An Inquiry into the Nature and Causes of the Wealth of NationsSmith, Adam
History
An Inquiry into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
Rent, even where coals afford one, has generally a smaller share in their
price than in that of most other parts of the rude produce of land. The
rent of an estate above ground, commonly amounts to what is supposed to be
a third of the gross produce; and it is generally a rent certain and
independent of the occasional variations in the crop. In coal mines, a
fifth of the gross produce is a very great rent, a tenth the common rent;
and it is seldom a rent certain, but depends upon the occasional
variations in the produce. These are so great, that in a country where
thirty years purchase is considered as a moderate price for the property
of a landed estate, ten years purchase is regarded as a good price for
that of a coal mine.
The value of a coal mine to the proprietor, frequently depends as much
upon its situation as upon its fertility. That of a metallic mine depends
more upon its fertility, and less upon its situation. The coarse, and
still more the precious metals, when separated from the ore, are so
valuable, that they can generally bear the expense of a very long land,
and of the most distant sea carriage. Their market is not confined to the
countries in the neighbourhood of the mine, but extends to the whole
world. The copper of Japan makes an article of commerce in Europe; the
iron of Spain in that of Chili and Peru. The silver of Peru finds its way,
not only to Europe, but from Europe to China.
The price of coals in Westmoreland or Shropshire can have little effect on
their price at Newcastle; and their price in the Lionnois can have none at
all. The productions of such distant coal mines can never be brought into
competition with one another. But the productions of the most distant
metallic mines frequently may, and in fact commonly are.
Public-domain text, read in full here on John Shaqi.
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