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The following letter to Oswald shows us that Hume was, at the time it was written, earnestly engaged in the preparation of the "Essays on Political Economy," which he published in 1752.
Hume to James Oswald of Dunnikier.
"Dear Sir,—I confess I was a little displeased with you for neglecting me so long; but you have made ample compensation. This commerce, I find, is of advantage to both of us; to me, by the new lights you communicate, and to you, by giving you occasion to examine these subjects more accurately. I shall here deliver my opinion of your reasonings with the freedom which you desire.
"I never meant to say that money, in all countries which communicate, must necessarily be on a level, but on a level proportioned to their people, industry, and commodities. That is, where there is double people, &c. there will be double money, and so on; and that the only way of keeping or increasing money is, by keeping and increasing the people and industry; not by prohibitions of exporting money, or by taxes on commodities, the methods commonly thought of. [302]I believe we differ little on this head. You allow, that if all the money in England were increased fourfold in one night, there would be a sudden rise of prices; but then, say you, the importation of foreign commodities would soon lower the prices. Here, then, is the flowing out of the money already begun. But, say you, a small part of this stock of money would suffice to buy foreign commodities, and lower the prices. I grant it would for one year, till the imported commodities be consumed. But must not the same thing be renewed next year? No, say you; the additional stock of money may, in this interval, so increase the people and industry, as to enable them to retain their money. Here I am extremely pleased with your reasoning. I agree with you, that the increase of money, if not too sudden, naturally increases people and industry, and by that means may retain itself; but if it do not produce such an increase, nothing will retain it except hoarding. Suppose twenty millions brought into Scotland; suppose that, by some fatality, we take no advantage of this to augment our industry or people, how much would remain in the quarter of a century? not a shilling more than we have at present. My expression in the Essay needs correction, which has occasioned you to mistake it.
"Your enumeration of the advantages of rich countries above poor, in point of trade, is very just and curious; but I cannot agree with you that, barring ill policy or accidents, the former might proceed gaining upon the latter for ever. The growth of every thing, both in art and nature, at last checks itself. The rich country would acquire and retain all the manufactures that require great stock or great skill; but the poor country would gain from it all the [303]simpler and more laborious. The manufactures of London, you know, are steel, lace, silk, books, coaches, watches, furniture, fashions; but the outlying provinces have the linen and woollen trade.
"The distance of China is a physical impediment to the communication, by reducing our commerce to a few commodities; and by heightening the price of these commodities, on account of the long voyage, the monopolies, and the taxes. A Chinese works for three-halfpence a-day, and is very industrious; were he as near us as France or Spain, every thing we used would be Chinese, till money and prices came to a level; that is, to such a level as is proportioned to the numbers of people, industry, and commodities of both countries.
"A part of our public funds serve in place of money; for our merchants, but still more our bankers, keep less cash by them when they have stock, because they can dispose of that upon any sudden demand. This is not the case with the French funds. The rentes of the Hotel de Ville are not transferable, but are most of them entailed in the families. At least, I know there is a great difference in this respect betwixt them and the actions of the Indian Company.
"That the industry and people of Spain, after the discovery of the West Indies, at first increased more than is commonly imagined, is a very curious fact; and I doubt not but you say so upon good authority, though I have not met with that observation in any author.
"Beside the bad effects of the paper credit in our colonies, as it was a cheat, it must also be allowed that it banished gold and silver, by supplying their place. On the whole, my intention in the Essay was to remove people's terrors, who are apt, from chimerical [304]calculations, to imagine they are losing their specie, though they can show in no instance that either their people or industry diminish; and also to expose the absurdity of guarding money otherwise than by watching over the people and their industry, and preserving or increasing them. To prohibit the exportation of money, or the importation of commodities, is mistaken policy; and I have the pleasure of seeing you agree with me.
"I have no more to say, but compliments; and therefore shall conclude. I am," &c.[304:1]
"Ninewells, 1st November, 1750."
In 1750 there was published in Edinburgh, an edition of Montesquieu's "Esprit des Loix; avec les dernieres corrections et illustrations de l'Auteur."[304:2] That Hume was instrumental to this publication, is shown by the letters addressed to him by Montesquieu between the years 1749 and 1753, printed in the appendix. It appears, that, as he there intimates, the author sent over a copy of his corrections and illustrations; but the work must have been partly printed before their arrival, for, in the advertisement to the reader, it is stated that a few of the earliest sheets, where the more important amendments occurred, had to be [305]reprinted, while some minor alterations are supplied by a list of corrections.
Montesquieu's appreciation of some of Hume's ethical works will be read with interest. Hume appears to have made the first advances towards an intimacy; and the great Frenchman, then in his sixtieth year, seems to have hailed with satisfaction the appearance of a kindred spirit, and to have received his proffers with warm cordiality. This is the commencement of that intercourse with his eminent contemporaries in France, which we shall hereafter find to occupy a prominent feature in Hume's literary and social history.
At this period we find Hume taking much interest in the conduct of a certain James Fraser, in connexion with the Westminster election of 1749—one of the marked epochs in the parliamentary history of that renowned constituency. The candidates were Lord Trentham the eldest son of Earl Gower, and Sir George Vandeput, of whom the former was returned by the high bailiff. Sir George Vandeput was the "independent" candidate, representing the "English interest." Lord Trentham was a placeman, and was accused of a partiality for French interests. Though the Jacobites were ranged on the Vandeput side, Lord Trentham was by implication accused of having favoured the exiled family; as by one of the election placards issued on the occasion, the voters are desired to "ask Lord Trentham, who had his foot in the stirrup in the year 1715?" He was charged with having sacrificed his country or Jacobite principles for a place, and with being that most abhorred of all political characters, an ex-patriot, who has ratted to obtain office. Shortly before the election, a riotous attack had been made on a small French theatre, which had [306]become peculiarly unpopular by obtaining a licence, when some English establishments had been suppressed under Walpole's act. It appears that Lord Trentham had, with some others, endeavoured to preserve the friendless foreigners from the fury of the mob. So un-English an act, as this harbouring and protecting of foreign vagabonds, against the just indignation of true born Britons, was very successfully displayed as an overt act in favour of Popery, Jacobitism, and French ascendency; and the skilful manner in which it was improved, in the hand-bills, and pasquinades of the Vandeput party, shows that this department of the electioneering art was not then far from its present state of maturity.[306:1]
