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the misery of that declension。

     The quantity of money; on the contrary; must in every

country naturally increase as the value of the annual produce

increases。 The value of the consumable goods annually circulated

within the society being greater will require a greater quantity

of money to circulate them。 A part of the increased produce;

therefore; will naturally be employed in purchasing; wherever it

is to be had; the additional quantity of gold and silver

necessary for circulating the rest。 The increase of those metals

will in this case be the effect; not the cause; of the public

prosperity。 Gold and silver are purchased everywhere in the same

manner。 The food; clothing; and lodging; the revenue and

maintenance of all those whose labour or stock is employed in

bringing them from the mine to the market; is the price paid for

them in Peru as well as in England。 The country which has this

price to pay will never be long without the quantity of those

metals which it has occasion for; and no country will ever long

retain a quantity which it has no occasion for。

     Whatever; therefore; we may imagine the real wealth and

revenue of a country to consist in; whether in the value of the

annual produce of its land and labour; as plain reason seems to

dictate; or in the quantity of the precious metals which

circulate within it; as vulgar prejudices suppose; in either view

of the matter; every prodigal appears to be a public enemy; and

every frugal man a public benefactor。

     The effects of misconduct are often the same as those of

prodigality。 Every injudicious and unsuccessful project in

agriculture; mines; fisheries; trade; or manufactures; tends in

the same manner to diminish the funds destined for the

maintenance of productive labour。 In every such project; though

the capital is consumed by productive hands only; yet; as by the

injudicious manner in which they are employed they do not

reproduce the full value of their consumption; there must always

be some diminution in what would otherwise have been the

productive funds of the society。

     It can seldom happen; indeed; that the circumstances of a

great nation can be much affected either by the prodigality or

misconduct of individuals; the profusion or imprudence of some

being always more than compensated by the frugality and good

conduct of others。

     With regard to profusion; the principle which prompts to

expense is the passion for present enjoyment; which; though

sometimes violent and very difficult to be restrained; is in

general only momentary and occasional。 But the principle which

prompts to save is the desire of bettering our condition; a

desire which; though generally calm and dispassionate; comes with

us from the womb; and never leaves us till we go into the grave。

In the whole interval which separates those two moments; there is

scarce perhaps a single instant in which any man is so perfectly

and completely satisfied with his situation as to be without any

wish of alteration or improvement of any kind。 An augmentation of

fortune is the means by which the greater part of men propose and

wish to better their condition。 It is the means the most vulgar

and the most obvious; and the most likely way of augmenting their

fortune is to save and accumulate some part of what they acquire;

either regularly and annually; or upon some extraordinary

occasions。 Though the principle of expense; therefore; prevails

in almost all men upon some occasions; and in some men upon

almost all occasions; yet in the greater part of men; taking the

whole course of their life at an average; the principle of

frugality seems not only to predominate; but to predominate very

greatly。

     With regard to misconduct; the number of prudent and

successful undertakings is everywhere much greater than that of

injudicious and unsuccessful ones。 After all our complaints of

the frequency of bankruptcies; the unhappy men who fall into this

misfortune make but a very small part of the whole number engaged

in trade; and all other sorts of business; not much more perhaps

than one in a thousand。 Bankruptcy is perhaps the greatest and

most humiliating calamity which can befall an innocent man。 The

greater part of men; therefore; are sufficiently careful to avoid

it。 Some; indeed; do not avoid it; as some do not avoid the

gallows。

     Great nations are never impoverished by private; though they

sometimes are by public prodigality and misconduct。 The whole; or

almost the whole public revenue; is in most countries employed in

maintaining unproductive hands。 Such are the people who compose a

numerous and splendid court; a great ecclesiastical

establishment; great fleets and armies; who in time of peace

produce nothing; and in time of war acquire nothing which can

compensate the expense of maintaining them; even while the war

lasts。 Such people; as they themselves produce nothing; are all

maintained by the produce of other men's labour。 When multiplied;

therefore; to an unnecessary number; they may in a particular

year consume so great a share of this produce; as not to leave a

sufficiency for maintaining the productive labourers; who should

reproduce it next year。 The next year's produce; therefore; will

be less than that of the foregoing; and if the same disorder

should continue; that of the third year will be still less than

that of the second。 Those unproductive hands; who should be

maintained by a part only of the spare revenue of the people; may

consume so great a share of their whole revenue; and thereby

oblige so great a number to encroach upon their capitals; upon

the funds destined for the maintenance of productive labour; that

all the frugality and good conduct of individuals may not be able

to compensate the waste and degradation of produce occasioned by

this violent and forced encroachment。

     This frugality and good conduct; however; is upon most

occasions; it appears from experience; sufficient to compensate;

not only the private prodigality and misconduct of individuals;

but the public extravagance of government。 The uniform; constant;

and uninterrupted effort of every man to better his condition;

the principle from which public and national; as well as private

opulence is originally derived; is frequently powerful enough to

maintain the natural progress of things towards improvement; in

spite both of the extravagance of government and of the greatest

errors of administration。 Like the unknown principle of animal

life; it frequently restores health and vigour to the

constitution; in spite; not only of the disease; but of the

absurd prescriptions of the doctor。

     The annual produce of the land and labour of any nation can

be increased in its value by no other means but by increasing

either the number of its productive labourers; or the productive

powers of those labourers who had before been employed。 The

number of its productive labourers; it is evident; can never be

much increased; but in consequence of an increase of capital; or

of the funds destined for maintaining them。 The productive powers

of the same number of labourers cannot be increased; but in

consequence either of some addition and improvement to those

machines and instruments which facilitate and abridge labour; or

of a more proper division and distribution of employment。 In

either case an additional capital is almost always required。 It

is by means of an additional capital only that the undertaker of

any work can either provide his workmen with better machinery or

make a more proper distribution of employment among them。 When

the work to be done consists of a number of parts; to keep every

man constantly employed in one way requires a much greater

capital than where every man is occasionally employed in every

different part of the work。 When we compare; therefore; the state

of a nation at two different periods; and find; that the annual

produce of its land and labour is evidently greater at the latter

than at the former; that its lands are better cultivated; its

manufactures more numerous and more flourishing; and its trade

more extensive; we may be assured that its capital must have

increased during the interval between those two periods; and that

more must have been added to it by the good conduct of some than

had been taken from it either by the private misconduct of others

or by the public extravagance of government。 But we shall find

this to have been the case of almost all nations; in all

tolerably quiet and peaceable times; even of those who have not

enjoyed the most prudent and parsimonious governments。 To form a

right judgment of it; indeed; we must compare the state of the

country at periods somewhat distant from one another。 The

progress is frequently so gradual that; at near periods; the

improvement is not only not sensible; but from the declension

either of certain branches of industry; or of certain districts

of the country; things which sometimes happen though the country

in general be in great prosperity; there frequently arises a

sus

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