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
It is otherwise in estates above ground. The value, both of their
produce and of their rent, is in proportion to their absolute, and not
to their relative fertility. The land which produces certain quantity of
food, clothes, and lodging, can always feed, clothe, and lodge, a
certain number of people; and whatever may be the proportion of the
landlord, it will always give him a proportionable command of the labour
of those people, and of the commodities with which that labour can
supply him. The value of the most barren land is not diminished by the
neighbourhood of the most fertile. On the contrary, it is generally
increased by it. The great number of people maintained by the fertile
lands afford a market to many parts of the produce of the barren, which
they could never have found among those whom their own produce could
maintain.
Whatever increases the fertility of land in producing food, increases
not only the value of the lands upon which the improvement is bestowed,
but contributes likewise to increase that or many other lands, by
creating a new demand for their produce. That abundance of food, of
which, in consequence of the improvement of land, many people have the
disposal beyond what they themselves can consume, is the great cause of
the demand, both for the precious metals and the precious stones, as
well as for every other conveniency and ornament of dress, lodging,
household furniture, and equipage. Food not only constitutes the
principal part of the riches of the world, but it is the abundance of
food which gives the principal part of their value to many other sorts
of riches. The poor inhabitants of Cuba and St. Domingo, when they were
first discovered by the Spaniards, used to wear little bits of gold as
ornaments in their hair and other parts of their dress. They seemed to
value them as we would do any little pebbles of somewhat more than
ordinary beauty, and to consider them as just worth the picking up, but
not worth the refusing to any body who asked them. They gave them to
their new guests at the first request, without seeming to think that
they had made them any very valuable present. They were astonished to
observe the rage of the Spaniards to obtain them; and had no notion that
there could anywhere be a country in which many people had the disposal
of so great a superfluity of food; so scanty always among themselves,
that, for a very small quantity of those glittering baubles, they would
willingly give as much as might maintain a whole family for many years.
Could they have been made to understand this, the passion of the
Spaniards would not have surprised them.
PART III.--_Of the variations in the Proportion between the respective
Values of that sort of Produce which always affords Rent, and of that
which sometimes does, and sometimes does not, afford Rent._
Public-domain text, read in full here on John Shaqi.
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