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
_First Sort._--The first sort of rude produce, of which the price rises
in the progress of improvement, is that which it is scarce in the power
of human industry to multiply at all. It consists in those things which
nature produces only in certain quantities, and which being of a very
perishable nature, it is impossible to accumulate together the produce
of many different seasons. Such are the greater part of rare and
singular birds and fishes, many different sorts of game, almost all
wild-fowl, all birds of passage in particular, as well as many other
things. When wealth, and the luxury which accompanies it, increase, the
demand for these is likely to increase with them, and no effort of human
industry may be able to increase the supply much beyond what it was
before this increase of the demand. The quantity of such commodities,
therefore, remaining the same, or nearly the same, while the competition
to purchase them is continually increasing, their price may rise to any
degree of extravagance, and seems not to be limited by any certain
boundary. If woodcocks should become so fashionable as to sell for
twenty guineas a-piece, no effort of human industry could increase the
number of those brought to market, much beyond what it is at present.
The high price paid by the Romans, in the time of their greatest
grandeur, for rare birds and fishes, may in this manner easily be
accounted for. These prices were not the effects of the low value of
silver in those times, but of the high value of such rarities and
curiosities as human industry could not multiply at pleasure. The real
value of silver was higher at Rome, for some time before, and after the
fall of the republic, than it is through the greater part of Europe at
present. Three sestertii equal to about sixpence sterling, was the price
which the republic paid for the modius or peck of the tithe wheat of
Sicily. This price, however, was probably below the average market
price, the obligation to deliver their wheat at this rate being
considered as a tax upon the Sicilian farmers. When the Romans,
therefore, had occasion to order more corn than the tithe of wheat
amounted to, they were bound by capitulation to pay for the surplus at
the rate of four sestertii, or eightpence sterling the peck; and this
had probably been reckoned the moderate and reasonable, that is, the
ordinary or average contract price of those times; it is equal to about
one-and-twenty shillings the quarter. Eight-and-twenty shillings the
quarter was, before the late years of scarcity, the ordinary contract
price of English wheat, which in quality is inferior to the Sicilian,
and generally sells for a lower price in the European market. The value
of silver, therefore, in those ancient times, must have been to its
value in the present, as three to four inversely; that is, three ounces
of silver would then have purchased the same quantity of labour and
commodities which four ounces will do at present. When we read in Pliny,
Public-domain text, read in full here on John Shaqi.
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