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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port-duty upon the tonnage of the shipping which load or unload
in it. The coinage, another institution for facilitating
commerce, in many countries, not only defrays its own expense,
but affords a small revenue or a seignorage to the sovereign. The
post-office, another institution for the same purpose, over and
above defraying its own expense, affords, in almost all
countries, a very considerable revenue to the sovereign.
When the carriages which pass over a highway or a bridge, and the
lighters which sail upon a navigable canal, pay toll in
proportion to their weight or their tonnage, they pay for the
maintenance of those public works exactly in proportion to the
wear and tear which they occasion of them. It seems scarce
possible to invent a more equitable way of maintaining such
works. This tax or toll, too, though it is advanced by the
carrier, is finally paid by the consumer, to whom it must always
be charged in the price of the goods. As the expense of carriage,
however, is very much reduced by means of such public works, the
goods, notwithstanding the toll, come cheaper to the consumer
than they could otherwise have done, their price not being so
much raised by the toll, as it is lowered by the cheapness of the
carriage. The person who finally pays this tax, therefore, gains
by the application more than he loses by the payment of it. His
payment is exactly in proportion to his gain. It is, in reality,
no more than a part of that gain which he is obliged to give up,
in order to get the rest. It seems impossible to imagine a
more equitable method of raising a tax.
When the toll upon carriages of luxury, upon coaches,
post-chaises, etc. is made somewhat higher in proportion to their
weight, than upon carriages of necessary use, such as carts,
waggons, etc. the indolence and vanity of the rich is made to
contribute, in a very easy manner, to the relief of the poor, by
rendering cheaper the transportation of heavy goods to all the
different parts of the country.
When highroads, bridges, canals, etc. are in this manner made
and supported by the commerce which is carried on by means of
them, they can be made only where that commerce requires them,
and, consequently, where it is proper to make them. Their
expense, too, their grandeur and magnificence, must be suited to
what that commerce can afford to pay. They must be made,
consequently, as it is proper to make them. A magnificent
highroad cannot be made through a desert country, where there is
little or no commerce, or merely because it happens to lead to
the country villa of the intendant of the province, or to that of
some great lord, to whom the intendant finds it convenient to
make his court. A great bridge cannot be thrown over a river at a
place where nobody passes, or merely to embellish the view from
the windows of a neighbouring palace ; things which sometimes
happen in countries, where works of this kind are carried on by
any other revenue than that which they themselves are capable of
affording.
In several different parts of Europe, the toll or lock-duty upon
a canal is the property of private persons, whose private
interest obliges them to keep up the canal. If it is not kept in
tolerable order, the navigation necessarily ceases altogether,
and, along with it, the whole profit which they can make by the
tolls. If those tolls were put under the management of
commissioners, who had themselves no interest in them, they might
be less attentive to the maintenance of the works which produced
them. The canal of Languedoc cost the king of France and the
province upwards of thirteen millions of livres, which (at
twenty-eight livres the mark of silver, the value of French money
in the end of the last century) amounted to upwards of nine
hundred thousand pounds sterling. When that great work was
finished, the most likely method, it was found, of keeping it in
constant repair, was to make a present of the tolls to Riquet,
the engineer who planned and conducted the work. Those tolls
constitute, at present, a very large estate to the different
branches of the family of that gentleman, who have, therefore, a
great interest to keep the work in constant repair. But had those
tolls been put under the management of commissioners, who had no
such interest, they might perhaps, have been dissipated in
ornamental and unnecessary expenses, while the most essential
parts of the works were allowed to go to ruin.
The tolls for the maintenance of a highroad cannot, with any
safety, be made the property of private persons. A highroad,
though entirely neglected, does not become altogether impassable,
though a canal does. The proprietors of the tolls upon a
highroad, therefore, might neglect altogether the repair of the
road, and yet continue to levy very nearly the same tolls. It is
proper, therefore, that the tolls for the maintenance of such a
work should be put under the managmnent of commissioners or
trustees.
In Great Britain, the abuses which the trustees have committed in
the management of those tolls, have, in many cases, been very
justly complained of. At many turnpikes, it has been said, the
money levied is more than double of what is necessary for
executing, in the completest manner, the work, which is often
executed in a very slovenly manner, and sometimes not executed at
all. The system of repairing the highroads by tolls of this
kind, it must be observed, is not of very long standing. We
should not wonder, therefore, if it has not yet been brought to
that degree of perfection of which it seems capable. If mean and
improper persons are frequently appointed trustees ; and if
proper courts of inspection and account have not yet been
established for controlling their conduct, and for reducing the
tolls to what is barely sufficient for executing the work to be
done by them ; the recency of the institution both accounts and
apologizes for those defects, of which, by the wisdom of
parliament, the greater part may, in due time, be gradually
remedied.
The money levied at the different turnpikes in Great Britain, is
supposed to exceed so much what is necessary for repairing the
roads, that the savings which, with proper economy, might be made
from it, have been considered, even by some ministers, as a very
great resource, which might, at some time or another, be applied
to the exigencies of the state. Government, it has been said, by
taking the management of the turnpikes into its own hands, and by
employing the soldiers, who would work for a very small addition
to their pay, could keep the roads in good order, at a much less
expense than it can be done by trustees, who have no other
workmen to employ, but such as derive their whole subsistence
from their wages. A great revenue, half a million, perbaps {Since
publishing the two first editions of this book, I have got good
reasons to believe that all the turnpike tolls levied in Great
Britain do not procduce a neat revenue that amounts to half a
million ; a sum which, under the management of government, would
not be sufficient to keep, in repair five of the principal roads
in the kingdom}, it has been pretended, might in this manner be
gained, without laying any new burden upon the people; and the
turnpike roads might be made to contribute to the general expense
of the state, in the same manner as the post-office does at
present.
That a considerable revenue might be gained in this manner, I
have no doubt, though probably not near so much as the projectors
of this plan have supposed. The plan itself, however, seems
liable to several very important objections.
First, If the tolls which are levied at the turnpikes should ever
be considered as one of the resources for supplying the
exigencies of the state, they would certainly be augmented as
those exigencies were supposed to require. According to the
policy of Great Britain, therefore, they would probably he
augmented very fast. The facility with which a great revenue
could be drawn from them, would probably encourage administration
to recur very frequently te this resource. Though it may,
perhaps, be more than doubtful whether half a million could by
any economy be saved out of the present tolls, it can scarcely be
doubted, but that a million might be saved out of them, if they
were doubled ; and perhaps two millions, if they were tripled {I
have now good reason to believe that all these conjectural sums
are by much too large.}. This great revenue, too, might be levied
without the appointment of a single new officer to collect and
receive it. But the turnpike tolls, being continually augmented
in this manner, instead of facilitating the inland commerce of
the country, as at present, would soon become a very great
incumbrance upon it. The expense of transporting all heavy goods
from one part of the country to another, would soon be so much
increased, the market for all such goods, consequently, would
soon be so much narrowed, that their production would be in a
great measure discouraged, and the most important branches of the
domestic industry of the country annihilated altogether.
Secondly, A tax upon carriages, in proportion to their weight,
though a very equal tax when applied to the sole purpose of
repairing the roads, is a very unequal one when applied to any
other purpose, or to supply the common exigencies of the state.
When it is applied to the sole purpose above mentioned, each
carriage is supposed to pay exactly for the wear and tear which
that carriage occasions of the roads. But when it is applied to
any other purpose, each carriage is supposed to pay for more than
that wear and tear, and contributes to the supply of some other
exigency of the state. But as the turnpike toll raises the price
of goods in proportion to their weight and not to their value, it
is chiefly paid by the consumers of coarse and bulky, not by
those of precious and light commodities. Whatever exigency of the
state, therefore, this tax might be intended to supply, that
exigency would be chiefly supplied at the expense of the poor,
not of the rich; at the expense of those who are least able to
supply it, not of those who are most able.
Thirdly, If government should at any time neglect the reparation
of the highroads, it would be still more difficult, than it is
at present, to compel the proper application of any part of the
turnpike tolls. A large revenue might thus be levied upon the
people, without any part of it being applied to the only purpose
to which a revenue levied in this manner ought ever to be
applied. If the meanness and poverty of the trustees of turnpike
roads render it sometimes difficult, at present, to oblige them
to repair their wrong ; their wealth and greatness would render
it ten times more so in the case which is here supposed.
In France, the funds destined for the reparation of the
highroads are under the immediate direction of the executive
power. Those funds consist, partly in a certain number of days
labour, which the country people are in most parts of Europe
obliged to give to the reparation of the highways; and partly in
such a portion of the general revenue of the state as the king
chooses to spare from his other expenses.
By the ancient law of France, as well as by that of most other
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