but is just as likely to lose one by two 
or three unsuccessful ones. This trade can 
be carried on nowhere but in great towns. It 
is only in places of the most extensive commerce 
and correspondence that the intelligence 
requisite for it can he had. 
The five circumstances above mentioned
though they occasion considerable inequalities 
in the wages of labour and profits of stock
occasion none in the whole of the advantages 
and disadvantages, real or imaginary, of the 
different employments of either. The nature 
of those circumstances is such, that they make 
up for a small pecuniary gain in some, and 
counterbalance a great one in others. 
In order, however, that this equality may 
take place in the whole of their advantages or 
disadvantages, three things are requisite, even 
where there is the most perfect freedom
First, the employments must be well known 
and long established in the neighbourhood
secondly, they must be in their ordinary, or 
what may be called their natural state; and, 
thirdly, they must be the sole or principal employments 
of those who occupy them. 
First, This equality can lake place only in 
those employments which are well known, 
and have been long established in the neighbourhood
Where all other circumstances are equal
wages are generally higher in new than in old 
trades. When a projector attempts to establish 
a new manufacture, he must at first entice 
his workmen from other employments, by 
higher wages than they can either earn in their 
own trades, or than the nature of his work 
would otherwise require; and a considerable 
time must pass away before he can venture to 
reduce them to the common level. Manufactures 
for which the demand arises altogether 
from fashion and fancy, are continually changing, 
and seldom last long enough to be considered 
as old established manufactures. Those, 
on the contrary, for which the demand arises 
chiefly from use or necessity, are less liable to 
change, and the same form of fabric may continue 
in demand for whole centuries together. 
The wages of labour, therefore, are likely to 
be higher in manufactures of the former, than 
in those of the latter kind. Birmingham 
deals chiefly in manufactures of the former 
kind; Sheffield in those of the latter; and the 
wages of labour in those two different places 
are said to be suitable to this difference in the 
nature of their manufactures
The establishment of any new manufacture
of any new branch of commerce, or of any 
new practice in agriculture, is always a speculation 
from which the projector promises himself 
extraordinary profits. These profits sometimes 
are very great, and sometimes, more 
frequently, perhaps, they are quite otherwise; 
but, in general, they bear no regular proportion 
to those of other old trades in the neighbourhood
If the project succeeds, they are 
commonly at first very high. When the trade 
or practice becomes thoroughly established 
and well known, the competition reduces 
them to the level of other trades
Secondly, this equality in the whole of the 
advantages and disadvantages of the different 
employments of labour and stock, can take 
place only in the ordinary, or what may be 
called the natural state of those employments
The demand for almost every different 
species of labour is sometimes greater, and 
sometimes less than usual. In the one case
the advantages of the employment rise above, 
in the other they fall below the common level
The demand for country labour is greater at 
hay-time and harvest than during the greater 
part of the year; and wages rise with the demand
In time of war, when forty or fifty 
thousand sailors are forced from the merchant 
service into that of the king, the demand for 
sailors to merchant ships necessarily rises with 
their scarcity; and their wages, upon such 
occasions, commonly rise from a guinea and 
seven-and-twenty shillings to forty shillings 
and three pounds a-month. In a decaying 
manufacture, on the contrary, many workmen
rather than quit their own trade, are 
contented with smaller wages than would 
be suitable to the nature of their 
The profits of stock vary with the price of 
the commodities in which it is employed. As 
the price of any commodity rises above the 
ordinary or average rate, the profits of at 
least some part of the stock that is employed 
in bringing it to market, rise above their proper 
level, and as it falls they sink below it. 
All commodities are more or less liable to variations 
of price, but some are much more so 
than others. In all commodities which are 
produced by human industry, the quantity of 
industry annually employed is necessarily regulated 
by the annual demand, in such a manner 
that the average annual produce may, as 
nearly as possible, be equal to the average annual 
consumption. In some employments, it 
has already been observed, the same quantity 
of industry will always produce the same, or 
very nearly the same quantity of commodities
In the linen or woollen manufactures, for example, 
the same number of hands will annually 
work up very nearly the same quantity 
of linen and woollen cloth. The variations 
in the market price of such commodities
therefore, can arise only from some accidental 
variation in the demand. A public mourning 
raises the price of black cloth. But as the 
demand for most sorts of plain linen and 
woollen cloth is pretty uniform, so is likewise 
the price. But there are other employments 
in which the same quantity of industry will 
not always produce the same quantity of commodities
The same quantity of industry, for 
example, will, in different years, produce very 
different quantities of corn, wine, hops, sugar,