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 coarse manufacture probably was, in these ancient times, carried on
in England in the same manner as it always has been in countries where
arts and manufactures are in their infancy. It was probably a household
manufacture, in which every different part of the work was occasionally
performed by all the different members of almost every private family,
but so as to be their work only when they had nothing else to do, and
not to be the principal business from which any of them derived the
greater part of their subsistence. The work which is performed in this
manner, it has already been observed, comes always much cheaper to
market than that which is the principal or sole fund of the workman's
subsistence. The fine manufacture, on the other hand, was not, in those
times, carried on in England, but in the rich and commercial country of
Flanders; and it was probably conducted then, in the same manner as now,
by people who derived the whole, or the principal part of their
subsistence from it. It was, besides, a foreign manufacture, and must
have paid some duty, the ancient custom of tonnage and poundage at
least, to the king. This duty, indeed, would not probably be very great.
It was not then the policy of Europe to restrain, by high duties, the
importation of foreign manufactures, but rather to encourage it, in
order that merchants might be enabled to supply, at as easy a rate as
possible, the great men with the conveniencies and luxuries which they
wanted, and which the industry of their own country could not afford
them.
The consideration of these circumstances may, perhaps, in some measure
explain to us why, in those ancient times, the real price of the coarse
manufacture was, in proportion to that of the fine, so much lower than
in the present times.
_Conclusion of the Chapter._
I shall conclude this very long chapter with observing, that every
improvement in the circumstances of the society tends, either directly
or indirectly, to raise the real rent of land, to increase the real
wealth of the landlord, his power of purchasing the labour, or the
produce of the labour of other people.
The extension of improvement and cultivations tends to raise it
directly. The landlord's share of the produce necessarily increases with
the increase of the produce.
That rise in the real price of these parts of the rude produce of land,
which is first the effect of the extended improvement and cultivation,
and afterwards the cause of their being still further extended, the rise
in the price of cattle, for example, tends, too, to raise the rent of
land directly, and in a still greater proportion. The real value of the
landlord's share, his real command of the labour of other people, not
only rises with the real value of the produce, but the proportion of his
share to the whole produce rises with it.
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