Ifitdid,morelandwouldsoonbeturnedtothispurpose。InseveralprovincesofFrance,thefeedingofpoultryisconsideredasaveryimportantarticleinruraleconomy,andsufficientlyprofitabletoencouragethefarmertoraiseaconsiderablequantityofIndiancornandbuck—wheatforthispurpose。Amiddlingfarmerwilltheresometimeshavefourhundredfowlsinhisyard。ThefeedingofpoultryseemsscarceyettobegenerallyconsideredasamatterofsomuchimportanceinEngland。Theyarecertainly,however,dearerinEnglandthaninFrance,asEnglandreceivesconsiderablesuppliesfromFrance。Intheprogressofimprovement,theperiodatwhicheveryparticularsortofanimalfoodisdearestmustnaturallybethatwhichimmediatelyprecedesthegeneralpracticeofcultivatinglandforthesakeofraisingit。Forsometimebeforethispracticebecomesgeneral,thescarcitymustnecessarilyraisetheprice。
Afterithasbecomegeneral,newmethodsoffeedingarecommonlyfallenupon,whichenablethefarmertoraiseuponthesamequantityofgroundamuchgreaterquantityofthatparticularsortofanimalfood。Theplentynotonlyobligeshimtosellcheaper,butinconsequenceoftheseimprovementshecanaffordtosellcheaper;forifhecouldnotaffordit,theplentywouldnotbeoflongcontinuance。Ithasbeenprobablyinthismannerthattheintroductionofclover,turnips,carrots,cabbage,etc。,hascontributedtosinkthecommonpriceofbutcher’smeatintheLondonmarketsomewhatbelowwhatitwasaboutthebeginningofthelastcentury。
Thehog,thatfindshisfoodamongordureandgreedilydevoursmanythingsrejectedbyeveryotherusefulanimal,is,likepoultry,originallykeptasasave—all。Aslongasthenumberofsuchanimals,whichcanthusberearedatlittleornoexpense,isfullysufficienttosupplythedemand,thissortofbutcher’smeatcomestomarketatamuchlowerpricethananyother。Butwhenthedemandrisesbeyondwhatthisquantitycansupply,whenitbecomesnecessarytoraisefoodonpurposeforfeedingandfatteninghogs,inthesamemannerasforfeedingandfatteningothercattle,thepricenecessarilyrises,andbecomesproportionablyhigherorlowerthanthatofotherbutcher’smeat,accordingasthenatureofthecountry,andthestateofitsagriculture,happentorenderthefeedingofhogsmoreorlessexpensivethanthatofothercattle。InFrance,accordingtoMr。
Buffon,thepriceofporkisnearlyequaltothatofbeef。InmostpartsofGreatBritainitisatpresentsomewhathigher。
ThegreatriseinthepriceofbothhogsandpoultryhasinGreatBritainbeenfrequentlyimputedtothediminutionofthenumberofcottagersandothersmalloccupiersofland;aneventwhichhasineverypartofEuropebeentheimmediateforerunnerofimprovementandbettercultivation,butwhichatthesametimemayhavecontributedtoraisethepriceofthosearticlesbothsomewhatsoonerandsomewhatfasterthanitwouldotherwisehaverisen。Asthepoorestfamilycanoftenmaintainacatoradogwithoutanyexpense,sothepoorestoccupiersoflandcancommonlymaintainafewpoultry,orasowandafewpigs,atverylittle。Thelittleoffalsoftheirowntable,theirwhey,skimmedmilk,andbuttermilk,supplythoseanimalswithapartoftheirfood,andtheyfindtherestintheneighbouringfieldswithoutdoinganysensibledamagetoanybody。Bydiminishingthenumberofthosesmalloccupiers,therefore,thequantityofthissortofprovisions,whichisthusproducedatlittleornoexpense,mustcertainlyhavebeenagooddealdiminished,andtheirpricemustconsequentlyhavebeenraisedbothsoonerandfasterthanitwouldotherwisehaverisen。Soonerorlater,however,intheprogressofimprovement,itmustatanyratehaverisentotheutmostheighttowhichitiscapableofrising;ortothepricewhichpaysthelabourandexpenseofcultivatingthelandwhichfurnishesthemwithfoodaswellasthesearepaiduponthegreaterpartofothercultivatedland。
Thebusinessofthedairy,likethefeedingofhogsandpoultry,isoriginallycarriedonasasave—all。Thecattlenecessarilykeptuponthefarmproducemoremilkthaneithertherearingoftheirownyoungortheconsumptionofthefarmer’sfamilyrequires;andtheyproducemostatoneparticularseason。
Butofalltheproductionsofland,milkisperhapsthemostperishable。Inthewarmseason,whenitismostabundant,itwillscarcekeepfour—and—twentyhours。Thefarmer,bymakingitintofreshbutter,storesasmallpartofitforaweek:bymakingitintosaltbutter,forayear:andbymakingitintocheese,hestoresamuchgreaterpartofitforseveralyears。Partofalltheseisreservedfortheuseofhisownfamily。Therestgoestomarket,inordertofindthebestpricewhichistobehad,andwhichcanscarcebesolowastodiscouragehimfromsendingthitherwhateverisoverandabovetheuseofhisownfamily。Ifitisverylow,indeed,hewillbelikelytomanagehisdairyinaveryslovenlyanddirtymanner,andwillscarceperhapsthinkitworthwhiletohaveaparticularroomorbuildingonpurposeforit,butwillsufferthebusinesstobecarriedonamidstthesmoke,filth,andnastinessofhisownkitchen;aswasthecaseofalmostallthefarmers’dairiesinScotlandthirtyorfortyyearsago,andasisthecaseofmanyofthemstill。Thesamecauseswhichgraduallyraisethepriceofbutcher’smeat,theincreaseofthedemand,and,inconsequenceoftheimprovementofthecountry,thediminutionofthequantitywhichcanbefedatlittleornoexpense,raise,inthesamemanner,thatoftheproduceofthedairy,ofwhichthepricenaturallyconnectswiththatofbutcher’smeat,orwiththeexpenseoffeedingcattle。
Theincreaseofpricepaysformorelabour,care,andcleanliness。Thedairybecomesmoreworthyofthefarmer’sattention,andthequalityofitsproducegraduallyimproves。Thepriceatlastgetssohighthatitbecomesworthwhiletoemploysomeofthemostfertileandbestcultivatedlandsinfeedingcattlemerelyforthepurposeofthedairy;andwhenithasgottothisheight,itcannotwellgohigher。Ifitdid,morelandwouldsoonbeturnedtothispurpose。ItseemstohavegottothisheightthroughthegreaterpartofEngland,wheremuchgoodlandiscommonlyemployedinthismanner。Ifyouexcepttheneighbourhoodofafewconsiderabletowns,itseemsnotyettohavegottothisheightanywhereinScotland,wherecommonfarmersseldomemploymuchgoodlandinraisingfoodforcattlemerelyforthepurposeofthedairy。Thepriceoftheproduce,thoughithasrisenveryconsiderablywithinthesefewyears,isprobablystilltoolowtoadmitofit。Theinferiorityofthequality,indeed,comparedwiththatoftheproduceofEnglishdairies,isfullyequaltothatoftheprice。Butthisinferiorityofqualityis,perhaps,rathertheeffectofthislownessofpricethanthecauseofit。Thoughthequalitywasmuchbetter,thegreaterpartofwhatisbroughttomarketcouldnot,Iapprehend,inthepresentcircumstancesofthecountry,bedisposedofatamuchbetterprice;andthepresentprice,itisprobablewouldnotpaytheexpenseofthelandandlabournecessaryforproducingamuchbetterquality。ThoughthegreaterpartofEngland,notwithstandingthesuperiorityofprice,thedairyisnotreckonedamoreprofitableemploymentoflandthantheraisingofcorn,orthefatteningofcattle,thetwogreatobjectsofagriculture。ThroughthegreaterpartofScotland,therefore,itcannotyetbeevensoprofitable。
Thelandsofnocountry,itisevident,caneverbecompletelycultivatedandimprovedtilloncethepriceofeveryproduce,whichhumanindustryisobligedtoraiseuponthem,hasgotsohighastopayfortheexpenseofcompleteimprovementandcultivation。Inordertodothis,thepriceofeachparticularproducemustbesufficient,first,topaytherentofgoodcornland,asitisthatwhichregulatestherentofthegreaterpartofothercultivatedland;and,secondly,topaythelabourandexpenseofthefarmeraswellastheyarecommonlypaidupongoodcornland;or,inotherwords,toreplacewiththeordinaryprofitsthestockwhichheemploysaboutit。Thisriseinthepriceofeachparticularproducemustevidentlybeprevioustotheimprovementandcultivationofthelandwhichisdestinedforraisingit。Gainistheendofallimprovement,andnothingcoulddeservethatnameofwhichlosswastobethenecessaryconsequence。Butlossmustbethenecessaryconsequenceofimprovinglandforthesakeofaproduceofwhichthepricecouldneverbringbacktheexpense。Ifthecompleteimprovementandcultivationofthecountrybe,asitmostcertainlyis,thegreatestofallpublicadvantages,thisriseinthepriceofallthosedifferentsortsofrudeproduce,insteadofbeingconsideredasapubliccalamity,oughttoberegardedasthenecessaryforerunnerandattendantofthegreatestofallpublicadvantages。
Thisrise,too,inthenominalormoney—priceofallthosedifferentsortsofrudeproducehasbeentheeffect,notofanydegradationinthevalueofsilver,butofariseintheirrealprice。Theyhavebecomeworth,notonlyagreaterquantityofsilver,butagreaterquantityoflabourandsubsistencethanbefore。Asitcostsagreaterquantityoflabourandsubsistencetobringthemtomarket,sowhentheyarebroughtthither,theyrepresentorareequivalenttoagreaterquantity。
THIRDSORT
Thethirdandlastsortofrudeproduce,ofwhichthepricenaturallyrisesintheprogressofimprovement,isthatinwhichtheefficacyofhumanindustry,inaugmentingthequantity,iseitherlimitedoruncertain。Thoughtherealpriceofthissortofrudeproduce,therefore,naturallytendstoriseintheprogressofimprovement,yet,accordingasdifferentaccidentshappentorendertheeffortsofhumanindustrymoreorlesssuccessfulinaugmentingthequantity,itmayhappensometimeseventofall,sometimestocontinuethesameinverydifferentperiodsofimprovement,andsometimestorisemoreorlessinthesameperiod。
Therearesomesortsofrudeproducewhichnaturehasrenderedakindofappendagestoothersorts;sothatthequantityoftheonewhichanycountrycanafford,isnecessarilylimitedbythatoftheother。Thequantityofwoolorofrawhides,forexample,whichanycountrycanaffordisnecessarilylimitedbythenumberofgreatandsmallcattlethatarekeptinit。Thestateofitsimprovement,andthenatureofitsagriculture,againnecessarilydeterminethisnumber。
Thesamecauseswhich,intheprogressofimprovement,graduallyraisethepriceofbutcher’smeat,shouldhavethesameeffect,itmaybethought,uponthepricesofwoolandrawhides,andraisethem,too,nearlyinthesameproportion。Itprobablywouldbesoif,intherudebeginningsofimprovement,themarketforthelattercommoditieswasconfinedwithinasnarrowboundsasthatfortheformer。Buttheextentoftheirrespectivemarketsiscommonlyextremelydifferent。
Themarketforbutcher’smeatisalmosteverywhereconfinedtothecountrywhichproducesit。Ireland,andsomepartofBritishAmericaindeed,carryonaconsiderabletradeinsaltprovisions;buttheyare,Ibelieve,theonlycountriesinthecommercialworldwhichdoso,orwhichexporttoothercountriesanyconsiderablepartoftheirbutcher’smeat。
Themarketforwoolandrawhides,onthecontrary,isintherudebeginningsofimprovementveryseldomconfinedtothecountrywhichproducesthem。Theycaneasilybetransportedtodistantcountries,woolwithoutanypreparation,andrawhideswithverylittle:andastheyarethematerialsofmanymanufactures,theindustryofothercountriesmayoccasionademandforthem,thoughthatofthecountrywhichproducesthemmightnotoccasionany。
Incountriesillcultivated,andthereforebutthinlyinhabited,thepriceofthewoolandthehidebearsalwaysamuchgreaterproportiontothatofthewholebeastthanincountrieswhere,improvementandpopulationbeingfurtheradvanced,thereismoredemandforbutcher’smeat。Mr。HumeobservesthatintheSaxontimesthefleecewasestimatedattwo—fifthsofthevalueofthewholesheep,andthatthiswasmuchabovetheproportionofitspresentestimation。InsomeprovincesofSpain,Ihavebeenassured,thesheepisfrequentlykilledmerelyforthesakeofthefleeceandthetallow。Thecarcaseisoftenlefttorotupontheground,ortobedevouredbybeastsandbirdsofprey。
IfthissometimeshappenseveninSpain,ithappensalmostconstantlyinChili,atBuenosAyres,andinmanyotherpartsofSpanishAmerica,wherethehornedcattlearealmostconstantlykilledmerelyforthesakeofthehideandthetallow。This,too,usedtohappenalmostconstantlyinHispaniola,whileitwasinfestedbytheBuccaneers,andbeforethesettlement,improvement,andpopulousnessoftheFrenchplantations(whichnowextendroundthecoastofalmostthewholewesternhalfoftheisland)hadgivensomevaluetothecattleoftheSpaniards,whostillcontinuetopossess,notonlytheeasternpartofthecoast,butthewholeinlandandmountainouspartofthecountry。
Thoughintheprogressofimprovementandpopulationthepriceofthewholebeastnecessarilyrises,yetthepriceofthecarcaseislikelytobemuchmoreaffectedbythisrisethanthatofthewoolandthehide。Themarketforthecarcase,beingintherudestateofsocietyconfinedalwaystothecountrywhichproducesit,mustnecessarilybeextendedinproportiontotheimprovementandpopulationofthatcountry。Butthemarketforthewoolandthehidesevenofabarbarouscountryoftenextendingtothewholecommercialworld,itcanveryseldombeenlargedinthesameproportion。Thestateofthewholecommercialworldcanseldombemuchaffectedbytheimprovementofanyparticularcountry;andthemarketforsuchcommoditiesmayremainthesameorverynearlythesameaftersuchimprovementsasbefore。Itshould,however,inthenaturalcourseofthingsratheruponthewholebesomewhatextendedinconsequenceofthem。Ifthemanufactures,especially,ofwhichthosecommoditiesarethematerialsshouldevercometoflourishinthecountry,themarket,thoughitmightnotbemuchenlarged,wouldatleastbebroughtmuchnearertotheplaceofgrowththanbefore;andthepriceofthosematerialsmightatleastbeincreasedbywhathadusuallybeentheexpenseoftransportingthemtodistantcountries。Thoughitmightnotrisethereforeinthesameproportionasthatofbutcher’smeat,itoughtnaturallytorisesomewhat,anditoughtcertainlynottofall。
InEngland,however,notwithstandingtheflourishingstateofitswoollenmanufacture,thepriceofEnglishwoolhasfallenveryconsiderablysincethetimeofEdwardIII。Therearemanyauthenticrecordswhichdemonstratethatduringthereignofthatprince(towardsthemiddleofthefourteenthcentury,orabout1339)whatwasreckonedthemoderateandreasonablepriceofthetod,ortwenty—eightpoundsofEnglishwool,wasnotlessthantenshillingsofthemoneyofthosetimes,containingattherateoftwentypencetheounce,sixouncesofsilverTowerweight,equaltoaboutthirtyshillingsofourpresentmoney。Inthepresenttimes,one—and—twentyshillingsthetodmaybereckonedagoodpriceforverygoodEnglishwool。Themoney—priceofwool,therefore,inthetimeofEdwardIII,wastoitsmoney—priceinthepresenttimesastentoseven。Thesuperiorityofitsrealpricewasstillgreater。Attherateofsixshillingsandeightpencethequarter,tenshillingswasinthoseancienttimesthepriceoftwelvebushelsofwheat。Attherateoftwenty—eightshillingsthequarter,one—and—twentyshillingsisinthepresenttimesthepriceofsixbushelsonly。Theproportionbetweentherealpricesofancientandmoderntimes,therefore,isastwelvetosix,orastwotoone。Inthoseancienttimesatodofwoolwouldhavepurchasedtwicethequantityofsubsistencewhichitwillpurchaseatpresent;andconsequentlytwicethequantityoflabour,iftherealrecompenseoflabourhadbeenthesameinbothperiods。
Thisdegradationbothintherealandnominalvalueofwoolcouldneverhavehappenedinconsequenceofthenaturalcourseofthings。Ithasaccordinglybeentheeffectofviolenceandartifice:first,oftheabsoluteprohibitionofexportingwoolfromEngland;secondly,ofthepermissionofimportingitfromSpaindutyfree;thirdly,oftheprohibitionofexportingitfromIrelandtoanyothercountrybutEngland。InconsequenceoftheseregulationsthemarketforEnglishwool,insteadofbeingsomewhatextendedinconsequenceoftheimprovementofEngland,hasbeenconfinedtothehomemarket,wherethewoolofseveralothercountriesisallowedtocomeintocompetitionwithit,andwherethatofIrelandisforcedintocompetitionwithit。Asthewoollenmanufactures,too,ofIrelandarefullyasmuchdiscouragedasisconsistentwithjusticeandfairdealing,theIrishcanworkupbutasmallpartoftheirownwoolathome,andare,therefore,obligedtosendagreaterproportionofittoGreatBritain,theonlymarkettheyareallowed。
Ihavenotbeenabletofindanysuchauthenticrecordsconcerningthepriceofrawhidesinancienttimes。Woolwascommonlypaidasasubsidytotheking,anditsvaluationinthatsubsidyascertains,atleastinsomedegree,whatwasitsordinaryprice。Butthisseemsnottohavebeenthecasewithrawhides。Fleetwood,however,fromanaccountin1425,betweenthepriorofBurcesterOxfordandoneofhiscanons,givesustheirprice,atleastasitwasstateduponthatparticularoccasion,viz。,fiveoxhidesattwelveshillings;fivecowhidesatsevenshillingsandthreepence;thirty—sixsheepskinsoftwoyearsoldatnineshillings;sixteencalvesskinsattwoshillings。In1425,twelveshillingscontainedaboutthesamequantityofsilverasfour—and—twentyshillingsofourpresentmoney。Anoxhide,therefore,wasinthisaccountvaluedatthesamequantityofsilveras4s。four—fifthsofourpresentmoney。Itsnominalpricewasagooddeallowerthanatpresent。Butattherateofsixshillingsandeightpencethequarter,twelveshillingswouldinthosetimeshavepurchasedfourteenbushelsandfour—fifthsofabushelofwheat,which,atthreeandsixpencethebushel,wouldinthepresenttimescost51s。4d。Anoxhide,therefore,wouldinthosetimeshavepurchasedasmuchcornastenshillingsandthreepencewouldpurchaseatpresent。Itsrealvaluewasequaltotenshillingsandthreepenceofourpresentmoney。Inthoseancienttimes,whenthecattlewerehalfstarvedduringthegreaterpartofthewinter,wecannotsupposethattheywereofaverylargesize。Anoxhidewhichweighsfourstoneofsixteenpoundsavoirdupoisisnotinthepresenttimesreckonedabadone;andinthoseancienttimeswouldprobablyhavebeenreckonedaverygoodone。Butathalf—a—crownthestone,whichatthismoment(February1773)Iunderstandtobethecommonprice,suchahidewouldatpresentcostonlytenshillings。Thoughitsnominalprice,therefore,ishigherinthepresentthanitwasinthoseancienttimes,itsrealprice,therealquantityofsubsistencewhichitwillpurchaseorcommand,israthersomewhatlower。Thepriceofcowhides,asstatedintheaboveaccount,isnearlyinthecommonproportiontothatofoxhides。Thatofsheepskinsisagooddealaboveit。Theyhadprobablybeensoldwiththewool。Thatofcalvesskins,onthecontrary,isgreatlybelowit。Incountrieswherethepriceofcattleisverylow,thecalves,whicharenotintendedtoberearedinordertokeepupthestock,aregenerallykilledveryyoung;aswasthecaseinScotlandtwentyorthirtyyearsago。Itsavesthemilk,whichtheirpricewouldnotpayfor。Theirskins,therefore,arecommonlygoodforlittle。
Thepriceofrawhidesisagooddealloweratpresentthanitwasafewyearsago,owingprobablytothetakingoffthedutyuponsealskins,andtotheallowing,foralimitedtime,theimportationofrawhidesfromIrelandandfromtheplantationsdutyfree,whichwasdonein1769。Takethewholeofthepresentcenturyatanaverage,theirrealpricehasprobablybeensomewhathigherthanitwasinthoseancienttimes。Thenatureofthecommodityrendersitnotquitesoproperforbeingtransportedtodistantmarketsaswool。Itsuffersmorebykeeping。Asaltedhideisreckonedinferiortoafreshone,andsellsforalowerprice。Thiscircumstancemustnecessarilyhavesometendencytosinkthepriceofrawhidesproducedinacountrywhichdoesnotmanufacturethem,butisobligedtoexportthem;andcomparativelytoraisethatofthoseproducedinacountrywhichdoesmanufacturethem。Itmusthavesometendencytosinktheirpriceinabarbarous,andtoraiseitinanimprovedandmanufacturingcountry。Itmusthavehadsometendency,therefore,tosinkitinancientandtoraiseitinmoderntimes。Ourtanners,besides,havenotbeenquitesosuccessfulasourclothiersinconvincingthewisdomofthenationthatthesafetyofthecommonwealthdependsupontheprosperityoftheirparticularmanufacture。Theyhaveaccordinglybeenmuchlessfavoured。Theexportationofrawhideshas,indeed,beenprohibited,anddeclaredanuisance;buttheirimportationfromforeigncountrieshasbeensubjectedtoaduty;
andthoughthisdutyhasbeentakenofffromthoseofIrelandandtheplantations(forthelimitedtimeoffiveyearsonly),yetIrelandhasnotbeenconfinedtothemarketofGreatBritainforthesaleofitssurplushides,orofthosewhicharenotmanufacturedathome。Thehidesofcommoncattlehavebutwithinthesefewyearsbeenputamongtheenumeratedcommoditieswhichtheplantationscansendnowherebuttothemothercountry;
neitherhasthecommerceofIrelandbeeninthiscaseoppressedhithertoinordertosupportthemanufacturesofGreatBritain。
Whateverregulationstendtosinkthepriceeitherofwoolorofrawhidesbelowwhatitnaturallywouldbemust,inanimprovedandcultivatedcountry,havesometendencytoraisethepriceofbutcher’smeat。Thepricebothofthegreatandsmallcattle,whicharefedonimprovedandcultivatedland,mustbesufficienttopaytherentwhichthelandlordandtheprofitwhichthefarmerhasreasontoexpectfromimprovedandcultivatedland。Ifitisnot,theywillsoonceasetofeedthem。
Whateverpartofthisprice,therefore,isnotpaidbythewoolandthehidemustbepaidbythecarcase。Thelessthereispaidfortheone,themoremustbepaidfortheother。Inwhatmannerthispriceistobedivideduponthedifferentpartsofthebeastisindifferenttothelandlordsandfarmers,provideditisallpaidtothem。Inanimprovedandcultivatedcountry,therefore,theirinterestaslandlordsandfarmerscannotbemuchaffectedbysuchregulations,thoughtheirinterestasconsumersmay,bytheriseinthepriceofprovisions。Itwouldbequiteotherwise,however,inanunimprovedanduncultivatedcountry,wherethegreaterpartofthelandscouldbeappliedtonootherpurposebutthefeedingofcattle,andwherethewoolandthehidemadetheprincipalpartofthevalueofthosecattle。Theirinterestaslandlordsandfarmerswouldinthiscasebeverydeeplyaffectedbysuchregulations,andtheirinterestasconsumersverylittle。Thefallinthepriceofwoolandthehidewouldnotinthiscaseraisethepriceofthecarcase,becausethegreaterpartofthelandsofthecountrybeingapplicabletonootherpurposebutthefeedingofcattle,thesamenumberwouldstillcontinuetobefed。Thesamequantityofbutcher’smeatwouldstillcometomarket。Thedemandforitwouldbenogreaterthanbefore。Itsprice,therefore,wouldbethesameasbefore。Thewholepriceofcattlewouldfall,andalongwithitboththerentandtheprofitofallthoselandsofwhichcattlewastheprincipalproduce,thatis,ofthegreaterpartofthelandsofthecountry。Theperpetualprohibitionoftheexportationofwool,whichiscommonly,butveryfalsely,ascribedtoEdwardIII,would,inthethencircumstancesofthecountry,havebeenthemostdestructiveregulationwhichcouldwellhavebeenthoughtof。Itwouldnotonlyhavereducedtheactualvalueofthegreaterpartofthelandsofthekingdom,butbyreducingthepriceofthemostimportantspeciesofsmallcattleitwouldhaveretardedverymuchitssubsequentimprovement。
ThewoolofScotlandfellveryconsiderablyinitspriceinconsequenceoftheunionwithEngland,bywhichitwasexcludedfromthegreatmarketofEurope,andconfinedtothenarrowoneofGreatBritain。ThevalueofthegreaterpartofthelandsinthesoutherncountiesofScotland,whicharechieflyasheepcountry,wouldhavebeenverydeeplyaffectedbythisevent,hadnottheriseinthepriceofbutcher’smeatfullycompensatedthefallinthepriceofwool。
Astheefficacyofhumanindustry,inincreasingthequantityeitherofwoolorofrawhides,islimited,sofarasitdependsupontheproduceofthecountrywhereitisexerted;soitisuncertainsofarasitdependsupontheproduceofothercountries。Itsofardepends,notsomuchuponthequantitywhichtheyproduce,asuponthatwhichtheydonotmanufacture;andupontherestraintswhichtheymayormaynotthinkpropertoimposeupontheexportationofthissortofrudeproduce。Thesecircumstances,astheyarealtogetherindependentofdomesticindustry,sotheynecessarilyrendertheefficacyofitseffortsmoreorlessuncertain。Inmultiplyingthissortofrudeproduce,therefore,theefficacyofhumanindustryisnotonlylimited,butuncertain。
Inmultiplyinganotherveryimportantsortofrudeproduce,thequantityoffishthatisbroughttomarket,itislikewisebothlimitedanduncertain。Itislimitedbythelocalsituationofthecountry,bytheproximityordistanceofitsdifferentprovincesfromthesea,bythenumberofitslakesandrivers,andbywhatmaybecalledthefertilityorbarrennessofthoseseas,lakes,andrivers,astothissortofrudeproduce。Aspopulationincreases,astheannualproduceofthelandandlabourofthecountrygrowsgreaterandgreater,therecometobemorebuyersoffish,andthosebuyers,too,haveagreaterquantityandvarietyofothergoods,or,whatisthesamething,thepriceofagreaterquantityandvarietyofothergoodstobuywith。Butitwillgenerallybeimpossibletosupplythegreatandextendedmarketwithoutemployingaquantityoflabourgreaterthaninproportiontowhathadbeenrequisiteforsupplyingthenarrowandconfinedone。Amarketwhich,fromrequiringonlyonethousand,comestorequireannuallytenthousandtonsoffish,canseldombesuppliedwithoutemployingmorethantentimesthequantityoflabourwhichhadbeforebeensufficienttosupplyit。
Thefishmustgenerallybefoughtforatagreaterdistance,largervesselsmustbeemployed,andmoreexpensivemachineryofeverykindmadeuseof。Therealpriceofthiscommodity,therefore,naturallyrisesintheprogressofimprovement。Ithasaccordinglydoneso,Ibelieve,moreorlessineverycountry。
Thoughthesuccessofaparticularday’sfishingmaybeaveryuncertainmatter,yet,thelocalsituationofthecountrybeingsupposed,thegeneralefficacyofindustryinbringingacertainquantityoffishtomarket,takingthecourseofayear,orofseveralyearstogether,itmayperhapsbethoughtiscertainenough;anditnodoubtisso。Asitdependsmore,however,uponthelocalsituationofthecountrythanuponthestateofitswealthandindustry;asuponthisaccountitmayindifferentcountriesbethesameinverydifferentperiodsofimprovement,andverydifferentinthesameperiod;itsconnectionwiththestateofimprovementisuncertain,anditisofthissortofuncertaintythatIamherespeaking。
Inincreasingthequantityofthedifferentmineralsandmetalswhicharedrawnfromthebowelsoftheearth,thatofthemorepreciousonesparticularly,theefficacyofhumanindustryseemsnottobelimited,buttobealtogetheruncertain。
Thequantityofthepreciousmetalswhichistobefoundinanycountryisnotlimitedbyanythinginitslocalsituation,suchasthefertilityorbarrennessofitsownmines。Thosemetalsfrequentlyaboundincountrieswhichpossessnomines。
Theirquantityineveryparticularcountryseemstodependupontwodifferentcircumstances;first,uponitspowerofpurchasing,uponthestateofitsindustry,upontheannualproduceofitslandandlabour,inconsequenceofwhichitcanaffordtoemployagreaterorasmallerquantityoflabourandsubsistenceinbringingorpurchasingsuchsuperfluitiesasgoldandsilver,eitherfromitsownminesorfromthoseofothercountries;and,secondly,uponthefertilityorbarrennessofthemineswhichmayhappenatanyparticulartimetosupplythecommercialworldwiththosemetals。Thequantityofthosemetalsinthecountriesmostremotefromtheminesmustbemoreorlessaffectedbythisfertilityorbarrenness,onaccountoftheeasyandcheaptransportationofthosemetals,oftheirsmallbulkandgreatvalue。TheirquantityinChinaandIndostanmusthavebeenmoreorlessaffectedbytheabundanceoftheminesofAmerica。
Sofarastheirquantityinanyparticularcountrydependsupontheformerofthosetwocircumstances(thepowerofpurchasing),theirrealprice,likethatofallotherluxuriesandsuperfluities,islikelytorisewiththewealthandimprovementofthecountry,andtofallwithitspovertyanddepression。Countrieswhichhaveagreatquantityoflabourandsubsistencetosparecanaffordtopurchaseanyparticularquantityofthosemetalsattheexpenseofagreaterquantityoflabourandsubsistencethancountrieswhichhavelesstospare。
Sofarastheirquantityinanyparticularcountrydependsuponthelatterofthosetwocircumstances(thefertilityorbarrennessofthemineswhichhappentosupplythecommercialworld),theirrealprice,therealquantityoflabourandsubsistencewhichtheywillpurchaseorexchangefor,will,nodoubt,sinkmoreorlessinproportiontothefertility,andriseinproportiontothebarrennessofthosemines。
Thefertilityorbarrennessofthemines,however,whichmayhappenatanyparticulartimetosupplythecommercialworld,isacircumstancewhich,itisevident,mayhavenosortofconnectionwiththestateofindustryinaparticularcountry。Itseemseventohavenoverynecessaryconnectionwiththatoftheworldingeneral。Asartsandcommerce,indeed,graduallyspreadthemselvesoveragreaterandagreaterpartoftheearth,thesearchfornewmines,beingextendedoverawidersurface,mayhavesomewhatabetterchanceforbeingsuccessfulthanwhenconfinedwithinnarrowerbounds。Thediscoveryofnewmines,however,astheoldonescometobegraduallyexhausted,isamatterofthegreatestuncertainty,andsuchasnohumanskillorindustrycanensure。Allindications,itisacknowledged,aredoubtful,andtheactualdiscoveryandsuccessfulworkingofanewminecanaloneascertaintherealityofitsvalue,orevenofitsexistence。Inthissearchthereseemtobenocertainlimitseithertothepossiblesuccessortothepossibledisappointmentofhumanindustry。Inthecourseofacenturyortwo,itispossiblethatnewminesmaybediscoveredmorefertilethananythathaveeveryetbeenknown;anditisjustequallypossiblethemostfertileminethenknownmaybemorebarrenthananythatwaswroughtbeforethediscoveryoftheminesofAmerica。Whethertheoneortheotherofthosetwoeventsmayhappentotakeplaceisofverylittleimportancetotherealwealthandprosperityoftheworld,totherealvalueoftheannualproduceofthelandandlabourofmankind。Itsnominalvalue,thequantityofgoldandsilverbywhichthisannualproducecouldbeexpressedorrepresented,would,nodoubt,beverydifferent;butitsrealvalue,therealquantityoflabourwhichitcouldpurchaseorcommand,wouldbepreciselythesame。Ashillingmightintheonecaserepresentnomorelabourthanapennydoesatpresent;andapennyintheothermightrepresentasmuchasashillingdoesnow。Butintheonecasehewhohadashillinginhispocketwouldbenoricherthanhewhohasapennyatpresent;andintheotherhewhohadapennywouldbejustasrichashewhohasashillingnow。Thecheapnessandabundanceofgoldandsilverplatewouldbethesoleadvantagewhichtheworldcouldderivefromtheoneevent,andthedearnessandscarcityofthosetriflingsuperfluitiestheonlyinconveniencyitcouldsufferfromtheother。
CONCLUSIONOFTHEDIGRESSIONCONCERNINGTHEVARIATIONSIN
THEVALUEOFSILVER
Thegreaterpartofthewriterswhohavecollectedthemoneypricesofthingsinancienttimesseemtohaveconsideredthelowmoney—priceofcorn,andofgoodsingeneral,or,inotherwords,thehighvalueofgoldandsilver,asaproof,notonlyofthescarcityofthosemetals,butofthepovertyandbarbarismofthecountryatthetimewhenittookplace。Thisnotionisconnectedwiththesystemofpoliticaleconomywhichrepresentsnationalwealthasconsistingintheabundance,andnationalpovertyinthescarcityofgoldandsilver;asystemwhichIshallendeavourtoexplainandexamineatgreatlengthinthefourthbookofthisinquiry。Ishallonlyobserveatpresentthatthehighvalueofthepreciousmetalscanbenoproofofthepovertyorbarbarismofanyparticularcountryatthetimewhenittookplace。Itisaproofonlyofthebarrennessofthemineswhichhappenedatthattimetosupplythecommercialworld。Apoorcountry,asitcannotaffordtobuymore,soitcanaslittleaffordtopaydearerforgoldandsilverthanarichone;andthevalueofthosemetals,therefore,isnotlikelytobehigherintheformerthaninthelatter。InChina,acountrymuchricherthananypartofEurope,thevalueofthepreciousmetalsismuchhigherthaninanypartofEurope。AsthewealthofEurope,indeed,hasincreasedgreatlysincethediscoveryoftheminesofAmerica,sothevalueofgoldandsilverhasgraduallydiminished。Thisdiminutionoftheirvalue,however,hasnotbeenowingtotheincreaseoftherealwealthofEurope,oftheannualproduceofitslandandlabour,buttotheaccidentaldiscoveryofmoreabundantminesthananythatwereknownbefore。TheincreaseofthequantityofgoldandsilverinEurope,andtheincreaseofitsmanufacturesandagriculture,aretwoeventswhich,thoughtheyhavehappenednearlyaboutthesametime,yethavearisenfromverydifferentcauses,andhavescarceanynaturalconnectionwithoneanother。
Theonehasarisenfromamereaccident,inwhichneitherprudencenorpolicyeitherhadorcouldhaveanyshare。Theotherfromthefallofthefeudalsystem,andfromtheestablishmentofagovernmentwhichaffordedtoindustrytheonlyencouragementwhichitrequires,sometolerablesecuritythatitshallenjoythefruitsofitsownlabour。Poland,wherethefeudalsystemstillcontinuestotakeplace,isatthisdayasbeggarlyacountryasitwasbeforethediscoveryofAmerica。Themoneypriceofcorn,however,hasrisen;therealvalueofthepreciousmetalshasfalleninPoland,inthesamemannerasinotherpartsofEurope。Theirquantity,therefore,musthaveincreasedthereasinotherplaces,andnearlyinthesameproportiontotheannualproduceofitslandandlabour。Thisincreaseofthequantityofthosemetals,however,hasnot,itseems,increasedthatannualproduce,hasneitherimprovedthemanufacturesandagricultureofthecountry,normendedthecircumstancesofitsinhabitants。SpainandPortugal,thecountrieswhichpossessthemines,are,afterPoland,perhaps,thetwomostbeggarlycountriesinEurope。Thevalueofthepreciousmetals,however,mustbelowerinSpainandPortugalthaninanyotherpartofEurope;astheycomefromthosecountriestoallotherpartsofEurope,loaded,notonlywithafreightandaninsurance,butwiththeexpenseofsmuggling,theirexportationbeingeitherprohibited,orsubjectedtoaduty。Inproportiontotheannualproduceofthelandandlabour,therefore,theirquantitymustbegreaterinthosecountriesthaninanyotherpartofEurope。
Thosecountries,however,arepoorerthanthegreaterpartofEurope。ThoughthefeudalsystemhasbeenabolishedinSpainandPortugal,ithasnotbeensucceededbyamuchbetter。
Asthelowvalueofgoldandsilver,therefore,isnoproofofthewealthandflourishingstateofthecountrywhereittakesplace;soneitheristheirhighvalue,orthelowmoneypriceeitherofgoodsingeneral,orofcorninparticular,anyproofofitspovertyandbarbarism。