vegetable food. whea corn Vol. R r . cabbages. being rendered for producing corn. It raifes 305 lowers that of. come much cheaper what is market. every fort the price of animal food becaufe a great part of the land which fit produces it. (which. therefore. and becomes a matter one of more nicety to judge penfated by the fall in how far the rife in the may be com- the other. When it the real price of butcher'sfort. circumftances of the poor through a great part of England cannot furely be fo fifti. of vegetable food. agriculture increafes its abundance. The improveof vegetable ments of too lefs introduce many forts food. profit muft afford It to the landlord and farmer the rent and vegetable food. feafon of fcarclty the In the prefent doubt high price of corn no diftreffes the poor. requiring to land and not more labour than corn.

There rife in are. perhaps. malt. perhaps. of which are the natural effeds of improvement. of greater more proper divifion and diftribution of work. rally very yet the great diminution of the quantity will gene- much more than compenfate the greateft life which can hap- pen in the price. however. Effeils of the Progrefs of Improvement upon the real Price of Manufactures. indeed. confequence of the improvement of all land. T is the natural effe£t of improvement. in all That of of them workmanfhip diminifhes. and though in confequence of the flouriihing cirrife cumftances of the fociety.. and the neceffary rife in the real the execution of the work. in price of barren timber. They more.o oo6 corn Is THE NATURE AND CAUSES. without exception. leather. OF at its BOOK ordinary or average price. will more than compenfate the advantages which can be: . candles. and of a all In confequence of better machinery. a few manufadures. fort the natural rife in the price of any other fuffer of rude produce cannot artificial rife much affed them. dexterity. in which the neceflary the real price of the rude all materials will more than com- penfate the advantages which improvement can introduce into In carpenters and joiners work. by taxes in the price of fome manufadured commodities and ale. to diminifh all gradually the real price of almoft the manufacturing manufadures. the real price of labour fhould confiderably. in the coarfer fort of cabinet work. foap. beer &c. a much fmaller quantity of labour becomes requifite for executing any particular piece of work. by the which has been occafioned . as of fait.

owing. to a confiderable rife In the price of the material. was faid. u— v—-^ But does not factured In all cafes in rife at all. which the real price of the rude materials either or does not rife very much. cient to aftonifli the It though not has. rifen fomewhat in proportion it quality. on the contrary. and the moft proper divifion and diftributlon of work. been mofl: remarkable in manu- fadures of which the materials are the coarfer metals. a very great redudtion of gether fo great as in watch work. goodnefs for double.THE WEALTH OF NATIONS. be derived from the beft machinery. This diminution of and preceding price has. been no fuch fenfible redudlion of cloth. or in which the machinery employed admits of a greater variety of improvements. In the clothing manufadlure there has. The price of fuperfine has. in all the toys In the work of" cutlers and lockmetals. in the courfe of the thofe prefent century. hov. ^ 307 ha p. who in many cafes acknowledge that they can produce no work of equal triple the price. Ai. may now coarfer perhaps be had for twenty fhlllings. five its I price. than about the middle of the laft century could have been bought for twenty pounds. during the fame period.-ever. A better movement of a watch. which confifts altogether of Spanlfh wool. than thofe of which the materials are the coarfer metals. which are made of the and in all thofe goods which are commonly known by the name alto- of Birmingham and Sheffield ware. fmiths. during the fame period. there has been. within thefe to and twenty or thirty years. That of R r 2 . price. that of the manu- commodity finks very confiderably. have been affured. the greatefl dexterity. been fuffi- workmen of every other part of Europe. or even for There are per- haps no manufadures in which the divifion of labour can be carried further.

uld be fup- pofed equal. But its real has been 5 much . which may have occafioned fbme redudion of price. I fallen a is good deal in proportion Quality. for a yard of the fineft cloth and as this is fuch cloth." fhillings for every yard fo Sixteen therefore. had ufually been fold fomewhat dearer. and the machinery employed not very different. to have to its quality. it is probable. have been fome fmall improvements in both. unreafonable price a fumptuary law. which is made altogether of Englifli wool. above fhall forfeit forty fliillings.So8 THE NATURE AND CAUSES OF of the Yorkflalre ' BOOK *>— cloth. was. all fo very difputable a matter. There may. the quality of the cloths. fold. — is faid indeed. during the courfe of the prefent century. is In the clothing manufadure. when the labour was probably much lefs fubdivided. therefore. A guinea may be reckoned the higheft price in the prefent times. that look upon information of this kind as fomewhat uncertain. In 1487. " " fixteen {hillings. we compare what it the price of this in a manufadure in prefent times with much remoter period. and that of the prefent times moft probably the much of even upon this appears to fuppofition. containing ihillings about the fame quantity of filver as four time. and the machinery employed much more imwas perfed than it is at prefent. flio. money price price the fineft cloth have been confiderably reduced fince the end of the fifteenth century. it was enaded. the it divifion of labour nearly the fame now. is Even though fuperior. as is was a century ago. however. or of other grained cloth of the fineft making. being the 4th of Henry Vllth. at that reckoned not an . that fcarlet " whofoever *' fhall fell by retail a broad yard of the fined grained. But the if redudion will appear much more fenfible and the undeniable. yet. and twenty of our prefent money. towards the end of the fifteenth century. however.

in thofe times.bro^d yard." In the 3d of Edward the IVth two fhillings contained very nearly the fame quantity of filver as four of our prefent money.* in their cloathing any cloth above two fhillings the . bufliels was of the price of two a and more than three wheat. therefore. called Ten pence was was the price then reckoned V7hat the moderate and reafonable price of a bufhel of wheat. probably much fuperior any that was then made for the wearing of the very pooreft order of com- mon ijiay. in the prefent times. it was enaded. The man who bought in the have parted with the command of a quantity of labour and fubfiftence equal to what that fum would purchafe prefent times. the real price of a yard of fine cloth muft. nor common labourei*. being the 3d of Edward IVth. quarters OF NATIONS. The reduction in the real price of the coarfe manufadure. therefore. Even was the money price of their cloathing. which fixpence the bufhel. that no fervant in hufbandry. *' In 1463. at three fhillings would be worth eight fhillings and nine- . and eight-pence was then. fhillings. fervants. nor fervant artificer " to any inhabiting out of a city or burgh. has not been fo great as in that of the fine. fhall ufe " or wear *. and long afterwards. Two and therefore. The real price is certain-* is ly a good deal cheaper. though confiderablc. But the Yorkfhire is cloth which is now to fold at four fhillings the yard. in proportioa to the quality. of two bufhels and near two pecks of wheat.THE WEALTH much more of wheat. be fomewhat cheaper in the it prefent than in thofe antient times. Six fliillings chap. fhillings it have been equal to at leaft three pounds fix and muft fixpence of our prefent money. Valuing quarter of wheat in the prefent times at eight and twenty fhillings. 309 reduced. reckoned the average price of a quarter Sixteen fhillings.

the machinery employed was much more imperfect in thofe antient. The fame order of people are. She received them as a prefent from the Spanifh ambaflador. For a yard of this cloth the poor fervant muft have parted with the power of purchafing a quantity of fubfiflence equal to what eight fhillings is aud nine. to England is faid have been Queen Elizabeth. difficult to afcertain either the .pence. however. pair of ftockings to a fervant of the pooreft and loweft order. it probably. which may have been one of The firft perfon that wore ftockings dearnefs. the probably not art of knitting ftockings was known in any part of Europe. This a fumptuary law too. prohibited from wearing hofe. in thofe times have paid what was really equivalent to this price for them. We He Ihould in the prefent times confider this as a very high price for a muft. and near fix- two pecks of wheat which. Their hofe were made the caufes of their in of common cloth.pence would purchafe in the pre- fent times.3IO THE NATURE AND CAUSES OF nine. many fmaller ones of which may be The importance. Both tlian it in the coarfe and in the fine woollen manufadure. reftraining the luxury and extravagance of the poor "been Their cloathing. In the time of Edward IVth. is in the prefent times. which. at three and pence the bufhel. with . would coft five {hillings and three-pence. in thofe times the price of a buihel But fourteen-pence was . by the fame law. equal to about eight and twenty-pence of our prefent money. number or the firft. It has fince received three very capital improvements. in the prefent times. of which the price fhould exceed fourteen -pence the pair. befides. therefore. three capital improvements are The ex- feiiange of the rock and fpindle for the fpinning wheel. had commonly much more expenfive.

in any other part of Europe north introduced into Italy fome time They had been The confideration of thefe circumftances to us may. know. It coft a greater quantity of labour to bring. therefore. with the fame quantity of labour. they muft have purchafed or exchanged for the price of a greater quantity. It and manufadures are in manufadure. in water. comes always much cheaper to> a . in arts in thofe antient times. nor.THE WEALTH OF NATIONS. but fo as to be their work only when they had nothing elfe to do. them derived is the greater this The work which performed in manner.. muft have been extremely tedious and troublefome. the ufe of feveral very ingenious ma- chines which facilitate and abridge in a Hill greater proportion the winding of the worfted and woollen yarn. When they were brought thither. previous to the invention of thofe machines. The carried coarfe manufadure probably was. or the proper arrange- ment of the warp and woof before they are put into the loom . the fame manner always haa their in- been in countries where fancy. Thirdly. in England I the beginning of the fixteenth century. will perform more than double the quantity of work. perhaps. it has already been obferved. The eminftead of ployment treading it of the fulling mill for thickening the cloth. as it on in England. in was probably a houfehold which every by all different part of the different work was occafionally performed the members of almoft every private family . the goods to market. was fo Is much higher in thofe antlent. Neither wind nor water mills of any kind fo early as were known of the before. fo far as Alps. in fome meafure explain why the real price both of the coarfe and of the fine manufadure. 311 Secondly. than it in the prefent times. an operation which. and not to be the principal bufinefs from which any of part of their fubfiftence.

the importation it. but in the rich and commercial country of Flanders then. to fupply. foreign manufadlures. at leaft. by people who derived the whole. the the coarfe real price manufadure was. in the fame . Conclusion T of the Chapter.312 THE NATURE AND CAUSES OF to BOOK market than that which fubfiftence. on the other hand. by high duties. to the king. or the principal part of their fubfiftence from It befides a foreign manufacture. was' not in thofe times carried on in England. The confideration of thefe circumftances may. fo much lower than in the prefent times. but rather to encourage in order that merchants might be enabled the great ed. The direClly. would not probably be very great. and it was probably condud:ed was manner as now. in thofe antient times. extenfion of improvement and cultivation tends to raife it The landlord's fhare of the produce neceflarily increafes with the increafe of the produce. men with the conveniencies and luxuries which they wanttheir and which the induftry of own country could not aftord them. or the produce of the labour of other people. it. his power of purchafing the labour. in proportion to that of the fine. SHALL conclude this very long chapter with obferving that every improvement in the circumftances of the fociety tends either diredly or indirectly to real wealth raife the real rent of -land. to increafe the of the landlord. That . at as eafy a rate as pofTible. and muft: have paid fome duty. perhaps in fome of meafure explain to us why. is the principal or fo!e fund of the workman's The fine manufadlure. It This duty. was not then the of policy of Europe to reftrain. the antient cuftom of tonnage and poundage indeed.

or luxuries. An equal quantity of the former becomes thereby equivalent to a greater quantity of the •latter. tend indiredily to raife the real rent of land. his rifes real command of rifes the labour of other people. it after the rife in its real price. The landlord exchanges which is over and above his own real confumption. the ftock which employs that labour. Whatever reduces the price of the latter. rife 313 in the real price is firft of thofe parts of the rude produce of land. belong to the landlord. which the efFedl of extended improvement and culftill and afterwards the caufe of their being further ex- tended. tends indiredlly ^to raife the real rent A certain A greater proportion of this labour -naturally goes to the land. con- fequently. which he has occallon for. and in a ftill greater proportion. it. 'to which tend diredly reduce the real price of manufadlures. • number of men and cattle are employed in its cultivation. That produce. with the ordinary profit. therefore. I. A fmaller proportion of will. requires no more it labour to colled than before. the is produce increafes with the in~ it. but the proportion of his fhare to the whole produce it. or what comes to the fame thing. tends too to raife the rent of land directly. A greater proportion of it muft. S f The . for example. The real value of the landlord's fhare. Every increafe in the real wealth of the fociety. the price of that part of it. not only with the real value of the prowith duce. Vol. the rife in the price of cattle. every increafe •in the quantity of ufeful labour employed within of land. be fufficient to replace. that part of his rude produce. for manufactured produce. ornaments. and the landlord is enabled to purchafe a greater quantity of the conveniencies.THE WEALTH OF NATIONS. All thofe improvements in the productive powers of labour. creafe of the ftock which thus employed in raifing and the rent increafes with the produce. raifes that of the former. That tivation.

the profits wages of labour. it has already been obferved. uito three parts. and induftry. to lower the real rent of to diminifh his to reduce the real wealth of the landlord. or what comes to the fame thing. to thofe who live by wages. too often They are the only one of the three care. renders them too often. faid. the neglefl: of cultivation and imfall in ' BOOK »_— provement.314 THE NATURE AND CAUSES OF The contrary circumftances. on the other hand. Thefe are the three civilized fociety. and th. which is the cffed of the eafe and fecurity of their fituation. original and conftituent orders of every that of every other order is from whofe. the proprietors of land never can miflead with a view to promote the interefl: of their own particular order. the rent of land. as it were. of own accord. all tend. but orders whofe revenue to them neither labour nor comes them. revenue ultimately derived. of the juft firft of thofe three great orders. or the produce of the labour The whole annual produce of the Und and labour of. neceflarily promotes or obflruds the other. great. indeed. the whole price of that annual produce. Whatever either pro- motes or obftruds the one.every" country. the of land. flridly and infeparably con- neded with the general interefl of the fociety. and conftitutes a revenue to thofe to three different orders- of people. is it appears from what has been now.e of flock. When the public deliberates concerning any regulation of commerce it. power of purchafmg of other people. the the real price of any part of the rude produce rife in the real price of art manufadures from the decay real of manufaduring of the land. naturally divides itfelf. the declenfion of the wealth fociety. That indolence. or police. and to thofe who live profit. any tolerable knowledge of that defedive in this tolerableknowledge. either the labour. and independent of any plan natural or projed of their own. The interefl. atleaft. if they have interefl:. who by live by rent. cofl:s its They are. .

and fup- ported by his employers. labour of The plans and projedls of the employers of ftock all regulate and dired the moft important operations of labour. gain more by the profperity : of the fociety. It is conftitute the third order. except is upon fome fet particular occafions. he intereft. and S ^ 2 profit . But though the of the labourer is ftridly conneded with own. When the fociety declines. incapaits ble either of comprehending that his or of underftanding connexion with His condition leaves him no time to receive the neceffary information. or to continue the race of lafall bourers. ftationary.THE WEALTH OF NATIONS. perhaps. fully informed. not for his. they even below this. or The wages of the labourer. that of thofe is who live the ftock that employed for the fake of ufeful profit. and his education and habits are commonly fuch was voice is little as to render In him unfit to judge even though he therefore. purpofes. on. but their own particular His employers by profit. intereft is of the fecond order. fo high as when the demand for labour is continually when the quantity employed is every year increafing confiderably. the public deliberations. often. his heard and his lefs regarded. it has already been fliewn. not only ignorant. his When to bring this real wealth to of the is fociety becomes wages are foon reduced what barely enough to enable him up a family. that of thofe intereft who live by as ftridly conneded with the of the fociety as that of the firft. are never rifing. but incapable of that application of 515 mind ^ ^' ^^f^' which is necefTary in order to forefee and underftand the confe- quences of any public regulation. that of the fociety. which puts into motion the greater part of the every fociety. The wages. when clamour animated. than that of labourers but there is no order that intereft is fuffers fo cruelly from its decline. The order of proprietors may.

always the intereft of the dealers. As their thoughts. and is always intereft higheft in the countries which are going fafteft to ruin. is fimple but honeft conviction. from a very of the dealers. is. therefore. however. thai> Their fuperiority over the country gentle- man his. are commonly exerclfed rather about the intereft of their own their it particular branch of bufinefs. that of the public. that their intereft. is To widen the market and to narrow the competition. the contrary. than about that of the fociety. was the intereft of the public. may frequently be agreeable enough to the intereft of the public but to nan-ow the to enable competition muft always be againft it. it it is and with the declenfion of the fociety. judgment.3i€ THE NATURE AND CAUSES OF profit is the end propofed by all thofe plans and rife projecfis. But the rate of profit does not. whole lives they are engaged plans and projeds. even when given with the greateft candour is (which has not been upon every occafion) to the much rnore to be depended upon with regard with regard to the latter. The of this third order. The intereft in any particular branch of trade or manufactures. in this order. and high in poor countries. and even oppofite to. has not the fame connection with the general intereft of the fociety: as that of the other two. however. To widen the market . and can ferve only 6 the . they have frequently more acutenefs of under- ftanding than the greater part of country gentlemen. On naturally low in rich. the two of who commonly employ As during their the largeft capitals. fall with the profperity. Merchants clafles and mafter manufacturers people their are. former of thofe two objects. as in their having a better knowledge of their own their intereft than he has of they It is by this fuperior knowledge of own intereft that have frequently impofed upon his generofity. always in fome refpeCts different from. like rent and wages. and who by in- wealth draw to themfelves the greateft fhare of the public confideration. and perfuaded him to give up both his own intereft and that of the public. and not his. not fo much in their knowledge of the public intereft.

comes from an order of men. — n 5 2 1 —• 16 ID 1223 1237 1243 1244 3246 1247 1257 J — — — — — 28 — 6 6 12 — 258 — 4 6 15 — ^ — 5 17 1270 1286 12 — — II 16 I 16 8 [- -94 Total. by raifing their profits above what they naturally would P* be. 317 ^ ^ J^ v. own benefit.-J of commerce which comes from ought always to be till Hftened towith great precaution. The average Price of each Year in IVloney of the prefent Times. ^T . the dealers. — 3 S5 9 Average Price. whofe that of the public. both deceived and oppreffed Years XII. 12 13 s. -m . who have generally an intereft to deceive and even public.THE WEALTH OF NATIONS. for their their fellow-citizens. upon many occait. but with the moft fufpicious attention. £ 1202 r £. £' 1 s. and ought never to be adopted after having been long and carefully examined. not only with the It moft fcrupulous. Pr'ce of the Quarter of Wheat each Year. Average of the different Prices of the fame Year. an abfiird tax upon the reft of The propofal of any new law or regulation this order. d. intereft is never exadlly the fame with to opprefs the sions. --_ 1205 i (_ 15 4 _ 16 2 d. to levy. and who accordingly have.

of Average of the different Prices of the fame Year. 1290 I316 .3iS Years Xli I THE NATURE AND CAUSES OF Price of t^e Wheat Qoarter each Year.

THE WEALTH OF NATIONS. 319 .

Wheat each Year. d. £' s. 1453 1455 1457 1460 5 I 4 2 ID 2 »5 10 16 8 7 8 4 4 5 8 2 1463 10 { I 1464 i486 149^ 6 8 8 8 3 10 17 8 4 14 1494 1495 1497 4 3 2 6 5 II Total. — — — — Price. prefenc Times. 12 7 8 8 8 — — — Average 10 . £' J. Year.320 Y*ar$ THE NATURE AND CAUSES OF Average of the Price of the Quarter of e t djfFer- The average Price of each in Prices of the fame Year iVIoney of tiie XI f. £- £' s. 8 9 14 -- Average Price. ^^ s. 1499 1504 1521 ^SS3 1554 ^SS5 4 8 8 8 8 8 8 10 2 8 8 8 8 4 1557 5 8 IZ 1558 15S9 1560 13 8 8 8 Total. £- d.

Years XII. 321 .THE WEALTH OF NATIONS.

£.322 THE NATURE AND CAUSES OF Prices of the ^larter of nine BufJjels of the hefl or h'lghefl priced Wheat at Windfor Market^ on Lady-day and Michaelmas^ the Price of each from 1764. d. Years. Years. s. £. 5595» .' s- d.. 1595 medium betiveen io ^^^^ incluffvC'^ Tear being the the highejl Prices of thofe Tivo Market Days.

1668. 1658. 1662. i6j9. 1646. 1638. 1 664. i66r. Years. 1656. 3666. 1660. 1652. 1643. 1069. 1663. 1667. 1642. 1645. 1648. i6j4.THE WEALTH OF NATIONS. '7 . 1644. 16^ I. 1 6 CO. 1640. 1651. 1670. 1649. 1647. Wheat per quarter.

3^4 THE NATURE AND CAUSES OF BOOK .

THE WEALTH OF NATIONS. 325 .

.

been completed. . he as well as and the turf that are But when the divifion of labour has once been thoroughly in- troduced. but A ftock of goods of difFerent kinds. and Employment of INTRODUCTION. But this purchafe cannot made till fuch time as the produce of his Oivn labour has not only fold. the produce of a man's own labour can fupply but a far very fmall part of his occafional wants. the price of the produce of his own. Every man endeavours fupply by his own induftry his own occajTional wants as they occur. not neceflary that in order to ftock fhould be accumulated or ftored up beforehand to carry on the bufmefs of the fociety. he goes to the foreft to hunt when go to his coat worn out. or. which with be he purchafes with the produce. kills and when his hut begins he can. IN any that rude ftate of foclety in which there is no divifion in of labour. II. with the trees to ruin.( 327 ) BOOK Of the Nature. Stock. it is and which every man provides every thing for himfelf. in which exchanges are feldom made. The greater part of them are fupplied by the produce of other mens labour. therefore. it. : "When he is is hungry. Accumulation. he cloaths himfelf with the ikin of the : firft large animal he repairs neareft it. what is the fame thing.

fufficient to main- tain till him. applying his induftry for As the accumulation of ftock muft. a ftock web. either in his own pofleflion or in that of fome other perfon. be previous to the divifton of labour. As the divifion of labour advances. or rather of their number which enables them in this manner. as both thefe events can be brought about. improvement. therefore. muft be accumulated beforehand. but fold his This accumu- lation muft. he has not only completed. The quantity of materials which the fame number of of people can work up.328 B . comes each to be more and more fubdivided and as the operations workman are gradually reduced to a greater degree of fimpli- city. in every But the number of workmen branch of bufmefs generally increafes it is with the divifion of labour in that branch. A weaver cannot apply himfelf entirely is to unlefs there beforehand ftored up fomewhere. niufl: be ftored up fomewhere fufficient to maintain him. in the nature of things. the materials and tools and to fupply at him with leaft. be previous to his fo long a time to fuch a peculiar bufmefs. and to fupply him with the materials and tools of his work. an equal tools ftock of provifions. fo labour can be more and more fubdivided only in proportion as ftock is previoufly more and more accumulated. the increafe to clafsand fubdivide themfelves As on fo the accumulation of ftock great is previoufly neceflary for carrying- this improvement in the productive to powers of labour. a variety of new machines come to be invented for facilitating and abridging thofe operations.o THE NATURE AND CAUSES OF o K therefore. increafes in a great proportion as labour . in order to give conftant employment to an equal numa greater ftock ber of workmen. and of materials and ruder ftate than what would have been neceflary in a of things. evidently. his peculiar bufinefs. that accumulation naturally leads this The perfon * . of his work till fuch time.

He the endeavours. to In the third and fourth chapters. but. I have endeavoured to fliow what are the different parts or branches into which the ftock. chapter.THE WEALTH OF NATIONS. The quantity of induflry. U u CHAP. as to wifhes to employ tity in fuch a manner produce as great a quan- of work his as pofTible. or may either may be lent I be employed by the perfon to fome other perfon. or of a great tlie fociety. either itfelf. it fociety. in confequence of that increafe. His both thefe refpeds are generally in proportion to the extent of his ftock. and the effe<Ss of the different tals. to naturally divides In fecond. quantity of quantity of induftry produces a much greater work. befl: to furnifh them with machines which he can either abilities in invent or afford to purchafe. of an individual. The fifth chapter treats of the different effeds w^hich the different capital -employments of immediately produce upon the quantity both of national induftry. I have endeavoured ex- plain the nature and operation of lar IS money confidered as a particu- branch of the general ftock of the capital. The ftock which accumulated into a to whom in it belongs. not only increafes in every country with the increafe of the ftock which employs tlie fiirae it. jiciToa 329 neceflarily ^"•^'^'on. therefore. employments of thofe capiIn the firft This book is divided into iive chapters. tlierefore. have endeavoured examine the manner and laft which it operates in both thefe fituations. both to make among and workmen the moft proper diflribution of employment. I. . the effects have endeavoured to explain the nature accumulation into capitals of different of kinds. Such are In general the its effe(fls of the Increafe of ftock upon in- duflry and produdive powers. or to the number of people whom it can employ. who employs it his flock in maintaining labour. and of the annual produce of land and labour. I its In the following book of ftock. Vol.

its place before it be confumed altogehis His revenue is in this cafe. he expeds. revenue begins to come into His whole flock. is diftinguifhed two is parts.330 THE NATURE AND CAUSE OF CHAP. confifls the ftock which men commonly referve for their own immediate * con- fumptioa. fuch as a flock of cloaths. feldom thinks of deriving any revenue from He confuraes it as fparinglv as he can. That part which. he naturally endeavours it . in fuch things as had been purchafed by either of thefe in . or. gra- dually comes in . may maintain him therefore. houfehold furniture. in that portion of his for this whole flock which was originally referved fecondly. This the ftate of the greater part of the labouring poor in alt countries. The other is that which fupplies his immediate confirfl. or. or other. in his revenue. former years. he it. Of the I. HEN the flock which a man pofTeflTes is no more than fuf- ficient to maintain him for a few days or a few weeks. There . But when months or he pofleflfes flock fufKcient to maintain him for revenue from years. or of thefe three articles. derived from labour only. and the all In one. from whatever fource derived. is to afford him this revenue called his capital. Dl'uifion of Stock. to derive a the greater part of referving only fo till much this for his immediate con- fumption as in. and which confifls either. may fupply is. and which are not yet entirely confumed like. fumption . thirdly. purpofe as it . and endeavours by his labour to acquire fome- thing which ther.

manufaduring. for example. and returning him in another. in the purchafe of ufeful machines and inftruments of trade. therefore. it may be employed In the improvement of hand. be confidered as fuch. that can yield him any profit. Such capitals. is This part. chafing goods. unlefs his fliop. and felling them again with a The capital employed while fhape. or circulating any further. Different occupations require very different proportions becapitals tween the fixed and circulating employed in them. it may be employed manner yields in ralfing. First. He has occafion for no machines or inftruments of trade. or warehoufe. or fucceflive exchanges. and the money yields him as little till the merchant yield again exchanged for goods. and it is it only by means of fuch circulation. There ployed are 331 two difierent ways in which a its capital may be em- fo as to yield a revenue or profit to employer. part of the capital of every mafler artificer or manufac- turer muft be fixed in the inftruments of his trade. or in fuch-like things as yield a revenue or profit without changing mafters. may very pro- perly be called circulating capitals. A matter taylor Uu 2 . Such capitals. or continues in the fame The goods of fells he them for him no revenue or profit money. or purprofit. Secondly. very fmall in fome. it either remains in his pofleflion.THE WEALTH OF NATIONS. in His capital to is continually going from him one fhape. may very properly be called fixed capitals. The capital of a merchant. till it is in this no revenue or profit to its employer. Some however. and very great in others. therefore. is altogether a circulat- ing capital.

the maintenance of the cattle which are bought in and fattened. bought in. but for fale. In coal-works and mines of every kind. circulated either in the wages of workn:ien. makes of his profit that. the forge. the furnace for melting the ore. though but a very a little.332 THE NATURE AND CAUSES OF taylor requires BOOK ^^ -. more expenfive. mafter artificers. and by is a fixed capital. That in the part of the capital of the farmer is which that is employed in is the inftruments of agriculture a fixed j which employed wages and maintenance of his labouring fervants. He makes a profit of the one by keeping it. The farmer makes his profit by keeping the labouring Both the price and and by parting with their maintenance. are a circulating capital. Their maintenance circulating capital* .-' no other inftruments of Thofe of the weaver trade but a parcel of needles. is frequently Hill more expenfive. is The a profit made by keeping them. the flitt-mill. is a circu- lating capital. by parting with them. are inftruments of trade which cannot be eredl- cd without a very great expence. and of the other by parting with is The price or value of his labouring cattle a fixed capital in the fame : manner is as that of the inftruments of huftaandry Their maintenance a circulating capital in the fame manner as that of the labouring fervants. and repaid with a profit by the price of the work. make a profit by by is their milk. it in his own poffeffion. nor for but in order to their increafe. the machinery neceflary both for drawing out the water and for other purpofes. rife good deal above thofe of all The far greater part of the capital is fuch their however. for example. breeding country. labour. The farmer neither for their wool. of the fhoemaker. cattle. In other works a much greater fixed capital is required. or in the price of their materials. Thofe of the mafter fhoemaker are a little. In a great iron-work. not for labour. A is flock of fhecp or a herd cattle in a fale.

however. The laid out in a houfe. other revenue which he derives either from labour. cloaths. or ftock. and though it is it no doubt. as the houfe itfelf can. and of which the charaderiftick that it affords no revenue or profit. if ceafes to be the dwelling-houfe of the proprietor. Though yield a houfe. It confifts in the ftock of food. The whole it value of the feed too properly a fixed capital.THE WEALTHOFNATIONS. conits tributes is. as fuch. is to be lett to a tenaat for rent. is and the increafe. therefore. is that portion which is referved for immediate conis. each of tin£l which has a fundion or office. The Firft. make a part of this it is firft portion. it and thereby ferve in the fundion of a him. and not of his revenue. extremely ufefut are ufeful him. which. but which are not yet entirely confumed. nothing to the revenue of inhabitant. the milk. to ferve in the from that moment any revenue to its fundion of a capital. and therefore does not properly circulate. which have been purchafed by their proper confumers. produce nothing. but by its increafe. may yield a revenue to capital to its proprietor. parting with it . houfe- hold furniture. the tenant muft always pay the rent out of fome. his profit. or land. capital. The that general ftock of any country or fociety all its is the fame with naturally dif- of inhabitants or members. ftock of The whole in the is mere dwelling-houfes too fubfifting at any one time ftock that country. and therefore divides itfelf into the fame three portions. fumption. profit its is made by profit. as his cloaths and houfehold furniture to him. Tho' goes backwards and forwards between the ground and the granary. 333 it The cattle. not The farmer makes by its fale. &c. cannot any to the 3 publick^ . make a If it part of his expence. A to dwelling-houfe. • it never changes mailers. and come back with both own and the profit upon the whole price of the in the price of the wool. or to afford owner.

of facilitate all ufeful machines and inflruments of trade which and abridge labour all Secondly. and get a rent. fometimes yield a revenue. is of the fociety divides raderiflick is.334 THE NATURE AND CAUSES OF publick. confifls chiefly of the four following articles First. and houfehold furniture. however. is Though diflant. either of an individual. feveral years: a flock of furniture half a century or a century: but a flock of houfes. common. but for that of the furniture. which is derived from fuch things. well built and properly taken care laft may many centuries. not only for the ufe of the houfe. The revenue. it is In countries where maflett querades are for a night. Cloaths. a trade to out raafquerade dreffes furniture by the Upholfterers frequently lett month or by the year. and thereby ferve in the function of a capital to particular perfons. of thofe profitable buildings which are the means of procuring a revenue. what is laid out in lafl houfes raofl flowly confumed. or of a fociety. referved immediate confumption. Of is all parts for of the flock. however. houfehold The Second of the three portions into which the general flock itfelf. in the fame manner. more they are flill as really a flock re" ferved for immediate confumption as either cloaths or furniture. A flock of cloaths may of. Many people houfes. not only to their proprietor who letts . nor ferve In the fundion of a capital to it. Undertakers lett the furniture of funerals by the lett furniflied day and by the week. of which tl^e cha- that it affords a revenue or profit without circulating It or changing maflers. the fixed capital . the period of their total confump- tion. mull always be ultimately drawn from fome other fource of revenue. BOOK and the revenue of the whole body of the people can never be in the fmalleft degree iiicreafed by it.

of profitably laid the tin improvements of land. cofls it a real expence. with their i—— neceflary buildings. an equal greater circulating capital can afford a much revenue to its employer. An improved farm may very regarded in the fame light as thofe ufeful machines which facilitate and abridge labour. all the inha- members of always The acquifition of fuch talents. fuch as fhops. frequently requiring no other repairs than the moft profitable application of the farmer's capital employed in cultivating it: Fourthly. &c. but to the perfon pofleiTes them and HA p. pays that rent for them. or is by the maintenance of the acquirer during apprenticeflaip. in his perfon. of what has been clearing. workhoufesj farmhoufes. and may be confidered fame light Thirdly. ftudy. granaries. The improved dexterity of a work- man may ment of though profit. as they make a part of his fortune. draining. Thofe talents.THE etts WEA LTH all O F NAT I O N who S. it be confidered in the fame light as a machine or inffrutrade cofls which a facilitates and abridges labour. fo do they likewife of that of the fociety to which he belongs. warehoufes. as were. An improved farm is equally advantageous and more durable than any of thofe machines. ftables. They in the are a fort of inftruments of trade. his education. enclofing. and whichj expence with a certain expence. and reducing it into the condition moft proper for tillage juftly be and culture. repays that The Third and lafl: of the three portions into which the general itfelf. ou manuring. is ftock of the fociety naturally divides the circulating capital of . of bitants or the acquired and ufeful abilities of the fociety. and by means of which. which a capital fixed and realized. J35 ^ ' them for a rent. Thefe are very different from mere dwelling houfes.

&c. the mercers and drapers. &c. to thofe who are finally to ufe. and from the fale of which they expe(ft to derive a profit • Thirdly. but which in the hands of the merchant or of or diftributed and not yet difpofed the fre- proper confumers. the manufadturers. the goldfmith. the corn-merchant. parts is compofed likewife of four First. laftly. and building. and of the money neceflary for circulating and diftributing them them. joiners. of feflion the ftock of provifions which are in the pof- of the butcher. the timber-merchants. The ma- and finifhed work of all kinds that are in the hands of their that is refpeClive dealers. but which remain in the hands of the growers. or to confume Of . are not yet made up into any of thofe three fhapes.336 B THE NATURE AND CAUSES OF q£ which the charadeiiftick is. of lefs the materials. and manufacturer. circulating capital confifts in this manner. the carpenters and brickmakers. the farmer. of cloalhs. of the money by means of which circulated all the other three arc and diftributed to their proper confumers Secondly. furniture. the Fourthly. fuch as the finifhed work which we quently find ready-made in the fhops of the fmith. O o K that It it affords a revenue only by circulating or changing mafters. of the provifions. the jeweller. the cabinet- maker. the china-merchant. terials. the grazier. or more which or manufactured. the brewer. &c. is of the work which ftill is made up and to compleated. whether altogether rude.

and finiflied CHAP. and the maintenance of the workthem. derived from a which furnifhes the materials of which they are made. which feeds. and requires to be continually fupported by a circulating capital. however improved. No fixed capital can yield any revenue but by means of a circu- lating capital. X X . Of thefe four parts three. will produce The moft ufeful machines and inftruments of trade nothing without the circulating capital which affords the materials they are employed upon. cloaths. will yield no revenue without a circulating capital. to So great a part of the circulating capital being continually with- drawn from it. in order to be placed in the other it two branches of the general ftock of the fociety. men who employ Land. regularly withdrawn from it. Their riches or poverty depends upon the capitals can afford abundant or fparing fupplies which thofe two the ftock referved for immediate confumption. or in a longer or fliorter period. which maintains the labourers who cultivate and coUedt its produce. require too a capital of the fame kind to keep They them in con- ftant repair. -. muft in its turn require continual fupplies. the fole end and purpofe both of the It is this ftock and circulating capitals. either annually. are. All ufeful machines and inftruments of trade are originally circulating capital. materials. and placed. To fixed maintain and augment the ftock which is may be referved for immediate confumption. and lodges the people. and the maintenance of the workmen who make them.THE WEALTH OF NATIONS.^f . provifions. Vol..either in the fixed capital or in the ftock referved for immediate confumption. • 337 work. I. Every fixed capital is both originally derived from.

the other three. his rude produce for money. thofe work which he had wafted and worn out in the This is the real exchange that is annually made between two orders of people. therefore. with which he can purchafe. and fiftieries. fupplies. Thefe fupof land. and hy which are replaced the provifions. though it feldom happens that the rude produce of the one and the manufadured produce of the other. Thefe afford continual fupplies of prois and materials. mines. and muft. From mines too drawn what it is neceflary for maintainconfifts in ing and augmenting that part of which money. without BOOK which it would foon ceafe to exift. fmaller therefore. farmer the finiflied fame time. wherever it is to be had. it. and fometimes too be either require continual. are diredly bartered for one another that the farmer to the fells . like laft. and of vifions finifhed rials. his flax and his wool. plies are principally drawn from three fources. all the others the fociety. not only ihofe capitals. other things. it two branches of the general ftock of the all muft. neceflarily withdrawn from in the other in order to be placed fociety. Thus fions the farmer annually replaces to the manufadurer the provi- which he had confumed and the materials which he had wrought up the year before and the manufadurer replaces to the . however. of which part afterwards wrought up inta work. all both a fixed and a cir- culating capital to cultivate them and but their produce replaces with in a profit. fifheries. no doubt. though. He fells. . furniture. For like though. require . and inftruments of trade which he wants.338 THE NATURE AND CAUSES OF fupplles. the manufactured produce he has occafion o for. loft be wafted and worn out at or fent abroad. much LajSD. the produce of mines. becaufe it feldom happens his corn and his cattle. in the ordinary courfe of bufmefs. this part is not. finifhed mate- and work continually withdrawn from the circulating is capital. very fame perfon of whom he chufes to purchafe the cloaths.

profit. and. where afraid of the violence men are continually it of their fuperiors. every man of common underftanding will endeavour to employ whatever flock he can command in procuring either prefent enjoyment or future profit. in proportion to their natural In all countries where there is tolerable fecurity. in proportion to the extent and proper applithe capitals are cation of the capitals employed about them. and it is the produce its of the furface of the earth which extrads the minerals from bowels. In thofe unfortunate countries. Land even replaces. employ all the ftock where there tolerable fecurity.THE WEALTH OF NATIONS. is In the one cafe a fixed. If it is it is a ftock referved for immediate confumption. fertility. fifti the produce of land which draws the from the waters. If it is employed in procuring prefent enjoyment. fome one or whether be his own or borrowed of other people. in part at leaft. does not it which he commands. in other of thofe three ways. or by it going from him. . circulating capital. when their natural fertility is equal. This is faid to be a common pradlice in Turky. It the capitals with which is fiflierics and mines are cultivated. I believe. 339 ^ H A p. and is fifherles. The produce of land. they frequently bury and always at conceal a great part of their ftock. in Indoftan. for. in cafe of their being threatened with any of thofe difafters to which they confider themfelves as at all times expofed. it employed in procuring future muft procure this profit either it is by flaying with him. in the other is a A man muft be perfedly crazy who. indeed. mines. in order to have to carry hand with them to fome place of fafety. it is When equal and equally well applied. in moft other governments of X X 2 .

340 of Afia. fuch treafure as was found concealed in the earth. as things of fmaller confequence. was put upon the fame footing with gold and filver mines. and neither to the finder nor to the proprietor of the Iand» unlefs the right to it had been conveyed It to the latter by an exprefs claufe in his charter. tors THE NATURE AND CAUSES OF It feems to have been a common pra(5tlce among our ancef- during the violence of the feudal government. coppefi tin. that it This was regarded in thofe times im- was always confidered as belonging to the fovereign. without a fpecial claufe in the charter. in thofe times confidered as Treafure. which. were never fuppofed to be comprehended in the general grant of the lands. and to which no particular perfon as fo could prove any right.trove was no contemptible part of the revenue It confifted in of the greatefl fovereigns in Europe. portant an objedl. though mines of lead. . and coal were.

or the rent of 6 But . the profits of their flock. it has been obferved. Of Money Capital. annual pnduce refolve itfelf into the fame three and be parcelled out either as among the different inhabitants of the country. or all of thefe three parts .. another the profits of the ftock. with regard to every it commodity. gard to the The whole muft price or exchangeable value of that parts. and a third the rent of the land which had been employed in producing and bringing them to market: that there are. that the price of the greater parts. the wages of labour itfelf into it but that the price of every commodity neceflarily refolves one. 341 CHAP. every part of which goes neither to rent nor to wages. all muft be fo with re- commodities which compofe the whole annual produce of the land and labour of every country. c h A F^ part of commodities refolves itfelf into three of which one pays the wages of the labour. taken feparately. Since particular this is the cafe. the wages of their land. being neceflarily profit to fomebody. fome commodities of which the price is made up of two of thofe parts only. the wages of labour. taken complexly. their labour.THE WEALTH OF NATIONS. conftdered as y a particular Branch of the general Stock of the Society or of the Expence of maintaining the National T has been fhewn in the firft I Book. ir. or other. indeed. and the profits of flock: and a very few fome in which it confifts altogether in one.

of to place in his ftock referved for and all other neceflary charges. The whole expence of maintaining the fixed capital. and amufements. indeed. their land after comprehends the whole annual produce of the neat revenue. nor the pro- duce of the labour neceflary for fafliioning thofe materials into the proper form. or what. he can afi'ord immediate confumption^ or to fpend upon his table. that labour can ever make any part of it. His real proportion. circulating capital. yet as in the rent of a pri- we diflinguilh between the grofs rent and the neat all rent. The after grofs rent of a private eftate . fpend upon real their fubfiftence.342 THE NATURE AND CAUSES But and labour of every country. comprehends whatever is paid by the farmer the neat rent. the materials neceflary for fupporting their ufeful Neither machines and inftruments of trade. not to their grofs. fecondly. mufl: evi- dently be excluded from the neat revenue of the focicty. or pital. and. their fixed. the ornaments of his houfe and furniture. make a part of it. The grofs revenue of all the inhabitants of a great country. their what. but to his neat rent. what remains free to the landlord. without hurting his eftate. The price of fo may. a revenue to vate eftate fo its is OF conftitutes BOOK though the whole value of the annual produce of the land thus divided among and different inhabitants. but to their neat revenue. not to his grofs. equipage. may we likewife in the revenue of the inhabitants of a great country. wealth is in his private enjoyments and amufements. Their wealth too in proportion. as the workmen employed . their profitable buildings. is conveniencles. what remains free to and labour: them deduding the expence of maintaining. without encroaching upon their ca- they can place in their ftock referved for immediate conor fumption. &c. repairs. deducing the expence of management. firft.

the fubfiflence and conveniencies of the fociety. communications. will work up a much greater t^^uantity of goods than with more imperfedl inftruments of trade. cloathing. conveniencies. however. employed may place the whole value of referved for immediate confumption. the price the that of workmen. or the fame number of labourers perform a much greater quantity of work. with the beft machinery. &c. A certain quantity of and the labour of a certain number of workmen. But in other forts of labour. and amufements. and lodging. are always regarded as advantageous to every fociety. is The expence which any kind. to both the price and the produce go to this ftock. It is upon that all fuch improvements in mechanicks.' but this account ftill diff^erent from this one. to that of other people. but hot equal conveniencies. both to of which might have been immediately employed augment the food. A of certain quantity of materials. affifted with In manufadtures the fame number of hands. highly ad- vantageous indeed. In a farm where the neceffary buildings. theh- 343 wages in their ftock CHAP. materials. than in one furniflied of equal extent and equally good ground. drains. and the labour cf a certain number . the fame number of labourers and labouring cattle will raife a much greater produce. than that of the fupport fiill which fuch improvements This fupport. are augmented thofe by the labour of The intention of the fixed capital to enable is to increafe the produdive to all powers of labour. requires a certain portion of that produce.THE WEALTH OF NATIONS. with cheaper and fimpler machinery than had been ufual before. always repaid with great and increafes the an- nual produce by a much greater value require. the produce workmen. to as enable the fame number of workmen perform an equal quantity of work. are thus diverted to another employment. are in the moft pcrfe£l good order. fences. is properly laid out upon a fixed capital of profit. whofe fubfiflence.

BOOK of workmen. The quantity of that work. and the augmented. and confequently both the grofs and the neat rent of the landlord. will naturally be augmented. and makes a part of the neat revenue of the fociety. therefore. the latter. will na- employ the other hundred in purchafing an additional quantity of materials to be wrought up by an additional number of workmen. which had before been employed in fupporting a more complex and expenfive machinery. it provifions. and with it all the advantage and coaveniency which the fociety can derive from that work. Of the four parts of which and this latter capital is finiftied compofed. materials. are regularly withdrawn from it. it When by a more proper diredion. "Whatever portion of thofe in confumable goods "oes all to is not employed maintaining the former. not the fame cafe with that of maintaining the circulating ca- pital. turally if in the maintenance of his five he can reduce five expence to hundred. The may The expence of maintaining the fixed capital to that in a great country. eftate. But is it is though the whole expence of maintaining the fixed capital thus neceffarily excluded from the neat revenue of the fociety. money. ever. which his ma- chineiy was ufeful only for performing. . the three has already been obferved. The this undertaker of fome great ma- nufadory who employs a thoufand a-year machinery. how- can be diminifhed without occafioning any diminution of leaft produce. the grofs rent remains at neat r^nt is neceffarily the fame as before. or in their ftock referved for immediate confumption. very properly be compared of repairs in a private expence of repairs may frequently be neceflary for fupporting the produce of the eftate. and placed either in the fixed capital of the fociety. laft. can afterwards be applied to augment the quantity of work which is that or any other machinery ufeful only for performing.344 THE NATURE AND CAUSES OF II. work.

Y y expence. fociety. who. fo far as they revenue of the fociety. I. First. it is not upon that account totally excluded making goods a part likewife of their neat revenue. 3^^- The maintenance therefore. occafioning any diminution either of his capital or of Money. what ncceflliry for The from circulating capital of a fociety is in this refpcil is different that of an individual. as thofe machines and inftruments of trade. which muft confift altogether in his profits. and that part of the circulating afFedt the capital which confifts in money. bear a very great refemblance to one another. That of an individual totally ex- cluded from making any part of his neat revenue. of thofe three parts of the circulating the ^ ^^ '^ ^• capital. . fociety. re- quire a certain expence.THE WEALTH OF NATIONS. together with its profits'. are dedudions from the neat revenue of the in fociety . withdraws no portion of fociety. befides annual produce is ^-— v- — from the neat revenue of the maintaining the fixed capital. they may of other people. Sec. though they make a part of the grofs. both which expences. m.ay regularly replace thelp value to him. firftto eredl them. The fixed capital. without theirs. But though the circulating to capital of every individual. from a revenue derived from other funds. makes a part of that of the fociety which from whole in his in that ' he belongs. and afterwards tofupport them. fo the ftock a certain of money which circulates any country muft require Vol. a merchant's fhop muft Though the in by no means be placed own (lock referved for immediate confumption. therefore. is the only part of the circulating capital of a of which the maintenance can occafion any diminution in their neat revenue.

A certain filver. gold and fociety. It is the ambiguity of language only which can make this pro- pofition appear either doubtful or paradoxical. and not in the wheel which circulates them. by means of which every bivted to individual in the fociety diftri- has his fubfiftence. conveniencies. it is almoft felf-evident. and afterwards a part to fupport it. dedud the whole value of the money. &c. inftead of augmenting the flock referved for immediate cdnfumption. compofe the fixed capital an individual or of a part either of the grofs or of the neat revenue of either fociety money. makes is itfelf great wheel of circulation alto- gether different from the goods which are circulated by means of it. firft BOOK to coiled it. fum of money. The its different members. though they make of the grofs. is employed in fupporting that great but expenfive inftru- ment of commerce. in manner. and of very curi- ous labour. and amufements. both which the fame expences. by means of which the whole revenue of the is regularly diftributed no part of that among all revenue. . make no fo as the machines and inftruments of either of trade. from whole annual circulation of money and goods. the fubfiftence. The revenue of the fociety confifts altogether in thofe goods. When properly ex- plained and underftood. are. and amufements of individuals.346 THE NATURE AND CAUSES OF expence. of which not a fingle farthing can ever make any part of either. conveniencies. and talk of When we any particular fometimes we 4 include in our meaning fome obfcure reference to ^^^ . we fometimes mean nothing but the metal pieces of which it is compofed. which fociety. dedudions from the neat revenue of the quantity of very valuable materials. Secondly. regularly him in their proper proportions. In computing either the grofs or the neat revenue of any fociety. their we muft always.

money of England been the computed at eighteen we mean only to exprefs amount of the metal pieces. is in equal only to one of the tvv^o values which are thus intimated fomewhat ambiguoufly by the fame word. guinea. conveniencies. and to what can be purchafed with or other of thofe but only to one two equal values . His weekly revenue is certainly not equal both to the it. it. When. and to the latter more pro- perly than to the former. or rather have fuppofcd to circulate in that country. but include in its fignification fome obfcure reference to the goods which it can be had in exchange for them. and amufements. and to the latter more properly than to the former. but the value of the goods which he can annually purchafe or confume. has Tluis when we the circulating millions.THE WEALTH purchafing which the poffeffion of that OF NATIONS. mean commonly to afcertain what is or ought We to be his ries way of living. is But when we fay that a man to worth fifty or a hundred pounds a-year. the wealth or revenue which this cafe denotes. guinea be the weekly penfion of a particular perfon. conveys. which fome writers have computed. exprefs the by any particular fum of money. to the guinea's worth rather than to the guinea. his real weekly revenue. we mean commonly exprefs not only the amount of the metal pieces which are annually paid to him. 347 the goods which can be had in exchange for it or to the power of C fay. to the money's worth more properly than to the money. he can in the courfe of the week purchafe with it a certain quantity if a Thus of fubfiftence. or the quantity life and conveniencies of and quality of the neceffain which he can with propriety in- dulge himfelf. fo are his real riches. we mean not only which it is to to amount of the metal pieces of compofed. In proportion as this quantity is great or fmall. II A P. . Yyz I.

values. his revenue furely confift in the piece would not properly of paper. ufelefs' upon a bankrupt. muft always be great or fmall in proportion to the quantity of confumable goods which they can all of them purchafe with is this money. and to the latter more properly than Though we by the metal the frequently. not in gold. if this is fufKciently evident even with regard to fo an indivi- it is ftill more with regard to a fociety. exprefs a perfon's revenue to pieces which are annually paid regulates him. it is becaufe amount of thofe pieces the extent of his power of purchafing. therefore. as in what he could get for bill A gui- nea may be confidered as a all for a certain quantity of neceflaries- and conveniencies upon the tradefmen in the neighbourhood. does not fo properly confiflr for it. their real riches. be of no more value than the moft piece of paper. which But dual.3^8 THE NATURE AND CAUSES OF If the penfion of fuch a perfon was paid to him. but In a weekly bill for a guinea. may be. it is The revenue of the perfon to whom paid. and in reality frequently is paid to them in money. and not convey it. The whole revenue of to both the all of them taken together evidently not equal money and two the confumable goods. or yearly revenue of all the different inha- any country. fo it. but only to one or other of thofe to the former. in the fame manner. would. We ftill confider his revenue as confifting in this in the pieces power of purchafing or confuming. as in what he can get or in what he can it exchange like a bill it for. Though bitants of the weekly. the real weekly or yearly revenue of all of them taken together. If it could be exchanged for nothing. The amount of the . however. or the value of the goods which he can annually afford to confume. in the piece of gold.

or the goods which can be bought with the whole of thofe money penfrons as they are fucceffively paid. muft always be of much lefs value than the whole money penfions annually paid with them. its venue of members. they make themfelves no part of that revenue. may pay that of another morrow. makes no part of the revenue of the fociety to it is which it belongs and though the metal pieces of v/hich compofed. Money. But the amount of the metal can never he equal to the re- pieces which all circulate in a fociety. inftrument of commerce.porting thofe machines. much from but in the power of purchafing. like all the great trade. is f6 cannot confift in thofe metal pieces.—— precifely equal to his revenue. That revenue. As the fame guinea which pays the to-> weekly penfion of one man to-day. of which the amount inferior to its value. and Sec. CHAP. though it therefore. the great wheel of circulation. in the courfe of their annual circulation. fucceffively But the power of purchafing.THE WEALTH tiyi OF NATIONS. diftribute to every man the revenue which properly belongs to him. is 349 often ' metal pieces which are annually paid to an individual. the amount of the metal pieces which annually circulate in any country. Thirdly. a part other inftruments of makes and a very valuable part of the capital. and is upon that account the fliortert: and heft expreffion of its value. muft always be precifely of the fame as muft likewife be the revenue of the whom they are paid. in the good's which can hand to fucceffively be bought with them as they circulate hand. value with thofe penfions different perfons to . therefore. and that of a third the day thereafter. laftly. . that as every faving in the expence of ereding and fup. the machines and inftruments of trade. . which compofe the fixed capital. bear this further refemblance to that part of the circulating capital which confifts in money.

the grofs But in what manner it opera- and or in what manner tends to increafe fociety. commerce with one much filver and fometimes equally convenient. The fubftitution of paper in the room of gold and replaces a very expenfive inftrument of lefs cofl. performed. which does not diminifh the produdive powers of labour. known and which feems beft adapted for this purpofs. When . which it colls both to ered this and tion to is maintain than the old one. explication. and may therefore require fome further There are feveral different forts of paper money. It the is fufficiently obvious. and it has partly too been explained already. in fixed what manner every faving in the expence of fupporting capital is an improvement of the neat revenue of the capital of the undertaker of every fociety. Circulation comes lefs to be carried on by a new wheel. is either the neat revenue of the not altogether fo obvious. fo every faving in the expence of colledlng and fupporting that part of the circulating capital which confifts in money. and puts induftry into in the motion. the revenue of every fociety. real and confequently the annual produce of land and labour. The whole work is necefhis farily divided between his fixed and his circulating capital. Every faving. expence of maintaining the fixed capital. < BOOK . but which the circu- lating notes of banks and bankers are the fpecies is befl.350 THE NATURE AND CAUSES OF machines. the greater mufl: neceflarily be the other. therefore. mufl: increafe the fund which puts induftry into motion. the circulating capital which furniihes the materials and wages of labour.lyj money. the fmaller the It is one part. which does not diminifh the produ£live powers of labour. While whole capital remains the fame. is an improvement of the neat revenue of the fociety. is an improvement of exadly the fame kind.

if different be fpared from the circulation of the country. as to believe that he always ready to pay upon demand fuch of his promiiTory notes as are likely to be at any time prefented to him . This the fource of his gain. Let . fo pay him the fame interefl is he had lent them much money. therefore. the fame quantity of confumable goods may be circulated and diftributed to their proper confumersj by means of his promiflbry notes. to the value of a hundred thouEighty fand pounds. of a hundred thoufand pounds. twenty thoufand pounds in gold and filver may. v fortune. frequently. to the extent. Though he has generally in circulation. and prudence of a particular banker. at the fame time. in this manner^.THE WEALTH OF NATIONS. Though fome of for thofe notes are continually coming back upon him payment. and operations of the fame kind. is CHAP. A PARTICULAR banker As lends among his cuftomers his own promiflbry notes. can. of a hundred thoufand pounds. thoufand pounds of gold and filver. therefore. as by an equal value of gold and filver money. notes to the extent. When fidence in 351 the people the of any particular country have fuch conprobity. thoufand pounds in gold and a By this operation. the whole circulation fifth part may thus be conducted with a only of the gold and filver which would otherwife have been requifite. The fame exchanges may be made. his debtors thofe notes ferve interefl as if the purpofes of money. twenty filver perform all the fundions which hundred thoufand could otherwife have performed. fliould. from the confidence that fuch money can at any time be had for them. be carried on by many different banks and bankers. we fhall all fuppofe. therefore. be a fufficient provifion for an- fwering occafional demands. part of them continue to circulate for months and years together. thofe notes come to have the fame currency as gold and filver money.

muft overflow. payable the bearer. poured into it beyond this fum. becaufe at a dlftance from the banks which Hfue and from the country ia which payment of received in it can be exa£ted by law. for example. will- remain precifely the fame fuflicient as before. and that annual produce cannot be immediately aug- mented by thofe operations of banking. million fterling. Whatever. therefore. and a million of bank notes. or eighteen hundred thoufand pounds of paper and money and together. in therefore. One Eight million eight hundred thoufand pounds are poured into hundred thoufand pounds. the extent of one million. It will. therefore. it will not be common payments. it. that fum being over and above what can be employed in the circulation of the country. to the amount . One it.352 THE NATURE AND CAUSES GF Let lis fuppofe. But though this fum cannot be employed lie at home. There would remain. But the paper cannot go abroad it. in order at to feek that profitable employment which . that the whole drculating money to of fome particular country amounted. that at a particular time. The goods to and felling therefore. be fent it abroad. One million. may be allowed fuch an expreffion. it is too valuable to be allowed to idle. referving in their different coffers two hundred thoufand pounds for anfwering occafional in circulation. * Gold and . Let us fuppofe ifllied fome time thereafter. filver. will be fufHcient to circulate it after them. therefore. hundred thoufand pounds gold and filver. million we have is fuppofed to fill that channel. the fame quantity of them. that land and labour. money be fufficient if I for buying The channel of circulation. therefore. cannot run in but mufl: overflow. different to banks and bankers to promiflbry notes. eight demands. But the annual produce of the land and labour of the country had before required only one million to circulate diftribute it to its proper confumers. cannot find home. one the fum being then their fufficient for circulating whole annual produce of too. be bought and fold being precifely the will fame as before.

Z z ' ' So . foreign &c. that will its though fo great a quantity of gold and filver is thus fent we muft it not imagine that it is fent abroad it for nothing. created being now tranf- a£ted by paper. they may purchafe an ad- ditional ftock of materials. But abroad. who re-pvoduce. it promotes prodigality.THE WEALTH OF NATIONS. increafes expence and confumption without increafing produdion. If they employ it in purchafing foreign firft. with a profit. either. or in what called the to carrying trade. 353 and CHAP. fuch as foreign confumed by idle people . in order to main- tain and employ an additional number of induftrious people. They exchange for foreign goods of fome kind or another. the value of their annual confump- tion* So far as it is employed in the firft way. /econdly. they to be may filks. home circulation will remain filled with a million filled it of paper. I. amount of eight hundred thoufand pounds the channel of will be fent abroad. whatever profit they the neat revenue of their for carrying make will be an addition own country. inftead of the million of thofe metals which before. purchafe fuch goods as are likely nothing. or proprietors make a prefent of to foreign nations. or. . in order to fupply the confumption either of fome other foreign country. and the gold and filver being converted into a fund for this new trade. It is like a on a new trade domeftick bufinefs new fund. or eftabliftiing any permanent fund for fupporting that expence. and is in every refpetS hurtful to the fociety. or of their own. Vol. If they employ it in purchafing goods in one foreign country in is order to fupply the confumption of another. who produce wines. goods for home con- fumption. and provifions. tools.

employed in purchafing goods for home confumption. Though fome particular men may fomeclafs times increafe their expence very confiderably though their revenue does not increafe at all. increafed by the whole value which the labour of they are employed value. the annual is produce of their land and labour. though the principles of common prudence do not always govern the condudt of every individual. 9 be . a very fmall part of the money. it promotes induftry fociety. may. The thofe grofs revenue of the fociety. clafs But the revenue of banking. or very nearly the fame. we may be aflured that no or order of men ever does fo becaufe. which being forced abroad by thofe operations of banking.354 THE NATURE AND CAUSES So ' OF it BOOK «— v^ far as it is it employed in the fecond way. but almoft unavoidable. after . they always influence that of the majority of every clafs or order. cannot. be increafed by thofe operations of Their expence in general. the people who confume re- producing. confidered as a or order. The demand of idle people. and therefore. as before. increafed idle people. That foreign the greater part of the gold and filver which. in the fmalleft degree. . workmen is adds to the materials upon which this and their neat revenue by what remains of neceflary for fupporting the tools deduding what and inftruments of their trade. of and muft be employed feems not only probable in purchafing thofe this fecond kind. the whole value of their an- nual confumption. therefore. being the fame. with a profit. being forced is is abroad by thofe operations of banking. for foreign goods. is likely to be employed in The greater part of it will naturally for their ufe. foreign goods for is employed in purchafing purchafing thofe home confumption. cannot be much by them. and though increafes the confumption of the provides a permanent fund for fupporting that confumption. though that of a few individuals among them in reality fometimes is.

which are purchafed to the lat- with ter but only to one or other of thofe two values. more properly than paper is When whole fubftituted in the room of gold and filver money. other men. nor a tool to work with the workman are commonly paid to him in money. and which ferves only to circulate thofe three.THE WEALTH OF NATIONS. and to the former. may be increafed by the whole value of gold and filver which ufed to be employed in purchafmg Z z 2 them. materials. and not for the tenance of idlenefs. money which purchafes. but in the money's worth for them. not in the metal pieces. be equal to the number of workmen be requifite whom it can fupply with materials. the rials tools. to thofe parts of we muft always have regard only. but in what c an be got The quantity of Induftry which any capital can employ. as well as the maintenance of the workcapital can men. the quantity of the materials. which confift in provifions. evidently. and maintenance. muft. Money may for purchafing the mate- and tools of the work. nue. and finilhed work : the other. confifts. and though the wages of to work upon. put induftry into motion. certainly not equal both to the tools. and a maintenance fuitable to the nature of work. three things are requiiite . ZSS ^ ^^^^ ^^ When we compute it the quantity of induflry which the circulat- ing capital of any fociety can employ. which confifts in money. But the quantity of induftry which the whole is employ. tools. and to the materials. not in the money. which the circulating capital can fupply. it . muft always be deduced. and the wages or recompence for Money is neither a material the fake of which the work is done. . work with. In order to materials to work upon. mainbe deftined for the employment of induftry. like that of all . his real revetools to . and maintenance.

takes its down his old machinery and adds the difference between circulating capital. What is the proportiori which the circulating money of any It country bears to the whole value of the annual produce circulated by means of it. the gold and filver neceffary for circulation reduced to. value of the great wheel of circulation and difto the tribution. in fome meafure. When. been performed in Scotland. by' the ereflion of new banking companies in almoft every confiderable town. and even in fome country villages. within thefe five and twenty or thirty years. if the value of only the greater part of the other four-fifths be added to the funds which are deftined for the maintenance of induftry. it is. The effeds of it have been precifely thofe is above defcribed. perhaps. who. THE NATUREAND CAUSES OF The whole added it. refembles that of the undertaker of fome great work. ever deftined for the maintenance of induftry. it muft make a very and. in confequence of fome improvement mechanicks. perhaps. proportion to that part. a and at a thirtieth part of that value.356 them. impoffible to determine. But how fmall the proportion which the circulating money may bear and fre- whole value of the annual produce. fequently. it muft always bear a very confiderable therefore. at has at been computed by different authors twentieth. a fifth part of the former quantity. to the value of the annual produce of land and An operation of this kind has. is goods which are circulated and diftributed by naeans of The in operation. The bufinefs of the country almoft entirely carried . labour. to the price and that of the new to his fund from which he furnifhes materials and wages to his workmen. at a tenth. foever to the a fifth. of that produce. by the fubflitution is of paper. is quently but a fmali part. as but a part. con- confiderable addition to the quantity of that induftry.

parliament to all thofe different companies has not and has accordingly required an aft it j of has it regulate the country.int of Scotland.117!. immediately after into to was the bank of Scotland ics. amounted 411.THE WEALTH OF NATIONS. but appears from the antient accounts of the m. . before the union. But though the condudl of been unexceptionable. of re- * See Rmldiman's Preface to Andeifoii's Diplomata. carried 3J7 banking all on by means of the paper of which purchafes thofe different ^ ^ ^ P- companies. operation of That the trade and induftry of Scotland. it order to be re-coined. No account has been got of the gold coin. who. it. that the value of the gold annually coined fomewhat exceeded that of the people too filver*. has really increafed in fo great a proportion. fterllng. 1727. and that the fince the firft trade of Scotland has more than quadrupled at eredtion called of the two publick banks Edinburgh. diffidence Scotias. and gold ftill feldomer. this this have increafed very confiderably during period. however. fole feems be an effeft too great to be accounted for by the this caufe. except in fliiilings change of twenty bank note. ^id. of which the one. afferted. a Silver very fcldom appears. either of Scotland in general. to cannot be The brought value of the filver money which in circulated in Scotland. to If either of them has increafed in this proportion. in 1707. Scotland. &c. are with and payments of kinds the commonly made. payment. and which. eflabllfhed The Bank of 1695. during fo fhort a period. or of the city of Glafgow in particular. There from a v. that the have heard trade of the city of Glafgow doubled in about fifteen years after the firfl eredlion of the banks there. The Royal Bank. I evidently derived great benefit from their trade.'ere a good many^ upon this occafion. and that the increafe. called was by aft of parliament in royal the other. notwithflanding. I do not pretend it to know. by charter in Whether the trade. banks have contributed a good deal doubted.

: and befides. It is chiefly by difcounting and bankers bills of exchange. by ad- vancing money upon them before they are due. of its have fuffered any. in. was conpart feems to have made but a times lefs very fmall of the whole. it no rival. which circulated in lefs Scotland the union.358 THE NATURE AND CAUSES OF payment. does not amount filver cannot be eftimated at than two millions. has the advantage of being able to dlfcount to a greater his amount. fome Englifh coin. feems to have conftitutcd almofl: the whole circulation of that country. intereft. Its agriculture. but his own promifTory notes. Thb . of which that part filver. which confifts in gold and to half a million. not called The whole value of the gold and before therefore. and trade. till iffue their promiflbry they notes. upon whatever bill fum advance. to riches and profperity do not appear manufadures. are commonly to in circulation. which had then fiderable. for though the circulation of the bank of Scotland. But though the circulating gold and fo of Scotland have fuffered its real great a diminution during this period. by the whole value of finds promiflbry notes. cannot It be eftimated at than a million flerling. that the greater part of banks always. have evidently been augmented. bill with to The banker who difcounts advances the merchant whofe he not gold and filver. which he by experience. did not bring there was. He is thereby a larger enabled make his clear gain of intereft on fo much fum. They legal dedu£l intereft bill. on the annual produce land and labour. that is. to The payment of the a clear profit the when becomes due. BOOK their filver into the bank of Scotland which was filver. In the prefent the whole circulation of Scotland moft probably. the contrary. the the it fhall become due. replaces together bank the value of of the what had been advanced.

together with the legal Credits of this kind are. The banks. money fliould be advanced to him. thereit fore. that is by giving credit of a certain fum. and are thereby interefted to pro- mote the in all trade of thofe companies. I believe. perhaps. fliould be repaid upon demand. They invented. for example. All merchants. all commonly granted by world. banks and bankers in eafy terms different parts of the But the upon which the Scotch banking companies accept of are.meal. and of the benefit which the country has received from it. (two or three thoufand pounds. therefore. Whoever this has a credit of this kind with one of thofe companies.) to any individual who could eftate to procure two perfons of undoubted credit and good landed that whatever become furety for him. had they confined the difcounting of bills of exchange. and have. it. a proportionable part of the intereft of the fum from and almoft the day on which each of thofe fmall fums is paid till the whole be in this all manner repaid. may repay fum piece. the company difcounting great in. been the principal caufe. peculiar to them. fo re-payment far as I know. and borrows a thoufand pounds upon for example. ifluing their promiflbry notes by granting. method of called. men of bufinefs. generally advance them own promiflbry . and by encouraging to thofe with whom in their they have any influence do the fame. what they to the extent cafh accounts. which at prefent is firfl: not very great. The was flill 359 commerce of Scotland. by twenty and thirty pounds at a time. CHAP. by readily receiving their notes all payments. both of the great trade of thofe companies. find convenient to keep fuch calh accounts with them. banking com- panies were eftablifhed little and thofe companies would have had but their bufinefs to trade. another . it when to their cuftomers apply to them for money. within the fum for which the credit had been given. more inconfiderable when the two . intereft.THE WEALTH OF NATIONS.

had he not been Let us fuppofe that obliged to keep fuch fum unemployed. or to replace what they almoft the may have borrowed of them whole money bufmefs of the country is . muft be 2 by all thofe that five . Hence. either in coffers. Edinburgh merchant can. and the other in Edinburgh. without imprudence. or it. the manufadurers to rials the farmers for and provifions. him no intereft for in order to anfwer the demands continually coming the goods upon him Let for payment of which he purchafes upon credit. one in London. his own in thofe of his banker. By being fell obliged to keep fo great a fum unemployed. lefs The five value of the goods in his warehoufe mufl always be by hundred pounds than a it would have been. Thefe the merchants pay away to the manumate- fadurers for goods. carry on a greater trade. the great trade of thofe companies. and thus tranfa£ted by means of them. without imprudence.363 THE NATURE AND CAUSES OF promiflbry notes. once in the goods to the value of his whole flock upon year. The London merchant mufl who gives keep by him a confiderable fum of money. carry on a greater trade than he otherwife could do. and give employment to a greater number of people always than the London merchant. and the merchants again return them to the banks in order to balance their cafh accounts. made by the fale of five hundred pounds in pre- worth more goods and the number of people employed lefs paring his goods for the market. all His annual profits mufl: be by that he could have . of his he generally difpofes whole flock upon hand. or of hand. the farmers to tbeir landlords for rent. By means If there are of thofe cafh accounts every merchant can. the who employ equal flocks in the fame branch of trade. he lefs muft in a year five hundred pounds worth goods than he lefs might otherwife have done. two merchants. the ordinary amount of this fum be fuppofed five hundred pounds. the landlords repay luxuries with them to the merchants for the conveniencies and which they fupply them.

employed. current in Scotland. 3 as the excefs could neither Vol. or paper which comes in from the occafional fales of his With all the fame ftock. money filver. loweft paper If was no are the twenty ihilling notes. the great benefit which the country has derived from The cafti it facility of difcounting bills of exchange. But the Scotch merchants.THE WEALTH OF NATIONS. he fatisfies them from his cafh account with the bank. this Hence trade. bills muft be remembered. the whole of that curcirculate rency which can eafily there cannot exceed necefl^ary for the fum of gold the and which would be tranfading annual exchanges of twenty fhillings value and the upwards ufually tranfaded within that country. therefore. whole paper money of every kind which can eafily circu- any country never can exceed the value of the gold and of which it fupplies the place. keeps merchant on the other hand. he can. and can thereby both make a greater to a greater and give conflant employment number of induftrious people who prepare thofe goods for the market. The late in filver. and gradually replaces the fum borrowed with the money goods. for example. Should circulating paper at any time exceed that fum. can difcount their . gives the Englifh merchants a conveniency equivalent to the accounts of the Scotch merchants. When adually come upon him. paper money. five 361 hundred in pounds more ftock could have Edinburgh. it may be thought indeed. goods than the London merchant profit himfelf. or which (the commerce if there being fuppofed the fame) would circulate there. The no money they Unemployed for anfwering fuch occafional demands. have at times in his warehoufe a larger quantity of . without imprudence. befides. of exchange as eafily as the Englifh merchants and have. L a be . the additional conve- niency of their cafh accounts.

of which And. this fuperfluous paper. be a run upon the banks to tha and. whole extent of difficulty or therefore. the expences peculiar to a in the expence of keep- bank ing confift chiefly in two articles Firft:.S62 THE NATURE AND CAUSE OF be fent abroad nor be employed in the circulation of the country. their notes returning much fafler greater proportion upon them much than in proportion to . neceflarily increafing th^ Tun. backwardnefs in payment. people would immediately perceive that neceffary for they had more of this paper than was their tranfading it bufinefs at and as they could not fend it abroad. fuch as the expence of houfe-rent. the wages clerks. but they remained in the fhape of paper. i^ BOOK muft immediately return filver. When this fuperfluous paper was converted into gold and it they could eafily find a ufe for could find none while it by fending it abroad. continually returning upon them filver. as they are in the expence of replenlfhing thofe cofl"ers as fafl: emptied by anfwering fuch occafional demands. filver. : . if they fhowed any. There would immediately. at all times in its cofi^ers. accountants. ought to at all employed excefs is the circulation of the country. &c. its for anfwering the occafional demands it of the holders of lofes the interefl : notes. to a much greater extent j the alarm. fecondly. a large fum of money. upon the banks to be exchanged foe gold and Many home. above the expences which are common to every trade. which this would occafion. A BANKING company which in ifliies more paper than can be and of which the for payment. which they keep to this times in their not only in proportion but in a exceflive j increafe of their circulation. they would immediately demand payment of from the banks. Over and branch of of fervants. increafe the quantity of gold and coff'ers.

which the circulation of the country can eafily abforb to forty this and employ. in order to find that profitable employment which enhance it cannot find filver. ought to increafe the firft article of their expence. therefore. much The be filled coffers of fuch a company too. and that for anfwering occafional all demands. only in proportion to this forced increafe of their bufinefs. though they ought to empty themfelves much fafter than if their bufinefs was confined within more reafonable bounds. the four thoufand pounds eafily abforb v/hich are over and above what the circulation can 3 A 2 and . new gold and fo filver in order which empty themfelves veiy rapidly. It cannot be employed in the circulain place tion of the country. amounts thoufand pounds . in finding to replenifti thofe coffers. times in this its coffers ten thoufand pounds in gold and to circulate forty-four thoufand Should bank attempt pounds. not C H a p. But as that coin muft. muft. to 3^3 therefore.THE WEALTH OF NATIONS. it too. and muft require. bank is obliged to keep at filver. Let exadly us fuppofe that all the paper of a particular bank. Such a company. not only a more violent. in one fhape or another. Such a company. comes of a paper which is over and above what can be employed in that circulation. in proportion to this forced in- creafe of their bufinefs. the excefs of their quantity. be fent abroad. at home . fuller. increafe the fecond article of their ftill expence more than the firft. large The coin too. muft neceffarily ftill fur- ther the expence of the bank. but in a greater proportion. which is thus continually drawn fuch quantities from their coffers. it and is therefore over and above what can be employed in will not be allowed to lie idle. but a more conflant and yet mufl: much uninterrupted exertion of expence in order to replenilh in them. and this continual exportation of gold and by enhancing the difficulty.

cent. therefore. have been overftocked with paper money. after iffued in coin at 3I. in order to be of which the excefs was continually returning. ftate fifty For this the bank (in confe- quence of the worn and degraded into which the gold coin to purchafe gold had fallen a few years ago) was frequently obliged bullion at the high price of four pounds an ounce. which it foon 17 s. own and the circulation has frequently been overftocked with paper money. iftiiing too great a quantity of paper. this liberality of government did not prevent altogether the expence of the bank. By filver.• 64 THE NATURE AND CAUSES OF and employ. Had every particular banking its company always underftood and the circulation never could attended to own particular intereft. at all times in its bank ought to keep cofFers. lofing in this manner between two and age of fo a half and three per the upon the coin- very large a fum. though the government was properly expence of the coinage. thus gain nothing by the intereft of . 10 d. the four thoufand pounds exceffive circulation and it will lofe the whole expence of continually collecting four thoufand pounds in gold and faft as filver which will be continually going out of its cofFers as they are brought into them. Though bank therefore paid no at the feignorage. not eleven It will thoufand pounds only. will return upon it almoft as faft as they are iflued.^ an ounce. but four- teen thoufand pounds. about eight hundred and great coinage. at an average. exchanged for gold and years together obliged to the bank of England was for many coin gold to the extent of between eight hundred thoufand pounds and a million a year. or thoufand pounds. this For anfwering occafional demands. The . But every particular to its banking company has not always underftood or attended particular intereft.

coffers an additional expence cent. to colled 365 C Scotch banks. and infured by the of three quarters per pounds. employ this ruinous The their gold coin which was paid out either by the bank of England. paying always the in- and Gommiflion upon the whole accumulated fum. what could be employed in that circulation. from the diftrefs into their exceflive circulation had thrown them. upon fome other bills correfpondents in London or rather for the fame fum. upon the fame. were obliged. The kind. fold to the .THE WEALTH OF NATIONS. at employ conftantly agents at London money an expence which was feldom below one and a half or two per cent. and the fame fum. fome of thofe banks. to draw upon their correfpon- dents in London the bills of exchange to the extent of the fum which thofe they wanted. was fometimes fent abroad in the fliape of coin. This money was fent down carriers at by the waggon. abroad in the fliape of bullion. this had fometimes no other means of fecond fett fatisfying draught but or by drawing a of bills either . together with the intereft and a commiffion. would in this manner make fometimes more than bank. two or three journies. in exchange for that part of paper which was over and above what could be employed being likewife over and above in the circulation of the country. were fometimes obliged refource. In cafe the refource of the banks was. When correfpondents afterwards drew this upon them which for payment of fum. or by the Scotch banks. tereft the debtor. fometimes melted down and fent and fometimes melted down and the bank of England at high price of four pounds an . or fifteen {hillings on the hundred to Thofe agents were not always able faft replenifh the this of their employers fo as they were emptied.to for them. all in confequence of an excefs of the fame HA p. Even their thofe Scotch banks which never diftinguiflied themfelves to by extreme imprudence.

and while they remained heavy pieces were of no more value in the fliape of coin. inftead of growing better and better. was the original caufe of this exceffive circulation of paper money. whatever the neceffary vacuities this exceffive circulation occafioned in coin of the kingdom. became every Every year they themfelves under the neceffity of coining nearly the fame quantity of gold as they had coined the year before. fcarcity notwithftanding that great annual coinage. at The bank of England. tinual rife and from the conconfequence of the in the price of gold bullion. by fupplying its The own a with coin. and either fent abroad or melted At home. found to their aftonifhment.366 THE NATURE AND CAUSES OF an ounce. its But the bank of England paid very imprudence. the and new coin which was every ftate year iffued of the coin. paid of them very dearly for own imprudence and inattention. • What . coffers it is to be obferved. The their Scotch banks. than the light : But they wereof more value abroad. thofe the heavieft. the bank of England was all obliged to fupply them. and the befl pieces ' ' only which were carefully picked out of the whole coin. the expence of this great annual coinage became every year greater and greater. of coin as there there was every year the fame year before. no doubt. is indiredly obliged to fupply the whole kingdom. down their into bullion. not only for own all much greater imprudence of almoft the Scotch banks. down. bank of England. continually into which coin is flowing from thofe coffers in great variety of ways. or when melted home. year worfe and worfe. Whatever coin therefore was wanted to fupport this exceffive circulation both of Scotch and Englifh paper money. in continual wearing and clipping of the coin. had been from the found the and that notwithftanding the great quantity of good bank. The over-trading of fome bold projectors in both parts of the united kingdom. but for the dearly. It BOOK *—— was the neweft.

when it it becomes due. and in ready money for anfweroccafional ing demands. and which. though a ftream out. is refemble a water pond. for replenilhing the coffers of fuch A MERCHANT. occafioa for a difcount. without ovcr-trading.. befides difcounting his occafions. or very near equally full. is really paid by that debtor. only advances to to him a part of the value. fuch bills. gold and if filver. together with the far as its intereft. trades. may frequently have to fum of ready money. and If the paper it ready money the for anfwering occafional demands. bank the value of what had ' advanced. of a piece-m?al repayment as the money comes in frcii^ . The coffers of the bank. advances him and likewife accepts upon fuch fums upon his cafh account. from which. When as it a bank difcounts to a merchant a real bill of exchano-e as fooii drawn by a real creditor upon a real debtor. (o dealings are confined to fuch cuftomers. without any further care or attention. it becomes due. no expence can ever be neceflary a bank. circulation can never exceed the quan- tity which the of the country can eafily abforb and employ. part of that capital but that part of to keep which he would otherwife be obliged in by him unemployed. either the whole capital with even any confidcrable only. can never exceed the value of the the country which would neceffarily circulate in it there was no paper money. money which bank advances never exceeds this value. yet continually running another Is continually running in. Little or pond keeps always equally. the fo that. which he would otherwife be obliged keep by him unemployed.THE WEALTH OF NATIONS. replaces to The the payment of the bill. or it not. What which he a bank can with propriety advance to a merchant or is S^. fully equal to that which runs out. even when he has no a bills When bank. ^ ^^ ^^ ^ ^ ^• ' undertaker of any kind.

on the contrary. commonly the receives from them. at continue is to deal with it manner. accordingly. which to If. the fum of the repayments from cuftomers it certain other falls commonly very much it fhort of the advances which makes to them. thofe coffers muft foon be exhaufted altogether. five. unlefs they are repleeffort by fome great and continual of expence. are likely to be always equally or very near equally full and fcarce If. that at leaft which is continually running into them muft be equally large. The its ftream is which in this cafe continually that running out from coffers neceffarily much larger tban which niftied is continually running in. fully to this of the advances. and in ready money for anfwering occafional demands. whether in the of fome period (of four. it or not. in deal- with fuch cullomers. were for a long time very careful to require frequent and regular repay7 ments . BOOK i._ upon the eafy terms of the I. When fuch demands adually come upon him. them. the repayments is or eight months. fully to equal that of the advances which courfe commonly makes periods. the neceffity of keeping it difpenfes his flock him entirely from any part of by him unemployed. he can anfwer them fufficiently ing' from his cafli account. The banking companies of Scotland. fo that without any further care or attention thofe coffers . fo that. the within of fuch fhort the fum of re- payments from equal to that certain cuftomers it upon moft fafely occafions. Though the ftream coffers which in continually running out from its may be very large._. fix. ought courfe obferve with great attention. however. may continue is deal cafe with fuch cuftomers. ever to require any extraordinary expence to replenifh them. to The fliort bank. is. for example) the it fum of is. bankhig companies of Scotland.3^3 THE NATURE AND CAUSES OF fi-om the occafional fale of his goods. cannot leaft with any fafety continue to deal if they with fuch in this cuftomers.

perhaps five hundred is and of which the attention different kind.different people. befides faving almoll entirely the extraordinary ex- pence of replenifhing their fiderable advantages. who did not make. I. the banking companies of Scotland had probably this advantage in view. and did not care to deal with any perfon. tolerable by this attention they the were enabled thriving or to make fomc cir- judgment concerning their declining cumftances of for debtors. either himfelf or his agents. befides without being obliged to look out any other evidence . which lends money . moderate periods of time the repay- ments of a particular cuftomer were upon moft occafions equal to the advances which they had 3 made to him. continually occu- pied by objeds of a very can have no regular circumftances information concerning the conduit and its of the it. Secondly. they gained two other very con- First. greater part of debtors beyond what its own books afford all their In requiring frequent and regular repayments from cufto- mers. cofl'ers. obferve and enquire fituation of to both conftantly each of them. may. they might be Vol. according as their circumftances are either thriving or declining.THE WEALTH OF NATIONS. by culation of this attention they fecured themfelves from the cir- the poffibility of iffuing the more paper money than what country could eafily abforb and employ. By this attention. that within When fully they obferved. A private man who lends out his money by and to perhaps half a dozen or a dozen of debtors. what they called. carefully into the condudl and But a banking company. whatever might be his fortune or credit. what their own books afforded them in men being for the mofl: part either regular or irregular their repayments. frequent and regular operations with them. ments from all their 3C9 cuftomers. B .

by means of the fame tinually running out.S70 THE NATURE AND CAUSES OF be aflured that the paper money which they had advanced to BOOK t him. and the money would immediately have returned upon the . filver which would have had there been no paper money. regularity and amount of part of his repayments their fufficiently demonflrate that the amount of his advances at no time exceeded that capital which he would otherwife have been obliged to in for keep by him. he would have been obliged keep by him for anfwering occafional demands. The advances of the bank paper. to the ftream which. frequency. confequently. and that. filver which (the commerce being fuppofed the fame) would have circulated in the country had there been no paper money. If the advances of the his capital. had not at any time exceeded the quantity of gold and circulated in the country. and confequently excefs of this paper to exceed the quantity which the cir- culation of the country could eafily abforb and employ . that purpofe of keeping the It is this part is of his in conftant employment. ordinary amount of its advances. The ftream by means of his dealings. occafional reft unemployed ready the money for anfwering demands capital . within moderate periods of time. bank had commonly this the ordinary amount of of time. could not have been equal dealings. was continually was con- running into the coffers of the bank. by ejcceed- ing the quantity of gold and filver which. money. in the (hape of continually returning to every dealei* coin. within moderate periods have equalled which. filver -^- _ had not at any time exceeded the quantity of gold and to which he would otherwife have been obliged for anfwering occafional keep by him paper demands . his repayments the could not. the money. might foon come to exceed the whole quantity of gold and. which they had circulated by his means.. had there been no to fuch advances. The would had and is. whether paper or exceeded part of and continually going from him in the fame fhape. of his capital only which.

gone thus fafety. cafes much even flower than thofe of the circulating capital 3 and fuch expences. who. A bank cannot. &c. far. the creditable traders of any country can be difpenfed from the neceffity of keeping any part of their ftock by them. cannot. This fecond advantage.. intereft. draining. though continually returning to him in the fhape of money. with all their neceffary fixed appendages of capital &c. his from the whole of the out-goings. of the circulating capital with which he trades that capital is becaufe. and the repayments could not equal the fum of its advances fuit the within fuch moderate periods of time as Still lefs conveniency of could a bank afford to advance . in erecting engines for drawing out the water. . enclofing. &c.THE WEALTH OF NATIONS. employs ereding his the forge and fmelting-houfe. dwelling-houfes of his workmen. filver. the 371 ^ ^\^^ Ji. partly partly that of by the conveniency of difcountlng cafh bills. of the capital which the perfon land who undertakes to improve employs in clearing. B 2 . of the capital which the undertaker of a mine employs in finking his fhafts. all ploughing wafte and uncultivated in building farm-houfes. confidently with their when they have own intereft and with its go farther. him any conwhich the unin fiderable part of his fixed capital of the capital dertaker of an iron forge. expe£t for anfwering occafional demands. can reafonably no further afliftance from banks and bankers. by all the different banking companies of Scotland as the When. though equally was not perhaps fo well underftood firft. in making roads and waggon- ways. manuring and granaries. fields. confiftently own advance to a trader the whole or even the greater part . flables. for example. yet the whole of the re- fum of a bank. and going from him in the fame turns is too diftant fl:iape. his work-houfes and warehoufes. and by accounts. unemployed and they in ready money. ''• bank in order to be exchanged for gold and real. The returns of the are in ahnoft .

be fufficient to enfure.372 S THE NATURE AND CAUSES OF ^^ °tP fiven when laid out with the greateft prudence and judgment. and which accepts of repayment upon. in this cafe. indeed. attornies fees for drawing bonds and mortgages. what the country could eafily abforb and employ. great propriety. na doubt. A bank. In juftice to their creditors. furely. return to the undertaker years. be a very convenient creditor to fuch traders and undertakers. till very feldom. to employ the and who are upon that account good willing. pai-t no doubt. and which it is meant fhould ought not to not be repaid after a period of feveral years. or rather circulation of was fomewhat more than the fully equal. after a period of many with a period by far too cjiftant to fuit the conveniency of a bank. be borrowed of a bank. of fuch private people as propofe to live upon the intereft of their money. carry on a very confiderable of their projects with borrowed money. be mofl Inconve- It is now more iffued than five and twenty years fince the paper money was to by the different banking companies of Scotland fully equal. fuccefs of the projedl: fhould fall very much this fhort of expedation of the the projedors. their to own may capital ought. to lend that capital to fuch people of credit as are likely ta its keep it for feveral years. But fuch traders and undertakers would.. would. had fo long ago given the affiftance to the traders and other undertakers of Scotland which . all Thofe companies. without taking the trouble themfelves capital . the eafy terms of the banking companies of Scotland . the capital of thofe creditors or to render it ex- tremely improbable that thofe creditors Ihould incur any lofs. Traders and other undertakers may. nient debtors to fuch a bank. however. .. if I fay fo. which lends or of money without the expence of flampt paper. even though the the too. is Even with precaution money which till borrowed. therefore. but ought to be borrowed upon bond or mortgage.

expedient which. The banks. yet as effedually as the utmoft extenfion of bank credits could have done. ever. extend their proportion to the extenfion of the trade of the countrade. either to own projedts beyond what they could with their own capital. for to banks give. The howto were of a different opinion. and profits to it the courfe when the high is of trade afforded a great temptation to over-trading. The pra£tice in of raifing money during manner had been long known of the late war. confidently with ^ HA P. could extend' their credits to whatever fum might be wanted. fclves They had lofs. having got much affiftance from banks and bankers. for fome of a traders had recourfe an time. fo Thofe traders and other undertakers. the which unfortunate traders have fometimes recourfe when they are upon in the this brink of bankruptcy. and bankers. without incurring befides that of a any other expence few reams of paper. the try. meaning. The honour all bound to fupply and to provide them with banks. which in this particular bufinefs never fails attend the fmallefl: degree of over-trading. faid have been carried on to a very great extent. which their it 37c is poffible intercft. they feem to have thought. than the well-known to fhift This expedient was no other fliift of drawing and redrawing. carry credit borrow of private people in the ufual way of bond or mort- gage. over-traded a Httle. which did credits in they faid. From England was brought . ferved their purpofe. though at a much greater expence. and had brought upon themat leaft or that 'of profit. feem to have thought. wifhed they to get ftill "more. diredors of thofe banks. England. own that They had even done fomewhat diminution to more. no doubt. fpirit They of the complained of the contraded views and daftardly not. or with what they had banks. and thofe upon their refufing to extend their credits. were in the deficiency. the capital which they wanted to trade with.THE WEALTH OF NATIONS. by the extenfion of that extenfion of their on.

where. it it was foon carried on to a much greater extent than ever had been in England. have bills extraordinary privileges to of exchange.374 ^ Ht^ '' THE NATURE AND CAUSES OF ^^ brought into Scotland. the came ment. to it the perfon who prefents it acceptor for pay- had palled through the hands of feveral other perfons. if he does not If before it immediately pay becomes likewife a to bankrupt. to exprefs that each of all them had ' in his turn received thofe contents. had is. he becomes from that moment a bankrupt. The bill is protefted. that it and re-drawing is fo well known into men of may But perhaps be thought unneceflary as this give any <iccount of it. book may come the hands of as many of people who are not men of bufmefs. and which during the courfe of the two all laft centuries have been adopted into the laws of given fuch is European nations. who. than upon any other fpecies of obligation fo (hort a period as efpecially when they are made payable within after their date. which were eftablifhed when the barbarous laws of Europe did not enforce the performance of their contradls. each endorfer becomes turn liable to the owner of . The to all to pradice of drawing bufinefs. upon them. of them in their order endorfed. it two or three months If when it the is bill becomes due. and returns upon the drawer. the acceptor does not pay as foon as prefented. that money more readily advanced . and to the very moderate capital of the country. I ihall endeavour to explain as diftindly as I can. that written their names in his upon the back of the bill. it. contents of it •who had fucceffively advanced to one another the either in money or goods. in proportion to the very limited ' « commerce. The cuftoms of merchants. and trade the efFe(fls this pra£lice upon the banking even it are not perhaps generally underflood by men of bufinefs them- felves. and who.

we fhall fuppofe. . upon A in Edinburgh who again. of them. falls it is a chance if they crazy. be perfons of doubtful credit. draws a bill upon London. before the expiration of this bill two months. and. fix This commiffion being repeated more than by this times in the year. for thofe contents. to himfelf. payable two months not after This pradice has fometimes gone on. payable likewife two months months. yet fecurity to the the fliortnefs of the date gives fome bill. The will houfe weary and will not ftand very long but it is a chance if in it to-night. to fleep to- night. for the fame fum. Edinburgh an- bill. payable likewife two months the firfl: after B accordingly. . re-draws before bill . on each draught. the former bills. whatever money ' A might raife exper. bill fliould. fays a . payable two months to after date. other after date and before the expiration of the third two re-draws B in London alfo upon A in date. but for feveral the bill always returning upon A in in Edinburgh. he becomes from that moment a bankrupt. with the and a commilTion. the expiration in draws a fecond upon B of the fecond two months* London. all with the accumulated interefl and commiflion of per cent. if he fails to pay. The intereft was lefs five the 1 year. together bill. of the too bill 375 C H a p. therefore. pedient muft necefl*arily have coft I him fomcthing more than eight: . years together. another date. and endorfers of the flill Though all the drawer. The B in trader A in Edinburgh. A in Edinburgh that but he agrees to accept upon condition before the term of payment he redraw upon interefl A in Edinburgh. ac- c^y—-^ ceptor. In reality B in London owes nothing of A's fhall bill.THE WEALTH OF NATIONS. and I venture. and the commiflion was never than one half per cent. owner of the Though is all of them all may be become traveller it very likely to become bankrupts fo in fo fhort a time. only for feveral months.

376

THE NATURE AND CAUSES OF
per cent, in the year, and fometlmes a great deal more
' ;

BOOK
«

wheii

->.

either the price of the commifTion

happened

to rife, or
intereft

when he was
circula-

obliged to pay

compound

intereft

upon the

and commifTion

of former
tion.

bills.

This practice was

called raifing

money by

In
ten

a country where the ordinary profits of {lock in

the greater

part of mercantile projeds are fuppofcd to run between fix and

per cent.

;

it

mufl:

have been a very fortunate fpeculation

of which the returns could not only repay the enormous expence
at

which the money was thus borrowed
befides,

for carrying

it

on

;

but

afford,
vaft

a

good furplus

profit

to

the

projedor.

Many

and extenfive projeds, however, were undertaken, and for

feveral years carried
befides
tors,

on without any other fund
this

to

fupport them

what was

ralfed at

enormous expence.
dreams the
mofl;

The

projec-

no doubt, had
this

in their golden

diftind vi-

fion of
at the

great profit.
their projeds,

end of

Upon their awaking, however, either or when they were no longer able to
I

carry

them
it

on, they very feldom,

believe,

had the good fortune

to find

*^

The
*

The method

defcribed in the text was by no

means

either the
raifed

moft

common

or the

moft expenfive one in which thofe adventurers fometimes
It frequently
bill ot

happened that A exchange by drawing,

in

a
in

Edinburgh would enable B in few days before it became due, a fecond

money by circulation. London to pay the firft
bi
I

at three

months date upon the fame

B

London.
its

This

bill,

being payable to
bills

his

own

order,

A

fold in

Edinburgh

at

par; and with

contents purchafed

upon London payable

at light to the order

of B, to

whom

he fent them by the poll.

Towards

the end of

the late war, the exchange between Edinburgh and
cent, againfl Edinburgh, and thofe
bills at fight

London was

frequently three per

muft frequently have coft
at leaft

A

that pre-

mium.

This tranfadlion therefore being repeated
at leaft

four times in the year, and
repetition,

being loaded with a comniiffion of
at that period

one half per cent, upon each
year.

muft

have coft

A

at leaft

fourteen per cent, in the

At other

times

A
it

would enable

B

to difcharge the

firft bill

of exchange by drawing, a few days before
not

became due,

a fecond bill at

two months date;

upon D,

but upon

fome

third

perfon,

THE WEALTH OF NATIONS.
Edinburgh drew upon B in London, he regularly difcounted two months before tlicy were due with fome
bills

377

The

which

A

in

CHAP,

bank or banker
re-drew upon

in

Edinburgh

;

and the

bills

which

B

in

London
Lon-

A

in Edinburgh, he as regularly difcounted either

with the bank of England,
don.

or with fome other bankers in

Whatever was advanced upon fuch

circulating bills was, in

Edinburgh, advanced in the paper of the Scotch banks, and in London, when they were difcounted at the bank of England, in
the paper of that bank.

Though
all

had been advanced, were
as they

this paper of them repaid in their turn as foon

the bills

upon which

became due
firft

;

yet
bill,

the value

which had been
really returned
bill

really ad-

vanced upon the

was never

to

the banks

which advanced
bill

it;

becaufe before each
to

became due, another

was always drawn

fomewhat
;

a greater

amount than the

bill

which was foon

to be paid

and the difcounting of

this other bill

was

eflentially

neceflfary

towards the payment of that which was
1

foon to be due.
tious.

This payment, therefore, was a

together

fidti-

The

ftream,

which by means of thofe circulating
to

bills

of

exchange, had once been made

run out from the
really

coffers

of the

banks, was never replaced by any flream which

run into them.

psrfon, C, for example, in

London.
it

of B, who, upon
?.nd
bill,

its

being accepted by

This other bill was made payable C, difcounted it with fome banker
it

to the order

A

enabled

C

to difcharge

by drawing, a few days before

in London became due, a third

likewife at

two months date, fometimes upon
fifth

his firftcorrefpondent

B, andfometimes

upon fome

fourth or

perfon,

D

or E, for example.
as
it

This

third

bill

was made payit

able to the order of

C

;

who,
in

as foon

was accepted,

difcounted

in the

fame
times

manner with fome banker
in the year,

London.

Such operations being repeated
at
leaft

at leafl fix

and being loaded wiih a commiffion of

one half per cent, upon

each repetition, together with the legal intereft of five per cent, this method of raifinomoney, in the fame manner as that defcribed in the text, muft have cofl A fomethin^

more than
and London
but then
it

eight per cent.
it

By

faving, however, the

exchange between Edinburgh
this

was

lefs

expenfive than that mentioned in the foregoing part of

note;

required an eftabliflied credit with

more houfes than one
it

in

London,

an

advantage which

many

of thefe adventurers could not always find

eafy to procure.

Vol. L

3

C

The

378

THE NATURE AND CAUSES
The
>-

OF
bills

BOOK
'

paper which was

iffiied

upon

thofe

circulating
to

of

exchange,

amounted, upon many occafions,

the

whole fund

deftined for carrying
culture,

on fome
or

vafl:

and extenfive projed of agri;

commerce,
it

manufadures

and not merely

to

that

part of

which, had there been no paper money, the projedor

\vould have been obliged to keep by him, unemployed and in ready

money
this

for

anfwering occafional demands.

The

greater part of

paper was, confequently, over and above

the

value

of the

gold and filver which would have circulated in the country, had
there been no paper money.
It

was over and above,

therefore,..

what the
ploy,

circulation

of the country could eafily abforb and emaccount,

and,

upon

that

immediately rettirned upon the
filver,

banks in order

to be as

exchanged for gold and
could.
It

which they
which
thofe

were

to

find

they

was

a

capital

projedors had very artfully contrived to draw from thofe banks,
not only without their knowledge or deliberate confent, but for

fome time, perhaps, without
that they had really advanced

their
it.

having the moft diftant fufpicioa.

When
he
mufl;

two people, who

are continually drawing and re-drawing^
their bills

upon one another, difcount

always with the fame banker,
fee clearly

immediately difcover what they are about, and

that

they are trading, not with any capital of their own, but with

the capital which he advances to them.

But

this difcovery is not al-

together fo eafy

when

they difcount their

bills

fometimes with one
the fame two per-

banker, and fometimes with another, and
fons do not conftantly

when

draw and re-draw upon one another, but

occafionally run the round of a great circle of projedors,
it

who

find

for their intereft to
to

affifl:

one another in

this

method of

raifing

money, and

render

it,

upon
real

that account, as diificult as pof-

fible to diftinguifh

between a

and a fiditious

bill

of exchange;

between a

bill

drawn by

a real creditor

upon

a real debtor, and a
bill

THE WEALTH OF NATIONS.
bill

379
the

for

which there was properly no
it
;

real

creditor

but

bank

^ "

'^

P.

which difcoimtcd

nor any real debtor but the

projector

who
this

made

ufe of the

money.

When

a banker had even made
it

difcovery, he

might fometimes make

too

late,

and might find

that he had already difcounted the bills of thofe projedors to fo

great an extent, that
necefliuily

by refufing
all

to difcount

any more, he would

make them
he might

bankrupts, and thus, by ruining them,

might perhaps ruin himfelf.
therefore,
to
find
it

For his

own

interefl

and

fafety,

neceflary, in this very perilous fituation,
to

go on for fome time, endeavouring, however,

withdraw
and

gradually, and

upon

that account

making every day

greater

greater difficulties about difcounting, in order to force thofe projectors

by degrees

to

have recourfe, either

to other

bankers, or

to

other methods of raifing

money;

fo

as that

he himfelf might,

as

foon as poffible, get out of the

circle.

The

difficulties,

accordingly,

which the bank of

England,

which

the

principal

bankers

in

London, and which even the more prudent Scotch banks began,
after a certain time,
far,

and when

all

of them had already gone too
only alarmed, but

to

make about
this

difcounting, not
thofe

enraged

in the higheft degree

projedors.

Their

own

diftrefs,

of

which

prudent and neceflary referve of the banks, was, no

doubt, the immediate occafion, they called the diftrefs of the country;

and
to

this

diftrefs

of the country, they

faid,

was altogether

owing

the ignorance, pufillanimity, and

bad conduit of the

banks, which did not give a fufficiently liberal aid to the fpirited

undertakings of thofe

who

exerted themfelves in order to beautify,
Tt

improve, and enrich the countfy.

was the duty of the banks,

they feemed to think, to lend for as long a time, and to as great

an extent as they might

wifli

to

borrow.

The

banks, however,

by refufing in

this

manner

to give
ileal

more

credit to thofe, to

whom
by

they .had already given a great

too

much, took the only method

3

C

2

8o

THE NATURE AND CAUSES OF
by which
it

BOOK

was now

pofiible to fave either their

own

credit, or the

public credit of the country.

In the midft of

this

clamour and

diftrefs,

a

new bank was

efta-

bliftied in Scotland for the exprefs

purpofe of relieving the
j

diftrefs

of the country.

The
were

defign

was generous

but .the execution

was imprudent, and the nature and

caufes of the diftrefs

which

it

meant

to relieve,
liberal

not, perhaps, well undcrftood.

This bank

was more
eafti

than any other had ever been, both in granting

accounts, and in difcounting bills of exchange.
it

Whh

regard

to

the latter,

feems to have made fcarce any diftindion between
bills,

real

and circulating

but to .have difcounted

all

equally.

It

was the avowed

principle

of

this

bank

to advance,

upon any

rea-

fonable fecurity, the whole capital which was to be employed in thofe

improvements of which the returns are the moft flow and
fuch as the improvements of land.

diftant,

To promote fuch improvements
granting
cafti

was even
which
and
it

faid to

be the chief of the publlck fpirited purpofes for

was

inftituted.
bills-

By

itS'

liberality in
it,

accounts,

in difcounting
its

of exchange,

no doubt,

iflued great

quantities of

bank-notes.

But thofe bank-notes being,

the

greater part of them, over and above

what the

circulation of the
it,

country

could

eafily

abforb

and employ,
filver,

returned upon
as faft

in

order to be exchanged for gold and
iffued.
Its

as

they were

coffers

were never well

filled.

The

capital

which had

been fubfcribed
to

to this

bank

at

two

different fubfcriptions,

amounted

one hundred and fixty thoufand pounds, of which eighty per
only was paid up.

cent,

This fum ought

to

have been paid in

at feveral different

inftalments.
firft

A

great part of the proprietors,

when

they

paid in their

inftalment,

opened a cafh account

with the bank; and the dire£tors, thinking themfelves obliged to treat their own proprietors with the fame liberality with which they
5)

treated

THE WEALTH OF NATIONS.
treated all other
cafli

381
this

men, allowed many of them
all

to

borrow upon
fubfequent
coffer,

account what they paid in upon

their

inftal-

ments. Such payments, therefore, only put into one
the
this

what had
coffers

moment before been taken
bank been
filled

out of another.
its

But had the

of

ever fo well,

exceffive

circulation

muft

have emptied them

fafter

than they could have been repleniilied

by any other expedient but the ruinous one of drawing upon Lon^
don,

and when the

bill

became due, paying
very

it,

together

with
place.

intereft
Its

and commiffion, by another draught upon the fame
having been
filled

coffers

fo

ill,

it

is

faid

to

have been
it

driven to this refource within a very few months after

began

to

do bufinefs.

The

cftates

of the proprietors of

this

bank

we;-e

worth

feveral

millions, and

by

their

fubfcription

to

the original

bond or contract of the bank, were
all
its

really pledged

for anfwering
fo great

engagements.

By means
gave
it,
it

of the great credit which
its

a pledge neceffarily

was, notwithftanding

too liberal
years.

condudt, enabled to carry on bufinefs for

more than two
circulation

When

it

was obliged

to

flop,

it

had

in the

about
fup--

two hundred thoufand pounds in
port the circulation of thofe notes,

bank-notes.

In order to

which were continually returniffued,
it

ing upon
in

it

as

fail

as

they were
bills,

had been

conftantly

the

pradice of drawing

of

exchange

upon London, of

which the number and value were continually increafing, and, when it ftopt, amounted to upwards of fix hundred thoufand pounds.
This bank, therefore, had,
years,
in little

advanced

to

different

more than the courfe of two people upwards of eight hundred

thoufand pounds

at five per cent.

Upon

the two hundred thoufand

pounds which

it

circulated in bank-notes, this five per cent, mighfi

perhaps, be confidered as clear gain, without any other dedudion
befides the expence

of management.

But upon upwards of
it

fix

hundred thoufand pounds, for which

was continually drawing
bills

382

THE NATURE AND CAUSES OF
bills

BOOK
i_

of exchange upon London,

it

was paying,

in the

way of

in-

tereft

and commlffion, upwards of eight per

cent,

and was confe-

quently lofing more than three per cent, upon more than threefourths of
all its

dealings.

_

The
who

operations of this bank feem to have produced effeds quite

oppofite to thofe which were intended

by the
to

particular perfons

planned and direded

it.

They feem
for as

have intended to fupthemi

port the fpirited undertakings^

fuch they confidered

which were
try
;

at that

time carrying on in different parts of the coun-

and

at the

fame time, by drawing the whole banking bufinefs
all

to themfelves, to fupplant

the other Scotch banks

;

particularly

thofe eftablifhed at Edinburgh,
bills

whofe backwardnefs

in difcounting

of 'exchange had given fomc offence.

This bank, no doubt,
and enabled them

gave fome temporary
to carry

relief to thofe projedors,

on

their

projeds for about two years longer than they

could otherwife have done.
get fo

But
fo

it

thereby only enabled them to

much

deeper into debt,

that

when

ruin came,
their

it

fell

fo

much

the heavier both

upon them and upon
therefore,

creditors.

The

operations of this bank,

inftead of relieving, in reality

a'ygravated in the long-run the diftrefs

which thofe projectors had
It

brought both upon themfelves and upon their country.
been

would have

much

better for themfelves, their creditors

and

their country,

had the greater part of them been obliged
than they actually did.
this

to flop
relief,

two years fooner
however,

The temporary
projedors,

which

bank afforded

to thofe

proved a real and permanent
bills

relief to the other

Scotch banks.
thofe other

All the dealers in circulating

of exchange,

Vy'hich

banks had become

fo

backward in
re-

difcounting, had recourfe to this

new

bank,

where they were
therefore,

ceived with

open arms.

Thofe

other

banks,
circle,

were

enabled to get very eafily out of that fatal
could
1

from which they

ot otherwife

have difengaged themfelves without incurring
a con-

THE WEALTH OF NATIONS.
a confiderable
credit.
lofs,

^^^
C

and perhaps

too

even

fome

des-ree of dif-

H a
If,

P.

In the long-run, therefore, the operations of this

bank

increafed
;

the real

dilrrefs

of the

country

which

it

meant

to relieve

and
it

effedually relieved from a very great diflrefs thofe rivals

whom

meant

to fupplant.

At

the

firft

fettlng out
faft

of this bank,
its

it

was the opinion of fome
it

people, that

how

foever

coffers

might be emptied,
fecurfties

might

eafily replenifli

them by raifmg money upon the
its

of thofe
foon

to

whom

it

had advanced

paper.

Experience,

I believe,

convinced them that this method of raifing

money was by much
which originally
fo

too flow to anfwer their purpofe; and that coffers

were

fo

ill

filled,

and which emptied themfelves

very

faft,

could

be replenifhed by no other expedient but the ruinous one of drawing

upon London, and when they became, due, paying them by other draughts upon the fame place with accumulated intereft and
bills

commiffion.
raife

But though they had been able by
as fafl as

this

method

to

money

they wanted
lofs

it

;

yet inftead of

making a
;

profit,

they muft have fuffered a

by every fuch operation
as a

fo

that in the long-run they
cantile

mufl have ruined themfelves
perhaps,

mer-

company, though,

not fo foon as by the

more
ftill

expenfive pradice of drawing and re-drawing.

They

could

have made nothing by the

intereft

of the paper, which, being over

and above what the and

circulation

of the country could abforb and

.employ, returned upon them, in order to be exchanged for gold
filver,

as faft as they ifRied

it

;

and for the payment of which

they were themfelves continually obliged to borrow money.
the contrary, the whole espence of this borrowing,

On

of employing
of negoaffign-

agents to look out for people

who had money

to lend,

ciating with thofe people, and of
I

drawing the proper bond or

menfj.

n-S^

.THE NATURE AND
mcnt, muft have
lofs

CAUSES OF
fo

BOOK

fallen

upon them, and have been

much

clear

upon

the balance of their accounts.

The projed of

replenifh-

ing their coffers in this manner

may

be compared to that of a

man

^vho had a water-pond from which a ftream was continually running
out,

and into which no ftream was continually running, but
it

who

propofed to keep
people to
g'o

always equally

full

by employing a number of

continually with buckets to a well at fome miles diftance
repleniflii
it.

in order to bring water to

But

though

this

operation had proved,

not only pradicable,

but profitable

to

the

bank

as a mercantile

company;
but,

yet the

country could have derived no benefit from
trary,

jt;

on the conThis ope-

muft have fuffered a very confiderable

lofs

by

it.

ration could not

augment
It

in the

fmalleft degree

the quantity of
this

money
a
fort

to

be

lent.

could
office

only
for

have
the

ereded

bank

into

of general
to

loan

whole

country.

Thofe
But

who wanted

borrow, muft have applied to this bank, inftead of

applying to the private perfons
a -bank which lends money,
people, the greater part of
about,
debtors,
is

who had
its

lent
to

it

their

money.

perhaps,

five

hundred different

whom

diredors can
in

know

very

little

not likely to be more judicious

the

choice of

its

than a private perfon

who

lends out his
in

money among

a few people

whom

he knows,

and

whofe fober and frugal
to

condud he thinks he has good reafon of fuch a bank, as that whofe condud
account
rical
of,

confide.

The
to

debtors

I

have been

giving fome

were

likely,

the greater part of them,

be chimebills

projectors,

the drawers

and re-drawers of circulating
the

of exchange,

who would employ
all

money

in extravagant

under-

takings, which, with

the affiftance that could be given them,

they would probably never be able to complete, and which, if they fhould be completed, would never repay the expence which

£hey had really

coft,

would never

afford a fund capable of

maintaining

THE WEALTH OF NATIONS.
tainlng a quantity of labour equal
to

38^

that

which had been em-

ployed
perfons,

about them.

The

fober

and frugal debtors of private
likely to

on the contrary,

would be more

employ the

money borrowed
to

in fober undertakings

which were proportioned
lefs

their

capitals,

and which,

though they might have

of

the

grand and the marvellous,
profitable,

would have more of the

folid

and the
ever had

been

laid

which would repay with a large profit whatout upon them, and which would thus afford a

fund capable of maintaining a much greater quantity of labour thaa
that

which had been employed about them.
therefore,

The

fuccefs

of

this

operation,

without increafing in the

fmallefl:

degree the

capital of the country,
it

would only have transferred a great part of
imprudent and unprofitable un-

from prudent and

profitable, to

dertakings.

That
to

the induftry of Scotland langulfhed for
it,

want of money

employ

was the opinion of the famous Mr. Law.
particular kind,

By
to

efta-

blifhing a

bank of a
might

which,

he feems

have

imagined,

iflTue

paper to the amount of the whole value

of

all

the lands in the country, he propofed to

remedy
firft

this

want of

money.
project,

The
did

parliament of Scotland,
not think

when he
it.

propofed his
afterwards
at
thaj-

proper to adopt

It

was

adopted, with fome variations,

by the duke of Orleans,

time regent of France.

The

idea of the poffibility of multiplying
real

paper money to almoft any extent, was the
is

foundation of what

called the MifTifTippi fcheme,

the moft extravagant projed both
that, perhaps,

of banking and ftock-jobbing

the world ever faw.
fo fully, fo

The

different operations of this

fcheme are explained

clearly,

and with

fo

much

order and diftindnefs, by

Mr.

Du

Ver-

ney, in his Examination of the Political Refledions upon

Commerce

and Finances of Mr.

Du

Tot, that

I fhall
it

not give any account of

The by Mr. Law Vol. I.
them.

principles

upon which

was founded are explained

himfelf, in a difcourfe concerning

money and

trade,

3D

which

which has of late been complained of both in Scotland and in other places. making which it had advanced upon 1. to we may believe. vil. in part. 5 manage- . original annuity of 96. the bank advanced and in its into the exchequer. and have. purfuance of an a£t of parliament. This credit. at the rate of eight per cent. and 4000 1. fore. the the fum of 1. its bank had thought neceflarily proper to difcontinue the payment of occafioned their difcredit. advanced to government the fum of one million two hundred thoufand pounds. intereft. muft have been very low. The fplendid.600. a year intereft. qnd bank notes twenty per cent * During the great recoinage of the the filver. dated the 27th of July.1711. 1694. page 301. intereft and 4000 for expence of * James Poflleihwaite's Hiftory of the Publick Revenue.000!. contributed to that excefs of banking. difcount. The credit of the new government.201.000 1. when an was obliged borrow at fo high In 1697 the bank was allowed engraftment of 1.. for an annuity of one hundred thoufand pounds.000!. 10 s.171!. v/hich In purfuance of the 7th Anne.. and fixty per cent. los.001. amounted is faid to at this time to 2. which was going on at this time. fum of 400. raid all c. It by a charter under the at that time great feal. a year for the expence of management. to enlarge its capital ftock Its by an there- whole capital ftock. at In 1696 had been and fifty.386 THE NATURE AND CAUSES OF which he publifhed in Scotland when he firft propofed his projed. engraft- ment tallies have been for the fupport of publick at forty. bank of England It is the greateft in bank of circulation in was incorporated. ftill continue to make an impreffion upon many people. or for 96. notes. but vifionary ideas which are fet forth in that and fome other works upon the fame principles. perhaps.000!. eftablifhed by it the revolution. The Europe.

THE WEALTH OF NATIONS.
management.
good
as that

387

In 1708, therefore, the credit of government was as
fince
it

chap.
^—^,1—

of private perfons,

could borrow at
rate

fix

per

cent, interefl:, the

common
adl,

legal

and market

of thofe times. In
bills

purfuance of the fame
the

the

bank cancelled exchequer
at fix per cent,

to

amount of 1,775,0271. 17 s. jo^-d. and was at the fame time allowed to take in
its capital.

intereft,

fubfcriptions for doubling

In 1708, therefore, the capital of the bank
it

amounted

104,402,3431.; and

had advanced

to

government the fum of

3'375»o-7l' 17s- io^d>

By

a call of fifteen per cent, in 1709, there
I s.

was paid

in and

made

ftock 656,2041.

9d.

501,4481. 12

s.

I

id.

and by another of ten percent, in 1710, In confequence of thofe two calls, therefore,
;

the bank capital

amounted

to 5^559^995^' ^^^I.

^^'

In purfuance of the 3d George

c.

8.

the

bank delivered up
It

two
In

millions of exchequer

bills

to

be cancelled.

had

at this

time, therefore,

advanced
8th

to

purfuance of the

government 5,375,027!. 17s. lod. George I. c. 21. the bank purchafed
ftock to the

of the South Sea Company,

amount of 4,000,000 1.
which
it

and in 1722,

in confequence of
it

the fubfcriptions

had

taken in for enabling
increafed

to

make
At

this purchafe, its capital ftock
this time,

was

by 3,400,0001.
to the publick

therefore, the

bank had
its (?apital

advanced

9,375,027]. 17s. lo^d.; and 8,959,995!. 14s. 8d.
It

ftock amounted only

to

was upon

this

occafion that the

fum which the bank had advanced
fii-ft

to the publick,
its

and for which
or the
ftock
;

it

received intereft, began
it

to

exceed

capital ftock,

fum

for

which

paid a dividend to the proprietors of bank

or, in other

words, that the bank began to have an undiits

vided capital, over and above

divided one.

It

has continued to
fince.

have an undivided
the

capital

of the fame kind ever

In

1

746

bank had, upon
its

different occafions,

advanced to the publick
raifed

il,686,8ool. and
calls

divided capital had been
to 10,780,000].

by different

and fubfcriptions

The

ftateof thofe two

fums
has

3^8

o 88

THE NATURE AND CAUSES
has continued to be the fame ever
fince.

OF

In purfuance of the 4th of

George

III.
its

c.

25. the bank agreed to pay to government for the re1

nevpal of

charter,

10,000 1. without intereft or repayment. This

fum, therefore, did not increafe either of thofe two other fums.

The
for the

dividend of the bank has varied according to the variations

in the rate of the intereft

which

it

has, at different times, received

money

it

had advanced

to the publick, as well as according

to other circumftances.

This

rate

of intereft has gradually been re-

duced from eight

to three per cent.

For fome years paft the bank

dividend has been at five and a half per cent.

The
Britifh

flability

of the bank of England
All that
it

is

equal to that of

ther

government.
before
in
its

has advanced to the publick muft

be

loft

creditors can fuftain
eftabliftied

any

lofs.

No

other banking

company
confift

England can be
fix

by

a€t of parliament, or

can

of more than

members.
ftate.

It a£ts,
It

not only as an ordinary

bank, but as a great engine of
part of the annuities
circulates

receives

and pays the greater
of the publick,
it

which are due
bills,

to the creditors

exchequer

and

it

advances to government the annual

amount of

the land and malt taxes,
thereafter.

which

are frequently not paid
its

up

till

fome years

la thofe different operations,
obliged
it,

duty

to the publick
its

may fometimes have
bills,

without any fault of
paper money.
It

diredfors,

to overftock the

circulation with

likewife difcounts merchants

and has,

upon

feveral differenE

occafions, fupported the credit of the principal houfes, not only of-

England, but of
1763,
it is
1

Hamburgh and
have advanced
it

Holland.

Upon one
I

occafion, in

faid to
;

for this purpofe, in

one week, about

1,600,000

a great part of

in bullion.

do not, however, preor the fhortnefs of
re-

tend to warrant either the greatnefs of the fum,
the time.

Upon

other occafions, this great

company has been

duced

to the neceftity
is

of paying in fixpences.
country,

It

not by augmenting the capital of the
part of that
capital

but by

rendering a greater

adlive

and

produdlive

than

THE WEALTH OF NATIONS.
tlian

389
^
^^

would otherwlfe be

fo,

that the

mofl

judicious operations

^

P-

of banking can increafe the induftry of the country.
of his
ployed,
is

That part

capital

which a dealer
in ready
ftock,

is

obliged to keep

by him unemdemands^
this fitu-

and

money
which,

for anfwerlng occafional
fo

fo

much dead

long as

it

remains in

ation,

produces nothing either to him or to his country.
enable
ftock;

The
dead

judicious operations of banking,

him
into

to convert this

Hock
upon,

into

adive and
tools to

produdlive

into

materials

to

work

into

work with, and
into flock

provifions

and fub-

fiflence to

work

for;

which produces fomething both
gold and filver

to

him and
its

to his country.

The

money which

circulates in

ef

any country, and by means of which, the produce land and labour is annually circulated and diftributed to
is,

the proper confiimers,

in the fame
It
is

manner

as the ready

money
the

of the dealer,

all

dead ftock.

a very valuable part of
to

capital of the country,

which produces nothing
gold and

the country.

The judicious
room of

operations of banking, by fubftituting paper in the
filver,

a great part of this

enables

the country

to convert a great part of this dead ftock into
tive ftock
;

adlve and producto

into ftock
filver

which produces fomething

the country.

The may

gold and

money which
to

circulates

in

any country
it

very properly be compared to a highway,

which, while

circulates

and

carries

market
not
a

all

the grafs
pile

and corn of

the-'

country,

produces

itfelf

fingle

of either.
if I

The

judi--

cious operations of banking,
fo
violent' a

by providing,
were,
fields,

may

be allowed'
the air;,

metaphor,
country
to

a fort of
convert,

waggon-way through
as
it

enable

the

a great part of its

highways into good paftures and corn

and thereby
its

to

in-

creafe very confiderably the annual produce of

land and labour.
it

The commerce and
be altogether
the Dsedalian

induftry of the country,

however,

muft be

acknowledged, though th&y
fo fecure,

may

be fomewhat augmented, cannot

when they arc thus, as it were, fufpendeduponwings of paper money, as when they travel about upom
6

the

393

THE NATURE AND CAUSES OE
the folid ground of gold and
filver.

Over and above the

accidents to

which they are cxpofed from the unfkilfulnefs of the conductors of
this

paper money, they are
(kill

liable to feveral others,

from which nO'

prudence or

of thofe condutlors can guard them.

An' unfuccefsful war, for example, in which the

enemy got

poflef-

fionof the capital, and confequently of that treafure which fupported
the credit of the paper money, would occafion a
fufion in a country

much

greater con-

where the whole

circulation
it

was

carried

on by

paper, than in one where

the greater part of

was

carried

on by gold

and

filver.

The

ufual inftrument of

commerce having

loft its value,

no exchanges could be made but
have wherewithal either
to

either

by barter or upon

credit.

All

taxes having been ufually paid in paper

money, the prince would not
his

pay his troops, or to furnifh

magazines; thaa

and the

ftate

of the country would be

much more

irretrievable

if the greater part

of its circulation had

confifted in gold
all

and

filver.
flate

A prince,
in

anxious to maintain his dominions at
eafily

times in the

which he can moft

defend them, ought, upon this account, to

guard, not only againft that exceffive multiplication of paper

money

which ruins the very banks which iffue it; but even againft that mul* tiplication of it, which enables them to fill the greater part of the
circulation of the country with
it.

The circulation
two
and the
circulation

of every country
;

may

be confidered as divided into

different branches

the circulation of the dealers with one another,

between the dealers and the confumers.

Though

the fame pieces of money, whether paper or metal,

may

be employed

fometimes in the one circulation and fometimes in the other, yet as
both are conftantly going on
ftock of
at the

fame time, each requires a certain
it

money of one kind

or another, to carry

on.

The

value of

the goods circulated between the different dealers, never can exceed

the value of thofe circulated between the dealers and the confumers

whatever

is

bought by the

dealers,

being ultimately deftined

to

be

fold

THE WEALTH OF NATIONS.
fold to the confumers.

391
it is

Tlie circulation between the dealers, as

C H A
II.

p.
.

carried

on by wholefale, requires generally a pretty large fum for

every particular tranfadtion.
fumers, on the contrary, as
itis

That between the

dealers and the con-

generally carried on by retail, frequently

requires but very fmall ones, afhilling, or even a halfpenny, being often
fufBcient.
fliilling

But fmall fums

circulate

much

fafler

than large ones

A

changes mafters more frequently than a guinea, and a halfa {hilling.

penny more frequently than

Though the annual

purchafes

of all the confumers, therefore, are at

leaft

equal in value to thofeof all

the dealers, they can generally be tranfa£led with a

much fmaller quantity

of money ; the fame pieces, by a more rapid circulation, ferving as the
inftrumentof many more purchafes of the one kind than of the other.

Paper money may be fo regulated, as either to confine much to the circulation between the different dealers, or
itfelf likewife to

itfelf

very

to

extend

a great part of that between the dealers and the con-

Where no bank notes are circulated under ten pounds value, as in London, paper money confines itfelf very much to the circulation
fumers.

between the

dealers.

When
is

a ten

pound bank note comes
it

into

the

hands of a confumer, he
fliop

generally obliged to change
to

at the firft

where he has occafion
it

purchafe five fhillings worth of goods,

fo that

often returns into the hands of a dealer, before the confumer.

has fpent the fortieth part of the money.
iffued for fo fmall

Where bank

notes are

fums

as

twenty

fhillings, as in Scotland,

paper

mo-

ney extends

itfelf to a

confiderable part of the circulation betweeri

dealers and confumers.

Before the a£t of parliament, which put a

flop to the circulation of ten

and

five fhilling notes,

it

filled

a

flill

greater part of that circulation. In the currencies of North America

paper was commonly iffued for

fo fmall a

fum

as a fhilling,

and

filled

almofl the whole of that circulation.
Yorkfhire,
it

In fome paper currencies of

was iffued even for

fo fmall

a fum

as a fixpence.

Where

«n2

THE NATURE AND CAUSES OF

BOOK

v—

v-^

Where
'

the Ifluing of bank notes for fuch very fmall fums

is

allowed

and commonly praQifed, many mean people are both enabled and encouraged
five

to

become bankers.

A

pcrfon whofe promifTory note for

pounds, or even for twenty (hillings, would be rejeded by every
it

body, will get
fmall a

to

be received without fcruple

when

it is

iffued for fo

fum

as a fixpence.

But the frequent bankruptcies
liable,

to

which

fuch beggarly bankers muft be
able inconveniency,

may

occafion a very confider-

and fometimes even

a very great calamity to

many

poor people

who had

received their notes in payment.

It were
of the

better, perhaps, that

no bank notes were
five

iffued in

any part

kmgdom

for a fmaller

fum than
itfelf,

pounds.

Paper money
of the kingdom,
as
it

would then, probably, confine
to the circulation

in every part

between the different

dealers, as
iffued

much

does at

prefent in

London, where no bank notes are
pounds being,
In moft parts of the

under ten pounds

value

;

five
it

kingdom, a fum which,

though
goods,

will purchafe, perhaps, little
as

more than half the quantity of

is

much

confidered, and

is

as feldom fpent all at once, as tea

pounds are amidft the profufe expence of London.

Where

paper money,

it is

to

be obferved,

is

pretty

much confined
is

to the circulation

between dealers and dealers,
filver.

as at

London, there

always plenty of gold and

Where

it

extends

itfelf to a confi-

derable part of the circulation between dealers and confumers, as in
Scotland, and
fi:ill

more

in

North America,
al

it

banifhes gold and filver

almoft entirely from the country;

moft

all

the ordinary tranfadtions

of

its

interior

commerce being thus carried on by paper. The fuppreffive fhilling

fion of ten

and

bank
;

notes,

fomewhat

relieved the fcarcity
fhilling
faid to

of gold and
notes,

filver in

Scotland
relieve

and the fuppreffion of twenty
it ftill

would probably

more.

Thofe metals are

have become more abundant

in

America, fince the fuppreffion of

fome of

their paper currencies.

They

are faid, likewife, to have

been more abundant before the inftitution of thofe currencies.

Though

THE WEALTH
Though
lation

OF NATIONS.
much confined
to the circuftill

39:

paper money

fliould

be pretty

C U A
II.

P.

between dealers and
to give nearly the

dealers, yet

banks and bankers might
to the induftry

v.^,,

^

be able

fame afliftance

and commerce
the

of the country,

as they

had done when paper money
a dealer
is is

filled almofl:

whole

circulation.

The ready money which
demands,

obliged to keep

by him,

for anfwering occafional

deftined altogether for

the circulation between himfelf and other dealers,

of

whom

he buys

goods.

He

has no occafion to keep any by

him

for the circulation

between himfelf and the confumers,
bring ready

who

are his cuftomers,

money

to

him, inftead of taking

who any from him. Though
and
but for fuch

no paper money,
fums
as

therefore,
it

was allowed

to be ifTued,

would confine

pretty

much

to the circulation
bills

between dealers

and dealers; yet partly by difcounting real

of exchange, and partly

by lending upon

calh accounts, banks and bankers

might

ftill

be able

to relieve the greater part of thofe dealers

from the

neceffity of

keeping
in ready

any confiderable part of their money,
for

ftock

by them, unemployed and

anfwering occafional demands.

They might

ftill

be able

to give the utmoft afliftance

which banks and bankers can, with pro-

priety, give to traders of every kind.

To reftrain private people,
when

it

Ui«y be fald, from receiving in payment

the promiflbry notes of a banker, for any

fum whether great or
or,

fmall,

they themfelves are willing to receive them;
iflTuing
is

to reftrain a

banker from

fuch notes,

when

all

his neighbours are willing to

accept of them,
is

a manifeft violation of that natural liberty

which

it

the proper bufinefs of law, not to infringe, but to fupport.

Such

regulations

may, no doubt, be confidered

as in

fome refped:

a violation

ofnaturalliberty.
dividuals,

But thofe exertions of the natural libertyof a few infociety, are,

which might endanger thefecurity of the whole
to be, reftrained

and ought

by the laws of all governments; of the moft

free, as well as

of the moft defpotical.

The

obligation of building
fire, is

party walls, in order to prevent the communication of

a viola-

VoL.

I.

3

E

tion

39i-

THE NATURE AND CAUSES OF
t'lon

BOOK

of natural liberty, exadly of the fame kind with the regulations of

the banking trade which are here propofed.

A PAPER
doubted

money

confifting in

bank

notes, iffiied

by people of uncondition,

credit,

payable upon

demand without any
is,

and in

fad always

readily paid as foon as prefented,

in every refped,

equal in value to gold and filver

money

;

fince gold
is

and

filver

money
fold
it

can at any time be had for

it.

Whatever

either
fold as

bought or
cheap as

for fuch paper, muft neceffarily be

bought or

could

have been for gold and

filver.

The

increafe of paper

money,

it

has been

faid,

by augmenting the

quantity, and confequently diminifhing the value of the whole cur-

rency, neceffarily augments the
as the quantity of gold
is

money

price of commodities.
is

But

and

filver,

which

taken from the currency,
is

always equal to the quantity of paper which

added to

it,

paper

money does not From

neceffarily increafe the quantity of the
lafl

whole currency.

the beginning of the

century to the prefent time, provifions
cir-

never were cheaper in Scotland than in 1759, though, from the
culation of ten

and

five fhilling

bank

notes, there

was then more paper

money

in the country than at prefent.

The
in

proportion between the
is

price of provifions in Scotland

and that

England,

the fame

now

as before the great multiplication of

banking companies

in Scotland.
as in

Corn

is,

upon mofl
is

occafions, fully as cheap in

England

France;

though there any
in France.

a great deal of paper
In 1751 and in
1

money

in

England, and fcarce
publil^ed his

752,

when Mr. Hume

Political difcourfes,

and foon

after the great multiplication

of paper

money
vifions,

in Scotland, there

was

a very fenfible rife in the price of pro-

owing, probably,

to the badncfs

of the feafons, and not to

the multiplication of paper money.

It would be otherwife, indeed, with a paper money

confifling in

promiffory notes, of which the immediate payment depended, in any
refped,

THE WEALTH OF NATIONS.
refpedt, either

395
;

upon the good

will

of thofe

who

iffued

them

or

upon a
in his

CHAP.
II.

condition which the holder of the notes might not always have

it

power
certain

to fulfil; or

of which the payment was not exigible
years,

till

after a

number of

and which

in the

mean time bore no
more or
lefs

intereft.

Such a paper money would, no doubt,

fall

below the va-

lue of gold and filver, according as the difficulty or uncertainty of ob-

taining immediate payment

was fuppofed to be greater or lefs or accord;

ing to the greater or

lefs diftance

of time at which payment was exigible.

Some

years ago the different banking companies of Scotland were

in the pradice of inferting into their

bank

notes,

what they

called

an

Optional Claufe, by which they promifed payment to the bearer, either
as foon as the note fhould be prefented, or, in the option
tors,

of the direc-

fix

months

after fuch prefentment,

together with the legal in-

tereft for the faid fix

months.

The
this

diredors of feme of thofe banks
optional
claufe,

fometimes took advantage of

and fometimes

threatened thofe wlio demanded gold and filver in exchange for a confiderable

number of

their notes, that they

would take advantage of

it,

unlefs fuch

demanders would content themfelves with a part of what

they demanded.

The

promiffory notes of thofe banking companies

conftituted at that time the far greater part of the currency of Scotland,

which this uncertainty of payment
of gold and
filver

neceffarily degraded

below the value
this

money.

During the continuance of

abufe,

(which prevailed chiefly in 1762, 1763, and 1764), while the exchange

between London and

Carlifle

was

at par,

that

between London and
Dumfries, though

Dumfries would fometimes be four per
this
bills

cent, againft

town

is

not thirty miles diftant from Carlifle.
in gold

But

at Carlifle,

were paid

and

filver;

whereas

at

Dumfries they were

paid in Scotch bank notes, and the uncertainty of getting thofe bank
notes exchanged for gold and filver coin had thus degraded

them four

per cent, below the value of that coin.

The fame
bank

ad:

of parliament

which fupprefled ten and
v«ife this

five fliillling

notes, fupprefled like-

optional claufe, and thereby reftored the exchange between
3

E

2

England

396

THE NATURE AND CAUSES OF
England and Scotland
trade and remittances
to its natural rate,

BOOK

or to
it.

what the courfe of

might happen

to

make

In the paper currencies of Yorkfhire, the payment of

fo

fmall a

fum

as a fixpence

fometimes depended upon the condition that the

holder of the note {hould bring the change of a guinea to the perfon

who
this

ifluedit; a condition,
it

which the holders of fuch notes might
and which mull have degraded
filver

frequently find

very

difficult to fulfil,

currency below the value of gold and
all

money.

An

adt

of

parliament, accordingly, declared
prefled, in the

fuch claufes unlawful, and fupall

fame manner as in Scotland,

promifTory notes, pay-

able to the bearer, under twenty fhillings value.

The

paper currencies of North America confifted, not in bank

notes payable to the bearer on demand, but in a government paper,

of which the payment was not exigible
iflued
:

till

feveral years after

it

was

And though

the colony governments paid no intereft to the
it

holders of this paper, they declared
legal tender of

to be,

and

in

fad rendered
it

it,

a

payment

for the full value for

which

was

iflued.

But

allowing the colony fecurity to be perfedly good, a hundred pounds

payable fifteen years hence, for example, in a country where intereft
is

at fix percent, is

worth

little

more than

forty

pounds ready money.

To
ad

oblige a creditor, therefore, to accept of this as full

payment

for

a

debt of a hundred pounds adually paid

down

in ready

money, was

an>

of fuch violent

injuftice,

as has fcarce, perhaps,

been attempted,

by the government of any other country which pretended to be free. It bears the evident marks of having originally been, what the honeft
and downright Dodor Douglas
vania, indeed, pretended,
allures us
it

was, a fcheme of frauPenfyl-

dulent debtors to cheat their creditors.

The government of
firft

upon

their

emiffion of paper money,,

in 1722, to render their paper of equal value

with gold andfilver, by
difference in the

enading

penalties againfl:

all

thofe
fold

who made any
them

price of their goods

when they

for a colony paper,

and whei>
they

by adof affembly. of paper emitted in the different colonies. was to prevent the exportation of gold and by making equal q^uantities of thofe metals pafs for greater fums in. but 397 CHAP. a regulation equally tyrannical. its Before that emiflion. much lefs efFe£lual than that which it was meant to fupport. as to a pleafes. . it was more than and when thirty per cent. that currency was turned was feldom much' more than thirty per cent. below below fterling. fhould be a legal tender of payment. to a hundred and thirty pounds. when currency was gold and the value of a into paper. and three. therefore. ordered topafs in the colony for fix eight. therefore. and in others pounds currency.pence. The pretence for raifing the denomination of the coinj filver. and who is at liberty to fell or not to fell.pence. in the quantity to fo great a fum as eleven hundred this difference in the value arifing from the difference and in the and redemption. But no pofitive law can oblige a pcrfon he who has who fells Notwith- goods. Its paper currency accordingly filver faid never to have funk below the value of the gold and in the colony before the firft which was current GmifTion of its paper money. which declared that no paper currency to be emitted there in time coming. fo unjuftly complained of in the colonies. it flanding any regulation of this kind. filver. diftance and probability of the term of its final difcharge No law. in fome of the colonies. A pofitive it law may render a fhilling a legal tender for a guinea becaufe may dire£l the courts of juftice to difcharge the debtor made that tender. Pensylvania was always more moderate money is in its emiffions of paper than any other of our colonies. to accept of a fhilling as equivalent guinea in the price of them. and afterwards for even fix and that A pound pound colony currency.THE WEALTH OF NATIONS. could be more equitable than the adl of par- liament.the colony than they did! . appeared by the courfe of exfterling change with Great Britain. that value. that a hundred pounds was occa- Conally confidered as equivalent. coin. they fold them for gold and filver. the colony had raifcd the denomination of five fhillings fterling and had.

A PRINCE. or bears an agio of four or per cent. the particular colony which iflued It was in all the colonies very much above what could be employed in this manner. or for the fuperiority of bank money over current money. fo that their gold and filver were exported as The paper of each colony being received in the payment of the provincial taxes. above the fame nominal fum of the gold and filver cur- 2 rency . difcharge and redemption fhould depend altogether upon the will If the it of the prince. The greater part of foreign is. they that bank money fells premium. over and above real or fuppofed diftance what of it would have had. as they pretend. are careful to keep the whole quantity of bank money always below what fay. that by a transfer in the books of the bank . however. it from this ufe fome additional value. the quantity of bank which iflued this paper was careful to keep always fomewhat below what could eafily be emit ployed in this manner. Some people account in this manner for what is called the Agio of the bank of Amfl:erdam. or fell for fomewhat more it market than the quantity of gold or filver currency for which was ifliied. five this ufe occafions a demand for a for. though out of the bank bills this bank money. from the final of the term its difcharge and redemption. all goods from the mother country rofe exadly in proportion as they raifed the denominationof their faft as ever. they allege. according as the quantity of paper iffued was more or above what could be employed in the payment of the taxes of it. cannot be taken at the will of the owner. and the dire(Sl:ors of the bank. who {hould {liould be paid in a enad that a certain proportion of his taxes paper give a certain value to final money of a certain kind. of exchange mufl: be paid in bank money. ' BOOK * It was found. This additional value was greater or lefs lefs. for the full value for neceflarily derived which it had been iflued. might thereby this paper money even though the term of its . that the price of .398 THE NATURE AND CAUSES OF did In the mother country. the demand for might be fuch in the as to make it even bear a premium. coin. It is upon this account.

beyond its due proportion to their to guard themfelves againft thofe malicious runs. depends in not upon the nature or quantity of any particular paper money. inftead of diminifhing. howis chap. and if they are fubjeded to the obligation of an immediate and unconditional payment of fuch bank notes as foon as prefented. which the rivalfhip of fo to bring many competitors is always ready upon them. or notes payable to the bearer. obliges all of them to be more circumfped: in their currency their condud. in a great meafure chimerical. the failure of any one company. A equal PAPER currency which quantities of falls below the value of gold and filver coin. which happen at any particular time to fupply the great market of the commercial world with thofe metals. increafes the fecuIt of the publick. for lefs than a certain fum. but upon the richnefs or poverty of the mines. it 399 This account of the bank of Amfterdam. If bankers are retrained from iffulng any circulating bank notes. and that which is neceffary in order to bring thither a certain quantity of any other fort of goods. an event by which many people have been much rity alarmed. be rendered in other refpeds free. or occafion them to exchange for a fmaller quantity of the value of gold all cafes. ever. rency of the country. and. does not thereby fink the value of thofe metals. The late multiplication of banking companies in both parts of the united kingdom. and reduces their circulating notes to a fmaller number. an acei- dent .THE WEALTH OF NATIONS. will appear hereafter. It reflrains the circulation of each particular company within a greater a narrower circle. The proportion between and filver and that of goods of any other kind. by not extending cafli. with perfedly fafety to the publick. which may be current in any particular country. their trade all may. goods of any other kind. It deIs pends upon the proportion between the quantity of labour which neceffary in order to bring a certain quantity of gold and filver to market. By dividing the whole circulation into number of parts.

'TpHERE "^ fubje£t is one fort of labour which adds to the value of the it upon which efFe<n:. cofts him no expence. becomes ' BOOK /' of all lefs confequence to the publick. generally. the value of thofe wages being generally reftored. A man He grows rich by employing a multitude of maof nufacturers: grows poor.40O THE NATURE AND CAUSES OF dent which. adds to the value of nothing. CHAP. Of the Accumulation of Capital. the latter.. unproductive * labour. mafter's profit. to the value labourof a manufacturer adds. in * Some French authors of great learning and ingenuity have ufed thofe words different fenfe. may Thus be the called productive. be advantageous the freer and to the publick. or any divifion of labour. on the contrary. But the maintenance of a menial fervant never reftored. more general the competition. a multitude its menial ferrants. by maintaining latter. In general. their fenfe is a Jn the chapter of the fourth book. bankers to be more liberal in their dealings left their rivals fhould carry them away. produces a value. in reality. if any branch of trade. Though the manufacturer has his wages advanced with a labour is him by his mafter. has value. produ^ive and unprodu5tive Labour. together profit. is in the improved value of the fubjeCl upon which his beftowed. The laft labour of the however. and of his The to labour of a menial fervant. and . I fliall endeavour to fhovy that an improper one. muft fometimes happen. is beftowed as it : There is another which has no fuch The former. of the materials which he works upon. he. This free competition too obliges with their cuftomers. that of his own maintenance. it will always be ilie more fo. or of III. in the courfe of things.

upon fome That fubjedl. But the C * H v "^ P. to be employed. kinds. and does realize itfelf not fix or in any permanent fubjcd.THE WEALTH OF NATIONS. does not fix or realize itfelf in any particular fubjefl or vendible commodity. how ufeful. are unprodudlive labourers. phyficians. and for which an equal quantity of labour could afterwards be procured. fecurity. with ferve all the officers both of juftice and war who under him. opera3 VoL. The fovereign. will The eff"e£l of their labour this not purchafe to its protedlion. which It is. can afterwards. the price of that fubjed. as it were. and frivolous profeflfions ters : fome of the mofl let- churchmen. and feldom leave any trace or value behind them. opera-fingers. for which an equal quantity of fervice could afterwards be procured. players. men of of all I. for be the year come. on the contrary. They fervice. and defence of the commonwealth. and are maintained by a part of the annual produce of the induftry of other people. and deferves Its 401 la- reward as well as that fixes of the former. for fome time is paft. of fervice can afterwards he procured. fome both of the graveft and mofl. for example. Their how honourable. or how neceflary foever. the whole army and navy. His fervices generally perifh in the very inflant of their performance. a certain quantity of la- bour flocked and ftored up other occafion. ranked. muficians. / hour of the manufadlurer fubje£l or vendible after that labour and realizes itfelf in lafts fome particular at leaft — commodity. are the fervants of the publick. the year. bufi-bons. F dancers. or what if is the fame thing. . In the fame clafs mufl. if neceflary. The is. quantity of labour equal to that which had originally produced The labour of the menial fervant. important. lawyers. which endures that labour is paft. labour of fome of the mofl: refpedable orders in the fociety like that of menial fervants. put into motion a it. fecurity. or vendible after commodity. produces nothing for which an equal quantity protedion. and defence. neceflary. unproductive of any value.

7 one . how is can never be infinite. of the produce of land. gi-eat foever. or for renewing the pro- vifions. This produce.' or all tune of the mufician. ultimately deftined for fupplying the to confumption of its inhabitants. produces and that of the aftervsrards noblefl: and moft nothing which could purchafe or pro- cure adtor. Thus. deftined for replacing a capital. &c. parts. into two firft One of them. the whole annual produce. — the Though whole annual produce of the land and labour of is.40^ THE NATURE AND CAUSES OF dancers. an equal quantity of labour. therefore. BOOK The fort labour of the meaneft of ihefe has a certain principles v/hich ' value. as the rent of his land. but muft have certain limits. perfon. and for procuring a revenue yet them when it firft comes either from the ground. if we except the fponta- neous produdions of the earth. regulated by the very fame of labour . lefs in the more in the one cafe and the the other will remain for the produdive. and the next year's produce will be greater or fmaller accordingly . which had been withdrawn or to fome other from a capital. no doubt. as the profit owner of of his ftock . Like the declamation of the the the harangue of the orator. and frequently the in the place. it According. or from the hands it of the produdive labourers. Both productive at all. regulate that of every other ufeful. its the work of of them periilies in the very inflant of produc- tion. itfelf is. materials. and unprodudlve labourers. every country. and thofe are all who do not labour equally maintained by the annual pro- duce of the land and labour of the country. and finifhed work. the other for conftituting a revenue either to the this capital. being the efFed of produdive labour. naturally divides largeft. as a fmaller or greater proportion of in any one year employed in maintaining unprodudtive hands.

one part and that always replaces the capital of the undertaker of the work. fecondly.—-» owner of this capital. maintained by revenue is either. he to be replaced to him with a profit. . the in the other pays his profit. one part replaces the capital 403 ^ " " of the farmer . part of is. Unproductive are all labourers. by that though originally deftined for replacing a capital and for maintaining pro- dudive labourers only. firft. pays the wages of produc- That which is immediately deftined for confti- tuting a revenue either as profit or as rent.THE WEALTH OF NATIONS. and thus conftitutes a revenue to the this capital. the other pays his profit ^ P- and the rent of the landlord to the and thus conftitutes a revenue both the profits of his ftock . fame manner. He and employs hav- therefore. yet when 3 it comes into their hands. . Whatever always expeds it. the fundion of a capital to him. at all. owner of That part of the annual produce of the land and labour of capital. . as and to fome other perfon. with- drawn from and placed in his ftock referved for imme- diate confumption. the profits of ftock or. in maintaining produdlive iri after ing ferved to them. the largeft. and thofe who do not labour . part of his ftock a is man employs hands only it it as a capital. by that part of the annual produce which originally deftined for conftituting a reeither as venue to fome particular^perfons. Of the produce of a manufadory. great as the rent of his land. tive labour only. in maintaining un- produdive hands of any kind. that part from that moment. any country which replaces a never It is immediately employed to maintain any but produflive hands. . whatever F 2 . conftitutes a revenue Whenever he employs any his capital. may maintain indiffe- rently either produdlive or unprodudlive hands. the rent of land or as part which.

more idle than induftrious The rich merchant. more honour- and ufeful. till after it full comple- ment of produdive in the labour. the fmallnefs of their contribution. and thus help indeed. however. but equally unprodudive. The rent of land and the profits of ftock are every where. maintain another fet. of which produdive labourers have feldom a great deal. No of the annual produce. paj. but even the fiderable. that is. THE NATURE AND CAUSES OF evgj. therefore. That part too is his fpare revenue only. not only the great landlord or the merchant. may rich be employed in maintaining indifferently either produdtive or un- produdive hands. he feeds commonly the very fame fort as the great lord. yet by his expence. which had been originally deftined to replace a capital. is ever direded towards maintaining unprohas put into motion or all its dudive hands. by the employment of his revenue. maintaining one of unprodudive labourers to may pay part fome able taxes. The workman muft have generally but a fmall one. in fome meafure. They feem. common workman. The . however. They might latter. though with his capital he maintains induftri- ous people only. the principal fources from which unprodudive hands derive their fubfiftence. and payment of taxes the greatnefs of their number may com- penfate. Thus. however . both maintalin produdive or unprodudive hands. and fet fo contribute his fhare . in the They generally have fome. . it that it could put into motion way in which was employed.f BOOK of it is over and above their neceflary fubfiflence. if his wages are con- may maintain a menial fervant or he may or he fometimes towards go to a play or a puppet-fhow. Thefe are the two to forts of revenue of which the owners have generally indifferently either mod fpare. before he can employ any part of them It is in this manner. to have fome prediledion for the a great lord feeds generally The expence of people. earned his wages by work done.404.

and that which deftined for conftituting a revenue. the other But antiently. deftined for replacing the capital of the rich and independent farmer for paying his profits. It therefore. dudtive hands. either as rent for or as profit upon this paultry capital. the of all thofe whom it maintains. between the productive and unpro- 405 C H a 111. they were equally dependant xipon it. The proportion. during the prevalency of the feudal government. neous produce. little and though the rent which they paid was often nominally than a quit-rent. It fufficient to replace the capital employed cattle. and was to the occupiers to by him advanced of the land. and the rent of the landlord. be confidered as a part of that fponta- generally too belonged to the landlord. effecfls were equally his pro- Thofe who were not bondmen were tenants at will. land. The occupiers of land were generally bondmen. which. as foon \— portion between that part of the annual as it comes either from the ground or from the hands of the prois ductive labourers. depends very much in every country upon the proproduce. a veryfmall portion of the produce was tivation. very different in rich from what is in poor Thus. or as prolit. whofe perfons and perty. frequently the largeft portion of the produce of the land. who can difpofe of the labour and fervice In the prefent ftate of Europe.THEWEALTHOFNATIONS. . a very large. therefore. p. it This proportion countries. at prefent. either as is rent. is . is deftined for replacing a capital. produce properly belonged him too. in the opulent countries of Europe. in cul- confifted commonly in a few wretched main- tained altogether by the fpontaneous produce of uncultivated land* and which might. and their fervice in war. him tainers who lived in But the whole produce of the land un- doubtedly belongs to him. it more really amounted at all to the whole produce of the labour in a diftante as his re- Their lord could peace. command their Though they lived at times from his houfe. All the reft of the his land.

but bear a much proportion .4o6 THE NATURE AND CAUSES OF the fliaie of the landlord feldom exceeds a third. and quadrupled and this third or fourth part of the annual produce feems. but bears a is much greater proportion to that which ftituting a immediately deftined for conprofit. is (o low as four. intereft The their rate of was no where lefs than ten to per cent. the trade that that was and the few homely and coarfe manufmall capitals. in all the improved parts of the country. it . The rent of land. In the opulent countries of Europe. required but very Thefe. which. deftined for replacing a capital. not only much greater greater in the former than in the latter. three. three or four times greater In the progrefs of improvement. factures were carried on. diminifhes in proportion to the produce of the land. At preis of in the improved parts of Europe. and two per is Though that part of the revenue of the inhabitants which profits tries. fometimes not a BOOK fourth part of the whole produce of the land. is not only much greater in rich than in poor countries. great capitals are at prefent employed little in trade and manufadliures. derived from the of flock is always much is greater in rich than in poor coun- it is becaufe the ftock much much greater lefs. has been tripled fince thofe antient times is. and profits mufl: fent have been the rate fufficient intereft. muft have yielded very large profits. afford this great intereft. : in proportion to the flock the profits are generally That as it part of the annual produce. therefore. however. however. fome of the moft "imcent. revenue either as rent or as The funds are deftined for the maintenance of productive labour. rent. as foon comes either from the ground or from the hands of the prois ductive labourers. though it increafes in proportion to the extent. ftirring. In the ancient ftate. and in no where higher than proved it fix per cent. than the whole had been before.

trade you except Rouen and Bourdeaux. fathers . of all the goods which are brought either from foreign counfame manner or from the maritime provinces of France. general diffolute. fober. We are more induftrious than our fore- becaufe in the prefent times the funds deflined for the maintenance thofe of induftry. are in general idle who The great trade of effect. come to plead before them. and poor If as at Rome. have generally a pre- The mines proportion between thofc different fun-ds neccffarily deter- in every country the general charafter of the inhabitants as to induftry or idlenefs. where the inferior ranks' of people are chiefly maintained by the employ- ment of ing . they are . as in many and in mofl: Dutch towns. In mercantile and manufacturing towns. tries. which the inferior ranks of people are in by the fpending of revenue. better. Rouen and Bourdeaux feems Rouen is to be altogether the of their fituation. than ceftors they were idle two or three ago. and is Fontainbleau. for the confump- tion of the great city of Paris. and in chiefly maintained idle. though they tain either produftive or dilecflion for the latter. to are much greater in proportion to which were It is are likely be employed in the maintenance of centuries idlenefs. In thofe towns which are principally fupported by the conftant or occafional refidence of a court. . than work for nothing. they are in general induftrious. Bourdeaux is in the the entrepot of the wines which grow upon the banks of the Ga- ronne. capital. unprodudive hands. to play for nothing. I 407 C Fi proportion to thofe which. neceffarily the entrepot of al- mofl. Compiegne. may be employed to main- a p. Verfailies.THE WEALTH OF iN A T O N S. fays the proverb. being chiefly maintained by the expence of the members of the courts of juftice and of thofe and poor. there in little or induftry any of the parliament towns of France and the inferior ranks of people. Our to aninto for want of a fufficient encouragement duftry. and thrivEnglifti.

that more than the thing which can be employed in them. and renders to lefs advantageous employ a capital there than in other places. and of the rivers which run into countries in it. or bed fuited to the tafte of foreign nations. London. Paris by far the all induftrlous but Paris the principal market of the is mathe nufadures eflablilhed principal objedl at Paris. drid. The fame itfelf is may be faid of Paris. the only three in Europe. which are both the conftant refidence of a court. ceafcd to be the necelFury refidence of the principal nobility and . is Mamoft and Vienna. to be When when the Scotch parliament it was no longer alTembled in it. to employ with advantage any other purpofe than for fupplying the confumption is of that city. the other parliament towns of France. . one of the to richeft wine the world. but for that of other The fituation of all the three is extremely fits advantageous. cities Lilhon. corrupts. and naturally them to be the entrepots of a great part of the goods dellined for the confumption of diftant places. and its own confumption it of all the trade are. and can at the fame time be confidered as trading cities. perhaps. or as cities which trade not only for their cities and countiies. There was little trade or induftry in Edinburgh before the union. probably more difficult than in one in which the inferior ranks of people have no other maintenance but what they a capital. to be it is probable. which carries on. and the employment of this capital the caufe of the indiiflry of thofe little two cities. Such advantageous the great fituations necelTarily attrad a great capital by In employment which they is afford it . Of thofe three cities. and Copenhagen.4o8 THE NATURE AND CAUSES OF ronne. derive from the employment of fuch The idlenefs of the greater part of the people who are maintained by the expence of revenue. In a city where a great revenue a capita] for is fpent. own confumption. very to more capital feems be employed than what is. the induftry of thofe who ought it maintained by the employment of capital. and which feems produce the wine fitted for exportation. little is neceffary for fupplying their fraalleft capital own confumption.

that is. therefore. it or enables fome other perfon to do fo. after having made confiderable progrefs in manufactures. bitants. Every increafe or diminution of capital. is of a fociety. for a fhare of the As the capital of an individual faves can be increafed only by what he fo the capital from his annual revenue or his annual gains. the number of produdive hands. however. trade and induftry it is continues to be fpent in it. and diminiflied by pro- and mifcondudt. &c. feems to every where regulate the proportion between induftry and Wherever capital predominates. 409 and gentry of Scotland. idlenefs. of which the incapital. It ftill became a city of fome trade and induftry. by lending profits. of the boards of cuftoms and excife. to him for an intereft. which 3 the fame with that of all the Vol. and confequently the the real exchangeable value of the annual produce of the land and labour of the country. proportion between capital and revenue. G indivi- . therefore. it employment of The idle has fometimes been obferved. induftry prevails: Where- cver revenue. therefore. to be the refidence of the principal courts of-juflice in Scotland. a perfon faves it from his revenue he adds to his and either employs himfelf in maintaining an additional number of produdive hands. wealth and revenue of all its inha- Capitals digality are increafed by parfimony.TFIE WEALTH OF it NATIONS. I. habitants are chiefly maintained by the inhabitants of a large village. lord's having taken up his refi- The idlenefs. Whatever capital. naturally tends to increafe or diminifh the real quantity of induftry. in confequence of a great dence in their neighbourhood. CHAP. much inferior to Glafgow. flill A In confiderable revenue. have become and poor. continues.

who re-produce with a profit the value of their annual confumption. Had whole. Induftry. the food. cloathing. is paid him in money. venue which a rich man annually fpends. can be increafed only in the fame manner.4IO THE NATURE AND CAUSES OF Individuals BOOK ir. is the immediate caufe of the indeed. the capital parfimony did not fave and the greater. and menial fervants. additional value to the annual produce. as that part is for the fett of people. and increafe of capital. fake . he fpent the we fhall fuppofe. would have been diftributed among the former By faving a part of it. would never b§ Parsimony. puts into motion an additional quantity of induftry. manufadurers. as for the fake of the profit im- as a capital. and artificers. tends to increafe the number of whofe labour adds It to the value of the fubje£t upon which beftowed. which gives an. What is annually faved is as regularly confunied as . That it portion is which he annually mediately employed faves. His revenue. Parsimony. But whatever induftry might ftore up. is confumed in the fame manner. and lodging which the whole could have purchafed. provides the fubjed. what is is annually fpent. who compofe it. which acquire. and nearly in the fame time too. but by a different fett of people. not induftry. if parfimony accumulates. by thofe hands it is increafing the fund which is deftined for the maintenance of productive hands. who leave nothing behind them in return for their confumption. tends therefore to increafe the exchangeable value It of the annual produce of the land and labour of the country. by labourers. and nearly in the fame time too but it con- That portion of his refumed by a different fett of people. is in moft cafes confumed by idle guefts.

If the prodigality of fome was not compenfated by the frugality of other?. By not confining capital. it enfuing year. funds deftined the employment of productive it he neceffarily diminifhes. by any truft-right or deed of mortmain. indeed. may The ^— v confumption is the fame. conthe funds which the frugality of his forefathers had. fo far as depends upon him. he eflablilhes were a perpetual fund for the in all maintenance of an equal number times to come. for By diminilhing labour. the food. the condudt of every 3 G 2 prodigal. lofs to the perfon who thus perverts it from its proper The prodigal perverts it in this manner. No can ever after- wards be employed to maintain any but produdlive hands. and lodging. he not only affords for maintenance to an additional or the number of productive hands. always guarded by any pofitive law. the value of the annual produce the real wealth of the land and labour of the whole country. are neceffarily referved for the latter. however. fake of the profit immediately employed as a capital either 411 by himfelf ^ ^'^ ^ ^ ' or by fome other perfon. It is always guarded. he pays the wages of with thofe were. confequently. and revenue of its inhabitants. he encroaches upon his Like him to who perverts the revenues of fome pious foundation idlenefs it profane purpofes. By what that a frugal man annually faves.THE WEALTH OF NATIONS. as like the founder of a publick workhoufe. cloathing. is The not perpetual allotment and deftination of this fund. but the confumers are different. . without an evident deftination. the plain and evident intereft of every individual to part of it whom any {hare of it fhall ever belong. which be purchafed with it. but. as fecrated to the maintenance of induftry. his expence within his income. and. the quantity it of that labour which adds a value to the fubjeCt upon which is beftowed. by a very powerful principle.

materials. ' —— v-^ BOOK by feeding the idle with the bread of the induftrious. therefore. inftead of one. Every year there would cloathing. employed in maintaining unproduftive hands. The fame quantity of money would in this cafe equally have remained in the country. be a certain quantity of food and which ought to have maintained produdive. There would have been two values value of confumable goods. diftributed among produdtive hands. not. the full value of their confumption. Though upon the expence of the prodigal fliould be altogether in part of it home-made and no in foreign commodities. and there would befides have been a reprodudtion of an equal.. tends not only to beggar himfelf. By means of fold. This goods. The quantity in of money. are bought and diftributed to their proper confumers. money would remain had been in the country as But if the quantity of food and cloathing. provifions. but to impoveiifh his country. which were thus confumed by unprodudive. together with a profit. and work. it may be faid indeed.- and not occafioning any exportation of gold and the fame quantity of before. any country. Thefe muft confift either in the immediate . which can be annually employed any country muft be determined by the value of the confumable goods annually circulated within it. there would ftill be fome diminution in what would otherwife have the: been the value of the annual produce of the land and labour of country. therefore. cannot long remain in diminiflies. Every year. The The and fame quantity of money. its efFedt the productive funds of the fociety ftill would ftill be the fame.413 THE NATURE AND CAUSES OF prodigal. they would have reproduced. being in foreign. expence.filver. befides. in which the value of the annual produce fole ufe of it. money is to circulate confumable finifhed goods.

it will.THE WEALTH OF NATIONS. filver is. What in the days of its pro* had been faved from that annual produce. The increafe of thofe metals will in cafe be the effed. for annual to manner continue fome time add fomething to the annual confumption of value of fperity its the country beyond the • own annual produce. muft annual in every country naturally increafe as the increafes. is But the money money annual diminution of produce annually thrown lie idle. the revenue and maintenance of . and employed in purchafing Its may be of fome ufe at home. The quantity of money. The alii food. but the elFeil of declen- and may even for fome little time alleviate the mifery of that declenfion. the additional quantity of gold and filver neceflary this for circulating the reft. The exportation of gold its and fion. in fpite of all be fent abroad. not the caufe. and employed little in purchafing gold and filver. will is to naturally be employed in purchafing. cloathing. immediate produce of the land and labour of the country itfelf. A part of the increafed produce. confumable goods which exportation will in this at home. therefore. value of the produce The value of the confumable goods annually circulated will within the fociety being greater. require a greater quantity of money to circulate them. requires that it fhould be employed. wherever it be had. not the caufe. 413 or in fomething which had been puixhafed with fome part of that produce. Their value. But having no employment and prohibitions. Gold and filver are purchafed every where in the fame manner. on the contrary. therefore. will contribute for fome to fupport its time confumption in adverfity. of the publick profperity. in this cafe. mufi: diminlfh as the value of that produce diminifhes. and lodging. out of domeftick circulation will not be allowed to intereft The laws of whoever poffeffes it. and along with in it the quantity of which can be employed which by this circulating them.

as plain reafon feems to didate. or in the quantity of the precious metals which circulate within it. the profufion or imprudence of fome being always more than compenfated by the frugality and good •condud of others. that the circumftances of a nation can be much afFeded either by the prodigality or mifcondud of individuals . every prodigal appears to be a publick enemy. effeds of mlfcondud are often the fame as thofe of pro- ture. they do not reproduce the there muft always be fome dimifull value of their confumption. and no country will ever long retain a quantity which it has no occafion for. though the capital is produdive labour. tends in the fame to diminilh manner the funds deftined for the maintenance of In every fuch projed. in either view of the matter. The digality. Every injudicious and unfuccefsful projedl in agriculmines. is Is employed in bringing them from the mine the price paid for them in Peru as well as in England. fifheries. nution in what would otherwife have been the produdive funds of in the focieiy. confumed by produdive hands only. and every frugal man a publick benefador. «-reat Indeed. thofe whofe labour or ftock to the market. we may imagine the real wealth and revenue of a country to confift in. will never be long without the quantity of thofe metals which it has occafion for . as by the injudicious manner which they are employed. It can feldom happen. yet. whether in the value of the annual produce of its land and labour. or manufadures. With . Whatever.414 THE NATURE AND CAUSES OF all BOOK II. The country which has this price to pay. as vulgar prejudices fuppofe . trade. therefore.

principle of frugality fecms not only to predominate.THE WEALTH With expence. which prompts to chap. womb. the is number of prudent and fuc- undertakings every where much After greater than that of injudicious and unfuccefsful ones. though fomeis times violent and very difficult to be reftrained. the all our complaints of fall the frequency of bankruptcies. either regularly and annually. With cefsful regard to mifcondud. and the moft likely way of and accumulate fome part of augmenting their fortune. and never whole interval leaves us we go In the is which feparates thofe two moments. or upon fome extraordinary occafions. taking the whole courfe of their an average. yet in the greater part at of the men. therefore. but to pre- dominate very greatly. though generally calm and difpaffionate. prevails in almoft all men upon fome life and in fome men upon almoft occafions. is fo perfedly and fatisfied with his as to be without any wilh of alteration or improvement of any kind. . a defire which. regard to profufion. the means the moft vulgar and the moft obvious. the paffion for prefent enjoyment which. But the principle which prompts the defire of bettering our condition. in general only to momentary and fave. there inftant fcarce perhaps a fingle compleatly in which any man fituation. 4i_5. fore. greateft Bankruptcy perhaps and moft humiliating calamity which can befal an innocent greater part of I man. is occafional. The men. till comes with us from the into the grave. the principle. other forts of bufinefs not is much more perhaps than one in a thoufand. this misfortune unhappy men who into make but a very and all fmall part of the whole . Though all the principle of expence. tation of fortune is An augmenpart of the means by which the greater It is men propofe and wifh to better their condition. are fufficiently careful: . number the engaged in trade. is to fave what they acquire. thereoccafions. is OF NATIONS.

who fhould rewill produce it next year. a great blilhment. upon the all funds deftined for the maintenance of productive labour. Such produce nothing. This cafions. therefore. The uniform. and in time of war acquire nothing which can compenfate the expence of maintaining them. who fhould by a part only of the fpare revenue of the people. in is The whole. as not to leave a fuf- ficiency for maintaining the produdive labourers. great fleets efta- and armies. are maintained When multiplied. though they Tometimes are by publick prodigality and mifcondud. employed in mofl: countries maintaining unprodudlive hands. Such are the people who ecclefiaftical compofe a numerous and fplendid court. do not avoid it: as fome do not avoid the gallows. thereby the produce of other men's labour. as they themfelves war all lafts. frugality it and good condu£l. that frugality and the good condu(5l of individuals may not be able to com- penfate the wafle and degradation of produce occafioned by this violent and forced encroachment. tained Thofe unprodudive of their hands. indeed. conftant. to an unneceflary number. Great nations are never impoveridied by private. fufKcient to compenfate.4i6 THE NATURE AND CAUSES OF ful to avoid it. The next year's produce. the third year will be ftill lefs than that of be main- the fecond. but the publick extravagance of government. and thereby oblige fo great a number to encroach upon their capitals. even while the people. may confume fo great a fhare whole revenue. and if the fame diforder fhould that of continue. they may in a particular year fore. be lefs than that of the foregoing. or almoft the whole publick revenue. who in time of peace produce nothing. confume fo great a fhare of this produce. Some. is upon moft oc- appears from experience. BOOK I[. and . however. not only the private prodigality and mifcondud of individuals.

not only of the difeafe. is frequently powerful enough to maintain the natural progrefs of things toward improvement. by means of an additional capital only that the undertaker of any work can either provide his workmen with better machinery. it Like the unknown principle of animal frequently reftores health and vigour to the conftitution. requires a much greater capital where every of the work.THE WEALTH OF NATIONS. the fame The produdive powers be increafed. and that the annual produce of land and labour that its evidently greater at the latter than at the former. The annual produce of the land and labour of any nation can Its its be Increafed in the number of value by no other means. it is evident. but in confequence of an Increafe of capital. the principle from which publick and national. (late of a nation its two different periods. in fpite. its lands are better cultivated. When the wprk conthan be done confifts of a number of to keep every man ftantly employed in one way. and uninterrupted effort 417 condition. life. as well as private opulence is originally derived. can never increafed. manufadures more numerouB VoL. or make a more proper diflribution of employment to among them. in fpite both of the extravagance of government. the find. or of the' of- funds deftined for maintaining them. but of the abfurd prefcriptions of the dodor. an additional capital is almoft always required. of its The number' be much' produdive labourers. and of the greateft errors of adminiftration. or the produdive powers of thofe labourers who had before been employed. but by Increafing either productive labourers. I. pairts. or of a more In either cafe It is proper divifion and diftrlbution of employment. 3 H . at man Is occafionally employed in every different part When we is compare. number of labourers cannot but in con- fequence either of fome addition and improvement to thofe machines and inftruments which facilitate and abridge labour. of every man to better his CHAP. therefore.

all Nor have thefe publications been party pam. at the reftoration of Charles Though few people. its and its trade more extenfive. written too with fuch as to gain fome authority with the publick. yet during this period. indeed. The annual produce of the land and is labour of England. that the riches and induftry of the whole are decaying. in all tolerably quiet and peaceable times.4i8 THE NATURE AND CAUSES OF j-ous BOOK and more flourifhing. The . there frequently a fufpicion. the ftate of the country at periods fomewhat diftant from progrefs is is frequently fo gradual. certainly much greater than it was. To form The a right judgment of it. little more than at prefent. at near improvement not only not fenfible. we muft compare the one another. things which fometimes happen though the in country arifes general be in great profperity. of the country. I believe. or find either by the private mifcondu£t of of government. that. a II. have been written by very candid and very intelligent people who wrote nothing but what they believed. five years have feldom pafled away in which fome book or pamphlet abilities has not been publiftied. periods. and that more it mud have been added to it by the good conduct of feme. we may be affured that capital muft have increafed during the Interval between thofe two periods. to demonftrate that that the country was and depopulated. and for no other reafon but becaufe they believed it. by the pubHck extravagance to But we fhall this have been the cafe of ah-noft all nations. than had been taken from others. trade undone. agriculture neglefted. but from the or of certain declenfion either of certain diftrids branches of induftry. for example. a century ago. and pretending the wealth of the nation was faft declining. the wretched offspring of falfhood and venality. even of thofe who have not enjoyed the moft prudent and parfimonious governments.phlets. doubt of this. manufa£tures decaying. Many of them .

tov/ards the clofe of the diflenfions between the houfes of Lancafter. The was it 419 annual produce of the land and labour of England again. but fometimes. not only to retard. Thus. however. could they have been forefeen. there was. 1742. 1702. them all. at the end of the period. which has how many diforders and misfortunes have occurred. great perverfion of the annual produce from maintaining produdive to maintain unprodu£tive hands. in the confufion of civil difcord. the natural accumulation of riches. CHAP. in improvement. but to have left the country. certainly much this greater at the reftoration.far. the two revolution. but the cxpedted from them ? total ruin fire of the country would have been The and the plague of London. In the courfe of the four French wars. than had been about a century before. Dutch wars. which. not only the impoverifhment. as as it might be fuppofed. than at we can fuppofe v—v-— to have been about an hundred years before. 1 and 1756. not only much private and publick profufion. the four expenfive French wars of 1688. the it country was much more advanced York and conqueft. together with the two rebellions of 1 7 1 5 and 745. fuch abfolute wafte and deftrudion of ftock. probably) in a better condition than at the had been Norman was conqueft. many expenfive and unnecefTary wars. the nation has contracted more than a all hundred and forty-five millions of debt. more its improved country than of Julius when inhabitants were nearly in the fame ftate with the favages in North America. Even at this early period. poorer than at the beginning. At period too. the acceffion of Elizabeth. and Noman than during the confufion of the Saxon it Heptarchy. certainly did. 3 over and above the H 2 other . we have all reafon to believe. the diforders of the the war in Ireland. that in the happieft and moft fortunate period of paffed fince the reftoration. at the invafion certainly a Ca. it Even then at the it was.THE WEALTH OF NATIONS. » In eachof thofe periods.

whofe labour would have replaced. by raifed. therefore. labour of the The value of the annual produce of the land and country. annually employed in cultivating this land. it is have been not perhaps very eafy even to imagine. have retarded the natural progrefs of England towards wealth and improvement. and thofe which had been improved before would have been better cultivated. muft likewife be much greater. But had not thofe wars given it diredion to fo large a capital. undoubtedly. this capital has been and gradually accumulated by the private frugality and good condud of individuals. different occafions. more manufadures would have been eftablifhed. The annual produce But of its land and labour it is. would have been confiderably increafed by ftill it every year. and to what height the this time. in maintaining this labour. the greater part of would naturally have been employed in maintaining produdive hands. midft of filently all the exadions of government. continual. and uninterrupted effort to better their own condition.420 THE NATURE AND CAUSES OF other eUtraordinary annual expence which they occafioned. proteded . fo that the whole cannot be computed at lefs than two hundred millions. and every year's increafe would have augmented that of the following year. So great a fhare of the annual of the country. and thofe which had been eftablifhed before would have been more extended . more lands would have been improved. real wealth and revenue of the country might. has. It is this effort. it has not been able to flop it. The and In the capital. the whole value of their confumption. though the profufion of government muft. much greater at prefent than was either at the reftoration or at the revolution. more More houfes would have been built. by their univerfal. with a profit. undoubtedly. been employed upon an extraordinary number of unthis particular produdive hands. in maintaining produce of the land and labour fmce the revolution.

and in maintaining a great number or con- of menial fervants. therefore. for example. encroaching. as and in which every day's expence may. either alleviate or fupport and heighten the efFed of that of the following day. It is the higheft imto to pertinence and prefumption. it is to be hoped. however. and which. and without any exception. A man of fortune. ' manner moft advantageous. without accumulating it. fociety. proteded 421 C H a " by law and that is allowed by liberty to exert itfelf In the p. he chufes. or it may be more durable. either in things which are confumed immediately. that of their fubjeds never will. feem to contribute more to the growth of publick opulence thaa others. either whofe expence or juft equals their revenue. and a multitude of dogs and horfes . as has never been bleffed with a very parfimonlous government. neither increafes nor diminifhes Some modes of expence. or by prohibiting the importation of foreign luxuries. in kings and minifters. and prodigality diminiflies the publick capital. As frugality increafes. The revenue of an individual may be fpent.THE WEALTH OF NATIONS. it will do fo in all future times. may either fpend his revenue in a profufe and fumptuous table. which can therefore be accumulated. fo parfimony has at no time been the charaderiftical virtue of its inhabitants. the greateft fpendthrifts in the Let them look well after their truft private own expence. If their own extravagance does not ruin the ftate. tenting . fo the conduct of thofe. people. however. and they may fafely people with theirs. They are themfelves always. pretend to w^atch over the oeconomy of private reftrain their and expence either by fumptuary laws. which has maintained the u progrefs of England towards opulence and improvement in almoft all former times. and in which one day's expence can neither alleviate nor fupport that of another fpent in things . England.

every day's expence contributing fomething to fupport and heighten the eff^e£t of that of the following day be no greater at the : That of the other. the furniture. houfes. among men of you fortune. or in things more . the other in the other. though might not be worth that it cofl:. out the greater part of it in adorning his houfe or his country in ufeful or ornamental buildings. what moft of in amaffing a great wardrobe of fine cloaths. would be as compleatly annihilated as if they had never As the one mode of expence is more favourable than the other fo is it to the opulence of an individual. pidurcs . but of 9 which . thus when this mode of expence becomes of people in univerfal rich. the two. in colledling books. in The time. all which. he may lay villa. would be continually incrcafing. former too would. frivolous. ftatues. latter No trace or veftige of the expence of the would remain. In countries which have long been will frequently find the inferior ranks pofl'efTion both of houfes and furniture perfectly good and entire. their fuperiors They are able to purchafe them when grow weary of is them. trifling ingenious trinkets of different kinds all. jewels. years ago. and the effeds of ten or twenty years pro- fufion exifted. a little become ufeful to the inferior and middling ranks of people. Were two men the one chiefly in the one way. be the richer fl.422 THE NATURE AND CAUSES OF tenting himfelf with a frugal table and BOOK ' few attendants. would at ihe end of the period than at the beginning. would always be worth fomething. is baubles. in ufeful or ornamental furniture. and the general accommodation of the whole people gradually improved. end of the period. likewife to that of a nation. the cloathing of the rich. or. like the favourite and minifter of a great prince who died a few of equal fortune to fpend their revenue. the magnificence of the perfon whofe expence had been chiefly in durable commodities.ock The man of He would have a it of goods of fome kind or other. on the contrary.

ftatues. If a perfon fhould any time exceed in it. was. you will frequently find ftill many very excellent. produced them has decayed. III. though the wealth which. therefore. nor the other have chap. as a prefent to a fovereign. but to the Verfailles is whole country to which they belong. are frequently both an ornament and an honour. to reform his table from his equipage after great profufion to great frugality. pictures. which are fit for ufe. and other curiofiiies. In fome ancient which decay. If you go into thofe houfes too.THE WEALTH OF NATIONS. favourable. either have been long fometimes ftationary. Stowe and Wilton fort to England. or have gone fomewhat to you will fcarce find a fingle houfe which could have been built for its prefent inhabitants. which neither the one could have been been made for their . which fit his Queen brought with her from Denmark. and though the genius which planned: them feems to be extinguifhed. To much the number of his fervants. an ornament and an honour to France. What was formerly a feat of the family of Seymour. to lay down he has once fet it up. perhaps from not having the fame employment. are changes which cannot efcape the obfervation of his neighbours. and which are fuppofed to imply fome acof thofe knowledgment of preceding bad conduft. magnificent villas. great colledions of books. and which could as little have been made for them. Italy ftill continues to command fome of veaeration by the number of monuments of this kind which it pofi'efl^es. ufe.d is now an Ift inn upon the Bath road. The is expence too. though antiquated pieces of furniture. not only to accumulation. The marriage- of James the of Great Britain. 423 built. at but to frugality. Noble palaces. which is laid out in durable commodities. Dunfermline. he can eafily reform reduce without expofing himfelf very to the cenfure of the publick. Few. the ornament of an alehoufe cities. who . not only to the neighbourhood. a at for a fovereign to make few years ago. bf.

424 THE NATURE AND CAUSES OB out too BOOK « ^ — -vvho I have into once been of Co unfortunate as to launch the far this till fort expence. upholfterers. further expence is frequently rendered flops {hort. mechanicks. may is fometimes be ferved up at a great to the dunghill. by former to expence. hofpitality. But if the expence of this entertainment had been employed been in fetting to work. have bought them or in penny-worths pound and not have thrown away a fingle ounce of them. that Is laid out to in in durable comprofufe maintenance. increafes. it does not increafe. in furniture. tive. thrown and there is always a great deal wafted and abufed. no imprudence can be inThefe are things in which unneceflary ferred from his changing his condudl. one-half. but becaufe he has fied his fancy. mafons. in In the one way. &c . books or pidures. carpenters. befides. of equal value. than which employed the moft Of two or three hundred weight of provifions. who would weights. expence. would have diftributed among loft a ftill greater number of and people. I WOULD generous not. that commonly. gives befides. by all this be underftood to mean. a quantity of provifions. In the one way. and when a perfon he appears do fo. in been at too great an expence in building. When a man of fortune f fpends . is a greater number which of people. not becaufe he has exceeded his fortune. feftival. however. at any time. But if a perfon has. it in the other. this expence maintains producthe other unproductive hands. liberal that the one fpecies of expence always betokens a more or fpirit than the other. there- fore. perhaps. have afterwards courage to reform. the ex- changeable value of the annual produce of the land and labour of the country. ruin and bankruptcy oblige them. fatis- The modities.

as more favourable to pri- confequently. it All that I mean that the one of expence. not and furniture. he often fpends the whole upon his own perfon. The latter fpecies of expence. and gives nothing to any body without an therefore. rather than unprodudive hands.THE WEALTH OF NATIONS. Vol. the little ornaments of drefs indicates. frequently trifling. efpecially equivalent. towards frivolous objeds. capital. the greater part it of it with his friends and companions . but when he employs in purchafing fuch durable commodities. jewels. as always occafions fome accuit is mulation of valuable commodities. fpends his revenue chiefly in hofpitality. gewgaws. vate frugality. conduces more than the other to the growth of publick opulence. but a bafe and fort felfifh difpofition. I. he fliares 425 ^^ A P. when direded only a is. 3 I . to the increafe of the publick and as it maintains produdlive. trinkets. and.

is . in this caf(?. IV. as a flock referved for immediate confumption. neither reflore the capital nor pay the intereft. If he vifes it as a capital. to repent The man who borrows in order to fpcnd will and he who lends to him will generally have occafion folly. he employs in the maintenance of profit. contrary to the intereft both and both though the it no and doubt happens fometimes that people all do one the other. from the regard that intereft. is TH E it flock which lent at intereft is always confidered as a it is i^ capital by the lender.l rent for the ufe of either as a <5apit. yet. what was deftined for the fupport of the induflrious. who reproduce the value with a He If he both reftore the capital and ipay the intereft without alienating or encroaching ufes it upon any other fource of revenue. of his To of borrow or jgrofs to lend for fuch a purpofe. men have for their fo own quently we may as we are be afl'ured. He can. Stock lent at Interejl. therefore. and that in the mean time the borrower to pay ufe hi|a a certain annua.referved for immediate confump- tion. can. he a£ts the part of a prodigal. but in the former than in the latter. where ufury parlies out of the queftion. that it cannot happen very frerich fometimes apt to imagine. occafionally em- ployed in both thefe ways. no doubt. in this cafe. produdlive labourers. is*in all cafes. Afk any man of .al. much more frequently foon be ruined.42<S THE NATURE AND CAUSES OF C Of H A P. The borrower ^nay it or . that in due time to be reftored to him.as aftoek. He expeds it. without either alienating or encroaching upon fome other fource of revenue* fuch as the property or the rent of land» The ftock which is lent at intereft is. and diflipates in the maintenance of the idle.

it is wants as a flock for immediate confumption. Even they fcarce ever borrow merely to fpend. prodigal and The only people to whom flock is commonly lent. not the money. or to thofe who will fpend and he will at you for propofing the queftion. as it were. advanced to that they find it them upon neceflary to credit by fhopkeepers and tradefmen. Even among borrowers. of common prudence. or the goods which it can purchafe. it is If he wants it as a capital for employing from thofe goods only that the induftrious can be furnifhed with the tools. to forts of people he has he thinks. not the people in the world moft number of the frugal and induftrious furpaffes confiderably that of the idle. the therefore. to 427 which of the two flock. What they borrow. The capital borrowed replaces the capitals of thofe fhopkeepers and tradefmen. famous for frugality. 3 I 2 The . it employ laugh it profitably. is commonly fpent before they borrow it. will idly. neceffary for carrying on their work. flock. By means of the loan. Almost what all loans at interefl are filver. and the lender really fupplles him is. without their it. one may fay. or of gold and But what the borrower really wants. IV^ lent the greater part of his thofe who. it in money. to be employed as the borrower pleafes. and maintenance. at intereft in order to borrow pay the debt. afligns to the borrower his right to a certain portion of the annual produce of the land and labour of the country. thofe goods only which he can place in that induftry. but in order to replace a which had been fpent before. chap. the lender. made with.THE WEALTH OF NATIONS. but the If he money's worth. being expcded to make any very profitable ufe of are country who borrow upon mortgage. either of paper. materials. which the country geneftates. It is tlemen could not have replaced from the rents of their not properly borrowed capital in order to be fpent. They have generally congentlemen fumed fo great a quantity of goods.

B. with which W immediately purchafes of a thoufand pounds worth of goods. capitals. does not care to be at the trouble of employing himfelf. foon comes either from the is ground. with which X immediately purchafes of C another thoufand pounds worth of goods. which in ferves as the inftrument of loans the made annual that country. interefts. may. at as it is commonly exin prefTed. and X. than the amount of the money which ferves as the the fame pieces of money fucinftrument of their conveyance as well as for many ceffively ferving for many different loans. and of three different purchafes. not regulated by the value of the money. A. or.428 THE NATURE AND CAUSES OF The ' BOOK is quantity of {lock. different purchafes. is the power of thofe purchafes. What the three monled men A. but from the trading and manufaduring owners themfelves employ intereft. C. not only for replacing a capital. but the deed of afllgnment. for example. intereft. whether paper or the different coin. C Y. lends to W B a thoufand pounds. of money which can be lent intereft any country. equal to the whole amount of making thofe pieces. the money as it were. may be greater in almoft any proportion. In this power confift both the value and the . in value. to another which conveys from one care to hand thofe capitals which the owners do not employ themfelves. pieces. and for the fame reafon. but by as the value of as it that part of produce which. conflitute what called the monled only from the landed. Thofe capitals . in the fame manner. or from the hands of the produdlve labourers. the courfe of a days. lends the identical pieces to X. therefore. lends them to who few again purchafes goods with them of D. B having no occafion for the money himfelf. each of which is. either In this in manner the fame of coin. ferve as the inftrument of three different loans. It is diftin£t. capitals are deflined but fuch a capital as the owner As fuch they not commonly is lent out and paid back in money. or of paper. Even in the monled however. W. Y. afTign to the three borrowers. as in thefe laft the their own is.

is and the more confiderable what is itfelf altogether different from afTigned by it. and at the end of it a portion equally confiderable called the with that which had originally been afhgned to him. it both to the fmaller. in due time. they may likewife fucceffively ferve as the inflrument of re- payment.THE WEALTH OF NATIONS. the general increafe of or in other words. 429 is it. as. as hock increalesj . < The ftock lent by the three monied men. naturally accompanies capitals . during the continuance of the loan. C H^ A > P. may be all perfeaiy well fecured. confiderable portion of the annual produce upon condition that the borrower in return fhall. annually affign to the lender a fmaller portion. as Though deed money. without being at them themfelves. called the intereft. times their value. to bring back. fo or. In proportion foon as it as that fhare of the annual produce which. be confidered as an afTignment from the lender the borrower of a certain . ferves generally to the of affignment portion. A CAPITAL lent at interefl may. thus for ferve as the inftrument of to different the fame reafon. the ufe of the loans. as comes either from the ground. equal to the value of the goods which can be purchafed with —— -1 and is three times greater than that of the money with which the purchafes are made. repayment. an equal value either of coin or of paper. And thirty as the fame pieces of loans to money can three. it. increafes is any country. the goods purchafed by the different debtors being fo employed. in this to manner. either coin or paper. what called the monied interefl naturally increafes with The increafe of thofe particular capitals to from which the owners wifh the trouble of employing derive a revenue. with a profit. in deflined for replacing a capital. or from the hands of the is produdive labourers. however. Thofe loans.

Their competition the wages profits of labour. feem to as well as many of the other writers. The demand greater. Law. necelTarily the profits It which can be made by employing them becomes gradually more and more try a profitable arifes in diminifh. Mr. but from other caufes which are peculiar to this particular cafe- As capitals increafe in any country. confequence of the difcovery . at both ends. the quantity of flock to be lent at interefl increafes. the price which can be paid for that is. As terefl. not only from thofe general caufes which make tity the market price of things commonly diminifh as their quan- increafes. But upon mofl occafions he can to juftle that other out of this employment. and Mr. diflicult to find within the councapital. increafe of the funds which are deflined Labourers it grows every day greater and employment. Mr. method of employing any new There the confequence a competition between different capitals. the rate of interefl. for pro- dudlive labour. But when the which can be made by the minifhed. have imagined that the increafe of the in quantity of gold and I filver. mufl neceffarily be di- tninifhed with them. but it in order to get fell. but the owners of to capitals find raifes difficult to get labourers employ. to get poffeffion owner of one endeavouring which hope is of that employment occupied by another. and finks the profits of flock. the inor the price which muft be paid for the ufe of that flock. Montefquieu. neceflarily diminilhes. Locke. ufe of a capital are in this manner di- it were. for maintaining eafily find by the it. BOOK the quantity of flock to be lent at interefl: grows gradually- greater and greater.430 THE NATURE AND CAUSES OF increafes. he mufl fometimes too buy dearer. by no other means but by dealing upon more reafonable terms. only to fell He mufl not it what he deals in fomewhat cheaper. as the ufe of it.

perhaps. quantity of goods which could have purchafed This fuppofition will not. value too. four. and three per Let us fuppofe that in every particular country the value of filver has funk precifely in the fame proportion as the rate of intereft . the Spanlfh . iv. of the CHAP. but are going to it is the moft favourable to the opinion which this fuppofition it we examine. and confequently the price which could be paid for This notion.^ rate muft have remained the fame. was the real caufe of the lowerinc. that about it. be found any where agreeable to the truth. however. cent. to may ferve to explain more diftindly the fallacy which feems have mifled thofe gentlemen. that of the intereft. five. It common rate of intereft through the greater has fince that time in different countries funk cent. lefs Thofe metals.. feems to have been the ^art of Europe. ten per cent. Hume. to fix. for five example. I believe. the fame muft neceffarily have lowered in the and exadtly fame proportion. .THE WEALTH OF NATIONS. and even upon is utterly impoffible that the lowering of the value of filver could have the irnalleft tendency to lower the rate of intereft. Before the difcovery of the Spanifh Weft Indies. they fay. having become of ticular value themfelves. the ufe of any par- portion of them necefTarily became of lefs it. If a hundred fifty pounds are in thofe countries now of no more value than pounds were then. though the had never been altered. the where intereft has been reduced from ten to filver per fame quantity of it can now purchafe juft half the before. a-nd The pro- portion between the value of the capital that of the intereft. which at firft fight feems fo plaufible. 431 Weft Indies. unneceffary to fay any thing more The following very fhort and plain argument. it is. and that in thofe countries. has been fo fully expofed by Mr. pounds were then. rate of intereft through the greater part of Europe. ten pounds muft now be of no more value than five Whatever were the caufes which lowered the value of the capital.

the demand for would be the fame. wages appear to be increafed. the The really. They would changed for a greater number of pieces of filver.432 THE NATURE AND CAUSES OF altered. fifty hundred pounds pounds now can now are worth no more than were then. be worth no more than two pounds ten {hillings were then. . could have than to diminifti the value of that metal. therefore. therefore. would really be the fame. but their real value would be precifely the fame as before. but they would purchafe profits only the fame quantity of goods. though nobe paid minally greater. but the thing afligned would be precifely the fame a& eff"eds. Its price or wages. half of its which is fuppofed to be equal to oneis former value. the quantity of labour which they could command. but. like the conveyances of a verbofe attorney. though they may fometimes be no greater than before. ' BOOK » By altering the rate. and could produce only the fame The funds for it maintaining produdive labour being the fame. which equal to one. the number of people they could maintain and employ.fourth only of the value of the former Any no other increafe in the quantity of it filver. before. we give for the ufe of a capital. The deeds of aflignment. from ten to five per cent. whom would be for precifely the fame. The capital of the country would be the fame. though a greater pieces it number of portion of might be requifite conveying any equal from one hand to another. therefore. By re- ducing the rate of intereft. while that of the com- modities circulated by means of efi"edl remained the fame. in a greater They would number of pieces of filver. the quantity of filver is When that increafed. would be more cum- berfome. is on the contrary. an intereft intereft. the proportion beIf a five w tween thofe two values neceflarily altered. all forts The nobe ex- minal value of of goods would be greater. of ftock would be labour are paid to the fame both nominally and The wages of which his is commonly computed by labourer.

The whole of the country being augcapitals mented. the common of But the whole capital of the country being the capitals fame as before. a greater had The profits of ftock would be diminiflicd both really capital and in appearance. of labour.THE WEALTH OF before. Any increafe in the quantity of commodities annually circulated within the country. might continue it be money. Its wages would naturally fink. while that of the money which circulated them remained the fame. would really be augmented. therefore. Thus the profits in a particular country five fhillings week are faid to be common wages of ftock. would. would be the fame. was compofed. 4 ? But the profits of ftock are not computed by the numilie ber of pieces of filver with which they are paid. and con- fequently the rife demand for that labour. would naturally be augmented along with Vol. intereft of moufe what can commonly be given for the ufe of money being neceffarily regulated by what can commonly be made by the of it. the competition between the different llkevvife individuals into which it was divided would be the fame. befides that of raifing the value of the money. I. produce many other important effedts. The by capital of the country. and ten per cent. but by the pro- portion which thofe pieces bear to whole a capital employed. 3 K The . expreffed the fame quantity of labour. with the demand. though It it might nominally to be the fame. but that fmaller quantity might purchafe a greater quantity of goods than done before. the competition between the different it of which it. proportion between capital and profit. on the contrary. and yet might appear to They might be paid with a fmaller quantity of money. but would command a greater quantity of 1 he quantity of produdive labour which it could maintain and employ would be increafed. N A T 1 O iN S. and confequently the common . They would all The common ney trade with the fame advantages and difadvantages.

fomething ought every where of it. This regulation. He is ob- one may fay fo. it If it is fixed precifely at the lowefl market price. of ftock. the law. . profits The intereft of money> keeping pace always with the ner. If this legal rate fhould be fixed below the lowefl market rate.434 THE NATURE AND CAUSES OF The owners of which thofe particular capitals would be obliged to content themfelves with a fmaller proportion of the produce of that labour their refpeflive capitals employed. but for the rifk which his creditor runs liged. in order to prevent the extortion of ufury. the debtor being obliged to pay. ruins with honefl people. mufl pay him for the rifle which he runs by acvalue of that ufe. In countries where interefi: is permitted. intereft of money has been prohibited by But as fomething. can every where be made by the ufe of to be paid for the ufe money. all who refpedt the laws of their country. or the price which commonly paid for the ufe of money by thofe who can give the mofl: undoubted fecurity. in this manthe though the value of money. has been found from experience to increafe the evil of ufury . not only for the ufe of the money. or quantity of goods which any particular greatly augmented. generally fixes the higheft rate which can be taken without incurring a penalty.. and obliges them to have recourfe to exorbitant 8 ufurers. fum could purchafe. was In fome countries the law. inftead of preventing. be greatly diminiflied. might. if by accepting a compenfation for that ufe. to infure his creditor from the penalties of ufury. nearly the fame as thofe of a total prohibition of creditor will not lend his The and the debtor cepting the full money for lefs than the ufe of it is worth. the credit of thofe who cannot give the very bcfl fecurity. the efFedts of this fixation mufl be interefi. This rate ought al- ways to is be fomewhat above the lowefl market price.

intereft. A great part of the capital of the country would thus be kept out of the hands which were moft likely to able and advantageous ufe of it. for example. as borrowers. it is to to be obferved. who will give for the ufe of money no more than it. fach as Great Britain. rate. who alone would be willing to give high people. is. different the law being evaded in feveral ways. make a profit- and thrown into thofe which were moft likely to wafte and deftroy it. fober is fixed but a very above the loweft market people are univerfally preferred. ufurers. was fixed fo high as eight or ten per cent. intereft in Great Britain.THE WEALTH OF NATIONS. the prcfent legal rate. Notwith- theedidof 1766. much from the former is he dares to take from the and his money much fafer in the hands of the one fett of people. x p. No law can reduce the common rate of intereft below the loweft ordinary market rate at the time ftanding when that law is made. would be lent to prodigals this and projectors. as proper as any. reduce the rate of Intereft from four per cent. five per perhaps. money continued to be lent in France at five per cent. than in is thofe of the other. ought not If the legal rate of much above the loweft market rate. to prodigals and projedors. A great part of the capital of the country it is thus thrown into the hands in which moft likely to be employed with advantage. where at money lent c h v. by which the French king attempted to five to . government three per cent. the greater part of the money Sober which was to be lent. a part of what they are likely to make by the ufe of would not venture into the competition. to 455 is In a country. and to private people upon good » fecurity at four cent. though be it ought to be fome- what above. The legal rate. and four and a half. on the contrary. 3 K 2 The . . Where little the legal rate of intereft. intereft The perfon as who lends money gets nearly as latter.

he wifhes it to derive a revenue. but they will compenfate a certain difference only fall and if the rent of land fhould fhort of the intereft of money by a gr-eater difFerence. is The market fells at rate of in- tereft higher in France than in England. or lend it out at intereft. land ordinary price. together with fonie other advantages which almoft every where attend upon this fpecies of property. . five. will generally difpofe him to content himfelf with a fmaller revenue from land. which would foon reduce ordinary price. compenfate a certain difFerence of revenue . and thirty years purchafe. than what he might have by lending out fufficient to his money at intereft. and the lower.43^ R 'i'l'I^ i: NAT'JUE AND CAUSES OF it o o The who has ordinary market price of land. every body would raife its much more land. Thefe advantages arc . As interelt: to fix. common price of land at is In England it commonly thirty} in France twenty years purchafe. the price of land rofe to twenty. and twenty. On the contrary. without taking the trouble to employ himfelf. deliberates whether he fhould buy land with it. its nobody would buy land. is to be obferved. than compenfate buy which again would fooa was at ten per cent. depends perfon every where upon the ordinary market rate of interelL a capital The from which. and four per cent. if the advantages fhould the diiFerence. When intereft was commonly lunk five fold for ten and twelve years purchafe. The fuperior fecurity of land.

in ways : either. as does likewifc the value which that employment adds to the annual produce of the land and labour of the country. mines. thofe of wholefale merchants. thofe all of all mafter manufadurers. Unless . ^T~^HOUGH -*• all capitals are deftincd for the maintenance of CHAP. . thirdly. ing that rude produce for immediate ufe and confumption in tranfporting or. places where they abound in dividing particular portions of either into fuch fmall parcels as fuit the occafional demands of thofe are employed the capitals of all who want them. or. A CAPITAL may be employed in four different fumption of the foclety. which equal capitals are capable of putting into motion. ^x'iii.t in procuring the rude produce annually required for the ufc andcon- manufa£luring and prepar. and in the fourth. either the rude or to thofe manufadured produce from the where they are wanted. the different Employment of Capitals. or to the general conveniency of the fociety. or fifheries.THE WEALTH OF NATIONS. varies extremely according to the dlverfity of their employment. fecondly. Each of thofe four methods of employing a capital is eflentially neceffary either to the exiflence or extenfion of the other three. or. lallly. 437 C K A Of P. the fecond. yet the quantity of that labour. V. produdive labour only. the third. thofe of all retailers- It is difficult to conceive that a capital fhould be employed in any way which may not be claffed under fome one or other of thofe four. thofe who undertake in in In the the firft way improvement or cultivation of lands.

or in the furniture of his fhop. every man at a would be obliged time. it either would never be produced. neither exift. from the places is where it abounds to thofe wanted. the occafional demands of thofe who want them. The capital of the merchant exchanges the furplus produce of one place for that of another. to purchafe a whole ox or a whole fheep to the rich.438 THE NATURE AND CAUSES OF Unlfss kind could a capital BOOK was employed in furnifhing rude produce trade of to a certain degree of abundance. fix and much more If a poor workman was obliged to purchafe a month's or months provifions at a time. and which yields him a revenue. manufadures nor any Unless be fit a capital was employed in manufaSuring that part of the it rude produce which requires a good deal of preparation before for ufc can' and confumption. either the rude. is he would be forced to place in that part of his flock which referved for immediate . If there than his immediate occafions required. becaufe there could be no fpontaneoufly. it demand for it or if it was produced and could add would be of no value in exchange. This would generally be inconvenient fo to the poor. nothing to the wealth of the fociety. Unless where it a capital was employed in tranfporting. or manufadtured produce. for example. in the inftiuments of his trade. no more of either could be produced than was neceflary for the confumption of the neighbourhood. Unless fmall a capital was employed in breaking and dividing certain into fuch portions either of the parcels as fuit rude or manufadured produce. every man would be obliged to purchafe a greater quantity of the goods he wanted. was no fuch trade as a butcher. a great part of the flock which he employs as a capital. and thus encourages the induftry and increafes the enjoy- ments of both. .

This evil. than if were in the hands of one only and if it were divided among twenty. which he makes by in this much more than of the retailer compenfates the additional price which the proht impofes upon the goods. and which yields him no C ii A r. the greater. may fometimes decoy a weak cuftomer buy what he little has no occafion for. to was monopolized by one or two Some of perhaps. their competition would be to- juft fo much and the chance of their combining gether. nor would neceifarily be prevented by reftridiag their numbers. in order to raife the price. than if the whole perfons. can be employed in the grocery trade cannot exceed what ficient fuf-» to purchafe that quantity. can never hurt either the it confumer. or to So far from being that neceflary. is of too it impor- tance to deferve the publick attention. fell their competition will tend to it make cheaper. for example^ which can be fold in a particular its town. It is not the multitude of . fafely be trufted to their difcretion. He thus enabled to furnifh it work way. or the producer. tax them. though they may fo as to hurt one another. reftri£l their numbers. is limited by the demand which is of that town and neighbourhood. juft fo much the i lefs. He is thereby enabled to employ almoil: is whole ftock as a capital.THE WEALTH OF NATIONS. on the contrary. Their competition-might perhaps ruin fome of themfelves but to take care of this is the bufinefs of the parties concerned. immediate confumption. and the profit. 439 revenue. be multiplied fo as to hurt the publick. however. they can never.. The If capital. from day or even from hour to hour his as he wants it. to a greater value. therefore. The prejudices of fome are altogether either to political writers againft fhopkeepers and tradefmen. Nothing can be more convenient to purchafe his fubfiftcnce for fuch a perfon than to be able to day. The quantity of grocery goods. this capital is divided between two both of them different grocers. It and it may make them. is it without foundation. the retailers both trade iell muft tend to cheaper and buy dearer.

The ways peiTons whofe capitals are employed in any of thofe four are themfelves produdtive labourers. which the two firft produce. when pro- perly direded. and generally adds to price the at leaft of their own maintenance and confumption. the land and labour of they be- The capital of the retailer replaces. employed in each of thofe four different ways. that of the merchant of whom he purchafes goods. however. the price of the goods fell. together with their profits. and all retailer. to give the OF people BOOK moft fufplcious example. of the manufadurer.440 THE NATURE AND CAUSES of ale-houfes. confifts the to the whole value which employment adds annual produce of the land and labour of the fociety. The retailer and thereby enables him is to continue his bufinefs. It is by this fervice chiefly that he contributes indiredly to fupport the produdive labour of the fociety. that occafions a fxeneral difpofition to drunkennefs among the common . and thereby enables them to continue their refpedlve trades. fixes and realizes the fubjedl or vendible its com- modity upon which value fits it is beflowed. itfelf in Their labour. and augment very different proportions the value of the annual prothe fociety to which duce of long. but that difpofition arifing from other caufes neceflarlly gives employ- ment to a multitude of ale-houfes. himfelf the only produ£tive labourer whom it immediately employs. and the two buy and Equal capitals. The capital of the wholefale merchant replaces. The pro- of the farmer. its In his profits. are drawn from lafl. the capitals of the farmers and manufacturers of whom he purchafes the rude and manufactured produce which he deals in. of the merchant. and to increafe the value of its . will immediately put into motion very too different in quantities of produ£live labour. together with its profits.

intended. It and inftruments of trade employed in the therefore. Part of his circulating capital employed in purchafing But materials. materials. the capitals of the farmers and miners of whom he purchafes them. as to 3 Vol. and adds a much greater value to the annual produce of the land and labour of the fociety. I. It diftributed among profits the different workmen whom he employs. too nature labours along with man . than an equal capital in the hands of any wholefale merchant. L direa .THE WEALTH OF NATIONS. and immediately adds to the annual produce. augments profits. bufinefs. though they do that too. a great part of it is always. not fo The moft important operations of agriculture Teem much to incrcafe. In agriculture cofls but his labouring cattle. and though her labour no expence. thefe refpeds retailer. Not only his labouring fervants. the price of thofe goods by the is value. is Its operation in both a good deal fuperior to that of the capital of the Part with its of the capital of the mafter manufacSiurer is employed as a fixed capital in the inftruments of his trade. and replaces. a puts immediately into motion? much greater quantity of produdlive labour. by their wages. are produdlve labourers. together profits. not only of his but it of their wages. either annually. His capital employs too the fallors riers who tranfport his goods from one place to another. or in a much fhorter period. that of fome other artificer is of whom he purchafes them. This all the all produdive labour the value which it which immediately puts into motion. five its produce has its value. augments the value of thofe materials and by their maflers upon the whole ftock of wages. and replaces. its 441 and carand it annual produce. with their profits. No equal capital puts into motion a greater quantity of produdivc labour than that of the farmer. as well as that of the mofi expen- workmen.

It is the work of lefs nature which remains after dedudling or compenfating every thing which can be regarded as the work of man. it adds a much greater value to the annual proto duce of the land and labour of the country. a It is feldom than a fourth. be in proportion to the capital ftrength of the agents that occafion The employed in agriculture. a great part of the work always like remains to be done by her. Of all the ways in which a capital . all . but in proportion too to the quantity of produdive labour which it employs. therefore. manufadlures can ever occafion nature does In them nothing . or fmaller according to the fuppofed in other words. not only occafion. according fertility greater extent of thofe powers. labourers and labouring cattle. not only puts into motion a greater quantity of produdive labour than any equal capital employed in manufadures. and frequently more than third of the whole produce. or natural to the fuppofed or improved of the land. rent may be confidered as the produce of thofe powers of nature. owners profits but of a much all Over This and above the capital of the fiirmer and its they regu- larly occafion the reprodudlion of the rent of the landlord. It is the ufe of which the landlord lends to the farmer. they animate the of and after all their labour.442 THE NATURE AND CAUSES OF d'neO. man does and the reprodudion muft always it. The the to . therefore. or together with its reprodudion of a value equal the capital which employs them. profits. greater value. in No equal quantity of fo produdive labour employed great a reprodudion. the real wealth and revenue of its inhabitants. their own confumption. employed in agriculture. A field overgrown with briars and brambles may frequently produce as great a quantity of vegetables as the beft cultivated vineyard or corn field. Planting and tillage freaftive fertility quently regulate more than nature . the to workmen in manufadures. the fertility of nature towards the produdlion of the plants moft profitable to man.

afterwards fent Whether portance. The capital of the is manufadurer muft no doubt on . though there refident are fome exceptions to this. according as fell can either buy cheap or dear. the number of produdlive labourers neceffarlly lefs than If he had been a native by one produce. man only and the value of 3 their annual by the profits L 2 . the merchant whofe capital exports the furplus prois duce of any fociety be a native or a foreigner. feems have no fixed or neceffary refidence any-where. If he is . to the farm. and to the fliop of the retailer. Their em- ployment confined almoft to a precife fpot. and fome part of that cloth to Spain. Lyons Is very diftant both from the places afford the materials of its manufadures. and from that where the compleat manufadure which is confumed. of very tlielr little im- is a foreigner. They muft generally too.THE WEALTH OF NATIONS. on the contrary. The people of faflilon in Sicily are cloathed in filks made in other countries. and from thofe which confume them. it is by far the moft advantageous the CHAP. It may frequently be at a great diftance both from the place where the materials grow. members of the The ^o capital of a wholefale merchant. from the materials is which back their own produces. Part of the wool of Spain is manufac- tured in Great Britain. but it may wander about from place to place. The of any capitals fociety. is employed in the agriculture and in the retail trade muft always relide within that fociety. belong to fociety. capital can be fociety. 443 to employed. refide is where the manufailure carried but where this fhall be not always neceflarily determined.

444 fits ftill THE NATURE AND CAUSES OF of that one man. or to their country. The capitals of the Britifh manufadurers who work up and hemp annually imported from the coafts of the Balwhich produce them. A PARTICULAR perfon. and to tranfport 4 the . which are a part of the furplus produce of thofe countries are furely very ufeful to the countries Thofe materials which. puts into motion a greater quantity of productive labour. country. of to continue the produdion and the Britifli manufadurers replace the capitals of thofe merchants. or to third country. and thereby encourage them . it fhould not refide the flax tick. be very ufeful to the country. would be of no value. however. fame manner as if he had been a nato their furplus proit The capital of a foreigner gives a value duce equally with that of a native. to manufadure and prepare their whole rude produce for immediate ufe and confumptlon. by exchanging for for fomething- which there is a demand at home. unlefs it was annually exchanged for fomething is in demand there. the people The merchants who export it. The failors or carriers whom he employs may belong Indifferently either to his country. in the fame manner as a particular may frequently not have capital fufficient^both to improve its and cultivate all lands. and adds a greater value to the annual produce of the land and labour of the fociety. and would foon ceafe to be capitals produced. enables tal him to continue his bufinefs the fervice by which the capi- of a wholefale merchant chiefly contributes to fupport the proto dudive labour. in the fome tive. It as effedlually replaces the capital of the perfon who produces that furplus. though within it. It is of more confequence that the capital of the manufadurer It neceflarily fhould refide within the country. and the foclety to augment the value of the annual produce of which he belongs. and as effedually . It may. replace the who produce it.

and adds the greateft value to the annual produce. as will likewife be the value its which employment adds to the annual produce of the land and labour of the fociety. To attempt. has the leaft effect any of the three. If there among them. to acquire a fufficient one. the capital employed in manufadures puts into motion the greateft quantity of produdive labour. preto maturely and with an infufficient capital. is. for want of a nufadlure it capital to ma- at home. The capital . has not arrived at that degree of opulence which it feems naturally deftined. where at it can be exchanged for fomething for •which there is a demand home. certainly not the fhorteft do all the three. of which the inhabitants have not ent to tranfport the produce of their own induftry to thofe diftant markets where there are any merchants demand and confumption for it.THE WEALTH OF NATIONS. it is way for a fociety. the greater will be the quantity of produdlive labour it which puts into motion within the country. That of which is employed in the trade of exportation. The wool of the fouthern counties of Scotland a great part of it. however. indeed. in proportion as a greater fhare of employed agriculture. manufadlured in Yorkfhire. After agriculture. after a long land carriage through very bad roads. When the capital of any country is not fufficient for it is all thofe in three purpofes. they are properly only the is agents of wealthier merchants who refide in fome of the greater commercial cities. the furplus part either of the rude or manufadtured produce to thofe diftant markets 445 CHAP. There are many little manufadluring towns capital fuffici- in Great Britain. The inhabitants of many dif- ferent parts of Great Britain have not capital fufficient to improve and cultivate all their lands. which has not capital fufficient for all thofe three purpofes. no more than would of al! be for an individual. The for country.

flop the im- portation of European manufadures.446 THE NATURE AND CAUSES OF all ' BOOK *——^ the individuals of a nation. Were and. belong in the retail many of them to merchants who mother country. that almoft their have hitherto been employed in agriculture. to increafe the therefore. Even the ftores and warehoufes in which goods are retailed in fome provinces. revenue. houfhold and coaifer manufadures excepted which neceffarily accompany the progrefs of agriculture. has is its limits in the fame manner as that of a fingle individual. and which are the work of the vate family. and afford one of the few inftances of the trade of a fociety being carried are not refident on by the capitals of thofe who members of it. when all it is employed in the way that affords the greateft revenue to the in- habitants of the country. in the ally The capital of all the individuals of a nation increafed fame manner as that of a fingle individual. by thus giving a mo- own countrymen inflead as could manufailure the divert any confiderable part of their capital into this employment. the Americans. particularly ginia and Maryland. women and children in every pri- The greater part both of the exportation and coafting is trade of America. they would retard of accelerating the further and would obftrud inftcad increafe in the value of their annual produce. is make the neccffarily in But the revenue of all the inhabitants of the country proportion to the value of the annual produce of their land and labour. fort of violence. either to by combination or by any other nopoly to fuch of their like goods. thofe They have no manufadures. . as they will thus be enabled to greateft favings. to it by their continu- accumulating and adding It is likely whatever they fave out of their fafteft. and capable of executing only certain is purpofes. It has been the principal caufe of the rapid progrefs of our American colonies towards wealth and whole capitals greatneis. refide carried on by the capitals of merchants who from Virrefide in Great Britain.

to fell again All wholefale trade. are chiefly renowned for their fuperiority agriculture and manufadlures. The greater part of the furplus produce of all thofe three countries feems to have been always exported by foreigners. according to all accounts. HA -. accord- ing to the different proportions in which ture. The difference too very- great. and wholefale trade. trade. . it is employed in agriculis manufadures. of thofe of antient Egypt. to attempt. perhaps. wealth and grcatnefs. monopolize themfclves their whole exportation The courfe of fo human profperity. the wealthieft. may be reduced to three different forts. the carrying trade. The home itradc . we give credit to the wonderful accounts of the wealth and cultivation of China. all buying in order fale. fomething gold and elfe who gave in exchange for there. indeed. it for which they found a demand frequently filver. in the This would be to ftill more the to were they _j fame manner. inftead of 447 G v promoting the progrefs of their country towards real cafe. of the fame kind prevails among the Indians and the Chinefe have never excelled in foreign commerce.— P. antient ftate of Indoftan. unlefs. feems fcarce ever to have been of long continuance as to enable any great country fufficient to acquire capital for all thofe three purpofes. The antient Egyptians had a fuperftitious antipathy to the fea ftition nearly a fuper. and the by whole- The home trade. It is thus that the fame capital will in any countr)' put into motion a greater or fmaller quantity of produ(ftive labour.THE WEALTH OF NATIONS. They do not appear to have been eminent for foreign trade. according to the different forts of wholefale trade in which it is any part of employed. that ever in were in the world. and add a greater or fmaller value to the annual produce of its land and labour. ' and of the Even thofe three countries. foreign trade of confuraption.

The carrying trade employed in tranfafting the commerce of foreign countries. generally brings back in return at leaft an equal value of other commodities. employed two but one of them only in fupporting domeftick induftry. diftlnct capitals. trade.448 trade THE NATURE AND CAUSES OF is employed in purchafing in one part of the fame country. generally replaces by every fuch operation two diftind capitals that had both been employed in the agriculture or manufadlures of that country. comprehends both the inland and the coafting is The foreign trade of confumption employed in purchafing foreign goods for is home confumption. and It felling in another. are the produce of domeftick induftry. The capital which fends Britilh goods to Portugal. The capital which fends Scotch manufaftures corn London. The other is . or in carrying the furplus pro- duce of one to another. by every fuch operation. replaces too. and brings back Portuguefe goods to Great Britain. it When both neceffarily replaces by every fuch operation two diftinfl capitals. and thereby enables them tinue that employment. The capital employed In purchafing foreign goods for homeis confumption. The capital which is employed in purchafing In one part of the country in order to fell in another the produce of the induftry of that country. twoBritifh capitals which had both been employed in the agriculture or manu- fadures of Great Britain. the produce of the induftry of that country. by every fuch operation. when this purchafe made with is the produce of domeftick induftry. and brings back Englifti and manufactures to Edinburgh. which had both been employed in fupporting produdlive labour. and thereby enables them to conto tinue that fupport. replaces by every fuch operation only one Britifti capital. neceflarily replaces. to con- When it fends out from the refidence of it the merchant a certain value of commodities.

or with fomething elfe that had been purchafed with it . to the induftry of the country than the The foreign goods for home.confumption may fometimes be but with purchafed. If the capitals are equal. either immediately. But the returns of the foreign trade of confumption are very feldom fo quick as thofe of the home-trade. The eft'edts. Though it the returns. but in exchange for fomething that had been produced at home. therefore.' chafed with the tobacco of Virginia. capital. not with the produce of dbmeftlck induftry. of a capital employed in fuch a round-about foreign trade of confumption. I. is 449 a Portuguefe one. 3 M with . except that the diftant. of the foreign trade of confumption fliould be as quick as thofe of the home-trade. and fometimes three or four times in the year. the fame as thofe of one employed in the moft diredt trade of the fame kind. and hemp of Riga are pur'. fome other foreign goods. Thefe laft. therefore. the one will give four and twenty times more encouragement and fupport other. foreign goods can never be acquired. which had been purchafed' Vol.THE WEALTH OF NATIONS. The returns of the home-trade generally come in before the end of the year. muft have been purchafed either immediately with the produce of domeftick induftry. or be fent out and returned twelve times. or after two or more different ex- changes. therefore. the capital employed in will give but one-half the encouragement to the induftry or productive labour of the country. trade of confumption feldom The returns of the foreign come in before the end of the year. are. however. before a capital employed in the foreign trade of confumption has made one. final returns are likely to be fiill more three' as they muft depend upon the returns of If the flax two or djftindt foreign trades. in every refpedl. for the cafe of war and conqueft excepted. therefore and fometimes not till after two or three years. A employed in the home-trade will fometimes make twelve operations.

but manu- with the fugar and rum of Jamaica which had been trades (hould purchafed with thofe manufadures. or in the enit couragement and fupport which of the country from which it can give to the produftive labour carried on. will generally give lefs encouragement and fupport to the produdive labour of the coun- try. whom fecond buys the goods imported by the thofe imported and the third buys by the fecond. If they is are pur- chafed with the gold of Brazil. in order to export them again. had the manufaftures and the flax for one another. or with the filver 2 . the ' OF BOOK merchant muft wait for the returns of tvvo diftlnd foreign trades before he can employ the fame capital in re-purchafing a like quantity of Britifli manufaxflures. and hemp been dlredly exchanged The whole capital employed. can it make no difference with regard to the country. of firft. Three times a greater capital muft in both cafes be employed. If the tobacco of Virginia had been purchafed. he muft wait for the returns of three.450 THE NATURE AND CAUSES ^rjth Britlfli manufaftures. for example. in fuch a round-about foreign trade of confumption. in order to exchange a certain value of Britifti manufactures for a certain quantity of flax and hemp. of . each merchant indeed will in capital this cafe receive final the returns of his own more quickly . Whether the to whole capital employed in fuch a round-abput trade belong one merchant or to three. than would have been neccflary. therefore. but the returns of the whole capital employed in the trade will be juft as flow as ever. If thofe two or three diftind foreign diftlnft happen the to be carried on by two or three merchants. than an equal capital employed in a more direct trade of the fame kind. can occafion no efientlal diff'erence either in the nature of the trade. Whatever goods for be the foreign commodity with which the foreign it home-confumption are purchafed. though may with regardto the particular merchants. not with Britifh factures.

That part of the capital of is any country which is employed in the carrying trade. on account of fmall bulk and great is lefs expenfive than that of almoft any other foreign goods of equal value. The tranfportation of their thofe metals from one place value. therefore. Whether. a trade of this kind likely to impoverilh the country I fhall which amine it is carried on. The demand of the country may frequently. and no goods. chap. will replace juft as faft or juft as flow the capital which is immediately employed in fupporting that produdlve labour.THEWEALTH of Peru. be fupplied more compleatly and at a fmaller expence from than in any other. which carries the fruits' corn of Poland to Portugal. muft 451 and filver. in this manner. like the tobacco of Virginia. befides. are riage. and brings back the 3 and wines M 2 of . yet neither of them belongs to that particular country. or that had been purchafed elfe fomething labour that was fo. Their freight is much lefs. therefore. Though it may replace by every operation two diftinft capitals. by the continual exportation of thofe is metals. It feems even to have one advantage over any other equally roundabout foreign trade. this gold OF NATIONS. may frequently by the intervention of gold and filver. as the produdive of the country is concerned. have been purchafed with fomething that either was the produce of the with induftry of the country. than be purchafed with a fmaller quantity of the produce of domeftick induftry. is So far. in any other way. by that of any other foreign goods. The capital of the Dutch merchant. the foreign trade of confumption filver. altogether withdrawn from fupporting the to fupport that of productive labour of that particular country. lefs liable to fuffer by the car- An equal quantity of foreign goods. which carried on by means of gold and all has all the advantages and the inconveniencies trade of any other equally and round-about foreign of confumption. have occafion to ex- at great length hereafter. fome foreign countries. to another. and their infurance not greater.

upon this account. When. that he adually does fo upon fome particular It is occafions. it. replaces by every fuch operation two capitals. that. but one of them in fupporting that of Poland^ arid the other that of Portugal. The profits only return regularly to Holland.. as it when capital on by could in the carrying trade..4^2 THE NATURE. of- for example. by carrying part of the furplus produce of the one to the other. and puts into motion a certain number of proin dudive labourers of that country. that freight. coafting veffels. is part of the capital employed in ftributed which pays the di- among. of failors and fhipping which any particular does not depend upon the nature of the trade. and conftitute to the the whole addition which this trade neceflarily makes annual produce of the land and labour of that country. the carrying trade of failors any particular country is carried on with the ihips and it of that country. or even in the home-trade. for example. employs more fhipping . the carrying. Almoft all nations that have had any carried it- confiderable fhare of the carrying trade have. to the nature of the trade that A Dutch merchant may. not iri Dutch. fad. It may be prefumed. The coal-trade from Newcadle London. But the fame either in capital may trade employ many failors and fhipping. of which the defence and fecurlty depend upon the number of as its failors and fhipping. carriers countries. neither of which had been employed in fupporting the produftive labour of Holland. to. on in this manner. trade has been fuppofed peculiarly advantageous as fuch a country Great Britain. feem effential Ihould be fo. however. indeed. employ his capital in tranfading the commerce Poland and Portugal. The number can employ. chiefly upon the former of to thofe two circumflances. Iiowever. but in Britifh bottoms. upon the diftance of the ports between which they are ried. AND CAUSES OF ' BOOK v_^.J of Portugal to Poland. the foreign carried of confumption. but partly upon and' partly to be car- the bulk of the goods in proportion to their value. The It it trade itfelf has probably de- rived its name from to other the people of fuch countries being the does not.

muft of its al- ways be of the riches in proportion to the value all annual produce. no great dlftance. riches. therefore. nor fuperior ought. to give no. ought neither nor to caits. allure into either of thofe pital It the carrying to force trade. to encreafe the and power of that country. naturally troduces it. To force. But the great is political oeconomy of every It country. own Each only of thofe different branches of trade. of produQive labour and increafe the value of annual produce more than an equal capital employed in the foreign trade of confumption : and the capital employed in this latter trade has in both thefe refpeds a capital ftlU greater advantage over an equal employed in the carrying trade. above either of the other two. When the produce of any particular branch of induftry exceeds requires. and unavoidable. two channels. The capital. and fo far as power depends upon power of every country. fent . the The riches.TFIE {hipping than at all WEALTH OF NATIONS. therefore. by extraorduiary encou- -- ~i ragements. the fund obje(S from which taxes muft ultimately be paid. but neceffary however. to to preference encouragement nor the foreign trade of confumption above the home-trade. in^- advantageous. when courfe of things. 455 the carrying trade of England. a greater fhare of the of the country than what would naturally flow into them of accord. . is not the. than what would naturally go to it. though the ports are CHAP. v. will not always neceffarily increafe the {hipping of that country. without any conftraint or violence. what the demand of the country the furplus muft be. therefore. employed in the home-trade of any country to a greater quantity its will generally give encouragement and fupport in that country. a larger (hare of the capital of any country into the car- rying trade.

perhaps. having no market at home. The neighbourhood of rivers. But the demand of Great Britain does not If the remaining require. The moft round-about foreign trade . only becaufe they facilitate the exportation and exchange of fuch furplus produce for fomething in elfe which is more demand there. abroad. therefore. which are part of the produce of the land and labour of Great Britain. eighty-two thoufand. the importation it of them muft ceafe immediately. ninety-fix thoufand hogfheads of tobacco in are annually purchafed Virginia Britifti and Maryland. more than fourteen thoufand. and the value of diminifh. than the demand of the home- market requires. the foreign goods which are thus purchafed with the fur- plus produce of domeftick induftry exceed the the furplus part of demand of at the homeAbout them muft be in fent abroad again. that this fur- plus can acquire a value fufficient to compenfate the labour and the fea coaft. therefore. annual produce The land and labour of Great Britain produce generally more corn.454 THE NATURE AND CAUSES OF fent abroad. only by means of fuch exportation. Without fuch exportation. a part of the produdive its labour of the country muft ceafe. with a part of the furplus produce of induftry. woollens. ' BOOK *—^ and exchanged for fomething for which there is a de- mand at home. and exchanged for fomething more demand home. and hard ware. When market. muft ceafe to be produced. Thofe goods. and being deprived of that which they had abroad. at The furplus part of them. expence of producing it. and with the produdive labour are at prefent of all thofe inhabitants of Great Britain. and the banks of all navigable are advantageous fitua- tions for induftry. who em- ployed in preparing the goods with which thefe eighty-two thoufand hogfheads are annually purchafed. muft be fent is and exchanged for fomething for which there It is a demand home. could not be fent abroad and ex- changed for fomething more in demand at home.

perhaps. or either immediately elfe with fomething and the in which had of thofe trade been purchafed with that produce. and fome trade of the fame kind carried on Britifh by merchants between the different ports of India. The . peris haps. and of America. but it does not feem to be the natural Thofe flatefmen who have been difpofed encouragements. the principal branches of what properly the carrying trade of Great Britain. The is the natural effed and fymptom to favour of great national wealth caufe of it it. and is employed in performing the fame carrying trade : offices to other countries. has. that cannot be all employed in fupplying the confump- try. The which is carried on in Britifh bottoms between the different ports of the Mediterranean. Such are. by far the Europe. trade of confumption. in proportion to the its extent of the land and the richeft country in number of inhabitants. to different European markets. for the caufe. is When tion. as the moft dlred.THE WEALTH OF NATIONS. frequently. trades are generally ufed or final returns confumed Great Britain. 4^^ be as may. and the -. the greatefl Ihare of the carrying trade of Europe. ihare of it . perhaps the fecond richefl fuppofed to have a confiderable country of Europe. be found to be no more than a round-about foreign trade of confumption.— _j value of its annual produce. make. a great meafure. is likewife though what commonly pafTes for the carrying trade will of England. in the trades which carry the goods of the Eafl and Wefl Indies. therefore. and fupporting the produdive labour of that particular counthe furplus part of it naturally difgorges itfelf into the carrying trade. the capital flock of any country it increafed to fiich a degree. neceflary for fupporting the produdive labour of the country. upon feme occafions. accordingly. C H a t p. England. with the Thofe goods are generally purchafed produce of Britifh induflry. with particular feem to have miftaken the efFed and fymptom Holland.

occafion to exchange their refpedive value of the furThat of the foreign trade of confumption. The profits of agriculture. feem have no fupericrity over thofe of Projedors. The quantities of produdive labour which it may put into motion. produce of extent. however. employ either in or in fome particular branch of the different wholefale or retail it trade. in manufaftures. all dif- ferent ways. is neceffarily limited by the all produce of thofe diftant places within the country which have produdions with one another. employed which can be extent of the home-trade and of the capital value of the furplus in it. and capable of abforbing the greateft ca- The confideration of his own private profit. other employments in any part of Europe.456 THE NATURE AND CAUSES OF The I BOOK II. may remit of them muft be We in every day the moft fplendid fortunes that have been acquired . all the different countries in the is world. capital to is the fole motive it which determines the owner of any agriculture. pitals. fore. to a fplendid and farming and improving the mofl dired roads fortune. indeed. Its poffible therefore. never enter into his thoughts. in a is manner infinite in comparifon of that of the other two. by the value of the furplus with it. by the of what can be purchafed plus produce of the whole country and That of the carrying trade. any particular fervation fee difcuffion of their fatisfy us that the calculations. have within thefe few years amufed the pub- with moft magnificent accounts of the profits to be made by the cultivation and improvement of land. the capitals of individuals will naturally be employed in the manner moft advantageous to the to whole fociety. there- where agriculture is the moft profitable of employments. Without entering into a very fimplc obfalfe. according as is employed in one or other of thofe In countries. in every corner of lick it. and the different values which may add to the annual it produce of the land and labour of the fociety.

cultivated. two following books. has not. countries of Europe.. that private perfons frequently find it more for their ad- vantage to employ their capitals in tlie moft diftant carrying trades of Afia and America. and from fuch a capital. than in the improvement and cultivation of the moft fertile fields in their to explain at full length in the own neighbourhood. I. fometimes from no acquired A fingle inftance of fuch a fortune by agriculture in the fame in time.THE WEALTH OF NATIONS. much good is it is land remains unis and the greater part of what cultivated far from being improved to the degree of which therefore. I {hall endeavour Vol. in the courfe 457 of a fingle life by trade and manufadiires. What which is circumftances in the policy of Europe have given the trades are carried on in towns fo great an advantage over that which carried on in the country. 3 ^ . almoft every where capable of abforbing a much greater capital than has ever yet been employed in it. frequently capital. In ftill occurred all Europe during the courfe of the prefent century. the great however. from a very fmall capital. Agriculture. perhaps. is capable.

.

which there neither nor can be any reproduftion its of fubftances. or . muft have employed had they attempted to prepare them themfelves. divifion all The gains of both are mutual and reciprocal. is HE great commerce of every that carried "- on between the inhabitants of the town and thofe of the It confifts in country. the exchange of rude for manufadlured pro- either immediately. The towA affords a market for the furplus produce of the country. as in all other cafes.. this account. duce. The town in repays this fupply by fending back a part to the inhabitants is of the manufadured produce' of the country. is and the of labour in this. The country fupplies and the materials of ma- the town with the means of fubfiftence. nufadure. the natural Progrefs of Opulence. with the prothan they duce of a much fmaller quantity of their own labour. We mufl: not. or fort fome by the intervention of money. upon the lofs of the imagine that the gain of the town country. or of of paper which reprefsnts money. civilized fociety. may very properly be faid to gain whole wealth and fubfifLence from the country. advantageous to into^ the different perfons employed in the various occupations it is •which the fubdividcd. Of ^ I ^ I. is however.( 459 ) BOOK of the different IIL Progrefs of Opulence in different Nations* CHAP. The town. 3 N 2. The inhabitants of the country" purchafe of town a greater quantity of manufadlured goods.

in the Compare the cultivation of the lands neighbourhood of any confiderable town. It is which furnifhes only the means of conveniency and luxury. over and above the ordinary profits fell. Among all the abfurd fpeculations that have been propagated conit cerning the balance of trade. The proprietors lies and cultivators of the country.4^0 THE NATURE AND CAUSES OF oj. but afford too the ordinary profits of agriculture to the farmer. BOOK HI. or what over and above . or the commerce with it. neceffarily. there for the fame price with that diftance. in the price of what they the whole value of the carriage of the like produce that parts. affords fubfiftence. prior to conveniency and luxury. and it it is there that the inhabitants of the country exchange elfe for fome- thing which is in demand among them. The which cultivation and improvement of the country. in the nature of things. is brought from more diftant this carriage ia and they fave. to muft neceffarily be prior to that which minift^rs the latter. always the more advantageous number. The corn which grows within a mile of the town. town by that with the country which maintains As fubfiflence fo is. therefore. and you will eafily fatisfy yourfelf how much benefited by the commerce of the town. be prior to the increafe of the town. with that of thofe lie at which fome diftance from the country is it. gain. therefore. vvhat is over and above the maintenance of the cuhivators. of agriculture. which in the neighbourhood of the town. the whole value of the price of what they buy. not only pay it But the price of the latter the expence of raifmg and bringing to market. befides. is the furplus produce of the country only. the induftry which procures the former. The greater the num- ber and revenue of the inhabitants of the town. and the more to a great fells extenfive that market. the more extenfive is the market which it affords to thofe of the country it is . muft. which comes from twenty miles muft generally. the country lofes by it« has never been pretended that either the town.

in every particular country. but folly more uncertain elements of human he can and injuftice. and of the trader. which it really affords. in its may not always derive whole fubfiftence territory to this. not in every particular country. that conftitutes the fubfifl- 461 cnce of the tov?n. or nearly equal moft men will chufe to employ their capitals rather in the improvement and cultivation of land. fixed in the The capital of the landlord.THE WEALTH OF NATIONS. profits. with whofe chathoroughly is rader and fituation feldom be acquainted. feems to be as well fecured as the nature can admit of. The man who employs view and command. it indeed. his capital in land. who is obliged fre- quently to commit to the not only to the winds and the waves. by giving great credits in diftant countries to men. the pleafures of a country prcmiifes. which can therefore increafe only with the increafe of its this furplus produce. though is. which it belongs. than either in manufadures or in foreign trade. from the country neighbourhood. on the contrary. has occafioned confiderable opu- lence in different ages and nations. the towns could no where have increafed beyond what the improvement and cultivation of the territory in which they were as the fituated could fup- port. till fuch time. above the maintenance of the cultivators. life. If promoted by the natural inclinations of man. which improvement of of human affairs his land. his fortune is has lefs it more under his much liable to accidents than that it. but from very diftant coun- and though forms no exception from the general variations in the progrefs of rule. The beauty of the country befides. tions human inftitu- had never thwarted thofe natural inclinations. The town. at leaft. or even from the tries. whole of that territory was completely cultivated and improved. have charms that . the tranquillity of mind which does it and wherever the the independency injuftice of human laws not difturb it. That order of things which neceflity impofes in general. Upon equal.

462

THE NATURE AND CAUSES OF
tjiiat

BOOK

more or

lefs attradl

every body; and as to cultivate the ground
fo

was the original deftination of man,
exiftence

in

every ftage of his
for
this

he

feems

to

retain a prediledion

primitive

employment.

Without
tivation of

the afflftance of fome artificers,

indeed,

the cul-

land

cannot

be

carried

on,

but

with great incon-

veniency and continual interruption.
wrights, and plough-wrights,
flioemakers,

Smiths, carpenters, wheel-

mafons,

and bricklayers,

tanners,

and

taylors,
for.

are people,

whofe

fervice

the farmer

has frequent occafion
in

Such

artificers

too ftand, occafionally>
is

need of the

affiftance

of one another; and as their refidence
necelTarily
tied

not, like that of the
fpot,

farmer,
fettle

down

to a precife

they naturally

in the neighbourhood of one another,
village.

and thus form a fmall town or

The

butcher, the brewer,
artificers

and the baker, foon join them, together with many other

and

retailers,

neceflary or ufeful

for fupplying

their

occafional

wants,

and

who

contribute

ftill

further to
thofe of

augment the town.
the
is

The
fair

inhabitants

of

the

town and

country

are

mutually the fervants of one another.
or

The town
manufadlured

a continual
refort,
It

market, to which the inhabitants of the

country

in order to
is this

exchange

their rude

for

produce.

commerce which

fupplies the inhabitants of the

town both

with the materials of their work, and the means of their fubfiftence.

The

quantity of the

finiflied

work which they

fell

to the in-

habitants of the country, necelTarily regulates the quantity of the

materials and provifions

which they buy.

Neither their employ-

ment nor

fubfiftence, therefore,

can augment, but in proportion to

the augmentatioa of the

work

;

and

this

demand from the country for finiflied demand can augment only in proportion to the
cultivation.

extenfion of improvement and
tions, therefore,

Had human

inftitu-

never dlfturbed the natural eourfe of things, the
6
progreffive

THE WEALTH
fociety, be confequential,

OF NATIONS.
improvement and

463

progrelTive wealth and increafe of the towns would, In every political

char,

and

in proportion to the

cultivation of the territory or country.

In our North American colonies, where uncultivated land
to

is flill

be

had upon eafy terms,

no manufactures for

dlftant Xale

have ever yet been eflablifhed in any of their towns.
artificer has acquired a
little

When

an

more

flock than

is

neceffary for carrying

on

his

own

bufinefs in fupplying the neighbouring country, he does
to eftablifh
it

not, in

North America, attempt
diftant fale, but

with

it

a

manufadure

for

more

employs

in the purchafe
artificer

and improve-

ment of uncultivated
country affords to

land.

From
can bribe

he becomes planter*
fubfiftence

and neither the large wages nor the eafy
artificers,

which that
for other

him
an

rather to

work

people than for himfelf.
his cuftomers,
,

He

feels that

artificer is the fervant
j

of

from

whom he derives his

fubfiftence

but that a planter

who cultivates his own land, and derives his neceflary fubfiftence from the labour of his own family, is really a mafter, and independent of
all

the world.

In

countries,

on the contrary, where there

is

either

no uncultivated
artificer

land, or

none that can be had upon eafy terms, every
fl;ock

who

has acquired more

than he can employ in the occafional jobs
to

of the neighbourhood, endeavours
fale.

prepare

work

for

more

diftant

The
or
in

fmith ere6ts fome fort of iron, the weaver fome fort of

linen

woollen
procefs

manufadory.
of
time,
to

Thofe
be

diff^erent

manufactures

come,

gradually

fubdivided,

and

thereby improved and refined in a great variety of ways,

which

may

eafily

be conceived, and which

it

is

therefore unneceflary to

explain any further.

In

464

THE NATUREAND CAUSES OF
In feeking for

employment
equal
the

to a capital,

manufadtures
preferred

are, upati

equal

or

nearly
for
to
is

profits,

naturally
that

to
is

foreign
naturallj

commerce,
preferred

fame

reafon

agriculture
capital

manufactures.

As
than

the

of

the

landlord
fo

or

farmer

more

fecure

that of

the

manufadurer,

the capital of
his

the manufadurer,
is

being

at all times-

more withia
the furplus

view and command,

more

fecure than that of the foreign

merchant.

In every period,

indeed, of every fociety,

part both of the rude and
there
is

manufadured produce, or
home,

that for

which

no demand
for

at

muft be fent abroad

in order to

be exchanged
at

fomething for

which there which

is

fome demand

home.

But whether the
abroad,

capital,

carries this furplus

produce
little

be a foreign or a domeftick

one,

is

of

very

importance.
to

If the fociety has not acquired fufficient capital
its

both

cultivate all

lands,

and
its

to

manufadure

in the
is

com-

pleateft

manner the whole of

rude produce,

there

even a

confiderable advantage that that rude produce fhould be exported by a

foreign capital, in order that the whole ftock of the fociety

may be
that

employed in more
that of

ufeful purpofes.

The

wealth of antient Egypt,
demonftrate
opulence,

China

and
a

Indoftan,

fufEciently

a

nation
the

may

attain

very
its

high

degree of
trade

though,

greater

part of

exportation

be

carried

on

by

foreigners.

The

progrefs of

our

North American and Weft
lefs

Indian colonies would have been

much

rapid,

had no

capital

but what belonged to themfelves been employed in exporting their
furplus produce^

According
direded
to
to

to

the

natural

courfe of things,

therefore,
fociety
is,

the
firft,

greater part of the

capital of

every

growing
to

agriculture,

afterwards

manufadures,
is

and
fo
it

laft

of

all

foreign
in

commerce.
every
fociety

This order of things
that

very
has

natural,

that

had

any

territory,

always?

THE WEALTH OF NATIONS.
always,
lands
I believe,

-

46^

been in fome degree obferved.

Some of

their

mufl have been cultivated before any confiderable towns

could be eftabhlhed,

and fomc

fort

of coarfe induftry of the manu-

fa£turing kind mufl; have been carried on in thofe towns, before they

could well think of employing themfclves in foreign commerce.

But
in
ftates

though

this natural order

of things mufl; have taken place
fociety,
it

fome degree in every fuch
of Europe, been, in

has, in

all

the

modern

many
fit

refpeds, entirely inverted.
cities

The

foreign

commerce of fome of their

has introduced
;

all their finer

manufaiflures, or fuch as were

for difl;ant fale

and manufadtures
to the principal

and foreign commerce together, have given birth

improvements of agriculture.

The manners and

cuftoms which the

nature of their original government introduced, and which remained
after that

government was greatly

altered, neceffarily forced

them

into this unnatural and retrograde order.

Vol.

I.

3

O

,466

THE NATURE AND CAUSES OF

CHAP.
Of
after the Fall of the

ir.

the Difcouragement of Jgriculfure in the ant'ient State of Europe

Roman

Enipire,

BOOK ^'^J'HEN
weftern

the

German and Scythian

nations

over-ran

the

provinces of the
fo

Roman

empire,

the confufions
centuries.

which followed

great a revolution lalled for feveral

The

rapine

and violence which the barbarians exercifed againft

the antient inhabitants, interrupted the

commerce between the towns
and the country was

and the country.
left

The towns were

deferted,

uncultivated,

and the weftern provinces of Europe, which had

enjoyed a confiderable degree of opulence under the

Roman

empire,,

funk into the loweft

ftate

of poverty and barbarifm.

During the

continuance of thofe confufions, the chiefs and principal leaders of
thofe nations,

acquired or ufurped to themfelves the greater part of

the lands of thofe countries.

A

great part of

them was uncultivated;
left

but no part of them,
without a proprietor.
part

whether cultivated or uncultivated, was
All of

them

v/ere engroiTed,

and the greater

by a few great

proprietors.

This

original engroffing of uncultivated lands,
a tranfitory evil.

though a

great,,

might have been but
divided again, and
alienation.

They might
by

foon have been
fucceffion or

bmke

into fmall parcels either

by

The

lav^^

of primogeniture hindered them from being
the introdudion of entails prevented their be-

divided by fucceffion

:

ing broke into fmall parcels by alienation.

When

land, like moveables,

is

confidered as the

means only

of fubfiftencc and enjoyment, the natural law of fucceflion divides
^

7

it,

THE WEALTH OF NATIONS.
it,

^(,^

like

them,

among

all

the children of the family;

of

all

of
'

C

H
,-

A

\\
>

vv'hom the fubfiftence and enjoyment
to the father.

may

he fuppofed equally dear

This natural law of

fucccfTion accordingly took place

among
and

the

Romans, who made no more diilindion between
between
male and female,

elder

younger,

in the inheritance

of

lands, than

we do

in the diftribution of moveablcG.

But when land
but of

was coniidered

as the

means, not of fubfiftence merely,
it

power and protedion,
undivided to one.

was thought

better that

it

fliould defcend

In thofe diforderly times, every great landlord
prince.

was
was

a fort of petty
their judge,

His tenants were

his

fubjeds.

He
and

and in feme refpeds

their legiflator in peace,

their leader in war.

He made war

according to his

own

difcretion,

frequently agalnft his neighbours, and fometiraes againft his fovereign.

The
its its

fecurity of a landed eflate,

therefore,

the proteilion
it,

•which

owner could

afford to thofe

who

dwelt on

depended

upon

greatnefs.
it

To divide

it

was

to ruin

it,

and

to

expofe every

part of
its

to be opprefTed

and fwallowed up by the incurfions of
primogeniture,
therefore,

neighbours.

The law of

came

to

take place, not immediately,
the fucccffion of landed

indeed,
for

but in procefs of time,
the fame reafon that
it

in

eftates,

has
'

generally taken place in that of monarchies^ though not always at
their
firft

inftitution.

That

the power, and confcquently the fecudivifion,
it

rity of the

monarchy, may not be weakened by

mud:

defcend entire to one of the children.

To which

of them

fo

im-

portant a preference fhall be given, mufc be determined by fome
.general rule,

founded not upon the doubtful

diftinClions

of per-

fonal merit, but

upon fome

plain

and evident difference which can
the
children of the fame family,
that of fex, and that
;

-admit of no difpute.

Among
is

there can be no indifputable difference but

of age.
v;hen
all

The male

fex

univerfally preferred to the female

and

other things are equal, the elder every where takes place
3

O

2

of

4^8

THE NATURE AND CAUSES OF
of the younger..

BOOK
'

Hence the

origin of the right of priniogeniture-y

v™'

and of what

ia

called lineal fucceffion.

Laws
which

frequently continue in force long after the circumflancea,

firft

gave occafion to them,

aad which could alone render
ftate

them

reafonable, are

no more.

In the prefent
is

of Europe, the

proprietor of a fingle acre of land
as iheproprietor

as

perfedly fecure of his pofTeffian

of a hundred thoufand.

The right of primogeniture,
all

however,
is

ftill

continues to be refpeded, and as of

inftitutions
it is ftill

it

the

fitteft to

fupport the pride of family diftindions,

likely

to

endure for

many

centuries.

In every other refpedl,

nothing

can be more contrary to the real intereft of a numerous family,
than a right which, in order to enrich one, beggars
children.
all

the reft of the

Entails are the natural confequences of the law of primogeniture. They were introduced to preferve a certain lineal fucceffion, of which
the law of primogeniture
firft

gave the idea, and

to

hinder any part

of the original

eftate

from being

carried out of the propofed line either
;

by

gift,

or devife, or alienation
its

either

by the

folly, or

by the mis-

fortune of any of

fucceflive owners.

They were

altogether un-

known to the Romans.

Neither their fubftitutions nor iideicommiffes

bear any refemblance to entails, though fome French lawyers have

thought proper to drefs the modern inftitution in the language and
garb of thofe antient ones.

When

great landed eftates were a fort of principalities, entails

might not be unreafonable.

Like what are called the fundamental

laws of fome monarchies, they might frequently hinder the fecurity

of thoufands from being endangered by the caprice or extravagance of one man.

But

in the prefent ftate

of Europe,

when

fmall as

well

THE WEALTH OF NATIONS.
well as great eflates derive their fecuriiy from the laws of their

469

chap.
^j

country,

nothing

can
raofl:

be

more compleatly
all

abfiird.

They

are

'

founded upon the

abfurd of

fuppofitions,

the fuppofition

that every fucceffive generation of
to the earth,

men have
;

not an equal right

and

to all that

it

polTefles

but that the property of

the prefent generation Ihould be reftrained and regulated according
to the fancy

of thofe

who
ftill

died perhaps five hundred
refpedled

years ago.

Entails, however, are

through the greater part of
is

Europe,

in

thofe

countries- particularly in v/hich noble birth
civil or

a necefTary qualification for the enjoyment either of

military

honours.
clufive

Entails are thought neceflary for maintaining this ex-

privilege of the nobility to the great offices and
;

honours

of their country

and that order having ufurped one unjuft advantage
left

pver the
it

reft

of their fellow-citizens,
it is

their poverty fliould render
fliould

ridiculous,

thought reafonable that they
of England, Indeed,
is

have another.

The common law

faid to

abhor perpetuities,

and they are accordingly more

reftridted

there than in
is

any other

European monarchy; though even England
them.
In Scotland more than one-fifth,

not altogether without

perhaps more than oneat prefent

third part of the
to

whole lands of the country, are

fuppofed

be under

ftri£t entail.

Great

trafls

of uncultivated

land Were,

In

this

manner, not

only engrofled by particular families,

but the poflibility of their

being divided again was as 'much as poffible precluded for ever.
It

feldom happens,

however,

that

a

great proprietor

is

a great

improver.

lu the diforderly times which gave birih to thofe bar-

barous Inftitutions, the great proprietor was fufficicntly employed
in defending his

own

territories,

or in extending his jurifdidion

and authority over

thofe of his neighbours.

Ele had no leifure to

attend to the cultivation and improvement of land.
eftablilhment of law r.nd order afforded

"When

the

him

this leifure,

he often
If

wanted the

Inclination,

and almoft always the requifitc

abilities.

the

,470

THE NATURE AND CAUSES OF
the expence of his houfe and perfon either equalled or exceeded
his

BOOK

revenue,
in
it

as

it

did very
If he
to

frequently,
v.'as

he had

no

flock

to

employ
found

this

manner.
profitable

an

oeconomif!:,

he generally

more

employ

his

annual favings in
eftate.

new
imre-

purchafes,

than in the improvement of his old
profit,

To

prove land with

like all

other

commercial

projeds,

quires an exadt attention to fmall favings and fmall gains, of

which
is

a

man born
him

to a great fortune,

even though naturally frugal,
fuch a perfon

very feldom capable.
difpofes

The

fituation of

naturally

to attend rather to

ornament which pleafeshis fancy,
little

than to profit for which he has fo
his drefs, of his equipage,

occafion.

The

elegance of

of his houfe,

and houfhold furniture,
to

are objeds which

from

his infancy

he has been accuftomed

have

fome anxiety about.
.

rally forms,

follows

The turn of mind which this habit natuhim when he comes to think of the improvehundred acres

ment of
the land

land.

He

embelliflies perhaps four or five

in the neighbourhood of his houfe, at ten times the expence v^hich
is

worth

after

all

his

improvements;
eftate in the

and

finds

that if

he was
has

to

improve his whole

fame manner, and he
remain

little

tafte for

any

other,

he would be a bankrupt before he
it.

had
•.-of

finifhed the tenth part of

There

ftill

in both parts

the united

kingdom fome

great eftates

which have continued
family
fince the

without interruption in the hands of the fame
times of feudal anarchy.
eftates

Compare

the prefent condition of thofe

with the pofieftions of the fmall proprietors in their neighto

bourhood, and you will require no other argument

convince

you how imfavourable fuch extenfive property
ment.
If
little

is

to

improve-

improvement; was to
lefs

prietors,

ftill

was

to

espeded from fuch great probe hoped for from thofe who occupied
b,e

the land under them.

In the antient

ftate

of Europe, the occupiers
all

of land were

all

tenants at will.

They were

or almoft

all

Haves

but

THE WEALTH
the antient Greeks and
nies.

OF NATIONS.
known among
coloin our

471

but their flavery was of a milder kind than that

Romans, or even
to

Weft Indian

They

Vvcre

fuppofed

belong more dlredly to the land
could,
therefore,

than to their mafter.
but not feparatcly.
confent of their mafter

They They
;

be fold with
It

it,

could marry, provided

was with the
diftblve the

and he could not afterv;ards

marriage by felling the

man and
to a fmall

wife to different perfons.

If he

maimed

or murdered any of them, he
one.

was

liable

to

feme penalty,
not,

though generally but

They were

however

capable of acquiring property.

quired to their

Whatever they acquired was acmafter, and he could take it from them at pleafure.
and improvement could be carried on by means
It

Whatever

cultivation

of fuch Haves, was properly carried on by their mafter.
at

v/as

his expence.

The
all his.

feed,
It

the cattle,

and the inftruments of

hufbandry were

was

for his benefit.
It

Such

flaves could

acquire nothing but their daily maintenance.
proprietor himfelf, therefore, that, in this cafe,
lands,

was properly the

occupied his

own
of

and cultivated them by his
ftill

own bondmen.
It Is

This

fpeclcs

flavery
ravia,

fubfifts in RufTia,

Poland,

Hungary, [Bohemia,

Mobeen

and other parts of Germany.

only in the weftern and
It

fouth-weftern provinces of Europe,
aboliflied altogether.

that

has

gradually

But
employ
nations,

if great

improvements are feldom
they are
leaft

to

be expecucd

from

great proprietors,

of

all

to

be expected Vvhen they
experience of
all

ilaves for their
I
it

workmen.

The

ages and
flaves,

believe,

demonftrates that the

work done by
is

though

appears to coft only their maintenance,

in

the end the

deareft of any.

A

perfon

who

can acquire no property, can have
little

no

otlier intereft

but to eat as much, and to labour as
is

as to

pof-

fible.

Whatever work he does beyond what

fuflicient

pur-

chafe his

own

maintenance,

can be fqueezed out of him by viointereft

lence only,

and not by any

of his own.

In antient Italy,

hcHV

like the plains of Babylon. To . law allows it. fuch a refolution could never have been agreed is it. The number of negroes accordingly is much in our greater. Had they made any confiderable part of their property. in proportion to that of whites.472 THE NATURE AND CAUSES OF how much it BOOK the cuhivation of corn degenerated. and nothing much as to be obliged to condefcend to perfuade his the Wherever it. work done by and in our tobacco colonies a very great part of The profits of a fugar-plantation in any of our Weft Indian colonies are generally tivation that is much greater than thofe of any other cul- known either in Europe or America: And the profits to thofe of a tobacco plantation. it Ariftotle had not been much better in antient Greece. vania to their The refolution of the quakers in Penfyl- fet at liberty all their negro flaves. corn. Both can it ftill afford the expence of flave-cultivation. of which the far greater part of the the principal produce work is done by freemen. as has already of fugar. remarked by both Pliny and Columella. may fatisfy us that number cannot be very great. in our fugar than tobacco colonics. in The raifing of corn. and the nature of the work can afi'ord therefore. to maintain thoufand idle its men (the number of warriors fuppofed neceffary for defence) together with their fays. the whole flaves. to. The planting of fugar and tobacco can afford the expence of flave-cultivation. Speaking five of the ideal republic defcribed in the laws of Plato. though inferior perlor to thofe of corn. the prefent times. a territory women and fervants. he of boundlefs extent and fertility. to the how unprofitable became is mafter when it fell under the management of In the time of flaves. are fu- been obferved. is cannot. him fo man makes him love to domineer. late In the Englifh colonies. it feems. would require. but fugar can afford better than tobacco. In our fugar colonies. he will generally prefer the fervice of flaves to that of freemen. on the contrary. T«E pride of mortifies inferiors.

been fo long in dlfufe in England that know no witli name cattle. gradually encouraged their villains to authority. this make upon that their and which feem at laft to have been fuch as rendered fpecies of fervitude altogether inconvenient. as little as pofit own by making the land produce It is over and above that maintenance. judged neceflary for keeping up the proprietor what was ftock. the whole ftock. The produce was divided equally after fetting afide between the proprietor and the farmer. Such tenants. being freemen. They are called in Latin. in gradually fucceeded a the H a p. The proprietor furnifhed them and inftruments of hufoandry. whole produce fhould be proportion as great as in order that their own may be fo. one of the moft obfcure points in claims great merit in it. Alexander III. in fhort. of farmers known at prefent France by Metayers. however. on the contrary. hiftory. in which fo important a revo- lution was brought about. one very effential difference between them. To fpecies 473 C the flave cultivators of antient times. neceifary for cultivating the farm. confults his fible who eafe can acquire nothing but his maintenance. are capable of acquiring property. probable that was partly upon account of this advantage. The time and manner. tenure in villanage gradually wore out through the greater part of Europe. Vol. is modern and it is The church of Rome 3 certain that fo early as the twelfth century. intereft that the. for them. and partly upon account of the encroachments which the fovereign. L P puUifhed . occupied by fuch tenants as is properly cultivated at the that expence of the proprietor. at prefent I name of They have Englifh the ked. Lakd There is. however. they have a plain poffible. either quitted. and having a certain proportion of the produce of the land. A flave. Coloni Partiarii. which was reftored to the when ( the farmer. or was turned out of the farm.THE WEALTH OF NATIONS. much as occupied by flaves. always jealous of the great lords.

They are called are faid fteel-bow tenants. to which to- Slavery continued till it take place almoftuniverfally for feveral centuries afterwards. prietors complain that their metayers take every opportunity of cattle rather in carriage employing the mafters than in cultivation becaufe in the one cafe they get the whole profits to themfelves. Thofe antient Engllfh tenants. jnuft have been A tax. and at the fame time allowed to continue in poflefliou of the Tand. to who by Chief Baron Gilbert and Dot^or Blackftone have been rather bailiffs . in the other they (hare them with their landlord. than a law exa£t obedience was required from the faithful. it having no ftock of his own.4-4 THE NATURE AND CAUSES OF publifhed a bull for the general emancipation of flaves. was The tithe. found be a very great hindrance ta improvement. be the interefl even of this fpecles It could laft of cultivators to lay out in the further Improvement of the land. could cultivate advanced call only by means of what the landlord to him. to have been rather a pious exhortation. becaufe the lord. which amounted It to one half» intereft an effedual bar might be the of a metayer to make the land produce as much as could be brought : out of it it. of whatever is it who laid out nothing. A villain enfranchifed. ' BOOK ' 1/ It feems» however. to a tenth of the produce. however. was gradually aboliflied by the joint operation of the two interefl. and muft. This fpecies of tenants ftill fubfifts in fome parts of Scotland. which is but produced. never. therefore. therefore. it by means of the ftock furnifhed by the proprietor but could never be his intereft to In France. that of the proprietor on the one hand» and that of the fovereign on the other. any part of the to get one-half little ftock which they might fave from their own fhare of the produce. mix any part of his own with the pro- where five parts out of fix of the whole kingdom are faid to be ftill occupied by this fpecies of cultivators. to it. have been what the French a Metayer.& above mentioned.

who cultivated the land with own ftock. by which poffeffion. of the landlord than farmers properly fo called. befides a leafe for life of forty fhillings a year value a and entitles the leffee to vote for a member of parliament. when the landlord has occafion to fue for the poffeffion of the land. in the modern pradice. but gave them damages which never amounted to the real lofs. becaufe they may fometimes exped to with a large pi'ofit. his tenant. was long extremely ftill is precarious. They could before the expiration of their term be legally outed of their leafe. and fo in many parts of Europe. even by the fiditious a£tion of a common recovery. it was not about the 14th of Henry the Vllth that the adion of ejedment was invented. the adion by which they obtained redrefs was extremely imperfedt. in England. This adion has been found fo effedual a remedy that. were probably of the fame kind. improvement of the farm recover it. the In England. by a new purchafer . the writ of right or the writ of entry. fecurity of but fues in the name of In is by the writ of ejedment. The poffefTion even of fuch farmers. before the expiration of the leafe. however. he feldom makes ufe of the adions which properly belong to him as landlord. If they were turned out illegally by the violence in the pof- of their mafter. though by very flow degrees. not is damages only but and in which his claim not neceflarily concluded by the uncertain decifion of a fingle aiTize. the that of tenant is equal to the proprietor. the tenant recovers. feflion It did not always re-inftate them of the land. bailiffs 47^ C H a p. the country perhaps of Europe where the yeomanry has always been till mod refpedted. paying a rent certain to the landlord. When fuch farmers have a leafe for a term of years. and 3 P 2 . To their this fpecles of tenancy fucceeded.THE WEALTH OF NATIONS. they it may fometimes find for their intereft to lay out part of their capital in the further . therefore. England freehold. Even in England. farmers properly fo called.

flackened their fetters. part of the yeomanry have freeholds of There this kind. as no. befides. by a law of James the has been beneficial influence. therethe intereft of the that fore. late frequently for in more than one fomewhat ftrait. however. I believe. leafe. this refped. for example. though they are ftill^'ry-nnuch too Scotland. much obftrudted by entails. peculiar to Great Britain.476 THE NATURE AND CAUSES OF and as a great BOOK n_ -.. too fhort to. the term of their fecurity was ftiU limited to a very fliort period . England. year. any inftance of the tenant leafe. is. The laws relating to land.leafehold gives a vote for a In member of parli- ament. flill to twenty-feven. of England than together- Thofe laws and culloms fo favourable to the yeomanry. the. they had imagined. 1 was lid. after it was found convenient to fecure tenants both againft heirs and purchalers. were all calculated for what they fuppofed proprietor. have perhaps contributed more all to the prefent grandeur their boafted regulations of commerce taken The law which fecures the is. encourage the tenant to make the mod important legif- improvements.. the yeomanry are upon this account landlords than in. Indeed. It was for his intereft. in France. It to aine years from the commencement of the been lately extended has in that a period country. introduced into Scotland fo early as Its 449. the whole order becomes refpedable to their landlords on account of the political confideration which this gives them. A ad of parliament has. lators The proprietors of land were antiently the of every part of Europe. heirs of entail being generally reftrained leafes for from letting any long term of years. except in England. longefl: leafes agalnfl fucceffors It of every kind fo far as I know. nowhere in Europe._. building upon the land of which he had no and trufting that the honour of his landlord would take no advantage of fo important an improvement. lefs refpedable to their In other parts of Europe. no leafe .

the long-run the real of the landlord. a fervitude which fubfifts. at a price regulated believe. it was fuppofed. and had. and thereby hurt ia interefl. though extremely unwilling to grant themfelves any pecuniary aid to their fovereign. bcfides paying the rent. being almoft entirely arbitrary. 7 . or regulated by any Thefe but by the ufe and wont of the manor or barony. fervices. The farmers too. The publick taxes to which they were as the fervices. in France and Germany. during a long term of years. provifions. I believe. therefore.. Great Britain I monarchy in Europe where the oppreflion of purIt ftill fubfifts veyance has been entirely aboliilied. the yeomanry were bound to provide them with horfes. bound to perform a great number of fervices to the landlord. his officers When the king's troops. fubje£ted the all tenant to many vexations. as they called it. and they did not forefee how- much this regulation muft obftru£t improvement. was • not the only one. The not lefs publick fervices to which the yeomanry were bound. not precifely ftipulated in the has in the courfe of a few years very much altered for the better the condition of the yeomanry of that country. Avarice and injuftice are always fliort-fighted. leafe 477 C li granted by any of his predeceflbrs fliould hinder him from enjoy- A P. In Scotland the abolition of leafe. when his houfehold or of any kind pafTed. vvese arbitrary than the private ones. and is. through any part of the country. ing. carriages. eafily allowed him to tallage.THE WEALTH OF NATIONS. fubje<fl were as irregular and opprelFive The antient lords. which were feldom prec'ife rule. though with different degrees of opprefhon indifferent countries. the full value of his land. either fpeclfied in the leafe. ftill To make and maintain the every where. fervices. their tenants. were antiently. high roads. the only by the purveyor.

not only the rank of a gentleman. and confequently employ as as poffible in its cultivation. will fubmit to this degradation. as it ftill fubfifts may the ferve as an example of thofe antient It is a tax upon fuppofed profits of the farmer. but that of a burgher. feem. have been taxes of the fame nature with the Under all thefe difcouragement^. to to appear to have as little as poffible. with only equal good conduct.478 THE NATURE AND CAUSES OF BOOK V-. and whoever rents the lands of another becomes fubjedt to it. to it.. to and none in its improvement. The taille. which they eflimate by the It is his intereft. That order of people. little therefore. ftock that he has upon the farm. little improvement could be expeaed from the occupiers of land. improve. therefore. This tax. on account of the large ftiare of the profits which is confumed by the intereft of the loan. but that of the one. fo far as they afFedted the land. 6 on account of the large fliare . to taille. ^ — had not knowledge enough to forefee how much tallages. its improvement. the taille is accumulate in the hands of a French its almoft equal to a prohibition of land. No gentleman. The lands cultivated by the farmer muft. The farmer compared with the proprietor. The ftock of both may under great difadvantages. is as a merchant who trades with borrowed money compared with one who trades with his own. this muft in the in France. be improved more flowly than thofe cultivated by the proprietor. in the fame manner. with muft always improve all the liberty and fecurity which law can give. not only hinders the ftock which accumulates upon the all land from being employed in other ftock from it. but drives away The antient tenths and fifteenths. nor even any burgher who has ftock. ' end alFed their own revenue. Should any ftock happen farmer. with only equal good condud. fo ufual in England in former times. muft always improve more flowly than that of the other. ever being employed upon the This tax befides is fuppofed to difhonour whoever is fubjedl and to degrade him below.

and by the privileges of fairs and markets. in the principal improvers. the farmers are of England^ The carried antient policy of Europe was. and great far- mers are. firft. feffion to go from any other prothe improvement of land in the-wajof farming. and which. not only of corn but of almoft every other part of the produce of the farm. though even there the great flocks which in farming. however. employed have generally been acquired by farming.THE WEALTH OF NATIONS. Through and the greater part of Europe the yeomanry are regarded as an inferior rank of people. that a man of any confiderable (lock fhould quit the fuperior. The ftation of a farmer befides is. Even in the prefent ftate of Europe. all even to parts It the better fort of tradefmen to mechanics. are. every country. all perhaps. in fome places. the trade. others ftock is commonly rich acquired moft After fmall proprietors. and foreftallers. in which of flowly. over and above all this. There are more fuch perhaps In the in England than in any other European be not inferior to thofe monarchy. from inferior to that of a proprietor. and fecondly^ by the reftraints which were laid upon the inland commerce. he might have employed in the further improvement of the land. had the farmer been proprietor. whether on by the proprietor or by the farmer . republican governments of Holland and of faid to Berne in Switzerland. It has already been . can feldom happen. the nature of things. by the abfurd laws againft engroflers. in order to place himfelf in an inferior ftation. manufadurers. regrators. and in mafter of Europe the great merchants and therefore. More little ftock is likely to does perhaps in Great Britain than in any other country. by the general fpeclal licencej prohibition of the exportation of corn without a which feems to have been a very univerfal regulation. unfavourable to the improvement and cultivation of land. therefore. ihareof the produce -which is 479 confumed in the rent.

cities ^ \^ HE inhabitants of and not towns were. The pri- vileges . naturally the moft fertile country in Eiirope. after the fall - of the the country. on the contrary. lefs favourably circumftanced. and^t that time the feat of the greateft the inland empire in the world. of a very different order of people from the inhabitants of the antient republicks of Greece and Italy. To what degree fuch reftraints upon commerce of and this commodity. CHAP. or very nearly of condition.480 THE NATURE AND CAUSES OF been obferved in what manner the prohibition of the exportation of t BOOK III. obftruded the cuhivation of antient Italy. the fake of was originally divided. After the fall Roman empire. firft more favoured than thofe of indeed. it is i. Of the Rife III. who feem in thofe days to fervile have beenof fervile. mufl have' dilcouraged the cultivation of countries fertile. among whom the publick and who found it convenient to tourhood of one another. v„^ ^ corn. They confifted. Roman empire. together with fome encouragement given to the importation of foreign corn. ami Frogrifs of the Cities and To%vnsy after the Fall of Roman Empire. joined to the general prohibition of lefs exportation. Thefe lad were compofed chiefly of the proprietors of territory lands. build their houfes in the neigh- and to furround them with of the a wall. not perhaps very sCafy to imagine. and in the midft of own tenants and dependants. for common defence. bited by tradefmen The towns were chiefly inhaand mechanicks. the proprietors of land feem generally to have lived in fortified caftles their on their own eftates.

they pafled through certain manors. indeed. Sometimes the king.of their own efTetfls by vallj. taxes ufed to be levied upon the perfons and goods of travellers. mean fett of who ufed to travel about with their goods from place to place. pontage. vllej^es 481 of which we fome of the principal towns in Europe. Thefe different taxes were known England by the names of pafTage. 3 0^ pleafure . cr the Vol. during either their lives. that they might give away daughters in marriage their death their without the confent of their lord. and it {tallage. fufficiently ihew what they granted as a pri- were before thofe grants. the different countries of Europe then.THE WEALTH OF NATIONS.. when they went over certain bridges. have been either altogether. would grant particular traders. feem. perhaps. They in return ufually paid to their pro- tedor a fort of annual poll-tax. or very nearly of fervile condition. to feems. and that they might difpofe. and to have affeded only particular individuals. laflage* lord.me occafions. They people. be confidered as compenfation for what their patrons miglit their lofe by exemption from other taxes. to the inhabitants CHAP.. like the hawkers and pedlars of the prefent times. and from In all fair to fair. In thofe days protedion was feldom- granted without a valuable confideratlon. and not their lord. in other this a general exemption from fuch taxes. and this tax migh-t. fometlmes a great fo. both thofe poll-taxes and thofe exemptions feera to have been altogether perfonal. fliould fucceed to their goods. At firft. I. were upon account called Free-traders. find granted by antient charters . authority to who had. The people to their whom own upon it is vilege. to have been a very poor. when fair. though refpeds of fervile. when they carried about their goods from place to place in a eredled in it when they a in booth or ftall to fell them in. . HI. or very nearly in the fame flate of villanage with the occupiers of land in the country. before thofe grants. Such traders.muft. to fuch particularly as lived in their own demefnes. that own children. upon do this. in the fame manner as in fevcral of the Tartar governments of Afia at prefent.

The payment having thus beand Burroughs. in their officers. that they arrived' earlier and independency much than the occupiers of land in the country. edition. s come . I believe. 223. referving a rent cer- tain never afterwards to be * See Brady's •}• augmented. The burghers they becom- themfelves frequently got credit enough to be admitted to farm the revenues of this fort which arofe out of their own town. appears evidently. the farm of the as it town was probably lett to the burghers. firfl. fometimes of the tax which particular burghers paid. But how at liberty fervlle foever may have been it originally the conditioa of the inhabitants of the towns. y. but in return being allowed to colled it pay into the king's exchequer by the own way. each of them. and fometimes to other perfons. and fometimes of the general amount only of all thofe taxes *. of feveral of the towns of England. mention is frequently made. alfo Hiftoiy of the Exchequer.. it feems to have become the general is pradice to grant to them in fee. p. See Madox Firma firft Burgi. |). 3.4^2 THE NATURE AND CAUSES OF pleafure of their prote£lors. for a it term of years Inprocefsof time. BOOK In the very imperfed accounts which have been publifhed from Domefday-book. however. that for ever. SeQ. and hands of their own bailiff. lo. To lett . ufed commonly to be lett in farm. 18. ehap. they lett whole manors to all the tenants of thofe becoming jointly and feverally anfwerable for the it whole rent to . ing jointly and feverally anfvverable for the whole rent f. hiftorical treatife of Cities &c. flierifT fometimes to the of the county. That part of the king's revenue which arofe froni fuch poll-taxes in any particular town. ia the fame manner had been to other farmers. and being thus altogether freed from the infolence of the king's a circumftance in thofe days regarded as of the greateft importance. p. or to fome other great lord. either to the king. At only. a farm in this manner was quite agreeable to the ufual oeconomy of. the fovereigns of all the different countries of Europe who ma- ufed frequently to nors. for this fort of protedion . during a term of years for a rent certain.

word Freedom. of making bye-laws for of building walls for their their own government. but as burghers of a particular burgh. burghers. and all fuch pleas as fhould left to among them. they were. Thofe exemptions. the principal attributes of villanage and flavery being thus taken away from them. na- turally became perpetual too. ceafed to be perfonal. it were generally beftowed upon the burghers of the town to whom was given. 3 CL? ^ It . Along that they with this grant. the pleas of the crown excepted. is. In England they were generally exempted from fuit arife to the hundred and county courts . Whether fuch privileges had before been ufually granted along with the freedom of trade. They were generally at the fame time ereded commonality or corporation. I to particular know not. and more extenfive jurifdidtions were frequently granted * II. became really free in our prefent fenfe of the Nor into a giftrates was this all. I reckon it not improbable that it. might give away their own daughters in marriage. as individuals. the exemptions. which. at leaft. they now. and could not afterwards be confidered as belonging to individuals as individuals. therefore. that their children fhould fucceed to them. and that they might difpofe of their own effedts by will. and defend thofe walls againfl all attacks and furprifes night as well as by day. was called a Free-burgh. upon this account. ia return for 483 which it was made. with the privilege of having maand a town-council of their own. by by them to watch and ward. the decifion of their own In other countries much to greater *. were magiftrates. come perpetual. all their own defence.THE WEALTH OF NATIONS. the important privileges above mentioned. them See Madox Firtna Burgi : See alfo Pfeffel in the remarkable events under Frederick and his fucceflbrs of the houfe of Swabia. for the fame reafon that they had been called Free-burghers or Free-traders. that as antiently underftood. and of reducing obliging to guard inhabitants under a fort of military difcipline. though I cannot produce any dired evidence of But however this may have been.

r towns as were own revenues. which was. The lords whom they confidered The wealth of not only as of a different order. almoft of a different fpecies to from themfelves. and in order it to become either his flaves or to enter into a league of mutual defence for the common prote£lion of one another. and they plundered them occafion without upon every mercy or remorfe. perhaps. of all others the moft likely to be improved by the natural courfe of things. lord. Europe. fome fort of compulfive jurifIn thofe difortheir own citizens to make payment. -in tliat in thofe days the fovereign of perhaps no country protedt. befides. the weaker part lords. all have it left them to feek this fort But muft feem extraordinary that the fovereigns of Europe. fhould have exchanged in this manner for tJiat rent certain. but as a parcel of emancipated flaves. was able to through the whole extent of his dominions. it muft' be remembered. without either expence or attention of their own: and ereded a dominions. had no power defend themfelves but by entering into a league of mutual defence with their neighbours i they were capable of making no contemptible refinance. the burghers never failed provoke their envy and indignation.484 THE NATURE AND CAUSES OF It might. The burghers naturally hated and feared the lords. the difFereat countries of a. to confidered as fingle individuals. never more to be augmented. The inhabitants of cities and burghs. defplfei the burghers. be neceffary admitted to farm their didlion to oblige to grant to fuch . that they fhould. were obliged either to have recourfe to the prote£lion of fbme great or vaflals . to derly times it might have been extremely inconvenient of juftice from any other tribunaJ. ©f his fubjeds from the opprefTion of the great the law could not proted. and Thofe to. branch of their revenue. have in this manner voluntarily fort of independent republicks in the heart of their owa In order to underfland this. probably. -Jr The king hated and feared them . whom defend who were to obtain not flrong enough themfelves.

They were the enemies of his enemies. but though perhaps he might defplfe. The princes who to lived upon the worft terms with their barons. or by granting to fome other farmer. any permanent fecurity.THE WEALTH OF NATIONS. voluntary league of mutual defence could either have afforded thern. either by it he was ever afterwards their to opprefs farm rent of town. if one m.ay fay fufpicion that raifing the for his allies. that of all building walls for their own defence. ^therefore. his fon Lewis. ground of jealoufy and them. confulted. for their making bye laws own government. Towards of his reign. King John of England. according to Father Daniel. Philip the Flrft of France the end authority over his barons. and the king to fupport them it againft the lord«. or have enabled them to give the king any confiderable fupport fee. their all inhabitants under a fort of military he gave them it the means of fecurity and independency of the barons which in his was power to beftow. tliem too. granting them the farm of their town in he took away from thofe whom he wifhed all to have for his friends. By fo. this kind. appears to have been a moft munificent benefador to his towns*. and that of reducing difcipline. concerning the moft proper means ©f reftraining the violence of the great lords.. difpofed them to fupport the kuig. with the bifhops of the royal demefnes. * See ' Their advice con^ Madox. as fecure and was his intereft to render them and independent of thofe enemies as he could. and. the privilege of By granting them magiftrates of their own. known afterwards by the name of Lewis the Fat. fifted . he had no reafon either to hate or fear the burghers. Without the eftablifhment of fome regular without fome authority to compel their no' government of inhabitants to ad according to fome certain plan or fyftem. feem accordingly have been the moft liberal in grants of this- kind to their burghs. loft all for example. 4% ^ ^^ P* Mutual intereft.

In coun- fuch as Italy and Switzerland. The other was to form a new militia. that we are to date the inftitution It of the magiftrates and councils of cities in France. of the natural ftrength of the country or of fome other reafon. in feat which. One was to ered a new order of jurifdidion. *. obliging them to pull down the country. like other peaceable inhabitants. of periftied. of government. and as they could be more readily affembled upon any fudden occafion. the hiftory of the confiderable Italian republicks. as well as cities in is of feveral other Switzerland. * SeePfeffel. the cities generally all became independent republicks. by eftablifhing magiftrates and a town council in every confiderable town of his demefnes. If you except Venice. was during the grants unprofperous reigns of the princes of the houfe of Suabia that the greater part of the free towns of Germany received the firft firft of their privileges. it is for of all that city the hiftory fomewhat diff'erent. on account either of their diftance from the principal itfelf. It is from this period. which fo great a number arofe and between the end of the twelfth and the beginning of the fixteenth century. live. in the This is the fhort hiftory of the republick of Berne. under the command of their own magiftrates. tries.THE NATURE AND CAUSES OF fifted of two different propofals. their and conquered the nobility in their caftles in neighbourhood. they frequently had the ad- vantage in their difputes with the neighbouring lords. and to city. In . the fovereign came to lofe the whole of his authority. in thofe times. and that the famous Hanfeatic league became formidable The militia of the cities feems. according to the French antiquarians. not to have been inferior to that of the country. by making the inhabitants of thofe towns. march out upon proper occafions to the afliftance of the king.

otherwife have belonged. was eftablifhed in long before it cities was commonly pradifed by the occupiers of ftock fliould accumulate. liberty and fecurity of individuals. The law was at that time ib indulgent to the inhabitanta> . They were. If in the hands of a poor cultivator^ oppreffed with little the fervitude of villanage. eftablifhed in- when the occupiers of land in the country were ex- pofed to every fort of violence.THE WEALTH OF NATIONS. but the conveniencies and elegancies of That induftry. a time in this manner. fome extraordinary aid to the king. and along with them the were. and to acquire not life. which aims at fomething more than neceflary fubfiftence. fome naturally conceal it he wouldit with great care from his mafter. naturally content themfelves with their neceflary fubfiftence caufe to acquire prelTors. never was deftroyed altogether. fometimes. to have been employed by him coun- ter-balance in thofe affemblies to the authority of the great lords. befides the ftated farm-rent of the town. away to a town. therefore. when they are fecure of enjoying the it frujts of their induftry. They became. the cities had no opportunity of becoming entirely independent. therefore. But men in this defencelefs ftate . where the authority though frequently very low. and take the opportunity of running. as France or 487 England. firft whom would. Order cities at and good government. only the neceflaries. where they might join with the clergy and the barons in granting. they naturally exert to better their con- dition. however. Hence of all the origin of the reprefentation of burghs in the ftates general the great monarchies in Europe. In countries fuch of the fovereign. to land- in the country. upon urgent occafions. be- more might only tempt the injuftice of their op- On the contrary. upon to fend deputies to the general affembly of the ftates of the kingdom. their as a deputies feem. fo confiderable that the fove- reign could impofe no tax upon them. Being generally too more favourable to his power. without their called own confent.

as the only fanduaries in it. could afford its it but a fmall part. accumulated ous part of the inhabitants of the country. while not only the country but all neighbourhood. either of all fubfiftence. that if he could conceal himfelf there from the purfuit of his loi-d for a year. or it of employment. There were. exchange for the maor nufactured produce of their own induftry. fome part of the coaft of Barbary. it Such was the Greek empire as long as fubfifted. which it could be fecure to the perfon that acquired The inhabitants of a city. The . but of them taken together could afford both a great fubfiftenCe and a great employment. muft always ultimately derive their fubfiftence. thofe to which it traded. fituated near either the fea-coaft or the banks of a navigable river. how- within the that narrow circle of the commerce of thofe times. poverty and wretchednefs. and fo defirous of diminiflilng the authority of the lords over thofe of the country. in the he was free for ever. and the whole materials and means of their induftry from the country. therefore. produce of one for that of another. A city might in manner were in grow up in its to great wealth and fplendor. Such too was Egypt was conquered by the Turks. and may draw them from the either in mod office remote corners of the world. naturally took refuge in cities. and all thofe provinces of Spain which were under the government of the Moors. hands of the induftri- Whatever ftock. and that of the Saracens during till it the reigns of the Abaffides. by performing the and exchanging the this of carriers between diftant countries. Each of thofe countries. ever. taken its fmgly. perhaps. it is true. fome countries were opulent and induflrious. But thofe of a city.488 ^ THE NATURE AND CAUSES OF ^^ ^iP habitants of towns. They have a much wider range. are not neceffarily confined to derive them from the country in their neighbourhood.

THE WEALTH OF NATIONS.
The
were
cities

489

of Italy feem

to to

have been the

firft

in

Europe which

raifed

by commerce

Italy lay in

any confiderable degree of opulence. the center of what was at that time the improved
of the world.

and

civilized part

The

cruzadcs too,

though by

the great wafte of ftock and deftrudtion of inhabitants which they
cccafioned, they muft neceflarily have retarded the progrefs of the
greater part of Europe,
Italian cities.

were extremely favourable

to that

of fome

conqueft of

The great armies which marched from all parts to the the Holy Land, gave extaordinary encouragement to the
Pifa,

Slipping of Venice, Genoa, and
thither,

fometimes in tranfporting them

and always

in

fupplying them with provifions.

They were
and the

the commiflaries, if one
deftru(ftive

may

fay fo, of thofe armies;

mod

frenzy that ever befel the European nations, was a fource of opulence to thofe republics.

The

inhabitants of trading

cities,

by importing the improved
afforded

manufa£lures and expenfive luxuries of richer countries,

fome food

to the vanity

of the great proprietors,

them with great

quantities of the rude

who eagerly purchafed produce of their own lands. own rude, for the manuThus the wool of England
of Poland
is

The commerce

of a great part of Europe in thofe times accordingly,

confifted chiefly in the

exchange of

their

fadlured produce of

more

civilized nations.

ufed to be exchanged for the wines of France, and the fine cloths of
Flanders, in the fame

manner

as the corn

at

this

day
filks

exchanged for the wines and brandies of France, and for the

and velvets of France and

Italy.

A
this

TASTE

for the finer and

more improved manufadlures, was
into countries

in

manner introduced by foreign commerce
But when

where no

fuch works were carried on.
to occafion a confiderable

this tafte

became

fo general as

demand, the merchants,

in order to fave the

expence of carriage, naturally endeavoured

to eftablifli

fome manufadures

VoL.

I.

3

R

490

THE NATURE AND CAUSES OF
fadiires of the fame kind In their

own

country.
fale

Hence the
feem
to

origin

of the

firfl:

manufadures

for diflant

that

have been

eftablifhed in the weftern provinces of Europe, after the fall

of the

Roman

empire.
it

No
it is

large country,
fort

muft be obferved,

ever did or could fubfifl
it;

without fome
faid

of manufadures being carried on in
it

and whenit

of any fuch country that

has no manufactures,

muft

always be underftood of the finer and more improved, or of fuch as
are
fit

for diftant fale.

In every large country, both the cloathing and

houfliold furniture of the far greater part of the people, are the pro-

duce of their

own induftry.

This

is

even more univerfally the cafe in
faid to

thofe poor countries
tures,

which are commonly

have no manufacin

than in thofe rich ones that are

faid to

abound

them.

In

the latter, you will generally find, both in the cloaths and houfhold
furniture of the loweft rank of people, a

much

greater proportion of

foreign produdlions than in the former.

Those

manufadlures which are

fit

for diftant
ifi

fale,

feem

to

have

been introduced into different countries

two

different ways.
in

Sometimes
of particular

they have been introduced,

the

manner above

mentioned, by the violent operation, if one

may fay fo, of the flocks merchants and undertakers, who cftablifhed them in
manufadures of the fame kind.
Such

imitation of fome foreign

manufadures, therefore, are the offspring of foreign commerce, and
fuch feem to have been the antient manufactures of
filks,

velvets,

and brocades, which flourifhed
tury.

in

Lucca during the thirteenth cen-

They were

banlfhed from thence by the tyranny of one of
In 1310, nine hundred
thirty-one retired
to-

Machiavel's heroes, Caftruccio Caftracani.
families were driven out of Lucca, of

whom

Venice and offered
,

to introduce there the filk

manufacture*.
I.

Their

* See Sandi Iftoria Civile de Vinezia, Part 2. vol.

page 247, and 25 f«.

offer

THE WEALTH OF NATIONS.
offer

491
^

was accepted

;

many

privileges

were conferred upon them, and

^^

^'•

they began the manufadlure with three hundred workmen.
too feem to have been the
flouriflied in Flanders,

Such

<>—

—v-—

manufadures of

fine cloths that antiently

and which were introduced into England

in

the beginning of the reign of Elizabeth;
filk

and fuch are the prefent

manufadures of Lyons and
in this

Spital- fields.

Manufadures

intro-

duced

manner

are generally

employed upon foreign

materials,

being imitations of foreign manufadures.

When
were

the Venetian
all

ma-

nufadure was
Sicily

firft

eftablilhed the materials

brought from

and the Levant.

The more

antient

manufadure of Lucca

was
been

likewife carried
trees,

on with foreign materials.
filk

The

cultivation

of

mulberry

and the breeding of
in

worms feems

not to have

common

the northern parts of Italy before the fixteenth

century.

Thofe

arts

were not introduced into France

till

the reign
chiefly

of Charles IX.

The manufadures of Flanders were carried on

with Spanifli and Englifh wool.
not of the
that
firft

Spanifh wool was the material,
firft

woollen manufadure of England, but of the

was

fit

for diftant fale.
is

More
this

than one half the materials of
filk;

the Lyons
firft

manufadure

at

day foreign

when
is

it

was

eftabliflied,

the whole or very nearly the whole was

fo.

No

part of the materials of the Spital-fields manufadure
to be the produce of England.

ever likely

The

feat

of fuch manufadures, as

they are generally introduced by the fcheme and projed of a few individuals,
is

fometimes

eftabliflied in a

maritime

city,

and fometimes
caprice

in an inland town,

according as their intereft,

judgment or

happen

to determine.

At
and
as

other times manufadures for diftant fale
it

grow up
at

naturally,

were of

their

own

accord,

by the gradual refinement of
all

thofe houfliold and coarfer

manufadures which muft

times

be carried on even in the pooreft and rudeft countries.

Such

manufadures are generally employed upon the materials which the
3

R

2

country

49^

THE NATURE AND CAUSES OF
country produces, and they feem frequently to have been
firft

refined

and improved

in

fuch inland countries as

v^^ere,

not indeed at a very

great, but at a confiderable diftance

from the

fea coaft,

and fometimes

even from

all

water carriage.

An

inland country naturally fertile

and

eafily cultivated,
is

produces a great furplus of provifions beyond

what

neceflary for maintaining the cultivators, and

on account of Abundance,

the expence of land carriage, and inconveniency of river navigation,
it

may frequently be difficult to
workmen
to fettle in the

fend this furplus abroad.

therefore, renders provifions cheap,

and encourages a great number

of

neighbourhood,

who

find that their in-

duftry can there procure

them more of the

neceflaries

and conveni-

encies of life than in other places.

They work up
it,

the materials of

manufafture which the land produces, and exchange their finifhed

work, or what
and provifions.

is

the fame thing the price of

for

more materials
water

They

give a

new

value to the furplus part of the
it

rude produce by faving the expence of carrying
or to fome diftant market
;

to the

fide,

and they furnifh the cultivators with
it

fomething in exchange for
them, upon
eafier

that

is

either ufeful or agreeable
it

to

terms than they could have obtained

before.

The

cultivators get a better price for their furplus produce,

and can

purchafe cheaper other conveniencies which they have occafion for.

They
and

are thus both encouraged and enabled to increafe this furplus
j

produce by a further improvement and better cultivation of the land
as the fertility of the land

had given birth

to the

manufadure,

fo the progrefs
flill

of the manufadure re-a£ts upon the land, and increafes

The manufadurers firft fupply the neighbourhood, and afterwards, as their work improves and refines, more
further
its fertility.

diftant markets.

For though neither the rude produce,
could,

nor even
fup-

the coarfe

manufadure

without the greateft

difficulty,

port the expence of a confiderable land carriage,

the refined and
it

improved manufadlure

eafily

may.

In a fmall bulk

frequently con-

tains the price of a great quantity of rude produce.

A

piece of fine
cloth

THE WEALTH
cloth, for
it,

OF NATIONS.
in
\_

493

example, ^vhich weighs only eighty pounds, contains

CHAP.
- ,._/

the price, not only of eighty pounds weight of wool, but fomethe maintenance of the

times of feveral thoufand weight of corn,
different

working people, and of

their

immediate employers.
its

corn which could with difficulty have been carried abroad in
fhape,
is

The own

in this

manner

virtually exported in that of the complete

manufaflure, and
world.
their

may

eafily

be fent to the remoteft corners of the
naturally,

In this

manner have grown up
and Wolverhampton.
In the

and

as

it

were of

own

accord,

the manufactures of Leeds, Halifax, Sheffield,

Birmingham,

Such manufa