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
As the sovereign, however, derives a considerable part of his revenue from
the produce of silver mines, the law in Peru gives every possible
encouragement to the discovery and working of new ones. Whoever discovers
a new mine, is entitled to measure off two hundred and forty-six feet in
length, according to what he supposes to be the direction of the vein, and
half as much in breadth. He becomes proprietor of this portion of the
mine, and can work it without paving any acknowledgment to the landlord.
The interest of the duke of Cornwall has given occasion to a regulation
nearly of the same kind in that ancient dutchy. In waste and uninclosed
lands, any person who discovers a tin mine may mark out its limits to a
certain extent, which is called bounding a mine. The bounder becomes the
real proprietor of the mine, and may either work it himself, or give it in
lease to another, without the consent of the owner of the land, to whom,
however, a very small acknowledgment must be paid upon working it. In both
regulations, the sacred rights of private property are sacrificed to the
supposed interests of public revenue.
The same encouragement is given in Peru to the discovery and working of
new gold mines; and in gold the king’s tax amounts only to a twentieth
part of the standard rental. It was once a fifth, and afterwards a tenth,
as in silver; but it was found that the work could not bear even the
lowest of these two taxes. If it is rare, however, say the same authors,
Frezier and Ulloa, to find a person who has made his fortune by a silver,
it is still much rarer to find one who has done so by a gold mine. This
twentieth part seems to be the whole rent which is paid by the greater
part of the gold mines of Chili and Peru. Gold, too, is much more liable
to be smuggled than even silver; not only on account of the superior value
of the metal in proportion to its bulk, but on account of the peculiar way
in which nature produces it. Silver is very seldom found virgin, but, like
most other metals, is generally mineralized with some other body, from
which it is impossible to separate it in such quantities as will pay for
the expense, but by a very laborious and tedious operation, which cannot
well be carried on but in work-houses erected for the purpose, and,
therefore, exposed to the inspection of the king’s officers. Gold, on the
contrary, is almost always found virgin. It is sometimes found in pieces
of some bulk; and, even when mixed, in small and almost insensible
particles, with sand, earth, and other extraneous bodies, it can be
separated from them by a very short and simple operation, which can be
carried on in any private house by any body who is possessed of a small
quantity of mercury.
Public-domain text, read in full here on John Shaqi.
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