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it can be fit for use and consumption; it either would never be

produced; because there could be no demand for it; or if it was

produced spontaneously; it would be of no value in exchange; and

could add nothing to the wealth of the society。

     Unless a capital was employed in transporting either the

rude or manufactured produce from the places where it abounds to

those where it is wanted; no more of either could be produced

than was necessary for the consumption of the neighbourhood。 The

capital of the merchant exchanges the surplus produce of one

place for that of another; and thus encourages the industry and

increases the enjoyments of both。

     Unless a capital was employed in breaking and dividing

certain portions either of the rude or manufactured produce into

such small parcels as suit the occasional demands of those who

want them; every man would be obliged to purchase a greater

quantity of the goods he wanted than his immediate occasions

required。 If there was no such trade as a butcher; for example;

every man would be obliged to purchase a whole ox or a whole

sheep at a time。 This would generally be inconvenient to the

rich; and much more so to the poor。 If a poor workman was obliged

to purchase a month's or six months' provisions at a time; a

great part of the stock which he employs as a capital in the

instruments of his trade; or in the furniture of his shop; and

which yields him a revenue。 he would be forced to place in that

part of his stock which is reserved for immediate consumption;

and which yields him no revenue。 Nothing can be more convenient

for such a person than to be able to purchase his subsistence

from day to day; or even from hour to hour; as he wants it。 He is

thereby enabled to employ almost his whole stock as a capital。 He

is thus enabled to furnish work to a greater value; and the

profit; which he makes by it in this way; much more than

compensates the additional price which the profit of the retailer

imposes upon the goods。 The prejudices of some political writers

against shopkeepers and tradesmen are altogether without

foundation。 So far is it from being necessary either to tax them

or to restrict their numbers that they can never be multiplied so

as to hurt the public; though they may so as to hurt one another。

The quantity of grocery goods; for example; which can be sold in

a particular town is limited by the demand of that town and its

neighbourhood。 The capital; therefore; which can be employed in

the grocery trade cannot exceed what is sufficient to purchase

that quantity。 If this capital is divided between two different

grocers; their competition will tend to make both of them sell

cheaper than if it were in the hands of one only; and if it were

divided among twenty; their competition would be just so much the

greater; and the chance of their combining together; in order to

raise the price; just so much the less。 Their competition might

perhaps ruin some of themselves; but to take care of this is the

business of the parties concerned; and it may safely be trusted

to their discretion。 It can never hurt either the consumer or the

producer; on the contrary; it must tend to make the retailers

both sell cheaper and buy dearer than if the whole trade was

monopolized by one or two persons。 Some of them; perhaps; may

sometimes decoy a weak customer to buy what he has no occasion

for。 This evil; however; is of too little importance to deserve

the public attention; nor would it necessarily be prevented by

restricting their numbers。 It is not the multitude of ale…houses;

to give the most suspicious example; that occasions a general

disposition to drunkenness among the common people; but that

disposition arising from other causes necessarily gives

employment to a multitude of ale…houses。

     The persons whose capitals are employed in any of those four

ways are themselves productive labourers。 Their labour; when

properly directed; fixes and realizes itself in the subject or

vendible commodity upon which it is bestowed; and generally adds

to its price the value at least of their own maintenance and

consumption。 The profits of the farmer; of the manufacturer; of

the merchant; and retailer; are all drawn from the price of the

goods which the two first produce; and the two last buy and sell。

Equal capitals; however; employed in each of those four different

ways; will immediately put into motion very different quantities

of productive labour; and augment; too; in very different

proportions the value of the annual produce of the land and

labour of the society to which they belong。

     The capital of the retailer replaces; together with its

profits; that of the merchant of whom he purchases goods; and

thereby enables him to continue his business。 The retailer

himself is the only productive labourer whom it immediately

employs。 In his profits consists the whole value which its

employment adds to the annual produce of the land and labour of

the society。

     The capital of the wholesale merchant replaces; together

with their profits; the capitals of the farmers and manufacturers

of whom he purchases the rude and manufactured produce which he

deals in; and thereby enables them to continue their respective

trades。 It is by this service chiefly that he contributes

indirectly to support the productive labour of the society; and

to increase the value of its annual produce。 His capital employs;

too; the sailors and carriers who transport his goods from one

place to another; and it augments the price of those goods by the

value; not only of his profits; but of their wages。 This is all

the productive labour which it immediately puts into motion; and

all the value which it immediately adds to the annual produce。

Its operation in both these respects is a good deal superior to

that of the capital of the retailer。

     Part of the capital of the master manufacturer is employed

as a fixed capital in the instruments of his trade; and replaces;

together with its profits; that of some other artificer of whom

he purchases them。 Part of his circulating capital is employed in

purchasing materials; and replaces; with their profits; the

capitals of the farmers and miners of whom he purchases them。 But

a great part of it is always; either annually; or in a much

shorter period; distributed among the different workmen whom he

employs。 It augments the value of those materials by their wages;

and by their matters' profits upon the whole stock of wages;

materials; and instruments of trade employed in the business。 It

puts immediately into motion; therefore; a much greater quantity

of productive labour; and adds a much greater value to the annual

produce of the land and labour of the society than an equal

capital in the hands of any wholesale merchant。

     No equal capital puts into motion a greater quantity of

productive labour than that of the farmer。 Not only his labouring

servants; but his labouring cattle; are productive labourers。 In

agriculture; too; nature labours along with man; and though her

labour costs no expense; its produce has its value; as well as

that of the most expensive workmen。 The most important operations

of agriculture seem intended not so much to increase; though they

do that too; as to direct the fertility of nature towards the

production of the plants most profitable to man。 A field

overgrown with briars and brambles may frequently produce as

great a quantity of vegetables as the best cultivated vineyard or

corn field。 Planting and tillage frequently regulate more than

they animate the active fertility of nature; and after all their

labour; a great part of the work always remains to be done by

her。 The labourers and labouring cattle; therefore; employed in

agriculture; not only occasion; like the workmen in manufactures;

the reproduction of a value equal to their own consumption; or to

the capital which employs them; together with its owners'

profits; but of a much greater value。 Over and above the capital

of the farmer and all its profits; they regularly occasion the

reproduction of the rent of the landlord。 This rent may be

considered as the produce of those powers of nature; the use of

which the landlord lends to the farmer。 It is greater or smaller

according to the supposed extent of those powers; or in other

words; according to the supposed natural or improved fertility of

the land。 It is the work of nature which remains after deducting

or compensating everything which can be regarded as the work of

man。 It is seldom less than a fourth; and frequently more than a

third of the whole produce。 No equal quantity of productive

labour employed in manufactures can ever occasion so great a

reproduction。 In them nature does nothing; man does all; and the

reproduction must always be in proportion to the strength of the

agents that occasion it。 The capital employed in agriculture;

therefore; not only puts into motion a greater quantity of

productive labour than any equal capital employed in

manufactures; but in proportion; too; to the qua

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