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AN　INQUIRY　INTO　THE　NATURE　AND　CAUSES　OF　THE　WEALTH　OF　NATIONS



by　Adam　Smith　　



1776





　　　　　　　　　　　　　　　　　　　　　　　　　　　　　BOOK　THREE　　



　　　　　　OF　THE　DIFFERENT　PROGRESS　OF　OPULENCE　IN　DIFFERENT　NATIONS





　　　　　　　　　　　　　　　　　　Of　the　Natural　Progress　of　Opulence　





　　　　　THE　great　commerce　of　every　civilised　society　is　that

carried　on　between　the　inhabitants　of　the　town　and　those　of　the

country。　It　consists　in　the　exchange　of　rude　for　manufactured

produce；　either　immediately；　or　by　the　intervention　of　money；　or

of　some　sort　of　paper　which　represents　money。　The　country

supplies　the　town　with　the　means　of　subsistence　and　the　materials

of　manufacture。　The　town　repays　this　supply　by　sending　back　a

part　of　the　manufactured　produce　to　the　inhabitants　of　the

country。　The　town；　in　which　there　neither　is　nor　can　be　any

reproduction　of　substances；　may　very　properly　be　said　to　gain　its

whole　wealth　and　subsistence　from　the　country。　We　must　not；

however；　upon　this　account；　imagine　that　the　gain　of　the　town　is

the　loss　of　the　country。　The　gains　of　both　are　mutual　and

reciprocal；　and　the　division　of　labour　is　in　this；　as　in　all

other　cases；　advantageous　to　all　the　different　persons　employed

in　the　various　occupations　into　which　it　is　subdivided。　The

inhabitants　of　the　country　purchase　of　the　town　a　greater

quantity　of　manufactured　goods；　with　the　produce　of　a　much

smaller　quantity　of　their　own　labour；　than　they　must　have

employed　had　they　attempted　to　prepare　them　themselves。　The　town

affords　a　market　for　the　surplus　produce　of　the　country；　or　what

is　over　and　above　the　maintenance　of　the　cultivators；　and　it　is

there　that　the　inhabitants　of　the　country　exchange　it　for

something　else　which　is　in　demand　among　them。　The　greater　the

number　and　revenue　of　the　inhabitants　of　the　town；　the　more

extensive　is　the　market　which　it　affords　to　those　of　the　country；

and　the　more　extensive　that　market；　it　is　always　the　more

advantageous　to　a　great　number。　The　corn　which　grows　within　a

mile　of　the　town　sells　there　for　the　same　price　with　that　which

comes　from　twenty　miles　distance。　But　the　price　of　the　latter

must　generally　not　only　pay　the　expense　of　raising　and　bringing

it　to　market；　but　afford；　too；　the　ordinary　profits　of

agriculture　to　the　farmer。　The　proprietors　and　cultivators　of　the

country；　therefore；　which　lies　in　the　neighbourhood　of　the　town；

over　and　above　the　ordinary　profits　of　agriculture；　gain；　in　the

price　of　what　they　sell；　the　whole　value　of　the　carriage　of　the

like　produce　that　is　brought　from　more　distant　parts；　and　they

have；　besides；　the　whole　value　of　this　carriage　in　the　price　of

what　they　buy。　Compare　the　cultivation　of　the　lands　in　the

neighbourhood　of　any　considerable　town　with　that　of　those　which

lie　at　some　distance　from　it；　and　you　will　easily　satisfy

yourself　how　much　the　country　is　benefited　by　the　commerce　of　the

town。　Among　all　the　absurd　speculations　that　have　been　propagated

concerning　the　balance　of　trade；　it　has　never　been　pretended　that

either　the　country　loses　by　its　commerce　with　the　town；　or　the

town　by　that　with　the　country　which　maintains　it。

　　　　　As　subsistence　is；　in　the　nature　of　things；　prior　to

conveniency　and　luxury；　so　the　industry　which　procures　the　former

must　necessarily　be　prior　to　that　which　ministers　to　the　latter。

The　cultivation　and　improvement　of　the　country；　therefore；　which

affords　subsistence；　must；　necessarily；　be　prior　to　the　increase

of　the　town；　which　furnishes　only　the　means　of　conveniency　and

luxury。　It　is　the　surplus　produce　of　the　country　only；　or　what　is

over　and　above　the　maintenance　of　the　cultivators；　that

constitutes　the　subsistence　of　the　town；　which　can　therefore

increase　only　with　the　increase　of　this　surplus　produce。　The

town；　indeed；　may　not　always　derive　its　whole　subsistence　from

the　country　in　its　neighbourhood；　or　even　from　the　territory　to

which　it　belongs；　but　from　very　distant　countries；　and　this；

though　it　forms　no　exception　from　the　general　rule；　has

occasioned　considerable　variations　in　the　progress　of　opulence　in

different　ages　and　nations。

　　　　　That　order　of　things　which　necessity　imposes　in　general；

though　not　in　every　particular　country；　is；　in　every　particular

country；　promoted　by　the　natural　inclinations　of　man。　If　human

institutions　had　never　thwarted　those　natural　inclinations；　the

towns　could　nowhere　have　increased　beyond　what　the　improvement

and　cultivation　of　the　territory　in　which　they　were　situated

could　support；　till　such　time；　at　least；　as　the　whole　of　that

territory　was　completely　cultivated　and　improved。　Upon　equal；　or

nearly　equal　profits；　most　men　will　choose　to　employ　their

capitals　rather　in　the　improvement　and　cultivation　of　land　than

either　in　manufactures　or　in　foreign　trade。　The　man　who　employs

his　capital　in　land　has　it　more　under　his　view　and　command；　and

his　fortune　is　much　less　liable　to　accidents　than　that　of　the

trader；　who　is　obliged　frequently　to　commit　it；　not　only　to　the

winds　and　the　waves；　but　to　the　more　uncertain　elements　of　human

folly　and　injustice；　by　giving　great　credits　in　distant　countries

to　men　with　whose　character　and　situation　he　can　seldom　be

thoroughly　acquainted。　The　capital　of　the　landlord；　on　the

contrary；　which　is　fixed　in　the　improvement　of　his　land；　seems　to

be　as　well　secured　as　the　nature　of　human　affairs　can　admit　of。

The　beauty　of　the　country　besides；　the　pleasures　of　a　country

life；　the　tranquillity　of　mind　which　it　promises；　and　wherever

the　injustice　of　human　laws　does　not　disturb　it；　the　independency

which　it　really　affords；　have　charms　that　more　or　less　attract

everybody；　and　as　to　cultivate　the　ground　was　the　original

destination　of　man；　so　in　every　stage　of　his　existence　he　seems

to　retain　a　predilection　for　this　primitive　employment。

　　　　　Without　the　assistance　of　some　artificers；　indeed；　the

cultivation　of　land　cannot　be　carried　on　but　with　great

inconveniency　and　continual　interruption。　Smiths；　carpenters；

wheelwrights；　and　ploughwrights；　masons；　and　bricklayers；

tanners；　shoemakers；　and　tailors　are　people　whose　service　the

farmer　has　frequent　occasion　for。　Such　artificers；　too；　stand

occasionally　in　need　of　the　assistance　of　one　another；　and　as

their　residence　is　not；　like　that　of　the　farmer；　necessarily　tied

down　to　a　precise　spot；　they　naturally　settle　in　the

neighbourhood　of　one　another；　and　thus　form　a　small　town　or

village。　The　butcher；　the　brewer；　and　the　baker　soon　join　them；

together　with　many　other　artificers　and　retailers；　necessary　or

useful　for　supplying　their　occasional　wants；　and　who　contribute

still　further　to　augment　the　town。　The　inhabitants　of　the　town

and　those　of　the　country　are　mutually　the　servants　of　one

another。　The　town　is　a　continual　fair　or　market；　to　which　the

inhabitants　of　the　country　resort　in　order　to　exchange　their　rude

for　manufactured　produce。　It　is　this　commerce　which　supplies　the

inhabitants　of　the　town　both　with　the　materials　of　their　work；

and　the　means　of　their　subsistence。　The　quantity　of　the　finished

work　which　they　sell　to　the　inhabitants　of　the　country

necessarily　regulates　the　quantity　of　the　materials　and

provisions　which　they　buy。　Neither　their　employment　nor

subsistence；　therefore；　can　augment　but　in　proportion　to　the

augmentation　of　the　demand　from　the　country　for　finished　work；

and　this　demand　can　augment　only　in　proportion　to　the　extension

of　improvement　and　cultivation。　Had　human　institutions；

therefore；　never　disturbed　the　natural　course　of　things；　the

progressive　wealth　and　increase　of　the　towns　would；　in　every

political　society；　be　consequential；　and　in　proportion　to　the

improvement　and　cultivation　of　the　territory　or　country。

　　　　　In　our　North　American　colonies；　where　uncultivated　land　is

still　to　be　had　upon　easy　terms；　no　manufactures　for　distant　sale

have　ever　yet　been　established　in　any　of　their　towns。　When　an

artificer　has　acquired　a　little　more　stock　than　is　necessary　for

carrying　on　his　own　business　in　supplying　the　neighbouring

country；　he　does　not；　in　North　America；　attempt　to　establish　with

it　a　manufacture　for　more　distant　sale；　but　employs　it　in　the

purchase　and　improvement　of　uncultivated　land。　From　artificer　he

becomes　planter；　and　neither　the　large　wages　nor　the　easy

subsistence　which　that　country　affords　to　artificers　can　bribe

him　rather　to　work　for　other　people　than　for　himself。　He　feels

that　an　artificer　is　the　servant　of　his　customers；　from　whom　he

derives　his　subsistence；　but　that　a　planter　who　cultivates　his

own　land；　and　derives　his　necessary　subsistence　from　the　labour

of　his　own　family；　is　really　a　master；　and　independent　of　all　the

world。

　　　　　In　countries；　on　the　contrary；　where　there　is　either　no

uncultivated　land；　or　none　that　can　be　had　upon　easy　terms；　every

artificer　who　has　acquired　more　stock　than　he　can　employ　in　the

occasional　jobs　of　the　neighbourhood　endeavours　to　prepare　work

for　more　distant　sale。　The　smith　erects　some　sort　of　iron；　the

weaver　some　sort　of　linen　or　woollen　manufactory。　Those　different

ma