The “Protective State” Approach to the “Productive State” in The Wealth of Nations: The Odd Case of Lay Patronage

Abstract

From Jacob Viner (1927) to David A. Reisman (1998), Adam Smith's departures from an advocacy of laissez-faire in The Wealth of Nations have been interpreted by a number of scholars. In this paper, we examine one of the oddest, and perhaps least noticed, of those departures. That was Smith's defense of the civil law of lay patronage in the established Presbyterian Church of Scotland, which appears in his discussion of the social benefits and potential social costs of institutions for religious instruction. A lay patron was a non-cleric individual who held the right under civil law to select the minister of a local parish church. In Smith's time, roughly two-thirds of the lay patrons in Scotland were wealthy landowners and one-third were crown officials. In addition, municipal corporations (cities) and universities held some patronage rights.