30 ECONOMICS 



must be proportioned to effort, and vice versa; and thus the quantita- 

 tive equivalence between work and pay is neatly established. Man 

 bestirs himself to secure a gain with no intention of assisting the 

 productive processes of nature. But, for all that, the bargains that 

 he drives betray him into an alliance with nature, and therewith is he 

 led by the "invisible hand" to do his part in production and the 

 service of society. The resulting shares in distribution are " natural." 

 But, here again, it must not be supposed that the natural and the 

 actual correspond in Adam Smith, least of all in that state of 

 actual society which follows "the appropriation of land and the 

 accumulation of stock." Nevertheless, the distribution in question 

 is "natural," because it falls in with the author's preconception of the 

 orderly course of industry. 



If it be asked whether the term "natural," as employed by Adam 

 Smith, implies the same unmitigated approval as with the Physio- 

 crats, the answer must be " No." In general, the " natural " 

 means "what ought to be," or "what is intended by a benevolent 

 Providence." But some telling passages might be quoted to show 

 that Adam Smith's enthusiasm for the "natural" is considerably 

 tempered by his noting the action of other plain, homely, matter- 

 of-fact causes, even under the "system of natural liberty." The 

 case of the landlord is one. His "rent costs him neither labor 

 nor care." So, again, "the interest of the dealers in a particular 

 branch of trade or manufactures is always in some respect different 

 from and even opposite to that of the public." The persistence of 

 these and similar cases were troublesome items in Adam Smith's 

 system. They must have offended his nice metaphysical sense of 

 fitness. But it is greatly to his credit that he did not attempt to 

 ignore them, and was willing to sacrifice symmetry to truth. That 

 would have offended his dispassionate practical judgment still more. 

 He is willing to let these blemishes stand as exceptions to the bene- 

 ficent trend of things. And in this respect he is better than some 

 of his followers. 



But yet, looking backwards, the metaphysical animus in Smith 

 is strong. The notion of a natural economic order guided his think- 

 ing as it had done the Physiocrats'. But his natural order was the 

 result of the free and spontaneous action of individual interest, 

 acting, of course, under the constraint of Providence. This idea 

 of efficient self-interest was his specific innovation, and his legacy 

 to his followers. They seized upon it, and, informing and strengthen- 

 ing it with a new philosophy of the human mind, made it the basis 

 of the classical system. 



With the turning of the century, the constitution of economics 

 experiences a substantial change, adding to its premises and shifting 



