the overthrow of its principles, a powerful practical influence. *

"It is no exaggeration to affirm," says a late foreign writer," that there are very few political errors which have produced more mischief than the mercantile system. Armed with power, it has commanded and forbid where it should only have protected. The regulating mania which it has inspired has tormented industry in a thousand ways, to force it from its natural channels. It has made each particular nation regard the welfare of its neighbours as incompatible with its own; hence the reciprocal desire of injuring and impoverishing each other; and hence that spirit of commercial rivalry which has been the immediate or remote cause of the greater number of modern wars. It is this system which has stimulated nations to employ force or cunning to extort commercial treaties, productive of no real advantage to themselves, from the weakness or ignorance of others. It has formed colonies, that the mother country might enjoy the monopoly of their trade, and force them to resort exclusively to her markets. In short, where this system has been productive of the least injury, it has retarded the pro

* Melon and Forbonnais in France,-Genovesi in Italy,Mun, Sir Josiah Child, Dr Davenant, the authors of the British Merchant, and Sir James Stewart, in England—are the ablest writers who have espoused, some with more and some with fewer exceptions, the leading principles of the Mercantile system.

gress of national prosperity; every where else it has deluged the earth with blood, and has depopulated and ruined some of those countries whose power and opulence it was supposed it would carry to the highest pitch.

tem.

*

The shock given to previous prejudices and systems by those great discoveries and events, which will for ever distinguish the fifteenth and sixteenth centuries, and the greater attention which the progress of civilization and industry naturally drew to the sources of national power and opulence, prepared the way for the downfall of the mercantile sysThe advocates of the East India Company, whose interests had first prompted them to question the prevailing doctrines as to the exportation of bullion, began gradually to assume a higher tone; and at length boldly contended that bullion was nothing but a commodity, and that its exportation ought to be rendered as free as the exportation of any other commodity. Nor were these opinions confined to the partners of the East India Company. They were gradually communicated to others; and many eminent merchants were taught to look with suspicion on several of the most received maxims; and were thus led to acquire more correct and comprehensive views in respect to the just principles of commercial intercourse. The new ideas ultimately made their way into the House of Commons; and in 1663, the

Storch, Cours d'Economie Politique, Tome I. p. 122.

statutes prohibiting the exportation of foreign coin and bullion were repealed, and full liberty given to the East India Company, and to private traders, to export these articles in unlimited quantities.

In addition to the controversies respecting the East India trade, the discussions to which the foundation of the colonies in America and the West Indies, the establishment of a compulsory provision for the support of the poor, and the acts prohibiting the exportation of wool, &c. gave rise, attracted an extraordinary portion of the public attention to questions connected with the domestic policy of the country. In the course of the seventeenth century, a more than usual number of tracts were published on commercial and economical subjects. And although the greater number are strongly tinctured with the prevailing spirit of the age, it cannot be denied, that several of them rise above the prejudices of their contemporaries, and have an unquestionable right to be regarded as the foundation of the modern theory of commerce-as the earliest exposition of those sound and liberal doctrines, by which it has been shown, that the prosperity of states can never be promoted by restrictive regulations, or by the depression of their neighbours-that the genuine spirit of commerce is inconsistent with the dark, selfish, and shallow policy of monopoly—and that the self-interest of mankind, not less than their duty, requires them to live in peace, and to cultivate a fair and friendly intercourse with each other.

Besides Mr Mun, Sir Josiah Child,* whose work, though it is founded on the principles of the mercantile system, contains many sound and liberal views, Sir William Petty,† and Sir Dudley North, are the most distinguished of the economical writers of the seventeenth century. The latter not only rose above the established predjudices of the time, but had sagacity enough to detect the more refined and less obvious errors that were newly coming into fashion. His tract, entitled, "Discourses on Trade, principally directed to the Cases of Interest, Coinage, Clipping, and Increase of Money," published in 1691, contains a much more able statement of the true principles of commerce than any that had then appeared. He is throughout the intelligent advocate of all the great principles of commercial freedom. He is not, like the most eminent of his predecessors, well informed on one subject, and erroneous on another. His system is consistent and complete. He shows, that in commercial matters, nations have the same interests as individuals; and forcibly exposes the absurdity of supposing, that any trade which is advantageous to the merchant can be injurious to the public. His opinions respecting the imposition of a seignorage on the coinage of mo

* A New Discourse of Trade, first published in 1668, but greatly enlarged and improved in the second edition, published in 1690.

+ Quantulumcunque, published in 1682; Political Anatomy of Ireland, published in 1672; and other works.

ney, and the expediency of sumptuary laws, then very popular, are equally enlightened.

I shall subjoin, from the preface to this tract, an abstract of the general propositions maintained in it:

"THAT THE WHOLE WORLD AS TO TRADE IS BUT AS ONE NATION OR PEOPLE, AND THEREIN NATIONS ARE AS PERSONS.

"That the loss of a trade with one nation is not that only, separately considered, but so much of the trade of the world rescinded and lost, for all is combined together.

"THAT THERE CAN BE NO TRADE UNPROFITABLE TO THE PUBLIC; FOR IF ANY PROVE SO, MEN LEAVE IT OFF; AND WHEREVER THE TRADERS THRIVE, THE PUBLIC, OF WHICH THEY ARE A PART, THRIVE ALSO.

"That to force men to deal in any prescribed manner may profit such as happen to serve them ; but the public gains not, because it is taken from one subject to give to another.

"That no laws can set prices in trade, the rates of which must and will make themselves. But when such laws do happen to lay any hold, it is so much impediment to trade, and therefore prejudicial.

"That money is a merchandise, whereof there may be a glut, as well as a scarcity, and that even to an inconvenience.

"THAT A PEOPLE CANNOT WANT MONEY TO SERVE THE ORDINARY DEALING, AND MORE THAN ENOUGH THEY WILL NOT HAVE.