Project Gutenberg #3300
The Wealth of Nations
Adam Smith
1776Smith's political economy classic, prepared chapter by chapter from Project Gutenberg HTML for vocabulary-focused reading.
Project Gutenberg #3300 Public domain in the United States Cover source Local typographic cover created for MojiMori from public-domain source metadata
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AI Summary
Book IV, Chapter VII: Of Colonies Central question What is the economic case for colonies? Main argument Smith explains colonies through the mercantile desire for monopoly, but he also shows the immense fiscal and...
to buy and expect to sell with such a profit as pleases them.
From the nature of their situation, too, the servants must be more disposed to support with rigourous severity their own interest, against that of the country which they govern, than their masters can be to support theirs. The country belongs to their masters, who cannot avoid having some regard for the interest of what belongs to them; but it does not belong to the servants. The real interest of their masters, if they were capable of understanding it, is the same with that of the country; {The interest of every proprietor of India stock, however, is by no means the same with that of the country in the government of which his vote gives him some influence.—See book v, chap. 1, part ii.}and it is from ignorance chiefly, and the meanness of mercantile prejudice, that they ever oppress it. But the real interest of the servants is by no means the same with that of the country, and the most perfect information would not necessarily put an end to their oppressions. The regulations, accordingly, which have been sent out from Europe, though they have been frequently weak, have upon most occasions been well meaning. More intelligence, and perhaps less good meaning, has sometimes appeared in those established by the servants in India. It is a very singular government in which every member of the administration wishes to get out of the country, and consequently to have done with the government, as soon as he can, and to whose interest, the day after he has left it, and carried his whole fortune with him, it is perfectly indifferent though the whole country was swallowed up by an earthquake.
I mean not, however, by any thing which I have here said, to throw any odious imputation upon the general character of the servants of the East India company, and touch less upon that of any particular persons. It is the system of government, the situation in which they are placed, that I mean to censure, not the character of those who have acted in it. They acted as their situation naturally directed, and they who have clamoured the loudest against them would probably not have acted better themselves. In war and negotiation, the councils of Madras and Calcutta, have upon several occasions, conducted themselves with a resolution and decisive wisdom, which would have done honour to the senate of Rome in the best days of that republic. The members of those councils, however, had been bred to professions very different from war and politics. But their situation alone, without education, experience, or even example, seems to have formed in them all at once the great qualities which it required, and to have inspired them both with abilities and virtues which they themselves could not well know that they possessed. If upon some occasions, therefore, it has animated them to actions of magnanimity which could not well have been expected from them, we should not wonder if, upon others, it has prompted them to exploits of somewhat a different nature.
Such exclusive companies, therefore, are nuisances in every respect; always more or less inconvenient to the countries in which they are established, and destructive to those which have the misfortune to fall under their government.