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[354:1] Edinburgh, 1752, 8vo. Printed for Kincaid and Donaldson. It is in the Gentleman's Magazine list of books for February.
[354:2] Lord Brougham says, "Of the 'Political Discourses' it would be difficult to speak in terms of too great commendation. They combine almost every excellence which can belong to such a performance. The reasoning is clear, and unencumbered with more words or more illustrations than are necessary for bringing out the doctrine. The learning is extensive, accurate, and profound, not only as to systems of philosophy, but as to history, whether modern or ancient. The subjects are most happily chosen; the language is elegant, precise, and vigorous; and so admirably are the topics selected, that there is as little of dryness in these fine essays as if the subject were not scientific; and we rise from their perusal scarce able to believe that it is a work of philosophy we have been reading, having all the while thought it a book of curiosity and entertainment. The great merit, however, of these Discourses, is their originality, and the new system of politics and political economy which they unfold. Mr. Hume is, beyond all doubt, the author of the modern doctrines which now rule the world of science, which are to a great extent the guide of practical statesmen, and are only prevented from being applied in their fullest extent to the affairs of nations, by the clashing interests and the ignorant prejudices of certain powerful classes." Lives of Men of Letters, p. 204.
[355:1] Perhaps a portion of the pleasure with which these essays are read by those who are not partial to the study of political economy, may be attributed to their having been written before that science was in possession of a nomenclature, and thus appearing clothed in the ordinary language of literature.
[356:1] It was in the most aristocratic quarters that these innovating doctrines were best received; for in them was the greatest amount of education, and its influence was not at that time paralyzed by general prejudices against innovation. They were more in favour with the Tories than with the Whigs. Indeed, Archdeacon Tucker, one of the boldest speculators on the economy of trade, was in state politics one of the most uncompromising Tories of his age. Fox, on the other hand, said of the "Wealth of Nations," that "there was something in all these subjects which passed his comprehension, something so wide that he could never embrace them himself, or find any one who did." But in the French treaty, and in other measures regarding trade, Pitt was in the fair way of putting them into legislative practice, when, being arrested by the French revolution, he entertained thenceforward a bitter enmity of innovation; an enmity to which, in the department of political economy, his party became the heirs, preserving the succession down nearly to the present day, when, at least by their leader, old prejudices have been already in a great measure, and are likely soon to be altogether repudiated.
[358:1] It is not intended to be maintained that Hume's Political Economy is immaculate, but merely that in the majority of instances he has fixed certain truths which later inquiries have not shaken. The following passage, along with much that is received as true doctrine, contains some observations, such as those on the tax on German linen, and on brandy, which modern economists would pronounce to be heterodox. The question of a gold or a paper currency was one which Hume did not profess to decide. He described with considerable impartiality the advantages and the disadvantages of both mediums of exchange.
"From these principles we may learn what judgment we ought to form of those numberless bars, obstructions, and imposts, which all nations of Europe, and none more than England, have put upon trade, from an exorbitant desire of amassing money, which never will heap up beyond its level, while it circulates; or from an ill-grounded apprehension of losing their specie, which never will sink below it. Could any thing scatter our riches, it would be such impolitic contrivances. But this general ill effect, however, results from them, that they deprive neighbouring nations of that free communication and exchange which the Author of the world has intended, by giving them soils, climates, and geniuses, so different from each other.
"Our modern politics embrace the only method of banishing money, the using of paper credit; they reject the only method of amassing it, the practice of hoarding; and they adopt a hundred contrivances, which serve to no purpose but to check industry, and rob ourselves and our neighbours of the common benefits of art and nature.
"All taxes, however, upon foreign commodities, are not to be regarded as prejudicial or useless, but those only which are founded on the jealousy above mentioned. A tax on German linen encourages home manufactures, and thereby multiplies our people and industry. A tax on brandy increases the sale of rum, and supports our southern colonies. And as it is necessary that imposts should be levied for the support of government, it may be thought more convenient to lay them on foreign commodities, which can easily be intercepted at the port, and subjected to the impost. We ought, however, always to remember the maxim of Dr. Swift, that, in the arithmetic of the customs, two and two make not four, but often make only one. It can scarcely be doubted, but if the duties on wine were lowered to a third, they would yield much more to the government than at present: our people might thereby afford to drink commonly a better and more wholesome liquor; and no prejudice would ensue to the balance of trade, of which we are so jealous. The manufacture of ale beyond the agriculture is but inconsiderable, and gives employment to few hands. The transport of wine and corn would not be much inferior."
The following account of a banking practice still in lively operation in Scotland, affords a specimen of Hume's capacity to grapple with practical details.
"There was an invention which was fallen upon some years ago by the banks of Edinburgh, and which, as it was one of the most ingenious ideas that has been executed in commerce, has also been thought advantageous to Scotland. It is there called a Bank-Credit, and is of this nature:—A man goes to the bank, and finds surety to the amount, we shall suppose, of a thousand pounds. This money, or any part of it, he has the liberty of drawing out whenever he pleases, and he pays only the ordinary interest for it while it is in his hands. He may, when he pleases, repay any sum so small as twenty pounds, and the interest is discounted from the very day of the repayment. The advantages resulting from this contrivance are manifold. As a man may find surety nearly to the amount of his substance, and his bank-credit is equivalent to ready money, a merchant does hereby in a manner coin his houses, his household furniture, the goods in his warehouse, the foreign debts due to him, his ships at sea; and can, upon occasion, employ them in all payments, as if they were the current money of the country. If a man borrow a thousand pounds from a private hand, besides that it is not always to be found when required, he pays interest for it whether he be using it or not: his bank-credit costs him nothing except during the very moment in which it is of service to him: and this circumstance is of equal advantage as if he had borrowed money at much lower interest. Merchants likewise, from this invention, acquire a great facility in supporting each other's credit, which is a considerable security against bankruptcies. A man, when his own bank-credit is exhausted, goes to any of his neighbours who is not in the same condition, and he gets the money, which he replaces at his convenience."
