Part 1
THOUGHTS ON THE MECHANISM OF SOCIETIES.
By the MARQUIS DE CASAUX, FELLOW OF THE ROYAL SOCIETY.
_TRANSLATED FROM THE FRENCH_ (_Under the Inspection of the Author_) By PARKYNS MAC MAHON.
_If Men would be content to graft upon Nature, and assist her operations, what mighty effects might we expect!_
SPECTATOR.
_LONDON, Printed by T. Spilsbury, Snowhill._
Sold by G. G. J. and J. ROBINSON, in _Pater-noster Row_; W. RICHARDSON, under the _Royal Exchange_; and J. DEBRETT, _Piccadilly._
M,DCC,LXXXVI.
PREFACE BY THE EDITOR.
It is not a _treatise_ that the Author announces; it is nothing more than _Thoughts on the Mechanism of Societies_. Such a title does not confine a Writer to a regular plan; it saves him even the risk of preparing his Readers for a chain of ideas which cannot escape their sagacity if it exist, and on which they cannot be deceived if it do not. But in a picture consecrated to the world at large as well as to his own Country, to the People as well as to their Rulers, it was necessary that the most striking object, the object to which their first attention was called, should be of so general an interest, as to entice them progressively to an investigation of all those details which deserve most to be scrutinised, and of which the different relations are either little known, or greatly mistaken.
The object which at present fixes the attention of all the States in _Europe_, (all of them either debtors or creditors), is the _National Debt of England_, and the measures which will be taken on that subject by the Assembly the most clear-sighted of any in the world to every thing that concerns the interests of the people, the most jealous of its rights, and the most free, at least in its debates. It is by considering that formidable debt, and its influence on the wealth of the State and the ease of the People, that the Author dares to begin. But before he proceeds to unfold the mechanism of the national debt, the result of which developement presents some ideas too opposite to the received opinion, he endeavours by degrees to familiarise his Readers with his own, by _some general reflexions on the present situation of England_: these reflexions leave him no room to doubt, that _England_ was in 1779, _notwithstanding the national debt_, richer than she was at the beginning of this century;—richer, either in a fourfold, or in a double proportion, as the Reader is disposed to adopt the one or the other rate of population: whence it appears that the Author, in respect to his plan, does not affix any importance to the difference of opinions on this article.
_A more particular view of the subject_ furnishes him with fresh reasons, which seem to him sufficient to quiet the mind of the most suspicious creditor. It is, indeed, only by means of the _savings_ made, or daily to be made, upon eight pence (the exact proportion each individual is entitled to in the general revenue), that it has been possible to reach the summit of opulence, and that it is possible to be fixed there: but the Author seeks for such _savings_ in agriculture and industry, as cannot be misunderstood; he observes that the savings made in agriculture, have proved sufficient, in the course of a century, not only to discharge all the public burdens, but even to double the landed revenue; and he then enters into a detail of several objects, (all easy to be ascertained,) which seem to demonstrate a similar progress in industry.
Here our Author, beginning to feel himself on ground sufficiently firm, confesses that he sees nothing in the present situation of _England_, tending to justify the idea of a national bankruptcy, although the public news-papers often hint at the convenience of such a measure. The author even so far forgets himself, as to examine _seriously_, whether it would be profitable or unprofitable to effect the so much recommended _reimbursement_, _even on the supposition that the 238 millions which have been borrowed, and have disappeared, could find their way back to the Exchequer_.
After having presented the question under several points of view, our Author hesitates not to declare for the negative, and then endeavours to prove that a previous _thesaurisation_ which might have enabled the nation to go through the last war without laying any additional tax, would have done more harm than the new taxes can possibly have done.
The Author, become bolder because he meets with no contradiction when he is alone, (and indeed he is alone very often) undertakes to reconcile mankind to the taxes by means of a first decomposition of the impost; he gives up, it is true, one part of it as burdensome, (it is truly to be lamented that this part cannot be dispensed with; luckily it is the least); but he contends boldly for the other part, as a very precious resource for that portion of the people which best deserves to engage the cares of Government.
Notwithstanding all the precautions taken by the Author not to frighten his readers, there remains such a leap for him to clear, that he is seen, as it were on his knees, begging he may be permitted to try twenty times, if he cannot clear it in ten: in other words, he earnestly wishes that his work may not receive its final judgement before it has been perused to the end; and in fact, it is not impossible but that a detached proposition, the absurdity of which is striking when considered singly, may be found conclusive when successively brought near to all those that are to follow it.
An Editor owes more to the Public, than to any work, even such as he could wish to bring into some trifling repute: I think then, it is my duty (_in foro conscientiæ_) to declare, that it will not be till the Reader has perused fifty pages or more, that he will suspect the reason why the Writer has not announced in the very first, some singular opinion, which he meant insidiously to establish as it were step by step in his pamphlet; but, at length, we begin to have some notion of what we are to expect from a man who has been trying to wheedle us into a belief, that _taxes are a trifling evil;—that ~thesaurisation~ would be a very great one;—that a reimbursement is at best useless_;—and who afterwards modestly intimates, that some singularities may perhaps escape him _in the sequel_; as if it were possible to imagine any thing more singular than the three propositions I have just quoted.
Yet too much severity should not be used. Has the Reader been but amused with the part of the picture hitherto exposed to his view? Let him humour the Author in his little conceits. Who would exhibit for public entertainment, if he were not at liberty to draw up the curtain in his own way; if he had not a right to display, at every shifting of the scene, that part only of his curiosities upon which he meant for that instant to fix the eyes of the spectator?
But if the Reader, in spite of the different positions into which he has been attracted, has not observed the least alteration in the compass; if he has not been moved by the arguments with which he has been lured before he came to that part of the work—let him throw the piece into the fire; for the Author, of whom I do not pretend to imitate the circumspection, or adopt the fears, or justify the temerity, or share in the guilt, aims at nothing less than to induce _all Europe_ (all _Europe_!) to investigate,
_1st_,
Whether it could possibly cost _England_ more than 5 millions sterling, (_found once for all_) to secure _for ever_, in the most solid manner, the payment of the interest on a debt of 238 millions, that interest rated at 9 millions, of the same currency?
_2dly_,
Whether there be not, (without its being suspected), in the system of finance in _England_, some of those imperfections so well remarked, so fully, so bitterly criticised in that of _France_; and whether a national reimbursement be not the easiest of all the sports a Minister of finance can think of, to amuse society without serving it?
_3dly_,
Whether the possibility of a balance of trade, _always favourable_, be not as doubtful as the necessity of a national bankruptcy, and the advantage of a national reimbursement?
_4thly_,
Whether an equilibrium in all things (and every where), be not indispensable; and whether, to maintain or restore it, any great effort of imagination be required on the part of those who fancy they hold the balance?
_5thly_,
Whether the difference of prices be something or nothing; and whether more has been wanted by the _French_ than 66 millions _Tournois_ (_found once for all_), to secure _for ever_, the interest at _5 per cent._ on a national loan of 1,500 millions _Tournois_?
_6thly_,
Whether the monster of a competition (in point of trade) supposed unconquerable on account of the low prices with which it should be armed, be not as fantastical as that of a balance always favourable?
_7thly_,
Whether the most justifiable premium for exportation be any thing more than one piece of injustice, become necessary to counterbalance a great many others?
_8thly_,
Whether it do not result from the ever infallible and merely mechanical restoration of an equilibrium in all the prices, that the taxes are in themselves completely innocent;—whether there be more than one kind of taxation, which increases only by the exact amount of the tax, the whole mass of prices;—whether the effect of taxation be not trebled by all other imposts;—whether the most pernicious of them, (after the poll-tax), be not the tax on luxury;—and whether from the instant that all kinds of taxes, either judiciously or injudiciously contrived, have re-acted on every thing, the burthen of the national debt is not literally _null_ in all countries?
_9thly_,
Whether, _after monopoly_, credit be not that effect of wealth which increases most the price of every production, both of agriculture and industry?
_10thly_,
Whether a certain country, where smuggling has been prohibited under pain of the galleys, be not indebted to smuggling itself for one fifth of the products of her agriculture, which the merchant and trader turn to their advantage with as little scruple, as if they had not petitioned for the detestable law against the smuggler?
_11thly_,
Whether the absurdity of the general opinion, on the most efficacious means of establishing a profitable competition, in point of trade, be not clearly evinced, by the account of a strange revolution in _France_—a revolution, as indubitable as the two wars in 1755 and 1779?
_12thly_,
Whether the impossibility of the two supposed balances, constantly at the disposal of _England_ and _France_, be not proved, by the very facts adduced in both countries to establish the existence of those two monsters?—Whether that impossibility be not demonstrated by other facts as little equivocal; and whether it be not the interest of _England_ and _France_ to renounce the Idol, and solemnly abjure both its works and its pomps?
_13thly_,
Whether imports and exports be not a mere sport, as innocent as the game of tennis? A sport, nevertheless, which all Governments might turn to great profit, all Subjects to great advantage, and all States to an increase of power and wealth.
_14thly_,
Whether the generality of exports from _England_, at different periods, considered with regard to her foreign correspondence, do not demonstrate a kind of electricity, unthought of hitherto, though not unworthy of amusing the greatest politicians at their leisure moments?
_15thly_,
Whether the trifling jest of luxury be not equally as innocent as the diversion of exporting and importing; and how much the most fastuous, the most profuse, the most sensual of all monarchs, consumes, above the most avaricious of all his subjects?
_16thly_,
How much (not counting shillings and pence) _England_ has lost, when her right-arm, as her colonies were called, was lopped off; and how much (not counting shillings and pence) _Europe_ might lose by losing her sovereignty over both the _Americas_?
_17thly_,
Whether all that had appeared to the Author, as founded in reason and equity, do not finally prove (in spite of the general conspiracy of all Nations and all Ministers) to be strictly conformable to the most stubborn facts;—and whether it do not result from that mass of facts and reasons, that the Author’s assertion, the most interesting to mankind, (that is, to all Princes and their People) is not of the most irrefragable truth, and a truth the most easily brought within the reach of all the parts interested therein?
I, though merely Editor, shall venture still further;—I shall suppose the result of this combination of facts and reasons to be, that the means hitherto devised as the most proper to alleviate the burdens of the people, were the best devised to oppress them: What matters it to the people, provided they are to be oppressed no longer? What is the time past, but the baseless fabric of a vision?
I shall likewise suppose, that from those facts and reasons it should result also, that never was a decrease in the Prince’s revenue more effectually secured, than by the contrivances devised to increase it: What is it to the Prince, provided it be no longer possible to mistake the true means of enriching him?—Is it not the time to come, that should, above all, engross the attention of a Great Prince?
I shall again suppose, as another result, that it has been a mistaken notion, to imagine that the revenue of the People must be lessened, in order to increase that of the Prince:—What is that to the Prince—what is it to the People—provided both be now convinced, that it is not possible to enrich the one, either really or nominally, without enriching the other in the same manner, and in the same proportion?
I shall further suppose, that it should evidently result also, that in the Administration of the finances of any country, there is not, there has not been a single principle, nay, not a single idea worthy of the name: What is this to the Ministers who now hold that department?—Can they command what is past? And is it not the redressing of abuses, when discovered, that constitutes the true glory of a Ministry?
To crown the whole, I shall even suppose, that thence also should result, to a very insignificant individual of _America_, a little sprig of that _European_ shrub called Bay-tree:—What would that signify to all the Ministers, all the People, and all the Princes in _Europe_?—Will _America_ consume less _European_ goods, or will she produce less gold and silver, for having produced an idea?
ERRATA.
Page 149, last line, for 1581, read 1551. 158, l. 3, for _extravagance_, read _examination_. 194, l. 24, for _20 millions_, read _27 millions_. 198, l. 10, for 46_s._ read 46_s._ 8_d._ 308, l. 13, for _will content_, read _will NOT content_.
Transcriber’s Note: The errata have been corrected, along with a few minor typographical errors.
CONTENTS.
Page
_Thoughts on the Mechanism of Societies._ 1
_A general View of the present State of Great Britain._ 3
_A more particular View of the same Subject._ 12
_Clear Savings of the Manufactories, Trade, and other Branches of Industry._ 17
_Thoughts on Impost and Reimbursements. The Accumulation of public Treasure considered as the Means of preventing Taxation._ 27
_On the grievous, but necessary Part of the Impost._ 36
_Of the Part of the Impost which is more useful than grievous._ 41
_Objections of another Kind against paying off the national Debt._ 51
_In what Manner the Interest of the national Debt will be probably paid off._ 59
_Reflexions on the two foregoing Articles._ 76
_A Thought substituted to that of a Reimbursement._ 83
_General Balance of Trade in ~England~._ 93
_Reflexions on some private Balances of ~England~, both of the favourable and unfavourable Kind._ 111
_Balance between ~England~ and ~Holland~._ 116
_⸺ between ~England~ and ~France~._ 123
_Further Reasons why all Ideas of a favourable Balance different from that which I have supposed should be rejected._ 126
_Equilibrium necessary in all Things. Of the surest Means of establishing it._ 130
_Various Causes of the Alterations in the Prices._ 137
_On the Influences of the national Prices on the Sales in foreign Markets._ 151
_A necessary Principle of Trade considered both as direct and in competition._ 159
_Reflexion on a Letter from ~Philadelphia~ inserted in the ~English~ News-papers._ 170
_Under what Point of View Premiums and other Encouragements of Exportation may be considered._ 182
_On the Influence of the various Kinds of Taxation upon national Prices._ 188
_On the Object of all Ministers of Finance in laying Taxes._ 192
_Effects of a general Poll-tax._ 193
_Effects of a Land-tax._ 196
_Reflexions on the foregoing System._ 203
_Effects of an Impost exclusively laid on Luxury._ 208
_Effects of a merciless Tax upon all Articles of the most general Consumption._ 218
_Effects of compound Taxation._ 223
_Some Doubts on the supposed Impossibility of laying all Taxes on Consumption._ 231
_Recapitulation of the foregoing Thoughts on Taxes, and their Effects._ 242
_Further Considerations on the Necessity of a Correspondence between the Prices of Agriculture and those of Industry._ 248
_Of a Cause little suspected of high Prices._ 257
_The happy Issue of a desperate Combat between Monopoly and some private Interests._ 265
_Reflexions on a very strange Revolution in ~France~._ 270
_The pretended Balance of ~France~ in Point of Trade._ 291
_Exportations and Importations considered as a Game._ 308
_The nominal Value of the generality of Exports considered, with Respect to its Effect on foreign Correspondence._ 338
_On Luxury._ 352
_On Colonies._ 372
_Preface in ~French~._ 399
[Illustration]
THOUGHTS ON THE MECHANISM of SOCIETIES.
The first step that led to civilisation was, probably, some kind of slavery, whatever might be its nature. It seems impossible that the strongest and most industrious, following no other impulse than that of a consciousness of his superiority, should have come to the noble resolution of sharing generously, with the weak and idle, the fruits of his own labours and industry; nor can it be supposed that he could suffer any one, but himself, to pronounce on the prerogatives due to his courage and his abilities. But the most consummate knowledge of the means which may have paved the way to despotism, would throw but a faint light on the various subjects which I propose to take under consideration. The Epoch which it may be useful to dwell upon, is that, wherein the chiefs of the different states, being in no anxiety for an authority which is no longer contested, are the first to acknowledge its limits, and begin at last to be solicitous for the happiness of their subjects.
Such, in my opinion, is now the prevailing system all over Europe. The advantage of true freedom is fully felt, and its influence over all-commanding wealth universally acknowledged. But, in order to compare the inferences with the principles, to appreciate the measures by their effects, I shall fix upon that Nation whose avowed maxims, and best known circumstances, are most likely to furnish me with a train of arguments, without having recourse to any further suppositions but such as may appear necessary to clear up the facts that will be adduced in support of those arguments, and to render the consequences, to be deduced from them, more lucid and pointed.
I shall begin with the most interesting article in the present situation of affairs, namely, how far the wealth of a State, and the affluence of the Subject, may be affected by a NATIONAL DEBT?
_A general View of the present State of GREAT BRITAIN._
Mr. _Arthur Young_’s valuation of the Revenue, in his Political Arithmetic, is the result of his own private observations. Nothing ever occurred to me on the subject, that can come up with the minute accounts he gives us of the different provinces which he has visited in the north, south, and east of _England_.
I am ready to suppose, with that gentleman, that the joint revenue of _England_ and _Scotland_ may be computed, the landed produce and commercial profits included, at 110 millions sterling.
Mr. _Chalmers_ has published a work on the comparative resources of this country at different periods; a subject, it seems, difficult to touch upon without examining the state of population. This publication, according to my judgement, unites to such solid principles as the matter will admit, a great deal of propriety in the manner of applying them, and of drawing the inferences.
I willingly acquiesce, taking it for granted, with the author, that _Great Britain_ contains 9,350,000 inhabitants: but, at the same time, I apprise the reader, that I do not mean to take any advantage of a population more or less numerous; nor of a larger or smaller amount of the revenue. _Data_ I require; but such I will prefer as most nearly border on reality. There is not a State to which, with a difference in the numbers, one may not apply what I have to say concerning _England_, in those which I have adopted.
It appears from the estimates of Mr. _King_, who, in the reign of _William_ and _Mary_, proved himself as exact an observer as Mr. _Young_ has done in our days, that the produce of Land alone amounted then to 32,000,000; the latter calculator nearly doubles it, by rating it at 63,000,000. The Custom House books, the exactness of which cannot be disputed in one of the two facts they vouch to, (_the Burthen of the Shipping, and the Produce of Exportation_,) will shew that the former, from the year 1709 to 1773, progressively increased from 289,318, to 775,078 tons; and the years 1697, 1698, 1699, taken upon a medium and compared with 1771, 1772, and 1773, tend to prove that the gradual rise of the Exports has been still more considerable, being from 5,612,058_l._ to 16,027,937_l._ (Vide _Sir Charles Whitworth’s State of Trade_).
The foreign trade of _England_ seems therefore to have trebled since the beginning of the present century. We shall, in the sequel, state the reasons for supposing the commerce of other nations to have experienced the same progression.
The annual sum of 110,000,000, divided amongst 9,350,000 inhabitants, will produce daily little less than 8 pence per head, from the Monarch down to the meanest subject.
The observations I have made in several parts of _France_, from documents, it is true, no ways comparable to those of Mr. _Young_, could not justify my allowing so large a revenue to each individual in that kingdom. Yet _France_ and _England_ are the two richest and most flourishing countries in _Europe_.