economic literature of the time is therefore eminently practical. "By far the larger number of contemporary tracts were written by men who were advocating some particular proposal, and who adduced general reasons in favour of the special scheme they had in view."1 But "general reasons" naturally tend to the formation of theories; and so we can see in a good deal of the literature the growth of particular theories on economic subjects.2 Thus we get the beginnings of a distinctively economic point of view which, as it gathers strength and cohesion, will have a progressively increasing influence on the course of legislation. It is true that, during the whole of this period, all economic theory accepts as an axiom the view that the increase and maintenance of the power of the state is the ultimate test by which all legislation upon industry and commerce must be judged. But the views of writers as to the measures which will best secure this object are naturally coloured by their education and calling. As commerce and the political power of commercial men increased, naturally their views began to prevail; and the prevalence of their views meant the growth of the theory that the wealth and power of the state would be best maintained and increased by legislation favourable to the development of commerce on the new capitalistic lines.

Obviously this involved the abolition of many of those legislative restrictions on the freedom of industry, which the sixteenth century had taken over from the Middle Ages in a modified form. Thus Child criticizes the laws limiting the price of beer,3 the laws against engrossing, the law forbidding a man to use any manual occupation unless he had been first apprenticed,* "all bylaws used among the society and other artificers limiting masters to keep but one apprentice at a time," the laws "that oblige our people to the making of strong substantial (and as we call it loyal) cloth of a certain length breadth and weight," the laws "limiting the numbers of looms or kind of servants or times of working," the laws prohibiting "a weaver from being a fuller tucker or dyer, or a fuller or tucker from keeping a loom." " He contends that exporters should have a discretion, as each individual "best knows what will please his customers beyond the seas.' But, it might be asked, if these regulations are to disappear in order to secure an increased trade, what is to take their

"10

1 Cunningham, op. cit. ii 381.

2 Ibid 401.

7

3 A New Discourse on Trade (1694) 71-72; cp. North, Discourse on Trade, Pref., "that no law can set prices in trade, the rates of which must and will make themselves."

place? The answer given in some cases was that more general laws would serve. Thus, in order to secure the good quality of the cloth manufactured in England, Child suggests that the quality and measure of certain standard varieties should be guaranteed by a public seal;1 and that all other varieties should be sealed with the maker's mark, the counterfeiting of which should be a serious offence. In other cases, it was said that no laws at all were necessary because, if made, they would not be efficacious. They would not, it was said, be efficacious either (i) because they were opposed to the general course and custom of the trade, or, (ii) because they attempted to effect what was naturally impossible. Let us glance at these two reasons for

abandoning legislative control.

3

(i) Mun demonstrated that laws prohibiting the export of bullion were futile; and we have seen that Child, speaking of the legislation prohibiting the export of wool, expressed his opinion that such prohibition was futile because, whatever the law might say, those who could give the best price for a commodity would be certain to get it. Again, it had been argued that, unless foreign trade was controlled by companies, shop-keepers and other inexperienced people might turn merchants; and that "they will, through ignorance, neglect buying and sending out our native manufactures, and will send out our money or bills of exchange to buy foreign commodities, which is an apparent national loss." To this Child replied that shop-keepers are, like everyone else, "led by their profit," and "if it be for their advantage to send out manufactures they will do it without forcing; and if it be for their profit to send over money or bills of exchange they will do that, and so will merchants, as soon and as much as they."5 Obviously the moral is in both these cases that the course of trade should be left to regulate such matters. As North put it, "no people ever yet grew great by politics, but it is peace, industry, and freedom that bring trade and wealth and nothing else."6 And that it was beginning to be recognized on all hands that the course of trade might, in many cases, be too strong for the legislature, is clear from a conversation which Pepys tells us he had with an official of the mint. "To another question

1 A New Discourse on Trade (1694) 150.

2 Ibid 151.

3 England's Treasure by Foreign Trade (Ashley's Ed.) 118-119-whatever the laws may say, "so much treasure only will be brought in or carried out of a commonwealth as the foraign trade doth over or under ballance in value. And this must come to pass by a Necessity beyond all resistance"; cp. Barbon, Discourse concerning coining new money lighter 57.

Above 347 n. 2.

A New Discourse on Trade (1694) 107-108.

Discourse upon Trade, Select Tracts on Commerce (1856) 540.

7 Pepys, Diary (Ed. Wheatley) iv 342.

of mine he made me fully understand that the old law of prohibiting bullion to be exported, is, and ever was, a folly and an injury, rather than good. Arguing thus, that if the exportations exceed importations, then the balance must be brought home in money, which, when our merchants know cannot be carried out again, they will forbear to bring home in money, but let it lie abroad for trade, or keep in foreign banks: or, if our importations exceed our exportations, then, to keep credit, the merchants will and must find ways of carrying out money by stealth, which is a most easy thing to do, and is everywhere done; and therefore the law against it signifies nothing in the world." The men who knew the world of commerce had a very practical knowledge of what laws were efficacious and what not; and they could not help seeing that, to use Petty's words, "too many matters have been regulated by laws which nature, long custom, and general consent, ought only to have governed."1

(ii) The view that certain kinds of legislation were inefficacious, somewhat easily slides into the view that they were inefficacious because they were "naturally" impossible. And this view was materially assisted by Petty's economic writings. As Hull has pointed out, the influence of Bacon on Petty was marked. He was "an eager member of that group of experimental investigators, working in the spirit of the Novum Organum,' who began the systematic pursuit of scientific knowledge in England." And he was one of the first to try to give some sort of scientific reasons for economic phenomena, and to explain these phenomena by "natural" causes." Thus he explained how the phenomenon of rent arises-it is, he says, the surplus after the husbandman has provided seed for the next harvest, and provided for his maintenance. Similarly he endeavoured to discover "the natural standards of usury or exchange"; and he condemned laws which limit the rate of interest, because it is vain to legislate against giving a rate of interest

1 Political Arithmetick, Pref., Economic Writings (Ed. Hull) i 243. Economic Writings i lxiii; see Evelyn's laudatory account of Petty, Diary, 22nd March, 1675; among other things he says, "There is not a better Latin poet living when he gives himself that diversion; nor is his excellence less in Council and prudent matters of state; but he is so exceeding nice in sifting and examining all possible contingencies, that he adventures at nothing which is not demonstration. There were not in the whole world his equal for a superintendent of manufacture and improvement of trade, or to govern a Plantation. If I were a Prince I would make him my second counsellor at least. There is nothing difficult to him."

3 He anticipated the modern conclusion that statistical investigation, applied to wisely selected circumstances, affords perhaps the best substitute for experimentation that is open to an economist. . . . The application of an appropriate method not yet very usual' to a field of knowledge in which it was altogether new, justifies him in associating himself with the most eminent followers of the new philosophy, and even distinguishes him among his colleagues," Hull, op. cit. i lxv-lxvi.

A Treatise of Taxes, Economic Writings (Ed. Hull) 43.

which the hazardous character of the security makes it necessary for the lender to demand.1 So with regard to food prices-they must be determined by the natural law of demand and supply.2 Thus the new scientific methods applied to economic phenomena often led to the adoption of a point of view, and to conclusions, similar to those arrived at by commercial men anxious for greater freedom to push their trades. The scientific inquirer naturally tended to isolate the phenomena which he was investigating. The commercial man naturally tended to consider that the strength and power of the state would be best secured by measures which ensured the expansion of commerce. The scientific man demonstrated the futility of attempting to legislate against the natural laws which he had discovered. The commercial man found in these demonstrations an additional argument in favour of the policy which he advocated."

Now it is obvious that, as these ideas prevail with the legislature, the character and course of the legislation on commerce and industry will alter. The old mediæval restrictions and machinery, if not actually abolished, will gradually become obsolete. No doubt some such development was advantageous, and in fact necessary, to the continued expansion of the trade of the country. But it had its dangers. The chief of these dangers will be that the legislature will regard the expansion of trade, and the resulting increase of wealth, as an end in itself, and not merely as an aid to securing and increasing the strength and prosperity of the nation as a whole. Already we can see some signs that this point of view was beginning to emerge. The Tudor scheme for the regulation of wages was obsolete. Child maintained that the laws against engrossing were a mistake." Petty advocated the repeal of the laws which forbade foreigners to purchase land, and imposed upon foreign traders extra duties,

4

1"As for usury, the least that can be, is the rent of so much land as the money lent will buy, when the security is undoubted; but when the security is casual, then a kind of insurance must be interwoven with the simple natural interest, which may advance the usury very conscionably unto any height below the principal itself. But of the vanity and fruitlessness of making civil positive laws against the laws of nature, I have spoken elsewhere, and instanced in several particulars," ibid 48; cp. North, Discourse upon Trade, Select Tracts 521.

2 A Treatise of Taxes, Works (Ed. Hull) 51-52.

3 The beginnings of this combination may perhaps be illustrated by what is truly said in the Preface to North's Discourse upon Trade as to the characteristics of that tract "I find trade here treated at another rate than usually has been; I mean philosophically; for the ordinary and vulgar conceits, being meer husk and rubbish are waived; and so proceeding with like care comes to a judgment of the nicest disputes and questions concerning trade"; it also comes out in the Merchants' criticism of the Bullion Exportation Bill of 1690, Hist. MSS. Com. 13th Rep. App. Pt. v no. 330 pp. 181-182, no. 353 pp. 205-207.

4 Above 348.

* Above 356.

because these laws interfered with the increase of trade.1 He did not consider that it might be to the interest of the nation to sacrifice some immediate gain, to prevent foreigners from acquiring an influence over English trade, which might, in the event of war, be used to our disadvantage. As yet, however, this danger is in the future. The commercial men had gained a position of great influence in the House of Commons; but they did not as yet dominate it; and they were not as yet governed wholly by the commercial point of view. They still distinguished, as Mun put it, "between the gain of the kingdom and the profit of the merchant"; and this is perhaps most strikingly illustrated by the fact that the policy of the Navigation Acts was maintained, although it was hurtful to the development of some branches of commerce and industry. As yet, too, the scientific study of economic phenomena is in its infancy. But the commercial and industrial legislation of the latter part of the eighteenth and the nineteenth centuries will show us that this danger will increase as the commercial point of view gains greater political weight, and as the study of economic questions becomes more "scientific."

3

We must now turn to the other branches of law in which the legislature of the latter half of the seventeenth century showed its activity.

The Press

"I deny not," wrote Milton in his Areopagitica, "but that it is of greatest concernment in the Church and Commonwealth to have a vigilant eye how books demean themselves as well as men; and thereafter to confine, imprison and do sharpest justice on them as malefactors: for books are not absolutely dead things, but do contain a potency of life in them, to be as active as that

1" Note that selling of lands to foreignors for gold and silver, would inlarge the stock of the kingdom: whereas doing the same between one another, doth effect nothing. For he that turneth all his land into money disposes himself for trade; and he that parteth with his money for land, doth the contrary; but to sell land to foreignors, increaseth both money and people, and consequently trade. Wherefore it is to be thought, that when the laws denying strangers to purchase, and not permitting them to trade, without paying extraordinary duties, were made; that then, the publick state of things, and interest of the nation, were far different from what they are now," Political Arithmetick, Economic Writings (Ed. Hull) i 313; cp. Child, A New Discourse on Trade (1694) 140 seqq., who recommends an Act for the naturalisation of strangers for somewhat similar reasons.

2 England's Treasure by Foreign Trade (Ed. Ashley) 14; and cp. Barbon's remarks on the wine trade, Discourse concerning coining new money lighter 46-" Tho' the importing of wines be certainly cried out against, yet it is one of the best trades to England; for being a very bulky commodity it pays a great freight; and being for the use of the richer people it pays a greater duty to the king, and that without complaint. For England being an island, and the riches and strength of it being from trade and shipping, those commodities that are bulky ought to be valued as most profitable." 3 Above 318-319.