Sunday, January 11, 2009

A Walk in the Rain and Wind

This morning I went to Edinburgh Airport to meet an Australian academic, Paul Oslington, a delightful companion (such as at the Balliol commemoration of the publication in 1759 of Adam Smith’s Theory of Moral Sentiments conference last week).

It has been a dreadful day in Edinburgh with high winds, steady rain and squalls, and biting cold. Paul is in Edinburgh for a conference on theology and economics, but the morning was set aside for a tour of Adam Smith sites in the High Street/Royal Mile that runs from the Castle down to the Palace of Holyrood, where Scotland’s Kings and Queens lived during the Summer months (the present Queen often does), when not in Edinburgh Castle when they were threatened by usurpers and assorted enemies.

As it happened, the plane was late due to some technical problems and it came in after the plane that was due to leave Heathrow two house later!

After checking into his hotel in George Street (the 2-day conference is in the Royal Society of Edinburgh building just across the road (which Adam Smith was a founding member in 1783 - he was alreayd a member of the Royal Society in London), we made our way to the High Street, parked the car, and then walked up the hill towards the new statue of Adam Smith, which readers may remember was unveiled by Professor Vernon Smith earlier in 2008. It was paid for by private subscriptions raised by the Adam Smith Institute.

With rain beating down in the strong wind, we examined the statue by Andrew Stoddart, the Scottish sculpter, noting its iconography, before crossing the the pathetic shelter from the rain of the Custom House building, now the Edinburgh Council building. I say ‘pathetic shelter’ because the rain spread over us in obedience to manic wind currents.

It was here that Adam Smith officiated a Scottish Commissioner of Customes and Excise from 1778 to 1790, four days a week, except when on business in London. This was no sinecure. The letter books and minutes of the Commission show his diligent attendance right up a few weeks before he died in 1790.

Emerging into the full force of the windswept High Street/Royal Mile, we walked downhill, past John Knox’s house to the Canongate Kirkyard where Adam Smith's remains are buried. His grave recently was tidied up, thanks to a large donation by a wealthy, publicly-spirited Canadian citizen (though the Town Council dithered for a couple of years before implementing his generosity).

As Panmure House, Smith’s residence in Edinburgh from 1788-90, is literally ‘over the wall’ from the Kirk and because he was buried there, it may be safe to assume that this was his local Church where he escorted his mother on Sundays until she died in 1784, aged 90.

Our last stop, was next door, to Panmure House, which we viewed from the outside in the rain (still falling heavily). Smith walked from Panmure House each workday up the hill to the Custom House. From just outside Panmure Close, he could see the volcanic remains in Holyrood Park, where it is said he walked each Sunday with his close friend, James Hutton, the geologist and author of The Theory of the Earth (1795), a book as foundational for geology as Wealth Of Nations became in commercial economies.

James Hutton and another close friend, Joseph Black, the chemist and discoverer on Latent Heat, were charged by Smith on his deathbed in Panmure House, to burn his unpublished manuscripts and lecture notes a few days before he died.

For this act they received Adam Smith’s thanks but not from the scientific community who were deprived thus of their access to the rich haul of ideas in Smith’s works. Fortunately Smith instructed them to save his unpublished essays on the philosophical method, in particular the ‘juvenile essay’, ‘illustrated by the history of Astronomy’, which they published pothumously in 1795. He commenced the History of Astronomy in 1744 while at Balliol College, Oxford and which, in my view, sets out his non-religious account of the philosophical method.

I left Paul to continue down the hill to have a look at the Scottish Parliament Building – which in my view is a monstrosity of bad taste, but politically of immense significance – while I drove home to a hot shower and a change of clothes.

[Should any readers who visit Edinburgh would like my ‘guided tour’ of the ‘Adam Smith sites’, drop me an email via Lost Legacy, and if mutully convenient, I would be delighted to share the time with you. However, I cannot guarantee the weather, though I can guarantee an enthusiastic and spirited commentary.]

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Wednesday, August 13, 2008

Adam Smith's Edinburgh Home is Bought By Edinburgh Business School

The Principal of Heriot-Watt University, Professor Anton Muscatelli, has anounced the purchase of Panmure House, the home of Adam Smith from 1788 to 1790, by its Edinburgh Business School.

This means the restoration work can begin as soon as the funds are available and restoration architects have concluded the proposed work, keeping as close as possible to its 18th century character.

Those heritage vandals who flippantly suggested that it be demolished and turned into a McDonalds, and only marginally less silly, were those Bloggers - economists all - who invoked Adam Smith's mythical persona and called for the 'highest bidder' (by which I assmue they meant money) to 'win' the bid, betraying their lack of knowledge of how sealed bid auctions are conducted in Scotland. The seller is not obliged to accept any bid of the 'highest'.

The highest 'clean bid' is not necessarily the highest money bid and this was the case in the sale of Panmure House. The other bid was 'subject to structural survey', which for a 17th-century building (1690) could have delayed the exchange of missives (contracts) and also delayed the Council getting its money, plus the inevitable negotiations to reduce the bid price to take account of anything revealed in the survey.

The bid from Edinburgh Business School was 'unconditional' - removing the risk from the current owners to the University - and did not involve any public money or subsidy. Its public benefit criteria was to restore Panmure House as a post-graduate research centre of international standing for education in Scotland and internationally.

Panmure House is the last building standing that is associated intimately with Adam Smith and leading figures of the Scottish Enlightenment (many of whom met and dined with Adam Smith at his regular Sunday dinners) and where he died in 1790. His grave is about 100 yards away in the Canongate Churchyard.

There is a lot of work to do now at Panmure House; I shall play my modest part in that restoration work, as well as my work at Lost Legacy to restore his contributions to moral philosophy and political economy from the depredations of the epigones.

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Sunday, May 18, 2008

A Libertarian Supports Purchase of Panmure House

David Farrar writes in his Blog: Freedom and Whisky (‘A libertarian returns to Scotland’) on the continuing debate on Panmure House:

Responding to Alex:

Alex Massie has picked up on the sale of Adam Smith's house:
“They chose the £800,000 bid over a higher offer, on the grounds that the University would make the building more accessible to the public. The University plans to restore the house to promote the study of economics. Hmmm. Wouldn't it have been more appropriate to sell to the highest bidder?”

In one of the comments Gavin Kennedy writes:

The difference in the bid was £150,000, a rather small amount which will be more than covered quickly by the commercial operations of Adam Smith's former home (1788-90) in pursuit of academic excellence in economics.
This is also a public benefit, which was lauded by Adam Smith.
“I'd like to enlarge on that observation with a nod in the direction of the Austrian School of Economics.

Values are subjective. We each have our own unique scale of values and if that weren't so no trade would be possible at all. Let's imagine that I'm in the market for a property. I might be happy to pay £250,000 for a flat in central Edinburgh but another person might well prefer to spend the same amount of money on a sizeable house in rural Fife. And I might be willing to spend a bit extra on a place in Edinburgh simply because it had once been owned by Adam Smith! Others wouldn't. Values aren't limited to monetary considerations.

So I would argue that the City Council hasn't necessarily sold the Smith abode to a low bidder. It all depends on the Council's scale of values and those values can include a keenness for a particular future use of the property. From its point of view the Council has sold to the highest bidder. For once, in this case the Council's scale of values is not unlike mine!”


Comment
Some commentators to the various Blogs that have remarked about the sale of Panmure House demonstrate their philistine nature by simply demanding that the City of Edinburgh Council sell to the ‘highest bidder’, or demolish Panmure House and turn it into a MacDonalds, or some such atrocity.

I am pleased to see that a Libertarian takes a more intelligent stance.

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