An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
Apothecaries' profit is become a bye-word, denoting something uncommonly
extravagant. This great apparent profit, however, is frequently no more
than the reasonable wages of labour. The skill of an apothecary is a
much nicer and more delicate matter than that of any artificer whatever;
and the trust which is reposed in him is of much greater importance. He
is the physician of the poor in all cases, and of the rich when the
distress or danger is not very great. His reward, therefore, ought to
be suitable to his skill and his trust; and it arises generally from the
price at which he sells his drugs. But the whole drugs which the best
employed apothecary in a large market-town, will sell in a year, may not
perhaps cost him above thirty or forty pounds. Though he should sell
them, therefore, for three or four hundred, or at a thousand per cent,
profit, this may frequently be no more than the reasonable wages of his
labour, charged, in the only way in which he can charge them, upon the
price of his drugs. The greater part of the apparent profit is real
wages disguised in the garb of profit.
In a small sea-port town, a little grocer will make forty or fifty per
cent. upon a stock of a single hundred pounds, while a considerable
wholesale merchant in the same place will scarce make eight or ten per
cent. upon a stock of ten thousand. The trade of the grocer may be
necessary for the conveniency of the inhabitants, and the narrowness of
the market may not admit the employment of a larger capital in the
business. The man, however, must not only live by his trade, but live by
it suitably to the qualifications which it requires. Besides possessing
a little capital, he must be able to read, write, and account, and must
be a tolerable judge, too, of perhaps fifty or sixty different sorts of
goods, their prices, qualities, and the markets where they are to be had
cheapest. He must have all the knowledge, in short, that is necessary
for a great merchant, which nothing hinders him from becoming but the
want of a sufficient capital. Thirty or forty pounds a-year cannot be
considered as too great a recompence for the labour of a person so
accomplished. Deduct this from the seemingly great profits of his
capital, and little more will remain, perhaps, than the ordinary profits
of stock. The greater part of the apparent profit is, in this case too,
real wages.
Public-domain text, read in full here on John Shaqi.
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