Adam Smith

From Sun Wen Hsueh Shu by Sun Yat-sen, 1919

During the stage of handicraft economy, the merchants should be allowed to compete freely for the people will benefit thereby. This is the most effective policy to forestall unfair control of market. It had been enforced unknowingly for several thousand years when Adam Smith discovered its principle and expatiated on it. His book The Wealth of Nations published in the 18th century stirred the intellectual world and was at once accepted as the bible of economic principles. But what was advocated in that book had been previously popularized, though consciously unknown to the people. Smith simply brought these common phenomena into relief. In other words, he gave vent to what others wished to say but were unable to answer. That the book was warmly welcome was natural. Even in our days some still regard his teachings as practical.

But in less than 100 years after publication of the Wealth of Nations, the Industrial Revolution occurred. Since then wealth has been produced with labor-saving machines. The owners of such machines wield tremendous financial power, thus putting the entire world at their feet. At this stage he who still adheres to the laissez faire doctrine may be likened to a cripple attempting to race with a motor vehicle. The failure of such an attempt is a certainty. Being aware of the changed situations, Mr. Bismarck inaugurated state socialism in Germany, which was immediately followed by other nations. The German premier obviously had a clear idea of the use of money. He might be called the modern Shang Hung-yang.

The cult of Dr. Sun;
Sun W�n hsueh shu ... by Dr. Sun Yat-sen;
the translation by Wei Yung.
Shanghai : The Independent Weekly, 1931, pages 48-9.