of this class was exactly equal to that of its 
daily, monthly, and yearly production; yet 
it would not from thence follow, that its labour 
added nothing to the real revenue, to 
the real value of the annual produce of the 
land and labour of the society. An artificer
for example, who, in the first six months after 
harvest, executes ten pounds worth of work
though he should, in the same time, consume 
ten pounds worth of corn and other necessaries
yet really adds the value of ten pounds 
to the annual produce of the land and labour 
of the society. While he has been consuming 
a half-yearly revenue of ten pounds worth 
of corn and other necessaries, he has produced 
an equal value of work, capable of purchasing
either to himself, or to some other 
person, an equal half-yearly revenue. The 
value, therefore, of what has been consumed 
and produced during these six months, is 
equal, not to ten, but to twenty pounds. It 
is possible, indeed, that no more than ten 
pounds worth of this value may ever have existed 
at any one moment of time. But if the 
ten pounds worth of corn and other necessaries 
which were consumed by the artificer, had 
been consumed by a soldier, or by a menial 
servant, the value of that part of the annual 
produce which existed at the end of the six 
months, would have been ten pounds less than 
it actually is in consequence of the labour of 
the artificer. Though the value of what the 
artificer produces, therefore, should not, at 
any one moment of time, be supposed greater 
than the value he consumes, yet, at every moment 
of time, the actually existing value of 
goods in the market is, in consequence of 
what he produces, greater than it otherwise 
would be. 
When the patrons of this system assert, that 
the consumption of artificers, manufacturers
and merchants, is equal to the value of what 
they produce, they probably mean no more 
than that their revenue, or the fund destined 
for their consumption, is equal to it. But if 
they had expressed themselves more accurately
and only asserted, that the revenue of 
this class was equal to the value of what they 
produced, it might readily have occurred to 
the reader, that what would naturally be saved 
out of this revenue, must necessarily increase 
more or less the real wealth of the society
In order, therefore, to make out something 
like an argument, it was necessary that they 
should express themselves as they have done; 
and this argument, even supposing things 
actually were as it seems to presume them to 
be, turns out to be a very inconclusive one. 
Fourthly, farmers and country labourers 
can no more augment, without parsimony
the real revenue, the annual produce of the 
land and labour of their society, than artificers, 
manufacturers, and merchants. The 
annual produce of the land and labour of any 
society can be augmented only in two ways; 
either, first, by some improvement in the 
productive powers of the useful labour actually 
maintained within it; or, secondly, by some 
increase in the quantity of that labour
The improvement in the productive powers 
of useful labour depends, first, upon the improvement 
in the ability of the workman; 
and, secondly, upon that of the machinery 
with which he works. But the labour of artificers 
and manufacturers, as it is capable of 
being more subdivided, and the labour of each 
workman reduced to a greater simplicity of 
operation, than that of farmers and country 
labourers; so it is likewise capable of both 
these sorts of improvement in a much higher 
degree.[43] In this respect, therefore, the class 
of cultivators can have no sort of advantage 
over that of artificers and manufacturers
The increase in the quantity of useful labour 
actually employed within any society 
must depend altogether upon the increase of 
the capital which employs it; and the increase 
of that capital, again, must be exactly equal 
to the amount of the savings from the revenue
either of the particular persons who 
manage and direct the employment of that 
capital, or of some other persons, who lend it 
to them. If merchants, artificers, and manufacturers 
are, as this system seems to suppose
naturally more inclined to parsimony and 
saving than proprietors and cultivators
they are, so far, more likely to augment the 
quantity of useful labour employed within 
their society, and consequently to increase its 
real revenue, the annual produce of its land 
and labour
Fifthly and lastly, though the revenue of 
the inhabitants of every country was supposed 
to consist altogether, as this system seems to 
suppose, in the quantity of subsistence which 
their industry could procure to them; yet, 
even upon this supposition, the revenue of a 
trading and manufacturing country must, 
other things being equal, always be much 
greater than that of one without trade or manufactures. 
By means of trade and manufactures, 
a greater quantity of subsistence can 
be annually imported into a particular country
than what its own lands, in the actual state 
of their cultivation, could afford. The inhabitants 
of a town, though they frequently 
possess no lands of their own, yet draw to 
themselves, by their industry, such a quantity 
of the rude produce of the lands of other 
people, as supplies them, not only with the 
materials of their work, but with the fund of 
their subsistence. What a town always is 
with regard to the country in its neighbourhood
one independent state or country may 
frequently be with regard to other independent 
states or countries. It is thus that Holland 
draws a great part of its subsistence 
from other countries; live cattle from Holstein