Part 13 (1/2)

13.-What it is that destroys this Liberty Wherever commerce subsists, customs are established. Commerce is the exportation and importation of merchandise, with a view to the advantage of the state: customs are a certain right over this same exportation and importation, founded also on the advantage of the state. Hence it becomes necessary that the state should be neutral between its customs and its commerce, that neither of these two interferes with the other, and then the inhabitants enjoy a free commerce.

The farming of the customs destroys commerce by its injustice and vexations, as well as by the excess of the imposts: but independent of this, it destroys it even more by the difficulties that arise from it and by the formalities it exacts. In England, where the customs are managed by the king's officers, business is negotiated with a singular dexterity: one word of writing accomplishes the greatest affairs. The merchant needs not lose an infinite deal of time; he has no occasion for a particular commissioner, either to obviate all the difficulties of the farmers, or to submit to them.

14.-The Laws of Commerce concerning the Confiscation of Merchandise The Magna Charta of England forbids the seizing and confiscating, in case of war, the effects of foreign merchants, except by way of reprisals. It is an honor to the English nation that they have made this one of the articles of their liberty.

In the late war between Spain and England, the former made a law which punished with death those who brought English merchandise into the dominions of Spain; and the same penalty on those who carried Spanish merchandise into England.11 An ordinance like this cannot, I believe, find a precedent in any laws but those of j.a.pan. It equally shocks humanity, the spirit of commerce, and the harmony which ought to subsist in the proportion of penalties; it confounds all our ideas, making that a crime against the state which is only a violation of civil polity.

15.-Of seizing the Persons of Merchants Solon made a law that the Athenians should no longer seize the body for civil debts.12 This law he received from Egypt. It had been made by Boccoris, and renewed by Sesostris.13 This law is extremely good with respect to the generality of civil affairs; but there is sufficient reason for its not being observed in those of commerce.14 For as merchants are obliged to intrust large sums, frequently for a very short time, and to pay money as well as to receive it, there is a necessity that the debtor should constantly fulfil his engagements at the time prefixed; and hence it becomes necessary to lay a constraint on his person.

In affairs relating to common civil contracts, the law ought not to permit the seizure of the person; because the liberty of one citizen is of greater importance to the public than the ease or prosperity of another. But in conventions derived from commerce, the law ought to consider the public prosperity as of greater importance than the liberty of a citizen; which, however, does not hinder the restrictions and limitations that humanity and good policy demand.

16.-An excellent Law Admirable is that law of Geneva which excludes from the magistracy, and even from the admittance into the great council, the children of those who have lived or died insolvent, except they have discharged their father's debts. It has this effect: it creates a confidence in the merchants, in the magistrates, and in the city itself. There the credit of the individual has still all the weight of public credit.

17.-A Law of Rhodes15 The inhabitants of Rhodes went further. s.e.xtus Empiricus observes that among those people a son could not be excused from paying his father's debts by renouncing the succession. This law of Rhodes was calculated for a republic, founded on commerce. Now I am inclined to think that reasons drawn from commerce itself should make this limitation, that the debts contracted by the father since the son's entering into commerce should not affect the estate or property acquired by the latter. A merchant ought always to know his obligations, and to square his conduct by his circ.u.mstances and present fortune.

18.-Of the Judges of Commerce Xenophon, in his book of Revenues,16 would have rewards given to those overseers of commerce who despatched the causes brought before them with the greatest expedition. He was sensible of the need of our modern jurisdiction of a consul.

The affairs of commerce are but little susceptible of formalities. They are the actions of a day, and are every day followed by others of the same nature. Hence it becomes necessary that every day they should be decided. It is otherwise with those actions of life whice have a princ.i.p.al influence on futurity, but rarely happen. We seldom marry more than once; deeds and wills are not the work of every day; we are but once of age.

Plato17 says that in a city where there is no maritime commerce there ought not to be above half the number of civil laws: this is very true. Commerce brings into the same country different kinds of people; it introduces also a great number of contracts and species of wealth, with various ways of acquiring it.

Thus in a trading city there are fewer judges, and more laws.

19.-That a Prince ought not to engage himself in Commerce Theophilus,18 seeing a vessel laden with merchandise for his wife Theodora, ordered it to be burned. ”I am emperor,” said he, ”and you make me the master of a galley. By what means shall these poor men gain a livelihood if we take their trade out of their hands?” He might have added, Who shall set bounds to us if we monopolize all ourselves? Who shall oblige us to fulfil our engagements? Our courtiers will follow our example; they will be more greedy and more unjust than we: the people have some confidence in our justice, they will have none in our opulence: all these numerous duties, the cause of their wants, are certain proofs of ours.

20.-The same Subject continued When the Portuguese and Castilians bore sway in the East Indies, commerce had such opulent branches that their princes did not fail to seize them. This ruined their settlements in those parts of the world.

The viceroy of Goa granted exclusive privileges to particular persons. The people had no confidence in these men; and the commerce declined, by the perpetual change of those to whom it was intrusted; n.o.body took care to improve it, or to leave it entire to his successor. In short, the profit centred in a few hands, and was not sufficiently extended.

21.-Of the Commerce of the n.o.bility in a Monarchy In a monarchical government, it is contrary to the spirit of commerce that any of the n.o.bility should be merchants. ”This,” said the Emperors Honorius and Theodosius,19 ”would be pernicious to cities; and would remove the facility of buying and selling between the merchants and the plebeians.”

It is contrary to the spirit of monarchy to admit the n.o.bility into commerce. The custom of suffering the n.o.bility of England to trade is one of those things which have there mostly contributed to weaken the monarchical government.

22.-A singular Reflection Persons struck with the practice of some states imagine that in France they ought to make laws to engage the n.o.bility to enter into commerce. But these laws would be the means of destroying the n.o.bility, without being of any advantage to trade. The practice of this country is extremely wise; merchants are not n.o.bles, though they may become so. They have the hopes of obtaining a degree of n.o.bility, unattended with its actual inconveniences. There is no surer way of being advanced above their profession than to manage it well, or with success; the consequence of which is generally an affluent fortune.

Laws which oblige every one to continue in his profession, and to devolve it upon his children, neither are nor can be of use in any but despotic kingdoms; where n.o.body either can or ought to have emulation.20 Let none say that every one will succeed better in his profession when he cannot change it for another: I say that a person will succeed best when those who have excelled hope to rise to another.

The possibility of purchasing honor with gold encourages many merchants to put themselves in circ.u.mstances by which they may attain it. I do not take it upon me to examine the justice of thus bartering for money the price of virtue. There are governments where this may be very useful.

In France the dignity of the long robe, which places those who wear it between the great n.o.bility and the people, and without having such s.h.i.+ning honors as the former, has all their privileges; a dignity which, while this body, the depositary of the laws, is encircled with glory, leaves the private members in a mediocrity of fortune; a dignity in which there are no other means of distinction but by a superior capacity and virtue, yet which still leaves in view one much more ill.u.s.trious: the warlike n.o.bility, likewise, who conceive that, whatever degree of wealth they are possessed of, they may still increase their fortunes; who are ashamed of augmenting, if they begin not with dissipating, their estates; who always serve their prince with their whole capital stock, and when that is sunk make room for others, who follow their example; who take the field that they may never be reproached with not having been there; who, when they can no longer hope for riches, live in expectation of honors; and when they have not obtained the latter, enjoy the consolation of having acquired glory: all these things together have necessarily contributed to augment the grandeur of this kingdom; and if for two or three centuries it has been incessantly increasing in power, this must be attributed not to Fortune, who was never famed for constancy, but to the goodness of its laws.

23.-To what Nations Commerce is prejudicial Riches consist either in lands or in movable effects. The soil of every country is commonly possessed by the natives. The laws of most states render foreigners unwilling to purchase their lands; and nothing but the presence of the owner improves them: this kind of riches, therefore, belongs to every state in particular; but movable effects, as money, notes, bills of exchange, stocks in companies, vessels, and, in fine, all merchandise, belong to the whole world in general; in this respect, it is composed of but one single state, of which all the societies upon earth are members. The people who possess more of these movable effects than any other on the globe are the most opulent. Some states have an immense quant.i.ty acquired by their commodities, by the labor of their mechanics, by their industry, by their discoveries, and even by chance. The avarice of nations makes them quarrel for the movables of the whole universe. If we could find a state so unhappy as to be deprived of the effects of other countries, and at the same time of almost all its own, the proprietors of the lands would be only planters to foreigners. This state, wanting all, could acquire nothing; therefore, it would be much better for the inhabitants not to have the least commerce with any nation upon earth, for commerce in these circ.u.mstances must necessarily lead them to poverty.

A country that constantly exports fewer manufactures or commodities than it receives will soon find the balance sinking; it will receive less and less, until, falling into extreme poverty, it will receive nothing at all.

In trading countries the specie, which suddenly vanishes, quickly returns; because those nations that have received it are its debtors. But it never returns into those states of which we have just been speaking, because those who have received it owe them nothing.

Poland will serve us for an example. It has scarcely any of those things which we call the movable effects of the universe, except corn, the produce of its lands. Some of the lords possess entire provinces; they oppress the husbandmen, in order to have greater quant.i.ties of corn, which they send to strangers, to procure the superfluous demands of luxury. If Poland had no foreign trade, its inhabitants would be happier. The grandees, who would have only their corn, would give it to their peasants for subsistence; as their too extensive estates would become burdensome, they would divide them amongst their peasants; every one would find skins or wool in their herds or flocks, so that they would no longer be at an immense expense in providing clothes; the great, who are ever fond of luxury, not being able to find it but in their own country, would encourage the labor of the poor. This nation, I affirm, would then become more flouris.h.i.+ng, at least if it did not become barbarous; and this the laws might easily prevent.

Let us next consider j.a.pan. The vast quant.i.ty of what they receive is the cause of the vast quant.i.ty of merchandise they send abroad. Things are thus in as nice an equilibrium as if the importation and exportation were but small. Besides, this kind of exuberance in the state is productive of a thousand advantages; there is a greater consumption, a greater quant.i.ty of those things on which the arts are exercised; more men employed, and more numerous means of acquiring power; exigencies may also happen that require a speedy a.s.sistance, which so opulent a state can better afford than any other. It is difficult for a country to avoid having superfluities; but it is the nature of commerce to render the superfluous useful, and the useful necessary. The state will be, therefore, able to afford necessaries to a much greater number of subjects.

Let us say, then, that it is not those nations who have need of nothing that must lose by trade; it is those who have need of everything. It is not such people as have a sufficiency within themselves, but those who are most in want, that will find an advantage in putting a stop to all commercial intercourse.

1 This book was the beginning of the second part of ”The Spirit of Laws” in all the editions published during the life of the author.-Ed.

2 Caesar said of the Gauls that they were spoiled by the neighborhood and commerce of Ma.r.s.eilles; insomuch that they who formerly always conquered the Germans had now become inferior to them.-”War of the Gauls,” lib. VI.

3 Holland.

4 ”Et qui modo hospes fuerat, monstrator hospitii.”-”De Moribus Germanorum.” Vide Caesar, ”de Bello Gall.” lib. VI.

5 t.i.t. 38.

6 ”Nolo eundem populum imperatorem et port.i.torem esse terrarum.”

7 Justin, lib. XLIII. cap. iii.

8 Du Halde, vol. ii. p. 170 9 This was first established by the Portuguese.-Fr. Pirard's ”Voyages,” chap. xv. part II.

10 Act of Navigation, 1660. It is only time of war that the merchants of Boston and Philadelphia send their in vessels directly to the Mediterranean.

11 Published in Cadiz in March, 1740.

12 Plutarch, in his treatise against lending upon usury.

13 Diodorus, book I. part II. chap. iii.

14 The Greek legislators were to blame in preventing the arms and plough of any man from being taken in pledge, and yet permitting the taking of the man himself.-Diodorus, book I. part II. chap. iii.

15 Hypotiposes, book I. chap. xiv.

16 ”De Proventibus,” III.

17 ”On Laws,” book VIII.

18 Zonaras.

19 Leg. ”n.o.biliores,” Cod. ”de Comm,” et leg. ”ult. de rescind. vendit.”

20 This is actually very often the case in such governments.

Book XXI

-Docuit qu maximus Atlas.-VIRGIL, aeneid Of Laws in Relation to Commerce, Considered in the Revolutions it has Met with in the World 1.-Some general Considerations THOUGH commerce be subject to great revolutions, yet it is possible that certain physical causes, as the quality of the soil, or the climate, may fix its nature forever.

We at present carry on the trade of the Indies merely by means of the silver which we send thither. The Romans carried annually thither about fifty millions of sesterces;1 and this silver, as ours is at present, was exchanged for merchandise, which was brought to the West. Every nation that ever traded to the Indies has constantly carried bullion and brought merchandise in return.2 It is nature itself that produces this effect. The Indians have their hearts adapted to their manner of living. Our luxury cannot be theirs; nor theirs our wants. Their climate demands and permits hardly anything which comes from ours. They go in a great measure naked; such clothes as they have the country itself furnishes; and their religion, which is deeply rooted, gives them an aversion for those things that serve for our nourishment. They want, therefore, nothing but our bullion to serve as the medium of value; and for this they give us merchandise in return, with which the frugality of the people and the nature of the country furnish them in great abundance. Those ancient authors who have mentioned the Indies describe them just as we now find them, as to their policy, customs, and marners.3 The Indies have ever been the same Indies they are at present; and in every period of time those who traded with that country carried specie thither and brought none in return.