An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith (ebook reader macos .TXT) π
The causes of this improvement in the productive powers of labour, and the order according to which its produce is naturally distributed among the different ranks and conditions of men in the society, make the subject of the first book of this Inquiry.
Whatever be the actual state of the skill, dexterity, and judgment, with which labour is applied in any nation, the abundance or scantiness of its annual supply must depend, during the continuance of that state, upon the proportion between the number of those who are annually employed in useful labour, and that of those who are not so employed. The number of us
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company. The progress of some of them, therefore, though it has
been considerable in comparison with that of almost any country
that has been long peopled and established, has been languid and
slow in comparison with that of the greater part of new colonies.
The colony of Surinam, though very considerable, is still
inferior to the greater part of the sugar colonies of the other
European nations. The colony of Nova Belgia, now divided into the
two provinces of New York and New Jersey, would probably have
soon become considerable too, even though it had remained under
the government of the Dutch. The plenty and cheapness of good
land are such powerful causes of prosperity, that the very worst
government is scarce capable of checking altogether the efficacy
of their operation. The great distance, too, from the mother
country, would enable the colonists to evade more or less, by
smuggling, the monopoly which the company enjoyed against them.
At present, the company allows all Dutch ships to trade to
Surinam, upon paying two and a-half per cent. upon the value of
their cargo for a license; and only reserves to itself
exclusively, the direct trade from Africa to America, which
consists almost entirely in the slave trade. This relaxation in
the exclusive privileges of the company, is probably the
principal cause of that degree of prosperity which that colony at
present enjoys. Curacoa and Eustatia, the two principal islands
belonging to the Dutch, are free ports, open to the ships of all
nations; and this freedom, in the midst of better colonies, whose
ports are open to those of one nation only, has been the great
cause of the prosperity of those two barren islands.
The French colony of Canada was, during the greater part of the
last century, and some part of the present, under the government
of an exclusive company. Under so unfavourable an administration,
its progress was necessarily very slow, in comparison with that
of other new colonies; but it became much more rapid when this
company was dissolved, after the fall of what is called the
Mississippi scheme. When the English got possession of this
country, they found in it near double the number of inhabitants
which father Charlevoix had assigned to it between twenty and
thirty years before. That jesuit had travelled over the whole
country, and had no inclination to represent it as less
inconsiderable than it really was.
The French colony of St. Domingo was established by pirates and
freebooters, who, for a long time, neither required the
protection, nor acknowledged the authority of France; and when
that race of banditti became so far citizens as to acknowledge
this authority, it was for a long time necessary to exercise it
with very great gentleness. During this period, the population
and improvement of this colony increased very fast. Even the
oppression of the exclusive company, to which it was for some
time subjected with all the other colonies of France, though it
no doubt retarded, had not been able to stop its progress
altogether. The course of its prosperity returned as soon as it
was relieved from that oppression. It is now the most important
of the sugar colonies of the West Indies, and its produce is said
to be greater than that of all the English sugar colonies put
together. The other sugar colonies of France are in general all
very thriving.
But there are no colonies of which the progress has been more
rapid than that of the English in North America.
Plenty of good land, and liberty to manage their own affairs
their own way, seem to be the two great causes of the prosperity
of all new colonies.
In the plenty of good land, the English colonies of North
America, though no doubt very abundantly provided, are, however,
inferior to those of the Spaniards and Portuguese, and not
superior to some of those possessed by the French before the late
war. But the political institutions of the English colonies have
been more favourable to the improvement and cultivation of this
land, than those of the other three nations.
First, The engrossing of uncultivated land, though it has by
no means been prevented altogether, has been more restrained in
the English colonies than in any other. The colony law, which
imposes upon every proprietor the obligation of improving and
cultivating, within a limited time, a certain proportion of his
lands, and which, in case of failure, declares those neglected
lands grantable to any other person; though it has not perhaps
been very strictly executed, has, however, had some effect.
Secondly, In Pennsylvania there is no right of primogeniture,
and lands, like moveables, are divided equally among all the
children of the family. In three of the provinces of New England,
the oldest has only a double share, as in the Mosaical law.
Though in those provinces, therefore, too great a quantity of
land should sometimes be engrossed by a particular individual, it
is likely, in the course of a generation or two, to be
sufficiently divided again. In the other English colonies,
indeed, the right of primogeniture takes place, as in the law of
England: But in all the English colonies, the tenure of the
lands, which are all held by free soccage, facilitates alienation
; and the grantee of an extensive tract of land generally finds
it for his interest to alienate, as fast as he can, the greater
part of it, reserving only a small quit-rent. In the Spanish and
Portuguese colonies, what is called the right of majorazzo takes
place in the succession of all those great estates to which any
title of honour is annexed. Such estates go all to one person,
and are in effect entailed and unalienable. The French colonies,
indeed, are subject to the custom of Paris, which, in the
inheritance of land, is much more favourable to the younger
children than the law of England. But, in the French colonies, if
any part of an estate, held by the noble tenure of chivalry and
homage, is alienated, it is, for a limited time, subject to the
right of redemption, either by the heir of the superior, or by
the heir of the family; and all the largest estates of the
country are held by such noble tenures, which necessarily
embarrass alienation. But, in a new colony, a great uncultivated
estate is likely to be much more speedily divided by alienation
than by succession. The plenty and cheapness of good land, it has
already been observed, are the principal causes of the rapid
prosperity of new colonies. The engrossing of land, in effect,
destroys this plenty and cheapness. The engrossing of
uncultivated land, besides, is the greatest obstruction to its
improvement ; but the labour that is employed in the improvement
and cultivation of land affords the greatest and most valuable
produce to the society. The produce of labour, in this case, pays
not only its own wages and the profit of the stock which employs
it, but the rent of the land too upon which it is employed. The
labour of the English colonies, therefore, being more employed in
the improvement and cultivation of land, is likely to afford a
greater and more valuable produce than that of any of the other
three nations, which, by the engrossing of land, is more or less
diverted towards other employments.
Thirdly, The labour of the English colonists is not only
likely to afford a greater and more valuable produce, but, in
consequence of the moderation of their taxes, a greater
proportion of this produce belongs to themselves, which they may
store up and employ in putting into motion a still greater
quantity of labour. The Eng1ish colonists have never yet
contributed any thing towards the defence of the mother country,
or towards the support of its civil government. They themselves,
on the contrary, have hitherto been defended almost entirely at
the expense of the mother country ; but the expense of fleets and
armies is out of all proportion greater than the necessary
expense of civil government. The expense of their own civil
government has always been very moderate. It has generally been
confined to what was necessary for paying competent salaries to
the governor, to the judges, and to some other officers of
police, and for maintaining a few of the most useful public
works. The expense of the civil establishment of Massachusetts
Bay, before the commencement of the present disturbances, used to
be but about οΏ½18;000 a-year ; that of New Hampshire and Rhode
Island, οΏ½3500 each; that of Connecticut, οΏ½4000; that of New York
and Pennsylvania, οΏ½4500 each; that of New Jersey, οΏ½1200; that of
Virginia and South Carolina, οΏ½8000 each. The civil establishments
of Nova Scotia and Georgia are partly supported by an annual
grant of parliament; but Nova Scotia pays, besides, about οΏ½7000
a-year towards the public expenses of the colony, and Georgia
about οΏ½2500 a-year. All the different civil establishments in
North America, in short, exclusive of those of Maryland and North
Carolina, of which no exact account has been got, did not, before
the commencement of the present disturbances, cost the
inhabitants about οΏ½64,700 a-year; an ever memorable example, at
how small an expense three millions of people may not only be
governed but well governed. The most important part of the
expense of government, indeed, that of defence and protection,
has constantly fallen upon the mother country. The ceremonial,
too, of the civil government in the colonies, upon the reception
of a new governor, upon the opening of a new assembly, etc.
though sufficiently decent, is not accompanied with any expensive
pomp or parade. Their ecclesiastical government is conducted upon
a plan equally frugal. Tithes are unknown among them; and their
clergy, who are far from being numerous, are maintained either by
moderate stipends, or by the voluntary contributions of the
people. The power of Spain and Portugal, on the contrary, derives
some support from the taxes levied upon their colonies. France,
indeed, has never drawn any considerable revenue from its
colonies, the taxes which it levies upon them being generally
spent among them. But the colony government of all these three
nations is conducted upon a much more extensive plan, and is
accompanied with a much more expensive ceremonial. The sums spent
upon the reception of a new viceroy of Peru, for example, have
frequently been enormous. Such ceremonials are not only real
taxes paid by the rich colonists upon those particular occasions,
but they serve to introduce among them the habit of vanity and
expense upon all other occasions. They are not only very grievous
occasional taxes, but they contribute to establish perpetual
taxes, of the same kind, still more grievous ; the ruinous taxes
of private luxury and extravagance. In the colonies of all those
three nations, too, the ecclesiastical government is extremely
oppressive. Tithes take place in all of them, and are levied with
the utmost rigour in those of Spain and Portugal. All of them,
besides, are oppressed with a numerous race of mendicant friars,
whose beggary being not only licensed but consecrated by
religion, is a most grievous tax upon the poor people, who are
most carefully taught that it is a duty to give, and a very great
sin to refuse them their charity. Over and above all this, the
clergy are, in all of them, the greatest engrossers of land.
Fourthly, In the disposal of their surplus produce, or of
what is over and above their own consumption, the English
colonies have been more favoured, and have been allowed a more
extensive market, than those of any other European nation. Every
European nation has endeavoured, more or less, to monopolize to
itself the commerce of its colonies, and, upon that account, has
prohibited the ships of foreign nations from trading to them, and
has prohibited them
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