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Page 346 of 2651

Author: Adam Smith

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The pretence that corporations are necessary for the better
government of the trade, is without any foundation. The real and
effectual discipline which is exercised over a workman, is not
that of his corporation, but that of his customers. It is the
fear of losing their employment which restrains his frauds and
corrects his negligence. An exclusive corporation necessarily
weakens the force of this discipline. A particular set of workmen
must then be employed, let them behave well or ill. It is upon
this account that, in many large incorporated towns, no tolerable
workmen are to be found, even in some of the most necessary
trades. If you would have your work tolerably executed, it must
be done in the suburbs, where the workmen, having no exclusive
privilege, have nothing but their character to depend upon, and
you must then smuggle it into the town as well as you can.

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