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Applying Principle to Practice, Chapter 5 — Ways and Means of Improving the Condition of Europe Interspersed with Miscellaneous Observations, Part 1 of 8
In contemplating a subject that embraces with equatorial magnitude the whole region of humanity it is impossible to confine the pursuit in one single direction. It takes ground on every character and condition that appertains to man, and blends the individual, the nation, and the world. From a small spark, kindled in America, a flame has arisen not to be extinguished. Without consuming, like the Ultima Ratio Regum, it winds its progress from nation to nation, and conquers by a silent operation. Man finds himself changed, he scarcely perceives how. He acquires a knowledge of his rights by attending justly to his interest, and discovers in the event that the strength and powers of despotism consist wholly in the fear of resisting it, and that, in order "to be free, it is sufficient that he wills it."
Having in all the preceding parts of this work endeavoured to establish a system of principles as a basis on which governments ought to be erected, I shall proceed in this, to the ways and means of rendering them into practice. But in order to introduce this part of the subject with more propriety, and stronger effect, some preliminary observations, deducible from, or connected with, those principles, are necessary.
Whatever the form or constitution of government may be, it ought to have no other object than the general happiness. When, instead of this, it operates to create and increase wretchedness in any of the parts of society, it is on a wrong system, and reformation is necessary. Customary language has classed the condition of man under the two descriptions of civilised and uncivilised life. To the one it has ascribed felicity and affluence; to the other hardship and want. But, however our imagination may be impressed by painting and comparison, it is nevertheless true, that a great portion of mankind, in what are called civilised countries, are in a state of poverty and wretchedness, far below the condition of an Indian. I speak not of one country, but of all. It is so in England, it is so all over Europe. Let us enquire into the cause.
It lies not in any natural defect in the principles of civilisation, but in preventing those principles having a universal operation; the consequence of which is, a perpetual system of war and expense, that drains the country, and defeats the general felicity of which civilisation is capable. All the European governments (France now excepted) are constructed not on the principle of universal civilisation, but on the reverse of it. So far as those governments relate to each other, they are in the same condition as we conceive of savage uncivilised life; they put themselves beyond the law as well of GOD as of man, and are, with respect to principle and reciprocal conduct, like so many individuals in a state of nature. The inhabitants of every country, under the civilisation of laws, easily civilise together, but governments being yet in an uncivilised state, and almost continually at war, they pervert the abundance which civilised life produces to carry on the uncivilised part to a greater extent. By thus engrafting the barbarism of government upon the internal civilisation of a country, it draws from the latter, and more especially from the poor, a great portion of those earnings, which should be applied to their own subsistence and comfort. Apart from all reflections of morality and philosophy, it is a melancholy fact that more than one-fourth of the labour of mankind is annually consumed by this barbarous system. What has served to continue this evil, is the pecuniary advantage which all the governments of Europe have found in keeping up this state of uncivilisation. It affords to them pretences for power, and revenue, for which there would be neither occasion nor apology, if the circle of civilisation were rendered complete. Civil government alone, or the government of laws, is not productive of pretences for many taxes; it operates at home, directly under the eye of the country, and precludes the possibility of much imposition. But when the scene is laid in the uncivilised contention of governments, the field of pretences is enlarged, and the country, being no longer a judge, is open to every imposition, which governments please to act. Not a thirtieth, scarcely a fortieth, part of the taxes which are raised in England are either occasioned by, or applied to, the purpose of civil government. It is not difficult to see, that the whole which the actual government does in this respect, is to enact laws, and that the country administers and executes them, at its own expense, by means of magistrates, juries, sessions, and assize, over and above the taxes which it pays. In this view of the case, we have two distinct characters of government; the one the civil government, or the government of laws, which operates at home, the other the court or cabinet government, which operates abroad, on the rude plan of uncivilised life; the one attended with little charge, the other with boundless extravagance; and so distinct are the two, that if the latter were to sink, as it were, by a sudden opening of the earth, and totally disappear, the former would not be deranged. It would still proceed, because it is the common interest of the nation that it should, and all the means are in practice. Revolutions, then, have for their object a change in the moral condition of governments, and with this change the burthen of public taxes will lessen, and civilisation will be left to the enjoyment of that abundance, of which it is now deprived. In contemplating the whole of this subject, I extend my views into the department of commerce. In all my publications, where the matter would admit, I have been an advocate for commerce, because I am a friend to its effects. It is a pacific system, operating to cordialise mankind, by rendering nations, as well as individuals, useful to each other. As to the mere theoretical reformation, I have never preached it up. The most effectual process is that of improving the condition of man by means of his interest; and it is on this ground that I take my stand. If commerce were permitted to act to the universal extent it is capable, it would extirpate the system of war, and produce a revolution in the uncivilised state of governments. The invention of commerce has arisen since those governments began, and is the greatest approach towards universal civilisation that has yet been made by any means not immediately flowing from moral principles. Whatever has a tendency to promote the civil intercourse of nations by an exchange of benefits, is a subject as worthy of philosophy as of politics. Commerce is no other than the traffic of two individuals, multiplied on a scale of numbers; and by the same rule that nature intended for the intercourse of two, she intended that of all. For this purpose she has distributed the materials of manufactures and commerce, in various and distant parts of a nation and of the world; and as they cannot be procured by war so cheaply or so commodiously as by commerce, she has rendered the latter the means of extirpating the former. As the two are nearly the opposite of each other, consequently, the uncivilised state of the European governments is injurious to commerce. Every kind of destruction or embarrassment serves to lessen the quantity, and it matters but little in what part of the commercial world the reduction begins. Like blood, it cannot be taken from any of the parts, without being taken from the whole mass in circulation, and all partake of the loss. When the ability in any nation to buy is destroyed, it equally involves the seller. Could the government of England destroy the commerce of all other nations, she would most effectually ruin her own. It is possible that a nation may be the carrier for the world, but she cannot be the merchant. She cannot be the seller and buyer of her own merchandise. The ability to buy must reside out of herself; and, therefore, the prosperity of any commercial nation is regulated by the prosperity of the rest. If they are poor she cannot be rich, and her condition, be what it may, is an index of the height of the commercial tide in other nations. That the principles of commerce, and its universal operation may be understood, without understanding the practice, is a position that reason will not deny; and it is on this ground only that I argue the subject. It is one thing in the counting-house, in the world it is another. With respect to its operation it must necessarily be contemplated as a reciprocal thing; that only one-half its powers resides within the nation, and that the whole is as effectually destroyed by the destroying the half that resides without, as if the destruction had been committed on that which is within; for neither can act without the other. When in the last, as well as in former wars, the commerce of England sunk, it was because the quantity was lessened everywhere; and it now rises, because commerce is in a rising state in every nation. If England, at this day, imports and exports more than at any former period, the nations with which she trades must necessarily do the same; her imports are their exports, and vice versa. There can be no such thing as a nation flourishing alone in commerce: she can only participate; and the destruction of it in any part must necessarily affect all. When, therefore, governments are at war, the attack is made upon a common stock of commerce, and the consequence is the same as if each had attacked his own. The present increase of commerce is not to be attributed to ministers, or to any political contrivances, but to its own natural operation in consequence of peace. The regular markets had been destroyed, the channels of trade broken up, the high road of the seas infested with robbers of every nation, and the attention of the world called to other objects. Those interruptions have ceased, and peace has restored the deranged condition of things to their proper order. [NOTE] It is worth remarking that every nation reckons the balance of trade in its own favour; and therefore something must be irregular in the common ideas upon this subject. The fact, however, is true, according to what is called a balance; and it is from this cause that commerce is universally supported. Every nation feels the advantage, or it would abandon the practice: but the deception lies in the mode of making up the accounts, and in attributing what are called profits to a wrong cause. Mr. Pitt has sometimes amused himself, by showing what he called a balance of trade from the custom-house books. This mode of calculating not only affords no rule that is true, but one that is false. In the first place, Every cargo that departs from the custom-house appears on the books as an export; and, according to the custom-house balance, the losses at sea, and by foreign failures, are all reckoned on the side of profit because they appear as exports.
Secondly, Because the importation by the smuggling trade does not appear on the custom-house books, to arrange against the exports.
No balance, therefore, as applying to superior advantages, can be drawn from these documents; and if we examine the natural operation of commerce, the idea is fallacious; and if true, would soon be injurious. The great support of commerce consists in the balance being a level of benefits among all nations.
Two merchants of different nations trading together, will both become rich, and each makes the balance in his own favour; consequently, they do not get rich of each other; and it is the same with respect to the nations in which they reside. The case must be, that each nation must get rich out of its own means, and increases that riches by something which it procures from another in exchange.
If a merchant in England sends an article of English manufacture abroad which costs him a shilling at home, and imports something which sells for two, he makes a balance of one shilling in his favour; but this is not gained out of the foreign nation or the foreign merchant, for he also does the same by the articles he receives, and neither has the advantage upon the other. The original value of the two articles in their proper countries was but two shillings; but by changing their places, they acquire a new idea of value, equal to double what they had first, and that increased value is equally divided.
There is no otherwise a balance on foreign than on domestic commerce. The merchants of London and Newcastle trade on the same principles, as if they resided in different nations, and make their balances in the same manner: yet London does not get rich out of Newcastle, any more than Newcastle out of London: but coals, the merchandize of Newcastle, have an additional value at London, and London merchandize has the same at Newcastle.
Though the principle of all commerce is the same, the domestic, in a national view, is the part the most beneficial; because the whole of the advantages, an both sides, rests within the nation; whereas, in foreign commerce, it is only a participation of one-half.
The most unprofitable of all commerce is that connected with foreign dominion. To a few individuals it may be beneficial, merely because it is commerce; but to the nation it is a loss. The expense of maintaining dominion more than absorbs the profits of any trade. It does not increase the general quantity in the world, but operates to lessen it; and as a greater mass would be afloat by relinquishing dominion, the participation without the expense would be more valuable than a greater quantity with it.
But it is impossible to engross commerce by dominion; and therefore it is still more fallacious. It cannot exist in confined channels, and necessarily breaks out by regular or irregular means, that defeat the attempt: and to succeed would be still worse. France, since the Revolution, has been more indifferent as to foreign possessions, and other nations will become the same when they investigate the subject with respect to commerce.
To the expense of dominion is to be added that of navies, and when the amounts of the two are subtracted from the profits of commerce, it will appear, that what is called the balance of trade, even admitting it to exist, is not enjoyed by the nation, but absorbed by the Government.
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