either from its own inines, or from those of
other countries; and, secondly, upon the fer-
tility or barrenness of the mines which may
happen at any particular time to supply the
commercial world with those metals. The
quantity of those metals in the countries most
remote from the mines, must be more or less
affected by this fertility or barrenness, on ac-
count of the easy and cheap transportation of
these metals, of their small bulk and great
value. Their quantity in China and Indostan
must have been more or less affected by the
abundance of the mines of America.

sea, by the number of its lakes and rivers, and
by what may be called the fertility or barren-
ness of those seas, lakes, and rivers, as to this
sort of rude produce. As population in-
creases, as the annual produce of the land and
labour of the country grows greater and great-
er, there come to be more buyers of fish; and
those buyers, too, have a greater quantity and
variety of other goods, or, what is the same
thing, the price of a greater quantity and va-
riety of other goods, to buy with. But it will
generally be impossible to supply the great
and extended market, without employing a
quantity of labour greater than in proportion So far as their quantity in any particular
to what had been requisite for supplying the country depends upon the former of those two
narrow and confined one. A market which, circumstances (the power of purchasing), their
from requiring only one thousand, comes to real price, like that of all other luxuries and
require annually ten thousand ton of fish, can superfluities, is likely to rise with the wealth
seldom be supplied, without employing more and improvement of the country, and to fall
than ten times the quantity of labour which with its poverty and depression. Countries
had before been sufficient to supply it. The which have a great quantity of labour and
fish must generally be sought for at a greater subsistence to spare, can afford to purchase
distance, larger vessels must be employed, and any particular quantity of those metals at the
more expensive machinery of every kind made expense of a greater quantity of labour and
use of.
The real price of this commodity, subsistence, than countries which have less to
therefore, naturally rises in the progress of spare.
improvement. It has accordingly done so, I So far as their quantity in any particular
believe, more or less in every country.
country depends upon the latter of those two
Though the success of a particular day's circumstances (the fertility or barrenness of
fishing may be a very uncertain matter, yet the mines which happen to supply the com-
the local situation of the country being sup-mercial world), their real price, the real quan-
posed, the general efficacy of industry in bring- tity of labour and subsistence which they will
ing a certain quantity of fish to market, tak- purchase or exchange for, will, no doubt,
ing the course of a year, or of several years sink more or less in proportion to the fertili
together, it may, perhaps, be thought is cer- ty, and rise in proportion to the barrenness of
tain enough; and it, no doubt, is so. As it those mines.
depends more, however, upon the local situa-
tion of the country, than upon the state of its
wealth and industry; as upon this account it
may in different countries be the same in very
different periods of improvement, and very
different in the same period; its connection
with the state of improvement is uncertain;
and it is of this sort of uncertainty that I am
here speaking.

The fertility or barrenness of the mines,
however, which may happen at any particu
lar time to supply the commercial world, is a
circumstance which, it is evident, may have
no sort of connection with the state of indus-
try in a particular country. It seems even to
have no very necessary connection with that
of the world in general. As arts and com-
merce, indeed, gradually spread themselves
over a greater and a greater part of the earth,
the search for new mines, being extended over
a wider surface, may have somewhat a better
chance for being successful than when con-
fined within narrower bounds. The discovery
of new mines, however, as the old ones come
The quantity of the precious metals which to be gradually exhausted, is a matter of the
is to be found in any country, is not limited greatest uncertainty, and such as no human
by any thing in its local situation, such as the skill or industry can insure.
fertility or barrenness of its own mines. Those it is acknowledged, are doubtful; and the ac-
metals frequently abound in countries which tual discovery and successful working of a
possess no mines.
Their quantity, in every new mine can alone ascertain the reality of its
particular country, seems to depend upon two value, or even of its existence. In this search
different circumstances; first, upon its power there seem to be no certain limits, either te
of purchasing, upon the state of its industry, the possible success, or to the possible disap-
upon the annual produce of its land and la- pointment of human industry. In the course
bour, in consequence of which it can afford of a century or two, it is possible that new
to employ a greater or a smaller quantity of mines may be discovered, more fertile that
labour and subsistence, in bringing or pur- any that have ever yet been known; and it is
chasing such superfluities as gold and silver, just equally possible, that the most fertile mine

In increasing the quantity of the different minerals and metals which are drawn from the bowels of the earth, that of the more precious ones particularly, the efficacy of human industry seems not to be limited, but to be altogether uncertain.

All indications,

a

then known may be inore barren than any that nution of their value, however, has not been was wrought before the discovery of the mines owing to the increase of the real wealth of of America. Whether the one or the other of Europe, of the annual produce of its land those two events may happen to take place, is and labour, but to the accidental discovery of of very little importance to the real wealth more abundant mines than any that were and prosperity of the world, to the real value known before. The increase of the quantity of the annual produce of the land and labour of gold and silver in Europe, and the increase of mankind. Its nominal value, the quantity of its manufactures and agriculture, are two of gold and silver by which this annual pro- events which, though they have happened duce could be expressed or represented, would, nearly about the same time, yet have arisen no doubt, be very different; but its real va- from very different causes, and have scarce lue, the real quantity of labour which it could any natural connection with one another. The purchase or command, would be precisely the one has arisen from a mere accident, in which same. A shilling might, in the one case, re- neither prudence nor policy either had or could present no more labour than a penny does at have any share; the other, from the fall of present; and a penny, in the other, might re- the feudal system, and from the establishment present as much as a shilling does now. But of a government which afforded to industry in the one case, he who had a shilling in his the only encouragement which it requires, pocket would be no richer than he who has a some tolerable security that it shall enjoy the penny at present; and in the other, he who had a penny would be just as rich as he who has a shilling now. The cheapness and abundance of gold and silver plate would be the sole advantage which the world could derive from the one event; and the dearness and scarcity of those trifling superfluities, the only inconveniency it could suffer from the other.

Conclusion of the Digression concerning the

riations in the Value of Silver.

fruits of its own labour. Poland, where the feudal system still continues to take place, is at this day as beggarly a country as it was before the discovery of America. The money price of corn, however, has risen; the real value of the precious metals has fallen in Poland, in the same manner as in other parts of Europe. Their quantity, therefore, must have increased there as in other places, and nearly in the same proportion to the annual produce Va-of its land and labour. This increase of the quantity of those metals, however, has not, it seems, increased that annual produce, has neiThe greater part of the writers who have ther improved the manufactures and agricul collected the money price of things in ancient ture of the country, nor mended the circumtimes, seem to have considered the low money stances of its inhabitants. Spain and Portuprice of corn, and of goods in general, or, in gal, the countries which possess the mines, other words, the high value of gold and sil- are, after Poland, perhaps the two most begver, as a proof, not only of the scarcity of garly countries in Europe. The value of the those metals, but of the poverty and barba- precious metals, however, must be lower in rism of the country at the time when it took Spain and Portugal than in any other part of place. This notion is connected with the sys- Europe, as they come from those countries to tem of political economy, which represents all other parts of Europe, loaded, not only national wealth as consisting in the abundance with a freight and an insurance, but with the and national poverty in the scarcity, of gold expense of smuggling, their exportation beand silver; a system which I shall endeavour ing either prohibited or subjected to a duty. to explain and examine at great length in the In proportion to the annual produce of the fourth book of this Inquiry. I shall only ob- land and labour, therefore, their quantity must serve at present, that the high value of the be greater in those countries than in any other precious metals can be no proof of the poverty part of Europe; those countries, however, or barbarism of any particular country at the are poorer than the greater part of Europe. time when it took place. It is a proof only Though the feudal system has been abolished of the barrennes of the mines which happened in Spain and Portugal, it has not been sucat that time to supply the commercial world. ceeded by a much better. A poor country, as it cannot afford to buy more, so it can as little afford to pay dearer for gold and silver than a rich one; and the value of those metals, therefore, is not likely to be higher in the former than in the latter. In China, a country much richer than any part of Europe, the value of the precious metals is much higher than in any part of Eu

rope.

As the low value of gold and silver, therefore, is no proof of the wealth and flourishing state of the country where it takes place; so neither is their high value, or the low money price either of goods in general, or of corn in particular, any proof of its poverty and barbarism.

But though the low money price, either of As the wealth of Europe, indeed, has goods in general, or of corn in particular, be increased greatly since the discovery of the no proof of the poverty or barbarism of the mines of America, so the value of gold and times, the low money price of some particu silver has gradually diminished. This dimilar sorts of goods, such as cattle, poultry

of

The evidence is more complete than could well have been expected in a matter which is naturally so very difficult to be ascertained.

As to the high price of corn during these last ten or twelve years, it can be sufficiently accounted for from the badness of the seasons, without supposing any degradation in the value of silver.

game of all kinds, &c. in proportion to that | ferent markets in France, which have beer corn, is a most decisive one. It clearly de-collected with great diligence and fidelity by monstrates, first, their great abundance in pro- Mr Messance, and by Mr Dupré de St Maur. portion to that of corn, and, consequently, the great extent of the land which they occupied in proportion to what was occupied by corn; and, secondly, the low value of this land in proportion to that of corn land, and, conse quently, the uncultivated and unimproved state of the far greater part of the lands of the country. It clearly demonstrates, that the stock and population of the country did not bear The opinion, therefore, tnat silver is contithe same proportion to the extent of its ter-nually sinking in its value, seems not to be ritory, which they commonly do in civilized founded upon any good observations, either countries; and that society was at that time, upon the prices of corn, or upon those of and in that country, but in its infancy. From other provisions. the high or low money price, either of goods in general, or of corn in particular, we can infer only, that the mines, which at that time happened to supply the commercial world with gold and silver, were fertile or barren, not that the country was rich or poor. But from the high or low money price of some sorts of goods in proportion to that of others, we can infer, with a degree of probability that approaches almost to certainty, that it was rich or poor, that the greater part of its lands were improved or unimproved, and that it was either in a more or less barbarous state, or in a more or less civilized one.

The same quantity of silver, it may perhaps be said, will, in the present times, even according to the account which has been here give., purchase a much smaller quantity of several sorts of provisions than it would have done during some part of the last century; and to ascertain whether this change be owing to a rise in the value of those goods, or to a fall in the value of silver, is only to establish a vain and useless distinction, which can be of no sort of service to the man who has only a certain quantity of silver to go to market with, or a certain fixed revenue in money. I certainly do not pretend that the knowledge of this distinction will enable him to buy cheaper. It may not, however, upon that account be a!together useless.

Any rise in the money price of goods which proceeded altogether from the degradation of the value of silver, would affect all sorts of goods equally, and raise their price universally, It may be of some use to the public, by af a third, or a fourth, or a fifth part higher, ac- fording an easy proof of the prosperous con.. cording as silver happened to lose a third, or dition of the country. If the rise in the price a fourth, or a fifth part of its former value. of some sorts of provisions be owing altogeth But the rise in the price of provisions, which er to a fall in the value of silver, it is owing has been the subject of so much reasoning to a circumstance, from which nothing can be and conversation, does not affect all sorts of inferred but the fertility of the American provisions equally. Taking the course of the mines. The real wealth of the country, the present century at an average, the price of annual produce of its land and labour, may, corn, it is acknowledged, even by those who notwithstanding this circumstance, be either account for this rise by the degradation of the gradually declining, as in Portugal and Polvalue of silver, has risen much less than that and; or gradually advancing, as in most other of some other sorts of provisions. The rise parts of Europe. But if this rise in the price in the price of those other sorts of provisions, of some sorts of provisions be owing to a rise therefore, cannot be owing altogether to the in the real value of the land which produces degradation of the value of silver. Some them, to its increased fertility, or, in conse other causes must be taken into the account;quence of more extended improvement and and those which have been above assigned, good cultivation, to its having been rendered will, perhaps, without having recourse to the supposed degradation of the value of silver, sufficiently explain this rise in those particular sorts of provisions, of which the price has actually risen in proportion to that of corn.

fit for producing corn; it is owing to a circumstance which indicates, in the clearest manner, the prosperous and advancing state of the country. The land constitutes by far the greatest, the most important, and the most durable part of the wealth of every extensive country. It may surely be of some use, or, at least, it may give some satisfaction to the public, to have so decisive a proof of the increasing value of by far the greatest, the most important, and the most durable part of its wealth.

As to the price of corn itself, it has, during the sixty-four first years of the present century, and before the late extraordinary course of bad seasons, been somewhat lower than it was during the sixty-four last years of the preceding century. This fact is attested, not only by the accounts of Windsor market, but by the public fiars of all the different counties of It may, too, be of some use to the public, Scotland, and by the accounts of several dif-in regulating the pecuniary reward of some of

at all.

the real Price of Manufactures.

its inferior servants. If this rise in the price rise in the price of any other sort of rude pro of some sorts of provisions be owing to a fall duce cannot much affect them. They suffer in the value of silver, their pecuniary reward, more, perhaps, by the artificial rise which has provided it was not too large before, ought been occasioned by taxes in the price of some certainly to be augmented in proportion to manufactured commodities, as of salt, soap, the extent of this fall. If it is not augment- leather, candles, malt, beer, ale, &c. ed, their real recompence will evidently be so much diminished. But if this rise of price is owing to the increased value, in consequence Effects of the Progress of Improvement upon of the improved fertility of the land which produces such provisions, it becomes a much nicer matter to judge, either in what proporIt is the natural effect of improvement, tion any pecuniary reward ought to be aug- however, to diminish gradually the real price mented, or whether it ought to be augmented of almost all manufactures. That of the maThe extension of improvement and nufacturing workmanship diminishes, perhaps, cultivation, as it necessarily raises more or less, in all of them without exception. In consein proportion to the price of corn, that of quence of better machinery, of greater dexte every sort of animal food, so it as necessarily rity, and of a more proper division and distri. lowers that of, I believe, every sort of vege-bution of work, all of which are the natural table food. It raises the price of animal effects of improvement, a much smaller quanfood; because a great part of the land which tity of labour becomes requisite for executing produces it, being rendered fit for producing any particular piece of work; and though, in corn, must afford to the landford and farmer consequence of the flourishing circumstances the rent and profit of corn land. It lowers the price of vegetable food; because, by increasing the fertility of the land, it increases its abundance. The improvements of agriculture, too, introduce many sorts of vegetable food, which requiring less land, and not more There are, indeed, a few manufactures, in labour than corn, come much cheaper to mar-which the necessary rise in the real price of ket. Such are potatoes and maize, or what is the rude materials will more than compensate called Indian corn, the two most important all the advantages which improvement can inimprovements which the agriculture of Eu- troduce into the execution of the work rope, perhaps, which Europe itself, has receiv- carpenters' and joiners' work, and in the ed from the great extension of its commerce coarser sort of cabinet work, the necessary and navigation. Many sorts of vegetable food, rise in the real price of barren timber, in con besides, which in the rude state of agriculture sequence of the improvement of land, will are confined to the kitchen-garden, and raised more than compensate all the advantages only by the spade, come, in its improved state, which can be derived from the best machinery, to be introduced into common fields, and to the greatest dexterity, and the most proper be raised by the plough; such as turnips, car-division and distribution of work. rots, cabbages, &c. If, in the progress of im- But in all cases in which the real price of provement, therefore, the real price of one the rude material either does not rise at all, species of food necessarily rises, that of anoth-or does not rise very much, that of the maer as necessarily falls; and it becomes a mat-nufactured commodity sinks very considerter of more nicety to judge how far the rise ably. in the one may be compensated by the fall in

of the society, the real price of labour should rise very considerably, yet the great diminu. tion of the quantity will generally much more than compensate the greatest rise which can happen in the price.

In

This diminution of price has, in the course the other. When the real price of butcher's of the present and preceding century, been meat has once got to its height (which, with most remarkable in those manufactures of regard to every sort, except perhaps that of which the materials are the coarser metals. A hogs flesh, it seems to have done through a better movement of a watch, than about the great part of England more than a century middle of the last century could have been ago), any rise which can afterwards happen in bought for twenty pounds, may now perhaps that of any other sort of animal food, cannot be had for twenty shillings. In the work of much affect the circumstances of the inferior cutlers and locksmiths, in all the toys which ranks of people. The circumstancees of the poor, through a great part of England, cannot surely be so much distressed by any rise in the price of poultry, tish, wild-fowl, or veni son, as they must be relieved by the fall in that of potatoes.

In the present season of scarcity, the high price of corn no doubt distresses the poor. But in times of moderate plenty, when corn is at its ordinary or average price, the natural

are made of the coarser metals, and in all
those goods which are commonly known by
the name of Birmingham and Sheffield ware,
there has been, during the same period, a
very great reduction of price, though not al-
together so great as in watch-work.
It has,
however, been sufficient to astonish the work-
men of every other part of Europe, who in
many cases acknowledge that they can pro-
duce no work of equal goodness for double

or even for triple the price. There are per- those times, have beer. equal to at least three haps no manufactures, in which the division pounds six shillings and sixpence of our preof labour can be carried further, or in which sent money. The man who bought it must the machinery employed admits of a greater have parted with the command of a quantity variety of improvements, than those of which the materials are the coarser metals.

of labour and subsistence equal to what that sum would purchase in the present times. In the clothing manufacture there has, dur- The reduction in the real price of the coarse ing the same period, been no such sensible re-manufacture, though considerable, has not duction of price. The price of superfine been so great as in that of the fine. cloth, I have been assured, on the contrary, In 1463, being the 3d of Edward IV. it has, within these five-and-twenty or thirty was enacted, that "no servant in husbandry years, risen somewhat in proportion to its nor common labourer, nor servant to any arquality, owing, it was said, to a considerable tificer inhabiting out of a city or burgh, shall rise in the price of the material, which con-use or wear in their clothing any cloth above sists altogether of Spanish wool. That of the two shillings the broad yard." In the 3d of Yorkshire cloth, which is made altogether of Edward IV., two shillings contained very English wool, is said, indeed, during the nearly the same quantity of silver as four of course of the present century, to have fallen a our present money. But the Yorkshire cloth good deal in proportion to its quality. Qua- which is now sold at four shillings the yard, lity, however, is so very disputable a matter, is probably much superior to any that was that I look upon all information of this kind then made for the wearing of the very poorest as somewhat uncertain. In the clothing ma- order of common servants. Even the money nufacture, the division of labour is nearly the price of their clothing, therefore, may, in prosame now as it was a century ago, and the portion to the quality, be somewhat cheaper machinery employed is not very different. in the present than it was in those ancient There may, however, have been some small times. improvements in both, which may have occa- cheaper. Tenpence was then reckoned what sioned some reduction of price.

But the reduction will appear much more sensible and undeniable, if we compare the price of this manufacture in the present times with what it was in a much remoter period, towards the end of the fifteenth century, when the labour was probably much less subdivided, and the machinery employed much more imperfect, than it is at present.

The real price is certainly a good deal

is called the moderate and reasonable price of a bushel of wheat. Two shillings, therefore, was the price of two bushels and near two pecks of wheat, which in the present times, at three shillings and sixpence the bushel, would be worth eight shillings and ninepence. For a yard of this cloth the poor servant must have parted with the power of purchasing a quan tity of subsistence equal to what eight shillings and ninepence would purchase in the present times. This is a sumptuary law, too, restraining the luxury and extravagance of the poor. Their clothing, therefore, had commonly been

In 1487, being the 4th of Henry VII., it was enacted, that "whosoever shall sell by re. tail a broad yard of the finest scarlet grained, or of other grained cloth of the finest making, above sixteen shillings, shall forfeit forty shil-much more expensive. lings for every yard so sold." Sixteen shil- The same order of people are, by the same lings, therefore, containing about the same law, prohibited from wearing hose, of which quantity of silver as four-and-twenty shillings the price should exceed fourteen-pence the of our present money, was, at that time, reck-pair, equal to about eight-and-twenty pence of oned not an unreasonable price for yard of our present money. But fourteen-pence was the finest cloth; and as this is a sumptuary | in those times the price of a bushel and near law, such cloth, it is probable, had usually two pecks of wheat; which in the present been sold somewhat dearer. A guinea may times, at three and sixpence the bushel, would be reckoned the highest price in the present cost five shillings and threepence. We should timies. Even though the quality of the cloths, in the present times consider this as a very therefore, should be supposed equal, and that high price for a pair of stockings to a servant of the present times is most probably much of the poorest and lowest order. He must superior, yet, even upon this supposition, the however, in those times, have paid what was money price of the finest cloth appears to have really equivalent to this price for them. been considerably reduced since the end of the In the tice of Edward IV. the art of knitfifteenth century. But its real price has been ting stockings was probably not known in any much more reduced. Six shillings and eight-part of Europe. Their hose were made of pence was then, and long afterwards, reckon-common cloth, which may have been one of ed the average price of a quarter of wheat. the causes of their dearness. The first perSixteen shillings, therefore, was the price of son that wore stockings in England is said to two quarters and more than three bushels of have been Queen Elizabeth. She received wheat. Valuing a quarter of wheat in the them as a present from the Spanish ambassa present times at eight-and-twenty shillings, dor. the real price of a yard of fine cloth must. in!

Both in the coarse and in the fine woollen