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. VI.
_Consequences of the introduction of a passive foreign Trade among a
People who live in Simplicity and Idleness._
We now suppose the arrival of traders, all in one interest, with
instruments of luxury and refinement, at a port in a country of great
simplicity of manners, abundantly provided by nature with great
advantages for commerce, and peopled by a nation capable of adopting a
taste for superfluities.
The first thing the merchants do, is to expose their goods, and point
out the advantages of many things, either agreeable or useful to mankind
in general, such as wines, spirits, instruments of agriculture, arms,
and ammunition for hunting, nets for fishing, manufactures for clothing,
and the like. The advantages of these are presently perceived, and such
commodities are eagerly sought after.
The natives on their side produce what they most esteem, generally
something superfluous or ornamental. The traders, after examining all
circumstances, determine the object of their demand, giving the least
quantity possible in return for this superfluity, in order to impress
the inhabitants with a high notion of the value of their own
commodities; but as this parsimony may do more hurt than good to their
interest, they are very generous in making presents, from the principles
mentioned above.
When the exchange is completed, and the traders depart, regret is
commonly mutual; the one and the other are sorry that the superfluities
of the country fall short. A return is promised by the traders, and
assurances are given by the natives, of a better provision another time.
What are the first consequences of this revolution?
It is not evident, that, in order to supply an equivalent for this new
want, more hands must be set to work than formerly. And it is evident
also, that this augmentation of industry will not essentially increase
numbers, as was supposed to be the effect of it through the whole train
of our reasoning in the first book. Why? Because _there_ the produce of
the industry was supposed to be consumed at home; and _here_ it is
intended to be exported. But if we can find out any additional
consumption at home even implied by this new trade, I think it will have
the effect of augmenting numbers. An example will make this plain.
Let me suppose the superfluity of this country to be the skins of wild
beasts, not proper for food; the manufacture sought for, brandy. The
brandy is sold for furs. He who has furs, or he who can spare time to
hunt for them, will drink brandy in proportion: but I cannot find out
any reason to conclude from this simple operation, that one man more in
the country must necessarily be fed, (for I have taken care to suppose,
that the flesh of the animals is not proper for food) or that any
augmentation of agriculture must of consequence ensue from this new
traffic.
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