The Wealth of Nations · Chapter
I: Of the Expenses of the Sovereign or Commonwealth explained
This chapter examines the expenses of the sovereign or commonwealth, focusing on the duty of defense and the administration of justice.
What happens
This chapter examines the expenses of the sovereign or commonwealth, focusing on the duty of defense and the administration of justice. Smith contrasts the military organization of hunter-gatherer, shepherd, and more advanced societies, noting how the cost of war varies. He argues that civil government is instituted primarily for the security of property, defending the rich against the poor. The administration of justice, once a source of revenue through fees and amercements, often led to corruption and abuse. Smith also critiques the joint-stock companies, such as the East India Company, for their mismanagement and unjust exercise of sovereign powers in distant territories.
Themes in this chapter
Role of Government
Smith outlines the sovereign's duty to protect society from external violence and to administer justice, arguing that civil government is instituted for the security of property.
Social Class and Inequality
The chapter asserts that civil government defends the rich against the poor, highlighting class divisions in the context of property protection.
Historical Development of Society
Smith compares the military and governmental structures of hunter-gatherer, shepherd, and more advanced societies, illustrating societal evolution.
Characters to notice
- The Tartars
Discussed as a nation of shepherds where every man is a warrior, and the whole nation goes to war together, with women sometimes engaging in battle.
- The Europeans
Referenced in the context of governments founded by German and Scythian nations that overturned the Roman empire, where the administration of justice was a source of revenue.
- The Romans
Mentioned in relation to the fall of the Roman empire and the subsequent barbarous governments of Europe.
- The Servants of the Company
Criticized for wasting and embezzling surplus revenues of the East India Company, contributing to its mismanagement.
- The Proprietors
Described as indifferent stewards and sovereigns of the East India Company, prioritizing their own interests over good governance.
- Great Britain
Implied as the sovereign power that lent money to the East India Company and attempted to regulate its affairs through parliamentary resolutions.
Key passages
“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defence of the rich against the poor, or of those who have some property against those who have none at all.”
Civil government exists to protect property, which means it primarily defends the wealthy from the poor.
This statement encapsulates Smith's view on the class-based nature of government.
“The first duty of the sovereign, that of protecting the society from the violence and invasion of other independent societies, can be performed only by means of a military force.”
The sovereign's primary responsibility is national defense, which requires a military.
Smith introduces the expense of defense as a key duty of the sovereign.
“When the sovereign or chief exercised his judicial authority in his own person, how much soever he might abuse it, it must have been scarce possible to get any redress; because there could seldom be anybody powerful enough to call him to account.”
When a ruler personally judges cases, abuses are nearly impossible to correct because no one can challenge the ruler.
Smith highlights the corruption inherent in unaccountable judicial power.
