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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 Americ
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