A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
On this point there is absolute agreement between the work done by Smith
in England and that carried on at the same time by the Physiocrats in
France. Both in foreign and domestic trade producers, merchants, and
workmen were hemmed in by a network of restrictions either inherited
from the traditions of the Middle Ages or imposed by powerful party
interests and upheld by false economic theories. The corporations still
existed in the towns; although their regulations could not be applied to
industries born after the passing of Elizabeth’s famous law concerning
apprenticeship. The Colbertian system, with its mob of officials
entrusted with the task of superintending the processes of production,
of examining the weight, the length, and the quality of the material
employed, was still a grievance with the woollen manufacturers.[229] The
fixing of the duration of apprenticeship at seven years, the limitation
of the number of apprentices in the principal industries, the obstacles
put in the way of the mobility of labour by the Poor Law and by the
series of statutes passed since the reign of Elizabeth, fettered the
movement of labour and the useful employment of capital. Smith opposed
these measures with the whole of his energy. England, unlike France, had
fortunately escaped internal restrictions upon trade, but the restraints
placed upon foreign trade still kept England and Ireland commercially
separated. These checks upon foreign trade proved as irksome in England
as they did everywhere else. Manufactured goods from foreign countries
were heavily taxed or were prohibited entrance altogether. Certain
natural products, _e.g._ French wine, were similarly handicapped; the
importation of a number of commodities necessary for national industry
was banned; a narrow and oppressive policy regarded the colonies as
the natural purveyors of raw materials for the mother-country and
the willing buyers of its manufactured goods. Against all this mass
of regulations, destined, it was thought, to secure the supremacy of
England among other commercial nations, Smith directed his most spirited
onslaughts. The fourth book of the _Wealth of Nations_ is an eloquent
and vigorous attack upon Mercantilism, admirable alike for the precision
and the extent of its learning. It was this section of his work that
interested his contemporaries most. For us it would have been the least
interesting but for its theory of international trade and its criticism
of Protection in general. On this account, however, it is of considerable
importance in the study of economic doctrines.
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