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    An Inquiry into the Principles of Political Economy

    Chap. X Of the Consequences which result from the Separation of the two principal Classes of a People, the Farmers and t

    James Steuart

    17 min

    I am next going to examine the consequences resulting to the state, to the citizens, and to the landed interest, from this kind of separation, as I may call it, between the parent earth and her laborious children, which naturally takes place every where in proportion to the progress of industry, luxury, and the swift circulation of money.

    As to the state, it is, I think, very plain, that, without such a distribution of inhabitants, it would be impossible to levy taxes. For as long as the earth nourishes directly those who are upon her surface, as long as she delivers her fruits into the very hand of him who consumes them, there is no alienation, no occasion for money, consequently no possibility of establishing an extensive taxation, as shall in its place be fully explained. From this principle is, I imagine, to be deduced the reason, why we find taxation so little known under the feudal form of government.

    The personal service of the vassals, with their cattle and servants upon all occasions, made the power and wealth of the lords, and their rents were mostly paid in kind. They lived upon their lands, were commonly jealous of one another, and had constant disputes. This was a very good reason to keep them from coming together. Towns were situated round their habitations. These were mostly composed of the few tradesmen and manufacturers that were in the country. The lord's judge, his fiscal, and his court of record, added to these numbers; lawsuits, and the lord's attendance, brought the vassals frequently together; this gave encouragement to houses of entertainment; and this I take to be the picture of the greatest part of small towns, if we ascend three or four hundred years from the present time.

    Cities were the residence of bishops. These lords were very independent of the civil government, and had at the same time the principal direction in it. They procured privileges to their cities, and these communities formed themselves by degrees into small republics: taxes here have ever been familiar. The feudal lords seldom appeared here, and the inferior classes of the people enjoyed liberty and ease in these cities only.

    In some countries of Europe, as in Germany, the principal citizens, in time, became patricians. In France certain offices of public trust sometimes procured nobility to those who bore them, and always consideration. The representatives of the citizens were even admitted into the states, and formed the tiers êtat. Elsewhere they received casual marks of distinction from the sovereign, as the Lord Mayor of London does to this day usually receive knighthood. In short, the only dawning of public liberty to be met with during the feudal government, was in the cities; no wonder then if they increased.

    Upon the discovery of America and the East-Indies, industry, trade, and luxury, were soon introduced in the kingdoms of Spain, France, and England: the grandeur and power of the Hanstowns had already pointed out to sovereigns the importance of these objects.

    The courts of princes then became magnificent; the feudal lords insensibly began to frequent them with more assiduity than formerly. The splendor of the prince soon eclipsed those rays which shone around them upon their own lands. They now no more appeared to one another as objects of jealousy, but of emulation. They became acquainted, began to relish a court life, and every one proposed to have a house in the capital. A change of habitation made a change of circumstances, both as to city and country. As to the city; so far as inhabitants were increased, by the addition of the great lords, and of those who followed their example, so far demand increased for every sort of provision and labour; and this quickly drew more inhabitants together. Every one vied with another in magnificence of palaces, clothes, equipages. Modes changed and by turns enlivened the different branches of ingenuity. Whence came so great a number of inhabitants all of a sudden? He who would have cast his eyes on the deserted residences of the nobility, would quickly have discovered the source; he would there have seen the old people weeping and wailing, and nothing heard among them but complaints of desolation: the youth were retired to the city: there was no change as to them.

    This is no doubt a plain consequence of a sudden revolution, which never can happen without being attended with great inconveniences. Many of the numerous attendants of the nobility who uselessly filled every house and habitation belonging to the great man, were starving for want. He was at court, and calling aloud for money, a thing he was seldom accustomed to have occasion for, except to lock up in his chest. In order to procure this money, he found it expedient to convert a portion of the personal services of his vassals into cash: by this he lost his authority. He then looked out for a farmer (not a husbandman) for an estate which he formerly consumed in its fruits. This undertaker, as I may call him, began by dismissing idle mouths. Still greater complaints ensued. At last, the money spent in the city began to flow into the hands of the industrious: this raised an emulation and the children of the miserable, who had felt the sad effects of the revolution, but who could not foresee the consequences, began to profit by it. They became easy and independent in the great city, by furnishing to the extravagance of those under whose dominion they were born.

    This progression is perhaps too minutely traced to be exact; I therefore stop, to consider the situation of affairs at that period, when all the inconveniences of the sudden revolution had ceased, and when things were come to the state in which we now find them. Capitals swelled to a great extent; Paris and London appearing monstrous to some, as being a load upon the rest of the country. This must be examined.

    We agree, I suppose, that the inhabitants of cities are not employed in agriculture, and we may agree that they are fed by it: we have examined into the causes of the increase of cities, and we have seen the fund provided for their subsistence, to wit, the surplus of fruits produced by husbandmen.

    What are then the advantages resulting to the citizens from this great increase of their city? I cannot find any great benefit resulting to each individual from this circumstance; but I conclude, that the same advantages which many find in particular, must be common to great numbers, consequently great numbers are gathered together.

    The principal objections against great cities are, that health there is not so good, that marriages are not so frequent as in the country, that debauchery prevails, and that abuses are multiplied.

    To this I answer, that these objections lie equally against most cities, and are not peculiar to those complained of for their bulk; and that the evils proceed more from the spirit of the inhabitants, than from the size of the capital.

    It is further urged, that the number of deaths exceeds the number of births in great cities; consequently smaller towns, and even the country, is stripped of its inhabitants, in order to recruit these capitals.

    Here I first deny, that in all capitals the number of deaths exceeds the number of births; for in Paris it is otherwise. But supposing the assertion to be true, what conclusion can be drawn from it, except that many people who are born in the country die in town. That the country should furnish cities with inhabitants is no evil. What occasion has the country for supernumerary hands? If it has enough for the supply of its own wants, and of the demands of cities, has it not enough? Had it more, the supernumeraries would either consume without working, or, if added to the class of labourers, instead of being added to the number of free hands, would overturn the balance between the two classes; grain would become too plentiful, and that would cast a general discouragement upon agriculture: whereas, by going to cities, they acquire money, and therewith purchase the grain they would have consumed, had they remained in the country; and this money, which their additional labour in cities will force into circulation, would otherwise have remained locked up, or at least would not have gone into the country, but in consequence of the desertion of the supernumeraries. The proper and only right encouragement for agriculture, is a moderate and gradual increase of demand for the productions of the earth: this works a natural and beneficial increase of inhabitants; and this demand must come from cities, for the husbandmen never have occasion to demand; it is they who offer to sale.

    The high prices of most things in large cities is a benefit surely, not a loss to the country. But I must observe, that the great expence of living in capitals does not affect the lower classes, nor the moderate and frugal, in any proportion to what it does the rich. If you live on beef, mutton, bread, and beer, you may live as cheap in London and in Paris as in most cities I know. These articles abound, and though the demand be great, the provision made for supplying it is in proportion. But when you come to fish, fowl, and game; delicacies of every kind brought from far, by the post, by ships, and by messengers; when you have fine equipages, large houses, expensive servants, and abundance of waste in every article, without one grain of oeconomy in any, it is no wonder that money should run away so fast. I do not, from what has been said, conclude, that there is any evident advantage in having so overgrown a capital as London in such a kingdom as England; but that I do not find great force in the objections I have met with against it. That there may be others which I do not know, I will not deny, because I am not sufficiently acquainted with that kingdom to be a competent judge of the matter.

    Let me now conclude this chapter, by mentioning in what respects I think cities an advantage, in general, to a country; and, as I go along, I shall point out wherein they prove a disadvantage, in particular, to some parts of it.

    The general advantages of them are:

    First, To remove the necessary load upon the land; those idle people, who eat up a part of the produce of labour without contributing to it.

    Secondly, The opportunity of levying taxes, and of making these affect the rich, in proportion to the consumption they make, without hurting industry or exportation.

    Thirdly, The advantages resulting to the landed interest are no less considerable. This is proved by universal experience; for we see every where, that the moment any city, town, or village, begins to encrease, by the establishment of trade or manufactures, the lands round about immediately rise in their value. The reason of this seems easily deduced from the above principles.

    When a farmer has got his oeconomy under right regulations, not one supernumerary, nor useless mouth, but abundance of hands for every kind of labour, which is generally the case near towns and cities, the proximity of them discharges him of every superfluity. His cattle consume the exact quantity of grain and of forage necessary; what remains is money, a superfluous egg is money; a superfluous day of a cart, of a horse, a superfluous hour of a servant, is all money to the farmer. There is a constant demand for every thing he can do or furnish. To make this the more sensibly perceived, remove into a province, far from a town, and compare situations. There you find abundance of things superfluous, which cannot be turned into money, which therefore are consumed without much necessity, and with little profit. It is good to have an estate there, when you want to live upon it; it is better to have one near the great town, when you do not.

    It may be alleged, that the disadvantages felt by the distant farmer and proprietor, when they compare situations with those residing near the town, proceed from the town: this must be examined.

    If the town consume the produce of this distant farm, it must consume it in competition with every place at a smaller distance; consequently this competition must do more good than harm to the distant farm. If the city consume none of the produce, wherein does it affect it? It may be answered, that, by entering into competition with the distant farmer for the labouring inhabitants, these desert agriculture, in favour of a more lucrative occupation, to be found in the city. Scarcity of hands in the country raises the price of labour on one hand, while it diminishes the price of subsistence on the other; consequently the farmer suffers a double disadvantage. Of this there can be no doubt; but as these revolutions cannot by their nature be sudden, it becomes the duty of the statesman, whom I suppose constantly awake, directly to set on foot some branch of industry in every such distant part of the country; and as prices of subsistence will diminish for a while, for the reasons above-mentioned, this will prove an encouragement to the establishment; this again will accelerate propagation, as it will prove an outlet for children, and, in a short time, the farmer will find himself in a better situation than ever. But even without this assistance from industry the state, a few years will set all to rights, provided the spirit of is kept up: for cities, by swelling, extend their demand to the most distant corners of a country; the inhabitants who desert do not cease to consume, and thereby they repair the hurt they do by their desertion. I appeal to experience for the truth of this. Do we not perceive demand extending every year farther and farther from great capitals? I know places in France which, twenty years ago, never knew what it was to send even a delicacy to Paris, but by the post, and which now send thither every week loaded waggons, with many thousand weight of provisions, so much that I may almost say, that a fatted chicken in the most distant province of that country can be sold with great profit in the Paris market during all the winter season; and cattle carry thither their own flesh cheaper than any waggon can. What distant farm then can complain of the greatness of that noble city? There is however a case, where a distant part of a country may suffer in every respect, to wit, when the revolution is sudden; as when a rich man, who used to spend his income in his province, for the encouragement of industry, goes to Paris or London, and stays away for a year or two, without minding the interest of the estate he abandons. No doubt this must affect his province in proportion; but in every revolution which comes on gradually by the desertion of such only as lived by their industry, new mouths are born and supply the old. The only question is about employing them well: while you have superfluous food and good oeconomy, a country will always reap the same benefit from her natural advantages.

    Fourthly, Another advantage of cities is, the necessity arising from thence of having great roads, and these again prove a considerable encouragement to agriculture.

    The miserable condition of roads over all Europe almost, till within these hundred years, is a plain proof of the scanty condition of the cities, and of the small encouragement formerly given towards extending the improvement of the soil.

    Let any one examine the situation of the landed interest before the making of great roads in several provinces in France, and compare it with what it is at present. If this be found a difficult inquiry, let him compare the appearance of young gentlemen of middling fortune, as he finds them at Paris, or in their regiment, with that of their fathers, who live in their province in the old way, and he will have a very good opportunity of perceiving the progress of ease and refinement in this class, which has proceeded from no other cause than the improvement of the soil. People complain that prices are risen; of this there is no doubt with regard to many articles. Is not this quite consistent with our principles? It is not because there is now a larger mass of money in the kingdom, though I allow this to be true, and also that this circumstance may have contributed to raise prices; but the direct principle which has influenced them, and which will always regulate their rise and fall, is the increase of demand. Now the great roads in a manner carry the goods to market; they seem to shorten distances, they augment the number of carriages of all sorts, they remove the inconveniences above-mentioned resulting from the distance of the city. The more distant parts of the country come to market, in competition with the farmers in the neighbourhood of the cities. This competition might make the rents of lands lying round such cities as were the first to encourage industry, sink in their value. But the hurt in this respect done to the proprietors of these lands would soon be repaired. The cities would increase in bulk, demand would increase also, and prices would rise a-new. Every thing which employs inhabitants usefully promotes consumption; and this again is an advantage to the state, as it draws money from the treasures of the rich into the hands of the industrious. The easy transportation of fruits produces this effect: the distant farmer can employ his idle hours in providing, and the idle days of his servants and cattle in sending things to market, from farms which formerly never knew what it was to sell such productions.

    I shall carry these speculations no farther, but conclude by observing, that the making of roads and navigable canals must advance population, as they contribute to the advancement of agriculture.