of　pieces　of　silver　with　which　they　are　paid；　but　by　the
  proportion　which　those　pieces　bear　to　the　whole　capital　employed。
  Thus　in　a　particular　country　five　shillings　a　week　are　said　to　be
  the　common　wages　of　labour；　and　ten　per　cent　the　common　profits
  of　stock。　But　the　whole　capital　of　the　country　being　the　same　as
  before；　the　competition　between　the　different　capitals　of
  individuals　into　which　it　was　divided　would　likewise　be　the　same。
  They　would　all　trade　with　the　same　advantages　and　disadvantages。
  The　common　proportion　between　capital　and　profit；　therefore；
  would　be　the　same；　and　consequently　the　common　interest　of　money；
  what　can　commonly　be　given　for　the　use　of　money　being　necessarily
  regulated　by　what　can　commonly　be　made　by　the　use　of　it。
  Any　increase　in　the　quantity　of　commodities　annually
  circulated　within　the　country；　while　that　of　the　money　which
  circulated　them　remained　the　same；　would；　on　the　contrary；
  produce　many　other　important　effects；　besides　that　of　raising　the
  value　of　the　money。　The　capital　of　the　country；　though　it　might
  nominally　be　the　same；　would　really　be　augmented。　It　might
  continue　to　be　expressed　by　the　same　quantity　of　money；　but　it
  would　command　a　greater　quantity　of　labour。　The　quantity　of
  productive　labour　which　it　could　maintain　and　employ　would　be
  increased；　and　consequently　the　demand　for　that　labour。　Its　wages
  would　naturally　rise　with　the　demand；　and　yet　might　appear　to
  sink。　They　might　be　paid　with　a　smaller　quantity　of　money；　but
  that　smaller　quantity　might　purchase　a　greater　quantity　of　goods
  than　a　greater　had　done　before。　The　profits　of　stock　would　be
  diminished　both　really　and　in　appearance。　The　whole　capital　of
  the　country　being　augmented；　the　competition　between　the
  different　capitals　of　which　it　was　composed　would　naturally　be
  augmented　along　with　it。　The　owners　of　those　particular　capitals
  would　be　obliged　to　content　themselves　with　a　smaller　proportion
  of　the　produce　of　that　labour　which　their　respective　capitals
  employed。　The　interest　of　money；　keeping　pace　always　with　the
  profits　of　stock；　might；　in　this　manner；　be　greatly　diminished；
  though　the　value　of　money；　or　the　quantity　of　goods　which　any
  particular　sum　could　purchase；　was　greatly　augmented。
  In　some　countries　the　interest　of　money　has　been　prohibited
  by　law。　But　as　something　can　everywhere　be　made　by　the　use　of
  money；　something　ought　everywhere　to　be　paid　for　the　use　of　it。
  This　regulation；　instead　of　preventing；　has　been　found　from
  experience　to　increase　the　evil　of　usury；　the　debtor　being
  obliged　to　pay；　not　only　for　the　use　of　the　money；　but　for　the
  risk　which　his　creditor　runs　by　accepting　a　compensation　for　that
  use。　He　is　obliged；　if　one　may　say　so；　to　insure　his　creditor
  from　the　penalties　of　usury。
  In　countries　where　interest　is　permitted；　the　law；　in　order
  to　prevent　the　extortion　of　usury；　generally　fixes　the　highest
  rate　which　can　be　taken　without　incurring　a　penalty。　This　rate
  ought　always　to　be　somewhat　above　the　lowest　market　price；　or　the
  price　which　is　commonly　paid　for　the　use　of　money　by　those　who
  can　give　the　most　undoubted　security。　If　this　legal　rate　should
  be　fixed　below　the　lowest　market　rate；　the　effects　of　this
  fixation　must　be　nearly　the　same　as　those　of　a　total　prohibition
  of　interest。　The　creditor　will　not　lend　his　money　for　less　than
  the　use　of　it　is　worth；　and　the　debtor　must　pay　him　for　the　risk
  which　he　runs　by　accepting　the　full　value　of　that　use。　If　it　is
  fixed　precisely　at　the　lowest　market　price；　it　ruins　with　honest
  people；　who　respect　the　laws　of　their　country；　the　credit　of　all
  those　who　cannot　give　the　very　best　security；　and　obliges　them　to
  have　recourse　to　exorbitant　usurers。　In　a　country；　such　as　Great
  Britain；　where　money　is　lent　to　government　at　three　per　cent　and
  to　private　people　upon　a　good　security　at　four　and　four　and　a
  half；　the　present　legal　rate；　five　per　cent；　is　perhaps　as　proper
  as　any。
  The　legal　rate；　it　is　to　be　observed；　though　it　ought　to　be
  somewhat　above；　ought　not　to　be　much　above　the　lowest　market
  rate。　If　the　legal　rate　of　interest　in　Great　Britain；　for
  example；　was　fixed　so　high　as　eight　or　ten　per　cent；　the　greater
  part　of　the　money　which　was　to　be　lent　would　be　lent　to　prodigals
  and　projectors；　who　alone　would　be　willing　to　give　this　high
  interest。　Sober　people；　who　will　give　for　the　use　of　money　no
  more　than　a　part　of　what　they　are　likely　to　make　by　the　use　of
  it；　would　not　venture　into　the　competition。　A　great　part　of　the
  capital　of　the　country　would　thus　be　kept　out　of　the　hands　which
  were　most　likely　to　make　a　profitable　and　advantageous　use　of　it；
  and　thrown　into　those　which　were　most　likely　to　waste　and　destroy
  it。　Where　the　legal　rate　of　interest；　on　the　contrary；　is　fixed
  but　a　very　little　above　the　lowest　market　rate；　sober　people　are
  universally　preferred；　as　borrowers；　to　prodigals　and　projectors。
  The　person　who　lends　money　gets　nearly　as　much　interest　from　the
  former　as　he　dares　to　take　from　the　latter；　and　his　money　is　much
  safer　in　the　hands　of　the　one　set　of　people　than　in　those　of　the
  other。　A　great　part　of　the　capital　of　the　country　is　thus　thrown
  into　the　hands　in　which　it　is　most　likely　to　be　employed　with
  advantage。
  No　law　can　reduce　the　common　rate　of　interest　below　the
  lowest　ordinary　market　rate　at　the　time　when　that　law　is　made。
  Notwithstanding　the　edict　of　1766；　by　which　the　French　king
  attempted　to　reduce　the　rate　of　interest　from　five　to　four　per
  cent；　money　continued　to　be　lent　in　France　at　five　per　cent；　the
  law　being　evaded　in　several　different　ways。
  The　ordinary　market　price　of　land；　it　is　to　be　observed；
  depends　everywhere　upon　the　ordinary　market　rate　of　interest。　The
  person　who　has　a　capital　from　which　he　wishes　to　derive　a
  revenue；　without　taking　the　trouble　to　employ　it　himself；
  deliberates　whether　he　should　buy　land　with　it　or　lend　it　out　at
  interest。　The　superior　security　of　land；　together　with　some　other
  advantages　which　almost　everywhere　attend　upon　this　species　of
  property；　will　generally　dispose　him　to　content　himself　with　a
  smaller　revenue　from　land　than　what　he　might　have　by　lending　out
  his　money　at　interest。　These　advantages　are　sufficient　to
  compensate　a　certain　difference　of　revenue；　but　they　will
  compensate　a　certain　difference　only；　and　if　the　rent　of　land
  should　fall　short　of　the　interest　of　money　by　a　greater
  difference；　nobody　would　buy　land；　which　would　soon　reduce　its
  ordinary　price。　On　the　contrary；　if　the　advantages　should　much
  more　than　compensate　the　difference；　everybody　would　buy　land；
  which　again　would　soon　raise　its　ordinary　price。　When　interest
  was　at　ten　per　cent；　land　was　commonly　sold　for　ten　and　twelve
  years'　purchase。　As　interest　sunk　to　six；　five；　and　four　per
  cent；　the　price　of　land　rose　to　twenty；　five…and…twenty；　and
  thirty　years'　purchase。　The　market　rate　of　interest　is　higher　in
  France　than　in　England；　and　the　common　price　of　land　is　lower。　In
  England　it　commonly　sells　at　thirty；　in　France　at　twenty　years'
  purchase。
  CHAPTER　V
  Of　the　Different　Employment　of　Capitals
  THOUGH　all　capitals　are　destined　for　the　maintenance　of
  productive　labour　only；　yet　the　quantity　of　that　labour　which
  equal　capitals　are　capable　of　putting　into　motion　varies
  extremely　according　to　the　diversity　of　their　employment；　as　does
  likewise　the　value　which　that　employment　adds　to　the　annual
  produce　of　the　land　and　labour　of　the　country。
  A　capital　may　be　employed　in　four　different　ways：　either；
  first；　in　procuring　the　rude　produce　annually　required　for　the
  use　and　consumption　of　the　society；　or；　secondly；　in
  manufacturing　and　preparing　that　rude　produce　for　immediate　use
  and　consumption；　or；　thirdly；　in　transporting　either　the　rude　or
  manufactured　produce　from　the　places　where　they　abound　to　those
  where　they　are　wanted；　or；　lastly；　in　dividing　particular
  portions　of　either　into　such　small　parcels　as　suit　the　occasional
  demands　of　those　who　want　them。　In　the　first　way　are　employed　the
  capitals　of　all　those　who　undertake　the　improvement　or
  cultivation　of　lands；　mines；　or　fisheries；　in　the　second；　those
  of　all　master　manufacturers；　in　the　third；　those　of　all　wholesale
  merchants；　and　in　the　fourth；　those　of　all　retailers。　It　is
  difficult　to　conceive　that　a　capital　should　be　employed　in　any
  way　which　may　not　be　classed　under　some　one　or　other　of　those
  four。
  Each　of　these　four　methods　of　employing　a　capital　is
  essentially　necessary　either　to　the　existence　or　extension　of　the
  other　three；　or　to　the　general　conveniency　of　the　society。
  Unless　a　capital　was　employed　in　furnishing　rude　produce　to
  a　certain　degree　of　abundance；　neither　manufactures　nor　trade　of
  any　kind　could　exist。
  Unless　a　capital　was　employed　in　manufacturing　that　part　of
  the　rude　produce　which　requires　a　good　deal　of　preparation　before
  it　can　be　fit　for　use　and　consumption；　it　either　would　never　be
  produced；　because　there　could　be　no　demand　for　it；　or　if　it　was
  p