Whenthegreaterpartofthehighlandcattlewereconsumedontheirownhills,theexportationoftheirhidesmadethemostconsiderablearticleofthecommerceofthatcountry,andwhattheywereexchangedforaffordedsomeadditiontotherentofthehighlandestates。ThewoolofEngland,whichinoldtimescouldneitherbeconsumednorwroughtupathome,foundamarketinthethenwealthierandmoreindustriouscountryofFlanders,anditspriceaffordedsomethingtotherentofthelandwhichproducedit。IncountriesnotbettercultivatedthanEnglandwasthen,orthanthehighlandsofScotlandarenow,andwhichhadnoforeigncommerce,thematerialsofclothingwouldevidentlybesosuperabundantthatagreatpartofthemwouldbethrownawayasuseless,andnopartcouldaffordanyrenttothelandlord。
Thematerialsoflodgingcannotalwaysbetransportedtosogreatadistanceasthoseofclothing,anddonotsoreadilybecomeanobjectofforeigncommerce。Whentheyaresuperabundantinthecountrywhichproducesthem,itfrequentlyhappens,eveninthepresentcommercialstateoftheworld,thattheyareofnovaluetothelandlord。AgoodstonequarryintheneighbourhoodofLondonwouldaffordaconsiderablerent。InmanypartsofScotlandandWalesitaffordsnone。Barrentimberforbuildingisofgreatvalueinapopulousandwell—cultivatedcountry,andthelandwhichproducesitaffordsaconsiderablerent。ButinmanypartsofNorthAmericathelandlordwouldbemuchobligedtoanybodywhowouldcarryawaythegreaterpartofhislargetrees。
InsomepartsofthehighlandsofScotlandthebarkistheonlypartofthewoodwhich,forwantofroadsandwater—carriage,canbesenttomarket。Thetimberislefttorotupontheground。
Whenthematerialsoflodgingaresosuperabundant,thepartmadeuseofisworthonlythelabourandexpenseoffittingitforthatuse。Itaffordsnorenttothelandlord,whogenerallygrantstheuseofittowhoevertakesthetroubleofaskingit。
Thedemandofwealthiernations,however,sometimesenableshimtogetarentforit。ThepavingofthestreetsofLondonhasenabledtheownersofsomebarrenrocksonthecoastofScotlandtodrawarentfromwhatneveraffordedanybefore。ThewoodsofNorwayandofthecoastsoftheBalticfindamarketinmanypartsofGreatBritainwhichtheycouldnotfindathome,andtherebyaffordsomerenttotheirproprietors。
Countriesarepopulousnotinproportiontothenumberofpeoplewhomtheirproducecanclotheandlodge,butinproportiontothatofthosewhomitcanfeed。Whenfoodisprovided,itiseasytofindthenecessaryclothingandlodging。Butthoughtheseareathand,itmayoftenbedifficulttofindfood。InsomepartsevenoftheBritishdominionswhatiscalledahousemaybebuiltbyoneday’slabourofoneman。Thesimplestspeciesofclothing,theskinsofanimals,requiresomewhatmorelabourtodressandpreparethemforuse。Theydonot,however,requireagreatdeal。Amongsavageandbarbarousnations,ahundredthorlittlemorethanahundredthpartofthelabourofthewholeyearwillbesufficienttoprovidethemwithsuchclothingandlodgingassatisfythegreaterpartofthepeople。Alltheotherninety—ninepartsarefrequentlynomorethanenoughtoprovidethemwithfood。
Butwhenbytheimprovementandcultivationoflandthelabourofonefamilycanprovidefoodfortwo,thelabourofhalfthesocietybecomessufficienttoprovidefoodforthewhole。Theotherhalf,therefore,oratleastthegreaterpartofthem,canbeemployedinprovidingotherthings,orinsatisfyingtheotherwantsandfanciesofmankind。Clothingandlodging,householdfurniture,andwhatiscalledEquipage,aretheprincipalobjectsofthegreaterpartofthosewantsandfancies。Therichmanconsumesnomorefoodthanhispoorneighbour。Inqualityitmaybeverydifferent,andtoselectandprepareitmayrequiremorelabourandart;butinquantityitisverynearlythesame。Butcomparethespaciouspalaceandgreatwardrobeoftheonewiththehovelandthefewragsoftheother,andyouwillbesensiblethatthedifferencebetweentheirclothing,lodging,andhouseholdfurnitureisalmostasgreatinquantityasitisinquality。Thedesireoffoodislimitedineverymanbythenarrowcapacityofthehumanstomach;butthedesireoftheconveniencesandornamentsofbuilding,dress,equipage,andhouseholdfurniture,seemstohavenolimitorcertainboundary。Those,therefore,whohavethecommandofmorefoodthantheythemselvescanconsume,arealwayswillingtoexchangethesurplus,or,whatisthesamething,thepriceofit,forgratificationsofthisotherkind。Whatisoverandabovesatisfyingthelimiteddesireisgivenfortheamusementofthosedesireswhichcannotbesatisfied,butseemtobealtogetherendless。Thepoor,inordertoobtainfood,exertthemselvestogratifythosefanciesoftherich,andtoobtainitmorecertainlytheyviewithoneanotherinthecheapnessandperfectionoftheirwork。Thenumberofworkmenincreaseswiththeincreasingquantityoffood,orwiththegrowingimprovementandcultivationofthelands;andasthenatureoftheirbusinessadmitsoftheutmostsubdivisionsoflabour,thequantityofmaterialswhichtheycanworkupincreasesinamuchgreaterproportionthantheirnumbers。Hencearisesademandforeverysortofmaterialwhichhumaninventioncanemploy,eitherusefullyorornamentally,inbuilding,dress,equipage,orhouseholdfurniture;forthefossilsandmineralscontainedinthebowelsoftheearth;thepreciousmetals,andthepreciousstones。
Foodisinthismannernotonlytheoriginalsourceofrent,buteveryotherpartoftheproduceoflandwhichafterwardsaffordsrentderivesthatpartofitsvaluefromtheimprovementofthepowersoflabourinproducingfoodbymeansoftheimprovementandcultivationofland。
Thoseotherpartsoftheproduceofland,however,whichafterwardsaffordrent,donotafforditalways。Eveninimprovedandcultivatedcountries,thedemandforthemisnotalwayssuchastoaffordagreaterpricethanwhatissufficienttopaythelabour,andreplace,togetherwithitordinaryprofits,thestockwhichmustbeemployedinbringingthemtomarket。Whetheritisorisnotsuchdependsupondifferentcircumstances。
Whetheracoal—mine,forexample,canaffordanyrentdependspartlyuponitsfertility,andpartlyuponitssituation。
Amineofanykindmaybesaidtobeeitherfertileorbarren,accordingasthequantityofmineralwhichcanbebroughtfromitbyacertainquantityoflabourisgreaterorlessthanwhatcanbebroughtbyanequalquantityfromthegreaterpartofotherminesofthesamekind。
Somecoal—minesadvantageouslysituatedcannotbewroughtonaccountoftheirbarrenness。Theproducedoesnotpaytheexpense。Theycanaffordneitherprofitnorrent。
Therearesomeofwhichtheproduceisbarelysufficienttopaythelabour,andreplace,togetherwithitordinaryprofits,thestockemployedinworkingthem。Theyaffordsomeprofittotheundertakerofthework,butnorenttothelandlord。Theycanbewroughtadvantageouslybynobodybutthelandlord,who,beinghimselfundertakerofthework,getstheordinaryprofitofthecapitalwhichheemploysinit。Manycoal—minesinScotlandarewroughtinthismanner,andcanbewroughtinnoother。Thelandlordwillallownobodyelsetoworkthemwithoutpayingsomerent,andnobodycanaffordtopayany。
Othercoal—minesinthesamecountry,sufficientlyfertile,cannotbewroughtonaccountoftheirsituation。Aquantityofmineralsufficienttodefraytheexpenseofworkingcouldbebroughtfromtheminebytheordinary,orevenlessthantheordinary,quantityoflabour;butinaninlandcountry,thinlyinhabited,andwithouteithergoodroadsorwater—carriage,thisquantitycouldnotbesold。
Coalsarealessagreeablefuelthanwood:theyaresaid,too,tobelesswholesome。Theexpenseofcoals,therefore,attheplacewheretheyareconsumed,mustgenerallybesomewhatlessthanthatofwood。
Thepriceofwoodagainvarieswiththestateofagriculture,nearlyinthesamemanner,andexactlyforthesamereason,asthepriceofcattle。Initsrudebeginningsthegreaterpartofeverycountryiscoveredwithwood,whichisthenamereencumberanceofnovaluetothelandlord,whowouldgladlygiveittoanybodyforthecutting。Asagricultureadvances,thewoodsarepartlyclearedbytheprogressoftillage,andpartlygotodecayinconsequenceoftheincreasednumberofcattle。
These,thoughtheydonotincreaseinthesameproportionascorn,whichisaltogethertheacquisitionofhumanindustry,yetmultiplyunderthecareandprotectionofmen,whostoreupintheseasonofplentywhatmaymaintaintheminthatofscarcity,whothroughthewholeyearfurnishthemwithagreaterquantityoffoodthanuncultivatednatureprovidesforthem,andwhobydestroyingandextirpatingtheirenemies,securetheminthefreeenjoymentofallthatsheprovides。Numerousherdsofcattle,whenallowedtowanderthroughthewoods,thoughtheydonotdestroytheoldtrees,hinderanyyoungonesfromcomingupsothatinthecourseofacenturyortwothewholeforestgoestoruin。Thescarcityofwoodthenraisesitsprice。Itaffordsagoodrent,andthelandlordsometimesfindsthathecanscarceemployhisbestlandsmoreadvantageouslythaningrowingbarrentimber,ofwhichthegreatnessoftheprofitoftencompensatesthelatenessofthereturns。ThisseemsinthepresenttimestobenearlythestateofthingsinseveralpartsofGreatBritain,wheretheprofitofplantingisfoundtobeequaltothatofeithercornorpasture。Theadvantagewhichthelandlordderivesfromplantingcannowhereexceed,atleastforanyconsiderabletime,therentwhichthesecouldaffordhim;andinaninlandcountrywhichishighlycultivated,itwillfrequentlynotfallmuchshortofthisrent。Uponthesea—coastofawellimprovedcountry,indeed,ifcoalscanconvenientlybehadforfuel,itmaysometimesbecheapertobringbarrentimberforbuildingfromlesscultivatedforeigncountriesthantoraiseitathome。InthenewtownofEdinburgh,builtwithinthesefewyears,thereisnot,perhaps,asinglestickofScotchtimber。
Whatevermaybethepriceofwood,ifthatofcoalsissuchthattheexpenseofacoalfireisnearlyequaltothatofawoodone,wemaybeassuredthatatthatplace,andinthesecircumstances,thepriceofcoalsisashighasitcanbe。ItseemstobesoinsomeoftheinlandpartsofEngland,particularlyinOxfordshire,whereitisusual,eveninthefiresofthecommonpeople,tomixcoalsandwoodtogether,andwherethedifferenceintheexpenseofthosetwosortsoffuelcannot,therefore,beverygreat。
Coals,inthecoalcountries,areeverywheremuchbelowthishighestprice。Iftheywerenot,theycouldnotbeartheexpenseofadistantcarriage,eitherbylandorbywater。Asmallquantityonlycouldbesold,andthecoalmastersandcoalproprietorsfinditmorefortheirinteresttosellagreatquantityatapricesomewhatabovethelowest,thanasmallquantityatthehighest。Themostfertilecoal—mine,too,regulatesthepriceofcoalsatalltheotherminesinitsneighbourhood。Boththeproprietorandtheundertakeroftheworkfind,theonethathecangetagreaterrent,theotherthathecangetagreaterprofit,bysomewhatundersellingalltheirneighbours。Theirneighboursaresoonobligedtosellatthesameprice,thoughtheycannotsowellaffordit,andthoughitalwaysdiminishes,andsometimestakesawayaltogetherboththeirrentandtheirprofit。Someworksareabandonedaltogether;otherscanaffordnorent,andcanbewroughtonlybytheproprietor。
Thelowestpriceatwhichcoalscanbesoldforanyconsiderabletimeis,likethatofallothercommodities,thepricewhichisbarelysufficienttoreplace,togetherwithitsordinaryprofits,thestockwhichmustbeemployedinbringingthemtomarket。Atascoal—mineforwhichthelandlordcangetnorent,butwhichhemusteitherworkhimselforletitalonealtogether,thepriceofcoalsmustgenerallybenearlyaboutthisprice。
Rent,evenwherecoalsaffordone,hasgenerallyasmallershareintheirpricesthaninthatofmostotherpartsoftherudeproduceofland。Therentofanestateabovegroundcommonlyamountstowhatissupposedtobeathirdofthegrossproduce;
anditisgenerallyarentcertainandindependentoftheoccasionalvariationsinthecrop。Incoal—minesafifthofthegrossproduceisaverygreatrent;atenththecommonrent,anditisseldomarentcertain,butdependsupontheoccasionalvariationsintheproduce。Thesearesogreatthat,inacountrywherethirtyyears’purchaseisconsideredasamoderatepriceforthepropertyofalandedestate,tenyears’purchaseisregardedasagoodpriceforthatofacoal—mine。
Thevalueofacoal—minetotheproprietorfrequentlydependsasmuchuponitssituationasuponitsfertility。Thatofametallicminedependsmoreuponitsfertility,andlessuponitssituation。Thecoarse,andstillmorethepreciousmetals,whenseparatedfromtheore,aresovaluablethattheycangenerallybeartheexpenseofaverylongland,andofthemostdistantseacarriage。Theirmarketisnotconfinedtothecountriesintheneighbourhoodofthemine,butextendstothewholeworld。ThecopperofJapanmakesanarticleofcommerceinEurope;theironofSpaininthatofChiliandPeru。ThesilverofPerufindsitsway,notonlytoEurope,butfromEuropetoChina。
ThepriceofcoalsinWestmorelandorShropshirecanhavelittleeffectontheirpriceatNewcastle;andtheirpriceintheLionnoiscanhavenoneatall。Theproductionsofsuchdistantcoal—minescanneverbebroughtintocompetitionwithoneanother。Buttheproductionsofthemostdistantmetallicminesfrequentlymay,andinfactcommonlyare。Theprice,therefore,ofthecoarse,andstillmorethatofthepreciousmetals,atthemostfertileminesintheworld,mustnecessarilymoreorlessaffecttheirpriceateveryotherinit。ThepriceofcopperinJapanmusthavesomeinfluenceuponitspriceatthecopperminesinEurope。ThepriceofsilverinPeru,orthequantityeitheroflabourorofothergoodswhichitwillpurchasethere,musthavesomeinfluenceonitsprice,notonlyatthesilverminesofEurope,butatthoseofChina。AfterthediscoveryoftheminesofPeru,thesilverminesofEuropewere,thegreaterpartofthem,abandoned。Thevalueofwassomuchreducedthattheirproducecouldnolongerpaytheexpenseofworkingthem,orreplace,withaprofit,thefood,clothes,lodging,andothernecessarieswhichwereconsumedinthatoperation。Thiswasthecase,too,withtheminesofCubaandSt。Domingo,andevenwiththeancientminesofPeru,afterthediscoveryofthoseofPotosi。
Thepriceofeverymetalateverymine,therefore,beingregulatedinsomemeasurebyitspriceatthemostfertilemineintheworldthatisactuallywrought,itcanatthegreaterpartofminesdoverylittlemorethanpaytheexpenseofworking,andcanseldomaffordaveryhighrenttothelandlord。Rent,accordingly,seemsatthegreaterpartofminestohavebutasmallshareinthepriceofthecoarse,andastillsmallerinthatofthepreciousmetals。Labourandprofitmakeupthegreaterpartofboth。
AsixthpartofthegrossproducemaybereckonedtheaveragerentofthetinminesofCornwallthemostfertilethatareknownintheworld,aswearetoldbytheReverendMr。
Borlace,vice—wardenofthestannaries。Some,hesays,affordmore,andsomedonotaffordsomuch。Asixthpartofthegrossproduceistherent,too,ofseveralveryfertileleadminesinScotland。
InthesilverminesofPeru,wearetoldbyFrezierandUlloa,theproprietorfrequentlyexactsnootheracknowledgmentfromtheundertakerofthemine,butthathewillgrindtheoreathismill,payinghimtheordinarymultureorpriceofgrinding。Till1736,indeed,thetaxoftheKingofSpainamountedtoone—fifthofthestandardsilver,whichtillthenmightbeconsideredastherealrentofthegreaterpartofthesilverminesofPeru,therichestwhichhavebeenknownintheworld。Iftherehadbeennotaxthisfifthwouldnaturallyhavebelongedtothelandlord,andmanyminesmighthavebeenwroughtwhichcouldnotthenbewrought,becausetheycouldnotaffordthistax。ThetaxoftheDukeofCornwallupontinissupposedtoamounttomorethanfivepercentorone—twentiethpartofthevalue,andwhatevermaybehisproportion,itwouldnaturally,too,belongtotheproprietorofthemine,iftinwasdutyfree。
Butifyouaddone—twentiethtoone—sixth,youwillfindthatthewholeaveragerentofthetinminesofCornwallwastothewholeaveragerentofthesilverminesofPeruasthirteentotwelve。
ButthesilverminesofPeruarenotnowabletopayeventhislowrent,andthetaxuponsilverwas,in1736,reducedfromone—fifthtoone—tenth。Eventhistaxuponsilver,too,givesmoretemptationtosmugglingthanthetaxofone—twentiethupontin;andsmugglingmustbemucheasierinthepreciousthaninthebulkycommodity。ThetaxoftheKingofSpainaccordinglyissaidtobeveryillpaid,andthatoftheDukeofCornwallverywell。Rent,therefore,itisprobable,makesagreaterpartofthepriceoftinatthemostfertiletinminesthanitdoesofsilveratthemostfertilesilverminesintheworld。Afterreplacingthestockemployedinworkingthosedifferentmines,togetherwithitsordinaryprofits,theresiduewhichremainstotheproprietorisgreater,itseems,inthecoarsethaninthepreciousmetal。
NeitheraretheprofitsoftheundertakersofsilverminescommonlyverygreatinPeru。Thesamemostrespectableandwell—informedauthorsacquaintus,thatwhenanypersonundertakestoworkanewmineinPeru,heisuniversallylookeduponasamandestinedtobankruptcyandruin,andisuponthataccountshunnedandavoidedbyeverybody。Mining,itseems,isconsideredthereinthesamelightashere,asalottery,inwhichtheprizesdonotcompensatetheblanks,thoughthegreatnessofsometemptsmanyadventurerstothrowawaytheirfortunesinsuchunprosperousprojects。
Asthesovereign,however,derivesaconsiderablepartofhisrevenuefromtheproduceofsilvermines,thelawinPerugiveseverypossibleencouragementtothediscoveryandworkingofnewones。Whoeverdiscoversanewmineisentitledtomeasureofftwohundredandforty—sixfeetinlength,accordingtowhathesupposestobethedirectionofthevein,andhalfasmuchinbreadth。Hebecomesproprietorofthisportionofthemine,andcanworkitwithoutpayinganyacknowledgmenttothelandlord。
TheinterestoftheDukeofCornwallhasgivenoccasiontoaregulationnearlyofthesamekindinthatancientduchy。Inwasteandunenclosedlandsanypersonwhodiscoversatinminemaymarkitslimitstoacertainextent,whichiscalledboundingamine。Thebounderbecomestherealproprietorofthemine,andmayeitherworkithimself,orgiveitinleasetoanother,withouttheconsentoftheowneroftheland,towhom,however,averysmallacknowledgmentmustbepaiduponworkingit。Inbothregulationsthesacredrightsofprivatepropertyaresacrificedtothesupposedinterestsofpublicrevenue。
ThesameencouragementisgiveninPerutothediscoveryandworkingofnewgoldmines;andingoldtheking’staxamountsonlytoatwentiethpartofthestandardmetal。Itwasonceafifth,andafterwardsatenth,asinsilver;butitwasfoundthattheworkcouldnotbeareventhelowestofthesetwotaxes。
Ifitisrare,however,saythesameauthors,FrezierandUlloa,tofindapersonwhohasmadehisfortunebyasilver,itisstillmuchrarertofindonewhohasdonesobyagoldmine。ThistwentiethpartseemstobethewholerentwhichispaidbythegreaterpartofthegoldminesinChiliandPeru。Gold,too,ismuchmoreliabletobesmuggledthanevensilver;notonlyonaccountofthesuperiorvalueofthemetalinproportiontoitsbulk,butonaccountofthepeculiarwayinwhichnatureproducesit。Silverisveryseldomfoundvirgin,but,likemostothermetals,isgenerallymineralizedwithsomeotherbody,fromwhichitisimpossibletoseparateitinsuchquantitiesaswillpayfortheexpense,butbyaverylaboriousandtediousoperation,whichcannotwellbecarriedonbutinworkhouseserectedforthepurpose,andthereforeexposedtotheinspectionoftheking’sofficers。Gold,onthecontrary,isalmostalwaysfoundvirgin。
Itissometimesfoundinpiecesofsomebulk;andevenwhenmixedinsmallandalmostinsensibleparticleswithsand,earth,andotherextraneousbodies,itcanbeseparatedfromthembyaveryshortandsimpleoperation,whichcanbecarriedoninanyprivatehousebyanybodywhoispossessedofasmallquantityofmercury。Iftheking’stax,therefore,isbutillpaiduponsilver,itislikelytobemuchworsepaidupongold;andrent,mustmakeamuchsmallerpartofthepriceofgoldthanevenofthatofsilver。
Thelowestpriceatwhichthepreciousmetalscanbesold,orthesmallestquantityofothergoodsforwhichtheycanbeexchangedduringanyconsiderabletime,isregulatedbythesameprincipleswhichfixthelowestordinarypriceofallothergoods。Thestockwhichmustcommonlybeemployed,thefood,theclothes,andlodgingwhichmustcommonlybeconsumedinbringingthemfromtheminetothemarket,determineit。Itmustatleastbesufficienttoreplacethatstock,withtheordinaryprofits。
Theirhighestprice,however,seemsnottobenecessarilydeterminedbyanythingbuttheactualscarcityorplentyofthosemetalsthemselves。Itisnotdeterminedbythatofanyothercommodity,inthesamemannerasthepriceofcoalsisbythatofwood,beyondwhichnoscarcitycaneverraiseit。Increasethescarcityofgoldtoacertaindegree,andthesmallestbitofitmaybecomemorepreciousthanadiamond,andexchangeforagreaterquantityofothergoods。
Thedemandforthosemetalsarisespartlyfromtheirutilityandpartlyfromtheirbeauty。Ifyouexceptiron,theyaremoreusefulthan,perhaps,anyothermetal。Astheyarelessliabletorustandimpurity,theycanmoreeasilybekeptclean,andtheutensilseitherofthetableorthekitchenareoftenuponthataccountmoreagreeablewhenmadeofthem。Asilverboilerismorecleanlythanalead,copper,ortinone;andthesamequalitywouldrenderagoldboilerstillbetterthanasilverone。Theirprincipalmerit,however,arisesfromtheirbeauty,whichrendersthempeculiarlyfitfortheornamentsofdressandfurniture。Nopaintordyecangivesosplendidacolourasgilding。Themeritoftheirbeautyisgreatlyenhancedbytheirscarcity。Withthegreaterpartofrichpeople,thechiefenjoymentofrichesconsistsintheparadeofriches,whichintheireyeisneversocompleteaswhentheyappeartopossessthosedecisivemarksofopulencewhichnobodycanpossessbutthemselves。Intheireyesthemeritofanobjectwhichisinanydegreeeitherusefulorbeautifulisgreatlyenhancedbyitsscarcity,orbythegreatlabourwhichitrequirestocollectanyconsiderablequantityofit,alabourwhichnobodycanaffordtopaybutthemselves。Suchobjectstheyarewillingtopurchaseatahigherpricethanthingsmuchmorebeautifulanduseful,butmorecommon。Thesequalitiesofutility,beauty,andscarcity,aretheoriginalfoundationofthehighpriceofthosemetals,orofthegreatquantityofothergoodsforwhichtheycaneverywherebeexchanged。Thisvaluewasantecedenttoandindependentoftheirbeingemployedascoin,andwasthequalitywhichfittedthemforthatemployment。Thatemployment,however,byoccasioninganewdemand,andbydiminishingthequantitywhichcouldbeemployedinanyotherway,mayhaveafterwardscontributedtokeepuporincreasetheirvalue。
Thedemandforthepreciousstonesarisesaltogetherfromtheirbeauty。Theyareofnousebutasornaments;andthemeritoftheirbeautyisgreatlyenhancedbytheirscarcity,orbythedifficultyandexpenseofgettingthemfromthemine。Wagesandprofitaccordinglymakeup,uponmostoccasions,almostthewholeoftheirhighprice。Rentcomesinbutforaverysmallshare;
frequentlyfornoshare;andthemostfertileminesonlyaffordanyconsiderablerent。WhenTavernier,ajeweller,visitedthediamondminesofGolcondaandVisiapour,hewasinformedthatthesovereignofthecountry,forwhosebenefittheywerewrought,hadorderedallofthemtobeshutup,exceptthosewhichyieldthelargestandfineststones。Theothers,itseems,weretotheproprietornotworththeworking。
Asthepricebothofthepreciousmetalsandofthepreciousstonesisregulatedallovertheworldbytheirpriceatthemostfertilemineinit,therentwhichamineofeithercanaffordtoitsproprietorisinproportion,nottoitsabsolute,buttowhatmaybecalleditsrelativefertility,ortoitssuperiorityoverotherminesofthesamekind。IfnewmineswerediscoveredasmuchsuperiortothoseofPotosiastheyweresuperiortothoseEurope,thevalueofsilvermightbesomuchdegradedastorendereventheminesofPotosinotworththeworking。BeforethediscoveryoftheSpanishWestIndies,themostfertileminesinEuropemayhaveaffordedasgreatarenttotheirproprietorastherichestminesinPerudoatpresent。Thoughthequantityofsilverwasmuchless,itmighthaveexchangedforanequalquantityofothergoods,andtheproprietor’ssharemighthaveenabledhimtopurchaseorcommandanequalquantityeitheroflabourorofcommodities。Thevaluebothoftheproduceandoftherent,therealrevenuewhichtheyaffordedbothtothepublicandtotheproprietor,mighthavebeenthesame。
Themostabundantmineseitherofthepreciousmetalsorofthepreciousstonescouldaddlittletothewealthoftheworld。
Aproduceofwhichthevalueisprincipallyderivedfromitsscarcity,isnecessarilydegradedbyitsabundance。Aserviceofplate,andtheotherfrivolousornamentsofdressandfurniture,couldbepurchasedforasmallerquantityoflabour,orforasmallerquantityofcommodities;andinthiswouldconsistthesoleadvantagewhichtheworldcouldderivefromthatabundance。
Itisotherwiseinestatesaboveground。Thevaluebothoftheirproduceandoftheirrentisinproportiontotheirabsolute,andnottotheirrelativefertility。Thelandwhichproducesacertainquantityoffood,clothes,andlodging,canalwaysfeed,clothe,andlodgeacertainnumberofpeople;andwhatevermaybetheproportionofthelandlord,itwillalwaysgivehimaproportionablecommandofthelabourofthosepeople,andofthecommoditieswithwhichthatlabourcansupplyhim。Thevalueofthemostbarrenlandsisnotdiminishedbytheneighbourhoodofthemostfertile。Onthecontrary,itisgenerallyincreasedbyit。Thegreatnumberofpeoplemaintainedbythefertilelandsaffordamarkettomanypartsoftheproduceofthebarren,whichtheycouldneverhavefoundamongthosewhomtheirownproducecouldmaintain。
Whateverincreasesthefertilityoflandinproducingfoodincreasesnotonlythevalueofthelandsuponwhichtheimprovementisbestowed,butcontributeslikewisetoincreasethatofmanyotherlandsbycreatinganewdemandfortheirproduce。Thatabundanceoffood,ofwhich,inconsequenceoftheimprovementofland,manypeoplehavethedisposalbeyondwhattheythemselvescanconsume,isthegreatcauseofthedemandbothforthepreciousmetalsandthepreciousstone,aswellasforeveryotherconveniencyandornamentofdress,lodging,householdfurniture,andequipage。Foodnotonlyconstitutestheprincipalpartoftherichesoftheworld,butitistheabundanceoffoodwhichgivestheprincipalpartoftheirvaluetomanyothersortsofriches。ThepoorinhabitantsofCubaandSt。Domingo,whentheywerefirstdiscoveredbytheSpaniards,usedtowearlittlebitsofgoldasornamentsintheirhairandotherpartsoftheirdress。Theyseemedtovaluethemaswewoulddoanylittlepebblesofsomewhatmorethanordinarybeauty,andtoconsiderthemasjustworththepickingup,butnotworththerefusingtoanybodywhoaskedthem。Theygavethemtotheirnewguestsatthefirstrequest,withoutseemingtothinkthattheyhadmadethemanyveryvaluablepresent。TheywereastonishedtoobservetherageoftheSpaniardstoobtainthem;andhadnonotionthattherecouldanywherebeacountryinwhichmanypeoplehadthedisposalofsogreatasuperfluityoffood,soscantyalwaysamongthemselves,thatforaverysmallquantityofthoseglitteringbaublestheywouldwillinglygiveasmuchasmightmaintainawholefamilyformanyyears。Couldtheyhavebeenmadetounderstandthis,thepassionoftheSpaniardswouldnothavesurprisedthem。
PART3OftheVariationsintheProportionbetweentherespectiveValuesofthatSortofProducewhichalwaysaffordsRent,andofthatwhichsometimesdoesandsometimesdoesnotaffordRentTHEincreasingabundanceoffood,inconsequenceofincreasingimprovementandcultivation,mustnecessarilyincreasethedemandforeverypartoftheproduceoflandwhichisnotfood,andwhichcanbeappliedeithertouseortoornament。Inthewholeprogressofimprovement,itmightthereforebeexpected,thereshouldbeonlyonevariationinthecomparativevaluesofthosetwodifferentsortsofproduce。Thevalueofthatsortwhichsometimesdoesandsometimesdoesnotaffordrent,shouldconstantlyriseinproportiontothatwhichalwaysaffordssomerent。Asartandindustryadvance,thematerialsofclothingandlodging,theusefulfossilsandmineralsoftheearth,thepreciousmetalsandthepreciousstonesshouldgraduallycometobemoreandmoreindemand,shouldgraduallyexchangeforagreaterandagreaterquantityoffood,orinotherwords,shouldgraduallybecomedeareranddearer。Thisaccordinglyhasbeenthecasewithmostofthesethingsuponmostoccasions,andwouldhavebeenthecasewithallofthemuponalloccasions,ifparticularaccidentshadnotuponsomeoccasionsincreasedthesupplyofsomeoftheminastillgreaterproportionthanthedemand。
Thevalueofafree—stonequarry,forexample,willnecessarilyincreasewiththeincreasingimprovementandpopulationofthecountryroundaboutit,especiallyifitshouldbetheonlyoneintheneighbourhood。Butthevalueofasilvermine,eventhoughthereshouldnotbeanotherwithinathousandmilesofit,willnotnecessarilyincreasewiththeimprovementofthecountryinwhichitissituated。Themarketfortheproduceofafreestonequarrycanseldomextendmorethanafewmilesroundaboutit,andthedemandmustgenerallybeinproportiontotheimprovementandpopulationofthatsmalldistrict。Butthemarketfortheproduceofasilverminemayextendoverthewholeknownworld。Unlesstheworldingeneral,therefore,beadvancinginimprovementandpopulation,thedemandforsilvermightnotbeatallincreasedbytheimprovementevenofalargecountryintheneighbourhoodofthemine。Eventhoughtheworldingeneralwereimproving,yetif,inthecourseofitsimprovement,newminesshouldbediscovered,muchmorefertilethananywhichhadbeenknownbefore,thoughthedemandforsilverwouldnecessarilyincrease,yetthesupplymightincreaseinsomuchagreaterproportionthattherealpriceofthatmetalmightgraduallyfall;thatis,anygivenquantity,apoundweightofit,forexample,mightgraduallypurchaseorcommandasmallerandasmallerquantityoflabour,orexchangeforasmallerandasmallerquantityofcorn,theprincipalpartofthesubsistenceofthelabourer。
Thegreatmarketforsilveristhecommercialandcivilisedpartoftheworld。
Ifbythegeneralprogressofimprovementthedemandofthismarketshouldincrease,whileatthesametimethesupplydidnotincreaseinthesameproportion,thevalueofsilverwouldgraduallyriseinproportiontothatofcorn。Anygivenquantityofsilverwouldexchangeforagreaterandagreaterquantityofcorn;or,inotherwords,theaveragemoneypriceofcornwouldgraduallybecomecheaperandcheaper。
If,onthecontrary,thesupplybysomeaccidentshouldincreaseformanyyearstogetherinagreaterproportionthanthedemand,thatmetalwouldgraduallybecomecheaperandcheaper;
or,inotherwords,theaveragemoneypriceofcornwould,inspiteofallimprovements,graduallybecomedeareranddearer。
Butif,ontheotherhand,thesupplyofthemetalshouldincreasenearlyinthesameproportionasthedemand,itwouldcontinuetopurchaseorexchangefornearlythesamequantityofcorn,andtheaveragemoneypriceofcornwould,inspiteofallimprovements,continueverynearlythesame。
Thesethreeseemtoexhaustallthepossiblecombinationsofeventswhichcanhappenintheprogressofimprovement;andduringthecourseofthefourcenturiesprecedingthepresent,ifwemayjudgebywhathashappenedbothinFranceandGreatBritain,eachofthosethreedifferentcombinationsseemtohavetakenplaceintheEuropeanmarket,andnearlyinthesameorder,too,inwhichIhaveheresetthemdown。
DIGRESSIONSCONCERNINGTHEVARIATIONSINTHEVALUEOFSILVER
DURINGTHECOURSEOFTHEFOURLASTCENTURIES
FIRSTPERIOD
In1350,andforsometimebefore,theaveragepriceofthequarterofwheatinEnglandseemsnottohavebeenestimatedlowerthanfourouncesofsilver,Towerweight,equaltoabouttwentyshillingsofourpresentmoney。Fromthispriceitseemstohavefallengraduallytotwoouncesofsilver,equaltoabouttenshillingsofourpresentmoney,thepriceatwhichwefinditestimatedinthebeginningofthesixteenthcentury,andatwhichitseemstohavecontinuedtobeestimatedtillabout1570。
In1350,beingthe25thofEdwardIII,wasenactedwhatiscalledTheStatuteofLabourers。Inthepreambleitcomplainsmuchoftheinsolenceofservants,whoendeavouredtoraisetheirwagesupontheirmasters。Itthereforeordainsthatallservantsandlabourersshouldforthefuturebecontentedwiththesamewagesandliveries(liveriesinthosetimessignifiednotonlyclothesbutprovisions)whichtheyhadbeenaccustomedtoreceiveinthe20thyearoftheking,andthefourprecedingyears;thatuponthisaccounttheirliverywheatshouldnowherebeestimatedhigherthantenpenceabushel,andthatitshouldalwaysbeintheoptionofthemastertodeliverthemeitherthewheatorthemoney。Tenpenceabushel,therefore,had,inthe25thofEdwardIII,beenreckonedaverymoderatepriceofwheat,sinceitrequiredaparticularstatutetoobligeservantstoacceptofitinexchangefortheirusualliveryofprovisions;andithadbeenreckonedareasonablepricetenyearsbeforethat,orinthe16thyearoftheking,thetermtowhichthestatuterefers。Butinthe16thyearofEdwardIII,tenpencecontainedabouthalfanounceofsilver,Towerweight,andwasnearlyequaltohalf—a—crownofourpresentmoney。Fourouncesofsilver,Towerweight,therefore,equaltosixshillingsandeightpenceofthemoneyofthosetimes,andtoneartwentyshillingsofthatofthepresent,musthavebeenreckonedamoderatepriceforthequarterofeightbushels。
Thisstatuteissurelyabetterevidenceofwhatwasreckonedinthosetimesamoderatepriceofgrainthanthepricesofsomeparticularyearswhichhavegenerallybeenrecordedbyhistoriansandotherwritersonaccountoftheirextraordinarydearnessorcheapness,andfromwhich,therefore,itisdifficulttoformanyjudgmentconcerningwhatmayhavebeentheordinaryprice。Thereare,besides,otherreasonsforbelievingthatinthebeginningofthefourteenthcentury,andforsometimebefore,thecommonpriceofwheatwasnotlessthanfourouncesofsilverthequarter,andthatofothergraininproportion。
In1309,RalphdeBorn,priorofSt。Augustine’s,Canterbury,gaveafeastuponhisinstallation—day,ofwhichWilliamThornhaspreservednotonlythebilloffarebutthepricesofmanyparticulars。Inthatfeastwereconsumed,first,fifty—threequartersofwheat,whichcostnineteenpounds,orsevenshillingsandtwopenceaquarter,equaltoaboutone—and—twentyshillingsandsixpenceofourpresentmoney;