industry is no longer a mystery or craft for any one; the cleverest manufacturer could not deceive the least informed merchant, or the least experienced broker.

Lastly, if it be true that, in some respects corpora tions are useful means of police and superintendance over the numerous labouring classes, there are few governments, which, since the institution of standing armies, are not above such assistance.

And, besides, is it not obvious that if the masters, in obedience to the police, are able to restrain their labourers within their duty, they may also excite them to insurrection and sedition, when it suits their interest or coincides with their opinions? Masters have frequently opposed an efficacious resistance to the views of the best intentioned and most enlightened governments. How many seditions have owed their origin to the seduction and corruption of the masters! Governments acquainted with their own strength and power, ought no longer to depend on the various and fluctuating interests of the labouring classes; the general interest of the nation, which is constant and immutable, affords them a more solid and efficient support.

Thus political reasons and the interest of wealth justify alike the doctrine of speculative men upon apprenticeships and corporations, and ought to make it triumph over antiquated usages and old habits.

21

CHAP. VII.

Of the Wages of Labour.

PRIOR to the days of Adam Smith, our notions on the subject of wages of labour were vague, confused, and incapable of leading to a reasonable and decided opinion.

The maxim of the French economists was, that the wages of labour are proportioned to the price of provisions, and that the cheapness of provisions is not favourable to the labouring class, because it lowers their wages, diminishes their comforts, and reduces the mass of labour.*

David Hume maintained that, men being particularly prone to indolence and repose, necessity alone can induce them to labour; that they cease to labour, whenever the gain of a few days enables them to supply themselves with necessaries, and only resume their labour after they have dissipated what they had amassed.

From this observation, which is confirmed by experience, the Scotch philosopher inferred, that the lowness of the wages of labour is advantageous.

In short, almost all writers on subjects connected with political economy thought, that bringing the

* Physiocratie, Max, 19.

wages of labour down to the lowest rate was the true way of reducing the price of commodities, and insuing their sale abroad and at home.

Adam Smith has triumphantly refuted these doctrines, really distressing to humanity. He maintains, that the high price of the wages of labour is equally profitable to the state, and to general wealth.

He first shews that the cheapness or dearness of provisions has but little influence on the rate of the wages of labour, and that this rate is chiefly fixed by the demand for labour. If this be progressive, wages rise; if stationary, they decline; if retrograde, they leave but a very small pittance to the labourers.

These general rules are modified by several particular circumstances, such as the pleasantness or unpleasantness of the labour, the facility or difficulty of learning it, its being continued or interrupted, its requiring a greater or smaller degree of trust in the labourer, the greater or smaller probability of its success, the greater or smaller competition occasioned by apprenticeships, corporations, duties, and more or less facility in circulating the productions of labour.

Finally, he shews that the amelioration of the condition of the lower classes of the people is beneficial to population, which in civilized society is limited only by the scarcity of provisions among the lower orders; that it accelerates the progress of industry, tends to produce more work within less time and with less trouble; and that this increased produce compensates, and even exceeds the increase of

wages. This doctrine of Adam Smith concerning the wages of labour, leaves no doubt or uncertainty in this

part of the science, and must henceforth be considered as classical.

Wages of labour are no longer to be considered as arbitrary and depending on the high or low price of provisions. The price of labour has its laws, its principles, and its limits in the demand for labour; and this demand is constantly in proportion to the progressive, stationary, or retrograde state of national wealth.

A rise in the labour of wages, when it is the mere result of these general causes, ought not to occasion any uneasiness. It does not even raise the price of the productions of labour, because being better paid, the labourer works more, and his productions are both in greater quantity and of better quality.

Thus the price of labour is, after all, independent of human passions and combinations; and it is extremely remarkable, that the principles by which it is regulated are all favourable to the interests of individuals, to the prosperity of nations, and to the progress of national wealth.

CHAP. VIII.

Conclusion of the Second Book.

ON recapitulating the results of our inquiry into the nature and effects of labour, and into the causes which accelerate or impede its progress, we derive a lively satisfaction from the consideration that those doctrines by which labour is rendered barren, insulated, and subjected to restrictive laws, and by which its liberty is obstructed and its wages are reduced and limited, oppose an insurmountable obstacle to the formation and progress of wealth, to the developement of social energy, and to the political power of nations; whilst the theory which is favourable to the efforts of the labourer, which improves labour by sub-dividing it, allows complete liberty to the labourer, and liberally rewards his toils, gives to wealth an unlimited impulse, and is productive of great national benefits. These happy results ought to encourage philosophical inquirers in their meditations, enlighten legislators in their labours, and guide practical statesmen in the choice of their measures.