Chapter 30
The State's Essential Duties
OF THE EXPENSES OF THE SOVEREIGN OR COMMONWEALTH. PART I. Of the Expense of Defence. The first duty of the sovereign, that of protecting the society from the violence and invasion of other independent societies, can be performed only by means of a military force. But the expense both of preparing this military force in time of peace, and of employing it in time of war, is very different in the different states of society, in the different periods of improvement. Among nations of hunters, the lowest and rudest state of society, such as we find it among the native…
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Key Quotes & Analysis
"The first duty of the sovereign, that of protecting the society from the violence and invasion of other independent societies, can be performed only by means of a military force."
Context: Opening Part I on defence
Defence is the primary justification for state expense.
In Today's Words:
Smith begins Book Five by stating that a government's first obligation is protecting citizens from foreign violence, and that duty requires military force. The rest of Part I traces how the cost and organization of that force change as societies move from hunting to shepherding to agriculture and commerce.
"A well regulated standing army is superior to every militia. Such an army, as it can best be maintained by an opulent and civilized nation, so it can alone defend such a nation against the invasion of a poor and barbarous neighbour."
Context: Comparing professional and part-time forces
Wealth enables armies that republican suspicion still must constrain.
In Today's Words:
Professional soldiers outmatch militias in discipline and endurance, Smith argues, which is why rich civilized states need standing forces to repel poorer warlike neighbours. He adds that such armies can preserve internal order yet warns republicans that they threaten liberty when officers' interests diverge from the public.
"But upon the impartial administration of justice depends the liberty of every individual, the sense which he has of his own security."
Context: Part II on courts and judicial independence
Justice secures property and person by predictable impartial rules.
In Today's Words:
Smith insists that people feel free only when courts apply law impartially, without fear or favour from the powerful. That security requires separating judges from executive patronage and paying them through fixed public salaries rather than court fees and presents that make litigants their paymasters.
"The third and last duty of the sovereign or commonwealth, is that of erecting and maintaining those public institutions and those public works, which though they may be in the highest degree advantageous to a great society, are, however, of such a nature, that the profit could never repay the expense to any individual or small number of individuals."
Context: Opening Part III on public works and institutions
Collective goods justify state action when private profit cannot.
In Today's Words:
Smith's third duty covers schools, roads, and institutions that benefit whole nations but no private investor could fund alone because returns are too diffuse. He prefers user tolls where possible yet accepts general taxation when beneficiaries cannot directly repay the cost of necessary public works.
Thematic Threads
Class
In This Chapter
Smith shows how economic development creates class specialization—wealthy societies can afford professional armies and independent judges while poor societies cannot
Development
Building on earlier chapters about division of labor, now applied to government functions
In Your Life:
Your economic position determines which professional services you can access and trust
Power
In This Chapter
Government power requires proper institutional design—judges must be independent from those they judge, military must be professional to be effective
Development
Introduced here as institutional power rather than individual power
In Your Life:
Any authority figure whose income depends on pleasing you serves your interests better than one who's paid regardless
Identity
In This Chapter
Professional identity emerges from economic specialization—the shift from citizen-soldiers to professional armies reflects societal development
Development
Extends earlier themes about how work shapes identity to government roles
In Your Life:
Your professional incentives shape your behavior more than your personal values when the two conflict
Social Expectations
In This Chapter
Society expects government to provide defense, justice, and infrastructure, but these services only work when properly incentivized
Development
Introduced here as expectations requiring institutional solutions
In Your Life:
Your expectations of others should account for their actual incentives, not their stated intentions
You now have the context. Time to form your own thoughts.
Discussion Questions
This is not a test. Five prompts guide you through the chapter, from how it opens to how it closes, so you notice context and rhythm rather than facts to memorize. Sit with each question in your own words. When you see "One way to read it," treat it as a starting point, not the only answer.
- 1
Why does military expense rise as societies advance from hunting to agriculture?
analysis • surfaceOne way to read it
Specialization separates soldiers from producers; cultivators cannot leave harvests for long campaigns. Professional armies cost more but fight more effectively than universal militias.
- 2
What danger does Smith see in judges relying on court fees and presents?
analysis • mediumOne way to read it
Litigants become paymasters, encouraging partiality, delay, and sale of offices. Impartial justice requires funding that does not make the judge depend on the parties before him.
- 3
Why does Smith often prefer tolls to general taxes for roads and canals?
application • mediumOne way to read it
Tolls charge users directly, show where traffic justifies investment, and discipline negligent management. When users cannot cover cost, general revenue must fill the gap.
- 4
How does Smith balance republican fear of standing armies with their necessity?
application • deepOne way to read it
He admits civilized nations need professional forces against barbarous neighbours and to hold empire together, yet warns that liberty is unsafe when general and officer interests are not tied to the public.
- 5
What question does Smith promise to take up at the end of this chapter?
reflection • deepOne way to read it
The sources of general or public revenue: how society should contribute to defence, dignity, and institutions that tolls and fees cannot fully fund.
Critical Thinking Exercise
Follow the Money Trail
Think of a recent interaction where you received poor service or felt someone wasn't acting in your best interest. Research or deduce how that person gets paid - salary, commission, tips, bonuses, etc. Map out what behaviors their payment system actually rewards versus what you needed from them.
Consider:
- •Consider both obvious payments (salary) and hidden incentives (bonuses, promotions, quotas)
- •Look for misalignment between what the organization claims to value and what it actually rewards
- •Think about how you could have better navigated the situation knowing their true incentives
Journaling Prompt
Write about a time when your own work incentives pushed you to act against your better judgment or customer interests. How did the payment structure shape your choices, and what would need to change to align your incentives with doing the right thing?
Coming Up Next...
Chapter 31: How Governments Fund Themselves
Having surveyed what the sovereign must spend on defence, justice, public works, and dignity, Smith turns to the sources of general revenue and how the whole society should be made to contribute toward those costs.





