The Scottish nobility had their town-houses in its gloomy courts, and great dowagers and famous generals still toiled up its cheerless stairs. Panmure House itself had been the residence of the Panmure family before Smith occupied it, and became the residence of the Countess of Aberdeen after his death. Most of his own more particular friends too—the better aristocracy of letters and science—lived about him here. If it was to Edinburgh, as Gibbon remarks, that "taste and philosophy seemed to have retired from the smoke and hurry of the immense capital of London," it was in the ancient smoke and leisure of the Canongate they found their sanctuary. Robertson flitted out, indeed, to the Grange House; Black—Smith's special crony in this Edinburgh period—to the present Blind Asylum in Nicolson Street, then a country villa; and Adam Ferguson to a place at the Sciennes which, though scarce two miles from the Cross, was thought so outrageously remote by the people of the compact little Edinburgh of those days, that his friends always called it Kamtschatka, as if it lay in the ends of the earth. But Kames and Hailes still lived in New Street, Sir John Dalrymple and Monboddo and many other notabilities in St. John Street, Cullen in the Mint, and Dugald Stewart in the Lothian Hut (the town-house of the Marquis of Lothian) in the Horse Wynd.

Panmure House is still standing. It is a much more modern structure than the houses near it, having been built towards the middle of last century; and although its rooms are now mostly tenantless, and its garden a cooper's yard, it wears to this day an air of spacious and substantial comfort which is entirely wanting in the rest of the neighbourhood. William Windham, the statesman, who dined in it repeatedly when he was in Edinburgh with Burke in 1785, thought it a very stately house indeed for a philosopher. "House magnificent," he enters in his diary, "and place fine," and one can still imagine how it would appear so when the plastered walls were yet white, and the eye looked over the long strip of terraced garden on to the soft green slopes of the Calton. There was then no building of any kind on or about the Calton Hill, except the Observatory, and Dugald Stewart, who was very fond of rural scenery, always said that the great charm of his own house a few closes up was its view of the Calton crags and braes.

Smith brought over his mother and his cousin, Miss Douglas, from Kirkcaldy, and a few months later the youngest son of his cousin, Colonel Douglas of Strathendry, who was to attend school and college with a view to the bar, and whom he made his heir. Windham, after visiting them, makes the same note twice in his diary, "Felt strongly the impression of a family completely Scotch." Smith's house was noted for its simple and unpretending hospitality. He liked to have his friends about him without the formality of an invitation, and few strangers of distinction visited Edinburgh without being entertained in Panmure House. His Sunday suppers were still remembered and spoken of in Edinburgh when M'Culloch lived there as a young man. Scotch Sabbatarianism had not at that time reached the rigour that came in with the evangelical revival in the beginning of this century, and the Sunday supper was a regular Edinburgh institution. Even the Evangelical leaders patronised it. Lord Cockburn and Mrs. Somerville both speak with very agreeable recollections of the Sunday supper parties of the Rev. Sir Harry Moncreiff, and Boswell mentions being invited to one by another Evangelical leader, Dr. Alexander Webster.

His mother, his friends, his books—these were Smith's three great joys. He had a library of about 3000 volumes, as varied a collection in point of subject-matter as it would be possible to find. Professor Shield Nicholson, who saw a large portion of it, says: "I was most struck by the large number of books of travel and of poetry, of some of which there were more than one edition, and occasionally éditions de luxe. I had hoped to find marginal notes or references which might have thrown light on the authorities of some passages in the Wealth of Nations (for Smith gives no references), but even the ingenious oft-quoted author of the Tracts on the Corn Laws has escaped without a mark. At the same time pamphlets have been carefully bound together and indexes prefixed in Smith's own writing."[284]

Mr. James Bonar has been able to collect a list of probably two-thirds of Smith's books—about 1000 books, or 2200 volumes.[285] Nearly a third of the whole are in French, another third in Latin, Greek, and Italian, and a little more than a third in English. According to Mr. Bonar's analysis, a fifth of them were on Literature and Art; a fifth were Latin and Greek classics; a fifth on Law, Politics, and Biography; a fifth on Political Economy and History; and the remaining fifth on Science and Philosophy. One cannot help remarking, as an indication of the economist's tastes, the almost complete absence of works in theology and prose fiction. Hume's Dialogues on Natural Religion and Pascal's Pensées belong as much to philosophy as theology; Jeremy Taylor's Antiquitates Christianae, Father Paul Sarpi's History of the Council of Trent, and Ruchat's Histoire de la Reformation de la Suisse belong as much to history; and except these the only representatives of theology on Smith's shelves were the English Bible, Watson's edition, 1722—probably his parents' family Bible—a French translation of the Koran, and Van Maestricht's Theologia. The only sermons, except those of Massillon in French, are the Sermons of Mr. Yorick. Those sermons, however, were the only representative of Sterne. Goldsmith was represented by his poems, but not by his fiction; and Defoe, Fielding, Richardson, and Smollett were not represented at all. One or two French novels were there, but except Gulliver, which came in with the complete edition of Swift's works in 1784, the only English novel Smith seems to have possessed was the Man of the World, by his friend Henry Mackenzie. It is perhaps stranger that he ignored the novel than that he ignored theology, for the novel was then a very rising and popular literary form, and Smith began life as a professed literary critic. His mind seems to have been too positive to care much for tales. On the other hand, of the Greek and Latin classics he not unfrequently had several different editions. He had eight, for example, of Horace, who seems to have been an especial favourite.

Like most men who are fond of books, he seems to have bound them well, and often elegantly. Smellie, the printer, says that the first time he happened to be in Smith's library he was "looking at the books with some degree of curiosity, and perhaps surprise, for most of the volumes were elegantly, and some of them superbly bound," when Smith, observing him, said, "You must have remarked that I am a beau in nothing but my books."[286] M'Culloch, however, who had seen the books, doubts whether their condition warranted the account given of them by Smellie, and says that while they were neatly, and in some cases even elegantly bound, he saw few or none of which the binding could with propriety be called superb.

The Custom House was on the upper floors of the Royal Exchange, in Exchange Square, off the High Street; and Kay, standing in his shop over at the corner of the Parliament Close, must often have seen Smith walk past from his house to his office in the morning exactly as he has depicted him in one of his portraits,—in a light-coloured coat, probably linen; knee-breeches, white silk stockings, buckle shoes, and flat broad-brimmed beaver hat; walking erect with a bunch of flowers in his left hand, and his cane, held by the middle, borne on his right shoulder, as Smellie tells us was Smith's usual habit, "as a soldier carries his musket." When he walked his head always moved gently from side to side, and his body swayed, Smellie says, "vermicularly," as if at each alternate step "he meant to alter his direction, or even to turn back." Often, moreover, his lips would be moving all the while, and smiling in rapt conversation with invisible companions. A very noticeable figure he was as he went up and down the High Street, and he used to tell himself the observations of two market women about him as he marched past them one day. "Hegh sirs!" said one, shaking her head significantly. "And he's weel put on too!" rejoined the other, surprised that one who appeared from his dress to be likely to have friends should be left by them to walk abroad alone.

There were five Commissioners in the Scotch Board of Customs, but Smith's colleagues were none of them men of any public reputation at the time, and they are now mere names; but the name of the Secretary of the Board, R.E. Phillips, may be mentioned for the circumstance that, after living to the great age of 104, he was buried—for what reason I know not—in the same grave with Adam Smith in Canongate Churchyard. The business of the office was mostly of a routine and simple character: considering appeals from merchants against the local collector's assessments; the appointment of a new officer here, the suppression of one there; a report on a projected colliery; a plan for a lighthouse, a petition from a wine importer, or the owner of a bounty sloop; a representation about the increase of illicit trade in Orkney, or the appearance of smuggling vessels in the Minch; the despatch of troops to repress illegal practices at some distillery, or to watch a suspected part of the coast; the preparation of the annual returns of income and expenditure, the payment of salaries, and transmission of the balance to the Treasury.

Smith attended to those duties with uncommon diligence; he says himself, in his letter to the Principal of Glasgow College in 1787 on his appointment to the Rectorship, that he was so regular an attendant at the Custom House that he could "take the play for a week at any time" without giving offence or provoking comment. He was evidently a very conscientious and on the whole, no doubt, a satisfactory administrator, though he may have been in some things slower than a clerk bred to business would have been, and caused occasionally a ludicrous mistake through his incidental absence of mind. Sir Walter Scott relates two anecdotes illustrative of that weakness, on the authority of one of Smith's colleagues on the Board of Customs. Having one day to sign an official document as Commissioner, Smith, instead of signing his own name, wrote an imitation of the signature of the Commissioner who had written before him. The other story, though, possibly enough, embellished unconsciously by the teller in some details, is yet of too distinct and peculiar a character to be easily rejected, and for the same reason will best be given in Scott's own words:—

"That Board (the Board of Customs) had in their service as porter a stately person, who, dressed in a huge scarlet gown or cloak covered with frogs of worsted lace, and holding in his hand a staff about seven feet high as an emblem of his office, used to mount guard before the Custom House when a Board was to be held. It was the etiquette that as each Commissioner entered the porter should go through a sort of salute with his staff of office, resembling that which officers used formerly to perform through their spontoon, and then marshal the dignitary to the hall of meeting. This ceremony had been performed before the great economist perhaps five hundred times. Nevertheless one day, as he was about to enter the Custom House, the motions of this janitor seem to have attracted his eye without their character or purpose reaching his apprehension, and on a sudden he began to imitate his gestures as a recruit does those of his drill serjeant. The porter having drawn up in front of the door, presented his staff as a soldier does his musket. The Commissioner, raising his cane and holding it with both hands by the middle, returned the salute with the utmost gravity. The inferior officer, much annoyed, levelled his weapon, wheeled to the right, stepping a pace back to give the Commissioner room to pass, lowering his staff at the same time in token of obeisance. Dr. Smith, instead of passing on, drew up on the opposite side and lowered his cane to the same angle. The functionary, much out of consequence, next moved upstairs with his staff upraised, while the author of the Wealth of Nations followed with his bamboo in precisely the same posture, and his whole soul apparently wrapped in the purpose of placing his foot exactly on the same spot of each step which had been occupied by the officer who preceded him. At the door of the hall the porter again drew off, saluted with his staff, and bowed reverentially. The philosopher again imitated his motions, and returned his bow with the most profound gravity. When the Doctor entered the apartment the spell under which he seemed to act was entirely broken, and our informant, who, very much amused, had followed him the whole way, had some difficulty to convince him that he had been doing anything extraordinary."[287]