orders in the society is, like that of menial or to some other person, as the rent of his servants, unproductive of any value, and does land. Thus, of the produce of land, one part not fix or realize itself in any permanent sub-replaces the capital of the farmer; the other ject, or vendible commodity, which endures pays his profit and the rent of the landlord; after that labour is past, and for which an and thus constitutes a revenue both to the equal quantity of labour could afterwards be owner of this capital, as the profits of his stock. procured. The sovereign, for example, with and to some other person as the rent of his all the officers both of justice and war who land. Of the produce of a great manufactoserve under him, the whole army and navy, ry, in the same manner, one part, and that alare unproductive labourers. They are the ways the largest, replaces the capital of the unservants of the public, and are maintained by dertaker of the work; the other pays his proa part of the annual produce of the industry fit, and thus constitutes a revenue to the ownof other people. Their service, how honour-er of this capital. able, how useful, or how necessary soever, That part of the annual produce of the land produces nothing for which ar equal quantity and labour of any country which replaces a of service can afterwards be procured. The capital, never is immediately employed to main. protection, security, and defence, of the com- tain any but productive hands. It pays the nonwealth, the effect of their labour this year, wages of productive labour only. That which will not purchase its protection, security, and is immediately destined for constituting a redefence, for the year to come. In the same venue, either as profit or as rent, may mainclass must be ranked, some both of the grav-tain indifferently either productive or unproest and most important, and some of the most ductive hands.

frivolous professions; churchmen, lawyers, Whatever part of his stock a man employs physicians, men of letters of all kinds; players, as a capital, he always expects it to be re buffoons, musicians, opera-singers, opera- placed to him with a profit. He employs it, dancers, &c. The labour of the meanest of therefore, in maintaining productive hands these has a certain value, regulated by the only; and after having served in the function very same principles which regulate that of of a capital to him, it constitutes a revenue to every other sort of labour; and that of the them. Whenever he employs any part of it noblest and most useful produces nothing in maintaining unproductive hands of any which could afterwards purchase or procure kind, that part is from that moment withdrawn an equal quantity of labour. Like the de- from his capital, and placed in his stock reclamation of the actor, the harangue of the served for immediate consumption. orator, or the tune of the musician, the work of all of them perishes in the very instant of its production.

Unproductive labourers, and those who do not labour at all, are all maintained by reve nue; either, first, by that part of the annual Both productive and unproductive labour- produce which is originally destined for coners, and those who do not labour at all, are stituting a revenue to some particular perall equally maintained by the annual produce sons, either as the rent of land, or as the proof the land and labour of the country. This fits of stock; or, secondly, by that part which, produce, how great soever, can never be in- though originally destined for replacing a ca finite, but must have certain limits. Accord-pital, and for maintaining productive labour ing, therefore, as a smaller or greater propor-ers only, yet when it comes into their hands, tion of it is in any one year employed in main- whatever part of it is over and above their necaining unproductive hands, the more in the cessary subsistence, may be employed in maiaone case, and the less in the other, will re-taining indifferently either productive or unmain for the productive, and the next year's productive hands. Thus, not only the greit produce will be greater or smaller accordingly; the whole annual produce, if we except the spontaneous productions of the earth, being the effect of productive labour.

landlord or the rich merchant, but even the common workman, if his wages are considerable, may maintain a menial servant; or he may sometimes go to a play or a puppet-show, Though the whole annual produce of the and so contribute his share towards maintainland and labour of every country is no doubt ing one set of unproductive labourers; or he ultimately destined for supplying the con- may pay some taxes, and thus help to mainsumption of its inhabitants, and for procuring tain another set, more honourable and useful, a revenue to them; yet when it first comes indeed, but equally unproductive. No part either from the ground, or from the hands of of the annual produce, however, which had the productive labourers, it naturally divides been originally destined to replace a capital, itself into two parts. One of them, and fre- is ever directed towards maintaining unproquently the largest, is, in the first place, des-ductive hands, till after it has put into motion tined for replacing a capital, or for renewing its full complement of productive labour, or the provisions, materials, and finished work, all that it could put into motion in the way in which had been withdrawn from a capital; the which it was employed. The workman must other for constituting a revenue either to the have earned his wages by work done, before owner of this capital, as the profit of his stock, he can employ any part of them in this man

ner. one.

That part, too, is generally but a small who can dispose of the labour and service of It is his spare revenue only, of which all those whom it maintains. In the present productive labourers have seldom a great deal. state of Europe, the share of the landlord selThey generally have some, however; and in dom exceeds a third, sometimes not a fourth the payment of taxes, the greatness of their part of the whole produce of the land. The number may compensate, in some measure, rent of land, however, in all the improved the smallness of their contribution. The rent parts of the country, has been tripled and quaof land and the profits of stock are everywhere, drupled since those ancient times; and this therefore, the principal sources from which third or fourth part of the annual produce is, unproductive hands derive their subsistence. it seems, three or four times greater than the These are the two sorts of revenue of which whole had been before. In the progress of the owners have generally most to spare. improvement, rent, though it increases in proThey might both maintain indifferently, either portion to the extent, diminishes in proportion productive or unproductive hands. They to the produce of the land. seem, however, to have some predilection for the latter. The expense of a great lord feeds generally more idle than industrious people. The rich merchant, though with his capital he maintains industrious people only, yet by his expense, that is, by the employment of his revenue, he feeds commonly the very same sort as the great lord.

In the opulent countries of Europe, great capitals are at present employed in trade and manufactures. In the ancient state, the little trade that was stirring, and the few homely and coarse manufactures that were carried on, required but very small capitals. These, however, must have yielded very large profits. The rate of interest was nowhere less than ten The proportion, therefore, between the pro- per cent. and their profits must have been sufductive and unproductive hands, depends very ficient to afford this great interest. At premuch in every country upon the proportion sent, the rate of interest, in the improved parts between that part of the annual produce, of Europe, is nowhere higher than six per which, as soon as it comes either from the cent.; and in some of the most improved, it ground, or from the hands of the productive is so low as four, three, and two per cent. labourers, is destined for replacing a capital, Though that part of the revenue of the inhaand that which is destined for constituting a bitants which is derived from the profits of revenue, either as rent or as profit. This pro-stock, is always much greater in rich than in portion is very different in rich from what it poor countries, it is because the stock is much is in poor countries.

greater; in proportion to the stock, the profits are generally much less.

Thus, at present, in the opulent countries of Europe, a very large, frequently the largest, That part of the annual produce, therefore, portion of the produce of the land, is destined which, as soon as it comes either from the for replacing the capital of the rich and inde- ground, or from the hands of the productive pendent farmer; the other for paying his pro- labourers, is destined for replacing a capital, fits, and the rent of the landlord. But an- is not only much greater in rich than in poor ciently, during the prevalency of the feudal countries, but bears a much greater proporgovernment, a very small portion of the pro- tion to that which is immediately destined for duce was sufficient to replace the capital em- constituting a revenue either as rent or as proployed in cultivation. It consisted common- fit. The funds destined for the maintenance ly in a few wretched cattle, maintained alto- of productive labour are not only much greatgether by the spontaneous produce of unculti-er in the former than in the latter, but bear a vated land, and which might, therefore, be much greater proportion to those which, though considered as a part of that spontaneous pro- they may be employed to maintain either produce. It generally, too, belonged to the land-ductive or unproductive hands, have generally lord, and was by him advanced to the occu- 2 predilection for the latter. piers of the land. All the rest of the produce The proportion between those different properly belonged to him too, either as rent funds necessarily determines in every country for his land, or as profit upon this paltry capi- the general character of the inhabitants as to tal. The occupiers of land were generally industry or idleness. We are more industri. bondmen, whose persons and effects were ous than our forefathers, because, in the preequally his property. Those who were not sent times, the funds destined for the mainte. bondmen were tenants at will; and though nance of industry are much greater in proporthe rent which they paid was often nominally tion to those which are likely to be employed little more than a quit-rent, it really amount-in the maintenance of idleness, than they were ed to the whole produce of the land. Their two or three centuries ago. Our ancestors lord could at all times command their labour were idle for want of a sufficient encouragein peace and their service in war. Though ment to industry. It is better, says the prothey lived at a distance from his house, they verb, to play for nothing, than to work for nowere equally dependent upon him as his re-thing. In mercantile and manufacturing tainers who lived in it. But the whole pro- towns, where the inferior ranks of people are dure of the land undoubtedly belongs to him, chiefly maintained by the employment of ca

pital, they are in general industrious, sober, | of revenue, corrupts, it is probable, the indusand thriving; as in many English, and in try of those who ought to be maintained by inost Dutch towns. In those towns which are the employment of capital, and renders it less principally supported by the constan: or occa- advantageous to employ a capital there than in sional residence of a court, and in which the other places. There was little trade or indusinferior ranks of people are chiefly maintained try in Edinburgh before the Union. When by the spending of revenue, they are in gene- the Scotch parliament was no longer to be asral idle, dissolute, and poor; as at Rome, sembled in it, when it ceased to be the necesVersailles, Compeigne, and Fontainbleau. If sary residence of the principal nobility and you except Rouen and Bourdeaux, there is gentry of Scotland, it became a city of some little trade or industry in any of the parlia- trade and industry. It still continues, how. ment towns of France; and the inferior ranks ever, to be the residence of the principal of people, being chiefly maintained by the ex- courts of justice in Scotland, of the boards of pense of the members of the courts of justice, customs and excise, &c. A considerable reand of those who come to plead before them, venue, therefore, still continues to be spent in are in general idle and poor. The great it. In trade and industry, it is much inferior trade of Rouen and Bourdeaux seems to be to Glasgow, of which the inhabitants are altogether the effect of their situation. Rouen chiefly maintained by the employment of cais necessarily the entrepot of almost all the pital. The inhabitants of a large village, it goods which are brought either from foreign has sometimes been observed, after having countries, or from the maritime provinces of made considerable progress in manufactures, France, for the consumption of the great city have become idle and poor, in consequence of of Paris. Bourdeaux is, in the same manner, a great lord's having taken up his residence in the entrepot of the wines which grow upon the their neighbourhood. banks of the Garronne, and of he rivers which run into it, one of the richest wine countries in the world, and which seems to produce the wine fittest for exportation, or best suited to the taste of foreign nations. Such advantageous situations necessarily attract a great capital by the great employment which they afford it; and the employment of this capital is the cause of the industry of those two cities. In the other parliament towns of France, very littie more capital seems to be employed than what is necessary for supply-venue of all its inhabitants. ing their own consumption; that is, little Capitals are increased by parsimony, and more than the smallest capital which can be employed in them. The same thing may be Whatever a person saves from his revenue he said of Paris, Madrid, and Vienna. Of those adds to his capital, and either employs it him three cities, Paris is by far the most industri- self in maintaining an additional number of ous, but Paris itself is the principal market of productive hands, or enables some other perall the manufactures established at Paris, and son to do so, by lending it to him for an inte its own consumption is the principal object of rest, that is, for a share of the profits. As the all the trade which it carries on. London, capital of an individual can be increased only Lisbon, and Copenhagen, are, perhaps, the by what he saves from his annual revenue or only three cities in Europe, which are both the constant residence of a court, and can at the same time be considered as trading cities, or as cities which trade not only for their own consumption, but for that of other cities and Parsimony, and not industry, is the immecountries. The situation of all the three is diate cause of the increase of capital. Indusextremely advantageous, and naturally fits try, indeed, provides the subject which parsithem to be the entrepots of a great part of the mony accumulates; but whatever industry goods destined for the consumption of distant might acquire, if parsimony did not save and places. In a city where a great revenue is store up, the capital would never be the spent, to employ with advantage a capital for greater.

The proportion between capital and reve nue, therefore, seems everywhere to regulate the proportion between industry and idleness Wherever capital predominates, industry prevails; wherever revenue, idleness. Every in-J crease or diminution of capital, therefore, naturally tends to increase or diminish the real quantity of industry, the number of produc tive hands, and consequently the exchangeable value of the annual produce of the land and labour of the country, the real wealth and re

diminished by prodigality and misconduct.

his annual gains, so the capital of a society, which is the same with that of all the individuals who compose it, can be increased only in the same manner.

any other purpose than for supplying the con- Parsimony, by increasing the fund which is sumption of that city, is probably more diffi-destined for the maintenance of productive cult than in one in which the inferior ranks of hands, tends to increase the number of those people have no other maintenance but what hands whose labour adds to the value of the they derive from the employment of such a subject upon which it is bestowed. It tends, capital. The idleness of the greater part of therefore, to increase the exchangeable value the people who are maintained by the expense of the annual produce of the land and labour

of every prodigal, by feeding the idle with the bread of the industrious, would tend not only to beggar himself, but to impoverish his country.

Though the expense of the prodigal should be altogether in home made, and no part of it in foreign commodities, its effect upon the productive funds of the society would still be the same. Every year there would still be a certain quantity of food and clothing, which ought to have maintained productive, employ. ed in maintaining unproductive hands. ry year, therefore, there would still be some diminution in what would otherwise have been the value of the annual produce of the land and labour of the country.

Eve

of the country. It puts Into motion an addi- | sated by the frugality of others, the conduct tional quantity of industry, which gives an additional value to the annual produce. What is annually saved, is as regularly consumed as what is annually spent, and nearly in the same time too: but it is consumed by a different set of people. That portion of his revenue which a rich man annually spends, is, in most cases, consumed by idle guests and menial servants, who leave nothing behind them in return for their consumption. That portion which he annually saves, as, for the sake of the profit, it is immediately employed as a capital, is consumed in the same manner, and nearly in the same time too, but by a different set of people: by labourers, manufacturers, and artificers, who re-produce, with a profit, the value of their annual consumption. His revenue, we shall suppose, is paid him in money. Had he spent the whole, the food, clothing, and lodging, which the whole could have purchased, would have been distributed among the former set of people. By saving a part of it, as that part is, for the sake of the profit, immediately employed as a capital, either by himself or by some other person, the food, clothing, and lodging, which may be purchased with it, are necessarily reserved for the latter. The consumption is the same, but the consumers are different.

By what a frugal man annually saves, he not only affords maintenance to an additional number of productive hands, for that of the ensuing year, but like the founder of a public work-house he establishes, as it were, a perpetual fund for the maintenance of an equal number in all times to come. The perpetual allotment and destination of this fund, indeed, is not always guarded by any positive law, by any trust-right or deed of mortmain. It is always guarded, however, by a very powerful principle, the plain and evident interest of every individual to whom any share of it shall ever belong. No part of it can ever afterwards be employed to maintain any but pro ductive hands, without an evident loss to the person who thus perverts it from its proper destination.

This expense, it may be said, indeed, not being in foreign goods, and not occasioning any exportation of gold and silver, the same quantity of money would remain in the country as before. But if the quantity of food and clothing which were thus consumed by unproductive, had been distributed among productive hands, they would have reproduced, together with a profit, the full value of their consumption. The same quantity of money would, in this case, equally have remained in the country, and there would, besides, have been a reproduction of an equal value of consumable goods. There would have been two values instead of one.

These

The same quantity of money, besides, cannot long remain in any country in which the value of the annual produce diminishes. The sole use of money is to circulate consumable goods. By means of it, provisions, materials, and finished work, are bought and sold, and distributed to their proper consumers. The quantity of money, therefore, which can be annually employed in any country, must be determined by the value of the consumable goods annually circulated within it. must consist, either in the immediate produce of the land and labour of the country itself, or in something which had been purchased with some part of that produce. Their value, therefore, must diminish as the value of that produce diminishes, and along with it the The prodigal perverts it in this manner: quantity of money which can be employed in By not confining his expense within his in- circulating them. But the money which, by come, he encroaches upon his capital. Like this annual diminution of produce, is annualhim who perverts the revenues of some piously thrown out of domestic circulation, will not foundation to profane purposes, he pays the be allowed to lie idle. The interest of whowages of idleness with those funds which the ever possesses it requires that it should be emfrugality of his forefathers had, as it were,ployed; but having no employment at home, consecrated to the maintenance of industry. it will, in spite of all laws and prohibitions, be By diminishing the funds destined for the em-sent abroad, and employed in purchasing conployment of productive labour, he necessarily sumable goods, which may be of some use at diminishes, so far as it depends upon him, the home. Its annual exportation will, in this quantity of that labour which adds a value to manner, continue for some time to add some the subject upon which it is bestowed, and, thing to the annual consumption of the counconsequently, the value of the annual produce try beyond the value of its own annual of the land and labour of the whole country, produce. What in the days of its prosperity the real wealth and revenue of its inhabitants. had been saved from that annual produce, and If the prodigality of some were not compen-lemployed in purchasing gold and silver, will

contribute, for some little time, to support its desire of bettering our condition; a desire consumption in adversity. The exportation of gold and silver is, in this case, not the cause, but the effect of its declension, and may even, for some little time, alleviate the misery of that declension.

which, though generally calm and dispassion. ate, comes with us from the womb, and never leaves us till we go into the grave. In the whole interval which separates those two moments, there is scarce, perhaps, a single inThe quantity of money, on the contrary, stance, in which any man is so perfectly and must in every country naturally increase as completely satisfied with his situation, as to be the value of the annual produce increases. without any wish of alteration or improveThe value of the consumable goods annually ment of any kind. An augmentation of forcirculated within the society being greater, tune is the means by which the greater part will require a greater quantity of money to cir- of men propose and wish to better their conculate them. A part of the increased produce, dition. It is the means the most vulgar and therefore, will naturally be employed in pur-the most obvious; and the most likely way of chasing, wherever it is to be had, the additional | augmenting their fortune, is to save and accuquantity of gold and silver necessary for cir- mulate some part of what they acquire, either culating the rest. The increase of those me- regularly and annually, or upon some extratals will, in this case, be the effect, not the ordinary occasion. Though the principle of cause, of the public prosperity. Gold and sil- expense, therefore, prevails in almost all men rer are purchased everywhere in the same upon some occasions, and in some men upon manner. The food, clothing, and lodging, the almost all occasions; yet in the greater part of revenue and maintenance, of all those whose men, taking the whole course of their life at labour or stock is employed in bringing them an average, the principle of frugality seems from the mine to the market, is the price paid not only to predominate, but to predominate for them in Peru as well as in England. The very greatly. country which has this price to pay, will never be long without the quantity of those metals which it has occasion for; and no country will ever long retain a quantity which it has no occasion for.

With regard to misconduct, the number of prudent and successful undertakings is everywhere much greater than that of injudicious and unsuccessful ones. After all our complaints of the frequency of bankruptcies, the Whatever, therefore, we may imagine the unhappy men who fall into this misfortune, real wealth and revenue of a country to con- make but a very small part of the whole numsist in, whether in the value of the annual pro- ber engaged in trade, and all other sorts of duce of its land and labour, as plain reason business; not much more, perhaps, than one seems to dictate, or in the quantity of the pre- in a thousand. Bankruptcy is, perhaps, the cious metals which circulate within it, as vulgar greatest and most humiliating calamity which prejudices suppose; in either view of the mat- can befal an innocent man, The greater part ter, every prodigal appears to be a public ene- of men, therefore, are sufficiently careful to my, and every frugal man a public benefac-avoid it. Some, indeed, do not avoid it; as some do not avoid the gallows.

tor.

The effects of misconduct are often the Great nations are never impoverished by same as those of prodigality. Every injudi- private, though they sometimes are by public cious and unsuccessful project in agriculture, prodigality and misconduct. The whole, or mines, fisheries, trade, or manufactures, tends almost the whole public revenue is, in most in the same manner to diminish the funds des- countries, employed in maintaining unproductined for the maintenance of productive labour. tive hands. Such are the people who compose In every such project, though the capital is a numerous and splendid court, a great eccleconsumed by productive hands only, yet as, siastical establishment, great fleets and armies, by the injudicious manner in which they are who in time of peace produce nothing, and in employed, they do not reproduce the full va- time of war acquire nothing which can com lue of their consumption, there must always pensate the expense of maintaining them, even be some diminution in what would otherwise while the war lasts. Such people, as they have been the productive funds of the society. themselves produce nothing, are all maintainIt can seldom happen, indeed, that the cir-ed by the produce of other men's labour. cumstances of a great nation can be much af- When multiplied, therefore, to an unnecessary fected either by the prodigality or misconduct number, they may in a particular year conof individuals; the profusion or imprudence sume so great a share of this produce, as not of some being always more than compensated to leave a sufficiency for maintaining the proby the frugality and good conduct of others. ductive labourers, who should reproduce it With regard to profusion, the principle next year. The next year's produce, therewhich prompts to expense is the passion for fore, will be less than that of the foregoing; present enjoyment; which, though sometimes and if the same disorder should continue, that violent and very difficult to be restrained, is in of the third year will be still less than that of general only momentary and occasional. But the second. Those unproductive hands who the principle which prompts to save, is the should be maintained by a part only of the