Wednesday, April 23, 2014

AdamSmith. AnInquiryIntoTheNatureAndCausesOf. WealthOfTheNationsThe. Summary. Divided by the author. BookThree. ModernLibrary.1994.



1)      Of the different Progress of Opulence in different Nations
a)      Of the Natural Progress of Opulence
·        The great commerce is that between town and country, which is obviously advantageous to both.
·        The cultivation of the country must be prior to the increase of the town,
·        though the town may sometimes be distant from the country from which it derives its subsistence.
·        This order of things is favoured by the natural preference of man for agriculture.
·        Cultivators require the assistance of artificers, who settle together and form a village, and their employment augments with the improvement of the country.
·        In the American colonies an artificer who has acquired sufficient stock becomes a planter instead of manufacturing for distant sale,
·        as in countries where no uncultivated land can be procured.
·        Manufactures are naturally preferred to foreign commerce.
·        So the natural course of things is first agriculture, then manufactures, and finally foreign commerce.
·        But this order has been in many respects inverted.
b)      Of the Discouragement of Agriculture in the ancient State of Europe after the Fall of the Roman Empire
·        After the fall of the Roman Empire all the land of Western Europe was engrossed, chiefly by large proprietors.
·        Primogeniture and entails prevented the great estates being divided.
·        Primogeniture was introduced because every great landlord was a petty prince.
·        It is now unreasonable, but supports the pride of family distinctions.
·        Entails have the same origin,
·        and are now absurd.
·        Great proprietors are seldom great improvers.
·        The occupiers were not likely to improve, as they were slaves attached to the land and incapable of acquiring property.
·        Slave labour is the dearest of all.
·        At present sugar and tobacco can afford slave cultivation, corn cannot.
·        The slaves were succeeded by metayers,
·        who are very different in that they can acquire property.
·        But they could have no interest to employ stock in improvement.
·        Metayers were followed by farmers, who sometimes find it to their interest to improve when they have a lease, but leases were long insecure.
·        The forty-shilling freeholder vote in England contributes to the security of the farmer.
·        The law of Scotland is not quite so favourable.
·        In the rest of Europe the farmer is less secure.
·        Customary services were vexatious to the farmer,
·        and so also were compulsory labour on the roads,
·        purveyance,
·        and tallages.
·        Even under the best laws the farmer is at a disadvantage in improving,
·        but large farmers are the principal improvers after small proprietors.
·        The common prohibition of the export of corn and the restraints on internal trade in agricultural produce were further discouragements to agriculture.
c)      Of the Rise and Progress of Cities and Towns, after the Fall of the Roman Empire
·        The townsmen were not at first favoured more than the countrymen.
·        They were very nearly of servile condition,
·        but arrived at liberty much earlier than the country people, acquiring the farm of their town,
·        first for a term of years and afterwards in perpetuity,
·        as well as other privileges equivalent to freedom,
·        and a government of their own.
·        It seems strange that sovereigns should have abandoned the prospect of increased revenue and have erected independent republics,
·        but the towns were the natural allies of the sovereign against the lords.
·        The sovereigns who quarrelled most with the barons were the most liberal to the towns.
·        The city militia was often able to overpower the neighbouring lords, as in Italy and Switzerland.
·        In France and England the cities could not be taxed without their own consent.
·        In consequence of this greater security of the towns industry flourished and stock accumulated there earlier than in the country.
·        Cities on the seacoast or on navigable rivers are not dependent on the neighbouring country.
·        The cities of Italy were the first to grow opulent, being centrally situated and benefited by the crusades.
·        The cities imported manufactures and luxuries from richer countries, which were paid for by rude produce.
·        Demand for such manufactured articles having become considerable, their manufacture was established in the cities.
·        All countries have some manufactures.
·        Sometimes manufactures for distant sale are introduced in imitation of foreign manufactures.
·        Sometimes they have grown up out of the coarser home manufactures.
d)      How the Commerce of the Towns contributed to the Improvement of the Country
·        The rise of towns benefited the country,
·        because they affected (1) a ready market for its produce,
·        (2) because merchants brought land in the country and improved it,
·        and (3) because order and good government were introduced.
·        Before foreign commerce and fine manufactures are introduced great proprietors are surrounded by bands of retainers,
·        and tenants at will were just as dependent as retainers.
·        The power of the ancient barons was founded on this.
·        It was anterior to and independent of the feudal law.
·        It was moderated by the feudal law,
·        and undermined by foreign commerce.
·        At present a rich man maintains in all as many persons as an ancient baron, but he contributes only a small portion of the maintenance of each person.
·        To meet their new expenses the great proprietors dismissed their retainers and their unnecessary tenants, and gave the remaining tenants long leases,
·        thus making them independent.
·        The great proprietors thus became insignificant.
·        Old families are rare in commercial countries.
·        A revolution was thus insensibly brought about,
·        and commerce and manufactures became the cause of the improvement of the country. This order of things is both slow and uncertain compared with the natural order, as may be shown by the rapid progress of the North American colonies,
·        and the slow progress of England agriculture in spite of favours accorded to it
·        and the still slower progress of France,
·        Spain and Portugal.
·        Italy alone was improved throughout by foreign commerce and exported manufactures.
·        The national capital acquired by commerce and manufactures is an uncertain possession till reliased in the improvement of land.

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