ore precisely the system of the economists。 He begins by asserting that gold and silver； the signs of wealth； the means of exchange； the price of all commodities； do not themselves constitute the wealth of states； and that no judgment can be formed concerning the prosperity of a nation； from the abundance of its precious metals。 He next proceeds to survey the different classes of men； all of whom； occupied in gaining money； and causing wealth to circulate； even when acquiring it for themselves； are not； according to him； occupied with any thing besides exchange。 He endeavours to distinguish the classes possessed of a creative power； it is amongst them that wealth must originate； all the transactions of commerce appearing to be nothing else but the transmission of that wealth from hand to hand。 The merchant who carries the productions of both hemispheres from one continent to the other； and on returning to the ports of his own country； obtains； at the sale of his cargo； a sum double of that with which he began his voyage； does not； after all； appear； in the eyes of Quesnay； to have performed any thing but an exchange。 If； in the colonies； he has sold the manufactures of Europe at a higher price than they cost him； the reason is； they were in fact worth more。 Together with their prime cost； he must also be reimbursed for the value of his time； his cares； his subsistence； and that of his sailors and agents during the voyage。 He has a like reimbursement to claim on the cotton or sugar he brings back to Europe。 If； at the end of his voyage； any profit remains； it is the fruit of his economy and good management。 The wages allowed him by consumers； for the trouble he has undergone； are greater than the sum he had expended。 It is the nature of wages； however； to be entirely expended by him who earns them； and had this merchant done so； he would have added nothing to the national wealth； by the labour of his whole life； because the produce which he brings back does nothing more than exactly replace the valuE of the produce given for it； added to his own wages； and the wages of all that were engaged with him in the business。 Agreeably to this reasoning； the French philosopher gave to transport trade the name of economical trade； which it still retains。 This species of commerce； he asserts； is not destined to provide for the wants of the nation that engages in it； but merely to serve the convenience of two foreign nations。 The carrying nation acquires from it no other profit than wages； and cannot grow rich except by the saving which economy enables it to make on them。 Quesnay； next adverting to manufactures； considers them an exchange； just the same as commerce； but instead of having in view two present values； their primitive contract is； in his opinion； an exchange of the present against the future。 The merchandise produced by the labour of the artisan is but the equivalent of his accumulated wages。 During his labour； he had consumed the fruits of the earth； and the work produced by him is nothing but their value。 The economist next directs his attention to agriculture。 The labourer appears to him to be in the same condition as the merchant and the artisan。 Like the latter； he makes with the earth an exchange of the present against the future。 The crops produced by him represent the accumulated value of his labour； they pay his hire； to which he has the same right as the artisan to his wages； or the merchant to his profit。 But when this hire has been deducted； there remains a net revenue； which was not be found in manufactures and commerce； it is what the labourer pays the proprietor for the use of his land。 This revenue； Quesnay thinks； is of a nature quite different from any other。 It is not wages； it is not the result of an exchange； it is the price of the earth's spontaneous labour； the fruit of nature's beneficence； and since it does not represent pre…existent wealth； it alone must be the source of every kind of wealth。 Tracing the value of all other commodities； under all its transformations； Quesnay still discovers its first origin in the fruits of the earth。 The labours of the husbandman； of the artisan； of the merchant； consume those fruits in the shape of wages and produce them under new forms。 The proprietor alone receives them at their source from the hands of nature herself； and by means of them is enabled to pay the wages of all his countrymen； who labour only for him。 This ingenious system totally supplanted that of the merchants。 The economists denied the existence of that commercial balance to which their antagonists attached so much importance； they asserted the impossibility of that accumulation of gold and silver which the others expected from it； throughout the nation； they could see only proprietors of land； the sole dispensers of the national fortune； productive workmen； or labourers producing the revenue of the former。 and a hired class； in which they ranked merchants also denying to them； as to the artisans； the faculty of producing any thing。 The plans； which these two sects recommended to governments； differed not less than their principles。 While the mercantilists wished authority to interfere in every thing； the economists incessantly repeated laissez faire et laissez passer （let every man do as he pleases； and every thing take its course；） for as the public interest consists in the union of all individual interests； individual interest will guide each man more surely to the public interest than any government can do。 An excessive ferment was excited in France by the system of the economists。 The government of that nation allowed the people to talk about public affairs； but not to understand them。 The discussion； of Quesnay's theory was sufficiently unshackled； but none of the facts or documents in the hands of the administration； were presented to the public eye。 In the system of the French economists； it is easy to discern the effects produced by this mixture of ingenious theory and involuntary ignorance。 It seduced the people； because they were now for the first time occupied with their own public affairs。 But； during these discussions； a free nation； possessed of the right to examine its own public affairs； was producing a system not less ingenious； and much better supported by fact and observation； a system which； after a short struggle； at length cast its predecessors into the shade； for truth always triumphs in the end； over dreams； however brilliant。 Adam Smith； author of this third system； which represents labour as the sole origin of wealth； and economy as the sole means of accumulating it； has； in one sense； carried the science of political economy to perfection； at a single step。 Experience； no doubt； has disclosed new truths to us； the experience of late years； in particular； has forced us to make sad discoveries： but in completing the system of Smith； that experience has also confirmed it。 Of the various succeeding authors； no one has sought any other theory。 Some have applied what he advanced to the administration of different counties； others have confirmed it by new experiments and new observations； some have expanded it by developments； which flow from the principles laid down by him； some have even here and there detected errors in his work； but it has been by following out the truths which he taught and rectifying them by light borrowed from its author。 Never did philosopher effect a more complete revolution in any science： for those even who dissent from his doctrine acknowledge his authority； sometimes they attack； solely because they do not understand him； most commonly； they flatter themselves with the belief of still following； even while they contradict him。 We shall devote the rest of this article to explain the science which he taught us； though in an order different from his。 We shall arrange it under the six following heads： Formation and Progress of Wealth： Territorial Wealth； Commercial Wealth； Money； Taxes； and Population。
Chapter 2
Formation and Progress of Wealth
Man brings into the world with him certain wants； which he must satisfy in order to live； certain desires which lead him to expect happiness from particular enjoyments； and a certain industry or aptitude for labour； which enables him to satisfy the requisitions of both。 His wealth originates in this industry： his wants and desires are its employments。 All that man values is created by his industry； all that he creates is destined to be consumed in satisfying his wants and desires。 But； between the moment of its production by labour； and its consumption by enjoyment； the thing destined for man's use may have an existence more or less durable。 It is this thing； this accumulated and still unconsumed fruit of labour； which is called wealth。 Wealth may exist not only without any sign of exchange； or without money； but even without any possibility of exchange； or without trade。 Suppose a man to be left on a desert island； the undisputed property of this whole island is not wealth； whatever be the natural fertility of its soil； the abundance of the game straying in its forests； of the fish sporting on its shores； or the mines concealed in its bosom。 On the contrary； amid all these benefits presented him by nature； the man may sink to the lowest degree of penury； and die perhaps of hunger。 But； if his industry enables him to catch some of the animals that wander in his woods： and if； instead of consuming them immediately； he reserves them for his future wants； if； in this interval； he gets them tamed and multiplied； so that he can live on their milk； or associate them to his labour； he is then beginning to acquire wealth； because labour has gained him the possession of these animals； and a fresh labour has rendered them domestic。 The measure of his wealth will not be the price； which he might obtain for his property in exchange； because he is debarred from all exchange； but the length of time during which no farther labour will be requisite to satisfy his wants； compared with the extent of those wants。 By subduing those animals； the man has made them his property and wealth； by subduing the ground； he will； in like manner； convert it into property and wealth。 His island is destitute o