t.
Of such a commodity we have no knowledge, but we may hypothetically
argue and speak about it, as if we had; and may improve our knowledge of
the science, by shewing distinctly the absolute inapplicability of all
the standards which have been hitherto adopted. But supposing either of
these to be a correct standard of value, still it would not be a
standard of riches, for riches do not depend on value. A man is rich or
poor, according to the abundance of necessaries and luxuries, which he
can command; and whether the exchangeable value of these for money, for
corn, or for labour, be high or low, they will equally contribute to the
enjoyment of their possessor. It is through confounding the ideas of
value and wealth, or riches, that it has been asserted, that by
diminishing the quantity of commodities, that is to say, of the
necessaries, conveniences, and enjoyments of human life, riches may be
increased. If value were the measure of riches this could not be denied,
because by scarcity the value of commodities is raised; but if Adam
Smith be correct, if riches consist in necessaries and enjoyments, then
they cannot be increased by a diminution of quantity.

It is true, that the man in possession of a scarce commodity is richer,
if by means of it he can command more of the necessaries and enjoyments
of human life; but as the general stock out of which each man's riches
are drawn, is diminished in quantity, by all that any individual takes
from it, other men's shares must necessarily be reduced in proportion as
this favoured individual is able to appropriate a greater quantity to
himself.

Let water become scarce, says Lord Lauderdale, and be exclusively
possessed by an individual, and you will increase his riches, because
water will then have value; and if wealth be the aggregate of individual
riches, you will by the same means also increase wealth. You
undoubtedly will increase the riches of this individual, but inasmuch as
the farmer must sell a part of his corn, the shoemaker a part of his
shoes, and all men give up a portion of their possessions for the sole
purpose of supplying themselves with water, which they before had for
nothing, they are poorer by the whole quantity of commodities which they
are obliged to devote to this purpose, and the proprietor of water is
benefited precisely by the amount of their loss. The same quantity of
water, and the same quantity of commodities, are enjoyed by the whole
society, b