Again, trade is a social act. Whoever undertakes to sell any description
of goods to the public, does what affects the interest of other persons,
and of society in general; and thus his conduct, in principle, comes
within the jurisdiction of society: accordingly, it was once held to be
the duty of governments, in all cases which were considered of
importance, to fix prices, and regulate the processes of manufacture.
But it is now recognised, though not till after a long struggle, that
both the cheapness and the good quality of commodities are most
effectually provided for by leaving the producers and sellers perfectly
free, under the sole check of equal freedom to the buyers for supplying
themselves elsewhere. This is the so-called doctrine of Free Trade,
which rests on grounds different from, though equally solid with, the
principle of individual liberty asserted in this Essay. Restrictions on
trade, or on production for purposes of trade, are indeed restraints;
and all restraint, _qua_ restraint, is an evil: but the restraints in
question affect only that part of conduct which society is competent to
restrain, and are wrong solely because they do not really produce the
results which it is desired to produce by them. As the principle of
individual liberty is not involved in the doctrine of Free Trade, so
neither is it in most of the questions which arise respecting the limits
of that doctrine: as for example, what amount of public control is
admissible for the prevention of fraud by adulteration; how far sanitary
precautions, or arrangements to protect work-people employed in
dangerous occupations, should be enforced on employers. Such questions
involve considerations of liberty, only in so far as leaving people to
themselves is always better, _caeteris paribus_, than controlling them:
but that they may be legitimately controlled for these ends, is in
principle undeniable. On the other hand, there are questions relating to
interference with trade, which are essentially questions of liberty;
such as the Maine Law, already touched upon; the prohibition of the
importation of opium into China; the restriction of the sale of poisons;
all cases, in short, where the object of the interference is to make it
impossible or difficult to obtain a particular commodity. These
interferences are objectionable, not as infringements on the liberty of
the producer or seller, but on that of the buyer.
Public-domain text, read in full here on John Shaqi.
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