Now it was those spirited merchants who had then so much to do with the making of Glasgow that had also something to do with the making of Adam Smith. Plain business men of to-day sometimes smile at the "Virginian Dons" and "tobacco lords" of last century as they picture them gathering to the Glasgow Plainstanes at the hour of Change in the glory of scarlet cloaks, cocked hats, and gold-headed canes, and the plain citizens of that time all making way for their honours as they passed. But there was much enlightenment and sagacity concealed under that finery. Mrs. Montagu, who visited Glasgow in 1767, wrote Sir A. Mitchell, the Ambassador, that she was more delighted with it than with any other commercial town she had seen, because gain did not usurp people's whole attention, but "the sciences, the arts, and the love of agriculture had their share."[65] Their fortunes were small compared with the present standard. Sir John Dalrymple, speaking of three of the foremost merchants of Glasgow (one of them, John Glassford, the richest man in the city), computes that they had a quarter of a million between the three, and Dr. Reid, explaining the anxiety caused in Glasgow by the American troubles in 1765, says Glasgow owners possessed property in the American plantations amounting to £400,000. But these figures meant large handling and large dealings in those times, and perhaps more energy, mind, and character than the bigger figures of the present day; and we are told that commercial men in Glasgow still look back to John Glassford and Andrew Cochrane as perhaps the greatest merchants the Clyde has seen.
Andrew Cochrane was Smith's particular friend among them, and Dr. Carlyle tells that "Dr. Smith acknowledged his obligations to this gentleman's information when he was collecting materials for his Wealth of Nations; and the junior merchants who have flourished since his time and extended their commerce far beyond what was then dreamt of, confess with respectful remembrance that it was Andrew Cochrane who first opened and enlarged their views."[66] Dr. Carlyle informs us, moreover, that Cochrane founded a weekly club in the "forties"—political economy club—of which "the express design was to inquire into the nature and principles of trade in all its branches, and to communicate knowledge and ideas on that subject to each other," and that Smith became a member of this club after coming to reside in Glasgow. This was probably the first political economy club in the world, for Carlyle was in Glasgow in 1743, and it is of that period he speaks when he says, "I was not acquainted with Provost Cochrane at this time, but I observed that the members of this society had the highest admiration of his knowledge and talents."
Cochrane was indeed one of the remarkable men of that time. Smollett describes him in Humphrey Clinker as "one of the first sages of the Scottish kingdom," and "a patriot of a truly Roman spirit." He was Provost of Glasgow during the Rebellion, and while the Government and the Horse Guards slumbered and dawdled, and let Prince Charlie march from the Highlands to Edinburgh, and from Edinburgh up into the heart of England, Cochrane had already raised two regiments in Glasgow to resist the invader, which, however, this same dawdling Government, from mistaken suspicions of Scottish loyalty, refused to permit him to arm. The Prince, on his return from England, actually occupied Glasgow, and taxed it severely, but Cochrane's sagacious management piloted the city through the crisis, so that it neither yielded to the popular Prince's arts nor provoked him to hostilities; and, looking back at these difficulties when he laid down the Provostship a few years later, he said, "I thank my God that my magistracy has ended without reproach." His correspondence, published by the Maitland Club, contains some terse descriptions of the "prodigious slavery" he underwent, "going through the great folks" in London day after day for two months trying to recover from the Government some compensation for the Prince's exactions. And it may be added that it was his banking firm—Cochrane, Murdoch and Co., generally known, however, as the Glasgow Arms Bank, because they printed the Glasgow arms on their notes—that fell on the happy expedient of paying in sixpences when the Bank of Scotland made the infamous attempt to "break" it in 1759 by first collecting its notes for some time, and then suddenly presenting the whole number collected for immediate payment. The agent of the Bank of Scotland presented £2893 of notes on the 14th of December, and after thirty-four successive days' attendance he wrote his employers that he had only received £1232, because "the partners vied with each other in gaining time by miscounting and other low arts, and when the partners became wearied or ashamed of the task, their porter, a menial servant, would act the part of teller."[67]
Of the Political Economy Club, founded by this able man, we know nothing except what Dr. Carlyle tells us, and the only other member of it besides Smith and Cochrane whose name Carlyle mentions is Dr. Wight, Professor of Ecclesiastical and Civil History. But it met once a week all the thirteen years Smith resided in Glasgow, and must have discussed many commercial problems during that time. We know, indeed, some of the principal practical questions which were then agitating the minds of Glasgow merchants, and may be sure those, at least, would be among the questions discussed at the club. Some of them concerned the removal of trade restrictions, but the restrictions which those Glasgow merchants were anxious to remove were restrictions on the import of raw materials for their manufactures, such as iron and linen yarn, and manufacturers, of course, are not necessarily free-traders because they want free import of raw materials. That was advocated as strongly from the old mercantilist standpoint as it is now from the free-trade one; it was merely sanctioning a little addition to our imports in order to produce a much greater addition to our exports.
In 1750 we find Provost Cochrane in correspondence with Smith's friend, James Oswald, M.P., concerting parliamentary action for the entire removal of the import duty on American iron. The Glasgow ironworks—the nailery, as it was called—with which Mr. Cochrane was connected used at that time 400 tons of iron in the year, and the iron had to be all imported at a high price from Russia and Sweden, because the native ores of Scotland were not then discovered, and American iron, by an iniquitous piece of preferential legislation in favour of the English manufacturer, was allowed to come duty free into English but not into Scotch seaports. Cochrane wants Oswald to get the law amended so as to "allow bar iron from our colonies to be imported to Scotland duty free." "It would," he says, "save our country very great sums, and no way hurt the landed interest. It would lower the price of iron, and consequently of all our manufactures, which would increase the consumpt and sale; it would serve for ballast to our ships from North America, and when tobacco is scarce, fill up part of the tonnage; would increase our exports, and no way interfere with our neighbours in the South."[68] That language might be held indifferently by the mercantilist and the free-trader.
In advocating the abolition of the duty on foreign linen yarns, which they succeeded in obtaining in 1756, the Glasgow merchants seem certainly to have had no thought of free trade, or probably anything else but their own obvious interest as manufacturers, for they never dreamt of abolishing either the export bounty on home-made linen cloth or of repealing the law of 1748, which gave their own Glasgow linen factory a considerable lift, and which forbade the import of foreign linen, and fined husbands for letting their wives wear it. Still the discussion of these subjects would open up various points of view, and it may be remembered that this duty on foreign linen yarns is one which Smith himself, free-trader though he was, was against abolishing, not out of any favour for the flax-growers, but for the protection of the poor women scattered in the cottages of the kingdom who made their livelihood by spinning yarn.
On the question of paper money we find Mr. Cochrane and Mr. Glassford—both of whom were bankers as well as merchants—in communication with Baron Mure and Sir James Steuart, the economist, soon after Smith left Glasgow. Sir James would almost certainly be a member of the club, because he resided in the neighbourhood, but as he was only pardoned a few months before Smith resigned his chair, it is improbable that the two economists ever met together at the club meetings. But the questions the two leading merchants were then discussing with Sir James would, no doubt, have been occasionally subjects of conversation at the club during the time of Smith's attendance. What, we find them asking, are the effects of paper money on prices? on the currency? on the exchanges with other countries? What was the effect of small notes? what of notes not payable on demand? They differed on various points. For example, Glassford would let the banks issue notes for any sums they liked, and had no objection to the small ten-shilling and five-shilling notes which were then common. Cochrane would abolish all notes for less than a pound,[69] and Smith—at least in 1776—would abolish all notes less than five pounds.[70] But all alike had a firm grasp of the true nature and operation of money.
Another society of which Smith was a member, and indeed a founder, was the Literary Society of Glasgow. It was a general debating society composed mainly of professors in the University—Cullen, Black, Wilson the astronomer; Robert Simson, Leechman the divinity professor and principal; Millar, and indeed nearly the whole Senatus; with a few merchants or country gentlemen of literary tastes such as William Craufurd, the friend of Hamilton of Bangour; William Mure of Caldwell, M.P. for Renfrewshire; Sir John Dalrymple, the historian, who was a proprietor in the West country; John Callander of Craigforth, the antiquary; Thomas Miller, Town Clerk of Glasgow, and afterwards Lord Justice-Clerk of Scotland; Robert Foulis, the printer; James Watt, who said he derived much benefit from it; Robert Bogle of Shettleston, the promoter of the theatre already mentioned; David Hume, and the Earl of Buchan, elected while residing as a student in 1762.
The Literary Society was founded in 1752, and met every Thursday evening from November to May at half-past six. Its minutes are probably still in existence somewhere, but a few extracts from them have been published by the Maitland Club,[71] and from them we learn that Smith was one of the first contributors to its proceedings. Early in its first session—on the 23rd of January 1753—Professor Adam Smith is stated to have read an account of some of Mr. David Hume's Essays on Commerce. These essays had then just appeared; and they had probably been seen by Smith before their publication, for in September 1752 Hume writes Smith asking him for any corrections he had to suggest on the old edition of the Political Essays with which the Commercial Essays were incorporated. We have seen Hume submitting one of these Commercial Essays in 1750 to Oswald and Mure, and when we find him in 1752 asking for suggestions from Smith on the essays already printed, we may safely infer that he had also asked and received suggestions on the new essays which had never been published.
The Maitland Club volume gives us no information about the papers read in this society after the first six months, except those read by Foulis, but no doubt Smith read other papers in the remaining ten years of his connection with the society. Its debates were often very keen; the metaphysical and theological combats between Professor Millar—a most brilliant debater—and Dr. Reid, the father of the common-sense philosophy, were famous in their day; and on one occasion tradition informs us that Smith engaged in a strenuous discussion on some subject for a whole evening against the entire assembly, and, having lost his point by an overwhelming majority, was overheard muttering to himself, "Convicted but not convinced."[72]