I have many apologies to make to you for my idleness since I came to Scotland. The truth is, I bought at London a good many partly new books or editions that were new to me, and the amusement I found in reading and diverting myself with them debauched me from my proper business, the preparing a new edition of the Wealth of Nations. I am now, however, heartily engaged at my proper work, and I hope in two or three months to send you up the second edition corrected in many places, with three or four very considerable additions, chiefly to the second volume. Among the rest is a short but, I flatter myself, a complete history of all the trading companies in Great Britain. These additions I mean not only to be inserted at their proper places into the new edition, but to be printed separately and to be sold for a shilling or half-a-crown to the purchasers of the old edition. The price must depend on the bulk of the additions when they are all written out. It would give me great satisfaction if you would let me know by the return of the Post if this delay will not be inconvenient. Remember me to Strahan. He will be so good as excuse my not writing to him, as I have nothing to say but what I have now said to you, and he knows my aversion to writing.[313]
The additions of which he speaks in this letter were published separately in 1783 in quarto, so as to suit the two previous editions of the work, and the new edition containing them was published in the end of 1784 in three volumes octavo, at the price of a guinea. The delay was due to booksellers' reasons. Dr. Swediaur, the eminent Paris physician, who was resident in Edinburgh at the time studying with Cullen, wrote Bentham in November 1784 that Smith, whom he used to see at least once a week, had shown him the new edition printed and finished, but had told him that Cadell would not publish it till all the people of fashion had arrived in London, and would then at once push a large sale. Swediaur adds that he found this was a bookseller's trick very generally practised, and of Smith himself he says he found him "a very unprejudiced and good man."[314]
The principal additions are the result of investigations to which he seems to have been prompted by current agitations of the stream of political opinion. He gives now, for example, a fuller account of the working of the bounty system in the Scotch fisheries, which was then the subject of a special parliamentary inquiry, and on which his experience as a Commissioner of Customs furnished him with many opportunities of gaining accurate information; and he enters on a careful examination of the chartered and regulated corporations, and especially of the East India Company, whose government of the great oriental dependency was at the moment a question of such urgency that Fox introduced his India Bill which killed the Coalition Ministry in 1783, and Pitt established the Board of Control in 1784.
The new matter contains two recommendations which have attracted comment as ostensible contraventions of free trade doctrine. One of them is the recommendation of a tax on the export of wool; but then the tax was to take the place of the absolute prohibition of the export which then existed, and it was not to be imposed for protectionist reasons, but for the simple financial purpose of raising a revenue. Smith thought few taxes would yield so considerable a revenue with so little inconvenience to anybody. The other supposed contravention of free trade doctrine is the sanction he lends to temporary commercial monopolies; but then this is avowedly a device for an exceptional situation in which a project promises great eventual benefit to the public, but the projectors might without the monopoly be debarred from undertaking it by the magnitude of the risk it involved. He places this temporary monopoly in the same category with authors' copyrights and inventors' patents; it was the easiest and most natural way of recompensing a projector for hazarding a dangerous and expensive experiment of which the public was afterwards to reap the benefit.[315] It was only to be granted for a fixed term, and upon proof of the ultimate advantage of the enterprise to the public.
FOOTNOTES:
[307] New York Evening Post, 30th April 1887. Original in possession of Mr. Worthington C. Ford, Washington, U.S.A.
[308] Morellet, Mémoires, i. 244.
[309] Roscher, Geschichte, p. 599.
[310] Gentz, Briefe an Christian Garve, p. 63.
[311] Gibbon's Miscellaneous Works, ii. 479.