In that rude state of society, in which there 
is no division of labour, in which exchanges 
are seldom made, and in which every man 
provides every thing for himself, it is not necessary 
that any stock should be accumulated, 
or stored up before-hand, in order to carry on 
the business of the society. Every man endeavours 
to supply, by his own industry, his 
own occasional wants, as they occur. When 
he is hungry, he goes to the forest to hunt
when his coat is worn out, he clothes himself 
with the skin of the first large animal he 
kills; and when his hut begins to go to ruin, 
he repairs it, as well as he can, with the trees 
and the turf that are nearest it. 
But when the division of labour has once 
been thoroughly introduced, the produce of a 
man's own labour can supply but a very small 
part of his occasional wants. The far greater 
part of them are supplied by the produce of 
other men's labour, which he purchases with 
the produce, or, what is the same thing, with 
the price of the produce, of his own. But 
this purchase cannot be made till such time 
as the produce of his own labour has not only 
been completed, but sold. A stock of goods 
of different kinds, therefore, must be stored 
up somewhere, sufficient to maintain him, and 
to supply him with the materials and tools of 
his work, till such time at least as both these 
events can be brought about. A weaver cannot 
apply himself entirely to his peculiar business
unless there is before-hand stored up 
somewhere, either in his own possession, or 
in that of some other person, a stock sufficient 
to maintain him, and to supply him with the 
materials and tools of his work, till he has not 
only completed, but sold his web. This accumulation 
must evidently be previous to his 
applying his industry for so long a time to 
such a peculiar business
As the accumulation of stock must, in the 
nature of things, be previous to the division 
of labour, so labour can be more and more 
subdivided in proportion only as stock is previously 
more and more accumulated. The 
quantity of materials which the same number 
of people can work up, increases in a great 
proportion as labour comes to be more and 
more subdivided; and as the operations of 
each workman are gradually reduced to a 
greater degree of simplicity, a variety of new 
machines come to be invented for facilitating 
and abridging these operations. As the division 
of labour advances, therefore, in order 
to give constant employment to an equal number 
of workman, an equal stock of provisions
and a greater stock of materials and tools 
than what would have been necessary in a 
ruder state of things, must be accumulated 
before-hand. But the number of workmen in 
every branch of business generally increases 
with the division of labour in that branch; or 
rather it is the increase of their number which 
enables them to class and subdivide themselves 
in this manner
As the accumulation of stock is previously 
necessary for carrying on this great improvement 
in the productive powers of labour, so 
that accumulation naturally leads to this improvement
The person who employs his stock 
in maintaining labour, necessarily wishes to 
employ it in such a manner as to produce as 
great a quantity of work as possible. He endeavours
therefore, both to make among his 
workmen the most proper distribution of employment
and to furnish them with the best 
machines which he can either invent or afford 
to purchase. His abilities, in both these respects, 
are generally in proportion to the extent 
of his stock, or to the number of people 
whom it can employ. The quantity of industry
therefore, not only increases in every 
country with the increase of the stock which 
employs it, but, in consequence of that increase, 
the same quantity of industry produces 
a much greater quantity of work
Such are in general the effects of the increase 
of stock upon industry and its productive