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
Three sestertii equal to about sixpence sterling, was the price
which the republic paid for the modius or peck of the tithe wheat of
Sicily. This price, however, was probably below the average market price,
the obligation to deliver their wheat at this rate being considered as a
tax upon the Sicilian farmers. When the Romans, therefore, had occasion to
order more corn than the tithe of wheat amounted to, they were bound by
capitulation to pay for the surplus at the rate of four sestertii, or
eightpence sterling the peck; and this had probably been reckoned the
moderate and reasonable, that is, the ordinary or average contract price
of those times; it is equal to about one-and-twenty shillings the quarter.
Eight-and-twenty shillings the quarter was, before the late years of
scarcity, the ordinary contract price of English wheat, which in quality
is inferior to the Sicilian, and generally sells for a lower price in the
European market. The value of silver, therefore, in those ancient times,
must have been to its value in the present, as three to four inversely;
that is, three ounces of silver would then have purchased the same
quantity of labour and commodities which four ounces will do at present.
When we read in Pliny, therefore, that Seius {Lib. X, c. 29.} bought a
white nightingale, as a present for the empress Agrippina, at the price of
six thousand sestertii, equal to about fifty pounds of our present money;
and that Asinius Celer {Lib. IX, c. 17.} purchased a surmullet at the
price of eight thousand sestertii, equal to about sixty-six pounds
thirteen shillings and fourpence of our present money; the extravagance of
those prices, how much soever it may surprise us, is apt, notwithstanding,
to appear to us about one third less than it really was. Their real price,
the quantity of labour and subsistence which was given away for them, was
about one-third more than their nominal price is apt to express to us in
the present times. Seius gave for the nightingale the command of a
quantity of labour and subsistence, equal to what £ 66:13: 4d. would
purchase in the present times; and Asinius Celer gave for a surmullet the
command of a quantity equal to what £ 88:17: 9d. would purchase. What
occasioned the extravagance of those high prices was, not so much the
abundance of silver, as the abundance of labour and subsistence, of which
those Romans had the disposal, beyond what was necessary for their own
use. The quantity of silver, of which they had the disposal, was a good
deal less than what the command of the same quantity of labour and
subsistence would have procured to them in the present times.
Public-domain text, read in full here on John Shaqi.
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