第14章
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  thebrilliantcontroversialistFrancescoFerrara,professoratTurinfrom1849

  to1858(inwhoseschoolmostofthepresentItalianteachersofthesciencewere,directlyorindirectly,educated),apartisan

  ofthelaisserfairedoctrineinitsmostextremeform,andanadvocateofthepeculiaropinionsofCareyandBastiatonthe

  subjectofrent;and,lastly,theNeapolitanministerLudovicoBianchini(PrincipiidellaScienzadelBenVivereSociale,

  1845and1855),whoisremarkableashavingfollowedinsomedegreeanhistoricaldirection,andassertedtheprincipleof

  relativity,andwhoalsodweltontherelationsofeconomicswithmorals,byadueattentiontowhichtheItalianeconomists

  have,indeed,ingeneralbeenhonourablydistinguished。

  SPAIN

  TheWealthofNationswastranslatedintoSpanishbyJ。A。Ortizin1794。ItmayperhapshaveinfluencedGasparde

  Jovellanos,whoin1795presentedtothecouncilofCastileandprintedinthesameyearhiscelebratedInformedeLa

  SociedadEconomicadeMadridenexpedientedeLeyAgraria,whichwasapowerfulpleaforreform,especiallyintaxation

  andthelawsaffectingagriculture,includingthoserelatingtothesystemsofentailandmortmain。AnEnglishversionofthis

  memoirisgiveninthetranslation(1809)ofLaborde’sSpain,vol。iv。GERMANY

  RoscherobservesthatSmithdidnotatfirstproducemuchimpressioninGermany。(73)Hedoesnotappeartohavebeen

  knowntoFredericktheGreat;hecertainlyexercisednoinfluenceonhim。NordidJosephIItakenoticeofhiswork。Andof

  theminorGermanprinces,KarlFriedrichofBaden,asaphysiocrat,wouldnotbeaccessibletohisdoctrines。Itwas

  otherwiseinthegenerationwhoseprincipalactivitybelongstothefirstdecadeofthe19thcentury。ThePrussianstatesmen

  whoweregroupedroundSteinhadbeenformedaseconomistsbySmith,ashadalsoGentz,intellectuallythemost

  importantmanoftheMetternichregimeinAustria。

  ThefirstGermanexpositorsofSmithwhodidmorethanmerelyreproducehisopinionswereChristianJacobKraus

  (17531807),GeorgSartorius(17661828),andAugustFerdinandLüder(17601819)。Theycontributedindependent

  viewsfromdifferentstandpoints,thefirstfromthatoftheeffectofSmith’sdoctrineonpracticalgovernment,thesecond

  fromthatofitsbearingonhistory,thethirdfromthatofitsrelationtostatistics。SomewhatlatercameGottliebHufeland

  (17601817),JohannFriedrichEusebiusLotz(17711838),andLudwigHeinrichvonJakob(17591827),who,whilst

  essentiallyoftheschoolofSmith,applythemselvestoarevisionofthefundamentalconceptionsofthescience。These

  authorsdidnotexertanythinglikethewideinfluenceofSay,partlyonaccountofthelessattractiveformoftheirwritings,

  butchieflybecauseGermanyhadnotthen,likeFrance,aEuropeanaudience。JuliusvonSoden(17541831)islargely

  foundedonSmith,whom,however,hecriticiseswithundueseverity,especiallyinregardtohisformandarrangement;theWealthofNationshedescribesasaseriesofpreciousfragments,andcensuresSmithfortheabsenceofacomprehensive

  viewofthiswholesubject,andalsoasone—sidedlyEnglishinhistendencies。

  ThehighestformoftheSmithiandoctrineinGermanyisrepresentedbyfourdistinguishednames:KarlHeinrichRau

  (17921870),FriedrichNebenius(17841857),FriedrichBenedictWilhelmHermann(17951868),andJohannHemrichvon

  Thünen(17831850)。

  Rau’scharacteristicis\"eruditethoroughness。\"HisLehrbuch(182632)isanencyclopaediaofallthatuptohistimehad

  appearedinGermanyundertheseveralheadsofVolkswirthschaftslehre,Volkswirthschaftspolitik,andFinanzwissenschaft。

  Hisbookisrichinstatisticalobservations,andisparticularlyinstructiveontheeconomiceffectsofdifferentgeographical

  conditions。Itiswelladaptedfortheteachingofpublicservantswhosedutiesareconnectedwitheconomics,anditwasin

  factthesourcefromwhichtheGermanofficialworlddowntotheseventiesofthe19thcenturyderiveditsknowledgeofthe

  science。InhisearlierperiodRauhadinsistedonthenecessityofareformofeconomicdoctrine(Ansichtender

  Volkswirthschaft,1821),andhadtendedtowardsrelativityandthehistoricalmethod;butheafterwardsconceivedthe

  mistakennotionthatthatmethod\"onlylookedintothepastwithoutstudyingthemeansofimprovingthepresent,\"and

  becamehimselfpurelypracticalinthenarrowersenseofthatword。HehasthemeritofhavinggivenaseparatetreatmentofUnternehmergewinn,or\"wagesofmanagement。\"Nebenius,ministerinBaden,whowaslargelyinstrumentalinthe

  foundationoftheZollverein,wasauthorofahighlyesteemedmonographonpubliccredit(1820)。TheStaatswirthschafthicheUntersuchungen(1832;2ded。,1870)ofHermanndonotformaregularsystem,buttreataseriesof

  importantspecialsubjects。Hisraretechnologicalknowledgegavehimagreatadvantageindealingwithsomeeconomic

  questions。Hereviewedtheprincipalfundamentalideasofthesciencewithgreatthoroughnessandacuteness。\"Hisstrength,\"

  saysRoscher,\"liesinhisclear,sharp,exhaustivedistinctionbetweentheseveralelementsofacomplexconception,orthe

  severalstepscomprehendedinacomplexact。\"ForkeenanalyticalpowerhisGermanbrethrencomparehimwithRicardo。

  Butheavoidsseveralone—sidedviewsoftheEnglisheconomist。Thusheplacespublicspiritbesideegoismasaneconomic

  motor,regardspriceasnotmeasuredbylabouronlybutasaproductofseveralfactors,andhabituallycontemplatesthe

  consumptionofthelabourer,notasapartofthecostofproductiontothecapitalist,butasthemainpracticalendof

  economics。ThünenisknownprincipallybyhisremarkableworkentitledDerIsolirteStaatinBeziehungauf

  LandwirthschaftundNationalökonomie(1826;3ded。,1875)。Inthistreatise,whichisaclassicinthepoliticaleconomyof

  agriculture,thereisarareunionofexactobservationwithcreativeimagination。Withaviewtoexhibitthenatural

  developmentofagriculture,heimaginesastate,isolatedfromtherestoftheworld,circularinformandofuniformfertility,

  withoutnavigableriversorcanals,withasinglelargecityatitscentre,whichsuppliesitwithmanufacturesandreceivesin

  exchangeforthemitsfood—products,andproceedstostudytheeffectofdistancefromthiscentralmarketontheagricultural

  economyoftheseveralconcentricspaceswhichcomposetheterritory。Themethod,itwillbeseen,ishighlyabstract,but,

  thoughitmaynotbefruitful,itisquitelegitimate。Theauthorisundernoillusionblindinghimtotheunrealityofthe

  hypotheticcase。Thesuppositionisnecessary,inhisview,inordertoseparateandconsiderapartoneessential

  conditionthat,namely,ofsituationwithrespecttothemarket。Itwashisintention(imperfectlyrealised,however)to

  instituteafterwardsseveraldifferenthypothesesinrelationtohisisolatedstate,forthepurposeofsimilarlystudyingother

  conditionswhichinreallifearefoundincombinationorconflict。Theobjectiontothismethodliesinthedifficultyofthe

  returnfromtheabstractstudytotheactualfacts;andthisisprobablyaninsuperableoneinregardtomostofits

  applications。Theinvestigation,however,leadstotrustworthyconclusionsastotheconditionsofthesuccessionofdifferent

  systemsoflandeconomy。Thebookaboundsincalculationsrelatingtoagriculturalexpenditureandincome,whichdiminish

  itsinteresttothegeneralreader,thoughtheyareconsideredvaluabletothespecialist。Theyembodytheresultsofthe

  practicalexperienceoftheauthoronhisestateofTellowinMecklenburg—Schwerin。Thünenwasstronglyimpressedwith

  thedangerofaviolentconflictbetweenthemiddleclassandtheproletariate,andstudiedearnestlythequestionofwages,

  whichhewasoneofthefirsttoregardhabitually,notmerelyasthepriceofthecommoditylabour,butasthemeansof

  subsistenceofthemassofthecommunity。Hearrivedbymathematicalreasoningsofsomecomplexityataformulawhich

  expressestheamountof\"naturalwages\"as=whereaisthenecessaryexpenditureofthelabourerforsubsistence,and

  pistheproductofhislabour。Tothisformulaheattributedsomuchimportancethathedirectedittobeengravedonhis

  tomb。Itimpliesthatwagesoughttorisewiththeamountoftheproduct;andthisconclusionledhimtoestablishonhis

  estateasystemofparticipationbythelabourersintheprofitsoffarming,ofwhichsomeaccountwillbefoundinMr。Sedley

  Taylor’sProfit—sharingbetweenCapitalandLabour(1884)。Thünendeservesmoreattentionthanhehasreceivedin

  England;bothasamanandasawriterhewaseminentlyinterestingandoriginal;andthereismuchinDerIsolirteStaatand

  hisotherworksthatisawakeningandsuggestive。

  RoscherrecognizeswhathecallsaGermano—Russian(deutsch—russische)schoolofpoliticaleconomy,represented

  principallybyHeinrichStorch(17661825)。Mercantilistprincipleshadbeenpreachedbyanative(\"autochthonen\")

  economist,IvanPossoschkoff,inthetimeofPetertheGreat。ThenewideasoftheSmithiansystemwereintroducedinto

  RussianbyChristianVonSchhizer(17741831)inhisprofessoriallecturesandinhisAnfangsgründederStaatswirthschaft,

  oderdieLehrevomNational—reichthume(18051807)。Storchwasinstructorineconomicscienceofthefutureemperor

  Nicholasandhisbrotherthegrand—dukeMichael,andthesubstanceofhislessonstothemiscontainedinhisCours

  d’économiePolitique(1815)。ThetranslationofthistreatiseintoRussianwaspreventedbythecensorship;Raupublisheda

  Germanversionofit,withannotations,in1819。Itisaworkofavery。highorderofmerit。Theepithet\"deutsch—russisch\"

  seemslittleapplicabletoStorch;asRoscherhimselfsays,hefollowsmainlyEnglishandFrenchwritersSay,Sismondi,

  Turgot,Bentham,Steuart,andHume,but,aboveall,AdamSmith。Hispersonalposition(andthesameistrueofSchi6zer)

  ledhimtoconsidereconomicdoctrinesinconnectionwithastageofculturedifferentfromthatoftheWesternpopulations

  amongstwhichtheyhadbeenformulated;thischangeofthepointofviewopenedthedoortorelativity,andhelpedto

  preparetheHistoricalmethod。Storch’sstudyoftheeconomicandmoraleffectsofserfdomisregardedasespecially

  valuable。Thegeneralsubjectswithwhichhehasparticularlyconnectedhisnameare(1)thedoctrineofimmaterial

  commodities(orelementsofnationalprosperity),suchashealth,talent,morality,andthelike;(2)thequestionof

  \"productive\"and\"unproductive,\"ascharactersoflabourandofconsumption,onwhichhedisagreedwithSmithandmay

  havefurnishedindicationstoDunoyer;and(3)thedifferencesbetweentherevenueofnationsandthatofindividuals,on

  whichhefollowsLauderdaleandisopposedtoSay。ThelattereconomisthavingpublishedatParis(1823)aneweditionof

  Storch’sCours,withcriticismssometimesoffensiveintone,hepublishedbywayofreplytosomeofSay’sstrictureswhatis

  consideredhisripestandscientificallymostimportantwork,ConsidérationssurlanatureduRevenuNational(1824;

  translatedintoGermanbytheauthorhimself,1825)。

  AdistinctnoteofoppositiontotheSmithianeconomicswassoundedinGermanybytwowriters,who,settingoutfrom

  somewhatdifferentpointsofview,animatedbydifferentsentiments,andfavouringdifferentpracticalsystems,yet,sofaras

  theircriticismsareconcerned,arriveatsimilarconclusions;wemeanAdamMüllerandFriedrichList。

  AdamMüller(17791829)wasundoubtedlyamanofrealgenius。InhisprincipalworkÉlementederStaatskunst(1809),

  andhisotherwritings,herepresentsamovementofeconomicthoughtwhichwasinrelationwiththe(so—called)Romantic

  literatureoftheperiod。ThereactionagainstSmithianismofwhichhewasthecoryphaeuswasfoundedonanattachmentto

  theprinciplesandsocialsystemoftheMiddleAges。Itispossiblethatthepoliticalandhistoricalideaswhichinspirehim,his

  repugnancetocontemporaryliberalism,andhisnotionsofregularorganicdevelopment,especiallyinrelationtoEngland,

  wereinsomedegreeimbibedfromEdmundBurke,whoseReflectionsontheRevolutioninFrancehadbeentranslatedinto

  GermanbyFriedrichGentz,thefriendandteacherofMüller。Theassociationofhiscriticismswithmediaevalprepossessions

  oughtnottopreventourrecognizingtheelementsoftruthwhichtheycontain。

  HeprotestsagainstthedoctrineofSmithandagainstmodernpoliticaleconomyingeneralonthegroundthatitpresentsa

  mechanical,atomistic,andpurelymaterialconceptionofsociety,thatitreducestonullityallmoralforcesandignoresthe

  necessityofamoralorder,thatitisatbottomnomorethanatheoryofprivatepropertyandprivateinterests,andtakesno

  accountofthelifeofthepeopleasawholeinitsnationalsolidarityandhistoricalcontinuity。Exclusiveattention,he

  complains,isdevotedtotheimmediateproductionofobjectspossessingexchangevalueandtothetransitoryexistenceof

  individuals;whilsttothemaintenanceofthecollectiveproductionforfuturegenerations,tointellectualproducts,powers,

  possessionsandenjoyments,andtotheStatewithitshighertasksandaims,scarcelyathoughtisgiven。Thetruthisthat

  nationsarespecialisedorganismswithdistinctprinciplesoflife,havingdefiniteindividualitieswhichdeterminethecourseof

  theirhistoricaldevelopment。Eachisthroughalltime,onewhole;and,asthepresentistheheirofthepast,itoughttokeep

  beforeitconstantlythepermanentgoodofthecommunityinthefuture。Theeconomicexistenceofapeopleisonlyoneside

  orprovinceofitsentireactivity,requiringtobekeptinharmonywiththehigherendsofsociety;andtheproperorganto

  effectthisreconciliationistheState,which,insteadofbeingmerelyanapparatusfortheadministrationofjustice,represents

  thetotalityofthenationallife。Thedivisionoflabour,Müllerholds,isimperfectlydevelopedbySmith,whomakesittoarise

  outofanativebentfortruckorbarter;whilstitsdependenceoncapitalonthelaboursandaccumulationsofpast

  generationsisnotdulyemphasised,noristhenecessarycounterpoiseandcompletionofthedivisionoflabour,inthe

  principleofthenationalcombinationoflabour,properlybroughtout。Smithrecognizesonlymaterial,notspiritual,capital;

  yetthelatter,representedineverynationbylanguage,astheformerbymoney,isarealnationalstoreofexperience,

  wisdom,goodsense,andmoralfeeling,transmittedwithincreasebyeachgenerationtoitssuccessor,andenableseach

  generationtoproduceimmenselymorethanbyitsownunaidedpowersitcouldpossiblydo。Again,thesystemofSmithis

  one—sidedlyBritish;ifitisinnocuousonthesoilofEngland,itisbecauseinhersocietytheoldfoundationsonwhichthe

  spiritualandmateriallifeofthepeoplecansecurelyrestarepreservedinthesurvivingspiritoffeudalismandtheinner

  connectionofthewholesocialsystemthenationalcapitaloflaws,manners,reputation,andcredit,whichhasbeenhanded

  downinitsintegrityinconsequenceoftheinsularpositionofthecountry。ForthecontinentofEuropeaquitedifferent

  systemisnecessary,inwhich,inplaceofthesumoftheprivatewealthofindividualsbeingviewedastheprimaryobject,the

  realwealthofthenationandtheproductionofnationalpowershallbemadetopredominate,andalongwiththedivisionof

  labouritsnationalunionandconcentrationalongwiththephysical,nolesstheintellectualandmoral,capitalshallbe

  embraced。IntheseleadingtraitsofMüller’sthoughtthereismuchwhichforeshadowsthemorerecentformsofGerman

  economicandsociologicalspeculation,especiallythosecharacteristicofthe\"Historical\"school。

  AnotherelementofoppositionwasrepresentedbyFriedrichList(17891846),amanofgreatintellectualvigouraswellas

  practicalenergy,andnotableashavingpowerfullycontributedbyhiswritingstotheformationoftheGermanZollverein。

  HisprincipalworkisentitledDasNationaleSystemderPolitischenOekonomie(1841;7thed。,1883:Eng。trans。,1885)。

  ThoughhispracticalconclusionsweredifferentfromMüller’s,hewaslargelyinfluencedbythegeneralmodeofthinkingof

  thatwriter,andbyhisstricturesonthedoctrineofSmith。Itwasparticularlyagainstthecosmopolitanprincipleinthe

  moderneconomicsystemthatheprotested,andagainsttheabsolutedoctrineoffreetrade,whichwasinharmonywiththat

  principle。HegaveprominencetotheNationalidea,andinsistedonthespecialrequirementsofeachnationaccordingtoits

  circumstancesandespeciallytothedegreeofitsdevelopment。

  HerefusestoSmith’ssystemthetitleoftheindustrial,whichhethinksmoreappropriatetothemercantilesystem,and

  designatestheformeras\"theexchange—valuesystem。\"HedeniestheparallelismassertedbySmithbetweentheeconomic

  conductpropertoanindividualandtoanation,andholdsthattheimmediateprivateinterestoftheseparatemembersofthe

  communitywillnotleadtothehighestgoodofthewhole。Thenationisanexistence,standingbetweentheindividualand

  Humanity,andformedintoaunitybyitslanguage,manners,historicaldevelopment,culture,andconstitution。Thisunityis

  thefirstconditionofthesecurity,wellbeing,progress,andcivilizationoftheindividual;andprivateeconomicinterests,like

  allothers,mustbesubordinatedtothemaintenance,completion,andstrengtheningofthenationality。Thenationhavinga

  continuouslife,itstruewealthconsistsandthisisList’sfundamentaldoctrinenotinthequantityofexchange—valueswhich

  itpossesses,butinthefullandmany—sideddevelopmentofitsproductivepowers。Itseconomiceducation,ifwemayso

  speak,ismoreimportantthantheimmediateproductionofvalues,anditmayberightthatthepresentgenerationshould

  sacrificeitsgainandenjoymenttosecurethestrengthandskillofthefuture。Inthesoundandnormalconditionofanation

  whichhasattainedeconomicmaturity,thethreeproductivepowersofagriculture,manufactures,andcommerceshouldbe

  alikedeveloped。Butthetwolatterfactorsaresuperiorinimportance,asexercisingamoreeffectiveandfruitfulinfluenceon

  thewholecultureofthenation,aswellasonitsindependence。Navigation,railways,allhighertechnicalarts,connect

  themselvesspeciallywiththesefactors;whilstinapurelyagriculturalstatethereisatendencytostagnation,absenceof

  enterprise,andthemaintenanceofantiquatedprejudices。Butforthegrowthofthehigherformsofindustryallcountriesare

  notadaptedonlythoseofthetemperatezones,whilstthetorridregionshaveanaturalmonopolyintheproductionof

  certainrawmaterials;andthusbetweenthesetwogroupsofcountriesadivisionoflabourandconfederationofpowers

  spontaneouslytakesplace。Listthengoesontoexplainhistheoryofthestagesofeconomicdevelopmentthroughwhichthe

  nationsofthetemperatezone,whicharefurnishedwithallthenecessaryconditions,naturallypass,inadvancingtotheir

  normaleconomicstate。Theseare(1)pastorallife,(2)agriculture,(3)agricultureunitedwithmanufactures;whilstinthe

  finalstageagriculture,manufactures,andcommercearecombined。Theeconomictaskofthestateistobringintoexistence

  bylegislativeandadministrativeactiontheconditionsrequiredfortheprogressofthenationthroughthesestages。Outof

  thisviewarisesList’sschemeofindustrialpolitics。Everynation,accordingtohim,shouldbeginwithfreetrade,stimulating

  andimprovingitsagriculture,byintercoursewithricherandmorecultivatednations,importingforeignmanufacturesand

  exportingrawproducts。Whenitiseconomicallysofaradvancedthatitcanmanufactureforitself,thenasystemof

  protectionshouldbeemployedtoallowthehomeindustriestodevelopthemselvesfully,andsavethemfrombeing

  overpoweredintheirearliereffortsbythecompetitionofmorematuredforeignindustriesinthehomemarket。Whenthe

  nationalindustrieshavegrownstrongenoughnolongertodreadthiscompetition,thenthehigheststageofprogresshas

  beenreached;freetradeshouldagainbecometherule,andthenationbethusthoroughlyincorporatedwiththeuniversal

  industrialunion。InList’stime,accordingtohisview,Spain,Portugal,andNapleswerepurelyagriculturalcountries;

  GermanyandtheUnitedStatesofNorthAmericahadarrivedatthesecondstage,theirmanufacturesbeinginprocessof

  development。Francewasneartheboundaryofthethirdorhigheststage,whichEnglandalonehadreached。ForEngland,

  therefore,aswellasfortheagriculturalcountriesfirst—named,freetradewastherighteconomicpolicy,butnotfor

  GermanyorAmerica。Whatanationlosesforatimeinexchange—valuesduringtheprotectiveperiodshemuchmorethan

  gainsinthelongruninproductivepower,thetemporaryexpenditurebeingstrictlyanalogous,whenweplaceourselvesat

  thepointofviewofthelifeofthenation,tothecostoftheindustrialeducationoftheindividual。Thepracticalconclusion

  whichListdrewforhisowncountrywasthatsheneededforhereconomicprogressanextendedandconvenientlybounded

  territoryreachingtothesea—coastbothonnorthandsouth,andavigorousexpansionofmanufacturesandcommerce,and

  thatthewaytothelatterlaythroughjudiciousprotectivelegislationwithacustomsunioncomprisingallGermanlands,and

  aGermanmarinewithaNavigationAct。ThenationalGermanspirit,strivingafterindependenceandpowerthroughunion,

  andthenationalindustry,awakingfromitslethargyandeagertorecoverlostground,werefavourabletothesuccessof

  List’sbook,anditproducedagreatsensation。Heablyrepresentedthetendenciesanddemandsofhistimeinhisown

  country;hisworkhadtheeffectoffixingtheattention,notmerelyofthespeculativeandofficialclasses,butofpracticalmen

  generally,onquestionsofPoliticalEconomy;andhehadwithoutdoubtanimportantinfluenceonGermanindustrialpolicy。

  Sofarasscienceisconcerned,theemphasishelaidontherelativehistoricalstudyofstagesofcivilizationasaffecting

  economicquestions,andhisprotestagainstabsoluteformulas,hadacertainvalue;andthepreponderancegiventothe

  nationaldevelopmentovertheimmediategainsofindividualswassoundinprinciple;thoughhisdoctrinewas,bothonits

  publicandprivatesides,toomuchofamerechrematistic,andtendedinfacttosetupanewformofmercantilism,rather

  thantoaidthecontemporaryefforttowardssocialreform。

  MostofthewritersathomeorabroadhithertomentionedcontinuedthetraditionsoftheschoolofSmith,onlydeveloping

  hisdoctrineinparticulardirections,sometimesnotwithoutone—sidednessorexaggeration,orcorrectingminorerrorsinto

  whichhehadfallen,orseekingtogivetotheexpositionofhisprinciplesmoreoforderandlucidity。Someassailedtheabuse

  ofabstractionbySmith’ssuccessors,objectedtotheconclusionsofRicardoandhisfollowerstheirnon—accordancewiththe

  actualfactsofhumanlife,orprotestedagainsttheanti—socialconsequenceswhichseemedtoresultfromtheapplicationof

  the(so—called)orthodoxformulas。AfewchallengedSmith’sfundamentalideas,andinsistedonthenecessityofalteringthe

  basisofgeneralphilosophyonwhichhiseconomicsultimatelyrest。But,notwithstandingvariouspremonitoryindications,

  nothingsubstantial,atleastnothingeffective,wasdone,withinthefieldwehaveasyetsurveyed,towardstheestablishment

  ofareallyneworderofthinking,ornewmodeofproceeding,inthisbranchofinquiry。Now,however,wehavetodescribe

  agreatandgrowingmovement,whichhasalreadyconsiderablychangedthewholecharacterofthestudyintheconceptions

  ofmany,andwhichpromisestoexerciseastillmorepotentinfluenceinthefuture。WemeantheriseoftheHistorical

  School,whichweregardasmarkingthethirdepochinthemoderndevelopmentofeconomicscience。

  NOTES:

  1。AnEnglishtranslationoftheDixmeRoyalewaspublishedin1708。

  2。\"RichardCantillonandtheNationalityofPoliticalEconomy,\"inContemporaryReview,Jan。1881。Cantillonisquotedin

  theWealthofNations,bk。i。chap。8。

  3。GournaystronglyrecommendedtohisfriendsCantillon’sbookas\"ouvrageexcellentqu’onnégligeait。\"Mémoiresde

  Morellet,i。38。

  4。SeeCliffeLeslie’sEssaysinPoliticalandMoralPhilosophy。p。151。

  5。Prof。Ricca—Salemo(LeDottrineFinanziarieinInghilterra)hascalledattentiontothefactthattheproposalofasingle

  tax,onland,groundedontheoreticprinciplesidenticalwiththoseofthePhysiocrats,wasputforward,andsupportedwith

  muchclearnessandforce,soearlyas1714,byJacobVanderlint。anEnglishman,inhistractentitledMoneyanswersall

  things。

  6。AcompleteeditionoftheOEuvreséconomiquesetphilosophiquesofQuesnaywaspublishedbyOnckenin1888。

  7。WealthofNations,bk。iv,chap。9。

  8。Ibid。bk。i,chap。11。

  9。Gournay’sinspirationwas,withoutdoubt,largelyEnglish。\"Ilavaitlu,\"saysMorellet,\"debonslivresAnglaisd’Économie

  politique,tellsquePetty,Davennat,Gee,Child,etc。\"——Mémoires,i。18。

  10。OtherlessprominentmembersofthegroupwereLetrosniandtheAbbéBaudeau。

  11。OnGaliani’sDialogues,seepage72。SoonaftertheappearanceofthisbookTurgotwrotetoMlle。deLespinasse——\"Je

  croispossibledeluifaireunetrèsbonneréponse;maiscelademandebiendel’art。Leséconomistessonttropconfiantspour

  combattrecontreunsiadroitferrailleur。Pourl’abbeMorellet,ilnefautpasqu’ilypense。\"Morellet’sworkwasprohibitedby

  theController—GénéralTerray;thoughprintedin1770,somemonthsafterGalliani’s,itwasnotpublishedtill1774——Adam

  SmithspeaksofMorelletas\"aneminentFrenchauthor,ofgreatknowledgeinmattersofpoliticaleconomy\"(Bk,v,chap,

  I)。

  12。Hume,inalettertoMorellet,1769,callsthem\"thesetofmenthemostchimericalandarrogantthatnowexist。\"He

  seemsintentionallytoignoreMorellet’scloseconnectionwiththem。

  13。Turgotsaid,\"Quiconquen’oubliepasqu’ilyadesétatspolitiquesséparéslesunsdesautresetconstituésdiversement,ne

  traiterajamaisbienaucunequestiond’Économiepolitique。\"LettertoMlle。desLespinasse,1770。

  14。SeealsoGrimm:\"C’estPiatonaveclaverveetlesgestesd’Ariequin。\"Diderotcalledthebook\"modèlededialoguesqui

  reateraàcôtéleslettresdePascal。\"

  15。J。S。Mill,inhisPrinciples,bk。i。chap。I,takescredittohisfatherforhavingfirstillustratedandmadeprominentin

  relationtoproductionwhathestrangelycalls,afundamentalprincipleofPoliticalEconomy,\"namely,that\"allthatmandoes

  orcandowithmatter\"isto\"moveonethingtoorfromanother。\"ButtheisclearlyputfowardbyVerriinhisMeditazioni,

  sect。3:\"Accostareesepararesonogtuaicielementichel’ingegnoumanoritrovaanalizzandol’ideadellariproduzione。\"

  16。HistoryofAmerica,note193

  17。PhilosophiePositive,vol。vp。759。

  18。Roschel,GeschichtederN。O。inDeutschland,p。498。

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