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
This is the least complex kind of trade, and may be carried on to a
greater or less extent, in different countries, according to the
different degrees of the wants to be supplied. In a country where there
is no money, nor any thing equivalent to it, I imagine the wants of
mankind will be confined to few objects; to wit, the removing the
inconveniencies of hunger, thirst, cold, heat, danger, and the like. A
free man who by his industry can procure all the comforts of a simple
life, will enjoy his rest, and work no more: And, in general, all
increase of work will cease, so soon as the demand for the purposes
mentioned comes to be satisfied. There is a plain reason for this. When
the free hands have procured, by their labour, wherewithal to supply
their wants, their ambition is satisfied: so soon as the husbandmen have
produced the necessary surplus for relieving theirs, they work no more.
Here then is a natural stop put to industry, consequently to bartering.
This, in the first book, we have called _the moral impossibility of
augmenting numbers._
The next thing to be examined, is, how bartering grows into trade,
properly so called and understood, according to the definition given of
it above; how trade comes to be extended among men; how manufactures,
more ornamental than useful, come to be established; and how men come to
submit to labour, in order to acquire what is not absolutely necessary
for them.
This, in a free society, I take to be chiefly owing to the introduction
of money, and a taste for superfluities in those who possess it.
In antient times, money was not wanting; but the taste for superfluities
not being in proportion to it, the specie was locked up. This was the
case in Europe four hundred years ago. A new taste for superfluity has
drawn, perhaps, more money into circulation, from our own treasures,
than from the mines of the new world. The poor opinion we entertain of
the riches of our forefathers, is founded upon the modern way of
estimating wealth, by the quantity of coin in circulation, from which we
conclude, that the greatest part of the specie now in our hands must
have come from America.
It is more, therefore, through the taste of superfluity, than in
consequence of the quantity of coin, that trade comes to be established;
and it is only in consequence of trade that we see industry carry things
in our days to so high a pitch of refinement and delicacy. Let me
illustrate this by comparing together the different operations of
barter, sale, and commerce.
When reciprocal wants are supplied by barter, there is not the smallest
occasion for money: this is the most simple of all combinations.
Public-domain text, read in full here on John Shaqi.
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