PREFACE

[TheworkherepresentedtotheAmericanreader，wascomposedwiththeintentionofbeingpublishedinGreatBritain；underthisideathefollowingPrefacewaswritten。Asitexplainsthedesignoftheoriginalundertaking，Ithasbeenthoughtproperthatitshouldretaintheplaceitwasatfirstintended，tooccupy。]

Topromoteprosperitywithin，toguardagainstdangerfromwithout，haveeverbeenesteemedthetwogreatbranchesofthedutyoftheStatesman。

Butofallthesourcesofinternalprosperity，ormeansofrepellingexternalaggressions，noone，inmoderntimes，isofgreaterefficacythanwealth。

Wehave，therefore，noreasontobesurprised，thatstatesmenshouldhaveendeavoredtoprocurefortheirrespectivecountriesthegreatestpossibleamountofit。Ifthelawstheyhaveenacted，andtheregulationstheyhaveforthispurposeestablished，havereallyansweredtheendstheywereintendedtopromote，theyarecertainlypraiseworthy。

Oftheefficacyofsuchlaws，forthosepurposes，politiciansforalongtimedidnotdoubt；butagreatrevolutioninpublicopinionhastakenplace，andalmostallmenwhonowpretendtounderstandtheprinciplesthatshouldgovernthepolicyofnations，agreeincondemningthem。

Thisrevolutionintheopinionsofmen，haditsriseinFrance。Itmighthavediedthere，however，withthesectfromwhichithadbirth，hadnotamanofsurprisinggenius，placinghimselfattheheadofthefeeblepartythensupportingit，enablingthemtogivetheirprinciplescurrencythroughoutthenationsofEurope，AdamSmithwillberecordedamongremotegenerations，asonehavingpowerfullyinfluencedtheopinionsandpolicyofthecivilizedworld，duringtheeighteenthandnineteenthcenturies。HisgreatworknosoonerappearedinBritainthanitwasread，andtheopinionsitmaintainedadopted，byeveryonewhopretendedtoanyknowledgeoftheimportantsubjectsofwhichittreated。Itquickly，andwithlikesuccess，spreadthroughotherlands。Neverwastheforcewhichmereintellectpossessesmorestrikinglymanifested。Toillustratehisspeculations，tocastthemintonewformssuitedtothevariedtastesofvariousnations，becameanemploymentbywhichmenofundoubtedgeniusthoughtthemselveshonored。Hisreasoningsarethebasisofnumeroussystemsandinnumerableessays。Avoluminouslibrarymightbeformedoftheworksofmenwhocallhimmaster。Norwerethedictaofaretiredstudentacquiescedin，andembraced，onlybytheoristslikehimself。Theyhaveguidedthecouncils，theyhaveformedthetextbookofstatesmen，andhavehadanimportantinfluenceonthepolicyofnations。

Againstdoctrinessupportedbysogreataweightofauthority，what，itmaybedemanded，canpossiblybeurged？andhowcomesit，thatsoobscureanindividualastheauthorofthefollowingpages，placeshimselfinoppositiontothem？Customauthorisesme，inameasurecallsonme，inanswertothesequestions，tostatetothereaderhowIwasledtoformopinionsopposedtothissystem，andwhyIbringthoseopinionsbeforehim。

Manyyearsago，Ibecameengagedinaseriesofinquiriesintothecircumstanceswhichhavegovernedthehistoryofman，or，tovarytheexpression，intothecauseswhichhavemadehimwhatheisinvariouscountries，orhasbeeninvarioustimes。Itseemedtome，that，bygatheringtogetherallthatconsciousnessmakesknowntousofwhatiswithin，andallthatobservationinformsusofwhatlieswithout，therealagentsintheproductionofthegreateventsbywhichthefortunesofourracehavebeendiversified，mightbeatleastpartiallydiscovered，thelawsregulatingtheirproceduretraced，andthatthusthematerialsforatrueNaturalHistoryofmanmightbereached。ThepursuitsinwhichIwasengagedledmetothesubjectonthesideofphysiology，andwhat`istermedmetaphysics，andimaginingthatIsawarayoflightstrugglingthroughtheobscurityoftheobjects，amidstwhichtheseinvestigationsplacedme，Ibegantoconceivehopesofbeingabletodispelsomeofthedarkness，inwhichareinvolvedcausesthathaveproduced，andareproducing，resultsofthehighestimportancetous。TothispursuitIdeterminedtodevotemyself。Sucharesolutionwouldscarcelyhavebeentakenbyanyoneunlesspromptedbytheenthusiasmnaturaltoyouth，andwouldnothavebeenadoptedbyme，hadInothadtheprospectofenjoyingeveryfacilityinfollowingouttheobjectsI

hadinview；butasuddenandunexpectedchangetookplaceinmycircumstances，andIexchangedtheliteraryleisureofEuropeforthesolitudeandlaborsoftheCanadianbackwoods。Ifound，notwithstanding，thatthisaccidentcouldnotaltogetherputastoptomyinquiries，thoughitretardedthemandalteredtheirform。

IhadearlyturnedforassistancetotheInquiryintothenatureandCausesoftheWealthofNations，andtothespeculationsofthepoliticaleconomists。But，Ifoundtheirscopeanddesigntooconfined，toadvancetheattainmentofmypurposeinthedegreeIhadanticipated，andIhadbesidesthemortificationofperceiving，thattheconclusionstowhichtheyled，were，inmanypoints，opposedtothoseatwhichIhadarrived。

EncounteringoppositionwhereIhadlookedforsupport，Iappliedmyselftoascertain，ifpossible，thecause，and，afterhavingspentconsiderabletimeintheinquiry，conceivedIhaddetectedenoughoffallacyinthespeculations，evenofAdamSmithhimself，butmoreespeciallyofhissuccessors，towarrantthebeliefthatmyconclusionsmightberight，thoughthepracticalrulesthatmightbededucedfromthem，wouldnotcoincidewiththoselaiddowninwhatistermedthescienceofpoliticaleconomy。But，thoughI

becamesatisfiedonthishead，itwasnotmyintentiontohavedirectlyattackedanyofthetenetsoftheschool。Settingoutfromanewpoint，itseemedtome，that，howeverfarImightadvance，itwouldnotbenecessaryformedirectlytooppose，ortoattempttocontrovert，anyreceivedopinions。

Duringmyresidenceinthiscountry，thefieldofmyinquiriesbeingmuchcontracted，IagainrecurredtothedisquisitionsofAdamSmith，andofotherEuropeanwritersofthesameschool，inordertotraceoutmorefullythanIhadhithertodone，theconnexionbetweenthephenomenaattendingtheincreaseanddiminutionofwealth，andthosegeneralprinciplesofthenatureofman，andoftheworld，determining，asIconceive，thewholeprogressofhumanaffairs。ThoughIwasledtothisstudy，simplyfrommydesiretoadvance，asfarasmysituationpermittedme，inapathofinvestigationwhichhad，tome，averylivelyinterest，myprosecutionofithadtheeffectofimpressingmemoredeeplywithaconvictionoftheunsoundnessofthesystemmaintainedintheWealthofNations。

InthisstageofmyprogressIbecameengagedinaworkonthepresentstateofCanada，andohitsrelationswiththerestoftheBritishEmpire。

Theserelationsseemtometospringfromthemutualbenefitarisingtothecolonyandtheempirefromtheirconnexion。Thesectofpoliticians，towhomIallude，denythatanysuchbenefitarisestoeitherparty。Weretheirreasoningscorrect，itwouldfollowasanecessaryconsequence，thatCanadais，inthisrespect，ofnoadvantagetoGreatBritain，andwouldgofartoprove，what，indeed，seemsbymanytobebelieved，thatthesoonertheconnexionbetweenthemisdissolvedthebetter。

DissentingasIdo，fromtheopinionsofthesetheorists，itappearedtome，thattheworkIhadundertakenrequiredmetostatesomeofthereasonsonwhichIgroundedthisdissent，andthat，withoutenteringatlengthintoanyoftheimportantquestionsinvolvedinthediscussion，Ishouldbeableatleasttocastashadeofdoubtoverdoctrinesassertedwithgreatdogmatism，andactedonwithunhesitatingconfidence。Inendeavoring，however，forthispurpose，toarrangeaseriesofargumentsdrawnfromamodificationofprinciplesthatoriginallysuggestedthemselvestomewhenengagedinmoreenlargedinquiries，myworkgraduallyassumedafarmoreextendedandsystematicform，thanIhadatfirstmeditated，andI

becameengagedinthepresentattempt，toshowthatthereexistgreatandradicalerrorsinthewholesystem，sufficienttovitiateverymanyoftheconclusionsdrawnfromit，andfromthefallaciesintroducedbywhich，thedoctrinesoffreetradealonederivetheirplausibility。

Intheprosecutionoftheargument，IhavealmostentirelyconfinedmyselftotheconsiderationofthedoctrinestowhichIamopposed，astheyaredevelopedintheWealthofNations。Icouldnothavedoneotherwise，withoutbecominginvolvedinthediscussionofcontradictoryandconflictingopinions。Neither，asIconceive，isthislimitationofessentialimportancetothedeterminationofthepointsindebate。IfAdamSmithbeessentiallywrong，noneofhisfollowerscanberight。Thesystemestablishedbyhimstands，orfalls，withhim。

Iamnotignorantofthedangerstowhichthisattemptsubjectsme。

Whoeverventurestoattackasystemreceivedsogenerally，andsupportedbysogreataweightofauthority，isexposedtovariousevils。Theywhohaveembraceditsprinciplesareapttoslightandneglect，or，ifthatmaynothe，toconceiveittheirbusinesstooverthrowtheheterodoxdoctrines。

Whatoferrortheymaycontainiseagerlyseizedon，whatoftruth，isoverlooked。"Who，"asksMr。Locke，"isthere，hardyenoughtocontendwiththereproachwhichiseverpreparedforhim，whodaresventuretodissentfromthereceivedopinionsofhiscountryandparty？Andwhereisthemantobefound，thatcanpatientlypreparehimselftobearthenames，thatheissuretomeetwith，whodothintheleastscrupleanyofthecommonopinions？"ThoughmanythingsarealteredsincethedaysofLocke，mankindarebutlittlechanged。Inhisdays，indeed，theprejudicesofthetimesrantowardsopinions，which，acquiesedinbymanysucceedinggenerations，were，therefore，conceivedtohavearealpluralityofjudgmentsintheirfavor。Now，onthecontrary，tohavebeenbelievedfromofold，isdeemedtoindicatedefect，andthataloneisadmittedasofapprovedstrength，whichhasnotbeensubjectedtothetestoftime。Inthis，nevertheless，thereisaperfectagreement，thatmenappealnotsomuchtotruthitself，astoprevalentopinion，andaredisposedtotreatwhateverstandsopposedtoit，asnecessarilyerroneous。Itwere，then，invainforme，Iamaware，inreplytothechargeofpresumptioninchallengingtheopinionstowhichthecelebratedauthoroftheWealthofNationshasgivencurrency，toanswer，thatitisnotso，andthat，onthecontrary，"heisthegeneralchallenger："

thathisdisciplesform，inreality，butasect，onesettingitselfinoppositiontothebeliefofallprecedingages，andinitsriseandprogresspresentingnothingdissimilartotheothernumeroussects，whichtime，initscourse，hasseenappearinganddisappearing：that，therefore，ifwereallyappealtoauthority，itsdecisionisagainst，notfor，thepresentpoliticalcreed。Suchargumentswouldcertainlyfallondeafears。Theauthority，inwhichmenacquiese，isthatwhichispresent，andtowhichtheyhavebeenaccustomedtoyieldassent。Whateverisopposedtothis，andseparatedfromitbydistanceoftimeorspace，hasnoinfluenceontheirjudgments。

But，although，insteadofassistance，Ihavetolookforopposition，fromthisquarter，Ineverthelessbelieve，thatIhaveanauxiliaryofgreatpoweronmyside。Inpoliticalquestions，beforetheyseethattheyarewrong，itiscommonformentofeelthattheyareso。TheprogressofrecenteventsseemstohaveexcitedageneralsensationofthissortoverGreatBritain。Twentyorthirtyyearsago，accordingtotheprevailingpoliticalsystem，everycircumstanceintheconditionoftheempirewasatvariancewithwhatshouldgiveprosperitytoastate。Tomeettheenormousannualexpenditureoccasionedbythemostwastefulofallprecedingwars，arevenueasenormouswasdrawnbytaxationfromthepeople，while，insteadoftheirindustryenjoyingtheboastedadvantagesofperfectfreedom，athomeitwasrestrainedbyregulationsofoldestablished，andabroaditsproductswerelegallyshutoutfromeverycontinentalport，andcouldonlyanywhereforceanentrancewithmuchhazard，andatheavyexpense。

True；makingitspowerfeltthroughtheelementthathadeverbeenmostpropitioustoit，ithadsubjugatedalmosteveryspotontheglobe，colonizedbyEuropeans，andbythismeans，indefianceofitsenemies，maintainedanextendedcommercewithallpartsoftheworld。Butthisvastextentofempire，preservedbyforceofarms，andatgreatexpense，accordingtothedictaofmodernpoliticians，wasanevilofthegreatestmagnitude，andonewhich，thoughtheburdenattendingitisnowreducedtocomparativeinsignificance，theyarecontinuallyassuringusweought，asquicklyaspossible，togetridof。

Notwithstandingallthesedisadvantages，however，thereisnoperiodinitshistoryinwhichtheconditionofGreatBritainwasapparentlymoreflourishing。Theexertionsofthelaborerwereliberallyrewarded，theexpenditureofthecapitalistrichlyrepaid。Everythinggavetokenofrapidlyincreasingwealthandabundance。

Thetriumphofthatcause，inaidofwhichwarhadbeenembraced，gavepeacetotheempireandtoEurope。Theannualexpenditurewasdiminishedbyonehalf，andthenationwasnolongerrestrained，butincomparativelyaverytriflingdegree，fromparticipatinginallthoseadvantages，which，ineveryinstance，onecountry，accordingtoprevailingnotions，issupposedtogainbyfreeintercoursewithanother。But，thoughmarketsforthemanufacture，andchannelsforthecommerceofthekingdomwerelargelymultiplied，itsresources，insteadofaugmenting，seemeddiminishing。Thewholefabricofsocietyseemedreadytosinkunderthepressureofsomenewburden，ruinbegantothreaten，oftentooverwhelmthemanofcapital，wanttolookindustryintheface。Invainweretaxestoalargeamountrepealed，invainwereendeavorsmadetotracethedepressionofthetimestomererevolutionsinthechannelsoftrade，andtoothertemporarycauses，andhopesheldoutthattheywouldspeedilypassaway。Theevilprovedtobenotpartialandtemporary，butpervadingandpermanent。Farfromconfidenceinthemodernsciencebeingshakenbyaresultcontrarytoallitsprinciples，itwasresolvedtoseekaremedyfortheacknowledgeddistress，byadoptinglargelythepolicywhichthisscienceinculcates。

Itcannotbedeniedthattheresultsoftheexperiment，asfarasithashithertobeencarried，havebeeninthewhole，unhappy。Theeventswhichhavefollowed，nottosayflowedfromrecentenactments，regulatingtheinternalandexternalcommerceofthenation，havebeenatleastunfortunate。

Theoperationsofthebankingsystem，andtheextensionofgeneralconfidenceandsecurityinalltransactions，whichthatsystemiscalculatedtoafford，seemcloggedandrestrained。Thereturnswhichindustryandcapitalreceive，havebeenstillfartherdiminished。Wealthisbarren。Labor，pliedwithalltheskill，andmorethanalltheassiduitytowhichhumannatureislongadequate，doesnotalwayskeepfamineatadistance。

Itisnaturalthatthesecircumstancesshouldbegetasortoffeelingofdoubt。That，withoutpretendingtoquestionthegeneraltruthofthesystemestablishedbyAdamSmith，manyshouldyetaskthemselves，isthepathwhichhehaspointedout，trulythatwhichalwaysleadsdirectlytothewealthofnations？Inthistemperofthepublicmind，Iaminclinedtohopethattheapplicationofnewprinciplestoareconsiderationofthewholesubject，maybeconceivedtobeanundertakingdeserving，atleastofbeingexamined，andthatthedefectsofthefollowingpagesmaynotbethoughtsufficienttopreventwhatmeasureoftruththeymaycontain，frombeingperceivedandappreciated。MONTREAL，1833。

POSTSCRIPT。

Intheprecedingpages，thereaderhasanexplanationoftheoriginaldesignoftheworkwhichIventuretoplacebeforehim；but，inpreparingitforpublicationinthiscountry，Ihavemadesomealterationsinit，thenatureofwhichitisproperIshouldherestate。

ThedoctrineswhichAdamSmithmaintainedwithsomuchability，nevertooksodeepholdinthiscountryasinEngland，andtheyhavebeenmorestronglyopposed。Thereis，hence，averyconsiderabledifferencebetweenthestateofpublicsentimentinGreatBritainandAmerica，concerningthemostinterestingpracticalquestionsofpoliticaleconomy。Thisisespeciallythecasewithregardtothepolicyoftheprotectivesystem。

Thepracticalbearingsofthatsystemontheconditionofthingsinthisrepublic，havebeendiscussedsooften，andwithsomuchability，thatprobablyfewnewargumentsorfactsconcerningitcanbebroughtforwardbyanyone，leastofallcantheybeexpectedfromaforeigner。Although，therefore，IlookontheeffectsofthepolicypursuedbythelegislatureoftheUnitedStates，asaffordingthebestpracticalillustrationhithertoexistingofthecorrectnessofsomeoftheprinciplesImaintain，Ihavescarcelyatallreferredtothemforthatpurpose，buthavecontentedmyselfwithshowinghowthebenefitsresultingfromtheoperationsofthelegislature，inthisandinothersimilarcases，aretobeaccountedfor。Ihavethusomittedmuchmatterthatwouldhaveappeared，hadtheworkbeenpublishedinEngland，butwhich，itseemedtome，wouldbeatleastsuperfluoushere。

Theseomissionsoccurinthethirdbook，whichisconsequentlymuchabridged。

TothesecondbookIhavemadesomeadditions，havinggivenfullerdevelopmenttotheprinciplesthereexplained，andtracedtheirconnexionwitheventsatgreaterlength，thanisnecessaryforthemerepurposeofexposingthefallaciesofthetheoreticalviews，therefutationofwhichwasoriginallymysoledesign。Astheadditionsweremadeintheprogressoftheworkthroughthepress，inoneortwoinstancesIhavebeenledtorefertosubjectstobeafterwardstreatedof，whichIfounditimpossibletocomprisewithinsuchlimitsaswouldadmitoftheirinsertion。Theseomissions，however，donotoccasionanybreakinthechainofreasoning。Thereare，also，sometopics，which，thoughIhaveintroduced，Ihavebutpartiallydiscussed，andmerelysofarasmayservetoshowsomeoftheirconnexionswithprinciplesexpounded。Themostimportantoftheseisthesubjectofbanking。

Boston，1834。

INTRODUCTION。

Ofallthecircumstancesconnectedwiththe"InquiryintotheWealthofNations，"thereisnoonemoreremarkablethanthefact，thatitscelebratedauthorleavesusindoubtwhathehimselfunderstandsbythatwealth，thenatureandcausesofwhichitistheobjectofhisinquirytoinvestigate。

Hisfollowershavescarcebeenmorefortunate。Theyhavesought，bydefinitions，toremedytheacknowledgeddefect，buthavebeenunabletoagreeinthetermsofthem。Theschoolisthussplitintomanylittlesectsatvariancewitheachotherregardingtheveryelementsofthescience。(1)

Itseemstomethatthiscircumstancearisesfrom，andveryclearlymarkstheexistenceof，agreatandfundamentaldefectintheprinciplesofinvestigationonwhichAdamSmithandtheschoolhefoundedproceed；anuniformtendencytoholdthatupasanexplanationofotherthings，which，inreality，istheverythingitselftobeexplained。

Itisthenatureofwealthinthegeneral，andthelawsregulatingitsincreaseanddiminution，thatcanalone，asIconceive，formthepropersubjectofphilosophicalinvestigation。Thesebeingdetermined，fromthemmaybededucedthemannerinwhichparticularsocieties，orparticularindividuals，cometopossessthisorthatamountofwealth。But，thoughsuchistheproperphilosophicalviewofthesubject，itisnotthatunderwhichitappearstocommonobservers。

Beforemenbegintospeculate，theyareobligedtoact。Theyarethereforefirstled，inregardtoanysystemwithwhichtheyhavetodo，tofixtheirattentionaltogetheronthephenomenaexhibitedbyit，withoutattemptingtoreachthecausesofthosephenomena。Itisusuallylongaftertheeventsthemselveshavethusbeenobservedandnoted，thattotracetheircausesbecomestheemploymentofphilosophers。Themeresailor，forexample，regardsthewindssimplyasconnectedwiththedifferentseasons，thevariousregionsoftheglobe，andtheparticularaspectoftheheavensatthetime。Thismakesupthesumofhisknowledgeconcerningthem，which，notwithstanding，maybeveryextensiveandofgreatpracticalutility。Itisnothisobjecttoinquireintothegeneralcausesproducingallthesephenomena，norintothelawsregulatingthegeneralsystemofthings，ofwhichtheymakeapart，andsoofascertainingthetruenatureofthedifferentwinds，therealmanneroftheirexistence，andthemeasureoftheirforceandduration。

Hebelievesthatwhilethatsystemenduresasitis，hisknowledgewillservetodirecthispractice，andthisisallaboutwhichheconcernshimself。

Anextensivepracticalknowledgeofthissortherelongprecededaphilosophicalknowledgeofthesubject。Ithasbeenthebusinessofthelatter，asithasatlasthadplace，toascertainthenatureofwinditself，andthecausesproducingalldifferentwinds，andactingonthem。Forthispurposethephilosopherhasturnedhimselftotheinvestigationofwhatever，inthegeneralsystemofthings，isconnectedwiththatconcerningwhichheinquires；totheconstitutionandpropertiesoftheatmosphere；theeffectsofchangesoftemperatureonaeriformfluids；themotionsinducedbythese，bytherotatorymovementoftheglobe，andbyothercircumstances。Fromthemhededucesthetruetheoryofwind，andshowsthatitisinaccordancewiththeobservationsandrulesofhim，whohasbeenaccustomedtoviewthesubjectinitspracticalbearingsalone，andtendstoelucidateandsimplifythem。

Inasomewhatsimilarmannerwealthwasfeltandnotedinitseffectslongbefore，asacircumstancelargelyaffectingsocieties，itwasproposedphilosophicallytoinvestigateitsnatureandcauses。Tomarkthoseeffects，richesandaseriesofothertermsofthesort，wereinvented。Likeallevery-daywordsandphrasestheyapplytoparticularfactsandoccurrences，andhavenonecessaryreferencetothecausesofthosefactsandoccurrences。

Allsuchspeculationsareforeigntomerepractice，andneverenterevenintotheexplanationsandreasoningsofthemerelypracticalman。Howevercomplicatedthesocialsystemofwhichanypersonengagedintheacquisitionofwealthmakesapart，hehasnodifficultyintracingthemannerinwhichthatportionofitwhichhepossesseshasbeenacquired，norinexplaininghowitformstohimacertainamountofwhathecallscapital。Butingivingthisexplanation，itwillbeobservedthatfortheelementsofhisstatements，hehasalwaysrecoursetotheexistenceandcontinuanceofcertaincircumstancesandregulartrainsofeventsinthegeneralsystemofhumansociety。Whatthethingsmaybewhichgiveoriginandregularsuccessiontotheseeventsisaspeculationlyingoutofhisroad，andonwhichheprobablyneverenters。Though，therefore，hecaneasilytellhowhegotthatwhichconstituteshiswealth，andhowtohimitcomestobewealth，hewillyetprobablyconfessthatheisunabletosaywhatconstituteswealthingeneral，fromwhenceitisderived，orwhataretheexactlawsregulatingitsincreaseordiminution。Thesearequestionsofwhichthesolutionisveryclearlyshowntobeofgreatdifficultyfromthemassofdiscordantopinionsconcerningthem。(2)

AdamSmith，inthisandinotherinstances，bytransferring，withouthesitation，termsmadeuseoftomarkandexplaintheaffairsofcommonlifetodenotethegreatphenomenawhichtheaffairsofsocietiespresent，falls，asitseemstome，intotwoerrors。Inthefirstplace，heinagreatmeasuremissesthatwhichistherealobjectatwhichhisinquiryaims，theinvestigationofthetruenatureandcausesofnationalwealth，andshows，byholdingoutsometimesonenotionofitandsometimesanother，accordingtothedifferentlightsinwhichatdifferenttimesthesubjectpresentsitselftohim，thathehasnoverydefiniteideasconcerningit。

Inthesecondplace，henaturally，andinverymanyinstances，fallsintotheerroroftaking，whatintrutharetheresultsofgenerallawsgoverningthecourseofthisclassofeventsforthelawsthemselves，andsoofelevatingeffectsintocauses。Hisprocedureisnotverydissimilartowhatthatofaphilosopherwouldhavebeen，who，desiringtoinvestigatethenatureofwind，shouldhaveassumeditasalreadyknown，notasanevent，butasathing，andshouldhaveconceivedithisbusinessmerelytoconnectandarrangethevariousphenomenainrelationtoit，withwhichpracticehadpreviouslymademankindfamiliar。Suchasystemcouldnothavefailedtohaveembodiedgreatradicaldefects，foritwouldhavebeenbuiltonprinciplesfundamentallyerroneous。

Hisfollowers，bytheusetheymakeofdefinitions，appeartomerathertohaveintroducednewevils，thantohaveappliedaremedytothosealreadyexisting。Definitionsgiveusthemasteryofwords，notofthings，(3)andthereforebytakingthemastheyhavedone，forprinciplesofinvestigation，notauxiliariestoit，theirlaborshavegenerallyissuedinadducingargumentsinsteadofcollectingandarrangingfacts，theformerbeingtheproperfruitofanattentiontowords，thelatterofaninquiryintothenatureofthings。

IconceivethatthefallaciesoftheparticulardoctrinesIopposemaybemosteffectuallyexposed，bytracingoutthetruenatureofthatwealth，themanneroftheaugmentationanddiminutionofwhich，formsthesubjectofcontroversy。Thatwecanneitherassumethisasathingalreadyknown，norhope，byanymereintellectualeffort，tocomprehenditinaningeniousdefinition。Thatwhenitisreallydiscovered，itmustbe，ashashappenedinotherthings，thatdisputesconcerningitsmannerofexistence，itsincreaseanddecreasewillterminate，orinsteadofhingingonplausiblearguments，maybesettledbyareferencetoascertainablefacts。Itis，therefore，suchaninvestigation，thatIproposepartiallytoattempt；

anditischieflyontheresultsofit，thatImeantorestmydemonstrationoftherealityofthoseerrors，myconvictionoftheexistenceofwhich，hasbeenmymotiveforengaginginthepresentundertaking。

Byenteringonsuchaninvestigationimmediately，however，thesubjectwouldbebroughtbeforethereaderunderanaspectsodifferentfromthatinwhichitisviewedintheWealthofNations，andsubsequentworksfollowinginthesametrainofthought，thatIshouldnothaveanopportunityofdirectlymeetingsomeoftheargumentsthereadvanced。ForthisreasonIshallfirstendeavortoshow，thatevenproceedingonsimilarprinciplestothoseadoptedintheWealthofNationsitself，thereexistgreatandinsuperableobjectionstothedoctrinesinquestion。ThisformsthesubjectoftheFirstBook。IntheSecond，Ienterontheanalysisofthenatureofwealthandthelawsgoverningitsincreaseanddiminution。TheThirdisdevotedtoapracticalapplicationtothedoctrinesinquestion，oftheprinciplesestablished。

BOOKI。INTRODUCTION。

Whenwealth，consideredinthegeneral，isconceivedtobeathingeithersoclearastorequirenodefinition，orsosimpleastobefullygraspedbyanydefinition，twodifferentandopposingsystemsnaturallyseemtoariseconcerningit。

Thewealthofalltheindividualsinastatebeing，itmaybesaid，ofnecessitymeasuredbytheamountofthenationalwealth，whateveraddstothewealthofthenationmustincreasethestocksofindividuals。Butithasalwaysbeenfoundthatnationshavebecomemostwealthywhentheyhaveengagedmostextensivelyincommerceandmanufactures。Toencouragecommerceandmanufacturesbyeverypossiblemeans，should，therefore，bethegreataimofthelegislator；andeveryenactmentandregulationofhisconducingtothiseffect，asitcannotbuttendtotheincreaseofthegeneralfunds，mustultimatelyaddtothestocksofindividuals。Thisviewofthematterleadsdirectlytoasystemofunceasingregulationandrestraint。

Again，ontheotherhand，itmaybesaid，that，asthewealthofthenationisnecessarilymadeupoftherichesofthevariousindividualsinit，sothenationalwealthmustgrowaseachindividualaddstotheportionofitwhichhepossesses。Buteveryrestraintisahindrancetoaman'sacquiringwealth，andhealwaysgainsbyevadingit。As，therefore，allinterferenceonthepartofthelegislator，operatesasarestraint，heneverinanycaseoughttointerfere。

Astheformerviewofthesubjectproducesasystemofgeneralregulationandrestraint，thisteachesthedoctrineofcompleteinactiononthepartofthelegislator，oftheremovalofallrestraint，andofperfectfreedomoftrade。

Bothsystemsproceedontheassumptionoftheexactidentityofpublicandprivatewealth；ofWealth，asitisthesameword，beingalwaysthesamething，whetherappliedtoindividualsorcommunities，andbeinginitsincreaseanddecreasesubjectedinallcasestosimilarlaws；anassumptionflowingeasilyfromtheconceptionthatitsnatureisverysimpleandmaywithoutdifficultybeapprehended。

Thelatterofthesesystems，thatadoptedbyAdamSmith，wemightexpectwouldatpresent，bemostpopularinEurope。Institutionsandformsveryoftenendureafterthecircumstancesthathadoriginallycalledthemforthhavedisappeared，andwhen，consequently，theiroperationinjuriouslyrestrainsthemovementsofsomeneworderofthings。SuchseemstheconditionofmostEuropeankingdomsatpresent。Theframeoftheirexistingconstitutionsandlawswasmouldedinremotetimes，inagesofcomparativebarbarismandsternmilitaryrule，andis，therefore，inmanypans，unsuitedtothecircumstancesofthepresentperiod。Itisperceivedthatamultitudeofabusesexist，andtheeffortsofthemajorityaredirectedtodetect，expose，anddoawaywiththem。Theprejudicesofmenofliberalmindsandenlargedviews，forevensuchmenhaveprejudices，runconsequently，rathertowardsoverthrowingandrootingout，thantoestablishingandmaintaining。Asystemofpoliticaleconomy，thefundamentalprinciplesofwhich，inculcatedthedoctrinethateveryattemptoftherulertodirecttheindustryofthecommunitywasinjurious，andthatalllawshavingthistendency，shouldbeabrogated，fellinwiththecurrentofpublicopinionandcouldnotbutdrawtoitselfalargebodyofzealousandableadvocates。ItisinthistemperthatMr。Benthamaddressesitsauthor。"Onthissubjectyouridetriumphant，andchastisetheimpertinenceofkingsandministerswithatoneofauthority，whichitrequiredacouragelikeyourstoventureupon，andageniuslikeyourstowarrantamantoassume。"(4)

Itmayberemarked，also，thatasthecircumstancesofEurope，inremoteages，producedtheformersystem，inthepresentgivepopularitytothelatter；soinNorthAmerica，whereanewformofgovernmentsuitedtothestatewhichsocietyhasthereassumed，hasbeenestablished，wemightexpect，asisthecase，thatamediumwouldbetakenbetweenthetwoextremes。(5)

Mymainobject，inthisbook，istoshowthatthatnotionoftheexactidentityofthecausesgivingrisetoindividualandnationalwealth，onwhichthereasoningsandargumentsofAdamSmithallalongdepend，iserroneous，thatconsequentlythedoctrineshehasengraftedonit，cannotbethusmaintained，andareinconsistentwithfactsadmittedbyhimself。

Chapter1OftheIdentityofIndividualInterestConsideredasaSimplePrinciple。

Ihavealreadyobservedthatthrougheverypartofhiswork，intheconductofallhisreasonsandarguments，AdamSmithblendstogethertheconsiderationoftheprocessesbywhichthecapitalsofindividualsandnationsareincreased，andalwaystreatsofthemaspreciselyidentical。

Sometimesthisisassumedasaself-evidenttruth，sometimesitisadeductionfromaningenioustheory；but，inoneshapeorother，itformsthebasisonwhichhiswholesystemisbuilt。Ifthissimpleviewofthesubjectbeadmittedascorrect，itmayveryeasilybemadetoleadtotheconclusionsatwhichheisdesirousofarriving。

Theaxiomwhichhebringsforward，thatthecapitalofasocietyisthesamewiththatofalltheindividualswhocomposeit，beinggranted，itfollowsthattoincreasethecapitalsofalltheindividualsinasocietyistoincreasethegeneralcapitalofthesociety。Itseems，therefore，alsotofollowthataseverymanisbestjudgeofisonbusinessandofthemodesinwhichhisowncapitalmaybeaugmented，sotopreventhimfromadoptingthesemodesistoobstructhiminhiseffortstoincreasehisowncapital，and，insofarashiscapitalisapartofthegeneralcapitalofthesociety，tochecktheincreaseofthatgeneralcapital；

andhence，that，asalllawsfortheregulationofcommereareinfactmeansbywhichthelegislatorpreventsindividualsconductingtheirbusinessastheythemselveswoulddeembest，theymustoperateprejudiciallyontheincreaseofindividualandsoofgeneralwealth。

Inpursuanceofthesameideaoftheperfectidentityofthemeansbywhichindividualandnationalcapitalsareincreased，theargumentisthusfurtherenforced。Accumulationisthemeansbywhichindividualcapitalisaugmented。Weknowverywellthatifanypersonspendasfastashemakes，hecannevergetricher。Whateverhisgainsarehemustsavesomepartofthem，elsehecanneveraddtohiscapital。Theamountalsoofhissavingsforanyperiodoftimemustmeasuretheaddition，which，duringthattimehemakestoiswealth。As，therefore，thecapitalofasingleindividualisincreasedbyhiscontinuallyaccumulatingandaddingtoitwhateverhesavesoutofhisrevenue，sothenationalcapital，orthecapitalofalltheindividualsinanation，isincreasedbytheseindividualscontinuallyaccumulatingandaddingtoitwhattheysaveoutoftheirrespectiverevenues。

Hencewhateverpreventsthemfrommakingthemostoftheirrespectivecapitals，ordrawingfromthemthelargestrevenue，insofarasitdeprivesthemofthepoweroflayingpastsolargeaportionofthatrevenueastheyotherwisewould，mustinalikeproportiondiminishtheirindividualaccumulations，andconsequentlythesumofalltheiraccumulations，ortheamountaddedtothenationalcapital。Butalllawsfortheregulationofcommerce，andallencouragementsgiventoparticularbranchesofindustry，doinfactpreventindividualsfromturningtheircapitalsintothechannelswhich，butfortheseregulations，theywouldpreferasofferingthelargestreturns。

Theymust，therefore，itissaid，toacertainextent，diminishindividualaccumulation，andconsequently，inanequalproportion，theincreaseofnationalcapital。

Viewing，then，thesubjectinthissimplelight，andtakingasundoubtedtruthstheassumptionsofourauthor，thatindividualandnationalwealthincreaseinthesamemanner，andthatthemannerinwhichindividualsincreasetheirrichesisbysavingfromtheirrevenues，wewouldeasilyarriveatthedoctrineheinculcates，thataseverymanisbestjudgeofhisowninterests，soheshouldbelefttopursuetheminisownway，withoutthelegislatoratallinterferingwithhisoperations，orpretendingtoaidordirectthem。

Thisverysimpleviewofthesubjectwould，however，bedefectiveintworespects。

1。Thoughitis，inthegeneral，truethatindividualsmayfindsomeemployment，bytheprosecutionofwhichtheymayprocurearevenue，andso，bysavingfromthisrevenue，acquirewealth，oraddtowhattheyhavebeforeacquired，yetitseemsnotsoclearthatitisbythismeansalonethatnationsadvance，orcanadvance，intheacquisitionofwealth；becauseitmustoccurtousthatmaterialsonwhichthenationalindustrymayheemployedaretobeprovided，andoftenareormaybewanting。

2。Itisnotaltogethercorrecttosaythatthesolemeans，whichanindividualemploystoaddtohiscapitalistheprocessofsavingfromrevenue。Itisveryevidenthemustfirstgainthisrevenue，andthattheamounthegains，andconsequentlytheamounthecansave，mustingeneraldependonthetalentsandcapacitieshepossessesfortheprosecutionoftheparticularemploymenttowhichhedevoteshimself。Asaninquiry，therefore，intothemannerinwhichanindividualmightmostrapidlyaccumulatewealth，wouldinpartresolveitselfintoanexaminationofthemodesbywhichhemightacquirethegreatestperfectionofknowledge，skill，dexterity，andothertalentsandcapacities，tendingtothesuccessfulprosecutionofhisbusiness；soaninquiryintonationalwealth，evensupposingtheprocessbywhichnationsandindividualsaddtotheirrichestobethesame，mustpartlyresolveitselfintoanexaminationofthemodesbywhichtheknowledge，skill，anddexterityofalltheindividualsinanation，inthevariousbusinessesandprofessionsthatmaybecarriedoninit，mayberaisedtothehighestpitch。

Thesetwocircumstancesrenderthesubjectmoreintricate，thanthefirstsimpleviewwemightbeinclinedtotakeofit，wouldleadustosuspect。Anattentiontotheoperationofeitherofthemwillbesufficienttoshowthatidentityoftheinterestsofindividualsandstates，whichisassumedthroughouttheWealthofNations，isnotaself-evidentprinciple。

Inthefollowingobservations，Ishall，however，confinemyselftotheformerofthem。

Individuals，itisveryclear，ingeneral，increasetheircapitalsbyacquiringalargerportionofthecommonfunds。Whileonemanisgrowingrich，anotherisbecomingpoor，andthechangeproduced，seemsnotsomuchacreationofwealth，asapassageofitfromonehandtoanother。Thesetransferhavebeengoingoninallagesoftheworldandhaveexistedequally，inwhathasbeencalledtheadvancing，thestationary，andthedecliningstagesofsociety。Everywherethismeansofacquiringwealthisopentoindividuals，andtheyeverywhereavailthemselvesofit。LetanyoneinanycountryinGreatBritainforinstance，tracebackwardsforfifteenortwentyyearsthemutationsthathaveoccurredinthefortunesofthepersonswithwhomheisacquainted，andhewillfindthattherearefew，whosecircumstancesarenotverymuchchangedfromwhattheythenwere。

Goodconduct，goodfortune，andfrugalityhavemademanyrichwhowerethenpoor；imprudence，misfortune，prodigalityhavemademanypoorwhowerethenrich。

Butwhilethatmanhasthusbeenaddinghousetohouse，andfarmtofarm，andthishasbeengivinguponeportionofpropertyafteranother，tillhefindsallheoncepossessedinthehandsofothers，thewholemassofhouses，landsandwealth，hasundergonebutlittlealteration；thenationalcapitalitself，remains，comparatively，butlittlechanged。Itisnotbythusacquiringwealthpreviouslyinthepossessionofothers，thatnationsenrichthemselves。Butaverysmallpartofthecapitalofanycommunity，can，Isuspect，beaccountedfor，bytracingitspassagefromanyothercommunity。Insteadofonenationgrowingrich，andanotherpoor，weratherseemanyneighboringnationsadvancingatthesamepacetowardsprosperityandaffluence，ordecliningequally，tomiseryandwant。Asindividualsseemgenerallytogrowrichbygraspingalargerandlargerportionofthewealthalreadyinexistence，nationsdosobytheproductionofwealththatdidnotpreviouslyexist。Thetwoprocessesdifferinthis，thattheoneisanacquisition，theotheracreation。

Exnihilfit。Nothingcanspringoutofnothing。Everythingthatexistsmusthaveacause。Aswedonotseethatindividualsincreasetheirwealthbycreatingnewwealth，wedonotthinkofinquiringhowtherichesofanindividualcametoexist，buthowtheycameintohispossession。

Butasvedonotseehownationscanincreasetheirwealth，butbycreatingnewwealth，wenaturallyinquire，whatarethecausesofthewealthofnations。

AdamSmithasserts，andasIthinktrulyasserts，thatthesecausesaretobefoundintheimprovementoftheproductivepowersofhumanlabor。

Men，andthereforenations，aresaidtoberichorpooraccordingtothedegreeinwhichtheycanaffordtoenjoythenecessaries，conveniences，andamusementsofhumanlife。Butasitistheannuallaborofthenationwhichsuppliesthesenecessaries，conveniencesandamusements；soasthislaboriswellorilldirected，thesupplyitaffordsmustbegreatorsmall。

Theskill，dexterity，andjudgmentwithwhichlaborisapplied；thatis，Ipresume，thefacilityoftheoperationswhichitemploysforexecutingitsends，andtheaccuracywithwhichitconductsthem，mustconsequentlymainlyregulatetheamountwhichitproduces。Thustheincreaseoftheskill，dexterityandjudgmentwithwhichthenationallaborisapplied，furnishesuswithacausefortheincreasedproductivepowersofthatlabor，andsofortheincreaseofthenationalwealth。

Thisaccountofmatterswillbefoundsufficientlytoagreewiththeideaswhichthecontemplationoftheirprogressforcesoneveryone。Whenwearetoldthatanindividualthisyearemploysinagriculturedoublethecapitalwhichheemployedlastyear，theconceptionwhichmostreadilypresentsitselftousis，thathenowfarmsdoublethelandwhichhethenfarmed，ownsdoublethenumberofhorses，cattle，farmingutensils，etc。

andhasdoublethenumberofbarnsandothernecessarybuildings。Whenwearetoldthatacountryhasdoubletheagriculturalcapitalwhichithadacenturyago，wecannot，ofcourse，conceivethatitsfarmsaredoubletheextenttheythenwere；neitherdoweconceivethatitsfarmershavesimplydoublethenumberofbarnsandotherbuildings，ofcattle，ploughs，harrows，andotherfarmingutensils，whichtheythenhad。Weconceiveachangeinthemodeinwhichitsfieldsarelaidoutandtilled；intheformandqualitiesofthestock；intheconstructionofalltheimplementsofhusbandry；inthesizeandarrangementofthebarnsandotherbuildings，andthatthroughthesechangesthenationalagriculturallaborproducesatleastdoubletheproductsitformerlydid。Itisthischangenecessarilyinvolvedinourconceptionoftheprocessbywhichnationsincreasetheircapitals，andnotnecessarilyinvolvedintheprocessbywhichindividualsincreasetheircapitals，thatconstitutesthedifferencebetweenthem。(6)

Thoughtheyarethusessentiallydifferent，thereareneverthelesstwopointsinwhichtheyagree。Whenestimatedingold，silver，oranyotherinstrumentofexchange，thesumatwhichtheagriculturalpropertypresentlypossessedbytheindividualwouldberatedwouldbedoublethatatwhichwhatwasformerlyinhispossessionwasrated。Thesum，also，atwhichthepresentagriculturalpropertyofthenationwouldberatedwouldbedoublethatatwhichitwasformerlyrated。Thethings，too，thatsoestimatedformedtheincreaseinboth，wouldhavebeenproducedbyman：theywouldbehisworks。Butthoughtwothingsmaybothbeestimatedasworthasumofmoney，andmaybothbeworksofman，itfollowsnotthattheprincipleswhichhaveproducedthemareperfectlysimilar。ThepoemofChildrenHaroldcostthepublisheracertainsum；sodidthepaperonwhichitwasprinted。

Theyboth，too，wereworksofman，andrequiredmentalandcorporealenergytoproducethem；butweshouldnot，therefore，saytheprinciplesthatproducedthemwerepreciselysimilar。

WithinafewcenturiesthenationalcapitalofGreatBritainhasincreasedtenfold。Couldweimaginethatwecouldtellthisfacttosomeoneofthemenoftheoldentime，wakedfromtheslumberofthetombandraiseduptous，wemaysupposehewouldaskhowitcouldbe；howtherecouldhavebeenproducedsomightyachange；orfromwhencesofullatideofwealthcouldhaveflowedinuponus。Butwerewethentotakehimabroadandshowhimthewondersandachievementsofartwithwhichthelandisoverspread；

thevariousprocessescarriedoninourmanufactoriesandworkshops；thescientificlaborsoftheagriculturist；thecuriousmechanismwithwhichthevastbulkofourshipsisputtogetherandguided；fireandwatertransformedintoourobedientdrudges，excavatingharborsanddrainingminesforus，carryingusoverthelandwiththespeedofthewind，bearingusthroughtheoceanagainsttideandstorm；hewouldnolongerwonderwhencethewealthwasthathesawaround，orthatthelandyieldedtenfoldwhatithaddoneofold，thoughhemightwelldemandhowthepowerhadbeenacquiredthathadwroughtsogreatachange。

Weresuchathingpossibleaswearethusimaginingwecanscarcesupposethatanyonewouldbefoundtoreply，thewholeprocessisnothingextraordinary；

itisjustthesameasyoumusthaveseeninyourowndays，when，bycontinualparsimonioussaving，anindividualaccumulatedtentimesthecapitalheoncehad；hebegan，perhaps，withonehouseanddiedowingten。Suchanassertionwouldevidentlybeabsurd。

Inventionistheonlypoweronearth，thatcanbesaidtocreate。(7)

Itentersasanessentialelementintotheprocessoftheincreaseofnationalwealth，becausethatprocessisacreation，notanacquisition。

Itdoesnotnecessarilyenterintotheprocessoftheincreaseofindividualwealth，becausethatmaybesimplyanacquisition，notacreation。Theassumption，therefore，thatthetwoprocessesareperfectlysimilarisincorrect，andthedoctrinewhichIhavedesignatedasthatoftheidentityoftheinterestsofindividualsandcommunitiescannotbethusestablished。

Theendswhichindividualsandnationspursue，aredifferent。Theobjectoftheoneistoacquire，oftheothertocreate。Themeanswhichtheyemploy，arealsodifferent；industryandparsimonyincreasethecapitalsofindividuals；nationalwealth，understoodinitslargestandtruestsense，asthewealthofallnationscannotbeincreased，butthroughtheaidalsooftheinventivefaculty。Thougheachmemberofacommunitymaybedesirousofthegoodofall，yetingainingwealth，asheonlyseekshisowngood，andashemaygainitbyacquiringaportionofthewealthalreadyinexistence，itfollowsnotthathecreateswealth。Thecommunityaddstoitswealthbycreatingwealth，andifweunderstandbythelegislatorthepoweractingforthecommunity，itseemsnotabsurdorunreasonablethatheshoulddirectpartoftheenergiesofthecommunitytowardsthefurtheranceofthispowerofinvention，thisnecessaryelementintheproductionofthewealthofnations。

Inthefollowingcasesitwouldatleastseemnotimprobable，thatthepowerofthelegislatorsodirected，mightbebeneficial。

I。Inpromotingtheprogressofscience。

II。Inpromotingtheprogressofart。

1。Byencouragingthediscoveryofnewarts。

2。Byencouragingthediscoveryofimprovementsintheartsalreadypractisedinthecountry。

3。Byencouragingthediscoveryofmethodsofadaptingarts，alreadypractisedinothercountriestotheparticularcircumstancesoftheterritoryandcommunityforwhichhelegislates。

Intheattainmentofalltheseobjects，theaidoftheinventivefacultyisrequired。Ourjudgmentoftheirproprietyorimpropriety，asfarasthisisdeterminedbytheirdirecttendencytopromotethewealthofthecommunity，wouldseemtodependontwocircumstances。1。Ontheprobabilityoftheirsuccess，andofthissuccessenablingtheindustryofitsmemberstoacquirewithincreasedfacilitysomeofthenecessaries，conveniences，oramusementsoflife，thecapacityforproducingwhich，measuresthegeneralrevenueandriches。2。Ontheprobabilityofthefuturewealthtobederivedfromthisnewsource，beingsufficienttorepaytheexpenditureofpresentwealthnecessarytoopenitup。

Asfarasanyconsiderations，whichIhaveasyetpresentedtothereader，warrantusinformingaconclusion，itcertainlydoesappearnotimpossible，orunlikely，thattheremightbeinstancesinwhichthelegislatormight，withadvantagetotheprogressofthewealthofthecommunity，directtheenergiesofsomeofitsmemberstowardsdiscoveriesinallthesedifferentdepartmentsofknowledgeandaction。

Butindoingso，healwaysactscontrarytothisdoctrine。Itteachesthatheoughtnevertodisturbthenaturalcourseofevents；thatis，thecoursewhichtheeffortsofindividuals，uninterferedwith，byhim，wouldgivetotheseevents。Hisagencysodirected，accordingtothisdoctrine，mustbeinjurious；because，ineveryinstance，itinpartchangesthedirection，andinpartretardstheprogressofthenaturalcourseofevents。Ineverysuchinstance，hedirectstheindustryofsomeofthemembersofthesocietyfromgainingarevenuebythepracticeofoldartsandsoaccumulatingcapital，tothediscoveryeitherofmaterialsfornewarts，orofmeansofadaptingoldonestonewcountries。Bydoingso，hetakesfromthenationalrevenue，andretards，consequently，theaccumulationofthenationalcapital。

Thisdoctrine，asgivenbyAdamSmith，isingeneral，blendedwiththeoreticalprinciplesafterwardstobeconsidered。Thefollowingisanabstractofit，inhisownwords，fromdifferentpartsofhissystem，separatedfromtheseprinciples。

"Thecapitalofalltheindividualsinanationisincreasedinthesamemannerasthatofasingleindividual，bytheircontinuallyaccumulatingandaddingtoitwhatevertheysaveoutoftheirrevenue。(8)Asthenationalcapitalisthusincreasedbyparsimony，soitisdiminishedbyprodigalityadmisconduct。Theconductofthosewhoseexpensejustequalstheirrevenue，withouteitheraccumulatingorencroaching，neitherincreasesnordiminishesit。Itcanseldomhappenthatthecircumstancesofagreatnationcabemuchaffectedbytheprodigalityofindividuals；theprofusionofsome，beingalwaysmorethancompensatedbythefrugalityandgoodconductofothers。Menarepromptedtoexpense，bythedesireofpresentenjoyment，apassiononlymomentaryandoccasional。Theyarepromptedtosavebythedesireofbetteringtheircondition，apassionwhichcomeswiththemfromthewomb，andneverleavesthemtilltheygotothegrave。Inthewholecourseoflifeofthegreaterpartofmen，therefore，thoughtheprincipleofexpenseprevailsoccasionally，yettheprincipleoffrugalitypredominates，andpredominatesverygreatly。(9)

"Theprincipleexcitingtofrugality，theuniform，constant，anduninterruptedeffortofeverymatobetterhiscondition，producesbothpublicandnational，aswellasprivateopulence，andisfrequentlymorethansufficientlypowerfultocounteracttheextravaganceofgovernment，andthegreatesterrorsofadministration。Liketheunknownprincipleofanimallife，itfrequentlyrestoreshealthandvigortotheconstitution，inspite，notonlyofthedisease，butoftheabsurdprescriptionsofthedoctor。(10)Aloneandwithoutanyassistance，itiscapable，notonlyofcarryingonthesocietytowealthandprosperity，butofsurmountingahundredimpertinentobstructionswithwhichthefollyofhumanlawstoooftenencumbersitsoperations。"(11)

Thereaderwillperceive，thatthewholeforceoftheseargumentsliesintheassumption，thattheprocessoftheincreaseofnationalcapital，ispreciselythesameasthatoftheincreaseofindividualcapital。

TheobservationofBaconisnowtrite，thatmenbelievethatthewordstheyemployintheprocessofreasoning，servetheintellectasmerepassiveinstruments，butthat，inreality，theyhaveoftenanactivereflexpower，throughwhich，whiletheminddeemsitgovernsthem，theyareenabledtousurpthecommandofit，andsomisdirectitscourse。

Ourauthornoticestheerrors，which，inthisway，havearisenfromtheuseofthetermmoney。

"Money，incommonlanguage，asIhavealreadyobserved，frequentlysignifieswealth；andthisambiguityofexpressionhasrenderedthispopularnotionsofamiliartous，thateventheywhoareconvincedofitsabsurdity，areveryapttoforgettheirownprinciples，and，inthecourseoftheirreasons，totakeitforgrantedasacertainandundeniabletruth。SomeofthebestEnglishwritersuponcommercesetoutwithobserving，thatthewealthofacountryconsists，notinitsgoldandsilveronly，butinitslands，houses，andconsumablegoodsofalldifferentkinds。Inthecourseoftheirreasons，however，thelands，houses，andconsumablegoods，seemtoslipoutoftheirmemory；andthestrainoftheirargumentfrequentlysupposesthatallwealthconsistsingoldandsilver，andthattomultiplythosemetals，isthegreatobjectofnationalindustryandcommerce。"(12)

Itisremarkablethat，intheuseofthetermcapital，hehimselfleadshisreadersintoasomewhatsimilarerror。Capitalmeansincommonlanguageasumofmoney，orsomethingforwhichasumofmoneycanbegot；and，astheincreasebothofnationalandindividualcapitalproducesasumofmoney，orsomethingforwhichasumofmoneycanbegot，thesimilarestimationofbothbyarowoffiguresisthethingthatinthiswaynaturallycomesuppermosttothemind，andhence，thethingsthemselvesinbothcasesformingtheincreasenotbeingimmediatelypresenttoitsthoughts，itheedlesslyfallsintotheconclusionthattheyalsoareperfectlysimilar。

Incomparingindeedthenationalcapitalasithasexistedatdistantperiods，thesmallnationalcapitalofremoteperiodswiththelargenationalcapitalofthepresent，weimmediatelyperceive，thatnotonlythesumatwhichthenationalwealthwasformerlyratedisincreased，butthatthethingswhichconstituteditarechanged。ThewealthofEnglandiscertainlytentimesnowwhatitwasinthereignofHenrytheVIII；wedonotconceive，however，thatitisformedbythemultiplyingtenfoldsucharticlesasconstitutedthesolerichesofitsinhabitantsinthatsomewhatrudeandbarbarousage。Weperceivehere，thatthereis，andmustbe，notonlyanincrease，butachange。When，however，wecometoconsiderthesmallerpartsofwhichthisincreaseisgraduallymadeup，asthechangehereisnotperhapsperceptible，andasallweseeisthesumproducedbyit，thefactoftheincreasebeingmoreeasilyascertainedthanthemannerofit，thesimilarityofthetermsnaturallyinclinesustoconceivethatitresemblestheincreaseofindividualcapital，andconsistsofamereincreaseofthings，notofachangealsointhem。Wouldwetaketimetoconsiderofit，wemustperceivethatsuchanincreaseofnationalcapitalasindividualsmakeofindividualcapital，is，atleast，unlikely，seeingthereisnoapparentcauseforit。Consideringcapitalingeneral，theonlyusewecandiscoverforitisitsenablingthecommunitytodrawfromtheresourcesthecountryaffords，thenecessaries，conveniences，andamusementsoflife，itssupplyofwhich，accordingtoourauthor，constitutesitsrealwealth。

Itisonlysofarasitisinstrumentaltothisendthatwecanseeause，andthereforefindareason，foritsexistence。Now，asoneindividualismoreprovidentandprudentthananother，wecaneasilyconceivehowonemaycometoprocureforhimselfagreatersharethananotherofthenationalfunds，themeans，orinstruments，servingtounlockthestoreswhichthenationpossesses；butitisnotsoeasytoconceivehow，orforwhatpurpose，ageneralincreaseofthesemeansorinstrumentsshouldtakeplacewithoutsomeaccompanyingdiscoveryofanimprovementintheirconstructionbywhichtheymayputadditionalstoreswithinreachofthenation。

Wemayeasilyperceivethis，byattendingtoanyofthenumeroussmallitemsofwhichthenationalcapitaliscomposed。Ishalltakeanexampleofaverysmallone。TheonlyinstrumentusedforthreshingoutgraininGreatBritain，untilofrecentyears，wastheflail。Henceoneormoreflailsformedapart，thoughasmallpart，ofeveryfarmer'scapital，andthereforealltheflailsthatallthefarmershad，apart，thoughanexceedinglyinconsiderablepart，ofthenationalcapital。Sosimpleaninstrumentandonesoeasilyformed，wasmade，Ibelieve，generally，bythefarmerorhisservants，thoughsometimes，byprofessedmechanics。Inwhateverwayfabricated，itisevident，however，thatthenumberofflailsmade，thoughfromtheconvenienceofhavingasupplyprovidedbeforehandtheywouldexceed，couldnevermuchexceed，thenumberofpersonsemployedintheoperationofthreshing。Aprofessedflail-makerindeed，ifdiligentandintelligent，might，bytheaidofthesequalities，havebeenabletomakethemcheaperthanhisneighbors，and，ifeconomical，toextendhisbusinessandcometohavesomeamountofcapitalinthisshape。But，thoughthus，byhisindustryandfrugality，anindividualmighthaveaccumulatedcapitalunderthisformtoanextenttowhichwecansetnopreciselimits，thenationalcapitalnevercouldhavebeensoincreased，because，ifonepersonbygreaterdiligenceandactivity，mademoreflails，another，fromadeficiencyofthesequalities，wouldmakefewer；or，ifwesupposeallthemakersoftheinstrumenttobealikeindustrious，andthusthestockofittoaccumulate，soastodomorethansupplythewantsofthethreshers，thearticlewouldremainontheirhands，andtheywouldnaturallyceasetoproducethesuperabundantsupply。While，therefore，theinstrumentretainedthislessperfectform，itis，Ithink，prettyevident，that，thoughindividualsmightaccumulatecapitalbymakingflails，neitherthenationalcapital，northenationalrevenue，wouldbemuchincreasedbytheireffortssodirected。

Aboutfortyyearsago，theeasierandmoreperfectmethodofexecutingthisprocess，bywhatiscalledthethreshingmachine，wasinvented。Thesenewinstruments，thoughfarmoreexpensivethantheformer，yet，performingtheoperationmoreeffectually，andwithmuchlesslabor，becamenaturallythingswhichfarmersweredesirousofhaving。Afarmercouldhavehadnomotivetoaccumulatebutaverytriflingcapitalintheshapeofflails，becausehalfadozenwereasusefultohimashalfathousand；buthehadagreatmotivetoaccumulateaconsiderablecapitalintheshapeofathreshingmachine，becauseitwouldsavehimmuchannualexpenditureoflabor，andtheoperationsoperformed，separatingthegrainmoreeffectually，wouldgivehimasmalladditiontothecornyieldedbyhissubsequentcrops。

Accordinglyitsinventionwasfollowedbytheaccumulationinthisform，ofalargeamountofcapital，andsobyanincreaseofthewholeagriculturalcapitalofthenation。But，besidesthisdirecteffect，thesavingitproducedinoneofthemainprocessesofagricultureaugmentedtheprofitsofthefarmers，andtended，therefore，tomakeallfarmerscultivatetheirfarmsmoreperfectly，andsometoengageinimprovinglandnotbeforecultivated。

Boththedirectandtheindirecteffectsofthisinvention，therefore，musthavehelped，innoinconsiderabledegree，toaugmenttheagriculturalcapital，andsothewholecapitalofthenation。

"Itreadilyoccurstoeveryindividualthatthequantityofhardware，thenumberofpotsandpans，isineverycountrylimitedbytheusewhichthereisforthem；thatitwouldbeabsurdtohavemoreofsuchutensilsthanarenecessaryforcookingthevictualsusuallyconsumedthere；andthat，ifthequantityofvictualsweretoincrease，thenumberofpotsandpanswouldreadilyincreasealongwithit；apartoftheincreasedquantityofvictualsbeingemployedinpurchasingthem，orinmaintaininganadditionalnumberofworkmenwhosebusinessitwastomakethem。"(13)But，thoughthenationalcapitalcannotthusbesupposedtoaccumulateintheshapeofanadditionalnumberofpotsandpans，individualswhodealinhardwarefrequentlyaccumulatecapitalsinthisshape，toalargeamount。Wecaneasilyconceive，thatthenationalcapitalalso，mightaccumulateinthisshape，weresomediscovery，producinganimprovementinthemanufacture，tooccur。Wereamethoddiscoveredofprocuringandmanufacturingplatina，orsomemetalsimilartoit，atonlyfourorfivetimesthecostofbrass，itwould，withoutdoubt，beemployedinthefabricationofkitchenutensilsofallsorts。Notbeingactedonbyfire，andotherdestroyingagents，itwouldsaveagreatdealofthedrudgeryofthekitchen，and，thoughmorecostlyatfirst，wouldprobably，onthewhole，bepreferredbygoodeconomists。Thus，potsandpansbecomingmoreexpensivearticles，theamountofnationalcapital，orstock，accumulatedinthem，wouldbemuchgreater，and，throughthisimprovement，thewholenationalcapitalwould，withadvantagetothesociety，besomewhataugmented。

Ifanyonewill，inasimilarmanner，consideranyoftheotherarticleswhichhelptomakeupthenationalcapital，Ithinkhewillhavedifficultyinassigningasufficientreason，fromanyoftheviewspresentedintheWealthofNations，foritsincrease，unlessheconnectthisincrease，somehoworanother，withsomeimprovementintheparticulardepartmentofindustryofwhichitsproductionmakesapart，orinsomeotherdepartmentdependentonit。Hewillperceive，that，thoughthereisnodifficultyinconceivingthatanindividualmayaccumulateaverylargecapitalintheformofanyofthosearticlesorcommodities，thetotalofwhichmakeupthenationalcapital；withtheexception，perhaps，ofmoneyitself，thereisdifficultyindiscoveringareasonfortheaccumulationofanyofthem，throughoutthewholecommunity，soastoformanysensibleadditiontothenationalcapital。

Itmayperhapsappear，that，inwhatevershapetheindividualmembersofthecommunitymayaccumulatecapital，yet，thattheeffortsofthegreaternumberbeingthusdirected，theymightaccumulateitundersomeshapeoranother。Wearenot，however，itwillberecollected，herediscussingapossibility，butaself-evidentprinciple；notwhatmightbe，butwhatmustbe。Now，thereisnonecessityforimaginingthatthismustbethecase，for，withoutenteringatallintotheminutiaeofthesubject，itisnotdifficulttoperceivethattheactionoftheprinciplewhichpromptstosave，itselfbringsaboutastateofthings，whichdiminishesthedesiretosave。Apersonmustbemostdesirousofgettingmoneywhenheperceives，thatbytheacquisitionofit，hecouldmakeagreatdealoutofit；when。

Itismanifesttohim，that，ifhehadasufficientcapital，hecouldenteronsomebranchofbusinessthatwouldbeveryprofitable。Whenanopeningofthissortpresentsitselftoaprudentandenterprising，thoughpoorman，theexertionshemakestogathertogetherasmallsumaresometimesalmostincredible。But，iftheprincipleweretoprevailsogenerallyastofillupeverybranchofbusinesswithinthesociety，thedesiretoacquirecapitalsoastoenteronsomeoftheparticularbusinessescarriedoninthesocietywouldnaturallybediminishedthroughoutthewholecountryandthisgeneraldiminutionofthemotivestoaccumulate，mightbesufficienttopreservethenationalcapitalwithintheboundsithadacquired，andpreventit，foratime，fromgainingfartherincrease。

Noristhereanythingintheappearanceofhumanaffairs，whichshouldinduceustoconclude，thattheincreaseofnationalcapitaleverdoes，infact，proceed，unlessinconjunctionwithsomesuccessfuleffortoftheinventivefaculty，someimprovementofsomeoftheemploymentsformerlypractisedinthecommunity，orsomediscoveryofnewarts。Ifwecastoureyesovertheresults，whicheitherreadingorobservationpresentstous，concerningtheconditionofdifferentnations，wegatherfromourreview，thatmanyofthem，inregardtotheacquisitionofwealth，haveapparentlyremainedstationaryforages，althoughundisturbedbyexternalviolence，andunmolestedbyinternaltumults。Duringallthetime，however，theprocessofindividualaccumulationwasgoingon；menwerecontinuallyrisingfrompovertytoaffluence，foundingfamilies，andleavingwealthtotheirdescendants；

butthiswealthpassedawayfromthem；whatthefathergatheredwasnotabletomaintainhisrace，andtheygraduallysanktotherankfromwhichhehademerged。Theproportion，meantime，betweenrichandpoor，andthetotalwealthofthecommunity，remainedbutlittlechanged。

Atlength，insomequarteroranother，animprovementbegantobeperceived。

Whatdowefindtohavebeenthemostprominentaccompanimentofthischange？

Isitadiminishedexpenditure——anincreasedparsimony——afrugalitybeforeunknown？Ibelievenot。Anygreatdiminutionoftheexpenditureofawholecommunity，itwillbefounddifficulttotrace，butweshallalwaysdiscoverthatinventionhassomehoworanotherbeenbusy，eitherinimprovingagricultureandtheotheroldarts，orindiscoveringnewones。

Itisonlywhensomegreatandstrikingimprovementissuesfromtheexertionsoftheinventivepower，thatweingeneral，attendtoitseffects。

Everyonereadilygrants，that，butfortheinventionofthesteamengine，thecapitalofGreatBritainwouldwantmuchofitspresentvastamount。

Weperceivenotsoreadilythenumeroussmallimprovements，whichhavebeengradually，fromyeartoyear，spreadingthemselvesthrougheverydepartmentofthenationalindustry。But，thoughnotsopalpablyforcedonourobservation，wepassthemby，theyneverthelessexist，andsufficientlyaccountforthemannerinwhichthenationalcapitalhasbeenaugmenting，bybeinggraduallyaccumulatinginthem，withoutthenecessityofsupposingthatiteverhasaugmentedpreciselyasthatofindividualsgenerallydoes，hyasimplemultiplication，underthesameform，ofanyoralltheitems，ofwhichitsamountwasbeforemadeup。

AdamSmithhimselfadmits，thatacountrymaycometobefullystockedinproportiontoallthebusinessithastotransact，andhaveasgreataquantityofstockemployed，ineveryparticularbranch，asthenatureandextentoftheterritorywilladmit。HespeaksofHollandalso，asacountrywhichhadthennearlyacquireditsfullcomplimentofriches；where，ineveryparticularbranchofbusiness，therewasthegreatestquantityofstockthatcouldbeemployedinit。(14)Itwouldthenappearthat，evenaccordingtohim，theprincipleofindividualaccumulation，asameansofadvancingthenationalcapital，haslimitsbeyondwhichitcannotpass。Thesamecannotbesaidofthatincreasewhichisderivedfromtheattainmentofthoseobjectsatwhichtheinventivefacultyaims。HadHolland，sixtyyearsago，beenputinpossessionoftheastonishingimprovementsinmechanicalandmanufacturingindustry，which，sincethatperiod，havesprungupinGreatBritain，whocansupposethatshewouldhavewantedabilitytocontinueinthesuccessfulpursuitofwealth；or，thatshewouldnothavestartedforwardwithfreshvigorinthecareer，andadvancedinitwithgreaterrapiditythaninanyformerperiodofherhistory？Thereisnoavoidingtheadmission，that，toeverygreatadvancewhichnationsmakeintheacquisitionofwealth，itisnecessarythatinventionleadingtoimprovementshouldlenditsaid；and，grantingthis，itnecessarilyfollows，aswhenonecauseisdiscoveredsufficienttoaccountforthephenomena，weshouldconfineourselvestoit，thatwearenotwarrantedtoassumethattheymakeeventhesmallestsensibleprogresswithouttheaidofthesamefaculty。

Tothisgeneralobservationthereareonlytwoapparentexceptions。

Theprogressofcommercebytheincreaseofsomeparticularbranchofit，orbytheopeningoffreshbranches；andthesettlementofnewcountries。

Ifthese，however，shouldbeesteemedexceptionstotheobservationwithregardtoanyparticularnationornations，theyareextensionsofitwithregardtoallthenationsoftheearth；implyingthattheincreaseofgeneralwealthisconnectedwiththegeneralspreadofinvention，orinventions，overtheworld。

Theprinciple，therefore，oftheidentityoftheinterestsofnationsandindividualsisbynomeansaself-evidentprinciple。Theidentityoftheirinterestscanonlyfollowfromtheidentityoftheendswhichtheypursue；buttheseendsbeing，asfaraswecansee，identicalonlyinname，andinrealitynotidentical，thepresumptionratheris，thatthemeansalsobywhichtheyarearrivedatarenotidentical。

Itseemstome，thatitrequiresverylittlepausingupontheexaminationofthisprincipletoperceiveitsinconclusivenessasanargument。Itisaprinciple，nevertheless，which，likeotherpopulardoctrinesfoundedmerelyontheambiguityofaword，hasbeenverymuchinsistedon，andmeetsoneinallvarietyofshapes。Onthisaccount，thereadermayperhapsexcuseme，fordetaininghimalittlelongerontheconsiderationofit，bybringingbeforehimapassagefromourauthor，whichmayservetoexposeitsunsoundness，byshowinghoweasilyitmaybemadetoleadtothemostobviousfallacies。"TheannualproduceofthelandandlaborofEnglandiscertainlymuchgreaterthanitwasmorethanacenturyagoattherestorationofCharlesII。Itwascertainlymuchgreaterattherestorationthanwecansupposeittohavebeenaboutahundredyearsbefore，attheaccessionofElizabeth。Atthisperiod，too，wehavereasontobelieve，thecountrywasmuchmoreadvancedinimprovementthanithadbeenaboutacenturybefore，towardsthecloseofthedissensionsbetweenthehousesofYorkandLancaster。EventhenitwasprobablyinabetterconditionthanithadbeenattheNormanConquest；andattheNormanConquest，thanduringtheconfusionoftheSaxonHeptarchy。EvenatthisearlyperioditwascertainlyamoreimprovedcountrythanattheinvasionofJuliusCaesar，whenitsinhabitantswerenearlyinthesamestatewiththesavagesinNorthAmerica。

"Ineachoftheseperiods，however，therewasnotonlymuchprivateandpublicprofusion，manyexpensiveandunnecessarywars，greatperversionoftheannualproducefrommaintainingproductivetomaintainunproductivehands；butsometimes，intheconfusionofcivildiscord，suchabsolutewasteanddestructionofstockasmightbesupposednotonlytoretard，asitcertainlydid，thenaturalaccumulationofriches，buttohaveleftthecountry，attheendoftheperiod，poorerthanatthebeginning。Thus，inthehappiestandmostfortunateperiodofthemall，thatwhichhaspassedsincetherestoration，howmanydisordersandmisfortuneshaveoccurred，which，couldtheyhavebeenforeseen，notonlytheimpoverishment，butthetotalruin，ofthecountrywouldhavebeenexpectedfromthem。ThefireandtheplagueofLondon，thetwoDutchwars，thedisordersoftheRevolution，thewarinIreland，thefourexpensiveFrenchwarsof1688，1702，1742，1750，togetherwiththetworebellionsof1715and1745。InthecourseofthefourFrenchwarsthenationhascontractedmorethan&pound；145，000，000ofdebt，overandabovealltheotherextraordinaryannualexpensewhichtheyoccasioned；sothatthewholecannotbecomputedatlessthan&pound；200，000，000；sogreatashareoftheannualproduceofthelandandlaborofthecountryhas，sincetheRevolution，beenemployedupondifferentoccasionsinmaintaininganextraordinarynumberofunproductivehands。Buthadnotthosewarsgiventhisparticulardirectiontosolargeacapital，thegreaterpartofitwouldnaturallyhavebeenemployedinmaintainingproductivehands，whoselaborwouldhavereplacedwithaprofitthewholevalueof。theirconsumption。Thevalueoftheannualproduceofthelandandlaborofthecountrywouldhavebeenconsiderablyincreasedbyiteveryyear，andeveryyear'sincreasewouldhaveaugmentedstillmorethatofthefollowingyear。Morehouseswouldhavebeenbuilt，morelandswouldhavebeenimproved，andthosewhichhadbeenimprovedbeforewouldhavebeenbettercultivated；moremanufactureswouldhavebeenestablished，andthosewhichhadbeenestablishedbeforewouldhavebeenmoreextended；

andtowhatheighttherealwealthandrevenueofthecountrymightbythistimehavebeenraiseditisnotperhapsveryeasyeventoimagine。"(15)

Theseconclusionswouldindeedallfollowdidindividualandnationalcapitalaugmentonpreciselythesameprinciples；butastheprogressoftheinventivefaculty，anessentialelementintheincreaseofnationalwealth，ishereleftoutofthecalculation，wehavegoodreasontodoubtitsaccuracy。

BeforethetimeoftheEssayonPopulation，argumentsandconclusionsverysimilartothesewerebroughtforwardconcerningthewasteofhumanlifeinwars，andtheconsequentamazingdiminutionofthegreatnessandprosperityofnations。Perhapsthefallacyoftheonedoctrinemaybebestexposedbystatingtheother。

"Nations，itwassaid，canonlyadvanceingreatnessandprosperityasthenumbersoftheirinhabitantsincrease。Whateverthenaturalfertilityofthesoil，howevergenialtheclimate，andhoweverwellfittedthewholecountrymaybeforthepracticeofeveryspeciesofindustry，yet，ifitbedeficientinpopulation，thesenaturalrichescanneverbeelaborated，anditmustholdapoorandinconsiderablerankinthescaleofnations。

Aconfinedandcomparativelybarrenterritory，filledwithanumerous，industriouspopulation，exceedsthemostfertileandextensivecountryscantilypeopled。Itisthepeoplethatmakethestate，itsrealricheslieinitsinhabitants。

【推荐阅读】幽幽深宫，醒来一梦似千年，重生于下堂妃身躯中的她，将如何手刃仇人? 点击阅读