Adam Smith’s digression on joint stock companies (continued)

And now, back to our regularly scheduled programming: Adam Smith’s pamphlet Additions and Corrections to the First and Second Editions of Dr. Adam Smith’s Inquiry into the Nature and Causes of the Wealth of Nations (Smith 1784). Last week, we surveyed the first 18 paragraphs of the last part (Part #13) of Smith’s pamphlet, where Smith compares and contrasts two different types of overseas trading companies: regulated companies and joint stock companies. For reference, below are the relevant links: Adam Smith’s second dire warning (paras. 1 to 5 on pp. 47-49 of Part #13) Adam Smith and the economics of corporate governance (paras. 6 to 15 on pp. 49-58) Adam Smith’s rebuke of corporate boards (paras. 16 to 18 on pp. 58-60) In the next ten paragraphs (19 to 28) of Part #13 of his pamphlet, Smith surveys four specific overseas trading companies that were organized as joint stock companies: (i) the Royal African Company, (ii) the Hudson’s Bay Company, (iii) the ill-fated South Sea Company,…