In Adam Smith's famous economic treatise An Inquiry into the Nature and Causes of the Wealth of Nations (1776), one finds some interesting and cogent theoretical arguments concerning the funding and functioning of the judicial system. Note his argument that if the judges and lawyers of a country are not well paid, they will not execute their offices fairly or efficiently.

Book V, Chapter 1 "Of the Expenses of the Sovereign or Commonwealth"

Part 2 "Of the Expense of Justice"

The second duty of the sovereign, that of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it , or the duty of establishing an exact administration of justice, requires, too, very different degrees of expense in the different periods of society. . . .

Civil government supposes a certain subordination. But as the necessity of...