Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy — John Stuart Mill — John Shaqi
Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy
John Stuart Mill · en
Whatever sent the precious metals out of a country impoverished it. If a
country possessed no gold or silver mines, the only industry by which it
could be enriched was foreign trade, being the only one which could bring
in money. Any branch of trade which was supposed to send out more money
than it brought in, however ample and valuable might be the returns in
another shape, was looked upon as a losing trade. Exportation of goods was
favored and encouraged (even by means extremely onerous to the real
resources of the country), because, the exported goods being stipulated to
be paid for in money, it was hoped that the returns would actually be made
in gold and silver. Importation of anything, other than the precious
metals, was regarded as a loss to the nation of the whole price of the
things imported; unless they were brought in to be re-exported at a
profit, or unless, being the materials or instruments of some industry
practiced in the country itself, they gave the power of producing
exportable articles at smaller cost, and thereby effecting a larger
exportation. The commerce of the world was looked upon as a struggle among
nations, which could draw to itself the largest share of the gold and
silver in existence; and in this competition no nation could gain
anything, except by making others lose as much, or, at the least,
preventing them from gaining it.
The Mercantile Theory could not fail to be seen in its true character when
men began, even in an imperfect manner, to explore into the foundations of
things. Money, as money, satisfies no want; its worth to any one consists
in its being a convenient shape in which to receive his incomings of all
sorts, which incomings he afterwards, at the times which suit him best,
converts into the forms in which they can be useful to him. The difference
between a country with money, and a country altogether without it, would
be only one of convenience; a saving of time and trouble, like grinding by
water instead of by hand, or (to use Adam Smith’s illustration) like the
benefit derived from roads; and to mistake money for wealth is the same
sort of error as to mistake the highway, which may be the easiest way of
getting to your house or lands, for the house and lands themselves.