Essay on the Nature of Commerce in General.docx

Essay on the Nature of Commerce in General.docx

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EssayontheNatureofCommerceinGeneral

EssayontheNatureofCommerceinGeneral

PartOne

ChapterOne

OnWealth

Thelandisthesourceormatterfromwhenceallwealthisproduced.Thelabourofmanistheformwhichproducesit:

andwealthinitselfisnothingbutthemaintenance,conveniencies,andsuperfluitiesoflife.

Landproducesherbage,roots,corn,flax,cotton,hemp,shrubsandtimberofseveralkinds,withdiverssortsoffruits,bark,andfoliagelikethatofthemulberry-treeforsilkworms;itsuppliesminesandminerals.Toallthisthelabourofmangivestheformofwealth.

Riversandseassupplyfishforthefoodofman,andmanyotherthingsforhisenjoyment.Buttheseseasandriversbelongtotheadjacentlandsorarecommontoall,andthelabourofmanextractsfromthemthefishandotheradvantages.

ChapterTwo

OfHumanSocieties

Whichwaysoeverasocietyofmenisformedtheownershipofthelandtheyinhabitwillnecessarilybelongtoasmallnumberamongthem.

InwanderingsocietieslikeHordesofTartarsandCampsofIndianswhogofromoneplacetoanotherwiththeiranimalsandfamilies,itisnecessarythatthecaptainorkingwhoistheirleadershouldfixtheboundariesofeachheadofafamilyandthequartersofanIndividualaroundthecamp.Otherwisetherewouldalwaysbedisputesoverthequartersorconveniencies,woods,herbage,water,etc.butwhenthequartersandboundariesofeachmanaresettleditisasgoodasownershipwhiletheystayinthatplace.

Inthemoresettledsocieties:

ifaprinceattheheadofanarmyhasconqueredacountry,hewilldistributethelandsamonghisofficersorfavouritesaccordingtotheirmeritorhispleasure（aswasoriginallythecaseinFrance）:

hewillthenestablishlawstovestthepropertyinthemandtheirdescendants:

orhewillreservetohimselftheownershipofthelandandemployhisofficersorfavouritestocultivateit:

orwillgrantthelandtothemonconditionthattheypayforitanannualquitrentordue:

orhewillgrantittothemwhilereservinghisfreedomtotaxthemeveryyearaccordingtohisneedsandtheircapacity.Inallthesecasestheseofficersorfavourites,whetherabsoluteownersordependents,whetherstewardsorbailiffsoftheproduceoftheland,willbefewinnumberinproportiontoalltheinhabitants.

Eveniftheprincedistributethelandequallyamongalltheinhabitantsitwillultimatelybedividedamongasmallnumber.Onemanwillhaveseveralchildrenandcannotleavetoeachofthemaportionoflandequaltohisown;anotherwilldiewithoutchildren,andwillleavehisportiontosomeonewhohaslandalreadyratherthantoonewhohasnone;athirdwillbelazy,prodigal,orsickly,andbeobligedtosellhisportiontoanotherwhoisfrugalandindustrious,whowillcontinuallyaddtohisestatebynewpurchasesandwillemployuponitthelabourofthosewhohavingnolandoftheirownarecompelledtoofferhimtheirlabourinordertolive.

AtthefirstsettlementofRomeeachcitizenhadtwojournauxoflandallottedtohim.YettherewassoonafterasgreataninequalityintheestatesasthatwhichweseetodayinallthecountriesofEurope.Thelandwasdividedamongafewowners.

Supposingthenthatthelandofanewcountrybelongstoasmallnumberofpersons,eachownerwillmanagehislandhimselforletittooneormorefarmers:

inthiscaseitisessentialthatthefarmersandlabourersshouldhavealivingwhethertheycultivatethelandfortheownerorforthefarmer.Theoverplusofthelandisatthedispositionoftheowner:

hepaypartofittotheprinceorthegovernment,orelsethefarmerdoessodirectlyattheowner'sexpense.

Asfortheusetowhichthelandshouldbeput,thefirstnecessityistoemploypartofitforthemaintenanceandfoodofthosewhoworkuponitandmakeitproductive:

therestdependsprincipallyuponthehumourandfashionoflivingoftheprince,thelords,andtheowner:

ifthesearefondofdrink,vinesmustbecultivated;iftheyarefondofsilks,mulberry-treesmustbeplantedandsilkwormsraised,andmoreoverpartofthelandmustbeemployedtosupportthoseneededfortheselabours;iftheydelightinhorses,pastureisneeded,andsoon.

Ifhoweverwesupposethatthelandbelongstonooneinparticular,itisnoteasytoconceivehowasocietyofmencanbeformedthere:

wesee,forexample,inthevillagecommonsalimitedfixedtothenumberofanimalsthateachofthecommonersmayputuponthem;andifthelandwerelefttothefirstoccupierinanewconquestordiscoveryofacountryitwouldalwaysbenecessarytofallbackuponalawtosettleownershipinordertoestablishasociety,whetherthelawresteduponforceoruponpolicy.

ChapterThree

OfVillages

Towhatevercultivationlandisput,whetherpasture,corn,vines,etc.thefarmersorlabourerswhocarryontheworkmustlivenearathand;otherwisethetimetakeningoingtotheirfieldsandreturningtotheirhouseswouldtakeuptoomuchoftheday.Hencethenecessityforvillagesestablishedinallthecountryandcultivatedland,wheretheremustalsobeenoughfarriersandwheelwrightsfortheinstruments,ploughs,andcartswhichareneeded;especiallywhenthevillageisatadistancefromthetowns.Thesizeofavillageisnaturallyproportionedinnumberofinhabitantstowhatthelanddependentonitrequiresfordailywork,andtotheartisanswhofindenoughemploymentthereintheserviceofthefarmersandlabourers:

buttheseartisansarenotquitesonecessaryintheneighbourhoodoftownstowhichthelabourerscanresortwithoutmuchlossoftime.

Ifoneormoreoftheownersofthelanddependentonthevillageresidetherethenumberofinhabitantswillbegreaterinproportiontothedomesticservantsandartisansdrawnthither,andtheinnswhichwillbeestablishedtherefortheconvenienceofthedomesticservantsandworkmenwhoaremaintainedbythelandlords.

Ifthelandsareonlyproperformaintainingsheep,asinthesandydistrictsandmoorlands,thevillageswillbefewerandsmallersinceonlyafewshepherdsarerequiredontheland.

Ifthelandsonlyproducewoodsinsandysoilswherethereisnograssforbeasts,andiftheyaredistantfromtownsandriverswhichmakesthetimberuselessforconsumptionasoneseesinmanycasesinGermany,therewillbeonlysomanyhousesandvillagesasareneededtogatheracornsandfeedpigsinseason:

butifthelandsarealtogetherbarrentherewillbeneithervillagesnorinhabitants.

ChapterFour

OfMarketTowns

Therearesomevillageswheremarketshavebeenestablishedbytheinterestofsomeproprietororgentlemanatcourt.Thesemarkets,heldonceortwiceaweek,encourageseverallittleundertakersandmerchantstosetthemselvesupthere.Theybuyinthemarkettheproductsbroughtfromthesurroundingvillagesinordertocarrythemtothelargetownsforsale.Inthelargetownstheyexchangethemforiron,salt,sugarandothermerchandisewhichtheysellonmarketdaystothevillagers.Manysmallartisansalso,likelocksmiths,cabinetmakersandothers,settledownfortheserviceofthevillagerswhohavenoneintheirvillages,andatlengththesevillagesbecomemarkettowns.Amarkettownbeingplacedinthecentreofthevillages,andatlengththesevillagesbecomemarkettowns.Amarkettownbeingplacedinthecentreofthevillageswhosepeoplecometomarket,itismorenaturalandeasythatthevillagersshouldbringtheirproductsthitherforsaleonmarketdaysandbuythearticlestheyneed,thanthatthemerchantsandfactorsshouldtransportthemtothevillagesinexchangefortheirproducts.

（1）Forthemerchantstogoroundthevillageswouldunnecessarilyincreasethecostofcarriage.

（2）Themerchantswouldperhapsbeobligedtogotoseveralvillagesbeforefindingthequalityandquantityofproducewhichtheywishedtobuy.（3）Thevillagerswouldgenerallybeintheirfieldswhenthemerchantsarrivedandnotknowingwhatproducetheseneededwouldhavenothingpreparedandfitforsale.（4）Itwouldbealmostimpossibletofixthepriceoftheproduceandthemerchandiseinthevillages,betweenthemerchantsandthevillagers.Inonevillagethemerchantwouldrefusethepriceaskedforproduce,hopingtofinditcheaperinanothervillage,andthevillagerwouldrefusethepriceofferedforhismerchandiseinthehopethatanothermerchantwouldcomealongandtakeitonbetterterms.

Allthesedifficultiesareavoidedwhenthevillagerscometotownonmarketdaystoselltheirproduceandtobuythethingstheyneed.Pricesarefixedbytheproportionbetweentheproduceexposedforsaleandthemoneyofferedforit;thistakesplaceinthesamespot,undertheeyesofallthevillagersofdifferentvillagesandofthemerchantsorundertakersofthetown.Whenthepricehasbeensettledbetweenafewtheothersfollowwithoutdifficultyandsothemarketplaceofthedayisdetermined.Thepeasantgoesbacktohisvillageandresumeshiswork.

Thesizeofthemarkettownisnaturallyproportionedtothenumberoffarmersandlabourersneededtocultivatethelandsdependentonit,andtothenumberofartisansandsmallmerchantsthatthevillagesborderingonthemarkettownemploywiththeirassistantsandhorses,andfinallytothenumberofpersonswhomthelandownersresidenttheresupport.

Whenthevillagesbelongingtoamarkettown（i.e.whosepeopleordinarilybringtheirproducetomarketthere）areconsiderableandhavealargeoutputthemarkettownwillbecomeconsiderableandlargeinproportion;butwhentheneighbouringvillageshavelittleproducethemarkettownalsoispoorandinsignificant.

ChapterFive

OfCities

Theland