# First Period explained — The Wealth of Nations

> Chapter companion for The Wealth of Nations by Adam Smith.

## What happens

This chapter examines the value of silver across different historical periods, using corn as a more stable measure of value than other commodities. It discusses the prices of wheat in England from the 14th to the 16th centuries, referencing statutes and historical records to argue that the real value of silver is best measured by the labor it can command, not by its quantity. The chapter also critiques the notion that increased silver abundance necessarily diminishes its value, distinguishing between increases from new mines and those from national wealth.

## Themes in this chapter

### Labor Theory of Value

Emphasizes that labor, not any commodity, is the real measure of value, using corn as a proxy for labor across different stages of society.

### Wealth and Money

Discusses how the value of silver is influenced by its quantity and national wealth, distinguishing between increases from mines and from economic growth.

### Historical Development of Society

Traces changes in the value of silver and corn from the 14th to 16th centuries, linking them to stages of economic improvement and societal development.

## Character check-ins

### Bishop Fleetwood

Cited as one of the two authors who diligently collected ancient prices of things, particularly corn.

### Mr. Duprè de St. Maur

Mentioned alongside Bishop Fleetwood for collecting ancient prices, with their facts coinciding on corn prices despite differing opinions.

### Don Antoine de Ulloa

Quoted for the price of an ox at Buenos Aires, illustrating the low value of cattle in uncultivated regions.

### Edward I and III

Referenced in the context of the Statute of Labourers (25th Edward III) and the Assize of Bread and Ale (51st Henry III), used to estimate historical wheat prices.

### Henry III

Mentioned in relation to the revival of the Assize of Bread and Ale in 1262, which regulated bread prices based on wheat prices.

## Key lines

> Labour, it must always be remembered, and not any particular commodity or set of commodities, is the real measure of the value both of silver and of all other commodities.

The true measure of value is labor, not any specific good or group of goods, for silver or anything else.

_Reinforces the labor theory of value as central to understanding silver's worth._

> Corn, accordingly, it has already been observed, is, in all the different stages of wealth and improvement, a more accurate measure of value than any other commodity or set of commodities.

Corn serves as a more reliable gauge of value across various economic stages than any other commodity.

_Highlights corn's stability as a measure due to its consistent relation to labor._

> The quantity of the precious metals may increase in any country from two different causes: either, first, from the increased abundance of the mines which supply it; or, secondly, from the increased wealth of the people, from the increased produce of their annual labour.

Precious metals can increase either from richer mines or from greater national wealth and annual labor output.

_Distinguishes between causes of silver increase, with only the first necessarily reducing its value._

## Links

- HTML: https://www.betterreads.online/discover/the_wealth_of_nations_se/chapters/first-period
- Book: https://www.betterreads.online/discover/the_wealth_of_nations_se
- All chapters: https://www.betterreads.online/discover/the_wealth_of_nations_se/chapters