Comma for either/or — dharma, courage. Spelling forgiving — corage finds courage.

    An Inquiry into the Principles of Political Economy

    Preface

    James Steuart

    32 min

    It is with the greatest diffidence that I present to the public this attempt towards reducing to principles, and forming into a regular science, the complicated interests of domestic policy. When I consider the time and labour employed in the composition, I am apt to value it from selfish considerations. When I compare it even with my own abilities, I still think favourably of it, for a better reason; because it contains a summary of the most valuable part of all my knowledge. But when I consider the greatness of my subject, how small does the result of my application appear!

    The imperfections, therefore, discovered in this work, must be ascribed to the disproportion between the extent of the undertaking, and that of my capacity. This, I can assure my reader, has been exerted to the utmost: and if, after all, I have failed, it may, at least, with justice, be said, that I have miscarried in an attempt of the greatest importance to mankind.

    I no where, I think, have shewn a desire to make my court to any particular minister, whose administration might have been hinted at. I have freely followed the thread of my reasoning without a bias, either in favour of popular opinions, or of any of the numberless systems which have been formed by those who have written upon particular parts of my subject. The warmth of my temper may have led me sometimes into commendations when I have been pleased; but when I felt the effects of ill humour on being dissatisfied with particular circumstances, relating to countries, to men, and to things, which I had in my eye at the time I was writing, I was immediately aware of the danger of blaming the steps of any administration, without being well formed of the whole combination of circumstances which the minister may have had before him at the time.

    This composition being the successive labour of many years spent in travelling, the reader will find some passages in which the unities of time and place have not been observed. These I could have corrected with ease, had I not been advised to leave them as characters to point out the circumstances under which I wrote, and thereby to confirm the authenticity of certain facts.

    The modes of thinking, also, peculiar to the several countries where I have lived, have, no doubt, had an influence on what I have written concerning their customs: this work, therefore, will not, in general, correspond to the meridian of national opinions any where; and of this it is proper the reader should be apprised, that he may not apply to the domestic circumstances of his own country what was intended to refer to those of other nations; nor impute to wilful prejudice, what was the irresistible effect of my experience and conviction.

    Since the first publication of this work some criticisms upon it have been published in which little regard has been paid to this advertisement.

    The greater part of it by far, (the three first books particularly) was composed abroad. Can it be supposed, that during an absence of near twenty years, I should in my studies have all the while been modelling my speculations upon the standard of English notions.

    It has been alleged that I have imbibed prejudices abroad, by no means consistent with the present state of England, and the genius of Englishmen.

    To which I answer, that I flatter myself to have imbibed no prejudices either abroad or at home, at least I think I have exhibited none of them in my work; because there I have rejected all party opinions whatever.

    According to my way of treating this subject no general rule can be laid down in political matters: every thing there must be considered according to the circumstances and spirit of the nations to which they relate. Accordingly we shall find in this inquiry some reasonings built on the principles of arbitrary power, others on those of national liberty, others again on those of democracy. Had I, in compliment to the sentiments of Englishmen, suppressed every combination which might apply to the circumstances of those very countries where I was studying my subject, from the actual inspection of their policy, what merit should I have had to plead with my own countrymen from my travels and from my studies, any local English writer describing English policy and sounding through every page the most peculiar opinions of this nation, might have amused his readers far better than ever I could pretend to.

    If, from this work, I have any merit at all, it is by divesting myself of English notions, so far as to be able to expose in a fair light, the sentiments and policy of foreign nations, relatively to their own situation.

    Now the principal attention of an intelligent reader who peruses a book like this, will be directed towards the investigatory part of it: every step of the reasoning will be weighed by him until the final conclusion be drawn; he will then give his assent to it in proportion to the accuracy of the induction; but he never will recoil from what he has once assented to, in order to form a general notion conceding any result by comparing it with his own animal feelings or with the popular opinion of his countrymen.

    This much I am obliged to say in my own justification, with respect to several passages which have been written at times when England was very distant from my thoughts.

    I have read many authors on the subject of political oeconomy; and I have endeavoured to draw from them all the instruction I could. I have travelled, for many years, through different countries, and have examined them, constantly, with an eye to my own subject. I have attempted to draw information from every one with whom I have been acquainted: this, however, I found to be very difficult until I had attained to some previous knowledge of my subject. Such difficulties confirmed to me the justness of Lord Bacon's remark, that he who can draw information by forming proper questions, must be already possessed of half the science.

    I could form no consistent plan from the various opinions I met with: hence I was engaged to compile the observations I bad casually made, in the course of my travels, reading, and experience. From these I formed the following work after expunging the numberless inconsistencies and contradictions which I found had arisen from my separate inquiries into every particular branch.

    I had observed so many persons declining in knowledge as they advanced in years, that I resolved early to throw upon paper whatever I had learned; and to this I used to have recourse, as others have to their memories. The unity of the object of all my speculations, rendered this practice more useful to me than it would be to one whose researches are more extended.

    Whoever is much accustomed to write for his own use merely, must contract a more careless style than another who has made language his study, and who writes in hopes of acquiring a literary reputation. I never, till very lately, thought of appearing as an author on this subject; and, in the frequent perusals of what I had written, my corrections were chiefly in favour of perspicuity. add to this, that the language in which I now write was, for many years, foreign to those with whom I lived and conversed. When these circumstances are added to the intricacy of my subject, which constantly carried off my attention from every ornament of language, I flatter myself that those of my readers, at least, who enter as heartily as I have done into the spirit of this work, will candidly overlook the want of that elegance which adorns the style of some celebrated authors in this Augustan age.

    I present this enquiry to the public as nothing more than an essay which may serve as a canvass for better hands than mine to work upon.

    It contains such observations only as the general view of the domestic policy of the countries I have seen, has suggested. It is a speculation, and no more. It is a rough drawing of a mighty plan, proportioned in correctness to my own sagacity, to my knowledge of the subject, and to the extent of my ideas.

    It goes little farther than to collect and arrange some elements relating to the most interesting branches of modern policy, such as population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes. The principles deduced from all these topics, appear tolerably consistent; and the whole is a train of reasoning, through which I have adhered to the connection of subjects as faithfully as I could: but the nature of the work being a deduction of principles, not a collection of institutions, I seized the opportunities which my reasoning threw in my way, to connect every principle, as I went along, with every part of the inquiry to which it could refer; and when I found the connexion sufficiently shewn, I broke off such disquisitions as would have led me from the object then present.

    When principles thus casually applied in one part, to matters intended to be afterwards treated of in another, came to be taken up a-new, they involved me in what may appear prolixity. This I found most unavoidable, when I was led to thoughts which were new to myself, and consequently such as must have cost me the greatest labour to set in a clear and distinct point of view. Had I been master of my subject on setting out, the arrangement of the whole would have been rendered more concise: but had this been the case, I should never have been able to go through the painful deduction which forms the whole chain of my reasoning, and upon which, to many readers slow in forming combinations, the conviction it carries along with it in a great measure depends: to the few, again, of a more penetrating genius, to whom the slightest hint is sufficient to lay open every consequence before it be drawn, in allusion to Horace, I offer this apology, Clarus esse laboro, prolixus fio.

    The path I have taken was new to me, after all I had read on the subject. I examined, by my own principles, what I had gathered from others; and adopted it as far as I found it tally with collateral circumstances. When, on the other hand, I found a disagreement, I was apprized immediately of some mistake; and this I found constantly owing to the narrowness of the combinations upon which it had been founded.

    The great danger of running into error upon particular points relating to this subject, proceeds from our viewing them in a light too confined, and to our not attending to the influence of concomitant circumstances, which render general rules of little use. Men of parts and knowledge seldom fail to reason consequentially on every subject; but when inquiries are made concerning the complicated interests of society, the vivacity of an author's genius is apt to prevent him from attending to the variety of circumstances which render uncertain every consequence, almost, which he can draw from his reasoning. To this I ascribe the habit of running into what the French call Systèmes. These are no more than a chain of contingent consequences, drawn from a few fundamental maxims, adopted, perhaps, rashly. Such systems are mere conceits; they mislead the understanding, and efface the path to truth. An induction is formed, from whence a conclusion, called a principle, is drawn and defined; but this is no sooner done, than the author extends its influence far beyond the limits of the ideas present to his understanding, when he made his definition. The best method, therefore, to detect a pretended system, is always to substitute the definition in place of the term.

    The imperfection also of language engages us frequently in disputes merely verbal; and instead of being on our guard against the many unavoidable ambiguities attending the most careful speech, we place a great part of our learning when at school, and of our wit when we appear on the stage of the world, in the prostitution of language. The learned delight in vague, and the witty in equivocal terms. In general, we familiarize ourselves so much to words, and think so little, when we speak and write, that the signs of our ideas take the place of the images which they were intended to represent.

    Every true proposition, when understood, must be assented to universally. This is the case always, when simple ideas are affirmed or denied of each other. Nobody ever doubted that sound is the object of hearing, or colour that of sight, or that black is not white. But whenever a dispute arises concerning a proposition, wherein complex ideas are compared, we may often rest assured, that the parties do not understand each other. Luxury, says one, is incompatible with the prosperity of a state. Luxury is the fountain of a nation's welfare and happiness, says another. There may, in reality, be no difference in the sentiments of these two persons. The first may consider luxury as prejudicial to foreign trade, and as corrupting the morals of a people. The other may consider luxury as the means of providing employment for such as must live by their industry, and of promoting an equable circulation of wealth and subsistence, through all the classes of inhabitants. If each of them had attended to the other's complex idea of luxury, with all its consequences, they would have rendered their propositions less general.

    The difference, therefore, of opinion between men is frequently more apparent than real. When we compare our own ideas, we constantly see their relations with perspicuity; but when we come to communicate these relations to other people, it is often impossible to put them into words sufficiently expressive of the precise combination of them we have made in our own minds.

    This being the case, I have avoided, as much as possible, condemning such opinions as I have taken the liberty to review; because I have examined such only as have been advanced by men of genius and reputation; and since all matters of controversy regard the comparison of our ideas, if the terms we use to express them were sufficiently understood by both parties, most political disputes would, I am persuaded, be soon at an end.

    Here it may be objected, that we frequently adopt an opinion, without being able to give a sufficient reason for it; and yet we cannot persuade ourselves to give it up, though we find it combated by the strongest arguments. To this I answer, that in such cases we do not adhere to our own opinions, but to those of others received upon trust. It is our regard for the authority, and not for the opinion, which makes us tenacious: for were the opinion truly our own, we could not fail of seeing, or at least we should not long be at a loss in recollecting, the ground upon which it is built. But when we assent implicitly to any political doctrine, there is no room for reason: we then satisfy ourselves with the persuasion that those whom we trust have sufficient reasons for what they advance. While our assent therefore is implicit, we are beyond conviction; not because we do not perceive the force of the arguments brought against our opinion, but because we are ignorant of the force of those which can be brought to support it: and as no body will sell what belongs to him, without being previously informed of its value, so no body will give up an implicit opinion, without knowing all that can be said for it. To this class of men I do not address myself in this inquiry.

    But I insensibly run into a metaphysical speculation, in order to prove, that in political questions it is better for people to judge from experience and reason, than from authority to explain their terms, than to dispute about words; and to extend the combinations of their own ideas, than to follow conceits, however decorated with the name of systems. How far I have avoided such defects, the reader will determine.

    Every writer values himself upon his impartiality; because he is not sensible of his fetters. The wandering and independent life I have led may naturally have set me free, in some measure, from strong attachments to popular opinions. This may be called impartiality. But as no man can be deemed impartial, who leans to any side whatever, I have been particularly on my guard against the consequences of this sort of negative impartiality; because I have found it sometimes carrying me too far from that to which a national prejudice might have led me.

    In discussing general points, the best method I found to maintain a just balance in this respect, was to avert my eye from the country in which I lived at the time; and to judge of absent things by the absent. Objects which are present, are apt to produce perceptions too strong to be impartially compared with those recalled by memory only.

    When I have had occasion to dip into any question concerning the preference to be given to certain forms of government above others, and to touch upon points which have been the object of sharp disputes, I have given my opinion with freedom, when it seemed proper: but in stating the question, I have endeavoured to avoid all trite, and, as I may call them, technical terms of party; which in such disputes every side chuses to take in their own acceptation: and as there is no sentiment of concord or good-will in their hearts, instead of coming to explanations together, they are charmed to find an occasion to differ concerning general propositions, from those they hate for particular considerations.

    I have sometimes entered so heartily into the spirit of the statesman, as to be apt to forget my station in the society where I live; and when as a private man I have read over the work of the politician, my natural partiality in favour of individuals has led me to condemn, as Machiavellian principles, every sentiment, approving the sacrifice of private concerns in favour of a general plan.

    In order, therefore, to reconcile me to myself in this particular, and to prevent certain expressions here and there interspersed, from making the slightest impression upon a reader of delicate sentiments, I must observe, that nothing would have been so easy as to soften many passages, where the politician appears to have snatched the pen out of the hand of the private citizen: but as I write for such only who can follow a close reasoning, and attend to the general scope of the whole inquiry, I have, purposely, made no correction; but continued painting, in the strongest colours, every inconvenience which must affect certain individuals living under our free modern governments, whenever a wise statesman sets about correcting old abuses, proceeding from idleness, sloth, or fraud in the lower classes, arbitrary jurisdictions in the higher, and neglects in administrations with respect to the interests of both. The more any cure is painful and dangerous, the more ought men carefully to avoid the disease. This leads me to say a word concerning the connection between the theory of morals and that of politics.

    I lay it down as a general maxim, that the characteristic of a good action consists in the conformity between the motive, and the duty of the agent. Were there but one man upon earth, his duty would contain no other precepts than those dictated by self-love. If he come to be a father, a husband, a friend, his self-love falls immediately under limitations: he must withhold from himself, and give to his children; he must know how to sacrifice some of his fancies, in order to gratify, now and then, those of his wife, or of his friend. If he come to be a judge, a magistrate; he must frequently forget that he is a friend, or a father: and if he rise to be a statesman, he must disregard many other attachments more comprehensive, such as family, place of birth, and even, in certain cases, his native country. His duty here becomes relative to the general good of that society of which he is the head: and as the death of a criminal cannot be imputed to the judge who condemns him, neither can a particular inconvenience resulting to an individual, in consequence of a step taken for a general reformation, be imputed to him who sits at the helm of government.

    If it should be asked, of what utility a speculation such as this can be to a statesman, to whom it is in a manner addressed from the beginning to the end: I answer, that although it seem addressed to a statesman, the real object of the inquiry is to influence the spirit of those whom he governs; and the variety of matter contained in it, may even suggest useful hints to himself. But his own genius and experience will enable him to carry such notions far beyond the reach of my abilities.

    I have already said that I considered my work as no more than a canvass prepared for more able hands than mine to work upon. Now although the sketch it contains be not sufficiently correct, I have still made some progress, I think, in preparing the way for others to improve upon my plan, by contriving proper questions to be resolved by men of experience in the practical part of government.

    I leave it therefore to masters in the science to correct and extend my ideas: and those who have not made the principles of policy their particular study, may have an opportunity of comparing the exposition I have given of them with the commonly received opinions concerning many questions of great importance to society. They will, for instance, be able to judge how far population can be increased usefully, by multiplying marriages, and by dividing lands: how far the swelling of capitals, cities and towns, tends to depopulate a country: how far the progress of luxury brings distress upon the poor industrious man: how far restrictions laid upon the corn trade, tend to promote an ample supply of subsistence in all our markets: how far the increase of public debts tends to involve us in a general bankruptcy: how far the abolition of paper currency would have the effect of reducing the price of all commodities: how far a tax tends to enhance their value: and how far the diminution of duties is an essential requisite for securing the liberty, and promoting the prosperity and happiness of a people.

    Is it not of the greatest importance to examine, with candour, the operations by which all Europe has been engaged in a system of policy so generally declaimed against, and so contrary to that which we hear daily recommended as the best? To shew, from the plain principles of common sense, that our present situation is the unavoidable consequence of the spirit and manners of the present times; and that it is quite compatible with all the liberty, affluence, and prosperity, which any human society ever enjoyed in any age, or under any form of government? A people taught to expect from a statesman the execution of plans, big with impossibility and contradiction, will remain discontented under the government of the best of Kings. Book I Of Population and Agriculture Introduction

    Oeconomy, in general, is the art of providing for all the wants of a family, with prudence and frugality.

    If any thing necessary or useful be found wanting, if any thing provided be lost or misapplied, if any servant, any animal, be supernumerary or useless, if any one sick or infirm be neglected, we immediately perceive a want of oeconomy. The object of it, in a private family, is therefore to provide for the nourishment, the other wants, and the employment of every individual. In the first place, for the master, who is the head, and who directs the whole; next for the children, who interest him above all other things; and last for the servants, who being useful to the head, and essential to the well-being of the family, have therefore a title to become an object of the master's care and concern.

    The whole oeconomy must be directed by the head, who is both lord and steward of the family. It is however necessary, that these two offices be not confounded with one another. As lord, he establishes the laws of his oeconomy; as steward, he puts them in execution. As lord, he may restrain and give his commands to all within the house as he thinks proper; as steward, he must conduct with gentleness and address, and is bound by his own regulations. The better the oeconomist, the more uniformity is perceived in all his actions, and the less liberties are taken to depart from stated rules. He is not so much master, as that he may break through the laws of his oeconomy, although in every respect he may keep each individual within the house, in the most exact subordination to his commands. Oeconomy and government, even in a private family, present therefore two different ideas, and have also two different objects.

    What oeconomy is in a family, political oeconomy is in a state: with these essential differences, however, that in a state there are no servants, all are children: that a family may be formed when and how a man pleases, and he may there establish what plan of oeconomy he thinks fit; but states are found formed, and the Oeconomy of these depends upon a thousand circumstances. The statesman (this is a general term to signify the legislature and supreme power, according to the form of government) is neither master to establish what oeconomy he pleases, or, in the exercise of his sublime authority, to overturn at will the established laws of it, let him be the most despotic monarch upon earth.

    The great art therefore of political oeconomy is, first to adapt the different operations of it to the spirit, manners, habits, and customs of the people; and afterwards to model these circumstances so, as to be able to introduce a set of new and more useful institutions.

    The principal object of this science is to secure a certain fund of subsistence for all the inhabitants, to obviate every circumstance which may render it precarious; to provide every thing necessary for supplying the wants of the society, and to employ the inhabitants (supposing them to be free-men) in such a manner as naturally to create reciprocal relations and dependencies between them, so as to make their several interests lead them to supply one another with their reciprocal wants.

    If one considers the variety which is found in different countries, in the distribution of property, subordination of classes, genius of people, proceeding from the variety of forms of government, laws, climate, and manners, one may conclude, that the political oeconomy in each must necessarily be different, and that principles, however universally true, may become quite ineffectual in practice, without a sufficient preparation of the spirit of a people.

    It is the business of a statesman to judge of the expediency of different schemes of oeconomy, and by degrees to model the minds of his subjects so as to induce them, from the allurement of private interest, to concur in the execution of his plan.

    The speculative person who, removed from the practice, extracts the principles of this science from observation and reflection, should divest himself, as far as possible, of every prejudice in favour of established opinions, however reasonable, when examined relatively to particular nations: he must do his utmost to become a citizen of the world, comparing customs, examining minutely institutions which appear alike, when in different countries they are found to produce different effects: he should examine the cause of such differences with the utmost diligence and attention. It is from such inquiries that the true principles are discovered.

    He who takes up the pen upon this subject, keeping in his eye the customs of his own or any other country, will fall more naturally into a description of one particular system of it, than into an examination of the principles of the science in general; he will applaud such institutions as he finds rightly administered at home; he will condemn those which are administered with abuse; but, without comparing different methods of executing the same plan in different countries, he will not easily distinguish the disadvantages which are essential to the institution, from those which proceed from the abuse. For this reason a land-tax excites he indignation of a Frenchman, an excise that of an Englishman. One who looks into the execution of both, in each country, and in every branch of their management, will discover the real effects of these impositions, and be able to distinguish what proceeds from abuse, from what is essential to the burden.

    Nothing is more effectual towards preparing the spirit of a people to receive a good plan of oeconomy, than a proper representation of it. On the other hand, nothing is better calculated to keep the statesman, who is at the head of affairs, in awe.

    When principles are well understood, the real consequences of burdensome institutions are clearly seen: when the purposes they are intended for are not obtained, the abuse of the statesman's administration appears palpable. People then will not so much cry out against the imposition, as against the misapplication. It will not be a land-tax of four shillings in the pound, nor an excise upon wines and tobacco, which will excite the murmurs of a nation; it will be the prodigal dissipation and misapplication of the amount of these taxes after they are laid on. But when principles are not known, all inquiry is at an end, the moment a nation can be engaged to submit to the burden. It is the same with regard to many other parts of this science: while people remain blind they are always mistrustful.

    Having pointed out the object of my pursuit, I shall only add, that my intention is to attach myself principally to a clear deduction of principles, and a short application of them to familiar examples, in order to avoid abstraction as much as possible. I farther intend to confine myself to such parts of this extensive subject, as shall appear the most interesting in the general system of modern politics; of which I shall treat with that spirit of liberty, which reigns more and more every day, throughout all the polite and flourishing nations of Europe.

    When I compare the elegant performances which have appeared in Great Britain and in France with my dry and abstracted manner of treating the same subject, in a plain language void of ornament, I own I am discouraged on many accounts. If I be obliged to set out by laying down, as fundamental principles, the most obvious truths, I dread the imputation of pedantry, and of pretending to turn common sense into science. If I follow these principles through a minute detail, I may appear trifling. I therefore hope the reader will believe me, when I tell him, that these defects have not escaped my discernment, but that my genius, the nature of the work, and the connection of the subject, have obliged me to write in an order and in a style, where every thing has been sacrificed to perspicuity.

    My principal aim shall be to discover truth, and to enable my reader to touch the very link of the chain where I may at any time go astray.

    My business shall not be to seek for new thoughts, but to reason consequentially; and if any thing new shall be found, it will be in the conclusions.

    Long steps in political reasoning lead to error: close reasoning is tedious, and to many appears trivial: this, however, must be my plan, and my consolation is, that the farther I advance, I shall become the more interesting.

    Every supposition must be considered as strictly relative to the circumstances presupposed; and though, in order to prevent misapplication, and to avoid abstraction as much as possible, I frequently make use of examples for illustrating every principle; yet these, which are taken from matters of fact, must be supposed divested of every foreign circumstance inconsistent with the supposition.

    I shall combat no particular opinion in such intricate matters; though sometimes I may pass them in review, in order to point out how I am led to differ from them.

    I pretend to form no system, but, by tracing out a succession of principles, consistent with the nature of man and with one another, I shall endeavour to furnish some materials towards the forming of a good one.