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NATURE AND CAUSES
WEALTH OF NATIONS.
ADAM SMITH, LL.D. F.R.S.
A CAREFUL reprint oF EDITION, 3 VOLS.)
WARD, LOCK, AND TYLER,
WARWICK HOUSE, PATERNOSTER ROW.
༡ ༢ ཀུ
Of the Inquiry into the Nature and Causes of the Wealth of Nations.
AN historical view of the different forms under which human affairs have appeared in different ages and nations, naturally suggests the question, Whether the experience of former times may not now furnish some general principles to enlighten and direct the policy of future legislators? The discussion, however, to which this question leads, is of singular difficulty; as it requires an accurate analysis of by far the most complicated class of phenomena that can possibly engage our attention, those which result from the intricate and often the imperceptible mechanism of political society;—a subject of observation which seems, at first view, so little commensurate to our faculties, that it has been generally regarded with the same passive emotions of wonder and submission with which, in the material world, we survey the effects produced by the mysterious and uncontrollable operation of physical causes. It is fortunate that upon this, as upon many other occasions, the difficulties which had long baffled the efforts of solitary genius begin to appear less formidable to the united exertions of the race; and that in proportion as the experience and the reasonings of different individuals are brought to bear upon the same objects, and are combined in such a manner as to illustrate and to limit each other, the science of politics assumes more and more that systematical form which encourages and aids the labours of future inquirers.
In prosecuting the science of politics on this plan, little assistance is to be derived from the speculations of ancient philosophers, the greater part of whom, in their political inquiries, confined their attention to a comparison of the different forms of government, and to an examination of the provisions they made for perpetuating their own existence, and for extending the glory of the state. It was reserved for modern times to investigate those universal principles of justice and of expediency, which ought, under every form of government, to regulate the social order; and of which the object is, to make as equitable a distribution as possible, among all the different members of a community, of the advantages arising from the political union.
The invention of printing was perhaps necessary to prepare the way for these researches. In those departments of literature and of science, where genius finds within itself the materials of its labours; in poetry, in pure geometry, and in some branches of moral philosophy; the ancients have not only laid the foundations on which we are to build, but have left great and finished models for our imitation. But in physics, where our progress depends on an immense collection of facts, and on a combination of the accidental lights daily struck out in the innumerable walks of observation and experiment; and in politics, where the materials of our theories are equally scattered, and are collected and arranged with still greater difficulty, the means of communication afforded by the press have, in the course of two centuries, accelerated the progress of the human mind far beyond what the most sanguine hopes of our predecessors could have imagined.
From Memoir by Dugald Stuart on the works of Adam Smith, LL.D.
The progress already made in this science, inconsiderable as it is in comparison of what may be yet expected, has been sufficient to show that the happiness of mankind depends, not on the share which the people possesses, directly or indirectly, in the enactment of laws, but on the equity and expediency of the laws that are enacted. The share which the people possesses in the government is interesting chiefly to the small number of men whose object is the attainment of political importance; but the equity and expediency of the laws are interesting to every member of the community: and more especially to those whose personal insignificance leaves them no encouragement, but what they derive from the general spirit of the government under which they live.
It is evident, therefore, that the most important branch of political science is that which has now for its object to ascertain the philosophical principles of jurisprudence; or (as Mr. Smith in his Theory of Moral Sentiments expresses it) to ascertain the general principles which ought to run through and be the 'foundation of the laws of all nations.' In countries where the prejudices of the people are widely at variance with these principles, the political liberty which the constitution bestows only furnishes them with the means of accomplishing their own ruin: and if it were possible to suppose these principles completely realized in any system of laws, the people would have little reason to complain, that they were not immediately instrumental in their enactment. The only infallible criterion of the excellence of any constitution is to be found in the detail of its municipal code; and the value which wise men set on political freedom, arises chiefly from the facility it is supposed to afford, for the introduction of those legislative improvements which the general interests of the community recommend to. I cannot help adding, that the capacity of a people to exercise political rights with utility to themselves and to their country, presupposes a diffusion of knowledge and of good morals, which can only result from the previous operation of laws unfavourable to industry, to order, and to freedom.
Of the truth of these remarks, enlightened politicians seem now to be in general convinced; for the most celebrated works which have been produced in the different countries of Europe during the last thirty years, by Smith, Quesnai, Turgot, Campomanes, Beccaria, and others, have aimed at the improvement of society,-not by delineating plans of new constitutions, but by enlightening the policy of actual legislators. Such speculations, while they are more essentially and more extensively useful than any others, have no tendency to unhinge established institutions, or to inflame the passions of the multitude. The improvements they recommend are to be effected by means too gradual and slow in their operation to warm the imaginations of any but of the speculative few; and in proportion as they are adopted, they consolidate the political fabric, and enlarge the basis upon which it rests.
To direct the policy of nations with respect to one most important class of its laws, those which form its system of political economy, is the great aim of Mr. Smith's Inquiry: and he has unquestionably had the merit of presenting to the world the most comprehensive and perfect work that has yet appeared on the general principles of any branch of legislation. The example which he has set will be followed, it is to be hoped, in due time, by other writers, for whom the internal policy of states furnishes many other subjects of discussion no less curious and interesting; and may accelerate the progress of that science which Lord Bacon has so well described in the following passage: Finis et scopus quem leges intueri, atque ad quem jussiones et 'sanctiones suas dirigere debent, non alius est, quam ut cives feliciter 'degant; id fiet, si pietate et religione recte instituti: moribus honesti; 'armis adversus hostes externos tuti; legum auxilio adversus seditiones et 'privatas injurias muniti; imperio et magistratibus obsequentes; copiis et
opibus locupletes et florentes fuerint.—Certe cognitio ista ad viros civiles proprie spectat; qui optime nôrunt, quid ferat societas humana, quid salus populi, quid æquitas naturalis, quid gentium mores, quid rerumpublicarum Formæ diverse; ideoque possint de legibus, ex principiis et præceptis tam æquitatis naturalis, quam politices decernere. Quamobrem id nunc agatur, ut 'fontes justitiæ et utilitatis publicæ petantur, et in singulis juris partibus 'character quidam et idea justi exhibeatur, ad quam particularium regnorum et rerumpublicarum leges probare, atque inde emendationem moliri quisque, cui 'hoc cordi erit et curæ, possit.' The enumeration contained in the foregoing passage, of the different objects of law, coincides very nearly with that given by Mr. Smith in the conclusion of his Theory of Moral Sentiments; and the precise aim of the political speculations which he then announced, and of which he afterwards published so valuable a part in his Wealth of Nations, was to ascertain the general principles of justice and of expediency, which ought to guide the institutions of legislators on these important articles ;-in the words of Lord Bacon, to ascertain those leges legum, 'ex quibus informatio 'peti possit, quid in singulis legibus bene aut perperam positum aut con'stitutum sit.'
The branch of legislation which Mr. Smith has made choice of as the subject of his work, naturally leads me to remark a very striking contrast between the spirit of ancient and of modern policy in respect to the Wealth of Nations, The great object of the former was to counteract the love of money and a taste for luxury, by positive institutions; and to maintain in the great body of the people, habits of frugality and a severity of manners. The decline of states is uniformly ascribed by the philosophers and historians, both of Greece and Rome, to the influence of riches on national character; and the laws of Lycurgus, which, during a course of ages, banished the precious metals from Sparta, are proposed by many of them as the most perfect model of legislation devised by human wisdom. How opposite to this is the doctrine of modern .politicians! Far from considering poverty as an advantage to a state, their great aim is to open new sources of national opulence, and to animate the activity of all classes of the people, by a taste for the comforts and the accommodations of life.
One principal cause of this difference between the spirit of ancient and modern policy, may be found in the difference between the sources of national wealth in ancient and modern times. In ages when commerce and manufactures were yet in their infancy, and among states constituted like most of the ancient republics, a sudden influx of riches from abroad was justly dreadful as an evil, alarming to the morals, to the industry, and to the freedom of a people. So different however is the case at present, that the most wealthy nations are those where the people are the most laborious, and where they enjoy the greatest degree of liberty. Nay, it was the general diffusion of wealth among the lower orders of men, which first gave birth to the spirit of independence in modern Europe, and which has produced under some of its governments, and especially under our own, a more equal diffusion of freedom and of happiness than took place under the most celebrated constitutions of antiquity.
Without this diffusion of wealth among the lower orders, the important effects resulting from the invention of printing would have been extremely limited for a certain degree of ease and independence is necessary to inspire men with the desire of knowledge, and to afford them the leisure which is requisite for acquiring it; and it is only by the rewards which such a state of society holds up to industry and ambition, that the selfish passions of the multitude can be interested in the intellectual improvement of their children. The extensive propagation of light and refinement arising from the influence of the press, aided by the spirit of commerce, seems to be the remedy provided