ABSTRACT
This chapter begins with a general, descriptive discussion of Adam Smith's treatment of the rent of mines. It seeks to unravel the elements so that an appraisal of his analytical contribution can be made. Smith offers a comprehensive analysis of the mineral industries which, in typical fashion, draws heavily upon empirical evidence. The genesis of Smith's thorough treatment of mining lies in his desire to distinguish land which produces food and which always affords a rent from land (including mines) which produces the materials of clothing, lodging and equipage and which may or may not afford a rent. In discussing the rent of mines Smith offers a comprehensive analysis which involves the intertwining of both static and dynamic elements. If a modern, comparative static approach is applied to Smith's static analysis of the determination of metal prices it can be shown that in the context it is an unremarkable concept which sits easily within the accepted theoretical framework.
