, 1862-01-08
THE CONVENTION AND ADAM
e

In studying the Wealth ef Nations, the
reaaes will do wrt,' remembcr that "pollti~
cal economy is, Of all sciences, that which
affords most room for prejudices, and in
which they are most liable to become deep
ly rooted''-a remark Of the French econo-
mist, H. GARNER, in lis introduction to a
translation Of DR., Smiths great work Dr.
Smiths great discovery was, that 1.-THE
universal agent in the creation Of wealth is
labor" from which be Vas lied to analyze
the powers Of this agent, and to search !
after the causes to which they owe their /
origin and increase" With this he broke /
down the theory that wealth consisted |
solely Of money, which had sent Columbus
in search Of the fabIed Cathay Of Marco
Polo, and opened this continent to the
knowledge, and to the adventures OF
Europe. Till the appearance Of the Wealth
Of Nations, everybody appears to have
thought that there was no value IN any
property, except as it could be exchanged
for money; money being the ultimate OBJ
= 1ect Of possession and the only wealth
Adam Smith found the Bank Of England
in full vigor, and so vitality connected with
the Government as to be, or seem to be, tho
very pivot on which the commerce and III
t1ustry, as well as the fiscal affairs Of the
nation, turned From some Incompetent
sible idea Of the vastncss and Importance
If that institution, he seems almost to con
slider that nature has adopted it, and given
il place as an element Of the universe, equal
10 her own original Aandiwork. So, after
asserting the 1lndeniable fact th:t all eA-
change value and all wealth arc the
1roduct Of labor, he says: IA pa
per money, consisting in bank-notcs
Issued by people Of undoubted credit
payable upon demand, without any
condition, and in fact, always readily pait
as soon as presented, is in every respec
equal In value to gold and silver money
since gold and silver money can atany tim
lc had for it-' According to this, one ha
Iut to run in debt to create va1ue-thc al
ticle purchased being ono value, arid til
promise to pay for it another-two value
in the same item Of capital In other word
if q good, substantial man is IN posscssio;
Of value in property Of 500, 900; and OWE
100000 upon it in notes, the communit
are in possession Of 100000 Of propert
According to this, also, OUT nation is wort
I'LL its property and all the debts due npo
it into the bargain For this curious pref
dice and heresy, upon which the 'pap
money" theory is founded, the reader mu
make due allowance in studying the Weal
ef.Nntions. 1t IS the one great defect
Smiths philosophy, in which he is follow
7yncarly every other British writer a.
economist.
Another marked defect Of the book is
want Of method: It appears to have be
vlitten in fits Of inspiration, the most NAL
ed and brilliant ideas upon one subject
ing dotted down in the midst Of chapt'
assigned to other subjects. His ideas
money, that one would expect to find CT
dcnsed in the chapter appropriated
<'Money," (book I'd, chapter ID, are dis
buted throughout the book, and the mat
Of money is more deliberately treated uns
the head Of Commercial System" than
der the head oft<Money" itself; {sce boo}
chapter IL In the chapter On Wage:
Labor he teaches the important truth
high prices Of the means Of subsiste
tend to lower wages; (see book I, char
81 The power Of capital is most q
treated in the chapter on Labor {boc
chapter 81 In this he shows that the q
tity Of money which can be annually
ployed in any country, must be detertni
by the value Of consumab}e goods annu
circulated within it; fact that our Ct
try, and Illinois especially, has ignored
prodigious loss And the student must
omit the last chapter Of the book, on Il
lie Debts"
"The general industry Of the society
never exceed what the capital Of the sot
can employ" is 3 aconspicuous truth "