have ever been written on the subjects to which they relate, are, however, so introduced, as to distract the reader's attention – to make him lose sight of the principal object of the work – and to lessen the general effect of it as a whole.
To remedy, as far as I am able, these inconveniencies, and to facilitate to beginners the study of the doctrine of Smith, I have thought proper to point out the order which appears to me most agreeable to the natural progress of ideas, and, on this account, best calculated for the purpose of instruction.
I would begin by remarking, that the whole doctrine of Smith, upon the origin, multiplication, and distribution of wealth, is contained in his two first books; and that the three others may be read separately, as so many detached treatises, which, no doubt, confirm and develope his opinions, but do not by any means add to them.
The third book is an historical and political discussion on the progress which wealth would make in a country where labour and industry were left free; and upon the different causes which have tended, in all the countries of Europe, to reverse this progress.
In the fourth book, the author has endeavoured to combat the various systems of political economy which were popular previous to his time; and, in a particular manner, that which is denominated the mercantile system, which has exercised so strong an influence over the financial regulations of the European governments, and particularly over those of England.
In the fifth and last book, he considers the expenses of government; the most equitable and convenient modes of providing for these expenses; and lastly, public debts, and the influence they have over national prosperity.
The three last books may be read and studied in the same order and arrangement in which they were written, without any difficulty, by one who is completely master of the general doctrine contained in the two first.
I regard, then, the two first books, as a complete work, which I would divide into three parts.
The 1st relates to values in particular. It contains their definition; the laws which regulate them; the analysis of the elements which constitute a value, or enter into its composition; and the relations which values of different origin bear to each other.
The 2d part treats of the general mass of national wealth, which is here divided into separate classes, according to its destination or employment.
The 3d and last part explains the manner in which the growth and distribution of national wealth takes place.
PART FIRST. – OF VALUES IN PARTICULAR
The essential quality which constitutes wealth, and without which it would not be entitled to the name, is its exchangeable value.
Exchangeable value differs from the value of utility – book 1, end of chap. iv.
The relation existing between two exchangeable values, when expressed by a value generally agreed upon, is denominated price.
The value generally agreed on among civilized nations, is that of metals. Motives to this preference. Origin of money – book 1, chap. iv. Relation between money and the metal in the state of bullion – book 1, chap. v.
The price in money, or nominal price of a thing, differs from its real price, which is its valuation by the quantity of labour expended upon it, or which it represents – ibid.
Laws, according to which the price of wealth is naturally fixed; and those accidental circumstances which occasion the actual to differ from the natural price, and which gave rise to a distinction between the natural and the market price– book 1, chap. vii.
The price of a thing, in most cases, consists of three distinct elements – the wages of the labour, the profit of the master who directs the labour, and the rent of the ground that furnishes the materials on which it is erected. There are, however, some descriptions of merchandize in which the rent forms no part of the price; and others, in which the profit forms no part of it; but none, in which it is not formed principally by the wages – book 1, chap. vi.
Of wages. Laws, according to which the natural rate of wages is fixed; accidental circumstances which cause them to vary, during a short period, from that natural rate – book 1, chap. viii.
Of the profit of capitals. Laws, by which the natural right of profit is fixed; accidental circumstances which, for a long while, increase or diminish it beyond that rate – book 1, chap. ix.
Labour and capitals tend naturally to diffuse themselves through every species of employment; and, as certain employments are, by their nature, accompanied with inconveniencies and difficulties which do not occur in others, while these, on the contrary, offer some real or imaginary advantages which are peculiar to themselves; wages and profits should rise and fall in proportion to these advantages and disadvantages; thus forming a complete equilibrium between the various kinds of employment. The arbitrary and oppressive policy of Europe, in many instances, opposes the establishment of this equilibrium, which is conformable to the order of nature – book 1, chap. x.
Of the rent of the ground. The nature of rent: the manner in which it enters into the price of wealth; and according to what principles it in some cases forms an integral part of that price, while in others it does not – book 1, chap. xi.
Division of the rude produce of the earth into two great classes:
1. That produce which is always necessarily disposed of in such a way as to bring a rent to the landed proprietor.
2. That which, according to circumstances, may be disposed of so as to bring, or so as not to bring, a rent.
The produce of the first description is derived from the ground appropriated to furnishing subsistence for man, or for those animals which he uses as food. The value of the produce of the ground cultivated for the support of man, determines the value of the produce of all other ground proper for this species of culture. This general rule allows of some exceptions. Causes of these exceptions.
The produce of the second class consists of the materials of clothing, lodging, fuel, and the ornaments of dress and furniture. The value of this species of produce depends on that of the first description. Some circumstances render it possible that the produce of the second kind may be disposed of in such a way as to furnish a rent to the landed proprietor. Principles which regulate the proportion of the price of these products, which is formed by the rent – book 1, chap. xi.
Relation between the respective values of the produce of the first class, and those of the produce of the second. Variations which may take place in this relation, and the causes of such variations – ibid.
Relation existing between the values of the two descriptions of rude produce above mentioned, and the values of the produce of manufacture. Variations which may occur in this relation – ibid.
Certain kinds of rude produce, procured from very different sources, are, however, intended for the same kind of consumption; and hence it happens, the value of one determines and limits that of another – ibid.
The relations between values of different natures vary according to the state of society. This state is improving, declining, or stationary; that is to say, society is either increasing in wealth, or falling into poverty, or remaining in the same unchanged state of opulence.
Of the effects of these different states of society,
Upon the price of wages – book 1, chap. viii.
Upon the rate of profit –
