to this upon one condition only, that they in the same family. Among simple nations, should be secured in their possession for such on the contrary, they frequently do, without a term of years as might give them time to any regulations of law; for among nations of recover, with profit, whatever they should lay shephe. ds, such as the Tartars and Arabs, out in the further improvement of the land. the consumable nature of their property neThe expensive vanity of the landlord made cessarily renders all such regulations imposhim willing to accept of this condition; and sible. hence the origin of long leases.

A revolution of the greatest importance to Even a tenant at will, who pays the full the public happiness, was in this manner value of the land, is not altogether dependent brought about by two different orders of peoupon the landlord. The pecuniary advantages ple, who had not the least intention to serve which they receive from one another are mu- the public. To gratify the most childish vatual and equal, and such a tenant will expose nity was the sole motive of the great proprieneither his life nor his fortune in the service tors. The merchants and artificers, much less of the proprietor. But if he has a lease for ridiculous, acted merely from a view to their a long term of years, he is altogether inde- own interest, and in pursuit of their own pendent; and his landlord must not expect pedlar principle of turning a penny wherever from him even the most trifling service, be- a penny was to be got. Neither of them had yond what is either expressly stipulated in the either knowledge or foresight of that great lease, or imposed upon him by the common revolution which the folly of the one, and the and known law of the country. industry of the other, was gradually bringing about.

It was thus, that, through the greater part of Europe, the commerce and manufactures of cities, instead of being the effect, have been the cause and occasion of the improvement and cultivation of the country.

The tenants having in this manner become independent, and the retainers being dismissed, the great proprietors were no longer capable of interrupting the regular execution of justice, or of disturbing the peace of the country. Having sold their birth-right, not like Esau, for a mess of pottage in time of hunger This order, however, being contrary to the and necessity, but, in the wantonness of plen- natural course of things, is necessarily both ty, for trinkets and baubles, fitter to be the slow and uncertain. Compare the slow proplaythings of children than the serious pur-gress of those European countries of which suits of men, they became as insignificant as the wealth depends very much upon their any substantial burgher or tradesmen in a commerce and manufactures, with the rapid city. A regular government was established advances of our North American colonies, of in the country as well as in the city, nobody which the wealth is founded altogether in aghaving sufficient power to disturb its opera- riculture. Through the greater part of Eutions in the one, any more than in the other. rope, the number of inhabitants is not supIt does not, perhaps, relate to the present posed to double in less than five hundred subject, but I cannot help remarking it, that years. In several of our North American covery old families, such as have possessed some lonies, it is found to double in twenty or fiveconsiderable estate from father to son for and-twenty years. In Europe, the law of many successive generations, are very rare in primogeniture, and perpetuities of different commercial countries. In countries which kinds, prevent the division of great estates, have little commerce, on the contrary, such as and thereby hinder the multiplication of small Wales, or the Highlands of Scotland, they are proprietors. A small proprietor, however, very common. The Arabian histories seem who knows every part of his little territory, to be all full of genealogies; and there is a views it with all the affection which property, history written by a Tartar Khan, which has especially small property, naturally inspires, been translated into several European lan- and who upon that account takes pleasure, guages, and which contains scarce any thing not only in cultivating, but in adorning it, is else; a proof that ancient families are very generally of all improvers the most industricommon among those nations. In countries ous, the most intelligent, and the most sucwhere a rich man can spend his revenue in no cessful. The same regulations, besides, keep other way than by maintaining as many peo- so much land out of the market, that there ple as it can maintain, he is apt to run out, are always more capitals to buy than there is and his benevolence, it seems, is seldom so land to sell, so that what is sold always sells violent as to attempt to maintain more than at a monopoly price. The rent never pays he can afford. But where he can spend the the interest of the purchase money, and is, begreatest revenue upon his own person, he fre- sides, burdened with repairs and other occaquently has no bounds to his expense, because sional charges, to which the interest of money he frequently has no bounds to his vanity, or is not liable. To purchase land, is, everyto his affection for his own person. In com- where in Europe, a most unprofitable employmercial countries, therefore, riches, in spite of the most violent regulations of law to prevent their dissipation, very seldom remain long

ment of a small capital. For the sake of the superior security, indeed, a man of moderate circumstances, when he retires from business,

will sometimes choose to lay out his little ca- during all this period. The cultivation and pital in land. A man of profession, too, improvement of the country has, no doubt, whose revenue is derived from another source, been gradually advancing too; but it seems to often loves to secure his savings in the same have followed slowly, and at a distance, the way. But a young man, who, instead of ap-more rapid progress of commerce and manuplying to trade or to some profession, should factures. The greater part of the country employ a capital of two or three thousand must probably have been cultivated before the pounds in the purchase and cultivation of a reign of Elizabeth; and a very great part of small piece of land, might indeed expect to it still remains uncultivated, and the cultivalive very happily and very independently, but tion of the far greater part much inferior to must bid adieu for ever to all hope of either what it might be. The law of England, howgreat fortune or great illustration, which, by ever, favours agriculture, not only indirectly, a different employment of his stock, he might by the protection of commerce, but by several have had the same chance of acquiring with direct encouragements. Except in times of other people. Such a person, too, though he scarcity, the exportation of corn is not only free, cannot aspire at being a proprietor, will often but encouraged by a bounty. In times of modisdain to be a farmer. The small quantity derate plenty, the importation of foreign corn is of land, therefore, which is brought to mar- loaded with duties that amount to a prohibi ket, and the high price of what is brought tion. The importation of live cattle, except thither, prevents a great number of capitals from Ireland, is prohibited at all times; and from being employed in its cultivation and it is but of late that it was permitted from improvement, which would otherwise have thence. Those who cultivate the land, theretaken that direction. In North America, on fore, have a monopoly against their countrythe contrary, fifty or sixty pounds is often men for the two greatest and most important found a sufficient stock to begin a plantation articles of land produce, bread and butcher's with. The purchase and improvement of un- meat. These encouragements, though at botcultivated land is there the most profitable em- tom, perhaps, as I shall endeavour to show ployment of the smallest as well as of the hereafter, altogether illusory, sufficiently degreatest capitals, and the most direct road to monstrate at least the good intention of the leall the fortune and illustration which can be gislature to favour agriculture. But what is acquired in that country. Such land, indeed, of much more importance than all of them, is in North America to be had almost for no- the yeomanry of England are rendered as sething, or at a price much below the value of cure, as independent, and as respectable, as the natural produce; a thing impossible in law can make them. No country, therefore, Europe, or indeed in any country where all in which the right of primogeniture takes lands have long been private property. If place, which pays tithes, and where perpetuilanded estates, however, were divided equally ties, though contrary to the spirit of the law, among all the children, upon the death of any are admitted in some cases, can give more enproprietor who left a numerous family, the couragement to agriculture than England. estate would generally be sold. So much land Such, however, notwithstanding, is the state would come to market, that it could no long-of its cultivation. What wou'd it have been, er sell at a monopoly price. The free rent of had the law given no direct encouragement to the land would go no nearer to pay the inte- agriculture besides what arises indirectly from rest of the purchase-money, and a small capital might be employed in purchasing land as profitable as in any other way.

the progress of commerce, and had left the yeomanry in the same condition as in most other countries of Europe? It is now more than two hundred years since the beginning of the reign of Elizabeth, a period as long as the course of human prosperity usually endures.

England, on account of the natural fertility of the soil, of the great extent of the sea-coast in proportion to that of the whole country, and of the many navigable rivers which run through it, and afford the conveniency of wa- France seems to have had a considerable ter carriage to some of the most inland parts share of foreign commerce, near a century of it, is perhaps as well fitted by nature as before England was distinguished as a comany large country in Europe to be the seat of mercial country. The marine of France was foreign commerce, of manufactures for distant considerable, according to the notions of the sale, and of all the improvements which these times, before the expedition of Charles VIII. can occasion. From the beginning of the to Naples. The cultivation and improvement reign of Elizabeth, too, the Enguish legisla- of France, however, is, upon the whole, infeture has been peculiarly attentive to the interior to that of England. The law of the rest of commerce and manufactures, and in country has never given the same direct enreality there is no country in Europe, Hol-couragement to agriculture. land itself not excepted, of which the law is, The foreign commerce of Spain and Portuupon the whole, more favourable to this sort gal to the other parts of Europe, though of industry. Commerce and manufactures chiefly carried on in foreign ships, is very conhave accordingly been continually advancing siderable. That to their colonies is carried

BOOK IV.

OF SYSTEMS OF POLITICAL ECONOMY.

INTRODUCTION.

of all other commodities by the quantity of money which they will exchange for. We POLITICAL economy, considered as a branch say of a rich man, that he is worth a great of the science of a statesman or legislator, pro- deal, and of a poor man, that he is worth very poses two distinct objects; first, to provide a little money. A frugal man, or a man eager plentiful revenue or subsistence for the peo- to be rich, is said to love money; and a careple, or, more properly, to enable them to pro-less, a generous, or a profuse man, is said to vide such a revenue or subsistence for them-be indifferent about it. To grow rich is to selves; and, secondly, to supply the state or get money; and wealth and money, in short, commonwealth with a revenue sufficient for are, in common language, considered as in the public services. It proposes to enrich every respect synonymous. both the people and the sovereign.

The different progress of opulence in different ages and nations, has given occasion to two different systems of political economy, with regard to enriching the people. The one may be called the system of commerce, the other that of agriculture. I shall endeavour to explain both as fully and distinctly as I can, and shall begin with the system of commerce. It is the modern system, and is best understood in our own country and in our own ti:nes.

CHAP. I.

A rich country, in the same manner as a rich man, is supposed to be a country abounding in money; and to heap up gold and silver in any country is supposed to be the readiest way to enrich it. For some time after the discovery of America, the first inquiry of the Spaniards, when they arrived upon any unknown coast, used to be, if there was any gold or silver to be found in the neighbourhood? By the information which they received, they judged whether it was worth while to make a settlement there, or if the country was worth the conquering. Plano Carpino, a monk sent ambassador from the king of France to one of the sons of the famous Gengis Khan, says, that the Tartars used frequently to ask him, if there was plenty of sheep and oxen in the kingdom of France? Their inquiry had the same object with that of the Spaniards. They

OF THE PRINCIPLE OF THE COMMERCIAL OR wanted to know if the country was rich enough

MERCANTILE SYSTEM.

THAT wealth consists in money, or in gold and silver, is a popular notion which naturally arises from the double function of money, as the instrument of commerce, and as the measure of value. In consequence of its being the instrument of commerce, when we have money we can more readily obtain whatever else we have occasion for, than by means of any other commodity. The great affair, we always find, is to get money. When that is obtained, there is no difficulty in making any subsequent purchase. In consequence of its being the measure of value, we estimate that

to be worth the conquering. Among the Tartars, as among all other nations of shepherds, who are generally ignorant of the use of money, cattle are the instruments of commerce and the measures of value. Wealth, therefore, according to them, consisted in cattle, as, according to the Spaniards, it consisted in gold and silver. Of the two, the Tartar notion, perhaps, was the nearest to the truth.

Mr Locke remarks a distinction between money and other moveable goods. All other moveable goods, he says, are of so consumable a nature, that the wealth which consists in them cannot be much depended on; and a nation which abounds in them one year may,

without any exportation, but merely by their quantity of those metals in the kingdom; that, own waste and extravagance, be in great want on the contrary, it might frequently increase of them the next. Money, on the contrary, is the quantity; because, if the consumption of a steady friend, which, though it may travel foreign goods was not thereby increased in the about from hand to hand, yet if it can be kept country, those goods might be re-exported to from going out of the country, is not very li- foreign countries, and being there sold for a able to be wasted and consumed. Gold and large profit, might bring back much more treasilver, therefore, are, according to him, the sure than was originally sent out to purchase most solid and substantial part of the move-them. Mr Mun compares this operation of able wealth of a nation; and to multiply those foreign trade to the seed-time and harvest of metals ought, he thinks, upon that account, agriculture. If we only behold,' says he, to be the great object of its political economy. the actions of the husbandman in the seedOthers admit, that if a nation could be se- time, when he casteth away much good corn parated from all the world, it would be of no into the ground, we shall account him rather consequence how much or how little money a madman than a husbandman. But when we circulated in it. The consumable goods, consider his labours in the harvest, which is which were circulated by means of this money, the end of his endeavours, we shall find the would only be exchanged for a greater or a worth and plentiful increase of his actions.' smaller number of pieces; but the real wealth They represented, secondly, that this prohi or poverty of the country, they allow, would bition could not hinder the exportation of gold depend altogether upon the abundance or scar- and silver, which, on account of the smallness city of those consumable goods. But it is of their bulk in proportion to their value, otherwise, they think, with countries which could easily be smuggled abroad. That this have connections with foreign nations, and exportation could only be prevented by a prowhich are obliged to carry on foreign wars, per attention to what they called the balance and to maintain fleets and armies in distant of trade. That when the country exported to countries. This, they say, cannot be done, a greater value than it imported, a balance beout by sending abroad money to pay them came due to it from foreign nations, which with; and a nation cannot send much money was necessarily paid to it in gold and silver, abroad, unless it has a good deal at home. and thereby increased the quantity of those Every such nation, therefore, must endeavour, metals in the kingdom. But that when it imin time of peace, to accumulate gold and sil-ported to a greater value than it exported, a ver, that when occasion requires, it may have wherewithal to carry on foreign wars.

contrary balance became due to foreign nations, which was necessarily paid to them in In consequence of those popular notions, all the same manner, and thereby diminished that the different nations of Europe have studied, quantity: that in this case, to prohibit the exthough to little purpose, every possible means portation of those metals, could not prevent it, of accumulating gold and silver in their re- but only, by making it more dangerous, renspective countries. Spain and Portugal, the der it more expensive: that the exchange was proprietors of the principal mines which sup- thereby turned more against the country which ply Europe with those metals, have either pro- owed the balance, than it otherwise might hibited their exportation under the severest have been; the merchant who purchased a penalties, or subjected it to a considerable du- bill upon the foreign country being obliged to ty. The like prohibition seems anciently to pay the banker who sold it, not only for the have made a part of the policy of most other natural risk, trouble, and expense of sending European nations. It is even to be found, the money thither, but for the extraordinary where we should least of all expect to find it, risk arising from the prohibition; but that the in some old Scotch acts of Parliament, which more the exchange was against any country, forbid, under heavy penalties, the carrying the more the balance of trade became necesgold or silver forth of the kingdom. The like sarily against it; the money of that country policy anciently took place both in France and becoming necessarily of so much less value, in England. comparison with that of the country to which When those countries became commercial, the balance was due. That if the exchange the merchants found this prohibition, upon between England and Holland, for example, many occasions, extremely inconvenient. They was five per cent. against England, it would could frequently buy more advantageously require 105 ounces of silver in England to with gold and silver, than with any other com- purchase a bill for 100 ounces of silver in modity, the foreign goods which they wanted, Holland: that 105 ounces of silver in Engeither to import into their own, or to carry to land, therefore, would be worth only 100 some other foreign country. They remon- ounces of silver in Holland, and would purstrated, therefore, against this prohibition as chase only a proportionable quantity of Dutch hurtful to trade. goods; but that 100 ounces of silver in HolThey represented, first, that the exportation land, on the contrary, would be worth 105 of gold and silver, in order to purchase fo- ounces in England, and would purchase a reign goods, did not always diminish the proportionable quantity of English goods;