Front Page Titles (by Subject) chap. i 1: That whatever appears to be the proper object of gratitude, appears to deserve reward; and that, in the same manner, whatever appears to be the proper object of resentment, appears to deserve punishment - Glasgow Edition of the Works and Correspondence Vol. 1 The Theory of Moral Sentiments
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chap. i 1: That whatever appears to be the proper object of gratitude, appears to deserve reward; and that, in the same manner, whatever appears to be the proper object of resentment, appears to deserve punishment - Adam Smith, Glasgow Edition of the Works and Correspondence Vol. 1 The Theory of Moral Sentiments 
The Theory of Moral Sentiments, ed. D.D. Raphael and A.L. Macfie, vol. I of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1982).
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That whatever appears to be the proper object of gratitude, appears to deserve reward; and that, in the same manner, whatever appears to be the proper object of resentment, appears to deserve punishment
1To us, therefore, that action must appear to deserve reward, which appears to be the proper and approved object of that sentiment, which most immediately and directly prompts us to reward, or to do good to another. And in the same manner, that action must appear to deserve punishment, which appears to be the proper and approved object of that sentiment which most immediately and directly prompts us to punish, or to inflict evil upon another.
2The sentiment which most immediately and directly prompts us to reward, is gratitude; that which most immediately and directly prompts us to punish, is resentment.
3To us, therefore, that action must appear to deserve reward, which appears to be the proper and approved object of gratitude; as, on the other hand, that action must appear to deserve punishment, which appears to be the proper and approved object of resentment.
4To reward, is to recompense, to remunerate, to return good for good received. To punish, too, is to recompense, to remunerate, though in a different manner; it is to return evil for evil that has been done.
5There are some other passions, besides gratitude and resentment, which interest us in the happiness or misery of others; but there are none which so directly excite us to be the instruments of either. The love and esteem which grow upon acquaintance and habitual approbation, necessarily lead us to be pleased with the good fortune of the man who is the object of such agreeable emotions, and consequently, to be willing to lend a hand to promote it. Our love, however, is fully satisfied, though his good fortune should be brought about without our assistance. All that this passion desires is to see him happy, without regarding who was the author of his prosperity. But gratitude is not to be satisfied in this manner. If the person to whom we owe many obligations, is made happy without our assistance, though it pleases our love, it does not content our gratitude. Till we have recompensed him, till we ourselves have been instrumental in promoting his happiness, we feel ourselves still loaded with that debt which his past services have laid upon us.
6The hatred and dislike, in the same manner, which grow upon habitual disapprobation, would often lead us to take a malicious pleasure in the misfortune of the man whose conduct and character excite so painful a passion. But though dislike and hatred harden us against all sympathy, and sometimes dispose us even to rejoice at the distress of another, yet, if there is no resentment in the case, if neither we nor our friends have received any great personal provocation, these passions would not naturally lead us to wish to be instrumental in bringing it about. Though we could fear no punishment in consequence of our having had some hand in it, we would rather that it should happen by other means. To one under the dominion of violent hatred it would be agreeable, perhaps, to hear, that the person whom he abhorred and detested was killed by some accident. But if he had the least spark of justice, which, though this passion is not very favourable to virtue, he might still have, it would hurt him excessively to have been himself, even without design, the occasion of this misfortune. Much more would the very thought of voluntarily contributing to it shock him beyond all measure. He would reject with horror even the imagination of so execrable a design; and if he could imagine himself capable of such an enormity, he would begin to regard himself in the same odious light in which he had considered the person who was the object of his dislike. But it is quite otherwise with resentment: if the person who had done us some great injury, who had murdered our father or our brother, for example, should soon afterwards die of a fever, or even be brought to the scaffold upon account of some other crime, though it might sooth our hatred, it would not fully gratify our resentment. Resentment would prompt us to desire, not only that he should be punished, but that he should be punished by our means, and upon account of that particular injury which he had done to us. Resentment cannot be fully gratified, unless the offender is not only made to grieve in his turn, but to grieve for that particular wrong which we have suffered from him. He must be made to repent and be sorry for this very action, that others, through fear of the like punishment, may be terrified from being guilty of the like offence. The natural gratification of this passion tends, of its own accord, to produce all the political ends of punishment; the correction of the criminal, and the example to the public.
7Gratitude and resentment, therefore, are the sentiments which most immediately and directly prompt to reward and to punish. To us, therefore, he must appear to deserve reward, who appears to be the proper and approved object of gratitude; and he to deserve punishment, who appears to be that of resentment.
 The mode of exposition in this chapter of TMS seems to retain, more than most, the original form of Smith’s lecturing method, which John Millar described as follows: ‘Each discourse consisted commonly of several distinct propositions, which he successively endeavoured to prove and illustrate’ (Stewart, I.21).