If bankers are restrained from issuing any circulating bank notes, or notes payable to the bearer, for less than a certain sum, and if they are subjected to the obligation of an immediate and unconditional payment of such bank notes as soon as presented, their trade may, with safety to the public, be rendered in all other respects perfectly free.The late multiplication of banking companies in both parts of the United Kingdom, an event by which many people have been much alarmed, instead of diminishing, increases the security of the public.It obliges all of them to be more circumspect in their conduct, and, by not extending their currency beyond its due proportion to their cash, to guard themselves against those malicious runs which the rivalship of so many competitors is always ready to bring upon them.It restrains the circulation of each particular company within a narrower circle, and reduces their circulating notes to a smaller number.By dividing the whole circulation into a greater number of parts, the failure of any one company, an accident which, in the course of things, must sometimes happen, becomes of less consequence to the public.This free competition, too, obliges all bankers to be more liberal in their dealings with their customers, lest their rivals should carry them away.
In general, if any branch of trade, or any division of labour, be advantageous to the public, the freer and more general the competition, it will always be the more so.
CHAPTER III
Of the Accumulation of Capital, or of Productive and Unproductive Labour THERE is one sort of labour which adds to the value of the subject upon which it is bestowed: there is another which has no such effect.The former, as it produces a value, may be called productive; the latter, unproductive labour.Thus the labour of a manufacturer adds, generally, to the value of the materials which he works upon, that of his own maintenance, and of his master's profit.The labour of a menial servant, on the contrary, adds to the value of nothing.Though the manufacturer has his wages advanced to him by his master, he, in reality, costs him no expense, the value of those wages being generally restored, together with a profit, in the improved value of the subject upon which his labour is bestowed.But the maintenance of a menial servant never is restored.A man grows rich by employing a multitude of manufacturers: he grows poor by maintaining a multitude of menial servants.The labour of the latter, however, has its value, and deserves its reward as well as that of the former.But the labour of the manufacturer fixes and realizes itself in some particular subject or vendible commodity, which lasts for some time at least after that labour is past.It is, as it were, a certain quantity of labour stocked and stored up to be employed, if necessary, upon some other occasion.That subject, or what is the same thing, the price of that subject, can afterwards, if necessary, put into motion a quantity of labour equal to that which had originally produced it.The labour of the menial servant, on the contrary, does not fix or realize itself in any particular subject or vendible commodity.His services generally perish in the very instant of their performance, and seldom leave any trace or value behind them for which an equal quantity of service could afterwards be procured.
The labour of some of the most respectable orders in the society is, like that of menial servants, unproductive of any value, and does not fix or realize itself in any permanent subject; or vendible commodity, which endures after that labour is past, and for which an equal quantity of labour could afterwards be procured.The sovereign, for example, with all the officers both of justice and war who serve under him, the whole army and navy, are unproductive labourers.They are the servants of the public, and are maintained by a part of the annual produce of the industry of other people.Their service, how honourable, how useful, or how necessary soever, produces nothing for which an equal quantity of service can afterwards be procured.The protection, security, and defence of the commonwealth, the effect of their labour this year will not purchase its protection, security, and defence for the year to come.In the same class must be ranked, some both of the gravest and most important, and some of the most frivolous professions: churchmen, lawyers, physicians, men of letters of all kinds; players, buffoons, musicians, opera-singers, opera-dancers, etc.The labour of the meanest of these has a certain value, regulated by the very same principles which regulate that of every other sort of labour; and that of the n oblest and most useful, 50 produces nothing which could afterwards purchase or procure an equal quantity of labour.
Like the declamation of the actor, the harangue of the orator, or the tune of the musician, the work of all of them perishes in the very instant of its production.
Both productive and unproductive labourers, and those who do not labour at all, are all equally maintained by the annual produce of the land and labour of the country.This produce, how great soever, can never be infinite, but must have certain limits.According, therefore, as a smaller or greater proportion of it is in any one year employed in maintaining unproductive hands, the more in the one case and the less in the other will remain for the productive, and the next year's produce will be greater or smaller accordingly; the whole annual produce, if we except the spontaneous productions of the earth, being the effect of productive labour.
