ABSTRACT
What are the functions of the sovereign, and what are the expenditures? Smith claims the sovereign is in charge of national defense, the administration of justice, and some public works and institutions. These functions will have different expenditures depending on historical circumstances. In particular these expenses will increase with the increase in wealth of society. National defense in a commercial society should be professionalized and subject to the division of labor. A standing army is thus the best solution, even if the most expensive one. The administration of justice should not be a major expense if financed by user fees. Similarly, public works such as roads, bridges, canals, as well as primary education should also be self-financed through user fees.
