Key Arguments

• Smith notes that 'His employers constitute the third order, that of those who live by profit. It is the stock that is employed for the sake of profit, which puts into motion the greater part of the useful labour of every society.'
• However, 'the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin.'
• From this he infers: 'The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two.'
• Within this order, 'Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration.'
• Because 'during their whole lives they are engaged in plans and projects, they have frequently more acuteness of understanding than the greater part of country gentlemen,' and 'have a better knowledge of their own interest than he has of his.'
• Smith judges that their 'judgment, even when given with the greatest candour (which it has not been upon every occasion), is much more to be depended upon with regard to the former of those two objects, than with regard to the latter,' i.e. their own branch of business rather than the public interest.
• He states that 'It is by this superior knowledge of their own interest that they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction, that their interest, and not his, was the interest of the public.'
• More generally, 'The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public.'
• He characterizes their constant aim: 'To widen the market, and to narrow the competition, is always the interest of the dealers.' While 'To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it,' serving only 'to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens.'
• Therefore, 'The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution,' and 'ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention.'
• He concludes that this order 'comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.'

Source Quotes

In the public deliberations, therefore, his voice is little heard, and less regarded; except upon particular occasions, when his clamour is animated, set on, and supported by his employers, not for his, but their own particular purposes. His employers constitute the third order, that of those who live by profit. It is the stock that is employed for the sake of profit, which puts into motion the greater part of the useful labour of every society.

The plans and projects of the employers of stock regulate and direct all the most important operation of labour, and profit is the end proposed by all those plans and projects. But the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin. The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two.

On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin. The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two. Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration.

The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two. Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration. As during their whole lives they are engaged in plans and projects, they have frequently more acuteness of understanding than the greater part of country gentlemen.

As during their whole lives they are engaged in plans and projects, they have frequently more acuteness of understanding than the greater part of country gentlemen. As their thoughts, however, are commonly exercised rather about the interest of their own particular branch of business. than about that of the society, their judgment, even when given with the greatest candour (which it has not been upon every occasion), is much more to be depended upon with regard to the former of those two objects, than with regard to the latter. Their superiority over the country gentleman is, not so much in their knowledge of the public interest, as in their having a better knowledge of their own interest than he has of his.

Their superiority over the country gentleman is, not so much in their knowledge of the public interest, as in their having a better knowledge of their own interest than he has of his. It is by this superior knowledge of their own interest that they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction, that their interest, and not his, was the interest of the public. The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public.

It is by this superior knowledge of their own interest that they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction, that their interest, and not his, was the interest of the public. The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public. To widen the market, and to narrow the competition, is always the interest of the dealers.

The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public. To widen the market, and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can only serve to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens.

To widen the market, and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can only serve to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens. The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention.

To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can only serve to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens. The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it. # PRICES OF WHEAT Year Prices/Quarter Average of different Average prices of in each year prices in one year each year in money of 1776 £ s d £ s d £ s d 1202 0 12 0 1 16 0 1205 0 12 0 0 13 4 0 13 5 2 0 3 0 15 0 1223 0 12 0 1 16 0 1237 0 3 4 0 10 0 1243 0 2 0 0 6 0 1244 0 2 0 0 6 0 1246 0 16 0 2 8 0 1247 0 13 5 2 0 0 1257 1 4 0 3 12 0 1258 1 0 0 0 15 0 0 17 0 2 11 0 0 16 0 1270 4 16 0 6 8 0 5 12 0 16 16 0 1286 0 2 8 0 16 0 0 9 4 1 8 0 Total 35 9 3 Average 2 19 1¼ 1287 0 3 4 0 10 0 1288 0 0 8 0 1 0 0 1 4 0 1 6 0 1 8 0 3 0¼ 0 9 1¾ 0 2 0 0 3 4 0 9 4 1289 0 12 0 0 6 0 0 2 0 0 10 1½ 1 10 4½ 0 10 8 1 0 0 1290 0 16 0 2 8 0 1294 0 16 0 2 8 0 1302 0 4 0 0 12 0 1309 0 7 2 1 1 6 1315 1 0 0 3 0 0 1316 1 0 0 1 10 0 1 10 6 4 11 6 1 12 0 2 0 0 1317 2 4 0 0 14 0 2 13 0 1 19 6 5 18 6 4 0 0 0 6 8 1336 0 2 0 0 6 0 1338 0 3 4 0 10 0 Total 23 4 11¼ Average 1 18 8 1339 0 9 0 1 7 0 1349 0 2 0 0 5 2 1359 1 6 8 3 2 2 1361 0 2 0 0 4 8 1363 0 15 0 1 15 0 1369 1 0 0 1 4 0 1 2 0 2 9 4 1379 0 4 0 0 9 4 1387 0 2 0 0 4 8 1390 0 13 4 0 14 0 0 14 5 1 13 7 0 16 0 1401 0 16 0 1 17 6 1407 0 4 4¾ 0 3 4 0 3 10 0 8 10 1416 0 16 0 1 12 0 Total 15 9 4 Average 1 5 9½ 1423 0 8 0 0 1425 0 4 0 0 1434 1 6 8 4 1435 0 5 4 8 1439 1 0 0 1 6 8 1 3 4 2 6 8 1440 1 4 0 2 8 0 1444 0 4 4 0 4 2 0 4 8 0 4 0 1445 0 4 6 0 9 0 1447 0 8 0 0 16 0 1448 0 6 8 0 13 4 1449 0 5 0 0 10 0 1451 0 8 0 0 16 0 Total 12 15 4 Average 1 1 3¹/³ 1453 0 5 4 0 10 8 1455 0 1 2 0 2 4 1457 0 7 8 1 15 4 1459 0 5 0 0 10 0 1460 0 8 0 0 16 0 1463 0 2 0 0 1 10 0 3 8 0 1 8 1464 0 6 8 0 10 0 1486 1 4 0 1 17 0 1491 0 14 8 1 2 0 1494 0 4 0 0 6 0 1495 0 3 4 0 5 0 1497 1 0 0 1 11 0 Total 8 9 0 Average 0 14 1 1499 0 4 0 0 6 0 1504 0 5 8 0 8 6 1521 1 0 0 1 10 0 1551 0 8 0 0 8 0 1553 0 8 0 0 8 0 1554 0 8 0 0 8 0 1555 0 8 0 0 8 0 1556 0 8 0 0 8 0 1557 0 8 0 0 4 0 0 17 8½ 0 17 8½ 0 5 0 2 13 4 1558 0 8 0 0 8 0 1559 0 8 0 0 8 0 1560 0 8 0 0 8 0 Total 6 0 2½ Average 0 10 0½ 1561 0 8 0 0 8 0 1562 0 8 0 0 8 0 1574 2 16 0 1 4 0 2 0 0 2 0 0 1587 3 4 0 3 4 0 1594 2 16 0 2 16 0 1595 2 13 0 2 13 0 1596 4 0 0 4 0 0 1597 5 4 0 4 0 0 4 12 0 4 12 0 1598 2 16 8 2 16 8 1599 1 19 2 1 19 8 1600 1 17 8 1 17 8 1601 1 14 10 1 14 10 Total 28 9 4 Average 2 7 5½ PRICES OF THE QUARTER OF NINE BUSHELS OF THE BEST OR HIGHEST PRICED WHEAT AT WINDSOR MARKET, ON LADY DAY AND MICHAELMAS, FROM 1595 TO 1764 BOTH INCLUSIVE; THE PRICE OF EACH YEAR BEING THE MEDIUM BETWEEN THE HIGHEST PRICES OF THESE TWO MARKET DAYS. £ s d 1595 2 0 0 1596 2 8 0 1597 3 9 6 1598 2 16 8 1599 1 19 2 1600 1 17 8 1601 1 14 10 1602 1 9 4 1603 1 15 4 1604 1 10 8 1605 1 15 10 1606 1 13 0 1607 1 16 8 1608 2 16 8 1609

The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it. # PRICES OF WHEAT Year Prices/Quarter Average of different Average prices of in each year prices in one year each year in money of 1776 £ s d £ s d £ s d 1202 0 12 0 1 16 0 1205 0 12 0 0 13 4 0 13 5 2 0 3 0 15 0 1223 0 12 0 1 16 0 1237 0 3 4 0 10 0 1243 0 2 0 0 6 0 1244 0 2 0 0 6 0 1246 0 16 0 2 8 0 1247 0 13 5 2 0 0 1257 1 4 0 3 12 0 1258 1 0 0 0 15 0 0 17 0 2 11 0 0 16 0 1270 4 16 0 6 8 0 5 12 0 16 16 0 1286 0 2 8 0 16 0 0 9 4 1 8 0 Total 35 9 3 Average 2 19 1¼ 1287 0 3 4 0 10 0 1288 0 0 8 0 1 0 0 1 4 0 1 6 0 1 8 0 3 0¼ 0 9 1¾ 0 2 0 0 3 4 0 9 4 1289 0 12 0 0 6 0 0 2 0 0 10 1½ 1 10 4½ 0 10 8 1 0 0 1290 0 16 0 2 8 0 1294 0 16 0 2 8 0 1302 0 4 0 0 12 0 1309 0 7 2 1 1 6 1315 1 0 0 3 0 0 1316 1 0 0 1 10 0 1 10 6 4 11 6 1 12 0 2 0 0 1317 2 4 0 0 14 0 2 13 0 1 19 6 5 18 6 4 0 0 0 6 8 1336 0 2 0 0 6 0 1338 0 3 4 0 10 0 Total 23 4 11¼ Average 1 18 8 1339 0 9 0 1 7 0 1349 0 2 0 0 5 2 1359 1 6 8 3 2 2 1361 0 2 0 0 4 8 1363 0 15 0 1 15 0 1369 1 0 0 1 4 0 1 2 0 2 9 4 1379 0 4 0 0 9 4 1387 0 2 0 0 4 8 1390 0 13 4 0 14 0 0 14 5 1 13 7 0 16 0 1401 0 16 0 1 17 6 1407 0 4 4¾ 0 3 4 0 3 10 0 8 10 1416 0 16 0 1 12 0 Total 15 9 4 Average 1 5 9½ 1423 0 8 0 0 1425 0 4 0 0 1434 1 6 8 4 1435 0 5 4 8 1439 1 0 0 1 6 8 1 3 4 2 6 8 1440 1 4 0 2 8 0 1444 0 4 4 0 4 2 0 4 8 0 4 0 1445 0 4 6 0 9 0 1447 0 8 0 0 16 0 1448 0 6 8 0 13 4 1449 0 5 0 0 10 0 1451 0 8 0 0 16 0 Total 12 15 4 Average 1 1 3¹/³ 1453 0 5 4 0 10 8 1455 0 1 2 0 2 4 1457 0 7 8 1 15 4 1459 0 5 0 0 10 0 1460 0 8 0 0 16 0 1463 0 2 0 0 1 10 0 3 8 0 1 8 1464 0 6 8 0 10 0 1486 1 4 0 1 17 0 1491 0 14 8 1 2 0 1494 0 4 0 0 6 0 1495 0 3 4 0 5 0 1497 1 0 0 1 11 0 Total 8 9 0 Average 0 14 1 1499 0 4 0 0 6 0 1504 0 5 8 0 8 6 1521 1 0 0 1 10 0 1551 0 8 0 0 8 0 1553 0 8 0 0 8 0 1554 0 8 0 0 8 0 1555 0 8 0 0 8 0 1556 0 8 0 0 8 0 1557 0 8 0 0 4 0 0 17 8½ 0 17 8½ 0 5 0 2 13 4 1558 0 8 0 0 8 0 1559 0 8 0 0 8 0 1560 0 8 0 0 8 0 Total 6 0 2½ Average 0 10 0½ 1561 0 8 0 0 8 0 1562 0 8 0 0 8 0 1574 2 16 0 1 4 0 2 0 0 2 0 0 1587 3 4 0 3 4 0 1594 2 16 0 2 16 0 1595 2 13 0 2 13 0 1596 4 0 0 4 0 0 1597 5 4 0 4 0 0 4 12 0 4 12 0 1598 2 16 8 2 16 8 1599 1 19 2 1 19 8 1600 1 17 8 1 17 8 1601 1 14 10 1 14 10 Total 28 9 4 Average 2 7 5½ PRICES OF THE QUARTER OF NINE BUSHELS OF THE BEST OR HIGHEST PRICED WHEAT AT WINDSOR MARKET, ON LADY DAY AND MICHAELMAS, FROM 1595 TO 1764 BOTH INCLUSIVE; THE PRICE OF EACH YEAR BEING THE MEDIUM BETWEEN THE HIGHEST PRICES OF THESE TWO MARKET DAYS. £ s d 1595 2 0 0 1596 2 8 0 1597 3 9 6 1598 2 16 8 1599 1 19 2 1600 1 17 8 1601 1 14 10 1602 1 9 4 1603 1 15 4 1604 1 10 8 1605 1 15 10 1606 1 13 0 1607 1 16 8 1608 2 16 8 1609

Key Concepts

• His employers constitute the third order, that of those who live by profit.
• the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin.
• The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two.
• Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration.
• their judgment, even when given with the greatest candour (which it has not been upon every occasion), is much more to be depended upon with regard to the former of those two objects, than with regard to the latter.
• they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction, that their interest, and not his, was the interest of the public.
• The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public.
• To widen the market, and to narrow the competition, is always the interest of the dealers.
• to narrow the competition must always be against it, and can only serve to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens.
• The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention.
• an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.

Context

Final section of the conclusion, where Smith evaluates the third order (those who live by profit), especially merchants and master manufacturers, and articulates his famous warning about the structural opposition between dealers’ interest—seeking wider markets and reduced competition—and the public interest, and the consequent need to scrutinize their legislative proposals with suspicion.