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
Grain arriving in a small quantity, at a port where the inhabitants are
starving, produces so great a competition among the consumers, who are
the buyers, that their necessity becomes evident; all the grain is
generally bought up before prices can rise so high as to come to a stop;
because nothing but want of money, that is, an impossibility of
complying with the prices demanded by the merchants, can restrain them:
but if you suppose, even here, that prices come naturally to a stop; or
that, after some time, they fall lower, from prudential considerations,
then there is a possibility of a competition taking place among the
sellers, from the principles above deduced. If, on the contrary, the
stop is not natural, but occasioned by the interposition of the
magistrate, from humanity, or the like, there will be no competition,
because then the principles of commerce are suspended; the sellers are
restrained on one side, and they restrain the buyers on the other. Or
rather, indeed, it is the magistrate, or compassion, who in a manner
fixes the price, and performs the office of both buyer and seller.
A better example still may be found, in a competition among sellers;
where it may be so strong, as to render a commodity in a manner of no
value at all, as in the case of an uncommon and unexpected draught of
fish, in a place of small consumption, when no preparations have been
made for salting them. There can be then no competition among the
buyers; because the market cannot last, and they find themselves
entirely masters, to give what price they please, being sure the sellers
must accept of it, or lose their merchandize. In the first example,
humanity commonly stops the activity of the principle of competition; in
the other it is stopt by a certain degree of fair-dealing, which forbids
the accepting of a merchandize for nothing.
In proportion therefore as the rising of prices can stop demand, or the
sinking of prices can increase it, in the same proportion will
competition prevent either the rise or the fall from being carried
beyond a certain length: and if such a case can be put, where the rising
of prices cannot stop demand, nor the lowering of prices augment it, in
such cases double competition has no effect; because these circumstances
unite the most separate interests of buyers and sellers in the
mercantile contract, and when upon one side there is no separate
interest, there can then be no competition.
Public-domain text, read in full here on John Shaqi.
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