The Nations in Wealth of Nations

Adam Smith’s seminal work, An Inquiry into the Nature and Causes of the Wealth of Nations (WN), is rich with tangible examples drawn from both contemporary and historical economic, political, and military contexts. His observations span various nations, providing a lens through which to interpret the complexities of his time.

However, Smith’s focus was not uniformly distributed across all countries. The chart below illustrates the frequency of mentions of European nations within WN. Some nations receive frequent attention, while others are scarcely noted, revealing a curious disconnect between mention frequency and a nation’s economic or military clout.

The frequency counts for various modern European nations, deemed potentially significant in WN, were compiled by considering each country’s name, the names attributed to its people, and various spellings. For instance, “Spain” encompasses “Spanish” and “Spaniard”; “Portugal” includes “Portuguese” and “Portugueze”; while “Holland” refers to “Dutch” and the “United Provinces.” Notably, Smith only mentions “Netherlands” once, thus it’s categorized under “United Provinces” to maintain consistency with his terminology.

It’s important to note that my approach focused exclusively on national identifiers and did not account for Smith’s references to cities. For example, Amsterdam is mentioned 11 times in Chapter II of Book IV, yet only appears twice in the broader context of national references.

Unsurprisingly, England, Britain, and Scotland dominate Smith’s text. WN serves not merely as an economic treatise but also as a political manifesto advocating certain laws while critiquing others. Targeting a British audience, Smith emphasizes British policies, lauding Scottish free banking, the practice of students compensating their instructors, and advocating for religious freedom. He ardently opposes Britain’s mercantilist approach towards the American colonies, criticizes the corn laws, and points out flaws in the herring buss bounty system.

France, as Britain’s major rival during Smith’s era, is also frequently mentioned due to its substantial economy and military prowess. However, the mentions of Spain, Holland, and Portugal outstrip those of Russia, Prussia, and Austria, despite the latter being significant powers alongside Britain and France. This raises intriguing questions about the criteria for Smith’s selections.

Despite their diminished political status at the time, Spain, Portugal, and Holland provided illustrative examples in discussions of monetary economics, colonization, and international trade. Smith’s references to Spain and Portugal often revolve around their colonial exploits and the economic ramifications of their silver and gold mines. In Volume I, Smith’s references to Spain are concentrated in the digression on silver in Chapter XI and in Of Bounties in Chapter V, together comprising a remarkable 60% of the mentions within that volume, even though they occupy only 16% of the text.

Portugal similarly features prominently in discussions of silver and bounties, with over half of the mentions arising from these sections in Volume I. In Volume II, the majority of references to Portugal stem from Of Treaties of Commerce and Of Colonies, where Smith illustrates the Methuen Treaty as a key example of a commercial agreement.

The Dutch, while less frequently mentioned than Spain and Portugal, still receive considerable attention. Approximately 78% of the references to the Dutch appear in Book IV, particularly in discussions of political economy and public revenue. Smith generally portrays the Dutch favorably, recognizing their wealth and robust commercial practices. However, he critiques their reliance on exclusive trading companies in colonial ventures—an anomaly in their otherwise liberal economic practices. His positive remarks about Dutch banks of deposit further underline their entrepreneurial spirit in finance.

In summation, Smith’s references span a diverse array of empirical examples in WN, illuminating the economic characteristics of various nations rather than simply their political or military standing. Despite the prominence of certain powers like Russia, Prussia, and Austria, Smith draws on the unique economic traits of countries—such as Spain and Portugal’s colonial wealth and Holland’s trade prowess—to enrich his discourse. This concrete approach not only enhances the readability of WN but also solidifies its relevance in contemporary economic discussions.