or all of those three parts; as whatever part 
of it remains after paying the rent of the land
and the price of the whole labour employed in 
raising, manufacturing, and bringing it to 
market, must necessarily be profit to somebody. 
As the price or exchangeable value of every 
particular commodity, taken separately, resolves 
itself into some one or other, or all of 
those three parts; so that of all the commodities 
which compose the whole annual produce 
of the labour of every country, taken complexly
must resolve itself into the same three 
parts, and be parcelled out among different inhabitants 
of the country, either as the wages 
of their labour, the profits of their stock, or 
the rent of their land. The whole of what is 
annually either collected or produced by the 
labour of every society, or, what comes to the 
same thing, the whole price of it, is in this 
manner originally distributed among some of 
its different members. Wages, profit, and 
rent, are the three original sources of all revenue
as well as of all exchangeable value. All 
other revenue is ultimately derived from some 
one or other of these. 
Whoever derives his revenue from a fund 
which is his own, must draw it either from 
his labour, from his stock, or from his land
The revenue derived from labour is called 
wages; that derived from stock, by the person 
who manages or employs it, is called profit
that derived from it by the person who 
does not employ it himself, but lends it to another, 
is called the interest or the use of money
It is the compensation which the borrower 
pays to the lender, for the profit which 
he has an opportunity of making by the use 
of the money. Part of that profit naturally 
belongs to the borrower, who runs the risk 
and takes the trouble of employing it, and part 
to the lender, who affords him the opportunity 
of making this profit. The interest of money 
is always a derivative revenue, which, if 
it is not paid from the profit which is made by 
the use of the money, must be paid from some 
other source of revenue, unless perhaps the 
borrower is a spendthrift, who contracts a second 
debt in order to pay the interest of the 
first. The revenue which proceeds altogether 
from land, is called rent, and belongs to the 
landlord. The revenue of the farmer is derived 
partly from his labour, and partly from 
his stock. To him, land is only the instrument 
which enables him to earn the wages of 
this labour, and to make the profits of this 
stock. All taxes, and all the revenue which 
is founded upon them, all salaries, pensions
and annuities of every kind, are ultimately derived 
from some one or other of those three 
original sources of revenue, and are paid either 
immediately or mediately from the wages 
of labour, the profits of stock, or the rent of 
When those three different sorts of revenue 
belong to different persons, they are readily 
distinguished; but when they belong to the 
same, they are sometimes confounded with 
one another, at least in common language
A gentleman who farms a part of his own 
estate, after paying the expense of cultivation
should gain both the rent of the landlord and 
the profit of the farmer. He is apt to denominate
however, his whole gain, profit, and 
thus confounds rent with profit, at least in 
common language. The greater part of our 
North American and West Indian planters 
are in this situation. They farm, the greater 
part of them, their own estates; and accordingly 
we seldom hear of the rent of a plantation, 
but frequently of its profit
Common farmers seldom employ any overseer 
to direct the general operations of the 
farm. They generally, too, work a good deal 
with their own hands, as ploughmen, harrowers
&c. What remains of the crop, after paying 
the rent, therefore, should not only replace 
to them their stock employed in cultivation
together with its ordinary profits, but 
pay them the wages which are due to them, 
both as labourers and overseers. Whatever 
remains, however, after paying the rent and 
keeping up the stock, is called profit. But 
wages evidently make a part of it. The farmer
by saving these wages, must necessarily 
gain them. Wages, therefore, are in this case 
confounded with profit
An independent manufacturer, who has 
stock enough both to purchase materials, and to 
maintain himself till he can carry his work to 
market, should gain both the wages of a journeyman 
who works under a master, and the 
profit which that master makes by the sale of 
that journeyman's work. His whole gains
however, are commonly called profit, and 
wages are, in this case, too, confounded with 
A gardener who cultivates his own garden 
with his own hands, unites in his own person 
the three different characters, of landlord
farmer, and labourer. His produce, therefore, 
should pay him the rent of the first, the 
profit of the second, and the wages of the 
third. The whole, however, is commonly considered 
as the earnings of his labour. Both 
rent and profit are, in this case, confounded 
with wages
As in a civilized country there are but few 
commodities of which the exchangeable value 
arises from labour only, rent and profit contributing 
largely to that of the far greater 
part of them, so the annual produce of its labour 
will always be sufficient to purchase or 
command a much greater quantity of labour 
than what was employed in raising, preparing
and bringing that produce to market. If the 
society were annually to employ all the labour 
which it can annually purchase, as the quantity 
of labour would increase greatly every 
year, so the produce of every succeeding year