An Inquiry into the Permanent Causes of the Decline and Fall of Powerful and Wealthy Nations Part 45

It was discovered a few centuries ago, that small princ.i.p.alities, and even single cities, acquired more wealth by industry, than all the mighty monarchs of the middle ages did by war; but we are not yet advanced to the ultimate end of the lessons that experience and reason give in regard to the interests of nations, with regard to wealth and power.

To suppose that mankind will ever live entirely at peace is absurd, and is to suppose them to change their nature. Such a reverie would only suit one of the revolutionists of France; but let us hope that there is still a possibility to lessen the causes of quarrels amongst nations. The true principles of political economy lead to that, and the object is sufficiently important.

By _agriculture_ and _manufactures_; that is, by producing such things as are conducive to the happiness of man, the _aggregate wealth of mankind_ can alone be increased.

By _commerce_, which consists in conveying or selling the produce of industry, the aggregate wealth of mankind is not increased, but its _distribution is altered_. {219}

{219} Though the produce of soil is not obtained without industry, yet, to make a distinction that is simple and easily understood and retained, we suppose manufactured produce to go by the name of the produce of industry.

[end of page #289]

As individuals, and sometimes nations, have obtained great wealth, not by producing, but by altering the distribution of wealth produced; that is, by commerce, that seems, to those who aim at wealth, to be the greatest object of ambition.

If every nation in the world were industrious, and contented with consuming the articles it produced, they would all be wealthy and happy without commerce; or, if each nation enjoyed a share of commerce, in proportion to what it produced, there would be no superiority to create envy.

Variety of soil and climate, difference of taste, of manners, and an infinity of other causes, have rendered commerce necessary, though it does not increase the aggregate wealth of mankind: but nations are in an error when they set a greater value on commerce than on productive industry.

Some nations are situated by nature so as to be commercial, just as others are to raise grapes and fine fruits; therefore, though one nation has more than what appears to be an equal share of commerce, it ought not to be a reason for envy, much less for enmity.

Some nations also find it their interest to attend chiefly to agriculture, others may find it necessary to attend more to manufactures; but that ought to be no cause of enmity or rivals.h.i.+p.

With a view, if possible, to diminish a little the envy and rivals.h.i.+p that still subsists, let us take a view of this business in its present state.

Britain, the wealthiest of nations, at this time, sells little of the produce of her soil, and a great deal of the produce of her industry; but she purchases a great deal of the produce of the soil of other countries, though not much of their industry: in this there is great mutual conveniency and no rivals.h.i.+p. In fact, her wealth arises nearly altogether from internal industry, and, by no means from that commerce that is the envy of other nations; for it is clear, that whoever produces a great deal may consume a great deal, without any exchange of commodities, and without commerce.

The English, number for number, produce more, by one-half, than [end of page #290] any other people; they can, therefore, consume more; they are, therefore, richer.

If France would cultivate her soil with the same care that we attend to manufactures, (at the same time manufacturing for herself as much as she did before the revolution,) she would be a much richer country than England, without having a single manufacture for exportation.

Her wines, brandies, fruits, &c. &c. would procure her amply whatever she might want from other nations. Let France make good laws to favour industry; and, above all, render property secure, and she will have no occasion to envy England.

Russia, part of Germany, Spain, Italy, and Portugal, are all in a similar situation with France in this respect; they will each be as rich as England the moment they are as industrious, and have as many inventions for the abbreviation of labour.

Holland, Sweden, Denmark, Prussia, and some parts of Germany, are, more or less, in the same situation with England; they require to pay attention to manufactures, for they have not the means of raising produce enough to exchange for all they want.

If there is any occasion for rivals.h.i.+p, or ground for envy, it is then but very small, and it happens that the rivals.h.i.+p which exists is between those nations that, in reality, ought to be the least envious of each other, the nations who have the fewest quarrels are those who really might be rivals.

Rivals.h.i.+p is natural between those who are in similar situations.

France, Spain, and Portugal, might be rivals. England, Holland, Prussia, and Denmark, might also be rivals; but there can be no reason for France envying England her manufactures and commerce, any more than for England envying France for her climate, soil, extent, =sic= of territory and population.

The way to produce the most, being to give industry its best direction.

Nations, differently situated, ought never to be rivals or enemies, on account of trade.

If those, who regulate the affairs of nations, were to consider this in its true light, there would be less jealousy and more industry. [end of page #291]

There appears to be only one real cause for war, so far as it is occasioned by a wish to obtain wealth; and that arises from possessions in the East and West Indies, and in America.

If there were no such possessions, or if they were more equally divided, there would be very little cause for war amongst nations.

It may, very possibly, at some distant time, be an object for a general congress of nations, to settle this point; so that it shall be no longer an object of jealousy. This can be done only by abandoning entirely, or dividing more equally; but, at present, the animosity and enmity occasioned is considerable, though not well founded.

The Spaniards are not envied for the possession of Peru, nor the Portuguese for the Brazils, though they draw more wealth from them than ever England or Holland did from their foreign possessions; yet, England is, and Holland was, an object of envy, on account of possessions abroad. This is the more unreasonable, that the Spaniards and Portuguese keep the trade strictly to themselves, while England allows nations, at peace with her, the most liberal conditions for trading with her Indian possessions: conditions, indeed, that give them a superiority over ourselves. {220} This conduct ought not to bring down upon England, envy or enmity, (though it does); for the fact is, that if all nations were at peace with England, they might, if they had capital and skill, (and that they have not is no fault of England,) trade with India to great advantage, while we should have the trouble of defending our establishments, and of keeping the country.

Before the revolution, France obtained more produce from Saint Domingo alone, in one year, than Britain did from all her West India Islands together, in three years, and much more than England did from all her foreign possessions together; yet, France was never obnoxious to other nations on that account.

{220} This may seem strange, but it is literally true; the quarrels between the India Company, and the free trade, as it is called, are an ample proof of the truth of it. The free-trade-merchants chiefly act under the name of agents for Swedish and Danish houses, so liberally has England acted with regard to neutral nations.

[end of page #292]

It appears, then, very evident, that the envy and jealousy do not arise from the _magnitude or value of foreign possessions_, but from some other cause, though it is laid to that account. This cause is worth inquiring into.

It appears that Holland and England have, alone, been causes of jealousy to other nations, on account of foreign possessions; but, that Spain, Portugal, and France, never have, though there was more real reason for envy and jealousy.

The reason of this appears to be, that those nations, who excited no envy, escaped it, because their indolence, or internal economy, prevented them from becoming rich; but, that Holland and England, which, in reality, owed their wealth chiefly to internal industry, and very little of it to foreign possessions, have excited great envy, and that England does so to the present hour. {221}

It is, then, wealth arising from industry, that is the object to be aimed at, and that cannot be obtained by war or conquest. The purpose is not advanced, but r.e.t.a.r.ded, by such contests; and if those, who rule nations, would condescend to enter into the merits of the case, they would find, not only that the happiness of the people, and every purpose at which they aim, would be better answered than by contesting about the means of wealth, which, consisting in internal industry, does not admit of a transfer. One nation may be ruined, and another may rise, (as, indeed, they are continually doing,) but one nation does not rise merely by ruining another; the wealth of a nation, like the happiness of an individual, draws the source from its own

{221} From both the East and West Indies, England never has, till within these last ten years, drawn three millions a year, that could be termed profit or gain, and, even in the last and most prosperous times, not eight millions, which is not equal to more than one-twentieth part of the produce of national industry at home. Even the foreign commerce of England, except so far as it procures us things we want, in exchange for things we have to spare, is not productive of much wealth. Supposing the balance in our favour to be six millions a year, which it has never uniformly been, it would only amount to one- twenty-fourth of our internal productive industry. In short, we gain five times as much by a wise division of labour, the use of machinery, ready and expeditious methods of working, as by the possession of both the Indies!!!

[end of page #293]

bosom. The possession of all the Indies would never make an indolent people rich; and while a people are industrious, and the industry is well directed, they never can be poor.

It is to be hoped, that the time is fast approaching, when nations will cease to fight about an object that is not to be obtained by fighting, and that they will seek for what they want, by such means as are safe and practicable. [end of page #294]

THE END.