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Show The National Enterprise , July 7, 1976 Page Three The Wealth of Nations: An Interview with Adam Smith Not only is 1976 the bicentennial anniversary of the United States of America, but the 200th anniversary since the publication of a book whose revolutionary ideas embodied, for some years, the economic policy of our country. To familiarize its readers with that legacy, REASON magazine this month presented an interview with Dr. Adam Smith, the learned philosopher and author of that first book on modem economics, An Inquiry into the Nature and Causes With permission, the National of the Wealth of Nations." the interview in part. Enterprise reprints ought always to trust people with the care of their own interest, as in their local situations they must generally be able to judge better of it than the legislator can do. REASON: Dr. Smith, anyone with your views is today called a capitalist, wrhich most people identify with being on the side of business. Would you agree with this characteriza- tion? Business doesnt SMITH : need me on its side! The only encouragement industry requires is tolerable security that it shall enjoy the fruits of its own labor. REASON: It is often argued that society as a whole, or most of the people, will benefit by lower prices, safer products, more available services, and so on, and that these can only be achieved by regulation. REASON: But you had some SMITH: Even if that were so, harsh words for business. SMITH: What I objected to the sneaking arts of underling tradesmen being erected into political maxims. I warned people that the interest of those who live by profit is always in some respects different from and even opposite to that of the public. So that 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. w-a- REASON: such regulations evidently sacrifice the ordinary law-- of justice to an idea of public utility, to a sort of reasons of s state, an act of legislative authority which ought to be exercised only, which can be pardoned only,, in cases of the most urgent necessity. The persons entrusted with the great interests of the state may, even without any corrupt views, sometimes imagine it necessary to sacrifice to those interests the rights of a private man. But upon the impartial administration of justice depends the liberty of every they are secure of enjoying the SMITH: The uniform, con fruits of their industry, thev stant, and uninterrupted effort naturally exert it to better of every man to better his their condition and to acquire condition, the principle from not only the necessities but which public and national, as the conveniences and elewell as private, opulence is of life. gancies originally derived, is frequently powerful enough to REASON: What do you mean maintain the natural progress of things toward improveby ment, in spite both of the A society where SMITH: extravagance of government follow left are to their and of the greatest errors of things natural course, where there is administration. Like the unperfect liberty. All systems known principle of animal life, either of preference or of it frequently restores health restraint being completely-take- and vigor to the constitution in away, the obvious and spite, not only of the disease, but of the absurd prescriptions simple system of natural lib establishes itself of its of the doctor. erty own accord. Every man, as long as he does not violate the REASON: What do you think laws of justice, is left perfectly of the present state of free to pursue his own interest England? his own way and to bring both his industry- and capital into SMITH: Great Britain re competition with those of any sembles one of those unother man, or order of men. wholesome bodies in which some of the vital parts are REASON: Woudnt history overgrown and which, upon suggest that its too simple that account, are liable to and obvious a system? many dangerous disorders scarce incident to those in SMITH: Men are fond of which all the parts are more and of appearing to properly proportioned. A paradoxes understand in small blood that great surpasses stop the comprehension of ordinary vessel which has been artificpeople. ially swelled beyond its natural dimensions is very likely REASON: In any case, no to bring on the most dangersocieties even come close to ous disorders upon the whole that today. How would you body politic. explain the extent of economic What is your progress that is still evident, REASON: at least in the freer countries? reaction to recent suggestions well-governe- d? n - w-h- over the pretend to economy of private people and to restrain their expenses. They are themselves always and without any exception the greatest spendthrifts in the society. Let them look well after their own expense and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subject never will. h REASON: Perhaps your most famous idea, even though it occurs only once in your book, is that of the invisible hand. Could you explain the cpntext in which you used the expression? SMITH: Yes, I was objecting to the idea that regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can divert a part of it into a direction into which it might not otherwise have gone, but it is by no means certain that this artificial direction is likely to be So I more advantageous. pointed out that, for various reasons, upon equal or nearly equal profits, every wholesale merchant naturally prefers the Continued on page ten HOW TO MAKE A FORTUNE FROM THE COMING GOLD ROOM INVESTING IN LITTLE KNOWN U.S. BOND MINE STOCKS REASON: You spoke often in your book of the necessity of a society for economic progress. Why? Many regulations of business are now advocated by consumer groups. Would you be opposed to these also? SMITH: Men in a defenseless state naturally content themYes. SMITH: They are selves with their necessary evident violations of natural subsistence, because to acliberty, and therefore unjust. quire more might only tempt And they are as impolitic as the injustice of their oppresThe law- sors. On the contrary, when they are unjust. ed it will in price on average 150 times . Why happen to penny golds! Learn 1 5 specific reasons why you should consider penny gold stocks. Which ones to select, when to buy, how to buy, how to diversify, how to invest, when to sell, how to sell. Some suggestions will surprise you! Fifty-fou- r Fillingham Named Director of Patton Oil penny golds listed and discussed. Ten chapters, 177 pages, 4 appendix, 8'2 x 1 lsize. Acclaimed by national and international gold experts and financial editors. Robert A. positions with Dynastor, Inc., Fillingham has been named to an electronics firm based in the Board of Directors of Denver, Colorado, General Patton Oil Co. according to Dynamics Corporation of Harold W. Patton, Jr., presi- Rochester, New York, and dent of the Denver, Colorado-base- d Medco Associates of Meloil and gas concern. bourne, Florida. Since joining Patton Oil Patton Oil Co. was incorCo. in late 1974, Fillingham porated in 1970. Since the in incorporation, revenues have has served as charge of new project dev- increased from $212,700 to elopment. During 1975 under over $1,000,000. Earnings for Fillingham's direction, Patton the firm totaled $197,454 or 29 raised $650,000 in exploratory cents per share in fiscal 1975. and development funds as Rcently released nine months compared to $300,000 in 1974. figures showed Pattons earnPresently, the company is ings had climbed to $310,838, raising $800,000 for its 1976 or 46 cents per share on revenues of $1,071,437. The drilling program. Prior to joining Patton Oil nine months period ended Co., Fillingham served in December 31, 1975. various marketing managerial 60 to "68 penny silver stocks increased From - DENVER It is the highest impertinence and presumption in kings and ministers to SMITH: GOLD PROFITS individual. well-govern- that the cure of inflation is for citizens to tighten their belts? author, Norman A. 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