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Leith; frequently carries and brings back two hundred ton weight

of goods。 Six or eight men; therefore; by the help of

water…carriage; can carry and bring back in the same time the

same quantity of goods between London and Edinburgh; as fifty

broad…wheeled waggons; attended by a hundred men; and drawn by

four hundred horses。 Upon two hundred tons of goods; therefore;

carried by the cheapest land…carriage from London to Edinburgh;

there must be charged the maintenance of a hundred men for three

weeks; and both the maintenance; and; what is nearly equal to the

maintenance; the wear and tear of four hundred horses as well as

of fifty great waggons。 Whereas; upon the same quantity of goods

carried by water; there is to be charged only the maintenance of

six or eight men; and the wear and tear of a ship of two hundred

tons burden; together with the value of the superior risk; or the

difference of the insurance between land and water…carriage。 Were

there no other communication between those two places; therefore;

but by land…carriage; as no goods could be transported from the

one to the other; except such whose price was very considerable

in proportion to their weight; they could carry on but a small

part of that commerce which at present subsists between them; and

consequently could give but a small part of that encouragement

which they at present mutually afford to each other's industry。

There could be little or no commerce of any kind between the

distant parts of the world。 What goods could bear the expense of

land…carriage between London and Calcutta? Or if there were any

so precious as to be able to support this expense; with what

safety could they be transported through the territories of so

many barbarous nations? Those two cities; however; at present

carry on a very considerable commerce with each other; and by

mutually affording a market; give a good deal of encouragement to

each other's industry。

     Since such; therefore; are the advantages of water…carriage;

it is natural that the first improvements of art and industry

should be made where this conveniency opens the whole world for a

market to the produce of every sort of labour; and that they

should always be much later in extending themselves into the

inland parts of the country。 The inland parts of the country can

for a long time have no other market for the greater part of

their goods; but the country which lies round about them; and

separates them from the sea…coast; and the great navigable

rivers。 The extent of their market; therefore; must for a long

time be in proportion to the riches and populousness of that

country; and consequently their improvement must always be

posterior to the improvement of that country。 In our North

American colonies the plantations have constantly followed either

the sea…coast or the banks of the navigable rivers; and have

scarce anywhere extended themselves to any considerable distance

from both。

     The nations that; according to the best authenticated

history; appear to have been first civilised; were those that

dwelt round the coast of the Mediterranean Sea。 That sea; by far

the greatest inlet that is known in the world; having no tides;

nor consequently any waves except such as are caused by the wind

only; was; by the smoothness of its surface; as well as by the

multitude of its islands; and the proximity of its neighbouring

shores; extremely favourable to the infant navigation of the

world; when; from their ignorance of the compass; men were afraid

to quit the view of the coast; and from the imperfection of the

art of shipbuilding; to abandon themselves to the boisterous

waves of the ocean。 To pass beyond the pillars of Hercules; that

is; to sail out of the Straits of Gibraltar; was; in the ancient

world; long considered as a most wonderful and dangerous exploit

of navigation。 It was late before even the Phoenicians and

Carthaginians; the most skilful navigators and ship…builders of

those old times; attempted it; and they were for a long time the

only nations that did attempt it。

     Of all the countries on the coast of the Mediterranean Sea;

Egypt seems to have been the first in which either agriculture or

manufactures were cultivated and improved to any considerable

degree。 Upper Egypt extends itself nowhere above a few miles from

the Nile; and in Lower Egypt that great river breaks itself into

many different canals; which; with the assistance of a little

art; seem to have afforded a communication by water…carriage; not

only between all the great towns; but between all the

considerable villages; and even to many farmhouses in the

country; nearly in the same manner as the Rhine and the Maas do

in Holland at present。 The extent and easiness of this inland

navigation was probably one of the principal causes of the early

improvement of Egypt。

     The improvements in agriculture and manufactures seem

likewise to have been of very great antiquity in the provinces of

Bengal; in the East Indies; and in some of the eastern provinces

of China; though the great extent of this antiquity is not

authenticated by any histories of whose authority we; in this

part of the world; are well assured。 In Bengal the Ganges and

several other great rivers form a great number of navigable

canals in the same manner as the Nile does in Egypt。 In the

Eastern provinces of China too; several great rivers form; by

their different branches; a multitude of canals; and by

communicating with one another afford an inland navigation much

more extensive than that either of the Nile or the Ganges; or

perhaps than both of them put together。 It is remarkable that

neither the ancient Egyptians; nor the Indians; nor the Chinese;

encouraged foreign commerce; but seem all to have derived their

great opulence from this inland navigation。

     All the inland parts of Africa; and all that part of Asia

which lies any considerable way north of the Euxine and Caspian

seas; the ancient Scythia; the modern Tartary and Siberia; seem

in all ages of the world to have been in the same barbarous and

uncivilised state in which we find them at present。 The Sea of

Tartary is the frozen ocean which admits of no navigation; and

though some of the greatest rivers in the world run through that

country; they are at too great a distance from one another to

carry commerce and communication through the greater part of it。

There are in Africa none of those great inlets; such as the

Baltic and Adriatic seas in Europe; the Mediterranean and Euxine

seas in both Europe and Asia; and the gulfs of Arabia; Persia;

India; Bengal; and Siam; in Asia; to carry maritime commerce into

the interior parts of that great continent: and the great rivers

of Africa are at too great a distance from one another to give

occasion to any considerable inland navigation。 The commerce

besides which any nation can carry on by means of a river which

does not break itself into any great number of branches or

canals; and which runs into another territory before it reaches

the sea; can never be very considerable; because it is always in

the power of the nations who possess that other territory to

obstruct the communication between the upper country and the sea。

The navigation of the Danube is of very little use to the

different states of Bavaria; Austria and Hungary; in comparison

of what it would be if any of them possessed the whole of its

course till it falls into the Black Sea。  

                             CHAPTER IV



                    Of the Origin and Use of Money 



     WHEN the division of labour has been once thoroughly

established; it is but a very small part of a man's wants which

the produce of his own labour can supply。 He supplies the far

greater part of them by exchanging that surplus part of the

produce of his own labour; which is over and above his own

consumption; for such parts of the produce of other men's labour

as he has occasion for。 Every man thus lives by exchanging; or

becomes in some measure a merchant; and the society itself grows

to be what is properly a commercial society。

     But when the division of labour first began to take place;

this power of exchanging must frequently have been very much

clogged and embarrassed in its operations。 One man; we shall

suppose; has more of a certain commodity than he himself has

occasion for; while another has less。 The former consequently

would be glad to dispose of; and the latter to purchase; a part

of this superfluity。 But if this latter should chance to have

nothing that the former stands in need of; no exchange can be

made between them。 The butcher has more meat in his shop than he

himself can consume; and the brewer and the baker would each of

them be willing to purchase a part of it。 But they have nothing

to offer in exchange; except the different productions of their

respective trades; and the butcher is already provided with all

the bread and beer which he has immediate occasion for。 No

exchange can; in this case; be made between them。 He cannot be

their merchant; nor they his customers; and they are all of them

thus mutually less serviceable to one another。 In order to avoid

the inconveniency of such situations; every prudent man in every

period of society; after the first establishment of the division

of labour; must naturally have endeavoured to manage his affairs

in such a manner as to have at alltimes by him; besides the

peculiar produce of his own industry; a certain quantity of some

one commodity or other; such as he imagined few people would be

likely to refuse in exchange for the produce of their industry。

     Many different commodities; it is probable; were

successively both thought of and employed for this purpose。 In

the rude ages of society; cattle are said to have been the common

instrument of commerce; and; though they must have been a most

inconvenient one; yet in old 

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