and often upon him. Foreign commerce and manufactures brought about what feudal institutions could never have effected. These furnished the great proprietors with something which they could consume themselves, without sharing it with their tenants. 'All for our

selves' has been the vile maxim of the masters of the world. As soon, therefore, as they could find a method of consuming the value of their rents themselves, they had no disposition to share them with other persons, and often preferred a bauble like a pair of diamond buckles to the command of a thousand retainers. For the gratification of vanities they bartered their whole power and authority, pp. 414-15.

In a country where there is no foreign commerce, nor any of the finer manufactures, a man of ten thousand a year cannot well employ his revenue in any other way than in maintaining 1,000 families, who are all at his command. But in the present state of Europe, a man may spend ten thousand a year without directly maintaining 20 people. Indirectly he maintains, perhaps, a greater number of people than he could have done by the ancient method of expense. He generally contributes, however, but a small proportion towards the maintenance of each. A tradesman or artificer derives his subsistence from the employment of 100 or 1,000 different customers; to all of whom he is obliged, but is dependent upon none of them. The personal expense of the great proprietors having gradually increased, the number of their retainers was diminished, and their unnecessary tenants dismissed. Farms were enlarged, and the occupiers reduced to the number necessary for cultivating the land. Manufactures furnished the proprietor with a method of spending more upon his own person, which made him desirous of raising his rents above what his lands could afford; this the tenants could not agree to but upon the condition that they should be secured in their possession for such a

с

term of years as might pay for the further improvement of the land. Hence the origin of long leases. Even a tenant at will who pays the full value of the land is not altogether dependent upon the landlord. The pecuniary advantages are mutual. But if he has a long lease he is entirely independent. The tenants having in this manner become independent, the great proprietors were no longer capable of disturbing the peace of the country. An established government was maintained there as well as in the city, pp. 415-17.

In commercial countries very old families are rare; but in countries which have little commerce, they are common. In countries where a rich man can spend his revenue only by maintaining as many people as it can maintain, he is not apt to run out. But where he can spend the greatest revenue upon his own person, he knows no bounds to his expense, p. 194.

A revolution of the greatest importance to the public happiness was in this manner brought about, by those who had no intention to serve the public. Vanity was the motive of the proprietors; interest that of the merchants. Neither foresaw the revolution which was being brought about by the folly of the one and the industry of the other. Thus the commerce and manufactures of the cities through the greater part of Europe, instead of being the effect, have been the cause of the improvement of the country. This order, being contrary to the natural course of things, is slow and uncertain. Compare the slow progress of those European countries, of which the wealth depends upon their commerce and manufactures, with the rapid advances of North America, of which the wealth is founded in agriculture. In Europe the number of inhabitants is not doubled in less than 500 years; in America it is found to double in 25 years. In Europe the law of primogeniture, and perpetuities of different kinds, prevent the division of lands, and thereby hinder the multiplication

of small proprietors, who are in general the best improvers. This circumstance keeps land up to a monopoly price. The rent never pays the interest of the purchase-money, which prevents a number of capitals from being employed in the improvement of land. In America the purchase and improvement of land is the most profitable employment of a capital, and although the state of things which there exists is impossible in any country where all lands have long been private property, yet if landed estates were divided equally among all the children on the death of the proprietor, a numerous family would generally mean the sale of the estate, and so much land would come into the market that it could no longer sell at a monopoly price,' pp. 418-19.

merce.

England, on account of the natural fertility of its soil, the extent of the sea-coast, and its conveniency of water carriage, seems fitted for the seat of foreign comFrom the beginning of the reign of Elizabeth, the legislature has been peculiarly attentive to the interest of its commerce and manufactures. Commerce and manufactures have accordingly been advancing during all this period; so have the cultivation and improvement of the country also, though not so rapidly. The greater part of the country was cultivated before the time of Elizabeth; and a great part still remains uncultivated, and the cultivation of the greater part is inferior to what it might be. The law of England favours agriculture, by encouraging the exportation of

1 This may be doubted. More land would come into the market, certainly, but the ease of acquiring it and the stimulus thus given to the passion for its acquisition would be quite as likely to raise it as the increase of the saleable quantity would be likely to depress it.

note.

In Belgium ready sale does not induce cheapness. See Rogers's

Our author seems to rely too much on the example of America. America had so many points in her favour that she could hardly have failed to thrive under any system. The superiority of her system, therefore, is not demonstrated by the fact of her having thriven.

corn; by prohibiting the importation of cattle from any foreign country with the exception of Ireland (for however illusory such regulations may be, they demonstrate the intention of the legislature to favour agriculture);1 and by rendering the yeomanry secure and independent, pp. 420-21.

France had a considerable share of foreign commerce nearly a century before England. The cultivation of France is inferior to that of England. The foreign commerce of Spain and Portugal is considerable; but it has never introduced any considerable manufactures for distant sale into either of those countries, and the greater part of both still remains uncultivated. Italy has been improved in every part, by means of foreign. commerce and manufactures for distant sale. It was well cultivated before the invasion of Charles VIII., pp. 421-22.

The capital acquired to any country by commerce and manufactures is an uncertain possession till a part of it has been realised in the improvement of lands.2 A merchant is not necessarily the citizen of any particular country; a trifling disgust will make him remove his capital from one country to another. No vestige remains of the wealth of the greater part of the Hanse towns; it is uncertain where some of them were situated. The civil wars of Flanders, and the Spanish government, chased away commerce from Antwerp, Ghent, and Bruges. But Flanders continues to be one of the richest and best cultivated provinces of Europe. Ordinary revolutions dry up the sources of wealth, which arise from commerce only. That which arises from agriculture is more durable, pp. 422-23.

These encouragements and restraints have long ceased to exist. 2 This passage is very characteristic of our author.

21

BOOK IV.

OF SYSTEMS OF POLITICAL ECONOMY.

INTRODUCTION.

Political Economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects: (1) To provide a plentiful revenue or subsistence for the people, or more properly to enable them to provide such a revenue or subsistence for themselves. (2) To supply the state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign.' The different progress of opulence in different ages has given occasion to two systems of political economy with regard to enriching the people-the one a system of commerce, the other that of agriculture, p. 1.2

CHAPTER I.

Of the principle of the Commercial or Mercantile system.

THAT wealth consists of gold and silver is a popular notion arising from the double function of money, as the instrument of commerce, and as the measure of

See Rogers's note on this passage, and also the Editor's Questions and Exercises in Political Economy, pp. 1, 2, 100-110.

2 Henceforth the paging is that of vol. ii.