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
The rent of land not only varies with its fertility, whatever be its
produce, but with its situation, whatever be its fertility. Land in the
neighbourhood of a town gives a greater rent than land equally fertile
in a distant part of the country. Though it may cost no more labour to
cultivate the one than the other, it must always cost more to bring the
produce of the distant land to market. A greater quantity of labour,
therefore, must be maintained out of it; and the surplus, from which are
drawn both the profit of the farmer and the rent of the landlord, must
be diminished. But in remote parts of the country, the rate of profit,
as has already been shewn, is generally higher than in the neighbourhood
of a large town. A smaller proportion of this diminished surplus,
therefore, must belong to the landlord.
Good roads, canals, and navigable rivers, by diminishing the expense of
carriage, put the remote parts of the country more nearly upon a level
with those in the neighbourhood of the town. They are upon that account
the greatest of all improvements. They encourage the cultivation of the
remote, which must always be the most extensive circle of the country.
They are advantageous to the town by breaking down the monopoly of the
country in its neighbourhood. They are advantageous even to that part of
the country. Though they introduce some rival commodities into the old
market, they open many new markets to its produce. Monopoly, besides, is
a great enemy to good management, which can never be universally
established, but in consequence of that free and universal competition
which forces every body to have recourse to it for the sake of
self-defence. It is not more than fifty years ago, that some of the
counties in the neighbourhood of London petitioned the parliament
against the extension of the turnpike roads into the remoter counties.
Those remoter counties, they pretended, from the cheapness of labour,
would be able to sell their grass and corn cheaper in the London market
than themselves, and would thereby reduce their rents, and ruin their
cultivation. Their rents, however, have risen, and their cultivation has
been improved since that time.
A corn field of moderate fertility produces a much greater quantity of
food for man, than the best pasture of equal extent. Though its
cultivation requires much more labour, yet the surplus which remains
after replacing the seed and maintaining all that labour, is likewise
much greater. If a pound of butcher's meat, therefore, was never
supposed to be worth more than a pound of bread, this greater surplus
would everywhere be of greater value and constitute a greater fund, both
for the profit of the farmer and the rent of the landlord. It seems to
have done so universally in the rude beginnings of agriculture.
Public-domain text, read in full here on John Shaqi.
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