1 Commercial the greater number of the writers are strongly tinctured with Progress of the prevailing spirit of the age, it cannot be denied, that several Science in of them have risen above the prejudices of their contempora- England. ries, and have an unquestionable right to be regarded as the founders of the modern theory of commerce; as the earliest teachers 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 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 friendship with each other. We have already referred to Mr. Mun's treatise, entitled Eng- Mr. Mun land's Treasure by Foreign Trade. This treatise was first published in 1664; but there is good reason to suppose that it had been written many years previously. Mr. Mun's son, in the dedication to Lord Southampton, prefixed by him to the work, says, that his father " was, in his time, famous among merchants," a mode of expression which he would hardly have used, had not a considerable period elapsed since his father's death and Mr. Edward Misselden, in his Circle of Commerce, published in 1623, (p. 36,) refers to Mr. Mun's tract on the East India trade, and speaks of its author as being an accomplished and experienced merchant. Perhaps, therefore, we shall not be far wrong if we assume, that this treatise was written so early as 1635 or 1640. At all events, it is certain, that the doctrines which it contains do not differ much from those which he had previously maintained in his pamphlet in defence of the East India Company, and some of the expressions are literally the same with those in the petition presented by that body to Parliament in 1628, which is known to have been written by Mr. Mun.* The extract we have previously given, shows that Mr. Mun's opinions, in so far as regards the question respecting the balance of trade, were exactly the same with those of his contemporaries. But, we believe, he was the first who endeavoured to show, and who has, in point of fact, successfully shown, that a favourable balance could never be produced by restrictive regulations:-that the exportation and importation. of bullion, coin, and every other commodity, should be freely permitted; and that violent measures will never bring gold or silver into a kingdom, or retain them in it, (pp. 27, 92, &c. original edit.) Mr. Mun also distinctly lays it down, "that those who have wares cannot want money," and that “it is not the keeping of our money in the kingdom, but the necessity and use of our wares in foreign countries, and our want of other commodities, that causeth the vent and consumption on all sides which causeth a quick and ample trade," (p. 43.)† Nor are these detached and incidental passages thrown out at random. They breathe the same spirit which pervades the rest of Mr. Mun's book, and constitute and form a part of his system. His observations in answer to Malyne's, on some rather difficult questions connected with exchange, are both accurate and ingenious. * This petition, and the reasons on which it is founded, were so well es teemed, as to occasion its being reprinted in 1641. + These expressions are in the petition of the Company, presented to Parliament in 1628. Progress of Sir Josiah Sir William Petty's Political Anatomy. The first edition of Sir Josiah Child's celebrated work on trade, (A New Discourse of Trade, &c.) was published in 1668; but it was very greatly enlarged in the next edition, published in 1690. There are many sound and liberal doctrines advanced in this book. The argument to show that colonies do not and cannot depopulate the mother country is as conclusive as if it had proceeded from the pen of Mr. Malthus; and the just and forcible reasoning in defence of the naturalization of the Jews is highly creditable to the liberality and good sense of the writer, and discovers a mind greatly superior to the prejudices of the age. Sir Josiah has also many good and judicious observations on the bad effects of the laws against forestalling and regrating; on those limiting the number of apprentices; and on corporation privileges. When treating of the laws relating to the exportation of wool, Sir Josiah lays it down as an axiom, "That they that can give the best price for a commodity shall never fail to have it by one means or other, notwithstanding the opposition of any laws, or interposition of any power by sea or land; of such force, subtilty, and violence, is the general course of trade." The radical defect of Sir Josiah Child's Treatise consists in the circumstance of its being chiefly written to illustrate the advantages, which he labours to show, would result from forcibly reducing the rate of interest to four per cent.; an error into which he had been led by mistaking the low interest of Holland for the principal cause of her wealth, when this low interest was in truth the effect of her comparatively heavy taxation. It is, however, worthy of remark, that this error was very soon detected. In the same year (1668) that Sir Josiah's Treatise first appeared, a tract was published, entitled, Interest of Money mistaken, or a Treatise, proving that the Abatement of Interest is the Effect and not the Cause of the Riches of a Nation. The author of this tract maintains the same opinions that were afterward held by Locke and Montesquieu, that the interest of money does not depend on statutory regulations, but that it varies according to the comparative opulence of a country; or rather according to the comparative scarcity and abundance of money-increasing when the supply of money diminishes, and diminishing when it increases.* Having endeavoured to establish this principle, the author of the tract successfully contends that Sir Josiah Child had totally mistaken the cause of the wealth of the Dutch, of which he shows the lowness of their interest was merely a consequence. In 1672, Sir William Petty published his celebrated tract, entitled, the Political Anatomy of Ireland. In this work, the absurdity of the act passed in 1664, prohibiting the importation of cattle, beef, &c. from Ireland into Britain, is ably exposed, and the advantage of an unconstrained internal commerce clearly *It has been generally supposed that Mr. Hume was the first who showed (in his Essay on Interest) the fallacy of this opinion, and who proved that the rate of interest did not depend on the abundance or scarcity of money, but on the abundance or scarcity of disposable capital compared with the demands of the borrowers, and the rate of profit. This, however, is a mistake, the doctrine in question having been fully demonstrated in a pamphlet written by Mr. Massie, entitled, Essay on the Governing Causes of the Natural Rate of Interest, published two years before Mr. Hume's Essay appeared. set forth. Commercial "If it be good for England," says Sir William, "to Progress of keep Ireland a distinct kingdom, why do not the predominant Science in party in Parliament, suppose the western members, make Eng- England. land beyond Trent another kingdom, and take tolls and customs upon the borders? Or why was there ever any union between England and Wales? And why may not the entire kingdom of England be further cantonised for the advantage of all parties?" (p. 34. edit. 1719.) The great defect in the writings of Mun, Misselden, Child, and others, did not really consist so much in their notions about the superior importance of the precious metals, or even the balance of trade, as in their notions respecting the superior advantages derived from the importation of durable, rather than of rapidly perishable commodities, and luxuries. This, however, was an extremely natural opinion; and we cannot be surprised that the earlier writers on commerce should not have avoided falling into an error, from which neither the profound sagacity of Locke, nor the strong sense of Mr. Harris, have been able to preserve them. But even so early as 1677, the fallacy of this opinion had been perceived. In that year, there appeared a small tract, entitled, England's Great Happiness; or, a Dialogue between Content and Complaint; in which the author contends, that the importation of wine, and other consumable commodities, for which there is a demand, in exchange for money, is advantageous; and, on this ground, defends the French trade, which was as loudly declaimed against by the practical men of that day as it is by those of the present. We shall make a short extract from this remarkable tract : "Complaint. You speak plain; but what think you of the French trade? which draws away our money by wholesale. Mr. Fortrey, whom I have heard you speak well of, gives an account that they get L. 1,600,000 a-year from us. "Content.-'Tis a great sum; but, perhaps, were it put to a vote in a wise Council, whether for that reason the trade should be left off, 'twould go in the negative. For paper, wine, linen, Castile soap, brandy, olives, capers, prunes, kidskins, taffaties, and such like, we cannot be without; and for the rest, which you are pleased to style Apes and Peacocks (although wise Solomon ranked them with gold and ivory) they set us all agog, and have increased among us many considerable trades. * * I must confess, I had rather they'd use our goods than money; but if not, I WOULD NOT LOSE THE GETTING of ten pound BECAUSE I CAN'T GET AN HUNDRED; and I don't question but when the French get more foreign trade, they'll give more liberty to the bringing in foreign goods. I'll suppose John-a-Nokes to be a butcher, Dick-a-Styles to be an exchange man, yourself a lawyer, will you buy no meat or ribbands, or your wife a fine Indian gown or fan, because they will not truck with you for indentures which they have need of? I suppose no; but if you get money enough of others, you care not though you give it away in specie for these things; I think 'tis the same case.' *Mr. Fortrey's pamphlet has been much referred to. It was published in 1663, and reprinted in 1673. It contains a very good argument in favour of inclosures. The reference in the text sufficiently explains the opinions of the writer in regard to commerce. Science in England. Progress of The general spirit of this tract may perhaps be better inferCommercial red from the titles of some of the dialogues. Among others, we have, "To export money our great advantage;"—"The French trade a profitable trade;"-" Variety of wares for all markets, a great advantage ;"" High living a great improvement to the arts;"-"Invitation of foreign arts, a great advantage;"— "Multitudes of traders, a great advantage," &c. &c. But its influence was far too feeble to arrest the current of popular prejudice. In the year after its publication (1678) the importation of French commodities was prohibited for three years. This prohibition was made perpetual in the reign of William III. when the French trade was declared a nuisance!-a principle, if we may so call it, which has been acted upon to this very hour. Sir William Petty's Quantulumcunque. Sir Dudley In 1681, a pamphlet was published in defence of the East India Company, under the signature of "Philopatris," but evidently the production of Sir Josiah Child. In the introduction to this pamphlet, the following general principles are laid down : "That all close monopolies (Sir Josiah contends that the East India Company does not come under this description,) of what nature or kind soever, are destructive to trade, and consequently obstructive to the increase of the value of our lands. "That silver or gold, coined or uncoined, though they are used for a measure of all other things, are no less a commodity than wine, oil, tobacco, cloth, or stuffs; and may, in many cases, be exported as much to the national advantage as any other commodity. "That no nation ever was, or will be, considerable in trade, that prohibits the exportation of bullion." (p. 3.) In Sir William Petty's Quantulumcunque, published in 1682, the subject of money is treated with great ability, and the idea of draining England of her cash, by an unfavourable balance, successfully combated. "If some English merchants," it is said, "should be so improvident as to carry out money only, then the foreign merchants would buy up such English commodities as they wanted with money brought into England from their respective countries, or with such commodities as England likes better than money; for the vending of English commodities doth not depend on any thing else but the use and need which foreigners have of them." Sir W. denies that "a country is the poorer for having less money;" and concludes by strongly condemning the laws regulating the rate of interest; observing, that there may as well be laws to regulate the rate of exchange and of insurance (See pp. 3, 6, 8, original edition.)** But a tract, entitled, Discourses on Trade, principally directed to the Cases of Interest, Coinage, Clipping, and Increase of Money, *Thirteen years earlier had appeared, "A defence of Usury at 6 per cent." by T. Manley, against the attacks of Sir T. Culpepper, who had charged it with "many crimes and oppressions whereof it is altogether innocent.” About the same time appeared an interesting Report from a joint Committee of the House of Commons and the Common Council of London, entitled "England's Interest, or the great benefit to Trade by Banks or Offices of Credit in London."-By this it appears, that Offices of this kind had been already established in that city, and may be considered as the first attempt at Banking.-E. Commercial written by Sir Dudley North, and published in 1691, unques- Progress of tionably contains a far more able statement of the true princi- Science in ples of commerce than any that had then appeared. We regret that our limits will not permit our giving so full an account as we could have wished of this extraordinary tract. The author is a most intelligent and consistent advocate of 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. He is throughout sound and liberal. His system is consentaneous in its parts, and complete. He shows, that in commercial matters, nations have the same interests as individuals; and 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 money, and the expediency of sumptuary laws, then in great favour, are equally enlightened. We 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. 66 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 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 taking 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. "That no man will be the richer for the making much money, nor have any part of it, but as he buys it for an equiva lent price. "That the free coynage is a perpetual motion found out, whereby to melt and coyn without ceasing, and so to feed goldsmiths and coyners at the public charge. "That debasing the coyn is defrauding one another, and to the public there is no sort of advantage from it; for that admits no character, or value, but intrinsick. "That the sinking by alloy or weight is all one. "That exchange and ready money are the same, nothing but carriage and re-carriage being saved. "That money exported in trade is an increase to the wealth of the nation; but spent in war, and payments abroad, is so much impoverishment. "In short, that ALL FAVOUR to one trade, or interest, IS AN ABUSE, AND CUTS SO MUCH OF PROFIT FROM THE PUBLIC." England. |