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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- Author: Adam Smith
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direction of a local or provincial magistracy, which had no
immediate dependency upon the kingβs council. But, by the
present practice, both the labour of the country people, and
whatever other fund the king may choose to assign for the
reparation of the highroads in any particular province or
generality, are entirely under the management of the intendant ;
an officer who is appointed and removed by the kingβs council who
receives his orders from it, and is in constant correspondence
with it. In the progress of despotism, the authority of the
executive power gradually absorbs that of every other power in
the state, and assumes to itself the management of every branch
of revenue which is destined for any public purpose. In France,
however, the great post-roads, the roads which make the
communication between the principal towns of the kingdom, are in
general kept in good order; and, in some provinces, are even a
good deal superior to the greater part of the turnpike roads of
England. But what we call the cross roads, that is, the far
greater part of the roads in the country, are entirely neglected,
and are in many places absolutely impassable for any heavy
carriage. In some places it is even dangerous to travel on
horseback, and mules are the only conveyance which can safely be
trusted. The proud minister of an ostentatious court, may
frequently take pleasure in executing a work of splendour and
magnificence, such as a great highway, which is frequently seen
by the principal nobility, whose applauses not only flatter his
vanity, but even contribute to support his interest at court. But
to execute a great number of little works, in which nothing that
can be done can make any great appearance, or excite the smallest
degree of admiration in any traveller, and which, in short, have
nothing to recommend them but their extreme utility, is a
business which appears, in every respect, too mean and paltry to
merit the attention of so great a magistrate. Under such an
administration therefore, such works are almost always entirely
neglected.
In China, and in several other governments of Asia, the executive
power charges itself both with the reparation of the highroads,
and with the maintenance of the navigable canals. In the
instructions which are given to the governor of each province,
those objects, it is said, are constantly recommended to him, and
the judgment which the court forms of his conduct is very much
regulated by the attention which he appears to have paid to this
part of his instructions. This branch of public police,
accordingly, is said to be very much attended to in all those
countries, but particularly in China, where the highroads, and
still more the navigable canals, it is pretended, exceed very
much every thing of the same kind which is known in Europe. The
accounts of those works, however, which have been transmitted to
Europe, have generally been drawn up by weak and wondering
travellers; frequently by stupid and lying missionaries. If they
had been examined by more intelligent eyes, and if the accounts
of them had been reported by more faithful witnesses, they would
not, perhaps, appear to be so wonderful. The account which
Bernier gives of some works of this kind in Indostan, falls very
short of what had been reported of them by other travellers, more
disposed to the marvellous than he was. It may too, perhaps, be
in those countries, as it is in France, where the great roads,
the great communications, which are likely to be the subjects of
conversation at the court and in the capital, are attended to,
and all the rest neglected. In China, besides, in Indostan, and
in several other governments of Asia, the revenue of the
sovereign arises almost altogether from a land tax or land rent,
which rises or falls with the rise and fall of the annual produce
of the land. The great interest of the sovereign, therefore, his
revenue, is in such countries necessarily and immediately
connected with the cultivation of the land, with the greatness of
its produce, and with the value of its produce. But in order to
render that produce both as great and as valuable as possible, it
is necessary to procure to it as extensive a market as possible,
and consequently to establish the freest, the easiest, and the
least expensive communication between all the different parts of
the country; which can be done only by means of the best roads
and the best navigable canals. But the revenue of the sovereign
does not, in any part of Europe, arise chiefly from a land tax or
land rent. In all the great kingdoms of Europe, perhaps, the
greater part of it may ultimately depend upon the produce of the
land: but that dependency is neither so immediate nor so evident.
In Europe, therefore, the sovereign does not feel himself so
directly called upon to promote the increase, both in quantity
and value of the produce of the land, or, by maintaining good
roads and canals, to provide the most extensive market for that
produce. Though it should be true, therefore, what I
apprehend is not a little doubtful, that in some parts of Asia
this department of the public police is very properly managed by
the executive power, there is not the least probability that,
during the present state of things, it could be tolerably managed
by that power in any part of Europe.
Even those public works, which are of such a nature that they
cannot afford any revenue for maintaining themselves, but of
which the convecniency is nearly confined to some particular
place or district, are always better maintained by a local or
provincial revenue, under the management of a local and
provincial administration, than by the general revenue of the
state, of which the executive power must always have the
management. Were the streets of London to be lighted and paved at
the expense of the treasury, is there any probability that they
would be so well lighted and paved as they are at present, or
even at so small an expense ? The expense, besides, instead of
being raised by a local tax upon the inhabitants of each
particular street, parish, or district in London, would, in this
case, be defrayed out of the general revenue of the state, and
would consequently be raised by a tax upon all the inhabitants of
the kingdom, of whom the greater part derive no sort of benefit
from the lighting and paving of the streets of London.
The abuses which sometimes creep into the local and provincial
administration of a local and provincial revenue, how enormous
soever they may appear, are in reality, however, almost always
very trifling in comparison of those which commonly take place in
the administration and expenditure of the revenue of a great
empire. They are, besides, much more easily corrected. Under the
local or provincial administration of the justices of the peace
in Great Britain, the six days labour which the country people
are obliged to give to the reparation of the highways, is not
always, perhaps, very judiciously applied, but it is scarce ever
exacted with any circumstance of cruelty or oppression. In
France, under the administration of the intendants, the
application is not always more judicious, and the exaction is
frequently the most cruel and oppressive. Such corvees, as they
are called, make one of the principal instruments of tyranny by
which those officers chastise any parish or communeaute, which
has had the misfortune to fall under their dspleasure.
Of the public Works and Institution which are necessary for
facilitating particular Branches of Commerce.
The object of the public works and institutions above mentioned,
is to facilitate commerce in general. But in order to facilitate
some particular branches of it, particular institutions are
necessary, which again require a particular and extraordinary
expense.
Some particular branches of commerce which are carried on with
barbarous and uncivilized nations, require extraordinary
protection. An ordinary store or counting-house could give
little security to the goods of the merchants who trade to the
western coast of Africa. To defend them from the barbarous
natives, it is necessary that the place where they are deposited
should be in some measure fortified. The disorders in the
government of Indostan have been supposed to render a like
precaution necessary, even among that mild and gentle people; and
it was under pretence of securing their persons and property from
violence, that both the English and French East India companies
were allowed to erect the first forts which they possessed in
that country. Among other nations, whose vigorous government will
suffer no strangers to possess any fortified place within their
territory, it may be necessary to maintain some ambassador,
minister, or consul, who may both decide, according to their own
customs, the differences arising among his own countrymen, and,
in their disputes with the natives, may by means of his public
character, interfere with more authority and afford them a more
powerful protection than they could expect from any private man.
The interests of commerce have frequently made it necessary to
maintain ministers in foreign countries, where the purposes
either of war or alliance would not have required any. The
commerce of the Turkey company first occasioned the establishment
of an ordinary ambassador at Constantinople. The first English
embassies to Russia arose altogether from commercial interests.
The constant interference with those interests, necessarily
occasioned between the subjects of the different states of
Europe, has probably introduced the custom of keeping, in all
neighbouring countries, ambassadors or ministers constantly
resident, even in the time of peace. This custom, unknown to
ancient times, seems not to be older than the end of the
fifteenth, or beginning of the sixteenth century; that is, than
the time when commerce first began to extend itself to the
greater part of the nations of Europe, and when they first began
to attend to its interests.
It seems not unreasonable, that the extraordinary expense which
the protection of any particular branch of commerce may occasion,
should be defrayed by a moderate tax upon that particular branch;
by a moderate fine, for example, to be paid by the traders when
they first enter into it; or, what is more equal, by a particular
duty of so much per cent. upon the goods which they either import
into, or export out of, the particular countries with which it is
carried on. The protection of trade, in general, from pirates and
freebooters, is said to have given occasion to the first
institution of the duties of customs. But, if it was thought
reasonable to lay a general tax upon trade, in order to defray
the expense of protecting trade in general, it should seem
equally reasonable to lay a particular tax upon a particular
branch of trade, in order to defray the extraordinary expense of
protecting that branch.
The protection of trade, in general, has always been considered
as essential to the defence of the commonwealth, and, upon that
account, a necessary part of the duty of the executive power. The
collection and application of the general duties of customs,
therefore, have always been left to that power. But the
protection of any particular branch of trade is a part of the
general protection of trade; a part, therefore, of the duty of
that power; and if nations always acted consistently, the
particular duties levied for the purposes of such particular
protection, should always have been left equally to its disposal.
But in this respect, as well as in many others, nations have not
always acted consistently; and in the greater part of the
commercial states of Europe, particular companies of merchants
have had the address to persuade the legislature to entrust to
them the performance of this part of the
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