Germain Garnier - An Inquiry Into the Nature and Causes of the Wealth of Nations

The great aim of Mr. Smith's Inquiry, the fruit of so much research, and the work of so many years, is, as Professor Stewart observes, to direct the policy of nations with respect to one most important class of its laws, – those which form its system of political economy: 'and he has unquestionably,' the same eloquent writer adds, 'had the merit of presenting to the world the most comprehensive and perfect work that has yet appeared on the general principles of any branch of legislation.'

'A great and leading object of Mr. Smith's speculations,' as Mr. Stewart also observes, 'is to demonstrate, that the most effectual plan for advancing a people to greatness, is to maintain that order of things which nature has pointed out, by allowing every man, as long as he observes the rules of justice, to pursue his own interest in his own way, and to bring both his industry and his capital into the freest competition with these of his fellow citizens.'

Several authors, in this country, had before written on commercial affairs, but Mr. Smith was the first who reduced to a regular form and order the information that was to be obtained on that subject, and deduced from it the policy which an enlightened commercial nation ought to adopt. The successful manner in which he has treated this unlimited freedom of trade, as well as some others, and his able exposure of the errors of the commercial system, have rendered the science of which he treats highly interesting to the great body of the people; and a spirit of inquiry, on every branch of political economy, has, in consequence, been excited, which promises now, more than ever, to be attended with the most beneficial effects. This intricate science, the most important to the interests of mankind though long neglected, Dr. Smith has had the merit of advancing so far, as to lay a foundation, on which, it may safely be said, investigation may for a long time proceed.

It has frequently been alleged, that Dr. Smith was indebted for a large portion of the reasonings in his Inquiry to the French economists, and that the coincidence between some branches of his doctrine and theirs, particularly those which relate to freedom of trade and the powers of labour, is more than casual. But Professor Stewart has ably vindicated him from this charge, and established his right to the general principles of his doctrine, which, he thinks, were altogether original, and the result of his own reflections. That he, however, derived some advantage from his intimacy with Turgot, and those great men who were at the head of the sect of economists, and, perhaps, adopted some of their illustrations, it would be as unnecessary to deny, as it would he far from discreditable to his talents to acknowledge.

There is also a similar, or perhaps a greater coincidence between many parts of his doctrine and the opinions of Sir James Stewart, as detailed in his 'Inquiry into the Principles of Political Economy.' This congruity of opinion is chiefly apparent in their respective conclusions concerning the effects of competition, – the principles of exchangeable value, – the relation between the interest of money and the profit of stock, – the functions of coin, – the rise and progress of credit, – and the sources and limits of taxation. As this author had published his Inquiry many years before Dr. Smith's work appeared, and had, besides, lived in great intimacy with him, there was some reason to believe, what has been often asserted, that he possessed a just claim to some of the doctrines contained in that work, though Dr. Smith never once mentioned his name in any part of his work. But the present Sir James Stewart, who has recently published a full edition of the writings of his father, relinquishes, on his part, all such pretensions. With the partiality of a friend, in ranking his father with Dr. Smith, he gives it as his opinion, however, that both had, with original powers of equal strength, drawn their knowledge from the same source, the French economists.

Dr. Mandeville has also, of late, got the credit of being the author of those Principles of Political Economy, which have interested the world for the last fifty years, and to him alone, it is said, not only the English, but also the French writers, are indebted for their doctrines in that science. In the work of this eccentric writer, there seems, indeed, a similarity of opinion on some of the more obvious sources of wealth, particularly in the division of labour, which Dr. Smith investigates so fully; and in the erroneous doctrine of productive and non-productive labour; and also, perhaps, on some other points: but it would be difficult to show, that he ought, on this account, to be considered the author of all, or even the chief part of what has been written on the subject. On this, as well as on all questions of a similar nature, a great diversity of opinions will subsist. But it may be a matter of curiosity to those who are unacquainted with his work, the Fable of the Bees, not only to trace the connection of that author's sentiments with what is advanced by subsequent writers on this important subject, but also to learn his peculiar notions of morality, that attracted, at one time, so much attention. These last, Dr. Smith says, though described by a lively and humorous, yet coarse and rustic eloquence, which throws an air of truth and probability on them, are, almost in every respect, erroneous.

Soon after the publication of the Wealth of Nations, Mr. Smith received the following congratulatory letter from Mr. Hume, six months before his death, dated Edinburgh, 1st April 1776.

' Euge! Belle! Dear Mr. Smith – I am much pleased with your performance, and the perusal of it has taken me from a state of great anxiety. It was a work of so much expectation, by yourself, by your friends, and by the public, that I trembled for its appearance; but am now much relieved; not but that the reading of it necessarily requires so much attention, and the public is disposed to give so little, that I shall still doubt for some time of its being at first very popular. But it has depth, and solidity, and acuteness, and is so much illustrated by curious facts, that it must at last take the public attention. It is probably much improved by your last abode in London. If you were here at my fireside, I should dispute some of your principles. But these, and a hundred other points, are fit, only to be discussed in conversation. I hope it will be soon, for I am in a very bad state of health, and cannot afford a long delay.'

The publication of this great work drew praise to its author, indeed, from many different quarters. – Dr. Barnard, in a political epistle, addressed to Sir Joshua Reynolds, where the characteristic qualities of some eminent literary men of that time are brought forward, spoke of Smith as one who would teach him how to think. Gibbon made honourable mention of him in his Roman history; and Mr. Fox contributed, in no small degree, to extend his reputation, by observing in the House of Commons, that 'the way, as my learned friend Dr. Adam Smith says, for a nation, as well as an individual, to be rich, is for both to live within their income.'

The opinion which Dr. Johnson delivered, at that time, on its being alleged by Sir John Pringle, that a person who, like Dr. Smith, was not practically acquainted with trade, could not be qualified to write on that subject, may also be mentioned here, though somewhat erroneous, as far as it respects the received doctrines of Political Economy: – 'He is mistaken,' said Johnson. 'A man who has never been engaged in trade himself, may undoubtedly write well on trade; and there is nothing which requires more to be illustrated by philosophy than trade does. As to mere wealth, that is to say, money, it is clear that one nation, or one individual, cannot increase its store but by making another poorer; but trade procures what is more valuable, the reciprocation of the peculiar advantages of different countries. A merchant seldom thinks of any but his own trade. To write a good book upon it, a man must have extensive views. It is not necessary to have practised, to write well upon a subject.' 2 2 Boswell's Life of Johnson, vol. iv. p. 17