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
political-necessary, according to the principles laid down in the
twenty-first chapter.
The essential characteristic of this vibration of the balance of wealth,
is the change in the relative proportion of riches between individuals.
But it must be observed, that under this second species we are to
consider the change of proportion no farther than as it is produced by
the circulation of a free adequate equivalent, of such a nature as to be
transferable to another hand without any diminution. The consumption,
therefore, is the only thing which makes the balance turn. While the
consumable commodity remains entire in the hands of the purchaser, he
still remains possessor of the value, and may, by inverting the
operation, return to the possession of the same species of wealth he had
before.
Here it may he asked, if money be absolutely necessary for producing a
vibration of this balance by the means of consumption. We may easily
conceive the greatest inequality between the numbers of a state, without
supposing the existence of money. We may suppose the property of lands
unequally divided, and a great surplus of subsistence found in the hands
of one individual, which may by him be given in exchange for the produce
of industry. Under such circumstances then it may be asked, if without
money there can be no such thing as a vibration in the balance of
wealth; supposing in this case, the term _wealth_ to imply, in general,
the means of purchasing whatever man can perform or produce.
I answer, that no doubt the balance may be susceptible of small
vibrations, because even in the exchange of consumable commodities, the
consumption may go on faster on one side than on the other; but I think,
unless the inconsumable fund of wealth (which is what gives the
superiority, and which in the example alledged, we supposed to be coin)
can be made to change hands according to the adequate proportion of the
consumption made, we cannot say properly, that a vibration can be
operated in any considerable degree.
Let us suppose (A) to be a proprietor of a bit of land, and (B) an
industrious workman; in order that (B) may purchase the land of (A,) it
must be supposed that (A) is very extravagant, and that he inclines to
consume a much greater proportion of work than what is equivalent to all
the surplus-produce of his land. Now in order to supply (A) to the value
of the land itself, (B) must distribute his work to many different
persons, and take in exchange, not such things as he has use for
himself, but such as may be found useful to (A). But so soon as (A) has
paid to (B) the whole surplus of his land, what fund of credit will he
find in order to engage (B) to furnish more? He cannot pay him in land,
because this fund is not susceptible of circulation; and every expedient
that could be fallen upon to keep accounts clear between them, is
neither more or less than the introduction of _money_, either _real_ or
_symbolical_. These terms must be explained.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account