The Online Library of Liberty

A project of Liberty Fund, Inc.

• Preface.
• Introduction.: the Doctrine of Expediency.
• The Doctrine of the Moral Sense.
• Part I.
• Chapter I.: Definition of Morality.
• Chapter II.: The Evanescence of Evil.
• Chapter III.: The Divine Idea, and the Conditions of Its Realization.
• Part II.
• Chapter IV.: Derivation of a First Principle.
• Chapter V.: Secondary Derivation of a First Principle.
• Chapter VI.: First Principle.
• Chapter VII.: Application of This First Principle.
• Chapter VIII.: The Rights of Life and Personal Liberty.
• Chapter IX.: The Right to the Use of the Earth.
• Chapter X.: The Right of Property.
• Chapter XI.: The Right of Property In Ideas.
• Chapter XII.: The Right of Property In Character.
• Chapter XIII.: The Right of Exchange.
• Chapter XIV.: The Right of Free Speech.
• Chapter XV.: Further Rights.
• Chapter XVI.: The Rights of Women.
• Chapter XVII.: The Rights of Children.
• Part III.
• Chapter XVIII.: Political Rights.
• Chapter XIX.: The Right to Ignore the State.
• Chapter XX.: The Constitution of the Statea .
• Chapter XXI.: The Duty of the State.
• Chapter XXII.: The Limit of State-duty.
• Chapter XXIII.: The Regulation of Commerce.
• Chapter XXIV.: Religious Establishments.
• Chapter XXV.: Poor-laws.
• Chapter XXVI.: National Education.
• Chapter XXVII.: Government Colonization.
• Chapter XXVIII.: Sanitary Supervision.
• Chapter XXIX.: Currency, Postal Arrangements, Etc.
• Part IV.
• Chapter XXX.: General Considerations.
• Chapter XXXI.: Summary.
• Chapter XXXII.: Conclusion.

CHAPTER XIII.

the right of exchange.

§ 1.

Freedom to exchange his property for the property of others, is manifestly included in a man’s general freedom. In claiming this as his right, he in no way transgresses the proper limit put to his sphere of action by the like spheres of action of others. The two parties in a trade transaction, whilst doing all that they will to do, are not assuming more liberty than they leave to others. Indeed their act ends with themselves—does not affect the condition of the bystanders at all—leaves these as much power to pursue the objects of their desires as before. Hence, exchanges may be made in complete conformity with the law of equal freedom.

Possibly it will be said, that in cases where several men are wishing to deal with the same man, and a bargain is ultimately made between him and one of them, the rest are by this event excluded from a certain prospective field for the fulfilment of their wants, which was previously open to them; and that consequently they have had the liberty to exercise their faculties diminished by the success of their competitor. This, however, is a distorted view of the matter. Let us for a moment turn back to first principles. What is it that we have to do? We have to divide out equally amongst all men, the whole of that freedom which the conditions of social existence afford. Observe, then, in respect of trade relationships, how much falls to the share of each. Evidently each is free to offer; each is free to accept; each is free to refuse; for each may do these to any extent without preventing his neighbours from doing the like to the same extent, and at the same time. But no one may do more; no one may force another to part with his goods; no one may force another to take a specified price; for no one can do so without assuming more liberty of action than the man whom he thus treats. If, therefore, every one is entitled to offer, to accept, and to refuse, but to do nothing more, it is clear that, under the circumstances above put, the closing of an agreement between two of the parties implies no infringement of the claims of the disappointed ones; seeing that each of them remains as free as ever, to offer, accept, and refuse.

§ 2.

To say that, as a corollary from this, all interference between those who would traffic with each other amounts to a breach of equity, is hardly needful. Nor is there any occasion here to assign reasons why the recognition of liberty of trade is expedient. Harmonizing as it does with the settled convictions of thinking people, the foregoing conclusion may safely be left to stand unsupported. Some remarks upon the limits it puts to legislation are indeed called for. But these will come in more appropriately elsewhere.