Front Page Titles (by Subject) [I.xi.c] part ii: Of the Produce of Land which sometimes does, and sometimes does not, afford Rent - Glasgow Edition of the Works and Correspondence Vol. 2a An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. 1
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[I.xi.c] part ii: Of the Produce of Land which sometimes does, and sometimes does not, afford Rent - Adam Smith, Glasgow Edition of the Works and Correspondence Vol. 2a An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. 1 
An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. I ed. R. H. Campbell and A. S. Skinner, vol. II of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1981).
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Of the Produce of Land which sometimes does, and sometimes does not, afford Rent
1Human food seems to be the only produce of land which always and necessarily affords some rent to the landlord. Other sorts of produce sometimes may and sometimes may not, according to different circumstances.
2After food, cloathing and lodging are the two great wants of mankind.1
3Land in its original rude state can afford the materials of cloathing and lodging to a much greater number of people than it can feed. In its improved state it can sometimes feed a greater number of people than it can supply with those materials; at least in the way in which they require them, and are willing to pay for them. In the one state, therefore, there is always a super–abundance of those materials, which are frequently, upon that account, of little or no value. In the other there is often a scarcity, which necessarily augments their value. In the one state a great part of them is thrown away as useless, and the price of what is used is considered as equal only to the labour and expence of fitting it for use, and can, therefore, afford no rent to the landlord. In the other they are all made use of, and there is frequently a demand for more than can be had. Somebody is always willing to give more for every part of them than what is sufficient to pay the expence of bringing them to market. Their price, therefore, can always afford some rent to the landlord.
4The skins of the larger animals were the original materials of cloathing. Among nations of hunters and shepherds, therefore, whose food consists chiefly in the flesh of those animals, every man, by providing himself with food, provides himself with the materials of more cloathing than he can wear. If there was no foreign commerce, the greater part of them would be thrown away as things of no value. This was probably the case among the hunting nations of North America, before their country was discovered by the Europeans, with whom they now exchange their surplus peltry, for blankets, fire–arms, and brandy, which gives it some value. In the present commercial state of the known world, the most barbarous nations, I believe, among whom land property is established, have some foreign commerce of this kind, and find among their wealthier neighbours such a demand for all the materials of cloathing, which their land produces, and which can neither be wrought up nor consumed at home, as raises their price above what it costs to send them ato those wealthier neighboursa . It affords, therefore, some rent to the landlord. When the greater part of the highland cattle were consumed on their own hills, the exportation of their hides made the most considerable article of the commerce of that country, and what they were exchanged for afforded some addition to the rent of the highland estates.2 The wool of England, which in old times could neither be consumed nor wrought up at home, found a market in the then wealthier and more industrious country of Flanders, and its price afforded something to the rent of the land which produced it. In countries not better cultivated than England was then, or than the highlands of Scotland are now, and which had no foreign commerce, the materials of cloathing would evidently be so super–abundant, that a great part of them would be thrown away as useless, and no part could afford any rent to the landlord.3
5The materials of lodging cannot always be transported to so great a distance as those of cloathing, and do not so readily become an object of foreign commerce. When they are super–abundant in the country which produces them, it frequently happens, even in the present commercial state of the world, that they are of no value to the landlord. A good stone quarry in the neighbourhood of London would afford a considerable rent. In many parts of Scotland and Wales it affords none. Barren timber for building is of great value in a populous and well–cultivated country, and the land which produces it, affords a considerable rent. But in many parts of North America the landlord would be much obliged to any body who would carry away the greater part of his large trees.4 In some parts of the highlands of Scotland the bark is the only part of the wood which, for want of roads and water–carriage, can be sent to market.5 The timber is left to rot upon the ground. When the materials of lodging are so super–abundant, the part made use of is worth only the labour and expence of fitting it for that use.6 It affords no rent to the landlord, who generally grants the use of it to whoever takes the trouble of asking it. The demand of wealthier nations, however, sometimes enables him to get a rent for it. The paving of the streets of London has enabled the owners of some barren rocks on the coast of Scotland to draw a rent from what never afforded any before. The woods of Norway and of the coasts of the Baltick, find a market in many parts of Great Britain which they could not find at home, and thereby afford some rent to their proprietors.
6Countries are populous, not in proportion to the number of people whom their produce can cloath and lodge, but in proportion to that of those whom it can feed. When food is provided, it is easy to find the necessary cloathing and lodging. But though these are at hand, it may often be difficult to find food. In some parts bevenb of the British dominions what is called A House, may be built by one day’s labour of one man. The simplest species of cloathing, the skins of animals, requires somewhat more labour to dress and prepare them for use. They do not, however, require a great deal. Among savage candc barbarous nations, a hundredth or little more than dad hundredth part of the labour of the whole year, will be sufficient to provide them with such cloathing and lodging as satisfy the greater part of the people. All the other ninety–nine parts are frequently no more than enough to provide them with food.
7But when by the improvement and cultivation of land the labour of one family can provide food for two, the labour of half the society becomes sufficient to provide food for the whole. The other half, therefore, or at least the greater part of them, can be employed in providing other things, or in satisfying the other wants and fancies of mankind.7 Cloathing and lodging, houshold furniture, and what is called Equipage, are the principal objects of the greater part of those wants and fancies. The rich man consumes no more food than his poor neighbour.8 In quality it may be very different, and to select and prepare it may require more labour and art; but in quantity it is very nearly the same. But compare the spacious palace and great wardrobe of the one, with the hovel and the few rags of the other, and you will be sensible that the difference between their cloathing, lodging and houshold furniture, is almost as great in quantity as it is in quality. The desire of food is limited in every man by the narrow capacity of the human stomach; but the desire of the conveniencies and ornaments of building, dress, equipage, and houshold furniture, seems to have no limit or certain boundary.9 Those, therefore, who have the command of more food than they themselves can consume, are always willing to exchange the surplus, or, what is the same thing, the price of it, for gratifications of this other kind. What is over and above satisfying the limited desire, is given for the amusement of those desires which cannot be satisfied, but seem to be altogether endless.10 The poor, in order to obtain food, exert themselves to gratify those fancies of the rich, and to obtain it more certainly, they vie with one another in the cheapness and perfection of their work. The number of workmen increases with the increasing quantity of food, or with the growing improvement and cultivation of the lands; and as the nature of their business admits of the utmost subdivisions of labour, the quantity of materials which they can work up, increases in a much greater proportion than their numbers. Hence arises a demand for every sort of material which human invention can employ, either usefully or ornamentally, in building, dress, equipage, or houshold furniture; for the fossils and minerals contained in the bowels of the earth; the precious metals, and the precious stones.
8Food is in this manner, not only the original source of rent, but every other part of the produce of land which afterwards affords rent, derives that part of its value from the improvement of the powers of labour in producing food by means of the improvement and cultivation of land.
9Those other parts of the produce of land, however, which afterwards afford rent, do not afford it always. Even in improved and cultivated countries, the demand for them is not always such as to afford a greater price than what is sufficient to pay the labour, and replace, together with its ordinary profits, the stock which must be employed in bringing them to market. Whether it is or is not such, depends upon different circumstances.
10Whether a coal–mine, for example, can afford any rent, depends partly upon its fertility, and partly upon its situation.11
11A mine of any kind may be said to be either fertile or barren, according as the quantity of mineral which can be brought from it by a certain quantity of labour, is greater or less than what can be brought by an equal quantity from the greater part of other mines of the same kind.
12Some coal–mines advantageously situated, cannot be wrought on account of their barrenness. The produce does not pay the expence. They can afford neither profit nor rent.
13There are some of which the produce is barely sufficient to pay the elaboure , and replace, together with its ordinary profits, the stock employed in working them. They afford some profit to the undertaker of the work, but no rent to the landlord. They can be wrought advantageously by nobody but the landlord, who being himself undertaker of the work, gets the ordinary profit of the capital which he employs in it. Many coalmines in Scotland are wrought in this manner, and can be wrought in no other. The landlord will allow nobody else to work them without paying some rent, and nobody can afford to pay any.12
14 Other coal–mines in the same country sufficiently fertile, cannot be wrought on account of their situation. A quantity of mineral sufficient to defray the expence of working, could be brought from the mine by the ordinary, or even less than the ordinary quantity of labour: But in an inland country, thinly inhabited, and without either good roads or watercarriage, this quantity could not be sold.
15Coals are a less agreeable fewel than wood: they are said too to be less wholesome. The expence of coals, therefore, at the place where they are consumed, must generally be somewhat less than that of wood.
16The price of wood again varies with the state of agriculture, nearly in the same manner, and exactly for the same reason, as the price of cattle. In its rude beginnings the greater part of every country is covered with wood, which is then a mere incumbrance of no value to the landlord, who would gladly give it to any body for the cutting. As agriculture advances, the woods are partly cleared by the progress of tillage, and partly go to decay in consequence of the increased number of cattle. These, though they do not increase in the same proportion as corn, which is altogether the acquisition of human industry, yet multiply under the care and protection of men; who store up in the season of plenty what may maintain them in that of scarcity, who through the whole year furnish them with a greater quantity of food than uncultivated nature provides for them, and who by destroying and extirpating their enemies, secure them in the free enjoyment of all that she provides. Numerous herds of cattle, when allowed to wander through the woods, though they do not destroy the old trees, hinder any young ones from coming up, so that in the course of a century or two the whole forest goes to ruin. The scarcity of wood then raises its price. It affords a good rent, and the landlord sometimes finds that he can scarce employ his best lands more advantageously than in growing barren timber, of which the greatness of the profit often compensates the lateness of the returns. This seems in the present times to be nearly the state of things in several parts of Great Britain, where the profit of planting is found to be equal to that of either corn or pasture. The advantage which the landlord derives from planting, can no–where exceed, at least for any considerable time, the rent which these could afford him; and in an inland country which is highly cultivated, it will frequently not fall much short of this rent. Upon the sea–coast of a well–improved country, indeed, if fcoalsf can conveniently gbe hadg for fewel, it may sometimes be cheaper to bring barren timber for building from less cultivated foreign countries, than to raise it at home. In the new town of Edinburgh, built within these few years, there is not, perhaps, a single stick of Scotch timber.13
17Whatever may be the price of wood, if that of coals is such that the expence of a coal–fire is nearly equal to that of a wood one, we may be assured, that at that place, and in these circumstances, the price of coals is as high as it can be. It seems to be so in some of the inland parts of England, particularly in Oxfordshire, where it is usual, even in the fires of the common people, to mix coals and wood together, and where the difference in the expence of those two sorts of fewel cannot, therefore, be very great.
18Coals, in the coal countries, are every–where much below this highest price. If they were not, they could not bear the expence of a distant carriage, either by land or by water. A small quantity only could be sold, and the coal masters and coal proprietors find it more for their interest to sell a great quantity at a price somewhat above the lowest, than a small quantity at the highest. The most fertile coal mine too, regulates the price of coals at all the other mines in its neighbourhood. Both the proprietor and the undertaker of the work find, the one that he can get a greater rent, the other that he can get a greater profit, by somewhat underselling all their neighbours. Their neighbours are soon obliged to sell at the same price, though they cannot so well afford it, and though it always diminishes, and sometimes takes away altogether both their rent and their profit. Some works are abandoned altogether; others can afford no rent, and can be wrought only by the proprietor.
19The lowest price at which coals can be sold for any considerable time, is, like that of all other commodities, the price which is barely sufficient to replace, together with its ordinary profits, the stock which must be employed in bringing them to market. At a coal–mine for which the landlord can get no rent, but which he must either work himself or let it alone altogether, the price of coals must generally be nearly about this price.
20Rent, even where coals afford one, has generally a smaller share in their price than in that of most other parts of the rude produce of land. The rent of an estate above ground, commonly amounts to what is supposed to be a third of the gross produce; and it is generally a rent certain and independent of the occasional variations in the crop.14 In coal–mines a fifth of the gross produce is a very great rent; a tenth the common rent, and it is seldom a rent certain, but depends upon the occasional variations in the produce. These are so great, that in a country where thirty years purchase is considered as a moderate price for the property of a landed estate, ten years purchase is regarded as a good price for that of a coalmine.
21The value of a coal–mine to the proprietor hfrequently dependsh as much upon its situation as upon its fertility.15 That of a metallick mine depends more upon its fertility, and less upon its situation. The coarse, and still more the precious metals, when separated from the ore, are so valuable that they can generally bear the expence of a very long land, and of the most distant sea carriage. Their market is not confined to the countries in the neighbourhood of the mine, but extends to the whole world. The copper of Japan makes an article iof commerce ini Europe; the iron of Spain in that of Chili and Peru. The silver of Peru finds its way, not only to Europe, but from Europe to China.
22The price of coals in Westmorland or Shropshire can have little effect on their price at Newcastle; and their price in the Lionnois can have none at all. The productions of such distant coal–mines can never be brought into competition with one another. But the productions of the most distant metallick mines frequently may, and in fact commonly are. The price, therefore, of the coarse, and still more that of the precious metals, at the most fertile mines in the world, must necessarily more or less affect their price at every other in it. The price of copper in Japan must have some influence upon its price at the copper mines in Europe. The price of silver in Peru, or the quantity either of labour or of other goods which it will purchase there, must have some influence on its price, not only at the silver mines of Europe, but at those of China. After the discovery of the mines of Peru, the silver mines of Europe were, the greater part of them, abandoned. The value of silver was so much reduced that their produce could no longer pay the expence of working them, or replace, with a profit, the food, cloaths, lodging and other necessaries which were consumed in that operation. This was the case too with the mines of Cuba and St. Domingo, and even with the antient mines of Peru, after the discovery of those of Potosi.
23The price of every metal at every mine, therefore, being regulated in some measure by its price at the most fertile mine in the world that is actually wrought, it can at the greater part of mines do very little more than pay the expence of working, and can seldom afford a very high rent of the landlord. Rent, accordingly, seems at the greater part of mines to have but a small share in the price of the coarse, and a still smaller in that of the precious metals. Labour and profit make up the greater part of both.
24A sixth part of the gross produce may be reckoned the average rent of the tin mines of Cornwall, the most fertile that are known in the world, as we are told by the Reverend Mr. Borlace, vice–warden of the stannaries. Some, he says, afford more, and some do not afford so much.16 A sixth part of the gross produce is the rent too of several very fertile lead mines in Scotland.17
25In the silver mines of Peru, we are told by Frezier and Ulloa,18 the proprietor frequently exacts no other acknowldgement from the undertaker of the mine, but that he will grind the ore at his mill, paying him the ordinary multure or price of grinding. jTill 1736, indeed, the tax of the king of Spain amountedj to one–fifth of the standard silver, which ktill then mightk be considered as the real rent of the greater part of the silver mines of Peru, the richest which lhave beenl known in the world. If there mhad beenm no tax this fifth would naturally nhave belongedn to the landlord, and many mines might ohave beeno wrought which pcould not then be wroughtp because they qcould notq afford this tax. The tax of the duke of Cornwall upon tin is supposed to amount to more than five per cent. or one–twentieth part of the value;19 and whatever may be his proportion, it would naturally too belong to the proprietor of the mine, if tin was duty free. But if you add one–twentieth to one–sixth, you will find that the whole average rent of the tin mines of Cornwall, rwasr to the whole average rent of the silver mines of Peru, as thirteen to twelve. sBut the silver mines of Peru are not now able to pay even this low rent, and the tax upon silver was, in 1736, reduced from one–fifth to one–tenth.20 Even this tax upon silver too gives more temptation to smuggling than the tax of one–twentieth upon tin;s and smuggling must be much easier in the precious than in the bulky commodity. The tax of the king of Spain accordingly is said to be very ill paid, and that of the duke of Cornwall very well. Rent, therefore, it is probable, makes a greater part of the price of tin at the most fertile tin mines, than it does of silver at the most fertile silver mines in the world. After replacing the stock employed in working those different mines, together with its ordinary profits, the residue which remains to the proprietor, is greater it seems in the coarse, than in the precious metal.
26Neither are the profits of the undertakers of silver mines commonly very great in Peru. The same most respectable and well informed authors acquaint us, that when any person undertakes to work a new mine in Peru, he is universally looked upon as a man destined to bankruptcy and ruin, and is upon that account shunned and avoided by every body. Mining, it seems, is considered there in the same light as here, as a lottery, in which the prizes do not compensate the blanks, though the greatness of some tempts many adventurers to throw away their fortunes in such unprosperous projects.21
27As the sovereign, however, derives a considerable part of his revenue from the produce of silver mines, the law in Peru gives every possible encouragement to the discovery and working of new ones. Whoever discovers a new mine, is entitled to measure off two hundred and forty–six feet in length, according to what he supposes to be the direction of the vein, and half as much in breadth. He becomes proprietor of this portion of the mine, and can work it without paying any acknowledgement to the landlord. The interest of the duke of Cornwall has given occasion to a regulation nearly of the same kind in that antient dutchy. In waste and uninclosed lands any person who discovers a tin mine, may mark out its limits to a certain extent, which is called bounding a mine. The bounder becomes the real proprietor of the mine, and may either work it himself, or give it in lease to another, without the consent of the owner of the land, to whom, however, a very small acknowledgement must be paid upon working it.22 In both regulations the sacred rights of private property are sacrificed to the supposed interests of publick revenue.
28The same encouragement is given in Peru to the discovery and working of new gold mines; and in gold the king’s tax amounts only to a twentieth part of the standard metal. It was once a fifth, tand afterwards a tenth,t as in silver; but it was found that the work could not bear ueven the lowest of these two taxesu . If it is rare, however, say the same authors, Frezier and Ulloa, to find a person who has made his fortune by a silver, it is still much rarer to find one who has done so by a gold mine.23 This twentieth part seems to be the whole rent which is paid by the greater part of the gold mines in Chili and Peru. Gold too is much more liable to be smuggled than even silver; not only on account of the superior value of the metal in proportion to its bulk, but on account of the peculiar way in which nature produces it. Silver is very seldom found virgin, but, like most other metals, is generally mineralized with some other body, from which it is impossible to separate it in such quantities as will pay for the expence, but by a very laborious and tedious operation, which cannot well be carried on but in workhouses erected for the purpose, and therefore exposed to the inspection of the king’s officers. Gold, on the contrary, is almost always found virgin. It is sometimes found in pieces of some bulk; and even when mixed in small and almost insensible particles with sand, earth, and other extraneous bodies, it can be separated from them by a very short and simple operation, which can be carried on in any private house by any body who is possessed of a small quantity of mercury. If the king’s tax, therefore, is but ill paid upon silver, it is likely to be much worse paid upon gold; and rent must make a much smaller part of the price of gold, than even of that of silver.
29The lowest price at which the precious metals can be sold, or the smallest quantity of other goods for which they can be exchanged during any considerable time, is regulated by the same principles which fix the lowest ordinary price of all other goods. The stock which must commonly be employed, the food, cloaths and lodging which must commonly be consumed in bringing them from the mine to the market, determine it. It must at least be sufficient to replace that stock, with the ordinary profits.
30Their highest price, however, seems not to be necessarily determined by any thing but the actual scarcity or plenty of those metals themselves. It is not determined by that of any other commodity, in the same manner as the price of coals is by that of wood, beyond which no scarcity can ever raise it. Increase the scarcity of gold to a certain degree, and the smallest bit of it may become more precious than a diamond, and exchange for a greater quantity of other goods.24
31The demand for those metals arises partly from their utility, and partly from their beauty.25 If you except iron, they are more useful than, perhaps, any other metal. As they are less liable to rust and impurity, they can more easily be kept clean; and the utensils either of the table or the kitchen are often upon that account more agreeable when made of them. A silver boiler is more cleanly than a lead, copper, or tin one; and the same quality would render a gold boiler still better than a silver one.26 Their principal merit, however, arises from their beauty, which renders them peculiarly fit for the ornaments of dress and furniture. No paint or dye can give so splendid a colour as gilding. The merit of their beauty is greatly enhanced by their scarcity.27 With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their veyesv is never so compleat as when they appear to possess those decisive marks of opulence which nobody can possess but themselves.28 In their eyes the merit of an object which is in any degree either useful or beautiful, is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves.29 Such objects they are willing to purchase at a higher price than things much more beautiful and useful, but more common. These qualities of utility, beauty, and scarcity, are the original foundation of the high price of those metals, or of the great quantity of other goods for which they can every where be exchanged. This value was antecedent to and independent of their being employed as coin, and was the quality which fitted them for that employment. That employment, however, by occasioning a new demand, and by diminishing the quantity which could be employed in any other way, may have afterwards contributed to keep up or increase their value.
32The demand for the precious stones arises altogether from their beauty. They are of no use, but as ornaments; and the merit of their beauty is greatly enhanced by their scarcity, or by the difficulty and expence of getting them from the mine.30 Wages and profit accordingly make up, upon most occasions, almost the whole of their high price. Rent comes in but for a very small share; frequently for no share; and the most fertile mines only afford any considerable rent. When Tavernier, a jeweller, visited the diamond mines of Golconda and Visiapour, he was informed that the sovereign of the country, for whose benefit they were wrought, had ordered all of them to be shut up, except those which wyieldedw the largest and finest stones.31 The others, it seems, were to the proprietor not worth the working.
33As the price both of the precious metals and of the precious stones is regulated all over the world by their price at the most fertile mine in it, the rent which a mine of either can afford to its proprietor is in proportion, not to its absolute, but to what may xbex called its relative fertility, or to its superiority over other mines of the same kind. If new mines were discovered as much superior to those of Potosi as they were superior to those of Europe, the value of silver might be so much degraded as to render even the mines of Potosi not worth the working. Before the discovery of the Spanish West Indies, the most fertile mines in Europe may have afforded as great a rent to their proprietor as the richest mines in Peru do at present. Though the quantity of silver was much less, it might have exchanged for an equal quantity of other goods, and the proprietor’s share might have enabled him to purchase or command an equal quantity either of labour or of commodities. The value both of the produce and of the rent, the real revenue which they afforded both to the publick and to the proprietor, might have been the same.
34The most abundant mines either of the precious metals or of the precious stones could add little to the wealth of the world. A produce of which the value is principally derived from its scarcity, is necessarily degraded by its abundance. A service of plate, and the other frivolous ornaments of dress and furniture, could be purchased for a smaller quantity of labour, or for a smaller quantity of commodities; and in this would consist the sole advantage which the world could derive from that abundance.
35It is otherwise in estates above ground. The value both of their produce and of their rent is in proportion to their absolute, and not to their relative fertility. The land which produces a certain quantity of food, cloaths, and lodging, can always feed, cloath, and lodge a certain number of people; and whatever may be the proportion of the landlord, it will always give him a proportionable command of the labour of those people, and of the commodities with which that labour can supply him. The value of the most barren lands is not diminished by the neighbourhood of the most fertile. On the contrary, it is generally increased by it. The great number of people maintained by the fertile lands afford a market to many parts of the produce of the barren, which they could never have found among those whom their own produce could maintain.
36Whatever increases the fertility of land in producing food, increases not only the value of the lands upon which the improvement is bestowed, but contributes likewise to increase that of many other lands, by creating a new demand for their produce. That abundance of food, of which, in consequence of the improvement of land, many people have the disposal beyond what they themselves can consume, is the great cause of the demand both for the precious metals and the precious stones, as well as for every other conveniency and ornament of dress, lodging, houshold furniture, and equipage.32 Food not only constitutes the principal part of the riches of the world, but it is the abundance of food which gives the principal part of their value to many other sorts of riches. The poor inhabitants of Cuba and St. Domingo, when they were first discovered by the Spaniards, used to wear little bits of gold as ornaments in their hair and other parts of their dress. They seemed to value them as we would do any little pebbles of somewhat more than ordinary beauty, and to consider them as just worth the picking up, but not worth the refusing to any body who asked them. They gave them to their new guests at the first request, without seeming to think that they had made them any very valuable present.33 They were astonished to observe the rage of the Spaniards to obtain them; and had no notion that there could any where be a country in which many people had the disposal of so great a superfluity of food, so scanty always among themselves, that for a very small quantity of those glittering baubles they would willingly give as much as might maintain a whole family for many years. Could they have been made to understand this, the passion of the Spaniards would not have surprised them.
[1 ]Smith considers the effect of ‘improvement’ on the prices of such commodities as provide clothing in I.xi.m.
[2 ]See above, I.xi.b.8 and below, I.xi.l.2.
[3 ]The argument of this paragraph anticipated the ‘vent for surplus’ doctrine, as stated for example at III.i.1, IV.i.31, and IV.iii.c.4.
[4 ]Smith examines the policies which had helped to raise the price of timber in America at IV.vii.b.28, 38.
[5 ]Improvements in water–carriage were already proving vitally important to the Highlands. The search for supplies of charcoal led ironmasters to examine the possibilities of using the area’s supplies of timber.
[6 ]Samuel Johnson’s frequent references to the absence of trees and timber in the Highlands provides a different interpretation. At Fort Augustus ‘the country is totally denuded of its wood’. S. Johnson, Journey to the Western Islands of Scotland (1775), Oxford Standard Author ed., 30.
[7 ]Cf. I.x.c.19, II.i.28, and III.i.1, and for further elaboration, I.xi.c.36 and I.xi.g.28. Cf. Pufendorf, De Jure, V.i.15: ‘in the more civilised states there are in general two classes of men, that which devotes itself to cultivating the soil, and that which in different occupations looks after the conveniences of life.’ And cf. Cantillon, Essai, 57, ed. Higgs 45: ‘It is generally calculated that one half of the Inhabitants of a kingdom subsist and make their Abode in Cities, and the other half live in the Country.’ Hume in ‘Of Commerce’ remarks that the bulk of every state ‘may be divided into husbandmen and manufacturers’. He went on to point out, ‘As soon as men quit their savage state, where they live chiefly by hunting and fishing, they must fall into these two classes; though the arts of agriculture employ at first the most numerous part of the society.’ (Essays Moral, Political, and Literary, ed. Green and Grose, i.289.)
[8 ]Cf. LJ (A) iii.135:
[9 ]Cf. Steuart (Principles, i.144, ed. Skinner, i.139) ‘there is no bounds to the consumption of work; but as for articles of nourishment, the case is quite different. The most delicate liver in Paris will not put more of the earth’s productions into his belly, than another.’
[10 ]See below, I.xi.c.36, I.xi.g.28. The argument is also applied in Book III in discussing the historical process of growth. See, for example, III.iii.12 and III.iv.11.
[11 ]See above, I.xi.b.4, where a similar point is made with regard to the land.
[12 ]Landowners may have worked their own coalmines because only they had the capital resources to do so. T. C. Smout, ‘Scottish Landowners and Economic Growth, 1650–1850’, Scottish Journal of Political Economy, xi (1964), 220–1.
[g–g]get coals 1
[13 ]The building of the New Town was only starting. The North Bridge, providing access from the Old to the New Town, was in full use from 1772. Other buildings to the south of the old Town, notably George Square, dated from earlier in the century. It is difficult to accept Smith’s sweeping assertion that Scotch timber was not used. A. J. Youngson, The Making of Classical Edinburgh (Edinburgh, 1966), esp. chs. 3 and 4, pp. 52–110.
[14 ]The same point is made at II.iii.9, II.v.12, and V.ii.a.16, where it is stated that the value of rents in Britain was of the order of £20 millions. In LJ (B) 289, ed. Cannan 224, rent is stated to be ‘generally about a third of the produce’. In LJ (A) vi.140, however, this proportion is said to be probably more typical of Scotland than England since ‘as England is a more opulent country the reward of the farmer must be higher’. In LJ (A) iii.112 it is stated that ‘in the fruitfull countries of Greece and Italy’ rent was about one sixth part of the produce, compared to such relatively ‘barren and cold’ countries as Scotland and England, where rent was generally about one third. Smith attributes this difference to the use of slave labour in Italy and Greece. A similar point is made in LJ (B) 138, ed. Cannan 99. See below, III.ii.8, 9, on the use of slave labour on the land and cf. Cantillon’s Essai, 62, ed. Higgs 49, where it is stated that the rent paid by the undertaker engaged in farming is ‘generally supposed to be equal in value to the third of the produce’. A similar point is made at 56, 160, 267, ed. Higgs 43, 121, 201.
[h–h]depends frequently 1
[15 ]See below, V.ii.k.12, where Smith defends the use of bounties or subsidies with regard to the transport of coal.
[i–i]in the commerce of 1
[16 ]‘The tin–ore being raised out of the mine, is then divided into as many shares, as there are Lords and adventurers. The Lord usually hath a sixth–part clear of cost, but in consideration of draining the mine, and otherwise encouraging the adventure, is oftentimes content with an eighth, and sometimes a tenth.’ (W. Borlase, The Natural History of Cornwall (Oxford, 1758), 175.)
[17 ]One bar in six was a traditional rent when the mine was fully operative. It was usually less in the early stages of development. T. C. Smout, ‘Lead–Mining in Scotland, 1650–1850’, in P. L. Payne ed., Studies in Scottish Business History (London, 1967), 113.
[18 ]Much of the information about Peru in this and the following three paragraphs is based on A. F. Frézier, A Voyage to the South Sea (London, 1717), 108–9:
[j–j]The tax of the king of Spain, indeed, amounts 1
[p–p]cannot be wrought at present 1
[19 ]The Duke of Cornwall was paid 4s. duty on every cwt. of white tin. Before it could be sold tin had to be stamped by an officer appointed by the Duke of Cornwall to assay it in one of the five coinage towns, Liskeard, Losthwithiel, Truro, Helston, and Penzance.
[s–s]The high tax upon silver too, gives much greater temptation to smuggling than the low tax upon tin, 1
[20 ]See below, I.xi.g.21, I.xi.h.8, IV.vii.a.16.
[21 ]See above, I.x.b.27, and below, IV.vii.a.18, where mining for the precious metals is described as ‘perhaps the most disadvantageous lottery in the world’. The example of mining as being a kind of lottery is also used in LJ (A) vi.68; LJ (B) 226, ed. Cannan 176. Cf. Juan and Ulloa (Voyage historique, i.379, trans. John Adams, i.457): . . . when a person expresses his intention of working in some mine, others look upon him as a man running headlong to his destruction, and who risks certain ruin for remote and uncertain hopes. They endeavour therefore to divert him from his purpose; and if they cannot succeed in this, they fly from him as if they were afraid he should communicate the information to them.
[22 ]Borlase (The Natural History of Cornwall, 169 and 175) described the system: No one in Cornwall can search for tin in this or any other manner, where and when he pleases. If the land where the shode is found is inclosed and not bounded, the leave of the Lord of the Soil must be first obtained; if the land is bounded, then is the bounder’s consent only necessary; but if the land is neither bounded nor inclosed, but a wastrel or common, then may any one mark out bounds there, (observing the legal forms) and search for tin. If the lands are bounded, then the bounder has the right of setting, or giving authority to search and work, and has the sixth clear, or as he agrees, and the Lord of the soil has only a fifteenth. The adventurers have in proportion to the part of the work which they carry on.
[23 ]Smith goes further than Juan and de Ulloa, who wrote (Voyage historique, i.371, trans. John Adams, i.447–8): contrary to the nature of things, the name of rich is bestowed on that province where most mines are worked, though so entirely destitute of the other more necessary products, that the great number of the people, employed in the mines, are under a necessity of being supplied from other parts; and those provinces, whose pastures are covered with flocks, and herds, whose fields yield plentiful harvests, and their trees bend beneath rich fruits, under the fertilizing influence of a benign climate, but destitute of mines, or forgotten through neglect, are looked upon as poor: and, indeed, except in the plentiful surface of the earth, make no wealthy appearance.
[24 ]See above, I.iv.13. The link between value and scarcity is also established below, IV.vii.a.19.
[25 ]Smith remarks in LJ (A) vi.106 with regard to the metals that ‘Their value is not as Mr Locke imagines founded on an agreement of men to put it upon them; they have what we may call a naturall value, and would bear a high one considered merely as a commodity, tho’ not used as the instrument of exchange.’ Cf. Cantillon, Essai, 148, ed. Higgs 113.
[26 ]Cf. LJ (A) vi.106: ‘all houshould utensils, as plates, spoons, kettles, etc., etc. all with a few exceptions, would be the better if made of gold or silver.’ Also LJ (B) 238, ed. Cannan 185: ‘Gold and silver however do not derive their whole utility from being the medium of exchange. Tho’ they never had been used as money, they are more valuable than any other mettals. They have a superiour beauty, are capable of a finer polish, and are more proper for making any instrument except those with an edge.’
[27 ]It is stated in LRBL ii.237, ed. Lothian 187, that ‘novelty generally inhances the value of a thing’. In LJ (A) vi.13 the value of the precious stones is linked with their colour and rarity.
[28 ]Cf. Imitative Arts, I.13:
[29 ]The sources of merit or utility are discussed in the essay on the Imitative Arts and in the TMS IV, ‘Of the Effect of Utility upon the Sentiment of Approbation’. See also TMS V.i.1, ‘Of the Influence of Custom and Fashion upon our notions of Beauty and Deformity’. See also LJ (A) vi.13–16; LJ (B) 206–9, ed. Cannan 158–9, where Smith discusses the ‘natural wants’ of man.
[30 ]See above I.iv.13 and below IV.vii.a.19.
[31 ]Tavernier’s account (1676) is not quite as Smith suggests (Travels in India, translated by V. Ball (London, 1889), ii.78–9):
[32 ]See above, I.xi.c.7, and below, I.xi.g.28. Smith argues at III.iii.20 that cheap provisions helped historically to develop manufactures through the encouragement given to artificers to settle in particular places.
[33 ]Cf. LJ (B) 209, ed. Cannan 159: