This constant effort of every man, to better his own condition, is so salutary, as well as so powerful, that it is often capable of securing the progress of society, in spite of the folly and extravagance of the rulers of mankind.[670] If it were not for this propensity, improvement would be impossible. For human institutions are constantly stopping our advance, by thwarting our natural inclinations.[671] And no wonder that this should be the case, seeing that the men who are at the head of affairs, and by whom the institutions are contrived, have, perhaps, a certain rough and practical sagacity; but being, from the narrowness of their understandings, incapable of large views, their councils are determined by those mere casual fluctuations which alone they are able to perceive.[672] They do not see that we have prospered, not on account of their enactments, but in the teeth of them; and that the real cause of our prosperity is the fact that we enjoy undisturbed the fruit of our own labour.[673] Whenever this right is tolerably secure, every man will be bent on procuring for himself either present enjoyment or future profit; and if he does not aim at one of these objects, he is void of common understanding.[674] If he possess capital, he will probably aim at both, but, in doing so, he will never consider the interest of others; his sole motive will be his own private profit.[675] And it is well that such should be the case. For, by thus pursuing his personal interest, he aids society more than if his views were generous and exalted. Some people affect to carry on trade for the good of others; but this is mere affectation, though, to say the truth, it is an affectation not very common among merchants, and many words are not needed to dissuade them from so foolish a practice.[676]

In this way, Adam Smith completely changes the premisses which he had assumed in his earlier work. Here, he makes men naturally selfish; formerly, he had made them naturally sympathetic.[677] Here, he represents them as pursuing wealth for sordid objects, and for the narrowest personal pleasures; formerly he represented them as pursuing it out of regard to the sentiments of others, and for the sake of obtaining their sympathy.[678] In the Wealth of Nations, we hear no more of this conciliatory and sympathetic spirit; such amiable maxims are altogether forgotten, and the affairs of the world are regulated by different principles. It now appears that benevolence and affection have no influence over our actions. Indeed, Adam Smith will hardly admit common humanity into his theory of motives. If a people emancipate their slaves, it is a proof, not that the people are acted on by high moral considerations, nor that their sympathy is excited by the cruelty inflicted on these unhappy creatures. Nothing of the sort. Such inducements to conduct are imaginary, and exercise no real sway. All that the emancipation proves, is, that the slaves were few in number, and, therefore, small in value. Otherwise, they would not have been emancipated.[679]

So, too, while in his former work, he had ascribed the different systems of morals to the power of sympathy, he, in this work, ascribes them entirely to the power of selfishness. He observes, that, among the lower ranks of society, dissipation is more fatal to individuals, than it is among the higher ranks. The extravagance which dissipation produces, may injure the fortune of a wealthy man, but the injury is usually capable of being repaired, or, at all events, he can indulge his vices for years without completely destroying his fortune, and without bringing himself to utter ruin. To the labourer, a similar indulgence would be fatal in a single week; it would not merely reduce him to beggary, and perhaps send him to jail, but it would destroy his future prospects, by taking away that character for sobriety and regularity on which his employment depends. Hence, the better class of common people, guided by their interest, look with aversion on excesses which they know to be fatal; while the upper ranks finding that a moderate amount of vice hurts neither their purse nor their reputation consider such license to be one of the advantages which their fortune confers, and they value, as one of the privileges belonging to their station, the liberty of indulging themselves without being censured. Therefore it is, that they who dissent from the established Church have a purer system of morals, or, at all events, an austerer one, than they who agree with it. For, new religious sects usually begin among the common people, the thinking part of whom are, by their interest, driven to strict views of the duties of life. Consequently, the advocates of the new opinion profess a similar strictness, seeing that it is the surest means of increasing their proselytes. Thus it is that sectaries and heretics, governed by interest rather than by principle, adopt a code of morals which is suited to their own purpose, and the rigidity of which is strongly contrasted with the laxer code of more orthodox believers.[680] Owing to the operation of the same principle, we also find, that, among the orthodox themselves, the clergy embrace a stricter system of morals in countries where church benefices are nearly equal than they do in countries where the benefices are very unequal. This is because, when all the benefices are nearly equal, none can be very rich, and, consequently, even the most conspicuous among the clergy will have but small incomes. But a man who has little to spend can have no influence, unless his morals are exemplary. Having no wealth to give him weight the vices of levity would make him ridiculous. To avoid contempt, and also to avoid the expense which a looseness of conduct occasions, and which his narrow circumstances cannot afford, he has but one remedy, and that remedy he adopts. He retains his influence, and saves his pocket, by protesting against pleasures which he cannot conveniently enjoy; in this, as in all other cases, pursuing that plan of life which his own interest urges him to follow.[681]

In these striking generalizations, which, though they contain a large amount of truth, are far from containing the whole truth, no room is left for the magnanimous parts of our nature to act; but the system of morals, prevailing at any one time or in any one class, is solely ascribed to the dictates of unalloyed selfishness. Adam Smith, by reasoning from this principle, with that exquisite subtlety which characterized his mind, explains many other circumstances which society presents, and which at first sight appear incongruous. According to the old notions, which, indeed, are not yet quite extinct, those who received wages were under a personal obligation to those who paid them; that is to say, they were under a moral obligation, over and above the obligation of performing certain services. It was believed that a master could not only select what servants he chose, but could pay them what he chose; or, at all events, that it was the will of the masters, considered as a body, which fixed the usual and average rate of wages.[682] The lower classes were, therefore, much indebted to the higher ones for giving them so much as they did; and it was incumbent upon all persons, who received wages, to take them with humble thankfulness, and with a feeling of gratitude, on account of the favour bestowed upon them by the generosity of their superiors.

This doctrine, so convenient to the upper classes of society, and so natural to the universal ignorance which formerly prevailed on these matters, began to be shaken by the speculative thinkers of the seventeenth century; but it was reserved for the eighteenth century to overthrow it, by letting in the great idea of necessity, and proving, that the rate of wages established in a country, was the inevitable consequence of the circumstances in which that country was placed, and had no connexion with the wishes of any individual, or, indeed, with the wishes of any class. To all instructed persons, this is now a familiar truth. Its discovery has excluded the notion of gratitude from the pecuniary relation between employers and employed, and has made known that servants or workmen who receive wages, have no more reason to be grateful than those who pay them. For, no choice having been exercised in fixing the wages, no favour can be conferred in their payment. The whole process is compulsory, and is the result of what had previously happened. Scarcely had the eighteenth century passed away, when this most important discovery was completed. It was decisively proved, that the reward of labour depends solely on two things; namely, the magnitude of that national fund out of which all labour is paid, and the number of the labourers among whom the fund is to be divided.

This vast step in our knowledge is due, mainly, though not entirely, to Malthus, whose work on Population, besides marking an epoch in the history of speculative thought, has already produced considerable practical results, and will probably give rise to others more considerable still. It was published in 1798; so that Adam Smith, who died in 1790, missed what to him would have been the intense pleasure of seeing how, in it, his own views were expanded rather than corrected. Indeed, it is certain, that without Smith there would have been no Malthus; that is, unless Smith had laid the foundation, Malthus could not have raised the superstructure. It was Adam Smith, who, far more than any other man, introduced the conception of uniform and necessary sequence into the apparently capricious phenomena of wealth, and who studied those phenomena by the aid of principles, of which selfishness alone supplied the data. According to his view, the employers of labour have, as employers, no benevolence, no sympathy, no virtue of any kind. Their sole aim is, their own selfish interest. They are constantly engaged in a tacit, if not in an open, combination, to prevent the lower ranks from being benefited by a rise of wages; and they sometimes combine for the purpose even of depressing those wages below their actual rate.[683] Having no bowels, they think only of themselves. The idea of their wishing to mitigate the inequalities of fortune, is to be exploded as one of the chimeras of that protective spirit, which imagined that society could not go on, unless the richer classes relieved the poorer ones, and sympathized with their troubles. This antiquated notion is further rebutted by the fact, that wages are always higher in summer than in winter, although the expenses which a labourer incurs in winter, being heavier than in summer, he ought, on principles of common humanity, to receive more money during the more expensive season.[684] In the same way, in years of scarcity, the dearness of food causes many persons to go to service, in order to support their families. The masters, instead of charitably paying such servants more on account of the unfortunate position in which they are placed, avail themselves of that position to pay them less. They make better terms for themselves; they lower wages just at the moment when sympathy for misfortune would have raised them; and, as they find that their servants, besides being worse remunerated, are, by poverty, made more submissive, they consider that scarcity is a blessing, and that dear years are to be commended as more favourable to industry than cheap ones.[685]

Adam Smith, therefore, though he failed in grasping the remote cause of the rate of wages, clearly saw that the approximate cause was, not the generosity of human nature, but its selfishness, and that the question was one of supply and demand; each side striving to extract as much as possible from the other.[686] By the aid of the same principle, he explained another curious fact, namely, the extravagant rewards bestowed on some of the most despicable classes of society, such, for instance, as opera-dancers, who always receive enormous pay for insignificant services. He observes, that one of the reasons why we pay them so highly, is, because we despise them. If to be a public dancer were a creditable occupation, more persons would be brought up to it, and the supply of public dancers becoming greater, competition would lower their wages. As it is, we look on them disdainfully. By way of compensating the disdain, we have to bribe them largely to induce them to follow their pursuit.[687] Here we see, that the reward which one class bestows on another, instead of being increased by sympathy, is increased by scorn; so that the more we contemn the tastes and the way of life of our fellow-creatures, the more liberal we are in recompensing them.

Passing to another, and somewhat different, class, Adam Smith threw new light on the cause of that hospitality for which the clergy were famous during the Middle Ages, and for the magnificence of which they have received great praise. He shows that, although they undoubtedly relieved a large amount of distress, this is not to be ascribed to them as a merit, since it resulted from the peculiarity of their position, and since, moreover, they did it for their own advantage. In the Middle Ages, the clergy possessed enormous wealth, and their revenues were mostly paid, not in money, but in kind, such as corn, wine, and cattle. Trade and manufactures being hardly known, the clergy could find no use for these commodities except to feed other people. By employing them in that way, they benefited themselves in the most effectual manner. They gained a reputation for extensive charity; they increased their influence; they multiplied the number of their adherents; and they not only advanced themselves to temporal power, but they secured to their spiritual threats a respect, which, without this contrivance, it would have been impossible for them to obtain.[688]

The reader will now be able to understand the nature of that method of investigation which is adopted in the Wealth of Nations, and of which I have given more instances than I should otherwise have done, partly because the question of philosophic method lies at the very root of our knowledge, and partly because no attempt has hitherto been made to analyze the intellect of Adam Smith, by considering his two great works as the opposite, but yet the compensatory, parts of a single scheme. And, as he is by far the greatest thinker Scotland has produced, I need hardly apologize, in a history of the Scotch mind, for devoting so much attention to his system, and endeavouring to examine it at its base. But, having done so, it would be a needless prolixity to treat with equal fulness the productions of those other eminent Scotchmen who lived at the same time, and nearly all of whom pursued a method essentially, though not entirely, the same; that is to say, they preferred the deductive process of reasoning from principles, to the inductive process of reasoning to them. In that peculiar form of deduction which consists in a deliberate suppression of part of the principles, Adam Smith stands alone. For, though others attempted to follow that plan, they did so irregularly, and at intervals, and did not, like him, see the importance of keeping close to their method, and of invariably abstaining from letting into the premisses of their arguments, considerations which would complicate the problem that they wished to solve.