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
There are two expedients to be used, in order to defeat the bad effects
of a competition which cannot be got the better of in the ordinary way.
The first to be made use of, is, to assist the branches in distress with
the public money. The other is patience, and perseverance in frugality,
as has been already observed. A short example of the first will be
sufficient in this place to make the thing fully understood. I have
already said, that I purposely postpone an ample dissertation upon the
principles which influence such operations.
Let me suppose a nation accustomed to export to the value of a million
sterling of fish every year, undersold in this article by another which
has found a fishery on its own coasts, so abundant as to enable it to
undersell the first by 20 _per cent._ This being the case, the statesman
may buy up all the fish of his subjects, and undersell his competitors
at every foreign market, at the loss of perhaps 250,000_l._ What is the
consequence? That the million he paid for the fish remains at home, and
that 750,000_l._ comes in from abroad for the price of them. How is the
250,000_l._ to be made up? By a general imposition upon all the
inhabitants. This returns into the public coffers, and all stands as it
was. If this expedient be not followed, what are the consequences? That
those employed in the fishery are forced to starve; that the fish taken
either remain upon hand, or if sold by the proprietors, at a great loss;
these are undone, and the nation for the future loses the acquisition of
750,000_l._ a year.
To abridge this operation, premiums are given upon exportation, which
comes to the same thing, and is a refinement on the application of this
very principle: but premiums are often abused. It belongs to the
department of the coercive power of government to put a stop to such
abuse. All I shall say upon the matter is, that if there be crimes
called high treason, which are punished with greater severity than
highway robbery, and assassination, I should be apt (were I a statesman)
to put at the head of that bloody list, every attempt to defeat the
application of public money, for the purposes here mentioned. The
multiplicity of frauds alone, discourages a wise government from
proceeding upon this principle, and disappoints the scheme. If severe
punishment can in its turn put a stop to frauds, I believe it will be
thought very well applied.
Public-domain text, read in full here on John Shaqi.
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