A History of Political Economy

第6章

Thephysiocraticsystem，afterguidinginsomedegreethepolicyoftheConstituentAssembly，andawakeningafewechoes

hereandthereinforeigncountries，soonceasedtoexistasalivingpower;butthegoodelementsitcomprisedwerenotlost

tomankind，beingincorporatedintothesounderandmorecompleteconstructionofAdamSmith。

ITALY

InItaly，asintheotherEuropeannations，therewaslittleactivityintheeconomicfieldduringthefirsthalfoftheeighteenth

century。Itwasthen，however，thatareallyremarkablemanappeared，thearchdeaconSalustioAntonioBandini

（1677—1760），authoroftheDiscorsosullaMaremmaSienese，writtenin1737，butnotpublishedtill1775。Theobjectofthe

workwastoraisetheMaremmafromthewretchedconditionintowhichithadfallenthroughthedecayofagriculture。This

decayheshowedtobe，atleastinpart，theresultofthewretchedfiscalsystemwhichwasinforce;andhisbookledto

importantreformsinTuscany，wherehisnameisheldinhighhonour。NotonlybyPecchioandotherItalianwriters，butby

Roscheralso，heisallegedtohaveanticipatedsomeleadingdoctrinesofthephysiocrats，butthisclaimisdisputed。There

wasaremarkablerenascenceofeconomicstudiesinItalyduringthelatterhalfofthecentury，partlyduetoFrenchinfluence，

andpartly，itwouldappear，toimprovedgovernmentinthenorthernstates。

Themovementatfirstfollowedthelinesofthemercantileschool。Thus，inAntonioBroggia’sTrattatideitributiedelle

moneteedelgovernopoliticodellasocietá（1743），andGirolamoBelloni’sDissertazionesoprailcommercio（1750），which

seemstohavehadasuccessandreputationmuchaboveitsmerits，mercantilisttendenciesdecidedlypreponderate。Butthe

mostdistinguishedwriterwhorepresentedthateconomicdoctrineinItalyinthelastcenturywasAntonioGenovesi，a

Neapolitan（1712—1769）。Hefeltdeeplythedepressedintellectualandmoralstateofhisfellow—countrymen，andaspired

afterarevivalofphilosophyandreformofeducationasthefirstconditionofprogressandwell—being。Withtheobjectof

protectinghimfromthetheologicalpersecutionswhichthreatenedhimonaccountofhisadvancedopinions，Bartolomeo

Intieri，ofwhomweshallhearagaininrelationtoGaliani，foundedin1755，expresslyforGenovesi，achairofcommerceand

mechanics，oneoftheconditionsoffoundationbeingthatitshouldneverbefilledbyamonk。Thiswasthefirst

professorshipofeconomicsestablishedinEurope;thesecondwasfoundedatStockholmin1758，andthethirdinLombardy

tenyearslater，forBeccaria。ThefruitofthelaboursofGenovesiinthischairwashisLezionidicommercio，ossiadi

economiacivile（1769），whichcontainedthefirstsystematictreatmentofthewholesubjectwhichhadappearedinItaly。As

themodelforItalianimitationheheldupEngland，acountryforwhich，saysPecchio，hehadapredilectionalmost

amountingtofanaticism。HedoesnotriseabovethefalseeconomicsystemwhichEnglandthenpursued;butherejectssome

ofthegrossererrorsoftheschooltowhichhebelonged;headvocatesthefreedomofthecorntrade，anddeprecates

regulationoftheinterestonloans。Inthespiritofhisage，hedenouncestherelicsofmedievalinstitutions，suchasentails

andtenuresinmortmain，asimpedimentstothenationalprosperity。FerdinandoGalianiwasanotherdistinguisheddiscipleof

themercantileschool。Beforehehadcompletedhistwenty—firstyearhepublishedaworkonmoney（Dettamonetalibri

cinque，1750），theprinciplesofwhicharesupposedtohavebeendictatedbytwoexperiencedpracticalmen，theMarquis

RinucciniandBartolomeoIntieri，whosenamewehavealreadymet。Buthisreputationwasmadebyabookwrittenin

FrenchandpublishedinParis，wherehewassecretaryofembassy，in1770，namely，hisDialoguessurlecommercedesblés。

Thiswork，byitslightandpleasingstyle，andthevivaciouswitwithwhichitabounded，delightedVoltaire，whospokeofit

asabookintheproductionofwhichPlatoandMolièremighthavebeencombined！（14）Theauthor，saysPecchio，treatedhis

aridsubjectasFontenelledidthevorticesofDescartes，orAlgarottitheNewtoniansystemoftheworld。Thequestionat

issuewasthatofthefreedomofthecorntrade，thenmuchagitated，and，inparticular，thepolicyoftheroyaledictof1764，

whichpermittedtheexportationofgrainsolongasthepricehadnotarrivedatacertainheight。Thegeneralprinciplehe

maintainsisthatthebestsysteminregardtothistradeistohavenosystem——countriesdifferentlycircumstancedrequiring，

accordingtohim，differentmodesoftreatment。Thisseemsalameandimpotentconclusionfromthesideofscience;yet

doubtlessthephysiocrats，withwhomhiscontroversylay，prescribedonthis，asonothersubjects，rulestoorigidforthesafe

guidanceofstatesmen，andGalianimayhaverenderedarealservicebyprotestingagainsttheirabsolutesolutionsof

practicalproblems。Hefell，however，intosomeofthemostseriouserrorsofthemercantilists——holding，asindeeddidalso

VoltareandevenVerri，thatonecountrycannotgainwithoutanotherlosing，andinhisearliertreatisegoingsofarasto

defendtheactionofGovernmentsindebasingthecurrency。

AmongsttheItalianeconomistswhoweremostundertheinfluenceofthemodernspirit，andinclosestharmonywiththe

generalmovementwhichwasimpellingtheWesternnationstowardsanewsocialorder，CesareBeccaria（1738—1794）holds

aforemostplace。HeisbestknownbyhiscelebratedtreatiseDeidelittiedellepene，bywhichVoltairesaidhehadmade

himselfabenefactorofallEurope，andwhich，wearetold，hasbeentranslatedintotwenty—twolanguages。TheEmpress

CatherinehavinginvitedhimtofixhisresidenceatSt。PetersburgtheAustrianGovernmentofLombardy，inordertokeep

himathome，establishedexpresslyforhimachairofpoliticaleconomy;andinhisElementidieconomiapubblica（1769—1771;notpublished，however，till1804）areembodiedhisteachingsasprofessor。Theworkisunfinished:hehad

dividedthewholesubjectundertheheadsofagriculture，manufactures，commerce，taxation，government;buthehastreated

adequatelyonlythefirsttwoheads，andthelasttwonotatall，havingbeencalledtotakepartinthecouncilsofthestate。He

wasinsomedegreeundertheinfluenceofphysiocraticideas，andholdsthatagricultureistheonlystrictlyproductiveform

ofindustry，whilstmanufacturersandartisansareasterileclass。Hewasstronglyopposedtomonopoliesandprivileges，and

tocorporationsinartsandtrades;ingeneralhewarmlyadvocatedinternalindustrialfreedom，thoughinregardtoforeign

commerceaprotectionist。Inthespecialcaseofthecorntradehewasnot，anymorethanGaliani，apartisanofabsolute

liberty。Hisexpositionofeconomicprinciplesisconciseandsententious，andheoftenstatescorrectlythemostimportant

considerationsrelatingtohissubjectwithoutaddingthedevelopmentswhichwouldbedesirabletoassistcomprehension

andstrengthenconviction。Thusonfixedcapital（capitalifondatori），asdistinctfromcirculating（annui），initsapplicationto

agriculture，hepresentsinacondensedformessentiallythesameexplanationsasTurgotaboutthesametimegave;andon

thedivisionoflabourandthecircumstanceswhichcausedifferentratesofwagesindifferentemployments，heinsubstance

comesneartoSmith，butwithoutthefulnessofillustrationwhichissoattractiveafeatureoftheWealthofNations。Pietro

Verri（1728—1797），anintimateandlifelongfriendofBeccaria，wasfortwenty—fiveyearsoneoftheprincipaldirectorsofthe

administrationofLombardy，inwhichcapacityheoriginatedmanyeconomicandotherreforms。InhisRiflessionisulleleggi

vincolanti，principalmentenelcommerciode’grani（writtenin1769，printedin1796），heconsidersthequestionofthe

regulationofthecorntradebothhistoricallyandinthelightoftheoreticprinciples，andarrivesattheconclusionthatliberty

isthebestremedyagainstfamineandagainstexcessivefluctuationsofprice。HeisgenerallyopposedtoGovernmental

interferencewithinternalcommerce，aswellastotradecorporations，andtheattemptstolimitpricesorfixtherateof

interest，butisinfavouroftheprotectionofnationalindustrybyajudiciouslyframedtariff。TheseviewsareexplainedinhisMeditazionisull’economiapolitica（1771），anelementarytreatiseonthescience，whichwasreceivedwithfavour，and

translatedintoseveralforeignlanguages。Aprimaryprinciplewithhimiswhathecallstheaugmentationofreproduction——

thatis，inSmith’slanguage，of"theannualproduceofthelandandlabour"ofanation;andbyitstendencytopromoteorto

restrictthisaugmentation，hetestseveryenactmentandinstitution。Accordingly，unlikeBeccaria，heprefersthepetitethegrandeculture，asgivingalargertotalproduce。Indealingwithtaxation，herejectsthephysiocraticproposalofasingleimpôtterritorial。（15）GiovanniR。Carli（1720—1796），alsoanofficialpromoterofthereformsinthegovernmentofAustrian

Lombardy，besideslearnedandsoundtreatisesonmoney，wasauthorofRagionamentisopraibilancieconomicidellenazioni，inwhichheshowsthefalsityofthenotionthatastategainsorlosesinforeigncommerceaccordingtotheso—called

balanceoftrade。InhislettertoPompeoNeriSulliberocommerciode’grani（1771），hetakesupapositionsimilartothat

ofGaliani，regardingthequestionofthefreedomofthecorntradeasnotsomuchascientificasanadministrativeone，tobe

dealtwithdifferentlyunderdifferentlocalorotherconditions。Rejectingthephysiocraticdoctrineoftheexclusive

productivenessofagriculture，heillustratesinaninterestingwaythenecessityofvariouseconomicclassesinasociety，and

thereflexagencyofmanufacturesinstimulatingthecultivationofthesoil。GiambattistaVasco（1733—1796）wrote

discoursesonseveralquestionsproposedbyacademiesandsovereigns。Inthesehecondemnstradecorporationsandthe

attemptsbyGovernmentstofixthepriceofbreadandtolimittheinterestonloans。Inadvocatingthesystemofapeasant

proprietary，hesuggeststhatthelawshoulddeterminetheminimumandmaximumportionsotlandwhichacitizenshouldbe

permittedtopossess。Healso，withaviewtopreventtheundueaccumulationofproperty，proposestheabolitionoftheright

ofbequest，andtheequaldivisionoftheinheritanceamongstthechildrenofthedeceased，GaetanoFilangieri（1762—1788），

oneoftheItalianwritersofthelastcenturywhosenamesaremostwidelyknownthroughoutEurope，devotedtoeconomic

questionsthesecondbookofhisScienzadellalegislazion（5vols。，1780—1786）。Filledwithreformingardouranda

passionatepatriotism，heemployedhisvehementeloquenceindenouncingalltheabusesofhistime。Apparentlywithoutany

knowledgeofAdamSmith，heinsistsonunlimitedfreedomoftrade，callsfortheabolitionofthemedievalinstitutionswhich

impededproductionandnationalwell—being，andcondemnsthecolonialsystemthenfollowedbyEngland，Spain，and

Holland。Heprophesies，asRaynal，Turgot，andGenovesihaddonebeforehim，thatallAmericawouldonedaybe

independent，apredictionwhichprobablyhelpedtoelicitBenjaminFranklin’stributeofadmirationforhiswork。Rathera

propagatorthanadiscoverer，hesometimesadoptedfromotherserroneousopinions，as，forexample，whenheapprovestheimpôtuniqueofthephysiocrats。Onthewhole，however，herepresentsthemostadvancedpoliticalandsocialtendenciesof

hisage;whilststronglycontrastedwithBeccariaintemperamentandstyle，hewasaworthylabourerinthesamecauseof

nationalanduniversalprogress。LudovicoRicci（1742—1799）wasauthorofanablereportSullariformadegliistitutipii

dellacittàdiModena（1787）。Hetreatedthesubjectofpoorreliefandcharitableinstitutionsinsogeneralawaythatthe

workpossessesauniversalandpermanentinterest。Hedwellsontheevilsofindiscriminatereliefastendingtoincreasethe

miseryitseekstoremove，andasloweringthemoralcharacterofapopulation。Heexposesespeciallytheabusesconnected

withlying—inandfoundlinghospitals。ThereismuchinhimwhichisakintotheviewsofMalthus;likehimheisopposedto

anystateprovisionforthedestitute。whoought，hethinks，tobelefttovoluntaryprivatebeneficence。FerdinandoPaoletti

（1717—1801）wasanexcellentandpublic—spiritedpriest，whodidmuchforthediffusionofintelligenceamongstthe

agriculturalpopulationofTuscany，andforthelighteningofthetaxeswhichpresseduponthemhecorrespondedwith

Mirabeau（"FriendofMen"），andappearstohaveacceptedthephysiocraticdoctrines，atleastintheirgeneralsubstance。he

wasauthorofPensierisopral’agricoltura（1769），andofIverrimezzidirenderfelicilesocietà（1772）;inthelatterhe

advocatesthefreedomofthecorntrade。ThetractIlColbertismo（1791）byCountFrancescoMengottiisavigorousprotest

againsttheextremepolicyofprohibitionandprotection，whichmaystillbereadwithinterest。Mengottialsowrote（1791）a

treatiseDelcommerciode’Romani，directedmainlyagainsttheexaggerationsofHuetinhisHistoireducommerceetdela

navigationdesanciens（1716），andusefulasmarkingthebroaddifferencebetweentheancientandmoderncivilizations。

HerelastlymaybementionedanotherItalianthinkerwho，eminentlyoriginalandeveneccentric，cannoteasilybeclassed

amonghiscontemporaries，thoughsomeContinentalwritersofourowncenturyhaveexhibitedsimilarmodesofthought。

ThiswasGiammariaOrtes（1713—1790）。Heisopposedtotheliberalisttendenciesofhistime，butdoesnotespousethe

doctrinesofthemercantilesystem，rejectingthetheoryofthebalanceoftrade，anddemandingcommercialfreedom。Itisin

theMiddleAgesthathefindshissocialandeconomictype。Headvocatesthemaintenanceofchurchproperty，isaverseto

theascendencyofthemoneypower，andhasthemedievaldislikeforinterestonloans。Heentertainsthesingularideathat

thewealthofcommunitiesisalwaysandeverywhereinafixedratiototheirpopulation，thelatterbeingdeterminedbythe

former。Poverty，therefore，necessarilywaitsonwealth，andtherich，inbecomingso，onlygainwhatthepoorlose。Those

whoareinterestedintheimprovementoftheconditionofthepeoplelabourinvain，solongastheydirecttheireffortstothe

increaseofthesumofthenationalwealth，whichitisbeyondtheirpowertoalter，insteadoftothedistributionofthat

wealth，whichitispossibletomodify。Thetrueremedyforpovertyliesinmitigatingthegain—pursuingpropensitiesinthe

richandinmenofbusiness。Ortesstudiedinaseparateworkthesubjectofpopulation;heformulatesitsincreaseas

"geometrical，"butrecognizesthat，asalimitissettosuchincreaseamongsttheloweranimalsbymutualdestruction，soisit

inthehumanspeciesby"reason"——the"prudentialrestraint"ofwhichMalthusafterwardsmadesomuch。Heregardsthe

institutionofcelibacyasnolessnecessaryandadvantageousthanthatofmarriage。Heenunciateswhathassincebeen

knownasthe"lawofdiminishingreturnstoagriculturalindustry。"Hewascarelessastothediffusionofhiswritings;and

hencetheyremainedalmostunknowntilltheywereincludedintheCustodicollectionofItalianeconomists，whenthey

attractedmuchattentionbythecombinedsagacityandwaywardnesswhichmarkedtheirauthor’sintellectualcharacter。

SPAIN

ThesamebreathofanewerawhichwasintheairelsewhereinEuropemadeitselffeltalsoinSpain。

IntheearlierpartoftheeighteenthcenturyGeronimoUstarizhadwrittenhisTeoricayPracticadelComercioyMarina（1724;published，1740;Eng。transl。byJohnKippax，1751;FrenchbyForbonnais，1753），inwhichhecarriesmercantile

principlestotheirutmostextreme。

ThereformingspiritofthelatterhalfofthecenturywasbestrepresentedinthatcountrybyPedroRodriguez，Countof

Campomanes（1723—1802）。Hepursuedwithardourthesamestudiesandinsomedegreethesamepolicyashisillustrious

contemporaryTurgot，without，however，havingarrivedatsoadvancedapointofview。HewasauthorofRespuestafiscal

sobreabolirlatasayestableceretcomerciodegranos（1764），Discursosobreelfomentodeindustriapopolar（1774），andDiscursosobrelaeducaciondelasartesanosysufomento（1775）。Bymeansofthesewritings，justlyeulogisedby

Robertson，（16）aswellasbyhispersonaleffortsasminister，hesoughttoestablishthefreedomofthecorntrade，toremove

thehindrancestoindustryarisingfrommedievalsurvivals，tohavealargedevelopmenttomanufactures，andtoliberate

agriculturefromtheodiousburdenstowhichitwassubject。Hesawthat，notwithstandingtheenlightenedadministrationof

CharlesIII，Spainstillsufferedfromtheevilresultsoftheblindconfidencereposedbyherpeopleinhergoldmines，and

enforcedthelessonthattherealsourcesofthewealthandpowerofhiscountrymustbesought，notinAmerica，butinher

ownindustry。

InbothItalyandSpain，asiswellobservedbyComte，（17）theimpulsetowardssocialchangetookprincipallythedirectionof

economicreform，becausethepressureexercisedbyGovernmentspreventedsolargeameasureoffreespeculationinthe

fieldsofphilosophyandgeneralpoliticsaswaspossibleinFrance。InItaly，itmaybeadded，thetraditionsofthegreat

industrialpastofthenortherncitiesofthatcountryalsotendedtofixattentionchieflyontheeconomicsideofpublicpolicy

andlegislation。

GERMANY

WehaveseenthatinItalyandEnglandpoliticaleconomyhaditsbeginningsinthestudyofpracticalquestionsrelating

chieflytomoneyortoforeigncommerce。InGermanyitarose（asRoscherhasshown）outoftheso—calledcameralistic

sciences。SoonafterthecloseoftheMiddleAgesthereexistedinmostGermancountriesacouncil，knownastheKammer

（Lat。camera），whichwasoccupiedwiththemanagementofthepublicdomainandtheguardianshipofregalrights。The

EmperorMaximilianfoundthisinstitutionexistinginBurgundy，andestablished，inimitationofit，auliccouncilsat

InnspruckandViennain1498and1501。Notonlyfinanceandtaxation，butquestionsalsoofeconomicpolice，cametobe

entrustedtothesebodies。Aspecialpreparationbecamenecessaryfortheirmembers，andchairsofcameralisticsciencewere

foundedinuniversitiesfortheteachingoftheappropriatebodyofdoctrine。Onesideoftheinstructionthusgivenborrowed

itsmaterialsfromthesciencesofexternalnature，dealing，asitdid，withforestry，mining，generaltechnology，andthelike;

theotherrelatedtotheconditionsofnationalprosperityasdependingonhumanrelationsandinstitutions;andoutofthe

latter，Germanpoliticaleconomywasatfirstdeveloped。

InnocountryhadmercantilistviewsastrongerholdthaninGermany，thoughinnone，intheperiodwearenowconsidering，

didthesystemofthebalanceoftradereceivealessextensivepracticalapplication。AlltheleadingGermaneconomistsofthe

seventeenthcentury——Bornitz，Besold，Klock，Becher，Horneck，Seckendorf，andSchröder——standonthecommonbasisof

themercantiledoctrine。Andthesamemaybesaidofthewritersofthefirsthalfoftheeighteenthcenturyingeneral，and

notablyofJusti（d。1771），whowastheauthorofthefirstsystematicGermantreatiseonpoliticaleconomy，aworkwhich，

fromitscurrencyasatext—book，hadmucheffectontheformationofopinion。OnlyinZincke（1692—1769）dowefind

occasionalexpressionsofacircleofideasatvariancewiththedominantsystem，andpointinginthedirectionofindustrial

freedom。Butthesewriters，exceptfromthenationalpointofview，areunimportant，nothavingexercisedanyinfluenceon

thegeneralmovementofEuropeanthought。

TheprinciplesofthephysiocraticsystemmetwithacertainamountoffavourinGermany。KarlFriedrich，Margraveof

Baden，wrotefortheuseofhissonsanAbrégédesprincipesd’ÉconomiePolitique，1772，whichisinharmonywiththe

doctrinesofthatsystem。Itpossesses，however，littlescientificvalue。Schlettwein（1731—1802）andMauvillon（1743—1794）

werefollowersofthesameschool。TheodorSchmalz（1764—183a），whoiscommonlynamedas"thelastofthephysiocrats，"

maybeherementioned，thoughsomewhatoutofthehistoricorder。HecomparesColbertismwiththePtolemaicsystem，

physiocratismwiththeCopernican。AdamSmithherepresentsastheTychoBraheofpoliticaleconomy——amanofeminent

powers，whocouldnotresisttheforceoftruthinthephysiocrats，butpartlycouldnotdivesthimselfofrootedprejudices，

andpartlywasambitiousofthefameofadiscovererandareconcilerofdivergentsystems。ThoughSmithwasnow"the

fashion，"SchmalzcouldnotdoubtthatQuesnay’sdoctrinewasalonetrue，andwoulderelongbetriumphanteverywhere。（18）

JustbeforetheappearanceofSmith，asinEnglandSteuartandinItalyGenovesi，soinAustriaSonnenfels（1733—1817），the

firstdistinguishedeconomistofthatcountry，soughttopresentthemercantilesysteminamodifiedandmoreenlightened

form;andhiswork（GrundsätzederPolizei，Handlung，undFinanz，1765;8thed。，1822）exercisedevenduringa

considerablepartofthepresentcenturymuchinfluenceonopinionandonpolicyinAustria。

ButthegreatestGermaneconomistoftheeighteenthcenturywas，inRoscher’sopinion，JustusMöser（1720—1794），the

authorofPatriotischePhantasieen（1774），aseriesoffragments，which，Goetheneverthelessdeclares，form"einwahrhaites

Ganzes。"ThepoetwasmuchinfluencedbyMöserinhisyouth，andhaseulogisedintheDichtungundWahrheit（Bk。xiii）

hisspirit，intellect，andcharacter，andhisthoroughinsightintoallthatgoesoninthesocialworld。Whilstothersoccupied

themselveswithlargerandmoreprominentpublicaffairsandtransactions，Möserobservedandreproducedthecommon

dailylifeofhisnation，andthethousand"littlethings"whichcomposethetextureofpopularexistence。Hehasbeen

comparedtoFranklinforthehomeliness，verve，andfreshnessofhiswritings。InopinionsheisakintotheItalianOrtes。He

isopposedtothewholespiritofthe"Aufkärung"，andtotheliberalandrationalisticdirectionofwhichSmith’sworkbecame

afterwardstheexpression。Heisnotmerelyconservativebutreactionary，manifestingapreferenceformedievalinstitutions

suchasthetradeguilds，and，likeCarlyleinourowntime，seeingadvantageseveninserfdom，whencomparedwiththesort

offreedomenjoyedbythemoderndrudge。Hehasamarkedantipathyforthegrowthofthemoneypowerandof

manufacturesonthelargescale，andforthehighlydevelopeddivisionoflabour。Heisopposedtoabsoluteprivateproperty

inland，andwouldgladlyseerevivedsuchasystemofrestrictionsasintheinterestofthestate，thecommune，andthefamily

wereimposedonmedievalownership。Inhiswaywardandcausticstyle，heoftencriticiseseffectivelythedoctrinaire

narrownessofhiscontemporaries，throwsoutmanystrikingideas，andinparticularshedsreallightontheeconomic

phenomenaandgeneralsocialconditionsoftheMiddleAges。

THENETHERLANDS

IntheNetherlands，tendenciestowardstheneweconomicideasshowedthemselvesaboutthemiddleoftheseventeenth

century。DirckGraswinckel（1600—1668）advocatedfreetradeincorn，andwasingeneralopposedtorestrictionson

industry。PieterdelaCourt（1618—1685）dealtinasimilarspiritwithmostofthepracticalquestionsofhiscountryandage。

Heisinfavouroftheperfectlibertyofcitizenstobuyandsell，produceandconsume，aswellastolearnandteach;andhe

sharplycriticisedthesystemoftradecorporations。HewasinliteraryalliancewiththeGrandPensionary，JohndeWitt。His

principalwork（AanwysingdefheilsamepolitikegrondenenMaximanvandeRepublikevanHollandenWestfriesland，

1669）（19）wascommonlyattributedtothatstatesman，itisbetterknownintheFrenchtranslation（1709）whichappeared

underthetitleofMemoirsdeJeandeWitt。JandelaCourt（1622—1660），thebrotherofPieter，followedthesamedirection，

TheworksofSalmasius（1633，1640）wereofgreatimportanceinthecontroversyonthenecessityandlawfulnessof

interestonmoneyloans。

ADAMSMITH，WITHHISIMMEDIATEPREDECESSORS

ANDHISFOLLOWERS。

England。

ThestagnationineconomicinquirywhichshoweditselfinEnglandintheearlypartoftheeighteenthcenturywasnot

brokenbyanynotablemanifestationbefore1735，whenBishopBerkeleyputforwardinhisQuerist，withmuchforceand

point，viewsopposedtothoseofthemercantileschoolonthenatureofnationalwealthandthefunctionsofmoney，though

notwithoutanadmixtureofgraveerror。Butsoonamoredecisiveadvancewasmade。WhilstinFrancethephysiocratswere

workingaftertheirownfashiontowardstheconstructionofadefinitivesystemofpoliticaleconomy，aScottishthinkerof

thefirstorderwaselucidating，inaseriesofshortbutpregnantessays，someofthefundamentalconceptionsofthescience。

WhathadbeenwrittenonthesequestionsintheEnglishlanguagebeforehistimehadremainedalmostaltogetherwithinthe

limitsofthedirectlypracticalsphere。WithLocke，indeed，thegeneralsystemofthemoderncriticalphilosophyhadcome

intorelationwitheconomicinquiry，butonlyinapartialandindeterminateway。ButinHumethemostadvancedformofthis

philosophywasrepresented，andhisappearanceinthefieldofeconomicsdecisively，marksthetendencyofthelatterorder

ofspeculationtoplaceitselfinconnectionwiththelargestanddeepestthoughtonhumannatureandgeneralhumanhistory。

Mostoftheessaysherereferredtofirstappearedin1752，inavolumeentitledPoliticalDiscourses，andthenumberwas

completedinthecollectionofEssaysandTreatisesonSeveralSubjects，publishedinthefollowingyear。Themost

importantofthemarethoseonCommerce，onMoney，onInterest，andontheBalanceofTrade。Yettheseshouldnotbe

separatedfromtherest，for，notwithstandingtheunconnectedformoftheselittletreatises，thererunsthroughthema

profoundunityofthought，sothattheyindeedcomposeinacertainsenseaneconomicsystem。Theyexhibitinfullmeasure

Hume’swonderfulacutenessandsubtlety，whichindeedsometimesdisposehimtoparadox，incombinationwiththebreadth，

theabsenceofprejudice，andthesocialsympathieswhichsoeminentlydistinguishhim;andtheyoffer，besides，thecharmof

hiseasyandnaturalstyleandhisrarepoweroflucidexposition。