What is “Arthur Cole’s puzzle”? This enigma refers to an obscure but curious Adam Smith problem identified by Arthur H. Cole (pictured here), an economic historian at Harvard and the head librarian of the Harvard Business School back in the day. For further reference, below is an excerpt from Chapter 2 of my forthcoming survey of Adam Smith problems with Salim Rashid:

“Arthur H. Cole (1889–1974) …. published a paper titled ‘Puzzles of the “Wealth of Nations”.’ (Cole 1958) Although the title of Cole’s paper refers to puzzles (plural), in reality Cole identifies just one puzzle, but it is a big one. To begin, Cole (1958, p. 3) shows how ‘Smith gives much evidence of a pretty low opinion of mankind in general.’ Among others, Smith calls out ‘the usual idleness’ of apprentices (WN, I.x.a.8) and the ‘sneaking arts’ of underling tradesmen (IV.iii.b.8). The Scottish philosopher also castigates ‘weak and wondering travelers’ and ‘stupid and lying missionaries’; he rebukes ‘the absurd prescriptions’ of doctors (II.iii.31) as well as ‘[l]uxury in the fair sex’ (I.viii.37); and he is unable to ‘reckon our soldiers the most industrious set of people among us’ (I.viii.44). But Smith reserves his greatest invective for politicians, i.e. ‘that insidious and crafty animal’ (IV.ii.39), and for merchants and manufacturers, whose ‘avidity’ (IV.viii.4), ‘clamour and sophistry’ (I.x.b.25), and ‘mean rapacity’ (IV.iii.c.9) impede the progress of commerce.

“In short, Cole’s conclusion is that Smith had bad things to say about almost everyone … Well, almost everyone. By comparison, Smith has good things to say about the ‘judicious operations’ of English bankers and the ‘delightful art’ of gardening. He commends ‘the wholesome and invigorating liquors of beer and ale.’ And he also praises the ‘chairmen, porters, and coalheavers in London’ as well as ‘those unfortunate women who live by prostitution’ as ‘the strongest men and the most beautiful women perhaps in the British dominions ….’ (WN, I.xi.b.41)

“Cole’s puzzle is therefore this: what are we to make of this Smithian pattern of general condemnation sprinkled with such limited praise? Or in the words of Arthur Cole: ‘One lesson seems sufficient: when some specially vigorous judgment is quoted from the great Scotsman—that a politician is an “insidious and crafty animal,” or tradesmen are capable of “sneaking arts”—it will be appropriate to reflect that this thorn came from a bouquet full of rather thorny roses. Whether Adam Smith deliberately put such prickly blossoms there—for literary effect—or in his premature cantankerousness didn’t realize that such barbs were being placed all through the book—this question each admirer of the Scotsman may answer for himself’.” (Cole 1958, p. 8)