of the family of Seymour is now an inn upon the Bath road。 The
marriage…bed of James the First of Great Britain； which his queen
brought with her from Denmark as a present fit for a sovereign to
make to a sovereign； was； a few years ago； the ornament of an
alehouse at Dunfermline。 In some ancient cities； which either
have been long stationary； or have gone somewhat to decay； you
will sometimes scarce find a single house which could have been
built for its present inhabitants。 If you go into those houses
too； you will frequently find many excellent； though antiquated
pieces of furniture； which are still very fit for use； and which
could as little have been made for them。 Noble palaces；
magnificent villas； great collections of books； statues； pictures
and other curiosities； are frequently both an ornament and an
honour； not only to the neighbourhood； but to the whole country
to which they belong。 Versailles is an ornament and an honour to
France； Stowe and Wilton to England。 Italy still continues to
command some sort of veneration by the number of monuments of
this kind which it possesses； though the wealth which produced
them has decayed； and though the genius which planned them seems
to be extinguished； perhaps from not having the same employment。
The expense too； which is laid out in durable commodities；
is favourable； not only to accumulation； but to frugality。 If a
person should at any time exceed in it； he can easily reform
without exposing himself to the censure of the public。 To reduce
very much the number of his servants； to reform his table from
great profusion to great frugality； to lay down his equipage
after he has once set it up； are changes which cannot escape the
observation of his neighbours； and which are supposed to imply
some acknowledgment of preceding bad conduct。 Few； therefore； of
those who have once been so unfortunate as to launch out too far
into this sort of expense； have afterwards the courage to reform；
till ruin and bankruptcy oblige them。 But if a person has； at any
time； been at too great an expense in building； in furniture； in
books or pictures； no imprudence can be inferred from his
changing his conduct。 These are things in which further expense
is frequently rendered unnecessary by former expense； and when a
person stops short； he appears to do so； not because he has
exceeded his fortune； but because he has satisfied his fancy。
The expense； besides； that is laid out in durable
commodities gives maintenance； commonly； to a greater number of
people than that which is employed in the most profuse
hospitality。 Of two or three hundredweight of provisions； which
may sometimes be served up at a great festival； one half；
perhaps； is thrown to the dunghill； and there is always a great
deal wasted and abused。 But if the expense of this entertainment
had been employed in setting to work masons； carpenters；
upholsterers； mechanics； etc。； a quantity of provisions； of equal
value； would have been distributed among a still greater number
of people who would have bought them in pennyworths and pound
weights； and not have lost or thrown away a single ounce of them。
In the one way； besides； this expense maintains productive； in
the other unproductive hands。 In the one way； therefore； it
increases； in the other； it does not increase； the exchangeable
value of the annual produce of the land and labour of the
country。
I would not； however； by all this be understood to mean that
the one species of expense always betokens a more liberal or
generous spirit than the other。 When a man of fortune spends his
revenue chiefly in hospitality； he shares the greater part of it
with his friends and companions； but when he employs it in
purchasing such durable commodities； he often spends the whole
upon his own person； and gives nothing to anybody without an
equivalent。 The latter species of expense； therefore； especially
when directed towards frivolous objects； the little ornaments of
dress and furniture； jewels； trinkets； gewgaws； frequently
indicates； not only a trifling； but a base and selfish
disposition。 All that I mean is； that the one sort of expense； as
it always occasions some accumulation of valuable commodities； as
it is more favourable to private frugality； and； consequently； to
the increase of the public capital； and as it maintains
productive； rather than unproductive hands； conduces more than
the other to the growth of public opulence。
CHAPTER IV
Of Stock Lent at Interest
THE stock which is lent at interest is always considered as
a capital by the lender。 He expects that in due time it is to be
restored to him； and that in the meantime the borrower is to pay
him a certain annual rent for the use of it。 The borrower may use
it either as a capital； or as a stock reserved for immediate
consumption。 If he uses it as a capital； he employs it in the
maintenance of productive labourers； who reproduce the value with
a profit。 He can； in this case； both restore the capital and pay
the interest without alienating or encroaching upon any other
source of revenue。 If he uses it as a stock reserved for
immediate consumption； he acts the part of a prodigal； and
dissipates in the maintenance of the idle what was destined for
the support of the industrious。 He can； in this case； neither
restore the capital nor pay the interest without either
alienating or encroaching upon some other source of revenue； such
as the property or the rent of land。
The stock which is lent at interest is； no doubt；
occasionally employed in both these ways； but in the former much
more frequently than in the latter。 The man who borrows in order
to spend will soon be ruined； and he who lends to him will
generally have occasion to repent of his folly。 To borrow or to
lend for such a purpose； therefore； is in all cases； where gross
usury is out of the question； contrary to the interest of both
parties； and though it no doubt happens sometimes that people do
both the one and the other； yet； from the regard that all men
have for their own interest； we may be assured that it cannot
happen so very frequently as we are sometimes apt to imagine。 Ask
any rich man of common prudence to which of the two sorts of
people he has lent the greater part of his stock； to those who；
he thinks； will employ it profitably； or to those who will spend
it idly； and he will laugh at you for proposing the question。
Even among borrowers； therefore； not the people in the world most
famous for frugality； the number of the frugal and industrious
surpasses considerably that of the prodigal and idle。
The only people to whom stock is commonly lent； without
their being expected to make any very profitable use of it； are
country gentlemen who borrow upon mortgage。 Even they scarce ever
borrow merely to spend。 What they borrow； one may say； is
commonly spent before they borrow it。 They have generally
consumed so great a quantity of goods； advanced to them upon
credit by shopkeepers and tradesmen； that they find it necessary
to borrow at interest in order to pay the debt。 The capital
borrowed replaces the capitals of those shopkeepers and
tradesmen； which the country gentlemen could not have replaced
from the rents of their estates。 It is not properly borrowed in
order to be spent； but in order to replace a capital which had
been spent before。
Almost all loans at interest are made in money； either of
paper； or of gold and silver。 But what the borrower really wants；
and what the lender really supplies him with； is not the money；
but the money's worth； or the goods which it can purchase。 If he
wants it as a stock for immediate consumption； it is those goods
only which he can place in that stock。 If he wants it as a
capital for employing industry； it is from those goods only that
the industrious can be furnished with the tools； materials； and
maintenance necessary for carrying on their work。 By means of the
loan； the lender； as it were； assigns to the borrower his right
to a certain portion of the annual produce of the land and labour
of the country to be employed as the borrower pleases。
The quantity of stock； therefore； or； as it is commonly
expressed； of money which can be lent at interest in any country；
is not regulated by the value of the money； whether paper or
coin； which serves as the instrument of the different loans made
in that country； but by the value of that part of the annual
produce which； as soon as it comes either from the ground； or
from the hands of the productive labourers； is destined not only
for replacing a capital； but such a capital as the owner does not
care to be at the trouble of employing himself。 As such capitals
are commonly lent out and paid back in money； they constitute
what is called the monied interest。 It is distinct； not only from
the landed； but from the trading and manufacturing interests； as
in these last the owners themselves employ their own capitals。
Even in the monied interest； however； the money is； as it were；
but the deed of assignment； which conveys from one hand to
another those capitals which the owners do not care to employ
themselves。 Those capitals may be greater in almost any
proportion than the amount of the money which serves as the
instrument of their conveyance； the same pieces of money
successively serving for many different loans； as well as for
many different purchases。 A； for example； lends to W a thousand
pounds； with which W immediately purchases of B a thousand
pounds' worth of goods。 B having no occasion for the money
himself； lends the identical pieces to X； with which X
immediately purchases of C another thousand pounds' worth of
goods。 C in the same manner； and for the same reason； lends them
to Y； who again purchases goods with them of D。 In this manner
the same pieces； either of coin or paper； may in the course of a
few days； serve as the instrument of three different loans； and
of three different purchases； each of whi