Smith_0141.03 9/14/05 10:51 PM THE ONLINE LIBRARY OF LIBERTY © Liberty Fund, Inc. 2005 http://oll.libertyfund.org/Home3/index.php ADAM SMITH, AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS, VOL. 2 (GLASGOW EDITION OF WORKS, VOL. 2) (1776) URL of this E-Book: http://oll.libertyfund.org/EBooks/Smith_0141.03.pdf URL of original HTML file: http://oll.libertyfund.org/Home3/HTML.php?recordID=0141.03 ABOUT THE AUTHOR Smith is commonly regarded as the first modern economist with the publication in 1776 of The Wealth of Nations. He wrote in a wide range of disciplines: moral philosophy, jurisprudence, rhetoric and literature, and the history of science. He was one of the leading figures in the Scottish Enlightenment. Smith also studied the social forces giving rise to competition, trade, and markets. While professor of logic, and later professor of moral philosophy at Glasgow University, he also had the opportunity to travel to France, where he met François Quesnay and the physiocrats; he had friends in business and the government, and drew broadly on his observations of life as well as careful statistical work summarizing his findings in tabular form. He is viewed as the founder of modern economic thought, and his work inspires economists to this day. The economic phrase for which he is most famous, the "invisible hand" of economic incentives, was only one of his many contributions to the modern-day teaching of economics. ABOUT THE BOOK Volume II of Smith’s great work on political economy. First published in 1776, the year in which the American Revolution officially began, Smith’s Wealth of Nations sparked a revolution of its own. In it Smith analyzes the major elements of political economy, from market pricing and the division of labor to monetary, tax, trade, and other government policies that affect economic behavior. Throughout he offers seminal arguments for free trade, free markets, and limited government. THE EDITION USED An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. I and II, ed. R. H. Campbell and A. S. Skinner, vol. II of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1981). Smith, Adam. The Glasgow Edition of the Works and Correspondence of Adam Smith. Indianapolis: Liberty Fund, 1982. Available from Liberty Fund's online catalog. The Theory of Moral Sentiments, ed. D.D. Raphael and A.L. Macfie, vol. I of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1982). An Inquiry Into the Nature and Causes of the Wealth of Nations, Vol. I and II, ed. R. H. Campbell and A. S. Skinner, vol. II of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1981). Essays on Philosophical Subjects, ed. W. P. D. Wightman http://oll.libertyfund.org/Home3/EBook.php?recordID=0141.03 Page 1 of 363 Smith_0141.03 9/14/05 10:51 PM and J. C. Bryce, vol. III of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1982). Lectures On Rhetoric and Belles Lettres, ed. J. C. Bryce, vol. IV of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1985). Lectures On Jurisprudence, ed. R.. L. Meek, D. D. Raphael and P. G. Stein, vol. V of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1982). Correspondence of Adam Smith, ed. E. C. Mossner and I. S. Ross, vol. VI of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1987). Index to the Works of Adam Smith, compiled by K. Haakonssen and A. S. Skinner (Indianapolis: Liberty Fund, 2003). Vol. VII of the Glasgow Edition of the Works and Correspondence of Adam Smith. COPYRIGHT INFORMATION The Glasgow Edition of the Works and Correspondence of Adam Smith and the associated volumes are published in hardcover by Oxford University Press. The six titles of the Glasgow Edition, but not the associated volumes, are being published in softcover by Liberty Fund. The online edition is published by Liberty Fund under license from Oxford University Press. © Oxford University Press 1976. All rights reserved. No part of this material may be stored transmitted retransmitted lent or reproduced in any form or medium without the permission of Oxford University Press. FAIR USE STATEMENT This material is put online to further the educational goals of Liberty Fund, Inc. Unless otherwise stated in the Copyright Information section above, this material may be used freely for educational and academic purposes. It may not be used in any way for profit. _______________________________________________________ TABLE OF CONTENTS KEY TO ABBREVIATIONS AND REFERENCES BOOK IV (CONTD.) CHAPTER VI OF TREATIES OF COMMERCE ENDNOTES NOTES TO THE NOTES CHAPTER VII OF COLONIES PART FIRST OF THE MOTIVES FOR ESTABLISHING NEW COLONIES ENDNOTES PART SECOND CAUSES OF THE PROSPERITY OF NEW COLONIES ENDNOTES PART THIRD OF THE ADVANTAGES WHICH EUROPE HAS DERIVED FROM THE DISCOVERY OF AMERICA, AND FROM THAT OF A PASSAGE TO THE EAST INDIES BY THE CAPE OF GOOD HOPE. ENDNOTES http://oll.libertyfund.org/Home3/EBook.php?recordID=0141.03 Page 2 of 363 Smith_0141.03 9/14/05 10:51 PM NOTES TO THE NOTES CHAPTER VIII CONCLUSION OF THE MERCANTILE SYSTEM ENDNOTES CHAPTER IX OF THE AGRICULTURAL SYSTEMS, OR OF THOSE SYSTEMS OF POLITICAL ŒCONOMY, WHICH REPRESENT THE PRODUCE OF LAND AS EITHER THE SOLE OR THE PRINCIPAL SOURCE OF THE REVENUE AND WEALTH OF EVERY COUNTRY ENDNOTES NOTES TO THE NOTES BOOK V OF THE REVENUE OF THE SOVEREIGN OR COMMONWEALTH CHAPTER I OF THE EXPENCES OF THE SOVEREIGN OR COMMONWEALTH PART FIRST OF THE EXPENCE OF DEFENCE ENDNOTES PART II OF THE EXPENCE OF JUSTICE ENDNOTES PART III OF THE EXPENCE OF PUBLICK WORKS AND PUBLICK INSTITUTIONS ARTICLE I OF THE PUBLICK WORKS AND INSTITUTIONS FOR FACILITATING THE COMMERCE OF THE SOCIETY AND, FIRST, OF THOSE WHICH ARE NECESSARY FOR FACILITATING COMMERCE IN GENERAL ENDNOTES OF THE PUBLICK WORKS AND INSTITUTIONS WHICH ARE NECESSARY FOR FACILITATING PARTICULAR BRANCHES OF COMMERCE ENDNOTES ARTICLE II OF THE EXPENCE OF THE INSTITUTIONS FOR THE EDUCATION OF YOUTH ENDNOTES ARTICLE III OF THE EXPENCE OF THE INSTITUTIONS FOR THE INSTRUCTION OF PEOPLE OF ALL AGES ENDNOTES ENDNOTES PART IV OF THE EXPENCE OF SUPPORTING THE DIGNITY OF THE SOVEREIGN ENDNOTES CONCLUSION OF THE CHAPTER ENDNOTES CHAPTER II OF THE SOURCES OF THE GENERAL OR PUBLICK REVENUE OF THE SOCIETY PART I OF THE FUNDS OR SOURCES OF REVENUE WHICH MAY PECULIARLY BELONG TO THE SOVEREIGN OR COMMONWEALTH ENDNOTES PART II OF TAXES ARTICLE I TAXES UPON RENT; TAXES UPON THE RENT OF LAND TAXES WHICH ARE PROPORTIONED, NOT TO THE RENT, BUT TO THE PRODUCE OF LAND ENDNOTES TAXES UPON THE RENT OF HOUSES ENDNOTES ENDNOTES ARTICLE II TAXES UPON PROFIT, OR UPON THE REVENUE ARISING FROM STOCK TAXES UPON THE PROFIT OF PARTICULAR EMPLOYMENTS ENDNOTES ENDNOTES APPENDIX TO ARTICLES I AND II TAXES UPON THE CAPITAL VALUE OF LANDS, HOUSES, AND STOCK ENDNOTES ARTICLE III TAXES UPON THE WAGES OF LABOUR ENDNOTES ARTICLE IV TAXES WHICH, IT IS INTENDED, SHOULD FALL INDIFFERENTLY UPON EVERY DIFFERENT SPECIES OF REVENUE CAPITATION TAXES ENDNOTES TAXES UPON CONSUMABLE COMMODITIES ENDNOTES http://oll.libertyfund.org/Home3/EBook.php?recordID=0141.03 Page 3 of 363 Smith_0141.03 9/14/05 10:51 PM ENDNOTES CHAPTER III OF PUBLICK DEBTS ENDNOTES NOTES TO THE NOTES APPENDIX ENDNOTES TEXTUAL SCHEDULES SCHEDULE A. EMENDATIONS OF ACCIDENTAL READINGS SCHEDULE B. EXCLUDED VARIANTS SCHEDULE C. LINE–END HYPHENATION ENDNOTES TABLE OF CORRESPONDING PASSAGES INDEX OF STATUTES AND OF THE ACTS OF THE PARLIAMENTS OF SCOTLAND INDEX OF THE ACTS OF THE PARLIAMENTS OF SCOTLAND INDEX OF AUTHORITIES (CITED IN TEXT AND NOTES) ENDNOTES _______________________________________________________ ADAM SMITH, AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS, VOL. 2 (GLASGOW EDITION OF WORKS, VOL. 2) (1776) KEY TO ABBREVIATIONS AND REFERENCES http://oll.libertyfund.org/Home3/EBook.php?recordID=0141.03 Page 4 of 363 Smith_0141.03 9/14/05 10:51 PM Corr. Correspondence ED ‘Early Draft’ of The Wealth of Nations EPS Essays on Philosophical Subjects (which include:) Ancient Logics ‘History of the Ancient Logics and Metaphysics’ Ancient Physics ‘History of the Ancient Physics’ Astronomy ‘History of Astronomy’ English and Italian ‘Of the Affinity between certain English and Italian Verses’ Verses External Senses ‘Of the External Senses’ Imitative Arts ‘Of the Nature of that Imitation which takes place in what are called the Imitative Arts’ Music, Dancing, and ‘Of the Affinity between Music, Dancing and Poetry’ Poetry Stewart Dugald Stewart, ‘Account of the Life and Writings of Adam Smith, LL.D.’ FA, FB Two fragments on the division of labour, Buchan Papers, Glasgow University Library. LJ(A) Lectures on Jurisprudence: Report of 1762–63. LJ(B) Lectures on Jurisprudence: Report dated 1766. LRBL Lectures on Rhetoric and Belles Lettres TMS The Theory of Moral Sentiments WN The Wealth of Nations From John Anderson’s Commonplace Book, vol. i, Andersonian Library, University of Anderson Notes Strathclyde. References to Smith’s published works are given according to the original divisions, together with the paragraph numbers added in the margin of the Glasgow edition. For example: TMS I.iii.2.2 = Theory of Moral Sentiments, Part I, section iii, chapter 2, paragraph 2. WN I.x.b.1 = Wealth of Nations, Book I, chapter x, section b, paragraph 1. Astronomy, I.4 = ‘History of Astronomy’, Section I, paragraph 4. The Table of Corresponding Passages appended to this volume identfies the sections into which the WN is divided and provides for each paragraph the page references in the Cannan editions of 1930 and 1937.