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
The French Revolution, which owed its economic measures to the
Physiocrats, gave a powerful impulse to the principle of liberty. The
influence of the movement was patent enough on the Continent. Even in
England, where this influence was least felt; everybody was in favour of
_laissez-faire_. Pitt became anxious to free Ireland from its antiquated
system of prohibitions, and he succeeded in doing this by his Act of
Union of 1800. The regulations laid down by the Elizabethan Statute of
Apprentices, with its limitation of the hours of work and the fixing of
wages by justices of the peace, became more and more irksome as industry
developed. Every historian of the Industrial Revolution has described the
struggle between workers and masters and shown how the former clung in
despair to the old legislative measures as their only safeguard against
a too rapid change, while the latter refused to be constrained either in
the choice of workmen or the methods of their work.[248] They wished to
pay only the wages that suited them and to use their machines as long as
possible. These repeated attacks rendered the old Statute of Apprentices
useless, and Parliament abolished its regulations one after another, so
that by 1814 all traces of it were for ever effaced from the Statute Book.
But Smith did not foresee these things. He did not write with a view to
pleasing either merchants or manufacturers. On the contrary, he was never
weary of denouncing their monopolistic tendencies. But by the force of
circumstances manufacturers and merchants became his best allies. His
book supplied them with arguments, and it was his authority that they
always invoked.
His authority never ceased growing. As soon as the _Wealth of Nations_
appeared, men like Hume, and Gibbon, the historian, expressed to Smith
or to his friends their admiration of the new work. In the following
year the Prime Minister, Lord North, borrowed from him the idea of
levying two new taxes—the tax on malt and the tax on inhabited houses.
Smith was yet to make an even more illustrious convert in the person of
Pitt. Pitt was a student when the _Wealth of Nations_ appeared, but he
always declared himself a disciple of Smith, and as soon as he became
a Minister he strove to realise his ideas. It was he who signed the
first Free Trade treaty with France—the Treaty of Eden, 1786.[249] When
Smith came to London in 1787, Pitt met him more than once and consulted
him on financial matters. The story is told that after one of these
conversations Smith exclaimed: “What an extraordinary person Pitt is! He
understands my ideas better than myself.”
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