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
As the sovereign, however, derives a considerable part of his revenue
from the produce of silver mines, the law in Peru gives every possible
encouragement to the discovery and working of new ones. Whoever
discovers a new mine, is entitled to measure off two hundred and
forty-six feet in length, according to what he supposes to be the
direction of the vein, and half as much in breadth. He becomes
proprietor of this portion of the mine, and can work it without paying
any acknowledgment to the landlord. The interest of the duke of Cornwall
has given occasion to a regulation nearly of the same kind in that
ancient dutchy. In waste and uninclosed lands, any person who discovers
a tin mine may mark out its limits to a certain extent, which is called
bounding a mine. The bounder becomes the real proprietor of the mine,
and may either work it himself, or give it in lease to another, without
the consent of the owner of the land, to whom, however, a very small
acknowledgment must be paid upon working it. In both regulations, the
sacred rights of private property are sacrificed to the supposed
interests of public revenue.
The same encouragement is given in Peru to the discovery and working of
new gold mines; and in gold the king's tax amounts only to a twentieth
part of the standard rental. It was once a fifth, and afterwards a
tenth, as in silver; but it was found that the work could not bear even
the lowest of these two taxes. If it is rare, however, say the same
authors, Frezier and Ulloa, to find a person who has made his fortune by
a silver, it is still much rarer to find one who has done so by a gold
mine. This twentieth part seems to be the whole rent which is paid by
the greater part of the gold mines of Chili and Peru. Gold, too, is much
more liable to be smuggled than even silver; not only on account of the
superior value of the metal in proportion to its bulk, but on account of
the peculiar way in which nature produces it. Silver is very seldom
found virgin, but, like most other metals, is generally mineralized with
some other body, from which it is impossible to separate it in such
quantities as will pay for the expense, but by a very laborious and
tedious operation, which cannot well be carried on but in work-houses
erected for the purpose, and, therefore, exposed to the inspection of
the king's officers. Gold, on the contrary, is almost always found
virgin. It is sometimes found in pieces of some bulk; and, even when
mixed, in small and almost insensible particles, with sand, earth, and
other extraneous bodies, it can be separated from them by a very short
and simple operation, which can be carried on in any private house by
any body who is possessed of a small quantity of mercury. If the king's
tax, therefore, is but ill paid upon silver, it is likely to be much
worse paid upon gold; and rent must make a much smaller part of the
price of gold than that of silver.
Public-domain text, read in full here on John Shaqi.
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