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
Second sort.—The second sort of rude produce, of which the price
rises in the progress of improvement, is that which human industry can
multiply in proportion to the demand. It consists in those useful plants
and animals, which, in uncultivated countries, nature produces with such
profuse abundance, that they are of little or no value, and which, as
cultivation advances, are therefore forced to give place to some more
profitable produce. During a long period in the progress of improvement,
the quantity of these is continually diminishing, while, at the same time,
the demand for them is continually increasing. Their real value,
therefore, the real quantity of labour which they will purchase or
command, gradually rises, till at last it gets so high as to render them
as profitable a produce as any thing else which human industry can raise
upon the most fertile and best cultivated land. When it has got so high,
it cannot well go higher. If it did, more land and more industry would
soon be employed to increase their quantity.
When the price of cattle, for example, rises so high, that it is as
profitable to cultivate land in order to raise food for them as in order
to raise food for man, it cannot well go higher. If it did, more corn land
would soon be turned into pasture. The extension of tillage, by
diminishing the quantity of wild pasture, diminishes the quantity of
butcher’s meat, which the country naturally produces without labour or
cultivation; and, by increasing the number of those who have either corn,
or, what comes to the same thing, the price of corn, to give in exchange
for it, increases the demand. The price of butcher’s meat, therefore, and,
consequently, of cattle, must gradually rise, till it gets so high, that
it becomes as profitable to employ the most fertile and best cultivated
lands in raising food for them as in raising corn. But it must always be
late in the progress of improvement before tillage can be so far extended
as to raise the price of cattle to this height; and, till it has got to
this height, if the country is advancing at all, their price must be
continually rising. There are, perhaps, some parts of Europe in which the
price of cattle has not yet got to this height. It had not got to this
height in any part of Scotland before the Union. Had the Scotch cattle
been always confined to the market of Scotland, in a country in which the
quantity of land, which can be applied to no other purpose but the feeding
of cattle, is so great in proportion to what can be applied to other
purposes, it is scarce possible, perhaps, that their price could ever have
risen so high as to render it profitable to cultivate land for the sake of
feeding them. In England, the price of cattle, it has already been
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