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
Particular acts of parliament, however, still attempt sometimes to
regulate wages in particular trades, and in particular places. Thus the
8th of George III. prohibits, under heavy penalties, all master tailors
in London, and five miles round it, from giving, and their workmen from
accepting, more than two shillings and sevenpence halfpenny a-day,
except in the case of a general mourning. Whenever the legislature
attempts to regulate the differences between masters and their workmen,
its counsellors are always the masters. When the regulation, therefore,
is in favour of the workmen, it is always just and equitable; but it is
sometimes otherwise when in favour of the masters. Thus the law which
obliges the masters in several different trades to pay their workmen in
money, and not in goods, is quite just and equitable. It imposes no real
hardship upon the masters. It only obliges them to pay that value in
money, which they pretended to pay, but did not always really pay, in
goods. This law is in favour of the workmen; but the 8th of George III.
is in favour of the masters. When masters combine together, in order to
reduce the wages of their workmen, they commonly enter into a private
bond or agreement, not to give more than a certain wage, under a certain
penalty. Were the workmen to enter into a contrary combination of the
same kind, not to accept of a certain wage, under a certain penalty, the
law would punish them very severely, and, if it dealt impartially, it
would treat the masters in the same manner. But the 8th of George III.
enforces by law that very regulation which masters sometimes attempt to
establish by such combinations. The complaint of the workmen, that it
puts the ablest and most industrious upon the same footing with an
ordinary workman, seems perfectly well founded.
In ancient times, too, it was usual to attempt to regulate the profits
of merchants and other dealers, by regulating the price of provisions
and other goods. The assize of bread is, so far as I know, the only
remnant of this ancient usage. Where there is an exclusive corporation,
it may, perhaps, he proper to regulate the price of the first necessary
of life; but, where there is none, the competition will regulate it much
better than any assize. The method of fixing the assize of bread,
established by the 81st of George II. could not be put in practice in
Scotland, on account of a defect in the law, its execution depending
upon the office of clerk of the market, which does not exist there. This
defect was not remedied till the third of George III. The want of an
assize occasioned no sensible inconveniency; and the establishment of
one in the few places where it has yet taken place has produced no
sensible advantage. In the greater part of the towns in Scotland,
however, there is an incorporation of bakers, who claim exclusive
privileges, though they are not very strictly guarded.
Public-domain text, read in full here on John Shaqi.
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