An Inquiry into the Nature and Causes of the Wealth of Nations
By Adam Smith
Adam Smith’s
An Inquiry into the Nature and Causes of the Wealth of Nations was first published in 1776. This edition of Smith’s work is based on Edwin Cannan’s careful 1904 compilation (Methuen and Co., Ltd) of Smith’s fifth edition of the book (1789), the final edition in Smith’s lifetime. Cannan’s preface and introductory remarks are presented below. His extensive footnotes, detailing the changes undergone by the book over its five editions during Smith’s lifetime, as well as annotated references to the book, are also included here. Only Cannan’s marginal notes, indexes, and contents are not presented here, because the wonders of electronic searches and the speed of the net replace most of the intended function of those features. Internal references by page numbers have been replaced by linked paragraph reference numbers appropriate for this online edition. Paragraph references typically have three parts: the book, chapter, and paragraph. E.g.,
IV.7.111 refers to Book IV, Chapter VII, paragraph 111. Like Cannan, we have chosen to preserve the occasional erratic spelling in Smith’s fifth edition, which reflects changes in the language going on at the time Smith was writing. Editor,
Library of Economics and Liberty
2000
Translator/Editor
Edwin Cannan, ed.
First Pub. Date
1776
Publisher
London: Methuen & Co., Ltd.
Pub. Date
1904
Comments
5th edition.
Copyright
The text of this edition is in the public domain. Picture of Adam Smith courtesy of The Warren J. Samuels Portrait Collection at Duke University.
- Preface
- Editor's Introduction
- B.I, Introduction and Plan of the Work
- B.I, Ch.1, Of the Division of Labor
- B.I, Ch.2, Of the Principle which gives Occasion to the Division of Labour
- B.I, Ch.3, That the Division of Labour is Limited by the Extent of the Market
- B.I, Ch.4, Of the Origin and Use of Money
- B.I, Ch.5, Of the Real and Nominal Price of Commodities
- B.I, Ch.6, Of the Component Parts of the Price of Commodities
- B.I, Ch.7, Of the Natural and Market Price of Commodities
- B.I, Ch.8, Of the Wages of Labour
- B.I, Ch.9, Of the Profits of Stock
- B.I, Ch.10, Of Wages and Profit in the Different Employments of Labour and Stock
- B.I, Ch.11, Of the Rent of Land
- B.II, Introduction
- B.II, Ch.1, Of the Division of Stock
- B.II, Ch.2, Of Money Considered as a particular Branch of the General Stock of the Society
- B.II, Ch.3, Of the Accumulation of Capital, or of Productive and Unproductive Labour
- B.II, Ch.4, Of Stock Lent at Interest
- B.II, Ch.5, Of the Different Employment of Capitals
- B.III, Ch.1, Of the Natural Progress of Opulence
- B.III, Ch.2, Of the Discouragement of Agriculture in the Ancient State of Europe after the Fall of the Roman Empire
- B.III, Ch.3, Of the Rise and Progress of Cities and Towns
- B.III, Ch.4, How the Commerce of the Towns Contributed to the Improvement of the Country
- B.IV, Introduction
- B.IV, Ch.1, Of the Principle of the Commercial or Mercantile System
- B.IV, Ch.2, Of Restraints upon the Importation from Foreign Countries
- B.IV, Ch.3, Of the extraordinary Restraints upon the Importation of Goods of almost all Kinds
- B.IV, Ch.4, Of Drawbacks
- B.IV, Ch.5, Of Bounties
- B.IV, Ch.6, Of Treaties of Commerce
- B.IV, Ch.7, Of Colonies
- B.IV, Ch.8, Conclusion of the Mercantile System
- B.IV, Ch.9, Of the Agricultural Systems, or of those Systems of Political Oeconomy, which Represent the Produce of Land
- B.V, Ch.1, Of the Expences of the Sovereign or Commonwealth
- B.V, Ch.2, Of the Sources of the General or Public Revenue of the Society
- B.V, Ch.3, Of Public Debts
- Appendix
Appendix
*86
The two following Accounts are subjoined in order to illustrate and confirm what is said in the Fifth Chapter of the Fourth Book,
*87 concerning the Tonnage bounty to the White Herring Fishery. The Reader, I believe, may depend upon the accuracy of both Accounts.
An Account of Busses fitted out in Scotland for Eleven Years, with the Number of Empty Barrels carried out, and the Number of Barrels of Herrings caught; also the Bounty at a Medium on each Barrel of Seasteeks, and on each Barrel when fully packed.
| Years | Number of Busses. | Empty Barrels carried out. | Barrels of Herrings caught. | Bounty paid on the Busses. | ||
| £. | s. | d. | ||||
| 1771 | 29 | 5948 | 2832 | 2085 | 0 | 0 |
| 1772 | 168 | 41316 | 22237 | 11055 | 7 | 6 |
| 1773 | 190 | 42333 | 42055 | 12510 | 8 | 6 |
| 1774 | 248 | 59303 | 56365 | 16952 | 2 | 6 |
| 1775 | 275 | 69144 | 52879 | 19315 | 15 | 0 |
| 1776 | 294 | 76329 | 51863 | 21290 | 7 | 6 |
| 1777 | 240 | 62679 | 43313 | 17592 | 2 | 6 |
| 1778 | 220 | 56390 | 40958 | 16316 | 2 | 6 |
| 1779 | 206 | 55194 | 29367 | 15287 | 0 | 0 |
| 1780 | 181 | 48315 | 19885 | 13445 | 12 | 6 |
| 1781 | 135 | 33992 | 16593 | 9613 | 12 | 6 |
| Total, | 2186 | 550943 | 378347 | 155463 | 11 | 0 |
| Seasteeks | 378347 | Bounty at a medium for each barrel of seasteeks, | £. | 0 | 8 | 2¼ |
| But a barrel of seasteeks being only reckoned two-thirds of a barrel fully packed, one-third is deducted | ||||||
| 1/3 deducted | 126115 2/3 | which brings the bounty to | £. | 0 | 12 | 3¾ |
| Barrels full packed, | 252231 1/3 | |||||
| And if the herrings are exported, there is besides a premium of | 0 | 2 | 8 | ||
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| So that the bounty paid by Government in money for each barrel, is. | £ | 0 | 14 | 11 ¾ | |
| But if to this, the duty of the salt usually taken credit for as expended in curing each barrel, which at a medium is of foreign, one bushel and one-fourth of a bushel, at 10 s. a bushel, be added, viz. |
0 | 12 | 6 | ||
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| The bounty on each barrel would amount to | £ | 1 | 7 | 5 ¾ | |
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| If the herrings are cured with British salt, it will stand thus, viz. | |||||
| Bounty as before | £. | 0 | 14 | 11 ¾ | |
| —but if to this bounty the duty on two bushels of Scots salt at 1 s. 6 d. per bushel, supposed to be the quantity at a medium used in curing each barrel is added, to wit, |
0 | 3 | 0 | ||
|
|
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| The bounty on each barrel will amount to | £. | 0 | 17 | 11 ¾ | |
| And, | |||||
| When buss herrings are entered for home consumption in Scotland, and pay the shilling a barrel of duty, the bounty stands thus, to wit, as before | £ | 0 | 12 | 3 ¾ | |
| From which the 1 s. a barrel is to be deducted |
0 | 1 | 0 | ||
|
|
|||||
| 0 | 11 | 3 ¾ | |||
| But to that there is to be added again, the duty of the foreign salt used in curing a barrel of herrings, viz.. | 0 | 12 | 6 | ||
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| So that the premium allowed for each barrel of herrings entered for home consumption is | £. | 1 | 3 | 9 ¾ | |
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| If the herrings are cured with British salt, it will stand as follows, viz. | |||||
| Bounty on each barrel brought in by the busses as above | £. | 0 | 12 | 3 ¾ | |
| From which deduct the 1 s. a barrel paid at the time they are entered for home consumption |
0 | 1 | 0 | ||
|
|
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| £. | 0 | 11 | 3 ¾ | ||
| But if to the bounty the duty on two bushels of Scots salt at 1 s. 6 d. per bushel, supposed to be the quantity at a medium used in curing each barrel, is added, to wit |
0 | 3 | 0 | ||
|
|
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| The premium for each barrel entered for home consumption will be | £. | 0 | 14 | 3 ¾ | |
| Though the loss of duties upon herrings exported cannot, perhaps, properly be considered as bounty; that upon herrings entered for home consumption certainly may. | |||||
An Account of the Quantity of Foreign Salt imported into Scotland, and of Scots Salt delivered duty free from the Works there for the Fishery, from the 5th of April 1771 to the 5th of April 1782, with a Medium of both for one year.
| PERIOD. | Foreign Salt imported |
Scots Salt delivered from the Works |
| Bushels. | Bushels. | |
| From the 5th of April 1771, to the 5th of April 1782. | 936974 | 168226 |
| Medium for one Year | 85179 5/11 | 15293 3/11 |
It is to be observed that the Bushel of Foreign Salt weighs 84 lb. that of British Salt 56 lb. only.