LITMIR.BIZ

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the soil may be. Let us examine that circumstance. One thing is evident, that, were the people fully employed, there would not be a demand for the tenth part of their manufactures. Here, then, is a country where hand-labour is a drug for want of employment. The people, at the same time, sober and inclining to industry, are glad to be employed at any rate; and whatever pittance is gained by labour, makes always some addition. Hence it is, that in these peninsulas, superfluity of hands overbalancing both the quantity of money and the demand for their manufactures, serves to keep the price extremely low.

      What is now said discovers an exception to the proposition above laid down. It holds undoubtedly in Europe, and in every country where there is work for all the people, that an addition to the circulating coin raises the price of labour and of manufactures: but such addition has<150> no sensible effect in a country where there is a superfluity of hands, who are always disposed to work when they find employment.

      From these premises it is evident, that, unless there is a superfluity of hands, manufactures can never flourish in a country abounding with mines of gold and silver. This in effect is the case of Spain: a constant influx of these metals, raising the price of labour and manufactures, has deprived the Spaniards of foreign markets, and also of their own: they are reduced to purchase from strangers even the necessaries of life. What a dismal condition will they be reduced to, when their mines come to be exhausted! The Gold coast in Guinea has its name from the plenty of gold that is found there. As it is washed from the hills with the soil in small quantities, every one is on the watch for it; and the people, like gamesters, despise every other occupation. They are accordingly lazy and poor. The kingdom of Fidah, in the neighbourhood, where there is no gold, is populous: the people are industrious, deal in many branches of manufacture, and are all in easy circumstances.⁵<151>

      To illustrate this observation, which is of great importance, I enter more minutely into the condition of Spain. The rough materials of silk, wool, and iron, are produced there more perfect than in any other country; and yet flourishing manufactures of these, would be ruinous to it in its present state. Let us only suppose, that Spain itself could furnish all the commodities that are demanded in its American territories, what would be the consequence? The gold and silver produced by that trade would circulate in Spain: money would become a drug: labour and manufactures would rise to a high price; and every necessary of life, not excepting manufactures of silk, wool, and iron, would be smuggled into Spain, the high price there being sufficient to overbalance every risk: Spain would be left without industry, and without people. Spain was actually in the flourishing state here supposed when America was discovered: the American gold and silver mines enflamed the disease, and consequently was the greatest misfortune that ever befel that once potent kingdom. The exportation of our silver coin to the East Indies, so<152> loudly exclaimed against by shallow politicians, is to us, on the contrary, a most substantial blessing: it keeps up the value of silver, and consequently lessens the value of labour and of goods, which enable us to maintain our place in foreign markets. Were there no drain for our silver, its quantity in our continent would sink its value so much as to render the American mines unprofitable. Notwithstanding the great flow of money to the East Indies, many mines in the West Indies are given up, because they afford not the expence of working; and were the value of silver in Europe brought much lower, the whole silver mines in the West Indies would be abandoned. Thus our East-India commerce, which is thought ruinous by many, because it is a drain to much of our silver, is for that very reason profitable to all. The Spaniards profit by importing it into Europe; and other nations profit, by receiving it for their manufactures.

      How ignorantly do people struggle against the necessary chain of causes and effects! If money do not overflow, a commerce in which the imports exceed<153> in value the exports, will soon drain a nation of money, and put an end to its industry. Commercial nations for that reason struggle hard for the balance of trade; and they fondly imagine, that it cannot be too advantageous. If greatly advantageous to them, it must in the same proportion be disadvantageous to those they deal with; which proves equally ruinous to both. They foresee indeed, but without concern, immediate ruin to those they deal with; but they have no inclination to foresee, that ultimately it must prove equally ruinous to themselves. It appears the intention of Providence that all nations should benefit by commerce as by sun-shine; and it is so ordered, that an unequal balance is prejudicial to the gainers as well as to the losers: the latter are immediate sufferers; but no less so, ultimately, are the former. This is one remarkable instance, among many, of providential wisdom in conducting human affairs, independent of the will of man, and frequently against his will. An ambitious nation, placed advantageously for trade, would willingly engross all to themselves, and reduce their neighbours to be hewers of<154> wood and drawers of water. But an invincible bar is opposed to such ambition, making an overgrown commerce the means of its own destruction. The commercial balance held by the hand of Providence, is never permitted to preponderate much to one side; and every nation partakes, or may partake, of all the comforts of life. Engrossing is bad policy: men are prompted, both by interest and duty, to second the plan of Providence; and to preserve, as near as possible, equality in the balance of trade.

      Upon these principles, a wise people, having acquired a stock of money sufficient for an extensive commerce, will tremble at a balance too advantageous: they will rest satisfied with an equal balance, which is the golden mean. A hurtful balance may be guarded against by industry and frugality: but by what means is a balance too favourable to be guarded against? With respect to that question, it is not the quantity of gold and silver in a country that raises the price of labour and manufactures, but the quantity in circulation; and may not that quantity be regulated by the state, permitting coinage as far only<155> as is beneficial to its manufactures? Let the registers of foreign mints be carefully watched, in order that our current coin may not exceed that of our industrious neighbours. There will always be a demand for the surplus of our bullion, either to be exported as a commodity, or to be purchased at home for plate; which cannot be too much encouraged, being ready at every crisis to be coined for public service. The senate of Genoa has wisely burdened porcelane with a heavy tax, being a foreign luxury; but it has no less wisely left gold and silver plate free; which we most unwisely have loaded with a duty.^*

      The accumulating money in the public treasury, anciently the practice of every prudent monarch, prevents superfluity. Lies there any good objection against that practice, in a trading nation where gold and silver flow in with impetuosity? A great sum locked up by a frugal King, Henry VII. of England for example, lessens the quantity of money in circulation: profusion in a successor, which was the<156> case with Henry VIII. is a spur to industry, similar to the influx of gold and silver from the new world. The canton of Bern, by locking up money in its treasury, possesses the miraculous art of reconciling immense weath with frugality and cheap labour. A climate not kindly, and a soil not naturally fertile, enured the inhabitants to temperance and to virtue. Patriotism is their ruling passion; they consider themselves as children of the republic; are fond of serving their mother; and hold themselves sufficiently recompensed by the privilege of serving her. The public revenue greatly exceeds the expence of government: they carefully lock up the surplus for purchasing land when a proper opportunity offers; which is a shining proof of their disinterestedness as well as of their wisdom. By that politic measure, much more than by war, the canton of Bern, from a very slender origin, is now far superior to any of the other cantons in extent of territory. But in what other part of the globe are there to be found ministers of state, moderate and disinterested like the citizens of Bern! In the hands of a British ministry, the<157> greatest treasure would vanish in the twinkling of an eye; and do more mischief by augmenting money in circulation above what is salutary, than formerly it did good by confining it within moderate bounds. But against such a measure there lies an objection still more weighty than its being an ineffectual remedy: in the hands of an ambitious prince it would prove dangerous to liberty.

      If the foregoing measures be not relished, I can discover no other means for preserving our station in foreign markets, but a bounty on exportation. The sum would be great: but the preserving our industry and manufactures, and the preventing an influx of foreign manufactures, cannot be purchased too dear. At the same time, a bounty on exportation would not be an unsupportable load: on the contrary, superfluity of wealth, procured by a balance constantly favourable, would make the load abundantly easy. A proper bounty would balance the growing price

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