The Pamphlet Collection of Sir Robert Stout: Volume 11
The Wealth of Nations and the Slave Power
The Wealth of Nations and the Slave Power.
It has long been a prevalent notion, that Political Economy is a series of deductions from the principle of selfishness or private interest alone. The common desire of men to grow rich by the shortest and easiest methods—to obtain every gratification with the smallest sacrifice on their own part, has been supposed to be all that the political economist desires to have granted in theory, or to see regulating in practice the transactions of the world, to insure its material prosperity. A late eminent writer has described as follows the doctrine of Adam Smith, in the "Wealth of Nations:" "He everywhere assumes that the great moving power of all men, all interests, and all classes, in all ages and in all countries, is selfishness. He represents men as pursuing wealth for sordid objects, and for the narrowest personal pleasures. The fundamental assumption of his work is that each man follows his own interest, or what he deems to be his interest. And one of the peculiar features of his book is to show that, considering society as a whole, it nearly always happens that men, in promoting their own, will unintentionally promote the interest of others."1
1 Buckle's "History of Civilization," vol. ii.
But, if misery and desolation are the natural fruits of the natural instincts of mankind, how has the prosperity of Europe steadily advanced in spite of the enemy to it which nature seems to have planted in every man's heart? How has the predatory spirit been transformed into the industrial and commercial spirit? Under what conditions are individual efforts exerted, for the most part, for the general good? These are the chief problems solved in Adam Smith's "Inquiry into the Nature and Causes of the Wealth of Nations." He has been careful to point out that "the interests of individuals and particular orders of men, far from being always coincilent with, are frequently opposed to, the interests of the public;" and he observes that "all for themselves and nothing for other people, seems to have been, in every age, the vile maxin of the masters of mankind." The [unclear: effort] of every man to improve his on condition is, it is true, in Adam Smith's philosophy, a principle of [unclear: prservation] in the body politic; but he aim was to demonstrate that this ntural effort is operative for the good [unclear: of] society at large only in proportion to the just liberty secured to every rember of it to employ his natural powers as he thinks proper, whether for his [unclear: own] advantage, or for that of others. Every infraction of, and every interference with, individual liberty, he denounce as being as economically impolitic as morally unjust. His systematic purpose was to expose the losses which a nation uffers, not only from permission of the grosser forms of violence and oppresson, but from every sort of restricton whatever upon voluntary labour and enterprise. Of laws regulating griculture and manufactures for the suposed advantage of the public, he said, "oth were evident violations of natural liberty, and therefore unjust, and thy were as impolitic as they were unjust." That security, he added, which the laws in Great Britain give to every man, that he shall enjoy the fruits of his own labour, is alone sufficient to make any country flourish. The history of Europe, in so far as it is the history of the progress of opulence, is not, in his pages, the history of selfishness, but of improving justice; of emancipated industry, and of protection for the poor and weak. It is, accordingly, the history of strengthening restraints upon the selfish disposition of mankind to sacrifice the happiness and good of others to their advantage or immediate pleasure. The fundamental principles on which the increase of the wealth of nations rests are thus summed up, at the end of Adam Smith's Fourth Book: "All systems, either of preference or restraint, being thus completely taken away, the obvious and simple system of natural liberty establishes itself of its own accord. Every man, so long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and his capital into competition with those of any man or order of men."
1 "Anlo-Saxon Chronicle."—Bohn's Edition.
2 This paper was written before the publication of M. de Lavergne's Essay, De l' Accord de l' Economic Politique et de la Religion, in the Revue des Deux Mondes of the 15th of November last. It may not be out of place, however, to notice here a misconception, as the present writer thinks, which runs through that essay. Political economy and religion are, according to M. de Lavergne, though essentially distinct, related to each other as the soul and body are. Wealth, he says, means food, clothes, and houses; and religion, though it treats of higher things, does not teach that men should be left to perish of hunger and cold. Political economy has for its special end the satisfaction of the bodily wants, and religion that of the spiritual wants of man. M. de Lavergne seems to have been led astray by the economic use of general terms, such as material wealth, material interests, and material progress. For wealth is not really or properly limited in political economy to such things as satisfy the bodily or material wants of humanity. It comprehends many things, the use of which is to minister to man's intellectual and moral life, but which have, notwithstanding, a price or value. Books, for example, as well as bread and meat, are wealth. Spiritual and other instructors are paid for as well as butchers and doctors. Wealth means, in fact, many different things, more or less material or immaterial, in different ages and countries. The highest kinds of wealth will be found where there is most general freedom for the development of the highest powers of humanity, and where no class have a licence for the gratification of their selfish passions at the expense of any other class.
1 An American apologist for slavery invokes Political Economy on the side of the "domestic institution," in the following terms:—"Would it not be better that each—Great Britain and the Slave States of America—should go on in the career which they are now following, and (acting upon that fundamental principle of Political Economy which commands nations to develop their own resources at home, to sell where they can realize the greatest profit, and to buy where they can buy the cheapest) content themselves with their present prosperity, instead of seeking a doubtful prosperity from the destruction of the prosperity of others" (The South Vindicated, p. 127). Great Britain does, undoubtedly, owe her present prosperity to her obedience to that fundamental principle of Political Economy which commands nations to develop their resources at home by freeing domestic industry from every fetter. It would have been happy for the Southern States of America had they been content with a similar prosperity, instead of "seeking a doubtful advantage by the destruction of the prosperity of others."
1 Paper read before the British Association at Cambridge, by Mr. H. D. Macleod.
2 "The definition of Political Economy is the science of exchanges or of values . . . The general conception of wealth is exchangeability. Hence, if Political Economy is the science of wealth, it must be the science of the exchangeable relation of quantities. . . . Exchanges form the domain of economic science. . . . The whole body of exchanges which take place within a country, and with foreign countries, constitute what the majority of economists now hold to be pure economic science."—Abstract from Mr. Macleod's Paper in the Parthenon, November 1, 1862.
3 "Principles of Political Economy." By J. S. Mill. Fifth Edition, 1862, vol. i. p. 1. And, in p. 526, Mr. Mill says:—"One eminent writer (Archbishop Whately) has proposed, as a name for Political Economy, Catallactics, or the Science of Exchanges; by others, it has been called the Science of Values. ... It is, nevertheless, evident; that, of the two great departments of Political Economy, the production of Wealth and its distribution, the consideration of Value has to do with the latter alone, and with that only so far as competition, and not usage or custom, is the distributing agency. Even in the present system of industrial life, in which employments are minutely subdivided, and all concerned in production depend for their remuneration on the price of a particular commodity, Exchange is not the fundamental law of the distribution of the produce—no more than roads and carriages are the essential laws of motion.... To confound these ideas seems to me not only a logical, but a practical blunder."
4 "Logical Method of Political Economy." By J. G. Cairnes, Professor of Political Economy in the University of Dublin.
1 The "Wealth of Nations" contains the substance of the last division of a complete course of lectures upon moral science, in which Adam Smith expounded, in succession, Natural Theology, Ethics, Jurisprudence, and Political Economy. His lectures on Jurisprudence have not survived; but his pupil Dr. Millar states, that "he followed in them the plan suggested by Montesquieu, endeavouring to trace the gradual progress of jurisprudence from the rudest to the most refined ages, and to point out the effect of those arts which contribute to subsistence and to the accumulation of property, in producing corresponding improvements or alterations in law and government." From this it is clear that his conception of the true scope and method of jurisprudence agreed with his conception of the true scope and method of economic inquiry.
1 "It is a mistake," says another high authority, "to suppose that the African is by nature idle and indolent, less inclined to work than the European. He who has witnessed, as I have, their indefatigable and provident industry, will be disposed to overrate rather than underrate the activity of the negro and his love of labour."—The West Indies as they Were and as they Are. Edinburgh Review, April, 1859.
2 The following statement, affording evidence as to the character, capacity, and enterprise of the negroes, is contained in a letter to the writer of this paper from one of the principal English residents in Victoria, the capital of Vancouver's Island. It formed part of a general description of the Colony, furnished without any reference to the question of slavery:—"Before the gold excitement, but during the same year (1858), the Legislature of California passed a law forbidding the immigration of negroes. This caused the latter to appoint a deputation, which visited the British Possession of Vancouver's Island; and so favourable was their report, that it not only caused many coloured people to leave California, but also aroused general attention, particularly that of British subjects; for by all who had occasionally heard of the island before, it was considered a sort of petty Siberia. While people were reading accounts of the climate, soil, and low price of town lots in Victoria, there came rumours of rich gold sands on the banks of the Frazer River in British Columbia. Two or three small coasting vessels had previously sailed with coloured passengers; but the demand for passages by white people became so great, that large steamships departed every few days with from 300 to 1,000. Among them were some coloured people, and they have increased in number until, I think, we may safely estimate them at 500. The occupations of these coloured people in Victoria are, to the best of my recollection, porters, sawyers, draymen, day-labourers, barbers, and bath keepers; eating-house keepers; one hosier, as black as a coal, with the best stock in the town; and two or three grocers. Some of them went to the mines, and were moderately successful. Their favourite investment is in a plot of ground, on which they build a neat little cottage and cultivate vegetables, raise poultry, &c. Nearly all had been prosperous, and a few had so judiciously invested that they were in receipt of from 10l. to 40l. a month from rents. They are industrious, economical, and intend to make the colony their permanent home; the outskirts of the town are well sprinkled with their humble but neat dwellings, and their land is yearly increasing in value. By this showing they are a quiet, industrious, and law-abiding people; but there is a drawback, taking them altogether as citizens, which arises from their earnest desire to be on a perfect social equality with the whites at church, the theatre, concerts, and other public places of assembly. When you consider the strong disinclination for their company, not only of our large American population, but also of Englishmen, who very quickly imbibe the American prejudice, you can readily conceive that a number of disagreeable scenes occur.
1 The South Vindicated.
2 Mr. Hopkins, in his introduction to "The South Vindicated," puts the total free population of the Southern States at 6,300,000. The number of free "families" he puts at 1,114,687, of which 345,239 own slaves. He then asks what becomes of the 5,000,000 whites referred to by Mr. Cairnes as "too poor to own slaves"? Mr. Hopkins, however, has taken his figures from the census of 1850, the census of 1860, he says, not being completed or published. By a reference, however, to the statistics given in Mr. Ellison's excellent work on Slavery and Secession, 2nd Ed. p. 363, it will be seen that the total free population of the States enumerated as Slave States by Mr. Hopkins was, in 1860, considerably above-eight millions. Taking the same proportion, of non-slaveowning to slaveowning families, it would follow that more than five millions of the population belong' to the former.
1 Slavery and Secession, by T. Ellison, 2nd Ed., pp. xvi. xviii.
2 The South Vindicated, p. 82.