Theprofitsofstockvarywiththepriceofthecommoditiesinwhichitisemployed。Asthepriceofanycommodityrisesabovetheordinaryoraveragerate，theprofitsofatleastsomepartofthestockthatisemployedinbringingittomarket，riseabovetheirproperlevel，andasitfallstheysinkbelowit。Allcommoditiesaremoreorlessliabletovariationsofprice，butsomearemuchmoresothanothers。Inallcommoditieswhichareproducedbyhumanindustry，thequantityofindustryannuallyemployedisnecessarilyregulatedbytheannualdemand，insuchamannerthattheaverageannualproducemay，asnearlyaspossible，beequaltotheaverageannualconsumption。Insomeemployments，ithasalreadybeenobserved，thesamequantityofindustrywillalwaysproducethesame，orverynearlythesamequantityofcommodities。Inthelinenorwoollenmanufactures，forexample，thesamenumberofhandswillannuallyworkupverynearlythesamequantityoflinenandwoollencloth。Thevariationsinthemarketpriceofsuchcommodities，therefore，canariseonlyfromsomeaccidentalvariationinthedemand。A
　　publicmourningraisesthepriceofblackcloth。Butasthedemandformostsortsofplainlinenandwoollenclothisprettyuniform，soislikewisetheprice。Butthereareotheremploymentsinwhichthesamequantityofindustrywillnotalwaysproducethesamequantityofcommodities。Thesamequantityofindustry，forexample，will，indifferentyears，produceverydifferentquantitiesofcorn，wine，hops，sugar，tobacco，etc。Thepriceofsuchcommodities，therefore，variesnotonlywiththevariationsofdemand，butwiththemuchgreaterandmorefrequentvariationsofquantity，andisconsequentlyextremelyfluctuating。Buttheprofitofsomeofthedealersmustnecessarilyfluctuatewiththepriceofthecommodities。Theoperationsofthespeculativemerchantareprincipallyemployedaboutsuchcommodities。Heendeavourstobuythemupwhenheforeseesthattheirpriceislikelytorise，andtosellthemwhenitislikelytofall。
　　Thirdly，thisequalityinthewholeoftheadvantagesanddisadvantagesofthedifferentemploymentsoflabourandstockcantakeonlyinsuchasarethesoleorprincipalemploymentsofthosewhooccupythem。
　　Whenapersonderiveshissubsistencefromoneemployment，whichdoesnotoccupythegreaterpartofhistime，intheintervalsofhisleisureheisoftenwillingtoworkasanotherforlesswagesthanwouldotherwisesuitthenatureoftheemployment。
　　TherestillsubsistsinmanypartsofScotlandasetofpeoplecalledCottersorCottagers，thoughtheyweremorefrequentsomeyearsagothantheyarenow。Theyareasortofoutservantsofthelandlordsandfarmers。Theusualrewardwhichtheyreceivefromtheirmastersisahouse，asmallgardenforpot—herbs，asmuchgrassaswillfeedacow，and，perhaps，anacreortwoofbadarableland。Whentheirmasterhasoccasionfortheirlabour，hegivesthem，besides，twopecksofoatmealaweek，worthaboutsixteenpencesterling。Duringagreatpartoftheyearhehaslittleornooccasionfortheirlabour，andthecultivationoftheirownlittlepossessionisnotsufficienttooccupythetimewhichisleftattheirowndisposal。Whensuchoccupiersweremorenumerousthantheyareatpresent，theyaresaidtohavebeenwillingtogivetheirsparetimeforaverysmallrecompensetoanybody，andtohavewroughtforlesswagesthanotherlabourers。InancienttimestheyseemtohavebeencommonalloverEurope。Incountriesillcultivatedandworseinhabited，thegreaterpartoflandlordsandfarmerscouldnototherwiseprovidethemselveswiththeextraordinarynumberofhandswhichcountrylabourrequiresatcertainseason。Thedailyorweeklyrecompensewhichsuchlabourersoccasionallyreceivedfromtheirmasterswasevidentlynotthewholepriceoftheirlabour。Theirsmalltenementmadeaconsiderablepartofit。Thisdailyorweeklyrecompense，however，seemstohavebeenconsideredasthewholeofit，bymanywriterswhohavecollectedthepricesoflabourandprovisionsinancienttimes，andwhohavetakenpleasuresinrepresentingbothaswonderfullylow。
　　Theproduceofsuchlabourcomesfrequentlycheapertomarketthanwouldotherwisesuitabletoitsnature。StockingsinmanypartsofScotlandareknitmuchcheaperthantheycananywherebewroughtupontheloom。Theyaretheworkofservantsandlabourers，whoderivetheprincipalpartoftheirsubsistencefromsomeotheremployment。MorethanathousandpairofShetlandstockingsareannuallyimportedintoLeith，ofwhichthepriceisfromfivepencetosevenpenceapair。AtLerwick，thesmallcapitaloftheShetlandIslands，tenpenceaday，Ihavebeenassured，isacommonpriceofcommonlabour。Inthesameislandstheyknitworstedstockingstothevalueofaguineaapairandupwards。
　　ThespinningoflinenyarniscarriedoninScotlandnearlyinthesamewayastheknittingofstockingsbyservants，whoarechieflyhiredforotherpurposes。Theyearnbutaveryscantysubsistence，whoendeavourtogettheirwholelivelihoodbyeitherofthosetrades。InmostpartsofScotlandsheisagoodspinnerwhocanearntwentypenceaweek。
　　Inopulentcountriesthemarketisgenerallysoextensivethatanyonetradeissufficienttoemploythewholelabourandstockofthosewhooccupyit。Instancesofpeople’slivingbyoneemployment，andatthesametimederivingsomelittleadvantagefromanother，occurchieflyinpoorcountries。Thefollowinginstance，however，ofsomethingofthesamekindistobefoundinthecapitalofaveryrichone。ThereisnocityinEurope，I
　　believe，inwhichhouse—rentisdearerthaninLondon，andyetI
　　knownocapitalinwhichafurnishedapartmentcanbehiredascheap。LodgingisnotonlymuchcheaperinLondonthaninParis;
　　itismuchcheaperthaninEdinburghofthesamedegreeofgoodness;andwhatmayseemextraordinary，thedearnessofhouse—rentisthecauseofthecheapnessoflodging。Thedearnessofhouse—rentinLondonarisesnotonlyfromthosecauseswhichrenderitdearinallgreatcapitals，thedearnessoflabour，thedearnessofallthematerialsofbuilding，whichmustgenerallybebroughtfromagreatdistance，andaboveallthedearnessofground—rent，everylandlordactingthepartthepartofamonopolist，andfrequentlyexactingahigherrentforasingleacreofbadlandinatownthancanbehadforahundredofthebestinthecountry;butitarisesinpartfromthepeculiarmannersandcustomsofthepeople，whichobligeeverymasterofafamilytohireawholehousefromtoptobottom。Adwelling—houseinEnglandmeanseverythingthatiscontainedunderthesameroof。InFrance，Scotland，andmanyotherpartsofEurope，itfrequentlymeansnomorethanasinglestory。AtradesmaninLondonisobligedtohireawholehouseinthatpartofthetownwherehiscustomerslive。Hisshopisupontheground—floor，andheandhisfamilysleepinthegarret;andheendeavourstopayapartofhishouse—rentbylettingthetwomiddlestoriestolodgers。Heexpectstomaintainhisfamilybyhistrade，andnotbyhislodgers。Whereas，atParisandEdinburgh，thepeoplewholetlodgingshavecommonlynoothermeansofsubsistenceandthepriceofthelodgingmustpay，notonlytherentofthehouse，butthewholeexpenseofthefamily。
　　PART2
　　InequalitiesbythePolicyofEuropeSUCHaretheinequalitiesinthewholeofadvantagesanddisadvantagesofthedifferentemploymentsoflabourandstock，whichthedefectofanyofthethreerequisitesabovementionedmustoccasion，evenwherethereisthemostperfectliberty。ButthepolicyofEurope，bynotleavingthingsatperfectliberty，occasionsotherinequalitiesofmuchgreaterimportance。
　　Itdoesthischieflyinthethreefollowingways。First，byrestrainingthecompetitioninsomeemploymentstoasmallernumberthanwouldotherwisebedisposedtoenterintothem;
　　secondly，byincreasingitinothersbeyondwhatitnaturallywouldbe;and，thirdly，byobstructingthefreecirculationoflabourandstock，bothfromemploymenttoemploymentandfromplacetoplace。
　　First，thepolicyofEuropeoccasionsaveryimportantinequalityinthewholeoftheadvantagesanddisadvantagesofthedifferentemploymentsoflabourandstock，byrestrainingthecompetitioninsomeemploymentstoasmallernumberthanmightotherwisebedisposedtoenterintothem。
　　Theexclusiveprivilegesofcorporationsaretheprincipalmeansitmakesuseofforthispurpose。
　　Theexclusiveprivilegeofanincorporatedtradenecessarilyrestrainsthecompetition，inthetownwhereitisestablished，tothosewhoarefreeofthetrade。Tohaveservedanapprenticeshipinthetown，underamasterproperlyqualified，iscommonlythenecessaryrequisiteforobtainingthisfreedom。Thebyelawsofthecorporationregulatesometimesthenumberofapprenticeswhichanymasterisallowedtohave，andalmostalwaysthenumberofyearswhicheachapprenticeisobligedtoserve。Theintentionofbothregulationsistorestrainthecompetitiontoamuchsmallernumberthanmightotherwisebedisposedtoenterintothetrade。Thelimitationofthenumberofapprenticesrestrainsitdirectly。Alongtermofapprenticeshiprestrainsitmoreindirectly，butaseffectually，byincreasingtheexpenseofeducation。
　　InSheffieldnomastercutlercanhavemorethanoneapprenticeatatime，byabyelawofthecorporation。InNorfolkandNorwichnomasterweavercanhavemorethantwoapprentices，underpainofforfeitingfivepoundsamonthtotheking。NomasterhattercanhavemorethantwoapprenticesanywhereinEngland，orintheEnglishplantations，underpainofforfeitingfivepoundsamonth，halftothekingandhalftohimwhoshallsueinanycourtofrecord。Boththeseregulations，thoughtheyhavebeenconfirmedbyapubliclawofthekingdom，areevidentlydictatedbythesamecorporationspiritwhichenactedthebye—lawofSheffield。ThesilkweaversinLondonhadscarcebeenincorporatedayearwhentheyenactedabye—lawrestraininganymasterfromhavingmorethantwoapprenticesatatime。ItrequiredaparticularActofParliamenttorescindthisbyelaw。
　　Sevenyearsseemancientlytohavebeen，alloverEurope，theusualtermestablishedforthedurationofapprenticeshipsinthegreaterpartofincorporatedtrades。Allsuchincorporationswereancientlycalleduniversities，whichindeedistheproperLatinnameforanyincorporationwhatever。Theuniversityofsmiths，theuniversityoftailors，etc。，areexpressionswhichwecommonlymeetwithintheoldchartersofancienttowns。Whenthoseparticularincorporationswhicharenowpeculiarlycalleduniversitieswerefirstestablished，thetermofyearswhichitwasnecessarytostudy，inordertoobtainthedegreeofmasterofarts，appearsevidentlytohavebeencopiedfromthetermsofapprenticeshipincommontrades，ofwhichtheincorporationsweremuchmoreancient。Astohavewroughtsevenyearsunderamasterproperlyqualifiedwasnecessaryinordertoentitleanypersontobecomeamaster，andtohavehimselfapprenticedinacommontrade;sotohavestudiedsevenyearsunderamasterproperlyqualifiedwasnecessarytoentitlehimtobecomeamaster，teacher，ordoctor（wordsancientlysynonymous）intheliberalarts，andtohavescholarsorapprentices（wordslikewiseoriginallysynonymous）tostudyunderhim。
　　Bythe5thofElizabeth，commonlycalledtheStatuteofApprenticeship，itwasenacted，thatnopersonshouldforthefutureexerciseanytrade，craft，ormysteryatthattimeexercisedinEngland，unlesshehadpreviouslyservedtoitanapprenticeshipofsevenyearsatleast;andwhatbeforehadbeenthebyelawofmanyparticularcorporationsbecameinEnglandthegeneralandpubliclawofalltradescarriedoninmarkettowns。
　　Forthoughthewordsofthestatuteareverygeneral，andseemplainlytoincludethewholekingdom，byinterpretationitsoperationhasbeenlimitedtomarkettowns，ithavingbeenheldthatincountryvillagesapersonmayexerciseseveraldifferenttrades，thoughhehasnotservedasevenyears’apprenticeshiptoeach，theybeingnecessaryfortheconveniencyoftheinhabitants，andthenumberofpeoplefrequentlynotbeingsufficienttosupplyeachwithaparticularsetofhands。
　　Byastrictinterpretationofthewords，too，theoperationofthisstatutehasbeenlimitedtothosetradeswhichwereestablishedinEnglandbeforethe5thofElizabeth，andhasneverbeenextendedtosuchashavebeenintroducedsincethattime。
　　Thislimitationhasgivenoccasiontoseveraldistinctionswhich，consideredasrulesofpolice，appearasfoolishascanwellbeimagined。Ithasbeenadjudged，forexample，thatacoachmakercanneitherhimselfmakenoremployjourneymentomakehiscoach—wheels，butmustbuythemofamasterwheel—wright;thislattertradehavingbeenexercisedinEnglandbeforethe5thofElizabeth。Butawheelwright，thoughhehasneverservedanapprenticeshiptoacoachmaker，mayeitherhimselfmakeoremployjourneymantomakecoaches;thetradeofacoachmakernotbeingwithinthestatute，becausenotexercisedinEnglandatthetimewhenitwasmade。ThemanufacturesofManchester，Birmingham，andWolverhampton，aremanyofthem，uponthisaccount，notwithinthestatute，nothavingbeenexercisedinEnglandbeforethe5thofElizabeth。
　　InFrance，thedurationofapprenticeshipsisdifferentindifferenttownsandindifferenttrades。InParis，fiveyearsisthetermrequiredinagreatnumber;butbeforeanypersoncanbequalifiedtoexercisethetradeasamaster，hemust，inmanyofthem，servefiveyearsmoreasajourneyman。Duringthislattertermheiscalledthecompanionofhismaster，andthetermitselfiscalledhiscompanionship。
　　InScotlandthereisnogenerallawwhichregulatesuniversallythedurationofapprenticeships。Thetermisdifferentindifferentcorporations。Whereitislong，apartofitmaygenerallyberedeemedbypayingasmallfine。Inmosttowns，too，averysmallfineissufficienttopurchasethefreedomofanycorporation。Theweaversoflinenandhempencloth，theprincipalmanufacturesofthecountry，aswellasallotherartificerssubservienttothem，wheel—makers，reel—makers，etc。，mayexercisetheirtradesinanytowncorporatewithoutpayinganyfine。Inalltownscorporateallpersonsarefreetosellbutcher’smeatuponanylawfuldayoftheweek。ThreeyearsinScotlandisacommontermofapprenticeship，eveninsomeverynicetrades;andingeneralIknowofnocountryinEuropeinwhichcorporationlawsaresolittleoppressive。
　　Thepropertywhicheverymanhasinhisownlabour，asitistheoriginalfoundationofallotherproperty，soitisthemostsacredandinviolable。Thepatrimonyofapoormanliesinthestrengthanddexterityofhishands;andtohinderhimfromemployingthisstrengthanddexterityofhishands;andtohinderhimfromemployingthisstrengthanddexterityinwhatmannerhethinksproperwithoutinjurytohisneighbourisaplainviolationofthismostsacredproperty。Itisamanifestencroachmentuponthejustlibertybothoftheworkmanandofthosewhomightbedisposedtoemployhim。Asithinderstheonefromworkingatwhathethinksproper，soithinderstheothersfromemployingwhomtheythinkproper。Tojudgewhetherheisfittobeemployedmaysurelybetrustedtothediscretionoftheemployerswhoseinterestitsomuchconcerns。Theaffectedanxietyofthelaw—giverlesttheyshouldemployanimproperpersonisevidentlyasimpertinentasitisoppressive。
　　Theinstitutionoflongapprenticeshipscangivenosecuritythatinsufficientworkmanshipshallnotfrequentlybeexposedtopublicsale。Whenthisisdoneitisgenerallytheeffectoffraud，andnotofinability;andthelongestapprenticeshipcangivenosecurityagainstfraud。Quitedifferentregulationsarenecessarytopreventthisabuse。Thesterlingmarkuponplate，andthestampsuponlinenandwoollencloth，givethepurchasermuchgreatersecuritythananystatuteofapprenticeship。Hegenerallylooksatthese，butneverthinksitworthwhiletoinquirewhethertheworkmanhadservedasevenyears’
　　apprenticeship。
　　Theinstitutionoflongapprenticeshipshasnotendencytoformayoungpeopletoindustry。Ajourneymanwhoworksbythepieceislikelytobeindustrious，becausehederivesabenefitfromeveryexertionofhisindustry。Anapprenticeislikelytobeidle，andalmostalwaysisso，becausehehasnoimmediateinteresttobeotherwise。Intheinferioremployments，thesweetsoflabourconsistaltogetherintherecompenseoflabour。Theywhoaresoonestinaconditiontoenjoythesweetsofitarelikelysoonesttoconceivearelishforit，andtoacquiretheearlyhabitofindustry。Ayoungmannaturallyconceivesanaversiontolabourwhenforalongtimehereceivesnobenefitfromit。Theboyswhoareputoutapprenticesfrompubliccharitiesaregenerallyboundformorethantheusualnumberofyears，andtheygenerallyturnoutveryidleandworthless。
　　Apprenticeshipswerealtogetherunknowntotheancients。Thereciprocaldutiesofmasterandapprenticemakeaconsiderablearticleineverymoderncode。TheRomanlawisperfectlysilentwithregardtothem。IknownoGreekorLatinword（Imightventure，Ibelieve，toassertthatthereisnone）whichexpressestheideawenowannextothewordApprentice，aservantboundtoworkataparticulartradeforthebenefitofamaster，duringatermofyears，uponconditionthatthemastershallteachhimthattrade。
　　Longapprenticeshipsarealtogetherunnecessary。Thearts，whicharemuchsuperiortocommontrades，suchasthoseofmakingclocksandwatches，containnosuchmysteryastorequirealongcourseofinstruction。Thefirstinventionofsuchbeautifulmachines，indeed，andeventhatofsomeoftheinstrumentsemployedinmakingthem，must，nodoubt，havebeentheworkofdeepthoughtandlongtime，andmayjustlybeconsideredasamongthehappiesteffortsofhumaningenuity。Butwhenbothhavebeenfairlyinventedandarewellunderstood，toexplaintoanyyoungman，inthecompletestmanner，howtoapplytheinstrumentsandhowtoconstructthemachines，cannotwellrequiremorethanthelessonsofafewweeks:perhapsthoseofafewdaysmightbesufficient。Inthecommonmechanictrades，thoseofafewdaysmightcertainlybesufficient。Thedexterityofhand，indeed，evenincommontrades，cannotbeacquiredwithoutmuchpracticeandexperience。Butayoungmanwouldpracticewithmuchmorediligenceandattention，iffromthebeginninghewroughtasajourneyman，beingpaidinproportiontothelittleworkwhichhecouldexecute，andpayinginhisturnforthematerialswhichhemightsometimesspoilthroughawkwardnessandinexperience。Hiseducationwouldgenerallyinthiswaybemoreeffectual，andalwayslesstediousandexpensive。Themaster，indeed，wouldbealoser。Hewouldloseallthewagesoftheapprentice，whichhenowsaves，forsevenyearstogether。Intheend，perhaps，theapprenticehimselfwouldbealoser。Inatradesoeasilylearnthewouldhavemorecompetitors，andhiswages，whenhecametobeacompleteworkman，wouldbemuchlessthanatpresent。Thesameincreaseofcompetitionwouldreducetheprofitsofthemastersaswellasthewagesoftheworkmen。Thetrades，thecrafts，themysteries，wouldallbelosers。Butthepublicwouldbeagainer，theworkofallartificerscominginthiswaymuchcheapertomarket。
　　Itistopreventthisreductionofprice，andconsequentlyofwagesandprofit，byrestrainingthatfreecompetitionwhichwouldmostcertainlyoccasionit，thatallcorporations，andthegreaterpartofcorporationlaws，havebeenestablished。Inordertoerectacorporation，nootherauthorityinancienttimeswasrequisiteinmanypartsofEurope，butthatofthetowncorporateinwhichitwasestablished。InEngland，indeed，acharterfromthekingwaslikewisenecessary。Butthisprerogativeofthecrownseemstohavebeenreservedratherforextortingmoneyfromthesubjectthanforthedefenceofthecommonlibertyagainstsuchoppressivemonopolies。Uponpayingafinetotheking，thecharterseemsgenerallytohavebeenreadilygranted;andwhenanyparticularclassofartificersortradersthoughtpropertoactasacorporationwithoutacharter，suchadulterineguilds，astheywerecalled，werenotalwaysdisfranchiseduponthataccount，butobligedtofineannuallytothekingforpermissiontoexercisetheirusurpedprivileges。Theimmediateinspectionofallcorporations，andofthebye—lawswhichtheymightthinkpropertoenactfortheirowngovernment，belongedtothetowncorporateinwhichtheywereestablished;andwhateverdisciplinewasexercisedoverthemproceededcommonly，notfromtheking，butfromthegreaterincorporationofwhichthosesubordinateoneswereonlypartsormembers。
　　Thegovernmentoftownscorporatewasaltogetherinthehandsoftradersandartificers，anditwasthemanifestinterestofeveryparticularclassofthemtopreventthemarketfrombeingoverstocked，astheycommonlyexpressit，withtheirownparticularspeciesofindustry，whichisinrealitytokeepitalwaysunderstocked。Eachclasswaseagertoestablishregulationsproperforthispurpose，and，provideditwasallowedtodoso，waswillingtoconsentthateveryotherclassshoulddothesame。Inconsequenceofsuchregulations，indeed，eachclasswasobligedtobuythegoodstheyhadoccasionforfromeveryotherwithinthetown，somewhatdearerthantheyotherwisemighthavedone。Butinrecompense，theywereenabledtoselltheirownjustasmuchdearer;sothatsofaritwasasbroadaslong，astheysay;andinthedealingsofthedifferentclasseswithinthetownwithoneanother，noneofthemwerelosersbytheseregulations。Butintheirdealingswiththecountrytheywereallgreatgainers;andintheselatterdealingsconsiststhewholetradewhichsupportsandenricheseverytown。
　　Everytowndrawsitswholesubsistence，andallthematerialsofitsindustry，fromthecountry。Itpaysforthesechieflyintwoways:first，bysendingbacktothecountryapartofthosematerialswroughtupandmanufactured;inwhichcasetheirpriceisaugmentedbythewagesoftheworkmen，andtheprofitsoftheirmastersorimmediateemployers;secondly，bysendingtoitapartbothoftherudeandmanufacturedproduce，eitherofothercountries，orofdistantpartsofthesamecountry，importedintothetown;inwhichcase，too，theoriginalpriceofthosegoodsisaugmentedbythewagesofthecarriersorsailors，andbytheprofitsofthemerchantswhoemploythem。Inwhatisgaineduponthefirstofthosetwobranchesofcommerceconsiststheadvantagewhichthetownmakesbyitsmanufactures;
　　inwhatisgaineduponthesecond，theadvantageofitsinlandandforeigntrade。Thewagesoftheworkmen，andtheprofitsoftheirdifferentemployers，makeupthewholeofwhatisgaineduponboth。Whateverregulations，therefore，tendtoincreasethosewagesandprofitsbeyondwhattheyotherwisewouldbe，tendtoenablethetowntopurchase，withasmallerquantityofitslabour，theproduceofagreaterquantityofthelabourofthecountry。Theygivethetradersandartificersinthetownanadvantageoverthelandlords，farmers，andlabourersinthecountry，andbreakdownthatnaturalequalitywhichwouldotherwisetakeplaceinthecommercewhichiscarriedonbetweenthem。Thewholeannualproduceofthelabourofthesocietyisannuallydividedbetweenthosetwodifferentsetsofpeople。Bymeansofthoseregulationsagreatershareofitisgiventotheinhabitantsofthetownthanwouldotherwisefalltothem;andalesstothoseofthecountry。
　　Thepricewhichthetownreallypaysfortheprovisionsandmaterialsannuallyimportedintoitisthequantityofmanufacturesandothergoodsannuallyexportedfromit。Thedearerthelatteraresold，thecheapertheformerarebought。
　　Theindustryofthetownbecomesmore，andthatofthecountrylessadvantageous。
　　Thattheindustrywhichiscarriedonintownsis，everywhereinEurope，moreadvantageousthanthatwhichiscarriedoninthecountry，withoutenteringintoanyverynicecomputations，wemaysatisfyourselvesbyoneverysimpleandobviousobservation。IneverycountryofEuropewefind，atleast，ahundredpeoplewhohaveacquiredgreatfortunesfromsmallbeginningsbytradeandmanufactures，theindustrywhichproperlybelongstotowns，foronewhohasdonesobythatwhichproperlybelongstothecountry，theraisingofrudeproducebytheimprovementandcultivationofland。Industry，therefore，mustbebetterrewarded，thewagesoflabourandtheprofitsofstockmustevidentlybegreaterintheonesituationthanintheother。Butstockandlabournaturallyseekthemostadvantageousemployment。Theynaturally，therefore，resortasmuchastheycantothetown，anddesertthecountry。
　　Theinhabitantsofatown，beingcollectedintooneplace，caneasilycombinetogether。Themostinsignificanttradescarriedonintownshaveaccordingly，insomeplaceorother，beenincorporated，andevenwheretheyhaveneverbeenincorporated，yetthecorporationspirit，thejealousyofstrangers，theaversiontotakeapprentices，ortocommunicatethesecretoftheirtrade，generallyprevailinthem，andoftenteachthem，byvoluntaryassociationsandagreements，topreventthatfreecompetitionwhichtheycannotprohibitbybye—laws。Thetradeswhichemploybutasmallnumberofhandsrunmosteasilyintosuchcombinations。Halfadozenwool—combers，perhaps，arenecessarytokeepathousandspinnersandweaversatwork。Bycombiningnottotakeapprenticestheycannotonlyengrosstheemployment，butreducethewholemanufactureintoasortofslaverytothemselves，andraisethepriceoftheirlabourmuchabovewhatisduetothenatureoftheirwork。
　　Theinhabitantsofthecountry，dispersedindistantplaces，cannoteasilycombinetogether。Theyhavenotonlyneverbeenincorporated，butthecorporationspiritneverhasprevailedamongthem。Noapprenticeshiphaseverbeenthoughtnecessarytoqualifyforhusbandry，thegreattradeofthecountry。Afterwhatarecalledthefinearts，andtheliberalprofessions，however，thereisperhapsnotradewhichrequiressogreatavarietyofknowledgeandexperience。Theinnumerablevolumeswhichhavebeenwrittenuponitinalllanguagesmaysatisfyusthat，amongthewisestandmostlearnednations，ithasneverbeenregardedasamatterveryeasilyunderstood。Andfromallthosevolumesweshallinvainattempttocollectthatknowledgeofitsvariousandcomplicatedoperations，whichiscommonlypossessedevenbythecommonfarmer;howcontemptuouslysoevertheverycontemptibleauthorsofsomeofthemmaysometimesaffecttospeakofhim。Thereisscarceanycommonmechanictrade，onthecontrary，ofwhichalltheoperationsmaynotbeascompletelyanddistinctlyexplainedinapamphletofaveryfewpages，asitispossibleforwordsillustratedbyfigurestoexplainthem。Inthehistoryofthearts，nowpublishingbytheFrenchAcademyofSciences，severalofthemareactuallyexplainedinthismanner。
　　Thedirectionofoperations，besides，whichmustbevariedwitheverychangeoftheweather，aswellaswithmanyotheraccidents，requiresmuchmorejudgmentanddiscretionthanthatofthosewhicharealwaysthesameorverynearlythesame。
　　Notonlytheartofthefarmer，thegeneraldirectionoftheoperationsofhusbandry，butmanyinferiorbranchesofcountrylabourrequiremuchmoreskinandexperiencethanthegreaterpartofmechanictrades。Themanwhoworksuponbrassandiron，workswithinstrumentsanduponmaterialsofwhichthetemperisalwaysthesame，orverynearlythesame。Butthemanwhoploughsthegroundwithateamofhorsesoroxen，workswithinstrumentsofwhichthehealth，strength，andtemper，areverydifferentupondifferentoccasions。Theconditionofthematerialswhichheworksupon，too，isasvariableasthatoftheinstrumentswhichheworkswith，andbothrequiretobemanagedwithmuchjudgmentanddiscretion。Thecommonploughman，thoughgenerallyregardedasthepatternofstupidityandignorance，isseldomdefectiveinthisjudgmentanddiscretion。Heislessaccustomed，indeed，tosocialintercoursethanthemechanicwholivesinatown。Hisvoiceandlanguagearemoreuncouthandmoredifficulttobeunderstoodbythosewhoarenotusedtothem。Hisunderstanding，however，beingaccustomedtoconsideragreatervarietyofobjects，isgenerallymuchsuperiortothatoftheother，whosewholeattentionfrommorningtillnightiscommonlyoccupiedinperformingoneortwoverysimpleoperations。Howmuchthelowerranksofpeopleinthecountryarereallysuperiortothoseofthetowniswellknowntoeverymanwhomeitherbusinessorcuriosityhasledtoconversemuchwithboth。InChinaandIndostanaccordinglyboththerankandthewagesofcountrylabourersaresaidtobesuperiortothoseofthegreaterpartofartificersandmanufacturers。Theywouldprobablybesoeverywhere，ifcorporationlawsandthecorporationspiritdidnotpreventit。
　　ThesuperioritywhichtheindustryofthetownshaseverywhereinEuropeoverthatofthecountryisnotaltogetherowingtocorporationsandcorporationlaws。Itissupportedbymanyotherregulations。Thehighdutiesuponforeignmanufacturesanduponallgoodsimportedbyalienmerchants，alltendtothesamepurpose。Corporationlawsenabletheinhabitantsoftownstoraisetheirprices，withoutfearingtobeundersoldbythefreecompetitionoftheirowncountrymen。Thoseotherregulationssecurethemequallyagainstthatofforeigners。Theenhancementofpriceoccasionedbybothiseverywherefinallypaidbythelandlords，farmers，andlabourersofthecountry，whohaveseldomopposedtheestablishmentofsuchmonopolies。Theyhavecommonlyneitherinclinationnorfitnesstoenterintocombinations;andtheclamourandsophistryofmerchantsandmanufacturerseasilypersuadethemthattheprivateinterestofapart，andofasubordinatepartofthesociety，isthegeneralinterestofthewhole。
　　InGreatBritainthesuperiorityoftheindustryofthetownsoverthatofthecountryseemstohavebeengreaterformerlythaninthepresenttimes。Thewagesofcountrylabourapproachnearertothoseofmanufacturinglabour，andtheprofitsofstockemployedinagriculturetothoseoftradingandmanufacturingstock，thantheyaresaidtohavedoneinthelastcentury，orinthebeginningofthepresent。Thischangemayberegardedasthenecessary，thoughverylateconsequenceoftheextraordinaryencouragementgiventotheindustryofthetowns。
　　Thestockaccumulatedinthemcomesintimetobesogreatthatitcannolongerbeemployedwiththeancientprofitinthatspeciesofindustrywhichispeculiartothem。Thatindustryhasitslimitslikeeveryother;andtheincreaseofstock，byincreasingthecompetition，necessarilyreducestheprofit。Theloweringofprofitinthetownforcesoutstocktothecountry，where，bycreatinganewdemandforcountrylabour，itnecessarilyraisesitswages。Itthenspreadsitself，ifImaysayso，overthefaceoftheland，andbybeingemployedinagricultureisinpartrestoredtothecountry，attheexpenseofwhich，inagreatmeasure，ithadoriginallybeenaccumulatedinthetown。ThateverywhereinEuropethegreatestimprovementsofthecountryhavebeenowingtosuchoverflowingsofthestockoriginallyaccumulatedinthetowns，Ishallendeavourtoshowhereafter;andatthesametimetodemonstratethat，thoughsomecountrieshavebythiscourseattainedtoaconsiderabledegreeofopulence，itisinitselfnecessarilyslow，uncertain，liabletobedisturbedandinterruptedbyinnumerableaccidents，andineveryrespectcontrarytotheorderofnatureandofreason。Theinterests，prejudices，lawsandcustoms，whichhavegivenoccasiontoit，IshallendeavourtoexplainasfullyanddistinctlyasIcaninthethirdandfourthbooksofthisInquiry。
　　Peopleofthesametradeseldommeettogether，evenformerrimentanddiversion，buttheconversationendsinaconspiracyagainstthepublic，orinsomecontrivancetoraiseprices。Itisimpossibleindeedtopreventsuchmeetings，byanylawwhicheithercouldbeexecuted，orwouldbeconsistentwithlibertyandjustice。Butthoughthelawcannothinderpeopleofthesametradefromsometimesassemblingtogether，itoughttodonothingtofacilitatesuchassemblies，muchlesstorenderthemnecessary。
　　Aregulationwhichobligesallthoseofthesametradeinaparticulartowntoentertheirnamesandplacesofabodeinapublicregister，facilitatessuchassemblies。Itconnectsindividualswhomightneverotherwisebeknowntooneanother，andgiveseverymanofthetradeadirectionwheretofindeveryothermanofit。
　　Aregulationwhichenablesthoseofthesametradetotaxthemselvesinordertoprovidefortheirpoor，theirsick，theirwidowsandorphans，bygivingthemacommoninteresttomanage，renderssuchassembliesnecessary。
　　Anincorporationnotonlyrendersthemnecessary，butmakestheactofthemajoritybindinguponthewhole。Inafreetradeaneffectualcombinationcannotbeestablishedbutbytheunanimousconsentofeverysingletrader，anditcannotlastlongerthaneverysingletradercontinuesofthesamemind。Themajorityofacorporationcanenactabye—lawwithproperpenalties，whichwilllimitthecompetitionmoreeffectuallyandmoredurablythananyvoluntarycombinationwhatever。
　　Thepretencethatcorporationsarenecessaryforthebettergovernmentofthetradeiswithoutanyfoundation。Therealandeffectualdisciplinewhichisexercisedoveraworkmanisnotthatofhiscorporation，butthatofhiscustomers。Itisthefearoflosingtheiremploymentwhichrestrainshisfraudsandcorrectshisnegligence。Anexclusivecorporationnecessarilyweakenstheforceofthisdiscipline。Aparticularsetofworkmenmustthenbeemployed，letthembehavewellorill。Itisuponthisaccountthatinmanylargeincorporatedtownsnotolerableworkmenaretobefound，eveninsomeofthemostnecessarytrades。Ifyouwouldhaveyourworktolerablyexecuted，itmustbedoneinthesuburbs，wheretheworkmen，havingnoexclusiveprivilege，havenothingbuttheircharactertodependupon，andyoumustthensmuggleitintothetownaswellasyoucan。
　　ItisinthismannerthatthepolicyofEurope，byrestrainingthecompetitioninsomeemploymentstoasmallernumberthanwouldotherwisebedisposedtoenterintothem，occasionsaveryimportantinequalityinthewholeoftheadvantagesanddisadvantagesofthedifferentemploymentsoflabourandstock。
　　Secondly，thepolicyofEurope，byincreasingthecompetitioninsomeemploymentsbeyondwhatitnaturallywouldbe，occasionsanotherinequalityofanoppositekindinthewholeoftheadvantagesanddisadvantagesofthedifferentemploymentsoflabourandstock。
　　Ithasbeenconsideredasofsomuchimportancethatapropernumberofyoungpeopleshouldbeeducatedforcertainprofessions，thatsometimesthepublicandsometimesthepietyofprivatefoundershaveestablishedmanypensions，scholarships，exhibitions，bursaries，etc。，forthispurpose，whichdrawmanymorepeopleintothosetradesthancouldotherwisepretendtofollowthem。InallChristiancountries，Ibelieve，theeducationofthegreaterpartofchurchmenispaidforinthismanner。Veryfewofthemareeducatedaltogetherattheirownexpense。Thelong，tedious，andexpensiveeducation，therefore，ofthosewhoare，willnotalwaysprocurethemasuitablereward，thechurchbeingcrowdedwithpeoplewho，inordertogetemployment，arewillingtoacceptofamuchsmallerrecompensethanwhatsuchaneducationwouldotherwisehaveentitledthemto;andinthismannerthecompetitionofthepoortakesawaytherewardoftherich。Itwouldbeindecent，nodoubt，tocompareeitheracurateorachaplainwithajourneymaninanycommontrade。Thepayofacurateorchaplain，however，mayveryproperlybeconsideredasofthesamenaturewiththewagesofajourneyman。Theyare，allthree，paidfortheirworkaccordingtothecontractwhichtheymayhappentomakewiththeirrespectivesuperiors。Tillafterthemiddleofthefourteenthcentury，fivemerks，containingaboutasmuchsilverastenpoundsofourpresentmoney，wasinEnglandtheusualpayofacurateorastipendiaryparishpriest，aswefinditregulatedbythedecreesofseveraldifferentnationalcouncils。Atthesameperiodfourpenceaday，containingthesamequantityofsilverasashillingofourpresentmoney，wasdeclaredtobethepayofamastermason，andthreepenceaday，equaltoninepenceofourpresentmoney，thatofajourneymanmason。Thewagesofboththeselabourers，therefore，supposingthemtohavebeenconstantlyemployed，weremuchsuperiortothoseofthecurate。Thewagesofthemastermason，supposinghimtohavebeenwithoutemploymentonethirdoftheyear，wouldhavefullyequalledthem。Bythe12thofQueenAnne，c。