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
Suppose a prince, upon the failure of his foreign trade, to increase his
army, in proportion as he finds his industrious hands laid idle by a
deficiency of demand for their labour; and let him fill his magazines
for their subsistence by foreign importation, leaving the produce of his
country to feed the rest of his subjects. By such a plan, every body
will remain employed, and also provided for, and such a prince may be
looked upon as a most humane governor. This I willingly agree to. I
should love such a prince; but the more I loved him, the more I should
regret that his project must fail, from a physical impossibility of its
being long supported; and when it comes to fail by the exhausting of his
wealth, it will not be his regrets which will give bread to his
soldiers, nor employment to his industrious subjects, who will no longer
find an equivalent for their labour.
Let this suffice at present, upon the general principles which influence
the stop necessary to be put to the importation of foreign commodities,
and to the diminution of national wealth, in the case we have had before
us.
Next as to the articles of exportation. The most profitable branches of
exportation are those of work, the less profitable those of pure natural
produce. When work cannot be exported in all its perfection, because of
its high price, it is better to export it with a moderate degree of
perfection, than not at all; and if even this cannot be done to
advantage, then will a people be obliged to renounce working except for
themselves: and then, if domestic consumption does not increase in
proportion to the deficiency of foreign demand, a certain number of
hands will be idle, and a certain quantity of natural produce will
remain upon hand. The first must disappear in a short time; they will
starve or desert; the last will become an article of exportation. Here
then is a new species of trade which takes place upon the extinction of
the other. When a nation has been forced to reduce her exportations to
articles of pure natural produce, in conformity to the principles we
have been laying down, then the plan proposed in the title of this
chapter is executed. She is then brought as low in point of trade as she
can be, but at the same time, she may enjoy her natural advantages in
spite of fortune; and in proportion to them, she may, with a good
government and frugality, retain a balance of trade in her favour, which
will constantly go on in augmenting her national wealth.
There is, therefore, a period at which foreign trade may stop in every
article, but in natural produce. I do not know whether this period be at
a great distance, when the state of trade is considered relatively to
certain nations of Europe.
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