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chap. ii: Of the proper objects of gratitude and resentment - 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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Of the proper objects of gratitude and resentment
1To be the proper and approved object either of gratitude or resentment, can mean nothing but to be the object of that gratitude, and of that resentment, which naturally seems proper, and is approved of.
2But these, as well as all the other passions of human nature, seem proper and are approved of, when the heart of every impartial spectator entirely sympathizes with them, when every indifferent by–stander entirely enters into, and goes along with them.
3He, therefore, appears to deserve reward, who, to some person or persons, is the natural object of a gratitude which every human heart is disposed to beat time to, and thereby applaud: and he, on the other hand, appears to deserve punishment, who in the same manner is to some person or persons the natural object of a resentment which the breast of every reasonable man is ready to adopt and sympathize with. To us, surely, that action must appear to deserve reward, which every body who knows of it would wish to reward, and therefore delights to see rewarded: and that action must as surely appear to deserve punishment, which every body who hears of it is angry with, and upon that account rejoices to see punished.
41. As we sympathize with the joy of our companions when in prosperity, so we join with them in the complacency and satisfaction with which they naturally regard whatever is the cause of their good fortune. We enter into the love and affection which they conceive for it, and begin to love it too. We should be sorry for their sakes if it was destroyed, or even if it was placed at too great a distance from them, and out of the reach of their care and protection, though they should lose nothing by its absence except the pleasure of seeing it. If it is man who has thus been the fortunate instrument of the happiness of his brethren, this is still more peculiarly the case. When we see one man assisted, protected, relieved by another, our sympathy with the joy of the person who receives the benefit serves only to animate our fellow–feeling with his gratitude towards him who bestows it. When we look upon the person who is the cause of his pleasure with the eyes with which we imagine he must look upon him, his benefactor seems to stand before us in the most engaging and amiable light. We readily therefore sympathize with the grateful affection which he conceives for a person to whom he has been so much obliged; and consequently applaud the returns which he is disposed to make for the good offices conferred upon him. As we entirely enter into the affection from which these returns proceed, they necessarily seem every way proper and suitable to their object.
52. In the same manner, as we sympathize with the sorrow of our fellow–creature whenever we see his distress, so we likewise enter into his abhorrence and aversion for whatever has given occasion to it. Our heart, as it adopts and beats time to his grief, so is it likewise animated with that spirit by which he endeavours to drive away or destroy the cause of it. The indolent and passive fellow–feeling, by which we accompany him in his sufferings, readily gives way to that more vigorous and active sentiment by which we go along with him in the effort he makes, either to repel them, or to gratify his aversion to what has given occasion to them. This is still more peculiarly the case, when it is man who has caused them. When we see one man oppressed or injured by another, the sympathy which we feel with the distress of the sufferer seems to serve only to animate our fellow–feeling with his resentment against the offender. We are rejoiced to see him attack his adversary in his turn, and are eager and ready to assist him whenever he exerts himself for defence, or even for vengeance within a certain degree. If the injured should perish in the quarrel, we not only sympathize with the real resentment of his friends and relations, but with the imaginary resentment which in fancy we lend to the dead, who is no longer capable of feeling that or any other human sentiment. But as we put ourselves in his situation, as we enter, as it were, into his body, and in our imaginations, in some measure, animate anew the deformed and mangled carcass of the slain, when we bring home in this manner his case to our own bosoms, we feel upon this, as upon many other occasions, an emotion which the person principally concerned is incapable of feeling, and which yet we feel by an illusive sympathy with him. The sympathetic tears which we shed for that immense and irretrievable loss, which in our fancy he appears to have sustained, seem to be but a small part of the duty which we owe him. The injury which he has suffered demands, we think, a principal part of our attention. We feel that resentment which we imagine he ought to feel, and which he would feel, if in his cold and lifeless body there remained any consciousness of what passes upon earth. His blood, we think, calls aloud for vengeance. The very ashes of the dead seem to be disturbed at the thought that his injuries are to pass unrevenged. The horrors which are supposed to haunt the bed of the murderer, the ghosts which, superstition imagines, rise from their graves to demand vengeance upon those who brought them to an untimely end, all take their origin from this natural sympathy with the imaginary resentment of the slain. And with regard, at least, to this most dreadful of all crimes, Nature, antecedent to all reflections upon the utility of punishment, has in this manner stamped upon the human heart, in the strongest and most indelible characters, an immediate and instinctive approbation of the sacred and necessary law of retaliation.