CHAP. VIII.Of the tendency of capital and industry to leave a wealthy country, and of the depreciation of money in agricultural and commercial countries............. 161CHAP. IX.Conclusion of the interior causes. -- Their co-operation. -- Their general effect on the government and on the people. -- The danger arising from them does not appear till the progress in decline is far advanced......... 166CHAP. X.Of the external causes of decline. -- The envy and enmity of other nations. -- Their efforts, both in peace and war, to bring wealthy nations down to their level........ 175CHAP. XI.Why the intercourse between nations is ultimately in favour of the poorer one, though not so at first............................. 179CHAP. XII.Conclusion of exterior causes. -- Are seldom of much importance, unless favoured by interior ones. -- Rich nations, with care, capable, in most cases, of prolonging their prosperity. -- Digression on the importance of public revenue, illustrated by a statistical chart................... 184[end of page #xix]BOOK III.CHAP. I.Result of the foregoing Inquiry applied to Britain. -- Its present state, in what its wealth consists; illustrated by a chart, shewing the increase of revenue and commerce........................191CHAP. II.Of education, as conducted in England. -- Amelioration proposed. -- Necessity of government interfering, without touching the liberty of the subject............................ 216CHAP. III.Of the effects of taxation in England........229CHAP. IV.Of the national debt and sinking fund. -- Advantages and disadvantages of both. -- Errors committed in calculating their effects. -- Causes of error. -- Mode proposed for preventing future increase....................234CHAP. V.Of taxes for the maintenance of the poor. -- Their enormous increase. -- The cause. -- Comparison between those of England and Scotland. -- Simple, easy, and humane mode of reducing them..............247CHAP. VI.Causes of decline, peculiar to England.................... 257CHAP. VII.Circumstances peculiar to England, and favourable to it............. 261CHAP. VIII.Conclusion.................... 276Application of the present Inquiry to nations in general..............289ANI N Q U I R Y,&c. &c.======BOOK I.======CHAP. I.Introduction and Plan of the Work. -- Explanation of what the Author understands by Wealthy and Powerful Nations, and of the General Causes of Wealth and Power.ONE of the most solid foundations on which an enquirer can proceed in matters of political economy, as connected with the fate of nations, seems to be by an appeal to history, a view of the effects that have been produced, and an investigation of the causes that have operated in producing them.Unfortunately, in this case, the materials are but very scanty, and sometimes rather of doubtful authority; nevertheless, such as they are, I do not think it well to reject the use of them, and have, therefore, begun, by taking a view of the causes that have ruined nations that have been great and wealthy, beginning with the earliest records and coming down to the present time. {5}---{5} Dr. Robertson very truly says, "It is a cruel mortification, in searching for what is instructive in the history of past times, to find that the exploits of conquerors who have desolated the earth, and the freaks of tyrants who have rendered nations unhappy, are recorded with minute, and often disgusting accuracy, while the discovery of useful arts, and the progress of the most beneficial branches of commerce are passed over in silence, and suffered to sink in oblivion." Disquisition on the Ancient Commerce to India.-=-[end of page #1]I divide this space into three periods, because in each is to be seen a very distinct feature.During the first period, previous to the fall of the Roman empire, the order of things was such as had arisen from the new state of mankind, who had gradually increased in numbers, and improved in sciences and arts. The different degrees of wealth were owing, at first, to local situation, natural advantages, and priority in point of settlement, till the causes of decline begun to operate on some; when the adventitious causes of wealth and power, producing conquest, began to establish a new order of things.The second period, from the fall of the Roman government till the discovery of America, and the passage to the East Indies, by the ocean, has likewise a distinct feature, and is treated of by itself.The rulers of mankind were not then men, who from the ease and leisure of pastoral life, under a mild heaven, had studied science, and cultivated the arts; they were men who had descended from a cold northern climate, where nature did little to supply their wants, where hunger and cold could not be avoided but by industry and exertion; where, in one word, the sterility of nature was counteracted by the energy of man.The possessors of milder climates, and of softer manners, falling under the dominion of such men, inferior greatly in numbers, as well as in arts, intermixed with them, and formed a new race, of which the character was different; and it is a circumstance not a little curious, that while mankind were in a state at which they had arrived by increasing population, and by the arts of peace, slavery was universal: but that when governed by men who were conquerors, and owed their superiority to force alone, where slavery might have been expected to originate, it was abolished. {6}---{6} This fact, which is indisputable, has, at first sight, a most extraordinary appearance, that is to say, seems difficult to account for; but a little examination into circumstances will render it easily understood.In warm and fertile countries, the love of ease is predominant, and the services wanted are such as a slave can perform. The indolent habits of people make them consider freedom as an object of less importance than exemption from care. While the rulers of mankind were indolent and luxurious, they were interested in continuing slavery, which must have [end of page #2] originated in barbarism and ignorance. But the northern nations were different; with them, neither the moral character, the physical powers, or the situation of things, favoured slavery. The services one man wanted of another were not such as a slave could be forced to perform: neither are men who are fitted for performing such offices disposed to submit to slavery. Shepherds may be reduced to the situation of slaves, but hunters will not be likely to submit to such a situation, even if their occupation admitted of it. Slaves can only be employed to perform labour that is under the eye of an overseer or master, or the produce of which is nearly certain: but the labour of a hunter is neither the one nor the other, it is, therefore, not of the sort to be performed by slaves. The athletic active life necessary for a hunter is, besides, unfriendly to slavery, if not totally at variance with it. What does a slave receive in return for his service? Lodging, nourishment, and a life free from care. A hunter is obliged to provide the two former for himself, and the latter it is impossible for him to enjoy. The same thing goes even to hired servants. In the rudest state of shepherds, there are hired servants, but men in a rude state never hunt for wages: they are their own masters: they may hunt in society or partnership, but never as slaves or hired servants.-=-The progress towards wealth in this new state of things was very slow, but the equality that prevailed amongst feudal barons, their love of war and glory, and the leisure they enjoyed, by degrees extended the limits of commerce very widely, as the northern world never could produce many articles which its inhabitants had by their connection with the south learnt to relish and enjoy.The intermediate countries, that naturally formed a link of connection between the ancient nations of the east and the rough inhabitants of the north, profited the most by this circumstance; and we still find the borders of the Mediterranean Sea, though no longer the seat of power, the places where wealth was chiefly concentrated.The impossibility of the inhabitants of the northern countries transporting their rude and heavy produce, in order to exchange it for the luxuries of the south, gave rise to manufactures as well as fishing on the southern confines of the Baltic Sea; from whence arose the wealth of Flanders, Holland, and the Hans Towns. This forms an epoch entirely new in its nature and description, and its termination was only brought on by the great discovery of the passage to Asia, by the Cape of Good Hope, and to America, by sailing straight out into the Atlantic Ocean.The nations that had till those discoveries been the best situated for [end of page #3] commerce no longer enjoyed that advantage; by that means it changed its abode; but not only did it change its abode, it changed its nature, and the trifling commerce that had hitherto been carried on by the intervention of caravans by land, or of little barks coasting on the borders of the Mediterranean Sea, (never venturing, without imminent danger, to lose sight of the shore,) {7} was dropt for that bold and adventurous navigation, connecting the most distant parts of the world; between which since then large vessels pass with greater expedition and safety than they formerly did between the Grecian Islands, or from Italy to Africa.Three inventions, two in commerce and the other in war, nearly of equal antiquity, formed this into one of these epochs that gives a new feature to things.The discovery of the magnetic power of the needle improved and totally altered navigation. The art of printing gave the means of extending with facility, to mankind at large, the mode of communicating thoughts and ideas, which had till then been attended with great difficulty, and confined to a few. This placed men nearer upon an equality with respect to mind, and greatly facilitated commerce and the arts. The invention of gun-powder nearly at the same time changed the art of war, not only in its manner, but in its effect, a point of far greater importance. While human force was the power by which men were annoyed, in cases of hostility, bodily strength laid the foundation for the greatness of individual men, as well as of whole nations. So long as this was the case, it was impossible for any nation to cultivate the arts of peace, (as at the present time), without becoming much inferior in physical force to nations that preferred hunting or made war their study; or to such as preferred exercising the body, as rude nations do, to gratifying the appetites, as practised in wealthy ones. To be wealthy and powerful long together was then impossible.Since this last invention, the physical powers of men have ceased to occupy any material part in their history; superiority in skill is now the great object of the attainment of those who wish to excel, {8} and---{7} It was forbidden by law, formerly, in Spain, to put to sea from the 11th of November to the 10th of March.{8} In the divine poem of the Iliad, Nestor, for experience and wisdom, and Ulysses, for [end of page #4] cunning, are the only two heroes whose minds gave them a superiority; but they make no figure compared to Achilles and Hector, or even the strong, rough, and ignorant Ajax. To bear fatigue, and understand discipline, is the great object at present; for though, of late years, the increased use of the bayonet seems to be a slight approximation to the ancient mode of contending by bodily strength, it is to be considered, on the other hand, that artillery is more than ever employed, which is increasing the dissimilarity. Again, though the bayonet is used, it is under circumstances quite new. Great strength enabled a single man, by wearing very thick armour, and wielding a longer sword or spear, to be invulnerable to men of lesser force, while he could perform what feats he pleased in defeating them. As gun-powder has destroyed the use of heavy armour, though with the sabre and bayonet men are not equal, they are all much more nearly so. No one is invulnerable, even in single combat, with thearme blanche, and with fire arms they are nearly on an equality. The changes that this makes, through every department of life, are too numerous to be enlarged upon, or not to be visible to all.-=-men may devote themselves to a life of ease and enjoyment without falling under a real inferiority, provided they do not allow the mind to be degraded or sunk in sloth, ignorance, or vice.Those discoveries, then, by altering the physical powers of men, by changing their relations and connections, as well as by opening new fields for commerce, and new channels for carrying it on, form a very distinct epoch in the history of wealth and power, and alter greatly their nature in the detail; though, in the main outline and abstract definition, they are still the same; having always the same relation to each other, or to the state of things at the time.This last period is then very different in its nature, and much more important than either of the others that preceded it; yet, in one thing, there is a similarity that runs through the whole, and it is a very important one.The passions and propensities of mankind, though they have changed their objects, and the means of their gratification, have not changed their nature. The desire of enjoyment; and of enjoyment with the least trouble possible, appears to be the basis of all the passions. Hence, envy, jealousy, friendship, and the endless train of second-rate effects, appear all to be produced by that primary passion; {9} and as from---{9} The very learned and ingenious author of the Inquiry into the Origin and Causes of the Wealth of Nations, traces all this to an innate propensity to barter. But barter is only a means, and not even the means to which mankind shew the greatest pro- [end of page #5] pensity; for, wherever they have power to take by force or pillage, they never barter. This is seen both in an infantine and adult state; children cry for toys, and stretch at them before they offer to exchange; and, conquerors or soldiers never buy or barter, when they can take, unless they are guided by some other motive than mere natural propensity. A highwayman will pay for his dinner at an inn, as willingly as a traveller, because he acts from other motives than propensity, but he will strip the inn-keeper when he meets him on the road.-=-this originate the wealth as well as the decline of nations, the history of the revolutions in wealth and power, during the two first periods, are by no means unimportant; besides, as their duration was much longer than that of the latter, they lead to a more certain conclusion.The review of what has taken place will occupy the first book; and serve as a data for an inquiry into the nature and causes of the fall of nations.The first part of the second book will be dedicated to investigating the internal causes of decline; that is to say, all those causes which arise from the possession of wealth and power, operating on the habits, manners, and minds of the inhabitants; as also on the political arrangements, laws, government, and institutions, so far as they are connected with the prosperity or decline of nations.The latter part of the same book will treat of the exterior causes of decline, arising from the envy of other nations; their advancement in the same arts to which the nations that are rich owe their wealth, or their excelling them in other arts, by which they can be rivalled, reduced, or subdued.After having inquired into external and internal causes; and the operation of each and of both, (though they never act quite separately,) accidental causes, will make an object for consideration, which will bring the general inquiry to a conclusion.The third book will begin with an application of the information obtained to the present state of England: by comparing its situation with that of nations that were great; and, by endeavouring to point out a means by which its decline may be prevented.Though we know that, in this world, nothing is eternal, particularly in the institutions of man; yet, by a sort of fiction in language, when the final term is not fixed, and the end desirable, what is known to be [end of page #6] temporary is considered as perpetual. Thus, the contract between the king and the people, the constituent laws of a country, &c. are considered as permanent and of eternal duration.In this case, though the final decline of a nation cannot be prevented; though the nature of things will either, by that regular chain of causes which admits of being traced, or by their regular operation of coincident causes which is termed accidental, sooner or later put an end to the prosperity of every nation, yet we shall not speak of prolonging prosperity, but of preventing decline, just as if it were never to happen at any period.Before entering upon this Inquiry, it may be well, for the sake of being explicitly understood, to define what I mean by wealthy and powerful nations.In speaking of nations, wealth and power are sometimes related to each other, as cause and effect. Sometimes there is between a mutual action and re-action. In the natural or ordinary course of things, they are, at first, intimately connected and dependent on each other, till, at last, this connection lessening by degrees, and they even act in opposite directions; when wealth undermines and destroys power, but power never destroys wealth. {10}Though wealth and power are often found united, they are sometimes found separated. Wealth is altogether a real possession; power is comparative. Thus, a nation may be wealthy in itself, though unconnected with any other nation; but its power can only be estimated by a comparison with that of other nations.Wealth consists in having abundance of whatever mankind want or desire; and if there were but one nation on earth, it might be wealthy; but it would, in that case, be impossible to measure its power.Wealth is, however, not altogether real; it is in a certain degree comparative, whereas power is altogether comparative.The Romans, for example, may very justly be called the most---{10} Till a nation has risen above its neighbours, and those to whom it compares itself, wealth and power act in the same direction; but, after it has got beyond that point, they begin to counteract each other.-=-[end of page #7]powerful nation that ever existed, yet a single battalion of our present troops, well supported with artillery, would have probably destroyed the finest army they ever sent into the field. A single ship of the line would certainly have sunk, taken, or put to flight, all the fleets that Rome and Carthage ever sent to sea. The feeblest and least powerful of civilized nations, with the present means of fighting, and the knowledge of the present day, would defeat an ancient army of the most powerful description. Power then is entirely relative; and what is feebleness now, would, at a certain time, have been force or power.It is not altogether so with wealth, which consists in the abundance of what men desire. The Egyptians, Greeks, and Romans, had wealth; and this, though, perhaps, not consisting in the same objects, was, perhaps, not inferior to ours at the present time; but as wealth, purely and simply, no comparison between different nations was necessary, farther than that men's desires are augmented, by seeing the abundance possessed by others; and therefore they become comparative, as to wealth. Without, however, entering into a long examination respecting the various possible combinations of wealth and power, which are something similarly connected in states, as health and strength are in the animal body, {11} let both be considered only in a comparative way; the comparison either being made with other nations at the same time, or with the same nation at different times. Thus, for example, in comparing the wealth and power of Britain now, with what they were at the latter end of Queen Elizabeth's reign, we find that the merchants of Liverpool, during the first three years of last =sic= war, fitted out a force of privateers equal to the Spanish armada; and consequently superior to the whole naval force of England at that time; there can be no doubt, then, that both the wealth and power of the nation are increased. Again, if we find that our ships block up the---{11} A man may be very feeble, yet in very good health for his whole life-time. He may also have great strength, though he may not enjoy a very good state of health; yet nevertheless, health and strength are very intimately connected, and never can be completely separated.-=-[end of page #8]ports of Holland, and prevent their navy from venturing to sea, we must conclude, that the relative power of the two nations is altered, since the time that the Dutch fleet rode triumphant in the river Thames. But, if we want to make a comparison between the naval power of England and that of France and Spain, we must not compare it with the strength of their navies in the year 1780, when they bid us defiance at Plymouth, but take things actually as they are at this present time.When a nation is upon an equality with others, for wealth, it may be considered as neither deserving the name of a rich or a poor nation, whatever its real wealth or poverty may be. The same thing holds with power. When a nation is merely able to protect itself, but fully equal to that, though unable to make conquests, or aggrandize itself, against the will of other nations, it may be said to be neither weak nor strong. Thus, for example, Denmark as a nation is upon a par with others; and neither to be called wealthy and powerful, nor weak and poor, though it certainly has both more actual wealth and power than it had in the eighth century, when the Danes burnt London, Paris, and Cologne.Thus, then, with respect to my reasoning, the whole is to be considered as applying to other nations at the same time; and the degree they are above or below par, is the measure of wealth and power, poverty and weakness. {12}But, with respect to a nation itself, wealth is comparative in the progression of time. In speaking of power, we compare nations at the same period, and, in speaking of wealth, we may either compare a nation with itself at different periods, or with others at the same time.We shall not find any example of a nation's becoming less wealthy whilst it increased in power; but we shall find many instances of nations becoming wealthy whilst they were losing their power, though,---{12} According to this definition, if all the nations on earth were to increase in wealth and power equally, they would be considered as stationary; their relative situations would remain the same; like those of the fixed stars, or those of soldiers who march in a regiment with perfect regularity, and retain their relative portion in the same manner as if they stood still. But this case, among nations, is only an imaginary one; therefore, the definition given answers the true purpose of investigation.-=-[end of page #9]together with the power, the wealth always, a little sooner or a little later, vanishes away.Sometimes nations owe their wealth and greatness to accidental causes, that, from their nature, must vanish away; and sometimes to causes which, depending upon the nations themselves, may be prolonged. In general, both the two sorts of causes have united to render every nation great that has been distinguished amongst others for riches or power.The causes, then, divide themselves into two of distinct kinds;-- those which are independent of the nation itself, and those over which it has some degree of influence and controul.In early ages, when knowledge was but little advanced, and when the small stock that had been accumulated was confined nearly to a single spot, the first description of causes were the principal ones. -- Local situation, priority in discovery, or in establishment, gave to one nation a superiority over others, and occasioned the accumulation of wealth, and the acquisition of power and territory. {13} As in the early stages of human life, a few years more or less occasion a greater difference, both in physical powers and mental faculties, than any difference of innate genius, or adventitious circumstances; so, in the early days of the world, when it was young in knowledge, and scanty in population, priority of settlement gave a great advantage to one nation over others, and, of consequence, enabled them to rule over others; thus the Assyrian and Egyptian empires were great, powerful, and extensive, while the nations that were beyond their reach were divided into small states or kingdoms, on the most contemptible scale.Time, however, did away the advantages resulting from priority of establishment.Local situation was another cause of superiority, of a more permanent nature; but this, also, new discovery has transferred from one na----{13} It is not meant, by any means, to enter into an inquiry, much less controversy, respecting the antiquity of mankind; but it is very clear that the knowledge of arts and sciences can be traced to an infant state about two thousand years before the Christian aera.-=-[end of page #10]tion to another. Qualities of the soil and climate are counteracted by the nature and habits of the inhabitants, which frequently, in the end, give the superiority where there was at first an inferiority.If ever the nations of the world come to a state of permanence, (which in all probability will never be the case,) it must be when population is nearly proportioned to the means of subsistence in different parts; when knowledge is nearly equally distributed and when no great discoveries remain to be made either in arts, science, or geography.While the causes from which wealth and power rise in a superior degree, are liable to change from one nation to another, wealth and power must be liable to the same alterations and changes of place; so long any equal balance among nations must be artificial. But when circumstances become similar, and when the pressure becomes equal on all sides, then nations, like the particles of a fluid, though free to move, having lost their impulse, will remain at rest.If such a state of things should ever arrive, then the wealth and power would be only real, not comparative. The whole might be very rich, very affluent, and possess great abundance of every thing, either for enjoyment or for defence, without one nation having an advantage over another: they would be on an equality.But this state of things is far from being likely soon to take place. Population is far from come to its equilibrium, and knowledge {14} is farther distant still. Russia and America, in particular, are both behind in population, and the inhabitants of the latter country are far from being on a par in knowledge with the rest of Europe; when they become so, the balance will be overturned, and must be re-established anew.The great discoveries that have taken place in knowledge and geography have been connected.While navigation was little understood, the borders of the Mediterranean Sea, and the islands in it, were naturally the first places for wealth and commerce.The discovery of the compass, and others that followed, rendered---{14} By knowledge is only meant the knowledge of the arts that make men useful, =sic= such as agriculture, manufactures, legislation, &c.-=-[end of page #11]the navigation of the open ocean, more easy and safe than that of the circumscribed seas. This laid a great foundation for change and discovery; it brought Britain into importance, ruined Italy, Genoa, Venice, &c. and has laid the foundation for further changes still.As for discoveries in arts, it would be bold and presumptuous indeed to attempt to set any bounds to them. Discoveries, however, that alter the relations of mankind very materially, are probably near at an end. In arts they give only a temporary preference. {15} If a method should be discovered to cultivate a field with half the trouble, and to double the produce, which seems very possible, it would be a great discovery, and alter the general state of mankind considerably; but it would soon be extended to all nations, as the use of gunpowder has been. New produce, or means of procuring the old more easily, are the things chiefly sought after. Potatoes, coffee, tea, sugar, cotton, silk, distilled spirits, are new productions, unknown to the Romans. Glass, gunpowder, printing, windmills, watermills, steam-engines, and the most part of spinning and weaving machines, are new inventions, but they can be extended to all countries. The mariners compass changed the relative position of places, and no new invention of the same importance, as to its effects on nations, probably can take place. Navigation does not admit of a similar improvement to that which it has received. If goods could be conveyed for a quarter of the present price it would not produce the same sort of effect. To render navigating the ocean practicable was a greater thing than any possible improvement on that practicability.As for new discoveries in geography, they are nearly at an end. The form and the extent of the earth are known, and the habitable regions are nearly all explored.We have, then, arrived at a state of things where many of the causes that formerly operated on reducing wealthy nations can never again produce a similar effect. But still there are other causes which ope----{15} The end of all discovery is to supply men with what they want; and, accordingly, all nations that are considered as civilised find the means of participating in the advantage of a new discovery, by imitating that which possesses the invention first, and that is done almost immediately. It was very different formerly.
CHAP. VIII.
Of the tendency of capital and industry to leave a wealthy country, and of the depreciation of money in agricultural and commercial countries............. 161
CHAP. IX.
Conclusion of the interior causes. -- Their co-operation. -- Their general effect on the government and on the people. -- The danger arising from them does not appear till the progress in decline is far advanced......... 166
CHAP. X.
Of the external causes of decline. -- The envy and enmity of other nations. -- Their efforts, both in peace and war, to bring wealthy nations down to their level........ 175
CHAP. XI.
Why the intercourse between nations is ultimately in favour of the poorer one, though not so at first............................. 179
CHAP. XII.
Conclusion of exterior causes. -- Are seldom of much importance, unless favoured by interior ones. -- Rich nations, with care, capable, in most cases, of prolonging their prosperity. -- Digression on the importance of public revenue, illustrated by a statistical chart................... 184
[end of page #xix]
BOOK III.
CHAP. I.
Result of the foregoing Inquiry applied to Britain. -- Its present state, in what its wealth consists; illustrated by a chart, shewing the increase of revenue and commerce........................191
CHAP. II.
Of education, as conducted in England. -- Amelioration proposed. -- Necessity of government interfering, without touching the liberty of the subject............................ 216
CHAP. III.
Of the effects of taxation in England........229
CHAP. IV.
Of the national debt and sinking fund. -- Advantages and disadvantages of both. -- Errors committed in calculating their effects. -- Causes of error. -- Mode proposed for preventing future increase....................234
CHAP. V.
Of taxes for the maintenance of the poor. -- Their enormous increase. -- The cause. -- Comparison between those of England and Scotland. -- Simple, easy, and humane mode of reducing them..............247
CHAP. VI.
Causes of decline, peculiar to England.................... 257
CHAP. VII.
Circumstances peculiar to England, and favourable to it............. 261
CHAP. VIII.
Conclusion.................... 276
Application of the present Inquiry to nations in general..............289
AN
I N Q U I R Y,
&c. &c.
======
BOOK I.
======
CHAP. I.
Introduction and Plan of the Work. -- Explanation of what the Author understands by Wealthy and Powerful Nations, and of the General Causes of Wealth and Power.
ONE of the most solid foundations on which an enquirer can proceed in matters of political economy, as connected with the fate of nations, seems to be by an appeal to history, a view of the effects that have been produced, and an investigation of the causes that have operated in producing them.
Unfortunately, in this case, the materials are but very scanty, and sometimes rather of doubtful authority; nevertheless, such as they are, I do not think it well to reject the use of them, and have, therefore, begun, by taking a view of the causes that have ruined nations that have been great and wealthy, beginning with the earliest records and coming down to the present time. {5}
---
{5} Dr. Robertson very truly says, "It is a cruel mortification, in searching for what is instructive in the history of past times, to find that the exploits of conquerors who have desolated the earth, and the freaks of tyrants who have rendered nations unhappy, are recorded with minute, and often disgusting accuracy, while the discovery of useful arts, and the progress of the most beneficial branches of commerce are passed over in silence, and suffered to sink in oblivion." Disquisition on the Ancient Commerce to India.
-=-
[end of page #1]
I divide this space into three periods, because in each is to be seen a very distinct feature.
During the first period, previous to the fall of the Roman empire, the order of things was such as had arisen from the new state of mankind, who had gradually increased in numbers, and improved in sciences and arts. The different degrees of wealth were owing, at first, to local situation, natural advantages, and priority in point of settlement, till the causes of decline begun to operate on some; when the adventitious causes of wealth and power, producing conquest, began to establish a new order of things.
The second period, from the fall of the Roman government till the discovery of America, and the passage to the East Indies, by the ocean, has likewise a distinct feature, and is treated of by itself.
The rulers of mankind were not then men, who from the ease and leisure of pastoral life, under a mild heaven, had studied science, and cultivated the arts; they were men who had descended from a cold northern climate, where nature did little to supply their wants, where hunger and cold could not be avoided but by industry and exertion; where, in one word, the sterility of nature was counteracted by the energy of man.
The possessors of milder climates, and of softer manners, falling under the dominion of such men, inferior greatly in numbers, as well as in arts, intermixed with them, and formed a new race, of which the character was different; and it is a circumstance not a little curious, that while mankind were in a state at which they had arrived by increasing population, and by the arts of peace, slavery was universal: but that when governed by men who were conquerors, and owed their superiority to force alone, where slavery might have been expected to originate, it was abolished. {6}
---
{6} This fact, which is indisputable, has, at first sight, a most extraordinary appearance, that is to say, seems difficult to account for; but a little examination into circumstances will render it easily understood.
In warm and fertile countries, the love of ease is predominant, and the services wanted are such as a slave can perform. The indolent habits of people make them consider freedom as an object of less importance than exemption from care. While the rulers of mankind were indolent and luxurious, they were interested in continuing slavery, which must have [end of page #2] originated in barbarism and ignorance. But the northern nations were different; with them, neither the moral character, the physical powers, or the situation of things, favoured slavery. The services one man wanted of another were not such as a slave could be forced to perform: neither are men who are fitted for performing such offices disposed to submit to slavery. Shepherds may be reduced to the situation of slaves, but hunters will not be likely to submit to such a situation, even if their occupation admitted of it. Slaves can only be employed to perform labour that is under the eye of an overseer or master, or the produce of which is nearly certain: but the labour of a hunter is neither the one nor the other, it is, therefore, not of the sort to be performed by slaves. The athletic active life necessary for a hunter is, besides, unfriendly to slavery, if not totally at variance with it. What does a slave receive in return for his service? Lodging, nourishment, and a life free from care. A hunter is obliged to provide the two former for himself, and the latter it is impossible for him to enjoy. The same thing goes even to hired servants. In the rudest state of shepherds, there are hired servants, but men in a rude state never hunt for wages: they are their own masters: they may hunt in society or partnership, but never as slaves or hired servants.
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The progress towards wealth in this new state of things was very slow, but the equality that prevailed amongst feudal barons, their love of war and glory, and the leisure they enjoyed, by degrees extended the limits of commerce very widely, as the northern world never could produce many articles which its inhabitants had by their connection with the south learnt to relish and enjoy.
The intermediate countries, that naturally formed a link of connection between the ancient nations of the east and the rough inhabitants of the north, profited the most by this circumstance; and we still find the borders of the Mediterranean Sea, though no longer the seat of power, the places where wealth was chiefly concentrated.
The impossibility of the inhabitants of the northern countries transporting their rude and heavy produce, in order to exchange it for the luxuries of the south, gave rise to manufactures as well as fishing on the southern confines of the Baltic Sea; from whence arose the wealth of Flanders, Holland, and the Hans Towns. This forms an epoch entirely new in its nature and description, and its termination was only brought on by the great discovery of the passage to Asia, by the Cape of Good Hope, and to America, by sailing straight out into the Atlantic Ocean.
The nations that had till those discoveries been the best situated for [end of page #3] commerce no longer enjoyed that advantage; by that means it changed its abode; but not only did it change its abode, it changed its nature, and the trifling commerce that had hitherto been carried on by the intervention of caravans by land, or of little barks coasting on the borders of the Mediterranean Sea, (never venturing, without imminent danger, to lose sight of the shore,) {7} was dropt for that bold and adventurous navigation, connecting the most distant parts of the world; between which since then large vessels pass with greater expedition and safety than they formerly did between the Grecian Islands, or from Italy to Africa.
Three inventions, two in commerce and the other in war, nearly of equal antiquity, formed this into one of these epochs that gives a new feature to things.
The discovery of the magnetic power of the needle improved and totally altered navigation. The art of printing gave the means of extending with facility, to mankind at large, the mode of communicating thoughts and ideas, which had till then been attended with great difficulty, and confined to a few. This placed men nearer upon an equality with respect to mind, and greatly facilitated commerce and the arts. The invention of gun-powder nearly at the same time changed the art of war, not only in its manner, but in its effect, a point of far greater importance. While human force was the power by which men were annoyed, in cases of hostility, bodily strength laid the foundation for the greatness of individual men, as well as of whole nations. So long as this was the case, it was impossible for any nation to cultivate the arts of peace, (as at the present time), without becoming much inferior in physical force to nations that preferred hunting or made war their study; or to such as preferred exercising the body, as rude nations do, to gratifying the appetites, as practised in wealthy ones. To be wealthy and powerful long together was then impossible.
Since this last invention, the physical powers of men have ceased to occupy any material part in their history; superiority in skill is now the great object of the attainment of those who wish to excel, {8} and
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{7} It was forbidden by law, formerly, in Spain, to put to sea from the 11th of November to the 10th of March.
{8} In the divine poem of the Iliad, Nestor, for experience and wisdom, and Ulysses, for [end of page #4] cunning, are the only two heroes whose minds gave them a superiority; but they make no figure compared to Achilles and Hector, or even the strong, rough, and ignorant Ajax. To bear fatigue, and understand discipline, is the great object at present; for though, of late years, the increased use of the bayonet seems to be a slight approximation to the ancient mode of contending by bodily strength, it is to be considered, on the other hand, that artillery is more than ever employed, which is increasing the dissimilarity. Again, though the bayonet is used, it is under circumstances quite new. Great strength enabled a single man, by wearing very thick armour, and wielding a longer sword or spear, to be invulnerable to men of lesser force, while he could perform what feats he pleased in defeating them. As gun-powder has destroyed the use of heavy armour, though with the sabre and bayonet men are not equal, they are all much more nearly so. No one is invulnerable, even in single combat, with thearme blanche, and with fire arms they are nearly on an equality. The changes that this makes, through every department of life, are too numerous to be enlarged upon, or not to be visible to all.
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men may devote themselves to a life of ease and enjoyment without falling under a real inferiority, provided they do not allow the mind to be degraded or sunk in sloth, ignorance, or vice.
Those discoveries, then, by altering the physical powers of men, by changing their relations and connections, as well as by opening new fields for commerce, and new channels for carrying it on, form a very distinct epoch in the history of wealth and power, and alter greatly their nature in the detail; though, in the main outline and abstract definition, they are still the same; having always the same relation to each other, or to the state of things at the time.
This last period is then very different in its nature, and much more important than either of the others that preceded it; yet, in one thing, there is a similarity that runs through the whole, and it is a very important one.
The passions and propensities of mankind, though they have changed their objects, and the means of their gratification, have not changed their nature. The desire of enjoyment; and of enjoyment with the least trouble possible, appears to be the basis of all the passions. Hence, envy, jealousy, friendship, and the endless train of second-rate effects, appear all to be produced by that primary passion; {9} and as from
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{9} The very learned and ingenious author of the Inquiry into the Origin and Causes of the Wealth of Nations, traces all this to an innate propensity to barter. But barter is only a means, and not even the means to which mankind shew the greatest pro- [end of page #5] pensity; for, wherever they have power to take by force or pillage, they never barter. This is seen both in an infantine and adult state; children cry for toys, and stretch at them before they offer to exchange; and, conquerors or soldiers never buy or barter, when they can take, unless they are guided by some other motive than mere natural propensity. A highwayman will pay for his dinner at an inn, as willingly as a traveller, because he acts from other motives than propensity, but he will strip the inn-keeper when he meets him on the road.
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this originate the wealth as well as the decline of nations, the history of the revolutions in wealth and power, during the two first periods, are by no means unimportant; besides, as their duration was much longer than that of the latter, they lead to a more certain conclusion.
The review of what has taken place will occupy the first book; and serve as a data for an inquiry into the nature and causes of the fall of nations.
The first part of the second book will be dedicated to investigating the internal causes of decline; that is to say, all those causes which arise from the possession of wealth and power, operating on the habits, manners, and minds of the inhabitants; as also on the political arrangements, laws, government, and institutions, so far as they are connected with the prosperity or decline of nations.
The latter part of the same book will treat of the exterior causes of decline, arising from the envy of other nations; their advancement in the same arts to which the nations that are rich owe their wealth, or their excelling them in other arts, by which they can be rivalled, reduced, or subdued.
After having inquired into external and internal causes; and the operation of each and of both, (though they never act quite separately,) accidental causes, will make an object for consideration, which will bring the general inquiry to a conclusion.
The third book will begin with an application of the information obtained to the present state of England: by comparing its situation with that of nations that were great; and, by endeavouring to point out a means by which its decline may be prevented.
Though we know that, in this world, nothing is eternal, particularly in the institutions of man; yet, by a sort of fiction in language, when the final term is not fixed, and the end desirable, what is known to be [end of page #6] temporary is considered as perpetual. Thus, the contract between the king and the people, the constituent laws of a country, &c. are considered as permanent and of eternal duration.
In this case, though the final decline of a nation cannot be prevented; though the nature of things will either, by that regular chain of causes which admits of being traced, or by their regular operation of coincident causes which is termed accidental, sooner or later put an end to the prosperity of every nation, yet we shall not speak of prolonging prosperity, but of preventing decline, just as if it were never to happen at any period.
Before entering upon this Inquiry, it may be well, for the sake of being explicitly understood, to define what I mean by wealthy and powerful nations.
In speaking of nations, wealth and power are sometimes related to each other, as cause and effect. Sometimes there is between a mutual action and re-action. In the natural or ordinary course of things, they are, at first, intimately connected and dependent on each other, till, at last, this connection lessening by degrees, and they even act in opposite directions; when wealth undermines and destroys power, but power never destroys wealth. {10}
Though wealth and power are often found united, they are sometimes found separated. Wealth is altogether a real possession; power is comparative. Thus, a nation may be wealthy in itself, though unconnected with any other nation; but its power can only be estimated by a comparison with that of other nations.
Wealth consists in having abundance of whatever mankind want or desire; and if there were but one nation on earth, it might be wealthy; but it would, in that case, be impossible to measure its power.
Wealth is, however, not altogether real; it is in a certain degree comparative, whereas power is altogether comparative.
The Romans, for example, may very justly be called the most
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{10} Till a nation has risen above its neighbours, and those to whom it compares itself, wealth and power act in the same direction; but, after it has got beyond that point, they begin to counteract each other.
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powerful nation that ever existed, yet a single battalion of our present troops, well supported with artillery, would have probably destroyed the finest army they ever sent into the field. A single ship of the line would certainly have sunk, taken, or put to flight, all the fleets that Rome and Carthage ever sent to sea. The feeblest and least powerful of civilized nations, with the present means of fighting, and the knowledge of the present day, would defeat an ancient army of the most powerful description. Power then is entirely relative; and what is feebleness now, would, at a certain time, have been force or power.
It is not altogether so with wealth, which consists in the abundance of what men desire. The Egyptians, Greeks, and Romans, had wealth; and this, though, perhaps, not consisting in the same objects, was, perhaps, not inferior to ours at the present time; but as wealth, purely and simply, no comparison between different nations was necessary, farther than that men's desires are augmented, by seeing the abundance possessed by others; and therefore they become comparative, as to wealth. Without, however, entering into a long examination respecting the various possible combinations of wealth and power, which are something similarly connected in states, as health and strength are in the animal body, {11} let both be considered only in a comparative way; the comparison either being made with other nations at the same time, or with the same nation at different times. Thus, for example, in comparing the wealth and power of Britain now, with what they were at the latter end of Queen Elizabeth's reign, we find that the merchants of Liverpool, during the first three years of last =sic= war, fitted out a force of privateers equal to the Spanish armada; and consequently superior to the whole naval force of England at that time; there can be no doubt, then, that both the wealth and power of the nation are increased. Again, if we find that our ships block up the
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{11} A man may be very feeble, yet in very good health for his whole life-time. He may also have great strength, though he may not enjoy a very good state of health; yet nevertheless, health and strength are very intimately connected, and never can be completely separated.
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ports of Holland, and prevent their navy from venturing to sea, we must conclude, that the relative power of the two nations is altered, since the time that the Dutch fleet rode triumphant in the river Thames. But, if we want to make a comparison between the naval power of England and that of France and Spain, we must not compare it with the strength of their navies in the year 1780, when they bid us defiance at Plymouth, but take things actually as they are at this present time.
When a nation is upon an equality with others, for wealth, it may be considered as neither deserving the name of a rich or a poor nation, whatever its real wealth or poverty may be. The same thing holds with power. When a nation is merely able to protect itself, but fully equal to that, though unable to make conquests, or aggrandize itself, against the will of other nations, it may be said to be neither weak nor strong. Thus, for example, Denmark as a nation is upon a par with others; and neither to be called wealthy and powerful, nor weak and poor, though it certainly has both more actual wealth and power than it had in the eighth century, when the Danes burnt London, Paris, and Cologne.
Thus, then, with respect to my reasoning, the whole is to be considered as applying to other nations at the same time; and the degree they are above or below par, is the measure of wealth and power, poverty and weakness. {12}
But, with respect to a nation itself, wealth is comparative in the progression of time. In speaking of power, we compare nations at the same period, and, in speaking of wealth, we may either compare a nation with itself at different periods, or with others at the same time.
We shall not find any example of a nation's becoming less wealthy whilst it increased in power; but we shall find many instances of nations becoming wealthy whilst they were losing their power, though,
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{12} According to this definition, if all the nations on earth were to increase in wealth and power equally, they would be considered as stationary; their relative situations would remain the same; like those of the fixed stars, or those of soldiers who march in a regiment with perfect regularity, and retain their relative portion in the same manner as if they stood still. But this case, among nations, is only an imaginary one; therefore, the definition given answers the true purpose of investigation.
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together with the power, the wealth always, a little sooner or a little later, vanishes away.
Sometimes nations owe their wealth and greatness to accidental causes, that, from their nature, must vanish away; and sometimes to causes which, depending upon the nations themselves, may be prolonged. In general, both the two sorts of causes have united to render every nation great that has been distinguished amongst others for riches or power.
The causes, then, divide themselves into two of distinct kinds;-- those which are independent of the nation itself, and those over which it has some degree of influence and controul.
In early ages, when knowledge was but little advanced, and when the small stock that had been accumulated was confined nearly to a single spot, the first description of causes were the principal ones. -- Local situation, priority in discovery, or in establishment, gave to one nation a superiority over others, and occasioned the accumulation of wealth, and the acquisition of power and territory. {13} As in the early stages of human life, a few years more or less occasion a greater difference, both in physical powers and mental faculties, than any difference of innate genius, or adventitious circumstances; so, in the early days of the world, when it was young in knowledge, and scanty in population, priority of settlement gave a great advantage to one nation over others, and, of consequence, enabled them to rule over others; thus the Assyrian and Egyptian empires were great, powerful, and extensive, while the nations that were beyond their reach were divided into small states or kingdoms, on the most contemptible scale.
Time, however, did away the advantages resulting from priority of establishment.
Local situation was another cause of superiority, of a more permanent nature; but this, also, new discovery has transferred from one na-
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{13} It is not meant, by any means, to enter into an inquiry, much less controversy, respecting the antiquity of mankind; but it is very clear that the knowledge of arts and sciences can be traced to an infant state about two thousand years before the Christian aera.
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tion to another. Qualities of the soil and climate are counteracted by the nature and habits of the inhabitants, which frequently, in the end, give the superiority where there was at first an inferiority.
If ever the nations of the world come to a state of permanence, (which in all probability will never be the case,) it must be when population is nearly proportioned to the means of subsistence in different parts; when knowledge is nearly equally distributed and when no great discoveries remain to be made either in arts, science, or geography.
While the causes from which wealth and power rise in a superior degree, are liable to change from one nation to another, wealth and power must be liable to the same alterations and changes of place; so long any equal balance among nations must be artificial. But when circumstances become similar, and when the pressure becomes equal on all sides, then nations, like the particles of a fluid, though free to move, having lost their impulse, will remain at rest.
If such a state of things should ever arrive, then the wealth and power would be only real, not comparative. The whole might be very rich, very affluent, and possess great abundance of every thing, either for enjoyment or for defence, without one nation having an advantage over another: they would be on an equality.
But this state of things is far from being likely soon to take place. Population is far from come to its equilibrium, and knowledge {14} is farther distant still. Russia and America, in particular, are both behind in population, and the inhabitants of the latter country are far from being on a par in knowledge with the rest of Europe; when they become so, the balance will be overturned, and must be re-established anew.
The great discoveries that have taken place in knowledge and geography have been connected.
While navigation was little understood, the borders of the Mediterranean Sea, and the islands in it, were naturally the first places for wealth and commerce.
The discovery of the compass, and others that followed, rendered
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{14} By knowledge is only meant the knowledge of the arts that make men useful, =sic= such as agriculture, manufactures, legislation, &c.
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the navigation of the open ocean, more easy and safe than that of the circumscribed seas. This laid a great foundation for change and discovery; it brought Britain into importance, ruined Italy, Genoa, Venice, &c. and has laid the foundation for further changes still.
As for discoveries in arts, it would be bold and presumptuous indeed to attempt to set any bounds to them. Discoveries, however, that alter the relations of mankind very materially, are probably near at an end. In arts they give only a temporary preference. {15} If a method should be discovered to cultivate a field with half the trouble, and to double the produce, which seems very possible, it would be a great discovery, and alter the general state of mankind considerably; but it would soon be extended to all nations, as the use of gunpowder has been. New produce, or means of procuring the old more easily, are the things chiefly sought after. Potatoes, coffee, tea, sugar, cotton, silk, distilled spirits, are new productions, unknown to the Romans. Glass, gunpowder, printing, windmills, watermills, steam-engines, and the most part of spinning and weaving machines, are new inventions, but they can be extended to all countries. The mariners compass changed the relative position of places, and no new invention of the same importance, as to its effects on nations, probably can take place. Navigation does not admit of a similar improvement to that which it has received. If goods could be conveyed for a quarter of the present price it would not produce the same sort of effect. To render navigating the ocean practicable was a greater thing than any possible improvement on that practicability.
As for new discoveries in geography, they are nearly at an end. The form and the extent of the earth are known, and the habitable regions are nearly all explored.
We have, then, arrived at a state of things where many of the causes that formerly operated on reducing wealthy nations can never again produce a similar effect. But still there are other causes which ope-
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{15} The end of all discovery is to supply men with what they want; and, accordingly, all nations that are considered as civilised find the means of participating in the advantage of a new discovery, by imitating that which possesses the invention first, and that is done almost immediately. It was very different formerly.