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AN
INQUIRY
INTO THE
PRINCIPLES OF POLITICAL OECONOMY:
BEING AN
ESSAY ON THE SCIENCE
OF
Domestic Policy in Free Nations.

IN WHICH ARE PARTICULARLY CONSIDERED

POPULATION, AGRICULTURE, TRADE, INDUSTRY,

MONEY, COIN, INTEREST, CIRCULATION, BANKS,

EXCHANGE, PUBLIC CREDIT, AND TAXES.


By Sir JAMES STEUART, Bart.


Ore trahit quodcumque potest atque addit acervo. Hor. Lib. I. Sat. 1.

IN TWO VOLUMES.


VOL. I.

LONDON:

Printed for A. Millar, and T. Cadell, in the Strand.

MDCCLXVII.


PREFACE.

It is with the greatest diffidence that I present to the public this attempt towards reducing to principles, and forming into a regular science, the complicated interests of domestic policy. When I consider the time and labour employed in the composition, I am apt to value it from selfish considerations. When I compare it even with my own abilities, I still think favourably of it, for a better reason; because it contains a summary of the most valuable part of all my knowledge. But when I consider the greatness of my subject, how small does the result of my application appear!

The imperfections, therefore, discovered in this work, will, I hope, be ascribed to the disproportion between the extent of the undertaking, and that of my capacity. This has been exerted to the utmost: and if I have failed, it may, at least, with justice, be said, that I have miscarried in an attempt of the greatest importance to mankind.

I no where shew the least desire to make my court to any particular statesman whose administration might have been hinted at. I freely follow the thread of my reasoning without a biass, either in favour of popular opinions, or of any of the numberless systems which have been formed by those who have written upon particular parts of my subject. The warmth of my temper has led me often into commendations, when I was pleased; but when I felt the effects of ill humour on being dissatisfied with particular circumstances, relating to countries, to men, and to things, which I had in view at the time I was writing, I seldom thought it proper to be particular. I have, in general, considered the danger of error, either in blaming or commending the steps of any administration, without being well informed of the whole combination of circumstances which the statesman had before him at the time.

This composition being the successive labour of many years spent in travelling, the reader will find some passages in which the unities of time and place have not been observed. These I could have corrected with ease, had I not been advised to leave them as characters to point out the circumstances under which I wrote, and thereby to confirm the authenticity of certain facts.

The modes of thinking, also, peculiar to the several countries where I have lived, have, no doubt, had an influence on what I have writ concerning their customs: the work, therefore, will not, in general, correspond to the meridian of national opinions any where; and of this it is proper the reader should be apprised, that he may not apply to the domestic circumstances of his own country what was intended to refer to those of other nations; nor impute what was the irresistible effect of my experience and conviction, to wilful prejudice.

I have read many authors on the subject of political oeconomy; and I have endeavoured to draw from them all the instruction I could. I have travelled, for many years, through different countries, and have examined them, constantly, with an eye to my own subject. I have attempted to draw information from every one with whom I have been acquainted: this, however, I found to be very difficult before I had attained to some previous knowledge of my subject. Such difficulties confirmed to me the justness of Lord Bacon’s remark, that he who knows how to draw information by forming proper questions, is already possessed of half the science[[A]].

[A]. Prudens interrogatio, dimidium scientiæ.

I could form no consistent plan from the various opinions I met with: hence I was engaged to compile the observations I had casually made, in the course of my travels, reading, and experience. From these I formed the following work, after expunging the numberless inconsistencies and contradictions which I found had arisen from my separate inquiries into every particular branch.

I had observed so many persons declining in knowledge as they advanced in years, that I resolved early to throw upon paper whatever I had learned; and to this I used to have recourse, as others have to their memories. The unity of the object of all my speculations, rendred this practice more useful to me than it would be to one whose researches are more extended.

Whoever is much accustomed to write for his own use merely, must contract a more careless stile than another who has made language his study, and who writes in hopes of acquiring a literary reputation. I never, till very lately, thought of appearing as an author; and in the frequent perusals of what I had writ, my corrections were chiefly in favour of perspicuity: add to this, that the language in which I now write was, for many years, foreign to those with whom I lived and conversed. When these circumstances are combined with the intricacy of my subject, which constantly carried off my attention from every ornament of language, I flatter myself that those of my readers, at least, who enter as heartily as I have done into the spirit of this work, will candidly overlook the want of that elegance which adorns the stile of some celebrated authors in this Augustan age. I present this inquiry to the public as nothing more than an essay which may serve as a canvass for better hands than mine to work upon.

It contains such observations only as the general view of the domestic policy of the countries I have seen, has suggested. It is a speculation, and no more. It is a rough drawing of a mighty plan, proportioned in correctness to my own sagacity, to my knowledge of the subject and to the extent of my combinations.

It goes little farther than to collect and arrange some elements upon the most interesting branches of modern policy, such as population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes. The principles deduced from all these topics, appear tolerably consistent; and the whole is a train of reasoning, through which I have adhered to the connection of subjects as faithfully as I could: but the nature of the work being a deduction of principles, not a collection of institutions, I seized the opportunities which my reasoning threw in my way, to connect every principle, as I went along, with every part of the inquiry to which it could refer; and when I found the connexion sufficiently shewn, I broke off such disquisitions as would have led me from the object then present.

When principles thus casually applied in one part to matters intended to be afterwards treated of in another, came to be taken up a-new, they involved me in what may appear prolixity. This I found most unavoidable, when I was led to thoughts which were new to myself, and consequently such as must cost me the greatest labour to set in a clear and distinct point of view. Had I been master of my subject on setting out, the arrangement of the whole would have been rendered more concise: but had this been the case, I should never have been able to go through the painful deduction which forms the whole chain of my reasoning, and upon which, to many readers, slow in forming combinations, the conviction it carries along with it in a great measure depends: to the few, again, of a more penetrating genius, to whom the slightest hint is sufficient to lay open every consequence before it be drawn, in allusion to Horace, I offer this apology, Clarus esse laboro, prolixus fio.

The path I have taken was new to me, after all I had read on the subject. I examined what I had gathered from others by my own principles; and according as I found it tally with collateral circumstances, I concluded in its favour. When, on the other hand, I found a disagreement, I was apprized immediately of some mistake: and this I found constantly owing to the narrowness of the combinations upon which it had been founded.

The great danger of running into error upon particular points relating to this subject, proceeds from our viewing them in a light too confined, and to our not attending to the influence of concomitant circumstances, which render general rules of little use. Men of parts and knowledge[knowledge] seldom fail to reason consequentially on every subject; but when their inquiries are connected with the complicated interests of society, the vivacity of an author’s genius is apt to prevent him from attending to the variety of circumstances which render every consequence, almost, which he can draw, uncertain. To this I ascribe the habit of running into what the French call Systemes. These are no more than a chain of contingent consequences, drawn from a few fundamental maxims, adopted, perhaps, rashly. Such systems are mere conceits; they mislead the understanding, and efface the path to truth. An induction is formed, from whence a conclusion, called a principle, is drawn; but this is no sooner done, than the author extends its influence far beyond the limits of the ideas present to his understanding, when he made his deduction.

The imperfection of language engages us frequently in disputes merely verbal; and instead of being on our guard against the many unavoidable ambiguities attending the most careful speech, we place a great part of our learning when at school, and of our wit when we appear on the stage of the world, in the prostitution of language. The learned delight in vague, and the witty in equivocal terms. In general, we familiarize ourselves so much with words, and think so little, when we speak and write, that the signs of our ideas take the place of the images which they were intended to represent.

Every true proposition, when understood, must be assented to universally. This is the case always, when simple ideas are affirmed or denied of each other. No body ever doubted that sound is the object of hearing, or colour that of sight, or that black is not white. But whenever a dispute arises concerning a proposition, wherein complex ideas are compared, we may often rest assured, that the parties do not understand each other. Luxury, says one, is incompatible with the prosperity of a state. Luxury is the fountain of a nation’s welfare and happiness, says another. There may, in reality, be no difference in the sentiments of these two persons. The first may consider luxury as prejudicial to foreign trade, and as corrupting the morals of a people. The other may consider luxury as the means of providing employment for such as must live by their industry, and of promoting an equable circulation of wealth and subsistence, through all the classes of inhabitants. If each of them had attended to the combination of the other’s complex idea of luxury, with all its consequences, they would have rendered their propositions less general.

The difference, therefore, of opinion between men is frequently more apparent than real. When we compare our own ideas, we constantly see their relations with perspicuity; but when we come to communicate those relations to other people, it is often impossible to put them into words sufficiently expressive of the precise combination we have made in our own minds.

This being the case, I have avoided, as much as possible, condemning such opinions as I have taken the liberty to review; because I have examined such only as have been advanced by men of genius and reputation: and since all matters of controversy regard the comparison of our ideas, if the terms we use to express them were sufficiently understood by both parties, most political disputes would, I am persuaded, be soon at an end.

Here it may be objected, that we frequently adopt an opinion, without being able to give a sufficient reason for it, and yet we cannot gain upon ourselves to give it up, though we find it combated by the strongest arguments.

To this I answer, that in such cases we do not adhere to our own opinions, but to those of others, received upon trust. It is our regard for the authority, and not for the opinion, which makes us tenacious: for if the opinion were truly our own, we could not fail of seeing, or at least we should not long be at a loss in recollecting the ground upon which it is built. But when we assent implicitly to any political doctrine, there is no room for reason: we then satisfy ourselves with the persuasion that those whom we trust have sufficient reasons for what they advance. While our assent therefore is implicit, we are beyond conviction; not because we do not perceive the force of the arguments brought against our opinion, but because we are ignorant of the force of those which can be brought to support it: and as no body will sell what belongs to him, without being previously informed of its value, so no body will give up an implicit opinion, without knowing all that can be said for it. To this class of men I do not address myself in my inquiries.

But I insensibly run into a metaphysical speculation, to prove, that in political questions it is better for people to judge from experience and reason, than from authority; to explain their terms, than to dispute about words; and to extend their combinations, than to follow conceits, however decorated with the name of systems. How far I have avoided such defects, the reader will determine.

Every writer values himself upon his impartiality; because he is not sensible of his fetters. The wandering and independent life I have led may naturally have set me free, in some measure, from strong attachments to popular opinions. This may be called impartiality. But as no man can be deemed impartial, who leans to any side whatever, I have been particularly on my guard against the consequences of this sort of negative impartiality, as I have found it sometimes carrying me too far from that to which a national prejudice might have led me.

In discussing general points, the best method I found to maintain a just balance in that respect, was to avert my eye from the country in which I lived at the time; and to judge of absent things by the absent. Objects which are present, are apt to produce perceptions too strong to be impartially compared with those recalled only by memory.

When I have had occasion to dip into any question concerning the preference to be given to certain forms of government above others, and to touch upon points which have been the object of sharp disputes, I have given my opinion with freedom, when it seemed proper: and in stating the question, I have endeavoured to avoid all trite, and, as I may call them, technical terms of party, which are of no other use than to assist the disputants in their attempts to blacken each other, and to throw dust in the eyes of their readers.

I have sometimes entred so heartily into the spirit of the statesman, that I have been apt to forget my situation in the society in which I live; and when the private man reads over the politician, his natural partiality in favour of individuals, leads him to condemn, as Machiavellian principles, every sentiment approving the sacrifice of private concerns, in favour of a general plan.

In order, therefore, to reconcile me to myself in this particular, and to prevent certain expressions, here and there interspersed, from making the slightest impression upon a reader of delicate sentiments, I must observe, that nothing would have been so easy as to soften many passages, where the politician appears to have snatched the pen out of the hand of the private citizen: but as I write for such only who can follow a close reasoning, and attend to the general scope of the whole inquiry, I have, purposely, made no correction; but continued painting in the strongest colours, every inconvenience which must affect certain individuals living under our free modern governments, whenever a wise statesman sets about correcting old abuses, proceeding from idleness, sloth or fraud in the lower classes, arbitrary jurisdictions in the higher, and neglects in administrations, with respect to the interests of both. The more any cure is painful and dangerous, the more ought men to be careful in avoiding the disease. This leads me to say a word concerning the connection between the theory of morals and that of politics.

I lay it down as a general maxim, that the characteristic of a good action consists in the conformity between the motive, and the duty of the agent. If there were but one man upon earth, his duty would contain no other precepts than those dictated by self-love. If he comes to be a father, a husband, a friend, his self-love falls immediately under limitations: he must withhold from himself, and give to his children; he must know how to sacrifice some of his fancies, in order to gratify, now and then, those of his wife, or of his friend. If he comes to be a judge, a magistrate, he must frequently forget that he is a friend, or a father: and if he rises to be a statesman, he must disregard many other attachments more comprehensive, such as family, place of birth, and even, in certain cases, his native country. His duty here becomes relative to the general good of that society of which he is the head: and as the death of a criminal cannot be imputed to the judge who condemns him, neither can a particular inconvenience resulting to an individual, in consequence of a step taken for a general reformation, be imputed to him who sits at the helm of government.

If it should be asked, of what utility a speculation such as this can be to a statesman, to whom it is in a manner addressed from the beginning to the end: I answer, that although it seems addressed to a statesman, the real object of the inquiry is to influence the spirit of those whom he governs; and the variety of matter contained in it, may even suggest useful hints to himself. But his own genius and experience will enable him to carry such notions far beyond the reach of my combinations.

I have already said that I considered my work as no more than a canvass prepared for more able hands than mine to work upon. Now although the sketch it contains be not sufficiently correct, I have still made some progress, I think, in preparing the way for others to improve upon my plan, by contriving proper questions to be resolved by men of experience in the practical part of government.

I leave it therefore to masters in the science to correct and extend my ideas: and those who have not made the principles of policy their particular study, may have an opportunity of comparing the exposition I have given of them with the commonly received opinions concerning many questions of great importance to society. They will, for instance, be able to judge how far population can be increased usefully, by multiplying marriages, and by dividing lands: how far the swelling of capitals, cities and towns, tends to depopulate a country: how far the progress of luxury brings distress upon the poor industrious man: how far restrictions laid upon the corn trade, tend to promote an ample supply of subsistence in all our markets: how far the increase of public debts tends to involve us in a general bankruptcy: how far the abolition of paper currency would have the effect of reducing the price of all commodities: how far a tax tends to enhance their value: and how far the diminution of duties is an essential requisite for securing the liberty, and promoting the prosperity and happiness of a people.

Is it not of the greatest importance to examine, with candour, the operations by which all Europe has been engaged in a system of policy so generally declaimed against, and so contrary to that which we hear daily recommended as the best? And to shew, from the plain principles of common sense, that our present situation is the unavoidable consequence of the spirit and manners of the present times, and that it is quite compatible with all the liberty, affluence, and prosperity, which any human society ever enjoyed in any age, or under any form of government? A people taught to expect from a statesman the execution of plans, big with impossibility and contradiction, will remain discontented under the government of the best of Kings.

The reader is desired to correct the following errors, especially such as are distinguished by an asterisk *, which pervert the sense entirely.

ERRATA.

Page. Line.
3. [32]. * advantages, r. disadvantages
73. [27]. were, r. from
85. [28]. * This is the, r. This is not the
89. [12]. * supposed to come, r. subsisted
116. [12]. productions, r. spontaneous productions
145. [9]. * trial, r. Tirol
147. [30]. its, r. their
172. [1]. * earth, r. cart
208. [29]. third, r. fourth
210. [6]. lands, r. hands
214. [4]. moving, r. removing.
217. [2]. turns, r. terms
229. [8]. * usefulness, r. uselesness
236. [19]. * management, r. mismanagement
266. [21], 22. they correspond, r. it corresponds
290. [2]. easily bred, r. bred early
339. [21]. * preventing, r. promoting
382. [10]. * work, r. worth
391. [8]. * next, r. net
425. [27]. discovering, r. discoursing
430. [29]. eiò, r. ciò
Ditto [30]. misuro, r. misura
501. [3]. * physical, r. political
Ditto [27]. competition, r. composition.
515. [17]. proportions, r. propositions
552. [12]. * bringing, r. coining
601. [9]. * diminution, r. denomination
626. [31]. * revolution, r. institution
637.
638.
ult.
[prim].
} formally, r. formerly

CONTENTS
OF THE
FIRST VOLUME.


BOOK I.
Of Population and Agriculture.
Introduction,Page [1]
Chap. I. Of the government of mankind,[6]
Chap. II. Of the spirit of a people,[8]
Chap. III. Upon what principles, and from what natural causes, do mankind multiply; and what are the effects of procreation in countries where numbers are not found to increase?[17]
Chap. IV. Continuation of the same subject, with regard to the natural and immediate effects of agriculture, as to population,[21]
Chap. V. In what manner, and according to what principles and political causes does agriculture augment population?[26]
Chap. VI. How the wants of mankind promote their multiplication,[31]
Chap. VII. The effects of slavery upon the multiplication and employment of mankind,[36]
Chap. VIII. What proportion of inhabitants is necessary for agriculture, and what proportion may be usefully employed in every other occupation?[41]
Chap. IX. What are the principles which regulate the distribution of inhabitants into farms, hamlets, villages, towns, and cities?[46]
Chap. X. Of the consequences which result from the reparation of the two principal classes of a people, the farmers and the free hands, with regard to their dwelling,[50]
Chap. XI. Of the distribution of inhabitants into classes; of the employments, and multiplication of them,[59]
Chap. XII. Of the great advantage of combining a well digested theory, and a perfect knowledge[knowledge] of facts, with the practical part of government, in order to make a people multiply,[67]
Chap. XIII. Continuation of the same subject, with regard to the necessity of having exact lists of births, deaths, and marriages, for every class of inhabitants in a modern society,[75]
Chap. XIV. Of the abuse of agriculture and population,[82]
Chap. XV. Application of the above principles to the state of population in Great Britain,[95]
Chap. XVI. Why are some countries found very populous, in respect of others, equally well calculated for improvement?[101]
Chap. XVII. In what manner, and according to what proportion, do plenty and scarcity affect a people?[109]
Chap. XVIII. Of the causes and consequences of a country being fully peopled,[114]
Chap. XIX. Is the introduction of machines into manufactures prejudicial to the interest of a state, or hurtful to population?[119]
Chap. XX. Miscellaneous observations upon agriculture and population,[124]
Chap. XXI. Recapitulation of the first book,[149]

BOOK II.
Of Trade and Industry.
Introduction,[161]
Chap. I. Of the reciprocal connections between trade and industry,[166]
Chap. II. Of Demand,[172]
Chap. III. Of the first principles of bartering, and how this grows into trade,[175]
Chap. IV. How the prices of goods come to be determined by trade,[181]
Chap. V. How foreign trade opens to an industrious people, and the consequences of it to the merchants who set it on foot,[184]
Chap. VI. Consequences of the introduction of a passive foreign trade among a people who live in simplicity and idleness,[190]
Chap. VII. Of double competition,[196]
Chap. VIII. Of what is called expence, profit, and loss,[205]
Chap. IX. The general consequences resulting to a trading nation, upon the opening of an active foreign commerce,[206]
Chap. X. Of the balance of work and demand,[216]
Chap. XI. Why in time this balance is destroyed,[225]
Chap. XII. Of the competition between nations,[232]
Chap. XIII. How far the form of government of a particular country may be favourable or unfavourable to a competition with other nations, in matters of commerce,[237]
Chap. XIV. Security, ease, and happiness, no inseparable concomitants of trade and industry,[250]
Chap. XV. A general view of the principles to be attended to by a statesman, who resolves to establish trade and industry upon a lasting footing,[261]
Chap. XVI. Illustration of some principles laid down in the former chapter, relative to the advancement and support of foreign trade,[272]
Chap. XVII. Symptoms of decay in foreign trade,[278]
Chap. XVIII. Methods of lowering the price of manufactures, in order to make them vendible in foreign markets,[283]
Chap. XIX. Of infant, foreign and domestic trade, with respect to the several principles which influence them,[301]
Chap. XX. Of luxury,[306]
Chap. XXI. Of physical and political necessaries,[311]
Chap. XXII. Preliminary reflections upon inland commerce,[319]
Chap. XXIII. When a nation, which has enriched herself by a reciprocal commerce in manufactures with other nations, finds the balance of trade turn against her, it is her interest to put a stop to it altogether,[328]
Chap. XXIV. What is the proper method to put a stop to a foreign trade in manufactures, when the balance of it turns against a nation?[336]
Chap. XXV. When a rich nation finds her foreign trade reduced to the articles of natural produce, what is the best plan to be followed? And what are the consequences of such a change of circumstances?[343]
Chap. XXVI. Of the vibration of the balance of wealth between the subjects of a modern state,[359]
Chap. XXVII. Circulation, and the balance of wealth, objects worthy of the attention of a modern statesman,[374]
Chap. XXVIII. Circulation considered with regard to the rise and fall of the price of subsistence and manufactures,[394]
Chap. XXIX. Circulation with foreign nations, the same thing as the balance of trade,[414]
Chap. XXX. Miscellaneous questions and observations relative to trade and industry,[426]
Chap. XXXI. Recapitulation of the second book,[482]

BOOK III.
OF MONEY AND COIN.
PART I.
The principles of money deduced, and applied to the coin of Great Britain.
Introduction,[523]
Chap. I. Of money of accompt,[526]
What money is[——]
Definitions[——]
Money a scale for measuring value,[——]
Principles which determine the value of things[527]
Prices not regulated by the quantity of money,[——]
But by the relative proportion between commodities and the wants of mankind,[528]
Necessity of distinguishing between money and price,[529]
Money of accompt what, and how contrived,[——]
Examples of it,[531]
Bank money,[——]
Angola money,[——]
Chap. II. Of artificial or material money,[——]
Usefulness of the precious metals for the making money,[532]
Adjusting a standard, what?[533]
Debasing and raising a standard, what?[534]
The alteration of a standard, how to be discovered?[——]
Of alloy,[——]
Chap. III. Incapacities of the metals to perform the office of an invariable measure of value,[535]
1. They vary in their relative value to one another,[——]
All measures ought to be invariable,[——]
Consequences when they vary,[536]
Defects of a silver standard,[537]
Arguments in favour of it,[——]
Answers to these arguments,[538]
Usefulness of an universal measure,[539]
They have two values, one as coin, and one as metals,[540]
Smaller inconveniences attending material money,[——]
It wears in circulation,[——]
It is inaccurately coined,[541]
The coinage adds to its value, without adding to its weight,[——]
The value of it may be arbitrarily changed,[——]
Trade profits of the smallest defects in the coin,[——]
Chap. IV. Methods which may be proposed for lessening the several inconveniences to which material money is liable,[542]
Use of theory in political matters,[——]
Five remedies against the effects of the variation between the value of the metals,[——]
Remedies against the other inconveniences,[544]
Against the wearing of the coin,[——]
Against inaccuracy of coinage,[——]
Against the expence of coinage,[——]
Against arbitrary changes in the value of coin,[545]
Chap. V. Variations to which the value of the money-unit is exposed from every disorder in the coin,[——]
How the market price of the metals is made to vary,[——]
The variation ought to be referred to the rising metal, and never to the sinking,[546]
How the money-unit of accompt is made to vary in its value from the variation of the metals,[547]
Consequences of this,[——]
The true unit is the mean proportional between the value of the metals,[——]
The unit to be attached to the mean proportion upon a new coinage, not after the metals have varied,[548]
It is better to affix the unit to one, than to both metals,[549]
Variation to which the money-unit is exposed from the wearing of the coin,[——]
Variations to which the money-unit is exposed, from the inaccuracy in the fabrication of the money,[550]
Variation to which the money-unit is exposed from the imposition of coinage,[551]
When coinage is imposed, bullion must be cheaper than coin,[——]
Exception from this rule,[552]
Variation to which the money-unit is exposed by the arbitrary operations of Princes in raising and debasing the coin,[——]
Chap. VI. How the variations in the intrinsic value of the unit of money must affect all the domestic interests of a nation,[553]
How this variation affects the interests of debtors and creditors,[——]
A mistake of Mr. Locke,[555]
When the value of the unit is diminished, creditors lose; when it is augmented, debtors lose,[556]
Chap. VII. Of the disorder in the British coin, so far as it occasions the melting down or the exporting of the specie,[558]
Defects in the British coin,[——]
Of the standard of the English coin and money-unit,[——]
A pound sterling by statute contains 1718.7 grains troy fine silver,[559]
The guinea 118.644 grains fine gold,[——]
Coinage in England free,[——]
The standard not attached to the gold coin till the year 1728,[560]
Consequences of this regulation to debase the standard,[——]
That debtors will not pay in silver but in gold,[——]
That some people consider coin as money of accompt,[561]
Others consider it as a metal,[——]
Operations of money-jobbers, when the coin deviates from the market proportion of the metals, or from the legal weight,[562]
They melt down when the metals in it are wrong proportioned,[——]
And when the coin is of unequal weight,[——]
Why silver bullion is dearer than coin,[——]
Because that species has risen in the market price as bullion, and not as coin,[563]
What regulates the price of bullion?[564]
1. The intrinsic value of the currency,[——]
2. A demand for exporting bullion,[565]
3. Or for making of plate,[——]
Exchange raises, and the mint price brings down bullion,[——]
Continuation of the operations of money-jobbers: their rule for melting the coin,[566]
The price in guineas equal to the price of shillings of 65 in the pound troy,[——]
When guineas may be melted down with profit,[——]
Silver is exported preferably to gold,[567]
This hurtful, when done by foreigners,[——]
Chap. VIII. Of the disorder in the British coin, so far as it affects the value of the pound sterling currency,[568]
Two legal pounds sterling in England,[——]
And several others, in consequence of the wearing of the coin,[569]
Why any silver coin remains in England,[——]
Value of a pound sterling current determined by the operations of trade,[——]
To the mean value of all the currencies,[570]
Exchange a good measure for the value of a pound sterling,[——]
The use of paper money not hurtful in debasing the standard,[571]
The pound sterling not regulated by statute, but by the mean value of the current money,[——]
Why exchange appears so commonly against England,[——]
How the market price of bullion shews the value of the pound sterling,[——]
Shillings at present weigh no more than 165 of a pound troy,[572]
And are worn 4.29 troy grains lighter than their standard weight,[——]
A pound sterling worth, at present, no more than 1638 grains troy fine silver, according to the price of bullion,[573]
And according to the course of exchange,[——]
Shillings coined at 65 in the pound troy, would be in proportion with the gold,[574]
Which shews that the standard has been debased,[——]
And that the preserving it where it is, is no new debasement,[——]
Proof that the standard has been debased by law,[575]
And is at present reduced to the value of the gold,[——]
Chap. IX. Historical account of the variations of the British coin,[576]
Purport of this treatise not to dictate, but to inquire,[——]
How the disorder in the coin may be remedied without inconveniences,[——]
By making the nation itself choose the remedy,[577]
If the present standard is departed from, every other that might be pitched on is arbitrary,[——]
People imagine the present standard is the same with that of Queen Elizabeth,[578]
Debasements of the standard during the reformation,[——]
Raised by Edward VI.[——]
Debased by Elizabeth,[——]
Supported by her successors,[——]
Until it was debased by the clipping, after the revolution,[579]
Lowndes’s scheme refuted by Locke: the standard raised to that of Elizabeth, and the consequences of that measure,[580]
Silver has been rising from the beginning of this century,[——]
The English standard has been debased by law, since 1726,[——]
The trading interest chiefly to be blamed for this neglect,[581]
Debasing the standard chiefly affects permanent contracts,[——]
And prevents prices from rising as they should do,[——]
Chap. X. Of the disorder of the British coin, so far as it affects the circulation of gold and silver coin, and of the consequences of reducing guineas to twenty shillings,[582]
Why silver coin is so scarce,[583]
Consequences of fixing the guineas at 20 shillings, with regard to circulation,[——]
Will make coin disappear altogether,[584]
How light shillings are bought by weight,[——]
Consequences as to the circulation with merchants and bankers,[585]
That guineas would still pass current for 21 shillings,[——]
That the standard would be affixed to the light silver, as it was in the year 1695,[——]
That merchants would gain by it,[586]
Debtors would be ruined,[——]
Consequences as to the bank,[——]
Reducing guineas to 20 shillings is the same as making them a commodity,[587]
Chap. XI. Method of restoring the money-unit to the standard of Elizabeth, and the consequences of that revolution,[——]
How to fix the pound sterling at the standard of Queen Elizabeth,[——]
The consequences of this reformation will be to raise the standard 5 per cent.[588]
Every interest in a nation equally intitled to protection,[589]
Those who suffer by the debasement of the standard,[——]
Ought only to benefit by the restitution,[590]
And not the whole class of creditors,[——]
Whose claim ought to be liable to a conversion,[591]
According to justice and impartiality,[——]
Chap. XII. Objections stated against the principles laid down in this inquiry, and answers to them,[592]
That a pound will always be considered as a pound,[593]
That the standard is not debased at present, being fixed to the statute, not to the coin,[——]
That the pound sterling is virtually worth 1718.7 grains fine silver,[——]
That these principles imply a progressive debasement of the standard every new coinage,[594]
That the same argument holds for debasing the standard measures of weights, capacity, &c.[——]
That the wearing of the coin falls on them who possess it at the crying down, but does not debase the standard,[——]
That inland dealings, not the price of bullion, or course of exchange, regulate the standard,[——]
That public currency supports the value of the coin,[——]
That this scheme is the same with that of Lowndes,[——]
Answers to these objections,[595]
That a pound will be considered at its worth by all debtors, and by those who buy,[——]
If the standard was affixed to the statute, people would be obliged to pay by weight,[——]
No body can be obliged to pay 1718.7 grains fine silver for a pound sterling,[596]
That it is not the regulation of the mint, but the disorder of the coin which must debase the standard,[——]
That people are obliged to measure by the standard weight, but are not obliged to pay by the standard pound,[597]
That the loss upon light money when called in, does not fall upon the possessors,[——]
That inland dealings cannot support the standard where there are money-jobbers or foreign commerce,[599]
That public currency supports the authority of the coin, not the value of the pound sterling,[601]
That the scheme is similar, though not the same with that of Lowndes,[602]
Lowndes reasoned upon wrong principles,[——]
Locke attended to supporting the standard, without attending to the consequences,[——]
Political circumstances are greatly changed,[604]
Reconciliation of the two opinions,[606]
The question in dispute is not understood,[607]
The true characteristic of a change upon the standard is not attended to,[——]
Principles will not operate their effects without the assistance of the state,[608]
When people understand one another, they soon agree,[——]
Permanent contracts are confounded with sale in the dispute,[609]
The interest of creditors is always the predominant, and determines the opinion of a nation,[611]
Application of principles to the operation the Dutch have lately made upon their coin,[612]
All decisions in political questions depend upon circumstances,[613]
Chap. XIII. In what sense the standard may be said to have been debased by law; and in what sense it may be said to have suffered a gradual debasement by the operation of political causes,[614]
These proportions appear contradictory,[——]
Debased by law, when affixed to the gold,[615]
Effects which the changing the proportion of the metals has upon melting the coin, and regulating payments,[——]
Payments made by bankers regulate all others,[——]
The standard gradually debased by the rising of the silver,[616]
The proportion of the metals in 1728, supposed to have been as 15.21 is to 1.,[——]
By what progression the silver standard has been debased,[——]
The standard of Elizabeth, for the pound sterling, was 1718.7 grains silver, and 157.6 ditto gold, both fine,[617]
The gold standard of her pound worth, at present, 2285.5 grains fine silver,[——]
The variation of the metals has produced three different standards of Elizabeth,[——]
One worth £ 1 0 11⅜ present currency,[618]
Another worth £ 1 7 10⅞ ditto,[——]
And a third worth £ 1 4 5⅛ ditto,[——]
The last is the true standard of Elizabeth for the pound sterling, and worth at present 2002 grains fine silver, and 138 ditto gold,[——]
But may vary at every moment,[619]
Gold rose during the whole 17th century,[——]
And silver has risen since the beginning of this century,[——]
Some positions recapitulated,[620]
Chap. XIV. Circumstances to be attended to in a new regulation of the British coin,[621]
The adopting of the standard of Elizabeth, has an air of justice,[——]
Advantages of that of Mary I.,[——]
Conversions necessary in every case,[622]
Every interest within the state to be examined,[——]
Landed interest examined,[——]
Interest of the public creditors examined,[625]
Interest of trade examined,[628]
Interest of buyers and sellers examined,[——]
Interest of the bank examined,[629]
Inconveniences attending all innovations,[632]
Argument for preserving the standard at the present value,[——]
That every change must either hurt the bank, or the public creditors,[——]
A more easy method of making a change upon the standard,[633]
Chap. XV. Regulations which the principles of this inquiry point out as expedient to be made, by a new statute for regulating the British coin,[634]
1. Regulation as to the standard,[——]
2. As to the weight,[——]
3. Mint price,[——]
4. Denominations,[635]
5. Marking the weight on the coins,[——]
6. Liberty to stipulate payment in gold or silver,[——]
7. Creditors may demand payment, half in gold, and half in silver,[——]
8. Regulations as to sale,[——]
9. Ditto as to payments to and from banks, &c.,[——]
10. All coin to be of full weight, when paid away,[——]
11. Liberty to melt or export coin, but death to clip or wash,[——]
12. Rule for changing the mint price of the metals,[636]
13. When to change the mint price,[——]
14. Rule for changing the denomination of the coins,[——]
15. How contracts are to be acquitted, after a change of the denomination has taken place,[——]
16. The weight of the several coins never to be changed, except upon a general recoinage of one denomination at least,[638]
How these regulations will preserve the same value to the pound sterling at all times, and how fractions in the denomination of coin may be avoided,[——]
17. Small coins to be current only for 20 years, and large coins for 40 years, or more,[639]
18. All foreign coins to pass for bullion only,[——]
Consequences of these regulations,[——]

AN

INQUIRY

INTO THE

PRINCIPLES OF POLITICAL OECONOMY.


BOOK I.
OF POPULATION AND AGRICULTURE.


INTRODUCTION.

Oeconomy in general is the art of providing for all the wants of a family, with prudence and frugality.

If any thing necessary or useful is found wanting, if any thing provided is lost or misapplied, if any servant, any animal, is supernumerary or useless, if any one sick or infirm is neglected, we immediately perceive a want of oeconomy. The object of it, in a private family, is therefore to provide for the nourishment, the other wants, and the employment of every individual. In the first place, for the master, who is the head, and who directs the whole; next for the children, who interest him above all other things; and last for the servants, who being useful to the head, and essential to the well-being of the family, have therefore a title to become an object of the master’s care and concern.

The whole oeconomy must be directed by the head, who is both lord and steward of the family. It is however necessary, that these two offices be not confounded with one another. As lord, he establishes the laws of his oeconomy; as steward, he puts them in execution. As lord, he may restrain and give his commands to all within the house as he thinks proper; as steward, he must conduct with gentleness and address, and is bound by his own regulations. The better the oeconomist, the more uniformity is perceived in all his actions, and the less liberties are taken to depart from stated rules. He is no ways master to break through the laws of his oeconomy, although in every respect he may keep each individual within the house, in the most exact subordination to his commands. Oeconomy and government, even in a private family, present therefore two different ideas, and have also two different objects.

What oeconomy is in a family, political oeconomy is in a state: with these essential differences however, that in a state there are no servants, all are children: that a family may be formed when and how a man pleases, and he may establish what plan of oeconomy he thinks fit; but states are found formed, and the oeconomy of these depends upon a thousand circumstances. The statesman (this is a general term to signify the head, according to the form of government) is neither master to establish what oeconomy he pleases, or in the exercise of his sublime authority to overturn at will the established laws of it, let him be the most despotic monarch upon earth.

The great art therefore of political oeconomy is, first to adapt the different operations of it to the spirit, manners, habits, and customs of the people, and afterwards to model these circumstances so, as to be able to introduce a set of new and more useful institutions.

The principal object of this science is to secure a certain fund of subsistence for all the inhabitants, to obviate every circumstance which may render it precarious; to provide every thing necessary for supplying the wants of the society, and to employ the inhabitants (supposing them to be freemen) in such a manner as naturally to create reciprocal relations and dependencies between them, so as to make their several interests lead them to supply one another with their reciprocal wants.

If one considers the variety which is found in different countries, in the distribution of property, subordination of classes, genius of people, proceeding from the variety of forms of government, laws, and manners, one may conclude, that the political oeconomy in each must necessarily be different, and that principles, however universally true, may become quite ineffectual in practice, without a sufficient preparation of the spirit of a people.

It is the business of a statesman to judge of the expediency of different schemes of oeconomy, and by degrees to model the minds of his subjects so as to induce them, from the allurement of private interest, to concur in the execution of his plan.

The speculative person, who removed from the practice, extracts the principles of this science from observation and reflection, should divest himself, as far as possible, of every prejudice, in favour of established opinions, however reasonable, when examined relatively to particular nations: he must do his utmost to become a citizen of the world, comparing customs, examining minutely institutions which appear alike, when in different countries they are found to produce different effects: he should examine the cause of such differences with the utmost diligence and attention. It is from such inquiries that the true principles are discovered.

He who takes up the pen upon this subject, keeping in his eye the customs of his own or any other country, will fall more naturally into a description of one particular system of it, than into an examination of the principles of the science in general: he will applaud such institutions as he finds rightly administred at home; he will condemn those which are administred with abuse; but, without comparing different methods of executing the same plan in different countries, he will not easily distinguish the disadvantages[disadvantages] which are essential to the institution, from those which proceed from the abuse. For this reason a land tax excites the indignation of a Frenchman, an excise that of an Englishman. One who looks into the execution of both, in each country, and in every branch of management, will discover the real effects of these impositions, and be able to distinguish what proceeds from abuse, from what is essential to the burden.

Nothing is more effectual towards preparing the spirit of a people to receive a good plan of oeconomy, than a proper representation of it. On the other hand, nothing is better calculated to keep the statesman, who is at the head of affairs, in awe.

When principles are well understood, the real consequences of burdensome institutions are clearly seen: when the purposes they are intended for, are not obtained, the abuse of the statesman’s administration appears palpable. People then will not so much cry out against the imposition, as against the misapplication. It will not be a land tax of four shillings in the pound, nor an excise upon wines and tobacco, which will excite the murmurs of a nation; it will be the prodigal dissipation and misapplication of the amount of these taxes after they are laid on. But when principles are not known, all inquiry is at an end, the moment a nation can be engaged to submit to the burden. It is the same with regard to every other part of this science.

Having pointed out the object of my pursuit, I shall only add, that my intention is to attach myself principally to a clear deduction of principles, and a short application of them to familiar examples, in order to avoid abstraction as much as possible. I farther intend to confine myself to such parts of this extensive subject, as shall appear the most interesting in the general system of modern politics, of which I shall treat with that spirit of liberty, which reigns more and more every day, throughout all the polite and flourishing nations of Europe.

When I compare the elegant performances which have appeared in Great Britain and in France with my dry and abstracted manner of treating the same subject, in a plain language void of ornament, I own I am discouraged on many accounts. If I am obliged to set out by laying down as fundamental principles the most obvious truths, I dread the imputation of pedantry, and of pretending to turn common sense into science. If I follow these principles through a minute detail, I may appear trifling. I therefore hope the reader will believe me, when I tell him, that these defects have not escaped my discernment, but that my genius, the nature of the work, and the connection of the subject, have obliged me to write in an order and in a stile where every thing has been sacrificed to perspicuity.

My principal aim shall be to discover truth, and to enable my reader to touch the very link of the chain where I may at any time go astray.

My business shall not be to seek for new thoughts, but to reason consequentially; and if any thing new be found, it will be in the conclusions.

Long steps in political reasoning lead to error; close reasoning is tedious, and to many appears trivial: this however must be my plan, and my consolation is, that the further I advance, I shall become the more interesting.

Every supposition must be considered as strictly relative to the circumstances presupposed; and though, in order to prevent misapplication, and to avoid abstraction as much as possible, I frequently make use of examples for illustrating every principle; yet these, which are taken from matters of fact, must be supposed divested of every foreign circumstance inconsistent with the supposition.

I shall combat no particular opinion in such intricate matters; though sometimes I may pass them in review, in order to point out how I am led to differ from them.

I pretend to form no system, but by following out a succession of principles, consistent with the nature of man and with one another, I shall endeavour to furnish some materials towards the forming of a good one.

CHAP. I.
Of the Government of Mankind.

Man we find acting uniformly in all ages, in all countries, and in all climates, from the principles of self-interest, expediency, duty, or passion. In this he is alike, in nothing else.

These motives of human actions produce such a variety of combinations, that if we consider the several species of animals in the creation, we shall find the individuals in no class so unlike to one another, as man to man. No wonder then if people differ in opinion with regard to every thing which relates to man.

As this noble animal is a sociable creature, both from necessity and inclination, we also find, in all ages, climates and countries, a certain modification of government and subordination established among them. Here again we are presented with as great variety as there are different societies; all however agreeing in this, that the end of a voluntary subordination to authority is with a view to promote the general good.

Constant and uninterrupted experience has proved to man, that virtue and justice in those who govern, are sufficient to render the society happy, under any form of government. Virtue and justice when applied to government mean no more than a tender affection for the whole society, and an exact and impartial regard for the interest of every class.

All actions, and indeed all things, are good or bad only by relation. Nothing is so complex as relations when considered with regard to a society, and nothing is so difficult as to discover truth when involved and blended with these relations.

We must not conclude from this, that every operation of government becomes problematical and uncertain as to its consequences: some are evidently good; others are notoriously bad: the middle terms are always the least essential, and the more complex they appear to a discerning eye, the more trivial they are found to be in their immediate consequences.

A government must be continually in action, and one principal object of its attention must be, the consequences and effects of new institutions.

Experience alone will shew, what human prudence could not foresee; and mistakes must be corrected as often as expediency requires.

All governments have what they call their fundamental laws; but fundamental, that is, invariable laws, can never subsist among men, the most variable thing we know: the only fundamental law, salus populi, must ever be relative, like every other thing. But this is rather a maxim than a law.

It is however expedient, nay absolutely necessary, that in every state, certain laws be supposed fundamental and invariable: both to serve as a curb to the ambition of individuals, and to point out to the statesman the out-lines, or sketch of that plan of government, which experience has proved to be the best adapted to the spirit of his people.

Such laws may even be considered as actually invariable, while a state subsists without convulsions or revolutions: because then the alterations are so gradual, that they become imperceptible to all, but the most discerning, who compare the customs and manners of the same people in different periods of time and under different combinations of circumstances.

As we have taken for granted the fundamental maxim, that every operation of government should be calculated for the good of the people, so we may with equal certainty decide, that in order to make a people happy, they must be governed according to the spirit which prevails among them.

I am next to explain what I mean by the spirit of a people, and to shew how far this spirit must be made to influence the government of every society.


CHAP. II.
Of the Spirit of a People.

The spirit of a people is formed upon a set of received opinions relative to three objects; morals, government, and manners: these once generally adopted by any society, confirmed by long and constant habit, and never called in question, form the basis of all laws, regulate the form of every government, and determine what is commonly called the customs of a country.

To know a people we must examine them under those general heads. We acquire the knowledge of their morals with ease, by consulting the tenets of their religion, and from what is taught among them by authority and under direction.

The second, or government, is more disguised, as it is constantly changing from circumstances, partly resulting from domestic and partly from foreign considerations. A thorough knowledge of their history, and conversation with their statesmen, may give one, who has access to these helps, a very competent knowledge of this branch.

The last, or the knowledge of the manners of a people, is by far the most difficult to acquire, and yet is the most open to every person’s observation. Certain circumstances with regard to manners are supposed by every one in the country to be so well known, so generally followed and observed, that it seldom occurs to any body to inform a stranger concerning them. In one country nothing is so injurious as a stroke with a stick, or even a gesture which implies a design or a desire to strike[[B]]: in another a stroke is nothing, but an opprobrious expression is not to be borne[[C]]. An innocent liberty with the fair sex, which in one country passes without censure, is looked upon in another as the highest indignity[[D]].

[B]. France.

[C]. Germany.

[D]. Spain.

In general, the opinion of a people with regard to injuries is established by custom only, and nothing is more necessary in government, than an exact attention to every circumstance peculiar to the people to be governed.

The kingdom of Spain was lost for a violence committed upon chastity[[E]]; the city of Genoa for a blow[[F]]; the kingdoms of Naples and Sicily have ever been ready to revolt; because having been for many ages under the dominion of strangers, the people have never been governed according to the true spirit of their manners. Let us consult the revolutions of all countries, and we shall find, that the most trivial circumstances have had a greater influence on the event, than the more weighty reasons, which are always set forth as the real motives. I need not enlarge upon this subject, my intention is only to suggest an idea which any one may pursue, and which will be applied upon many occasions as we go along; for there is no treating any point which regards the political oeconomy of a nation, without accompanying the example with some supposition relative to the spirit of the people. I return.

[E]. By Roderigo, the last king of the Gothic line.

[F]. Given by an Austrian officer to a Genoese, which occasioned the revolt in 1747, by which the Germans were expelled the city.

I have said, that the most difficult thing to learn concerning a people, is the spirit of their manners. Consequently, the most difficult thing for a stranger to adopt, is their manner. Men acquire the language, nay even lose the foreign accent, before they lose the oddity of their manner. The reason is plain. The inclinations must be changed, the taste of amusement must be new modelled; established maxims upon government, manners, nay even upon some moral actions, must undergo certain new modifications, before the stranger’s conversation and behaviour becomes consistent with the spirit of the people with whom he lives.

From these considerations, we may find the reason, why nothing is more heavy to bear than the government of conquerors, in spite of all their endeavours to render themselves agreeable to the conquered. Of this experience has ever proved the truth, and princes are so much persuaded of it, that when a country is subdued in our days, or when it otherwise changes masters, there is seldom any question of altering, but by very slow degrees and length of time, the established laws and customs of the inhabitants. I might safely say, there is no form of government upon earth so excellent in itself, as, necessarily, to make the people happy under it. Freedom itself, imposed upon a people groaning under the greatest slavery, will not make them happy, unless it is made to undergo certain modifications, relative to their established habits.

Having explained what I mean by the spirit of a people, I come next to consider, how far this spirit must influence government.

If governments be taken in general, we shall find them analogous to the spirit of the people. But the point under consideration is, how a statesman is to proceed, when expediency and refinement require a change of administration, or when it becomes necessary from a change of circumstances.

The great alteration in the affairs of Europe within these three centuries, by the discovery of America and the Indies, the springing up of industry and learning, the introduction of trade and the luxurious arts, the establishment of public credit, and a general system of taxation, have entirely altered the plan of government every where.

From feudal and military, it is become free and commercial. I oppose freedom in government to the feudal system, only to mark that there is not found now, that chain of subordination among the subjects, which made the essential part of the feudal form. The head there had little power, and the lower classes of the people little liberty. Now every industrious man, who lives with oeconomy, is free and independent, under most forms of government. Formerly, the power of the barons swallowed up the independency of all inferior classes. I oppose commercial to military, only because the military governments now are made to subsist from the consequences and effects of commerce: that is, from the revenue of the state, proceeding from taxes. Formerly, every thing was brought about by numbers; now, numbers of men cannot be kept together without money.

This is sufficient to point out the nature of the revolution in the political state, and of consequence in the manners of Europe.

The spirit of a people changes no doubt of itself, but by slow degrees. The same generation commonly adheres to the same principles, and retains the same spirit. In every country we find two generations upon the stage at a time; that is to say, we may distribute into two classes the spirit which prevails; the one amongst men between twenty and thirty, when opinions are forming; the other of those who are past fifty, when opinions and habits are formed and confirmed. A person of judgment and observation may foresee many things relative to government, from an exact application to the rise and progress of new customs and opinions, provided he preserve his mind free from all attachments and prejudices, in favour of those which he himself has adopted, and in that delicacy of sensation necessary to perceive the influence of a change of circumstances. This is the genius proper to form a great statesman.

In every new step the spirit of the people should be first examined, and if that be not found ripe for the execution of the plan, it ought to be put off, kept entirely secret, and every method used to prepare the people to relish the innovation.

The project of introducing popery into England was blown before it was put in practice, and so misgave. Queen Elizabeth kept her own secret, and succeeded in a similar attempt. The scheme of a general excise was pushed with too much vivacity, was made a matter of party, ill-timed, and the people nowise prepared for it; hence it will be the more difficult to bring about at another time, without the greatest precautions.

In turning and working upon the spirit of a people, nothing is impossible to an able statesman. When a people can be engaged to murder their wives and children, and to burn themselves, rather than submit to a foreign enemy, when they can be brought to give their most precious effects, their ornaments of gold and silver, for the support of a common cause; when women are brought to give their hair to make ropes, and the most decrepit old men to mount the walls of a town for its defence; I think I may say, that by properly conducting and managing the spirit of a people, nothing is impossible to be accomplished. But when I say, nothing is impossible, I must be understood to mean, that nothing essentially necessary for the good of the people is impossible; and this is all that is required in government.

That it requires a particular talent in a statesman to dispose the minds of a people to approve even of the scheme which is the most conducive to their interest and prosperity, appears from this; that we see examples of wise, rich and powerful nations languishing in inactivity, at a time when every individual is animated with a quite contrary spirit; becoming a prey to their enemies, like the city of Jerusalem, while they are taken up with their domestic animosities, only because the remedies proposed against these evils contradict the spirit of the times[[G]].

[G]. This was writ in the year 1756, about the time the island of Minorca was taken by the French.

The great art of governing is to divest one’s self of prejudices and attachments to particular opinions, particular classes, and above all to particular persons; to consult the spirit of the people, to give way to it in appearance, and in so doing to give it a turn capable of inspiring those sentiments which may induce them to relish the change, which an alteration of circumstances has rendered necessary.

Can any change be greater among free men, than from a state of absolute liberty and independency to become subject to constraint in the most trivial actions? This change has however taken place over all Europe within these three hundred years, and yet we think ourselves more free than ever our fathers were. Formerly a gentleman who enjoyed a bit of land knew not what it was to have any demand made upon him, but in virtue of obligations by himself contracted. He disposed of the fruits of the earth, and of the labour of his servants or vassals, as he thought fit. Every thing was bought, sold, transferred, transported, modified, and composed, for private consumption, or for public use, without ever the state’s being once found interested in what was doing. This, I say, was formerly the general situation of Europe, among free nations under a regular administration; and the only impositions commonly known to affect landed men were made in consequence of a contract of subordination, feudal or other, which had certain limitations; and the impositions were appropriated for certain purposes.

Daily experience shews, that nothing is more against the inclinations of a people, than the imposition of taxes; and the less they are accustomed to them, the more difficult it is to get them established.

The great abuse of governors in the application of taxes contributes not a little to augment and entertain this repugnancy in the governed: but besides abuse, there is often too little management used to prepare the spirits of the people for such innovations: for we see them upon many occasions submitting with chearfulness to very heavy impositions, provided they be well-timed, and consistent with their manners and disposition. A French gentleman, who cannot bear the thought of being put upon a level with a peasant in paying a land tax, pays contentedly, in time of war, a general tax upon all his effects, under a different name. To pay for your head is terrible in one country; to pay for light appears as terrible in another.

It often happens, that statesmen take the hint of new impositions from the example of other nations, and not from a nice examination of their own domestic circumstances. But when these are rightly attended to, it becomes easy to discover the means of executing the same plan, in a way quite adapted to the spirit, temper, and circumstances of the people. When strangers are employed as statesmen, the disorder is still greater, unless in cases of most extraordinary penetration, temper, and above all flexibility and discretion.

Statesmen have sometimes recourse to artifice instead of reason, because their intentions often are not upright. This destroys all confidence between them and the people; and confidence is necessary when you are in a manner obliged to ask a favor, or when at least what you demand is not indisputably your right. A people thus tricked into an imposition, though expedient for their prosperity, will oppose violently, at another time, a like measure, even when essential to their preservation.

At other times, we see statesmen presenting the allurement of present ease, precisely at the time when people’s minds are best disposed to receive a burden. I mean when war threatens, and when the mind is heated with a resentment of injuries. Is it not wonderful, at such a time as this, to increase taxes only in proportion to the interest of money wanted; does not this imply a shortsightedness, or at least an indifference as to what is to come? Is it not more natural, that a people should consent to come under burdens to gratify revenge, than submit to repay a large debt when their minds are in a state of tranquillity.

From the examples I have given, I hope what I mean by the spirit of a people is sufficiently understood, and I think I have abundantly shewn the necessity of its being properly disposed, in order to establish a right plan of oeconomy. This is so true, that many examples may be found, of a people’s rejecting the most beneficial institutions, and even the greatest favors, only because some circumstance had shocked their established customs. No wonder then, if we see them refuse to come under limitations, restraints and burdens, when the utmost they can be flattered with from them, is a distant prospect of national good.

I have found it necessary to premise these general reflections, in order to obviate many objections which might naturally enough occur in the perusal of this inquiry. I shall have occasion to make a number of suppositions, and to draw consequences from them, which are abundantly natural, if a proper spirit in the people be presupposed, but which would be far from being natural without this supposition. I suppose, for example, that a poor man, loaded with many children, would be glad to have the state maintain them; that another, who has wasted lands, would be obliged to one who would gratuitously build him a farm-house upon it. Yet in both suppositions I may prove mistaken; for fathers there are, who would rather see their children dead than out of their hands; and proprietors are to be found, who, for the sake of hunting, would lay the finest country in Europe into a waste.

In order to communicate an adequate idea of what I understand by political oeconomy, I have explained the term, by pointing out the object of the art; which is, to provide food, other necessaries, and employment to every one of the society.

This is a very simple and a very general method of defining a most complicated operation.

To provide a proper employment for all the members of a society, is the same as to model and conduct every branch of their concerns.

Upon this idea, I think, may be formed the most extensive basis for an inquiry into the principles of political oeconomy.

The next thing to be done, is to fall upon a distinct method of analysing so extensive a subject, by contriving a train of ideas, which may be directed towards every part of the plan, and which, at the same time, may be made to arise methodically from one another.

For this purpose I have taken a hint from what the late revolutions in the politics of Europe have pointed out to be the regular progress of mankind, from great simplicity to complicated refinement.

This first book shall then set out by taking up society in the cradle, as I may say. I shall then examine the principles which influence their multiplication, the method of providing for their subsistence, the origin of their labour, the effects of their liberty and slavery, the distribution of them into classes, with some other topics which relate to mankind in general.

Here we shall find the principles of industry influencing the multiplication of mankind, and the cultivation of the soil. This I have thrown in on purpose to prepare my reader for the subject of the second book; where he will find the same principle (under the wings of liberty) providing an easy subsistence for a numerous populace, by the means of trade, which sends the labour of an industrious people over the whole world.

From the experience of what has happened these last two hundred years, we find to what a pitch the trade and industry of Europe has increased alienations, and the circulation of money. I shall, therefore, closely adhere to these, as the most immediate consequences of the preceding improvement; and, by analysing them, I shall form my third book, in which I intend to treat of credit.

We see also how credit has engaged nations to avail themselves of it in their wars, and how, by the use of it, they have been led to contract debts; which they never can satisfy and pay, without imposing taxes. The doctrine then of debts and taxes will very naturally follow that of credit in this great chain of political consequences.

By this kind of historical clue, I shall conduct myself through the great avenues of this extensive labyrinth; and in my review of every particular district, I shall step from consequence to consequence, until I have penetrated into the utmost recesses of my own understanding.

When a subject is broken off, I shall render my transitions as gradual as I can, by still preserving some chain of connexion; and although I cannot flatter myself (in such infinite variety of choice, as to order and distribution) to hit off, at all times, that method, which may appear to every reader the most natural and the most correct, yet I shall spare no pains in casting the materials into different forms, so as to make the best distribution of them in my power.


CHAP. III.
Upon what Principles, and from what natural Causes do Mankind multiply? And what are the effects of Procreation in Countries where Numbers are not found to increase?

The multiplication of mankind has been treated of in different ways; some have made out tables to shew the progression of multiplications, others have treated the question historically. The state of numbers in different ages of the world, or in different countries at different times, has been made the object of inquiry; and the most exact scrutiny into antient authors, the means of investigating the truth of this matter. All passages relative to the subject have been laid together, and accompanied with glosses and interpretations the most plausible, in order to determine the main question. The elaborate performances of Mr. Hume, and Mr. Wallace, who have adopted opposite opinions in regard to the populousness of the antient world, have left nothing new to be said upon this subject; at least the application they appear to have given in examining the antients, is a great discouragement to any one who might otherwise still flatter himself, there, to find out circumstances proper to cast a new light upon the question.

My intention in this chapter is not to decide, nor even to give my opinion upon that matter, far less to combat the arguments advanced on either side. I am to consider the question under a different point of view; not to enquire what numbers of people were found upon the earth at a certain time, but to examine the natural and rational causes of multiplication. If we can discover these, we may perhaps be led to judge how far they might have operated in different ages and in different countries.

The fundamental principle of the multiplication of all animals, and consequently of man, is generation; the next is food: generation gives existence, food preserves it. Did the earth produce of itself the proper nourishment for man, with unlimited abundance, we should find no occasion to labour in order to procure it. Now in all countries found inhabited, as in those which have been found desolate, if the state of animals be inquired into, the number of them will be found in proportion to the quantity of food produced by the earth, regularly throughout the year, for their subsistence. I say, regularly throughout the year, because we perceive in those animals which produce in great abundance, such as all the feathered genus, that vast multitudes are destroyed in winter; they are brought forth with the fruits of the earth, and fall in proportion. This principle is so natural, that I think it can hardly be controverted.

As to man, the earth does not spontaneously produce nourishment for him in any considerable degree. I allow that as some species of animals support life by devouring others, so may man; but it must be observed, that the species feeding must always be much inferior in number to the species fed upon. This is evident in reason and in fact.

Were the earth therefore uncultivated, the numbers of mankind would not exceed the proportion of the spontaneous fruits which she offers for their immediate use, or for that of the animals which might be the proper nourishment of man.

There is therefore a certain number of mankind which the earth would be able to maintain without any labour: allow me to call this quantity (A). Does it not, from this exposition of the matter, appear plain, that without labour (A) never can increase any more than animals, which do not work for themselves, can increase beyond the proportion of food provided for them by nature? Let it be however observed, that I do not pretend to limit (A) to a determined number. The seasons will no doubt influence the numbers of mankind, as we see they influence the plenty of other animals; but I say (A) will never increase beyond the fixed proportion above-mentioned.

Having resolved one question with regard to multiplication, and shewn that numbers must become greater or smaller according to the productions of nature, I come to the second thing proposed to be treated of in the chapter: to wit, what will become of the generative faculty after it has produced the full proportion of (A), and what effects will afterwards follow.

We see how beneficent, I might have said prodigal, nature is, in bestowing life by generation. Several kinds of animals, especially insects, multiply by thousands, and yet the species does not appear annually to increase. No body can pretend that particular individuals of any species have a privilege to live, and that others die from a difference in their nature. It is therefore reasonable to conclude, that what destroys such vast quantities of those produced, must be, among other causes, the want of food. Let us apply this to man.

Those who are supposed to be fed with the spontaneous fruits of the earth, cannot, from what has been said, multiply beyond that proportion; at the same time the generative faculty will work its natural effects in augmenting numbers. The consequence will be, that certain individuals must become worse fed, consequently weaker; consequently, if in that weakly state, nature should withold a part of her usual plenty, the whole multitude will be affected by it; a disease may take place, and sweep off a far greater number than that proportioned to the deficiency of the season. What results from this? That those who have escaped, finding food more plentiful, become vigorous and strong; generation gives life to additional numbers, food preserves it, until they rise up to the former standard.

Thus the generative faculty resembles a spring loaded with a weight, which always exerts itself in proportion to the diminution of resistance: when food has remained some time without augmentation or diminution, generation will carry numbers as high as possible; if then food come to be diminished, the spring is overpowered; the force of it becomes less than nothing. Inhabitants will diminish, at least, in proportion to the overcharge. If upon the other hand, food be increased, the spring which stood at 0, will begin to exert itself in proportion as the resistance diminishes; people will begin to be better fed; they will multiply, and in proportion as they increase in numbers, the food will become scarce again.

I must here subjoin a remark very analogous to this subject. That the generative faculty in man (which we have compared to a spring) and the care and love we have for our children, first prompt us to multiply, and then engage us to divide what we have with our little ones. Thus from dividing and subdividing it happens, that in every country where food is limited to a certain quantity, the inhabitants must be subsisted in a regular progression, descending down from plenty and ample subsistence, to the last periods of want, and even sometimes starving for hunger.

Although the examples of this last extremity are not common in some countries, yet I believe they are more so than is generally imagined; and the other stages of want are productive of many diseases, and of a decay which extinguishes the faculty of generation, or which weakens it, so as to produce children less vigorous and less healthy. I appeal to experience, if this reasoning be not just.

Put two or three pairs of rabbits into a field proper for them, the multiplication will be rapid; and in a few years the warren will be stocked: you may take yearly from it a hundred pairs, I shall suppose, and keep your warren in good order: give over taking any for some years, you will perhaps find your original stock rather diminished than increased, for the reasons above mentioned. Africa yearly furnishes many thousands for the cultivation of America; in this she resembles the warren. I have little doubt but that if all her sons were returned to her, by far the greater part would die of hunger.


CHAP. IV.
Continuation of the same Subject, with regard to the natural and immediate effects of Agriculture, as to Population.

I proceed in my examination. I now suppose man to add his labour and industry to the natural activity of the soil: in so far, as by this he produces an additional quantity of food, in so far he lays a foundation for the maintenance of an additional number. This number I shall call (B). From this I conclude, that as (A) is in a constant proportion to the spontaneous fruits, so (B) must be in proportion to agriculture (by this term I understand at present every method of augmenting food by labour) consequently the number maintained by the labour of mankind must be to the whole number of mankind as (B) is to (A + B), or as (B) is to (A) and (B) jointly.

By this operation we find mankind immediately divided into two classes; those who, without working, live upon the spontaneous fruits of the earth; that is, upon milk, cattle, hunting, &c. The other part, those who are obliged to labour the soil. It is proper next to inquire what should naturally oblige a man to labour; and what are the natural consequences of it as to multiplication.

We have already said, that the principle of generation is inherent in man, and prompts him to multiply. Another principle, as naturally inherent in the mind, as the first is in the body, is self-love, or a desire of ease and happiness, which prompts those who find in themselves any superiority; whether personal, or political, to make use of every natural advantage. Consequently, such will multiply proportionably: because by appropriating to themselves the fruits of the earth, they have the means of subsisting their offspring. The others, I think, will very naturally become their servants; as this method is of all others the most easy to procure subsistence. This is so analogous to the nature of man, that we see every where, even among children, that the smallest superiority in any one over the rest, constantly draws along with it a tribute of service in one way or other. Those who become servants for the sake of food, will soon become slaves: for slavery is but the abuse of service, established by a civil institution; and men who find no possibility of subsisting otherwise, will be obliged to serve upon the conditions prescribed to them.

This seems a consequence not unnatural in the infancy of the world: yet I do not pretend to affirm that this was the origin of slavery. Servants, however, there have always been; and the abuse of service is what we understand by slavery. The subordination of children to their parents, and of servants to their masters, seems to be the most rational origin of society and government. The first of these is natural, and follows as the unavoidable consequence of an entire dependence[dependence]: the second is political, and may very naturally take place as to those who cannot otherwise procure subsistence. This last species of subordination may, I think, have taken place, the moment man became obliged to labour for subsistence, but no sooner.

The wants of man are not confined to food, merely. When food is to be produced from the rude surface of the earth, a great part of his time must be taken up with this object, even supposing him to be provided with every utensil proper for the exercise of his industry: he must therefore be in a worse condition to provide for his other wants: consequently, he may be willing to serve any one who will do it for him. Whereas on the other hand, if we suppose all mankind idle and fed, living upon the spontaneous fruits of the earth, the plan of universal liberty becomes quite natural: because under such circumstances they find no inducement to come under a voluntary subordination.

Let us now borrow the idea of a primitive society, of a government, of a king, from the most antient history we have, the better to point out the effects of agriculture and multiplication. The society is the whole taken together; it is Jacob, his sons, their wives, their children, and all the servants. The government regards the institutions prescribed by Jacob, to every one of the family, concerning their respective subordination and duty. Multiplication will here go forward, not in proportion to the generative faculty, but according to the employment of the persons already generated. If Jacob continue pasturing his herds, he must extend the limits of his right of pasture; he must multiply his stock of cattle, in proportion as the mouths of his family augment. He is charged with all this detail: for he is master, and director, and statesman, and general provider. His servants will work as they are ordered; but if he has not had the proper foresight, to break up lands so soon as his family comes nearly up to that proportion which his flocks can easily feed; if in this case, a dry season should burn up the grass in Palestine, he will be obliged to send some of his stock of cattle, with some of his family, to market, there to be sold; and with the price he must buy corn. For in this early age, there was money, there were manufacturers of sackcloth, of common rayment, and of party-coloured garments; there was a trade in corn, in spicery, balm, and myrrh. Jacob and his family were shepherds, but they lived not entirely on flesh; they eat bread: consequently there was tillage in those days, though they exercised none. The famine however was ready to destroy them, and probably would have done it, but for the providential circumstance of Joseph’s being governor of Egypt. He relieved their distress, he gave to his family the best country in the whole kingdom for pasture; and they had a gratuitous supply of bread.

No doubt, so long as these favourable circumstances subsisted, multiplication would go on apace. What supernatural assistance God was pleased to grant for the increase of his chosen people, does not concern my inquiry.

I have mentioned transiently this example of the patriarch, only to point out how antient the use of money, the invention of trade and manufactures appear to have been. Without such previous establishments, I consider mankind as savages, living on the spontaneous fruits of the earth, as in the first supposition; and confined, as to numbers, to the actual extent of these productions.

From what has been said, we may conclude, that the numbers of mankind must depend upon the quantity of food produced by the earth for their nourishment; from which, as a corollary, may be drawn,

That mankind have been, as to numbers, and must ever be, in proportion to the food produced; and that the food produced will be in the compound proportion of the fertility of the climate, and the industry of the inhabitants.

From this last proposition it appears plain, that there can be no general rule for determining the number of inhabitants necessary for agriculture, not even in the same country. The fertility of the soil when laboured; the ease of labouring it; the quantity of good spontaneous fruits; the plenty of fish in the rivers and sea; the abundance of wild birds and beasts; have in all ages, and ever must influence greatly the nourishment, and, consequently, regulate the multiplication of man, and determine his employment.

To make an establishment in a country not before inhabited, to root out woods, destroy wild and venomous animals, drain marshy grounds, give a free course to water, and to lay down the surface into corn fields, must surely require more hands than to cultivate the same after it is improved. For the truth of this, I appeal to our American brethren.

We may therefore conclude, that the most essential requisite for population, is that of agriculture, or the providing of subsistence. Upon this all the rest depends: while subsistence is upon a precarious footing, no statesman can turn his attention to any thing else.

The great importance of this object has engaged some to imagine, that the luxurious arts, in our days, are prejudicial both to agriculture and multiplication. It is sometimes a loss to fix one’s attention too much upon any one object, however important. No body can dispute that agriculture is the foundation of multiplication, and the most essential requisite for the prosperity of a state. But it does not follow from this, that almost every body in the state should be employed in it; that would be inverting the order of things, and turning the servant into the master. The duty and business of man is not to feed; he is fed, in order to do his duty, and to become useful.

It is not sufficient for my purpose to know, that the introduction of agriculture, by multiplying the quantity of the earth’s productions, does evidently tend to increase the numbers of mankind. I must examine the political causes which must concur, in order to operate this effect.

For this purpose, my next inquiry shall be directed towards discovering the true principles which influence the employment of man, with respect to agriculture. I shall spare no pains in examining this point to the bottom, even though it should lead me to anticipate some branches of my subject.

I shall endeavour to lay down principles consistent with the nature of man, with agriculture, and with multiplication, in order, by their means, to discover both the use and abuse of the two last. When these parts are well understood, the rest will go on more smoothly, and I shall find the less occasion to interrupt my subject, in order to explain the topics upon which the whole depends.


CHAP. V.
In what Manner, and according to what Principles, and political Causes, does Agriculture augment Population?

I have already shewn, how the spontaneous fruits of the earth provide a fund of nourishment for a determined number of men, and I have slightly touched upon the consequences of adding labour to the natural activity of the soil.

Let me now carry this inquiry a little farther. Let me suppose a country fertile in spontaneous productions, capable of improvements of every kind, inhabited by a people living under a free government, and in the most refined simplicity, without trade, without the luxurious arts, and without ambition. Let me here suppose a statesman, who shall inspire a taste for agriculture and for labour into those who formerly consumed the spontaneous fruits of the earth in ease and idleness. What will become of this augmentation of food produced by this additional labour?

The sudden increase of food, such as that here supposed, will immediately diffuse vigour into all; and if the additional quantity be not very great, no superfluity will be found. No sooner will the inhabitants be fully nourished, but they will begin to multiply a-new; then they will come to divide with their children, and food will become scarce again.

Thus much is necessary for the illustration of one principle; but the effects, which we have been pointing out, will not be produced barely by engaging those who lived by hunting (I suppose) to quit that trade, and turn farmers. The statesman must also find out a method to make the produce of this new branch of industry circulate downwards, so as to relieve the wants of the most necessitous. Otherwise, the plenty produced, remaining in the hands of those who produced it, will become to them an absolute superfluity; which, had they any trade with a neighbouring state, they would sell, or exchange, and leave their fellow citizens to starve. And as we suppose no trade at all, this superfluity will perish like their cherries, in a year of plenty; and consequently the farmers will immediately give over working.

If, to prevent this inconveniency, the statesman forces certain classes to labour the soil, and, with discretion, distributes the produce of it to all that have occasion for subsistence, taking in return their services for the public benefit; this will prove an infallible way of multiplying inhabitants, of making them laborious, and of preserving a simplicity of manners; but it is also the picture of antient slavery, and is therefore excluded from the supposition.

If he acts consistently with that spirit of liberty, which we have supposed to animate his subjects, he has no method left, but to contrive different employments for the hands of the necessitous, that, by their labour, they may produce an equivalent which may be acceptable to the farmers, in lieu of this superfluity; for these last will certainly not raise it, if they cannot dispose of it; nor will they dispose of it, but for a proper equivalent. This is the only method (in a free state) of procuring additional food, and of distributing it through the society, as the price of those hours which before were spent in idleness: and, as this will prove a more certain and more extensive fund of subsistence, than the precarious productions of spontaneous fruits, which cannot be increased at discretion, and in proportion to demand, it will greatly increase numbers; but, on the other hand, it must evidently destroy that simplicity of manners which naturally reigns among nations who do not labour.

A people, therefore, who have an industrious turn, will multiply in proportion to the superfluity of their farmers; because the labour of the necessitous will prove an equivalent for it.

Now this additional number of inhabitants being raised and fed with the superfluity actually produced by the farmers, can never be supposed necessary for providing that quantity, which (though relatively to the farmers it be called a superfluity) is only a sufficiency relatively to the whole society; and, therefore, if it be found necessary to employ the new inhabitants also in farming, it must only be with a view to a still greater multiplication.

Farther, we may lay it down as a principle, that a farmer will not labour to produce a superfluity of grain relatively to his own consumption, unless he finds some want which may be supplied by means of that superfluity; neither will other industrious persons work to supply the wants of the farmer for any other reason than to procure subsistence, which they cannot otherwise so easily obtain. These are the reciprocal wants which the statesman must create, in order to bind the society together. Here then is one principle: Agriculture among a free people will augment population, only in proportion as the necessitous are put in a situation to purchase subsistence with their labour. I proceed.

If in any country which actually produces nourishment for its inhabitants, according to the progression above-mentioned, (p. 27.) a plan is set on foot for the extension of agriculture; the augmentation must be made to bear a due proportion to the progress of industry and wants of the people, or else an outlet must be provided for disposing of the superfluity. And if, at setting out, a foreign consumption cannot be procured for the produce of husbandry, the greatest caution must be had to keep the improvement of the soil within proper bounds: for, without this, the plan intended for an improvement will, by over-doing, turn out to the detriment of agriculture. This will be the case, if the fruits of the earth be made to increase faster than the numbers and the industry of those who are to consume them. For if the whole be not consumed, the regorging plenty will discourage the industry of the farmer.

But if, together with an encouragement to agriculture, a proper outlet be found for the superfluity, until the numbers and industry of the people, by increasing, shall augment the home-consumption, which again by degrees will diminish the quantity of exportation, then the spring will easily overcome the resistance; it will dilate; that is, numbers will continue to increase.

From this may be derived another principle: That agriculture, when encouraged for the sake of multiplying inhabitants, must keep pace with the progress of industry; or an out-let must be provided for all superfluity.

In the foregoing example, I have supposed no exportation, the more to simplify the supposition: I was, therefore, obliged to throw in a circumstance, in order to supply the want of it; to wit, an augmentation of inland demand from the suspension of hunting; and I have supposed those who formerly supported themselves by this, to consume the superfluous food of the farmers for the price of their labour. This may do well enough as a supposition, and has been made use of only to explain principles; but the manners of a people are not so easily changed; and therefore I have anticipated a little the supposition of trade, only to shew how it must concur with industry, in the advancement of agriculture and multiplication.

Let me next consider the consequences of an augmentation of agriculture in a country where the inhabitants are lazy; or where they live in such simplicity of manners, as to have few wants which labour and industry can supply. In this case, I say, the scheme of agriculture will not succeed; and, if set on foot, part of the grounds will soon become uncultivated again.

The laziest part of the farmers, disgusted with a labour which produces a plenty superfluous to themselves, which they cannot dispose of for any equivalent, will give over working, and return to their antient simplicity. The more laborious will not furnish food to the necessitous for nothing: such therefore who cannot otherwise subsist, will naturally serve the industrious, and thereby sell their service for food. Thus by the diminution of labour, a part of the country, proportional to the quantity of food which the farmers formerly found superfluous, will again become uncultivated.

Here then will be found a country, the population of which must stop for want of food; and which, by the supposition, is abundantly able to produce more. Experience every where shews the possible existence of such a case, since no country in Europe is cultivated to the utmost; and that there are many still, where cultivation, and consequently multiplication, is at a stop. These nations I consider as in a moral incapacity of multiplying: the incapacity would be physical, if there was an actual impossibility of their procuring an augmentation of food by any means whatsoever.

These principles seem to be confirmed by experience, whether we compare them with the manner of living among the free American savages, or among the free, industrious, and laborious Europeans. We find the productions of all countries, generally speaking, in proportion to the number of their inhabitants; and, on the other hand, the inhabitants are most commonly in proportion to the food.

I beg that this may not be looked upon as a quibble, or what is called a vicious circle. I have qualified the general proposition by subjoining that it is found true most commonly; and from what is to follow, we shall better discover both the truth and meaning of what is here advanced. While certain causes operate, food will augment, and mankind will increase in proportion; when these causes cease, procreation will not augment numbers; then the general proposition will take place; numbers and food will remain the same, and balance one another. This I imagine to be so in fact; and I hope to shew that it is rational also. Let me now put an end to this chapter, by drawing some conclusions from what has been laid down, in order to enlarge our ideas, and to enable us to extend our plan.

I. One consequence of a fruitful soil, possessed by a free people, given to agriculture, and inclined to industry, will be the production of a superfluous quantity of food, over and above what is necessary to feed the farmers. Inhabitants will multiply; and according to their increase, a certain number of the whole, proportional to such superfluity of nourishment produced, will apply themselves to industry and to the supplying of other wants.

II. From this operation produced by industry, we find the people distributed into two classes. The first is that of the farmers who produce the subsistence, and who are necessarily employed in this branch of business; the other I shall call free hands; because their occupation being to procure themselves subsistence out of the superfluity of the farmers, and by a labour adapted to the wants of the society, may vary according to these wants, and these again according to the spirit of the times.

III. If in the country we are treating of, both money and the luxurious arts are supposed unknown, then the superfluity of the farmers will be in proportion to the number of those whose labour will be found sufficient to provide for all the other necessities of the inhabitants; and so soon as this is accomplished, the consumption and produce becoming equally balanced, the inhabitants will increase no more, or at least very precariously, unless their wants be multiplied.


CHAP. VI.
How the Wants of Mankind promote their Multiplication.

If the country we were treating of in the former chapter be supposed of a considerable extent and fruitfulness, and if the inhabitants have a turn for industry; in a short time, luxury and the use of money (or of something participating of the nature of money) will infallibly be introduced.

By LUXURY, I understand the consumption of any thing produced by the labour or ingenuity of man, which flatters our senses or taste of living, and which is neither necessary for our being well fed, well clothed, well defended against the injuries of the weather, nor for securing us against every thing which can hurt us[[H]].

[H]. As my subject is different from that of morals, I have no occasion to consider the term luxury in any other than a political sense, to wit, as a principle which produces employment, and gives bread to those who supply the demands of the rich. For this reason I have chosen the above definition of it, which conveys no idea, either of abuse, sensuality, or excess; nor do I, at present, even consider the hurtful consequences of it as to foreign trade. Principles here are treated of with regard to mankind in general, and the effects of luxury are only considered relatively to multiplication and agriculture. Our reasoning will take a different turn, when we come to examine the separate interest of nations, and the principles of trade.

I beg therefore, that at present my reasoning be carried no further (from inductions and suppositions) than my intention is that it should be. I am no patron, either of vice, profusion, or the dissipation of private fortunes; although I may now and then reason very cooly upon the political consequences of such diseases in a state, when I only consider the influence they have as to feeding and multiplying a people. My subject is too extensive of itself to admit of being confounded with the doctrine either of morals, or of government, however closely these may appear connected with it; and did I not begin by simplifying ideas as much as possible, and by banishing combinations, I should quickly lose my way, and involve myself in perplexities inextricable.

By MONEY, I understand any commodity, which purely in itself is of no material use to man for the purposes above-mentioned, but which acquires such an estimation from his opinion of it, as to become the universal measure of what is called value, and an adequate equivalent for any thing alienable.

Here a new scene opens. This money must be found in the hands of some of the inhabitants; naturally, of such as have had the wit to invent it, and the address to make their countrymen fond of it, by representing it as an equivalent value for food and necessaries; that is to say, the means of procuring, without work or toil, not only the labour of others, but food itself.

Here then is produced a new object of want. Every person becomes fond of having money; but how to get it is the question. The proprietors will not give it for nothing, and by our former supposition every one within the society was understood to be abundantly supplied with food and necessaries; the farmers, from their labouring the ground; the free hands, by the return of their own ingenuity, in furnishing necessaries. The proprietors therefore of this money have all their wants supplied, and still are possessors of this new kind of riches, which we now suppose to be coveted by all.

The natural consequence here will be, that those who have the money will cease to labour, and yet will consume; and they will not consume for nothing, for they will pay with money.

Here then is a number of inhabitants, who live and consume the produce of the earth without labouring: food will soon become scarce; demand for it will rise, and that will be paid with money; this is the best equivalent of all; many will run to the plough; the superfluity of the farmers will augment; the rich will call for superfluities; the free hands will supply them, and demand food in their turn. These will not be found a burden on the husbandmen, as formerly; the rich, who hired of them their labour or service, must pay them with money, and this money in their hands will serve as an equivalent for the superfluity of nourishment produced by additional agriculture.

When once this imaginary wealth, money, becomes well introduced into a country, luxury will very naturally follow; and when money becomes the object of our wants, mankind become industrious, in turning their labour towards every object which may engage the rich to part with it; and thus the inhabitants of any country may increase in numbers, until the ground refuses farther nourishment. The consequences of this will make the subject of another chapter.

Before we proceed, something must be said, in order to restrain these general assertions a little.

We have supposed a very rapid progress of industry, and a very sudden augmentation of inhabitants, from the introduction of money. But it must be observed, that many circumstances have concurred with the money, to produce this effect.

We have supposed a country capable of improvement, a laborious people, a taste of refinement and luxury in the rich, an ambition to become so, and an application to labour and ingenuity in the lower classes of men. According to the greater or less degree of force, or concurrence of these and like circumstances, will the country in question become more or less cultivated, and consequently peopled.

If the soil be vastly rich, situated in a warm climate, and naturally watered, the productions of the earth will be almost spontaneous: this will make the inhabitants lazy. Laziness is the greatest of all obstacles to labour and industry. Manufactures will never flourish here. The rich, with all their money, will not become luxurious with delicacy and refinement; for I do not mean by luxury the gratification of the animal appetites, nor the abuse of riches, but an elegance of taste and in living, which has for its object the labour and ingenuity of man; and as the ingenuity of workmen begets a taste in the rich, so the allurement of riches kindles an ambition, and encourages an application to works of ingenuity in the poor.

Riches therefore will here be adored as a god, but not made subservient to the uses of man; and it is only by the means of swift circulation from hand to hand, (as shall be observed in its proper place) that they become productive of the effects mentioned above[[I]].

[I]. Every transition of money from hand to hand, for a valuable consideration, implies some service done, something wrought by man, or performed by his ingenuity, or some consumption of something produced by his labour. The quicker therefore the circulation of money is in any country, the more strongly it may be inferred, that the inhabitants are laborious; and vice versa: but of this more hereafter.

When money does not circulate, it is the same thing as if it did not exist; and as the treasures found in countries where the inhabitants are lazy do not circulate, they are rather ornamental than useful.

It is not therefore in the most fruitful countries of the world, nor in those which are the best calculated for nourishing great multitudes, that we find the most inhabitants. It is in climates less favoured by nature, and where the soil only produces to those who labour, and in proportion to the industry of every one, where we may expect to find great multitudes; and even these will be found greater or less, in proportion as the turn of the inhabitants is directed to ingenuity and industry.

In such countries where these are made to flourish, the free hands (of whom we have spoken above) will be employed in useful manufactures, which, being refined upon by the ingenious, will determine what is called the standard of taste; this taste will increase consumption, which again will multiply workmen, and these will encourage the production of food for their nourishment.

Let it therefore never be said, that there are too many manufacturers employed in a country; it is the same as if it were said, there are too few idle persons, too few beggars, and too many husbandmen.

We have more than once endeavoured to shew, that these manufacturers never can be fed but out of the superfluity of nourishment produced by the farmers. It is a contradiction, I think, to say, that those who are fed upon the surplus of those who cultivate the soil are necessary for producing a sufficiency to themselves. For if even this surplus were to diminish, the manufactures, not the labourers, would be the first to be extinguished for want of nourishment.

The importance of the distributive proportion of mankind into labourers and free hands appears so great, and has so intimate a connection with this subject, that it engages me to seek for an illustration of the principles I have been laying down, in an example drawn from facts, as it is found to stand in one of the greatest and most flourishing nations in Europe. But before I proceed farther in this part of my subject, I must examine the consequences of slavery with regard to the subject we are now upon. Relations here are so many and so various, that it is necessary to have sometimes recourse to transitions, of which I give notice to my reader, that he may not lose the connection.


CHAP. VII.
The Effects of Slavery upon the Multiplication and Employment of Mankind.

Before I go on to follow the consequences of the above reasoning, I must stop, to consider a difference, of no small importance, between antient and modern times, which will serve to illustrate the nature of slavery, with regard to population and the employment of mankind.

We have endeavoured to lay down the principles which seem to influence these two objects, supposing all to be free. In that case I imagine the human species will multiply pretty much in proportion to their industry; their industry will increase according to their wants, and these again will be diversified according to the spirit of the times.

From this I conclude, that the more free and simple the manners of a country are, cæteris paribus, the fewer inhabitants will be found in it. This is proved by experience every where. The Tartars, who freely wander up and down a country of vast extent, multiply but little; the savages in America, who live upon hunting, in a state of great independence; the inhabitants of several mountainous countries in Europe, where there are few manufactures, and where the inhabitants do not leave the country; in all such places mankind do not multiply. What is the reason of this? One would imagine, where there is a great extent of ground capable of producing food, that mankind should multiply until the soil refused to give more. I imagine the answer may be easily discovered from the principles above laid down.

Where mankind have few wants, the number of free hands necessary to supply them is very small, consequently very little surplus from the farmers is sufficient to maintain them. When therefore it happens, that any poor family in the class of free hands is very numerous, division there comes to be carried to its utmost extent, and the greatest part become quite idle, because there is no demand for their work. As long as they can be fed by the division of the emoluments arising from the labour of their parents, or by the charity of others, they live; when these resources fail, they become miserable. In so wretched a situation it is not easy to find bread. The farmers will not double their diligence from a charitable disposition. Those who have land will not allow those indigent people a liberty to raise grain in it for nothing; and although they should, the poor are not in a capacity to provide what is necessary for doing it. All other work is fully stocked, the wretched die, or extinguish without multiplying.

To make this more evident, let us suppose the wants of mankind, in any polite nation of Europe, which lives and flourishes in our days upon the produce of its own soil, reduced all at once to the simplicity of the antient patriarchs, or even to that of the old Romans. Suppose all the hands now employed in the luxurious arts, and in every branch of modern manufactures, to become quite idle, how could they be subsisted? What oeconomy could be set on foot able to preserve so many lives useful to the state? Yet it is plain by the supposition, that the farmers of the country are capable of maintaining them, since they do so actually. It would be absurd to propose to employ them in agriculture, seeing there are enough employed in this, to provide food for the whole.

If it be certain, that such people would die for want without any resource, must it not follow, that unless their parents had found the means of maintaining them when children, and they themselves the means of subsisting by their industry in supplying wants, they could not have existed beyond their first infancy.

This seems to strike deep against the populousness of the old world, where we know that the wants of mankind, with regard to trades and manufactures, were so few.

But in those days the wants of mankind were of a different nature. At present there is a demand for the ingenuity of man; then there was a demand for his person and service. Now provided there be a demand for man, whatever use he be put to, the species will multiply; for those who stand in need of them will always feed them, and as long as food is to be found, numbers will increase.

In the present times food cannot, in general, be found, but by labour, and that cannot be found but to supply wants. Nobody will feed a free man, more than he will feed the wild birds or beasts of the field, unless he has occasion for the labour of the one or the flesh of the other.

In the old world the principles were the same, but the spirit of nations was different. Princes wanted to have numerous armies. Free states sought for power in the number of their citizens. The wants of mankind being few, and a simplicity of manners established, to have encouraged industry, excepting in agriculture, which in all ages has been the foundation of population, would have been an inconsistency. To make mankind labour beyond their wants, to make one part of a state work to maintain the other gratuitously, could only be brought about by slavery, and slavery was therefore introduced universally. Slavery was then as necessary towards multiplication, as it would now be destructive of it. The reason is plain. If mankind be not forced to labour, they will only labour for themselves; and if they have few wants, there will be little labour. But when states come to be formed, and have occasion for idle hands to defend them against the violence of their enemies, food at any rate must be procured for those who do not labour; and as, by the supposition, the wants of the labourers are small, a method must be found to increase their labour above the proportion of their wants.

For this purpose slavery was calculated: it had two excellent effects with respect to population. The first, that, in unpolished nations, living upon the spontaneous fruits of the earth, and almost continually in war, lives were preserved for the sake of making slaves of the captives. These sold to private people, or different states, were sure of being fed; whereas remaining in their own country, they only occupied a place, which, by the force of the generative faculty, as has been observed, was soon to be filled up by propagation: for it must not be forgot, that when numbers are swept off, by any sudden calamity, which does not proportionally diminish subsistence, a new multiplication immediately takes place. Thus we perceive the hurt done by plagues, by war, and by other devastations, either among men, or cattle, repaired in a few years, even in those countries where the standard number of both is seldom found to increase. What immense quantities of cattle are yearly slaughtered! Does any body imagine that if all were allowed to live, numbers would increase in proportion? The same is true of men.

The second advantage of slavery was, that in countries where a good police prevailed, and where the people had fewer wants by far than are felt in modern times, the slaves were forced to labour the soil which fed both them and the idle freemen, as was the case in Sparta; or they filled all the servile places which freemen fill now, and they were likewise employed, as in Greece and in Rome, in supplying with manufactures those whose service was necessary for the state.

Here then was a violent method of making mankind laborious in raising food; and providing this be accomplished, (by any means whatever) numbers will increase.

Trade, industry, and manufactures, only tend to multiply the numbers of men, by encouraging agriculture. If it be therefore supposed, that two states are equally extended, equally fruitful, and equally cultivated, and the produce consumed at home, I believe they will be found equally peopled. But suppose the one laboured by free men, the other by slaves, what difference will be found in making war? In the first, the free hands must, by their industry and labour, purchase their food, and a day lost in labour is in a manner a day of fasting: in the last, the slaves produce the food, they are first fed, and the rest costs nothing to the body of free men, who may be all employed in war, without the smallest prejudice to industry.

From these principles it appears, that slavery in former times had the same effect in peopling the world that trade and industry have now. Men were then forced to labour because they were slaves to others; men are now forced to labour because they are slaves to their own wants.

I only add, that I do not pretend that in fact slavery in antient times did every where contribute to population, any more than I can affirm that the spirit of industry in the Dutch is common to all free nations in our days. All that is necessary for my purpose is, to set forth the two principles, and to shew the natural effects of the one and the other, with respect to the multiplication of mankind and advancement of agriculture, the principal objects of our attention throughout this book.

I shall at present enlarge no farther upon this matter, but return to where I left off in the preceeding chapter, and take up the farther examination of the fundamental distribution of inhabitants into labourers and free hands.


CHAP. VIII.
What Proportion of Inhabitants is necessary for Agriculture, and what Proportion may be usefully employed in every other Occupation?

I have proposed this question, not with an intention to answer it fully, but to point out how, with the proper lights given, it may be answered.

As I write under circumstances not the most favourable for having recourse to books, I must employ those I have. The article Political Arithmetic, of Mr. Chambers’s Cyclopedia, furnishes me with some extracts from Sir William Petty, and Dr. Davenant, which I here intend to employ, towards pointing out a solution of the question proposed. These authors consider the state of England as it appeared to them, and what they say is conclusive only with respect to that state.

Sir William Petty supposes the inhabitants of England to be six millions, the value of grain yearly consumed by them ten millions sterling, the bushel of wheat reckoned at 5s. and that of barley at 2s. 6d. If we cast the two together, and reckon upon an average, this will make the quarter, or eight bushels of grain, worth 1l. 10s. but in regard, the barley cannot amount to one half of all the grain consumed, especially as there is a good quantity of rye made use of, which is worth more than the barley, though less than the wheat; let us suppose the grain worth 32s. per quarter, at a medium; then ten millions sterling will purchase six millions of quarters of grain, or thereabouts: which used for nourishment, in bread and beer, gives the mean quantity of one quarter, or 512 pounds of grain for every inhabitant, including the nourishment of his proportional part of animals; supposing that Sir William attended to this circumstance, for it is not mentioned by Chambers. And I must observe, by the by, that this computation may hold good as to England, where people eat so little bread; but would not answer in France, nor in almost any other country I have seen.

Dr. Davenant, correcting Sir William’s calculation, makes the inhabitants 5,545,000. These, according to Sir William’s prices and proportions, would consume to the amount of 8,872,000l. sterling; but the Dr. carries it, with reason, a little higher, and states it at 9,075,000l. sterling; the difference, however, is inconsiderable. From this he concludes, the gross produce of the corn fields to be about 9,075,000l. sterling. I make no criticism upon this computation.

Next, as to the value of other lands; I find Sir William reckons the gross produce of them in butter, cheese, milk, wool, horses yearly bred, flesh for food, tallow, hides, hay, and timber, to amount to 12,000,000l. sterling: The amount therefore of the gross produce of all the lands in England must be equal to these two sums added together, that is to 21,075,000l. sterling.

From these data, the Dr. values the yearly rent of corn lands at two millions sterling, and those of pasture, &c. at seven millions, in all nine millions.

From this it appears, that the land rents of England are to the gross produce, as nine is to twenty one, or thereabouts.

Let me now examine some other proportions.

The rents of the corn lands are to the gross produce of them, as two is to nine; those of pasture, as seven to twelve.

Now it is very certain, that all rents are in a pretty just proportion to the gross produce, after deducting three principal articles.

1. The nourishment of the farmer, his family and servants.

2. The necessary expences of his family, for manufactures, and instruments for cultivating the ground.

3. His reasonable profits, according to the custom of every country.

Of these three articles, let us distinguish what part implies the direct consumption of the pure produce, from what does not.

Of the first sort are the nourishment of men and cattle, wool and flax for cloathing, firing, and other smaller articles.

Of the second are all manufactures bought, servants wages, the hire of labourers occasionally, and profits, either spent in luxury, (that is superfluity) lent, or laid up.

The three articles above mentioned (which we have distributed under two heads) being deduced from the gross produce, the remaining value shews the land rent.

This being the case, I am next to examine the cause of the great disproportion between the rents of corn lands, and those of pasture, when compared with the gross produce, in order to draw some conclusion, which may lead to the solution of the question here proposed.

This difference must proceed from the greater proportion of labouring and other inhabitants employed in consequence of tillage; which makes the expence of it far greater than that of pasture. And since, in the one and the other, every article of necessary expence or consumption, appears to be proportionally equal among those concerned in both, that is, proportional to the number of labouring inhabitants; it follows, that the proportion of people employed in agriculture, and upon the account of it, in different countries, is nearly in the ratio of the gross produce to the land-rent; or in other words, in the proportion of the consumption made by the farmers, and by those employed necessarily by them, to the net produce; which is the same thing.

Now as the consumption upon corn farms is 79, and that upon pasture 512, the proportion of these two fractions must mark the ratio between the populousness of pasture lands, and those in tillage; that is to say, tillage lands in England were, at that time, peopled in proportion to pasture lands, as 84 is to 45, or as 28 to 15.

This point being settled, I proceed to another; to wit, the application of this net produce or surplus of the quantity of food and necessaries remaining over and above the nourishment, consumption and expence, of the inhabitants employed in agriculture; and which we have observed above, to be equal to the land-rents of England, that is to say, to nine millions yearly.

Must not this of necessity be employed in the nourishment, and for the use of those whom we have called the free hands; who may be employed in manufactures, trades, or in any way the state pleases.

Now the number of people, I take to be very nearly in the proportion of the quantity of food they consume; especially when a society is taken thus, in such accumulative proportion, and when all are found under the same circumstances as to the plenty of the year.

The whole gross produce of England we have said to be 21,000,000l. sterling, of which 9 millions have remained for those not employed in agriculture; the farmers, therefore, and their attendants, must annually consume 12 millions; consequently the last class is to the first as 12 is to 9. If therefore, according to Dr. Davenant, there be 5,545,000 people in that kingdom, there must be about 3,168,571 employed or dependent upon agriculture, and 2,376,429 free hands for every other occupation. But this proportion of farmers will be found far less, if we reflect, that we have reckoned for them the total amount of the three articles above mentioned, that is to say, the total consumption they make, as well in manufactures, profits upon their labour, &c. as for food and necessaries; whereas there has been nothing reckoned for the free hands, but the land-rent: consequently there should be added to the number of the latter as many as are employed in supplying with all sorts of manufactures the whole of the farmers of England, and all those who depend upon them; and this number must be taken from one and added to the other class.

If this number be supposed to amount to four hundred thousand, it will do more than cast the balance upon the opposite side.

From these matters of fact (in so far as they are so) we may conclude:

I. That the raising of the rents of lands shews the increase of industry, as it swells the fund of subsistence consumed by the industrious; that is, by those who buy it.

II. That it may denote either an increase of inhabitants, or the depopulation of the land, in order to assemble the superfluous mouths in villages, towns, &c. where they may exercise their industry with greater conveniency.

While the land-rents of Europe were very low, numbers of the inhabitants appeared to be employed in agriculture; but were really no more than idle consumers of the produce of it. This shall be farther illustrated in the subsequent chapters.

III. The more a country is in tillage, the more it is inhabited, and the smaller is the proportion of free hands for all the services of the state. The more a country is in pasture, the less it is inhabited, but the greater is the proportion of free hands.

I do not pretend, as I have said above, that there is any calculation to be depended on in this chapter; I have only endeavoured to point out how a calculation might be made, when the true state of England comes to be known.

This question not being of a nature to enter into the chain of our reasoning, may be considered rather as incidental than essential; I have therefore treated it superficially, and chiefly for the sake of the conclusions.

Our next inquiry will naturally be into the principles which determine the residence of inhabitants, in order to discover why, in all flourishing states, cities are now found to be every where increasing.


CHAP. IX.
What are the Principles which regulate the Distribution of Inhabitants into Farms, Villages, Hamlets, Towns, and Cities?

Having pointed out the natural distribution of inhabitants into the two capital classes of which we have been treating, I am now going to examine how far their employment must decide as to their place of residence.

I. When mankind is fed upon the spontaneous fruits of the earth, the distribution of their residence depends upon the division of the lands. If these are in common to all, then the inhabitants will be scattered abroad, or gathered together, according as the productions of the earth are equally distributed over the face of the country, or confined to some fruitful spots.

Hence the Tartars wander with their flocks and feed upon them: hence the hunting Indians are scattered in small societies, through the woods, and live upon game: hence others, who feed upon the fruits of the earth, are collected in greater numbers upon the sides of rivers, and in watered vallies.