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
But though the low money price, either of goods in general, or of corn in
particular, be no proof of the poverty or barbarism of the times, the low
money price of some particular sorts of goods, such as cattle, poultry,
game of all kinds, etc. in proportion to that of corn, is a most decisive
one. It clearly demonstrates, first, their great abundance in proportion
to that of corn, and, consequently, the great extent of the land which
they occupied in proportion to what was occupied by corn; and, secondly,
the low value of this land in proportion to that of corn land, and,
consequently, the uncultivated and unimproved state of the far greater
part of the lands of the country. It clearly demonstrates, that the stock
and population of the country did not bear the same proportion to the
extent of its territory, which they commonly do in civilized countries;
and that society was at that time, and in that country, but in its
infancy. From the high or low money price, either of goods in general, or
of corn in particular, we can infer only, that the mines, which at that
time happened to supply the commercial world with gold and silver, were
fertile or barren, not that the country was rich or poor. But from the
high or low money price of some sorts of goods in proportion to that of
others, we can infer, with a degree of probability that approaches almost
to certainty, that it was rich or poor, that the greater part of its lands
were improved or unimproved, and that it was either in a more or less
barbarous state, or in a more or less civilized one.
Any rise in the money price of goods which proceeded altogether from the
degradation of the value of silver, would affect all sorts of goods
equally, and raise their price universally, a third, or a fourth, or a
fifth part higher, according as silver happened to lose a third, or a
fourth, or a fifth part of its former value. But the rise in the price of
provisions, which has been the subject of so much reasoning and
conversation, does not affect all sorts of provisions equally. Taking the
course of the present century at an average, the price of corn, it is
acknowledged, even by those who account for this rise by the degradation
of the value of silver, has risen much less than that of some other sorts
of provisions. The rise in the price of those other sorts of provisions,
therefore, cannot be owing altogether to the degradation of the value of
silver. Some other causes must be taken into the account; and those which
have been above assigned, will, perhaps, without having recourse to the
supposed degradation of the value of silver, sufficiently explain this
rise in those particular sorts of provisions, of which the price has
actually risen in proportion to that of corn.
Public-domain text, read in full here on John Shaqi.
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