An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): 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 taxesSteuart, James, Sir
History
An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): 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
Steuart, James, Sir
Economics
CHAP. II.
_Of Demand._
This is no new subject; it is only going over what has been treated of
very extensively in the first book under another name, and relatively to
other circumstances. _These_ ideas were there kept as simple as
possible; _here_ they take on a more complex form, and appear in a new
dress.
The wants of mankind were said to promote their multiplication, by
augmenting the demand for the food of the free hands, who, by supplying
those wants, are enabled to offer an equivalent for their food, to the
farmers who produced it; and as this way of bartering is a
representation of trade in its infancy, it is no wonder that trade, when
grown up, should still preserve a resemblance to it.
_Demand_, considered as a term appropriated to trade, will now be used
in place of _wants_, the term used in the first book relatively to
bartering; we must therefore expect, that the operations of the same
principle, under different appellations, will constantly appear similar,
in every application we can make of it, to different circumstances and
combinations.
Whether this term be applied to bartering or to trade, it must
constantly appear reciprocal. If I demand a pair of shoes, the shoemaker
either demands money, or something else for his own use. To prevent
therefore the ambiguity of a term, which, from the sterility of
language, is taken in different acceptations, according to the
circumstances which are supposed to accompany it, I shall endeavour
shortly to analyze it.
_1mo._ Demand is ever understood to be relative to merchandize. A demand
for money, except in bills of exchange, is never called demand. When
those who have merchandize upon hand, are desirous of converting them
into money, they are said to offer to sale; and if, in order to find a
buyer, they lower their price, then, in place of saying the demand for
money is high, we say the demand for goods is low.
_2do._ Suppose a ship to arrive at a port loaded with goods, with an
intention to purchase others in return, the operation only becomes
double. The ship offers to sale, and the demand of the port is said to
be high or low, according to the height of the price offered, not
according to the quantity demanded, or number of demanders. When all is
sold, then the ship becomes demander; and if his demand be
proportionally higher than the former, we say upon the whole, that the
demand is for the commodities of the port; that is, the port offers, and
the ship demands. This I call reciprocal demand.
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